Jefferies Financial : Consolidated Statement of Financial Condition (Unaudited) (5/31/2021)

JEFFERIES LLC

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

AS OF MAY 31, 2021

(UNAUDITED)

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JEFFERIES LLC

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AS OF MAY 31, 2021

(Dollars in thousands)

ASSETS
Cash and cash equivalents................................................................................................................	$	3,359,551
Cash and securities segregated and on deposit for regulatory purposes or		802,625
deposited with clearing and depository organizations..................................................................
Financial instruments owned, at fair value, including securities pledged of $7,220,730.................		9,877,166
Securities borrowed..........................................................................................................................		5,979,191
Securities purchased under agreements to resell .............................................................................		1,935,651
Receivables:
Brokers, dealers and clearing organizations.................................................................................		1,136,564
Customers.....................................................................................................................................		2,118,166
Fees, interest and other.................................................................................................................		308,125
Premises and equipment, net............................................................................................................		624,874
Goodwill...........................................................................................................................................		1,356,683
Other assets.......................................................................................................................................		651,881
Total assets........................................................................................................................................	$	28,150,477
LIABILITIES AND MEMBER'S EQUITY
LIABILITIES:
Short-termborrowings......................................................................................................................	$	431,790
Financial instruments sold, not yet purchased, at fair value.............................................................		5,832,083
Securities loaned...............................................................................................................................		1,667,329
Securities sold under agreements to repurchase...............................................................................		4,859,511
Other secured financings (includes $2,493 at fair value and $200,000 related to consolidated		202,493
VIEs).................................................................................................................................................
Payables:
Brokers and dealers.......................................................................................................................		1,644,520
Customers.....................................................................................................................................		4,679,143
Lease liabilities.................................................................................................................................		363,981
Accrued expenses and other liabilities (includes $96 related to consolidated VIEs).......................		2,334,686
Total liabilities..................................................................................................................................		22,015,536
Subordinated liabilities.....................................................................................................................		2,150,000
Member's equity...............................................................................................................................		3,984,941
Total liabilities and member's equity...............................................................................................	$	28,150,477

See accompanying notes to Consolidated Statement of Financial Condition.

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JEFFERIES LLC

NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (UNAUDITED) MAY 31, 2021

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization and Business - Jefferies LLC ("the Company") is a wholly owned subsidiary of Jefferies Group LLC (the "Parent"), which in turn is a wholly owned subsidiary of Jefferies Financial Group Inc. ("Jefferies" or the "Ultimate Parent"), a diversified holding company incorporated in the state of New York and engaged in a variety of businesses. The Company is registered with the Securities and Exchange Commission ("SEC") as a broker-dealer under the Securities Exchange Act of 1934 (the "Act") and is registered as a Futures Commission Merchant ("FCM") with the Commodity Futures Trading Commission ("CFTC"). The Company is a member of the Financial Industry Regulatory Authority ("FINRA") and the National Futures Association ("NFA"). FINRA is the designated examining authority for the Company and the NFA is the designated self-regulatory organization for the Company as an FCM.

The Company operates as an institutional securities broker-dealer and FCM and is managed as a single reportable business segment, Investment Banking and Capital Markets. The Investment Banking and Capital Markets reportable business segment provides several types of financial services, including sales, trading, financing and market-making activities in equity, high yield, corporate bond, mortgage-backed and asset-backed, municipal, government and agency, convertible and international securities. The Investment Banking and Capital Markets reportable business segment also provides investment banking services comprised of securities underwriting and distribution and financial advisory services, including advice on mergers and acquisitions, recapitalizations and restructurings, as well as fundamental research and prime brokerage services. The Company also introduces certain customer accounts to a third-partybroker-dealer.

Basis of Presentation - The accompanying Consolidated Statement of Financial Condition has been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These principles require management to make a number of estimates and assumptions that may affect the amounts reported in the Consolidated Statement of Financial Condition and accompanying notes. 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.

Consolidation - The Company consolidates entities that meet the definition of a variable interest entity ("VIE") for which it is the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and who has an obligation to absorb losses of the entity, or a right to receive benefits from the entity that could potentially be significant to the entity. In situations where the Company has significant influence, but not control, of an entity that does not qualify as a VIE, it applies the equity method of accounting or fair value accounting pursuant to the fair value option election under U.S. GAAP. See Note 8, Variable Interest Entities, for further discussion on VIEs.

