Schedule I (PARENT COMPANY ONLY)

12 Months Ended

Nov. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule I (PARENT COMPANY ONLY)

JEFFERIES GROUP LLC

(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF FINANCIAL CONDITION

(In thousands)

	November 30,
	2016			2015
ASSETS
Cash and cash equivalents	$	1,178,475		$	824,239
Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations	36,148			66,203
Financial instruments owned, at fair value	130,116			138,820
Investments in managed funds	34,170			34,933
Loans to and investments in related parties	473,912			520,550
Investment in subsidiaries	4,757,824			4,892,454
Advances to subsidiaries	1,262,211			1,423,175
Subordinated notes receivable	2,802,440			2,924,479
Other assets	569,291			590,581
Total assets	$	11,244,587		$	11,415,434
LIABILITIES AND EQUITY
Short-term borrowings	$	96,456		$	—
Financial instruments sold, not yet purchased, at fair value	7,285			21,024
Accrued expenses and other liabilities	287,545			271,779
Long-term debt	5,483,355			5,640,722
Total liabilities	5,874,641			5,933,525
EQUITY
Member’s paid-in capital	5,538,103			5,526,855
Accumulated other comprehensive loss:
Currency translation adjustments	(152,305		)	(36,811		)
Changes in instrument specific credit risk	(6,494		)	—
Additional minimum pension liability	(9,358		)	(8,135		)
Total accumulated other comprehensive loss	(168,157		)	(44,946		)
Total member’s equity	5,369,946			5,481,909
Total liabilities and equity	$	11,244,587		$	11,415,434

See accompanying notes to condensed financial statements.

JEFFERIES GROUP LLC

(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands)

	Year Ended November 30,
	2016			2015			2014
Revenues:
Principal transactions	$	952		$	68,720		$	46,416
Asset management fees and investment income (loss) from managed funds	1,222			(20,889		)	(7,452		)
Interest	226,781			201,632			194,568
Other	(8,156		)	33,193			81,511
Total revenues	220,799			282,656			315,043
Interest expense	235,556			250,919			251,020
Net revenues	(14,757		)	31,737			64,023
Non-interest expenses:
Total non-interest expenses	5,187			5,984			9,263
Earnings (loss) before income taxes	(19,944		)	25,753			54,760
Income tax expense (benefit)	(9,574		)	3,958			22,650
Net earnings (loss) before undistributed earnings of subsidiaries	(10,370		)	21,795			32,110
Undistributed earnings of subsidiaries	25,804			71,739			125,450
Net earnings	15,434			93,534			157,560
Other comprehensive loss, net of tax:
Currency translation and other adjustments	(115,494		)	(27,157		)	(30,995		)
Change in instrument specific credit risk	(6,494		)	—			—
Minimum pension liability adjustments, net of tax	(1,223		)	(3,116		)	(7,778		)
Total other comprehensive loss, net of tax	(123,211		)	(30,273		)	(38,773		)
Comprehensive income (loss)	$	(107,777	)	$	63,261		$	118,787

See accompanying notes to condensed financial statements.

