Exit Costs

Jefferies Bache. On April 9, 2015, we entered into an agreement with Société Générale S.A. (the “Agreement”) to transfer certain client exchange and OTC transactions associated with our Jefferies Bache business for the net book value of the over-the-counter transactions, calculated in accordance with certain principles set forth in the agreement, plus the repayment of certain margin loans in respect of certain exchange transactions. In addition, we initiated a plan to substantially exit the remaining aspects of the business, which was completed during the second quarter of 2016. The pre-tax losses of the Jefferies Bache business were $1.9 million for the nine months ended August 31, 2016 and $64.1 million and $114.8 million for the three and nine months ended August 31, 2015, respectively.

In addition, we terminated our $750.0 million Credit Facility on July 31, 2015. During the three and nine months ended August 31, 2015, we recognized costs of $2.7 million and $3.8 million, respectively, related to Credit Facility.

The following summarizes our recorded restructuring and impairment costs (in thousands):



	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Severance costs	$	—	$	11,373	$	279	$	26,932
Accelerated amortization of restricted stock and restricted cash awards	—		2,442		41		6,902
Accelerated amortization of capitalized software	—		6,719		—		12,979
Contract termination costs	—		11,216		1,234		11,216
Other expenses	—		1,523		300		3,814
Total	$	—	$	33,273	$	1,854	$	61,843

Of the above costs, $341,000 for the nine months ended August 31, 2016 and $10.2 million and $21.0 million for the three and nine months ended August 31, 2015, respectively, are of a non-cash nature. Restructuring and exit costs are wholly attributed to our Capital Markets segment and were recorded in the following categories on the Consolidated Statement of Earnings (in thousands):



	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Compensation and benefits	$	—	$	13,815	$	320	$	33,834
Technology and communications	—		17,935		1,234		24,195
Professional services	—		444		—		2,477
Other expenses	—		1,079		300		1,337
Total	$	—	$	33,273	$	1,854	$	61,843

The following summarizes our restructuring reserve activity (in thousands):



	Severance costs			Other costs			Contract termination costs			Total restructuring costs			Accelerated amortization of restricted stock and restricted cash awards		Total
Balance at November 30, 2015	$	4,805		$	—		$	—		$	4,805
Expenses	279			300			1,234			1,813			$	41	$	1,854
Payments	(5,084		)	(300		)	(1,234		)	(6,618		)
Liability at August 31, 2016	$	—		$	—		$	—		$	—