Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 11-K

 

 

(Mark One)

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended November 30, 2021

OR

 

TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number                     

 

 

 

A.

Full title of the plan and the address of the plan, if different from that of the issuer named below:

Jefferies Group LLC Employees’ Profit Sharing Plan (the “Plan”)

520 Madison Avenue

New York, New York 10022

 

B.

Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Jefferies Financial Group Inc.

520 Madison Avenue

New York, New York 10022

 

 

 


Table of Contents

FINANCIAL STATEMENTS AND EXHIBITS

 

(a)

Financial Statements and Supplemental Schedule (With Report of Independent Registered Public Accounting Firm Thereon)

 

(b)

Exhibit 1 – Consent of Independent Registered Public Accounting Firm

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee, administrator of the Plan, has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.

 

JEFFERIES GROUP LLC EMPLOYEES’ PROFIT SHARING PLAN  
By: Administrative Committee    
Date: May 23, 2022     By:  

/s/ Leon J. Bijou

      Leon J. Bijou
      Authorized Person

 

[2]


Table of Contents

JEFFERIES GROUP LLC

EMPLOYEES’ PROFIT SHARING PLAN

Table of Contents

 

     Page  

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

     4  

FINANCIAL STATEMENTS:

  

Statements of Net Assets Available for Benefits as of November  30, 2021 and 2020

     5  

Statement of Changes in Net Assets Available for Benefits for the Year Ended November 30, 2021

     6  

Notes to Financial Statements as of November  30, 2021 and 2020 and for the Year Ended November 30, 2021

     7  

SUPPLEMENTAL SCHEDULE:

  

Form 5500, Schedule H, Part IV, Line  4i – Schedule of Assets (Held at End of Year) as of November 30, 2021

     14  

 

NOTE:

All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended, have been omitted because they are not applicable.

 

[3]


Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Participants and Plan Administrator of

Jefferies Group LLC Employees’ Profit Sharing Plan

Opinion on the Financial Statements

We have audited the accompanying statements of net assets available for benefits of the Jefferies Group LLC Employees’ Profit Sharing Plan (the Plan) as of November 30, 2021 and 2020, the related statement of changes in net assets available for benefits for the year ended November 30, 2021, and the related notes to financial statements (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of November 30, 2021 and 2020, and the changes in net assets available for benefits for the year ended November 30, 2021, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Supplemental Information

The supplemental schedule of assets (held at end of year) has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended. In our opinion, the supplemental schedule is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ Tanner LLC

We have served as the Plan’s auditor since 2016.

Salt Lake City, Utah

May 23, 2022

 

[4]


Table of Contents

JEFFERIES GROUP LLC

EMPLOYEES’ PROFIT SHARING PLAN

Statements of Net Assets Available for Benefits

As of November 30, 2021 and 2020

 

     2021      2020  

ASSETS:

     

Participant-directed investments, at fair value:

     

Common stocks

   $ 72,389,822      $ 44,591,327  

Common collective fund

     164,721,066        —    

Mutual funds

     659,361,228        680,693,372  
  

 

 

    

 

 

 

Total investments

     896,472,116        725,284,699  
  

 

 

    

 

 

 

Non-interest bearing cash

     17,510        8,420  
  

 

 

    

 

 

 

Receivables:

     

Notes receivable from participants

     4,655,765        4,106,732  
  

 

 

    

 

 

 

Total assets

     901,145,391        729,399,851  
  

 

 

    

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS

   $ 901,145,391      $ 729,399,851  
  

 

 

    

 

 

 

See accompanying notes to financial statements.

