[September 21, 2018] |
|
Jefferies Group LLC Reports Fiscal Third Quarter 2018 Financial Results
Jefferies Group LLC, a wholly-owned subsidiary of Jefferies Financial
Group Inc. (NYSE: JEF), today announced financial results for its fiscal
third quarter 2018.
Highlights for the three months ended August 31, 2018:
-
Total Net Revenues of $778 million
-
Investment Banking Net Revenues of $452 million
-
Total Equities and Fixed Income Net Revenues of $310 million
-
Earnings Before Income Taxes of $87 million
-
Net Earnings of $60 million (reflects a 31% tax rate, which includes
the impact of certain unusual discrete items related to our non-U.S.
subsidiaries planning in respect of the Tax Cuts and Jobs Act (the
"Tax Act"))
Highlights for the nine months ended August 31, 2018:
-
Total Net Revenues of $2,421 million, up 6% versus the first nine
months of last year, excluding last year's $93 million gain on the
sale of KCG¹
-
Investment Banking Net Revenues of $1,392 million, up 12% compared to
the same period last year
-
Total Equities and Fixed Income Net Revenues of $974 million
-
Earnings Before Income Taxes of $332 million
-
Net Earnings of $97 million after Provisional Tax Act-related charge
of $160 million, $108 million of which is non-cash; without this
charge, we would have reported Adjusted Net Earnings of $258 million²
Rich Handler, Chairman and Chief Executive Officer, and Brian Friedman,
Chairman of the Executive Committee, commented: "Our third quarter
revenues of $778 million reflect solid performances in Investment
Banking, with revenues of $452 million, and in sales and trading where
revenues grew to $310 million. The usual summer slow-down appeared to
impact activity levels in both the primary and secondary debt markets."
"Our Investment Banking results reflect lower Leverage Finance
transaction levels during the period versus the second quarter of this
year and the third quarter of last year. Advisory activity levels were
also more muted during the period. Equity Capital markets revenues for
the quarter were $139 million, an increase of 29% versus the second
quarter and 62% versus last year's third quarter. Compared to this
year's second quarter, we increased our market share and improved our
market rankings in both our new issues businesses, as well as our
advisory business. Our fourth quarter investment banking backlog is
higher than that of any recent periods, and reflects the investments we
have made to broaden and deepen our team and capabilities."
"Our Equities Sales and Trading business enjoyed another solid quarter,
with revenues of $171 million. We continue to add clients to the
platform, particularly in Prime Brokerage and Electronic Trading. Fixed
Income Sales and Trading volumes were light during the period,
particularly in our international rates business. Fixed Income revenues
were $140 million, up 17% from the second quarter, despite lower levels
of client engagement. Our Emerging Markets business continued to perform
well during the period, despite the challenging environment."
As mentioned before, we expect our going forward tax rate to be about
27%. The higher effective tax rate for this quarter of 31% reflects this
run rate plus the impact of certain discrete items related to our
non-U.S. subsidiaries planning for the Tax Act.
The attached financial tables should be read in conjunction with our
Quarterly Report on Form 10-Q for the quarter ended May 31, 2018 and our
Annual Report on Form 10-K for the year ended November 30, 2017. Amounts
herein pertaining to August 31, 2018 represent a preliminary estimate as
of the date of this earnings release and may be revised in our Quarterly
Report on Form 10-Q for the quarter ended August 31, 2018.
This release contains "forward-looking statements" within the meaning of
the safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements include statements about our future results and performance,
including our future market share and expected financial results. It is
possible that the actual results may differ materially from the
anticipated results indicated in these forward-looking statements.
Please refer to our most recent Annual Report on Form 10-K for a
discussion of important factors that could cause actual results to
differ materially from those projected in these forward-looking
statements.
Jefferies Group LLC, the world's only independent full-service global
investment banking firm focused on serving clients for over 50 years, is
a leader in providing insight, expertise and execution to investors,
companies and governments. Our firm provides a full range of investment
banking, advisory, sales and trading, research and wealth management
services across all products in the Americas, Europe and Asia. Jefferies
Group LLC is a wholly-owned subsidiary of Jefferies Financial Group Inc.
