# EDGAR Filing Document

**Accession Number:** 0000096223
**File Stem:** 0000096223-23-000004
**Filing Date:** 2023-1
**Character Count:** 41640
**Document Hash:** 9886a0e4f15e4eea4d543910f3fc5f91
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000096223-23-000004.hdr.sgml**: 20230109

**ACCESSION NUMBER**: 0000096223-23-000004

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230109

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230109

**DATE AS OF CHANGE**: 20230109

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Jefferies Financial Group Inc.
- **CENTRAL INDEX KEY:** 0000096223
- **STANDARD INDUSTRIAL CLASSIFICATION:** SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
- **IRS NUMBER:** 132615557
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1130

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-05721
- **FILM NUMBER:** 23518964

**BUSINESS ADDRESS:**
- **STREET 1:** 520 MADISON AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022
- **BUSINESS PHONE:** 2124601900

**MAIL ADDRESS:**
- **STREET 1:** 520 MADISON AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LEUCADIA NATIONAL CORP
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TALCOTT NATIONAL CORP
- **DATE OF NAME CHANGE:** 19800603

?xml version="1.0" ? jef-20230109

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

________________________________

**FORM 8-K** 

________________________________

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d)** 

**of the Securities Exchange Act of 1934**

Date of Report (date of earliest event reported): January 9, 2023

________________________________

**JEFFERIES FINANCIAL GROUP INC.**

**(Exact name of registrant as specified in its charter)**

________________________________

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| | | | |
|:---|:---|:---|:---|
| **Delaware** | **001-14947** | **001-14947** | **13-2615557** |
| **(State or other jurisdiction of incorporation or organization)** | **(Commission File Number)** | **(Commission File Number)** | **(I.R.S. Employer Identification No.)** |
| **520 Madison Avenue** | **New York,** | **New York** | **10022** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (212) 243-2300** 

**(Former name or former address, if changed since last report)**

______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Common Shares, par value $1 per share** | **JEF** | **New York Stock Exchange** |
| **4.850% Senior Notes Due 2027** | **JEF/27A** | **New York Stock Exchange** |
| **2.750% Senior Notes Due 2032** | **JEF/32A** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02. Results of Operations and Financial Condition**

On January 9, 2023, we issued a press release containing financial results for our quarter and year ended November 30, 2022. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein by reference.

The information provided in this Item 2.02, including the exhibits hereto, is intended to be "furnished" and shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.

**Item 9.01. Financial Statements and Exhibits**

The following exhibits are furnished with this report:

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| | |
|:---|:---|
| <u>Exhibit No.</u> | <u>Description</u> |
| 99 | <u>[Press Release of Jefferies Financial Group Inc. - Quarter and](jfgpressrelease11-30x22.htm)[y](jfgpressrelease11-30x22.htm)[ear](jfgpressrelease11-30x22.htm)[ended](jfgpressrelease11-30x22.htm)[November 30](jfgpressrelease11-30x22.htm)[, 2022 Results](jfgpressrelease11-30x22.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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***SIGNATURES***

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 9, 2023

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| | |
|:---|:---|
| JEFFERIES FINANCIAL GROUP INC. | JEFFERIES FINANCIAL GROUP INC. |
| By: | /s/ Michael J. Sharp |
| Name: | Michael J. Sharp |
| Title: | Executive Vice President and General Counsel |

---

## Ex-99

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| | |
|:---|:---|
| ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) | FOR MORE INFORMATION<br>Jonathan Freedman 212.778.8913 |

---

For Immediate Release

Jefferies Financial Group Inc. (NYSE: JEF)

January 9, 2023

![linejpega.jpg](linejpega.jpg)

Jefferies Announces Fourth Quarter 2022 Financial Results

Q4 Financial Highlights

• Net earnings attributable to common shareholders of $140 million, or $0.57 per diluted share

• Annualized return on adjusted tangible equity of 7.2%<sup>1</sup>

• Total net revenues of $1.44 billion

⮚Investment Banking net revenues of $568 million

⮚Capital Markets net revenues of $478 million

⮚Asset Management net revenues (before allocated net interest<sup>2</sup>) of $402 million, inclusive of $232 million of net revenues from merchant banking activities

• Repurchased 3.9 million shares of common stock for $121 million, or an average price of $31.24 per share

• Our Board of Directors has increased our share buyback authorization back to a total of $250 million

• On November 1, 2022, we completed our merger with Jefferies Group LLC. This merger eliminated Jefferies Group LLC's requirement to file Form 10-Qs, Form 10-Ks, and other duplicative processes, and resulted in us assuming Jefferies Group's debt obligations. In connection with the merger we have transferred our legacy merchant banking investments to our Investment Banking and Capital Markets or Asset Management segment and have reorganized the presentation of our segments and Net revenues to align with the way we are now managing our business. Additionally, corporate activities are now fully allocated to these segments. Prior year amounts have been revised to conform to this current presentation. Refer to Note 18 for further information.

