[x]
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the fiscal year ended December 31, 2011
|
[_]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from ___________ to ___________
|
New York
|
13-2615557
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
Common Shares, par value $1 per share
|
New York Stock Exchange
|
7-3/4% Senior Notes due August 15, 2013
|
New York Stock Exchange
|
Large accelerated filer x
|
Accelerated filer o
|
Non-accelerated filer o
|
Smaller reporting company o
|
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Revenues and other income (a):
|
||||||||||||
Manufacturing:
|
||||||||||||
Idaho Timber
|
$ | 159,026 | $ | 172,908 | $ | 142,709 | ||||||
Conwed Plastics
|
85,961 | 87,073 | 82,094 | |||||||||
Oil and Gas Drilling Services (b)
|
136,146 | 116,560 | 60,459 | |||||||||
Gaming Entertainment
|
117,238 | 114,809 | 103,583 | |||||||||
Domestic Real Estate
|
96,501 | 17,075 | 30,637 | |||||||||
Medical Product Development
|
378 | 123 | 5,147 | |||||||||
Other Operations (c)
|
69,038 | 67,119 | 51,764 | |||||||||
Corporate (d)
|
906,480 | 744,337 | 98,815 | |||||||||
Total consolidated revenues and other income
|
$ | 1,570,768 | $ | 1,320,004 | $ | 575,208 | ||||||
Income (loss) from continuing operations before income taxes:
|
||||||||||||
Manufacturing:
|
||||||||||||
Idaho Timber
|
$ | (3,787 | ) | $ | 547 | $ | (12,680 | ) | ||||
Conwed Plastics
|
5,916 | 8,803 | 11,578 | |||||||||
Oil and Gas Drilling Services (b)
|
3,533 | (13,937 | ) | 46,738 | ||||||||
Gaming Entertainment
|
12,616 | (2,159 | ) | 2,379 | ||||||||
Domestic Real Estate
|
80,919 | (54,935 | ) | (71,298 | ) | |||||||
Medical Product Development
|
(42,696 | ) | (25,443 | ) | (23,818 | ) | ||||||
Other Operations (c)
|
(24,374 | ) | (17,487 | ) | (26,434 | ) | ||||||
Income (loss) related to Associated Companies
|
(612,362 | ) | 375,021 | 805,803 | ||||||||
Corporate (d)
|
648,861 | 473,614 | (167,619 | ) | ||||||||
Total consolidated income from continuing
|
||||||||||||
operations before income taxes
|
$ | 68,626 | $ | 744,024 | $ | 564,649 | ||||||
Depreciation and amortization expenses:
|
||||||||||||
Manufacturing: (e)
|
||||||||||||
Idaho Timber
|
$ | 5,299 | $ | 6,131 | $ | 8,631 | ||||||
Conwed Plastics
|
6,509 | 9,068 | 8,476 | |||||||||
Oil and Gas Drilling Services
|
21,051 | 25,447 | 3,103 | |||||||||
Gaming Entertainment
|
16,785 | 16,657 | 16,532 | |||||||||
Domestic Real Estate
|
3,461 | 6,163 | 8,408 | |||||||||
Medical Product Development
|
845 | 870 | 836 | |||||||||
Other Operations (e)
|
9,922 | 7,183 | 8,125 | |||||||||
Corporate
|
23,296 | 20,979 | 18,441 | |||||||||
Total consolidated depreciation and amortization expenses
|
$ | 87,168 | $ | 92,498 | $ | 72,552 | ||||||
Identifiable assets employed:
|
||||||||||||
Beef Processing
|
$ | 1,786,855 | $ | – | $ | – | ||||||
Manufacturing:
|
||||||||||||
Idaho Timber
|
71,859 | 84,436 | 94,211 | |||||||||
Conwed Plastics
|
56,539 | 60,822 | 67,940 | |||||||||
Oil and Gas Drilling Services
|
224,563 | 237,212 | 257,086 | |||||||||
Gaming Entertainment
|
243,888 | 253,221 | 266,951 | |||||||||
Domestic Real Estate
|
254,885 | 255,027 | 311,571 | |||||||||
Medical Product Development
|
27,893 | 16,950 | 26,702 | |||||||||
Other Operations
|
226,306 | 167,535 | 158,326 | |||||||||
Investments in Associated Companies
|
1,991,795 | 2,274,163 | 2,764,885 | |||||||||
Corporate
|
4,378,606 | 6,000,932 | 2,652,422 | |||||||||
Assets of discontinued operations
|
– | – | 162,270 | |||||||||
Total consolidated assets
|
$ | 9,263,189 | $ | 9,350,298 | $ | 6,762,364 |
(a)
|
Revenues and other income for each segment include amounts for services rendered and products sold, as well as segment reported amounts classified as investment and other income and net securities gains (losses) in the Company’s consolidated statements of operations.
|
(b)
|
Investment and other income for oil and gas drilling services includes a bargain purchase gain of $49,345,000 in 2009. For more information see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
(c)
|
Other operations include pre-tax losses of $28,598,000, $16,076,000 and $25,324,000 for the years ended December 31, 2011, 2010 and 2009, respectively, for the investigation and evaluation of various energy related projects. There were no significant operating revenues or identifiable assets associated with these activities in any period; however, other income includes $5,366,000 and $11,143,000 in 2011 and 2010, respectively, with respect to government grants to reimburse the Company for certain of its prior expenditures, which were fully expensed as incurred.
|
(d)
|
Net securities gains (losses) for Corporate aggregated $641,480,000, $179,494,000 and $(21,106,000) during 2011, 2010 and 2009, respectively. Corporate net securities gains (losses) are net of impairment charges of $3,586,000, $2,474,000 and $31,420,000 during 2011, 2010 and 2009, respectively. In 2011, security gains included gains of $628,197,000 from the sale of certain of the Company’s common shares of Fortescue. In 2010, security gains include a gain of $66,200,000 from the sale of the Company’s investment in Light and Power Holdings, Ltd. (“LPH”), the parent company of the principal electric utility in Barbados, and a gain of $94,918,000 from the sale of certain of the Company’s common shares of Fortescue. Corporate investment and other income includes the gain on sale of the Company’s remaining interest in the Cobre Las Cruces copper mining project (“Las Cruces”) to Inmet of $383,369,000 in 2010.
|
(e)
|
Includes amounts classified as cost of sales.
|
(f)
|
For the years ended December 31, 2011, 2010 and 2009, interest expense was primarily comprised of Corporate; interest expense for other segments was not significant.
|
Item 1B.
|
Unresolved Staff Comments.
|
Item 2.
|
Properties.
|
Item 3.
|
Legal Proceedings.
|
Item 4. Mine Safety Disclosures.
|
Item 10.
|
Executive Officers of the Registrant.
|
Name
|
Age
|
Position with Leucadia
|
Office Held Since
|
|||
Ian M. Cumming
|
71 |
Chairman of the Board
|
June 1978
|
|||
Joseph S. Steinberg
|
68 |
President
|
January 1979
|
|||
Thomas E. Mara
|
66 |
Executive Vice President
|
May 1980
|
|||
Joseph A. Orlando
|
56 |
Vice President and
|
January 1994;
|
|||
Chief Financial Officer
|
April 1996
|
|||||
Barbara L. Lowenthal
|
57 |
Vice President and
|
April 1996
|
|||
Comptroller
|
||||||
Justin R. Wheeler
|
39 |
Vice President
|
October 2006
|
|||
Joseph M. O’Connor
|
36 |
Vice President
|
May 2007
|
|||
Rocco J. Nittoli
|
53 |
Vice President and
|
September 2007;
|
|||
Treasurer
|
May 2007
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
Common Share
|
||||||||
High
|
Low
|
|||||||
2010
|
||||||||
First Quarter
|
$ | 26.06 | $ | 21.30 | ||||
Second Quarter
|
28.37 | 19.43 | ||||||
Third Quarter
|
24.21 | 18.80 | ||||||
Fourth Quarter
|
29.64 | 23.26 | ||||||
2011
|
||||||||
First Quarter
|
$ | 37.61 | $ | 29.77 | ||||
Second Quarter
|
39.02 | 32.11 | ||||||
Third Quarter
|
35.85 | 22.68 | ||||||
Fourth Quarter
|
28.61 | 20.42 | ||||||
2012
|
||||||||
First Quarter (through February 16, 2012)
|
$ | 29.72 | $ | 23.89 |
INDEXED RETURNS
|
||||||||||||||||||||||||
Base
|
Years Ending
|
|||||||||||||||||||||||
Period
|
||||||||||||||||||||||||
Company / Index
|
Dec06
|
Dec07
|
Dec08
|
Dec09
|
Dec10
|
Dec11
|
||||||||||||||||||
Leucadia National Corporation
|
100 | 167.91 | 70.59 | 84.81 | 104.92 | 82.66 | ||||||||||||||||||
S&P 500 Index
|
100 | 105.49 | 66.46 | 84.05 | 96.71 | 98.76 | ||||||||||||||||||
S&P 1500 Industrial Conglomerates
|
100 | 104.27 | 50.80 | 56.11 | 66.62 | 67.19 |
Item 6.
|
Selected Financial Data.
|
Year Ended December 31,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||||||
SELECTED INCOME STATEMENT DATA: (a)
|
||||||||||||||||||||
Revenues and other income (b)
|
$ | 1,570,768 | $ | 1,320,004 | $ | 575,208 | $ | 490,540 | $ | 714,762 | ||||||||||
Expenses
|
889,780 | 951,001 | 816,362 | 862,046 | 785,687 | |||||||||||||||
Income (loss) from continuing operations before income taxes and income (losses) related to associated companies
|
680,988 | 369,003 | (241,154 | ) | (371,506 | ) | (70,925 | ) | ||||||||||||
Income tax provision (benefit) (c)
|
270,253 | (1,139,318 | ) | 7,108 | 1,672,313 | (561,753 | ) | |||||||||||||
Income (loss) from continuing operations before income (losses) related to associated companies
|
410,735 | 1,508,321 | (248,262 | ) | (2,043,819 | ) | 490,828 | |||||||||||||
Income (losses) related to associated companies, net of taxes
|
(394,041 | ) | 380,766 | 780,236 | (539,068 | ) | (21,875 | ) | ||||||||||||
Income (loss) from continuing operations (c)
|
16,694 | 1,889,087 | 531,974 | (2,582,887 | ) | 468,953 | ||||||||||||||
Income from discontinued operations, including gain (loss) on disposal, net of taxes
|
8,262 | 51,149 | 16,621 | 46,075 | 11,319 | |||||||||||||||
Net income (loss) attributable to Leucadia National
|
||||||||||||||||||||
Corporation common shareholders
|
25,231 | 1,939,312 | 550,280 | (2,535,425 | ) | 484,294 | ||||||||||||||
Per share:
|
||||||||||||||||||||
Basic earnings (loss) per common share attributable
|
||||||||||||||||||||
to Leucadia National Corporation common
|
||||||||||||||||||||
shareholders:
|
||||||||||||||||||||
Income (loss) from continuing operations
|
$ | .07 | $ | 7.77 | $ | 2.21 | $ | (11.20 | ) | $ | 2.17 | |||||||||
Income from discontinued operations, including gain (loss) on disposal
|
.03 | .20 | .07 | .20 | .05 | |||||||||||||||
Net income (loss)
|
$ | .10 | $ | 7.97 | $ | 2.28 | $ | (11.00 | ) | $ | 2.22 | |||||||||
Diluted earnings (loss) per common share attributable
|
||||||||||||||||||||
to Leucadia National Corporation common
|
||||||||||||||||||||
shareholders:
|
||||||||||||||||||||
Income (loss) from continuing operations
|
$ | .07 | $ | 7.66 | $ | 2.18 | $ | (11.20 | ) | $ | 2.05 | |||||||||
Income from discontinued operations, including gain (loss) on disposal
|
.03 | .19 | .07 | .20 | .05 | |||||||||||||||
Net income (loss)
|
$ | .10 | $ | 7.85 | $ | 2.25 | $ | (11.00 | ) | $ | 2.10 |
At December 31,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||||||
SELECTED BALANCE SHEET DATA: (a)
|
||||||||||||||||||||
Cash and investments
|
$ | 2,545,500 | $ | 4,538,571 | $ | 2,343,420 | $ | 1,602,769 | $ | 4,168,439 | ||||||||||
Total assets
|
9,263,189 | 9,350,298 | 6,762,364 | 5,198,493 | 8,126,622 | |||||||||||||||
Indebtedness, including current maturities
|
2,323,183 | 2,092,249 | 1,970,371 | 2,080,891 | 2,135,161 | |||||||||||||||
Shareholders’ equity
|
6,174,396 | 6,956,758 | 4,361,647 | 2,676,797 | 5,570,492 | |||||||||||||||
Book value per common share
|
$ | 25.24 | $ | 28.53 | $ | 17.93 | $ | 11.22 | $ | 25.03 | ||||||||||
Cash dividends per common share
|
$ | .25 | $ | .25 | $ | – | $ | – | $ | .25 |
(a)
|
Subsidiaries are reflected above as consolidated entities from the date of acquisition. National Beef was acquired on December 30, 2011; however, since its operating activities subsequent to the acquisition during 2011 were not significant they were not included in the 2011 consolidated statement of operations. Keen was acquired in November 2009; for the periods prior to the acquisition the Company accounted for its equity interest in Keen under the equity method of accounting. Premier is reflected as a consolidated subsidiary beginning in August 2007. For additional information, see Note 3 of Notes to Consolidated Financial Statements.
|
(b)
|
Includes net securities gains (losses) of $641,476,000, $179,494,000, $(21,106,000), $(144,547,000) and $95,641,000 for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively. Net securities gains (losses) are net of impairment charges of $3,586,000, $2,474,000, $31,420,000, $143,416,000 and $36,834,000 for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively.
|
(c)
|
At December 31, 2010, the Company concluded that it was more likely than not that it would be able to realize a portion of the net deferred tax asset; accordingly, $1,157,111,000 of the deferred tax valuation allowance was reversed as a credit to income tax expense. During 2008, the Company recorded a charge to income tax expense of $1,672,138,000 to reserve for substantially all of its net deferred tax asset due to the uncertainty about the Company’s ability to generate sufficient taxable income to realize the net deferred tax asset. During 2007, the Company concluded that it was more likely than not that it would be able to realize a portion of the net deferred tax asset; accordingly, $542,686,000 of the deferred tax valuation allowance was reversed as a credit to income tax expense.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Payments Due by Period (in thousands)
|
||||||||||||||||||||
Contractual Cash Obligations
|
Total
|
Less than 1 Year
|
1-3 Years
|
4-5 Years
|
After 5 Years
|
|||||||||||||||
Indebtedness, including current maturities
|
$ | 2,327,320 | $ | 447,612 | $ | 583,347 | $ | 783,017 | $ | 513,344 | ||||||||||
Estimated interest expense on debt
|
500,025 | 117,972 | 188,134 | 110,992 | 82,927 | |||||||||||||||
Cattle commitments
|
101,399 | 101,399 | – | – | – | |||||||||||||||
Planned funding of pension and
|
||||||||||||||||||||
postretirement obligations
|
63,073 | 3,000 | 60,073 | – | – | |||||||||||||||
Operating leases, net of sublease income
|
104,872 | 20,227 | 34,065 | 17,654 | 32,926 | |||||||||||||||
Asset purchase obligations
|
16,648 | 5,158 | 7,835 | 2,388 | 1,267 | |||||||||||||||
Other
|
60,316 | 19,011 | 9,839 | 8,838 | 22,628 | |||||||||||||||
Total Contractual Cash Obligations
|
$ | 3,173,653 | $ | 714,379 | $ | 883,293 | $ | 922,889 | $ | 653,092 |
Projected benefit obligation
|
$ | 251,949 | ||
Funded status – balance sheet liability at December 31, 2011
|
63,073 | |||
Deferred losses included in other comprehensive income (loss)
|
104,424 | |||
Discount rate used to determine the projected benefit obligation
|
4.4 | % |
2011
|
2010
|
2009
|
||||||||||
Publicly traded securities
|
$ | 3,243 | $ | – | $ | 14,384 | ||||||
Non-public securities and private equity funds
|
8 | 767 | 2,224 | |||||||||
Non-agency mortgage-backed bond securitizations
|
335 | 1,707 | 14,812 | |||||||||
Totals
|
$ | 3,586 | $ | 2,474 | $ | 31,420 |
2011
|
2010
|
2009
|
||||||||||
Income (loss) from continuing operations before
|
||||||||||||
income taxes and income (losses) related to
|
||||||||||||
associated companies:
|
||||||||||||
Manufacturing:
|
||||||||||||
Idaho Timber
|
$ | (3,787 | ) | $ | 547 | $ | (12,680 | ) | ||||
Conwed Plastics
|
5,916 | 8,803 | 11,578 | |||||||||
Oil and Gas Drilling Services
|
3,533 | (13,937 | ) | 46,738 | ||||||||
Gaming Entertainment
|
12,616 | (2,159 | ) | 2,379 | ||||||||
Domestic Real Estate
|
80,919 | (54,935 | ) | (71,298 | ) | |||||||
Medical Product Development
|
(42,696 | ) | (25,443 | ) | (23,818 | ) | ||||||
Other Operations
|
(24,374 | ) | (17,487 | ) | (26,434 | ) | ||||||
Corporate
|
648,861 | 473,614 | (167,619 | ) | ||||||||
Total consolidated income (loss) from continuing
|
||||||||||||
operations before income taxes and income
|
||||||||||||
(losses) related to associated companies
|
680,988 | 369,003 | (241,154 | ) | ||||||||
Income (losses) related to associated companies
|
||||||||||||
before income taxes
|
(612,362 | ) | 375,021 | 805,803 | ||||||||
Total consolidated income from
|
||||||||||||
continuing operations before income taxes
|
68,626 | 744,024 | 564,649 | |||||||||
Income taxes:
|
||||||||||||
Income (loss) from continuing operations before
|
||||||||||||
income (losses) related to associated companies
|
(270,253 | ) | 1,139,318 | (7,108 | ) | |||||||
Associated companies
|
218,321 | 5,745 | (25,567 | ) | ||||||||
Total income taxes
|
(51,932 | ) | 1,145,063 | (32,675 | ) | |||||||
Income from continuing operations
|
$ | 16,694 | $ | 1,889,087 | $ | 531,974 |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income
|
$ | 159,026 | $ | 172,908 | $ | 142,709 | ||||||
Expenses:
|
||||||||||||
Cost of sales
|
150,651 | 159,689 | 140,428 | |||||||||
Salaries and incentive compensation
|
5,390 | 5,938 | 5,575 | |||||||||
Depreciation and amortization
|
4,136 | 4,138 | 4,317 | |||||||||
Selling, general and other expenses
|
2,636 | 2,596 | 5,069 | |||||||||
162,813 | 172,361 | 155,389 | ||||||||||
Income (loss) before income taxes
|
$ | (3,787 | ) | $ | 547 | $ | (12,680 | ) |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income
|
$ | 85,961 | $ | 87,073 | $ | 82,094 | ||||||
Expenses:
|
||||||||||||
Cost of sales
|
65,312 | 64,614 | 56,539 | |||||||||
Salaries and incentive compensation
|
6,092 | 6,493 | 6,740 | |||||||||
Depreciation and amortization
|
301 | 327 | 318 | |||||||||
Selling, general and other expenses
|
8,340 | 6,836 | 6,919 | |||||||||
80,045 | 78,270 | 70,516 | ||||||||||
Income before income taxes
|
$ | 5,916 | $ | 8,803 | $ | 11,578 |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income
|
$ | 136,146 | $ | 116,560 | $ | 60,459 | ||||||
Expenses:
|
||||||||||||
Direct operating expenses
|
100,639 | 93,281 | 8,830 | |||||||||
Interest
|
137 | 1,234 | 188 | |||||||||
Salaries and incentive compensation
|
4,834 | 3,406 | 398 | |||||||||
Depreciation and amortization
|
21,051 | 25,447 | 3,103 | |||||||||
Selling, general and other expenses
|
5,952 | 7,129 | 1,202 | |||||||||
132,613 | 130,497 | 13,721 | ||||||||||
Income (loss) before income taxes
|
$ | 3,533 | $ | (13,937 | ) | $ | 46,738 |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income
|
$ | 117,238 | $ | 114,809 | $ | 103,583 | ||||||
Expenses:
|
||||||||||||
Direct operating expenses
|
84,795 | 83,075 | 79,452 | |||||||||
Interest
|
33 | 244 | 489 | |||||||||
Salaries and incentive compensation
|
2,460 | 2,459 | 1,977 | |||||||||
Depreciation and amortization
|
16,785 | 16,657 | 16,532 | |||||||||
Selling, general and other expenses
|
549 | 14,533 | 2,754 | |||||||||
104,622 | 116,968 | 101,204 | ||||||||||
Income (loss) before income taxes
|
$ | 12,616 | $ | (2,159 | ) | $ | 2,379 |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income
|
$ | 96,501 | $ | 17,075 | $ | 30,637 | ||||||
Expenses:
|
||||||||||||
Interest
|
34 | 2,034 | 2,322 | |||||||||
Depreciation and amortization
|
3,461 | 6,163 | 8,408 | |||||||||
Other operating expenses, including impairment
|
||||||||||||
charges described below
|
12,087 | 63,813 | 91,205 | |||||||||
15,582 | 72,010 | 101,935 | ||||||||||
Income (loss) before income taxes
|
$ | 80,919 | $ | (54,935 | ) | $ | (71,298 | ) |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income
|
$ | 378 | $ | 123 | $ | 5,147 | ||||||
Expenses:
|
||||||||||||
Salaries and incentive compensation
|
12,415 | 9,710 | 9,641 | |||||||||
Depreciation and amortization
|
845 | 870 | 836 | |||||||||
Selling, general and other expenses
|
29,814 | 14,986 | 18,488 | |||||||||
43,074 | 25,566 | 28,965 | ||||||||||
|
||||||||||||
Loss before income taxes
|
$ | (42,696 | ) | $ | (25,443 | ) | $ | (23,818 | ) |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income
|
$ | 69,038 | $ | 67,119 | $ | 51,764 | ||||||
Expenses:
|
||||||||||||
Interest
|
1 | 12 | 31 | |||||||||
Salaries and incentive compensation
|
8,930 | 8,445 | 8,339 | |||||||||
Depreciation and amortization
|
5,605 | 4,094 | 4,840 | |||||||||
Selling, general and other expenses
|
78,876 | 72,055 | 64,988 | |||||||||
93,412 | 84,606 | 78,198 | ||||||||||
Loss before income taxes
|
$ | (24,374 | ) | $ | (17,487 | ) | $ | (26,434 | ) |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income (including net
|
||||||||||||
securities gains (losses))
|
$ | 906,480 | $ | 744,337 | $ | 98,815 | ||||||
Expenses:
|
||||||||||||
Interest
|
111,672 | 121,285 | 125,724 | |||||||||
Salaries and incentive compensation
|
41,425 | 60,464 | 45,659 | |||||||||
Depreciation and amortization
|
23,296 | 20,979 | 18,441 | |||||||||
Selling, general and other expenses
|
81,226 | 67,995 | 76,610 | |||||||||
257,619 | 270,723 | 266,434 | ||||||||||
Income (loss) before income taxes
|
$ | 648,861 | $ | 473,614 | $ | (167,619 | ) |
2011
|
2010
|
2009
|
||||||||||
Jefferies
|
$ | (668,282 | ) | $ | 157,873 | $ | 469,820 | |||||
Mueller
|
(6,093 | ) | – | – | ||||||||
ACF
|
– | 183,572 | 376,490 | |||||||||
Berkadia
|
29,033 | 16,166 | 20,811 | |||||||||
Garcadia
|
19,996 | 14,424 | (25,668 | ) | ||||||||
JHYH
|
11,211 | 20,053 | 37,249 | |||||||||
Linkem
|
(2,243 | ) | – | – | ||||||||
HomeFed
|
1,410 | 1,108 | 882 | |||||||||
Keen
|
– | – | (45,475 | ) | ||||||||
Las Cruces
|
– | (16,159 | ) | 1,046 | ||||||||
Other
|
2,606 | (2,016 | ) | (29,352 | ) | |||||||
Income (losses) related to associated
|
||||||||||||
companies before income taxes
|
(612,362 | ) | 375,021 | 805,803 | ||||||||
Income tax (expense) benefit
|
218,321 | 5,745 | (25,567 | ) | ||||||||
Income (losses) related to associated
|
||||||||||||
companies, net of taxes
|
$ | (394,041 | ) | $ | 380,766 | $ | 780,236 |
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
|
Expected Maturity Date
|
|||||||||||||||||||||||||||||||
2012
|
2013
|
2014
|
2015
|
2016
|
Thereafter
|
Total
|
Fair Value
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Rate Sensitive Assets:
|
||||||||||||||||||||||||||||||||
Available for Sale Fixed Income Securities:
|
||||||||||||||||||||||||||||||||
U.S. Government and
agencies
|
$ | 139,952 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 139,952 | $ | 139,952 | ||||||||||||||||
Weighted-Average
Interest Rate
|
.03 | % | ||||||||||||||||||||||||||||||
U.S. Government-
Sponsored Enterprises
|
$ | 94,342 | $ | 79,607 | $ | 65,259 | $ | 54,738 | $ | 46,649 | $ | 281,596 | $ | 622,191 | $ | 622,191 | ||||||||||||||||
Weighted-Average
Interest Rate
|
2.78 | % | 2.76 | % | 2.71 | % | 2.68 | % | 2.65 | % | 2.61 | % | ||||||||||||||||||||
Other Fixed Maturities:
|
||||||||||||||||||||||||||||||||
Rated Investment Grade
|
$ | 6,760 | $ | 4,132 | $ | 23,363 | $ | 764 | $ | 676 | $ | 3,836 | $ | 39,531 | $ | 39,531 | ||||||||||||||||
Weighted-Average
Interest Rate
|
3.59 | % | 2.30 | % | 5.00 | % | 5.88 | % | 5.89 | % | 5.95 | % | ||||||||||||||||||||
Rated Less Than Investment Grade/Not
Rated
|
$ | 6,332 | $ | 15,044 | $ | 4,706 | $ | 4,016 | $ | 459 | $ | 2,173 | $ | 32,730 | $ | 32,730 | ||||||||||||||||
Weighted-Average Interest Rate
|
7.12 | % | 7.02 | % | 5.53 | % | 6.25 | % | 5.41 | % | 5.41 | % | ||||||||||||||||||||
Rate Sensitive Liabilities:
|
||||||||||||||||||||||||||||||||
Fixed Interest Rate Borrowings
|
$ | 418,350 | $ | 407,496 | $ | 98,104 | $ | 454,413 | $ | - | $ | 511,344 | $ | 1,889,707 | $ | 1,959,015 | ||||||||||||||||
Weighted-Average
Interest Rate
|
3.17 | % | 7.32 | % | 7.60 | % | 7.67 | % | 7.39 | % | 8.51 | % | ||||||||||||||||||||
Variable Interest Rate Borrowings
|
$ | 29,262 | $ | 38,559 | $ | 39,307 | $ | 40,430 | $ | 283,918 | $ | 2,000 | $ | 433,476 | $ | 433,476 | ||||||||||||||||
Weighted-Average
Interest Rate
|
2.05 | % | 2.40 | % | 2.67 | % | 3.13 | % | 3.66 | % | 4.13 | % | ||||||||||||||||||||
Off-Balance Sheet Items:
|
||||||||||||||||||||||||||||||||
Unused Lines of Credit
|
$ | - | $ | - | $ | - | $ | - | $ | 134,921 | $ | - | $ | 134,921 | $ | 134,921 | ||||||||||||||||
Weighted-Average
Interest Rate
|
2.05 | % | 2.40 | % | 2.67 | % | 3.13 | % | 3.66 | % |
Item 8.
|
Financial Statements and Supplementary Data.
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|
Item 9A.
|
Controls and Procedures.
|
|
Evaluation of disclosure controls and procedures
|
|
Changes in internal control over financial reporting
|
·
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of the assets of the Company;
|
·
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
·
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.
|
Item 9B.
|
Other Information.
|
Item 10.
|
Directors, Executive Officers of the Registrant and Corporate Governance.
|
Item 11.
|
Executive Compensation.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence.
|
Item 14.
|
Principal Accountant Fees and Services.
|
Report of Independent Registered Public Accounting Firm
|
F-1
|
Financial Statements:
|
|
Consolidated Balance Sheets at December 31, 2011 and 2010
|
F-2
|
Consolidated Statements of Operations for the years ended December 31, 2011,
|
|
2010 and 2009
|
F-3
|
Consolidated Statements of Cash Flows for the years ended December 31, 2011,
|
|
2010 and 2009
|
F-5
|
Consolidated Statements of Changes in Equity for the years ended
|
|
December 31, 2011, 2010 and 2009
|
F-7
|
Notes to Consolidated Financial Statements
|
F-9
|
|
|
(2)
|
Financial Statement Schedule.
|
Schedule II – Valuation and Qualifying Accounts
|
F-55
|
|
(3)
|
See Item 15(b) below for a complete list of Exhibits to this Report, including Executive Compensation Plans and Arrangements.
|
|
3.1
|
Restated Certificate of Incorporation (filed as Exhibit 5.1 to the Company’s Current Report on Form 8-K dated July 14, 1993).*
|
|
3.2
|
Certificate of Amendment of the Certificate of Incorporation dated as of May 14, 2002 (filed as Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2003 (the “2003 10-K”)).*
|
|
3.3
|
Certificate of Amendment of the Certificate of Incorporation dated as of December 23, 2002 (filed as Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002).*
|
|
3.4
|
Amended and Restated By-laws as amended through March 2, 2009 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated March 3, 2009).*
|
|
3.5
|
Certificate of Amendment of the Certificate of Incorporation dated as of May 13, 2004 (filed as Exhibit 3.5 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004).*
|
|
3.6
|
Certificate of Amendment of the Certificate of Incorporation dated as of May 17, 2005 (filed as Exhibit 3.6 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 (the “2005 10-K”)).*
|
|
3.7
|
Certificate of Amendment of the Certificate of Incorporation dated as of May 23, 2007 (filed as Exhibit 4.7 to the Company’s Registration Statement on Form S-8 (No. 333-143770)).*
|
|
4.1
|
The Company undertakes to furnish the Securities and Exchange Commission, upon written request, a copy of all instruments with respect to long-term debt not filed herewith.
|
|
10.1
|
1999 Stock Option Plan as Amended and Restated (filed as Exhibit 99.1 to the Company’s Registration Statement on Form S-8 (No. 333-169377)).* +
|
|
10.2
|
Form of Grant Letter for the 1999 Stock Option Plan (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on February 24, 2012 (the “February 24, 2012 8-K”)).* +
|
|
10.3
|
Amended and Restated Shareholders Agreement dated as of June 30, 2003 among the Company, Ian M. Cumming and Joseph S. Steinberg (filed as Exhibit 10.5 to the 2003 10-K).* +
|
|
10.4
|
Services Agreement, dated as of January 1, 2004, between the Company and Ian M. Cumming (filed as Exhibit 10.37 to the 2005 10-K).*
|
|
10.5
|
Services Agreement, dated as of January 1, 2004, between the Company and Joseph S. Steinberg (filed as Exhibit 10.38 to the 2005 10-K).*
|
|
10.6
|
Leucadia National Corporation 2003 Senior Executive Annual Incentive Bonus Plan, as amended May 16, 2006 (filed as Annex A to the Company’s Proxy Statement dated April 17, 2006).* +
|
|
10.7
|
Employment Agreement made as of June 30, 2005 by and between the Company and Ian M. Cumming (filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K dated July 13, 2005 (the “July 13, 2005 8-K”)).* +
|
|
10.8
|
Employment Agreement made as of June 30, 2005 by and between the Company and Joseph S. Steinberg (filed as Exhibit 99.2 to the July 13, 2005 8-K).* +
|
|
10.9
|
Exhibit 1 to the Agreement and Plan of Reorganization between the Company and TLC Associates, dated February 23, 1989 (filed as Exhibit 3 to Amendment No. 12 to the Schedule 13D dated December 29, 2004 of Ian M. Cumming and Joseph S. Steinberg with respect to the Company).*
|
|
10.10
|
Amendment No. 1, dated as of May 16, 2006, to the Amended and Restated Shareholders Agreement dated as of June 30, 2003, by and among Ian M. Cumming, Joseph S. Steinberg and the Company (filed as Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006). * +
|
|
10.11
|
Subscription Agreement, dated as of July 15, 2006, by and among FMG Chichester Pty Ltd, the Company, and Fortescue Metals Group Ltd (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2006 (the “3rd Quarter 2006 10-Q”)).*
|
|
10.12
|
Amending Agreement, dated as of August 18, 2006, by and among FMG Chichester Pty Ltd, the Company and Fortescue Metals Group Ltd (filed as Exhibit 10.2 to the 3rd Quarter 2006 10-Q).*
|
|
10.13
|
Compensation Information Concerning Non-Employee Directors (filed under Item 1.01 of the Company’s Current Report on Form 8-K dated May 22, 2006).*
|
|
10.14
|
Leucadia National Corporation 2011 Senior Executive Warrant Plan (filed as Annex A to the Company’s Proxy Statement dated April 13, 2011).* +
|
|
10.15
|
Form of Common Share Purchase Warrant (filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011 (the “2nd Quarter 2011 10-Q”)).* +
|
|
10.16
|
Master Agreement for the Formation of a Limited Liability Company dated as of February 28, 2007, among Jefferies Group, Inc., Jefferies & Company, Inc. and Leucadia National Corporation (filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2007 (the “1st Quarter 2007 10-Q”)).*
|
|
10.17
|
Amended and Restated Limited Liability Company Agreement of Jefferies High Yield Holdings, LLC, dated as of April 2, 2007, by and among Jefferies Group, Inc., Jefferies & Company, Inc., Leucadia National Corporation, Jefferies High Yield Partners, LLC, Jefferies Employees Opportunity Fund LLC and Jefferies High Yield Holdings, LLC (filed as Exhibit 10.5 to the 1st Quarter 2007 10-Q).*
|
|
10.18
|
Deferred Compensation and Salary Continuation Agreement, dated March 2, 1977 by and between Terracor, a Utah Corporation and Ian M. Cumming (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 (the “1st Quarter 2009 10-Q”)).* +
|
|
10.19
|
First Amendment to Deferred Compensation and Salary Continuation Agreement, dated May 24, 1996 by and between the Company, as successor to Terracor, and Ian M. Cumming (filed as Exhibit 10.2 to the 1st Quarter 2009 10-Q).* +
|
|
10.20
|
Asset Put Agreement, dated September 2, 2009, among Berkadia III, LLC, Capmark Financial Group, Inc., Capmark Finance Inc. and Capmark Capital Inc., and solely with respect to Sections 2.5, 10.5, 10.7, 10.11, 10.16 and 10.17, Berkshire Hathaway Inc. and Leucadia National Corporation (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K/A filed on May 12, 2010).*
|
|
10.21
|
Credit Agreement dated as of December 10, 2009 among Berkadia Commercial Mortgage LLC and BH Finance LLC (filed as Exhibit 10.1 to the 2nd Quarter 2011 10-Q).*
|
|
10.22
|
Guaranty, dated as of December 10, 2009, by Leucadia National Corporation in favor of BH Finance LLC, in its own capacity as the lender under the Credit Agreement, dated as of December 10, 2009, among Berkadia Commercial Mortgage LLC and BH Finance LLC, and on behalf of each of the other Secured Parties under (and as defined in) the Credit Agreement (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 14, 2009).*
|
|
10.23
|
Letter Agreement, dated March 1, 2010, between the Corporation and Justin R. Wheeler (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 5, 2010).* +
|
|
10.24
|
Letter Agreement, dated June 22, 2010, between the Corporation and Thomas E. Mara/Joseph A. Orlando (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 22, 2010).* +
|
|
10.25
|
Shareholder Support and Voting Agreement dated as of July 21, 2010, among General Motors Holdings LLC, Goalie Texas Holdco Inc., Leucadia National Corporation, Phlcorp, Inc., Baldwin Enterprises, Inc., BEI Arch Holdings, LLC and BEI-Longhorn, LLC (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 22, 2010).*
|
|
10.26
|
Amendment No. 1 to Credit Agreement dated as of October 29, 2010 among Berkadia Commercial Mortgage LLC, BH Finance LLC and Baldwin Enterprises, Inc. (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 5, 2010).*
|
|
10.27
|
Participation Agreement dated as of October 29, 2010 between Baldwin Enterprises, Inc. and BH Finance LLC (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed November 5, 2010).*
|
|
10.28
|
Amendment No. 1 to Guaranty dated as of October 29, 2010 made by Leucadia National Corporation in favor of BH Finance LLC in its own capacity as a lender under the Credit Agreement referred to therein and on behalf of each of the other Secured Parties under the Credit Agreement (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed November 5, 2010).*
|
|
10.29
|
Share Purchase Agreement dated November 29, 2010, among Leucadia National Corporation, MK Resources LLC and Inmet Mining Corporation (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 1, 2010).*
|
|
10.30
|
Note Purchase Agreement dated November 29, 2010, among Leucadia National Corporation, Inmet Mining Corporation and Inmet Finance Company SARL (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed December 1, 2010).*
|
10.31
|
Registration Rights Agreement by and among Inmet Mining Corporation and the Investors Named Herein dated as of August 22, 2005 (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed December 1, 2010).*
|
10.32
|
Membership Interest Purchase Agreement among Leucadia National Corporation, National Beef Packing Company, LLC, U.S. Premium Beef, LLC, NBPCo Holdings, LLC, TKK Investments, LLC, TMKCo, LLC and TMK Holdings, LLC (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed December 30, 2011 (the “December 30, 2011 8-K”)).*
|
10.33
|
First Amended and Restated Limited Liability Company Agreement of National Beef Packing Company, dated as of December 30, 2011 (filed as Exhibit 10.1 to the December 30, 2011 8-K).*
|
10.34
|
Amended and Restated Credit Agreement by and between National Beef Packing Company, LLC, certain of its subsidiaries, the lenders party thereto, Coöperatieve Centrale Raiffeisen Boerenleenbank B.A., “Rabobank Nederland,” New York Branch, U.S. Bank National Association, Bank of America, N.A., Bank of Montreal and CoBank, ACB, dated as of June 4, 2010 (filed as Exhibit 10.2 to the December 30, 2011 8-K).*
|
10.35
|
First Amendment to Amended and Restated Credit Agreement by and among National Beef Packing Company, LLC, certain of its subsidiaries, the lenders party thereto and CoBank, ACB, dated as of June 4, 2010(filed as Exhibit 10.3 to the December 30, 2011 8-K).*
|
10.36
|
Limited Waiver and Second Amendment by and among National Beef Packing Company, LLC, certain of its subsidiaries, the lenders party thereto and CoBank, ACB, dated as of July 7, 2011 (filed as Exhibit 10.4 to the December 30, 2011 8-K).*
|
10.37
|
Third Amendment to the Amended and Restated Credit Agreement and Limited Consent by and among National Beef Packing Company, LLC, certain of its subsidiaries, the lenders party thereto and CoBank, ACB, dated as of December 5, 2011 (filed as Exhibit 10.5 to the December 30, 2011 8-K).*
|
10.38
|
Cattle Purchase and Sale Agreement by and between National Beef Packing Company, LLC and U.S. Premium Beef, LLC, dated as of December 30, 2011 (filed as Exhibit 10.6 to the December 30, 2011 8-K).*
|
10.39
|
Information Concerning Executive Compensation (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 9, 2012).* +
|
10.40
|
General Termination and Release dated as of December 31, 2011 by and among Berkadia Commercial Mortgage LLC, BH Finance LLC, Baldwin Enterprises, Inc., Berkadia Commercial Mortgage Inc. and Leucadia National Corporation (filed as Exhibit 10.2 to the February 24, 2012 8-K).