(NYSE: JEF), a diversified financial services company.
_____________________
|
|
|
¹
|
|
Adjusted financial measures are non-GAAP financial measures.
Management believes such measure for the comparable results of the
nine months ended August 31, 2017 provides meaningful information to
investors as it enables investors to evaluate our results, excluding
the gain on our equity investment in KCG Holdings Inc., which was
sold in July 2017. Refer to the Supplemental Schedule on page 5 for
a reconciliation of Adjusted measures to the respective direct U.S.
GAAP financial measures. These measures should not be considered a
substitute for, or superior to, measures of financial performance
prepared in accordance with U.S. GAAP.
|
²
|
|
Adjusted financial measures are non-GAAP financial measures.
Management believes such measure for the first nine months of 2018
provides meaningful information to investors as it enables investors
to evaluate our results excluding the impact of the provisional tax
charge resulting from the Tax Act. Refer to the Supplemental
Schedule on page 5 for a reconciliation of Adjusted measures to the
respective direct U.S. GAAP financial measures. These measures
should not be considered a substitute for, or superior to, measures
of financial performance prepared in accordance with U.S. GAAP.
|
|
|
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
(Amounts in Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
August 31, 2018
|
|
May 31, 2018
|
|
August 31, 2017
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Commissions and other fees
|
|
$
|
155,539
|
|
|
$
|
158,104
|
|
|
$
|
139,082
|
|
Principal transactions (1)
|
|
143,308
|
|
|
137,802
|
|
|
186,408
|
|
Investment banking
|
|
465,326
|
|
|
500,297
|
|
|
475,702
|
|
Asset management fees (1)
|
|
5,184
|
|
|
6,016
|
|
|
4,272
|
|
Interest
|
|
305,347
|
|
|
307,327
|
|
|
230,496
|
|
Other
|
|
13,581
|
|
|
47,263
|
|
|
12,371
|
|
Total revenues
|
|
1,088,285
|
|
|
1,156,809
|
|
|
1,048,331
|
|
Interest expense
|
|
310,670
|
|
|
334,252
|
|
|
247,639
|
|
Net revenues
|
|
777,615
|
|
|
822,557
|
|
|
800,692
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
Compensation and benefits
|
|
428,033
|
|
|
444,094
|
|
|
462,933
|
|
|
|
|
|
|
|
|
Non-compensation expenses:
|
|
|
|
|
|
|
Floor brokerage and clearing fees
|
|
45,745
|
|
|
46,244
|
|
|
44,869
|
|
Underwriting costs
|
|
20,528
|
|
|
13,029
|
|
|
-
|
|
Technology and communications
|
|
76,877
|
|
|
76,381
|
|
|
72,440
|
|
Occupancy and equipment rental
|
|
25,559
|
|
|
24,993
|
|
|
27,736
|
|
Business development
|
|
39,733
|
|
|
42,393
|
|
|
23,125
|
|
Professional services
|
|
35,316
|
|
|
35,991
|
|
|
25,007
|
|
Other
|
|
18,723
|
|
|
17,567
|
|
|
22,318
|
|
Total non-compensation expenses
|
|
262,481
|
|
|
256,598
|
|
|
215,495
|
|
Total non-interest expenses
|
|
690,514
|
|
|
700,692
|
|
|
678,428
|
|
Earnings before income taxes
|
|
87,101
|
|
|
121,865
|
|
|
122,264
|
|
Income tax expense
|
|
26,923
|
|
|
23,857
|
|
|
38,439
|
|
Net earnings
|
|
60,178
|
|
|
98,008
|
|
|
83,825
|
|
Net earnings (loss) attributable to noncontrolling interests
|
|
(4
|
)
|
|
4
|
|
|
10
|
|
Net earnings attributable to Jefferies Group LLC
|
|
$
|
60,182
|
|
|
$
|
98,004
|
|
|
$
|
83,815
|
|
|
|
|
|
|
|
|
Pre-tax operating margin
|
|
11.2
|
%
|
|
14.8
|
%
|
|
15.3
|
%
|
Effective tax rate
|
|
30.9
|
%
|
|
19.6
|
%
|
|
31.4
|
%
|
(1)
|
|
Certain reclassifications within revenue line items have been made
for the three month period ended August 31, 2017. We have
reorganized the presentation of our gains and losses generated from
our capital invested in asset management funds managed by us and
related parties. This was previously presented as Asset management:
Investment income (loss) from investments in managed funds and is
now presented within Principal transactions revenues.