*"Jefferies' 2022 total investment banking revenues, while down 38% from an off-the-charts 2021, represented our second-best year ever and were substantially above 2019 levels. Our advisory net revenues were only 5% below last year's all-time record result, while our underwriting net revenues were down 59%, due to the IPO and leveraged finance markets being substantially closed for much of the year. Our combined equities and fixed income net revenues were down only 19% versus 2021 and up meaningfully versus 2019.*

*"Most significantly, for our fiscal 2022, Jefferies was the #6 largest investment banking firm in both global M&A, as well as global equity capital markets (excluding China), up from #12 and #13, respectively, only five years ago. We also moved up one spot from the prior year to #7 globally in combined M&A, ECM and leveraged finance, an improvement from #10 in 2017. It is worth noting that all the competitors ahead of us on these lists are trillion dollar plus global bank holding companies who often lead with their balance sheet, while Jefferies leads with ideas, expertise and human capital.* 

*"Our Equities franchise continued to expand in breadth and capability, while gaining market share across the majority of equity products in 2022. We achieved a U.S. ranking of #6 and a European ranking of #7 for equity research, while we were ranked #3 best overall in Asia for combined equity research and sales. While our Fixed Income business was down for the year, our fourth quarter was up over 71% and we carried that momentum through the first month of fiscal 2023.*

1 Jefferies Financial Group

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*"Monetizing our legacy merchant banking portfolio and returning capital to shareholders remains one of our overriding priorities, and we made continued progress in 2022. We expect to take a further important step later this week with our spin-off to shareholders of Vitesse Energy ("Vitesse"). In 2022, we returned an aggregate of $1.14 billion to shareholders in the form of $280.1 million in dividends and the repurchase of 25.6 million shares for a total of $859.6 million, or $33.58 per share. Over the last five years, we have now returned $5.0 billion in total capital to shareholders, representing two-thirds of total tangible book value*<sup>3</sup> *at January 1, 2018 and including 152.8 million shares repurchased at an average of $23.57 per share. Further, our Vitesse spin-off delivers to our shareholders an additional estimated more than $500 million of our shareholders' equity. Pro forma for the Vitesse spin-off, we will have returned over $5.5 billion in total capital to shareholders over the last five years, representing over 72% of tangible book value*<sup>3</sup> *at January 1, 2018.*

*"In sum, we achieved a respectable return on adjusted tangible equity of 10.3%*<sup>1</sup> *in a very difficult environment, enhanced our market position in our core businesses and simplified our corporate structure. As we move forward in 2023, we have never been more optimistic about our human capital, product capabilities, industry expertise and geographic breadth, which we intend to continue to aggressively deliver to our clients going forward. Our goal is to continue to gain market share, further strengthening our 'never better' competitive position, and continue our quest to be the best full service global investment banking firm."*

*Richard Handler, CEO, and Brian Friedman, President* 

Please refer to the just-released Jefferies Financial Group Annual Letter from our CEO and President for broader perspective on 2022, as well as our strategy and outlook*.*

Quarterly Cash Dividend

The Jefferies Board of Directors declared a quarterly cash dividend equal to $0.30 per Jefferies common share, payable on February 24, 2023 to record holders of Jefferies common shares on February 13, 2023.

