Jefferies Financial Group Inc.JEF
Jefferies Financial Group Inc. Goodwill & Intangibles Disclosure
Note 12. Goodwill and Intangible Assets
Goodwill
Year Ended November 30, 2025 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Balance, at beginning of period ................... | $1,533,013 | $294,925 | $1,827,938 |
Currency translation and other adjustments .............................................. | 2,948 | 10,445 | 13,393 |
Measurement period adjustments (1) ........ | — | 1,802 | 1,802 |
Write-off related to disposals ....................... | — | (5,563) | (5,563) |
Balance, at end of period ............................. | $1,535,961 | $301,609 | $1,837,570 |
(1)Relates to a measurement period adjustment recorded during the second
quarter of 2025 attributable to the Go Internet acquisition. Refer to Note 4,
Business Acquisitions and Discontinued Operations for further discussion.
Year Ended November 30, 2024 | |||
$ in thousands | Investment Banking and Capital Markets | Asset Management | Total |
Balance, at beginning of period ................... | $1,532,172 | $315,684 | $1,847,856 |
Currency translation and other adjustments .............................................. | 841 | (3,107) | (2,266) |
Measurement period adjustments (1) ........ | — | (26,230) | (26,230) |
Goodwill relating to acquisitions by Tessellis ..................................................... | — | 8,578 | 8,578 |
Balance, at end of period ............................. | $1,533,013 | $294,925 | $1,827,938 |
(1)Includes a $27.0 million measurement period adjustment recorded during the
first quarter of 2024 related to the OpNet acquisition. Refer to Note 4,
Business Acquisitions and Discontinued Operations for further discussion.
Carrying values of goodwill by reporting unit:
November 30, | ||
$ in millions | 2025 | 2024 |
Investment banking ............................................................. | $702.0 | $700.7 |
Equities and wealth management ..................................... | 255.9 | 255.4 |
Fixed income ........................................................................ | 578.0 | 576.9 |
Asset management ............................................................. | 143.0 | 143.0 |
Other investments ............................................................... | 158.7 | 151.9 |
Total ...................................................................................... | $1,837.6 | $1,827.9 |
Goodwill Impairment Testing
The goodwill impairment test is performed at the level of the
reporting unit. A reporting unit is an operating segment or one
level below an operating segment. The fair value of each
reporting unit is compared with its carrying value, including
goodwill and allocated intangible assets. If the fair value is in
excess of the carrying value, the goodwill for the reporting unit is
considered not to be impaired. If the fair value is less than the
carrying value, then an impairment loss is recognized for the
amount by which the carrying value of the reporting unit exceeds
the reporting unit’s fair value.
We test goodwill allocated to our Investment Banking, Equities,
Fixed Income and Asset Management reporting units annually on
August 1 and test goodwill allocated to other individual reporting
units annually on November 30. Our annual goodwill impairment
testing at August 1, 2025 did not indicate any goodwill
impairment in any of our Investment Banking, Equities and Fixed
Income reporting units, which are part of our Investment Banking
and Capital Markets reportable segment and did not indicate any
goodwill impairment in our Asset Management reporting unit. Our
annual goodwill impairment testing of our other individual
reporting units did not indicate any goodwill impairment.
For our reporting units that are part of our Investment Banking
and Capital Markets and Asset Management reportable
segments, we generally perform a quantitative assessment,
which involves a quantitative calculation to estimate the fair
value of a reporting unit. Estimating the fair value of a reporting
unit requires management judgment. Estimated fair values for
our reporting units were determined using methodologies that
include a market valuation method that incorporated price-to-
earnings and price-to-book multiples of comparable public
companies and/or projected cash flows. Under the market
valuation approach, the key assumptions are the selected
multiples and our internally developed projections of future
profitability, growth and return on equity for each reporting unit.
The weight assigned to the multiples requires judgment in
qualitatively and quantitatively evaluating the size, profitability
and the nature of the business activities of the reporting units as
compared to the comparable publicly-traded companies. In
addition, as the fair values determined under the market valuation
approach represent a noncontrolling interest, we applied a
control premium to arrive at the estimated fair value of each
reporting unit on a controlling basis. We engaged an independent
valuation specialist to assist us in our quantitative valuation
process at August 1.
Intangible Assets
Intangible assets are included in Other assets.
November 30, 2025 | Weighted Average Remaining Lives (Years) | ||||
$ in thousands | Gross Cost | Assets Acquired | Accumulated Amortization | Net Carrying Amount | |
Customer relationships ............................. | $166,328 | $622 | $(116,810) | $50,140 | 4.6 |
Trademarks and trade names .................. | 160,674 | — | (55,948) | 104,726 | 20.6 |
Exchange and clearing organization membership interests and registrations | 8,717 | — | — | 8,717 | N/A |
Other ............................................................ | 86,815 | 99 | (47,920) | 38,994 | 2.8 |
Total ............................................................. | $422,534 | $721 | $(220,678) | ||
November 30, 2024 | Weighted Average Remaining Lives (Years) | |||||
$ in thousands | Gross Cost | Assets Acquired (1) | Impairment Losses | Accumulated Amortization | Net Carrying Amount | |
Customer relationships | $26,450 | $— | $(104,539) | $57,960 | 5.6 | |
Trademarks and trade names .............................. | 146,032 | 8,533 | — | (45,412) | 109,153 | 21.4 |
Exchange and clearing organization membership interests and registrations ............ | 8,715 | — | (10) | — | 8,705 | N/A |
Other ................................ | 50,930 | 26,316 | — | (26,693) | 50,553 | 3.9 |
Total ................................ | $61,299 | $(10) | $(176,644) | |||
(1)Includes a $39.3 million measurement period adjustment recorded during the
first quarter of 2024 related to the OpNet acquisition. Refer to Note 4,
Business Acquisitions and Discontinued Operations for further information.
At August 1, 2025, we performed our annual impairment testing
of intangible assets with an indefinite useful life consisting of
exchange and clearing organization membership interests and
registrations. We utilized quantitative assessments of
membership interests and registrations that have available
quoted sales prices as well as certain other membership
interests and registrations that have declined in utilization and
qualitative assessments were performed on the remainder of our
indefinite-life intangible assets. In applying our quantitative
assessments, there were no impairment losses on certain
exchange membership interests and registrations. With regard to
our qualitative assessments of the remaining indefinite life
intangible assets, based on our assessments of market
conditions, the utilization of the assets and the replacement
costs associated with the assets, we have concluded that it is
more likely than not that the intangible assets are not impaired.
Amortization Expense
For finite life intangible assets, we recognized aggregate
amortization expense of $33.5 million, $30.3 million and $9.3
million for the years ended November 30, 2025, 2024 and 2023,
respectively. These expenses are included in Depreciation and
amortization.
Estimated future amortization expense:
Year Ending November 30, | $ in thousands |
2026 ........................................................................................................ | $33,273 |
2027 ........................................................................................................ | 29,994 |
2028 ........................................................................................................ | 28,505 |
2029 ........................................................................................................ | 16,215 |
2030 ........................................................................................................ | 9,308 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 28, 2026 | Showing above |
| 2024 | Jan 28, 2025 | |
| 2023 | Jan 26, 2024 | |
| 2022 | Jan 27, 2023 | |
| 2021 | Jan 28, 2022 | |
| 2020 | Jan 29, 2021 | |
| 2019 | Jan 29, 2020 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 19, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.