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
(Amounts in Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
August 31, 2018
|
|
August 31, 2017
|
|
|
|
|
|
Revenues:
|
|
|
|
|
Commissions and other fees
|
|
$
|
461,545
|
|
|
$
|
437,547
|
|
Principal transactions (1)
|
|
498,583
|
|
|
688,568
|
|
Investment banking
|
|
1,405,614
|
|
|
1,235,586
|
|
Asset management fees (1)
|
|
16,130
|
|
|
16,368
|
|
Interest
|
|
870,490
|
|
|
660,323
|
|
Other
|
|
79,327
|
|
|
58,691
|
|
Total revenues
|
|
3,331,689
|
|
|
3,097,083
|
|
Interest expense
|
|
910,271
|
|
|
721,584
|
|
Net revenues
|
|
2,421,418
|
|
|
2,375,499
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
Compensation and benefits
|
|
1,327,760
|
|
|
1,373,627
|
|
|
|
|
|
|
Non-compensation expenses:
|
|
|
|
|
Floor brokerage and clearing fees
|
|
135,808
|
|
|
138,221
|
|
Underwriting costs
|
|
47,832
|
|
|
-
|
|
Technology and communications
|
|
222,335
|
|
|
205,425
|
|
Occupancy and equipment rental
|
|
75,143
|
|
|
77,145
|
|
Business development
|
|
124,233
|
|
|
72,223
|
|
Professional services
|
|
101,715
|
|
|
83,544
|
|
Other
|
|
54,888
|
|
|
62,670
|
|
Total non-compensation expenses
|
|
761,954
|
|
|
639,228
|
|
Total non-interest expenses
|
|
2,089,714
|
|
|
2,012,855
|
|
Earnings before income taxes
|
|
331,704
|
|
|
362,644
|
|
Income tax expense
|
|
234,337
|
|
|
95,009
|
|
Net earnings
|
|
97,367
|
|
|
267,635
|
|
Net earnings (loss) attributable to noncontrolling interests
|
|
(1
|
)
|
|
50
|
|
Net earnings attributable to Jefferies Group LLC
|
|
$
|
97,368
|
|
|
$
|
267,585
|
|
|
|
|
|
|
Pre-tax operating margin
|
|
13.7
|
%
|
|
15.3
|
%
|
Effective tax rate (2)
|
|
70.6
|
%
|
|
26.2
|
%
|
|
|
|
|
|
|
|
(1)
|
|
Certain reclassifications within revenue line items have been made
for the nine month period ended August 31, 2017. We have reorganized
the presentation of our gains and losses generated from our capital
invested in asset management funds managed by us and related
parties. This was previously presented as Asset management:
Investment income (loss) from investments in managed funds and is
now presented within Principal transactions revenues.
|
(2)
|
|
The effective tax rate for the nine months ended August 31, 2018
includes a provisional tax charge of $160 million as a result of the
Tax Act.