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| | |
|:---|:---|
| 2 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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Financial Summary

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (Dollars in thousands, except per share amounts) | Three Months Ended November 30, | Three Months Ended November 30, |  | Twelve Months Ended November 30, | Twelve Months Ended November 30, |  |
|  | 2022 | 2021<sup>18</sup> | % Change | 2022 | 2021<sup>18</sup> | % Change |
| Net revenues: |  |  |  |  |  |  |
| Investment Banking and Capital Markets | 1046434 | 1615752 | (35)% | 4726150 | 6917774 | (32)% |
| Asset Management | 395228 | 151177 | 161% | 1257693 | 1092624 | 15% |
| Other | (3580) | (8438) | 58% | (5005) | 3428 | N/M |
| Net revenues | **1438082** | **1758491** | **(18)%** | **5978838** | **8013826** | **(25)%** |
| Net earnings before income taxes | 194840 | 425565 | (54)% | 1055562 | 2254105 | (53)% |
| Income tax expense | 53903 | 91973 | (41)% | 273852 | 576729 | (53)% |
| Net earnings | **140937** | **333592** | **(58)%** | **781710** | **1677376** | **(53)%** |
| Net earnings (losses) attributable to noncontrolling interests | (1280) | 6586 | N/M | (2397) | 3850 | N/M |
| Net earnings (loss) attributable to redeemable noncontrolling interests | (101) | 245 | N/M | (1342) | (826) | 62% |
| Preferred stock dividends | 2070 | 1848 | 12% | 8281 | 6949 | 19% |
| **Net earnings attributable to Jefferies Financial Group Inc.** | **140248** | **324913** | **(57)%** | **777168** | **1667403** | **(53)%** |
| Basic earnings per common share | 0.58 | 1.23 | (53)% | 3.13 | 6.29 | (50)% |
| Weighted average shares | 239312 | 261637 |  | 247378 | 263595 |  |
| Diluted earnings per common share | 0.57 | 1.20 | (53)% | 3.06 | 6.13 | (50)% |
| Weighted average diluted shares | 248338 | 270743 |  | 255571 | 271501 |  |
| Annualized return on adjusted tangible equity<sup>1</sup> | 7.2% | 16.5% |  | 10.3% | 24.5% |  |
| Adjusted annualized return on adjusted tangible equity<sup>4</sup> | 7.2% | 16.5% |  | 11.3% | 24.5% |  |

---

N/M — Not Meaningful

Highlights

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| | |
|:---|:---|
| &nbsp;&nbsp;Three Months Ended November 30, 2022 | &nbsp;&nbsp;Twelve Months Ended November 30, 2022 |
| • Net earnings attributable to common shareholders of $140 million, or $0.57 per diluted share.<br>• Repurchased 3.9 million shares of common stock for $121.0 million, or an average price of $31.24 per share.<br>• We had 226.1 million shares outstanding and 254.6 million shares outstanding on a fully diluted basis<sup>5</sup> at November 30, 2022. Our book value per share was $45.25 and tangible book value per fully diluted share<sup>6</sup> was $33.78 at November 30, 2022.<br>• Our Board of Directors has increased our share buyback authorization back to a total of $250 million.<br>• Effective tax rate of 27.7% | • Net earnings attributable to common shareholders of $777 million, or $3.06 per diluted share; adjusted net earnings attributable to common shareholders<sup>8</sup> of $857 million, or $3.37 per diluted share, after removing $80 million of expense related to a regulatory settlement in the third quarter.<br>• Repurchased 25.6 million shares of common stock for $859.6 million, or an average price of $33.58 per share.<br>• Effective tax rate of 25.9%, reflecting non-deductible $80 million regulatory settlement during the year; adjusted effective tax rate<sup>17</sup> of 24.1% without the cost of this settlement. |

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| | |
|:---|:---|
| 3 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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| | |
|:---|:---|
| &nbsp;&nbsp;Three Months Ended November 30, 2022 | &nbsp;&nbsp;Twelve Months Ended November 30, 2022 |
| &nbsp;&nbsp;Investment Banking and Capital Markets | &nbsp;&nbsp;Investment Banking and Capital Markets  |
| • Investment Banking net revenues were $568 million, as our mergers and acquisitions net revenues remained strong. Our debt and equity underwriting net revenues were lower than the same quarter last year, consistent with a reduction in industry-wide deal activity. <br>• Capital Markets net revenues of $478 million were slightly higher as compared to the prior year quarter. Equities net revenues benefited from elevated client trading volumes and market volatility. Fixed Income net revenues reflect robust emerging market trading results partially offset by reduced market activity for various fixed income products. | &nbsp;&nbsp;&nbsp;*•* Investment Banking net revenues of $2.90 billion were driven by near-record advisory net revenues, offset by lower net revenues in debt and equity underwriting, consistent with significant reduced industry activity. <br>*•* Capital Markets net revenues of $1.83 billion were lower as compared to the prior year. Equities net revenues were impacted by significantly reduced trading volumes related to a slowdown in new-issue offerings offset by strong client activity on market volatility and global instability. Fixed Income results were also impacted by significantly reduced trading volumes related to a decline in new-issue activity, lower overall trading volumes, mark-to-market losses on certain mortgage inventory positions and a slowdown in securitization activity in the face of inflation concerns and interest rate uncertainty. |