|
10.41
|
Agreement of Terms dated as of December 31, 2011 between Leucadia National Corporation and Berkshire Hathaway Inc. (filed as Exhibit 10.1 to the February 24, 2012 8-K).
|
|
21
|
Subsidiaries of the registrant.
|
|
23.1
|
Consent of PricewaterhouseCoopers LLP, with respect to the incorporation by reference into the Company’s Registration Statements on Form S-8 (No. 333-169377), Form S-8 (No. 333-51494), Form S-8 (No. 333-143770), and Form S-3 (No. 333-169379).
|
|
23.2
|
Consent of independent auditors from Deloitte & Touche LLP, with respect to the inclusion in this Annual Report on Form 10-K of the financial statements of AmeriCredit Corp. and with respect to the incorporation by reference in the Company’s Registration Statements on Form S-8 (No. 333-169377), Form S-8 (No. 333-51494), Form S-8 (No. 333-143770), and Form S-3 (No. 333-169379).
|
|
23.3
|
Consent of independent auditors from KPMG LLP, with respect to the inclusion in this Annual Report on Form 10-K of the financial statements of Jefferies Group, Inc. and with respect to the incorporation by reference in the Company’s Registration Statements on Form S-8 (No. 333-169377), Form S-8 (No. 333-51494), Form S-8 (No. 333-143770), and Form S-3 (No. 333-169379).
|
|
23.4
|
Consent of independent auditors from Deloitte & Touche LLP, with respect to the inclusion in this Annual Report on Form 10-K of the financial statements of Jefferies Group, Inc. and with respect to the incorporation by reference in the Company’s Registration Statements on Form S-8 (No. 333-169377), Form S-8 (No. 333-51494), Form S-8 (No. 333-143770), and Form S-3 (No. 333-169379).
|
|
31.1
|
Certification of Chairman of the Board and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification of President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.3
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification of Chairman of the Board and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
|
|
32.2
|
Certification of President pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
|
|
32.3
|
Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
|
|
101
|
Financial statements from the Annual Report on Form 10-K of Leucadia National Corporation for the year ended December 31, 2011, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Shareholders Equity, (v) the Notes to Consolidated Financial Statements and (vi) Financial Statement Schedule II – Valuation and Qualifying Accounts.
|
|
(c)
|
Financial statement schedules.
|
|
(1)
|
AmeriCredit Corp. financial statements as of and for the years ended June 30, 2010 and 2009.
|
|
(2)
|
Jefferies Group, Inc. financial statements as of November 30, 2011 and 2010, and for the years ended November 30, 2011 and December 31, 2009, and for the eleven month period ended November 30, 2010.
|
+
|
Management/Employment Contract or Compensatory Plan or Arrangement.
|
*
|
Incorporated by reference.
|
**
|
Furnished herewith pursuant to item 601(b) (32) of Regulation S-K.
|
SIGNATURES
|
LEUCADIA NATIONAL CORPORATION | |||
Date: February 27, 2012
|
By:
|
/s/ Barbara L. Lowenthal | |
Name: Barbara L. Lowenthal | |||
Title: Vice President and Comptroller | |||
Date
|
Signature
|
Title
|
|
February 27, 2012
|
By:
|
/s/ Ian M. Cumming
|
Chairman of the Board
|
Ian M. Cumming
|
(Principal Executive Officer)
|
||
February 27, 2012
|
By:
|
/s/ Joseph S. Steinberg
|
President and Director
|
Joseph S. Steinberg
|
(Principal Executive Officer)
|
||
February 27, 2012
|
By:
|
/s/ Joseph A. Orlando
|
Vice President and Chief Financial Officer
|
Joseph A. Orlando
|
(Principal Financial Officer)
|
||
February 27, 2012
|
By:
|
/s/ Barbara L. Lowenthal
|
Vice President and Comptroller
|
Barbara L. Lowenthal
|
(Principal Accounting Officer)
|
||
February 27, 2012
|
By:
|
/s/ Paul M. Dougan
|
Director
|
Paul M. Dougan
|
|||
February 27, 2012
|
By:
|
/s/ Alan J. Hirschfield
|
Director
|
Alan J. Hirschfield
|
|||
February 27, 2012
|
By:
|
/s/ James E. Jordan
|
Director
|
James E. Jordan
|
|||
February 27, 2012
|
By:
|
/s/ Jeffrey C. Keil
|
Director
|
Jeffrey C. Keil
|
|||
February 27, 2012
|
By:
|
/s/ Jesse Clyde Nichols, III
|
Director
|
Jesse Clyde Nichols, III
|
|||
February 27, 2012
|
By:
|
/s/ Michael Sorkin
|
Director
|
Michael Sorkin
|
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 168,490 | $ | 441,340 | ||||
Investments
|
150,135 | 264,572 | ||||||
Trade, notes and other receivables, net
|
369,123 | 150,328 | ||||||
Inventory
|
354,578 | 58,280 | ||||||
Current deferred tax asset
|
144,281 | – | ||||||
Prepaids and other current assets
|
66,872 | 71,070 | ||||||
Total current assets
|
1,253,479 | 985,590 | ||||||
Non-current investments ($432,768 and $413,858 collateralizing current liabilities)
|
2,226,875 | 3,832,659 | ||||||
Intangible assets, net and goodwill
|
876,589 | 42,636 | ||||||
Deferred tax asset, net
|
1,440,605 | 1,175,558 | ||||||
Other assets
|
420,157 | 452,321 | ||||||
Property, equipment and leasehold improvements, net
|
1,053,689 | 587,371 | ||||||
Investments in associated companies ($1,198,029 and $1,314,227 measured
|
||||||||
using fair value option)
|
1,991,795 | 2,274,163 | ||||||
Total
|
$ | 9,263,189 | $ | 9,350,298 | ||||
LIABILITIES
|
||||||||
Current liabilities:
|
||||||||
Trade payables and expense accruals
|
$ | 386,544 | $ | 176,592 | ||||
Other current liabilities
|
42,976 | 27,468 | ||||||
Securities sold under agreements to repurchase
|
417,479 | 401,121 | ||||||
Debt due within one year
|
30,133 | 142,659 | ||||||
Total current liabilities
|
877,132 | 747,840 | ||||||
Other non-current liabilities
|
96,316 | 90,608 | ||||||
Long-term debt
|
1,875,571 | 1,548,469 | ||||||
Total liabilities
|
2,849,019 | 2,386,917 | ||||||
Commitments and contingencies
|
||||||||
Redeemable noncontrolling interests in subsidiary
|
235,909 | – | ||||||
EQUITY
|
||||||||
Common shares, par value $1 per share, authorized 600,000,000
|
||||||||
shares; 244,582,588 and 243,808,147 shares issued and
|
||||||||
outstanding, after deducting 47,006,711 and 47,525,707 shares
|
||||||||
held in treasury
|
244,583 | 243,808 | ||||||
Additional paid-in capital
|
1,570,684 | 1,542,964 | ||||||
Accumulated other comprehensive income
|
912,421 | 1,687,363 | ||||||
Retained earnings
|
3,446,708 | 3,482,623 | ||||||
Total Leucadia National Corporation shareholders’ equity
|
6,174,396 | 6,956,758 | ||||||
Noncontrolling interest
|
3,865 | 6,623 | ||||||
Total equity
|
6,178,261 | 6,963,381 | ||||||
Total
|
$ | 9,263,189 | $ | 9,350,298 |
2011
|
2010
|
2009
|
||||||||||
REVENUES AND OTHER INCOME:
|
||||||||||||
Manufacturing
|
$ | 244,918 | $ | 259,841 | $ | 224,460 | ||||||
Oil and gas drilling services
|
133,782 | 116,542 | 11,102 | |||||||||
Gaming entertainment
|
117,217 | 114,763 | 103,495 | |||||||||
Investment and other income
|
433,375 | 649,364 | 257,257 | |||||||||
Net securities gains (losses)
|
641,476 | 179,494 | (21,106 | ) | ||||||||
1,570,768 | 1,320,004 | 575,208 | ||||||||||
EXPENSES:
|
||||||||||||
Manufacturing cost of sales
|
215,963 | 224,303 | 196,967 | |||||||||
Direct operating expenses:
|
||||||||||||
Oil and gas drilling services
|
100,639 | 93,281 | 8,830 | |||||||||
Gaming entertainment
|
84,795 | 83,075 | 79,452 | |||||||||
Interest
|
111,877 | 124,809 | 128,754 | |||||||||
Salaries and incentive compensation
|
83,171 | 98,433 | 79,837 | |||||||||
Depreciation and amortization
|
75,480 | 78,675 | 56,795 | |||||||||
Selling, general and other expenses
|
217,855 | 248,425 | 265,727 | |||||||||
889,780 | 951,001 | 816,362 | ||||||||||
Income (loss) from continuing operations before income taxes
|
||||||||||||
and income (losses) related to associated companies
|
680,988 | 369,003 | (241,154 | ) | ||||||||
Income tax provision (benefit):
|
||||||||||||
Current
|
30,326 | 17,793 | 7,108 | |||||||||
Deferred
|
239,927 | (1,157,111 | ) | – | ||||||||
270,253 | (1,139,318 | ) | 7,108 | |||||||||
Income (loss) from continuing operations before income (losses)
|
||||||||||||
related to associated companies
|
410,735 | 1,508,321 | (248,262 | ) | ||||||||
Income (losses) related to associated companies, net of income tax
|
||||||||||||
provision (benefit) of $(218,321), $(5,745) and $25,567
|
(394,041 | ) | 380,766 | 780,236 | ||||||||
Income from continuing operations
|
16,694 | 1,889,087 | 531,974 | |||||||||
Income (loss) from discontinued operations, net of income tax
|
||||||||||||
provision (benefit) of $(1,009) , $0 and $35
|
1,977 | (9,848 | ) | 16,621 | ||||||||
Gain on disposal of discontinued operations, net of income
|
||||||||||||
tax provision of $3,384, $0 and $0
|
6,285 | 60,997 | – | |||||||||
Net income
|
24,956 | 1,940,236 | 548,595 | |||||||||
Net (income) loss attributable to the noncontrolling interest
|
275 | (924 | ) | 1,685 | ||||||||
Net income attributable to Leucadia National Corporation
|
||||||||||||
common shareholders
|
$ | 25,231 | $ | 1,939,312 | $ | 550,280 |
The accompanying notes are an integral part of these consolidated financial statements.
|
2011
|
2010
|
2009
|
||||||||||
Basic earnings (loss) per common share attributable to Leucadia
|
||||||||||||
National Corporation common shareholders:
|
||||||||||||
Income from continuing operations
|
$ | .07 | $ | 7.77 | $ | 2.21 | ||||||
Income (loss) from discontinued operations
|
.01 | (.04 | ) | .07 | ||||||||
Gain on disposal of discontinued operations
|
.02 | .24 | – | |||||||||
Net income
|
$ | .10 | $ | 7.97 | $ | 2.28 | ||||||
Diluted earnings (loss) per common share attributable to Leucadia
|
||||||||||||
National Corporation common shareholders:
|
||||||||||||
Income from continuing operations
|
$ | .07 | $ | 7.66 | $ | 2.18 | ||||||
Income (loss) from discontinued operations
|
.01 | (.04 | ) | .07 | ||||||||
Gain on disposal of discontinued operations
|
.02 | .23 | – | |||||||||
Net income
|
$ | .10 | $ | 7.85 | $ | 2.25 | ||||||
Amounts attributable to Leucadia National Corporation common
|
||||||||||||
shareholders:
|
||||||||||||
Income from continuing operations, net of taxes
|
$ | 16,969 | $ | 1,891,352 | $ | 533,659 | ||||||
Income (loss) from discontinued operations, net of taxes
|
1,977 | (9,848 | ) | 16,621 | ||||||||
Gain on disposal of discontinued operations, net of taxes
|
6,285 | 57,808 | – | |||||||||
Net income
|
$ | 25,231 | $ | 1,939,312 | $ | 550,280 |
2011
|
2010
|
2009
|
||||||||||
Net cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 24,956 | $ | 1,940,236 | $ | 548,595 | ||||||
Adjustments to reconcile net income to net cash provided by
|
||||||||||||
(used for) operations:
|
||||||||||||
Deferred income tax provision (benefit)
|
22,424 | (1,166,417 | ) | 19,612 | ||||||||
Depreciation and amortization of property, equipment and leasehold improvements
|
68,059 | 78,975 | 61,946 | |||||||||
Other amortization
|
27,174 | 25,755 | 24,431 | |||||||||
Share-based compensation
|
23,264 | 4,260 | 11,106 | |||||||||
Excess tax benefit from exercise of stock options
|
(242 | ) | (189 | ) | (15 | ) | ||||||
Provision for doubtful accounts
|
750 | 3,003 | 2,615 | |||||||||
Net securities (gains) losses
|
(641,476 | ) | (179,494 | ) | 21,106 | |||||||
(Income) losses related to associated companies
|
612,362 | (375,021 | ) | (805,803 | ) | |||||||
Distributions from associated companies
|
39,716 | 454,094 | 36,692 | |||||||||
Net (gains) losses related to real estate, property and equipment, and other assets
|
(95,687 | ) | (320,274 | ) | 46,074 | |||||||
Income related to Fortescue’s Pilbara project, net of proceeds received
|
(24,222 | ) | 22,887 | (66,079 | ) | |||||||
Bargain purchase gain related to Keen
|
– | – | (49,345 | ) | ||||||||
Common shares received in connection with lawsuit resolution
|
– | – | (15,222 | ) | ||||||||
(Gain) loss on buyback of debt
|
6,352 | 5,138 | (6,693 | ) | ||||||||
Loss on debt conversion
|
– | – | 25,990 | |||||||||
(Gain) loss on disposal of discontinued operations
|
(9,669 | ) | (60,997 | ) | – | |||||||
Change in estimated litigation reserve
|
(2,241 | ) | 14,099 | – | ||||||||
Pension plan settlement charge
|
– | 12,728 | – | |||||||||
Investments classified as trading, net
|
– | – | (1,132 | ) | ||||||||
Net change in:
|
||||||||||||
Restricted cash
|
1,601 | (473 | ) | (115 | ) | |||||||
Trade, notes and other receivables
|
92 | (11,496 | ) | 14,222 | ||||||||
Prepaids and other assets
|
(7,248 | ) | (3,470 | ) | 11,679 | |||||||
Trade payables and expense accruals
|
(7,418 | ) | 36,608 | (13,778 | ) | |||||||
Other liabilities
|
(34,459 | ) | (29,603 | ) | 358 | |||||||
Deferred revenue
|
(476 | ) | (16,972 | ) | (16,670 | ) | ||||||
Income taxes payable
|
6,091 | (466 | ) | 17,462 | ||||||||
Other
|
(619 | ) | (1,645 | ) | (434 | ) | ||||||
Net cash provided by (used for) operating activities
|
9,084 | 431,266 | (133,398 | ) | ||||||||
Net cash flows from investing activities:
|
||||||||||||
Acquisition of property, equipment and leasehold improvements
|
(38,586 | ) | (44,344 | ) | (23,566 | ) | ||||||
Acquisitions of and capital expenditures for real estate investments
|
(8,032 | ) | (8,173 | ) | (10,095 | ) | ||||||
Proceeds from disposals of real estate, property and equipment, and other assets
|
26,434 | 155,961 | 26,158 | |||||||||
Proceeds from (payments related to) disposal of discontinued operations,
|
||||||||||||
net of expenses and cash of operations sold
|
10,922 | 59,380 | – | |||||||||
Acquisitions, net of cash acquired
|
(1,019,041 | ) | (11,261 | ) | (3,134 | ) | ||||||
Proceeds from lawsuits and other settlements
|
– | 3,565 | 9,500 | |||||||||
Net change in restricted cash
|
10,519 | 717 | 655 | |||||||||
Advances on notes and other receivables
|
(4,511 | ) | (8,595 | ) | (4,172 | ) | ||||||
Collections on notes, loans and other receivables
|
19,392 | 22,062 | 28,835 | |||||||||
Investments in associated companies
|
(700,624 | ) | (322,730 | ) | (282,271 | ) | ||||||
Capital distributions and loan repayment from associated companies
|
323,936 | 503,519 | 105,735 | |||||||||
Purchases of investments (other than short-term)
|
(3,532,925 | ) | (1,779,821 | ) | (2,235,140 | ) | ||||||
Proceeds from maturities of investments
|
506,061 | 284,873 | 344,724 | |||||||||
Proceeds from sales of investments
|
4,227,660 | 939,821 | 2,114,177 | |||||||||
Other
|
3,498 | (3,692 | ) | 565 | ||||||||
Net cash provided by (used for) investing activities
|
(175,297 | ) | (208,718 | ) | 71,971 |
2011
|
2010
|
2009
|
||||||||||
Net cash flows from financing activities:
|
||||||||||||
Issuance of debt, net of issuance costs
|
$ | 93,116 | $ | 211,695 | $ | 50,122 | ||||||
Reduction of debt
|
(144,558 | ) | (94,999 | ) | (42,966 | ) | ||||||
Purchase of interest in subsidiary by noncontrolling interest
|
7,500 | – | – | |||||||||
Premium paid on debt conversion
|
– | – | (25,990 | ) | ||||||||
Issuance of common shares
|
7,126 | 11,295 | 958 | |||||||||
Purchase of common shares for treasury
|
(155 | ) | (18 | ) | – | |||||||
Excess tax benefit from exercise of stock options
|
242 | 189 | 15 | |||||||||
Dividends paid
|
(61,146 | ) | (60,952 | ) | – | |||||||
Other
|
(8,762 | ) | (2,546 | ) | (4,087 | ) | ||||||
Net cash provided by (used for) financing activities
|
(106,637 | ) | 64,664 | (21,948 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
(272,850 | ) | 287,212 | (83,375 | ) | |||||||
Cash and cash equivalents at January 1, including cash classified as
|
||||||||||||
current assets of discontinued operations
|
441,340 | 154,128 | 237,503 | |||||||||
Cash and cash equivalents at December 31, including cash classified as
|
||||||||||||
current assets of discontinued operations
|
$ | 168,490 | $ | 441,340 | $ | 154,128 | ||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$ | 112,771 | $ | 123,857 | $ | 129,598 | ||||||
Income tax payments (refunds), net
|
$ | 26,175 | $ | 22,227 | $ | (4,364 | ) | |||||
Non-cash financing activities:
|
||||||||||||
Issuance of common shares for debt conversion
|
$ | – | $ | – | $ | 123,529 |
Leucadia National Corporation Common Shareholders
|
||||||||||||||||||||||||||||
Common
|
Accumulated
|
|||||||||||||||||||||||||||
Shares
|
Additional
|
Other
|
||||||||||||||||||||||||||
$1 Par
|
Paid-In
|
Comprehensive
|
Retained
|
Noncontrolling
|
||||||||||||||||||||||||
Value
|
Capital
|
Income (Loss)
|
Earnings
|
Subtotal
|
Interest
|
Total
|
||||||||||||||||||||||
Balance, January 1, 2009
|
$ | 238,499 | $ | 1,413,595 | $ | (29,280 | ) | $ | 1,053,983 | $ | 2,676,797 | $ | 18,594 | $ | 2,695,391 | |||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net change in unrealized gain (loss) on
|
||||||||||||||||||||||||||||
investments, net of tax provision
|
||||||||||||||||||||||||||||
of $36,348
|
1,010,162 | 1,010,162 | 1,010,162 | |||||||||||||||||||||||||
Net change in unrealized foreign
|
||||||||||||||||||||||||||||
exchange gain (loss), net of tax
|
||||||||||||||||||||||||||||
provision of $51
|
3,602 | 3,602 | 3,602 | |||||||||||||||||||||||||
Net change in unrealized gain (loss)
|
||||||||||||||||||||||||||||
on derivative instruments, net of tax
|
||||||||||||||||||||||||||||
provision of $16
|
1,125 | 1,125 | 1,125 | |||||||||||||||||||||||||
Net change in pension liability and
|
||||||||||||||||||||||||||||
postretirement benefits, net of tax
|
||||||||||||||||||||||||||||
benefit of $8
|
(577 | ) | (577 | ) | (577 | ) | ||||||||||||||||||||||
Net income
|
550,280 | 550,280 | (1,685 | ) | 548,595 | |||||||||||||||||||||||
Comprehensive income
|
1,564,592 | (1,685 | ) | 1,562,907 | ||||||||||||||||||||||||
Contributions from noncontrolling interests
|
899 | 899 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
(4,986 | ) | (4,986 | ) | ||||||||||||||||||||||||
Change in interest in consolidated subsidiary
|
(28 | ) | (28 | ) | 28 | – | ||||||||||||||||||||||
Share-based compensation expense
|
11,106 | 11,106 | 11,106 | |||||||||||||||||||||||||
Issuance of common shares for debt
|
||||||||||||||||||||||||||||
conversion
|
5,378 | 118,151 | 123,529 | 123,529 | ||||||||||||||||||||||||
Common shares received from lawsuit
|
||||||||||||||||||||||||||||
resolution
|
(636 | ) | (14,686 | ) | (15,322 | ) | (15,322 | ) | ||||||||||||||||||||
Exercise of options to purchase common
|
||||||||||||||||||||||||||||
shares, including excess tax benefit
|
47 | 926 | 973 | 973 | ||||||||||||||||||||||||
Balance, December 31, 2009
|
243,288 | 1,529,064 | 985,032 | 1,604,263 | 4,361,647 | 12,850 | 4,374,497 | |||||||||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net change in unrealized gain (loss) on
|
||||||||||||||||||||||||||||
investments, net of tax benefit
|
||||||||||||||||||||||||||||
of $25,129
|
715,593 | 715,593 | 715,593 | |||||||||||||||||||||||||
Net change in unrealized foreign
|
||||||||||||||||||||||||||||
exchange gain (loss), net of tax
|
||||||||||||||||||||||||||||
benefit of $97
|
(7,862 | ) | (7,862 | ) | (7,862 | ) | ||||||||||||||||||||||
Net change in unrealized gain (loss)
|
||||||||||||||||||||||||||||
on derivative instruments, net of tax
|
||||||||||||||||||||||||||||
provision of $4
|
306 | 306 | 306 | |||||||||||||||||||||||||
Net change in pension liability and
|
||||||||||||||||||||||||||||
postretirement benefits, net of tax
|
||||||||||||||||||||||||||||
provision of $377
|
(5,706 | ) | (5,706 | ) | (5,706 | ) | ||||||||||||||||||||||
Net income
|
1,939,312 | 1,939,312 | 924 | 1,940,236 | ||||||||||||||||||||||||
Comprehensive income
|
2,641,643 | 924 | 2,642,567 | |||||||||||||||||||||||||
Contributions from noncontrolling interests
|
1,424 | 1,424 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
(14,757 | ) | (14,757 | ) | ||||||||||||||||||||||||
Change in interest in consolidated subsidiary
|
(1,306 | ) | (1,306 | ) | 6,182 | 4,876 | ||||||||||||||||||||||
Share-based compensation expense
|
4,260 | 4,260 | 4,260 | |||||||||||||||||||||||||
Exercise of options to purchase common
|
||||||||||||||||||||||||||||
shares, including excess tax benefit
|
521 | 10,963 | 11,484 | 11,484 | ||||||||||||||||||||||||
Purchase of common shares for treasury
|
(1 | ) | (17 | ) | (18 | ) | (18 | ) | ||||||||||||||||||||
Dividends ($.25 per common share)
|
(60,952 | ) | (60,952 | ) | (60,952 | ) |
Leucadia National Corporation Common Shareholders
|
||||||||||||||||||||||||||||
Common
|
Accumulated
|
|||||||||||||||||||||||||||
Shares
|
Additional
|
Other
|
||||||||||||||||||||||||||
$1 Par
|
Paid-In
|
Comprehensive
|
Retained
|
Noncontrolling
|
||||||||||||||||||||||||
Value
|
Capital
|
Income (Loss)
|
Earnings
|
Subtotal
|
Interest
|
Total
|
||||||||||||||||||||||
Balance, December 31, 2010
|
$ | 243,808 | $ | 1,542,964 | $ | 1,687,363 | $ | 3,482,623 | $ | 6,956,758 | $ | 6,623 | $ | 6,963,381 | ||||||||||||||
Comprehensive loss:
|
||||||||||||||||||||||||||||
Net change in unrealized gain (loss) on
|
||||||||||||||||||||||||||||
investments, net of tax benefit
|
||||||||||||||||||||||||||||
of $417,299
|
(751,606 | ) | (751,606 | ) | (751,606 | ) | ||||||||||||||||||||||
Net change in unrealized foreign
|
||||||||||||||||||||||||||||
exchange gain (loss), net of tax
|
||||||||||||||||||||||||||||
provision of $372
|
670 | 670 | 670 | |||||||||||||||||||||||||
Net change in pension liability and
|
||||||||||||||||||||||||||||
postretirement benefits, net of tax
|
||||||||||||||||||||||||||||
benefit of $13,329
|
(24,006 | ) | (24,006 | ) | (24,006 | ) | ||||||||||||||||||||||
Net income
|
25,231 | 25,231 | (275 | ) | 24,956 | |||||||||||||||||||||||
Comprehensive loss
|
(749,711 | ) | (275 | ) | (749,986 | ) | ||||||||||||||||||||||
Contributions from noncontrolling interests
|
660 | 660 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
(5,843 | ) | (5,843 | ) | ||||||||||||||||||||||||
Change in interest in consolidated subsidiary
|
(1,982 | ) | (1,982 | ) | 2,700 | 718 | ||||||||||||||||||||||
Share-based compensation expense
|
23,264 | 23,264 | 23,264 | |||||||||||||||||||||||||
Exercise of warrants to purchase common
|
||||||||||||||||||||||||||||
shares
|
523 | (523 | ) | – | – | |||||||||||||||||||||||
Exercise of options to purchase common
|
||||||||||||||||||||||||||||
shares, including excess tax benefit
|
256 | 7,112 | 7,368 | 7,368 | ||||||||||||||||||||||||
Purchase of common shares for treasury
|
(4 | ) | (151 | ) | (155 | ) | (155 | ) | ||||||||||||||||||||
Dividends ($.25 per common share)
|
(61,146 | ) | (61,146 | ) | (61,146 | ) | ||||||||||||||||||||||
Balance, December 31, 2011
|
$ | 244,583 | $ | 1,570,684 | $ | 912,421 | $ | 3,446,708 | $ | 6,174,396 | $ | 3,865 | $ | 6,178,261 |
1.
|
Nature of Operations:
|
2.
|
Significant Accounting Policies:
|
2011
|
2010
|
2009
|
||||||||||
Publicly traded securities
|
$ | 3,243 | $ | – | $ | 14,384 | ||||||
Non-public securities and private equity funds
|
8 | 767 | 2,224 | |||||||||
Non-agency mortgage-backed bond securitizations
|
335 | 1,707 | 14,812 | |||||||||
Totals
|
$ | 3,586 | $ | 2,474 | $ | 31,420 |
(a)
|
The Company purchased 76.1% of National Beef from USPB and NBPCo Holdings for aggregate cash consideration of $875,369,000.
|
(b)
|
TKK and TMKCo exercised their put rights with respect to their aggregate 5.1% interest in National Beef and National Beef redeemed their interest for aggregate cash payments of $75,947,000. National Beef borrowed funds under its revolving credit facility to finance the redemption. Upon completion of this redemption the Company’s interest in National Beef increased to 79.6%.
|
(c)
|
TMK purchased a .7% interest in National Beef from the Company for a cash payment of $7,500,000, reducing the Company’s interest to 78.9%.
|
As of
December 30, 2011
|
||||
Assets:
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$ | 18,481 | ||
Trade, notes and other receivables
|
195,643 | |||
Inventory
|
280,499 | |||
Prepaids and other current assets
|
22,969 | |||
Total current assets
|
517,592 | |||
Intangible assets and goodwill
|
818,484 | |||
Other assets
|
4,613 | |||
Property and equipment
|
446,166 | |||
Total assets
|
1,786,855 | |||
Liabilities:
|
||||
Current liabilities:
|
||||
Trade payables and expense accruals
|
234,451 | |||
Other current liabilities
|
13,746 | |||
Debt due within one year
|
29,262 | |||
Total current liabilities
|
277,459 | |||
Other non-current liabilities
|
1,404 | |||
Long-term debt
|
328,267 | |||
Total liabilities
|
607,130 | |||
Redeemable noncontrolling interests
|
||||
in subsidiary
|
304,356 | |||
Net assets acquired
|
$ | 875,369 |
Amortization
|
||||||||
Amount
|
Years
|
|||||||
Customer relationships
|
$ | 405,180 | 18 | |||||
Tradenames
|
260,059 | 20 | ||||||
Cattle supply contracts
|
143,500 | 15 | ||||||
Other
|
830 | 10 | ||||||
Subtotal, intangible assets
|
809,569 | |||||||
Goodwill
|
8,915 | |||||||
Total
|
$ | 818,484 |
2011
|
2010
|
|||||||
Revenues and other income
|
$ | 8,609,304 | $ | 7,365,903 | ||||
Net income attributable to Leucadia National
|
||||||||
Corporation common shareholders
|
$ | 112,734 | $ | 2,050,684 |
|
A summary of investments in associated companies at December 31, 2011 and 2010 is as follows (in thousands):
|
2011
|
2010
|
|||||||
Investments in associated companies accounted for
|
||||||||
under the equity method of accounting (a):
|
||||||||
Jefferies High Yield Holdings, LLC (“JHYH”)
|
$ | 323,262 | $ | 321,023 | ||||
Berkadia
|
193,496 | 475,071 | ||||||
Garcadia
|
72,303 | 35,943 | ||||||
HomeFed Corporation (“HomeFed”)
|
47,493 | 46,083 | ||||||
Brooklyn Renaissance Plaza
|
31,931 | 30,539 | ||||||
Linkem S.p.A. ("Linkem")
|
86,332 | – | ||||||
Other
|
38,949 | 51,277 | ||||||
Total accounted for under the equity method of accounting
|
793,766 | 959,936 | ||||||
Investments in associated companies carried at fair value:
|
||||||||
Jefferies
|
797,583 | 1,314,227 | ||||||
Mueller
|
400,446 | – | ||||||
Total accounted for at fair value
|
1,198,029 | 1,314,227 | ||||||
Total investments in associated companies
|
$ | 1,991,795 | $ | 2,274,163 |
(a)
|
Investments accounted for under the equity method of accounting are initially recorded at their original cost and subsequently increased for the Company's share of the investees’ earnings, decreased for the Company's share of the investees’ losses, reduced for dividends received and impairment charges recorded, if any, and increased for any additional investment of capital.