|
JEFFERIES GROUP LLC AND SUBSIDIARIES CONSOLIDATED
ADJUSTED SELECTED FINANCIAL DATA (Amounts in Thousands,
Except Where Noted) (Unaudited)
|
|
|
|
Nine Months Ended August 31, 2018
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
|
|
|
|
|
|
Net earnings (excluding provisional tax charge)
|
$
|
97,367
|
|
|
$
|
160,190
|
|
|
$
|
257,557
|
|
|
|
|
|
|
|
Increase in Net revenues (excluding KCG) for the nine months ended
August 31, 2018 compared to the prior year period
|
1.9%
|
|
|
4.2%
|
|
|
6.1%
|
|
|
|
|
|
|
|
|
Nine Months Ended August 31, 2017
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
|
|
|
|
|
|
Net revenues (excluding KCG)
|
$
|
2,375,499
|
|
|
$
|
(93,379
|
)
|
|
$
|
2,282,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This presentation of Adjusted financial information is an unaudited
non-GAAP financial measure. Adjusted financial information begins with
information prepared in accordance with U.S. GAAP and then those results
are adjusted to exclude the provisional tax charge of $160 million
related to the enactment of the Tax Act in the first nine months of
2018. Adjusted financial information also begins with information
prepared in accordance with U.S. GAAP and then those results are
adjusted to exclude the $93 million gain on our equity investment in KCG
Holdings Inc., which was sold in July 2017. The Company believes that
the disclosed Adjusted measures and any adjustments thereto, when
presented in conjunction with comparable U.S. GAAP measures, are useful
to investors as they enable investors to evaluate the Company's results
excluding the impact of the provisional tax charge as a result of the
enactment of the Tax Act and the gain on the sale of our equity
investment in KCG Holdings Inc. These measures should not be considered
a substitute for, or superior to, measures of financial performance
prepared in accordance with U.S. GAAP.
JEFFERIES GROUP LLC AND SUBSIDIARIES SELECTED
STATISTICAL INFORMATION (Amounts in Thousands, Except
Other Data) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
August 31, 2018
|
|
May 31, 2018
|
|
August 31, 2017
|
Net Revenues by Source
|
|
|
|
|
|
Equities
|
$
|
170,611
|
|
|
$
|
175,083
|
|
|
$
|
163,009
|
Fixed income
|
139,846
|
|
|
119,987
|
|
|
140,167
|
Total sales and trading
|
310,457
|
|
|
295,070
|
|
|
303,176
|
|
|
|
|
|
|
|
|
Equity
|
139,220
|
|
|
107,553
|
|
|
86,081
|
Debt
|
138,515
|
|
|
175,762
|
|
|
186,261
|
Capital markets
|
277,735
|
|
|
283,315
|
|
|
272,342
|
Advisory
|
187,591
|
|
|
216,982
|
|
|
203,360
|
Other investment banking
|
(13,732
|
)
|
|
6,065
|
|
|
2
|
Total investment banking
|
451,594
|
|
|
506,362
|
|
|
475,704
|
|
|
|
|
|
|
|
|
Other
|
9,086
|
|
|
3,830
|
|
|
9,426
|
|
|
|
|
|
|
|
|
Total Capital Markets
|
771,137
|
|
|
805,262
|
|
|
788,306
|
|
|
|
|
|
|
|
|
Asset management fees
|
5,184
|
|
|
6,016
|
|
|
4,180
|
Investment return
|
1,294
|
|
|
11,279
|
|
|
8,206
|
Total Asset Management
|
6,478
|
|
|
17,295
|
|
|
12,386
|
|
|
|
|
|
|
|
|
Net revenues
|
$
|
777,615
|
|
|
$
|
822,557
|
|
|
$
|
800,692
|
|
|
|
|
|
|
|
|
Other Data
|
|
|
|
|
|
Number of trading days
|
65
|
|
|
64
|
|
|
65
|
Number of trading loss days
|
11
|
|
|
9
|
|
|
3
|
|
|
|
|
|
|
|
|
Average firmwide VaR (in millions) (1)
|
$
|
7.53
|
|
|
$
|
6.78
|
|
|
$
|
6.51
|
|
|
|
|
|
|
|
|
(1)
|
|
VaR estimates the potential loss in value of our trading positions
due to adverse market movements over a one-day time horizon with a
95% confidence level. For a further discussion of the calculation of
VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion
and Analysis" in our Annual Report on Form 10-K for the year ended
November 30, 2017.