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| | |
|:---|:---|
| &nbsp;&nbsp;Asset Management  | &nbsp;&nbsp;Asset Management  |
| • Asset Management net revenues reflect a challenging trading environment resulting in modest investment losses offset by the sale of our Oak Hill investment as well as merchant banking revenues, which include revenues from the sale of a multi-family project completed at HomeFed. | • Asset Management net revenues reflect revenues from sales of certain assets, partially offset by lower investment returns as compared to the prior year. |

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\* \* \* \*

Amounts herein pertaining to November 30, 2022 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC"). More information on our results of operations for the year ended November 30, 2022 will be provided upon filing our Annual Report on Form 10-K with the SEC, which we expect to file on or about January 27, 2023.

This press release contains certain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current views and include statements about our future and statements that are not historical facts. These forward-looking statements are usually preceded by the words "should," "expect," "intend," "may," "will," "would," or similar expressions. Forward-looking statements may contain expectations regarding revenues, earnings, operations, and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to our strategies for future development of our businesses and products. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors, including Risk Factors that could cause actual results to differ, perhaps materially, from those in our forward-looking statements is contained in reports we file with the SEC. You should read and interpret any forward-looking statement together with reports we file with the SEC. We undertake no obligation to update or revise any such forward-looking statement to reflect subsequent circumstances.

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s).

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| | |
|:---|:---|
| 4 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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Selected Financial Information

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| | | | |
|:---|:---|:---|:---|
| (Amounts in Thousands, Except Other Data) (Unaudited) | Quarter Ended | Quarter Ended | Quarter Ended |
|  | November 30,<br>2022 | August 31,<br>2022<sup>18</sup> | November 30,<br>2021<sup>18</sup> |
| Net revenues by source: |  |  |  |
| Advisory | $381412 | $481419 | $587476 |
| Equity underwriting | 109439 | 150972 | 370636 |
| Debt underwriting | 61731 | 76943 | 222655 |
| Total underwriting | 171170 | 227915 | 593291 |
| Other investment banking | 15892 | (49222) | 11181 |
| **Total Investment Banking** | 568474 | 660112 | 1191948 |
| Equities | 251280 | 277448 | 291033 |
| Fixed income | 226680 | 174618 | 132771 |
| Total Capital Markets | 477960 | 452066 | 423804 |
| Total Investment Banking and Capital Markets Net revenues<sup>9</sup> | 1046434 | 1112178 | 1615752 |
| Asset management fees and revenues<sup>10</sup> | 13440 | 17069 | 13065 |
| Investment return<sup>2</sup> | 156613 | (35488) | 41554 |
| Merchant banking | 231805 | 430009 | 108472 |
| Allocated net interest<sup>2</sup> | (6630) | (9934) | (11914) |
| Total Asset Management Net revenues  | 395228 | 401656 | 151177 |
| Other | (3580) | (3990) | (8438) |
| Total Net revenues by source | $1438082 | $1509844 | $1758491 |
| **Non-interest expenses:** |  |  |  |
| Compensation and benefits | $659121 | $559593 | $746185 |
| Floor brokerage and clearing fees | 85143 | 84685 | 79652 |
| Underwriting costs | 9076 | 11672 | 26932 |
| Technology and communications | 114957 | 110925 | 103054 |
| Occupancy and equipment rental | 28420 | 26589 | 26027 |
| Business development | 42610 | 36322 | 42381 |
| Professional services | 71042 | 61428 | 58773 |
| Depreciation and amortization | 43471 | 43187 | 40536 |
| Cost of sales | 91281 | 123436 | 79954 |
| Other | 98121 | 150157 | 129432 |
| Total Non-interest expenses | $1243242 | $1207994 | $1332926 |

