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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Aug. 31, 2019
Aug. 31, 2018
Aug. 31, 2019
Aug. 31, 2018
Statement of Comprehensive Income [Abstract]        
Net earnings $ 64,825 $ 60,178 $ 221,009 $ 97,367
Other comprehensive income (loss), net of tax:        
Currency translation adjustments and other [1] (28,023) (26,050) (34,208) (71,219)
Changes in instrument specific credit risk [2] 5,889 1,067 26,533 8,971
Cash flow hedges [3] 0 85 (470) 1,382
Unrealized gain on available-for-sale securities [4] 198 0 577 0
Total other comprehensive loss, net of tax [5] (21,936) (24,898) (7,568) (60,866)
Comprehensive income 42,889 35,280 213,441 36,501
Net earnings (loss) attributable to noncontrolling interests (143) (4) 140 (1)
Comprehensive income attributable to Jefferies Group LLC $ 43,032 $ 35,284 $ 213,301 $ 36,502
[1]
The amounts during the three and nine months ended August 31, 2019 include income tax benefits of $8.9 million and $10.6 million respectively, compared with $2.8 million in both the three and nine months ended August 31, 2018, related to the impact of certain discrete items related to tax planning for our non-U.S. subsidiaries in connection with the Tax Cuts and Jobs Act (the “Tax Act”). The amount during the nine months ended August 31, 2018 includes $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and ($0.8) million related to the Tax Act, which was reclassified to Member’s paid-in capital and a gain of $20.5 million related to foreign currency gains, which was reclassified to Other revenues within the Consolidated Statements of Earnings.
[2]
The amounts include income tax expenses of approximately $2.0 million and $9.0 million for the three and nine months ended August 31, 2019, respectively, and income tax expenses of approximately $0.3 million and $11.0 million for the three and nine months ended August 31, 2018, respectively. The amount during the nine months ended August 31, 2019 also includes gains of $0.5 million, net of taxes of $0.2 million, related to changes in instrument specific risk, which was reclassified to Principal transactions revenues within the Consolidated Statements of Earnings. The amounts during the three and nine months ended August 31, 2018 also include gains of $0.1 million and $0.4 million, net of taxes of $0.1 million, respectively, related to changes in instrument specific risk, which was reclassified to Principal transactions revenues within the Consolidated Statements of Earnings. The amount during the nine months ended August 31, 2018 includes ($6.5) million related to the Tax Act, which was reclassified to Member’s paid-in capital.
[3]
The amount during the nine months ended August 31, 2019 includes income tax benefits of $0.2 million. The cash flow hedge loss of $0.5 million during the nine months ended August 31, 2019 was reclassified to Other revenues within the Consolidated Statement of Earnings due to the sale of all of our common shares of Epic Gas Ltd. (“Epic Gas”). Refer to Note 9, Investments for further information. The amount during the nine months ended August 31, 2018 includes income tax expenses of $0.7 million. The amount during the nine months ended August 31, 2018 also includes ($0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital.
[4] The amount during the nine months ended August 31, 2019 includes income tax expense of approximately $0.2 million
[5]
None of the components of other comprehensive loss are attributable to noncontrolling interests.