Jefferies Financial Group Inc

Condensed Statements of Financial Condition

Condensed Statements of Earnings and Comprehensive Income

Condensed Statements of Cash Flows

Parent Company’s cash, cash equivalents and restricted cash by category within the Condensed Statements of Financial Condition:

Notes to Condensed Financial Statements

Note 1. Introduction and Basis of Presentation

The accompanying condensed financial statements (the “Parent

Company Financial Statements”), including the notes thereto,

should be read in conjunction with the consolidated financial

statements of Jefferies Financial Group Inc. (the “Company”) and

the notes thereto found in the Company’s Annual Report on Form

10-K for the year ended November 30, 2024. For purposes of

these condensed financial statements, the Company’s wholly-

owned and majority owned subsidiaries are accounted for using

the equity method of accounting (“equity method subsidiaries”).

The Parent Company Financial Statements have been prepared in

accordance with U.S. generally accepted accounting principles

(“U.S. GAAP”) for financial information. The significant

accounting policies of the Parent Company Financial Statements

are those used by the Company on a consolidated basis, to the

extent applicable. For further information regarding the

significant accounting policies refer to Note 2, Summary of

Significant Accounting Policies in the Company’s consolidated

financial statements included in the Annual Report on Form 10-K

for the year ended November 30, 2024.

The Company has made a number of estimates and assumptions

relating to the reporting of assets and liabilities and the

disclosure of contingent assets and liabilities to prepare these

financial statements in conformity with U.S. GAAP. The most

important of these estimates and assumptions relate to fair value

measurements, compensation and benefits, goodwill and

intangible assets, the ability to realize deferred tax assets and the

recognition and measurement of uncertain tax positions.

Although these and other estimates and assumptions are based

on the best available information, actual results could be

materially different from these estimates.

Note 2. Transactions with Subsidiaries

The Parent Company has transactions with its consolidated

subsidiaries and certain other affiliated entities determined on an

agreed upon basis and has guaranteed certain unsecured lines of

credit and contractual obligations of certain equity method

Note 3. Guarantees

In the normal course of its business, the Parent Company issues

guarantees in respect of obligations of certain of its wholly-

owned subsidiaries under trading and other financial

arrangements, including guarantees to various trading

counterparties and banks. The Parent Company records all

derivative contracts and Financial instruments owned and

Financial instruments sold, not yet purchased at fair value in its

Certain of the Parent Company’s equity method subsidiaries are

members of various exchanges and clearing houses. In the

normal course of business, the Parent Company provides

guarantees to securities clearinghouses and exchanges. These

guarantees generally are required under the standard

membership agreements, such that members are required to

guarantee the performance of other members. Additionally, if a

member becomes unable to satisfy its obligations to the

clearinghouse, other members would be required to meet these

shortfalls. To mitigate these performance risks, the exchanges

and clearinghouses often require members to post collateral. The

Parent Company’s obligations under such guarantees could

exceed the collateral amounts posted. The maximum potential

liability under these arrangements cannot be quantified; however,

the potential for the Parent Company to be required to make

payments under such guarantees is deemed remote. Accordingly,

no liability has been recognized for these arrangements.

The Parent Company guarantees certain financing arrangements

of subsidiaries. The maximum amount payable under these

guarantees is$1.10 billion at November 30, 2024. For further

information, refer to Note 18, Borrowings in the Company’s

consolidated financial statements included in the Annual Report

on Form 10-K for the year ended November 30, 2024.