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| | |
|:---|:---|
| 5 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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| | | |
|:---|:---|:---|
| (Amounts in Thousands, Except Other Data) (Unaudited) | Twelve Months Ended November 30, | Twelve Months Ended November 30, |
|  | 2022 | 2021<sup>18</sup> |
| Net revenues by source: |  |  |
| Advisory | $1778003 | $1873204 |
| Equity underwriting | 538946 | 1557364 |
| Debt underwriting | 490873 | 935131 |
| Total underwriting | 1029819 | 2492495 |
| Other investment banking | 92170 | 291423 |
| Total Investment Banking | 2899992 | 4657122 |
| Equities | 1060582 | 1301530 |
| Fixed income | 765576 | 959122 |
| Total Capital Markets | 1826158 | 2260652 |
| Total Investment Banking and Capital Markets Net revenues<sup>9</sup> | 4726150 | 6917774 |
| Asset management fees and revenues<sup>10</sup> | 89127 | 120733 |
| Investment return<sup>2</sup> | 156594 | 260316 |
| Merchant banking | 1053031 | 756482 |
| Allocated net interest<sup>2</sup> | (41059) | (44907) |
| Total Asset Management Net revenues  | 1257693 | 1092624 |
| Other | (5005) | 3428 |
| Total Net revenues by source | $5978838 | $8013826 |
| Non-interest expenses: |  |  |
| Compensation and benefits | $2589044 | $3554760 |
| Floor brokerage and clearing fees | 347805 | 301860 |
| Underwriting costs | 42067 | 117572 |
| Technology and communications | 444011 | 388134 |
| Occupancy and equipment rental | 108001 | 106254 |
| Business development | 150500 | 109772 |
| Professional services | 240978 | 215761 |
| Depreciation and amortization | 172902 | 157420 |
| Cost of sales | 440837 | 470870 |
| Other | 387131 | 337318 |
| Total Non-interest expenses | $4923276 | $5759721 |

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| | |
|:---|:---|
| 6 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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Financial Data and Metrics

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| | | | |
|:---|:---|:---|:---|
| (Amounts in Thousands, Except Other Data) (Unaudited) | Quarter Ended | Quarter Ended | Quarter Ended |
|  | November 30, 2022 | August 31, 2022 | November 30,<br>2021 |
| Other Data: |  |  |  |
| Number of trading days | 63 | 64 | 63 |
| Number of trading loss days<sup>11</sup> | 3 | 9 | 11 |
| Average VaR (in millions)<sup>12</sup> | $10.62 | $9.60 | $10.14 |
|  |  | Twelve Months Ended November 30, | Twelve Months Ended November 30, |
|  |  | 2022 | 2021 |
| Other Data: |  |  |  |
| Number of trading days |  | 252 | 252 |
| Number of trading loss days<sup>11</sup> |  | 30 | 60 |
| Average VaR (in millions)<sup>12</sup> |  | $11.04 | $13.63 |

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| | | | |
|:---|:---|:---|:---|
| **(Amounts in Millions, Except Other Data) (Unaudited)** | Quarter Ended | Quarter Ended | Quarter Ended |
|  | November 30, 2022 | August 31, 2022 | November 30,<br>2021 |
| Financial position<sup>13</sup>: |  |  |  |
| Total assets<sup>19</sup> | $51058 | $51477 | $56107 |
| Total assets less goodwill and intangible assets for the period<sup>19</sup> | 49182 | 49603 | 54209 |
| Cash and cash equivalents | 9703 | 9478 | 10755 |
| Financial instruments owned<sup>19</sup> | 18666 | 18776 | 18025 |
| Level 3 financial instruments owned<sup>14, 19</sup> | 791 | 790 | 575 |
| Goodwill and intangible assets | 1876 | 1874 | 1898 |
| Total equity | 10295 | 10360 | 10580 |
| Total shareholders' equity | 10233 | 10293 | 10554 |
| Tangible shareholders' equity<sup>7</sup> | 8357 | 8419 | 8656 |
| Other data and financial ratios: |  |  |  |
| Leverage ratio<sup>13, 15, 19</sup> | 5.0 | 5.0 | 5.3 |
| Tangible gross leverage ratio<sup>13, 16, 19</sup> | 5.9 | 5.9 | 6.3 |
| Number of employees, at period end | 5381 | 5347 | 5556 |

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Components of Denominator for Earnings Per Share

The denominators used to calculate basic and diluted earnings per share are as follows (in thousands):

