1. Nature of Operations Leucadia National Corporation ("Leucadia" or the "Company") is a diversified holding company focused on return on investment and long-term value creation to maximize shareholder value. We continuously review acquisitions of businesses, securities and assets that have the potential for significant long-term value creation, invest in a broad array of businesses, and evaluate the retention and disposition of our existing operations and holdings. Changes in the mix of our businesses and investments should be expected. Our financial services businesses and investments include Jefferies (investment banking and capital markets), Leucadia Asset Management (asset management), FXCM (a publicly traded company providing online foreign exchange trading), HomeFed (a publicly traded real estate company), and Berkadia (commercial mortgage banking and servicing). We also own and have investments in a diverse array of other businesses, including National Beef (beef processing), HRG Group, formerly known as Harbinger (a publicly traded diversified holding company), Vitesse Energy and Juneau Energy (oil and gas exploration and development), Garcadia (automobile dealerships), Linkem (fixed wireless broadband services in Italy), Conwed Plastics and Idaho Timber (manufacturing companies), and Golden Queen (a gold and silver mining project). The structure of each of our investments is tailored to the unique opportunity each transaction presents. Our investments may be reflected in our consolidated results as operating subsidiaries, equity investments, receivables, securities, or in other ways, depending on the structure of our holdings. Jefferies is a global full service, integrated securities and investment banking firm. In March of 2013, Jefferies became an indirect wholly-owned subsidiary of Leucadia, yet retains a separate credit rating and continues to be a separate SEC reporting company. Through Jefferies, we own 50 % of Jefferies Finance, our joint venture with Babson Capital Management LLC and Massachuset