Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 19, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'PJC | ' | ' |
Entity Registrant Name | 'Piper Jaffray Companies | ' | ' |
Entity Central Index Key | '0001230245 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 16,171,560 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Public Float | ' | ' | $508 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $123,683 | $105,371 |
Cash and cash equivalents segregated for regulatory purposes | 43,012 | 31,007 |
Receivables: | ' | ' |
Customers | 11,633 | 13,795 |
Brokers, dealers and clearing organizations | 127,113 | 148,117 |
Securities purchased under agreements to resell | 167,875 | 145,433 |
Financial instruments and other inventory positions owned | 406,513 | 384,789 |
Financial instruments and other inventory positions owned and pledged as collateral | 957,515 | 826,806 |
Total financial instruments and other inventory positions owned | 1,364,028 | 1,211,595 |
Fixed assets (net of accumulated depreciation and amortization of $62,311 and $61,032, respectively) | 16,114 | 15,089 |
Goodwill | 210,634 | 196,844 |
Intangible assets (net of accumulated amortization of $31,869 and $23,876, respectively) | 39,930 | 41,258 |
Investments | 112,043 | 85,772 |
Other assets | 102,092 | 88,799 |
Assets held for sale | 0 | 4,653 |
Total assets | 2,318,157 | 2,087,733 |
Liabilities and Shareholders’ Equity | ' | ' |
Short-term financing | 514,711 | 477,014 |
Variable rate senior notes | 125,000 | 125,000 |
Payables: | ' | ' |
Customers | 33,109 | 42,007 |
Brokers, dealers and clearing organizations | 27,722 | 60,155 |
Securities sold under agreements to repurchase | 4,397 | 50,000 |
Financial instruments and other inventory positions sold, but not yet purchased | 512,833 | 357,201 |
Accrued compensation | 159,928 | 132,124 |
Other liabilities and accrued expenses | 58,385 | 53,193 |
Liabilities held for sale | 0 | 864 |
Total liabilities | 1,436,085 | 1,297,558 |
Shareholders’ equity: | ' | ' |
Common stock, $0.01 par value: Shares authorized: 100,000,000 at December 31, 2013 and December 31, 2012; Shares issued: 19,537,127 at December 31, 2013 and 19,530,359 at December 31, 2012; Shares outstanding: 14,383,418 at December 31, 2013 and 15,213,796 at December 31, 2012 | 195 | 195 |
Additional paid-in capital | 740,321 | 754,566 |
Retained earnings | 163,893 | 118,803 |
Less common stock held in treasury, at cost: 5,153,709 shares at December 31, 2013 and 4,316,563 shares at December 31, 2012 | -170,629 | -140,939 |
Accumulated other comprehensive income | 896 | 667 |
Total common shareholders’ equity | 734,676 | 733,292 |
Noncontrolling interests | 147,396 | 56,883 |
Total shareholders’ equity | 882,072 | 790,175 |
Total liabilities and shareholders’ equity | $2,318,157 | $2,087,733 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated depreciation and amortization on fixed assets | $62,311 | $61,032 |
Accumulated amortization on intangible assets | $31,869 | $23,876 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,537,127 | 19,530,359 |
Common stock, shares outstanding | 14,383,418 | 15,213,796 |
Common stock held in treasury, shares | 5,153,709 | 4,316,563 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues: | ' | ' | ' | |||
Investment banking | $248,563 | $232,958 | $202,513 | |||
Institutional brokerage | 146,648 | 166,642 | 135,358 | |||
Asset management | 83,045 | 65,699 | 63,307 | |||
Interest | 50,409 | 37,845 | 43,447 | |||
Investment income | 21,566 | 4,903 | 8,178 | |||
Total revenues | 550,231 | 508,047 | 452,803 | |||
Interest expense | 25,036 | 19,095 | 20,720 | |||
Net revenues | 525,195 | 488,952 | 432,083 | |||
Non-interest expenses: | ' | ' | ' | |||
Compensation and benefits | 322,464 | 296,882 | 265,015 | |||
Occupancy and equipment | 25,493 | 26,454 | 28,430 | |||
Communications | 21,431 | 20,543 | 22,121 | |||
Floor brokerage and clearance | 8,270 | 8,054 | 8,925 | |||
Marketing and business development | 21,603 | 19,908 | 22,640 | |||
Outside services | 32,982 | 27,998 | 27,570 | |||
Restructuring and integration costs | 4,689 | 3,642 | 0 | |||
Goodwill impairment | 0 | 0 | 120,298 | |||
Intangible asset amortization expense | 7,993 | 6,944 | 7,256 | |||
Other operating expenses | 4,657 | 9,516 | 10,017 | |||
Total non-interest expenses | 449,582 | 419,941 | 512,272 | |||
Income/(loss) from continuing operations before income tax expense | 75,613 | 69,011 | -80,189 | |||
Income tax expense | 20,390 | 19,470 | 9,120 | |||
Income/(loss) from continuing operations | 55,223 | 49,541 | -89,309 | |||
Discontinued operations: | ' | ' | ' | |||
Loss from discontinued operations, net of tax | -4,739 | -5,807 | -11,248 | |||
Net income/(loss) | 50,484 | 43,734 | -100,557 | |||
Net income applicable to noncontrolling interests | 5,394 | 2,466 | 1,463 | |||
Net income/(loss) applicable to Piper Jaffray Companies | 45,090 | 41,268 | -102,020 | |||
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders | 40,596 | [1] | 35,335 | [1] | -102,020 | [1],[2] |
Amounts applicable to Piper Jaffray Companies | ' | ' | ' | |||
Net income/(loss) from continuing operations | 49,829 | 47,075 | -90,772 | |||
Net loss from discontinued operations | ($4,739) | ($5,807) | ($11,248) | |||
Earnings/(loss) per basic common share | ' | ' | ' | |||
Income from continuing operations | $2.98 | $2.58 | ($5.79) | |||
Loss from discontinued operations | ($0.28) | ($0.32) | ($0.72) | |||
Earnings per basic common share | $2.70 | $2.26 | ($6.51) | |||
Earnings/(loss) per diluted common share | ' | ' | ' | |||
Income from continuing operations | $2.98 | $2.58 | ($5.79) | |||
Loss from discontinued operations | ($0.28) | ($0.32) | ($0.72) | |||
Earnings per diluted common share | $2.70 | $2.26 | ($6.51) | [3] | ||
Weighted average number of common shares outstanding | ' | ' | ' | |||
Basic | 15,046 | 15,615 | 15,672 | |||
Diluted | 15,061 | 15,616 | 15,672 | [3] | ||
[1] | Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders for diluted and basic EPS may differ under the two-class method as a result of adding the effect of the assumed exercise of stock options to dilutive shares outstanding, which alters the ratio used to allocate earnings to Piper Jaffray Companies’ common shareholders and participating securities for purposes of calculating diluted and basic EPS. | |||||
[2] | No allocation of income was made due to loss position. | |||||
[3] | Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income/(loss) | $50,484 | $43,734 | ($100,557) |
Other comprehensive income/(loss), net of tax: | ' | ' | ' |
Adjustment to unrecognized pension cost | -38 | 0 | 0 |
Foreign currency translation adjustment | 267 | 62 | -122 |
Total other comprehensive income, net of tax | 229 | 62 | -122 |
Comprehensive income/(loss) | 50,713 | 43,796 | -100,679 |
Comprehensive income applicable to noncontrolling interests | 5,394 | 2,466 | 1,463 |
Comprehensive income/(loss) applicable to Piper Jaffray Companies | $45,319 | $41,330 | ($102,142) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) | Parent | Noncontrolling Interests |
In Thousands, except Share data | ||||||||
Beginning Balance at Dec. 31, 2010 | $818,101 | $195 | $836,152 | $179,555 | ($203,317) | $727 | $813,312 | $4,789 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 14,652,665 | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -100,557 | 0 | 0 | -102,020 | 0 | 0 | -102,020 | 1,463 |
Amortization/issuance of restricted stock | 29,459 | 0 | 29,459 | 0 | 0 | 0 | 29,459 | 0 |
Repurchase of common stock through share repurchase program, shares | ' | -293,829 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock through share repurchase program | -5,994 | 0 | 0 | 0 | -5,994 | 0 | -5,994 | 0 |
Reissuance of treasury shares (in shares) | ' | 1,796,239 | ' | ' | ' | ' | ' | ' |
Reissuance of treasury shares | 40 | 0 | -74,920 | 0 | 74,960 | 0 | 40 | 0 |
Stock Repurchased To Satisfy Employees Tax Withholding (in shares) | ' | -509,671 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock for employee tax withholding | -20,535 | 0 | 0 | 0 | -20,535 | 0 | -20,535 | 0 |
Treasury Stock Issued (in shares) | ' | 90,085 | ' | ' | ' | ' | ' | ' |
Issuance of treasury shares for 401k match | 3,814 | 0 | 38 | 0 | 3,776 | 0 | 3,814 | 0 |
Shares reserved to meet deferred compensation obligations (in shares) | ' | 14,699 | ' | ' | ' | ' | ' | ' |
Shares reserved to meet deferred compensation obligations | 437 | 0 | 437 | 0 | 0 | 0 | 437 | 0 |
Other comprehensive loss | -122 | 0 | 0 | 0 | 0 | -122 | -122 | 0 |
Proceeds from Noncontrolling Interests | 25,957 | 0 | 0 | 0 | 0 | 0 | 0 | 25,957 |
Ending Balance at Dec. 31, 2011 | 750,600 | 195 | 791,166 | 77,535 | -151,110 | 605 | 718,391 | 32,209 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 15,750,188 | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 43,734 | 0 | 0 | 41,268 | 0 | 0 | 41,268 | ' |
Amortization/issuance of restricted stock | 16,681 | 0 | 16,681 | 0 | 0 | 0 | 16,681 | 0 |
Repurchase of common stock through share repurchase program, shares | ' | -1,645,458 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock through share repurchase program | -38,068 | 0 | 0 | 0 | -38,068 | 0 | -38,068 | 0 |
Reissuance of treasury shares (in shares) | 937,978 | 1,323,427 | ' | ' | ' | ' | ' | ' |
Reissuance of treasury shares | 0 | 0 | -50,776 | 0 | 50,776 | 0 | 0 | 0 |
Stock Repurchased To Satisfy Employees Tax Withholding (in shares) | ' | -385,449 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock for employee tax withholding | -9,096 | 0 | 0 | 0 | -9,096 | 0 | -9,096 | 0 |
Treasury Stock Issued (in shares) | ' | 165,241 | ' | ' | ' | ' | ' | ' |
Issuance of treasury shares for 401k match | 3,814 | 0 | -2,745 | 0 | 6,559 | 0 | 3,814 | 0 |
Shares reserved to meet deferred compensation obligations (in shares) | ' | 5,847 | ' | ' | ' | ' | ' | ' |
Shares reserved to meet deferred compensation obligations | 240 | 0 | 240 | 0 | 0 | 0 | 240 | 0 |
Other comprehensive loss | 62 | 0 | 0 | 0 | 0 | 62 | 62 | 0 |
Proceeds from Noncontrolling Interests | 22,208 | 0 | 0 | 0 | 0 | 0 | 0 | 22,208 |
Ending Balance at Dec. 31, 2012 | 790,175 | 195 | 754,566 | 118,803 | -140,939 | 667 | 733,292 | 56,883 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 15,213,796 | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 50,484 | 0 | 0 | 45,090 | 0 | 0 | 45,090 | 5,394 |
Amortization/issuance of restricted stock | 23,528 | 0 | 23,528 | 0 | 0 | 0 | 23,528 | 0 |
Repurchase of common stock through share repurchase program, shares | -1,719,662 | -1,719,662 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock through share repurchase program | -55,929 | 0 | 0 | 0 | -55,929 | 0 | -55,929 | 0 |
Reissuance of treasury shares (in shares) | 786,467 | 1,173,180 | ' | ' | ' | ' | ' | ' |
Reissuance of treasury shares | 0 | 0 | -38,636 | 0 | 38,636 | 0 | 0 | 0 |
Stock Repurchased To Satisfy Employees Tax Withholding (in shares) | ' | -386,713 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock for employee tax withholding | -15,533 | 0 | 0 | 0 | -15,533 | 0 | -15,533 | 0 |
Treasury Stock Issued (in shares) | ' | 96,049 | ' | ' | ' | ' | ' | ' |
Issuance of treasury shares for 401k match | 3,939 | 0 | 803 | 0 | 3,136 | 0 | 3,939 | 0 |
Shares reserved to meet deferred compensation obligations (in shares) | ' | 6,768 | ' | ' | ' | ' | ' | ' |
Shares reserved to meet deferred compensation obligations | 60 | 0 | 60 | 0 | 0 | 0 | 60 | 0 |
Other comprehensive loss | 229 | 0 | 0 | 0 | 0 | 229 | 229 | 0 |
Proceeds from Noncontrolling Interests | 85,119 | 0 | 0 | 0 | 0 | 0 | 0 | 85,119 |
Ending Balance at Dec. 31, 2013 | $882,072 | $195 | $740,321 | $163,893 | ($170,629) | $896 | $734,676 | $147,396 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 14,383,418 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities: | ' | ' | ' |
Net income/(loss) | $50,484 | $43,734 | ($100,557) |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ' | ' | ' |
Depreciation and amortization of fixed assets | 5,714 | 7,005 | 7,338 |
Deferred income taxes | -2,630 | 11,458 | 17,100 |
Loss on sale of FAMCO | 1,876 | 0 | 0 |
Loss on disposal of fixed assets | 0 | 1,624 | 0 |
Share-based and deferred compensation | 21,598 | 20,641 | 22,803 |
Goodwill impairment | 0 | 5,508 | 120,298 |
Amortization of intangible assets | 7,993 | 7,669 | 8,276 |
Amortization of forgivable loans | 6,300 | 8,057 | 8,365 |
Decrease/(increase) in operating assets: | ' | ' | ' |
Cash and cash equivalents segregated for regulatory purposes | -12,005 | -5,999 | 1,998 |
Receivables: | ' | ' | ' |
Customers | 2,162 | 10,395 | 18,706 |
Brokers, dealers and clearing organizations | 21,004 | -23,452 | 66,655 |
Securities purchased under agreements to resell | -22,442 | 14,713 | 98,851 |
Net financial instruments and other inventory positions owned | 4,685 | -360,317 | 14,326 |
Investments | -26,271 | -17,444 | -8,239 |
Other assets | -3,867 | -15,362 | 6,779 |
Payables: | ' | ' | ' |
Customers | -8,898 | 12,592 | -22,826 |
Brokers, dealers and clearing organizations | -33,559 | 24,720 | 19,466 |
Securities sold under agreements to repurchase | 4,397 | 0 | -8,581 |
Accrued compensation | 32,233 | 23,424 | -27,225 |
Other liabilities and accrued expenses | -2,354 | 18,945 | -38,685 |
Decrease in assets held for sale | 605 | 435 | 438 |
Increase/(decrease) in liabilities held for sale | -465 | -128 | 47 |
Net cash provided by/(used in) operating activities | 46,560 | -211,782 | 205,333 |
Investing Activities: | ' | ' | ' |
Business acquisitions, net of cash acquired | -24,726 | 0 | -56 |
Sale of FAMCO | 250 | 0 | 0 |
Purchases of fixed assets, net | -5,476 | -2,131 | -7,648 |
Net cash used in investing activities | -29,952 | -2,131 | -7,704 |
Financing Activities: | ' | ' | ' |
Increase/(decrease) in short-term financing | 37,697 | 308,313 | -29,940 |
Issuance/(repayment) of variable rate senior notes | 0 | 125,000 | 0 |
Decrease in bank syndicated financing | 0 | -115,000 | -10,000 |
Decrease in securities sold under agreements to repurchase | -50,000 | -59,080 | -122,219 |
Increase in noncontrolling interests | 85,119 | 22,208 | 25,957 |
Repurchase of common stock | -71,462 | -47,164 | -26,529 |
Excess tax benefit from share-based compensation | 47 | 0 | 0 |
Proceeds from stock option transactions | 0 | 0 | 40 |
Net cash provided by/(used in) financing activities | 1,401 | 234,277 | -162,691 |
Currency adjustment: | ' | ' | ' |
Effect of exchange rate changes on cash | 303 | -17 | -130 |
Net increase in cash and cash equivalents | 18,312 | 20,347 | 34,808 |
Cash and cash equivalents at beginning of year | 105,371 | 85,024 | 50,216 |
Cash and cash equivalents at end of year | 123,683 | 105,371 | 85,024 |
Supplemental disclosure of cash flow information – | ' | ' | ' |
Interest | 23,487 | 22,129 | 25,700 |
Income taxes | 745 | -4,961 | 14,982 |
Non-cash financing activities – | ' | ' | ' |
Issuance of common stock for retirement plan obligations: 96,049 shares, 165,241 shares and 90,085 shares for the years ended December 31, 2013, 2012 and 2011, respectively | 3,939 | 3,814 | 3,814 |
Issuance of restricted common stock for annual equity award: 431,582 shares, 487,181 shares and 592,697 shares for the years ended December 31, 2013, 2012 and 2011, respectively | $17,699 | $11,244 | $25,095 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Number of common stock issued for retirement plan obligations | 96,049 | 165,241 | 90,085 |
Number of restricted common stock issued for annual equity award | 431,582 | 487,181 | 592,697 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Basis of Presentation | ' |
Organization and Basis of Presentation | |
Organization | |
Piper Jaffray Companies is the parent company of Piper Jaffray & Co. (“Piper Jaffray”), a securities broker dealer and investment banking firm; Piper Jaffray Ltd., a firm providing securities brokerage and mergers and acquisitions services in Europe headquartered in London, England; Advisory Research, Inc. (“ARI”), which provides asset management services to separately managed accounts, closed-end and open-end funds and partnerships; Piper Jaffray Investment Group Inc., which consists of entities providing alternative asset management services; Piper Jaffray Financial Products Inc., Piper Jaffray Financial Products II Inc. and Piper Jaffray Financial Products III Inc., entities that facilitate derivative transactions; and other immaterial subsidiaries. Piper Jaffray Companies and its subsidiaries (collectively, the “Company”) operate in two reporting segments: Capital Markets and Asset Management. A summary of the activities of each of the Company’s business segments is as follows: | |
Capital Markets | |
The Capital Markets segment provides institutional sales, trading and research services and investment banking services. Institutional sales, trading and research services focus on the trading of equity and fixed income products with institutions, government and non-profit entities. Revenues are generated through commissions and sales credits earned on equity and fixed income institutional sales activities, net interest revenues on trading securities held in inventory, and profits and losses from trading these securities. Investment banking services include management of and participation in underwritings, merger and acquisition services and public finance activities. Revenues are generated through the receipt of advisory and financing fees. Also, the Company generates revenue through strategic trading activities, which focus on proprietary investments in municipal bonds, mortgage-backed securities, equity securities and merchant banking activities, which involve equity or debt investments in late stage private companies. As certain of these efforts have matured and an investment process has been developed, the Company has created alternative asset management funds in merchant banking and municipal securities in order to invest firm capital as well as to seek capital from outside investors. The Company receives management and performance fees for managing these funds. | |
As discussed in Note 5, the Company discontinued its Hong Kong capital markets business in 2012. | |
Asset Management | |
The Asset Management segment provides traditional asset management services with product offerings in equity securities and master limited partnerships to institutions and individuals. Revenues are generated in the form of management and performance fees. Revenues are also generated through investments in the partnerships and funds that the Company manages. | |
As discussed in Note 5, Fiduciary Asset Management, LLC (“FAMCO”) was sold on April 30, 2013. | |
Basis of Presentation | |
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Piper Jaffray Companies, its wholly owned subsidiaries, and all other entities in which the Company has a controlling financial interest. Noncontrolling interests represent equity interests in consolidated entities that are not attributable, either directly or indirectly, to Piper Jaffray Companies. Noncontrolling interests include the minority equity holders’ proportionate share of the equity in a municipal bond fund, merchant banking fund and private equity investment vehicles. All material intercompany balances have been eliminated. | |
The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates and assumptions are based on the best information available, actual results could differ from those estimates. | |
Reclassifications | |
In 2013, the Company reclassified interest revenue and expense associated with its derivative contracts to investment banking or institutional brokerage revenues within the consolidated statements of operations to more accurately reflect the nature and intent of the derivative instrument. The Company reclassified $11.0 million and $12.0 million of interest revenue and $10.2 million and $10.9 million of interest expense for the years ended December 31, 2012 and 2011, respectively. This change had no effect on net revenues, net income, shareholders’ equity or cash flows for any of the periods presented. | |
In 2012, the Company reclassified the value of restricted stock forfeitures from other income to a reduction of compensation and benefits expense within the consolidated statements of operations to be consistent with the reporting of forfeitures for the Piper Jaffray Companies Mutual Fund Restricted Share Investment Plan and to more accurately reflect compensation expense. The reclassified amount within continuing operations was $3.3 million for the year ended December 31, 2011. This change had no effect on shareholders’ equity, net income or cash flows for the period presented. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Principles of Consolidation | |
The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”). | |
Voting interest entities are entities in which the total equity investment at risk is sufficient to enable each entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right or power to make decisions about or direct the entity’s activities that most significantly impact the entity’s economic performance. Voting interest entities, where the Company has a majority interest, are consolidated in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 810, “Consolidations” (“ASC 810”). ASC 810 states that the usual condition for a controlling financial interest in an entity is ownership of a majority voting interest. Accordingly, the Company consolidates voting interest entities in which it has all, or a majority of, the voting interests. | |
As defined in ASC 810, VIEs are entities that lack one or more of the characteristics of a voting interest entity described above. With the exception of entities eligible for the deferral codified in FASB Accounting Standards Update (“ASU”) No. 2010-10, “Consolidation: Amendments for Certain Investment Funds,” (“ASU 2010-10”) (generally asset managers and investment companies), ASC 810 states that a controlling financial interest in an entity is present when an enterprise has a variable interest, or combination of variable interests, that have both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity or the rights to receive benefits from the entity that could potentially be significant to the entity. Accordingly, the Company consolidates VIEs in which the Company has a controlling financial interest. | |
Entities meeting the deferral provision defined by ASU 2010-10 are evaluated under the historical VIE guidance. Under the historical guidance, a controlling financial interest in an entity is present when an enterprise has a variable interest, or combination of variable interests, that will absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns, or both. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. Accordingly, the Company consolidates VIEs subject to the deferral provisions defined by ASU 2010-10 in which the Company is deemed to be the primary beneficiary. | |
When the Company does not have a controlling financial interest in an entity but exerts significant influence over the entity’s operating and financial policies (generally defined as owning a voting or economic interest of between 20 percent to 50 percent), the Company accounts for its investment in accordance with the equity method of accounting prescribed by FASB Accounting Standards Codification Topic 323, “Investments — Equity Method and Joint Ventures.” If the Company does not have a controlling financial interest in, or exert significant influence over, an entity, the Company accounts for its investment at fair value, if the fair value option was elected, or at cost. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash and highly liquid investments with maturities of 90 days or less at the date of origination. | |
In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Piper Jaffray, as a registered broker dealer carrying customer accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its customers. | |
Customer Transactions | |
Customer securities transactions are recorded on a settlement date basis, while the related revenues and expenses are recorded on a trade date basis. Customer receivables and payables include amounts related to both cash and margin transactions. Securities owned by customers, including those that collateralize margin or other similar transactions, are not reflected on the consolidated statements of financial condition. | |
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | |
Receivables from brokers, dealers and clearing organizations include receivables arising from unsettled securities transactions, deposits paid for securities borrowed, receivables from clearing organizations, deposits with clearing organizations and amounts receivable for securities not delivered to the purchaser by the settlement date (“securities failed to deliver”). Payables to brokers, dealers and clearing organizations include payables arising from unsettled securities transactions, payables to clearing organizations and amounts payable for securities not received from a seller by the settlement date (“securities failed to receive”). Unsettled securities transactions related to the Company's broker dealer operations are recorded at contract value on a net basis. Unsettled securities transactions related to the Company's consolidated investment company operations are recorded on a gross basis. | |
Collateralized Securities Transactions | |
Securities purchased under agreements to resell and securities sold under agreements to repurchase are carried at the contractual amounts at which the securities will be subsequently resold or repurchased, including accrued interest. It is the Company’s policy to take possession or control of securities purchased under agreements to resell at the time these agreements are entered into. The counterparties to these agreements typically are primary dealers of U.S. government securities and major financial institutions. Collateral is valued daily, and additional collateral is obtained from or refunded to counterparties when appropriate. | |
Securities borrowed and loaned result from transactions with other broker dealers or financial institutions and are recorded at the amount of cash collateral advanced or received. These amounts are included in receivables from and payables to brokers, dealers and clearing organizations on the consolidated statements of financial condition. Securities borrowed transactions require the Company to deposit cash or other collateral with the lender. Securities loaned transactions require the borrower to deposit cash with the Company. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. | |
Interest is accrued on securities borrowed and loaned transactions and is included in (i) other assets or other liabilities and accrued expenses on the consolidated statements of financial condition and (ii) the respective interest income or interest expense amounts on the consolidated statements of operations. | |
Fair Value of Financial Instruments | |
Financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased on the consolidated statements of financial condition consist of financial instruments recorded at fair value. Unrealized gains and losses related to these financial instruments are reflected on the consolidated statements of operations. Securities (both long and short) are recognized on a trade-date basis. Additionally, certain of the Company’s investments on the consolidated statements of financial condition are recorded at fair value, either as required by accounting guidance or through the fair value election. | |
Fair Value Hierarchy – FASB Accounting Standards Codification Topic 820, “Fair Value Measurement,” (“ASC 820”) provides a definition of fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the 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 management’s assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the transparency of inputs as follows: | |
Level I – Quoted prices (unadjusted) are available in active markets for identical assets or liabilities as of the report date. A quoted price for an identical asset or liability in an active market provides the most reliable fair value measurement because it is directly observable to the market. The type of financial instruments included in Level I are highly liquid instruments with quoted prices such as equities listed in active markets, U.S. treasury bonds, money market securities and certain exchange traded firm investments and derivative instruments. | |
Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the report date. The nature of these financial instruments include instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have been derived using a model where inputs to the model 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. Instruments which are generally included in this category are certain types of the following securities: non-exchange traded equities, U.S. government agency securities, corporate bonds, municipal securities, asset-backed securities, convertible securities and derivative instruments. | |