 

[5]


Table of Contents

JEFFERIES GROUP LLC

EMPLOYEES’ PROFIT SHARING PLAN

Statement of Changes in Net Assets Available for Benefits

For the Year Ended November 30, 2021

 

ADDITIONS:

  

Contributions:

  

Participant contributions

   $ 45,490,040  

Participant rollover contributions

     7,644,201  

Employer matching contributions

     8,224,176  
  

 

 

 

Total contributions

     61,358,417  
  

 

 

 

Investment income:

  

Net appreciation in fair value of investments

     138,393,075  

Interest and dividends

     30,477,995  

Other income

     552,589  
  

 

 

 

Total investment income

     169,423,659  
  

 

 

 

Interest income on notes receivable from participants

     206,068  
  

 

 

 

Total additions

     230,988,144  
  

 

 

 

DEDUCTIONS:

  

Benefits paid to participants

     59,230,533  

Administrative expenses

     12,071  
  

 

 

 

Total deductions

     59,242,604  
  

 

 

 

Net increase

     171,745,540  

NET ASSETS AVAILABLE FOR BENEFITS:

  

Beginning of the year

     729,399,851  
  

 

 

 

End of the year

   $ 901,145,391  
  

 

 

 

See accompanying notes to financial statements.

 

[6]


Table of Contents

JEFFERIES GROUP LLC EMPLOYEES’ PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS AS OF NOVEMBER 30, 2021 AND 2020

AND FOR THE YEAR ENDED NOVEMBER 30, 2021

 

 

1.

DESCRIPTION OF THE PLAN

The following description of the Jefferies Group LLC Employees’ Profit Sharing Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

General – The Plan is a defined contribution plan sponsored by Jefferies Group LLC and subsidiaries (the “Company”) covering all U.S. based employees of the Company and employees who have U.S. source income and have completed three full months of service. Jefferies Group LLC is a direct wholly-owned subsidiary of publicly traded Jefferies Financial Group Inc. (“Jefferies”). The Plan’s Administrative Committee controls and manages the operation and administration of the Plan. Fidelity Management Trust Company serves as the trustee of the Plan (the “Trustee”). The Plan became effective in December 1964 and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

Contributions – Each year, eligible participants may voluntarily make pre-tax and/or after-tax Roth contributions up to 15% of a participant’s annual compensation or a flat dollar amount, as defined in the Plan, subject to certain Internal Revenue Code (“IRC”) limitations. Participants may also make voluntary after-tax contributions up to $32,000 to the Plan. Participants who have attained age 50 on or before December 31, 2021 may make pre-tax and/or Roth catch-up contributions, which are not matched by the Company.

Participants may also direct distributions from other qualified defined benefit plans, defined contribution plans, or Individual Retirement Accounts (“IRAs”) that held contributions under a previous employer’s tax-qualified plan or contributory IRAs to the Plan. The Plan provides for a fixed matching contribution by the Company for each dollar contributed by the employee on a pre-tax and after-tax Roth basis. In fiscal 2021 the rate of match was 25%. The Plan also enables employees to share in the profits of the Company by means of the Company’s discretionary contributions that can only be made out of profits and are allocated to participants on the basis of their compensation, as defined in the Plan. Additional discretionary matching contributions are allocated to participant accounts based on the level of employee contributions made to the Plan. Contributions are subject to certain limitations. The Company did not authorize a discretionary contribution during fiscal 2021.

Participant Accounts – Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution, the Company’s matching contribution and allocations of the Company’s discretionary contributions and Plan earnings, and charged with withdrawals, an allocation of Plan losses and an allocation of administrative expenses, if not paid from the forfeiture or the Revenue Credit Program account. Allocations are based on participant earnings or account balances, as defined in the Plan document. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account. In situations where Fidelity recordkeeping revenue earned in connection with plan services exceeds agreed-upon compensation, Fidelity (through a Revenue Credit Account) will deposit any excess revenue, regardless of source, in a plan-level suspense account (i.e., Revenue Credit Account) in the Plan. The Plan’s administrator, on behalf of the Administrative Committee, can then direct Fidelity to pay qualified plan-level expenses or allocate unused credit to eligible participants via funds from this Revenue Credit Account.

Investments – Participants direct the investment of their contributions into various investment options offered by the Plan. As of November 30, 2021, as investment options for participants, the Plan currently offers one equity investment, one common collective fund investment, 34 mutual funds, including one money market fund, and a self-directed brokerage account (“BrokerageLink Account”) that is primarily invested in interest-bearing cash accounts and income-oriented and growth-oriented mutual funds.