|
JEFFERIES GROUP LLC AND SUBSIDIARIES SELECTED
STATISTICAL INFORMATION (Amounts in Thousands, Except
Other Data) (Unaudited)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
August 31, 2018
|
|
August 31, 2017
|
Net Revenues by Source
|
|
|
|
Equities
|
$
|
501,471
|
|
|
$
|
493,369
|
Fixed income
|
472,886
|
|
|
517,219
|
Total sales and trading
|
974,357
|
|
|
1,010,588
|
|
|
|
|
|
|
Equity
|
326,613
|
|
|
222,549
|
Debt
|
483,271
|
|
|
474,736
|
Capital markets
|
809,884
|
|
|
697,285
|
Advisory
|
595,730
|
|
|
538,301
|
Other investment banking
|
(13,885
|
)
|
|
7,437
|
Total investment banking
|
1,391,729
|
|
|
1,243,023
|
|
|
|
|
|
|
Other
|
22,714
|
|
|
95,945
|
|
|
|
|
|
|
Total Capital Markets
|
2,388,800
|
|
|
2,349,556
|
|
|
|
|
|
|
Asset management fees
|
16,130
|
|
|
15,102
|
Investment return
|
16,488
|
|
|
10,841
|
Total Asset Management
|
32,618
|
|
|
25,943
|
|
|
|
|
|
|
Net revenues
|
$
|
2,421,418
|
|
|
$
|
2,375,499
|
|
|
|
|
|
|
Other Data
|
|
|
|
Number of trading days
|
189
|
|
|
189
|
Number of trading loss days
|
27
|
|
|
9
|
|
|
|
|
|
|
Average firmwide VaR (in millions) (1)
|
$
|
6.88
|
|
|
$
|
8.63
|
|
|
|
|
|
|
(1)
|
|
VaR estimates the potential loss in value of our trading positions
due to adverse market movements over a one-day time horizon with a
95% confidence level. For a further discussion of the calculation of
VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion
and Analysis" in our Annual Report on Form 10-K for the year ended
November 30, 2017.
|
JEFFERIES GROUP LLC AND SUBSIDIARIES FINANCIAL
HIGHLIGHTS (Amounts in Millions, Except Where Noted) (Unaudited)
|
|
|
|
|
|
|
|
Quarter Ended
|
|
August 31, 2018
|
|
May 31, 2018
|
|
August 31, 2017
|
|
|
|
|
|
|
Financial position:
|
|
|
|
|
|
Total assets (1)
|
$
|
40,572
|
|
|
$
|
41,123
|
|
|
$
|
39,358
|
|
Average total assets for the period (1)
|
$
|
48,022
|
|
|
$
|
49,496
|
|
|
$
|
45,311
|
|
Average total assets less goodwill and intangible assets for the
period (1)
|
$
|
46,189
|
|
|
$
|
47,654
|
|
|
$
|
43,467
|
|
|
|
|
|
|
|
Cash and cash equivalents (1)
|
$
|
4,813
|
|
|
$
|
4,580
|
|
|
$
|
4,807
|
|
Cash and cash equivalents and other sources of liquidity (1) (2)
|
$
|
6,098
|
|
|
$
|
5,881
|
|
|
$
|
6,191
|
|
Cash and cash equivalents and other sources of liquidity - % total
assets (1) (2)
|
15.0
|
%
|
|
14.3
|
%
|
|
15.7
|
%
|
Cash and cash equivalents and other sources of liquidity - % total
assets less goodwill and intangible assets (1) (2)
|
15.7
|
%
|
|
15.0
|
%
|
|
16.5
|
%
|
|
|
|
|
|
|
Financial instruments owned (1)
|
$
|
15,196
|
|
|
$
|
15,706
|
|
|
$
|
14,207
|
|
Goodwill and intangible assets (1)
|
$
|
1,829
|
|
|
$
|
1,835
|
|
|
$
|
1,841
|
|
|
|
|
|
|
|
Total equity (including noncontrolling interests) (1)
|
$
|
5,557
|
|
|
$
|
5,544
|
|
|
$
|
5,655
|
|
Total Jefferies Group LLC member's equity (1)
|
$
|
5,548
|
|
|
$
|
5,543
|
|
|
$
|
5,654
|
|
Tangible Jefferies Group LLC member's equity (1) (3)
|
$
|
3,719
|
|
|
$
|
3,708
|
|
|
$
|
3,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 financial instruments:
|
|
|
|
|
|
Level 3 financial instruments owned (1) (4)
|
$
|
311
|
|
|
$
|
337
|
|
|
$
|
348
|
|
Level 3 financial instruments owned - % total assets
|
0.8
|
%
|
|
0.8
|
%
|
|
0.9
|
%
|
Level 3 financial instruments owned - % total financial instruments
(1)
|
2.0
|
%
|
|
2.1
|
%
|
|
2.4
|
%
|
Level 3 financial instruments owned - % tangible Jefferies Group
LLC member's equity
|
8.4
|
%
|
|
9.1
|
%
|
|
9.1
|
%