|
2011
|
2010
|
2009
|
||||||||||
Jefferies
|
$ | (668,282 | ) | $ | 157,873 | $ | 469,820 | |||||
Mueller
|
(6,093 | ) | – | – | ||||||||
ACF
|
– | 183,572 | 376,490 | |||||||||
Berkadia
|
29,033 | 16,166 | 20,811 | |||||||||
Garcadia
|
19,996 | 14,424 | (25,668 | ) | ||||||||
JHYH
|
11,211 | 20,053 | 37,249 | |||||||||
Linkem
|
(2,243 | ) | – | – | ||||||||
HomeFed
|
1,410 | 1,108 | 882 | |||||||||
Keen
|
– | – | (45,475 | ) | ||||||||
Las Cruces
|
– | (16,159 | ) | 1,046 | ||||||||
Other
|
2,606 | (2,016 | ) | (29,352 | ) | |||||||
Income (losses) related to associated
|
||||||||||||
companies before income taxes
|
(612,362 | ) | 375,021 | 805,803 | ||||||||
Income tax (expense) benefit
|
218,321 | 5,745 | (25,567 | ) | ||||||||
Income (losses) related to associated
|
||||||||||||
companies, net of taxes
|
$ | (394,041 | ) | $ | 380,766 | $ | 780,236 |
2011
|
2010
|
|||||||||||
Assets
|
$ | 6,849,185 | $ | 4,190,534 | ||||||||
Liabilities
|
3,813,236 | 1,882,116 | ||||||||||
Mandatorily redeemable interests
|
982,057 | 975,812 | ||||||||||
Noncontrolling interest
|
47,675 | 17,471 | ||||||||||
2011 | 2010 | 2009 | ||||||||||
Total revenues (including securities gains (losses))
|
$ | 3,823,061 | $ | 1,124,140 | $ | 690,156 | ||||||
Income (loss) from continuing operations before
|
||||||||||||
extraordinary items
|
$ | 148,661 | $ | 43,688 | $ | (294,741 | ) | |||||
Net income (loss)
|
$ | 148,661 | $ | 43,797 | $ | (294,741 | ) | |||||
The Company’s income (losses) related to
|
||||||||||||
associated companies
|
$ | 55,920 | $ | 33,576 | $ | (40,507 | ) |
2011
|
2010
|
2009
|
||||||||||
Revenues and other income:
|
||||||||||||
Telecommunications
|
$ | – | $ | 276,253 | $ | 426,027 | ||||||
Property management and service fees
|
– | 87,039 | 112,796 | |||||||||
Investment and other income
|
952 | 10,527 | 4,971 | |||||||||
952 | 373,819 | 543,794 | ||||||||||
Expenses:
|
||||||||||||
Cost of sales - telecommunications
|
– | 235,943 | 363,885 | |||||||||
Direct operating expenses - property
|
||||||||||||
management and services
|
– | 62,595 | 92,421 | |||||||||
Interest
|
4 | 15 | 49 | |||||||||
Salaries and incentive compensation
|
611 | 11,958 | 16,755 | |||||||||
Depreciation and amortization
|
– | 7,084 | 8,438 | |||||||||
Selling, general and other expenses
|
4,059 | 77,712 | 72,065 | |||||||||
4,674 | 395,307 | 553,613 | ||||||||||
Loss from discontinued
|
||||||||||||
operations before income taxes
|
(3,722 | ) | (21,488 | ) | (9,819 | ) | ||||||
Income tax provision (benefit)
|
(1,009 | ) | – | 35 | ||||||||
Loss from discontinued
|
||||||||||||
operations after income taxes
|
$ | (2,713 | ) | $ | (21,488 | ) | $ | (9,854 | ) |
2011
|
2010
|
|||||||||||||||
Carrying Value
|
Carrying Value
|
|||||||||||||||
Amortized
|
and Estimated
|
Amortized
|
and Estimated
|
|||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Investments available for sale
|
$ | 146,594 | $ | 145,977 | $ | 253,273 | $ | 253,589 | ||||||||
Other investments, including accrued interest income
|
4,113 | 4,158 | 11,067 | 10,983 | ||||||||||||
Total current investments
|
$ | 150,707 | $ | 150,135 | $ | 264,340 | $ | 264,572 |
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
2011
|
||||||||||||||||
Bonds and notes:
|
||||||||||||||||
U.S. Government and agencies
|
$ | 139,940 | $ | 13 | $ | 1 | $ | 139,952 | ||||||||
All other corporates
|
5,649 | 70 | – | 5,719 | ||||||||||||
Total fixed maturities
|
145,589 | 83 | 1 | 145,671 | ||||||||||||
Other investments
|
1,005 | – | 699 | 306 | ||||||||||||
Total current available for sale investments
|
$ | 146,594 | $ | 83 | $ | 700 | $ | 145,977 | ||||||||
2010
|
||||||||||||||||
Bonds and notes:
|
||||||||||||||||
U.S. Government and agencies
|
$ | 246,996 | $ | 21 | $ | – | $ | 247,017 | ||||||||
All other corporates
|
6,277 | 300 | 5 | 6,572 | ||||||||||||
Total fixed maturities
|
$ | 253,273 | $ | 321 | $ | 5 | $ | 253,589 |
2011
|
2010
|
|||||||||||||||
Carrying Value
|
Carrying Value
|
|||||||||||||||
Amortized
|
and Estimated
|
Amortized
|
And Estimated
|
|||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Investments available for sale:
|
||||||||||||||||
Fortescue
|
$ | 115,703 | $ | 569,256 | $ | 219,723 | $ | 1,659,617 | ||||||||
Inmet
|
504,006 | 708,193 | 504,006 | 862,481 | ||||||||||||
Other investments available for sale
|
724,664 | 776,444 | 1,067,928 | 1,144,141 | ||||||||||||
Other investments:
|
||||||||||||||||
Private equity funds
|
85,528 | 85,528 | 86,944 | 86,944 | ||||||||||||
Non-agency mortgage-backed bond
|
||||||||||||||||
securitization portfolio
|
1,649 | 1,649 | 3,304 | 3,304 | ||||||||||||
FMG zero coupon note component
|
40,801 | 40,801 | 36,268 | 36,268 | ||||||||||||
Other non-publicly traded investments
|
45,298 | 45,004 | 40,114 | 39,904 | ||||||||||||
Total non-current investments
|
$ | 1,517,649 | $ | 2,226,875 | $ | 1,958,287 | $ | 3,832,659 |
2011
|
2010
|
2009
|
||||||||||
Classified as investment and other income:
|
||||||||||||
Interest income on FMG Note
|
$ | 214,455 | $ | 149,257 | $ | 66,079 | ||||||
Interest accreted on zero-coupon note component
|
$ | 4,533 | $ | 4,030 | $ | 3,582 | ||||||
Amortization expense on prepaid mining interest
|
$ | 11,800 | $ | 9,943 | $ | 7,293 |
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
2011
|
||||||||||||||||
Bonds and notes:
|
||||||||||||||||
U.S. Government-Sponsored Enterprises
|
$ | 609,617 | $ | 12,683 | $ | 109 | $ | 622,191 | ||||||||
All other corporates
|
66,960 | 636 | 1,054 | 66,542 | ||||||||||||
Total fixed maturities
|
676,577 | 13,319 | 1,163 | 688,733 | ||||||||||||
Equity securities:
|
||||||||||||||||
Common stocks:
|
||||||||||||||||
Banks, trusts and insurance companies
|
22,084 | 28,887 | – | 50,971 | ||||||||||||
Industrial, miscellaneous and all other
|
644,717 | 669,270 | 299 | 1,313,688 | ||||||||||||
Total equity securities
|
666,801 | 698,157 | 299 | 1,364,659 | ||||||||||||
Other investments
|
995 | – | 494 | 501 | ||||||||||||
$ | 1,344,373 | $ | 711,476 | $ | 1,956 | $ | 2,053,893 | |||||||||
2010
|
||||||||||||||||
Bonds and notes:
|
||||||||||||||||
U.S. Government and agencies
|
$ | 7,806 | $ | – | $ | 90 | $ | 7,716 | ||||||||
U.S. Government-Sponsored Enterprises
|
815,066 | 10,564 | 2,247 | 823,383 | ||||||||||||
All other corporates
|
191,851 | 917 | 235 | 192,533 | ||||||||||||
Total fixed maturities
|
1,014,723 | 11,481 | 2,572 | 1,023,632 | ||||||||||||
Equity securities:
|
||||||||||||||||
Common stocks:
|
||||||||||||||||
Banks, trusts and insurance companies
|
16,340 | 32,936 | – | 49,276 | ||||||||||||
Industrial, miscellaneous and all other
|
760,594 | 1,833,229 | 492 | 2,593,331 | ||||||||||||
Total equity securities
|
776,934 | 1,866,165 | 492 | 2,642,607 | ||||||||||||
$ | 1,791,657 | $ | 1,877,646 | $ | 3,064 | $ | 3,666,239 |
Amortized
|
Estimated
|
|||||||
Cost
|
Fair Value
|
|||||||
(In thousands)
|
||||||||
Due after one year through five years
|
$ | 24,918 | $ | 25,024 | ||||
Due after five years through ten years
|
– | – | ||||||
Due after ten years
|
– | – | ||||||
24,918 | 25,024 | |||||||
Mortgage-backed and asset-backed securities
|
651,659 | 663,709 | ||||||
$ | 676,577 | $ | 688,733 |
2011
|
2010
|
2009
|
||||||||||
Net unrealized holding gains (losses) arising during the period, net of
|
||||||||||||
tax provision (benefit) of $(171,702), $(21,983) and $36,348
|
$ | (309,256 | ) | $ | 813,107 | $ | 1,001,651 | |||||
Less: reclassification adjustment for net (gains) losses included in net
|
||||||||||||
income (loss), net of tax (provision) benefit of $(245,597), $(3,146) and $0
|
(442,350 | ) | (97,514 | ) | 8,511 | |||||||
Net change in unrealized gains (losses) on investments, net of tax
|
||||||||||||
provision (benefit) of $(417,299), $(25,129) and $36,348
|
$ | (751,606 | ) | $ | 715,593 | $ | 1,010,162 |
2011
|
2010
|
|||||||
Trade receivables
|
$ | 235,682 | $ | 43,313 | ||||
Accrued interest on FMG Note
|
107,881 | 83,659 | ||||||
Receivables related to securities
|
4,572 | 9,977 | ||||||
Receivables relating to real estate activities
|
4,707 | 4,696 | ||||||
Other
|
20,155 | 13,393 | ||||||
372,997 | 155,038 | |||||||
Allowance for doubtful accounts
|
(3,874 | ) | (4,710 | ) | ||||
Total current trade, notes and other receivables, net
|
$ | 369,123 | $ | 150,328 |
2011
|
2010
|
|||||||
Finished goods
|
$ | 233,542 | $ | 39,963 | ||||
Work in process
|
49,514 | 12,441 | ||||||
Raw materials, supplies and other
|
71,522 | 5,876 | ||||||
$ | 354,578 | $ | 58,280 |
2011
|
2010
|
|||||||
Intangibles:
|
||||||||
Customer and other relationships, net of accumulated
|
||||||||
amortization of $41,958 and $39,051
|
$ | 426,603 | $ | 23,338 | ||||
Trademarks and tradename, net of accumulated amortization of
|
||||||||
$1,527 and $791
|
278,024 | 1,210 | ||||||
Cattle supply contracts
|
143,500 | – | ||||||
Licenses, net of accumulated amortization of $2,917 and $2,328
|
9,081 | 9,670 | ||||||
Other, net of accumulated amortization of $5,095 and $2,650
|
1,262 | 267 | ||||||
Goodwill
|
18,119 | 8,151 | ||||||
$ | 876,589 | $ | 42,636 |
2011
|
2010
|
|||||||
Real Estate
|
$ | 173,077 | $ | 168,001 | ||||
Unamortized debt expense
|
11,454 | 16,125 | ||||||
Restricted cash
|
67,396 | 94,684 | ||||||
Prepaid mining interest
|
139,572 | 153,210 | ||||||
Other
|
28,658 | 20,301 | ||||||
$ | 420,157 | $ | 452,321 |
Depreciable
|
||||||||||||
Lives
|
||||||||||||
(in years)
|
2011
|
2010
|
||||||||||
Land, buildings and leasehold improvements
|
3-45 | $ | 604,786 | $ | 384,941 | |||||||
Beef processing machinery and equipment
|
2-15 | 201,934 | – | |||||||||
Oil and gas drilling services machinery and equipment
|
7-15 | 201,550 | 190,951 | |||||||||
Other machinery and equipment
|
2-25 | 202,832 | 190,476 | |||||||||
Corporate aircraft
|
5-10 | 111,279 | 99,437 | |||||||||
Furniture and fixtures
|
2-10 | 23,347 | 21,406 | |||||||||
Construction in progress
|
N/A | 56,465 | 2,092 | |||||||||
Other
|
3-7 | 20,869 | 9,854 | |||||||||
1,423,062 | 899,157 | |||||||||||
Accumulated depreciation and amortization
|
(369,373 | ) | (311,786 | ) | ||||||||
$ | 1,053,689 | $ | 587,371 |
2011
|
2010
|
|||||||
Trade payables
|
$ | 88,328 | $ | 18,166 | ||||
Book overdrafts
|
92,254 | 3,177 | ||||||
Cattle purchases payable
|
31,431 | – | ||||||
Payables related to securities
|
955 | 1,878 | ||||||
Accrued compensation, severance and other employee benefits
|
92,216 | 69,075 | ||||||
Accrued legal and professional fees
|
18,364 | 7,348 | ||||||
Accrued litigation settlement
|
– | 11,229 | ||||||
Taxes other than income
|
9,485 | 5,268 | ||||||
Accrued interest payable
|
35,496 | 40,278 | ||||||
Other
|
18,015 | 20,173 | ||||||
$ | 386,544 | $ | 176,592 |
2011
|
2010
|
|||||||
Parent Company Debt:
|
||||||||
Senior Notes:
|
||||||||
7 ¾% Senior Notes due 2013, less debt discount of $99 and $154
|
$ | 94,401 | $ | 94,346 | ||||
7% Senior Notes due 2013, net of debt premium of $218 and $340
|
312,463 | 312,585 | ||||||
8 1/8% Senior Notes due 2015, less debt discount of $4,256 and $5,437
|
454,385 | 474,563 | ||||||
7 1/8% Senior Notes due 2017
|
423,140 | 478,000 | ||||||
Subordinated Notes:
|
||||||||
3 ¾% Convertible Senior Subordinated Notes due 2014
|
97,581 | 97,581 | ||||||
8.65% Junior Subordinated Deferrable Interest Debentures due 2027
|
88,204 | 89,554 | ||||||
Subsidiary Debt:
|
||||||||
Term loans
|
323,750 | – | ||||||
Revolving credit facility
|
92,103 | – | ||||||
Aircraft financing due 2011
|
– | 32,881 | ||||||
Capital leases due 2012 through 2015 with a weighted-average
|
||||||||
interest rate of 5.0%
|
7,115 | 2,503 | ||||||
Other due 2012 through 2029 with a weighted-average interest rate of .3%
|
12,562 | 109,115 | ||||||
Total debt
|
1,905,704 | 1,691,128 | ||||||
Less: current maturities
|
(30,133 | ) | (142,659 | ) | ||||
Long-term debt
|
$ | 1,875,571 | $ | 1,548,469 |
2011
|
2010
|
2009
|
||||||||||
7 ¾% Senior Notes
|
$ | – | $ | 5,500 | $ | – | ||||||
7% Senior Notes
|
– | 27,200 | 35,555 | |||||||||
8 1/8% Senior Notes
|
21,359 | 20,000 | – | |||||||||
7 1/8% Senior
|
54,860 | 22,000 | – | |||||||||
8.65% Junior Subordinated Deferrable Interest Debentures
|
1,350 | 2,146 | 6,500 | |||||||||
Total
|
$ | 77,569 | $ | 76,846 | $ | 42,055 |
Weighted-
|
|||||||||||||
Common
|
Weighted-
|
Average
|
|||||||||||
Shares
|
Average
|
Remaining
|
Aggregate
|
||||||||||
Subject
|
Exercise
|
Contractual
|
Intrinsic
|
||||||||||
to Option
|
Prices
|
Term
|
Value
|
||||||||||
Balance at December 31, 2008
|
2,300,290 | $ | 26.29 | ||||||||||
Granted
|
12,000 | $ | 24.44 | ||||||||||
Exercised
|
(47,250 | ) | $ | 20.28 | $ | 169,000 | |||||||
Cancelled
|
(68,800 | ) | $ | 26.38 | |||||||||
Balance at December 31, 2009
|
2,196,240 | $ | 26.40 | ||||||||||
Granted
|
972,000 | $ | 27.17 | ||||||||||
Exercised
|
(520,740 | ) | $ | 21.69 | $ | 2,809,000 | |||||||
Cancelled
|
(25,000 | ) | $ | 27.66 | |||||||||
Balance at December 31, 2010
|
2,622,500 | $ | 27.61 | ||||||||||
Granted
|
12,000 | $ | 35.78 | ||||||||||
Exercised
|
(255,445 | ) | $ | 27.89 | $ | 2,412,000 | |||||||
Cancelled
|
(127,600 | ) | $ | 27.63 | |||||||||
Balance at December 31, 2011
|
2,251,455 | $ | 27.62 |
3.2 years
|
$ | – | |||||||
Exercisable at December 31, 2011
|
870,955 | $ | 27.83 |
1.9 years
|
$ | – |
2011
|
2010
|
2009
|
||||||||||
Options
|
Options
|
Options
|
||||||||||
Risk free interest rate
|
1.58 | % | 1.27 | % | 1.99 | % | ||||||
Expected volatility
|
45.25 | % | 45.78 | % | 44.12 | % | ||||||
Expected dividend yield
|
.70 | % | .87 | % | .51 | % | ||||||
Expected life
|
4.3 years
|
4.0 years
|
4.3 years
|
|||||||||
Weighted-average fair value per grant
|
$ | 13.18 | $ | 9.09 | $ | 8.80 |
16.
|
Accumulated Other Comprehensive Income:
|
2011
|
2010
|
2009
|
||||||||||
Net unrealized gains on investments
|
$ | 998,151 | $ | 1,749,757 | $ | 1,034,164 | ||||||
Net unrealized foreign exchange gains (losses)
|
(3,168 | ) | (3,838 | ) | 4,024 | |||||||
Net unrealized gains on derivative instruments
|
– | – | 1,005 | |||||||||
Net minimum pension liability
|
(83,537 | ) | (60,177 | ) | (56,948 | ) | ||||||
Net postretirement benefit
|
975 | 1,621 | 2,787 | |||||||||
$ | 912,421 | $ | 1,687,363 | $ | 985,032 |
2011
|
2010
|
2009
|
||||||||||
Net realized gains on securities
|
$ | 644,777 | $ | 182,060 | $ | 10,440 | ||||||
Write-down of investments (a)
|
(3,586 | ) | (2,474 | ) | (31,420 | ) | ||||||
Net unrealized gains (losses) on trading securities
|
285 | (92 | ) | (126 | ) | |||||||
$ | 641,476 | $ | 179,494 | $ | (21,106 | ) |
(a)
|
Consists of provisions to write down investments resulting from declines in fair values believed to be other than temporary.
|
2011
|
2010
|
2009
|
||||||||||
Interest on fixed maturity investments
|
$ | 30,996 | $ | 22,148 | $ | 26,784 | ||||||
Dividend income
|
18,360 | 3,654 | 3,945 | |||||||||
Other investment income
|
1,774 | 1,169 | 1,352 | |||||||||
Income related to Fortescue’s Pilbara project (see Note 6)
|
214,455 | 149,257 | 66,079 | |||||||||
Gain on sale of Las Cruces
|
– | 383,369 | – | |||||||||
Gain on forgiveness of debt
|
81,848 | – | – | |||||||||
Bargain purchase related to Keen (see Note 3)
|
– | – | 49,345 | |||||||||
Gains on sale of real estate and other assets, net of costs
|
3,312 | 2,561 | 12,767 | |||||||||
Income related to settlement of insurance claims
|
– | 106 | 5,272 | |||||||||
Gain related to lawsuits and other settlements
|
141 | 3,446 | 10,453 | |||||||||
Gain on buyback of debt
|
– | – | 6,693 | |||||||||
Government grants reimbursement
|
5,366 | 11,143 | – | |||||||||
Rental income
|
11,126 | 12,417 | 14,149 | |||||||||
Winery revenues
|
38,161 | 23,569 | 20,735 | |||||||||
Other
|
27,836 | 36,525 | 39,683 | |||||||||
$ | 433,375 | $ | 649,364 | $ | 257,257 |
2011
|
2010
|
|||||||
Deferred Tax Asset:
|
||||||||
Securities valuation reserves
|
$ | 49,893 | $ | 52,444 | ||||
Other assets
|
78,289 | 85,490 | ||||||
NOL carryover
|
1,730,465 | 1,962,914 | ||||||
Intangible assets, net and goodwill
|
23,037 | – | ||||||
Other liabilities
|
12,386 | 23,433 | ||||||
1,894,070 | 2,124,281 | |||||||
Valuation allowance
|
(109,181 | ) | (109,181 | ) | ||||
1,784,889 | 2,015,100 | |||||||
Deferred Tax Liability:
|
||||||||
Unrealized gains on investments
|
(148,007 | ) | (822,095 | ) | ||||
Property and equipment
|
(45,784 | ) | (4,452 | ) | ||||
Other
|
(6,212 | ) | (12,995 | ) | ||||
(200,003 | ) | (839,542 | ) | |||||
Net deferred tax asset
|
$ | 1,584,886 | $ | 1,175,558 |
2011
|
2010
|
2009
|
||||||||||
State income taxes
|
$ | 7,930 | $ | 3,162 | $ | (1,890 | ) | |||||
Resolution of state tax contingencies
|
- | (600 | ) | (2,025 | ) | |||||||
Federal income taxes:
|
||||||||||||
Deferred
|
239,297 | - | - | |||||||||
Decrease in valuation allowance
|
- | (1,157,111 | ) | - | ||||||||
Foreign income taxes
|
23,026 | 15,231 | 11,023 | |||||||||
$ | 270,253 | $ | (1,139,318 | ) | $ | 7,108 |
2011
|
2010
|
2009
|
||||||||||
Expected federal income tax
|
$ | 238,346 | $ | 129,151 | $ | (84,404 | ) | |||||
State income taxes, net of federal income tax benefit
|
5,585 | 3,162 | (1,890 | ) | ||||||||
Decrease in valuation allowance
|
- | (1,157,111 | ) | - | ||||||||
Tax expense not provided on income recorded prior to the reversal of
|
||||||||||||
deferred tax valuation allowance
|
- | (134,230 | ) | - | ||||||||
Tax benefit of current year losses fully reserved in valuation allowance
|
- | - | 101,927 | |||||||||
Accounting expense for warrants in excess of tax deduction
|
7,141 | - | - | |||||||||
Resolution of tax contingencies
|
- | (600 | ) | (2,025 | ) | |||||||
Permanent differences
|
2,552 | 5,079 | (17,523 | ) | ||||||||
Foreign taxes
|
14,967 | 15,231 | 11,023 | |||||||||
Other
|
1,662 | - | - | |||||||||
Actual income tax provision (benefit)
|
$ | 270,253 | $ | (1,139,318 | ) | $ | 7,108 |
Unrecognized
|
||||||||||||
Tax Benefits
|
Interest
|
Total
|
||||||||||
As of January 1, 2009
|
$ | 7,900 | $ | 3,200 | $ | 11,100 | ||||||
Additions to unrecognized tax benefits
|
200 | - | 200 | |||||||||
Additional interest expense recognized
|
- | 600 | 600 | |||||||||
Audit payments
|
(200 | ) | (100 | ) | (300 | ) | ||||||
Reductions as a result of the lapse of the statute of
|
||||||||||||
limitations and completion of audits
|
(1,200 | ) | (800 | ) | (2,000 | ) | ||||||
Balance, December 31, 2009
|
6,700 | 2,900 | 9,600 | |||||||||
Additions to unrecognized tax benefits
|
- | - | - | |||||||||
Additional interest expense recognized
|
- | 500 | 500 | |||||||||
Audit payments
|
(100 | ) | (100 | ) | (200 | ) | ||||||
Reductions as a result of the lapse of the statute of
|
||||||||||||
limitations and completion of audits
|
(300 | ) | (300 | ) | (600 | ) | ||||||
Balance, December 31, 2010
|
6,300 | 3,000 | 9,300 | |||||||||
Additions to unrecognized tax benefits
|
- | - | - | |||||||||
Additional interest expense recognized
|
- | 500 | 500 | |||||||||
Audit payments
|
- | - | - | |||||||||
Reductions as a result of the lapse of the statute of
|
||||||||||||
limitations and completion of audits
|
- | - | - | |||||||||
Balance, December 31, 2011
|
$ | 6,300 | $ | 3,500 | $ | 9,800 |
2011
|
2010
|
|||||||
Projected Benefit Obligation:
|
||||||||
Projected benefit obligation at beginning of period
|
$ | 207,889 | $ | 235,846 | ||||
Interest cost
|
11,233 | 12,295 | ||||||
Actuarial loss
|
39,028 | 19,313 | ||||||
Settlement payment
|
– | (50,200 | ) | |||||
Benefits paid
|
(6,201 | ) | (9,365 | ) | ||||
Projected benefit obligation at December 31,
|
$ | 251,949 | $ | 207,889 | ||||
Change in Plan Assets:
|
||||||||
Fair value of plan assets at beginning of period
|
$ | 145,124 | $ | 167,652 | ||||
Actual return on plan assets
|
7,166 | 6,898 | ||||||
Employer contributions
|
43,823 | 32,511 | ||||||
Settlement payment
|
– | (50,200 | ) | |||||
Benefits paid
|
(6,201 | ) | (9,365 | ) | ||||
Administrative expenses
|
(1,036 | ) | (2,372 | ) | ||||
Fair value of plan assets at December 31,
|
$ | 188,876 | $ | 145,124 | ||||
Funded Status at end of year
|
$ | (63,073 | ) | $ | (62,765 | ) |
2011
|
2010
|
2009
|
||||||||||
Interest cost
|
$ | 11,233 | $ | 11,944 | $ | 12,433 | ||||||
Expected return on plan assets
|
(6,091 | ) | (7,936 | ) | (7,679 | ) | ||||||
Actuarial loss
|
2,659 | 1,929 | 2,290 | |||||||||
Amortization of prior service cost
|
- | 2 | 3 | |||||||||
Net pension expense
|
$ | 7,801 | $ | 5,939 | $ | 7,047 |
Fair Value Measurements Using
|
||||||||||||
Total
Fair Value
Measurements
|
Quoted Prices in Active
Markets for Identical
Assets or Liabilities
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
||||||||||
Cash and cash equivalents
|
$ | 15,479 | $ | 15,479 | $ | – | ||||||
Bonds and notes:
|
||||||||||||
U.S. Government and agencies
|
27,076 | 27,076 | – | |||||||||
Foreign governments
|
2,185 | 2,185 | – | |||||||||
All other corporates
|
126,035 | 123,689 | 2,346 | |||||||||
Other (primarily receivable on sale
|
||||||||||||
of securities)
|
18,101 | 18,101 | – | |||||||||
Total
|
$ | 188,876 | $ | 186,530 | $ | 2,346 |
Fair Value Measurements Using
|
||||||||
Total
Fair Value
Measurements
|
Quoted Prices in Active
Markets for Identical
Assets or Liabilities
(Level 1)
|
|||||||
Cash and cash equivalents
|
$ | 21,748 | $ | 21,748 | ||||
Bonds and notes:
|
||||||||
U.S. Government and agencies
|
9,154 | 9,154 | ||||||
U.S. Government-Sponsored Enterprises
|
3,040 | 3,040 | ||||||
States, municipalities and political
|
||||||||
subdivisions
|
325 | 325 | ||||||
All other corporates
|
110,857 | 110,857 | ||||||
Total
|
$ | 145,124 | $ | 145,124 |
·
|
Fixed income securities will all be rated BBB- or better at the time of purchase, there will be no more than 5% at market in any one security (U.S. government and agency positions excluded), no more than a 30-year maturity in any one security and investments in standard collateralized mortgage obligations are limited to securities that are currently paying interest, receiving principal, do not contain leverage and are limited to 10% of the market value of the portfolio.
|
·
|
Plan assets are split into two separate portfolios, each with different duration and asset mix. The Investment Grade (“IG”) portfolio consists of investment grade fixed income corporate bonds with a maximum duration of 5 years. The Fixed Income (“FI”) portfolio consists of investment grade bonds, short and mid-term government instruments, and cash and cash equivalents with a maximum duration of 2 years.
|
2011
|
2010
|
2009
|
||||||||||
Net loss arising during period
|
$ | (38,989 | ) | $ | (23,120 | ) | $ | (5,161 | ) | |||
Settlement charge
|
– | 16,891 | – | |||||||||
Recognition of amortization in net periodic
benefit cost:
|
||||||||||||
Prior service cost
|
– | 2 | 3 | |||||||||
Actuarial loss
|
2,659 | 2,095 | 2,435 | |||||||||
Total
|
$ | (36,330 | ) | $ | (4,132 | ) | $ | (2,723 | ) |
2011
|
2010
|
|||||||
Discount rate used to determine benefit
|
||||||||
obligation at December 31,
|
4.40 | % | 5.50 | % | ||||
Weighted-average assumptions used to determine
|
||||||||
net cost for years ended December 31,:
|
||||||||
Discount rate
|
5.50 | % | 6.00 | % | ||||
Expected long-term return on plan assets
|
4.25 | % | 6.00 | % |
2012
|
$ | 4,453 | ||
2013
|
4,784 | |||
2014
|
6,371 | |||
2015
|
8,360 | |||
2016
|
9,243 | |||
2017 – 2021
|
67,536 |
2012
|
$ | 20,741 | ||
2013
|
18,542 | |||
2014
|
15,995 | |||
2015
|
10,847 | |||
2016
|
6,807 | |||
Thereafter
|
32,926 | |||
105,858 | ||||
Less: sublease income
|
(986 | ) | ||
$ | 104,872 |
2011
|
2010
|
2009
|
||||||||||
Numerator for earnings (loss) per share:
|
||||||||||||
Net income attributable to Leucadia National
|
||||||||||||
Corporation common shareholders for basic
|
||||||||||||
earnings per share
|
$ | 25,231 | $ | 1,939,312 | $ | 550,280 | ||||||
Interest on 3¾% Convertible Notes
|
- | 3,707 | 7,199 | |||||||||
Net income attributable to Leucadia National
|
||||||||||||
Corporation common shareholders for diluted
|
||||||||||||
earnings per share
|
$ | 25,231 | $ | 1,943,019 | $ | 557,479 | ||||||
Denominator for earnings (loss) per share:
|
||||||||||||
Denominator for basic earnings (loss) per share –
|
||||||||||||
weighted-average shares
|
244,425 | 243,379 | 241,437 | |||||||||
Stock options
|
73 | 42 | 2 | |||||||||
Warrants
|
75 | – | – | |||||||||
3¾% Convertible Notes
|
- | 4,251 | 6,410 | |||||||||
Denominator for diluted earnings (loss) per share
|
244,573 | 247,672 | 247,849 |
December 31, 2011
|
||||||||||||
Fair Value Measurements Using
|
||||||||||||
Total
Fair Value
Measurements
|
Quoted Prices in Active
Markets for Identical
Assets or Liabilities
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
||||||||||
Investments classified as current assets:
|
||||||||||||
Investments available for sale:
|
||||||||||||
Bonds and notes:
|
||||||||||||
U.S. Government and agencies
|
$ | 139,952 | $ | 139,952 | $ | – | ||||||
All other corporates
|
5,719 | 5,719 | – | |||||||||
Other
|
306 | – | 306 | |||||||||
Non-current investments:
|
||||||||||||
Investments available for sale:
|
||||||||||||
Bonds and notes:
|
||||||||||||
U.S. Government-Sponsored Enterprises
|
622,191 | – | 622,191 | |||||||||
All other corporates
|
66,542 | 26,703 | 39,839 | |||||||||
Equity securities:
|
||||||||||||
Common stocks:
|
||||||||||||
Banks, trusts and insurance companies
|
50,971 | 50,971 | – | |||||||||
Industrial, miscellaneous and all other
|
1,313,688 | 1,313,688 | – | |||||||||
Other
|
501 | – | 501 | |||||||||
Investments in associated companies
|
1,198,029 | 1,198,029 | – | |||||||||
Total
|
$ | 3,397,899 | $ | 2,735,062 | $ | 662,837 | ||||||
Commodity contracts - other current assets
|
$ | 3,816 | $ | 88 | $ | 3,728 | ||||||
Other current liabilities:
|
||||||||||||
Commodity contracts
|
$ | (2,802 | ) | $ | – | $ | (2,802 | ) | ||||
Other
|
(955 | ) | (955 | ) | – | |||||||
Total
|
$ | (3,757 | ) | $ | (955 | ) | $ | (2,802 | ) |
December 31, 2010
|
||||||||||||
Fair Value Measurements Using
|
||||||||||||
Total
Fair Value
Measurements
|
Quoted Prices in Active
Markets for Identical
Assets or Liabilities
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
||||||||||
Investments classified as current assets:
|
||||||||||||
Investments available for sale:
|
||||||||||||
Bonds and notes:
|
||||||||||||
U.S. Government and agencies
|
$ | 247,017 | $ | 247,017 | $ | – | ||||||
All other corporates
|
6,572 | 6,324 | 248 | |||||||||
Non-current investments:
|
||||||||||||
Investments available for sale:
|
||||||||||||
Bonds and notes:
|
||||||||||||
U.S. Government and agencies
|
7,716 | – | 7,716 | |||||||||
U.S. Government-Sponsored Enterprises
|
823,383 | – | 823,383 | |||||||||
All other corporates
|
192,533 | 150,193 | 42,340 | |||||||||
Equity securities:
|
||||||||||||
Common stocks:
|
||||||||||||
Banks, trusts and insurance companies
|
49,276 | 49,276 | – | |||||||||
Industrial, miscellaneous and all other
|
2,593,331 | 2,593,331 | – | |||||||||
Investments in associated companies
|
1,314,227 | 1,314,227 | – | |||||||||
Total
|
$ | 5,234,055 | $ | 4,360,368 | $ | 873,687 | ||||||
Other current liabilities
|
$ | (2,413 | ) | $ | (1,878 | ) | $ | (535 | ) |
December 31, 2010
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Total Fair Value
Measurements
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||
Long-lived assets held and used (a)
|
$ | 20,600 | $ | – | $ | 20,600 | $ | – | ||||||||
Long-lived assets held for sale (b)
|
7,000 | – | 7,000 | – | ||||||||||||
Other non-current investments (c)
|
2,200 | – | – | 2,200 |
|
(a)
|
At December 31, 2010, the Company evaluated for impairment the carrying value of MB1’s real estate assets, recorded an impairment charge of $47,074,000 and reduced the carrying amount to its fair value of $18,094,000. As of December 31, 2010, the Company also wrote down to fair value one of its real estate projects based on an appraisal and prices for similar assets, and recognized an impairment charge of $2,357,000, which is included in selling, general and other expenses. See Note 2 for more information.
|
|
(b)
|
Consists of a corporate aircraft at December 31, 2010 for which the fair value was primarily based on prices for similar assets. The Company recognized an impairment loss of $1,449,000 for 2010 which is included in selling, general and other expenses.
|
|
(c)
|
At December 31, 2010, represents an investment in a non-public security of $2,177,000. The investment in the non-public security is accounted for under the cost method of accounting for which the Company primarily reviewed issuer financial statements to determine its fair value.
|
|
(a)
|
Investments: The fair values of marketable equity securities and fixed maturity securities (which include securities sold not owned) are substantially based on quoted market prices, as disclosed in Note 6.
|
|
(b)
|
Cash and cash equivalents: For cash equivalents, the carrying amount approximates fair value.
|
|
(c)
|
Notes receivable: The fair values of variable rate notes receivable are estimated to be the carrying amount.
|
|
(d)
|
Long-term and other indebtedness: The fair values of non-variable rate debt are estimated using quoted market prices and estimated rates that would be available to the Company for debt with similar terms. The fair value of variable rate debt is estimated to be the carrying amount. The fair value of the MB1 debt at December 31, 2010 was the amount paid by the Company’s subsidiary for the collateralized property in the foreclosure sale; see Note 2.
|
(e)
|
Redeemable noncontrolling interests were valued based on the amount paid by the Company to acquire National Beef on December 30, 2011; see Note 3 for more information.
|
|
(f)
|
Swap agreements: The fair values of the interest rate swap at December 31, 2010 was based on rates then available for similar agreements. At December 31, 2011, the Company did not have any swap agreements.
|
2011
|
2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Financial Assets:
|
||||||||||||||||
Investments:
|
||||||||||||||||
Current
|
$ | 150,135 | $ | 150,135 | $ | 264,572 | $ | 264,572 | ||||||||
Non-current
|
2,226,875 | 2,226,875 | 3,832,659 | 3,832,659 | ||||||||||||
Cash and cash equivalents
|
168,490 | 168,490 | 441,340 | 441,340 | ||||||||||||
Notes receivable:
|
||||||||||||||||
Current
|
1,675 | 1,675 | 740 | 740 | ||||||||||||
Non-current
|
13,531 | 13,531 | 2,633 | 2,633 | ||||||||||||
Commodity contracts
|
3,816 | 3,816 | – | – | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Indebtedness:
|
||||||||||||||||
Current
|
447,612 | 447,612 | 543,780 | 461,350 | ||||||||||||
Non-current
|
1,875,571 | 1,944,879 | 1,548,469 | 1,677,656 | ||||||||||||
Securities sold not owned
|
955 | 955 | 1,878 | 1,878 | ||||||||||||
Commodity contracts
|
2,802 | 2,802 | – | – | ||||||||||||
Redeemable noncontrolling interests
|
235,909 | 235,909 | – | – | ||||||||||||
Swap agreements:
|
||||||||||||||||
Interest rate swaps
|
– | – | (535 | ) | (535 | ) |
2011
|
2010
|
2009
|
||||||||||
(In thousands)
|
||||||||||||
Revenues and other income (a):
|
||||||||||||
Manufacturing:
|
||||||||||||
Idaho Timber
|
$ | 159,026 | $ | 172,908 | $ | 142,709 | ||||||
Conwed Plastics
|
85,961 | 87,073 | 82,094 | |||||||||
Oil and Gas Drilling Services (b)
|
136,146 | 116,560 | 60,459 | |||||||||
Gaming Entertainment
|
117,238 | 114,809 | 103,583 | |||||||||
Domestic Real Estate
|
96,501 | 17,075 | 30,637 | |||||||||
Medical Product Development
|
378 | 123 | 5,147 | |||||||||
Other Operations (c)
|
69,038 | 67,119 | 51,764 | |||||||||
Corporate (d)
|
906,480 | 744,337 | 98,815 | |||||||||
Total consolidated revenues and other income
|
$ | 1,570,768 | $ | 1,320,004 | $ | 575,208 | ||||||
Income (loss) from continuing operations before income taxes:
|
||||||||||||
Manufacturing:
|
||||||||||||
Idaho Timber
|
$ | (3,787 | ) | $ | 547 | $ | (12,680 | ) | ||||
Conwed Plastics
|
5,916 | 8,803 | 11,578 | |||||||||
Oil and Gas Drilling Services (b)
|
3,533 | (13,937 | ) | 46,738 | ||||||||
Gaming Entertainment
|
12,616 | (2,159 | ) | 2,379 | ||||||||
Domestic Real Estate
|
80,919 | (54,935 | ) | (71,298 | ) | |||||||
Medical Product Development
|
(42,696 | ) | (25,443 | ) | (23,818 | ) | ||||||
Other Operations (c)
|
(24,374 | ) | (17,487 | ) | (26,434 | ) | ||||||
Income (loss) related to Associated Companies
|
(612,362 | ) | 375,021 | 805,803 | ||||||||
Corporate (d)
|
648,861 | 473,614 | (167,619 | ) | ||||||||
Total consolidated income from continuing
|
||||||||||||
operations before income taxes
|
$ | 68,626 | $ | 744,024 | $ | 564,649 | ||||||
Depreciation and amortization expenses:
|
||||||||||||
Manufacturing: (e)
|
||||||||||||
Idaho Timber
|
$ | 5,299 | $ | 6,131 | $ | 8,631 | ||||||
Conwed Plastics
|
6,509 | 9,068 | 8,476 | |||||||||
Oil and Gas Drilling Services
|
21,051 | 25,447 | 3,103 | |||||||||
Gaming Entertainment
|
16,785 | 16,657 | 16,532 | |||||||||
Domestic Real Estate
|
3,461 | 6,163 | 8,408 | |||||||||
Medical Product Development
|
845 | 870 | 836 | |||||||||
Other Operations (e)
|
9,922 | 7,183 | 8,125 | |||||||||
Corporate
|
23,296 | 20,979 | 18,441 | |||||||||
Total consolidated depreciation and amortization expenses
|
$ | 87,168 | $ | 92,498 | $ | 72,552 | ||||||
Identifiable assets employed:
|
||||||||||||
Beef Processing
|
$ | 1,786,855 | $ | – | $ | – | ||||||
Manufacturing:
|
||||||||||||
Idaho Timber
|
71,859 | 84,436 | 94,211 | |||||||||
Conwed Plastics
|
56,539 | 60,822 | 67,940 | |||||||||
Oil and Gas Drilling Services
|
224,563 | 237,212 | 257,086 | |||||||||
Gaming Entertainment
|
243,888 | 253,221 | 266,951 | |||||||||
Domestic Real Estate
|
254,885 | 255,027 | 311,571 | |||||||||
Medical Product Development
|
27,893 | 16,950 | 26,702 | |||||||||
Other Operations
|
226,306 | 167,535 | 158,326 | |||||||||
Investments in Associated Companies
|
1,991,795 | 2,274,163 | 2,764,885 | |||||||||
Corporate
|
4,378,606 | 6,000,932 | 2,652,422 | |||||||||
Assets of discontinued operations
|
– | – | 162,270 | |||||||||
Total consolidated assets
|
$ | 9,263,189 | $ | 9,350,298 | $ | 6,762,364 |
(a)
|
Revenues and other income for each segment include amounts for services rendered and products sold, as well as segment reported amounts classified as investment and other income and net securities gains (losses) in the Company’s consolidated statements of operations.
|
(b)
|
As more fully discussed above, investment and other income for oil and gas drilling services includes a bargain purchase gain of $49,345,000 in 2009.
|
(c)
|
Other operations includes pre-tax losses of $28,598,000, $16,076,000 and $25,324,000 for the years ended December 31, 2011, 2010 and 2009, respectively, for the investigation and evaluation of various energy related projects. There were no significant operating revenues or identifiable assets associated with these activities in any period; however, other income includes $5,366,000 and $11,143,000 in 2011 and 2010, respectively, with respect to government grants to reimburse the Company for certain of its prior expenditures, which were fully expensed as incurred.
|
(d)
|
Net securities gains (losses) for Corporate aggregated $641,480,000, $179,494,000 and $(21,106,000) during 2011, 2010 and 2009, respectively. Corporate net securities gains (losses) are net of impairment charges of $3,586,000, $2,474,000 and $31,420,000 during 2011, 2010 and 2009, respectively. In 2011, security gains included gains of $628,197,000 from the sale of certain of the Company’s common shares of Fortescue. In 2010, security gains include a gain of $66,200,000 from the sale of the Company’s investment in LPH and a gain of $94,918,000 from the sale of certain of the Company’s common shares of Fortescue. Corporate investment and other income includes the gain on sale of Las Cruces of $383,369,000 in 2010.
|
(e)
|
Includes amounts classified as cost of sales.
|
(f)
|
For the years ended December 31, 2011, 2010 and 2009, interest expense was primarily comprised of Corporate; interest expense for other segments was not significant.