JEFFERIES GROUP LLC

(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

	Year Ended November 30,
	2016			2015			2014
Cash flows from operating activities:
Net earnings	$	15,434		$	93,534		$	157,560
Adjustments to reconcile net earnings to net cash used in operating activities:
Amortization	(63,681		)	(76,945		)	(80,424		)
Undistributed earnings of subsidiaries	(25,804		)	(71,739		)	(125,450		)
Loss (income) on loans to and investments in related parties	10,251			(40,460		)	(67,965		)
Distributions received on investments in related parties	17,050			40,500			35,562
Other adjustments	(34,496		)	(98,870		)	(78,064		)
Net change in assets and liabilities:
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	30,055			(4,714		)	(28,155		)
Financial instruments owned	8,704			53,290			(45,950		)
Investments in managed funds	763			19,907			(1,028		)
Other assets	20,986			77,064			47,666
Financial instruments sold, not yet purchased	(13,739		)	(8,802		)	21,462
Accrued expenses and other liabilities	15,125			(36,397		)	38,477
Net cash used in operating activities	(19,352		)	(53,632		)	(126,309		)
Cash flows from investing activities:
Investments in, advances to and subordinated notes receivable from subsidiaries	327,110			420,797			82,143
Loans to and investments in related parties	19,337			(19,301		)	(469		)
Cash received from contingent consideration	2,617			4,444			6,253
Net cash provided by investing activities	349,064			405,940			87,927
Cash flows from financing activities:
Excess tax benefits from the issuance of share-based awards	489			749			1,921
Proceeds from short-term borrowings	102,238			750,000			1,160,000
Payments on short-term borrowings	(5,786		)	(750,000		)	(1,160,000		)
Net proceeds from issuance of senior notes, net of issuance costs	277,583			—			681,222
Repayment of long-term debt	(350,000		)	(500,000		)	(250,000		)
Net cash provided by (used in) financing activities	24,524			(499,251		)	433,143
Net increase (decrease) in cash and cash equivalents	354,236			(146,943		)	394,761
Cash and cash equivalents at beginning of period	824,239			971,182			576,421
Cash and cash equivalents at end of period	$	1,178,475		$	824,239		$	971,182
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	300,680		$	329,926		$	330,261
Income taxes, net	(8,654		)	(5,859		)	111,542

See accompanying notes to condensed financial statements.

Note 1. Introduction and Basis of Presentation

The accompanying condensed financial statements (the “Parent Company Financial Statements”), including the notes thereto, should be read in conjunction with the consolidated financial statements of Jefferies Group LLC (the “Company”) and the notes thereto found in the Company’s Annual Report on Form 10-K for the year ended November 30, 2016. For purposes of these condensed non-consolidated financial statements, the Company’s wholly owned and majority owned subsidiaries are accounted for using the equity method of accounting (“equity method subsidiaries”).

The Parent Company is an indirect wholly owned subsidiary of Leucadia National Corporation (“Leucadia”). Leucadia does not guarantee any of our outstanding debt securities. Our 3.875% Convertible Senior Debentures due 2029 are convertible into Leucadia common shares.

The Parent Company Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. The significant accounting policies of the Parent Company Financial Statements are those used by the Company on a consolidated basis, to the extent applicable. For further information regarding the significant accounting policies refer to Note 2, Summary of Significant Accounting Policies in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2016.

The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, goodwill and intangible assets, the ability to realize deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates.

Note 2. Transactions with Subsidiaries

The Parent Company has transactions with its consolidated subsidiaries, Leucadia and certain other affiliated entities determined on an agreed upon basis and has guaranteed certain unsecured lines of credit and contractual obligations of certain equity method subsidiaries.

Note 3. Guarantees

In the normal course of its business, the Parent Company issues guarantees in respect of obligations of certain of its wholly owned subsidiaries under trading and other financial arrangements, including guarantees to various trading counterparties and banks. The Parent Company records all derivative contracts and Financial instruments owned and Financial instruments sold, not yet purchased at fair value on its consolidated statements of financial condition.

Certain of the Parent Company’s equity method subsidiaries are members of various exchanges and clearing houses. In the normal course of business, the Parent Company provides guarantees to securities clearinghouses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearinghouse, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearinghouses often require members to post collateral. The Parent Company’s obligations under such guarantees could exceed the collateral amounts posted. The maximum potential liability under these arrangements cannot be quantified; however, the potential for the Parent Company to be required to make payments under such guarantees is deemed remote. Accordingly no liability has been recognized for these arrangements.

The Parent Company has provided a guarantee in respect of certain obligations of Jefferies Finance LLC that matures in January 2021, whereby the Parent Company is required to make certain payments to an SPE sponsored by Jefferies Finance in the event that Jefferies Finance is unable to meet its obligations to the SPE and a guarantee of a credit agreement for a fund owned by employees. At November 30, 2016, the maximum amount payable under these guarantees is $21.1 million.

The Parent Company guarantees certain financing arrangements of subsidiaries. The financing arrangements totaled a maximum obligation of $62.0 million at November 30, 2016.

Structured Notes. Structured notes of $255.2 million at November 30, 2016 were jointly and severally co-issued by our wholly-owned subsidiary Jefferies Group Capital Finance Inc.