Level III – Instruments that have little to no pricing observability as of the report date. These financial instruments may not have two-way markets and 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. Instruments included in this category generally include certain types of the following securities: asset-backed securities, municipal securities, firm investments, convertible securities, corporate bonds and derivative instruments. | |
Valuation of Financial Instruments – The fair value of a financial instrument is the amount at which the instrument could be exchanged in an orderly transaction between market participants at the measurement date (the exit price). Based on the nature of the Company’s business and its role as a “dealer” in the securities industry or its role as a manager of alternative asset management funds, the fair values of its financial instruments are determined internally. When available, the Company values financial instruments at observable market prices, observable market parameters, or broker or dealer prices (bid and ask prices). In the case of financial instruments transacted on recognized exchanges, the observable market prices represent quotations for completed transactions from the exchange on which the financial instrument is principally traded. | |
A substantial percentage of the fair value of the Company’s financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased, are based on observable market prices, observable market parameters, or derived from broker or dealer prices. The availability of observable market prices and pricing parameters can vary from product to product. Where available, observable market prices and pricing or market parameters in a product may be used to derive a price without requiring significant judgment. In certain markets, observable market prices or market parameters are not available for all products, and fair value is determined using techniques appropriate for each particular product. These techniques involve some degree of judgment. Results from valuation models and other techniques in one period may not be indicative of future period fair value measurement. | |
For investments in illiquid or privately held securities that do not have readily determinable fair values, the determination of fair value requires the Company to estimate the value of the securities using the best information available. Among the factors considered by the Company in determining the fair value of such financial instruments are the cost, terms and liquidity of the investment, the financial condition and operating results of the issuer, the quoted market price of publicly traded securities with similar quality and yield, and other factors generally pertinent to the valuation of investments. In instances where a security is subject to transfer restrictions, the value of the security is based primarily on the quoted price of a similar security without restriction but may be reduced by an amount estimated to reflect such restrictions. In addition, even where the Company derives the value of a security based on information from an independent source, certain assumptions may be required to determine the security’s fair value. For instance, the Company assumes that the size of positions in securities that the Company holds would not be large enough to affect the quoted price of the securities if the firm sells them, and that any such sale would happen in an orderly manner. The actual value realized upon disposition could be different from the currently estimated fair value. | |
The fair values related to derivative contract transactions are reported in financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased on the consolidated statements of financial condition and any unrealized gain or loss resulting from changes in fair values of derivatives is reported on the consolidated statements of operations. Depending upon the product and terms of the transaction, the fair value of the Company’s derivative contracts can be observed or priced using models based on the net present value of estimated future cash flows. The valuation models used require inputs including contractual terms, yield curves, discount rates and measures of volatility. The Company does not utilize “hedge accounting” as described within FASB Accounting Standards Codification Topic 815, “Derivatives and Hedging” (“ASC 815”). | |
Fixed Assets | |
Fixed assets include furniture and equipment, software and leasehold improvements. Furniture and equipment and software are depreciated using the straight-line method over estimated useful lives of three to ten years. Leasehold improvements are amortized over their estimated useful life or the life of the lease, whichever is shorter. The Company capitalizes certain costs incurred in connection with internal use software projects and amortizes the amount over the expected useful life of the asset, generally three to seven years. | |
Leases | |
The Company leases its corporate headquarters and other offices under various non-cancelable leases. The leases require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of the Company’s lease agreements generally range up to twelve years. Some of the leases contain renewal options, escalation clauses, rent-free holidays and operating cost adjustments. | |
For leases that contain escalation clauses or rent-free holidays, the Company recognizes the related rent expense on a straight-line basis from the date the Company takes possession of the property to the end of the initial lease term. The Company records any difference between the straight-line rent amounts and amounts payable under the leases as part of other liabilities and accrued expenses. | |
Cash or lease incentives received upon entering into certain leases are recognized on a straight-line basis as a reduction of rent expense from the date the Company takes possession of the property or receives the cash to the end of the initial lease term. The Company records the unamortized portion of lease incentives as part of other liabilities and accrued expenses. | |
Goodwill and Intangible Assets | |
Goodwill represents the fair value of the consideration transferred in excess of the fair value of identifiable net assets at the acquisition date. The recoverability of goodwill is evaluated annually, at a minimum, or on an interim basis if circumstances indicate a possible inability to realize the carrying amount. The Company has the option to first assess qualitative factors to determine whether the fair value of a reporting unit is less than its carrying amount. Further quantitative analysis is required if the Company determines that the fair value of a reporting unit is less than its carrying amount. The evaluation includes assessing the estimated fair value of the Company’s reporting units based on a discounted cash flow model using revenue and profit forecasts, the Company’s market capitalization, public market comparables and multiples of recent mergers and acquisitions of similar businesses, if available. | |
Intangible assets with determinable lives consist of asset management contractual relationships and capital markets customer relationships and non-competition agreements that are amortized over their estimated useful lives ranging from two to ten years. Indefinite-life intangible assets consist of the ARI trade name. It is not amortized and is evaluated annually, at a minimum, or on an interim basis if events or circumstances indicate a possible inability to realize the carrying amount. | |
Investments | |
The Company’s proprietary investments include investments in private companies and partnerships, registered mutual funds, warrants of public and private companies and private company debt. Equity investments in private companies are accounted for at fair value, if the fair value option was elected, or at cost. Investments in partnerships are accounted for under the equity method, which is generally the net asset value. Registered mutual funds are accounted for at fair value. Company-owned warrants with a cashless exercise option are valued at fair value, while warrants without a cashless exercise option are valued at cost. Private company debt investments are recorded at amortized cost, net of any unamortized premium or discount. | |
Other Assets | |
Other assets include net deferred income tax assets, receivables and prepaid expenses. Receivables include fee receivables, accrued interest, income tax receivables and loans made to employees, typically in connection with their recruitment. Employee loans are forgiven based on continued employment and are amortized to compensation and benefits expense using the straight-line method over the respective terms of the loans, which generally range from two to five years. | |
Revenue Recognition | |
Investment Banking – Investment banking revenues, which include underwriting fees, management fees and advisory fees, are recorded when services for the transactions are completed under the terms of each engagement. Expenses associated with such transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded. Investment banking revenues are presented net of related unreimbursed expenses. Expenses related to investment banking deals not completed are recognized as non-interest expenses on the consolidated statements of operations. | |
Institutional Brokerage – Institutional brokerage revenues include (i) commissions received from customers for the execution of brokerage transactions in listed and over-the-counter (OTC) equity, fixed income and convertible debt securities, which are recorded on a trade date basis, (ii) trading gains and losses and (iii) fees received by the Company for equity research. The Company permits institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. As the Company is not the primary obligor for these arrangements, expenses relating to soft dollars are netted against commission revenues. | |
Asset Management – Asset management fees include revenues the Company receives in connection with management and investment advisory services performed for separately managed accounts and various funds and partnerships. These fees are recognized in the period in which services are provided. Fees are defined in client contracts as either fixed or based on a percentage of portfolio assets under management and may include performance fees. Performance fees are earned when the investment return on assets under management exceeds certain benchmark targets or other performance targets over a specified measurement period (monthly, quarterly or annually). Performance fees, if earned, are generally recognized at the end of the specified measurement period, typically the fourth quarter of the applicable year, or upon client liquidation. Performance fees are recognized as of each reporting date for certain consolidated entities. | |
Interest Revenue and Expense – The Company nets interest expense within net revenues to mitigate the effects of fluctuations in interest rates on the Company’s consolidated statements of operations. The Company recognizes contractual interest on financial instruments owned and financial instruments sold, but not yet purchased (excluding derivative instruments), on an accrual basis as a component of interest revenue and expense. The Company accounts for interest related to its short-term and bank syndicated financings and its variable rate senior notes on an accrual basis with related interest recorded as interest expense. In addition, the Company recognizes interest revenue related to its securities borrowed and securities purchased under agreements to resell activities and interest expense related to its securities loaned and securities sold under agreements to repurchase activities on an accrual basis. | |
Investment Income – Investment income includes realized and unrealized gains and losses from the Company's merchant banking and other firm investments. | |
Stock-based Compensation | |
FASB Accounting Standards Codification Topic 718, “Compensation — Stock Compensation,” (“ASC 718”) requires all stock-based compensation to be expensed on the consolidated statements of operations based on the grant date fair value of the award. Compensation expense related to share-based awards that do not require future service are recognized in the year in which the awards were deemed to be earned. Share-based awards that require future service are amortized over the relevant service period net of estimated forfeitures. | |
Income Taxes | |
The Company files a consolidated U.S. federal income tax return, which includes all of its qualifying subsidiaries. The Company is also subject to income tax in various states and municipalities and those foreign jurisdictions in which we operate. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between amounts reported for income tax purposes and financial statement purposes, using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The realization of deferred tax assets is assessed and a valuation allowance is recognized to the extent that it is more likely than not that any portion of a deferred tax asset will not be realized. Tax reserves for uncertain tax positions are recorded in accordance with FASB Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”). | |
Earnings Per Share | |
Basic earnings per common share is computed by dividing net income/(loss) applicable to common shareholders by the weighted average number of common shares outstanding for the period. Net income/(loss) applicable to common shareholders represents net income/(loss) reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities. Diluted earnings per common share is calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive stock options. | |
Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the earnings allocation in the earnings per share calculation under the two-class method. The Company grants restricted stock and restricted stock units as part of its share-based compensation program. Recipients of restricted stock are entitled to receive nonforfeitable dividends during the vesting period, and therefore meet the definition of a participating security. The Company's unvested restricted stock units are not participating securities as recipients are not eligible to receive nonforfeitable dividends. | |
Foreign Currency Translation | |
The Company consolidates foreign subsidiaries which have designated their local currency as their functional currency. Assets and liabilities of these foreign subsidiaries are translated at year-end rates of exchange. In accordance with FASB Accounting Standards Codification Topic 830, “Foreign Currency Matters,” gains or losses resulting from translating foreign currency financial statements are included in other comprehensive income. Gains or losses resulting from foreign currency transactions are included in net income. | |
Contingencies | |
The Company is involved in various pending and potential legal proceedings related to its business, including litigation, arbitration and regulatory proceedings. The Company establishes reserves for potential losses in accordance with FASB Accounting Standards Codification Topic 450, “Contingencies,” to the extent that claims are probable of loss and the amount of the loss can be reasonably estimated. The determination of the outcome and reserve amounts requires significant judgment on the part of management. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Adoption of New Accounting Standards | |
Disclosures about Offsetting Assets and Liabilities | |
In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” (“ASU 2011-11”) amending FASB Accounting Standards Codification Topic 210, “Balance Sheet.” The amended guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” (“ASU 2013-01”) to limit the scope of ASU 2011-11 to derivatives, repurchase agreements, and securities lending arrangements. ASU 2011-11 and ASU 2013-01 were effective for the Company as of January 1, 2013. The adoption of ASU 2011-11 and ASU 2013-01 did not impact the Company’s results of operations or financial position, but did impact the Company’s disclosures about the offsetting of certain assets and liabilities, and related arrangements. | |
Indefinite-Lived Intangible Assets | |
In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” (“ASU 2012-02”) amending FASB Accounting Standards Codification Topic 350, “Intangibles - Goodwill and Other.” The amended guidance permits companies to first assess qualitative factors in determining whether the fair value of an indefinite-lived intangible asset is less than its carrying amount. ASU 2012-02 was effective for annual and interim indefinite-lived intangible asset impairment tests performed by the Company for the fiscal year beginning as of January 1, 2013. The adoption of ASU 2012-02 did not impact the Company's results of operations or financial position. | |
Future Adoption of New Accounting Standards | |
Investment Companies | |
In June 2013, the FASB issued ASU No. 2013-08, “Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements,” (“ASU 2013-08”) amending FASB Accounting Standards Codification Topic 946, “Financial Services - Investment Companies” (“ASC 946”). The amended guidance changes the approach to the investment company assessment in ASC 946, clarifies the characteristics of an investment company and requires new disclosures for investment company financial statements. ASU 2013-08 is effective for interim and annual periods beginning after December 15, 2013. The adoption of ASU 2013-08 is not expected to have an impact on the Company's results of operations, financial position or disclosures. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Acquisitions | ' | |||||||||||
Acquisitions | ||||||||||||
On July 12, 2013, the Company completed the purchase of Seattle-Northwest Securities Corporation ("Seattle-Northwest"), a Seattle-based investment bank and broker dealer focused on public finance in the Northwest region of the U.S. The purchase was completed pursuant to the Agreement and Plan of Merger dated April 16, 2013. The acquisition of Seattle-Northwest supports the Company's strategy to grow its public finance business. | ||||||||||||
On July 16, 2013, the Company completed the purchase of Edgeview Partners, L.P. ("Edgeview"), a middle-market advisory firm specializing in mergers and acquisitions. The purchase was completed pursuant to the Unit Purchase Agreement dated June 17, 2013. The acquisition of Edgeview further strengthens the Company's mergers and acquisitions position in the middle market and adds resources dedicated to the private equity community. | ||||||||||||
The Company paid $32.7 million in cash for Seattle-Northwest and Edgeview, which represented the fair values as of the respective acquisition dates. The Company also entered into acquisition-related compensation arrangements of $14.3 million which consisted of cash, restricted stock and restricted mutual fund shares ("MFRS Awards") of registered funds managed by the Company's asset management business. Compensation expense related to these arrangements will be amortized on a straight-line basis over the requisite service period of two to five years (a weighted average service period of 4.3 years). | ||||||||||||
These acquisitions were accounted for pursuant to FASB Accounting Standards Codification Topic 805, "Business Combinations." Accordingly, the purchase price of each acquisition was allocated to the acquired assets and liabilities assumed based on their estimated fair values as of the respective acquisition dates. The excess of the purchase price over the net assets acquired was allocated between goodwill and intangible assets within the Capital Markets segment. The Company recorded $13.8 million of goodwill on the consolidated statements of financial condition, of which $9.1 million is expected to be deductible for income tax purposes. In management's opinion, the goodwill represents the reputation and expertise of Seattle-Northwest and Edgeview in their respective business lines. | ||||||||||||
Identifiable intangible assets purchased by the Company consisted of customer relationships and non-competition agreements with acquisition-date fair values estimated to be $6.0 million and $0.7 million, respectively. Transaction costs of $1.1 million were incurred for the year ended December 31, 2013, and are included in restructuring and integration costs within continuing operations on the consolidated statements of operations. | ||||||||||||
In the fourth quarter of 2013, the Company recorded measurement period adjustments to reflect the final fair values of intangible assets and acquired leases. The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the respective dates of acquisition: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 8,014 | ||||||||||
Financial instruments and other inventory positions owned | 24,074 | |||||||||||
Fixed assets | 1,247 | |||||||||||
Goodwill | 13,790 | |||||||||||
Intangible assets | 6,665 | |||||||||||
Other assets | 8,922 | |||||||||||
Total assets acquired | 62,712 | |||||||||||
Liabilities | ||||||||||||
Payables | 1,126 | |||||||||||
Financial instruments and other inventory positions sold, but not yet purchased | 22,588 | |||||||||||
Accrued compensation | 1,469 | |||||||||||
Other liabilities and accrued expenses | 4,789 | |||||||||||
Total liabilities assumed | 29,972 | |||||||||||
Net assets acquired | $ | 32,740 | ||||||||||
Seattle-Northwest and Edgeview results of operations have been included in the Company's consolidated financial statements prospectively from their respective dates of acquisition. These acquisitions have been fully integrated with the Company's existing operations. Accordingly, post-acquisition revenues and net income are not discernible. The following unaudited pro forma financial data assumes the acquisitions had occurred at the beginning of the comparable prior periods presented. Pro forma results have been prepared by adjusting the Company's historical results from continuing operations to include Seattle-Northwest and Edgeview results of operations adjusted for the following changes: depreciation and amortization expenses were adjusted to account for acquisition-date fair value adjustments of fixed assets and intangible assets; compensation and benefits expenses were adjusted to reflect excess partner distributions as compensation expense; and the income tax effect of applying the Company's statutory tax rates to Seattle-Northwest and Edgeview results of operations. The consolidated Company's unaudited pro forma information presented does not necessarily reflect the results of operations that would have resulted had the acquisitions been completed at the beginning of the applicable periods presented, does not contemplate anticipated operational efficiencies of the combined entities, nor does it indicate the results of operations in future periods. | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Net revenues | $ | 541,304 | $ | 535,694 | $ | 458,831 | ||||||
Net income/(loss) from continuing operations applicable to Piper Jaffray Companies | $ | 48,568 | $ | 50,413 | $ | (90,810 | ) | |||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operations | ' | |||||||||||
Discontinued Operations | ||||||||||||
The Company's Hong Kong capital markets business ceased operations as of September 30, 2012. In accordance with the provisions of FASB Accounting Standards Codification Topic 205-20, “Discontinued Operations,” the results from this business, previously reported in the Capital Markets segment, have been classified as discontinued operations for all periods presented. | ||||||||||||
The components of discontinued operations for the Hong Kong capital markets business are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Net revenues | $ | — | $ | 6,635 | $ | 15,996 | ||||||
Restructuring expenses | — | 11,535 | — | |||||||||
Other expenses | 1,197 | 16,550 | 24,983 | |||||||||
Total non-interest expenses | 1,197 | 28,085 | 24,983 | |||||||||
Loss from discontinued operations before income tax expense/(benefit) | (1,197 | ) | (21,450 | ) | (8,987 | ) | ||||||
Income tax expense/(benefit) | (415 | ) | (21,069 | ) | 1,927 | |||||||
Loss from discontinued operations, net of tax | $ | (782 | ) | $ | (381 | ) | $ | (10,914 | ) | |||
On April 30, 2013, the Company completed the sale of FAMCO for consideration of $4.0 million under a previously announced definitive agreement. The sale consideration of $4.0 million consisted of $0.3 million in cash and a $3.7 million note receivable from the buyer. FAMCO's results, previously reported in the Asset Management segment, have been presented as discontinued operations for all periods presented and the related assets and liabilities were classified as held for sale as of December 31, 2012. The disposal group primarily consisted of intangible assets, other receivables and accrued compensation. As part of the sale, the Company indemnified the buyer against certain costs and obligations. As of December 31, 2013, a $0.5 million remaining indemnification obligation was included within other liabilities and accrued expenses on the consolidated statements of financial condition. The potential amount of future payments that the Company could be required to make pursuant to the terms of the definitive sale agreement is not limited, however it is not expected to be material. | ||||||||||||
The components of discontinued operations for FAMCO are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Net revenues | $ | 1,650 | $ | 5,718 | $ | 6,584 | ||||||
Goodwill impairment | — | 5,508 | — | |||||||||
Operating expenses | 5,057 | 8,362 | 7,089 | |||||||||
Total non-interest expenses | 5,057 | 13,870 | 7,089 | |||||||||
Loss from discontinued operations before income tax benefit | (3,407 | ) | (8,152 | ) | (505 | ) | ||||||
Income tax benefit | (1,326 | ) | (2,726 | ) | (171 | ) | ||||||
Loss from discontinued operations | (2,081 | ) | (5,426 | ) | (334 | ) | ||||||
Loss on sale, net of tax | (1,876 | ) | — | — | ||||||||
Loss from discontinued operations, net of tax | $ | (3,957 | ) | $ | (5,426 | ) | $ | (334 | ) |
Financial_Instruments_and_Othe
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Disclosure Financial Instruments And Other Inventory Positions Owned And Financial Instruments And Other Inventory Positions Sold But Not Yet Purchased [Abstract] | ' | ||||||||||||||
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased | ' | ||||||||||||||
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased | |||||||||||||||
Financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased were as follows: | |||||||||||||||
December 31, | December 31, | ||||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||||
Financial instruments and other inventory positions owned: | |||||||||||||||
Corporate securities: | |||||||||||||||
Equity securities | $ | 54,097 | $ | 16,478 | |||||||||||
Convertible securities | 80,784 | 44,978 | |||||||||||||
Fixed income securities | 10,102 | 33,668 | |||||||||||||
Municipal securities: | |||||||||||||||
Taxable securities | 232,379 | 164,059 | |||||||||||||
Tax-exempt securities | 460,865 | 418,189 | |||||||||||||
Short-term securities | 62,620 | 68,328 | |||||||||||||
Asset-backed securities | 119,811 | 116,195 | |||||||||||||
U.S. government agency securities | 304,737 | 304,259 | |||||||||||||
U.S. government securities | — | 4,966 | |||||||||||||
Derivative contracts | 38,633 | 40,475 | |||||||||||||
Total financial instruments and other inventory positions owned | 1,364,028 | 1,211,595 | |||||||||||||
Less noncontrolling interests (1) | (291,513 | ) | (103,480 | ) | |||||||||||
$ | 1,072,515 | $ | 1,108,115 | ||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | |||||||||||||||
Corporate securities: | |||||||||||||||
Equity securities | $ | 69,205 | $ | 27,090 | |||||||||||
Convertible securities | — | 1,015 | |||||||||||||
Fixed income securities | 24,021 | 19,314 | |||||||||||||
Municipal securities: | |||||||||||||||
Short-term securities | — | 60 | |||||||||||||
U.S. government agency securities | 120,084 | 73,724 | |||||||||||||
U.S. government securities | 291,320 | 231,043 | |||||||||||||
Derivative contracts | 8,203 | 4,955 | |||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased | 512,833 | 357,201 | |||||||||||||
Less noncontrolling interests (2) | (68,356 | ) | (27,308 | ) | |||||||||||
$ | 444,477 | $ | 329,893 | ||||||||||||
-1 | Noncontrolling interests attributable to third party ownership in a consolidated municipal bond fund consist of $101.8 million and $43.8 million of taxable municipal securities, $183.9 million and $58.0 million of tax-exempt municipal securities, and $5.8 million and $1.7 million of derivative contracts as of December 31, 2013 and 2012, respectively. | ||||||||||||||