|
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
2011
|
||||||||||||||||
Revenues and other income
|
$ | 284,034 | $ | 753,441 | $ | 236,058 | $ | 297,235 | ||||||||
Income (loss) from continuing operations
|
$ | 12,429 | $ | 183,288 | $ | (292,017 | ) | $ | 112,994 | |||||||
Income (loss) from discontinued operations, net of taxes
|
$ | (1,722 | ) | $ | 2,325 | $ | (108 | ) | $ | 1,482 | ||||||
Gain on disposal of discontinued operations, net of taxes
|
$ | 79 | $ | 845 | $ | 773 | $ | 4,588 | ||||||||
Net (income) loss attributable to the noncontrolling interest
|
$ | (279 | ) | $ | (149 | ) | $ | 330 | $ | 373 | ||||||
Net income (loss)
|
$ | 10,507 | $ | 186,309 | $ | (291,022 | ) | $ | 119,437 | |||||||
Basic earnings (loss) per common share attributable to
|
||||||||||||||||
Leucadia National Corporation common shareholders:
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | .05 | $ | .75 | $ | (1.19 | ) | $ | .46 | |||||||
Income (loss) from discontinued operations
|
(.01 | ) | .01 | - | .01 | |||||||||||
Gain on disposal of discontinued operations
|
- | - | - | .02 | ||||||||||||
Net income (loss)
|
$ | .04 | $ | .76 | $ | (1.19 | ) | $ | .49 | |||||||
Number of shares used in calculation
|
244,082 | 244,521 | 244,580 | 244,583 | ||||||||||||
Diluted earnings (loss) per common share attributable to
|
||||||||||||||||
Leucadia National Corporation common shareholders:
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | .05 | $ | .74 | $ | (1.19 | ) | $ | .46 | |||||||
Income (loss) from discontinued operations
|
(.01 | ) | .01 | - | .01 | |||||||||||
Gain on disposal of discontinued operations
|
- | - | - | .01 | ||||||||||||
Net income (loss)
|
$ | .04 | $ | .75 | $ | (1.19 | ) | $ | .48 | |||||||
Number of shares used in calculation
|
244,620 | 249,026 | 244,580 | 248,874 | ||||||||||||
2010
|
||||||||||||||||
Revenues and other income
|
$ | 259,295 | $ | 289,200 | $ | 185,865 | $ | 585,644 | ||||||||
Income (loss) from continuing operations
|
$ | 196,332 | $ | (246,292 | ) | $ | 262,458 | $ | 1,676,589 | |||||||
Income (loss) from discontinued operations, net of taxes
|
$ | (4,827 | ) | $ | 10,014 | $ | (12,370 | ) | $ | (2,665 | ) | |||||
Gain on disposal of discontinued operations, net of taxes
|
$ | - | $ | - | $ | 39,882 | $ | 21,115 | ||||||||
Net (income) loss attributable to the noncontrolling interest
|
$ | (26 | ) | $ | 1,134 | $ | (2,215 | ) | $ | 183 | ||||||
Net income (loss)
|
$ | 191,479 | $ | (235,144 | ) | $ | 287,755 | $ | 1,695,222 | |||||||
Basic earnings (loss) per common share attributable to
|
||||||||||||||||
Leucadia National Corporation common shareholders:
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | .81 | $ | (1.01 | ) | $ | 1.08 | $ | 6.89 | |||||||
Income (loss) from discontinued operations
|
(.02 | ) | .04 | (.05 | ) | (.01 | ) | |||||||||
Gain on disposal of discontinued operations
|
- | - | .15 | .08 | ||||||||||||
Net income (loss)
|
$ | .79 | $ | ( .97 | ) | $ | 1.18 | $ | 6.96 | |||||||
Number of shares used in calculation
|
243,291 | 243,312 | 243,317 | 243,546 | ||||||||||||
Diluted earnings (loss) per common share attributable to
|
||||||||||||||||
Leucadia National Corporation common shareholders:
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | .80 | $ | (1.01 | ) | $ | 1.07 | $ | 6.77 | |||||||
Income (loss) from discontinued operations
|
(.02 | ) | .04 | (.05 | ) | (.01 | ) | |||||||||
Gain on disposal of discontinued operations
|
- | - | .15 | .08 | ||||||||||||
Net income (loss)
|
$ | .78 | $ | ( .97 | ) | $ | 1.17 | $ | 6.84 | |||||||
Number of shares used in calculation
|
247,594 | 243,312 | 247,572 | 247,847 |
Schedule II – Valuation and Qualifying Accounts
|
Additions
|
Deductions
|
|||||||||||||||||||||||||||
Charged
|
||||||||||||||||||||||||||||
Balance at
|
to Costs
|
Balance
|
||||||||||||||||||||||||||
Beginning
|
and
|
Write
|
at End
|
|||||||||||||||||||||||||
Description
|
of Period
|
Expenses
|
Recoveries
|
Other
|
Offs
|
Other
|
of Period
|
|||||||||||||||||||||
2011
|
||||||||||||||||||||||||||||
Allowance for
|
||||||||||||||||||||||||||||
doubtful accounts
|
$ | 4,710 | $ | 658 | $ | - | $ | - | $ | 1,494 | $ | - | $ | 3,874 | ||||||||||||||
Deferred tax asset
|
||||||||||||||||||||||||||||
valuation allowance
|
$ | 109,181 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 109,181 | ||||||||||||||
2010
|
||||||||||||||||||||||||||||
Allowance for
|
||||||||||||||||||||||||||||
doubtful accounts
|
$ | 3,971 | $ | 1,111 | $ | 2 | $ | - | $ | 374 | $ | - | $ | 4,710 | ||||||||||||||
Deferred tax asset
|
||||||||||||||||||||||||||||
valuation allowance
|
$ | 1,835,161 | $ | - | $ | - | $ | - | $ | - | $ | 1,725,980 | (a) | $ | 109,181 | |||||||||||||
2009
|
||||||||||||||||||||||||||||
Allowance for
|
||||||||||||||||||||||||||||
doubtful accounts
|
$ | 3,109 | $ | 1,623 | $ | 12 | $ | - | $ | 773 | $ | - | $ | 3,971 | ||||||||||||||
Deferred tax asset
|
||||||||||||||||||||||||||||
valuation allowance
|
$ | 2,307,281 | $ | - | $ | - | $ | 109,156 | (b) | $ | - | $ | 581,276 | (c) | $ | 1,835,161 |
|
(a)
|
During 2010, the Company’s revised projections of future taxable income enabled it to conclude that it was more likely than not that it will have future taxable income sufficient to realize a significant portion of the Company’s net deferred tax asset; accordingly, $1,157,111,000 of the deferred tax valuation allowance was reversed as a credit to income tax expense.
|
|
(b)
|
Represents the tax effect of losses during 2009, which were reserved for in the deferred tax asset valuation allowance.
|
|
(c)
|
Primarily represents the tax effect of the change in unrealized gains (losses) on investments.
|
June 30,
|
||||||||
2010
|
2009
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 282,273 | $ | 193,287 | ||||
Finance receivables, net
|
8,160,208 | 10,037,329 | ||||||
Restricted cash – securitization notes payable
|
930,155 | 851,606 | ||||||
Restricted cash – credit facilities
|
142,725 | 195,079 | ||||||
Property and equipment, net
|
37,734 | 44,195 | ||||||
Leased vehicles, net
|
94,677 | 156,387 | ||||||
Deferred income taxes
|
81,836 | 75,782 | ||||||
Income tax receivable
|
197,579 | |||||||
Other assets
|
151,425 | 207,083 | ||||||
Total assets
|
$ | 9,881,033 | $ | 11,958,327 | ||||
Liabilities and Shareholders’ Equity
|
||||||||
Liabilities:
|
||||||||
Credit facilities
|
$ | 598,946 | $ | 1,630,133 | ||||
Securitization notes payable
|
6,108,976 | 7,426,687 | ||||||
Senior notes
|
70,620 | 91,620 | ||||||
Convertible senior notes
|
414,068 | 392,514 | ||||||
Accrued taxes and expenses
|
210,013 | 157,640 | ||||||
Interest rate swap agreements
|
70,421 | 131,885 | ||||||
Other liabilities
|
7,565 | 20,540 | ||||||
Total liabilities
|
7,480,609 | 9,851,019 | ||||||
Commitments and contingencies (Note 10)
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock, $.01 par value per share,
|
||||||||
20,000,000 shares authorized; none issued
|
||||||||
Common stock, $.01 par value per share,
|
||||||||
350,000,000 shares authorized;
|
||||||||
136,856,360 and 134,977,812 shares issued
|
1,369 | 1,350 | ||||||
Additional paid-in capital
|
327,095 | 284,961 | ||||||
Accumulated other comprehensive income (loss)
|
11,870 | (21,099 | ) | |||||
Retained earnings
|
2,099,005 | 1,878,459 | ||||||
2,439,339 | 2,143,671 | |||||||
|
||||||||
Treasury stock, at cost (1,916,510 and
|
||||||||
1,806,446 shares)
|
(38,915 | ) | (36,363 | ) | ||||
Total shareholders’ equity
|
2,400,424 | 2,107,308 | ||||||
Total liabilities and shareholders’ equity
|
$ | 9,881,033 | $ | 11,958,327 |
Years Ended June 30,
|
||||||||
2010
|
2009
|
|||||||
Revenue
|
||||||||
Finance charge income
|
$ | 1,431,319 | $ | 1,902,684 | ||||
Other income
|
91,215 | 116,488 | ||||||
Gain on retirement of debt
|
283 | 48,152 | ||||||
1,522,817 | 2,067,324 | |||||||
Costs and expenses
|
||||||||
Operating expenses
|
288,791 | 308,803 | ||||||
Leased vehicles expenses
|
34,639 | 47,880 | ||||||
Provision for loan losses
|
388,058 | 972,381 | ||||||
Interest expense
|
457,222 | 726,560 | ||||||
Restructuring charges, net
|
668 | 11,847 | ||||||
1,169,378 | 2,067,471 | |||||||
Income (loss) before income taxes
|
353,439 | (147 | ) | |||||
Income tax provision
|
132,893 | 10,742 | ||||||
Net income (loss)
|
220,546 | (10,889 | ) | |||||
Other comprehensive income (loss)
|
||||||||
Unrealized gains (losses) on cash flow hedges
|
43,306 | (26,871 | ) | |||||
Foreign currency translation adjustment
|
8,230 | 750 | ||||||
Unrealized losses on credit enhancement assets
|
||||||||
Income tax (provision) benefit
|
(18,567 | ) | 11,426 | |||||
Other comprehensive income (loss)
|
32,969 | (14,695 | ) | |||||
Comprehensive income (loss)
|
$ | 253,515 | $ | (25,584 | ) | |||
Earnings (loss) per share
|
||||||||
Basic
|
$ | 1.65 | $ | (0.09 | ) | |||
Diluted
|
$ | 1.60 | $ | (0.09 | ) | |||
Weighted average shares
|
||||||||
Basic
|
133,845,238 | 125,239,241 | ||||||
Diluted
|
138,179,945 | 125,239,241 |
Accumulated
|
||||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-in
|
Other
Comprehensive
|
Retained
|
Treasury Stock
|
||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Income (Loss)
|
Earnings
|
Shares
|
Amount
|
||||||||||||||||||||||
Balance at July 1, 2008
|
118,766,250 | $ | 1,188 | $ | 134,064 | $ | (6,404 | ) | $ | 1,889,348 | $ | 2,454,534 | $ | (52,934 | ) | |||||||||||||
Common stock issued on
|
||||||||||||||||||||||||||||
exercise of options
|
131,654 | 1 | 1,053 | |||||||||||||||||||||||||
Common stock issued relating to
|
||||||||||||||||||||||||||||
retirement of debt
|
15,122,670 | 151 | 90,830 | |||||||||||||||||||||||||
Income tax benefit from exercise of options and
|
||||||||||||||||||||||||||||
amortization of convertible note hedges
|
10,678 | |||||||||||||||||||||||||||
Common stock cancelled -
|
||||||||||||||||||||||||||||
restricted stock
|
(47,000 | ) | ||||||||||||||||||||||||||
Common stock issued for
|
||||||||||||||||||||||||||||
employee benefit plans
|
1,004,238 | 10 | (11,029 | ) | (648,088 | ) | 16,571 | |||||||||||||||||||||
Stock based compensation expense
|
14,264 | |||||||||||||||||||||||||||
Amortization of warrant costs
|
45,101 | |||||||||||||||||||||||||||
Other comprehensive loss, net
|
||||||||||||||||||||||||||||
of income tax benefit of
|
||||||||||||||||||||||||||||
$11,426
|
(14,695 | ) | ||||||||||||||||||||||||||
Net loss
|
(10,889 | ) | ||||||||||||||||||||||||||
Balance at June 30, 2009
|
134,977,812 | 1,350 | 284,961 | (21,099 | ) | 1,878,459 | 1,806,446 | (36,363 | ) | |||||||||||||||||||
Common stock issued on
|
||||||||||||||||||||||||||||
exercise of options
|
837,411 | 8 | 11,597 | |||||||||||||||||||||||||
Income tax benefit from exercise of options and
|
||||||||||||||||||||||||||||
amortization of convertible note hedges
|
9,434 | |||||||||||||||||||||||||||
Common stock issued for
|
||||||||||||||||||||||||||||
employee benefit plans
|
1,041,137 | 11 | 4,020 | 110,064 | (2,552 | ) | ||||||||||||||||||||||
Stock based compensation expense
|
15,115 | |||||||||||||||||||||||||||
Amortization of warrant costs
|
1,968 | |||||||||||||||||||||||||||
Other comprehensive income, net
|
||||||||||||||||||||||||||||
of income tax provision of
|
||||||||||||||||||||||||||||
$18,567
|
32,969 | |||||||||||||||||||||||||||
Net income
|
220,546 | |||||||||||||||||||||||||||
Balance at June 30, 2010
|
136,856,360 | $ | 1,369 | $ | 327,095 | $ | 11,870 | $ | 2,099,005 | 1,916,510 | $ | (38,915 | ) |
Years Ended June 30,
|
||||||||
2010
|
2009
|
|||||||
Cash flows from operating activities
|
||||||||
Net income (loss)
|
$ | 220,546 | $ | (10,889 | ) | |||
Adjustments to reconcile net income (loss) to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation and amortization
|
79,044 | 109,008 | ||||||
Provision for loan losses
|
388,058 | 972,381 | ||||||
Deferred income taxes
|
(24,567 | ) | 226,783 | |||||
Stock based compensation expense
|
15,115 | 14,264 | ||||||
Amortization of warrant costs
|
1,968 | 45,101 | ||||||
Non-cash interest charges on convertible debt
|
21,554 | 22,506 | ||||||
Accretion and amortization of loan fees
|
4,791 | 19,094 | ||||||
Gain on retirement of debt
|
(283 | ) | (48,907 | ) | ||||
Other
|
(15,954 | ) | 2,773 | |||||
Changes in assets and liabilities, net of assets and liabilities acquired:
|
||||||||
Income tax receivable
|
197,402 | (174,682 | ) | |||||
Other assets
|
5,256 | (6,704 | ) | |||||
Accrued taxes and expenses
|
35,779 | (52,113 | ) | |||||
Net cash provided by operating activities
|
928,709 | 1,118,615 | ||||||
Cash flows from investing activities
|
||||||||
Purchases of receivables
|
(2,090,602 | ) | (1,280,291 | ) | ||||
Principal collections and recoveries on receivables
|
3,606,680 | 4,257,637 | ||||||
Purchases of property and equipment
|
(1,581 | ) | (1,003 | ) | ||||
Change in restricted cash – securitization notes payable
|
(78,549 | ) | 131,064 | |||||
Change in restricted cash – credit facilities
|
52,354 | 63,180 | ||||||
Change in other assets
|
43,875 | 12,960 | ||||||
Proceeds from money market fund
|
10,047 | 104,319 | ||||||
Investment in money market fund
|
(115,821 | ) | ||||||
Net cash provided by investing activities
|
1,542,224 | 3,172,045 | ||||||
Cash flows from financing activities
|
||||||||
Net change in credit facilities
|
(1,031,187 | ) | (1,278,117 | ) | ||||
Issuance of securitization notes payable
|
2,352,493 | 1,000,000 | ||||||
Payments on securitization notes payable
|
(3,674,062 | ) | (3,987,424 | ) | ||||
Debt issuance costs
|
(24,754 | ) | (32,609 | ) | ||||
Net proceeds from issuance of common stock
|
15,635 | 3,741 | ||||||
Retirement of debt
|
(20,425 | ) | (238,617 | ) | ||||
Other net changes
|
645 | (603 | ) | |||||
Net cash used by financing activities
|
(2,381,655 | ) | (4,533,629 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
89,278 | (242,969 | ) | |||||
Effect of Canadian exchange rate changes on cash and cash equivalents
|
(292 | ) | 2,763 | |||||
Cash and cash equivalents at beginning of year
|
193,287 | 433,493 | ||||||
Cash and cash equivalents at end of year
|
$ | 282,273 | $ | 193,287 |
Finance charge income related to finance receivables is recognized using the interest method. Accrual of finance charge income is suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy, and accounts in repossession. Fees and commissions received and direct costs of originating loans are deferred and amortized over the term of the related finance receivables using the interest method and are removed from the consolidated balance sheets when the related finance receivables are sold, charged off or paid in full.
|
Years Ended June 30,
|
2010
|
2009
|
||||||
Expected dividends
|
0 | 0 | ||||||
Expected volatility
|
65.7 | % | 92.1 | % | ||||
Risk-free interest rate
|
1.2 | % | 1.7 | % | ||||
Expected life
|
1.4 years
|
2.0 years
|
June 30,
|
2010
|
2009
|
||||||
Finance receivables unsecuritized, net of fees
|
$ | 1,533,673 | $ | 2,534,158 | ||||
Finance receivables securitized, net of fees
|
7,199,845 | 8,393,811 | ||||||
Less allowance for loan losses
|
(573,310 | ) | (890,640 | ) | ||||
$ | 8,160,208 | $ | 10,037,329 |
Years ended June 30,
|
2010
|
2009
|
||||||
Balance at beginning of year
|
$ | 890,640 | $ | 951,113 | ||||
Provision for loan losses
|
388,058 | 972,381 | ||||||
Net charge-offs
|
(705,388 | ) | (1,032,854 | ) | ||||
Balance at end of year
|
$ | 573,310 | $ | 890,640 |
Years ended June 30,
|
2010
|
2009
|
||||||
Receivables securitized
|
$ | 2,843,308 | $ | 1,289,082 | ||||
Net proceeds from securitization
|
2,352,493 | 1,000,000 | ||||||
Servicing fees:
|
||||||||
Sold
|
28 | |||||||
Secured financing (a)
|
196,304 | 237,471 | ||||||
Distributions from Trusts
|
424,161 | 429,457 |
(a)
|
Cash flows received for servicing securitizations accounted for as secured financings are included in finance charge income on the consolidated statements of operations and comprehensive operations.
|
June 30,
|
2010
|
2009
|
||||||
Medium term note facility
|
$ | 598,946 | $ | 750,000 | ||||
Master/Syndicated warehouse facility
|
569,756 | |||||||
Prime/Near prime facility
|
250,377 | |||||||
Lease warehouse facility
|
60,000 | |||||||
$ | 598,946 | $ | 1,630,133 |
Facility
|
Facility
Amount
|
Advances Outstanding
|
Finance Receivables Pledged
|
Restricted
Cash
Pledged (c)
|
||||||||||||
Master/Syndicated warehouse facility(a):
|
$ | 1,300,000 | $ | 300 | ||||||||||||
Medium term note facility (b):
|
$ | 598,946 | $ | 651,255 | 115,837 | |||||||||||
|
$ | 1,300,000 | $ | 598,946 | $ | 651,255 | $ | 116,137 |
(a)
|
In February 2011 when the revolving period ends and if the facility is not renewed, the outstanding balance will be repaid over time based on the amortization of the receivables pledged until February 2012 when the remaining balance will be due and payable.
|
(b)
|
The revolving period under this facility ended in October 2009, and the outstanding debt balance will be repaid over time based on the amortization of the receivables pledged until October 2016 when any remaining amount outstanding will be due and payable.
|
(c)
|
These amounts do not include cash collected on finance receivables pledged of $26.6 million which is also included in restricted cash – credit facilities on the consolidated balance sheets.
|
Transaction
|
Maturity
Date (b)
|
Original
Note
Amount
|
Original Weighted
Average Interest Rate
|
Receivables
Pledged at
June 30, 2010
|
Note
Balance at June 30, 2010
|
Note
Balance at June 30, 2009
|
|||||||||||||||
2004-D-F
|
July 2011
|
$ | 750,000 | 3.1 | % | $ | 48,301 | ||||||||||||||
2005-A-X
|
October 2011
|
900,000 | 3.7 | % | 72,264 | ||||||||||||||||
2005-1
|
May 2011
|
750,000 | 4.5 | % | 57,059 | ||||||||||||||||
2005-B-M
|
May 2012
|
1,350,000 | 4.1 | % | 159,428 | ||||||||||||||||
2005-C-F
|
June 2012
|
1,100,000 | 4.5 | % | $ | 77,101 | $ | 69,967 | 160,112 | ||||||||||||
2005-D-A
|
November 2012
|
1,400,000 | 4.9 | % | 130,552 | 118,645 | 245,084 | ||||||||||||||
2006-1
|
May 2013
|
945,000 | 5.3 | % | 107,872 | 83,724 | 162,775 | ||||||||||||||
2006-R-M
|
January 2014
|
1,200,000 | 5.4 | % | 282,564 | 253,467 | 452,604 | ||||||||||||||
2006-A-F
|
September 2013
|
1,350,000 | 5.6 | % | 231,544 | 209,606 | 371,300 | ||||||||||||||
2006-B-G
|
September 2013
|
1,200,000 | 5.2 | % | 250,414 | 227,503 | 386,480 | ||||||||||||||
2007-A-X
|
October 2013
|
1,200,000 | 5.2 | % | 302,553 | 276,588 | 447,945 | ||||||||||||||
2007-B-F
|
December 2013
|
1,500,000 | 5.2 | % | 449,540 | 410,193 | 650,889 | ||||||||||||||
2007-1
|
March 2016
|
1,000,000 | 5.4 | % | 260,396 | 263,468 | 430,801 | ||||||||||||||
2007-C-M
|
April 2014
|
1,500,000 | 5.5 | % | 526,484 | 481,155 | 742,002 | ||||||||||||||
2007-D-F
|
June 2014
|
1,000,000 | 5.5 | % | 381,097 | 347,913 | 539,020 | ||||||||||||||
2007-2-M
|
March 2016
|
1,000,000 | 5.3 | % | 363,564 | 347,739 | 535,200 | ||||||||||||||
2008-A-F
|
October 2014
|
750,000 | 6.0 | % | 431,228 | 343,753 | 518,835 | ||||||||||||||
2008-1
|
January 2015
|
500,000 | 8.7 | % | 356,580 | 221,952 | 388,355 | ||||||||||||||
2008-2
|
April 2015
|
500,000 | 10.5 | % | 378,821 | 230,803 | 400,108 | ||||||||||||||
2009-1
|
January 2016
|
725,000 | 7.5 | % | 675,981 | 450,998 | |||||||||||||||
2009-1 (APART)
|
July 2017
|
227,493 | 2.7 | % | 228,458 | 163,350 | |||||||||||||||
2010-1
|
July 2017
|
600,000 | 3.7 | % | 600,341 | 511,583 | |||||||||||||||
2010-A
|
July 2017
|
200,000 | 3.1 | % | 224,084 | 187,162 | |||||||||||||||
2010-2
|
June 2016
|
600,000 | 3.8 | % | 609,800 | 583,210 | |||||||||||||||
BV2005-LJ-1 (a)
|
May 2012
|
232,100 | 5.1 | % | 10,635 | 11,271 | 26,800 | ||||||||||||||
BV2005-LJ-2 (a) (c)
|
February 2014
|
185,596 | 4.6 | % | 12,215 | 11,467 | 26,668 | ||||||||||||||
BV2005-3 (a)
|
June 2014
|
220,107 | 5.1 | % | 21,211 | 22,359 | 43,065 | ||||||||||||||
LB2004-C (a)
|
July 2011
|
350,000 | 3.5 | % | 23,543 | ||||||||||||||||
LB2005-A (a)
|
April 2012
|
350,000 | 4.1 | % | 14,852 | 15,708 | 41,040 | ||||||||||||||
LB2005-B (a)
|
June 2012
|
350,000 | 4.4 | % | 24,567 | 22,293 | 53,157 | ||||||||||||||
LB2006-A (a)
|
May 2013
|
450,000 | 5.4 | % | 54,482 | 49,638 | 97,058 | ||||||||||||||
LB2006-B (a)
|
September 2013
|
500,000 | 5.2 | % | 80,735 | 83,194 | 148,167 | ||||||||||||||
LB2007-A
|
January 2014
|
486,000 | 5.0 | % | 112,174 | 110,267 | 198,627 | ||||||||||||||
$ | 25,371,296 | $ | 7,199,845 | $ | 6,108,976 | $ | 7,426,687 |
(a)
|
Transactions relate to securitization Trusts acquired by us.
|
(b)
|
Maturity date represents final legal maturity of securitization notes payable. Securitization notes payable are expected to be paid based on amortization of the finance receivables pledged to the Trusts. Expected principal payments are $3,075.5 million in fiscal 2011, $1,961.6 million in fiscal 2012, $625.2 million in fiscal 2013, $280.5 million in fiscal 2014, $131.8 million in fiscal 2015 and $37.7 million thereafter.
|
(c)
|
Note balance does not include $1.4 million of asset-backed securities repurchased and retained by us as of June 30, 2010.
|
June 30,
|
June 30,
|
|||||||
2010
|
2009
|
|||||||
8.5% Senior Notes (due July 2015)
|
$ | 70,620 | $ | 91,620 | ||||
0.75% Convertible Senior Notes
|
||||||||
(due in September 2011)
|
247,000 | 247,000 | ||||||
Debt discount
|
(17,645 | ) | (31,088 | ) | ||||
2.125% Convertible Senior Notes
|
||||||||
(due in September 2013)
|
215,017 | 215,017 | ||||||
Debt discount
|
(30,304 | ) | (38,415 | ) | ||||
$ | 414,068 | $ | 392,514 |
Years Ended June 30,
|
2010
|
2009
|
||||||
Discount amortization
|
$ | 21,554 | $ | 22,506 | ||||
Contractual interest
|
6,421 | 7,379 | ||||||
Total interest expense related to
|
||||||||
convertible senior notes
|
$ | 27,975 | $ | 29,885 |
June 30, 2010
|
June 30, 2009
|
|||||||||||||||
Notional
|
Fair Value
|
Notional
|
Fair Value
|
|||||||||||||
Assets
|
||||||||||||||||
Interest rate swaps (a)
|
$ | 1,682,182 | $ | 26,194 | $ | 2,592,548 | $ | 24,267 | ||||||||
Interest rate caps (a)
|
774,456 | 3,188 | 1,914,886 | 15,858 | ||||||||||||
Total assets
|
$ | 2,456,638 | $ | 29,382 | $ | 4,507,434 | $ | 40,125 | ||||||||
Liabilities
|
||||||||||||||||
Interest rate swaps
|
$ | 1,682,182 | $ | 70,421 | $ | 2,592,548 | $ | 131,885 | ||||||||
Interest rate caps (b)
|
708,287 | 3,320 | 1,721,044 | 16,644 | ||||||||||||
Foreign currency contracts (b)(c)
|
58,470 | 1,206 | ||||||||||||||
Total liabilities
|
$ | 2,448,939 | $ | 74,947 | $ | 4,313,592 | $ | 148,529 | ||||||||
(a)
|
Included in other assets on the consolidated balance sheets.
|
(b)
|
Included in other liabilities on the consolidated balance sheets.
|
(c)
|
Notional has been translated from Canadian dollars to U.S. dollars at the quarter end rate.
|
Income (Losses) Recognized In Income
|
||||||||
2010
|
2009
|
|||||||
Non-Designated hedges:
|
||||||||
Interest rate contracts (a)
|
$ | 13,248 | $ | (12,463 | ) | |||
Foreign currency contracts (b)
|
(1,206 | ) | ||||||
Total
|
$ | 12,042 | $ | (12,463 | ) | |||
Designated hedges:
|
||||||||
Interest rate contracts (a)
|
$ | 394 | $ | (781 | ) | |||
Total
|
$ | 394 | $ | (781 | ) |
(Losses) Recognized in Accumulated Other Comprehensive Income (Loss)
|
||||||||
2010
|
2009
|
|||||||
Designated hedges:
|
||||||||
Interest rate contracts (a)
|
$ | (36,761 | ) | $ | (109,115 | ) | ||
Total
|
$ | (36,761 | ) | $ | (109,115 | ) |
(Losses) Reclassified From Accumulated Other Comprehensive
|
||||||||
Income (Loss) into Income (c)
|
||||||||
2010
|
2009
|
|||||||
Designated hedges:
|
||||||||
Interest rate contracts (a)
|
$ | ( 80,067 | ) | $ | ( 82,244 | ) | ||
Total
|
$ | ( 80,067 | ) | $ | ( 82,244 | ) |
(a)
|
Income (losses) recognized in income are included in interest expense.
|
(b)
|
Income (losses) recognized in income are included in operating expenses.
|
(c)
|
Losses reclassified from AOCI into income for effective and ineffective portions are included in interest expense.
|
(A)
|
Market approach - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Prices may be indicated by pricing guides, sale transactions, market trades, or other sources;
|
(B)
|
Cost approach - Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost); and
|
(C)
|
Income approach - Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about the future amounts (includes present value techniques and option-pricing models). Net present value is an income approach where a stream of expected cash flows is discounted at an appropriate market interest rate.
|
|
June 30, 2010
|
|||||||||||||||
(in thousands)
|
||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Level 1 |
Level 2
|
Level 3
|
||||||||||||||
Quoted | ||||||||||||||||
Prices | ||||||||||||||||
In Active |
Significant
|
Assets/
|
||||||||||||||
Markets for |
Other
|
Significant
|
Liabilities
|
|||||||||||||
Identical |
Observable
|
Unobservable
|
At Fair
|
|||||||||||||
Assets |
Inputs
|
Inputs
|
Value
|
|||||||||||||
Assets
|
||||||||||||||||
Derivatives not designated as
|
||||||||||||||||
hedging instruments:
|
||||||||||||||||
Interest rate caps (A)
|
$ | 3,188 | $ | 3,188 | ||||||||||||
Interest rate swaps (C)
|
$ | 26,194 | 26,194 | |||||||||||||
Total assets
|
$ | $ | 3,188 | $ | 26,194 | $ | 29,382 | |||||||||
Liabilities
|
||||||||||||||||
Derivatives designated as
|
||||||||||||||||
hedging instruments:
|
||||||||||||||||
Interest rate swaps (C)
|
$ | 70,421 | $ | 70,421 | ||||||||||||
Derivatives not designated as
|
||||||||||||||||
hedging instruments:
|
||||||||||||||||
Interest rate caps (A)
|
$ | 3,320 | 3,320 | |||||||||||||
Foreign currency contracts (A)
|
1,206 | 1,206 | ||||||||||||||
Total liabilities
|
$ | $ | 4,526 | $ | 70,421 | $ | 74,947 |
June 30, 2009
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Level 1 |
Level 2
|
Level 3
|
||||||||||||||
Quoted | ||||||||||||||||
Prices | ||||||||||||||||
In Active |
Significant
|
Assets/
|
||||||||||||||
Markets for |
Other
|
Significant
|
Liabilities
|
|||||||||||||
Identical |
Observable
|
Unobservable
|
At Fair
|
|||||||||||||
Assets |
Inputs
|
Inputs
|
Value
|
|||||||||||||
Assets
|
||||||||||||||||
Investment in money
|
||||||||||||||||
market fund (A)
|
$ | 8,027 | $ | 8,027 | ||||||||||||
Derivatives not designated as
|
||||||||||||||||
hedging instruments:
|
||||||||||||||||
Interest rate caps (A)
|
$ | 15,858 | 15,858 | |||||||||||||
Interest rate swaps (C)
|
24,267 | 24,267 | ||||||||||||||
Total assets
|
$ | $ | 15,858 | $ | 32,294 | $ | 48,152 | |||||||||
Liabilities
|
||||||||||||||||
Derivatives designated as
|
||||||||||||||||
hedging instruments:
|
||||||||||||||||
Interest rate swaps (C)
|
$ | 131,885 | $ | 131,885 | ||||||||||||
Derivatives not designated as
|
||||||||||||||||
hedging instruments:
|
||||||||||||||||
Interest rate caps (A)
|
$ | 16,644 | 16,644 | |||||||||||||
Total liabilities
|
$ | $ | 16,644 | $ | 131,885 | $ | 148,529 |
Assets
|
Liabilities
|
|||||||||||
Interest Rate Swap
|
Investment in Money
|
Interest Rate Swap
|
||||||||||
Agreements
|
Market Fund
|
Agreements
|
||||||||||
Balance at July 1, 2008
|
$ | 3,572 | $ | (76,269 | ) | |||||||
Transfers into Level 3
|
$ | 115,821 | ||||||||||
Total realized and unrealized gains (losses)
|
||||||||||||
Included in earnings
|
22,700 | (3,475 | ) | (34,926 | ) | |||||||
Included in other comprehensive income
|
(109,115 | ) | ||||||||||
Settlements
|
(2,005 | ) | (104,319 | ) | 88,425 | |||||||
Balance at June 30, 2009
|
24,267 | 8,027 | (131,885 | ) | ||||||||
Total realized and unrealized gains (losses)
|
||||||||||||
Included in earnings
|
12,595 | 2,020 | 394 | |||||||||
Included in other comprehensive income
|
(36,761 | ) | ||||||||||
Settlements
|
(10,668 | ) | (10,047 | ) | 97,831 | |||||||
Balance at June 30, 2010
|
$ | 26,194 | $ | $ | (70,421 | ) | ||||||
2011
|
$ | 11,174 | ||
2012
|
11,097 | |||
2013
|
10,522 | |||
2014
|
10,248 | |||
2015
|
9,878 | |||
Thereafter
|
24,560 | |||
$ | 77,479 |
Years Ended June 30,
|
2010
|
2009
|
||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Exercise
|
Exercise
|
|||||||||||||||
Shares
|
Price
|
Shares
|
Price
|
|||||||||||||
Outstanding at
|
||||||||||||||||
beginning of year
|
2,106 | $ | 18.02 | 2,127 | $ | 23.48 | ||||||||||
Granted
|
42 | 20.96 | 942 | 8.03 | ||||||||||||
Exercised
|
(757 | ) | 13.44 | (132 | ) | 8.01 | ||||||||||
Canceled/forfeited
|
(67 | ) | 17.56 | (831 | ) | 22.26 | ||||||||||
Outstanding at end of year
|
1,324 | $ | 20.75 | 2,106 | $ | 18.02 | ||||||||||
Options exercisable at end of year
|
1,033 | $ | 23.81 | 1,563 | $ | 21.33 | ||||||||||
Weighted average fair value of options
|
||||||||||||||||
granted during year
|
$ | 10.79 | $ | 4.50 |
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||
Weighted
|
||||||||||||||||||||
Average Years
|
Weighted
|
Weighted
|
||||||||||||||||||
of Remaining
|
Average
|
Average
|
||||||||||||||||||
Range of
|
Number
|
Contractual
|
Exercise
|
Number
|
Exercise
|
|||||||||||||||
Exercise Prices
|
Outstanding
|
Life
|
Price
|
Outstanding
|
Price
|
|||||||||||||||
$6.80 to 10.00
|
421 | 2.66 | $ | 7.94 | 172 | $ | 7.80 | |||||||||||||
$10.01 to 15.00
|
80 | 3.35 | 13.55 | 80 | 13.55 | |||||||||||||||
$15.01 to 19.00
|
128 | 1.35 | 16.10 | 128 | 16.10 | |||||||||||||||
$19.01 to 21.00
|
158 | 4.01 | 20.08 | 116 | 19.77 | |||||||||||||||
$21.01 to 30.00
|
309 | 2.42 | 25.58 | 309 | 25.58 | |||||||||||||||
$30.01 to 50.00
|
216 | 0.80 | 42.91 | 216 | 42.91 | |||||||||||||||
$50.01 to 55.00
|
12 | 0.98 | 54.14 | 12 | 54.14 | |||||||||||||||
1,324 | 1,033 |
Years Ended June 30,
|
2010
|
2009
|
||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Exercise
|
Exercise
|
|||||||||||||||
Shares
|
Price
|
Shares
|
Price
|
|||||||||||||
Outstanding at beginning of year
|
80 | $ | 17.81 | 160 | $ | 16.35 | ||||||||||
Exercised
|
(80 | ) | 17.81 | |||||||||||||
Canceled/forfeited
|
(80 | ) | 14.88 | |||||||||||||
Outstanding and exercisable
|
||||||||||||||||
at end of year
|
$ | 80 | $ | 17.81 |
Years Ended June 30,
|
2010
|
2009
|
||||||
Nonvested at beginning of year
|
2,253 | 1,301 | ||||||
Granted
|
415 | 2,143 | ||||||
Vested
|
(555 | ) | (545 | ) | ||||
Forfeited
|
(303 | ) | (646 | ) | ||||
Nonvested at end of year
|
1,810 | 2,253 |
Years Ended June 30,
|
2010
|
2009
|
||||||
Current
|
$ | 157,460 | $ | (216,041 | ) | |||
Deferred
|
(24,567 | ) | 226,783 | |||||
|
$ | 132,893 | $ | 10,742 |
Years Ended June 30,
|
2010
|
2009 (a)
|
||||||
U.S. statutory tax rate
|
35.0 | % | 35.0 | % | ||||
State and other income taxes
|
0.9 | N/M | ||||||
Deferred tax rate change
|
0.7 | N/M | ||||||
FIN 48 uncertain tax positions
|
1.1 | N/M | ||||||
Valuation allowance
|
0.3 | N/M | ||||||
Other
|
(0.4 | ) | N/M | |||||
37.6 | % | N/M |
(a)
|
N/M = Not meaningful. Because the retrospective adoption of the accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) resulted in a loss before income taxes of $0.1 million and we recorded an income tax provision of $10.7 million, the effective income tax rate and the effect on such rate of the listed reconciling items is not meaningful.
|
June 30,
|
2010
|
2009
|
||||||
Deferred tax liabilities:
|
||||||||
Market value difference of loan portfolio
|
$ | (14,644 | ) | $ | (104,984 | ) | ||
Capitalized direct loan origination costs
|
(6,695 | ) | (10,084 | ) | ||||
Fixed assets
|
(17,386 | ) | (13,397 | ) | ||||
Deferred gain on debt repurchase
|
(8,998 | ) | (8,638 | ) | ||||
Basis difference on convertible debt
|
(17,169 | ) | (24,357 | ) | ||||
Other
|
(38,208 | ) | (6,606 | ) | ||||
(103,100 | ) | (168,066 | ) | |||||
Deferred tax assets:
|
||||||||
Net operating loss carryforward - Canada
|
1,348 | 3,229 | ||||||
Net operating loss carryforward - U. S.