 

 

[7]


Table of Contents

JEFFERIES GROUP LLC EMPLOYEES’ PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS AS OF NOVEMBER 30, 2021 AND 2020

AND FOR THE YEAR ENDED NOVEMBER 30, 2021

 

 

Vesting – Participants are immediately fully vested in their own contributions and the earnings thereon. Vesting in the Company’s contribution portion of their accounts is based on years of continuous service as follows:

 

Years of vesting service

   Percentage  

Fewer than two years

     —  

Two years

     33  

Three years

     67  

Four years

     100  

Notes Receivable from Participants – Participants may borrow from their Plan accounts up to a maximum equal to the lesser of (1) $50,000 less the highest outstanding loan balance for the participant during the prior 12-month period or (2) 50% of their account balance. The loans are secured by the remaining balance in the participant’s account and bear interest at rates commensurate with local prevailing rates at the time funds are borrowed. The interest rate remains unchanged for the duration of the loan. The term of the loan may not exceed five years, except for loans for the purchase of a primary residence, in which case the repayment period cannot exceed ten years. Principal and interest are paid ratably through semi-monthly payroll deductions. Terminated participants who elect to continue their loan terms may elect to remit payments directly to the Trustee.

Payment of Benefits – Upon termination of service for any reason, a participant with an account balance greater than $1,000 may elect to (1) receive a lump-sum distribution in an amount equal to the value of the participant’s vested interest in his or her account, (2) elect a rollover distribution to an eligible retirement plan or eligible individual retirement account in an amount equal to the value of the participant’s vested interest in his or her account, or (3) elect to retain the amount of the vested balance in the Plan until the attainment of age 65. To the extent that a participant’s account is less than $1,000, the Company will distribute the vested interest in the participant’s account to the participant in the form of a lump-sum payment and if invested in Jefferies Common Stock the distribution will be made in the form of whole shares of Jefferies Common Stock or cash. The Plan allows for in-service withdrawals for hardship purposes as defined in the Plan document. The Plan also allows in-service withdrawals to employees to withdraw vested balances starting at age 59 1/2 and for all employees to withdraw their voluntary after-tax and rollover contributions at any time.

Forfeited Accounts – As of November 30, 2021 and 2020, forfeited non-vested accounts totaled $1 and $15,595, respectively. These amounts will be used to reduce employer contributions or pay administrative expenses of the Plan. During the year ended November 30, 2021, incoming forfeitures totaled $1,182,403, and employer contributions were reduced by $1,197,997.

 

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting – The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

[8]


Table of Contents

JEFFERIES GROUP LLC EMPLOYEES’ PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS AS OF NOVEMBER 30, 2021 AND 2020

AND FOR THE YEAR ENDED NOVEMBER 30, 2021

 

 

Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Risks and Uncertainties – The Plan provides for various investment options, including mutual funds, Jefferies Common Stock, a common collective fund, and a self-directed brokerage account. Investment securities, in general, are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, Plan management believes it is reasonably possible that changes in the values of investment securities will occur in the near term and that such a change could materially affect the amount reported in the financial statements.

Concentration of Investments – The Plan’s investment in Jefferies Common Stock comprises approximately 8% and 7% of the Plan’s investments as of November 30, 2021 and 2020, respectively.

Investment Valuation and Income Recognition – The Plan’s investments are stated at fair value. Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Jefferies Common Stock is valued at the closing price reported on the New York Stock Exchange on the last business day of the Plan year. Shares of mutual funds are traded in active markets and are stated at fair value based upon quoted market prices. The investment in the common collective fund is stated at net asset value (NAV) per share as a practical expedient, which is based on the fair value of the underlying investments.

The Revenue Credit Program provides income in situations where recordkeeping revenue earned in connection with plan services exceeds agreed-upon compensation. Fidelity will deposit any excess revenue, regardless of source, in a plan-level suspense account (i.e., Revenue Credit Account) in the Plan. The named fiduciary or plan administrator can then direct Fidelity to pay qualified plan-level expenses or allocate unused credit to eligible participants via funds from this Revenue Credit Account.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan’s gains and losses on investments bought and sold as well as appreciation on investments held at year-end.

Management fees and operating expenses charged to the Plan for investments in the mutual funds and common collective fund are deducted from the NAV of the mutual funds and common collective fund and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of the investment return for such investment.