-2 | Noncontrolling interests attributable to third party ownership in a consolidated municipal bond fund consist of $67.4 million and $27.3 million of U.S. government securities as of December 31, 2013 and 2012, respectively, and $1.0 million of derivative contracts as of December 31, 2013. | ||||||||||||||
At December 31, 2013 and 2012, financial instruments and other inventory positions owned in the amount of $957.5 million and $826.8 million, respectively, had been pledged as collateral for short-term financings and repurchase agreements. | |||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased represent obligations of the Company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices. The Company is obligated to acquire the securities sold short at prevailing market prices, which may exceed the amount reflected on the consolidated statements of financial condition. The Company economically hedges changes in the market value of its financial instruments and other inventory positions owned using inventory positions sold, but not yet purchased, interest rate derivatives, credit default swap index contracts, futures and exchange traded options. | |||||||||||||||
Derivative Contract Financial Instruments | |||||||||||||||
The Company uses interest rate swaps, interest rate locks, credit default swap index contracts and option contracts to facilitate customer transactions and as a means to manage risk in certain inventory positions. The following describes the Company’s derivatives by the type of transaction or security the instruments are economically hedging. | |||||||||||||||
Customer matched-book derivatives: The Company enters into interest rate derivative contracts in a principal capacity as a dealer to satisfy the financial needs of its customers. The Company simultaneously enters into an interest rate derivative contract with a third party for the same notional amount to hedge the interest rate and credit risk of the initial client interest rate derivative contract. In certain limited instances, the Company has only hedged interest rate risk with a third party, and retains uncollateralized credit risk as described below. The instruments use interest rates based upon either the London Interbank Offer Rate (“LIBOR”) index or the Securities Industry and Financial Markets Association (“SIFMA”) index. | |||||||||||||||
Trading securities derivatives: The Company enters into interest rate derivative contracts to hedge interest rate and market value risks associated with its fixed income securities. The instruments use interest rates based upon either the Municipal Market Data (“MMD”) index, LIBOR or the SIFMA index. The Company also enters into credit default swap index contracts to hedge credit risk associated with its taxable fixed income securities and option contracts to hedge market value risk associated with its convertible securities and asset-backed securities. | |||||||||||||||
Firm investments: The Company has historically entered into foreign currency forward contracts to manage the currency exposure related to its non-U.S. dollar denominated firm investments. | |||||||||||||||
The following table presents the total absolute notional contract amount associated with the Company’s outstanding derivative instruments: | |||||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||||
Transaction Type or Hedged Security | Derivative Category | 2013 | 2012 | ||||||||||||
Customer matched-book | Interest rate derivative contract | $ | 5,310,929 | $ | 5,569,096 | ||||||||||
Trading securities | Interest rate derivative contract | 198,500 | 244,250 | ||||||||||||
Trading securities | Credit default swap index contract | 299,333 | 230,650 | ||||||||||||
Trading securities | Equity option derivative contract | 17,090 | — | ||||||||||||
$ | 5,825,852 | $ | 6,043,996 | ||||||||||||
The Company’s derivative contracts do not qualify for hedge accounting, therefore, unrealized gains and losses are recorded on the consolidated statements of operations. The following table presents the Company’s unrealized gains/(losses) on derivative instruments: | |||||||||||||||
(Dollars in thousands) | Year Ended December 31, | ||||||||||||||
Derivative Category | Operations Category | 2013 | 2012 | 2011 | |||||||||||
Interest rate derivative contract | Investment banking | $ | (1,529 | ) | $ | (2,583 | ) | $ | (4,959 | ) | |||||
Interest rate derivative contract | Institutional brokerage | (2,511 | ) | (798 | ) | (7,371 | ) | ||||||||
Credit default swap index contract | Institutional brokerage | (1,522 | ) | (1,603 | ) | 1,009 | |||||||||
Equity option derivative contract | Institutional brokerage | (646 | ) | — | — | ||||||||||
Foreign currency forward contract | Other operating expenses | — | — | (59 | ) | ||||||||||
$ | (6,208 | ) | $ | (4,984 | ) | $ | (11,380 | ) | |||||||
The gross fair market value of all derivative instruments and their location on the Company’s consolidated statements of financial condition prior to counterparty netting are shown below by asset or liability position: | |||||||||||||||
(Dollars in thousands) | Asset Value at | Liability Value at | |||||||||||||
December 31, | December 31, | ||||||||||||||
Derivative Category | Financial Condition Location | 2013 | Financial Condition Location | 2013 | |||||||||||
Interest rate derivative contract | Financial instruments and other inventory positions owned | $ | 342,210 | Financial instruments and other inventory positions sold, but not yet purchased | $ | 323,032 | |||||||||
Credit default swap index contract | Financial instruments and other inventory positions owned | 10,070 | Financial instruments and other inventory positions sold, but not yet purchased | 7,676 | |||||||||||
Equity option derivative contract | Financial instruments and other inventory positions owned | 19 | Financial instruments and other inventory positions sold, but not yet purchased | 1,889 | |||||||||||
$ | 352,299 | $ | 332,597 | ||||||||||||
Derivatives are reported on a net basis by counterparty (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) when a legal right of offset exists and on a net basis by cross product when applicable provisions are stated in master netting agreements. Cash collateral received or paid is netted on a counterparty basis, provided a legal right of offset exists. | |||||||||||||||
Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. Credit exposure associated with the Company’s derivatives is driven by uncollateralized market movements in the fair value of the contracts with counterparties and is monitored regularly by the Company’s financial risk committee. The Company considers counterparty credit risk in determining derivative contract fair value. The majority of the Company’s derivative contracts are substantially collateralized by its counterparties, who are major financial institutions. The Company has a limited number of counterparties who are not required to post collateral. Based on market movements, the uncollateralized amounts representing the fair value of the derivative contract can become material, exposing the Company to the credit risk of these counterparties. As of December 31, 2013, the Company had $22.0 million of uncollateralized credit exposure with these counterparties (notional contract amount of $200.3 million), including $9.3 million of uncollateralized credit exposure with one counterparty. |
Investments
Investments | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Investments [Abstract] | ' | |||||||
Investments | ' | |||||||
Investments | ||||||||
The Company’s proprietary investments include investments in private companies and partnerships, registered mutual funds, warrants of public and private companies and private company debt. Investments included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Investments at fair value | $ | 69,930 | $ | 39,055 | ||||
Investments at cost | 20,709 | 26,364 | ||||||
Investments accounted for under the equity method | 21,404 | 20,353 | ||||||
Total investments | 112,043 | 85,772 | ||||||
Less investments attributable to noncontrolling interests (1) | (21,137 | ) | (13,236 | ) | ||||
$ | 90,906 | $ | 72,536 | |||||
-1 | Noncontrolling interests are attributable to third party ownership in a consolidated merchant banking fund and private equity investment vehicles. | |||||||
Management regularly reviews the Company’s investments in private company debt and has concluded that no valuation allowance is needed as it is probable that all contractual principal and interest will be collected. | ||||||||
At December 31, 2013, investments carried on a cost basis had an estimated fair market value of $29.9 million. The estimated fair value of these investments was measured using discounted cash flow models that use market data for comparable companies (e.g., multiples of revenue and earnings before interest, taxes, depreciation and amortization ("EBITDA")). Because valuation adjustments, based upon management’s judgment, were made to account for differences between the measured security and comparable securities, investments carried at cost would be categorized as Level III assets in the fair value hierarchy, if they were carried at fair value. | ||||||||
Investments accounted for under the equity method include general and limited partnership interests. The carrying value of these investments is based on the investment vehicle’s net asset value. The net assets of investment partnerships consist of investments in both marketable and non-marketable securities. The underlying investments held by such partnerships are valued based on the estimated fair value determined by management in our capacity as general partner or investor and, in the case of investments in unaffiliated investment partnerships, are based on financial statements prepared by the unaffiliated general partners. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
Based on the nature of the Company’s business and its role as a “dealer” in the securities industry or as a manager of alternative asset management funds, the fair values of its financial instruments are determined internally. The Company’s processes are designed to ensure that the fair values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, unobservable inputs are developed based on an evaluation of all relevant empirical market data, including prices evidenced by market transactions, interest rates, credit spreads, volatilities and correlations and other security-specific information. Valuation adjustments related to illiquidity or counterparty credit risk are also considered. In estimating fair value, the Company may utilize information provided by third-party pricing vendors to corroborate internally-developed fair value estimates. | ||||||||||||||||||||||||||||||||
The Company employs specific control processes to determine the reasonableness of the fair value of its financial instruments. The Company’s processes are designed to ensure that the internally estimated fair values are accurately recorded and that the data inputs and the valuation techniques used are appropriate, consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. Individuals outside of the trading departments perform independent pricing verification reviews as of each reporting date. The Company has established parameters which set forth when the fair value of securities are independently verified. The selection parameters are generally based upon the type of security, the level of estimation risk of a security, the materiality of the security to the Company’s financial statements, changes in fair value from period to period, and other specific facts and circumstances of the Company’s securities portfolio. In evaluating the initial internally-estimated fair values made by the Company’s traders, the nature and complexity of securities involved (e.g., term, coupon, collateral, and other key drivers of value), level of market activity for securities, and availability of market data are considered. The independent price verification procedures include, but are not limited to, analysis of trade data (both internal and external where available), corroboration to the valuation of positions with similar characteristics, risks and components, or comparison to an alternative pricing source, such as a discounted cash flow model. The Company’s valuation committee, comprised of members of senior management and risk management, provides oversight and overall responsibility for the internal control processes and procedures related to fair value measurements. | ||||||||||||||||||||||||||||||||
The following is a description of the valuation techniques used to measure fair value. | ||||||||||||||||||||||||||||||||
Cash Equivalents | ||||||||||||||||||||||||||||||||
Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value and classified as Level I. | ||||||||||||||||||||||||||||||||
Financial Instruments and Other Inventory Positions Owned | ||||||||||||||||||||||||||||||||
The Company records financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased at fair value on the consolidated statements of financial condition with unrealized gains and losses reflected on the consolidated statements of operations. | ||||||||||||||||||||||||||||||||
Equity securities – Exchange traded equity securities are valued based on quoted prices from the exchange for identical assets or liabilities as of the period-end date. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level I. Non-exchange traded equity securities (principally hybrid preferred securities) are measured primarily using broker quotations, prices observed for recently executed market transactions and internally-developed fair value estimates based on observable inputs and are categorized within Level II of the fair value hierarchy. | ||||||||||||||||||||||||||||||||
Convertible securities – Convertible securities are valued based on observable trades, when available. Accordingly, these convertible securities are categorized as Level II. When observable price quotations are not available, fair value is determined using model-based valuation techniques with observable market inputs, such as specific company stock price and volatility, and unobservable inputs such as option adjusted spreads over the U.S. treasury securities curve. These instruments are categorized as Level III. | ||||||||||||||||||||||||||||||||
Corporate fixed income securities – Fixed income securities include corporate bonds which are valued based on recently executed market transactions of comparable size, internally-developed fair value estimates based on observable inputs, or broker quotations. Accordingly, these corporate bonds are categorized as Level II. When observable price quotations or certain observable inputs are not available, fair value is determined using model-based valuation techniques with observable inputs such as specific security contractual terms and yield curves, and unobservable inputs such as credit spreads over U.S. treasury securities. Corporate bonds measured using model-based valuation techniques are categorized as Level III. | ||||||||||||||||||||||||||||||||
Taxable municipal securities – Taxable municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II. | ||||||||||||||||||||||||||||||||
Tax-exempt municipal securities – Tax-exempt municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II. Certain illiquid tax-exempt municipal securities are valued using market data for comparable securities (maturity and sector) and management judgment to infer an appropriate current yield or other model-based valuation techniques deemed appropriate by management based on the specific nature of the individual security and are therefore categorized as Level III. | ||||||||||||||||||||||||||||||||
Short-term municipal securities – Short-term municipal securities include auction rate securities, variable rate demand notes, and other short-term municipal securities. Variable rate demand notes and other short-term municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II. Auction rate securities with limited liquidity are categorized as Level III and are valued using discounted cash flow models with unobservable inputs such as the Company’s expected recovery rate on the securities. | ||||||||||||||||||||||||||||||||
Asset-backed securities – Asset-backed securities are valued using observable trades, when available. Certain asset-backed securities are valued using models where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data. These asset-backed securities are categorized as Level II. Other asset-backed securities, which are principally collateralized by residential mortgages, have experienced low volumes of executed transactions resulting in less observable transaction data. Certain asset-backed securities collateralized by residential mortgages are valued using cash flow models that utilize unobservable inputs including credit default rates, prepayment rates, loss severity and valuation yields. As judgment is used to determine the range of these inputs, these asset-backed securities are categorized as Level III. | ||||||||||||||||||||||||||||||||
U.S. government agency securities – U.S. government agency securities include agency debt bonds and mortgage bonds. Agency debt bonds are valued by using either direct price quotes or price quotes for comparable bond securities and are categorized as Level II. Mortgage bonds include bonds secured by mortgages, mortgage pass-through securities, agency collateralized mortgage-obligation (“CMO”) securities and agency interest-only securities. Mortgage pass-through securities, CMO securities and interest-only securities are valued using recently executed observable trades or other observable inputs, such as prepayment speeds and therefore are generally categorized as Level II. Mortgage bonds are valued using observable market inputs, such as market yields ranging from 80-175 basis points (“bps”) on spreads over U.S. treasury securities, or models based upon prepayment expectations ranging from 192-383 Public Securities Association (“PSA”) prepayment levels. These securities are categorized as Level II. | ||||||||||||||||||||||||||||||||
U.S. government securities – U.S. government securities include highly liquid U.S. treasury securities which are generally valued using quoted market prices and therefore categorized as Level I. The Company does not transact in securities of countries other than the U.S. government. | ||||||||||||||||||||||||||||||||
Derivatives – Derivative contracts include interest rate and basis swaps, forward purchase agreements, interest rate locks, futures, options and credit default swap index contracts. These instruments derive their value from underlying assets, reference rates, indices or a combination of these factors. The Company's equity option derivative contracts are valued based on quoted prices from the exchange for identical assets or liabilities as of the period-end date. To the extent these contracts are actively traded and valuation adjustments are not applied, they are categorized as Level I. The Company’s credit default swap index contracts are valued using market price quotations and are classified as Level II. The majority of the Company’s interest rate derivative contracts, including both interest rate swaps and interest rate locks, are valued using market standard pricing models based on the net present value of estimated future cash flows. The valuation models used do not involve material subjectivity as the methodologies do not entail significant judgment and the pricing inputs are market observable, including contractual terms, yield curves and measures of volatility. These instruments are classified as Level II within the fair value hierarchy. Certain interest rate locks transact in less active markets and were valued using valuation models that used the previously mentioned observable inputs and certain unobservable inputs that required significant judgment, such as the premium over the MMD curve. These instruments are classified as Level III. | ||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
The Company’s investments valued at fair value include equity investments in private companies, investments in public companies, investments in registered mutual funds, and warrants of public or private companies. Exchange traded direct equity investments in public companies and registered mutual funds are valued based on quoted prices on active markets and classified as Level I. Company-owned warrants, which have a cashless exercise option, are valued based upon the Black-Scholes option-pricing model and certain unobservable inputs. The Company applies a liquidity discount to the value of its warrants in public and private companies. For warrants in private companies, valuation adjustments, based upon management’s judgment, are made to account for differences between the measured security and the stock volatility factors of comparable companies. Company-owned warrants are reported as Level III assets. Equity securities in private companies are valued based on an assessment of each underlying security, considering rounds of financing, third-party transactions and market-based information, including comparable company transactions, trading multiples and changes in market outlook, among other factors. These securities are generally categorized as Level III. | ||||||||||||||||||||||||||||||||
Fair Value Option – The fair value option permits the irrevocable fair value option election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The fair value option was elected for certain merchant banking and other investments at inception to reflect economic events in earnings on a timely basis. Merchant banking and other equity investments of $16.1 million and $15.4 million, included within investments on the consolidated statements of financial condition, are accounted for at fair value and are classified as Level III assets at December 31, 2013 and 2012, respectively. The realized and unrealized gains from fair value changes included in earnings as a result of electing to apply the fair value option to certain financial assets were $10.6 million and $2.6 million for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
The following table summarizes quantitative information about the significant unobservable inputs used in the fair value measurement of the Company’s Level III financial instruments as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Valuation | Weighted | |||||||||||||||||||||||||||||||
Technique | Unobservable Input | Range | Average | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Tax-exempt securities | Discounted cash flow | Debt service coverage ratio (2) | 5 - 69% | 22.20% | ||||||||||||||||||||||||||||
Short-term securities | Discounted cash flow | Expected recovery rate (% of par) (2) | 77 - 80% | 79.60% | ||||||||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||||
Collateralized by residential mortgages | Discounted cash flow | Credit default rates (3) | 2 - 8% | 4.70% | ||||||||||||||||||||||||||||
Prepayment rates (4) | 2 - 8% | 5.30% | ||||||||||||||||||||||||||||||
Loss severity (3) | 52 - 100% | 69.40% | ||||||||||||||||||||||||||||||
Valuation yields (3) | 4 - 8% | 6.00% | ||||||||||||||||||||||||||||||
Derivative contracts: | ||||||||||||||||||||||||||||||||
Interest rate locks | Discounted cash flow | Premium over the MMD curve (1) | 3 - 49 bps | 20.2 bps | ||||||||||||||||||||||||||||
Investments at fair value: | ||||||||||||||||||||||||||||||||
Warrants in public and private companies | Black-Scholes option pricing model | Liquidity discount rates (1) | 30 - 40% | 33.50% | ||||||||||||||||||||||||||||
Warrants in private companies | Black-Scholes option pricing model | Stock volatility factors of comparable companies (2) | 28 - 97% | 56.00% | ||||||||||||||||||||||||||||
Equity securities in private companies | Market approach | Revenue multiple (2) | 2 - 7 times | 3.2 times | ||||||||||||||||||||||||||||
EBITDA multiple (2) | 12 times | 12.0 times | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Derivative contracts: | ||||||||||||||||||||||||||||||||
Interest rate locks | Discounted cash flow | Premium over the MMD curve (1) | 1 - 15 bps | 9.1 bps | ||||||||||||||||||||||||||||
Sensitivity of the fair value to changes in unobservable inputs: | ||||||||||||||||||||||||||||||||
-1 | Significant increase/(decrease) in the unobservable input in isolation would result in a significantly lower/(higher) fair value measurement. | |||||||||||||||||||||||||||||||
-2 | Significant increase/(decrease) in the unobservable input in isolation would result in a significantly higher/(lower) fair value measurement. | |||||||||||||||||||||||||||||||
-3 | Significant changes in any of these inputs in isolation could result in a significantly different fair value. Generally, a change in the assumption used for credit default rates is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally inverse change in the assumption for valuation yields. | |||||||||||||||||||||||||||||||
-4 | The potential impact of changes in prepayment rates on fair value is dependent on other security-specific factors, such as the par value and structure. Changes in the prepayment rates may result in directionally similar or directionally inverse changes in fair value depending on whether the security trades at a premium or discount to the par value. | |||||||||||||||||||||||||||||||
The following table summarizes the valuation of the Company’s financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Counterparty | ||||||||||||||||||||||||||||||||
and Cash | ||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Netting (1) | Total | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Equity securities | $ | 39,711 | $ | 14,386 | $ | — | $ | — | $ | 54,097 | ||||||||||||||||||||||
Convertible securities | — | 80,784 | — | — | 80,784 | |||||||||||||||||||||||||||
Fixed income securities | — | 10,002 | 100 | — | 10,102 | |||||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Taxable securities | — | 232,379 | — | — | 232,379 | |||||||||||||||||||||||||||
Tax-exempt securities | — | 459,432 | 1,433 | — | 460,865 | |||||||||||||||||||||||||||
Short-term securities | — | 61,964 | 656 | — | 62,620 | |||||||||||||||||||||||||||
Asset-backed securities | — | 12 | 119,799 | — | 119,811 | |||||||||||||||||||||||||||
U.S. government agency securities | — | 304,737 | — | — | 304,737 | |||||||||||||||||||||||||||
Derivative contracts | 19 | 351,589 | 691 | (313,666 | ) | 38,633 | ||||||||||||||||||||||||||
Total financial instruments and other inventory positions owned: | 39,730 | 1,515,285 | 122,679 | (313,666 | ) | 1,364,028 | ||||||||||||||||||||||||||
Cash equivalents | 101,629 | — | — | — | 101,629 | |||||||||||||||||||||||||||
Investments at fair value | 20,690 | — | 49,240 | — | 69,930 | |||||||||||||||||||||||||||
Total assets | $ | 162,049 | $ | 1,515,285 | $ | 171,919 | $ | (313,666 | ) | $ | 1,535,587 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Equity securities | $ | 69,205 | $ | — | $ | — | $ | — | $ | 69,205 | ||||||||||||||||||||||
Fixed income securities | — | 24,021 | — | — | 24,021 | |||||||||||||||||||||||||||
U.S. government agency securities | — | 120,084 | — | — | 120,084 | |||||||||||||||||||||||||||
U.S. government securities | 291,320 | — | — | — | 291,320 | |||||||||||||||||||||||||||
Derivative contracts | 1,889 | 324,065 | 6,643 | (324,394 | ) | 8,203 | ||||||||||||||||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased: | $ | 362,414 | $ | 468,170 | $ | 6,643 | $ | (324,394 | ) | $ | 512,833 | |||||||||||||||||||||
-1 | Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. | |||||||||||||||||||||||||||||||
The following table summarizes the valuation of the Company’s financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2012: | ||||||||||||||||||||||||||||||||
Counterparty | ||||||||||||||||||||||||||||||||
and Cash | ||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Netting (1) | Total | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Equity securities | $ | 3,180 | $ | 13,298 | $ | — | $ | — | $ | 16,478 | ||||||||||||||||||||||
Convertible securities | — | 44,978 | — | — | 44,978 | |||||||||||||||||||||||||||
Fixed income securities | — | 33,668 | — | — | 33,668 | |||||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Taxable securities | — | 164,059 | — | — | 164,059 | |||||||||||||||||||||||||||
Tax-exempt securities | — | 416,760 | 1,429 | — | 418,189 | |||||||||||||||||||||||||||
Short-term securities | — | 67,672 | 656 | — | 68,328 | |||||||||||||||||||||||||||
Asset-backed securities | — | 24 | 116,171 | — | 116,195 | |||||||||||||||||||||||||||
U.S. government agency securities | — | 304,259 | — | — | 304,259 | |||||||||||||||||||||||||||