|
73,589 | |||||||
Net operating loss carryforward - state
|
3,280 | 9,685 | ||||||
Alternative minimum tax credit carryforward
|
12,131 | |||||||
Unrealized swap valuation on other
|
||||||||
comprehensive income
|
19,842 | 31,745 | ||||||
Impairment of goodwill and other intangible
|
||||||||
amortization
|
60,191 | 62,748 | ||||||
Unrecognized income tax benefits from
|
||||||||
uncertain tax positions
|
27,929 | 19,586 | ||||||
Other
|
74,104 | 31,869 | ||||||
186,694 | 244,582 | |||||||
Valuation allowance
|
(1,759 | ) | (734 | ) | ||||
Net deferred tax asset
|
$ | 81,836 | $ | 75,782 |
Year Ended June 30,
|
2010
|
2009
|
||||||
Gross unrecognized tax benefits at beginning of year
|
$ | 34,971 | $ | 57,728 | ||||
Increase in tax positions for prior years
|
3,186 | 2,761 | ||||||
Decrease in tax positions for prior years
|
(4,901 | ) | (24,254 | ) | ||||
Increase in tax positions for current year
|
12,907 | 1,402 | ||||||
Lapse of statute of limitations
|
(218 | ) | (245 | ) | ||||
Settlements
|
(3,443 | ) | (2,421 | ) | ||||
Gross unrecognized tax benefits at end of year
|
$ | 42,502 | $ | 34,971 |
Accrued Interest
|
Accrued Penalties
|
|||||||
July 1, 2008
|
$ | 9,508 | $ | 7,421 | ||||
Changes
|
804 | 466 | ||||||
June 30, 2009
|
10,312 | 7,887 | ||||||
Changes
|
1,785 | 587 | ||||||
June 30, 2010
|
$ | 12,097 | $ | 8,474 |
Personnel-
|
Contract
|
Other
|
||||||||||||||
Related
|
Termination
|
Associated
|
||||||||||||||
Costs
|
Costs
|
Costs
|
Total
|
|||||||||||||
Balance at July 1, 2008
|
$ | 3,207 | $ | 3,741 | $ | 1,442 | $ | 8,390 | ||||||||
Additions
|
9,287 | 2,068 | 372 | 11,727 | ||||||||||||
Cash settlements
|
(11,482 | ) | (2,980 | ) | (77 | ) | (14,539 | ) | ||||||||
Non-cash settlements
|
(106 | ) | 432 | (390 | ) | (64 | ) | |||||||||
Adjustments
|
(43 | ) | 1,510 | (1,347 | ) | 120 | ||||||||||
Balance at June 30, 2009
|
863 | 4,771 | 5,634 | |||||||||||||
Additions
|
802 | 802 | ||||||||||||||
Cash settlements
|
(1,564 | ) | (4,076 | ) | (5,640 | ) | ||||||||||
Non-cash settlements
|
(145 | ) | (145 | ) | ||||||||||||
Adjustments
|
(101 | ) | (33 | ) | (134 | ) | ||||||||||
Balance at June 30, 2010
|
$ | $ | 517 | $ | $ | 517 |
Years Ended June 30,
|
2010
|
2009
|
||||||
Net income (loss)
|
$ | 220,546 | $ | (10,889 | ) | |||
Basic weighted average shares
|
133,845,238 | 125,239,241 | ||||||
Incremental shares resulting from assumed conversions:
|
||||||||
Stock based compensation and warrants
|
4,334,707 | |||||||
Diluted weighted average shares
|
138,179,945 | 125,239,241 | ||||||
Earnings (loss) per share:
|
||||||||
Basic
|
$ | 1.65 | $ | (0.09 | ) | |||
Diluted
|
$ | 1.60 | $ | (0.09 | ) |
Years Ended June 30,
|
2010
|
2009
|
||||||
Interest costs (none capitalized)
|
$ | 446,699 | $ | 645,386 | ||||
Income taxes
|
190,825 | 2,501 |
Years Ended June 30,
|
2010
|
2009
|
||||||
Unrealized (losses) gains on cash flow hedges:
|
||||||||
Balance at beginning of year
|
$ | (62,509 | ) | $ | (44,676 | ) | ||
Change in fair value associated with current
|
||||||||
period hedging activities, net of taxes of
|
||||||||
$(13,333) and $(39,818), respectively
|
(23,428 | ) | (69,297 | ) | ||||
Reclassification into earnings, net of taxes of
|
||||||||
$28,948 and $30,780, respectively
|
51,119 | 51,464 | ||||||
Balance at end of year
|
(34,818 | ) | (62,509 | ) | ||||
Foreign currency translation
|
||||||||
adjustment:
|
||||||||
Balance at beginning of year
|
41,410 | 38,272 | ||||||
Translation gain net of taxes of $2,952 and
|
||||||||
$(2,388), respectively
|
5,278 | 3,138 | ||||||
Balance at end of year
|
46,688 | 41,410 | ||||||
Total accumulated other comprehensive income
|
||||||||
(loss)
|
$ | 11,870 | $ | (21,099 | ) |
June 30,
|
2010
|
2009
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
||||||||||||||
Value
|
Fair Value
|
Value
|
Fair Value
|
||||||||||||||
Financial assets:
|
|||||||||||||||||
Cash and cash equivalents
|
(a)
|
$ | 282,273 | $ | 282,273 | $ | 193,287 | $ | 193,287 | ||||||||
Finance receivables, net
|
(b)
|
8,160,208 | 8,110,223 | 10,037,329 | 9,717,655 | ||||||||||||
Restricted cash – securitization
|
|||||||||||||||||
notes payable
|
(a)
|
930,155 | 930,155 | 851,606 | 851,606 | ||||||||||||
Restricted cash – credit facilities
|
(a)
|
142,725 | 142,725 | 195,079 | 195,079 | ||||||||||||
Restricted cash - other
|
(a)
|
26,960 | 26,960 | 46,905 | 46,905 | ||||||||||||
Interest rate swap agreements
|
(d)
|
26,194 | 26,194 | 24,267 | 24,267 | ||||||||||||
Interest rate cap agreements purchased
|
(d)
|
3,188 | 3,188 | 15,858 | 15,858 | ||||||||||||
Investment in money market fund
|
(d)
|
8,027 | 8,027 | ||||||||||||||
Financial liabilities:
|
|||||||||||||||||
Credit facilities
|
(c)
|
598,946 | 598,946 | 1,630,133 | 1,630,133 | ||||||||||||
Securitization notes payable
|
(d)
|
6,108,976 | 6,230,902 | 7,426,687 | 6,879,245 | ||||||||||||
Senior notes
|
(d)
|
70,620 | 70,620 | 91,620 | 85,207 | ||||||||||||
Convertible senior notes
|
(d)
|
414,068 | 414,007 | 392,514 | 328,396 | ||||||||||||
Interest rate swap agreements
|
(d)
|
70,421 | 70,421 | 131,885 | 131,885 | ||||||||||||
Interest rate cap agreements sold
|
(d)
|
3,320 | 3,320 | 16,644 | 16,644 | ||||||||||||
Foreign currency contracts
|
(d)
|
1,206 | 1,206 |
(a)
|
The carrying value of cash and cash equivalents, restricted cash – securitization notes payable, restricted cash – credit facilities and restricted cash - other is considered to be a reasonable estimate of fair value since these investments bear interest at market rates and have maturities of less than 90 days.
|
(b)
|
The fair value of the finance receivables is estimated based upon forecast cash flows on the receivables discounted using a weighted average cost of capital. The forecast includes among other things items such as prepayment, defaults, recoveries and fee income assumptions.
|
(c)
|
Credit facilities have variable rates of interest and maturities of three years or less. Therefore, carrying value is considered to be a reasonable estimate of fair value.
|
(d)
|
The fair values of the interest rate cap and swap agreements, investment in money market fund, securitization notes payable, senior notes, convertible senior notes and foreign currency contracts are based on quoted market prices, when available. If quoted market prices are not available, the market value is estimated by discounting future net cash flows expected to be settled using a current risk-adjusted rate.
|
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Year Ended June 30, 2010
|
||||||||||||||||
Total revenue
|
$ | 413,284 | $ | 386,755 | $ | 361,105 | $ | 361,673 | ||||||||
Income before income taxes
|
46,250 | 72,215 | 95,815 | 139,159 | ||||||||||||
Net income
|
25,761 | 46,029 | 63,206 | 85,550 | ||||||||||||
Basic earnings per share
|
0.19 | 0.34 | 0.47 | 0.64 | ||||||||||||
Diluted earnings per share
|
0.19 | 0.33 | 0.45 | 0.61 | ||||||||||||
Diluted weighted average shares
|
136,083,460 | 137,630,694 | 139,231,152 | 139,787,408 | ||||||||||||
Year Ended June 30, 2009
|
||||||||||||||||
Total revenue
|
$ | 566,043 | $ | 558,597 | $ | 492,425 | $ | 450,259 | ||||||||
Income (loss) before income taxes
|
(5,196 | ) | (52,805 | ) | 11,590 | 46,264 | ||||||||||
Net income (loss)
|
(5,274 | ) | (35,002 | ) | (2,406 | ) | 31,793 | |||||||||
Basic earnings (loss) per share
|
(0.05 | ) | (0.29 | ) | (0.02 | ) | 0.24 | |||||||||
Diluted earnings (loss) per share
|
(0.05 | ) | (0.29 | ) | (0.02 | ) | 0.24 | |||||||||
Diluted weighted average shares
|
116,271,119 | 120,106,666 | 131,914,885 | 133,523,867 |
AmeriCredit
|
Non-
|
|||||||||||||||||||
Corp.
|
Guarantors
|
Guarantors
|
Eliminations
|
Consolidated
|
||||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 275,139 | $ | 7,134 | $ | 282,273 | ||||||||||||||
Finance receivables, net
|
823,241 | 7,336,967 | 8,160,208 | |||||||||||||||||
Restricted cash -
|
||||||||||||||||||||
securitization notes payable
|
930,155 | 930,155 | ||||||||||||||||||
Restricted cash -
|
||||||||||||||||||||
credit facilities
|
142,725 | 142,725 | ||||||||||||||||||
Property and equipment, net
|
$ | 5,194 | 32,540 | 37,734 | ||||||||||||||||
Leased vehicles, net
|
3,194 | 91,483 | 94,677 | |||||||||||||||||
Deferred income taxes
|
13,118 | 107,912 | (39,194 | ) | 81,836 | |||||||||||||||
Other assets
|
3,751 | 97,010 | 50,664 | 151,425 | ||||||||||||||||
Due from affiliates
|
741,354 | 1,857,097 | $ | (2,598,451 | ) | |||||||||||||||
Investment in affiliates
|
2,256,871 | 3,753,620 | 820,266 | (6,830,757 | ) | |||||||||||||||
Total assets
|
$ | 3,020,288 | $ | 5,092,656 | $ | 11,197,297 | $ | (9,429,208 | ) | $ | 9,881,033 | |||||||||
Liabilities:
|
||||||||||||||||||||
Credit facilities
|
$ | 598,946 | $ | 598,946 | ||||||||||||||||
Securitization notes payable
|
6,108,976 | 6,108,976 | ||||||||||||||||||
Senior notes
|
$ | 70,620 | 70,620 | |||||||||||||||||
Convertible senior notes
|
414,068 | 414,068 | ||||||||||||||||||
Accrued taxes and expenses
|
135,058 | $ | 34,229 | 40,726 | 210,013 | |||||||||||||||
Interest rate swap agreements
|
70,421 | 70,421 | ||||||||||||||||||
Other liabilities
|
118 | 7,447 | 7,565 | |||||||||||||||||
Due to affiliates
|
2,598,451 | $ | (2,598,451 | ) | ||||||||||||||||
Total liabilities
|
619,864 | 2,640,127 | 6,819,069 | (2,598,451 | ) | 7,480,609 | ||||||||||||||
Shareholders' equity:
|
||||||||||||||||||||
Common stock
|
1,369 | 110,457 | (110,457 | ) | 1,369 | |||||||||||||||
Additional paid-in capital
|
327,095 | 75,887 | 1,272,491 | (1,348,378 | ) | 327,095 | ||||||||||||||
Accumulated other comprehensive
|
||||||||||||||||||||
income (loss)
|
11,870 | 45,256 | (34,818 | ) | (10,438 | ) | 11,870 | |||||||||||||
Retained earnings
|
2,099,005 | 2,220,929 | 3,140,555 | (5,361,484 | ) | 2,099,005 | ||||||||||||||
2,439,339 | 2,452,529 | 4,378,228 | (6,830,757 | ) | 2,439,339 | |||||||||||||||
Treasury stock
|
(38,915 | ) | (38,915 | ) | ||||||||||||||||
Total shareholders' equity
|
2,400,424 | 2,452,529 | 4,378,228 | (6,830,757 | ) | 2,400,424 | ||||||||||||||
Total liabilities and
|
||||||||||||||||||||
shareholders' equity
|
$ | 3,020,288 | $ | 5,092,656 | $ | 11,197,297 | $ | (9,429,208 | ) | $ | 9,881,033 |
AmeriCredit
|
Non-
|
|||||||||||||||||||
Corp.
|
Guarantors
|
Guarantors
|
Eliminations
|
Consolidated
|
||||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 186,564 | $ | 6,723 | $ | 193,287 | ||||||||||||||
Finance receivables, net
|
580,420 | 9,456,909 | 10,037,329 | |||||||||||||||||
Restricted cash -
|
||||||||||||||||||||
securitization notes payable
|
851,606 | 851,606 | ||||||||||||||||||
Restricted cash -
|
||||||||||||||||||||
credit facilities
|
195,079 | 195,079 | ||||||||||||||||||
Property and equipment, net
|
$ | 5,527 | 38,668 | 44,195 | ||||||||||||||||
Leased vehicles, net
|
5,319 | 151,068 | 156,387 | |||||||||||||||||
Deferred income taxes
|
97,657 | 243,803 | (265,678 | ) | 75,782 | |||||||||||||||
Income tax receivable
|
162,036 | 35,543 | 197,579 | |||||||||||||||||
Other assets
|
5,682 | 132,485 | 68,916 | 207,083 | ||||||||||||||||
Due from affiliates
|
404,943 | 4,059,841 | $ | (4,464,784 | ) | |||||||||||||||
Investment in affiliates
|
1,976,793 | 5,558,924 | 603,680 | (8,139,397 | ) | |||||||||||||||
Total assets
|
$ | 2,652,638 | $ | 6,781,726 | $ | 15,128,144 | $ | (12,604,181 | ) | $ | 11,958,327 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||
Credit facilities
|
$ | 1,630,133 | $ | 1,630,133 | ||||||||||||||||
Securitization notes payable
|
7,426,687 | 7,426,687 | ||||||||||||||||||
Senior notes
|
$ | 91,620 | 91,620 | |||||||||||||||||
Convertible senior notes
|
392,514 | 392,514 | ||||||||||||||||||
Accrued taxes and expenses
|
60,596 | $ | 44,371 | 52,673 | 157,640 | |||||||||||||||
Interest rate swap agreements
|
525 | 131,360 | 131,885 | |||||||||||||||||
Other liabilities
|
600 | 19,940 | 20,540 | |||||||||||||||||
Due to affiliates
|
4,464,784 | $ | (4,464,784 | ) | ||||||||||||||||
Total liabilities
|
545,330 | 4,529,620 | 9,240,853 | (4,464,784 | ) | 9,851,019 | ||||||||||||||
Shareholders' equity:
|
||||||||||||||||||||
Common stock
|
1,350 | 172,368 | (172,368 | ) | 1,350 | |||||||||||||||
Additional paid-in capital
|
284,961 | 75,878 | 3,177,841 | (3,253,719 | ) | 284,961 | ||||||||||||||
Accumulated other comprehensive
|
||||||||||||||||||||
(loss) income
|
(21,099 | ) | 26,009 | (62,508 | ) | 36,499 | (21,099 | ) | ||||||||||||
Retained earnings
|
1,878,459 | 1,977,851 | 2,771,958 | (4,749,809 | ) | 1,878,459 | ||||||||||||||
2,143,671 | 2,252,106 | 5,887,291 | (8,139,397 | ) | 2,143,671 | |||||||||||||||
Treasury stock
|
(36,363 | ) | (36,363 | ) | ||||||||||||||||
Total shareholders' equity
|
2,107,308 | 2,252,106 | 5,887,291 | (8,139,397 | ) | 2,107,308 | ||||||||||||||
Total liabilities and
|
||||||||||||||||||||
shareholders' equity
|
$ | 2,652,638 | $ | 6,781,726 | $ | 15,128,144 | $ | (12,604,181 | ) | $ | 11,958,327 |
AmeriCredit
|
Non-
|
|||||||||||||||||||
Corp.
|
Guarantors
|
Guarantors
|
Eliminations
|
Consolidated
|
||||||||||||||||
Revenue
|
||||||||||||||||||||
Finance charge income
|
$ | 107,750 | $ | 1,323,569 | $ | 1,431,319 | ||||||||||||||
Other income
|
$ | 29,634 | 444,840 | 822,260 | $ | (1,205,519 | ) | 91,215 | ||||||||||||
Gain on retirement of debt
|
283 | 283 | ||||||||||||||||||
Equity in income of affiliates
|
243,078 | 368,597 | (611,675 | ) | ||||||||||||||||
272,995 | 921,187 | 2,145,829 | (1,817,194 | ) | 1,522,817 | |||||||||||||||
Costs and expenses
|
||||||||||||||||||||
Operating expenses
|
17,771 | 58,849 | 212,171 | 288,791 | ||||||||||||||||
Leased vehicles expenses
|
1,684 | 32,955 | 34,639 | |||||||||||||||||
Provision for loan losses
|
174,646 | 213,412 | 388,058 | |||||||||||||||||
Interest expense
|
45,950 | 507,082 | 1,109,709 | (1,205,519 | ) | 457,222 | ||||||||||||||
Restructuring charges
|
668 | 668 | ||||||||||||||||||
63,721 | 742,929 | 1,568,247 | (1,205,519 | ) | 1,169,378 | |||||||||||||||
Income before income taxes
|
209,274 | 178,258 | 577,582 | (611,675 | ) | 353,439 | ||||||||||||||
Income tax (benefit) provision
|
(11,272 | ) | (64,820 | ) | 208,985 | 132,893 | ||||||||||||||
Net income
|
$ | 220,546 | $ | 243,078 | $ | 368,597 | $ | (611,675 | ) | $ | 220,546 |
AmeriCredit
|
Non-
|
|||||||||||||||||||
Corp.
|
Guarantors
|
Guarantors
|
Eliminations
|
Consolidated
|
||||||||||||||||
Revenue
|
||||||||||||||||||||
Finance charge income
|
$ | 74,562 | $ | 1,828,122 | $ | 1,902,684 | ||||||||||||||
Other income
|
$ | 38,193 | 892,546 | 1,762,638 | $ | (2,576,889 | ) | 116,488 | ||||||||||||
Gain on retirement of debt
|
48,152 | 48,152 | ||||||||||||||||||
Equity in income of affiliates
|
20,535 | 143,940 | (164,475 | ) | ||||||||||||||||
106,880 | 1,111,048 | 3,590,760 | (2,741,364 | ) | 2,067,324 | |||||||||||||||
Costs and expenses
|
||||||||||||||||||||
Operating expenses
|
32,701 | 29,914 | 246,188 | 308,803 | ||||||||||||||||
Leased vehicles expenses
|
4,955 | 42,925 | 47,880 | |||||||||||||||||
Provision for loan losses
|
105,919 | 866,462 | 972,381 | |||||||||||||||||
Interest expense
|
100,228 | 992,563 | 2,210,658 | (2,576,889 | ) | 726,560 | ||||||||||||||
Restructuring charges
|
11,847 | 11,847 | ||||||||||||||||||
132,929 | 1,145,198 | 3,366,233 | (2,576,889 | ) | 2,067,471 | |||||||||||||||
(Loss) income before income taxes
|
(26,049 | ) | (34,150 | ) | 224,527 | (164,475 | ) | (147 | ) | |||||||||||
Income tax (benefit) provision
|
(15,160 | ) | (54,685 | ) | 80,587 | 10,742 | ||||||||||||||
Net (loss) income
|
$ | (10,889 | ) | $ | 20,535 | $ | 143,940 | $ | (164,475 | ) | $ | (10,889 | ) |
AmeriCredit
|
Non-
|
|||||||||||||||||||
Corp.
|
Guarantors
|
Guarantors
|
Eliminations
|
Consolidated
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||
Net income
|
$ | 220,546 | $ | 243,078 | $ | 368,597 | $ | (611,675 | ) | $ | 220,546 | |||||||||
Adjustments to reconcile net income
|
||||||||||||||||||||
to net cash provided by operating activities:
|
||||||||||||||||||||
Depreciation and amortization
|
1,688 | 9,167 | 68,189 | 79,044 | ||||||||||||||||
Provision for loan losses
|
174,646 | 213,412 | 388,058 | |||||||||||||||||
Deferred income taxes
|
81,395 | 136,135 | (242,097 | ) | (24,567 | ) | ||||||||||||||
Stock based compensation expense
|
15,115 | 15,115 | ||||||||||||||||||
Amortization of warrant costs
|
1,968 | 1,968 | ||||||||||||||||||
Non-cash interest charges on convertible debt
|
21,554 | 21,554 | ||||||||||||||||||
Accretion and amortization of loan fees
|
51 | 4,740 | 4,791 | |||||||||||||||||
Gain on retirement of debt
|
(283 | ) | (283 | ) | ||||||||||||||||
Other
|
(3,242 | ) | (12,712 | ) | (15,954 | ) | ||||||||||||||
Equity in income of affiliates
|
(243,078 | ) | (368,597 | ) | 611,675 | |||||||||||||||
Changes in assets and liabilities, net of
|
||||||||||||||||||||
assets and liabilities acquired:
|
||||||||||||||||||||
Income tax receivable
|
162,036 | 35,366 | 197,402 | |||||||||||||||||
Other assets
|
7,941 | (8,697 | ) | 6,012 | 5,256 | |||||||||||||||
Accrued taxes and expenses
|
70,942 | (27,848 | ) | (7,315 | ) | 35,779 | ||||||||||||||
Net cash provided by operating activities
|
339,824 | 190,059 | 398,826 | 928,709 | ||||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Purchases of receivables
|
(2,090,602 | ) | (1,606,146 | ) | 1,606,146 | (2,090,602 | ) | |||||||||||||
Principal collections and recoveries
|
||||||||||||||||||||
on receivables
|
100,273 | 3,506,407 | 3,606,680 | |||||||||||||||||
Net proceeds from sale of receivables
|
1,606,146 | (1,606,146 | ) | |||||||||||||||||
Purchases of property and equipment
|
(1,581 | ) | (1,581 | ) | ||||||||||||||||
Change in restricted cash -
|
||||||||||||||||||||
securitization notes payable
|
(78,549 | ) | (78,549 | ) | ||||||||||||||||
Change in restricted cash -
|
||||||||||||||||||||
credit facilities
|
52,354 | 52,354 | ||||||||||||||||||
Change in other assets
|
17,841 | 26,034 | 43,875 | |||||||||||||||||
Proceeds from money market fund
|
10,047 | 10,047 | ||||||||||||||||||
Net change in investment in affiliates
|
(9,308 | ) | 2,180,625 | (216,588 | ) | (1,954,729 | ) | |||||||||||||
Net cash (used) provided by investing activities
|
(9,308 | ) | 1,822,749 | 1,683,512 | (1,954,729 | ) | 1,542,224 | |||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Net change in credit facilities
|
(1,031,187 | ) | (1,031,187 | ) | ||||||||||||||||
Issuance of securitization notes payable
|
2,352,493 | 2,352,493 | ||||||||||||||||||
Payments on securitization notes payable
|
(3,674,062 | ) | (3,674,062 | ) | ||||||||||||||||
Debt issuance costs
|
1,810 | (26,564 | ) | (24,754 | ) | |||||||||||||||
Net proceeds from issuance of common stock
|
15,635 | (61,900 | ) | (1,905,350 | ) | 1,967,250 | 15,635 | |||||||||||||
Retirement of debt
|
(20,425 | ) | (20,425 | ) | ||||||||||||||||
Other net changes
|
645 | 645 | ||||||||||||||||||
Net change in due (to) from affiliates
|
(336,411 | ) | (1,861,166 | ) | 2,202,743 | (5,166 | ) | |||||||||||||
Net cash used by financing activities
|
(338,746 | ) | (1,923,066 | ) | (2,081,927 | ) | 1,962,084 | (2,381,655 | ) | |||||||||||
Net (decrease) increase in cash and
|
||||||||||||||||||||
cash equivalents
|
(8,230 | ) | 89,742 | 411 | 7,355 | 89,278 | ||||||||||||||
Effect of Canadian exchange rate
|
||||||||||||||||||||
changes on cash and cash equivalents
|
8,230 | (1,167 | ) | (7,355 | ) | (292 | ) | |||||||||||||
Cash and cash equivalents atbeginning of year
|
186,564 | 6,723 | 193,287 | |||||||||||||||||
Cash and cash equivalents at end of year
|
$ | $ | 275,139 | $ | 7,134 | $ | $ | 282,273 |
AmeriCredit
|
Non-
|
|||||||||||||||||||
Corp.
|
Guarantors
|
Guarantors
|
Eliminations
|
Consolidated
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||
Net (loss) income
|
$ | (10,889 | ) | $ | 20,535 | $ | 143,940 | $ | (164,475 | ) | $ | (10,889 | ) | |||||||
Adjustments to reconcile net (loss) income
|
||||||||||||||||||||
to net cash (used) provided by operating activities:
|
||||||||||||||||||||
Depreciation and amortization
|
2,634 | 33,878 | 72,496 | 109,008 | ||||||||||||||||
Provision for loan losses
|
105,919 | 866,462 | 972,381 | |||||||||||||||||
Deferred income taxes
|
(100,156 | ) | 31,977 | 294,962 | 226,783 | |||||||||||||||
Stock based compensation expense
|
14,264 | 14,264 | ||||||||||||||||||
Amortization of warrant costs
|
45,101 | 45,101 | ||||||||||||||||||
Non-cash interest charges on convertible debt
|
22,506 | 22,506 | ||||||||||||||||||
Accretion and amortization of loan fees
|
903 | 18,191 | 19,094 | |||||||||||||||||
Gain on retirement of debt
|
(48,907 | ) | (48,907 | ) | ||||||||||||||||
Other
|
(16,603 | ) | 19,376 | 2,773 | ||||||||||||||||
Equity in income of affiliates
|
(20,535 | ) | (143,940 | ) | 164,475 | |||||||||||||||
Changes in assets and liabilities, net of
|
||||||||||||||||||||
assets and liabilities acquired:
|
||||||||||||||||||||
Income tax receivable
|
(173,844 | ) | (838 | ) | (174,682 | ) | ||||||||||||||
Other assets
|
(1,901 | ) | 12,169 | (16,972 | ) | (6,704 | ) | |||||||||||||
Accrued taxes and expenses
|
(23,386 | ) | (9,700 | ) | (19,027 | ) | (52,113 | ) | ||||||||||||
Net cash (used) provided byoperating activities
|
(295,113 | ) | 34,300 | 1,379,428 | 1,118,615 | |||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Purchases of receivables
|
(1,280,291 | ) | (535,526 | ) | 535,526 | (1,280,291 | ) | |||||||||||||
Principal collections and recoveries
|
||||||||||||||||||||
on receivables
|
217,414 | 4,040,223 | 4,257,637 | |||||||||||||||||
Net proceeds from sale of receivables
|
535,526 | (535,526 | ) | |||||||||||||||||
Purchases of property and equipment
|
(1,003 | ) | (1,003 | ) | ||||||||||||||||
Change in restricted cash -
|
||||||||||||||||||||
securitization notes payable
|
131,064 | 131,064 | ||||||||||||||||||
Change in restricted cash -
|
||||||||||||||||||||
credit facilities
|
63,180 | 63,180 | ||||||||||||||||||
Change in other assets
|
103,179 | (90,219 | ) | 12,960 | ||||||||||||||||
Proceeds from money market fund
|
104,319 | 104,319 | ||||||||||||||||||
Investment in money market fund
|
(115,821 | ) | (115,821 | ) | ||||||||||||||||
Net change in investment in affiliates
|
(6,317 | ) | 480,377 | (36,469 | ) | (437,591 | ) | |||||||||||||
Net cash (used) provided by investing activities
|
(6,317 | ) | 43,700 | 3,572,253 | (437,591 | ) | 3,172,045 | |||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Net change in credit facilities
|
(1,278,117 | ) | (1,278,117 | ) | ||||||||||||||||
Issuance of securitization notes payable
|
1,000,000 | 1,000,000 | ||||||||||||||||||
Payments on securitization notes payable
|
(3,987,424 | ) | (3,987,424 | ) | ||||||||||||||||
Debt issuance costs
|
(56 | ) | (2,163 | ) | (30,390 | ) | (32,609 | ) | ||||||||||||
Net proceeds from issuance of common stock
|
3,741 | 121,593 | (535,315 | ) | 413,722 | 3,741 | ||||||||||||||
Retirement of convertible debt
|
(238,617 | ) | (238,617 | ) | ||||||||||||||||
Other net changes
|
(603 | ) | (603 | ) | ||||||||||||||||
Net change in due (to) from affiliates
|
536,214 | (371,011 | ) | (185,918 | ) | 20,715 | ||||||||||||||
Net cash provided (used) by financing activities
|
300,679 | (251,581 | ) | (5,017,164 | ) | 434,437 | (4,533,629 | ) | ||||||||||||
Net decrease in cash andcash equivalents
|
(751 | ) | (173,581 | ) | (65,483 | ) | (3,154 | ) | (242,969 | ) | ||||||||||
Effect of Canadian exchange rate
|
||||||||||||||||||||
changes on cash and cash equivalents
|
751 | (1,207 | ) | 65 | 3,154 | 2,763 | ||||||||||||||
Cash and cash equivalents at beginning of year
|
361,352 | 72,141 | 433,493 | |||||||||||||||||
Cash and cash equivalents at end of year
|
$ | $ | 186,564 | $ | 6,723 | $ | $ | 193,287 |
|
November 30,
|
|||||||
|
2011
|
|
2010
|
|||||
ASSETS
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
2,393,797
|
|
|
$
|
2,188,998
|
|
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations
|
|
3,344,960
|
|
|
1,636,755
|
|
||
Financial instruments owned, at fair value, including securities pledged of $12,452,970 and $12,338,728 in 2011 and 2010, respectively:
|
|
|
||||||
Corporate equity securities
|
|
1,235,079
|
|
|
1,565,793
|
|
||
Corporate debt securities
|
|
2,868,304
|
|
|
3,630,616
|
|
||
Government, federal agency and other sovereign obligations
|
|
7,471,563
|
|
|
5,191,973
|
|
||
Mortgage- and asset-backed securities
|
|
3,923,303
|
|
|
4,921,565
|
|
||
Loans and other receivables
|
|
376,146
|
|
|
434,573
|
|
||
Derivatives
|
|
525,893
|
|
|
119,268
|
|
||
Investments, at fair value
|
|
105,585
|
|
|
77,784
|
|
||
Physical commodities
|
|
172,668
|
|
|
—
|
|
||
|
|
|||||||
Total financial instruments owned, at fair value
|
|
16,678,541
|
|
|
15,941,572
|
|
||
Investments in managed funds
|
|
70,740
|
|
|
131,585
|
|
||
Loans to and investments in related parties
|
|
594,538
|
|
|
220,323
|
|
||
Securities borrowed
|
|
5,169,689
|
|
|
8,152,678
|
|
||
Securities purchased under agreements to resell
|
|
2,893,043
|
|
|
3,252,322
|
|
||
Securities received as collateral
|
|
21,862
|
|
|
48,616
|
|
||
Receivables:
|
|
|
||||||
Brokers, dealers and clearing organizations
|
|
1,235,393
|
|
|
2,550,234
|
|
||
Customers
|
|
1,116,982
|
|
|
1,328,365
|
|
||
Fees, interest and other
|
|
163,092
|
|
|
165,603
|
|
||
Premises and equipment
|
|
175,139
|
|
|
142,729
|
|
||
Goodwill
|
|
365,574
|
|
|
364,964
|
|
||
Other assets
|
|
748,072
|
|
|
601,799
|
|
||
|
|
|||||||
Total assets
|
|
$
|
34,971,422
|
|
|
$
|
36,726,543
|
|
|
|
|
November 30,
|
|||||||
|
2011
|
2010
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|||||||
Short-term borrowing
|
|
$
|
52,721
|
|
$
|
—
|
|
|
Financial instruments sold, not yet purchased, at fair value:
|
|
|||||||
Corporate equity securities
|
|
1,330,096
|
|
1,638,372
|
|
|||
Corporate debt securities
|
|
1,614,493
|
|
2,375,925
|
|
|||
Government, federal agency and other sovereign obligations
|
|
3,209,713
|
|
4,735,288
|
|
|||
Mortgage- and asset-backed securities
|
|
50,517
|
|
129,384
|
|
|||
Loans
|
|
151,117
|
|
171,278
|
|
|||
Derivatives
|
|
249,037
|
|
59,552
|
|
|||
|
||||||||
Total financial instruments sold, not yet purchased, at fair value
|
|
6,604,973
|
|
9,109,799
|
|
|||
Securities loaned
|
|
1,706,308
|
|
3,108,977
|
|
|||
Securities sold under agreements to repurchase
|
|
9,620,663
|
|
10,684,056
|
|
|||
Obligation to return securities received as collateral
|
|
21,862
|
|
48,616
|
|
|||
Payables:
|
|
|||||||
Brokers, dealers and clearing organizations
|
|
2,816,877
|
|
1,885,357
|
|
|||
Customers
|
|
4,763,364
|
|
3,716,357
|
|
|||
Accrued expenses and other liabilities
|
|
803,219
|
|
1,142,850
|
|
|||
Long-term debt
|
|
4,608,926
|
|
3,778,681
|
|
|||
Mandatorily redeemable convertible preferred stock
|
|
125,000
|
|
125,000
|
|
|||
Mandatorily redeemable preferred interest of consolidated subsidiaries
|
|
310,534
|
|
315,885
|
|
|||
|
||||||||
Total liabilities
|
|
31,434,447
|
|
33,915,578
|
|
|||
|
||||||||
STOCKHOLDERS’ EQUITY
|
|
|||||||
Common stock, $.0001 par value. Authorized 500,000,000 shares; issued 197,197,848 shares in 2011 and 200,301,656 shares in 2010
|
|
20
|
|
20
|
|
|||
Additional paid-in capital
|
|
2,207,410
|
|
2,218,123
|
|
|||
Retained earnings
|
|
1,067,858
|
|
850,654
|
|
|||
Less:
|
|
|||||||
Treasury stock, at cost, 37,842 shares in 2011 and 28,607,510 shares in 2010
|
|
(486
|
)
|
(539,530
|
)
|
|||
Accumulated other comprehensive loss:
|
|
|||||||
Currency translation adjustments
|
|
(39,520
|
)
|
(42,859
|
)
|
|||
Additional minimum pension liability
|
|
(10,970
|
)
|
(8,419
|
)
|
|||
|
||||||||
Total accumulated other comprehensive loss
|
|
(50,490
|
)
|
(51,278
|
)
|
|||
|
||||||||
Total common stockholders’ equity
|
|
3,224,312
|
|
2,477,989
|
|
|||
Noncontrolling interests
|
|
312,663
|
|
332,976
|
|
|||
|
||||||||
Total stockholders’ equity
|
|
3,536,975
|
|
2,810,965
|
|
|||
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
34,971,422
|
|
$
|
36,726,543
|
|
|
|
|
November 30,
|
|||||||
|
2011
|
|
2010
|
|||||
Assets
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
345,959
|
|
|
$
|
202,565
|
|
Financial instruments owned, at fair value
|
|
|
||||||
Corporate equity securities
|
|
61,670
|
|
|
120,606
|
|
||
Corporate debt securities
|
|
326,549
|
|
|
462,462
|
|
||
Mortgage- and asset-backed securities
|
|
41,004
|
|
|
43,355
|
|
||
Loans and other receivables
|
|
281,416
|
|
|
362,465
|
|
||
Derivatives
|
|
569
|
|
|
7,579
|
|
||
Investments, at fair value
|
|
1,570
|
|
|
15,612
|
|
||
|
|
|||||||
Total financial instruments owned, at fair value
|
|
712,778
|
|
|
1,012,079
|
|
||
Receivables:
|
|
|
||||||
Brokers, dealers and clearing organizations
|
|
150,592
|
|
|
195,485
|
|
||
Fees, interest and other
|
|
7,396
|
|
|
127
|
|
||
Other assets
|
|
385
|
|
|
370
|
|
||
|
|
|||||||
Total assets
|
|
1,217,110
|
|
|
1,410,626
|
|
||
|
|
|||||||
Liabilities
|
|
|
||||||
Financial instruments sold, not yet purchased, at fair value:
|
|
|
||||||
Corporate equity securities
|
|
7,122
|
|
|
2,708
|
|
||
Corporate debt securities
|
|
200,223
|
|
|
443,100
|
|
||
Loans
|
|
117,958
|
|
|
150,100
|
|
||
Derivatives
|
|
935
|
|
|
136
|
|
||
|
|
|||||||
Total financial instruments sold, not yet purchased, at fair value
|
|
326,238
|
|
|
596,044
|
|
||
Payables:
|
|
|
||||||
Brokers, dealers and clearing organizations
|
|
105,165
|
|
|
157,134
|
|
||
Accrued expenses and other liabilities
|
|
9,740
|
|
|
94,402
|
|
||
Mandatorily redeemable preferred interest of consolidated subsidiaries
|
|
310,534
|
|
|
315,885
|
|
||
|
|
|||||||
Total liabilities
|
|
$
|
751,677
|
|
|
$
|
1,163,465
|
|
|
|
|
Twelve Months
Ended
November 30,
2011
|
|
Eleven Months
Ended
November 30,
2010
|
|
Twelve Months
Ended
December 31,
2009
|
|||||||
Revenues:
|
|
|
|
|||||||||
Commissions
|
|
$
|
534,726
|
|
|
$
|
466,246
|
|
|
$
|
512,293
|
|
Principal transactions
|
|
428,035
|
|
|
509,070
|
|
|
838,396
|
|
|||
Investment banking
|
|
1,122,528
|
|
|
890,334
|
|
|
474,315
|
|
|||
Asset management fees and investment income from managed funds
|
|
44,125
|
|
|
16,785
|
|
|
35,887
|
|
|||
Interest
|
|
1,248,132
|
|
|
852,494
|
|
|
732,250
|
|
|||
Other
|
|
152,092
|
|
|
62,417
|
|
|
38,918
|
|
|||
|
|
|
||||||||||
Total revenues
|
|
3,529,638
|
|
|
2,797,346
|
|
|
2,632,059
|
|
|||
Interest expense
|
|
980,825
|
|
|
605,096
|
|
|
468,798
|
|
|||
|
|
|
||||||||||
Net revenues
|
|
2,548,813
|
|
|
2,192,250
|
|
|
2,163,261
|
|
|||
Interest on mandatorily redeemable preferred interest of consolidated subsidiaries
|
|
3,622
|
|
|
14,916
|
|
|
37,248
|
|
|||
|
|
|
||||||||||
Net revenues, less mandatorily redeemable preferred interest
|
|
2,545,191
|
|
|
2,177,334
|
|
|
2,126,013
|
|
|||
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|||||||||
Compensation and benefits
|
|
1,482,604
|
|
|
1,282,644
|
|
|
1,195,971
|
|
|||
Floor brokerage and clearing fees
|
|
126,313
|
|
|
110,835
|
|
|
80,969
|
|
|||
Technology and communications
|
|
215,940
|
|
|
160,987
|
|
|
141,233
|
|
|||
Occupancy and equipment rental
|
|
84,951
|
|
|
68,085
|
|
|
72,824
|
|
|||
Business development
|
|
93,645
|
|
|
62,015
|
|
|
37,614
|
|
|||
Professional services
|
|
66,305
|
|
|
49,080
|
|
|
41,125
|
|
|||
Other
|
|
56,099
|
|
|
47,017
|
|
|
48,530
|
|
|||
|
|
|
||||||||||
Total non-interest expenses
|
|
2,125,857
|
|
|
1,780,663
|
|
|
1,618,266
|
|
|||
|
|
|
||||||||||
Earnings before income taxes
|
|
419,334
|
|
|
396,671
|
|
|
507,747
|
|
|||
Income tax expense
|
|
132,966
|
|
|
156,404
|
|
|
195,928
|
|
|||
|
|
|
||||||||||
Net earnings
|
|
286,368
|
|
|
240,267
|
|
|
311,819
|
|
|||
Net earnings to noncontrolling interests
|
|
1,750
|
|
|
16,601
|
|
|
36,537
|
|
|||
|
|
|
||||||||||
Net earnings to common shareholders
|
|
$
|
284,618
|
|
|
$
|
223,666
|
|
|
$
|
275,282
|
|
|
|
|
||||||||||
Earnings per common share:
|
|
|
|
|||||||||
Basic
|
|
$
|
1.28
|
|
|
$
|
1.10
|
|
|
$
|
1.36
|
|
Diluted
|
|
$
|
1.28
|
|
|
$
|
1.09
|
|
|
$
|
1.35
|
|
Weighted average common shares:
|
|
|
|
|||||||||
Basic
|
|
211,056
|
|
|
196,393
|
|
|
200,446
|
|
|||
Diluted
|
|
215,171
|
|
|
200,511
|
|
|
204,572
|
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Common stock, par value $0.0001 per share
|
|
|||||||||||
Balance, beginning of period
|
|
$
|
20
|
|
$
|
19
|
|
$
|
17
|
|
||
Issued
|
|
2
|
|
1
|
|
2
|
|
|||||
Retired
|
|
(2
|
)
|
—
|
|
—
|
|
|||||
|
||||||||||||
Balance, end of period
|
|
20
|
|
20
|
|
19
|
|
|||||
|
||||||||||||
Additional paid-in capital
|
|
|||||||||||
Balance, beginning of period
|
|
2,218,123
|
|
2,036,087
|
|
1,870,120
|
|
|||||
Benefit plan share activity(1)
|
|
31,176
|
|
19,230
|
|
16,499
|
|
|||||
Share-based expense, net of forfeitures and clawbacks
|
|
134,076
|
|
149,799
|
|
125,127
|
|
|||||
Proceeds from exercise of stock options
|
|
95
|
|
108
|
|
69
|
|
|||||
Acquisitions and contingent consideration
|
|
419
|
|
419
|
|
(2,710
|
)
|
|||||
Tax benefit (deficiency) for issuance of share-based awards
|
|
32,200
|
|
2,965
|
|
(14,606
|
)
|
|||||
Equity component of convertible debt, net of tax
|
|
(217
|
)
|
—
|
|
41,588
|
|
|||||
Dividend equivalents on share-based plans
|
|
8,883
|
|
9,515
|
|
—
|
|
|||||
Issuance of treasury stock
|
|
97,770
|
|
—
|
|
—
|
|
|||||
Retirement of treasury stock
|
|
(315,115
|
)
|
—
|
|
—
|
|
|||||
|
||||||||||||
Balance, end of period
|
|
2,207,410
|
|
2,218,123
|
|
2,036,087
|
|
|||||
|
||||||||||||
Retained earnings
|
|
|||||||||||
Balance, beginning of period
|
|
850,654
|
|
688,039
|
|
412,757
|
|
|||||
Net earnings to common shareholders
|
|
284,618
|
|
223,666
|
|
275,282
|
|
|||||
Dividends
|
|
(67,414
|
)
|
(61,051
|
)
|
—
|
|
|||||
|
||||||||||||
Balance, end of period
|
|
1,067,858
|
|
850,654
|
|
688,039
|
|
|||||
|
||||||||||||
Treasury stock, at cost
|
|
|||||||||||
Balance, beginning of period
|
|
(539,530
|
)
|
(384,379
|
)
|
(115,190
|
)
|
|||||
Purchases
|
|
(152,827
|
)
|
(140,071
|
)
|
(263,794
|
)
|
|||||
Returns / forfeitures
|
|
(20,368
|
)
|
(15,080
|
)
|
(8,105
|
)
|
|||||
Issued
|
|
397,122
|
|
—
|
|
2,710
|
|
|||||
Retirement of treasury stock
|
|
315,117
|
|
—
|
|
—
|
|
|||||
|
||||||||||||
Balance, end of period
|
|
(486
|
)
|
(539,530
|
)
|
(384,379
|
)
|
|||||
|
||||||||||||
Accumulated other comprehensive (loss) income
|
|
|||||||||||
Balance, beginning of period
|
|
(51,278
|
)
|
(41,626
|
)
|
(52,121
|
)
|
|||||
Currency adjustment
|
|
3,339
|
|
(8,490
|
)
|
9,306
|
|
|||||
Pension adjustment, net of tax
|
|
(2,551
|
)
|
(1,162
|
)
|
1,189
|
|
|||||
|
||||||||||||
Balance, end of period
|
|
(50,490
|
)
|
(51,278
|
)
|
(41,626
|
)
|
|||||
|
||||||||||||
Total common stockholders’ equity
|
|
3,224,312
|
|
2,477,989
|
|
2,298,140
|
|
|||||
|
||||||||||||
Noncontrolling interests
|
|
|||||||||||
Balance, beginning of period
|
|
332,976
|
|
321,538
|
|
287,805
|
|
|||||
Net earnings to noncontrolling interests
|
|
1,750
|
|
16,601
|
|
36,537
|
|
|||||
Contributions
|
|
1,713
|
|
12,433
|
|
2,860
|
|
|||||
Distributions
|
|
(22,056
|
)
|
(15,177
|
)
|
(5,664
|
)
|
|||||
Deconsolidation of asset management entity
|
|
(1,720
|
)
|
(5,477
|
)
|
—
|
|
|||||
Adoption of accounting changes to ASC 810
|
|
—
|
|
3,058
|
|
—
|
|
|||||
|
||||||||||||
Balance, end of period
|
|
312,663
|
|
332,976
|
|
321,538
|
|
|||||
|
||||||||||||
Total stockholders’ equity
|
|
3,536,975
|
|
$
|
2,810,965
|
|
$
|
2,619,678
|
|
(1)
|
Includes grants related to the Incentive Plan, Deferred Compensation Plan, and Directors’ Plan.