Notes Receivable From Participants – Participant loans are classified as notes receivable from participants on the Statement of Net Assets Available for Benefits and are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant loans are recorded as distributions based on the terms of the Plan document.

Administrative Expenses – All reasonable expenses of administering the Plan are either charged to participants and paid out of Plan assets or paid by the Company. If the expenses are charged to each participant’s account, they are charged on a pro rata basis based upon account balances of participants.

 

[9]


Table of Contents

JEFFERIES GROUP LLC EMPLOYEES’ PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS AS OF NOVEMBER 30, 2021 AND 2020

AND FOR THE YEAR ENDED NOVEMBER 30, 2021

 

 

Payment of Benefits – Benefit payments to participants are recorded upon distribution. There are no amounts allocated to participants who have withdrawn their funds but have not been paid as of November 30, 2021 or 2020.

 

3.

FAIR VALUE MEASUREMENTS

Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a single authoritative definition of fair value, sets a framework for measuring fair value, and requires disclosures about fair value measurements. In accordance with ASC 820, the Plan classifies its investments into Level 1, which refers to securities valued using quoted prices from active markets for identical assets; Level 2, which refers to securities not traded on an active market but for which observable market inputs are readily available; and Level 3, which refers to securities valued based on significant unobservable inputs. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Transfers Between Levels — The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported as of the beginning of the reporting period.

We evaluate the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total net assets available for benefits. For the years ended November 30, 2021 and 2020, there were no transfers between levels.

The techniques used to value the Plan’s investments are as follows:

 

   

Common stock. Valued utilizing a market approach wherein Plan management uses quoted prices in active markets for identical assets;

 

   

Mutual funds. Valued utilizing a market approach wherein Plan management uses the quoted prices in the active market for identical assets. All of the mutual funds are traded in active markets at their NAV per share. There are no restrictions as to redemption of these investments nor does the Plan have any contractual obligations to further invest in any of the individual mutual funds.

 

   

Common collective fund. Valued based on the NAV of units held by the collective fund. The NAV is based on the observable market prices of the underlying investments within the fund less liabilities. The NAV for the underlying assets of the fund is a readily determinable measure of their fair value and is the basis used by the fund for current transactions.

 

[10]


Table of Contents

JEFFERIES GROUP LLC EMPLOYEES’ PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS AS OF NOVEMBER 30, 2021 AND 2020

AND FOR THE YEAR ENDED NOVEMBER 30, 2021

 

 

The following tables set forth, by level within the fair value hierarchy, a summary of the Plan’s investments measured at fair value on a recurring basis as of:

 

     Assets measured at      Quoted prices in
active markets for
 
     fair value as of      identical assets  
     November 30, 2021      (Level 1)  

Common Stock

   $ 72,389,822      $ 72,389,822  

Mutual Funds:

     

Domestic Stock Funds

     302,009,410        302,009,410  

Balanced Funds

     209,701,811        209,701,811  

Fixed Income Funds

     39,507,941        39,507,941  

International Stock Funds

     37,921,803        37,921,803  

Money Market Funds

     50,682,147        50,682,147  

BrokerageLink Account:

     

Mutual Funds:

     

Money Market Funds

     4,348,480        4,348,480  

Precious Metals Funds

     413,538        413,538  

International Stock Funds

     1,888,491        1,888,491  

Alternative Funds

     288,614        288,614  

Fixed Income Funds

     1,055,967        1,055,967  

Commodity Funds

     317,009        317,009  

Other Equity Mutual Funds

     11,226,017        11,226,017  
  

 

 

    

 

 

 
     731,751,050      $ 731,751,050  
     

 

 

 

Common collective fund, at NAV practical expedient*

     164,721,066     
  

 

 

    

Total Investment Assets at Fair Value

   $ 896,472,116     
  

 

 

    

 

*

The fair value of this investment is provided above to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of net assets available for benefits.