U.S. government securities | 4,966 | — | — | — | 4,966 | |||||||||||||||||||||||||||
Derivative contracts | — | 595,486 | 827 | (555,838 | ) | 40,475 | ||||||||||||||||||||||||||
Total financial instruments and other inventory positions owned: | 8,146 | 1,640,204 | 119,083 | (555,838 | ) | 1,211,595 | ||||||||||||||||||||||||||
Cash equivalents | 51,346 | — | — | — | 51,346 | |||||||||||||||||||||||||||
Investments at fair value | 5,810 | — | 33,245 | — | 39,055 | |||||||||||||||||||||||||||
Total assets | $ | 65,302 | $ | 1,640,204 | $ | 152,328 | $ | (555,838 | ) | $ | 1,301,996 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Equity securities | $ | 25,362 | $ | 1,728 | $ | — | $ | — | $ | 27,090 | ||||||||||||||||||||||
Convertible securities | — | 1,015 | — | — | 1,015 | |||||||||||||||||||||||||||
Fixed income securities | — | 19,314 | — | — | 19,314 | |||||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Short-term securities | — | 60 | — | — | 60 | |||||||||||||||||||||||||||
U.S. government agency securities | — | 73,724 | — | — | 73,724 | |||||||||||||||||||||||||||
U.S. government securities | 231,043 | — | — | — | 231,043 | |||||||||||||||||||||||||||
Derivative contracts | — | 569,764 | 5,218 | (570,027 | ) | 4,955 | ||||||||||||||||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased: | $ | 256,405 | $ | 665,605 | $ | 5,218 | $ | (570,027 | ) | $ | 357,201 | |||||||||||||||||||||
-1 | Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. | |||||||||||||||||||||||||||||||
The Company’s Level III assets were $171.9 million and $152.3 million, or 11.2 percent and 11.7 percent of financial instruments measured at fair value at December 31, 2013 and 2012, respectively. The value of transfers between levels are recognized at the beginning of the reporting period. There were $0.6 million of transfers of financial assets from Level III to Level II during the year ended December 31, 2013, related to investments for which recent trade activity was observed and valuation inputs became observable. There were no other transfers between Level I, Level II or Level III for the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||
The following tables summarize the changes in fair value associated with Level III financial instruments during the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Balance at | Realized | Unrealized | Balance at | |||||||||||||||||||||||||||||
December 31, | Transfers | Transfers | gains/ | gains/ | December 31, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2012 | Purchases | Sales | in | out | (losses) (1) | (losses) (1) | 2013 | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Fixed income securities | $ | — | $ | 100 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 100 | ||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Tax-exempt securities | 1,429 | 1 | — | — | — | — | 3 | 1,433 | ||||||||||||||||||||||||
Short-term securities | 656 | — | — | — | — | — | — | 656 | ||||||||||||||||||||||||
Asset-backed securities | 116,171 | 227,634 | (238,860 | ) | — | — | 17,105 | (2,251 | ) | 119,799 | ||||||||||||||||||||||
Derivative contracts | 827 | 5 | (2,382 | ) | — | — | 2,377 | (136 | ) | 691 | ||||||||||||||||||||||
Total financial instruments and other inventory positions owned: | 119,083 | 227,740 | (241,242 | ) | — | — | 19,482 | (2,384 | ) | 122,679 | ||||||||||||||||||||||
Investments at fair value | 33,245 | 16,825 | (10,358 | ) | — | (619 | ) | 5,949 | 4,198 | 49,240 | ||||||||||||||||||||||
Total assets | $ | 152,328 | $ | 244,565 | $ | (251,600 | ) | $ | — | $ | (619 | ) | $ | 25,431 | $ | 1,814 | $ | 171,919 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Derivative contracts | $ | 5,218 | $ | (5,702 | ) | $ | 457 | $ | — | $ | — | $ | 5,232 | $ | 1,438 | $ | 6,643 | |||||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased: | $ | 5,218 | $ | (5,702 | ) | $ | 457 | $ | — | $ | — | $ | 5,232 | $ | 1,438 | $ | 6,643 | |||||||||||||||
-1 | Realized and unrealized gains/(losses) related to financial instruments, with the exception of customer matched-book derivatives, are reported in institutional brokerage on the consolidated statements of operations. Realized and unrealized gains/(losses) related to customer matched-book derivatives are reported in investment banking. Realized and unrealized gains/(losses) related to investments are reported in investment banking revenues or investment income on the consolidated statements of operations. | |||||||||||||||||||||||||||||||
Balance at | Realized | Unrealized | Balance at | |||||||||||||||||||||||||||||
December 31, | Transfers | Transfers | gains/ | gains/ | December 31, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2011 | Purchases | Sales | in | out | (losses) (1) | (losses) (1) | 2012 | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Fixed income securities | $ | 2,815 | $ | 1,995 | $ | (4,594 | ) | $ | — | $ | — | $ | (118 | ) | $ | (98 | ) | $ | — | |||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Tax-exempt securities | 3,135 | 1,550 | (2,997 | ) | 266 | — | (1,156 | ) | 631 | 1,429 | ||||||||||||||||||||||
Short-term securities | 175 | 650 | — | — | — | — | (169 | ) | 656 | |||||||||||||||||||||||
Asset-backed securities | 53,088 | 125,844 | (69,623 | ) | 38 | — | 487 | 6,337 | 116,171 | |||||||||||||||||||||||
Derivative contracts | — | — | — | — | — | — | 827 | 827 | ||||||||||||||||||||||||
Total financial instruments and other inventory positions owned: | 59,213 | 130,039 | (77,214 | ) | 304 | — | (787 | ) | 7,528 | 119,083 | ||||||||||||||||||||||
Investments at fair value | 21,341 | 15,003 | (2,394 | ) | — | (266 | ) | 1,595 | (2,034 | ) | 33,245 | |||||||||||||||||||||
Total assets | $ | 80,554 | $ | 145,042 | $ | (79,608 | ) | $ | 304 | $ | (266 | ) | $ | 808 | $ | 5,494 | $ | 152,328 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Convertible securities | $ | 1,171 | $ | — | $ | — | $ | — | $ | (1,171 | ) | $ | — | $ | — | $ | — | |||||||||||||||
Fixed income securities | 900 | (897 | ) | — | — | — | (49 | ) | 46 | — | ||||||||||||||||||||||
Derivative contracts | 3,594 | (6,549 | ) | — | — | — | 6,549 | 1,624 | 5,218 | |||||||||||||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased: | $ | 5,665 | $ | (7,446 | ) | $ | — | $ | — | $ | (1,171 | ) | $ | 6,500 | $ | 1,670 | $ | 5,218 | ||||||||||||||
-1 | Realized and unrealized gains/(losses) related to financial instruments, with the exception of customer matched-book derivatives, are reported in institutional brokerage on the consolidated statements of operations. Realized and unrealized gains/(losses) related to customer matched-book derivatives are reported in investment banking. Realized and unrealized gains/(losses) related to investments are reported in investment banking revenues or investment income on the consolidated statements of operations. | |||||||||||||||||||||||||||||||
The carrying values of some of the Company’s financial instruments approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include cash, securities either purchased or sold under agreements to resell, receivables and payables either from or to customers and brokers, dealers and clearing organizations and short-term financings. | ||||||||||||||||||||||||||||||||
Non-Recurring Fair Value Measurement | ||||||||||||||||||||||||||||||||
In 2012, the Company recorded a goodwill impairment charge of $5.5 million within discontinued operations representing the full value of goodwill attributable to FAMCO. The fair value measurement used in the analysis was based on a discounted cash flow model and the anticipated pricing for the sale of FAMCO. The discounted cash flow model was calculated using unobservable inputs, such as operational budgets, strategic plans and other estimates, which are classified as Level III within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
In 2011, the Company recorded a goodwill impairment charge of $120.3 million within continuing operations representing the full value of goodwill attributable to the capital markets reporting unit. The fair value measurement used in the analysis was based on the Company’s market capitalization, a discounted cash flow model, and public company comparables. The discounted cash flow model was calculated using unobservable inputs, such as operational budgets, long range strategic plans and other estimates, which are classified as Level III within the fair value hierarchy. See Note 14 for further discussion. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2013 | |
Variable Interest Entities Disclosure [Abstract] | ' |
Variable Interest Entities | ' |
Variable Interest Entities | |
The Company has investments in and/or acts as the managing partner of various partnerships, limited liability companies, or registered mutual funds. These entities were established for the purpose of investing in securities of public or private companies, or municipal debt obligations and were initially financed through the capital commitments or seed investments of the members. | |
VIEs are entities in which equity investors lack the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities. The determination as to whether an entity is a VIE is based on the amount and nature of the members’ equity investment in the entity. The Company also considers other characteristics such as the power through voting rights or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance. For those entities that meet the deferral provisions defined by ASU 2010-10, the Company considers characteristics such as the ability to influence the decision making about the entity’s activities and how the entity is financed. The Company has identified certain of the entities described above as VIEs. These VIEs had net assets approximating $0.8 billion at December 31, 2013 and 2012, respectively. The Company’s exposure to loss from these VIEs is $12.5 million, which is the carrying value of its capital contributions recorded in investments on the consolidated statements of financial condition at December 31, 2013. The Company had no liabilities related to these VIEs at December 31, 2013 and 2012. | |
The Company is required to consolidate all VIEs for which it is considered to be the primary beneficiary. The determination as to whether the Company is considered to be the primary beneficiary is based on whether the Company has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. For those entities that meet the deferral provisions defined by ASU 2010-10, the determination as to whether the Company is considered to be the primary beneficiary differs in that it is based on whether the Company will absorb a majority of the VIE’s expected losses, receive a majority of the VIE’s expected residual returns, or both. The Company determined it is not the primary beneficiary of these VIEs and accordingly does not consolidate them. Furthermore, the Company has not provided financial or other support to these VIEs that it was not previously contractually required to provide as of December 31, 2013. | |
The Company also originates CMOs through secondary market vehicles. The Company's risk of loss with respect to these entities is limited to the fair value of the securities held by the Company. |
Receivables_from_and_Payables_
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Brokers and Dealers [Abstract] | ' | |||||||
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | ' | |||||||
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | ||||||||
Amounts receivable from brokers, dealers and clearing organizations included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Receivable arising from unsettled securities transactions | $ | 59,657 | $ | 66,426 | ||||
Deposits paid for securities borrowed | 36,278 | 32,163 | ||||||
Receivable from clearing organizations | 966 | 17,655 | ||||||
Deposits with clearing organizations | 20,995 | 24,717 | ||||||
Securities failed to deliver | 593 | 5,440 | ||||||
Other | 8,624 | 1,716 | ||||||
$ | 127,113 | $ | 148,117 | |||||
Amounts payable to brokers, dealers and clearing organizations included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Payable arising from unsettled securities transactions | $ | 5,643 | $ | 24,643 | ||||
Payable to clearing organizations | 9,462 | 5,763 | ||||||
Securities failed to receive | 744 | 7,459 | ||||||
Other | 11,873 | 22,290 | ||||||
$ | 27,722 | $ | 60,155 | |||||
Deposits paid for securities borrowed approximate the market value of the securities. Securities failed to deliver and receive represent the contract value of securities that have not been delivered or received by the Company on settlement date. |
Receivables_from_and_Payables_1
Receivables from and Payables to Customers | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Receivables From Payables To Customers [Abstract] | ' | |||||||
Receivables From Payables To Customers | ' | |||||||
Receivables from and Payables to Customers | ||||||||
Amounts receivable from customers included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Cash accounts | $ | 5,013 | $ | 7,444 | ||||
Margin accounts | 6,620 | 6,351 | ||||||
Total receivables | $ | 11,633 | $ | 13,795 | ||||
Securities owned by customers are held as collateral for margin loan receivables. This collateral is not reflected on the consolidated financial statements. Margin loan receivables earn interest at floating interest rates based on prime rates. | ||||||||
Amounts payable to customers included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Cash accounts | $ | 30,499 | $ | 32,103 | ||||
Margin accounts | 2,610 | 9,904 | ||||||
Total payables | $ | 33,109 | $ | 42,007 | ||||
Payables to customers primarily comprise certain cash balances in customer accounts consisting of customer funds pending settlement of securities transactions and customer funds on deposit. Except for amounts arising from customer short sales, all amounts payable to customers are subject to withdrawal by customers upon their request. |
Collateralized_Securities_Tran
Collateralized Securities Transactions | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Collateralized Securities Transactions Disclosure [Abstract] | ' | |||||||||
Collateralized Securities Transactions | ' | |||||||||
Collateralized Securities Transactions | ||||||||||
The Company’s financing and customer securities activities involve the Company using securities as collateral. In the event that the counterparty does not meet its contractual obligation to return securities used as collateral (e.g., pursuant to the terms of a repurchase agreement), or customers do not deposit additional securities or cash for margin when required, the Company may be exposed to the risk of reacquiring the securities or selling the securities at unfavorable market prices in order to satisfy its obligations to its customers or counterparties. The Company seeks to control this risk by monitoring the market value of securities pledged or used as collateral on a daily basis and requiring adjustments in the event of excess market exposure. The Company also uses unaffiliated third party custodians to administer the underlying collateral for certain of its repurchase agreements and short-term financing to mitigate risk. | ||||||||||
In a reverse repurchase agreement the Company purchases financial instruments from a seller, typically in exchange for cash, and agrees to resell the same or substantially the same financial instruments to the seller at a stated price plus accrued interest in the future. In a repurchase agreement, the Company sells financial instruments to a buyer, typically for cash, and agrees to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date. Even though repurchase and reverse repurchase agreements involve the legal transfer of ownership of financial instruments, they are accounted for as financing arrangements because they require the financial instruments to be repurchased or resold at maturity of the agreement. | ||||||||||
In a securities borrowed transaction, the Company borrows securities from a counterparty in exchange for cash. When the Company returns the securities, the counterparty returns the cash. Interest is generally paid periodically over the life of the transaction. | ||||||||||
In the normal course of business, the Company obtains securities purchased under agreements to resell, securities borrowed and margin agreements on terms that permit it to repledge or resell the securities to others, typically pursuant to repurchase agreements. The Company obtained securities with a fair value of approximately $212.4 million and $186.1 million at December 31, 2013 and 2012, respectively, of which $194.9 million and $174.4 million, respectively, had been pledged or otherwise transferred to satisfy its commitments under financial instruments and other inventory positions sold, but not yet purchased. | ||||||||||
The following is a summary of the Company’s securities sold under agreements to repurchase ("Repurchase Liabilities"), the fair market value of collateral pledged and the interest rate charged by the Company’s counterparty, which is based on LIBOR plus an applicable margin, as of December 31, 2013: | ||||||||||
Repurchase | Fair Market | |||||||||
(Dollars in thousands) | Liabilities | Value | Interest Rate | |||||||
Term up to 30 day maturities: | ||||||||||
Asset-backed securities | $ | 3,672 | $ | 5,328 | 1.85% | |||||
Term of 30 to 90 day maturities: | ||||||||||
Asset-backed securities | 725 | 966 | 1.99% | |||||||
$ | 4,397 | $ | 6,294 | |||||||
Reverse repurchase agreements, repurchase agreements and securities borrowed and loaned are reported on a net basis by counterparty when a legal right of offset exists. | ||||||||||
There were no gross amounts offset on the consolidated statements of financial condition for reverse repurchase agreements, securities borrowed or repurchase agreements at December 31, 2013 and 2012, respectively, as a legal right of offset did not exist. The Company had no outstanding securities lending arrangements as of December 31, 2013 or 2012. See Note 6 for information related to the Company's offsetting of derivative contracts. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Assets | ||||||||
Other assets included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Net deferred income tax assets | $ | 36,252 | $ | 33,622 | ||||
Fee receivables | 34,415 | 25,343 | ||||||
Accrued interest receivables | 9,793 | 8,029 | ||||||
Forgivable loans, net | 7,879 | 10,315 | ||||||
Income tax receivables | — | 5,448 | ||||||
Prepaid expenses | 5,237 | 3,840 | ||||||
Other | 8,516 | 2,202 | ||||||
Total other assets | $ | 102,092 | $ | 88,799 | ||||
See Note 28 for additional details concerning the Company's net deferred income tax assets. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Intangible Assets | ' | |||||||||||
Goodwill and Intangible Assets | ||||||||||||
The following table presents the changes in the carrying value of goodwill and intangible assets from continuing operations for the years ended December 31: | ||||||||||||
Capital | Asset | |||||||||||
(Dollars in thousands) | Markets | Management | Total | |||||||||
Goodwill | ||||||||||||
Balance at December 31, 2011 | $ | — | $ | 196,844 | $ | 196,844 | ||||||
Goodwill acquired | — | — | — | |||||||||
Impairment charge | — | — | — | |||||||||
Balance at December 31, 2012 | $ | — | $ | 196,844 | $ | 196,844 | ||||||
Goodwill acquired | 13,790 | — | 13,790 | |||||||||
Impairment charge | — | — | — | |||||||||
Balance at December 31, 2013 | $ | 13,790 | $ | 196,844 | $ | 210,634 | ||||||
Intangible assets | ||||||||||||
Balance at December 31, 2011 | $ | — | $ | 48,202 | $ | 48,202 | ||||||
Amortization of intangible assets | — | (6,944 | ) | (6,944 | ) | |||||||
Balance at December 31, 2012 | $ | — | $ | 41,258 | $ | 41,258 | ||||||
Intangible assets acquired | 6,665 | — | 6,665 | |||||||||
Amortization of intangible assets | (1,349 | ) | (6,644 | ) | (7,993 | ) | ||||||
Balance at December 31, 2013 | $ | 5,316 | $ | 34,614 | $ | 39,930 | ||||||
The Company tests goodwill and indefinite-life intangible assets for impairment on an annual basis and on an interim basis when circumstances exist that could indicate possible impairment. The Company tests for impairment at the reporting unit level, which is generally one level below its operating segments. The Company has identified two reporting units: capital markets and asset management. When testing for impairment, the Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after making an assessment, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform the two-step impairment test, which requires management to make judgments in determining what assumptions to use in the calculation. The first step of the process consists of estimating the fair value of our reporting units based on the following factors: a discounted cash flow model using revenue and profit forecasts, the Company’s market capitalization, public market comparables and multiples of recent mergers and acquisitions of similar businesses, if available. The estimated fair values of our reporting units are compared with their carrying values, which includes the allocated goodwill. If the estimated fair value is less than the carrying values, a second step is performed to measure the amount of the impairment loss, if any. An impairment loss is equal to the excess of the carrying amount of goodwill over its fair value. | ||||||||||||
The Company completed its annual goodwill impairment testing as of October 31, 2013, and concluded there was no goodwill impairment. In 2012, the Company recorded a non-cash goodwill impairment charge of $5.5 million within discontinued operations. This amount represented the full value of goodwill attributable to FAMCO. In 2011, the Company recorded a non-cash goodwill impairment charge of $120.3 million within continuing operations. The charge related to the capital markets reporting unit and primarily pertained to goodwill created from the 1998 acquisition of Piper Jaffray Companies Inc. by U.S. Bancorp, which was retained by the Company when the Company spun-off from U.S. Bancorp on December 31, 2003. | ||||||||||||
The Company also tested its intangible assets (indefinite and definite-lived) and concluded there was no impairment in 2013, 2012 and 2011, respectively. | ||||||||||||
The addition of goodwill and intangible assets during the year ended December 31, 2013 related to the acquisitions of Seattle-Northwest and Edgeview, as discussed in Note 4. Management identified $6.7 million of intangible assets, consisting of customer relationships ($6.0 million) and non-competition agreements ($0.7 million), which will be amortized over a weighted average life of 1.9 years and 3.0 years, respectively. | ||||||||||||
Intangible assets with determinable lives consist of asset management contractual relationships and capital markets customer relationships and non-competition agreements. The intangible assets are amortized over their estimated useful lives ranging from two to ten years. The following table summarizes the future aggregate amortization expense of the Company's intangible assets with determinable lives for the years ended: | ||||||||||||
(Dollars in thousands) | ||||||||||||
2014 | $ | 9,272 | ||||||||||
2015 | 7,093 | |||||||||||
2016 | 6,219 | |||||||||||
2017 | 5,230 | |||||||||||
Thereafter | 9,256 | |||||||||||
Total | $ | 37,070 | ||||||||||
Fixed_Assets
Fixed Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Fixed Assets | ' | |||||||
Fixed Assets | ||||||||
The following is a summary of fixed assets: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Furniture and equipment | $ | 34,980 | $ | 36,454 | ||||
Leasehold improvements | 23,478 | 19,508 | ||||||
Software | 19,967 | 20,159 | ||||||
Total | 78,425 | 76,121 | ||||||
Accumulated depreciation and amortization | (62,311 | ) | (61,032 | ) | ||||
$ | 16,114 | $ | 15,089 | |||||
For the years ended December 31, 2013, 2012 and 2011, depreciation and amortization of furniture and equipment, leasehold improvements and software from continuing operations totaled $5.6 million, $6.5 million and $6.6 million, respectively, and are included in occupancy and equipment on the consolidated statements of operations. |
ShortTerm_Financing
Short-Term Financing | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Short-Term Financing | ' | |||||||||||
Short-Term Financing | ||||||||||||
The following is a summary of short-term financing and the weighted average interest rate on borrowings: | ||||||||||||
Outstanding Balance | Weighted Average Interest Rate | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||
Commercial paper (secured) | $ | 280,294 | $ | 304,439 | 1.59% | 1.65% | ||||||
Prime broker arrangement | 234,417 | 172,575 | 0.90% | 0.98% | ||||||||
Total short-term financing | $ | 514,711 | $ | 477,014 | ||||||||
The Company issues secured commercial paper to fund a portion of its securities inventory. The commercial paper notes (“CP Notes”) can be issued with maturities of 27 days to 270 days from the date of issuance. The CP Notes are issued under three separate programs, CP Series A, CP Series II A and CP Series III A, and are secured by different inventory classes. As of December 31, 2013, the weighted average maturity of CP Series A, CP Series II A and CP Series III A was 132 days, 107 days and 31 days, respectively. The CP Notes are interest bearing or sold at a discount to par with an interest rate based on LIBOR plus an applicable margin. | ||||||||||||
The Company has established an arrangement to obtain financing with a prime broker related to its municipal bond funds. Financing under this arrangement is secured by certain securities, primarily municipal securities, and collateral limitations could reduce the amount of funding available under this arrangement. The funding is at the discretion of the prime broker. | ||||||||||||
The Company has committed short-term bank line financing available on a secured basis and uncommitted short-term bank line financing available on both a secured and unsecured basis. The Company uses these credit facilities in the ordinary course of business to fund a portion of its daily operations and the amount borrowed under these credit facilities varies daily based on the Company’s funding needs. | ||||||||||||
The Company’s committed short-term bank line financing at December 31, 2013 consisted of a one-year $250 million committed revolving credit facility with U.S. Bank, N.A., which was renewed in December 2013. Advances under this facility are secured by certain marketable securities. The facility includes a covenant that requires the Company’s U.S. broker dealer subsidiary to maintain a minimum net capital of $120 million, and the unpaid principal amount of all advances under this facility will be due on December 27, 2014. The Company pays a nonrefundable commitment fee on the unused portion of the facility on a quarterly basis. At December 31, 2013, the Company had no advances against this line of credit. | ||||||||||||
The Company’s uncommitted secured lines at December 31, 2013 totaled $185 million with two banks and are dependent on having appropriate collateral, as determined by the bank agreement, to secure an advance under the line. The availability of the Company’s uncommitted lines are subject to approval by the individual banks each time an advance is requested and may be denied. At December 31, 2013, the Company had no advances against these lines of credit. |
Variable_Rate_Senior_Notes
Variable Rate Senior Notes | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Variable Rate Senior Notes | ' |
Variable Rate Senior Notes | |
On November 30, 2012, the Company entered into a note purchase agreement (“Note Purchase Agreement”) under which the Company issued unsecured variable rate senior notes (“Notes”) in the amount of $125 million. The initial holders of the Notes are certain entities advised by PIMCO. The Notes consist of two classes, Class A Notes and Class B Notes, with principal amounts of $50 million and $75 million, respectively. The Class A Notes bear interest at a rate equal to three-month LIBOR plus 4.00 percent and mature on May 31, 2014. The Class B Notes bear interest at a rate equal to three-month LIBOR plus 4.50 percent and mature on November 30, 2015. Interest on the Notes is adjustable and payable quarterly. The unpaid principal amounts are due in full on the respective maturity dates and may not be prepaid by the Company. The proceeds from the Notes were used to repay the outstanding balance under the bank syndicated credit agreement (“Credit Agreement”) discussed in Note 18. The remaining proceeds are being used for general corporate purposes. | |