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Net earnings to common shareholders
|
|
$
|
284,618
|
|
$
|
223,666
|
|
$
|
275,282
|
|
||
|
||||||||||||
Other comprehensive income (loss):
|
|
|||||||||||
Currency translation adjustments
|
|
3,339
|
|
(8,490
|
)
|
9,306
|
|
|||||
Minimum pension liability adjustments, net of tax(1)
|
|
(2,551
|
)
|
(1,162
|
)
|
1,189
|
|
|||||
|
||||||||||||
Total other comprehensive income (loss), net of tax(2)
|
|
788
|
|
(9,652
|
)
|
10,495
|
|
|||||
|
||||||||||||
Comprehensive income
|
|
$
|
285,406
|
|
$
|
214,014
|
|
$
|
285,777
|
|
||
|
(1)
|
Includes income tax (benefit) expense of $(1.8) million, $(0.8) million and $0.8 million for the twelve months ended November 30, 2011, eleven months ended November 30, 2010 and twelve months ended December 31, 2009, respectively.
|
(2)
|
Total other comprehensive income (loss), net of tax, is attributable to common shareholders. No other comprehensive income (loss) is attributable to noncontrolling interests.
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Cash flows from operating activities:
|
|
|||||||||||
Net earnings
|
|
$
|
286,368
|
|
$
|
240,267
|
|
$
|
311,819
|
|
||
|
||||||||||||
Adjustments to reconcile net earnings to net cash used in operating activities:
|
|
|||||||||||
Depreciation and amortization
|
|
68,522
|
|
42,087
|
|
40,662
|
|
|||||
Bargain purchase gain
|
|
(52,509
|
)
|
—
|
|
—
|
|
|||||
Gain on repurchase of long-term debt
|
|
(21,107
|
)
|
—
|
|
(7,673
|
)
|
|||||
Fees related to assigned management agreements
|
|
(3,724
|
)
|
(3,590
|
)
|
—
|
|
|||||
Interest on mandatorily redeemable preferred interests of consolidated subsidiaries
|
|
3,622
|
|
14,916
|
|
37,248
|
|
|||||
Accruals related to various benefit plans and stock issuances, net of estimated forfeitures
|
|
144,886
|
|
153,950
|
|
133,523
|
|
|||||
Deferred income taxes
|
|
30,177
|
|
4,389
|
|
10,147
|
|
|||||
Decrease (increase) in cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations
|
|
1,417,107
|
|
(546,793
|
)
|
61,620
|
|
|||||
Decrease (increase) in receivables:
|
|
|||||||||||
Brokers, dealers and clearing organizations
|
|
1,652,426
|
|
(1,062,106
|
)
|
(752,108
|
)
|
|||||
Customers
|
|
385,686
|
|
(321,008
|
)
|
(474,181
|
)
|
|||||
Fees, interest and other
|
|
3,856
|
|
(57,482
|
)
|
(21,566
|
)
|
|||||
Decrease in securities borrowed
|
|
3,014,442
|
|
52,634
|
|
764,577
|
|
|||||
Decrease (increase) in financial instruments owned
|
|
299,558
|
|
(6,434,698
|
)
|
(4,781,858
|
)
|
|||||
Increase in loans to and investments in related parties
|
|
(375,031
|
)
|
(27,443
|
)
|
(53,616
|
)
|
|||||
Decrease (increase) in investments in managed funds
|
|
60,855
|
|
(9,833
|
)
|
(15,529
|
)
|
|||||
Decrease (increase) in securities purchased under agreements to resell
|
|
372,470
|
|
266,132
|
|
(2,268,338
|
)
|
|||||
(Increase) decrease in other assets
|
|
(122,568
|
)
|
(123,933
|
)
|
22,516
|
|
|||||
Increase (decrease) in payables:
|
|
|||||||||||
Brokers, dealers and clearing organizations
|
|
880,998
|
|
1,001,155
|
|
506,073
|
|
|||||
Customers
|
|
(2,324,839
|
)
|
467,164
|
|
1,476,096
|
|
|||||
(Decrease) increase in securities loaned
|
|
(1,428,852
|
)
|
(455,750
|
)
|
333,261
|
|
|||||
(Decrease) increase in financial instruments sold, not yet purchased
|
|
(2,892,462
|
)
|
3,685,421
|
|
2,664,934
|
|
|||||
(Decrease) increase in securities sold under agreements to repurchase
|
|
(1,083,191
|
)
|
2,444,802
|
|
1,511,871
|
|
|||||
(Decrease) increase in accrued expenses and other liabilities
|
|
(599,677
|
)
|
218,255
|
|
373,602
|
|
|||||
|
||||||||||||
Net cash used in operating activities
|
|
(282,987
|
)
|
(451,464
|
)
|
(126,920
|
)
|
|||||
|
||||||||||||
Cash flows from investing activities:
|
|
|||||||||||
Net payments on premises and equipment
|
|
(77,330
|
)
|
(38,426
|
)
|
(37,483
|
)
|
|||||
Deconsolidation of asset management entity
|
|
—
|
|
(407
|
)
|
—
|
|
|||||
Cash paid for acquisition, net of cash acquired
|
|
(320,697
|
)
|
—
|
|
(38,760
|
)
|
|||||
Purchase of mortgage servicing rights
|
|
—
|
|
—
|
|
(8,628
|
)
|
|||||
Cash received from contingent consideration
|
|
3,733
|
|
2,930
|
|
—
|
|
|||||
Cash paid for contingent consideration
|
|
(754
|
)
|
(8,332
|
)
|
(28,653
|
)
|
|||||
|
||||||||||||
Net cash used in investing activities
|
|
(395,048
|
)
|
(44,235
|
)
|
(113,524
|
)
|
|||||
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Cash flows from financing activities:
|
|
|||||||||||
Excess tax benefits from the issuance of share-based awards
|
|
$
|
34,552
|
|
$
|
2,397
|
|
$
|
12,408
|
|
||
Gross proceeds from short-term borrowings
|
|
3,032,010
|
|
2,446,000
|
|
5,781,738
|
|
|||||
Gross payments on short-term borrowings
|
|
(3,283,231
|
)
|
(2,446,000
|
)
|
(5,781,738
|
)
|
|||||
Gross proceeds from secured credit facility
|
|
260,000
|
|
—
|
|
—
|
|
|||||
Gross payments on secured credit facility
|
|
(160,000
|
)
|
—
|
|
—
|
|
|||||
Payments on repurchase of long-term debt
|
|
(49,692
|
)
|
—
|
|
(12,796
|
)
|
|||||
Payments on mandatorily redeemable preferred interest of consolidated subsidiaries
|
|
(8,973
|
)
|
(17,078
|
)
|
(124
|
)
|
|||||
Payments on repurchase of common stock
|
|
(152,827
|
)
|
(140,071
|
)
|
(263,794
|
)
|
|||||
Payments on dividends
|
|
(58,531
|
)
|
(51,536
|
)
|
—
|
|
|||||
Proceeds from exercise of stock options, not including tax benefits
|
|
95
|
|
108
|
|
69
|
|
|||||
Net proceeds from (payments on):
|
|
|||||||||||
Issuance of common shares
|
|
494,892
|
|
—
|
|
—
|
|
|||||
Issuance of senior notes, net of issuance costs
|
|
794,587
|
|
1,041,353
|
|
1,053,092
|
|
|||||
Noncontrolling interest
|
|
(20,343
|
)
|
(2,744
|
)
|
(2,804
|
)
|
|||||
|
||||||||||||
Net cash provided by financing activities
|
|
882,539
|
|
832,429
|
|
786,051
|
|
|||||
|
||||||||||||
Effect of foreign currency translation on cash and cash equivalents
|
|
295
|
|
(899
|
)
|
13,231
|
|
|||||
|
||||||||||||
Net increase in cash and cash equivalents
|
|
204,799
|
|
335,831
|
|
558,838
|
|
|||||
Cash and cash equivalents at beginning of period
|
|
2,188,998
|
|
1,853,167
|
|
1,294,329
|
|
|||||
|
||||||||||||
Cash and cash equivalents at end of period
|
|
$
|
2,393,797
|
|
$
|
2,188,998
|
|
$
|
1,853,167
|
|
||
|
||||||||||||
Supplemental disclosures of cash flow information:
|
|
|||||||||||
Cash paid (received) during the year for:
|
|
|||||||||||
Interest
|
|
$
|
943,031
|
|
$
|
579,915
|
|
$
|
434,163
|
|
||
Income taxes, net
|
|
153,416
|
|
182,633
|
|
(27,106
|
)
|
|||||
Acquisitions:
|
|
|||||||||||
Fair value of assets acquired, including goodwill
|
|
$
|
4,703,560
|
|
$
|
53,104
|
|
|||||
Liabilities assumed
|
|
(4,229,011
|
)
|
(14,344
|
)
|
|||||||
Bargain purchase gain
|
|
(52,509
|
)
|
—
|
|
|||||||
|
||||||||||||
Total purchase price
|
|
422,040
|
|
38,760
|
|
|||||||
Cash acquired
|
|
(101,343
|
)
|
—
|
|
|||||||
|
||||||||||||
Cash paid for acquisition, net of cash acquired
|
|
$
|
320,697
|
|
$
|
38,760
|
|
|||||
|
Assets acquired:
|
|
|||
Cash and cash equivalents
|
|
$
|
101,343
|
|
Cash and securities segregated
|
|
3,130,586
|
|
|
Financial instruments owned, at fair value
|
|
918,598
|
|
|
Securities purchased under agreements to resell
|
|
1,489
|
|
|
Receivables:
|
|
|||
Brokers, dealers and clearing organizations
|
|
313,939
|
|
|
Customers
|
|
173,477
|
|
|
Fees, interest and other
|
|
122
|
|
|
Premises and equipment
|
|
13,611
|
|
|
Indefinite-lived intangible exchange memberships and licences(1)
|
|
11,219
|
|
|
Finite-lived intangible customer relationships(1)(2)
|
|
5,800
|
|
|
Trade names(1)(3)
|
|
1,300
|
|
|
Other assets
|
|
32,076
|
|
|
|
||||
Total assets
|
|
$
|
4,703,560
|
|
|
||||
Liabilities assumed:
|
|
|||
Short-term borrowings
|
|
$
|
301,027
|
|
Financial instruments sold, not yet purchased, at fair value
|
|
267,200
|
|
|
Payables:
|
|
|||
Brokers, dealers and clearing organizations
|
|
43,588
|
|
|
Customers
|
|
3,384,263
|
|
|
Accrued expenses and other liabilities
|
|
232,933
|
|
|
|
||||
Total liabilities
|
|
$
|
4,229,011
|
|
|
||||
Fair value of net assets acquired
|
|
$
|
474,549
|
|
Purchase price:
|
|
|||
Cash
|
|
$
|
422,040
|
|
Total purchase price
|
|
$
|
422,040
|
|
|
||||
Bargain purchase gain
|
|
$
|
52,509
|
|
|
(1)
|
Intangible assets are recorded within Other assets on the Consolidated Statements of Financial Condition.
|
(2)
|
The fair value of the finite-lived customer relationships will be amortized on a straight line basis over a weighted-average useful life of approximately 9.6 years.
|
(3)
|
The fair value of the Bache trade name will be amortized on a straight line basis over a useful life of 1.5 years.
|
(in millions, except per share data)
|
|
Twelve months ended
November 30, 2011
|
|
Eleven months ended
November 30, 2010
|
||||
Total net revenues
|
|
$
|
2,686.2
|
|
|
$
|
2,447.3
|
|
Net earnings to common shareholders
|
|
$
|
303.7
|
|
|
$
|
288.2
|
|
Earnings per common share:
|
|
|
||||||
Basic
|
|
$
|
1.37
|
|
|
$
|
1.41
|
|
Diluted
|
|
$
|
1.36
|
|
|
$
|
1.40
|
|
Weighted average common shares (in thousands):
|
|
|
||||||
Basic
|
|
211,056
|
|
|
196,393
|
|
||
Diluted
|
|
215,171
|
|
|
200,511
|
|
a)
|
the bargain purchase gain of $52.5 million has been included in Net revenues and Net earnings for the eleven months ended November 30, 2010;
|
b)
|
an adjustment to reflect Global Commodities Group’s physical commodities at market value;
|
c)
|
acquisition costs totaling $4.4 million recognized in Professional services has been included in the eleven months ended November 30, 2010;
|
d)
|
additional amortization expense on the acquired intangible assets and internally developed software of $0.8 million and $0.8 million for the twelve months ended November 30, 2011 and $0.9 million and $1.0 million for the eleven months ended November 30, 2010;
|
e)
|
the recording of income tax expense resulting from the pro forma adjustments before tax at an effective rate of 32.1% and 35.0% for the twelve months and eleven months ended November 30, 2011 and 2010.
|
|
November 30,
|
|||||||
|
2011
|
|
2010
|
|||||
Cash and cash equivalents:
|
|
|
||||||
Cash in banks
|
|
$
|
846,990
|
|
|
$
|
325,227
|
|
Money market investments
|
|
1,546,807
|
|
|
1,863,771
|
|
||
|
|
|||||||
Total cash and cash equivalents
|
|
$
|
2,393,797
|
|
|
$
|
2,188,998
|
|
|
|
|||||||
Cash and securities segregated(1)
|
|
$
|
3,344,960
|
|
|
$
|
1,636,755
|
|
|
|
(1)
|
Consists of deposits at exchanges and clearing organizations, as well as deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies as a broker dealer carrying client accounts to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients, and Jefferies Bache, LLC which, as a futures commission merchant, is subject to the segregation requirements pursuant to the Commodity Exchange Act.
|
|
As of November 30, 2011
|
|||||||||||||||||||
|
Level 1(1)
|
|
Level 2(1)
|
|
Level 3
|
Counterparty
and Cash
Collateral
Netting(2)
|
Total
|
|||||||||||||
Assets:
|
|
|
|
|||||||||||||||||
Financial instruments owned:
|
|
|
|
|||||||||||||||||
Corporate equity securities
|
|
$
|
1,088,358
|
|
|
$
|
133,232
|
|
|
$
|
13,489
|
|
$
|
—
|
|
$
|
1,235,079
|
|
||
Corporate debt securities
|
|
1,521
|
|
|
2,818,643
|
|
|
48,140
|
|
—
|
|
2,868,304
|
|
|||||||
Collateralized debt obligations
|
|
—
|
|
|
102,209
|
|
|
47,988
|
|
—
|
|
150,197
|
|
|||||||
U.S. government and federal agency securities
|
|
5,443,721
|
|
|
266,460
|
|
|
—
|
|
—
|
|
5,710,181
|
|
|||||||
Municipal securities
|
|
—
|
|
|
582,497
|
|
|
6,904
|
|
—
|
|
589,401
|
|
|||||||
Sovereign obligations
|
|
737,082
|
|
|
434,759
|
|
|
140
|
|
—
|
|
1,171,981
|
|
|||||||
Residential mortgage-backed securities
|
|
—
|
|
|
2,961,682
|
|
|
149,965
|
|
—
|
|
3,111,647
|
|
|||||||
Commercial mortgage-backed securities
|
|
—
|
|
|
582,974
|
|
|
52,407
|
|
—
|
|
635,381
|
|
|||||||
Other asset-backed securities
|
|
—
|
|
|
22,794
|
|
|
3,284
|
|
—
|
|
26,078
|
|
|||||||
Loans and other receivables
|
|
—
|
|
|
278,855
|
|
|
97,291
|
|
—
|
|
376,146
|
|
|||||||
Derivatives
|
|
632,148
|
|
|
2,344,625
|
|
|
124
|
|
(2,451,004
|
)
|
525,893
|
|
|||||||
Investments at fair value
|
|
—
|
|
|
27,259
|
|
|
78,326
|
|
—
|
|
105,585
|
|
|||||||
Physical commodities
|
|
—
|
|
|
172,668
|
|
|
—
|
|
—
|
|
172,668
|
|
|||||||
|
|
|
||||||||||||||||||
Total financial instruments owned
|
|
$
|
7,902,830
|
|
|
$
|
10,728,657
|
|
|
$
|
498,058
|
|
$
|
(2,451,004
|
)
|
$
|
16,678,541
|
|
||
|
|
|
||||||||||||||||||
Level 3 financial instruments for which the firm does not bear economic exposure(4)
|
|
|
|
$
|
(45,901
|
)
|
||||||||||||||
|
|
|
||||||||||||||||||
Level 3 financial instruments for which the firm bears economic exposure
|
|
|
|
$
|
452,157
|
|
||||||||||||||
|
|
|
||||||||||||||||||
Investments in Managed Funds
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,740
|
|
$
|
—
|
|
$
|
70,740
|
|
||
Cash and securities segregated and on deposit for regulatory purposes(3)
|
|
$
|
115,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
115,000
|
|
||
Securities received as collateral
|
|
$
|
21,862
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
21,862
|
|
||
|
|
|
||||||||||||||||||
Total Level 3 assets for which the firm bears economic exposure
|
|
|
|
$
|
522,897
|
|
||||||||||||||
|
|
|
||||||||||||||||||
Liabilities:
|
|
|
|
|||||||||||||||||
Financial instruments sold, not yet purchased:
|
|
|
|
|||||||||||||||||
Corporate equity securities
|
|
$
|
1,266,096
|
|
|
$
|
64,000
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,330,096
|
|
||
Corporate debt securities
|
|
—
|
|
|
1,614,419
|
|
|
74
|
|
—
|
|
1,614,493
|
|
|||||||
U.S. government and federal agency securities
|
|
2,032,091
|
|
|
9,685
|
|
|
—
|
|
—
|
|
2,041,776
|
|
|||||||
Municipal securities
|
|
—
|
|
|
90
|
|
|
—
|
|
—
|
|
90
|
|
|||||||
Sovereign obligations
|
|
790,568
|
|
|
377,279
|
|
|
—
|
|
—
|
|
1,167,847
|
|
|||||||
Residential mortgage-backed securities
|
|
—
|
|
|
50,517
|
|
|
—
|
|
—
|
|
50,517
|
|
|||||||
Loans
|
|
—
|
|
|
140,960
|
|
|
10,157
|
|
—
|
|
151,117
|
|
|||||||
Derivatives
|
|
535,503
|
|
|
2,289,759
|
|
|
9,409
|
|
(2,585,634
|
)
|
249,037
|
|
|||||||
|
|
|
||||||||||||||||||
Total financial instruments sold, not yet purchased
|
|
$
|
4,624,258
|
|
|
$
|
4,546,709
|
|
|
$
|
19,640
|
|
$
|
(2,585,634
|
)
|
$
|
6,604,973
|
|
||
|
|
|
||||||||||||||||||
Obligation to return securities received as collateral
|
|
$
|
21,862
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
21,862
|
|
(1)
|
There were no significant transfers between Level 1 and Level 2 for the twelve-months ended November 30, 2011.
|
(2)
|
Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.
|
(3)
|
Consists of U.S. government securities segregated for regulatory purposes and measured at fair value.
|
(4)
|
Consists of Level 3 assets attributable to third party or employee noncontrolling interests in certain consolidated entities.
|
As of November 30, 2010
|
||||||||||||||||||||
Level 1(1)
|
Level 2(1)
|
Level 3
|
Counterparty
and Cash
Collateral
Netting(2)
|
Total
|
||||||||||||||||
Assets:
|
||||||||||||||||||||
Financial instruments owned:
|
||||||||||||||||||||
Corporate equity securities
|
$
|
1,453,744
|
|
$
|
89,430
|
|
$
|
22,619
|
|
$
|
—
|
|
$
|
1,565,793
|
|
|||||
Corporate debt securities
|
25
|
|
3,557,183
|
|
73,408
|
|
—
|
|
3,630,616
|
|
||||||||||
Collateralized debt obligations
|
—
|
|
27,863
|
|
31,121
|
|
—
|
|
58,984
|
|
||||||||||
U.S. government and federal agency securities
|
2,322,204
|
|
210,422
|
|
—
|
|
—
|
|
2,532,626
|
|
||||||||||
Municipal securities
|
—
|
|
477,462
|
|
472
|
|
—
|
|
477,934
|
|
||||||||||
Sovereign obligations
|
1,600,762
|
|
580,651
|
|
—
|
|
—
|
|
2,181,413
|
|
||||||||||
Residential mortgage-backed securities
|
—
|
|
3,912,708
|
|
132,359
|
|
—
|
|
4,045,067
|
|
||||||||||
Commercial mortgage-backed securities
|
—
|
|
524,614
|
|
6,004
|
|
—
|
|
530,618
|
|
||||||||||
Other asset-backed securities
|
—
|
|
286,329
|
|
567
|
|
—
|
|
286,896
|
|
||||||||||
Loans and other receivables
|
—
|
|
206,977
|
|
227,596
|
|
—
|
|
434,573
|
|
||||||||||
Derivatives
|
279,811
|
|
176,069
|
|
—
|
|
(336,612
|
)
|
119,268
|
|
||||||||||
Investments at fair value
|
—
|
|
—
|
|
77,784
|
|
—
|
|
77,784
|
|
||||||||||
Total financial instruments owned
|
$
|
5,656,546
|
|
$
|
10,049,708
|
|
$
|
571,930
|
|
$
|
(336,612
|
)
|
$
|
15,941,572
|
|
|||||
Level 3 financial instruments for which the firm does not bear economic exposure(3)
|
$
|
(204,139
|
)
|
|||||||||||||||||
Level 3 financial instruments for which the firm bears economic exposure
|
$
|
367,791
|
|
|||||||||||||||||
Investments in managed funds
|
$
|
—
|
|
$
|
—
|
|
$
|
131,585
|
|
$
|
—
|
|
$
|
131,585
|
|
|||||
Securities received as collateral
|
$
|
48,616
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
48,616
|
|
|||||
Total Level 3 assets for which the firm bears economic exposure
|
$
|
499,376
|
|
|||||||||||||||||
Liabilities:
|
||||||||||||||||||||
Financial instruments sold, not yet purchased:
|
||||||||||||||||||||
Corporate equity securities
|
$
|
1,554,489
|
|
$
|
83,845
|
|
$
|
38
|
|
$
|
—
|
|
$
|
1,638,372
|
|
|||||
Corporate debt securities
|
—
|
|
2,375,925
|
|
—
|
|
—
|
|
2,375,925
|
|
||||||||||
U.S. government and federal agency securities
|
1,688,684
|
|
51,604
|
|
—
|
|
—
|
|
1,740,288
|
|
||||||||||
Municipal securities
|
—
|
|
170
|
|
—
|
|
—
|
|
170
|
|
||||||||||
Sovereign obligations
|
2,180,667
|
|
814,163
|
|
—
|
|
—
|
|
2,994,830
|
|
||||||||||
Residential mortgage-backed securities
|
—
|
|
127,547
|
|
—
|
|
—
|
|
127,547
|
|
||||||||||
Commercial mortgage-backed securities
|
—
|
|
1,837
|
|
—
|
|
—
|
|
1,837
|
|
||||||||||
Loans
|
—
|
|
124,050
|
|
47,228
|
|
—
|
|
171,278
|
|
||||||||||
Derivatives
|
241,860
|
|
240,866
|
|
2,346
|
|
(425,520
|
)
|
59,552
|
|
||||||||||
Total financial instruments sold, not yet purchased
|
$
|
5,665,700
|
|
$
|
3,820,007
|
|
$
|
49,612
|
|
$
|
(425,520
|
)
|
$
|
9,109,799
|
|
|||||
Obligation to return securities received as collateral
|
$
|
48,616
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
48,616
|
|
(1)
|
There were no significant transfers between Level 1 and Level 2 for the eleven-months ended November 30, 2010.
|
(2)
|
Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.
|
(3)
|
Consists of Level 3 assets which are either financed by nonrecourse secured financings or attributable to third party or employee noncontrolling interests in certain consolidated entities.
|
•
|
Exchange Traded Equity Securities: Exchange-traded equity securities are measured based on quoted exchange prices, which are generally obtained from pricing services, and are categorized as Level 1 in the fair value hierarchy.
|
•
|
Non-exchange Traded Equity Securities: Non-exchange traded equity securities are measured primarily using broker quotations, pricing service data from external providers and prices observed for recently executed market transactions and are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange traded equity securities are categorized as Level 3 financial instruments and measured using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for subsequent financing or capital issuance by the company. When using pricing data of comparable companies, judgment must be applied to adjust the pricing data to account for differences between the measured security and the comparable security (e.g., issuer market capitalization, yield, dividend rate, geographical concentration).
|
•
|
Equity warrants: Non-exchange traded equity warrants are generally classified within Level 3 of the fair value hierarchy and are measured using the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date.
|
•
|
Corporate Bonds: Corporate bonds are measured primarily using pricing service data from external providers and broker quotations, where available, prices observed for recently executed market transactions of comparable size, and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers
|
and recovery rate assumptions. Corporate bonds measured using alternative valuation techniques are classified within Level 3 of the fair value hierarchy and comprise a limited portion of our corporate bonds.
|
•
|
High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are classified within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing service data from external providers, where available, and prices observed for recently executed market transactions of comparable size. Where pricing data is less observable, valuations are classified in Level 3 and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer’s subsequent financings or recapitalizations, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers.
|
•
|
Auction Rate Securities: Auction rate securities (“ARS”) included within corporate debt securities include ARS backed by pools of student loans and auction rate preferred securities issued by closed end mutual funds. ARS are measured using market data provided by external service providers, as available. The fair value of ARS is also determined by benchmarking to independent market data and adjusting for projected cash flows, level of seniority in the capital structure, leverage, liquidity and credit rating, as appropriate. ARS are classified within Level 3 of the fair value hierarchy based on our assessment of the transparency of the external market data received.
|
•
|
U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices and categorized in Level 1 of the fair value hierarchy.
|
•
|
U.S. Agency Issued Debt Securities: Callable and non-callable U.S. agency issued debt securities are measured primarily based on quoted market prices obtained from external pricing services. Non-callable U.S. agency securities are generally classified within Level 1 of the fair value hierarchy and callable U.S. agency securities are classified within Level 2.
|
•
|
G-7 Government and non-G-7 Government Bonds: G-7 government and non-G-7 government bonds are measured based on quoted market prices obtained from external pricing services. G-7 government bonds are categorized within Level 1 of the fair value hierarchy and non-G-7 government bonds are generally categorized within Level 2.
|
•
|
Emerging Market Sovereign Debt Securities: Valuations are primarily based on market price quotations from external data providers, where available, or recently executed independent transactions of comparable size. To the extent market price quotations are not available or recent transactions have not been observed, valuation techniques incorporating foreign currency curves, interest rate yield curves and country spreads for bonds of similar issuers, seniority and maturity are used to determine fair value. Emerging market sovereign debt securities are generally classified within Level 2 of the fair value hierarchy.
|
•
|
Agency Residential Mortgage-Backed Securities: Agency residential mortgage-backed securities include mortgage pass-through securities (fixed and adjustable rate), collateralized mortgage obligations, interest-only and principal-only securities and to-be-announced securities and are generally measured using market price quotations from external data providers and categorized within Level 2 of the fair value hierarchy.
|
•
|
Agency Residential Inverse Interest-Only Securities (“Agency Inverse IOs”): The fair value of agency inverse IOs is estimated using expected future cash flow techniques that incorporate prepayment models and other prepayment assumptions to amortize the underlying mortgage loan collateral. We use prices observed for recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to underlying collateral incorporate weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer, and weighted average loan age. Agency inverse IOs are categorized within Level 2 of the fair value hierarchy. We also use vendor data in developing assumptions, as appropriate.
|
•
|
Non-Agency Residential Mortgage-Backed Securities: Fair values are determined primarily using discounted cash flow methodologies and securities are categorized within Level 2 or Level 3 of the fair value hierarchy based on the observability of the pricing inputs used. Performance attributes of the underlying mortgage loans are evaluated to estimate pricing inputs, such as prepayment rates, default rates and the severity of credit losses. Attributes of the underlying mortgage loans that affect the pricing inputs include, but are not limited to, weighted average coupon; average and maximum loan size; loan-to-value; credit scores; documentation type; geographic location; weighted average loan age; originator; servicer; historical prepayment, default and loss severity experience of the mortgage loan pool; and delinquency rate. Yield curves used in the discounted cash flow models are based on observed market prices for comparable securities and published interest rate data to estimate market yields.
|
•
|
Agency Commercial Mortgage-Backed Securities: GNMA project loan bonds and FNMA DUS mortgage-backed securities are generally measured by using prices observed for recently executed market transactions to estimate market-clearing spread levels for purposes of estimating fair value. GNMA project loan bonds and FNMA DUS mortgage-backed securities are categorized within Level 2 of the fair value hierarchy.
|
•
|
Non-Agency Commercial Mortgage-Backed Securities: Non-agency commercial mortgage-backed securities are measured using pricing data obtained from third party services and prices observed for recently executed market transactions and are categorized within Level 2 and Level 3 of the fair value hierarchy.
|
•
|
Corporate Loans : Corporate loans categorized within Level 2 of the fair value hierarchy are measured based on market price quotations from external data providers where sufficient observability exists as to the extent of market transaction data supporting the pricing data. Corporate loans categorized within Level 3 are measured based on market price quotations that are considered to be less transparent, market prices for debt securities of the same creditor, and estimates of future cash flow incorporating assumptions regarding creditor default and recovery rates and consideration of the issuer’s capital structure.
|
•
|
Participation Certificates in GNMA Project and Construction Loans: Valuations of participation certificates in GNMA project and construction loans are based on observed market prices of recently executed purchases of similar loans which are then used to derive a market implied spread. The market implied spread is used as the primary input in estimating the fair value of loans at the measurement date. The loan participation certificates are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions.
|
•
|
Project Loans: Valuation of project loans are based on benchmarks of prices for recently executed transactions of related realized collateralized securities and are classified within Level 2 of the fair value hierarchy.
|
•
|
Escrow and Trade Claim Receivables: Escrow and trade claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and trade claim receivables are categorized within Level 2 where fair value is based on recent trade activity in the same security.