 

[11]


Table of Contents

JEFFERIES GROUP LLC EMPLOYEES’ PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS AS OF NOVEMBER 30, 2021 AND 2020

AND FOR THE YEAR ENDED NOVEMBER 30, 2021

 

 

     Assets measured at
fair value as of
November 30, 2020
     Quoted prices in
active markets for

identical assets
(Level 1)
 

Common Stock

   $ 44,591,327      $ 44,591,327  

Mutual Funds:

     

Domestic Stock Funds

     363,728,659        363,728,659  

Balanced Funds

     173,310,455        173,310,455  

Fixed Income Funds

     41,069,136        41,069,136  

International Stock Funds

     32,136,259        32,136,259  

Money Market Funds

     52,096,671        52,096,671  

BrokerageLink Account:

     

Mutual Funds:

     

Money Market Funds

     5,765,227        5,765,227  

Precious Metals Funds

     297,978        297,978  

International Stock Funds

     1,440,550        1,440,550  

Alternative Funds

     246,231        246,231  

Fixed Income Funds

     1,290,779        1,290,779  

Commodity Funds

     103,403        103,403  

Other Equity Mutual Funds

     9,208,024        9,208,024  
  

 

 

    

 

 

 

Total Investment Assets at Fair Value

   $ 725,284,699      $ 725,284,699  
  

 

 

    

 

 

 

The valuation methods as described in Note 2 may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although Plan management believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement as of the reporting date.

 

4.

EXEMPT PARTY-IN-INTEREST TRANSACTIONS

Certain Plan investments are shares of mutual funds managed by the Trustee and qualify as exempt party-in-interest transactions. Fees paid by the Plan for administrative services for the year ended November 30, 2021 were $12,071.

Fees paid indirectly by the Plan for investment management services are described in the mutual fund prospectus of the designated investment options and are included as a reduction of the return earned on such fund. The Plan pays Fidelity as trustee and recordkeeper and these qualify as a party-in-interest transaction.

As of November 30, 2021 and 2020, the Plan held 1,926,206 and 1,961,686 shares, respectively of Jefferies Common Stock, with a market value of $72,389,822, and $44,591,327, respectively. During the year ended November 30, 2021, the Plan recorded dividend income of $1,659,796 related to the Jefferies Common Stock.

 

[12]


Table of Contents

JEFFERIES GROUP LLC EMPLOYEES’ PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS AS OF NOVEMBER 30, 2021 AND 2020

AND FOR THE YEAR ENDED NOVEMBER 30, 2021

 

 

During the year ended November 30, 2021, sales of Jefferies Common Stock were $5,422,097 and the purchases of Jefferies Common Stock were $2,675,594. Realized gains on the sale of Jefferies Common Stock were $1,535,190 for the year ended November 30, 2021.

Certain employees and officers of the Company, who may also be participants in the Plan, perform administrative services to the Plan at no cost to the Plan.

 

5.

PLAN TERMINATION

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA. In the event of Plan termination, participants would become 100% vested in their employer contributions and their accounts would be distributed in accordance with the Plan document.

 

6.

TAX STATUS

The Internal Revenue Service (“IRS”) has provided a determination letter dated November 21, 2017 and informed the Company that the Plan, and related trust, were designed in accordance with applicable sections of the IRC.

U.S. GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

 

7.

CARES ACT

The Plan has implemented certain requirements of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) and the Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act), which laws change the Plan to, among other changes, allow certain eligible individuals to receive coronavirus-related relief for loan repayment or to receive a coronavirus-related hardship distribution, suspend required minimum distributions, and delay the commencement date for required minimum distributions.

 

8.

SUBSEQUENT EVENTS

The Plan management has evaluated events and transactions for potential recognition or disclosure through May 23, 2022, which is the date the financial statements were available to be issued.

 

[13]


Table of Contents

JEFFERIES GROUP LLC

EMPLOYEES’ PROFIT SHARING PLAN EIN: 95-4719745 PLAN No. 001

Schedule H, Line 4i- Schedule of Assets (Held at End of Year)

November 30, 2021

 

(a)

  

(b) Identity of issue

   (c) Description of investment    (d) Cost**    (e) Current value  

*

   Fidelity OTC Commingled Pool (4,350,794 shares)    Common collective fund       $ 164,721,066  

*

   Fidelity 500 Index Fund (991,088 shares)    Mutual Funds         157,384,902  

*

   Jefferies (1,926,206 shares)    Common Stock         72,389,822  

*

   FIMM Govt CL I (50,682,146 shares)    Mutual Funds         50,682,148  
   Baron Small Cap Inst (1,073,230 shares)    Mutual Funds         42,285,273  