The Note Purchase Agreement includes customary events of default, including failure to pay principal when due or failure to pay interest within five business days of when due, any representation or warranty in the Note Purchase Agreement proving untrue in any material respect when made by the Company, failure to comply with the covenants in the Note Purchase Agreement, failure to pay or another event of default under other material indebtedness in an amount exceeding $10 million, bankruptcy or insolvency of the Company or any of its subsidiaries or a change in control of the Company. If there is any event of default under the Note Purchase Agreement, the noteholders may declare the entire principal and any accrued interest on the Notes to be due and payable and exercise other customary remedies. | |
The Note Purchase Agreement includes covenants that, among other things, require the Company to maintain a minimum consolidated tangible net worth and regulatory net capital, limit the Company's leverage ratio and require the Company to maintain a minimum ratio of operating cash flow to fixed charges. With respect to the net capital covenant, the Company's U.S. broker dealer subsidiary is required to maintain minimum net capital of $120 million. At December 31, 2013, the Company was in compliance with all covenants. | |
The Notes are recorded at amortized cost. As of December 31, 2013, the carrying value of the Notes approximates fair value. |
Bank_Syndicated_Financing
Bank Syndicated Financing | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Bank Syndicated Financing | ' |
Bank Syndicated Financing | |
On December 29, 2010, the Company entered into a three-year Credit Agreement comprised of a $100 million amortizing term loan and a $50 million revolving credit facility. SunTrust Bank was the administrative agent (“Agent”) for the lenders. The interest rate for borrowing under the Credit Agreement was, at the option of the Company, equal to LIBOR or a base rate, plus an applicable margin, adjustable and payable quarterly at a minimum. The base rate was defined as the highest of the Agent’s prime lending rate, the Federal Funds Rate plus 0.50 percent or one-month LIBOR plus 1.00 percent. The applicable margin varied from 1.50 percent to 3.00 percent and was based on the Company’s leverage ratio. In addition, the Company also paid a nonrefundable commitment fee of 0.50 percent on the unused portion of the revolving credit facility on a quarterly basis. The outstanding balance and unpaid interest on the Credit Agreement was repaid on November 30, 2012 from the proceeds of the Notes discussed in Note 17. |
Legal_Contingencies
Legal Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Legal Contingencies | ' | |||
Contingencies, Commitments and Guarantees | ||||
Legal Contingencies | ||||
The Company has been named as a defendant in various legal actions, including complaints and litigation and arbitration claims, arising from its business activities. Such actions include claims related to securities brokerage and investment banking activities, and certain class actions that primarily allege violations of securities laws and seek unspecified damages, which could be substantial. Also, the Company is involved from time to time in investigations and proceedings by governmental agencies and self-regulatory organizations (“SROs”) which could result in adverse judgments, settlement, penalties, fines or other relief. | ||||
The Company has established reserves for potential losses that are probable and reasonably estimable that may result from pending and potential legal actions, investigations and regulatory proceedings. In many cases, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount or range of any potential loss, particularly where proceedings may be in relatively early stages or where plaintiffs are seeking substantial or indeterminate damages. Matters frequently need to be more developed before a loss or range of loss can reasonably be estimated. | ||||
Given uncertainties regarding the timing, scope, volume and outcome of pending and potential legal actions, investigations and regulatory proceedings and other factors, the amounts of reserves and ranges of reasonably possible losses are difficult to determine and of necessity subject to future revision. Subject to the foregoing, management of the Company believes, based on currently available information, after consultation with outside legal counsel and taking into account its established reserves, that pending legal actions, investigations and regulatory proceedings will be resolved with no material adverse effect on the consolidated statements of financial condition, results of operations or cash flows of the Company. However, if during any period a potential adverse contingency should become probable or resolved for an amount in excess of the established reserves, the results of operations and cash flows in that period and the financial condition as of the end of that period could be materially adversely affected. In addition, there can be no assurance that material losses will not be incurred from claims that have not yet been brought to the Company’s attention or are not yet determined to be reasonably possible. | ||||
Litigation-related reserve activity from continuing operations included within other operating expenses resulted in a benefit of$4.1 million primarily attributable to the receipt of insurance proceeds for the reimbursement of prior legal settlements, expense of $0.9 million, and a benefit of $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Operating Lease Commitments | ||||
The Company leases office space throughout the United States and in a limited number of foreign countries where the Company’s international operations reside. Aggregate minimum lease commitments under operating leases as of December 31, 2013 are as follows: | ||||
(Dollars in thousands) | ||||
2014 | $ | 11,997 | ||
2015 | 10,011 | |||
2016 | 10,203 | |||
2017 | 8,477 | |||
2018 | 8,158 | |||
Thereafter | 27,718 | |||
$ | 76,564 | |||
Total minimum rentals to be received from 2014 through 2018 under noncancelable subleases were $9.8 million at December 31, 2013. | ||||
Rental expense, including operating costs and real estate taxes, from continuing operations was $12.9 million, $13.1 million and $14.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Fund Commitments | ||||
As of December 31, 2013, the Company had commitments to invest approximately $47.6 million in limited partnerships that make investments in private equity and venture capital funds. The commitments are estimated to be funded, if called, through the end of the respective investment periods ranging from 2014 to 2018. | ||||
Other Guarantees | ||||
The Company is a member of numerous exchanges and clearinghouses. Under the membership agreements with these entities, members generally are required to guarantee the performance of other members, and if a member becomes unable to satisfy its obligations to the clearinghouse, other members would be required to meet shortfalls. To mitigate these performance risks, the exchanges and clearinghouses often require members to post collateral. In addition, the Company identifies and guarantees certain clearing agents against specified potential losses in connection with providing services to the Company or its affiliates. The Company’s maximum potential liability under these arrangements cannot be quantified. However, management believes the likelihood that the Company would be required to make payments under these arrangements is remote. Accordingly, no liability is recorded in the consolidated financial statements for these arrangements. | ||||
As general partner, Piper Jaffray Investment Management LLC, a wholly-owned subsidiary of the Company, has guaranteed the debts, liabilities and obligations of a municipal bond fund to the extent of the general partner’s assets. Management believes the likelihood that the Company would be required to make payments under this arrangement is remote. Accordingly, no liability is recorded in the consolidated financial statements for this arrangement. | ||||
Concentration of Credit Risk | ||||
The Company provides investment, capital-raising and related services to a diverse group of domestic and foreign customers, including governments, corporations, and institutional and individual investors. The Company’s exposure to credit risk associated with the non-performance of customers in fulfilling their contractual obligations pursuant to securities transactions can be directly impacted by volatile securities markets, credit markets and regulatory changes. This exposure is measured on an individual customer basis and on a group basis for customers that share similar attributes. To alleviate the potential for risk concentrations, counterparty credit limits have been implemented for certain products and are continually monitored in light of changing customer and market conditions. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | ' |
Restructuring | ' |
Restructuring | |
For the year ended December 31, 2013, the Company incurred pre-tax restructuring charges of $3.6 million from continuing operations. The charge resulted from severance benefits of $2.4 million, $0.5 million for vacating redundant leased office space and $0.7 million for contract termination costs. For the year ended December 31, 2012, the Company incurred pre-tax restructuring-related charges of $3.6 million from continuing operations. The charge resulted from severance benefits of $2.4 million and from the reduction of leased office space of $1.2 million. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
Shareholders’ Equity | |
The certificate of incorporation of Piper Jaffray Companies provides for the issuance of up to 100,000,000 shares of common stock with a par value of $0.01 per share and up to 5,000,000 shares of undesignated preferred stock with a par value of $0.01 per share. | |
Common Stock | |
The holders of Piper Jaffray Companies common stock are entitled to one vote per share on all matters to be voted upon by the shareholders. Subject to preferences that may be applicable to any outstanding preferred stock of Piper Jaffray Companies, the holders of its common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the Piper Jaffray Companies board of directors out of funds legally available for that purpose. Piper Jaffray Companies does not currently pay cash dividends on its common stock. Additionally, there are dividend restrictions as set forth in Note 27. | |
In the event that Piper Jaffray Companies is liquidated or dissolved, the holders of its common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to any prior distribution rights of Piper Jaffray Companies preferred stock, if any, then outstanding. Currently, there is no outstanding preferred stock. The holders of the common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to Piper Jaffray Companies common stock. | |
During the year ended December 31, 2013, the Company issued 96,049 common shares out of treasury stock in fulfillment of $3.9 million in obligations under the Piper Jaffray Companies Retirement Plan (the “Retirement Plan”) and issued 786,467 common shares out of treasury stock as a result of employee restricted share vesting as discussed in Note 24. During the year ended December 31, 2012, the Company issued 165,241 common shares out of treasury stock in fulfillment of $3.8 million in obligations under the Retirement Plan and issued 937,978 common shares out of treasury stock as a result of employee restricted share vesting. | |
In the third quarter of 2010, the Company’s board of directors authorized the repurchase of up to $75.0 million in common shares through September 30, 2012. During the nine months ended September 30, 2012, the Company repurchased 1,488,881 shares of the Company’s common stock at an average price of $22.48 per share for an aggregate purchase price of $33.5 million related to this authorization. This share repurchase authorization expired as of September 30, 2012. | |
In the third quarter of 2012, the Company’s board of directors authorized the repurchase of up to $100.0 million in common shares through September 30, 2014. During the fourth quarter of 2012, the Company repurchased 156,577 shares of the Company's common stock at an average price of $29.38 per share for an aggregate purchase price of $4.6 million related to this authorization. During the year ended December 31, 2013, the Company repurchased 1,719,662 shares, or 11.3 percent of the Company’s outstanding common stock, at an average price of $32.52 per share for an aggregate purchase price of $55.9 million related to this authorization. The Company has $39.5 million remaining under this authorization. | |
The Company also purchases shares of common stock from restricted stock award recipients upon the award vesting as recipients sell shares to meet their employment tax obligations. The Company purchased 386,713 shares or $15.5 million and 385,449 shares or $9.1 million of the Company’s common stock for this purpose during the years ended December 31, 2013 and 2012, respectively. | |
Preferred Stock | |
The Piper Jaffray Companies board of directors has the authority, without action by its shareholders, to designate and issue preferred stock in one or more series and to designate the rights, preferences and privileges of each series, which may be greater than the rights associated with the common stock. It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of holders of common stock until the Piper Jaffray Companies board of directors determines the specific rights of the holders of preferred stock. However, the effects might include, among other things, the following: restricting dividends on its common stock, diluting the voting power of its common stock, impairing the liquidation rights of its common stock and delaying or preventing a change in control of Piper Jaffray Companies without further action by its shareholders. |
Noncontrolling_Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2013 | |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling Interests | ' |
Noncontrolling Interests | |
The consolidated financial statements include the accounts of Piper Jaffray Companies, its wholly owned subsidiaries and other entities in which the Company has a controlling financial interest. Noncontrolling interests represent equity interests in consolidated entities that are not attributable, either directly or indirectly, to Piper Jaffray Companies. Noncontrolling interests include the minority equity holders’ proportionate share of the equity in a municipal bond fund of $126.3 million, a merchant banking fund of $14.1 million and private equity investment vehicles aggregating $7.0 million as of December 31, 2013. As of December 31, 2012, noncontrolling interests included the minority equity holders’ proportionate share of the equity in a municipal bond fund of $43.7 million, a merchant banking fund of $6.4 million and private equity investment vehicles aggregating $6.8 million. | |
Ownership interests in entities held by parties other than the Company’s common shareholders are presented as noncontrolling interests within shareholders’ equity, separate from the Company’s own equity. Revenues, expenses and net income or loss are reported on the consolidated statements of operations on a consolidated basis, which includes amounts attributable to both the Company’s common shareholders and noncontrolling interests. Net income or loss is then allocated between the Company and noncontrolling interests based upon their relative ownership interests. Net income applicable to noncontrolling interests is deducted from consolidated net income to determine net income applicable to the Company. There was no other comprehensive income or loss attributed to noncontrolling interests for the years ended December 31, 2013, 2012 and 2011. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan [Abstract] | ' |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
The Company has various employee benefit plans, and substantially all employees are covered by at least one plan. The plans include health and welfare plans, a tax-qualified retirement plan (the “Retirement Plan”), and a post-retirement medical plan, which was terminated in 2013. During the years ended December 31, 2013, 2012 and 2011, the Company incurred employee benefits expenses from continuing operations of $12.1 million, $13.0 million and $11.6 million, respectively. | |
Health and Welfare Plans | |
Company employees who meet certain work schedule and service requirements are eligible to participate in the Company’s health and welfare plans. The Company subsidizes the cost of coverage for employees. The medical plan contains cost-sharing features such as deductibles and coinsurance. | |
The Company is self-insured for losses related to health claims, although it obtains third-party stop loss insurance coverage on both an individual and a group plan basis. Self-insured liabilities are based on a number of factors, including historical claims experience, an estimate of claims incurred but not reported and valuations provided by third-party actuaries. For the years ended December 31, 2013, 2012 and 2011, the Company recognized expense of $7.2 million, $8.0 million and $6.9 million, respectively, in compensation and benefits expense from continuing operations on the consolidated statements of operations related to its health plans. | |
Retirement Plan | |
The Retirement Plan consists of a defined contribution retirement savings plan. The defined contribution retirement savings plan allows qualified employees, at their option, to make contributions through salary deductions under Section 401(k) of the Internal Revenue Code. Employee contributions are 100 percent matched by the Company to a maximum of six percent of recognized compensation up to the social security taxable wage base. Although the Company’s matching contribution vests immediately, a participant must be employed on December 31 to receive that year’s matching contribution. The matching contribution can be made in cash or Piper Jaffray Companies common stock, at the Company’s discretion. | |
Post-retirement Medical Plan | |
All employees of the Company who met defined age and service requirements were eligible to receive post-retirement health care benefits provided under a post-retirement medical plan established by the Company in 2004. The estimated cost of these retiree health care benefits was accrued during the employees’ active service. The Company accounted for its post-retirement medical plan in accordance with FASB Accounting Standards Codification Topic 715, “Compensation – Retirement Benefits” (“ASC 715”). The Company recognized the funded status of its plan on the consolidated statements of financial condition with a corresponding adjustment to accumulated other comprehensive income, net of tax. The net unrecognized actuarial losses and unrecognized prior service costs were amortized as a component of net periodic benefit cost. Further, actuarial gains and losses that arose and were not recognized as net periodic benefit cost in the same periods were recognized as a component of other comprehensive income. These amounts were amortized as a component of net periodic benefit cost on the same basis as the amounts recognized in accumulated other comprehensive income. For each of the years ended December 31, 2013, 2012 and 2011, the net periodic benefit cost from continuing operations was $0.1 million. | |
The Company terminated the post-retirement medical plan in 2013. The Company recognized a settlement gain of $1.1 million in compensation and benefits expense from continuing operations on the consolidated statements of operations for the year ended December 31, 2013. In conjunction with the termination, the Company elected to make lump sum cash distributions to current plan participants, Company employees meeting certain age requirements and certain former employees with accumulated credits. These lump sum cash payments, totaling $1.1 million, were based on a percentage of accumulated retiree health care credits and were included in compensation and benefits expense from continuing operations on the consolidated statements of operations for the year ended December 31, 2013. |
Compensation_Plans
Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Compensation Plans | ' | ||||||||||||||||
Compensation Plans | |||||||||||||||||
Stock-Based Compensation Plans | |||||||||||||||||
The Company maintains two stock-based compensation plans, the Piper Jaffray Companies Amended and Restated 2003 Annual and Long-Term Incentive Plan (the “Incentive Plan”) and the 2010 Employment Inducement Award Plan (the “Inducement Plan”). The Company’s equity awards are recognized on the consolidated statements of operations at grant date fair value over the service period of the award, net of estimated forfeitures. | |||||||||||||||||
The following table provides a summary of the Company’s outstanding equity awards (in shares or units) as of December 31, 2013: | |||||||||||||||||
Incentive Plan | |||||||||||||||||
Restricted Stock | |||||||||||||||||
Annual grants | 866,894 | ||||||||||||||||
Sign-on grants | 436,402 | ||||||||||||||||
Retention grants | — | ||||||||||||||||
Performance grants | — | ||||||||||||||||
1,303,296 | |||||||||||||||||
Inducement Plan | |||||||||||||||||
Restricted Stock | 58,310 | ||||||||||||||||
Total restricted stock related to compensation | 1,361,606 | ||||||||||||||||
ARI deal consideration (1) | 220,456 | ||||||||||||||||
Total restricted stock outstanding | 1,582,062 | ||||||||||||||||
Incentive Plan | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
Leadership grants | 290,536 | ||||||||||||||||
Incentive Plan | |||||||||||||||||
Stock options outstanding | 469,289 | ||||||||||||||||
-1 | The Company issued restricted stock as part of deal consideration in conjunction with the acquisition of ARI. | ||||||||||||||||
Incentive Plan | |||||||||||||||||
The Incentive Plan permits the grant of equity awards, including restricted stock, restricted stock units and non-qualified stock options, to the Company’s employees and directors for up to 7.0 million shares of common stock (1.1 million shares remained available for future issuance under the Incentive Plan as of December 31, 2013). The Company believes that such awards help align the interests of employees and directors with those of shareholders and serve as an employee retention tool. The Incentive Plan provides for accelerated vesting of awards if there is a severance event, a change in control of the Company (as defined in the Incentive Plan), in the event of a participant’s death, and at the discretion of the compensation committee of the Company’s board of directors. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
Restricted stock grants are valued at the market price of the Company’s common stock on the date of grant and are amortized over the related requisite service period. The Company grants shares of restricted stock to current employees as part of year-end compensation (“Annual Grants”) and as a retention tool. Employees may receive restricted stock upon initial hiring or as a retention award (“Sign-on Grants”). The Company has also granted incremental restricted stock awards with service conditions to key employees (“Retention Grants”) and restricted stock with performance conditions to members of senior management ("Performance Grants"). | |||||||||||||||||
The Company’s Annual Grants are made each year in February. Annual Grants vest ratably over three years in equal installments. The Annual Grants provide for continued vesting after termination of employment, so long as the employee does not violate certain post-termination restrictions set forth in the award agreement or any agreements entered into upon termination. The Company determined the service inception date precedes the grant date for the Annual Grants, and that the post-termination restrictions do not meet the criteria for an in-substance service condition, as defined by ASC 718. Accordingly, restricted stock granted as part of the Annual Grants is expensed in the one-year period in which those awards are deemed to be earned, which is generally the calendar year preceding the February grant date. For example, the Company recognized compensation expense during fiscal 2013 for its February 2014 Annual Grant. If an equity award related to the Annual Grants is forfeited as a result of violating the post-termination restrictions, the lower of the fair value of the award at grant date or the fair value of the award at the date of forfeiture is recorded within the consolidated statements of operations as a reversal of compensation expense. | |||||||||||||||||
Sign-on Grants are used as a recruiting tool for new employees and are issued to current employees as a retention tool. These awards have both cliff and ratable vesting terms, and the employees must fulfill service requirements in exchange for rights to the awards. Compensation expense is amortized on a straight-line basis from the grant date over the requisite service period, generally two to five years. Employees forfeit unvested shares upon termination of employment and a reversal of compensation expense is recorded. | |||||||||||||||||
Retention Grants were subject to ratable vesting based upon a five-year service requirement and were amortized as compensation expense on a straight-line basis from the 2008 grant date over the requisite service period, which ended in May 2013. Employees forfeited unvested retention shares upon termination of employment and a reversal of compensation expense was recorded. | |||||||||||||||||
Performance Grants awarded in 2008 and 2009 expired unvested in May 2013. | |||||||||||||||||
Annually, the Company grants stock to its non-employee directors. The stock-based compensation paid to non-employee directors is fully expensed on the grant date and included within outside services expense on the consolidated statements of operations. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The Company granted restricted stock units to its leadership team (“Leadership Grants”) in May 2012 and 2013, respectively. The units will vest and convert to shares of common stock at the end of each 36-month performance period only if the Company satisfies predetermined market conditions over the performance period. Under the terms of the grants, the number of units that will vest and convert to shares will be based on the Company achieving specified market conditions during each performance period as described below. Compensation expense is amortized on a straight-line basis over the three-year requisite service period based on the fair value of the award on the grant date. The market condition must be met for the awards to vest and compensation cost will be recognized regardless if the market condition is satisfied. Employees forfeit unvested share units upon termination of employment with a corresponding reversal of compensation expense. | |||||||||||||||||
Up to 50 percent of the award can be earned based on the Company’s total shareholder return relative to members of a predetermined peer group and up to 50 percent of the award can be earned based on the Company’s total shareholder return. The fair value of the awards on the grant date were determined using a Monte Carlo simulation with the following assumptions: | |||||||||||||||||
Risk-free | Expected Stock | ||||||||||||||||
Grant Year | Interest Rate | Price Volatility | |||||||||||||||
2013 | 0.40% | 44.00% | |||||||||||||||
2012 | 0.38% | 47.60% | |||||||||||||||
Because a portion of the award vesting depends on the Company’s total shareholder return relative to a peer group, the valuation modeled the performance of the peer group as well as the correlation between the Company and the peer group. The expected stock price volatility assumptions were determined using historical volatility as correlation coefficients can only be developed through historical volatility. The risk-free interest rates were determined based on three-year U.S. Treasury bond yields. | |||||||||||||||||
Stock Options | |||||||||||||||||
The Company previously granted options to purchase Piper Jaffray Companies common stock to employees and non-employee directors in fiscal years 2004 through 2008. Employee and director options were expensed by the Company on a straight-line basis over the required service period, based on the estimated fair value of the award on the date of grant using a Black-Scholes option-pricing model. As described above pertaining to the Company’s Annual Grants of restricted shares, stock options granted to employees were expensed in the calendar year preceding the annual February grant date. For example, the Company recognized compensation expense during fiscal 2007 for its February 2008 option grant. The maximum term of the stock options granted to employees and directors is ten years. The Company has not granted stock options since 2008. | |||||||||||||||||