|
•
|
Listed Derivative Contracts: Listed derivative contracts measured based on quoted exchange prices, which are generally obtained from pricing services, are categorized as Level 1 in the fair value hierarchy. Listed derivatives for which there is limited trading activity are measured based on incorporating the closing auction price of the underlying equity security and are categorized within Level 2.
|
•
|
OTC Derivative Contracts: OTC derivative contracts are generally valued using models, whose inputs reflect assumptions that we believe market participants would use in valuing the derivative in a current period transaction. Inputs to valuation models are appropriately calibrated to market data. For many OTC derivative contracts, the valuation models do not involve material subjectivity as the methodologies do not entail significant judgment and the inputs to valuation models do not involve a high degree of subjectivity as the valuation model inputs are readily observable or can be derived from actively quoted markets. OTC derivative contracts are primarily categorized in Level 2 of the fair value hierarchy given the observability of the inputs to the valuation models.
|
|
November 30, 2011
|
||||||||
|
Fair Value
(h)
|
|
Unfunded
Commitments
|
Redemption
Frequency (if
currently eligible)
|
|||||
Equity Long/Short Hedge Funds(a)
|
|
$
|
27,604
|
|
|
$
|
—
|
|
Monthly,
Quarterly
|
High Yield Hedge Funds(b)
|
|
938
|
|
|
—
|
|
—
|
||
Fund of Funds(c)
|
|
772
|
|
|
126
|
|
—
|
||
Equity Funds(d)
|
|
88,294
|
|
|
74,283
|
|
—
|
||
Convertible Bond Funds(e)
|
|
2,827
|
|
|
—
|
|
At Will
|
||
Other Investments(g)
|
|
19
|
|
|
—
|
|
Bi-Monthly
|
||
|
|
||||||||
Total(i)
|
|
$
|
120,454
|
|
|
$
|
74,409
|
|
|
|
|
||||||||
|
November 30, 2010
|
||||||||
|
Fair Value
(h)
|
|
Unfunded
Commitments
|
Redemption
Frequency (if
currently eligible)
|
|||||
Equity Long/Short Hedge Funds(a)
|
|
$
|
80,837
|
|
|
$
|
—
|
|
Quarterly,
Semiannually
|
High Yield Hedge Funds(b)
|
|
1,561
|
|
|
—
|
|
—
|
||
Fund of Funds(c)
|
|
2,622
|
|
|
131
|
|
Annually
|
||
Equity Funds(d)
|
|
73,162
|
|
|
87,791
|
|
—
|
||
Convertible Bond Funds(e)
|
|
18,070
|
|
|
—
|
|
At Will
|
||
Commodity Funds(f)
|
|
5,948
|
|
|
—
|
|
At Will
|
||
Other Investments(g)
|
|
287
|
|
|
—
|
|
At Will
|
||
|
|
||||||||
Total(i)
|
|
$
|
182,487
|
|
|
$
|
87,922
|
|
|
|
|
(a)
|
This category includes investments in hedge funds that invest in both long and short equity securities in domestic and international markets in both public and private sectors. At November 30, 2011 and
|
November 30, 2010, investments representing approximately 98% and 92%, respectively, of the fair value in this category are redeemable with 30 — 65 days prior written notice. At November 30, 2010, investments representing approximately 7% of fair value could not be redeemed until the lock-up period expired on December 31, 2010. At November 30, 2011 and November 30, 2010, investments representing approximately 2% and 1%, respectively, of fair value cannot be redeemed as they are in liquidation and distributions will be received through the liquidation of the underlying assets of the funds. We are unable to estimate when the underlying assets will be liquidated. At November 30, 2011 and November 30, 2010, an investment representing less than 1% of fair value has no redemption provisions; distributions are received through the liquidation of the underlying assets of the fund which is estimated to be within one to two years.
|
(b)
|
This category includes investments in funds that invest in domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt, and private equity investments. There are no redemption provisions. At November 30, 2011 and November 30, 2010, these investments are currently in liquidation and we are unable to estimate when the underlying assets will be fully liquidated.
|
(c)
|
This category includes investments in fund of funds that invest in various private equity funds. At November 30, 2011 and November 30, 2010, approximately 95% and 41%, respectively, of the fair value of investments in this category is managed by us and has no redemption provisions. Distributions are received through the liquidation of the underlying assets of the fund of funds, which are estimated to be liquidated in one to three years. At November 30, 2011 we requested redemption for investments representing approximately 5% of fair value at November 30, 2011, however we are unable to estimate when these funds will be returned. At November 30, 2010, investments representing approximately 59% of the fair value were approved for redemption and the funds’ net asset values were received in the first quarter of 2011.
|
(d)
|
At November 30, 2011 and November 30, 2010, investments representing approximately 96% and 91% respectively, include investments in equity funds that invest in the equity of various private companies in the energy, technology, internet service and telecommunication service industries including acquired or restructured companies. These investments cannot be redeemed; distributions are received through the liquidation of the underlying assets of the funds and are expected to liquidate in one to ten years. At November 30, 2011, a fund that invests in Croatian companies represents approximately 4% of the total investment in equity funds. At November 30, 2010, funds that invest in Croatian and Vietnamese companies represent approximately 9% of the total investment in equity funds.
|
(e)
|
This category includes an investment in an open-ended investment company that invests primarily in convertible bonds. This investment is redeemable with 5 days prior written notice.
|
(f)
|
This category includes an investment in an open-ended investment company that invests in commodity-related equity securities and commodity futures-linked derivative instruments. This investment is redeemable with 7 days prior notice.
|
(g)
|
Other investments at November 30, 2011 included investments in funds that invest in commodities futures and options contracts. Other Investments at November 30, 2010 included investments in closed-ended funds that invested in Vietnamese equity and debt instruments.
|
(h)
|
Fair value has been estimated using the net asset value derived from each of the funds’ capital statements.
|
(i)
|
Investments at fair value in the Consolidated Statements of Financial Condition at November 30, 2011 and November 30, 2010 include $55.9 million and $26.9 million, respectively, of direct investments which are not investment companies and therefore are not part of this disclosure table.
|
|
November 30, 2011
|
November 30, 2010
|
||||||||||||||
|
Financial
Instruments
Owned
|
Financial
Instruments Sold,
Not Yet
Purchased
|
Financial
Instruments
Owned
|
Financial
Instruments Sold,
Not Yet
Purchased
|
||||||||||||
Exchange closing prices
|
|
7
|
%
|
19
|
%
|
9
|
%
|
17
|
%
|
|||||||
Recently observed transaction prices
|
|
2
|
%
|
1
|
%
|
5
|
%
|
2
|
%
|
|||||||
Data providers/pricing services
|
|
77
|
%
|
75
|
%
|
65
|
%
|
60
|
%
|
|||||||
Broker quotes
|
|
1
|
%
|
0
|
%
|
12
|
%
|
19
|
%
|
|||||||
Valuation techniques
|
|
13
|
%
|
5
|
%
|
9
|
%
|
2
|
%
|
|||||||
|
||||||||||||||||
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
||||||||
|
|
Twelve Months Ended November 30, 2011
|
|||||||||||||||||||||||||||
|
Balance,
November 30,
2010
|
|
Total gains/
losses (realized
and unrealized)
(1)
|
Purchases,
sales,
settlements,
and
issuances,
net
|
Transfers
into
Level 3
|
|
Transfers
out of
Level 3
|
Balance,
November
30, 2011
|
|
Change in
unrealized gains/
(losses) relating to
instruments
still held at
November 30,
2011
(1)
|
||||||||||||||||||
Assets:
|
|
|
|
|
||||||||||||||||||||||||
Financial instruments owned:
|
|
|
|
|
||||||||||||||||||||||||
Corporate equity securities
|
|
$
|
22,619
|
|
|
$
|
4,132
|
|
$
|
(2,271
|
)
|
$
|
816
|
|
|
$
|
(11,807
|
)
|
$
|
13,489
|
|
|
$
|
439
|
|
|||
Corporate debt securities
|
|
73,408
|
|
|
1,048
|
|
(31,158
|
)
|
6,304
|
|
|
(1,462
|
)
|
48,140
|
|
|
(4,478
|
)
|
||||||||||
Collateralized debt obligations
|
|
31,121
|
|
|
70
|
|
44,009
|
|
779
|
|
|
(27,991
|
)
|
47,988
|
|
|
(270
|
)
|
||||||||||
Municipal securities
|
|
472
|
|
|
(10,133
|
)
|
11,182
|
|
5,383
|
|
|
—
|
|
6,904
|
|
|
(8,931
|
)
|
||||||||||
Sovereign obligations
|
|
—
|
|
|
12
|
|
128
|
|
—
|
|
|
—
|
|
140
|
|
|
12
|
|
||||||||||
Residential mortgage-backed securities
|
|
132,359
|
|
|
(16,727
|
)
|
45,845
|
|
35,726
|
|
|
(47,238
|
)
|
149,965
|
|
|
(31,846
|
)
|
||||||||||
Commercial mortgage-backed securities
|
|
6,004
|
|
|
(9,910
|
)
|
46,685
|
|
9,628
|
|
|
—
|
|
52,407
|
|
|
(11,583
|
)
|
||||||||||
Other asset-backed securities
|
|
567
|
|
|
(715
|
)
|
2,947
|
|
1,052
|
|
|
(567
|
)
|
3,284
|
|
|
(691
|
)
|
||||||||||
Loans and other receivables
|
|
227,596
|
|
|
(356
|
)
|
(120,544
|
)
|
3,875
|
|
|
(13,280
|
)
|
97,291
|
|
|
(3,478
|
)
|
||||||||||
Investments, at fair value
|
|
77,784
|
|
|
6,283
|
|
(2,627
|
)
|
—
|
|
|
(3,114
|
)
|
78,326
|
|
|
1,036
|
|
||||||||||
Investments in managed funds
|
|
$
|
131,585
|
|
|
$
|
12,030
|
|
$
|
(72,875
|
)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
70,740
|
|
|
$
|
12,030
|
|
|||
Liabilities:
|
|
|
|
|
||||||||||||||||||||||||
Financial instruments sold, not yet purchased:
|
|
|
|
|
||||||||||||||||||||||||
Corporate equity securities
|
|
$
|
38
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(38
|
)
|
$
|
—
|
|
|
$
|
—
|
|
|||
Corporate debt securities
|
|
—
|
|
|
—
|
|
74
|
|
—
|
|
|
—
|
|
74
|
|
|
—
|
|
||||||||||
Net derivatives(2)
|
|
2,346
|
|
|
6,550
|
|
389
|
|
—
|
|
|
—
|
|
9,285
|
|
|
6,645
|
|
||||||||||
Loans
|
|
47,228
|
|
|
—
|
|
(37,071
|
)
|
—
|
|
|
—
|
|
10,157
|
|
|
—
|
|
(1)
|
Realized and unrealized gains/(losses) are reported in Principal transactions in the Consolidated Statements of Earnings.
|
(2)
|
Net derivatives represent Financial instruments owned — Derivatives and Financial instruments sold, not yet purchased Derivatives.
|
•
|
Non-agency residential mortgage-backed securities and commercial mortgage-backed securities due to a tightening in the historical trading period used for corroborating market data and a greater scrutiny of vendor prices;
|
•
|
Corporate debt securities due to lack of observable market transactions;
|
•
|
Municipal securities due to a lack of recent market transactions for certain bonds; and
|
•
|
Loans and other receivables due to a lower number of contributors comprising vendor quotes to support classification in Level 2 as less market interest likely existed for the specific loans during the period.
|
•
|
Non-agency residential mortgage-backed securities for which market trades were observed in the period for either identical or similar securities or for which vendor prices were corroborated to actual market transactions;
|
•
|
Collateralized debt obligations and Loans and other receivables due to a greater number of contributors for certain vendor quotes supporting classification into Level 2 as greater market interest likely existed for the specific loans during the period; and
|
||
•
|
Corporate equity securities due to announced market transactions or more observable market data on comparable securities used as a benchmark.
|
Eleven Months Ended November 30, 2010
|
||||||||||||||||||||||||||||
Balance,
December 31,
2009
|
Total gains/
losses (realized
and unrealized)
(1)
|
Purchases,
sales,
settlements,
and
issuances
|
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
Balance,
November 30,
2010
|
Change in
unrealized gains/
(losses) relating to
instruments
still held at
November 30,
2010
(1)
|
||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||
Financial instruments owned:
|
||||||||||||||||||||||||||||
Corporate equity securities
|
$
|
43,042
|
|
$
|
(17,644
|
)
|
$
|
(3,099
|
)
|
$
|
1,272
|
|
$
|
(952
|
)
|
$
|
22,619
|
|
$
|
(17,377
|
)
|
|||||||
Corporate debt securities
|
116,648
|
|
416
|
|
(34,262
|
)
|
285
|
|
(9,679
|
)
|
73,408
|
|
(1,115
|
)
|
||||||||||||||
Collateralized debt obligations
|
9,570
|
|
10,291
|
|
11,260
|
|
—
|
|
—
|
|
31,121
|
|
9,614
|
|
||||||||||||||
U.S. issued municipal securities
|
420
|
|
52
|
|
—
|
|
—
|
|
—
|
|
472
|
|
52
|
|
||||||||||||||
Sovereign obligations
|
196
|
|
—
|
|
—
|
|
—
|
|
(196
|
)
|
—
|
|
—
|
|
||||||||||||||
Residential mortgage-backed
securities
|
136,496
|
|
40,238
|
|
(48,812
|
)
|
11,721
|
|
(7,284
|
)
|
132,359
|
|
3,815
|
|
||||||||||||||
Commercial mortgage-backed
securities
|
3,215
|
|
15,862
|
|
(12,012
|
)
|
—
|
|
(1,061
|
)
|
6,004
|
|
(62
|
)
|
||||||||||||||
Other asset-backed securities
|
110
|
|
(175
|
)
|
632
|
|
—
|
|
—
|
|
567
|
|
(205
|
)
|
||||||||||||||
Loans and other receivables
|
506,542
|
|
40,464
|
|
(178,877
|
)
|
739
|
|
(141,272
|
)
|
227,596
|
|
15,648
|
|
||||||||||||||
Investments at fair value
|
65,564
|
|
18,042
|
|
(6,432
|
)
|
4,039
|
|
(3,429
|
)
|
77,784
|
|
13,946
|
|
||||||||||||||
Investments in managed funds
|
$
|
115,774
|
|
$
|
961
|
|
$
|
14,850
|
|
$
|
—
|
|
$
|
—
|
|
$
|
131,585
|
|
$
|
961
|
|
|||||||
Liabilities:
|
||||||||||||||||||||||||||||
Financial instruments sold,
not yet purchased:
|
||||||||||||||||||||||||||||
Corporate equity
securities
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
38
|
|
$
|
—
|
|
38
|
|
$
|
—
|
|
||||||||
Net derivatives(2)
|
3,017
|
|
(2,533
|
)
|
—
|
|
—
|
|
1,862
|
|
2,346
|
|
(2,533
|
)
|
||||||||||||||
Loans
|
352,420
|
|
232
|
|
(210,267
|
)
|
—
|
|
(95,157
|
)
|
47,228
|
|
—
|
|
(1)
|
Realized and unrealized gains/(losses) are reported in Principal transactions in the Consolidated Statements of Earnings.
|
(2)
|
Net derivatives represent Financial instruments owned — Derivatives and Financial instruments sold, not yet purchased Derivatives.
|
•
|
Transfers of non-agency mortgage-backed securities for which no recent trade activity was observed for purposes of determining observable inputs and
|
•
|
Certain investments at fair value which have little to no transparency in trade activity.
|
•
|
Corporate loans, for which we obtained additional market pricing data from third party sources during the quarter that provided additional transparency into the valuation process for these assets;
|
•
|
Residential mortgage-backed securities, for which market trades were observed in the period for either identical or similar securities; and
|
•
|
Corporate debt securities, for which market transactions were announced or market data on comparable securities used as a benchmark became more observable.
|
|
Twelve Months Ended
November 30, 2011
|
|||
Financial Instruments Owned:
|
|
|||
Loans and other receivables
|
|
$
|
(19,400
|
)
|
Financial Instruments Sold:
|
|
|||
Loans
|
|
$
|
(1,463
|
)
|
Loan commitments
|
|
$
|
(4,329
|
)
|
|
As of November 30,
2011
|
|||
Financial Instruments Owned:
|
|
|||
Loans and other receivables(2)
|
|
$
|
277,336
|
|
Loans greater than 90 days past due(1)(2)
|
|
$
|
2,253
|
|
(1)
|
The aggregate fair value of loans that were 90 or more days past due was $5.5 million at November 30, 2011.
|
(2)
|
Interest income is recognized separately from other changes in fair value and is included within Interest revenues on the Consolidated Statement of Earnings.
|
|
November 30, 2011
|
|||||||||||||||
|
Assets
|
|
Liabilities
|
|||||||||||||
|
Fair Value
|
Number of
Contracts
|
|
Fair Value
|
Number of
Contracts
|
|||||||||||
Interest rate contracts
|
|
$
|
542,221
|
|
63,751
|
|
|
$
|
636,692
|
|
66,027
|
|
||||
Foreign exchange contracts
|
|
1,009,765
|
|
102,578
|
|
|
1,015,900
|
|
119,780
|
|
||||||
Equity contracts
|
|
638,228
|
|
2,364,390
|
|
|
548,195
|
|
2,119,165
|
|
||||||
Commodity contracts
|
|
725,927
|
|
434,428
|
|
|
598,166
|
|
421,330
|
|
||||||
Credit contracts
|
|
60,756
|
|
59
|
|
|
35,718
|
|
39
|
|
||||||
|
|
|||||||||||||||
Total
|
|
2,976,897
|
|
2,965,206
|
|
|
2,834,671
|
|
2,726,341
|
|
||||||
|
|
|||||||||||||||
Counterparty/cash-collateral netting
|
|
(2,451,004
|
)
|
|
(2,585,634
|
)
|
||||||||||
|
|
|||||||||||||||
Total per Consolidated
|
|
|
||||||||||||||
Statement of Financial Condition
|
|
$
|
525,893
|
|
|
$
|
249,037
|
|
||||||||
|
|
|||||||||||||||
|
November 30, 2010
|
|||||||||||||||
|
Assets
|
|
Liabilities
|
|||||||||||||
|
Fair Value
|
Number of
Contracts
|
|
Fair Value
|
Number of
Contracts
|
|||||||||||
Interest rate contracts
|
|
$
|
77,295
|
|
41,166
|
|
|
$
|
126,281
|
|
43,243
|
|
||||
Foreign exchange contracts
|
|
20,263
|
|
1,165
|
|
|
17,004
|
|
290
|
|
||||||
Equity contracts
|
|
275,760
|
|
1,166,365
|
|
|
249,229
|
|
1,133,464
|
|
||||||
Commodity contracts
|
|
62,727
|
|
103,562
|
|
|
76,911
|
|
35,071
|
|
||||||
Credit contracts
|
|
19,835
|
|
18
|
|
|
15,647
|
|
15
|
|
||||||
|
|
|||||||||||||||
Total
|
|
455,880
|
|
1,312,276
|
|
|
485,072
|
|
1,212,083
|
|
||||||
|
|
|||||||||||||||
Counterparty/cash-collateral netting
|
|
(336,612
|
)
|
|
(425,520
|
)
|
||||||||||
|
|
|||||||||||||||
Total per Consolidated
|
|
|
||||||||||||||
Statement of Financial Condition
|
|
$
|
119,268
|
|
|
$
|
59,552
|
|
||||||||
|
|
|
Twelve Months Ended
November 30, 2011
Gains (Losses)
|
Eleven Months Ended
November 30, 2010
Gains (Losses)
|
Twelve Months Ended
December 31, 2009
Gains (Losses)
|
|||||||||
Interest rate contracts
|
|
$
|
(204,403
|
)
|
$
|
(122,898
|
)
|
$
|
(11,581
|
)
|
||
Foreign exchange contracts
|
|
2,243
|
|
1,194
|
|
663
|
|
|||||
Equity contracts
|
|
(279,488
|
)
|
(87,084
|
)
|
(202,091
|
)
|
|||||
Commodity contracts
|
|
74,282
|
|
15,454
|
|
(2,571
|
)
|
|||||
Credit contracts
|
|
17,621
|
|
(52,049
|
)
|
3,057
|
|
|||||
|
||||||||||||
Total
|
|
$
|
(389,745
|
)
|
$
|
(245,383
|
)
|
$
|
(212,523
|
)
|
||
|
|
OTC derivative assets(1)(2)(4)
|
|||||||||||||||||||
|
0-12 Months
|
|
1-5 Years
|
|
Greater Than
5 Years
|
|
Cross-Maturity
Netting(3)
|
Total
|
||||||||||||
Commodity swaps, options and forwards
|
|
$
|
202,723
|
|
|
$
|
8,200
|
|
|
$
|
—
|
|
|
$
|
(1,152
|
)
|
$
|
209,771
|
|
|
Credit default swaps
|
|
—
|
|
|
12,474
|
|
|
21,793
|
|
|
(1,751
|
)
|
32,516
|
|
||||||
Total return swaps
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
23
|
|
||||||
Foreign currency forwards, swaps and options
|
|
163,668
|
|
|
38,919
|
|
|
—
|
|
|
(15,162
|
)
|
187,425
|
|
||||||
Fixed income forwards
|
|
5,078
|
|
|
—
|
|
|
—
|
|
|
—
|
|
5,078
|
|
||||||
Interest rate swaps and caps
|
|
19,572
|
|
|
24,224
|
|
|
109,936
|
|
|
(34,275
|
)
|
119,457
|
|
||||||
|
|
|
|
|||||||||||||||||
Total
|
|
$
|
391,064
|
|
|
$
|
83,817
|
|
|
$
|
131,729
|
|
|
$
|
(52,340
|
)
|
554,270
|
|
||
|
|
|
|
|||||||||||||||||
Cross product counterparty netting
|
|
|
|
|
(28,036
|
)
|
||||||||||||||
|
|
|
|
|||||||||||||||||
Total OTC derivative assets included in Financial instruments owned
|
|
|
|
|
$
|
526,234
|
|
|||||||||||||
|
|
|
|
(1)
|
At November 30, 2011, we held exchange traded derivative assets and other credit enhancements of $124.1 million.
|
(2)
|
OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received on the Consolidated Statements of Financial Condition. At November 30, 2011, cash collateral received was $124.4 million.
|
(3)
|
Amounts represent the netting of receivable balances with payable balances within product category for the same counterparty across maturity categories.
|
(4)
|
Derivative fair values include counterparty netting within product category.
|
|
OTC derivative liabilities(1)(2)(4)
|
|||||||||||||||||||
|
0-12 Months
|
|
1-5 Years
|
|
Greater Than
5 Years
|
|
Cross-Maturity
Netting(3)
|
Total
|
||||||||||||
Commodity swaps, options and forwards
|
|
$
|
94,255
|
|
|
$
|
8,645
|
|
|
$
|
—
|
|
|
$
|
(1,152
|
)
|
$
|
101,748
|
|
|
Equity options
|
|
—
|
|
|
5,256
|
|
|
—
|
|
|
—
|
|
5,256
|
|
||||||
Credit default swaps
|
|
352
|
|
|
2,053
|
|
|
1,546
|
|
|
(1,751
|
)
|
2,200
|
|
||||||
Total return swaps
|
|
—
|
|
|
1,004
|
|
|
—
|
|
|
—
|
|
1,004
|
|
||||||
Foreign currency forwards, swaps and options
|
|
176,369
|
|
|
36,388
|
|
|
—
|
|
|
(15,162
|
)
|
197,595
|
|
||||||
Interest rate swaps and caps
|
|
29,321
|
|
|
84,971
|
|
|
138,075
|
|
|
(34,275
|
)
|
218,092
|
|
||||||
|
|
|
|
|||||||||||||||||
Total
|
|
$
|
300,297
|
|
|
$
|
138,317
|
|
|
$
|
139,621
|
|
|
$
|
(52,340
|
)
|
525,895
|
|
||
|
|
|
|
|||||||||||||||||
Cross product counterparty netting
|
|
|
|
|
(28,036
|
)
|
||||||||||||||
|
|
|
|
|||||||||||||||||
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased
|
|
|
|
|
$
|
497,859
|
|
|||||||||||||
|
|
|
|
(1)
|
At November 30, 2011, we held exchange traded derivative liabilities and other credit enhancements of $10.2 million.
|
(2)
|
OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged on the Consolidated Statements of Financial Condition. At November 30, 2011, cash collateral pledged was $259.1 million.
|
(3)
|
Amounts represent the netting of receivable balances with payable balances within product category for the same counterparty across maturity categories.
|
(4)
|
Derivative fair values include counterparty netting within product category.
|
Counterparty credit quality(1):
|
|
|||
|
$
|
267,265
|
|
|
B to BBB
|
|
252,484
|
|
|
Lower than B
|
|
206
|
|
|
Unrated
|
|
6,279
|
|
|
|
||||
Total
|
|
$
|
526,234
|
|
|
(1)
|
We utilize the credit ratings of external rating agencies when available. When external credit ratings are not available, we may utilize internal credit ratings determined by our credit risk management. Credit ratings determined by credit risk management use methodologies that produce ratings generally consistent with those produced by external rating agencies.
|
Carrying amount:
|
|
|||
Securities purchased under agreements to resell
|
|
$
|
2,893,043
|
|
Securities borrowed
|
|
5,169,689
|
|
|
Securities received as collateral
|
|
21,862
|
|
|
|
||||
Total assets on Consolidated Statement of Financial Condition
|
|
8,084,594
|
|
|
Netting of securities purchased under agreements to resell
|
|
7,498,439
|
(1)
|
|
|
||||
|
15,583,033
|
|
||
Fair value of collateral received in excess of contract amount
|
|
2,386,921
|
(2)
|
|
|
||||
Fair value of securities received as collateral
|
|
$
|
17,969,954
|
|
|
(1)
|
Represents the netting of securities purchased under agreements to resell with securitie sold under agreements to repurchase balances for the same counterparty under legally enforceable netting agreements.
|
(2)
|
Includes collateral received from customers for margin balances unrelated to arrangements for securities purchased under agreements to resell or securities borrowed.
|
|
Twelve Months Ended
November 30, 2011
|
|
Eleven Months Ended
November 30, 2010
|
|||||
Transferred assets
|
|
$
|
12,539.6
|
|
|
$
|
11,311.1
|
|
Proceeds on new securitizations
|
|
$
|
12,611.0
|
|
|
$
|
11,409.7
|
|
Net revenues
|
|
$
|
82.7
|
|
|
$
|
65.4
|
|
Cash flows received on retained interests
|
|
$
|
103.6
|
|
|
$
|
32.9
|
|
|
As of November 30, 2011
|
|||||||
Securitization Type
|
|
Total Assets
|
|
Retained
Interests
|
||||
|
(in millions)
|
|||||||
U.S. government agency residential mortgage-backed securities
|
|
$
|
7,968.0
|
|
|
$
|
517.9
|
(1)
|
U.S. government agency commercial mortgage-backed securities
|
|
$
|
2,574.3
|
|
|
$
|
49.9
|
(1)
|
Military housing loans
|
|
$
|
127.4
|
|
|
$
|
0.3
|
(2)
|
(1)
|
A significant portion of these securities have been subsequently sold in secondary-market transactions to third parties. As of January 13, 2012, we continue to hold approximately $248.3 million and $27.6 million of these Residential mortgage-backed securities and Commercial mortgage-backed securities, respectively, in inventory.
|
(2)
|
Initial fair value of servicing rights received on transferred project loans.
|
|
As of November 30, 2010
|
|||||||
Securitization Type
|
|
Total Assets
|
|
Retained
Interests
|
||||
|
(in millions)
|
|||||||
U.S. government agency residential mortgage-backed securities
|
|
$
|
6,549.5
|
|
|
$
|
684.7
|
(1)
|
U.S. government agency commercial mortgage-backed securities
|
|
$
|
2,005.4
|
|
|
$
|
40.4
|
(1)
|
Military housing loans
|
|
$
|
107.8
|
|
|
$
|
0.1
|
(2)
|
(1)
|
A significant portion of these securities have been subsequently sold in secondary-market transactions to third parties. As of January 13, 2012, we continue to hold approximately $30.2 million and $27.6 million of these Residential mortgage-backed securities and Commercial mortgage-backed securities, respectively, in inventory.
|
(2)
|
Represents amortized servicing rights on transferred project loans.
|
•
|
Purchases of mortgage-backed securities in connection with our trading and secondary market making activities,
|
•
|
Retained interests held as a result of securitization activities as part of primary market making activities, including the resecuritizations of mortgage-backed securities,
|
•
|
Servicing of military housing mortgage loans held by VIEs,
|
•
|
Ownership of debt, equity and partnership interests in Jefferies High Yield Holdings, LLC and related entities,
|
•
|
Management and performance fees in the Jefferies Umbrella Fund, and
|
•
|
Loans to and investments in investment fund vehicles.
|
|
|
November 30, 2011
|
|
November 30, 2010
|
||||||||||||||||||||
|
High Yield
|
|
Mortgage- and
Asset-backed
Securitizations
|
|
Other
|
|
High Yield
|
|
Mortgage- and
Asset-backed
Securitizations
|
|
Other
|
|||||||||||||
|
(in millions)
|
|||||||||||||||||||||||
Cash
|
|
$
|
345.7
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
202.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Financial instruments owned
|
|
693.3
|
|
|
12.2
|
|
|
7.2
|
|
|
889.8
|
|
|
101.4
|
|
|
21.0
|
|
||||||
Securities borrowed
|
|
195.3
|
|
|
—
|
|
|
—
|
|
|
455.8
|
|
|
—
|
|
|
—
|
|
||||||
Receivable from brokers and dealers
|
|
150.6
|
|
|
—
|
|
|
—
|
|
|
195.5
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
8.5
|
|
|
—
|
|
|
—
|
|
|
11.6
|
|
|
0.1
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|||||||||||||||||||
|
$
|
1,393.4
|
|
|
$
|
12.2
|
|
|
$
|
7.5
|
|
|
$
|
1,755.3
|
|
|
$
|
101.5
|
|
|
$
|
21.0
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Financial instruments sold, not yet purchased
|
|
$
|
326.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
602.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Payable to brokers and dealers
|
|
105.2
|
|
|
—
|
|
|
—
|
|
|
157.1
|
|
|
—
|
|
|
—
|
|
||||||
Mandatorily redeemable interests(1)
|
|
943.4
|
|
|
—
|
|
|
—
|
|
|
960.2
|
|
|
—
|
|
|
—
|
|
||||||
Promissory note(2)
|
|
—
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
||||||
Secured financing(3)
|
|
—
|
|
|
12.2
|
|
|
—
|
|
|
—
|
|
|
101.4
|
|
|
—
|
|
||||||
Other
|
|
20.7
|
|
|
—
|
|
|
0.2
|
|
|
36.3
|
|
|
0.1
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|||||||||||||||||||
|
$
|
1,395.5
|
|
|
$
|
12.2
|
|
|
$
|
4.4
|
|
|
$
|
1,756.2
|
|
|
$
|
101.5
|
|
|
$
|
4.4
|
|
|
|
|
|
|
|
|
(1)
|
After consolidation, which eliminates our interests and the interests of our consolidated subsidiaries, JSOP and JESOP, the carrying amount of the mandatorily redeemable financial interests pertaining to the above VIEs included within Mandatorily redeemable preferred interests of consolidated subsidiaries was approximately $310.5 million and $315.9 million at November 30, 2011 and November 30, 2010, respectively. These amounts represent the portion of the mandatorily redeemable preferred interests held by our joint venture partner.
|
(2)
|
The promissory note represents an amount due to us and is eliminated in consolidation.
|
(3)
|
Secured financing is included within Accrued expenses and other liabilities. Approximately $8.4 million and $15.7 million of the secured financing represents an amount held by us in inventory and is eliminated in consolidation at November 30, 2011 and November 30, 2010, respectively.
|
|
|
November 30, 2011
|
||||||||||
|
Variable Interests
|
|||||||||||
|
Financial Statement
Carrying Amount
|
Maximum
exposure to loss
|
VIE Assets
|
|||||||||
|
(in millions)
|
|||||||||||
Collateralized loan obligations
|
|
$
|
48.2
|
(2)
|
$
|
48.2
|
(4)
|
$
|
1,768.4
|
|
||
Agency mortgage- and asset-backed securitizations(1)
|
|
1,410.9
|
(2)
|
1,410.9
|
(4)
|
6,523.0
|
|
|||||
Non-agency mortgage- and asset-backed securitizations(1)
|
|
583.9
|
(2)
|
583.9
|
(4)
|
41,939.4
|
|
|||||
Asset management vehicle
|
|
2.8
|
(3)
|
2.8
|
(4)
|
903.9
|
|
|||||
Private equity vehicles
|
|
64.5
|
(3)
|
131.3
|
|
84.2
|
|
|||||
|
||||||||||||
Total
|
|
$
|
2,110.3
|
|
$
|
2,177.1
|
|
$
|
51,218.9
|
|
||
|
(1)
|
VIE assets represent the unpaid principal balance of the assets in these vehicles at November 30, 2011 and represent the underlying assets that provide the cash flows supporting our variable interests.
|
(2)
|
Consists of debt securities accounted for at fair value, which are included within Financial instruments owned.
|
(3)
|
Consists of equity interests and loans, which are classified within Investments in managed funds and Loans to and investments in related parties.
|
(4)
|
Our maximum exposure to loss in these non-consolidated VIEs is limited to our investment, which is represented by the financial statement carrying amount of our purchased or retained interests.
|
|
Nonagency
|
|
Agency
|
|
Total
|
|||||||
Variable interests in collateralized loan obligations
|
|
$
|
48.2
|
|
|
$
|
—
|
|
|
$
|
48.2
|
|
Variable interests in agency mortgage- and asset backed
|
|
—
|
|
|
1,410.9
|
|
|
1,410.9
|
|
|||
Variable interests in nonagency mortgage- and asset backed
|
|
583.9
|
|
|
—
|
|
|
583.9
|
|
|||
|
|
|
||||||||||
Additional securities in connection with trading and market Residential mortgage-backed securities
|
|
67.9
|
|
|
1,256.7
|
|
|
1,324.6
|
|
|||
Commercial mortgage-backed securities
|
|
7.0
|
|
|
526.1
|
|
|
533.1
|
|
|||
Collateralized debt obligations
|
|
8.8
|
|
|
—
|
|
|
8.8
|
|
|||
Other asset-backed securities
|
|
13.8
|
|
|
—
|
|
|
13.8
|
|
|||
|
|
|
||||||||||
Total mortgage- and asset-backed securities on the Consolidated Statement of Financial Condition
|
|
$
|
729.6
|
|
|
$
|
3,193.7
|
|
|
$
|
3,923.3
|
|
|
|
|
|
November 30, 2010
|
|||||||||||
|
Financial Statement
Carrying Amount
|
Maximum
exposure to loss
|
VIE Assets
|
|||||||||
Collateralized loan obligations
|
|
$
|
35.3
|
(2)
|
$
|
35.3
|
(4)
|
$
|
1,937.8
|
|
||
Agency mortgage- and asset-backed securitizations(1)
|
|
1,840.9
|
(2)
|
1,840.9
|
(4)
|
7,464.8
|
|
|||||
Non-agency mortgage- and asset-backed securitizations(1)
|
|
852.1
|
(2)
|
852.1
|
(4)
|
91,285.1
|
|
|||||
Asset management vehicle
|
|
18.1
|
(3)
|
18.1
|
(4)
|
760.4
|
|
|||||
Private equity vehicles
|
|
49.7
|
(3)
|
131.0
|
|
63.9
|
|
|||||
|
||||||||||||
Total
|
|
$
|
2,796.1
|
|
$
|
2,877.4
|
|
$
|
101,512.0
|
|
||
|
(1)
|
VIE assets represent the unpaid principal balance of the assets in these vehicles at November 30, 2010.
|
(2)
|
Consists of debt securities accounted for at fair value, which are included within Financial instruments owned.
|
(3)
|
Consists of equity interests, which are classified within Investments in managed funds and Loans to and investments in related parties.
|
(4)
|
Our maximum exposure to loss in these non-consolidated VIEs is limited to our investment, which represents our purchased or retained interests.