All material intercompany accounts and transactions are eliminated in consolidation.

Subsequent events - Management has evaluated events and transactions that occurred subsequent to May 31, 2021 through the date this Consolidated Statement of Financial Condition was issued. In June 2021, the Company's Board of Directors declared a capital distribution of $1.0 billion from the Company to its Parent, which was paid on June 17, 2021. In addition, in June 2021, the Company's Board of Directors approved a $1.0 billion subordinated loan agreement with the Parent, which was received by the Company on June 17, 2021. This subordinated loan agreement has an initial six year term; bears interest at a rate of 3.25% per annum and automatically extends for additional one year periods, unless specified actions are taken prior to the maturity date by the Company or Parent. The Company determined that there were no other events or transactions during such period requiring recognition or disclosure in the Consolidated Statement of Financial Condition.

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JEFFERIES LLC

NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (UNAUDITED) - CONTINUED MAY 31, 2021

2. SIGNIFICANT ACCOUNTING POLICIES

Cash Equivalents - Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less.

Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations - In accordance with Rule 15c3-3of the Securities Exchange Act, the Company, as a broker-dealercarrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by the Company to conduct day to day activities.

Foreign Currency Translation - Assets and liabilities of the Company's foreign branch having a non- U.S. dollar functional currency are translated at exchange rates at the end of the reporting period.

Financial Instruments and Fair Value - Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent the Company's trading activities and include both cash and derivative products. The fair value of a financial instrument is the amount 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 exit price).

Fair Value Hierarchy. In determining fair value, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company applies a hierarchy to categorize its fair value measurements broken down into three levels based on the transparency of inputs as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments.

Level 2 - Pricing inputs other than quoted prices in active markets, which are either directly or indirectly observable at the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments for which fair values have been derived using model inputs that are directly observable in the market, or can be derived principally from, or corroborated by, observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed.

Level 3 - Instruments that have little to no pricing observability at the reported date. These financial instruments are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets the Company's best estimate of fair value. The Company uses prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based on the best available information, taking into account the types of financial instruments, current financial information, restrictions (if any) on dispositions, fair values of underlying financial instruments and quotations for similar instruments.

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JEFFERIES LLC

NOTES TO CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (UNAUDITED) - CONTINUED MAY 31, 2021

The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models are permitted based on management's judgment, which takes into consideration the features of the financial instrument such as its complexity, the market in which the financial instrument is traded and underlying risk uncertainties about market conditions. Adjustments from the price derived from a valuation model reflect management's judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.

The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. The degree of judgment exercised in determining fair value is greatest for instruments categorized within Level 3.

Receivable from and Payable to Customers - Receivable from and payable to customers includes amounts receivable and payable on customers' security and margin transactions. Securities owned by customers and held as collateral for these receivables and as margin for trading are not reflected in the Consolidated Statement of Financial Condition.

Receivable from and Payable to Brokers, Dealers and Clearing Organizations - Receivables from and payables to brokers, dealers and clearing organizations include deposits of cash and/or securities with exchange clearing organizations to meet margin requirements, amounts due to or from clearing organizations for daily variation settlements, securities failed-to-deliveror receive, receivables and payables for fees and commissions and net receivables or payables arising from unsettled security transactions.

Securities Borrowed and Securities Loaned - Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, the Company borrows securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lends securities to other brokers and dealers for similar purposes. The Company has an active securities borrowed and lending matched book business in which it borrows securities from one party and lends them to another party. When the Company borrows securities, it generally provides cash to the lender as collateral, which is reflected in the Consolidated Statement of Financial Condition as Securities borrowed. Similarly, when the Company lends securities to another party, that party provides cash to the Company as collateral, which is reflected in the Consolidated Statement of Financial Condition as Securities loaned. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. The Company monitors the fair value of the securities borrowed and loaned on a daily basis and requests additional collateral or returns excess collateral, as appropriate.

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase - Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively "repos") are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. Repos are presented in the Consolidated Statement of Financial Condition on a net basis by counterparty, where permitted by U.S. GAAP. The Company monitors the fair value of the underlying securities daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate.

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