Inducement Plan | |||||||||||||||||
In 2010, the Company established the Inducement Plan in conjunction with the acquisition of ARI. The Company granted $7.0 million in restricted stock (158,801 shares) under the Inducement Plan to ARI employees upon closing of the transaction. These shares vest ratably over five years in equal annual installments ending on March 1, 2015. Inducement Plan awards are amortized as compensation expense on a straight-line basis over the vesting period. Employees forfeit unvested Inducement Plan shares upon termination of employment and a reversal of compensation expense is recorded. | |||||||||||||||||
Stock-Based Compensation Activity | |||||||||||||||||
The Company recorded total compensation expense within continuing operations of $21.0 million, $20.2 million and $21.2 million for the years ended December 31, 2013, 2012 and 2011, respectively, related to employee restricted stock and restricted stock unit awards. Total compensation cost includes year-end compensation for Annual Grants and the amortization of Sign-on, Retention and Leadership Grants, less forfeitures of $1.0 million, $1.3 million and $3.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. The tax benefit related to stock-based compensation costs totaled $8.2 million, $7.9 million and $8.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
The following table summarizes the changes in the Company’s unvested restricted stock (including the unvested restricted stock issued as part of the deal consideration for ARI) under the Incentive Plan and Inducement Plan for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Unvested | Weighted Average | ||||||||||||||||
Restricted Stock | Grant Date | ||||||||||||||||
(in Shares) | Fair Value | ||||||||||||||||
December 31, 2010 | 4,523,184 | $ | 39.84 | ||||||||||||||
Granted | 663,887 | 40.87 | |||||||||||||||
Vested | (1,791,712 | ) | 37.77 | ||||||||||||||
Canceled | (243,358 | ) | 39.03 | ||||||||||||||
December 31, 2011 | 3,152,001 | $ | 38.79 | ||||||||||||||
Granted | 635,136 | 22.89 | |||||||||||||||
Vested | (1,309,881 | ) | 34.21 | ||||||||||||||
Canceled | (154,818 | ) | 39.37 | ||||||||||||||
December 31, 2012 | 2,322,438 | $ | 37.01 | ||||||||||||||
Granted | 682,760 | 38.35 | |||||||||||||||
Vested | (1,165,989 | ) | 39.83 | ||||||||||||||
Canceled | (257,147 | ) | 38.3 | ||||||||||||||
December 31, 2013 | 1,582,062 | $ | 35.25 | ||||||||||||||
The fair value of restricted stock that vested during the years ended December 31, 2013, 2012 and 2011 was $46.4 million, $44.8 million and $67.7 million, respectively. | |||||||||||||||||
The following summarizes the changes in the Company’s unvested restricted stock units under the Incentive Plan for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Unvested | Weighted Average | ||||||||||||||||
Restricted | Grant Date | ||||||||||||||||
Stock Units | Fair Value | ||||||||||||||||
December 31, 2011 | — | $ | — | ||||||||||||||
Granted | 214,526 | 12.12 | |||||||||||||||
Vested | — | — | |||||||||||||||
Canceled | (41,255 | ) | 12.12 | ||||||||||||||
December 31, 2012 | 173,271 | $ | 12.12 | ||||||||||||||
Granted | 117,265 | 21.32 | |||||||||||||||
Vested | — | — | |||||||||||||||
Canceled | — | — | |||||||||||||||
December 31, 2013 | 290,536 | $ | 15.83 | ||||||||||||||
As of December 31, 2013, there was $13.5 million of total unrecognized compensation cost related to restricted stock and restricted stock units expected to be recognized over a weighted average period of 2.86 years. | |||||||||||||||||
The following table summarizes the changes in the Company’s outstanding stock options for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Weighted Average | |||||||||||||||||
Weighted | Remaining | ||||||||||||||||
Options | Average | Contractual Term | Aggregate | ||||||||||||||
Outstanding | Exercise Price | (in Years) | Intrinsic Value | ||||||||||||||
31-Dec-10 | 515,492 | $ | 44.64 | 4.9 | $ | 166,406 | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | (1,023 | ) | 39.62 | ||||||||||||||
Canceled | (11,846 | ) | 42.19 | ||||||||||||||
31-Dec-11 | 502,623 | $ | 44.71 | 3.9 | $ | — | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Canceled | (16,060 | ) | 43.17 | ||||||||||||||
31-Dec-12 | 486,563 | $ | 44.76 | 2.9 | $ | 94,150 | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Canceled | (17,274 | ) | 42.85 | ||||||||||||||
December 31, 2013 | 469,289 | $ | 44.83 | 2 | $ | 288,318 | |||||||||||
Options exercisable at December 31, 2011 | 502,623 | $ | 44.71 | 3.9 | $ | — | |||||||||||
Options exercisable at December 31, 2012 | 486,563 | $ | 44.76 | 2.9 | $ | 94,150 | |||||||||||
Options exercisable at December 31, 2013 | 469,289 | $ | 44.83 | 2 | $ | 288,318 | |||||||||||
Additional information regarding Piper Jaffray Companies options outstanding as of December 31, 2013 is as follows: | |||||||||||||||||
Options Outstanding | Exercisable Options | ||||||||||||||||
Weighted Average | |||||||||||||||||
Remaining | Weighted | Weighted | |||||||||||||||
Range of | Contractual | Average | Average | ||||||||||||||
Exercise Prices | Shares | Life (in Years) | Exercise Price | Shares | Exercise Price | ||||||||||||
$28.01 | 22,852 | 1.3 | $ | 28.01 | 22,852 | $ | 28.01 | ||||||||||
$33.40 | 4,001 | 1.6 | $ | 33.4 | 4,001 | $ | 33.4 | ||||||||||
$39.62 | 131,637 | 1.1 | $ | 39.62 | 131,637 | $ | 39.62 | ||||||||||
$41.09 | 128,887 | 4.1 | $ | 41.09 | 128,887 | $ | 41.09 | ||||||||||
$47.30 - $51.05 | 134,499 | 0.5 | $ | 47.74 | 134,499 | $ | 47.74 | ||||||||||
$70.13 - $70.65 | 47,413 | 2.9 | $ | 70.26 | 47,413 | $ | 70.26 | ||||||||||
As of December 31, 2013, there was no unrecognized compensation cost related to stock options expected to be recognized over future years. | |||||||||||||||||
The fair value of options exercised, cash received from option exercises and the resulting tax benefit realized for the tax deductions from option exercises were immaterial for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
The Company has a policy of issuing shares out of treasury (to the extent available) to satisfy share option exercises and restricted stock vesting. The Company expects to withhold approximately 0.3 million shares from employee equity awards vesting in 2014, related to employee individual income tax withholding obligations on restricted stock vesting. For accounting purposes, withholding shares to cover employees’ tax obligations is deemed to be a repurchase of shares by the Company. | |||||||||||||||||
Deferred Compensation Plan | |||||||||||||||||
In 2012, the Company established the Piper Jaffray Companies Mutual Fund Restricted Share Investment Plan, a deferred compensation plan which allows eligible employees to elect to receive a portion of the incentive compensation they would otherwise receive in the form of restricted stock, instead in MFRS Awards of registered funds managed by the Company's asset management business. MFRS Awards are awarded to qualifying employees in February of each year, and represent a portion of their compensation for performance in the preceding year similar to the Company's Annual Grants. MFRS Awards vest ratably over three years in equal installments and provide for continued vesting after termination of employment so long as the employee does not violate certain post-termination restrictions set forth in the award agreement or any agreement entered into upon termination. Forfeitures are recorded as a reduction of compensation and benefits expense within the consolidated statements of operations. | |||||||||||||||||
The Company has also granted MFRS Awards to new employees as a recruiting tool. Employees must fulfill service requirements in exchange for rights to the awards. Compensation expense from these awards will be amortized on a straight-line basis over the requisite service period of two to five years. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
Earnings Per Share | |||||||||||||
The Company calculates earnings per share using the two-class method. Basic earnings per common share is computed by dividing net income/(loss) applicable to Piper Jaffray Companies’ common shareholders by the weighted average number of common shares outstanding for the period. Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders represents net income/(loss) applicable to Piper Jaffray Companies reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities. All of the Company’s unvested restricted shares are deemed to be participating securities as they are eligible to share in the profits (e.g., receive dividends) of the Company. The Company’s unvested restricted stock units are not participating securities as they are not eligible to share in the profits of the Company. Diluted earnings per common share is calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive stock options. | |||||||||||||
The computation of earnings per share is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(Amounts in thousands, except per share data) | 2013 | 2012 | 2011 | ||||||||||
Net income/(loss) from continuing operations applicable to Piper Jaffray Companies | $ | 49,829 | $ | 47,075 | $ | (90,772 | ) | ||||||
Net loss from discontinued operations | (4,739 | ) | (5,807 | ) | (11,248 | ) | |||||||
Net income/(loss) applicable to Piper Jaffray Companies | 45,090 | 41,268 | (102,020 | ) | |||||||||
Earnings allocated to participating securities (1) | (4,494 | ) | (5,933 | ) | — | ||||||||
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders (2) | $ | 40,596 | $ | 35,335 | $ | (102,020 | ) | ||||||
Shares for basic and diluted calculations: | |||||||||||||
Average shares used in basic computation | 15,046 | 15,615 | 15,672 | ||||||||||
Stock options | 15 | 1 | 13 | ||||||||||
Restricted stock | — | — | 2,892 | ||||||||||
Average shares used in diluted computation | 15,061 | 15,616 | 18,577 | -3 | |||||||||
Earnings/(loss) per basic common share: | |||||||||||||
Income/(loss) from continuing operations | $ | 2.98 | $ | 2.58 | $ | (5.79 | ) | ||||||
Loss from discontinued operations | (0.28 | ) | (0.32 | ) | (0.72 | ) | |||||||
Earnings/(loss) per basic common share | $ | 2.7 | $ | 2.26 | $ | (6.51 | ) | ||||||
Earnings/(loss) per diluted common share: | |||||||||||||
Income/(loss) from continuing operations | $ | 2.98 | $ | 2.58 | $ | (5.79 | ) | ||||||
Loss from discontinued operations | (0.28 | ) | (0.32 | ) | (0.72 | ) | |||||||
Earnings/(loss) per diluted common share | $ | 2.7 | $ | 2.26 | $ | (6.51 | ) | -3 | |||||
-1 | Represents the allocation of earnings to participating securities. Losses are not allocated to participating securities. Participating securities include all of the Company’s unvested restricted shares. The weighted average participating shares outstanding were 1,667,067; 2,622,438 and 3,528,624 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
-2 | Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders for diluted and basic EPS may differ under the two-class method as a result of adding the effect of the assumed exercise of stock options to dilutive shares outstanding, which alters the ratio used to allocate earnings to Piper Jaffray Companies’ common shareholders and participating securities for purposes of calculating diluted and basic EPS. | ||||||||||||
-3 | Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred. | ||||||||||||
The anti-dilutive effects from stock options were immaterial for the years ended December 31, 2013, 2012 and 2011. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Reporting | ' | |||||||||||
Segment Reporting | ||||||||||||
Basis for Presentation | ||||||||||||
The Company structures its segments primarily based upon the nature of the financial products and services provided to customers and the Company’s management organization. The Company evaluates performance and allocates resources based on segment pre-tax operating income or loss and segment pre-tax operating margin. Revenues and expenses directly associated with each respective segment are included in determining their operating results. Other revenues and expenses that are not directly attributable to a particular segment are allocated based upon the Company’s allocation methodologies, including each segment’s respective net revenues, use of shared resources, headcount or other relevant measures. The financial management of assets is performed on an enterprise-wide basis. As such, assets are not assigned to the business segments. | ||||||||||||
Segment pre-tax operating income and segment pre-tax operating margin exclude the results of discontinued operations. | ||||||||||||
Reportable segment financial results from continuing operations are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Capital Markets | ||||||||||||
Investment banking | ||||||||||||
Financing | ||||||||||||
Equities | $ | 100,224 | $ | 73,180 | $ | 74,161 | ||||||
Debt | 74,284 | 74,102 | 54,565 | |||||||||
Advisory services | 74,420 | 86,165 | 74,373 | |||||||||
Total investment banking | 248,928 | 233,447 | 203,099 | |||||||||
Institutional sales and trading | ||||||||||||
Equities | 91,169 | 75,723 | 86,175 | |||||||||
Fixed income | 76,275 | 111,492 | 75,589 | |||||||||
Total institutional sales and trading | 167,444 | 187,215 | 161,764 | |||||||||
Management and performance fees | 3,891 | 1,678 | 243 | |||||||||
Investment income | 30,404 | 9,840 | 11,052 | |||||||||
Long-term financing expenses | (7,420 | ) | (7,982 | ) | (7,067 | ) | ||||||
Net revenues | 443,247 | 424,198 | 369,091 | |||||||||
Non-interest expenses | ||||||||||||
Goodwill impairment | — | — | 120,298 | |||||||||
Operating expenses (1) | 393,231 | 371,628 | 344,036 | |||||||||
Total non-interest expenses | 393,231 | 371,628 | 464,334 | |||||||||
Segment pre-tax operating income/(loss) | $ | 50,016 | $ | 52,570 | $ | (95,243 | ) | |||||
Segment pre-tax operating margin | 11.3 | % | 12.4 | % | N/M | |||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Capital Markets | ||||||||||||
Investment banking | ||||||||||||
Asset Management | ||||||||||||
Management and performance fees | ||||||||||||
Management fees | $ | 71,314 | $ | 63,236 | $ | 60,819 | ||||||
Performance fees | 7,840 | 785 | 2,245 | |||||||||
Total management and performance fees | 79,154 | 64,021 | 63,064 | |||||||||
Investment income/(loss) | 2,794 | 733 | (72 | ) | ||||||||
Net revenues | 81,948 | 64,754 | 62,992 | |||||||||
Operating expenses (1) | 56,351 | 48,313 | 47,938 | |||||||||
Segment pre-tax operating income | $ | 25,597 | $ | 16,441 | $ | 15,054 | ||||||
Segment pre-tax operating margin | 31.2 | % | 25.4 | % | 23.9 | % | ||||||
Total | ||||||||||||
Net revenues | $ | 525,195 | $ | 488,952 | $ | 432,083 | ||||||
Non-interest expenses | ||||||||||||
Goodwill impairment | — | — | 120,298 | |||||||||
Operating expenses (1) | 449,582 | 419,941 | 391,974 | |||||||||
Total non-interest expenses | 449,582 | 419,941 | 512,272 | |||||||||
Pre-tax operating income/(loss) | $ | 75,613 | $ | 69,011 | $ | (80,189 | ) | |||||
Pre-tax operating margin | 14.4 | % | 14.1 | % | N/M | |||||||
N/M – Not meaningful | ||||||||||||
-1 | Operating expenses include intangible asset amortization expense as set forth in the table below: | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Capital Markets | $ | 1,349 | $ | — | $ | — | ||||||
Asset Management | 6,644 | 6,944 | 7,256 | |||||||||
Total intangible asset amortization expense | $ | 7,993 | $ | 6,944 | $ | 7,256 | ||||||
Geographic Areas | ||||||||||||
The Company operates in both U.S. and non-U.S. markets. The Company’s non-U.S. business activities are principally conducted through European locations. Net revenues and long-lived assets for the Company's Asian location was not significant. Net revenues disclosed in the following table reflect the regional view, with financing revenues allocated to geographic locations based upon the location of the capital market, advisory revenues allocated based upon the location of the investment banking team and net institutional sales and trading revenues allocated based upon the location of the client. Asset management revenues are allocated to the U.S. based upon the geographic location of the Company’s asset management team. Net revenues exclude discontinued operations for all periods presented. | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Net revenues: | ||||||||||||
United States | $ | 513,433 | $ | 476,718 | $ | 415,647 | ||||||
Europe | 11,762 | 12,234 | 16,436 | |||||||||
Consolidated | $ | 525,195 | $ | 488,952 | $ | 432,083 | ||||||
Long-lived assets are allocated to geographic locations based upon the location of the asset. The following table presents long-lived assets held for use by geographic region: | ||||||||||||
December 31, | December 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||
Long-lived assets: | ||||||||||||
United States | $ | 296,516 | $ | 285,682 | ||||||||
Europe | 6,414 | 1,131 | ||||||||||
Consolidated | $ | 302,930 | $ | 286,813 | ||||||||
Net_Capital_Requirements_and_O
Net Capital Requirements and Other Regulatory Matters | 12 Months Ended |
Dec. 31, 2013 | |
Banking and Thrift [Abstract] | ' |
Net Capital Requirements and Other Regulatory Matters | ' |
Net Capital Requirements and Other Regulatory Matters | |
Piper Jaffray is registered as a securities broker dealer with the SEC and is a member of various SROs and securities exchanges. The Financial Industry Regulatory Authority (“FINRA”) serves as Piper Jaffray’s primary SRO. Piper Jaffray is subject to the uniform net capital rule of the SEC and the net capital rule of FINRA. Piper Jaffray has elected to use the alternative method permitted by the SEC rule, which requires that it maintain minimum net capital of the greater of $1.0 million or 2 percent of aggregate debit balances arising from customer transactions, as such term is defined in the SEC rule. Under its rules, FINRA may prohibit a member firm from expanding its business or paying dividends if resulting net capital would be less than 5 percent of aggregate debit balances. Advances to affiliates, repayment of subordinated debt, dividend payments and other equity withdrawals by Piper Jaffray are subject to certain notification and other provisions of SEC and FINRA rules. In addition, Piper Jaffray is subject to certain notification requirements related to withdrawals of excess net capital. | |
At December 31, 2013, net capital calculated under the SEC rule was $165.6 million, and exceeded the minimum net capital required under the SEC rule by $164.6 million. | |
The Company’s short-term committed credit facility of $250 million and its variable rate senior notes include covenants requiring Piper Jaffray to maintain minimum net capital of $120 million. | |
Piper Jaffray Ltd., a broker dealer subsidiary registered in the United Kingdom, was subject to the capital requirements of the Prudential Regulation Authority and the Financial Conduct Authority. As of December 31, 2013, Piper Jaffray Ltd. was in compliance with the capital requirements of the Prudential Regulation Authority and the Financial Conduct Authority. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Income tax expense is provided using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between amounts reported for income tax purposes and financial statement purposes, using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||||||||||||
The components of income tax expense from continuing operations are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Current: | ||||||||||||
Federal | $ | 20,468 | $ | 16,939 | $ | (6,108 | ) | |||||
State | 3,795 | (9,563 | ) | 27 | ||||||||
Foreign | 183 | — | — | |||||||||
24,446 | 7,376 | (6,081 | ) | |||||||||
Deferred: | ||||||||||||
Federal | (1,582 | ) | 7,735 | 13,803 | ||||||||
State | (4,041 | ) | 4,413 | 2,491 | ||||||||
Foreign | 1,567 | (54 | ) | (1,093 | ) | |||||||
(4,056 | ) | 12,094 | 15,201 | |||||||||
Total income tax expense from continuing operations | $ | 20,390 | $ | 19,470 | $ | 9,120 | ||||||
Total income tax expense/(benefit) from discontinued operations | $ | (2,935 | ) | $ | (23,795 | ) | $ | 1,756 | ||||
A reconciliation of federal income taxes at statutory rates to the Company’s effective tax rates from continuing operations is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Federal income tax expense/(benefit) at statutory rates | $ | 26,464 | $ | 24,153 | $ | (28,066 | ) | |||||
Increase/(reduction) in taxes resulting from: | ||||||||||||
Goodwill impairment | — | — | 40,440 | |||||||||
State income taxes, net of federal tax benefit | 2,785 | 2,540 | 1,327 | |||||||||
Net tax-exempt interest income | (3,917 | ) | (3,353 | ) | (3,308 | ) | ||||||
Foreign jurisdictions tax rate differential | (185 | ) | (164 | ) | 413 | |||||||
Change in valuation allowance | (4,182 | ) | (1,110 | ) | (2,185 | ) | ||||||
Restricted stock deferred tax asset write-off | — | 4,577 | 557 | |||||||||
Income attributable to noncontrolling interests | (1,888 | ) | (863 | ) | (512 | ) | ||||||
Other, net | 1,313 | (6,310 | ) | 454 | ||||||||
Total income tax expense from continuing operations | $ | 20,390 | $ | 19,470 | $ | 9,120 | ||||||
In accordance with ASC 740, U.S. income taxes are not provided on undistributed earnings of international subsidiaries that are permanently reinvested. As of December 31, 2013, undistributed earnings permanently reinvested in the Company’s foreign subsidiaries were not material. | ||||||||||||
Deferred income tax assets and liabilities reflect the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for the same items for income tax reporting purposes. The net deferred income tax assets included in other assets on the consolidated statements of financial condition consisted of the following items: | ||||||||||||
December 31, | December 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Deferred compensation | $ | 43,608 | $ | 38,090 | ||||||||
Net operating loss carry forwards | 5,569 | 7,645 | ||||||||||
Liabilities/accruals not currently deductible | 1,903 | 2,035 | ||||||||||
Other | 1,459 | 2,667 | ||||||||||
Total deferred tax assets | 52,539 | 50,437 | ||||||||||
Valuation allowance | (159 | ) | (5,139 | ) | ||||||||
Deferred tax assets after valuation allowance | 52,380 | 45,298 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Goodwill amortization | 9,957 | 6,010 | ||||||||||
Unrealized gains on firm investments | 3,577 | 2,134 | ||||||||||
Fixed assets | 1,017 | 2,706 | ||||||||||
Other | 1,577 | 826 | ||||||||||
Total deferred tax liabilities | 16,128 | 11,676 | ||||||||||
Net deferred tax assets | $ | 36,252 | $ | 33,622 | ||||||||
The realization of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized. The Company believes that its future tax profits will be sufficient to recognize its deferred tax assets, with the exception of $0.2 million in state net operating loss carryforwards. | ||||||||||||
The Company accounts for unrecognized tax benefits in accordance with the provisions of ASC 740, which requires tax reserves to be recorded for uncertain tax positions on the consolidated statements of financial condition. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Balance at December 31, 2010 | $ | 9,510 | ||||||||||
Additions based on tax positions related to the current year | — | |||||||||||
Additions for tax positions of prior years | — | |||||||||||
Reductions for tax positions of prior years | (595 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2011 | $ | 8,915 | ||||||||||
Additions based on tax positions related to the current year | — | |||||||||||
Additions for tax positions of prior years | 200 | |||||||||||
Reductions for tax positions of prior years | (8,825 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2012 | $ | 290 | ||||||||||
Additions based on tax positions related to the current year | — | |||||||||||
Additions for tax positions of prior years | 2,000 | |||||||||||
Reductions for tax positions of prior years | (90 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2013 | $ | 2,200 | ||||||||||
As of December 31, 2013, approximately $0.2 million of the Company's unrecognized tax benefits would impact the annual effective rate, if recognized. In 2012, the Company reversed $8.8 million for unrecognized tax benefits. In addition, the Company reversed $2.6 million of accrued interest related to these positions. In aggregate, the Company recorded a $7.4 million credit to income tax expense in 2012, net of federal income tax. The Company recognizes interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense. During the year ended December 31, 2013, the Company recognized $0.2 million in interest and penalties. During the year ended December 31, 2012, the Company recognized no interest and penalties. During the year ended December 31, 2011, the Company recognized approximately $0.3 million in interest and penalties. The Company had approximately $0.2 million and $0.1 million for the payment of interest and penalties accrued at December 31, 2013 and 2012, respectively. The Company or one of its subsidiaries files income tax returns with the various states and foreign jurisdictions in which the Company operates. The Company is not subject to U.S. federal tax authorities for years before 2011 and is not subject to state and local or non-U.S. tax authorities for taxable years before 2006. The Company anticipates all of its uncertain income tax provisions will be resolved within the next twelve months. |
Piper_Jaffray_Companies_Parent
Piper Jaffray Companies (Parent Company only) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Condensed statement of Financial condition [Abstract] | ' | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' | |||||||||||
Piper Jaffray Companies (Parent Company only) | ||||||||||||
Condensed Statements of Financial Condition | ||||||||||||
December 31, | December 31, | |||||||||||
(Amounts in thousands) | 2013 | 2012 | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 336 | $ | 1,069 | ||||||||
Investment in and advances to subsidiaries | 870,104 | 857,973 | ||||||||||
Other assets | 9,119 | 20,850 | ||||||||||
Total assets | $ | 879,559 | $ | 879,892 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Variable rate senior notes | $ | 125,000 | $ | 125,000 | ||||||||
Accrued compensation | 18,454 | 20,838 | ||||||||||
Other liabilities and accrued expenses | 1,429 | 762 | ||||||||||
Total liabilities | 144,883 | 146,600 | ||||||||||
Shareholders’ equity | 734,676 | 733,292 | ||||||||||
Total liabilities and shareholders’ equity | $ | 879,559 | $ | 879,892 | ||||||||
Condensed Statements of Operations | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in thousands) | 2013 | 2012 | 2011 | |||||||||
Revenues: | ||||||||||||
Dividends from subsidiaries | $ | 46,000 | $ | 119,000 | $ | 80,483 | ||||||
Interest | 254 | 82 | 31 | |||||||||
Other revenues | 198 | — | — | |||||||||
Total revenues | 46,452 | 119,082 | 80,514 | |||||||||
Interest expense | 5,850 | 5,823 | 5,392 | |||||||||
Net revenues | 40,602 | 113,259 | 75,122 | |||||||||
Non-interest expenses: | ||||||||||||
Total non-interest expenses | 3,096 | 4,222 | 13,044 | |||||||||
Income from continuing operations before income tax expense/(benefit) and equity in undistributed/(distributed in excess of) income of subsidiaries | 37,506 | 109,037 | 62,078 | |||||||||
Income tax expense/(benefit) | 13,263 | 39,175 | (3,128 | ) | ||||||||
Income from continuing operations of parent company | 24,243 | 69,862 | 65,206 | |||||||||
Equity in undistributed/(distributed in excess of) income of subsidiaries | 25,200 | (49,617 | ) | (167,226 | ) | |||||||
Net income/(loss) from continuing operations | 49,443 | 20,245 | (102,020 | ) | ||||||||
Discontinued operations: | ||||||||||||
Income/(loss) from discontinued operations, net of tax | (4,353 | ) | 21,023 | — | ||||||||
Net income/(loss) | $ | 45,090 | $ | 41,268 | $ | (102,020 | ) | |||||
Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in thousands) | 2013 | 2012 | 2011 | |||||||||
Operating Activities: | ||||||||||||
Net income/(loss) | $ | 45,090 | $ | 41,268 | $ | (102,020 | ) | |||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||||||||||||
Share-based and deferred compensation | 60 | 240 | 437 | |||||||||
Goodwill impairment | — | — | 9,247 | |||||||||
Equity distributed in excess of/(in undistributed) income of subsidiaries | (25,200 | ) | 49,617 | 167,226 | ||||||||
Net cash provided by operating activities | 19,950 | 91,125 | 74,890 | |||||||||
Financing Activities: | ||||||||||||
Issuance of variable rate senior notes | — | 125,000 | — | |||||||||
Decrease in bank syndicated financing | — | (115,000 | ) | (10,000 | ) | |||||||
Advances from/(to) subsidiaries | 35,246 | (76,481 | ) | (51,916 | ) | |||||||
Repurchase of common stock | (55,929 | ) | (38,068 | ) | (5,994 | ) | ||||||
Net cash used in financing activities | (20,683 | ) | (104,549 | ) | (67,910 | ) | ||||||
Net increase/(decrease) in cash and cash equivalents | (733 | ) | (13,424 | ) | 6,980 | |||||||