*

   Fidelity International Discovery K (628,406 shares)    Mutual Funds         36,051,685  

*

   Fidelity Freedom Fund K 2045 (2,102,515 shares)    Mutual Funds         30,507,502  

*

   Fidelity Freedom Fund K 2040 (2,388,642 shares)    Mutual Funds         30,287,986  

*

   Fidelity Freedom Fund K 2030 (1,403,971 shares)    Mutual Funds         28,346,180  

*

   Fidelity Freedom Fund K 2035 (1,569,630 shares)    Mutual Funds         27,703,983  

*

   Fidelity Freedom Fund K 2050 (1,872,989 shares)    Mutual Funds         27,401,840  
   Harbor Cap Apr Inst (211,934 shares)    Mutual Funds         26,235,352  
   AS SPL Mid Cap Val (399,274 shares)    Mutual Funds         20,694,400  

*

   Fidelity Freedom Fund K 2025 (1,199,252 shares)    Mutual Funds         19,260,002  

*

   Fidelity Freedom Fund K 2055 (1,099,127 shares)    Mutual Funds         18,509,307  

*

   Fideltiy Ext Market Index (197,706 shares)    Mutual Funds         17,376,403  
   JPM Equity Income (704,754 shares)    Mutual Funds         16,124,775  

*

   BrokerageLink Fund    Mutual Funds         15,203,729  

*

   Fidelity Freedom Fund K 2060 (960,481 shares)    Mutual Funds         14,695,366  
   PIMCO Total Return Fund (1,355,706 shares)    Mutual Funds         13,990,887  
   Victory SM CO OPP (195,761 shares)    Mutual Funds         10,962,620  
   Vanguard Value Idx Adm (202,660 shares)    Mutual Funds         10,945,684  

*

   Fidelity Strategic Income Fund (811,066 shares)    Mutual Funds         10,414,090  
   NB High Income Bond IS (716,696 shares)    Mutual Funds         6,142,092  

*

   Fidelity Freedom Fund K 2020 (347,397 shares)    Mutual Funds         6,100,292  

*

   Fidelity High Income Fund (553,495 shares)    Mutual Funds         4,748,989  

*

   BrokerageLink Account    Mutual Funds         4,334,387  
   AB Global Bond (375,511 shares)    Mutual Funds         3,195,603  

*

   Fidelity Strategy Real Retirement (238,986 shares)    Mutual Funds         2,186,726  

*

   Fidelity Freedom Fund K 2065 (142,001 shares)    Mutual Funds         1,942,585  
   Vanguard FTSE All World Index Adm (50,339 shares)    Mutual Funds         1,870,119  

*

   Fidelity Freedom Fund K 2015 (89,255 shares)    Mutual Funds         1,222,799  

*

   Fidelity Freedom K Income Fund (85,282 shares)    Mutual Funds         1,034,474  
   Vanguard Total Bond Market Adm (90,175 shares)    Mutual Funds         1,016,279  

*

   Fidelity Freedom Fund K 2005 (23,138 shares)    Mutual Funds         303,812  

*

   Fidelity Freedom Fund K 2010 (12,087 shares)    Mutual Funds         198,957  
           

 

 

 
      Total Investments         896,472,116  

*

   Notes receivable from participants bearing interest at rates from 4.25% to 6.5% with maturities ranging from December 2021 through October 2031    Participant Loans         4,655,765  
           

 

 

 
      Total       $ 901,127,881  
           

 

 

 

 

*

Party-in-interest

**

Cost information not required for participant directed investments and therefore is not included

See accompanying Report of Independent Registered Public Accounting Firm

 

[14]


EX-1

Exhibit 1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the Registration Statement (No. 333-185318) on Form S-8 of Jefferies Financial Group, Inc. of our report dated May 23, 2022, relating to the financial statements of Jefferies Group LLC Employees’ Profit Sharing Plan, which appears in this Form 11-K for the year ended November 30, 2021.

 

/s/ Tanner LLC

Salt Lake City, Utah

May 23, 2022