|
|
|
|
|
|
|
Other data and financial ratios:
|
|
|
|
|
|
Total long-term capital (1) (5)
|
$
|
11,261
|
|
|
$
|
11,971
|
|
|
$
|
11,038
|
|
Leverage ratio (1) (6)
|
7.3
|
|
|
7.4
|
|
|
7.0
|
|
Tangible gross leverage ratio (1) (7)
|
10.4
|
|
|
10.6
|
|
|
9.8
|
|
|
|
|
|
|
|
Number of trading days
|
65
|
|
|
64
|
|
|
65
|
|
Number of trading loss days
|
11
|
|
|
9
|
|
|
3
|
|
Average firmwide VaR (8)
|
$
|
7.53
|
|
|
$
|
6.78
|
|
|
$
|
6.51
|
|
|
|
|
|
|
|
Number of employees, at period end
|
3,526
|
|
|
3,438
|
|
|
3,438
|
|
|
|
|
|
|
|
|
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES FINANCIAL
HIGHLIGHTS - FOOTNOTES
|
|
|
|
|
(1)
|
|
|
Amounts pertaining to August 31, 2018 represent a preliminary
estimate as of the date of this earnings release and may be revised
in our Quarterly Report on Form 10-Q for the three months ended
August 31, 2018.
|
|
|
|
|
(2)
|
|
|
At August 31, 2018, other sources of liquidity include high quality
sovereign government securities and reverse repurchase agreements
collateralized by U.S. government securities and other high quality
sovereign government securities of $948 million, in aggregate, and
$337 million, being the estimated amount of additional secured
financing that could be reasonably expected to be obtained from our
financial instruments that are currently not pledged after
considering reasonable financing haircuts. The corresponding amounts
included in other sources of liquidity at May 31, 2018 were $940
million and $361 million, respectively, and at August 31, 2017, were
$1,083 million and $301 million, respectively.
|
|
|
|
|
(3)
|
|
|
Tangible Jefferies Group LLC member's equity (a non-GAAP financial
measure) represents total Jefferies Group LLC member's equity less
goodwill and identifiable intangible assets. We believe that
tangible Jefferies Group LLC member's equity is meaningful for
valuation purposes, as financial companies are often measured as a
multiple of tangible equity, making these ratios meaningful for
investors.
|
|
|
|
|
(4)
|
|
|
Level 3 financial instruments represent those financial instruments
classified as such under Accounting Standards Codification 820,
accounted for at fair value and included within Financial
instruments owned.
|
|
|
|
|
(5)
|
|
|
At August 31, 2018, May 31, 2018 and August 31, 2017, total
long-term capital includes our long-term debt of $5,703 million,
$6,428 million and $5,383 million, respectively, and total equity.
Long-term debt included in total long-term capital is reduced by
amounts outstanding under the revolving credit facility and the
amount of debt maturing in less than one year, as applicable.
|
|
|
|
|
(6)
|
|
|
Leverage ratio equals total assets divided by total equity.
|
|
|
|
|
(7)
|
|
|
Tangible gross leverage ratio (a non-GAAP financial measure) equals
total assets less goodwill and identifiable intangible assets
divided by tangible Jefferies Group LLC member's equity. The
tangible gross leverage ratio is used by rating agencies in
assessing our leverage ratio.
|
|
|
|
|
(8)
|
|
|
VaR estimates the potential loss in value of our trading positions
due to adverse market movements over a one-day time horizon with a
95% confidence level. For a further discussion of the calculation of
VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion
and Analysis" in our Annual Report on Form 10-K for the year ended
November 30, 2017.
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180921005086/en/
[ Back To TMCnet.com's Homepage ]
|