Cash and cash equivalents at beginning of year | 1,069 | 14,493 | 7,513 | |||||||||
Cash and cash equivalents at end of year | $ | 336 | $ | 1,069 | $ | 14,493 | ||||||
Supplemental disclosures of cash flow information | ||||||||||||
Cash received/(paid) during the year for: | ||||||||||||
Interest | $ | (5,596 | ) | $ | (5,741 | ) | $ | (5,361 | ) | |||
Income taxes | $ | (13,263 | ) | $ | (39,175 | ) | $ | 3,128 | ||||
Quarterly_Information_unaudite
Quarterly Information (unaudited) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||
Quarterly Information (unaudited) | ' | |||||||||||||||||
Quarterly Information (unaudited) | ||||||||||||||||||
2013 Fiscal Quarter | ||||||||||||||||||
(Amounts in thousands, except per share data) | First | Second | Third | Fourth | ||||||||||||||
Total revenues | $ | 115,312 | $ | 106,520 | $ | 134,506 | $ | 193,893 | ||||||||||
Interest expense | 5,779 | 6,748 | 6,192 | 6,317 | ||||||||||||||
Net revenues | 109,533 | 99,772 | 128,314 | 187,576 | ||||||||||||||
Non-interest expenses | 91,365 | 96,439 | 116,254 | 145,524 | ||||||||||||||
Income from continuing operations before income tax expense | 18,168 | 3,333 | 12,060 | 42,052 | ||||||||||||||
Income tax expense | 5,600 | 1,644 | 2,886 | 10,260 | ||||||||||||||
Net income from continuing operations | 12,568 | 1,689 | 9,174 | 31,792 | ||||||||||||||
Loss from discontinued operations, net of tax | (521 | ) | (1,871 | ) | (1,529 | ) | (818 | ) | ||||||||||
Net income/(loss) | 12,047 | (182 | ) | 7,645 | 30,974 | |||||||||||||
Net income/(loss) applicable to noncontrolling interests | 1,901 | (2,670 | ) | 2,323 | 3,840 | |||||||||||||
Net income applicable to Piper Jaffray Companies | $ | 10,146 | $ | 2,488 | $ | 5,322 | 27,134 | |||||||||||
Net income applicable to Piper Jaffray Companies' common shareholders | $ | 8,966 | $ | 2,266 | $ | 4,826 | $ | 24,445 | ||||||||||
Amounts applicable to Piper Jaffray Companies | ||||||||||||||||||
Net income from continuing operations | $ | 10,667 | $ | 4,359 | $ | 6,851 | $ | 27,952 | ||||||||||
Net loss from discontinued operations | (521 | ) | (1,871 | ) | (1,529 | ) | (818 | ) | ||||||||||
Net income applicable to Piper Jaffray Companies | $ | 10,146 | $ | 2,488 | $ | 5,322 | $ | 27,134 | ||||||||||
Earnings per basic common share | ||||||||||||||||||
Income from continuing operations | $ | 0.6 | $ | 0.25 | $ | 0.42 | $ | 1.75 | ||||||||||
Loss from discontinued operations | (0.03 | ) | (0.11 | ) | (0.09 | ) | (0.05 | ) | ||||||||||
Earnings per basic common share | $ | 0.58 | $ | 0.15 | $ | 0.33 | $ | 1.7 | ||||||||||
Earnings per diluted common share | ||||||||||||||||||
Income from continuing operations | $ | 0.6 | $ | 0.25 | $ | 0.42 | $ | 1.75 | ||||||||||
Loss from discontinued operations | (0.03 | ) | (0.11 | ) | (0.09 | ) | (0.05 | ) | ||||||||||
Earnings per diluted common share | $ | 0.57 | $ | 0.15 | $ | 0.33 | $ | 1.7 | ||||||||||
Weighted average number of common shares | ||||||||||||||||||
Basic | 15,582 | 15,621 | 14,641 | 14,378 | ||||||||||||||
Diluted | 15,610 | 15,626 | 14,626 | 14,397 | ||||||||||||||
2012 Fiscal Quarter | ||||||||||||||||||
(Amounts in thousands, except per share data) | First | Second | Third | Fourth | ||||||||||||||
Total revenues | $ | 117,566 | $ | 107,417 | $ | 135,900 | $ | 147,164 | ||||||||||
Interest expense | 4,128 | 4,319 | 4,395 | 6,253 | ||||||||||||||
Net revenues | 113,438 | 103,098 | 131,505 | 140,911 | ||||||||||||||
Non-interest expenses | 98,216 | 97,443 | 106,153 | 118,129 | ||||||||||||||
Income from continuing operations before income tax expense/(benefit) | 15,222 | 5,655 | 25,352 | 22,782 | ||||||||||||||
Income tax expense/(benefit) | 7,553 | (5,699 | ) | 10,194 | 7,422 | |||||||||||||
Net income from continuing operations | 7,669 | 11,354 | 15,158 | 15,360 | ||||||||||||||
Income/(loss) from discontinued operations, net of tax | (3,303 | ) | (3,934 | ) | 5,171 | (3,741 | ) | |||||||||||
Net income | 4,366 | 7,420 | 20,329 | 11,619 | ||||||||||||||
Net income/(loss) applicable to noncontrolling interests | 1,437 | 569 | 665 | (205 | ) | |||||||||||||
Net income applicable to Piper Jaffray Companies | $ | 2,929 | $ | 6,851 | $ | 19,664 | $ | 11,824 | ||||||||||
Net income applicable to Piper Jaffray Companies' common shareholders | $ | 2,480 | $ | 5,890 | $ | 16,840 | $ | 10,198 | ||||||||||
Amounts applicable to Piper Jaffray Companies | ||||||||||||||||||
Net income from continuing operations | $ | 6,232 | $ | 10,785 | $ | 14,493 | $ | 15,565 | ||||||||||
Net income/(loss) from discontinued operations | (3,303 | ) | (3,934 | ) | 5,171 | (3,741 | ) | |||||||||||
Net income applicable to Piper Jaffray Companies | $ | 2,929 | $ | 6,851 | $ | 19,664 | $ | 11,824 | ||||||||||
Earnings per basic common share | ||||||||||||||||||
Income from continuing operations | $ | 0.33 | $ | 0.58 | $ | 0.82 | $ | 0.88 | ||||||||||
Income/(loss) from discontinued operations | (0.17 | ) | (0.21 | ) | 0.29 | (0.21 | ) | |||||||||||
Earnings per basic common share | $ | 0.15 | $ | 0.37 | $ | 1.11 | $ | 0.67 | ||||||||||
Earnings per diluted common share | ||||||||||||||||||
Income from continuing operations | $ | 0.33 | $ | 0.58 | $ | 0.82 | $ | 0.88 | ||||||||||
Income/(loss) from discontinued operations | (0.17 | ) | (0.21 | ) | 0.29 | (0.21 | ) | |||||||||||
Earnings per diluted common share | $ | 0.15 | $ | 0.37 | $ | 1.11 | $ | 0.67 | ||||||||||
Weighted average number of common shares | ||||||||||||||||||
Basic | 16,072 | 15,932 | 15,210 | 15,253 | ||||||||||||||
Diluted | 16,072 | 15,932 | 15,210 | 15,256 | ||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”). | |
Voting interest entities are entities in which the total equity investment at risk is sufficient to enable each entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right or power to make decisions about or direct the entity’s activities that most significantly impact the entity’s economic performance. Voting interest entities, where the Company has a majority interest, are consolidated in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 810, “Consolidations” (“ASC 810”). ASC 810 states that the usual condition for a controlling financial interest in an entity is ownership of a majority voting interest. Accordingly, the Company consolidates voting interest entities in which it has all, or a majority of, the voting interests. | |
As defined in ASC 810, VIEs are entities that lack one or more of the characteristics of a voting interest entity described above. With the exception of entities eligible for the deferral codified in FASB Accounting Standards Update (“ASU”) No. 2010-10, “Consolidation: Amendments for Certain Investment Funds,” (“ASU 2010-10”) (generally asset managers and investment companies), ASC 810 states that a controlling financial interest in an entity is present when an enterprise has a variable interest, or combination of variable interests, that have both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity or the rights to receive benefits from the entity that could potentially be significant to the entity. Accordingly, the Company consolidates VIEs in which the Company has a controlling financial interest. | |
Entities meeting the deferral provision defined by ASU 2010-10 are evaluated under the historical VIE guidance. Under the historical guidance, a controlling financial interest in an entity is present when an enterprise has a variable interest, or combination of variable interests, that will absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns, or both. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. Accordingly, the Company consolidates VIEs subject to the deferral provisions defined by ASU 2010-10 in which the Company is deemed to be the primary beneficiary. | |
When the Company does not have a controlling financial interest in an entity but exerts significant influence over the entity’s operating and financial policies (generally defined as owning a voting or economic interest of between 20 percent to 50 percent), the Company accounts for its investment in accordance with the equity method of accounting prescribed by FASB Accounting Standards Codification Topic 323, “Investments — Equity Method and Joint Ventures.” If the Company does not have a controlling financial interest in, or exert significant influence over, an entity, the Company accounts for its investment at fair value, if the fair value option was elected, or at cost. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash and highly liquid investments with maturities of 90 days or less at the date of origination. | |
In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Piper Jaffray, as a registered broker dealer carrying customer accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its customers. | |
Customer Transactions | ' |
Customer Transactions | |
Customer securities transactions are recorded on a settlement date basis, while the related revenues and expenses are recorded on a trade date basis. Customer receivables and payables include amounts related to both cash and margin transactions. Securities owned by customers, including those that collateralize margin or other similar transactions, are not reflected on the consolidated statements of financial condition. | |
Receivables from and Payables to Brokers, Dealers, and Clearing Organizations | ' |
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | |
Receivables from brokers, dealers and clearing organizations include receivables arising from unsettled securities transactions, deposits paid for securities borrowed, receivables from clearing organizations, deposits with clearing organizations and amounts receivable for securities not delivered to the purchaser by the settlement date (“securities failed to deliver”). Payables to brokers, dealers and clearing organizations include payables arising from unsettled securities transactions, payables to clearing organizations and amounts payable for securities not received from a seller by the settlement date (“securities failed to receive”). Unsettled securities transactions related to the Company's broker dealer operations are recorded at contract value on a net basis. Unsettled securities transactions related to the Company's consolidated investment company operations are recorded on a gross basis. | |
Collateralzied Securities Transactions | ' |
Collateralized Securities Transactions | |
Securities purchased under agreements to resell and securities sold under agreements to repurchase are carried at the contractual amounts at which the securities will be subsequently resold or repurchased, including accrued interest. It is the Company’s policy to take possession or control of securities purchased under agreements to resell at the time these agreements are entered into. The counterparties to these agreements typically are primary dealers of U.S. government securities and major financial institutions. Collateral is valued daily, and additional collateral is obtained from or refunded to counterparties when appropriate. | |
Securities borrowed and loaned result from transactions with other broker dealers or financial institutions and are recorded at the amount of cash collateral advanced or received. These amounts are included in receivables from and payables to brokers, dealers and clearing organizations on the consolidated statements of financial condition. Securities borrowed transactions require the Company to deposit cash or other collateral with the lender. Securities loaned transactions require the borrower to deposit cash with the Company. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. | |
Interest is accrued on securities borrowed and loaned transactions and is included in (i) other assets or other liabilities and accrued expenses on the consolidated statements of financial condition and (ii) the respective interest income or interest expense amounts on the consolidated statements of operations. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased on the consolidated statements of financial condition consist of financial instruments recorded at fair value. Unrealized gains and losses related to these financial instruments are reflected on the consolidated statements of operations. Securities (both long and short) are recognized on a trade-date basis. Additionally, certain of the Company’s investments on the consolidated statements of financial condition are recorded at fair value, either as required by accounting guidance or through the fair value election. | |
Fair Value Hierarchy – FASB Accounting Standards Codification Topic 820, “Fair Value Measurement,” (“ASC 820”) provides a definition of fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the 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 management’s assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the transparency of inputs as follows: | |
Level I – Quoted prices (unadjusted) are available in active markets for identical assets or liabilities as of the report date. A quoted price for an identical asset or liability in an active market provides the most reliable fair value measurement because it is directly observable to the market. The type of financial instruments included in Level I are highly liquid instruments with quoted prices such as equities listed in active markets, U.S. treasury bonds, money market securities and certain exchange traded firm investments and derivative instruments. | |
Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the report date. The nature of these financial instruments include instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have been derived using a model where inputs to the model 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. Instruments which are generally included in this category are certain types of the following securities: non-exchange traded equities, U.S. government agency securities, corporate bonds, municipal securities, asset-backed securities, convertible securities and derivative instruments. | |
Level III – Instruments that have little to no pricing observability as of the report date. These financial instruments may not have two-way markets and 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. Instruments included in this category generally include certain types of the following securities: asset-backed securities, municipal securities, firm investments, convertible securities, corporate bonds and derivative instruments. | |
Valuation of Financial Instruments – The fair value of a financial instrument is the amount at which the instrument could be exchanged in an orderly transaction between market participants at the measurement date (the exit price). Based on the nature of the Company’s business and its role as a “dealer” in the securities industry or its role as a manager of alternative asset management funds, the fair values of its financial instruments are determined internally. When available, the Company values financial instruments at observable market prices, observable market parameters, or broker or dealer prices (bid and ask prices). In the case of financial instruments transacted on recognized exchanges, the observable market prices represent quotations for completed transactions from the exchange on which the financial instrument is principally traded. | |
A substantial percentage of the fair value of the Company’s financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased, are based on observable market prices, observable market parameters, or derived from broker or dealer prices. The availability of observable market prices and pricing parameters can vary from product to product. Where available, observable market prices and pricing or market parameters in a product may be used to derive a price without requiring significant judgment. In certain markets, observable market prices or market parameters are not available for all products, and fair value is determined using techniques appropriate for each particular product. These techniques involve some degree of judgment. Results from valuation models and other techniques in one period may not be indicative of future period fair value measurement. | |
For investments in illiquid or privately held securities that do not have readily determinable fair values, the determination of fair value requires the Company to estimate the value of the securities using the best information available. Among the factors considered by the Company in determining the fair value of such financial instruments are the cost, terms and liquidity of the investment, the financial condition and operating results of the issuer, the quoted market price of publicly traded securities with similar quality and yield, and other factors generally pertinent to the valuation of investments. In instances where a security is subject to transfer restrictions, the value of the security is based primarily on the quoted price of a similar security without restriction but may be reduced by an amount estimated to reflect such restrictions. In addition, even where the Company derives the value of a security based on information from an independent source, certain assumptions may be required to determine the security’s fair value. For instance, the Company assumes that the size of positions in securities that the Company holds would not be large enough to affect the quoted price of the securities if the firm sells them, and that any such sale would happen in an orderly manner. The actual value realized upon disposition could be different from the currently estimated fair value. | |
The fair values related to derivative contract transactions are reported in financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased on the consolidated statements of financial condition and any unrealized gain or loss resulting from changes in fair values of derivatives is reported on the consolidated statements of operations. Depending upon the product and terms of the transaction, the fair value of the Company’s derivative contracts can be observed or priced using models based on the net present value of estimated future cash flows. The valuation models used require inputs including contractual terms, yield curves, discount rates and measures of volatility. The Company does not utilize “hedge accounting” as described within FASB Accounting Standards Codification Topic 815, “Derivatives and Hedging” (“ASC 815”). | |
Fixed Assets | ' |
Fixed Assets | |
Fixed assets include furniture and equipment, software and leasehold improvements. Furniture and equipment and software are depreciated using the straight-line method over estimated useful lives of three to ten years. Leasehold improvements are amortized over their estimated useful life or the life of the lease, whichever is shorter. The Company capitalizes certain costs incurred in connection with internal use software projects and amortizes the amount over the expected useful life of the asset, generally three to seven years. | |
Leases | ' |
Leases | |
The Company leases its corporate headquarters and other offices under various non-cancelable leases. The leases require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of the Company’s lease agreements generally range up to twelve years. Some of the leases contain renewal options, escalation clauses, rent-free holidays and operating cost adjustments. | |
For leases that contain escalation clauses or rent-free holidays, the Company recognizes the related rent expense on a straight-line basis from the date the Company takes possession of the property to the end of the initial lease term. The Company records any difference between the straight-line rent amounts and amounts payable under the leases as part of other liabilities and accrued expenses. | |
Cash or lease incentives received upon entering into certain leases are recognized on a straight-line basis as a reduction of rent expense from the date the Company takes possession of the property or receives the cash to the end of the initial lease term. The Company records the unamortized portion of lease incentives as part of other liabilities and accrued expenses. | |
Goodwill and Intangible Assets | ' |
Goodwill and Intangible Assets | |
Goodwill represents the fair value of the consideration transferred in excess of the fair value of identifiable net assets at the acquisition date. The recoverability of goodwill is evaluated annually, at a minimum, or on an interim basis if circumstances indicate a possible inability to realize the carrying amount. The Company has the option to first assess qualitative factors to determine whether the fair value of a reporting unit is less than its carrying amount. Further quantitative analysis is required if the Company determines that the fair value of a reporting unit is less than its carrying amount. The evaluation includes assessing the estimated fair value of the Company’s reporting units based on a discounted cash flow model using revenue and profit forecasts, the Company’s market capitalization, public market comparables and multiples of recent mergers and acquisitions of similar businesses, if available. | |
Intangible assets with determinable lives consist of asset management contractual relationships and capital markets customer relationships and non-competition agreements that are amortized over their estimated useful lives ranging from two to ten years. Indefinite-life intangible assets consist of the ARI trade name. It is not amortized and is evaluated annually, at a minimum, or on an interim basis if events or circumstances indicate a possible inability to realize the carrying amount. | |
Investments | ' |
Investments | |
The Company’s proprietary investments include investments in private companies and partnerships, registered mutual funds, warrants of public and private companies and private company debt. Equity investments in private companies are accounted for at fair value, if the fair value option was elected, or at cost. Investments in partnerships are accounted for under the equity method, which is generally the net asset value. Registered mutual funds are accounted for at fair value. Company-owned warrants with a cashless exercise option are valued at fair value, while warrants without a cashless exercise option are valued at cost. Private company debt investments are recorded at amortized cost, net of any unamortized premium or discount. | |
Other Assets | ' |
Other Assets | |
Other assets include net deferred income tax assets, receivables and prepaid expenses. Receivables include fee receivables, accrued interest, income tax receivables and loans made to employees, typically in connection with their recruitment. Employee loans are forgiven based on continued employment and are amortized to compensation and benefits expense using the straight-line method over the respective terms of the loans, which generally range from two to five years. | |
Revenue Recognition | ' |
Revenue Recognition | |
Investment Banking – Investment banking revenues, which include underwriting fees, management fees and advisory fees, are recorded when services for the transactions are completed under the terms of each engagement. Expenses associated with such transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded. Investment banking revenues are presented net of related unreimbursed expenses. Expenses related to investment banking deals not completed are recognized as non-interest expenses on the consolidated statements of operations. | |
Institutional Brokerage – Institutional brokerage revenues include (i) commissions received from customers for the execution of brokerage transactions in listed and over-the-counter (OTC) equity, fixed income and convertible debt securities, which are recorded on a trade date basis, (ii) trading gains and losses and (iii) fees received by the Company for equity research. The Company permits institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. As the Company is not the primary obligor for these arrangements, expenses relating to soft dollars are netted against commission revenues. | |
Asset Management – Asset management fees include revenues the Company receives in connection with management and investment advisory services performed for separately managed accounts and various funds and partnerships. These fees are recognized in the period in which services are provided. Fees are defined in client contracts as either fixed or based on a percentage of portfolio assets under management and may include performance fees. Performance fees are earned when the investment return on assets under management exceeds certain benchmark targets or other performance targets over a specified measurement period (monthly, quarterly or annually). Performance fees, if earned, are generally recognized at the end of the specified measurement period, typically the fourth quarter of the applicable year, or upon client liquidation. Performance fees are recognized as of each reporting date for certain consolidated entities. | |
Interest Revenue and Expense – The Company nets interest expense within net revenues to mitigate the effects of fluctuations in interest rates on the Company’s consolidated statements of operations. The Company recognizes contractual interest on financial instruments owned and financial instruments sold, but not yet purchased (excluding derivative instruments), on an accrual basis as a component of interest revenue and expense. The Company accounts for interest related to its short-term and bank syndicated financings and its variable rate senior notes on an accrual basis with related interest recorded as interest expense. In addition, the Company recognizes interest revenue related to its securities borrowed and securities purchased under agreements to resell activities and interest expense related to its securities loaned and securities sold under agreements to repurchase activities on an accrual basis. | |
Investment Income – Investment income includes realized and unrealized gains and losses from the Company's merchant banking and other firm investments. | |
Stock-based Compensation | ' |
Stock-based Compensation | |
FASB Accounting Standards Codification Topic 718, “Compensation — Stock Compensation,” (“ASC 718”) requires all stock-based compensation to be expensed on the consolidated statements of operations based on the grant date fair value of the award. Compensation expense related to share-based awards that do not require future service are recognized in the year in which the awards were deemed to be earned. Share-based awards that require future service are amortized over the relevant service period net of estimated forfeitures. | |
Income Taxes | ' |
Income Taxes | |
The Company files a consolidated U.S. federal income tax return, which includes all of its qualifying subsidiaries. The Company is also subject to income tax in various states and municipalities and those foreign jurisdictions in which we operate. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between amounts reported for income tax purposes and financial statement purposes, using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The realization of deferred tax assets is assessed and a valuation allowance is recognized to the extent that it is more likely than not that any portion of a deferred tax asset will not be realized. Tax reserves for uncertain tax positions are recorded in accordance with FASB Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”). | |
Earnings Per Share | ' |
Earnings Per Share | |
Basic earnings per common share is computed by dividing net income/(loss) applicable to common shareholders by the weighted average number of common shares outstanding for the period. Net income/(loss) applicable to common shareholders represents net income/(loss) reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities. Diluted earnings per common share is calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive stock options. | |
Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the earnings allocation in the earnings per share calculation under the two-class method. The Company grants restricted stock and restricted stock units as part of its share-based compensation program. Recipients of restricted stock are entitled to receive nonforfeitable dividends during the vesting period, and therefore meet the definition of a participating security. The Company's unvested restricted stock units are not participating securities as recipients are not eligible to receive nonforfeitable dividends. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
The Company consolidates foreign subsidiaries which have designated their local currency as their functional currency. Assets and liabilities of these foreign subsidiaries are translated at year-end rates of exchange. In accordance with FASB Accounting Standards Codification Topic 830, “Foreign Currency Matters,” gains or losses resulting from translating foreign currency financial statements are included in other comprehensive income. Gains or losses resulting from foreign currency transactions are included in net income. | |