|
|
November 30,
2011
|
|
November 30,
2010
|
|
December 31,
2009
|
|||||||
Total assets
|
|
$
|
1,457.8
|
|
|
$
|
890.4
|
|
|
$
|
944.1
|
|
Total liabilities
|
|
1,044.3
|
|
|
566.4
|
|
|
691.2
|
|
|||
Total equity
|
|
413.5
|
|
|
324.0
|
|
|
252.9
|
|
|||
Our total equity balance
|
|
206.8
|
|
|
162.0
|
|
|
126.4
|
|
|
November 30,
2011
|
|||
Total assets
|
|
$
|
761.4
|
|
Total liabilities
|
|
427.4
|
|
|
Total equity
|
|
334.0
|
|
|
Our total equity balance
|
|
162.0
|
|
|
Twelve Months
Ended
November 30, 2011
|
Eleven Months
Ended
November 30, 2010
|
||||||
Balance, at beginning of period
|
|
$
|
364,964
|
|
$
|
364,795
|
|
|
Add: Contingent consideration
|
|
825
|
|
1,013
|
|
|||
Add: Translation adjustments
|
|
(215
|
)
|
(844
|
)
|
|||
|
||||||||
Balance, at end of period
|
|
$
|
365,574
|
|
$
|
364,964
|
|
|
|
|
November 30, 2011
|
|||||||||||||||
|
Gross cost
|
|
Accumulated
amortization
|
Net carrying
amount
|
|
Weighted
average
remaining
lives (years)
|
||||||||||
Exchange and clearing organization membership interests and registrations
|
|
$
|
11,219
|
|
|
$
|
—
|
|
$
|
11,219
|
|
|
N/A
|
|
||
Customer relationships
|
|
10,542
|
|
|
(2,776
|
)
|
7,766
|
|
|
6.9
|
|
|||||
Trade name
|
|
1,300
|
|
|
(361
|
)
|
939
|
|
|
1.1
|
|
|||||
Other
|
|
100
|
|
|
(8
|
)
|
92
|
|
|
13.8
|
|
|||||
|
|
|
||||||||||||||
|
$
|
23,161
|
|
|
$
|
(3,145
|
)
|
$
|
20,016
|
|
|
|||||
|
|
|
||||||||||||||
|
November 30, 2010
|
|||||||||||||||
|
Gross cost
|
|
Accumulated
amortization
|
Net carrying
amount
|
|
Weighted
average
remaining
lives (years)
|
||||||||||
Customer relationships
|
|
$
|
4,742
|
|
|
$
|
(1,726
|
)
|
$
|
3,016
|
|
|
4.2
|
|
||
Other
|
|
100
|
|
|
(2
|
)
|
98
|
|
|
14.8
|
|
|||||
|
|
|
||||||||||||||
|
$
|
4,842
|
|
|
$
|
(1,728
|
)
|
$
|
3,114
|
|
|
|||||
|
|
|
Fiscal year
|
|
Estimated future
amortization
expense
|
||
2012
|
|
$
|
2,203
|
|
2013
|
|
1,243
|
|
|
2014
|
|
853
|
|
|
2015
|
|
695
|
|
|
2016
|
|
695
|
|
|
Twelve Months
Ended
November 30, 2011
|
Eleven Months
Ended
November 30, 2010
|
||||||
Balance, beginning of period
|
|
$
|
8,263
|
|
$
|
8,500
|
|
|
Add: Acquisition
|
|
347
|
|
87
|
|
|||
Less: Amortization
|
|
(408
|
)
|
(324
|
)
|
|||
|
||||||||
Balance, end of period
|
|
$
|
8,202
|
|
$
|
8,263
|
|
|
|
|
November 30,
|
|||||||
|
2011
|
|
2010
|
|||||
Unsecured Long-Term Debt
|
|
|
||||||
7.75% Senior Notes, due 2012 (effective interest rate of 8.08%)(1)
|
|
$
|
254,926
|
|
|
$
|
305,969
|
|
5.875% Senior Notes, due 2014 (effective interest rate of 6.00%)
|
|
249,298
|
|
|
249,048
|
|
||
3.875% Senior Notes, due 2015 (effective interest rate of 3.92%)
|
|
499,187
|
|
|
499,000
|
|
||
5.5% Senior Notes, due 2016 (effective interest rate of 5.57%)
|
|
349,045
|
|
|
348,854
|
|
||
5.125% Senior Notes, due 2018 (effective interest rate of 5.18%)
|
|
782,598
|
|
|
—
|
|
||
8.5% Senior Notes, due 2019 (effective interest rate of 8.31%)
|
|
707,787
|
|
|
708,529
|
|
||
6.875% Senior Notes, due 2021 (effective interest rate of 6.99%)
|
|
545,816
|
|
|
545,510
|
|
||
6.45% Senior Debentures, due 2027 (effective interest rate of 6.55%)
|
|
346,664
|
|
|
346,544
|
|
||
3.875% Convertible Senior Debentures, due, 2029 (effective interest rate of 7.20%)
|
|
280,832
|
|
|
282,577
|
|
||
6.25% Senior Debentures, due 2036 (effective interest rate of 6.37%)
|
|
492,773
|
|
|
492,650
|
|
||
|
|
|||||||
|
$
|
4,508,926
|
|
|
$
|
3,778,681
|
|
|
|
|
|||||||
Secured Long-Term Debt
|
|
|
||||||
Credit facility, due 2014
|
|
100,000
|
|
|
—
|
|
||
|
|
|||||||
|
$
|
4,608,926
|
|
|
$
|
3,778,681
|
|
|
|
|
(1)
|
Our 7.75% Senior Notes, due in 2012, are payable in March 2012.
|
Noncontrolling Interest and Mandatorily Redeemable Preferred Interests of Consolidated Subsidiaries
|
|
November 30,
2011
|
|
November 30,
2010
|
|||||
JSOP
|
|
$
|
276,800
|
|
|
$
|
282,469
|
|
JESOP
|
|
31,979
|
|
|
32,645
|
|
||
Other(1)
|
|
3,884
|
|
|
17,862
|
|
||
|
|
|||||||
Noncontrolling interests
|
|
$
|
312,663
|
|
|
$
|
332,976
|
|
|
|
(1)
|
Other includes consolidated asset management entities and investment vehicles set up for the benefit of our employees or clients.
|
|
|
Twelve Months
Ended
November 30, 2011
|
Eleven Months
Ended
November 30, 2010
|
|||||
Change in Projected Benefit Obligation
|
|
|||||||
Projected benefit obligation, beginning of period
|
|
$
|
45,535
|
|
$
|
43,750
|
|
|
Service cost
|
|
175
|
|
183
|
|
|||
Interest cost
|
|
2,366
|
|
2,233
|
|
|||
Actuarial losses
|
|
4,630
|
|
2,222
|
|
|||
Administrative expenses paid
|
|
(201
|
)
|
(154
|
)
|
|||
Benefits paid
|
|
(2,018
|
)
|
(2,699
|
)
|
|||
|
||||||||
Projected benefit obligation, end of period
|
|
$
|
50,487
|
|
$
|
45,535
|
|
|
|
||||||||
Change in plan assets
|
|
|||||||
Fair value of assets, beginning of period
|
|
$
|
35,086
|
|
$
|
35,892
|
|
|
Employer contributions
|
|
2,000
|
|
—
|
|
|||
Benefit payments made
|
|
(2,018
|
)
|
(2,699
|
)
|
|||
Administrative expenses paid
|
|
(201
|
)
|
(154
|
)
|
|||
Actual return on plan assets
|
|
1,590
|
|
2,047
|
|
|||
|
||||||||
Fair value of assets, end of period
|
|
$
|
36,457
|
|
$
|
35,086
|
|
|
|
||||||||
Funded (deficit) at end of period
|
|
$
|
(14,030
|
)
|
$
|
(10,449
|
)
|
|
|
|
November 30,
|
|||||||
|
2011
|
2010
|
||||||
Accumulated benefit obligation
|
|
$
|
50,487
|
|
$
|
45,535
|
|
|
Projected benefit obligation for service rendered to date
|
|
50,487
|
|
45,535
|
|
|||
Plan assets, at fair value
|
|
36,457
|
|
35,086
|
|
|||
|
||||||||
Funded deficit
|
|
(14,030
|
)
|
(10,449
|
)
|
|||
Unrecognized net loss
|
|
18,649
|
|
13,925
|
|
|||
|
||||||||
Prepaid benefit cost
|
|
4,619
|
|
3,476
|
|
|||
Accumulated other comprehensive loss, before taxes
|
|
(18,649
|
)
|
(13,925
|
)
|
|||
|
||||||||
Pension liability
|
|
$
|
(14,030
|
)
|
$
|
(10,449
|
)
|
|
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Components of Net Periodic Pension Cost
|
|
|||||||||||
Service cost
|
|
$
|
175
|
|
$
|
183
|
|
$
|
200
|
|
||
Interest cost on projected benefit obligation
|
|
2,366
|
|
2,233
|
|
2,586
|
|
|||||
Expected return on plan assets
|
|
(2,578
|
)
|
(2,382
|
)
|
(2,417
|
)
|
|||||
Net amortization
|
|
894
|
|
635
|
|
906
|
|
|||||
Settlement losses(1)
|
|
—
|
|
—
|
|
835
|
|
|||||
|
||||||||||||
Net periodic pension cost
|
|
$
|
857
|
|
$
|
669
|
|
$
|
2,110
|
|
||
|
(1)
|
Of the $2.1 million in net periodic pension cost for the twelve months ended December 31, 2009, $0.8 million is due to previously unrecognized losses associated with the projected pension obligation as the cost of all settlements in 2009 for terminated employees exceeded current year interest and service costs.
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Amounts Recognized in Other Comprehensive Income
|
|
|||||||||||
Net loss (gain) arising during the period
|
|
$
|
5,618
|
|
$
|
2,556
|
|
$
|
(271
|
)
|
||
Settlements during the period
|
|
—
|
|
—
|
|
(835
|
)
|
|||||
Amortization of net loss
|
|
(894
|
)
|
(635
|
)
|
(906
|
)
|
|||||
|
||||||||||||
Total recognized in Other Comprehensive Income
|
|
$
|
4,724
|
|
$
|
1,921
|
|
$
|
(2,012
|
)
|
||
|
||||||||||||
Net amount recognized in net periodic benefit cost and Other Comprehensive Income
|
|
$
|
5,581
|
|
$
|
2,590
|
|
$
|
98
|
|
||
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Discount rate
|
|
4.75
|
%
|
5.25
|
%
|
5.75
|
%
|
|||||
Expected long-term rate of return on plan assets
|
|
7.0
|
%
|
7.5
|
%
|
7.5
|
%
|
2012
|
|
$
|
2,534
|
|
2013
|
|
1,460
|
|
|
2014
|
|
1,883
|
|
|
2015
|
|
1,777
|
|
|
2016
|
|
3,741
|
|
|
2017 through 2021
|
|
13,097
|
|
|
As of November 30, 2011
|
|||||||||||
|
Level 1
|
|
Level 2
|
|
Total
|
|||||||
Plan assets(1):
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
$
|
795
|
|
|
$
|
—
|
|
|
$
|
795
|
|
Listed equity securities(2)
|
|
17,974
|
|
|
—
|
|
|
17,974
|
|
|||
Fixed income securities:
|
|
|
|
|||||||||
Corporate debt securities
|
|
—
|
|
|
5,969
|
|
|
5,969
|
|
|||
Foreign corporate debt securities
|
|
—
|
|
|
927
|
|
|
927
|
|
|||
U.S. government securities
|
|
4,325
|
|
|
—
|
|
|
4,325
|
|
|||
Agency mortgage-backed securities
|
|
—
|
|
|
3,809
|
|
|
3,809
|
|
|||
Commercial mortgage-backed securities
|
|
—
|
|
|
2,093
|
|
|
2,093
|
|
|||
Asset-backed securities
|
|
—
|
|
|
547
|
|
|
547
|
|
|||
Other
|
|
—
|
|
|
18
|
|
|
18
|
|
|||
|
|
|
||||||||||
|
$
|
23,094
|
|
|
$
|
13,363
|
|
|
$
|
36,457
|
|
|
|
|
|
(1)
|
There are no plan assets classified within Level 3 of the fair value hierarchy.
|
(2)
|
Listed equity securities are diversified across a spectrum of primarily U.S. large-cap companies.
|
|
As of November 30, 2010
|
|||||||||||
|
Level 1
|
|
Level 2
|
|
Total
|
|||||||
Plan assets (1):
|
|
|
|
|||||||||
Cash and cash equivalents
|
|
$
|
539
|
|
|
$
|
—
|
|
|
$
|
539
|
|
Listed equity securities(2)
|
|
17,804
|
|
|
—
|
|
|
17,804
|
|
|||
Fixed income securities:
|
|
|
|
|||||||||
Corporate debt securities
|
|
—
|
|
|
5,841
|
|
|
5,841
|
|
|||
Foreign corporate debt securities
|
|
—
|
|
|
1,017
|
|
|
1,017
|
|
|||
U.S. government securities
|
|
4,607
|
|
|
—
|
|
|
4,607
|
|
|||
Agency mortgage-backed securities
|
|
—
|
|
|
3,234
|
|
|
3,234
|
|
|||
Commercial mortgage-backed securities
|
|
—
|
|
|
1,385
|
|
|
1,385
|
|
|||
Asset-backed securities
|
|
—
|
|
|
582
|
|
|
582
|
|
|||
Other
|
|
—
|
|
|
77
|
|
|
77
|
|
|||
|
|
|
||||||||||
|
$
|
22,950
|
|
|
$
|
12,136
|
|
|
$
|
35,086
|
|
|
|
|
|
(1)
|
There are no plan assets classified within Level 3 of the fair value hierarchy.
|
(2)
|
Listed equity securities are diversified across a spectrum of primarily U.S. large-cap companies.
|
•
|
Cash equivalents are valued at cost, which approximates fair value and are categorized in Level 1 of the fair value hierarchy;
|
•
|
Listed equity securities are valued using the quoted prices in active markets for identical assets;
|
•
|
Fixed income securities:
|
•
|
Corporate debt, mortgage- and asset-backed securities and other securities valuations use data readily available to all market participants and use inputs available for substantially the full term of the security. Valuation inputs include benchmark yields, reported trades, broker dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers, reference data, and industry and economic events;
|
•
|
U.S. government and agency securities valuations generally include quoted bid prices in active markets for identical or similar assets.
|
|
Five Months Ended
November 30,
2011
|
|||
Change in Projected Benefit Obligation
|
|
|||
Projected benefit obligation, July 1, 2011
|
|
$
|
21,840
|
|
Service cost
|
|
15
|
|
|
Interest cost
|
|
434
|
|
|
Actuarial gain
|
|
(414
|
)
|
|
Benefits paid
|
|
(471
|
)
|
|
Currency adjustment
|
|
(1,605
|
)
|
|
|
||||
Projected benefit obligation, November 30, 2011
|
|
$
|
19,799
|
|
|
|
Five Months Ended
November 30,
2011
|
|||
Components of Net Periodic Pension Cost
|
|
|||
Service cost
|
|
$
|
15
|
|
Interest cost on projected benefit obligation
|
|
434
|
|
|
|
||||
Net periodic pension cost
|
|
$
|
449
|
|
|
|
Projected
benefit
obligation
|
Net periodic
pension benefit
cost
|
||||||
Discount rate
|
|
5.60
|
%
|
5.30
|
%
|
|||
Rate of compensation increase
|
|
3.00
|
%
|
3.00
|
%
|
2012
|
|
$
|
1,176
|
|
2013
|
|
1,198
|
|
|
2014
|
|
1,271
|
|
|
2015
|
|
1,310
|
|
|
2016
|
|
1,349
|
|
|
2017 through 2021
|
|
6,743
|
|
|
Twelve Months Ended
November 30, 2011
|
Weighted
Average Grant
Date Fair Value
|
||||||
Restricted stock
|
|
|||||||
Balance, beginning of period
|
|
4,918
|
|
$
|
22.82
|
|
||
Grants(1)
|
|
12,222
|
|
$
|
13.75
|
|
||
Forfeited
|
|
(92
|
)
|
$
|
23.30
|
|
||
Fulfillment of service requirement(1)
|
|
(8,016
|
)
|
$
|
13.23
|
|
||
|
||||||||
Balance, end of period(2)
|
|
9,032
|
|
$
|
19.05
|
|
||
|
(1)
|
Includes approximately 6.8 million shares of restricted stock granted with no future service requirements during the twelve months ended November 30, 2011. These shares are shown as granted and vested during the period. The weighted average grant date fair value of these shares was approximately $11.60.
|
(2)
|
Represents restricted stock with a future service requirement.
|
|
Twelve Months Ended
November 30, 2011
|
Weighted Average
Grant Date Fair Value
|
||||||||||||||
|
Future
Service
Required
|
No Future
Service
Required
|
Future
Service
Required
|
|
No Future
Service
Required
|
|||||||||||
Restricted stock units
|
|
|
||||||||||||||
Balance, beginning of period
|
|
3,998
|
|
24,730
|
|
$
|
24.04
|
|
|
$
|
14.74
|
|
||||
Grants
|
|
1,377
|
|
480
|
(1)
|
$
|
20.97
|
|
|
$
|
18.40
|
|
||||
Distribution of underlying shares
|
|
—
|
|
(6,315
|
)
|
$
|
—
|
|
|
$
|
17.00
|
|
||||
Forfeited
|
|
(15
|
)
|
(293
|
)
|
$
|
16.54
|
|
|
$
|
19.07
|
|
||||
Fulfillment of service requirement
|
|
(392
|
)
|
392
|
|
$
|
20.04
|
|
|
$
|
20.04
|
|
||||
|
|
|||||||||||||||
Balance, end of period
|
|
4,968
|
|
18,994
|
|
$
|
23.53
|
|
|
$
|
14.12
|
|
||||
|
|
(1)
|
Includes approximately 441,000 dividend equivalents declared on restricted stock units during the twelve months ended November 30, 2011. The weighted average grant date fair value of these dividend equivalents was approximately $18.42.
|
|
Twelve Months Ended
November 30, 2011
|
|||||||
|
Options
|
Weighted
Average
Exercise Price
|
||||||
Outstanding at beginning of period
|
|
26
|
|
$
|
9.89
|
|
||
Exercised
|
|
(12
|
)
|
$
|
8.03
|
|
||
|
||||||||
Outstanding at end of period
|
|
14
|
|
$
|
11.44
|
|
||
|
||||||||
Options exercisable at end of period
|
|
14
|
|
$
|
11.44
|
|
November 30, 2011
|
|
Outstanding,
Net of Expected
Forfeitures
|
|
Options
Exercisable
|
||||
|
Dollars and shares in thousands,
except per share data
|
|||||||
Number of options
|
|
14
|
|
|
14
|
|
||
Weighted-average exercise price
|
|
11.44
|
|
|
11.44
|
|
||
Aggregate intrinsic value
|
|
0
|
|
|
0
|
|
||
Weighted-average remaining contractual term, in years
|
|
0.86
|
|
|
0.86
|
|
|
Twelve Months
Ended
November 30,
2011
|
|
Eleven Months
Ended
November 30,
2010
|
|
Twelve Months
Ended
December 31,
2009
|
|||||||
Earnings for basic earnings per common share:
|
|
|
|
|||||||||
Net earnings
|
|
$
|
286,368
|
|
|
$
|
240,267
|
|
|
$
|
311,819
|
|
Net earnings to noncontrolling interests
|
|
1,750
|
|
|
16,601
|
|
|
36,537
|
|
|||
|
|
|
||||||||||
Net earnings to common shareholders
|
|
284,618
|
|
|
223,666
|
|
|
275,282
|
|
|||
Less: Allocation of earnings to participating securities(1)
|
|
13,822
|
|
|
8,069
|
|
|
2,272
|
|
|||
|
|
|
||||||||||
Net earnings available to common shareholders
|
|
$
|
270,796
|
|
|
$
|
215,597
|
|
|
$
|
273,010
|
|
|
|
|
||||||||||
Earnings for diluted earnings per common share:
|
|
|
|
|||||||||
Net earnings
|
|
$
|
286,368
|
|
|
$
|
240,267
|
|
|
$
|
311,819
|
|
Net earnings to noncontrolling interests
|
|
1,750
|
|
|
16,601
|
|
|
36,537
|
|
|||
|
|
|
||||||||||
Net earnings to common shareholders
|
|
284,618
|
|
|
223,666
|
|
|
275,282
|
|
|||
Add: Convertible preferred stock dividends
|
|
4,063
|
|
|
3,724
|
|
|
4,063
|
|
|||
Less: Allocation of earnings to participating securities(1)
|
|
13,823
|
|
|
8,084
|
|
|
2,260
|
|
|||
|
|
|
||||||||||
Net earnings available to common shareholders
|
|
$
|
274,858
|
|
|
$
|
219,306
|
|
|
$
|
277,085
|
|
|
|
|
||||||||||
Shares:
|
|
|
|
|||||||||
Average common shares used in basic computation
|
|
211,056
|
|
|
196,393
|
|
|
200,446
|
|
|||
Stock options
|
|
7
|
|
|
13
|
|
|
21
|
|
|||
Mandatorily redeemable convertible preferred stock
|
|
4,108
|
|
|
4,105
|
|
|
4,105
|
|
|||
Convertible debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
||||||||||
Average common shares used in diluted computation
|
|
215,171
|
|
|
200,511
|
|
|
204,572
|
|
|||
|
|
|
||||||||||
Earnings per common share:
|
|
|
|
|||||||||
Basic
|
|
$
|
1.28
|
|
|
$
|
1.10
|
|
|
$
|
1.36
|
|
Diluted
|
|
$
|
1.28
|
|
|
$
|
1.09
|
|
|
$
|
1.35
|
|
(1)
|
Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Losses are not allocated to participating securities. Participating securities represent restricted stock and restricted stock units for which requisite service has not yet been rendered and amounted to weighted average shares of 10,667,000, 7,285,000 and 1,668,000 for the twelve months ended November 30, 2011, eleven months ended November 30, 2010 and twelve months ended December 31, 2009, respectively. Dividends declared on participating securities during the twelve months ended November 30, 2011 and eleven months ended November 30, 2010 amounted to approximately $3.4 million and $2.3 million, respectively. No dividends were declared during 2009. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.
|
|
1st
Quarter
|
|
2nd
Quarter
|
|
3rd
Quarter
|
|
4th
Quarter
|
|||||||||
2011
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
2010
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Income tax expense
|
|
$
|
132,966
|
|
$
|
156,404
|
|
$
|
195,928
|
|
||
Stockholders’ equity, for compensation expense for tax purposes (in excess of)/ less than amounts recognized for financial reporting purposes
|
|
(32,200
|
)
|
(2,965
|
)
|
14,606
|
|
|||||
|
||||||||||||
|
$
|
100,766
|
|
$
|
153,439
|
|
$
|
210,534
|
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Current:
|
|
|||||||||||
Federal
|
|
$
|
65,702
|
|
$
|
123,352
|
|
$
|
128,506
|
|
||
State and local
|
|
28,644
|
|
36,379
|
|
34,191
|
|
|||||
Foreign
|
|
8,443
|
|
(7,716
|
)
|
23,084
|
|
|||||
|
||||||||||||
|
102,789
|
|
152,015
|
|
185,781
|
|
||||||
|
||||||||||||
Deferred:
|
|
|||||||||||
Federal
|
|
7,637
|
|
(15,275
|
)
|
17,032
|
|
|||||
State and local
|
|
(694
|
)
|
388
|
|
8,018
|
|
|||||
Foreign
|
|
23,234
|
|
19,276
|
|
(14,903
|
)
|
|||||
|
||||||||||||
|
30,177
|
|
4,389
|
|
10,147
|
|
||||||
|
||||||||||||
|
$
|
132,966
|
|
$
|
156,404
|
|
$
|
195,928
|
|
|||
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||
Computed expected income taxes
|
|
$
|
146,767
|
|
35.0
|
%
|
$
|
138,835
|
|
35.0
|
%
|
$
|
177,711
|
|
35.0
|
%
|
||||||||
Increase (decrease) in income taxes resulting from:
|
|
|||||||||||||||||||||||
State and city income taxes, net of Federal income tax benefit
|
|
18,168
|
|
4.3
|
|
23,899
|
|
6.0
|
|
27,436
|
|
5.4
|
|
|||||||||||
Bargain purchase gain on the acquisition of the Global Commodities Group
|
|
(18,363
|
)
|
(4.4
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||
Noncontrolling interest, not subject to tax
|
|
(613
|
)
|
(0.1
|
)
|
(5,810
|
)
|
(1.5
|
)
|
(12,788
|
)
|
(2.5
|
)
|
|||||||||||
Foreign income
|
|
(11,736
|
)
|
(2.8
|
)
|
525
|
|
0.1
|
|
388
|
|
0.1
|
|
|||||||||||
Other, net
|
|
(1,257
|
)
|
(0.3
|
)
|
(1,045
|
)
|
(0.2
|
)
|
3,181
|
|
0.6
|
|
|||||||||||
|
||||||||||||||||||||||||
Total income taxes
|
|
$
|
132,966
|
|
31.7
|
%
|
$
|
156,404
|
|
39.4
|
%
|
$
|
195,928
|
|
38.6
|
%
|
||||||||
|
|
Twelve Months
Ended
November 30,
2011
|
Eleven Months
Ended
November 30,
2010
|
Twelve Months
Ended
December 31,
2009
|
|||||||||
Balance at beginning of period
|
|
$
|
52,852
|
|
$
|
24,153
|
|
$
|
13,485
|
|
||
Increases based on tax positions related to the current period
|
|
14,159
|
|
22,198
|
|
10,769
|
|
|||||
Increases based on tax positions related to prior periods
|
|
14,696
|
|
6,753
|
|
1,136
|
|
|||||
Decreases based on tax positions related to prior periods
|
|
(1,808
|
)
|
(252
|
)
|
—
|
|
|||||
Decreases related to settlements with taxing authorities
|
|
(120
|
)
|
—
|
|
(969
|
)
|
|||||
Decreases related to a lapse of applicable statute of limitations
|
|
—
|
|
—
|
|
(268
|
)
|
|||||
|
||||||||||||
Balance at end of period
|
|
$
|
79,779
|
|
$
|
52,852
|
|
$
|
24,153
|
|
||
|
Jurisdiction
|
Tax Year
|
United States
|
2006
|
United Kingdom
|
2008
|
California
|
2004
|
Connecticut
|
2000
|
Massachusetts
|
2006
|
New Jersey
|
2007
|
New York State
|
2001
|
New York City
|
2003
|
|
November 30,
|
|||||||
|
2011
|
2010
|
||||||
Deferred tax assets:
|
|
|||||||
Compensation
|
|
$
|
390,831
|
|
$
|
386,702
|
|
|
Net operating loss
|
|
12,384
|
|
19,074
|
|
|||
Other
|
|
31,732
|
|
34,707
|
|
|||
|
||||||||
Sub-total
|
|
434,947
|
|
440,483
|
|
|||
Valuation allowance
|
|
(11,950
|
)
|
(8,326
|
)
|
|||
|
||||||||
Total deferred tax assets
|
|
422,997
|
|
432,157
|
|
|||
|
||||||||
Deferred tax liabilities:
|
|
|||||||
Long-term debt
|
|
31,727
|
|
30,889
|
|
|||
Amortization of intangibles
|
|
52,623
|
|
45,663
|
|
|||
Other
|
|
27,575
|
|
16,759
|
|
|||
|
||||||||
Total deferred tax liabilities
|
|
111,925
|
|
93,311
|
|
|||
|
||||||||
Net deferred tax asset, included in other assets
|
|
$
|
311,072
|
|
$
|
338,846
|
|
|
|
|
Expected Maturity Date
|
|
||||||||||||||||||||||
|
2012
|
|
2013
|
|
2014
and
2015
|
|
2016
and
2017
|
|
2018
and
Later
|
|
Maximum
Payout
|
|||||||||||||
Equity commitments
|
|
$
|
0.7
|
|
|
$
|
1.3
|
|
|
$
|
8.4
|
|
|
$
|
—
|
|
|
$
|
585.1
|
|
|
$
|
595.5
|
|
Loan commitments
|
|
44.7
|
|
|
76.7
|
|
|
418.3
|
|
|
19.9
|
|
|
42.8
|
|
|
602.4
|
|
||||||
Mortgage-related commitments
|
|
437.6
|
|
|
—
|
|
|
990.2
|
|
|
—
|
|
|
—
|
|
|
1,427.8
|
|
||||||
Forward starting repos
|
|
424.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
424.3
|
|
||||||
|
|
|
|
|
|
|||||||||||||||||||
|
$
|
907.3
|
|
|
$
|
78.0
|
|
|
$
|
1,416.9
|
|
|
$
|
19.9
|
|
|
$
|
627.9
|
|
|
$
|
3,050.0
|
|
|
|
|
|
|
|
|
Credit Ratings
|
|
0 - 12
Months
|
|
1 - 5
Years
|
|
Greater
Than
5 Years
|
|
Total
Corporate
Lending
Exposure(1)
|
|
Corporate
Lending
Exposure at
Fair Value(2)
|
|
Corporate
Lending
Commitments
(3)
|
||||||||||||
A
|
|
$
|
10.0
|
|
|
$
|
—
|
|
|
$
|
20.0
|
|
|
$
|
30.0
|
|
|
$
|
0.5
|
|
|
$
|
29.5
|
|
BBB
|
|
15.0
|
|
|
42.2
|
|
|
—
|
|
|
57.2
|
|
|
3.8
|
|
|
53.4
|
|
||||||
Non-investment grade
|
|
32.6
|
|
|
69.6
|
|
|
40.0
|
|
|
142.2
|
|
|
27.4
|
|
|
114.8
|
|
||||||
Unrated
|
|
—
|
|
|
638.6
|
|
|
—
|
|
|
638.6
|
|
|
233.9
|
|
|
404.7
|
|
||||||
|
|
|
|
|
|
|||||||||||||||||||
Total
|
|
$
|
57.6
|
|
|
$
|
750.4
|
|
|
$
|
60.0
|
|
|
$
|
868.0
|
|
|
$
|
265.6
|
|
|
$
|
602.4
|
|
|
|
|
|
|
|
(1)
|
Total corporate lending exposure represents the potential loss assuming the fair value of funded loans and lending commitments were zero.
|
(2)
|
The corporate lending exposure carried at fair value includes $265.6 million of funded loans included in Financial instruments owned — Loans and a $4.8 million credit related to lending commitments recorded in Financial instruments sold — Derivatives in the Consolidated Statement of Financial Condition as of November 30, 2011.
|
(3)
|
Amounts represent the notional amount of lending commitments less the amount of funded commitments reflected in the Consolidated Statements of Financial Condition.
|
Fiscal Year
|
|
Gross
|
|
Sub-Leases
|
|
Net
|
||||||
2012
|
|
$
|
60,330
|
|
|
$
|
6,118
|
|
|
$
|
54,212
|
|
2013
|
|
57,009
|
|
|
5,437
|
|
|
51,572
|
|
|||
2014
|
|
48,849
|
|
|
4,988
|
|
|
43,861
|
|
|||
2015
|
|
27,887
|
|
|
2,372
|
|
|
25,515
|
|
|||
2016
|
|
24,413
|
|
|
2,221
|
|
|
22,192
|
|
|||
Thereafter
|
|
94,459
|
|
|
300
|
|
|
94,159
|
|
|||
|
|
|
||||||||||
Total
|
|
$
|
312,947
|
|
|
$
|
21,436
|
|
|
$
|
291,511
|
|
|
|
|
|
Expected Maturity Date
|
|
||||||||||||||||||||||
Guarantee Type
|
|
2012
|
|
2013
|
|
2014
and
2015
|
|
2016
and
2017
|
|
2018
and
Later
|
|
Notional/
Maximum
Payout
|
||||||||||||
Derivative contracts — non-credit related
|
|
$
|
32,826.7
|
|
|
$
|
1,154.7
|
|
|
$
|
47,140.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
81,121.6
|
|
Derivative contracts — credit related
|
|
—
|
|
|
—
|
|
|
5.0
|
|
|
270.3
|
|
|
40.0
|
|
|
315.3
|
|
||||||
|
|
|
|
|
|
|||||||||||||||||||
Total derivative contracts
|
|
$
|
32,826.7
|
|
|
$
|
1,154.7
|
|
|
$
|
47,145.2
|
|
|
$
|
270.3
|
|
|
$
|
40.0
|
|
|
$
|
81,436.9
|
|
|
|
|
|
|
|
|
External Credit Rating
|
|
||||||||||||||||||||||
|
AAA/
Aaa
|
|
AA/
Aa
|
|
A
|
|
Below
Investment
Grade
|
|
Unrated
|
|
Notional/
Maximum
Payout
|
|||||||||||||
Credit related derivative contracts:
|
|
|
|
|
|
|
||||||||||||||||||
Index credit default swaps
|
|
$
|
20.0
|
|
|
$
|
10.0
|
|
|
$
|
235.0
|
|
|
$
|
10.0
|
|
|
$
|
40.3
|
|
|
$
|
315.3
|
|
|
Net Capital
|
|
Excess Net
Capital
|
|||||
Jefferies
|
|
$
|
931,336
|
|
|
$
|
883,528
|
|
Jefferies Execution
|
|
$
|
16,226
|
|
|
$
|
15,976
|
|
Jefferies High Yield Trading
|
|
$
|
519,967
|
|
|
$
|
519,717
|
|
|
Adjusted Net
Capital
|
|
Excess Net
Capital
|
|||||
Jefferies Bache, LLC
|
|
$
|
264,392
|
|
|
$
|
112,350
|
|
•
|
Net revenues and expenses directly associated with each reportable business segment are included in determining earnings before taxes.
|
•
|
Net revenues and expenses not directly associated with specific reportable business segments are allocated based on the most relevant measures applicable, including each reportable business segment’s net revenues, headcount and other factors.
|
•
|
Reportable business segment assets include an allocation of indirect corporate assets that have been fully allocated to our reportable business segments, generally based on each reportable business segment’s capital utilization.
|
|
Twelve Months
Ended
November 30, 2011
|
|
Eleven Months
Ended
November 30, 2010
|
|
Twelve Months
Ended
December 31, 2009
|
|||||||
Capital Markets:
|
|
|
|
|||||||||
Net revenues
|
|
$
|
2,502.6
|
|
|
$
|
2,175.5
|
|
|
$
|
2,127.4
|
|
Expenses
|
|
$
|
2,095.0
|
|
|
$
|
1,751.4
|
|
|
$
|
1,587.5
|
|
Asset Management:
|
|
|
|
|||||||||
Net revenues
|
|
$
|
46.2
|
|
|
$
|
16.8
|
|
|
$
|
35.9
|
|
Expenses
|
|
$
|
30.9
|
|
|
$
|
29.3
|
|
|
$
|
30.8
|
|
Total:
|
|
|
|
|||||||||
Net revenues
|
|
$
|
2,548.8
|
|
|
$
|
2,192.3
|
|
|
$
|
2,163.3
|
|
Expenses
|
|
$
|
2,125.9
|
|
|
$
|
1,780.7
|
|
|
$
|
1,618.3
|
|
|
November 30, 2011
|
|
November 30, 2010
|
|
December 31, 2009
|
|||||||
Segment Assets:
|
|
|
|
|||||||||
Capital Markets
|
|
$
|
34,946.1
|
|
|
$
|
36,510.5
|
|
|
$
|
27,947.3
|
|
Asset Management
|
|
25.4
|
|
|
216.0
|
|
|
173.7
|
|
|||
|
|
|
||||||||||
Total assets
|
|
$
|
34,971.4
|
|
|
$
|
36,726.5
|
|
|
$
|
28,121.0
|
|
|
|
|
|
Twelve Months
Ended
November 30, 2011
|
|
Eleven Months
Ended
November 30, 2010
|
|
Twelve Months
Ended
December 31, 2009
|
|||||||
Americas(1)
|
|
$
|
2,027,887
|
|
|
$
|
1,882,764
|
|
|
$
|
1,895,479
|
|
Europe(2)
|
|
494,917
|
|
|
300,405
|
|
|
266,440
|
|
|||
Asia (including Middle East)
|
|
26,009
|
|
|
9,081
|
|
|
1,342
|
|
|||
|
|
|
||||||||||
Net revenues
|
|
$
|
2,548,813
|
|
|
$
|
2,192,250
|
|
|
$
|
2,163,261
|
|
|
|
|
(1)
|
Substantially all relates to U.S. results.
|
(2)
|
Substantially all relates to U.K. results.
|
|
Three Months Ended
|
|||||||||||||||
|
February 28,
2011
|
|
May 31,
2011
|
|
August 31,
2011
|
|
November 30,
2011
|
|||||||||
Total revenues
|
|
$
|
966,676
|
|
|
$
|
970,117
|
|
|
$
|
794,104
|
|
|
$
|
798,740
|
|
Net revenues
|
|
758,382
|
|
|
727,165
|
|
|
509,282
|
|
|
533,983
|
|
||||
Earnings before income taxes
|
|
162,931
|
|
|
130,484
|
|
|
55,238
|
|
|
70,680
|
|
||||
Earnings to common shareholders
|
|
87,341
|
|
|
80,616
|
|
|
68,275
|
|
|
48,386
|
|
||||
Earnings per common share:
|
|
|
|
|
||||||||||||
Basic
|
|
$
|
0.42
|
|
|
$
|
0.36
|
|
|
$
|
0.30
|
|
|
$
|
0.21
|
|
|
|
|
|
|||||||||||||
Diluted
|
|
$
|
0.42
|
|
|
$
|
0.36
|
|
|
$
|
0.30
|
|
|
$
|
0.21
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended
|
|||||||||||||||
|
March 31,
2010(1)(2)
|
|
May 31,
2010(1)(2)
|
|
August 31,
2010(2)
|
|
November 30,
2010
|
|||||||||
Total revenues
|
|
$
|
725,368
|
|
|
$
|
832,040
|
|
|
$
|
693,030
|
|
|
$
|
851,913
|
|
Net revenues
|
|
580,055
|
|
|
667,536
|
|
|
517,269
|
|
|
679,812
|
|
||||
Earnings before income taxes
|
|
122,456
|
|
|
143,680
|
|
|
76,498
|
|
|
123,578
|
|
||||
Earnings to common shareholders
|
|
72,144
|
|
|
83,826
|
|
|
44,754
|
|
|
62,717
|
|
||||
Earnings per common share:
|
|
|
|
|
||||||||||||
Basic
|
|
$
|
0.35
|
|
|
$
|
0.41
|
|
|
$
|
0.22
|
|
|
$
|
0.31
|
|
|
|
|
|
|||||||||||||
Diluted
|
|
$
|
0.35
|
|
|
$
|
0.41
|
|
|
$
|
0.22
|
|
|
$
|
0.31
|
|
|
|
|
|
(1)
|
The three months ended March 31, 2010 and May 31, 2010 both include the Total revenues and earnings for the month ended March 31, 2010.
|
(2)
|
As reported in Transition Report on Form 10-K for the eleven months ended November 30, 2010, adjustments were made to amounts presented for the quarters of 2010 and 2009 relating to differences between our records and the final statement of our clearing bank involving a portion of our fixed income business that we are now self-clearing. The fourth quarter of 2010 includes $13.8 million relating to a difference between our records and the final statement of our clearing bank the cause and period of origin remained unidentified; the amount was written off as a reduction in Principal revenue in the fourth quarter of 2010. The adjustments to Net earnings, on an after tax basis, to that previously reported for the quarters in 2010 are set forth below:
|
|
Three Months Ended
|
|||||||||||
Increase (decrease) in
Net earnings to
common shareholders
|
|
March 31,
2010
|
May 31,
2010
|
August 31,
2010
|
||||||||
|
(in thousands)
|
|||||||||||
Previously reported Net earnings to common shareholders
|
|
$
|
74,066
|
|
$
|
84,832
|
|
$
|
46,256
|
|
||
Differences with clearing bank
|
|
(1,288
|
)
|
(766
|
)
|
(1,738
|
)
|
|||||
Other items(1)
|
|
(634
|
)
|
(240
|
)
|
236
|
|
|||||
|
||||||||||||
Total adjustments
|
|
(1,922
|
)
|
(1,006
|
)
|
(1,502
|
)
|
|||||
|
||||||||||||
Adjusted Net earnings to common shareholders
|
|
$
|
72,144
|
|
$
|
83,826
|
|
$
|
44,754
|
|
||
|
(1)
|
Other items — Includes the effect of certain other immaterial adjustments.
|