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| | | |
|:---|:---|:---|
| | Three Months Ended November 30, 2022 | Twelve Months Ended November 30, 2022 |
| Weighted average common shares outstanding | 227395 | 234258 |
| Weighted average shares of restricted stock with future service | (1789) | (1330) |
| Weighted average restricted stock units outstanding with no future service | 13706 | 14450 |
| Denominator for basic earnings per share | 239312 | 247378 |
| Stock options and other share based awards | 1617 | 1518 |
| Senior executive compensation plan restricted stock unit awards | 2968 | 2234 |
| Mandatorily redeemable convertible preferred shares | 4441 | 4441 |
| Denominator for diluted earnings per share | 248338 | 255571 |

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| | |
|:---|:---|
| 7 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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Notes

1. Annualized return on adjusted tangible equity (a non-GAAP financial measure) is defined as annualized adjusted net earnings (a non-GAAP financial measure) divided by our beginning of period adjusted tangible shareholders' equity (a non-GAAP financial measure). Refer to schedule on page [10](#i3d1e241848e54454bec08608ed9ceb45_2343) for reconciliation to U.S. GAAP amounts.

2. Allocated net interest represents an allocation to Asset Management of certain of our long-term debt interest expense, net of interest income on our Cash and cash equivalents and other sources of liquidity. Allocated net interest has been disaggregated to increase transparency and to present direct Asset Management revenues. We believe that aggregating Allocated net interest would obscure the revenue results by including an amount that is unique to our credit spreads, debt maturity profile, capital structure, liquidity risks and allocation methods. Refer to Selected Financial Information on pages [5](#i99d9a8f7b1ac48948402187fb008989b_5273) to [6](#i99d9a8f7b1ac48948402187fb008989b_10577).

3. Tangible book value (a non-GAAP financial measure) is defined as shareholders' equity less intangible assets, net and goodwill. Refer to schedule on page [11](#i3d1e241848e54454bec08608ed9ceb45_4740) for reconciliation to U.S. GAAP amounts.

4. Adjusted annualized return on adjusted tangible equity (a non-GAAP financial measure) is defined as Jefferies' annualized adjusted net earnings excluding the net earnings impact of the $80 million of expense ($80 million, net of tax) related to a regulatory settlement during the current year (a non-GAAP financial measure) divided by our beginning of period adjusted tangible shareholders' equity (a non-GAAP financial measure). Refer to schedule on page [10](#i3d1e241848e54454bec08608ed9ceb45_2343) for reconciliation to U.S. GAAP amounts.

5. Shares outstanding on a fully diluted basis (a non-GAAP financial measure) is defined as common shares outstanding plus restricted stock units, stock options, conversion of redeemable convertible preferred shares and other shares. Refer to schedule on page [11](#i3d1e241848e54454bec08608ed9ceb45_2345) for reconciliation to U.S. GAAP amounts.

6. Adjusted tangible book value per fully diluted share (a non-GAAP financial measure) is defined as adjusted tangible book value (a non-GAAP financial measure) divided by shares outstanding on a fully diluted basis (a non-GAAP financial measure). Refer to schedule on page [11](#i3d1e241848e54454bec08608ed9ceb45_2345) for reconciliation to U.S. GAAP amounts.

7. Tangible shareholders' equity (a non-GAAP financial measure), is defined as shareholders' equity less Intangible assets and goodwill. We believe that tangible equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible equity, making these ratios meaningful for investors.

8. Adjusted net earnings attributable to common shareholders (a non-GAAP financial measure) excludes the $80 million expense ($80 million, net of tax) related to a regulatory settlement in the third quarter. Refer to schedule on page [9](#i3d1e241848e54454bec08608ed9ceb45_2344) for reconciliation to U.S. GAAP amounts.

9. Allocated net interest is not separately disaggregated for Investment Banking and Capital Markets. This presentation is aligned to our Investment Banking and Capital Markets internal performance measurement.

10. Includes management and performance fees from funds and accounts managed by us as well as our share of fees received by affiliated asset management companies with which we have revenue and profit share arrangements, as well as earnings on our ownership interest in affiliated asset managers.

11. Number of trading loss days is calculated based on trading activities in our Investment Banking and Capital Markets and Asset Management business segments.

12. VaR estimates the potential loss in value of trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended November 30, 2021.

13. Amounts pertaining to November 30, 2022 represent a preliminary estimate as of the date of this earnings release and may be revised in our Annual Report on Form 10-K for the year ended November 30, 2022.

14. Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.

15. Leverage ratio equals total assets divided by total equity.

16. Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and identifiable intangible assets divided by tangible equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio.

