Schedule I (PARENT COMPANY ONLY)

12 Months Ended

Nov. 30, 2017

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,
	2017			2016
ASSETS
Cash and cash equivalents	$	1,959,536		$	1,178,475
Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations	57,817			36,148
Financial instruments owned, at fair value	52,641			130,116
Investments in managed funds	21,246			34,170
Loans to and investments in related parties	638,551			473,912
Investment in subsidiaries	5,084,726			4,757,824
Advances to subsidiaries	1,801,573			1,262,211
Subordinated notes receivable	2,708,685			2,802,440
Other assets	610,555			569,291
Total assets	$	12,935,330		$	11,244,587
LIABILITIES AND EQUITY
Short-term borrowings	$	131,567		$	96,456
Financial instruments sold, not yet purchased, at fair value	18,061			7,285
Accrued expenses and other liabilities	610,036			287,545
Long-term debt	6,416,844			5,483,355
Total liabilities	7,176,508			5,874,641
EQUITY
Member’s paid-in capital	5,895,601			5,538,103
Accumulated other comprehensive loss:
Currency translation adjustments	(98,909		)	(152,305		)
Changes in instrument specific credit risk	(27,888		)	(6,494		)
Cash flow hedges	(936		)	—
Additional minimum pension liability	(9,046		)	(9,358		)
Total accumulated other comprehensive loss	(136,779		)	(168,157		)
Total member’s equity	5,758,822			5,369,946
Total liabilities and equity	$	12,935,330		$	11,244,587

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,
	2017			2016			2015
Revenues:
Principal transactions	$	12,410		$	952		$	68,720
Asset management fees and investment income (loss) from managed funds	(10,568		)	1,222			(20,889		)
Interest	241,357			226,781			201,632
Other	78,812			(8,156		)	33,193
Total revenues	322,011			220,799			282,656
Interest expense	276,727			235,556			250,919
Net revenues	45,284			(14,757		)	31,737
Non-interest expenses:
Total non-interest expenses	13,598			5,187			5,984
Earnings (loss) before income taxes	31,686			(19,944		)	25,753
Income tax expense (benefit)	(21,292		)	(9,574		)	3,958
Net earnings (loss) before undistributed earnings of subsidiaries	52,978			(10,370		)	21,795
Undistributed earnings of subsidiaries	304,520			25,804			71,739
Net earnings	357,498			15,434			93,534
Other comprehensive income (loss), net of tax:
Currency translation and other adjustments	53,396			(115,494		)	(27,157		)
Change in instrument specific credit risk	(21,394		)	(6,494		)	—
Cash flow hedges	(936		)	—			—
Minimum pension liability adjustments, net of tax	312			(1,223		)	(3,116		)
Total other comprehensive income (loss), net of tax	31,378			(123,211		)	(30,273		)
Comprehensive income (loss)	$	388,876		$	(107,777	)	$	63,261

See accompanying notes to condensed financial statements.

JEFFERIES GROUP LLC

(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

	Year Ended November 30,
	2017			2016			2015
Cash flows from operating activities:
Net earnings	$	357,498		$	15,434		$	93,534
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Amortization	(61,634		)	(63,681		)	(76,945		)
Undistributed earnings of subsidiaries	(304,520		)	(25,804		)	(71,739		)
(Income) loss on loans to and investments in related parties	(90,724		)	10,251			(40,460		)
Distributions received on investments in related parties	—			17,050			40,500
Other adjustments	39,513			(34,496		)	(98,870		)
Net change in assets and liabilities:
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	(21,669		)	30,055			(4,714		)
Financial instruments owned	77,475			8,704			53,290
Investments in managed funds	12,924			763			19,907
Other assets	(29,031		)	21,475			77,813
Financial instruments sold, not yet purchased	10,776			(13,739		)	(8,802		)
Accrued expenses and other liabilities	324,446			15,125			(36,397		)
Net cash provided by (used in) operating activities	315,054			(18,863		)	(52,883		)
Cash flows from investing activities:
Investments in, advances to and subordinated notes receivable from subsidiaries	(415,100		)	327,110			420,797
Loans to and investments in related parties	(73,915		)	19,337			(19,301		)
Cash received from contingent consideration	1,342			2,617			4,444
Net cash provided by (used in) investing activities	(487,673		)	349,064			405,940
Cash flows from financing activities:
Proceeds from short-term borrowings	555,652			102,238			750,000
Payments on short-term borrowings	(532,326		)	(5,786		)	(750,000		)
Proceeds from issuance of long-term debt, net of issuance costs	1,116,798			277,583			—
Repayment of long-term debt	(186,444		)	(350,000		)	(500,000		)
Net cash provided by (used in) financing activities	953,680			24,035			(500,000		)
Net increase (decrease) in cash and cash equivalents	781,061			354,236			(146,943		)
Cash and cash equivalents at beginning of period	1,178,475			824,239			971,182
Cash and cash equivalents at end of period	$	1,959,536		$	1,178,475		$	824,239
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	332,135		$	300,680		$	329,926
Income taxes, net	2,494			(8,654		)	(5,859		)

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, 2017. 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 (principal amount of $345.0 million) (the “debentures”) were convertible into Leucadia common shares. At November 1, 2017, $20.2 million of these debentures were called. At November 22, 2017, all of the remaining convertible debentures were called for optional redemption, with a redemption date of January 5, 2018. All of these remaining convertible debentures were redeemed on January 5, 2018. For further information, refer to Note 12, Long-Term Debt, in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2017.

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, 2017.

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 in 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 had provided a guarantee in respect of certain obligations of Jefferies Finance LLC that would have matured in January 2021, whereby the Parent Company was required to make certain payments to an SPE sponsored by Jefferies Finance in the event that Jefferies Finance was unable to meet its obligations to the SPE and a guarantee of a credit agreement for a fund owned by employees. These guarantees were terminated during 2017.

The Parent Company guarantees certain financing arrangements of subsidiaries. At November 30, 2017, there were no open guarantees.

Structured Notes. Structured notes of $614.1 million at November 30, 2017 were jointly and severally co-issued by our wholly-owned subsidiary Jefferies Group Capital Finance Inc.