Exit Costs

Jefferies Bache. On April 9, 2015, Jefferies entered into an agreement with Société Générale S.A. (the "Agreement") to transfer certain client exchange and over-the-counter transactions associated with 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, Jefferies 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 September 30, 2016 and $64.1 million and $114.8 million for the three and nine months ended September 30, 2015, respectively.

In addition, Jefferies terminated its $750.0 million Credit Facility on July 31, 2015. During the three and nine months ended September 30, 2015, Jefferies recognized costs of $2.7 million and $3.8 million, respectively, related to Credit Facility.

During the three and nine months ended September 30, 2016 and 2015, Jefferies recorded restructuring and impairment costs as follows (in thousands):



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	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
Selling, general and other expenses	—		1,523		300		3,814
Total	$	—	$	33,273	$	1,854	$	61,843

Severance costs and amortization of restricted stock and restricted cash awards are recorded as Compensation and benefits, amortization of capitalized software is recorded as Depreciation and amortization and contract termination costs are recorded as Selling, general and other expenses on the Consolidated Statements of Operations.

The following summarizes Jefferies 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 December 31, 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 September 30, 2016	$	—		$	—		$	—		$	—