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Schedule I (PARENT COMPANY ONLY)
 12 Months Ended
Nov. 30, 2021
Condensed Financial Information Disclosure [Abstract]  
Schedule I (PARENT COMPANY ONLY)
JEFFERIES GROUP LLC
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
November 30,
20212020
ASSETS
Cash and cash equivalents
$640,426 $1,281,786 
Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations
8,219 21,892 
Financial instruments owned, at fair value
96,528 69,856 
Loans to and investments in related parties
708,611 655,930 
Investment in subsidiaries
6,332,604 6,411,169 
Advances to subsidiaries
3,151,163 2,822,937 
Subordinated notes receivable
3,868,198 2,443,383 
Other assets
542,324 354,606 
Total assets
$15,348,073 $14,061,559 
LIABILITIES AND EQUITY
Short-term borrowings
$6,800 $11,867 
Financial instruments sold, not yet purchased, at fair value
3,491 — 
Accrued expenses and other liabilities
954,454 1,045,000 
Long-term debt
7,315,844 6,655,949 
Total liabilities
8,280,589 7,712,816 
EQUITY
Member’s paid-in capital
7,381,391 6,569,328 
Accumulated other comprehensive income (loss):
Currency translation adjustments
(151,661)(141,843)
Changes in instrument specific credit risk
(153,672)(71,151)
Additional minimum pension liability
(8,843)(8,104)
Available-for-sale securities
269 513 
Total accumulated other comprehensive loss
(313,907)(220,585)
Total member’s equity
7,067,484 6,348,743 
Total liabilities and equity
$15,348,073 $14,061,559 
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,
202120202019
Revenues:
Principal transactions
$10,347 $58,148 $13,746 
Investment banking
— 17 103 
Interest
210,410 214,833 271,369 
Other
102,578 (38,874)19,346 
Total revenues
323,335 234,124 304,564 
Interest expense
265,005 285,090 297,927 
Net revenues
58,330 (50,966)6,637 
Non-interest expenses:
Total non-interest expenses
47,309 14,854 6,482 
Earnings (loss) before income taxes11,021 (65,820)155 
Income tax expense (benefit)
8,130 (19,480)(3,316)
Net earnings (loss) before undistributed earnings of subsidiaries
2,891 (46,340)3,471 
Undistributed earnings of subsidiaries
1,615,840 925,643 242,558 
Net earnings
1,618,731 879,303 246,029 
Other comprehensive income (loss), net of tax:
Currency translation and other adjustments
(9,818)37,535 6,426 
Change in instrument specific credit risk
(82,521)(52,262)(13,161)
Cash flow hedges
— — (470)
Minimum pension liability adjustments, net of tax
(739)(2,025)(1,318)
Unrealized gain on available-for-sale securities
(244)372 487 
Total other comprehensive loss, net of tax(93,322)(16,380)(8,036)
Comprehensive income
$1,525,409 $862,923 $237,993 
See accompanying notes to condensed financial statements.
JEFFERIES GROUP LLC
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended November 30,
202120202019
Cash flows from operating activities:
Net earnings
$1,618,731 $879,303 $246,029 
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Amortization
(24,379)(36,708)(38,812)
Undistributed earnings of subsidiaries
(1,615,840)(925,643)(242,558)
(Income) loss on loans to and investments in related parties
(102,679)37,790 (21,946)
Distributions received on investments in related parties
— — 75,000 
Other adjustments
(234,290)183,241 60,106 
Net change in assets and liabilities:
Financial instruments owned
(26,672)2,880 26,755 
Other assets
(160,703)(3,741)154,940 
Financial instruments sold, not yet purchased
3,491 (2,307)1,510 
Accrued expenses and other liabilities
(110,838)526,571 (51,821)
Net cash provided by (used in) operating activities(653,179)661,386 209,203 
Cash flows from investing activities:
Investments in, advances to and subordinated notes receivable from subsidiaries(34,138)1,357,031 (1,035,619)
Loans to and investments in related parties50,000 (50,000)— 
Net cash provided by (used in) investing activities15,862 1,307,031 (1,035,619)
Cash flows from financing activities:
Proceeds from short-term borrowings— 11,820 20,236 
Payments on short-term borrowings(5,090)(20,263)(55,773)
Proceeds from issuance of long-term debt, net of issuance costs1,681,058 1,169,722 1,184,891 
Repayments of long-term debt(923,809)(1,494,696)(823,875)
Contributions from Jefferies Financial Group Inc.153,557 — — 
Distributions to Jefferies Financial Group Inc.(923,432)(498,674)(311,131)
Net cash provided by (used in) financing activities(17,716)(832,091)14,348 
Net increase (decrease) in cash and cash equivalents(655,033)1,136,326 (812,068)
Cash, cash equivalents and restricted cash at beginning of period1,303,678 167,352 979,420 
Cash, cash equivalents and restricted cash at end of period$648,645 $1,303,678 $167,352 
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest$327,316 $272,670 $291,298 
Income taxes, net595,013 84,098 73,151 
The following presents the Parent Company’s cash, cash equivalents and restricted cash by category within the Condensed Statements of Financial Condition (in thousands):
November 30,
20212020
Cash and cash equivalents$640,426 $1,281,786 
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations
8,219 21,892 
Total cash, cash equivalents and restricted cash$648,645 $1,303,678 
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, 2021. 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 Jefferies. Jefferies does not guarantee any of our outstanding debt securities.
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, 2021.
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, compensation and benefits, 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, Jefferies 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 guarantees certain financing arrangements of subsidiaries. The maximum amount payable under these guarantees is $725.8 million at November 30, 2021. For further information, refer to Note 11, Short-Term Borrowings, and 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, 2021.
Structured Notes. Structured notes of $991.5 million at November 30, 2021 were jointly and severally co-issued by our wholly-owned subsidiary Jefferies Group Capital Finance Inc.