17. Adjusted effective tax rate (a non-GAAP financial measure) excludes the $80 million expense related to a regulatory settlement in the current year. Refer to schedule on page [10](#i3d1e241848e54454bec08608ed9ceb45_4167) for reconciliation to U.S. GAAP amounts.

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|:---|:---|
| 8 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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**18.**We have reclassified the presentation of certain line items within our Net revenues by sources to streamline our financial statements to better align the presentation of our firm with the strategy of building our investment banking and capital markets and asset management businesses as we continue to reduce our legacy merchant banking portfolio. Historical periods have been recast to conform to these reclassification and presentation changes.

19. We have changed the accounting for our secondary trading activity related to the purchases and sales of corporate loans. Historically, we have accounted for purchases and sales of corporate loans on trade date recognizing the total amount of purchased loans within Financial instruments owned and a corresponding liability within Payables - brokers, dealers and clearing organizations and the total amount of loans sold within Financial instruments sold, not yet purchased and a corresponding asset within Receivables - brokers, dealers and clearing organizations on the Consolidated Statements of Financial Condition for the cash to be paid or received upon settlement. We have determined that it is more preferable to recognize this trading activity on a settlement date basis and recognize firm commitments to purchase and/or sell loans on the date of trade execution due to the extended settlement period for this trading activity. There was no impact to net earnings or total equity as a result of this change in accounting policy.

Non-GAAP Reconciliations

The following tables reconcile our non-GAAP measures to their respective U.S. GAAP measures. Management believes such non-GAAP measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute for, or superior to, measures prepared in accordance with U.S. GAAP.

Adjusted Net Earnings Attributable to Common Shareholders and Adjusted Diluted Earnings Per Share GAAP Reconciliations

Reconciliation of net earnings attributable to common shareholders to adjusted net earnings attributable to common shareholders and diluted earnings per share to adjusted diluted earnings per share (in thousands, except per share amounts):

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| | | |
|:---|:---|:---|
| | Three Months Ended November 30, 2022 | Twelve Months Ended November 30, 2022 |
| Net earnings attributable to common shareholders (GAAP) | $140248 | $777168 |
| Net earnings impact for regulatory settlement |  | 80000 |
| Adjusted net earnings attributable to common shareholders (non-GAAP) | $140248 | $857168 |
| Diluted earnings per share (GAAP) | $0.57 | $3.06 |
| Diluted earnings per share impact for regulatory settlement |  | 0.31 |
| Adjusted diluted earnings per share (non-GAAP) | $0.57 | $3.37 |

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|:---|:---|
| 9 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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Adjusted Return on Adjusted Tangible Equity Reconciliation

The table below reconciles our Net earnings attributable to common shareholders to adjusted net earnings and our Shareholders' equity to adjusted tangible shareholders' equity (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>November 30, | Three Months Ended<br>November 30, | Twelve Months Ended<br>November 30, | Twelve Months Ended<br>November 30, |
| | 2022 | 2021 | 2022 | 2021 |
| Net earnings attributable to common shareholders (GAAP) | $140248 | $324913 | $777168 | $1667403 |
| Intangible amortization and impairment expense, net of tax | 1742 | 2773 | 8100 | 10649 |
| Adjusted net earnings (non-GAAP) | $141990 | $327686 | $785268 | $1678052 |
| Annualized adjusted net earnings (non-GAAP) | $567960 | $1310744 | $785268 | $1678052 |
| Net earnings impact for regulatory settlement | $— | $— | $80000 | $— |
| Adjusted net earnings excluding regulatory settlement (non-GAAP) | $141990 | $327686 | $865268 | $1678052 |
| Annualized adjusted net earnings excluding regulatory settlement (non-GAAP) | $567960 | $1310744 | $865268 | $1678052 |
|  | August 31, | August 31, | November 30, | November 30, |
|  | 2022 | 2021 | 2021 | 2020 |
| Shareholders' equity (GAAP) | $10292531 | $10381883 | $10553755 | $9403893 |
| Less: Intangible assets, net and goodwill | (1874435) | (1905163) | (1897500) | (1913467) |
| Less: Deferred tax asset | (398397) | (479016) | (327547) | (393687) |
| Less: Weighted average quarter-to-date or year-to-date impact of cash dividends and share repurchases | (115869) | (62644) | (670949) | (243003) |
| Adjusted tangible shareholders' equity (non-GAAP) | $7903830 | $7935060 | $7657759 | $6853736 |
| Return on adjusted tangible equity (non-GAAP) | 7.2% | 16.5% | 10.3% | 24.5% |
| Adjusted return on adjusted tangible equity (non-GAAP) | 7.2% | 16.5% | 11.3% | 24.5% |

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Adjusted Effective Tax Rate GAAP Reconciliation

The table below reconciles our effective tax rate to adjusted effective tax rate:

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| | |
|:---|:---|
| | Twelve Months Ended November 30, 2022 |
| Effective tax rate (GAAP) | 25.9% |
| Effective tax rate impact for regulatory settlement | (1.8)% |
| Adjusted effective tax rate (non-GAAP) | 24.1% |

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|:---|:---|
| 10 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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Adjusted Tangible Book Value and Fully Diluted Shares Outstanding GAAP Reconciliation

The table below reconciles our book value (shareholders' equity) to adjusted tangible book value and our common shares outstanding to fully diluted shares outstanding (in thousands, except per share amounts):

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| | | |
|:---|:---|:---|
| | | November 30, 2022 |
| Book value (GAAP) | Book value (GAAP) | $10232846 |
| Redeemable convertible preferred shares convertible to common shares<sup>(1)</sup> | Redeemable convertible preferred shares convertible to common shares<sup>(1)</sup> | 125000 |
| Stock options<sup>(2)</sup> | Stock options<sup>(2)</sup> | 119336 |
| Intangible assets, net and goodwill | Intangible assets, net and goodwill | (1875576) |
| Adjusted tangible book value (non-GAAP) | Adjusted tangible book value (non-GAAP) | $8601606 |
| Common shares outstanding (GAAP) | Common shares outstanding (GAAP) | 226130 |
| Restricted stock units ("RSUs") | Restricted stock units ("RSUs") | 17868 |
| Redeemable convertible preferred shares converted to common shares<sup>(1)</sup> | Redeemable convertible preferred shares converted to common shares<sup>(1)</sup> | 4441 |
| Stock options<sup>(2)</sup> | Stock options<sup>(2)</sup> | 5025 |
| Other | Other | 1168 |
| Fully diluted shares outstanding (non-GAAP)<sup>(3)</sup> | Fully diluted shares outstanding (non-GAAP)<sup>(3)</sup> | 254632 |
| Book value per share outstanding | Book value per share outstanding | $45.25 |
| Tangible book value per fully diluted share outstanding (non-GAAP) | Tangible book value per fully diluted share outstanding (non-GAAP) | $33.78 |
| <sup>(1)</sup> | Redeemable convertible preferred shares added to book value and fully diluted shares assume that the redeemable convertible preferred shares are converted to common shares. | Redeemable convertible preferred shares added to book value and fully diluted shares assume that the redeemable convertible preferred shares are converted to common shares. |
| <sup>(2)</sup> | Stock options added to book value are equal to the total number of stock options outstanding as of November 30, 2022 of 5,024,532 multiplied by the weighted average exercise price of $23.75 on November 30, 2022. Stock options added to fully diluted shares are equal to the total stock options outstanding on November 30, 2022. | Stock options added to book value are equal to the total number of stock options outstanding as of November 30, 2022 of 5,024,532 multiplied by the weighted average exercise price of $23.75 on November 30, 2022. Stock options added to fully diluted shares are equal to the total stock options outstanding on November 30, 2022. |
| <sup>(3)</sup> | Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans until the performance period is complete. Fully diluted shares outstanding also include all stock options and the additional common shares if our redeemable convertible preferred shares were converted to common shares. | Fully diluted shares outstanding include vested and unvested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans until the performance period is complete. Fully diluted shares outstanding also include all stock options and the additional common shares if our redeemable convertible preferred shares were converted to common shares. |

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Tangible Book Value GAAP Reconciliation

At the beginning of the press release, we disclose how much we have returned to shareholders through buybacks and dividends since the beginning of 2018 and what percentage that is of tangible book value at the beginning of 2018. The table below reconciles our shareholders' equity to tangible book value at the beginning of 2018 (in thousands):

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| | |
|:---|:---|
| | December 31, 2017 |
| Shareholders' equity (GAAP) | $10105957 |
| Intangible assets, net and goodwill | (2463180) |
| Tangible book value (non-GAAP) | $7642777 |

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|:---|:---|
| 11 Jefferies Financial Group | ![jefferies_logoxblackx72dpia.jpg](jefferies_logoxblackx72dpia.jpg) |

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