Contingencies | ' |
Contingencies | |
The Company is involved in various pending and potential legal proceedings related to its business, including litigation, arbitration and regulatory proceedings. The Company establishes reserves for potential losses in accordance with FASB Accounting Standards Codification Topic 450, “Contingencies,” to the extent that claims are probable of loss and the amount of the loss can be reasonably estimated. The determination of the outcome and reserve amounts requires significant judgment on the part of management. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | |||||||||||
The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the respective dates of acquisition: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 8,014 | ||||||||||
Financial instruments and other inventory positions owned | 24,074 | |||||||||||
Fixed assets | 1,247 | |||||||||||
Goodwill | 13,790 | |||||||||||
Intangible assets | 6,665 | |||||||||||
Other assets | 8,922 | |||||||||||
Total assets acquired | 62,712 | |||||||||||
Liabilities | ||||||||||||
Payables | 1,126 | |||||||||||
Financial instruments and other inventory positions sold, but not yet purchased | 22,588 | |||||||||||
Accrued compensation | 1,469 | |||||||||||
Other liabilities and accrued expenses | 4,789 | |||||||||||
Total liabilities assumed | 29,972 | |||||||||||
Net assets acquired | $ | 32,740 | ||||||||||
Business Acquisition, Pro Forma Information | ' | |||||||||||
The consolidated Company's unaudited pro forma information presented does not necessarily reflect the results of operations that would have resulted had the acquisitions been completed at the beginning of the applicable periods presented, does not contemplate anticipated operational efficiencies of the combined entities, nor does it indicate the results of operations in future periods. | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Net revenues | $ | 541,304 | $ | 535,694 | $ | 458,831 | ||||||
Net income/(loss) from continuing operations applicable to Piper Jaffray Companies | $ | 48,568 | $ | 50,413 | $ | (90,810 | ) | |||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Hong Kong Capital Markets | ' | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement | ' | |||||||||||
The components of discontinued operations for the Hong Kong capital markets business are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Net revenues | $ | — | $ | 6,635 | $ | 15,996 | ||||||
Restructuring expenses | — | 11,535 | — | |||||||||
Other expenses | 1,197 | 16,550 | 24,983 | |||||||||
Total non-interest expenses | 1,197 | 28,085 | 24,983 | |||||||||
Loss from discontinued operations before income tax expense/(benefit) | (1,197 | ) | (21,450 | ) | (8,987 | ) | ||||||
Income tax expense/(benefit) | (415 | ) | (21,069 | ) | 1,927 | |||||||
Loss from discontinued operations, net of tax | $ | (782 | ) | $ | (381 | ) | $ | (10,914 | ) | |||
FAMCO | ' | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement | ' | |||||||||||
The components of discontinued operations for FAMCO are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Net revenues | $ | 1,650 | $ | 5,718 | $ | 6,584 | ||||||
Goodwill impairment | — | 5,508 | — | |||||||||
Operating expenses | 5,057 | 8,362 | 7,089 | |||||||||
Total non-interest expenses | 5,057 | 13,870 | 7,089 | |||||||||
Loss from discontinued operations before income tax benefit | (3,407 | ) | (8,152 | ) | (505 | ) | ||||||
Income tax benefit | (1,326 | ) | (2,726 | ) | (171 | ) | ||||||
Loss from discontinued operations | (2,081 | ) | (5,426 | ) | (334 | ) | ||||||
Loss on sale, net of tax | (1,876 | ) | — | — | ||||||||
Loss from discontinued operations, net of tax | $ | (3,957 | ) | $ | (5,426 | ) | $ | (334 | ) |
Financial_Instruments_and_Othe1
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Disclosure Financial Instruments And Other Inventory Positions Owned And Financial Instruments And Other Inventory Positions Sold But Not Yet Purchased [Abstract] | ' | ||||||||||||||
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but not yet Purchased | ' | ||||||||||||||
Financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased were as follows: | |||||||||||||||
December 31, | December 31, | ||||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||||
Financial instruments and other inventory positions owned: | |||||||||||||||
Corporate securities: | |||||||||||||||
Equity securities | $ | 54,097 | $ | 16,478 | |||||||||||
Convertible securities | 80,784 | 44,978 | |||||||||||||
Fixed income securities | 10,102 | 33,668 | |||||||||||||
Municipal securities: | |||||||||||||||
Taxable securities | 232,379 | 164,059 | |||||||||||||
Tax-exempt securities | 460,865 | 418,189 | |||||||||||||
Short-term securities | 62,620 | 68,328 | |||||||||||||
Asset-backed securities | 119,811 | 116,195 | |||||||||||||
U.S. government agency securities | 304,737 | 304,259 | |||||||||||||
U.S. government securities | — | 4,966 | |||||||||||||
Derivative contracts | 38,633 | 40,475 | |||||||||||||
Total financial instruments and other inventory positions owned | 1,364,028 | 1,211,595 | |||||||||||||
Less noncontrolling interests (1) | (291,513 | ) | (103,480 | ) | |||||||||||
$ | 1,072,515 | $ | 1,108,115 | ||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | |||||||||||||||
Corporate securities: | |||||||||||||||
Equity securities | $ | 69,205 | $ | 27,090 | |||||||||||
Convertible securities | — | 1,015 | |||||||||||||
Fixed income securities | 24,021 | 19,314 | |||||||||||||
Municipal securities: | |||||||||||||||
Short-term securities | — | 60 | |||||||||||||
U.S. government agency securities | 120,084 | 73,724 | |||||||||||||
U.S. government securities | 291,320 | 231,043 | |||||||||||||
Derivative contracts | 8,203 | 4,955 | |||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased | 512,833 | 357,201 | |||||||||||||
Less noncontrolling interests (2) | (68,356 | ) | (27,308 | ) | |||||||||||
$ | 444,477 | $ | 329,893 | ||||||||||||
-1 | Noncontrolling interests attributable to third party ownership in a consolidated municipal bond fund consist of $101.8 million and $43.8 million of taxable municipal securities, $183.9 million and $58.0 million of tax-exempt municipal securities, and $5.8 million and $1.7 million of derivative contracts as of December 31, 2013 and 2012, respectively. | ||||||||||||||
-2 | Noncontrolling interests attributable to third party ownership in a consolidated municipal bond fund consist of $67.4 million and $27.3 million of U.S. government securities as of December 31, 2013 and 2012, respectively, and $1.0 million of derivative contracts as of December 31, 2013. | ||||||||||||||
Total Absolute Notional Contract Amount | ' | ||||||||||||||
The following table presents the total absolute notional contract amount associated with the Company’s outstanding derivative instruments: | |||||||||||||||
(Dollars in thousands) | December 31, | December 31, | |||||||||||||
Transaction Type or Hedged Security | Derivative Category | 2013 | 2012 | ||||||||||||
Customer matched-book | Interest rate derivative contract | $ | 5,310,929 | $ | 5,569,096 | ||||||||||
Trading securities | Interest rate derivative contract | 198,500 | 244,250 | ||||||||||||
Trading securities | Credit default swap index contract | 299,333 | 230,650 | ||||||||||||
Trading securities | Equity option derivative contract | 17,090 | — | ||||||||||||
$ | 5,825,852 | $ | 6,043,996 | ||||||||||||
Unrealized Gains/(Losses) on Derivative Instruments | ' | ||||||||||||||
The following table presents the Company’s unrealized gains/(losses) on derivative instruments: | |||||||||||||||
(Dollars in thousands) | Year Ended December 31, | ||||||||||||||
Derivative Category | Operations Category | 2013 | 2012 | 2011 | |||||||||||
Interest rate derivative contract | Investment banking | $ | (1,529 | ) | $ | (2,583 | ) | $ | (4,959 | ) | |||||
Interest rate derivative contract | Institutional brokerage | (2,511 | ) | (798 | ) | (7,371 | ) | ||||||||
Credit default swap index contract | Institutional brokerage | (1,522 | ) | (1,603 | ) | 1,009 | |||||||||
Equity option derivative contract | Institutional brokerage | (646 | ) | — | — | ||||||||||
Foreign currency forward contract | Other operating expenses | — | — | (59 | ) | ||||||||||
$ | (6,208 | ) | $ | (4,984 | ) | $ | (11,380 | ) | |||||||
Gross Fair Market Value of Derivative Instruments and Location on Consolidated Statements of Financial Condition Prior to Counterparty and Cash Collateral Netting by Asset or Liability Position | ' | ||||||||||||||
The gross fair market value of all derivative instruments and their location on the Company’s consolidated statements of financial condition prior to counterparty netting are shown below by asset or liability position: | |||||||||||||||
(Dollars in thousands) | Asset Value at | Liability Value at | |||||||||||||
December 31, | December 31, | ||||||||||||||
Derivative Category | Financial Condition Location | 2013 | Financial Condition Location | 2013 | |||||||||||
Interest rate derivative contract | Financial instruments and other inventory positions owned | $ | 342,210 | Financial instruments and other inventory positions sold, but not yet purchased | $ | 323,032 | |||||||||
Credit default swap index contract | Financial instruments and other inventory positions owned | 10,070 | Financial instruments and other inventory positions sold, but not yet purchased | 7,676 | |||||||||||
Equity option derivative contract | Financial instruments and other inventory positions owned | 19 | Financial instruments and other inventory positions sold, but not yet purchased | 1,889 | |||||||||||
$ | 352,299 | $ | 332,597 | ||||||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Investments [Abstract] | ' | |||||||
Schedule of Investments | ' | |||||||
The Company’s proprietary investments include investments in private companies and partnerships, registered mutual funds, warrants of public and private companies and private company debt. Investments included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Investments at fair value | $ | 69,930 | $ | 39,055 | ||||
Investments at cost | 20,709 | 26,364 | ||||||
Investments accounted for under the equity method | 21,404 | 20,353 | ||||||
Total investments | 112,043 | 85,772 | ||||||
Less investments attributable to noncontrolling interests (1) | (21,137 | ) | (13,236 | ) | ||||
$ | 90,906 | $ | 72,536 | |||||
-1 | Noncontrolling interests are attributable to third party ownership in a consolidated merchant banking fund and private equity investment vehicles. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Information about Significant Unobservable Inputs used in Fair Value Measurement | ' | |||||||||||||||||||||||||||||||
The following table summarizes quantitative information about the significant unobservable inputs used in the fair value measurement of the Company’s Level III financial instruments as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Valuation | Weighted | |||||||||||||||||||||||||||||||
Technique | Unobservable Input | Range | Average | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Tax-exempt securities | Discounted cash flow | Debt service coverage ratio (2) | 5 - 69% | 22.20% | ||||||||||||||||||||||||||||
Short-term securities | Discounted cash flow | Expected recovery rate (% of par) (2) | 77 - 80% | 79.60% | ||||||||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||||
Collateralized by residential mortgages | Discounted cash flow | Credit default rates (3) | 2 - 8% | 4.70% | ||||||||||||||||||||||||||||
Prepayment rates (4) | 2 - 8% | 5.30% | ||||||||||||||||||||||||||||||
Loss severity (3) | 52 - 100% | 69.40% | ||||||||||||||||||||||||||||||
Valuation yields (3) | 4 - 8% | 6.00% | ||||||||||||||||||||||||||||||
Derivative contracts: | ||||||||||||||||||||||||||||||||
Interest rate locks | Discounted cash flow | Premium over the MMD curve (1) | 3 - 49 bps | 20.2 bps | ||||||||||||||||||||||||||||
Investments at fair value: | ||||||||||||||||||||||||||||||||
Warrants in public and private companies | Black-Scholes option pricing model | Liquidity discount rates (1) | 30 - 40% | 33.50% | ||||||||||||||||||||||||||||
Warrants in private companies | Black-Scholes option pricing model | Stock volatility factors of comparable companies (2) | 28 - 97% | 56.00% | ||||||||||||||||||||||||||||
Equity securities in private companies | Market approach | Revenue multiple (2) | 2 - 7 times | 3.2 times | ||||||||||||||||||||||||||||
EBITDA multiple (2) | 12 times | 12.0 times | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Derivative contracts: | ||||||||||||||||||||||||||||||||
Interest rate locks | Discounted cash flow | Premium over the MMD curve (1) | 1 - 15 bps | 9.1 bps | ||||||||||||||||||||||||||||
Sensitivity of the fair value to changes in unobservable inputs: | ||||||||||||||||||||||||||||||||
-1 | Significant increase/(decrease) in the unobservable input in isolation would result in a significantly lower/(higher) fair value measurement. | |||||||||||||||||||||||||||||||
-2 | Significant increase/(decrease) in the unobservable input in isolation would result in a significantly higher/(lower) fair value measurement. | |||||||||||||||||||||||||||||||
-3 | Significant changes in any of these inputs in isolation could result in a significantly different fair value. Generally, a change in the assumption used for credit default rates is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally inverse change in the assumption for valuation yields. | |||||||||||||||||||||||||||||||
-4 | The potential impact of changes in prepayment rates on fair value is dependent on other security-specific factors, such as the par value and structure. Changes in the prepayment rates may result in directionally similar or directionally inverse changes in fair value depending on whether the security trades at a premium or discount to the par value. | |||||||||||||||||||||||||||||||
Valuation of Financial Instruments by Pricing Observability Levels | ' | |||||||||||||||||||||||||||||||
The following table summarizes the valuation of the Company’s financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Counterparty | ||||||||||||||||||||||||||||||||
and Cash | ||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Netting (1) | Total | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Equity securities | $ | 39,711 | $ | 14,386 | $ | — | $ | — | $ | 54,097 | ||||||||||||||||||||||
Convertible securities | — | 80,784 | — | — | 80,784 | |||||||||||||||||||||||||||
Fixed income securities | — | 10,002 | 100 | — | 10,102 | |||||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Taxable securities | — | 232,379 | — | — | 232,379 | |||||||||||||||||||||||||||
Tax-exempt securities | — | 459,432 | 1,433 | — | 460,865 | |||||||||||||||||||||||||||
Short-term securities | — | 61,964 | 656 | — | 62,620 | |||||||||||||||||||||||||||
Asset-backed securities | — | 12 | 119,799 | — | 119,811 | |||||||||||||||||||||||||||
U.S. government agency securities | — | 304,737 | — | — | 304,737 | |||||||||||||||||||||||||||
Derivative contracts | 19 | 351,589 | 691 | (313,666 | ) | 38,633 | ||||||||||||||||||||||||||
Total financial instruments and other inventory positions owned: | 39,730 | 1,515,285 | 122,679 | (313,666 | ) | 1,364,028 | ||||||||||||||||||||||||||
Cash equivalents | 101,629 | — | — | — | 101,629 | |||||||||||||||||||||||||||
Investments at fair value | 20,690 | — | 49,240 | — | 69,930 | |||||||||||||||||||||||||||
Total assets | $ | 162,049 | $ | 1,515,285 | $ | 171,919 | $ | (313,666 | ) | $ | 1,535,587 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Equity securities | $ | 69,205 | $ | — | $ | — | $ | — | $ | 69,205 | ||||||||||||||||||||||
Fixed income securities | — | 24,021 | — | — | 24,021 | |||||||||||||||||||||||||||
U.S. government agency securities | — | 120,084 | — | — | 120,084 | |||||||||||||||||||||||||||
U.S. government securities | 291,320 | — | — | — | 291,320 | |||||||||||||||||||||||||||
Derivative contracts | 1,889 | 324,065 | 6,643 | (324,394 | ) | 8,203 | ||||||||||||||||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased: | $ | 362,414 | $ | 468,170 | $ | 6,643 | $ | (324,394 | ) | $ | 512,833 | |||||||||||||||||||||
-1 | Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. | |||||||||||||||||||||||||||||||
The following table summarizes the valuation of the Company’s financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2012: | ||||||||||||||||||||||||||||||||
Counterparty | ||||||||||||||||||||||||||||||||
and Cash | ||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Netting (1) | Total | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Equity securities | $ | 3,180 | $ | 13,298 | $ | — | $ | — | $ | 16,478 | ||||||||||||||||||||||
Convertible securities | — | 44,978 | — | — | 44,978 | |||||||||||||||||||||||||||
Fixed income securities | — | 33,668 | — | — | 33,668 | |||||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Taxable securities | — | 164,059 | — | — | 164,059 | |||||||||||||||||||||||||||
Tax-exempt securities | — | 416,760 | 1,429 | — | 418,189 | |||||||||||||||||||||||||||
Short-term securities | — | 67,672 | 656 | — | 68,328 | |||||||||||||||||||||||||||
Asset-backed securities | — | 24 | 116,171 | — | 116,195 | |||||||||||||||||||||||||||
U.S. government agency securities | — | 304,259 | — | — | 304,259 | |||||||||||||||||||||||||||
U.S. government securities | 4,966 | — | — | — | 4,966 | |||||||||||||||||||||||||||
Derivative contracts | — | 595,486 | 827 | (555,838 | ) | 40,475 | ||||||||||||||||||||||||||
Total financial instruments and other inventory positions owned: | 8,146 | 1,640,204 | 119,083 | (555,838 | ) | 1,211,595 | ||||||||||||||||||||||||||
Cash equivalents | 51,346 | — | — | — | 51,346 | |||||||||||||||||||||||||||
Investments at fair value | 5,810 | — | 33,245 | — | 39,055 | |||||||||||||||||||||||||||
Total assets | $ | 65,302 | $ | 1,640,204 | $ | 152,328 | $ | (555,838 | ) | $ | 1,301,996 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Equity securities | $ | 25,362 | $ | 1,728 | $ | — | $ | — | $ | 27,090 | ||||||||||||||||||||||
Convertible securities | — | 1,015 | — | — | 1,015 | |||||||||||||||||||||||||||
Fixed income securities | — | 19,314 | — | — | 19,314 | |||||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Short-term securities | — | 60 | — | — | 60 | |||||||||||||||||||||||||||
U.S. government agency securities | — | 73,724 | — | — | 73,724 | |||||||||||||||||||||||||||
U.S. government securities | 231,043 | — | — | — | 231,043 | |||||||||||||||||||||||||||
Derivative contracts | — | 569,764 | 5,218 | (570,027 | ) | 4,955 | ||||||||||||||||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased: | $ | 256,405 | $ | 665,605 | $ | 5,218 | $ | (570,027 | ) | $ | 357,201 | |||||||||||||||||||||
-1 | Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. | |||||||||||||||||||||||||||||||
Changes in Fair Value Associated with Level III Financial Instruments | ' | |||||||||||||||||||||||||||||||
The following tables summarize the changes in fair value associated with Level III financial instruments during the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Balance at | Realized | Unrealized | Balance at | |||||||||||||||||||||||||||||
December 31, | Transfers | Transfers | gains/ | gains/ | December 31, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2012 | Purchases | Sales | in | out | (losses) (1) | (losses) (1) | 2013 | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Fixed income securities | $ | — | $ | 100 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 100 | ||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Tax-exempt securities | 1,429 | 1 | — | — | — | — | 3 | 1,433 | ||||||||||||||||||||||||
Short-term securities | 656 | — | — | — | — | — | — | 656 | ||||||||||||||||||||||||
Asset-backed securities | 116,171 | 227,634 | (238,860 | ) | — | — | 17,105 | (2,251 | ) | 119,799 | ||||||||||||||||||||||
Derivative contracts | 827 | 5 | (2,382 | ) | — | — | 2,377 | (136 | ) | 691 | ||||||||||||||||||||||
Total financial instruments and other inventory positions owned: | 119,083 | 227,740 | (241,242 | ) | — | — | 19,482 | (2,384 | ) | 122,679 | ||||||||||||||||||||||
Investments at fair value | 33,245 | 16,825 | (10,358 | ) | — | (619 | ) | 5,949 | 4,198 | 49,240 | ||||||||||||||||||||||
Total assets | $ | 152,328 | $ | 244,565 | $ | (251,600 | ) | $ | — | $ | (619 | ) | $ | 25,431 | $ | 1,814 | $ | 171,919 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Derivative contracts | $ | 5,218 | $ | (5,702 | ) | $ | 457 | $ | — | $ | — | $ | 5,232 | $ | 1,438 | $ | 6,643 | |||||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased: | $ | 5,218 | $ | (5,702 | ) | $ | 457 | $ | — | $ | — | $ | 5,232 | $ | 1,438 | $ | 6,643 | |||||||||||||||
-1 | Realized and unrealized gains/(losses) related to financial instruments, with the exception of customer matched-book derivatives, are reported in institutional brokerage on the consolidated statements of operations. Realized and unrealized gains/(losses) related to customer matched-book derivatives are reported in investment banking. Realized and unrealized gains/(losses) related to investments are reported in investment banking revenues or investment income on the consolidated statements of operations. | |||||||||||||||||||||||||||||||
Balance at | Realized | Unrealized | Balance at | |||||||||||||||||||||||||||||
December 31, | Transfers | Transfers | gains/ | gains/ | December 31, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2011 | Purchases | Sales | in | out | (losses) (1) | (losses) (1) | 2012 | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions owned: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Fixed income securities | $ | 2,815 | $ | 1,995 | $ | (4,594 | ) | $ | — | $ | — | $ | (118 | ) | $ | (98 | ) | $ | — | |||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
Tax-exempt securities | 3,135 | 1,550 | (2,997 | ) | 266 | — | (1,156 | ) | 631 | 1,429 | ||||||||||||||||||||||
Short-term securities | 175 | 650 | — | — | — | — | (169 | ) | 656 | |||||||||||||||||||||||
Asset-backed securities | 53,088 | 125,844 | (69,623 | ) | 38 | — | 487 | 6,337 | 116,171 | |||||||||||||||||||||||
Derivative contracts | — | — | — | — | — | — | 827 | 827 | ||||||||||||||||||||||||
Total financial instruments and other inventory positions owned: | 59,213 | 130,039 | (77,214 | ) | 304 | — | (787 | ) | 7,528 | 119,083 | ||||||||||||||||||||||
Investments at fair value | 21,341 | 15,003 | (2,394 | ) | — | (266 | ) | 1,595 | (2,034 | ) | 33,245 | |||||||||||||||||||||
Total assets | $ | 80,554 | $ | 145,042 | $ | (79,608 | ) | $ | 304 | $ | (266 | ) | $ | 808 | $ | 5,494 | $ | 152,328 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions sold, but not yet purchased: | ||||||||||||||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||||||||||||
Convertible securities | $ | 1,171 | $ | — | $ | — | $ | — | $ | (1,171 | ) | $ | — | $ | — | $ | — | |||||||||||||||
Fixed income securities | 900 | (897 | ) | — | — | — | (49 | ) | 46 | — | ||||||||||||||||||||||
Derivative contracts | 3,594 | (6,549 | ) | — | — | — | 6,549 | 1,624 | 5,218 | |||||||||||||||||||||||
Total financial instruments and other inventory positions sold, but not yet purchased: | $ | 5,665 | $ | (7,446 | ) | $ | — | $ | — | $ | (1,171 | ) | $ | 6,500 | $ | 1,670 | $ | 5,218 | ||||||||||||||
-1 | Realized and unrealized gains/(losses) related to financial instruments, with the exception of customer matched-book derivatives, are reported in institutional brokerage on the consolidated statements of operations. Realized and unrealized gains/(losses) related to customer matched-book derivatives are reported in investment banking. Realized and unrealized gains/(losses) related to investments are reported in investment banking revenues or investment income on the consolidated statements of operations |
Receivables_from_and_Payables_2
Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Brokers and Dealers [Abstract] | ' | |||||||
Brokers, Dealers and Clearing Organizations | ' | |||||||
Amounts receivable from brokers, dealers and clearing organizations included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Receivable arising from unsettled securities transactions | $ | 59,657 | $ | 66,426 | ||||
Deposits paid for securities borrowed | 36,278 | 32,163 | ||||||
Receivable from clearing organizations | 966 | 17,655 | ||||||
Deposits with clearing organizations | 20,995 | 24,717 | ||||||
Securities failed to deliver | 593 | 5,440 | ||||||
Other | 8,624 | 1,716 | ||||||
$ | 127,113 | $ | 148,117 | |||||
Amounts payable to brokers, dealers and clearing organizations included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Payable arising from unsettled securities transactions | $ | 5,643 | $ | 24,643 | ||||
Payable to clearing organizations | 9,462 | 5,763 | ||||||
Securities failed to receive | 744 | 7,459 | ||||||
Other | 11,873 | 22,290 | ||||||
$ | 27,722 | $ | 60,155 | |||||
Receivables_from_and_Payables_3
Receivables from and Payables to Customers (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Receivables From Payables To Customers [Abstract] | ' | |||||||
Schedule Of Receivable From Customer Table | ' | |||||||
Amounts receivable from customers included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Cash accounts | $ | 5,013 | $ | 7,444 | ||||
Margin accounts | 6,620 | 6,351 | ||||||
Total receivables | $ | 11,633 | $ | 13,795 | ||||
Schedule Of Payables To Customer Table | ' | |||||||
Amounts payable to customers included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Cash accounts | $ | 30,499 | $ | 32,103 | ||||
Margin accounts | 2,610 | 9,904 | ||||||
Total payables | $ | 33,109 | $ | 42,007 | ||||
Collateralized_Securities_Tran1
Collateralized Securities Transactions (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Collateralized Securities Transactions Disclosure [Abstract] | ' | |||||||||
Summary of Repurchase Liabilities, Fair Market Value of Related Collateral Pledged and Interest Rate Charged | ' | |||||||||
The following is a summary of the Company’s securities sold under agreements to repurchase ("Repurchase Liabilities"), the fair market value of collateral pledged and the interest rate charged by the Company’s counterparty, which is based on LIBOR plus an applicable margin, as of December 31, 2013: | ||||||||||
Repurchase | Fair Market | |||||||||
(Dollars in thousands) | Liabilities | Value | Interest Rate | |||||||
Term up to 30 day maturities: | ||||||||||
Asset-backed securities | $ | 3,672 | $ | 5,328 | 1.85% | |||||
Term of 30 to 90 day maturities: | ||||||||||
Asset-backed securities | 725 | 966 | 1.99% | |||||||
$ | 4,397 | $ | 6,294 | |||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other assets included: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Net deferred income tax assets | $ | 36,252 | $ | 33,622 | ||||
Fee receivables | 34,415 | 25,343 | ||||||
Accrued interest receivables | 9,793 | 8,029 | ||||||
Forgivable loans, net | 7,879 | 10,315 | ||||||
Income tax receivables | — | 5,448 | ||||||
Prepaid expenses | 5,237 | 3,840 | ||||||
Other | 8,516 | 2,202 | ||||||
Total other assets | $ | 102,092 | $ | 88,799 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Changes in Carrying Value of Goodwill and Intangible Assets | ' | |||||||||||
The following table presents the changes in the carrying value of goodwill and intangible assets from continuing operations for the years ended December 31: | ||||||||||||
Capital | Asset | |||||||||||
(Dollars in thousands) | Markets | Management | Total | |||||||||
Goodwill | ||||||||||||
Balance at December 31, 2011 | $ | — | $ | 196,844 | $ | 196,844 | ||||||
Goodwill acquired | — | — | — | |||||||||
Impairment charge | — | — | — | |||||||||
Balance at December 31, 2012 | $ | — | $ | 196,844 | $ | 196,844 | ||||||
Goodwill acquired | 13,790 | — | 13,790 | |||||||||
Impairment charge | — | — | — | |||||||||
Balance at December 31, 2013 | $ | 13,790 | $ | 196,844 | $ | 210,634 | ||||||
Intangible assets | ||||||||||||
Balance at December 31, 2011 | $ | — | $ | 48,202 | $ | 48,202 | ||||||
Amortization of intangible assets | — | (6,944 | ) | (6,944 | ) | |||||||
Balance at December 31, 2012 | $ | — | $ | 41,258 | $ | 41,258 | ||||||
Intangible assets acquired | 6,665 | — | 6,665 | |||||||||
Amortization of intangible assets | (1,349 | ) | (6,644 | ) | (7,993 | ) | ||||||
Balance at December 31, 2013 | $ | 5,316 | $ | 34,614 | $ | 39,930 | ||||||
Schedule of Expected Amortization Expense [Table Text Block] | ' | |||||||||||
The following table summarizes the future aggregate amortization expense of the Company's intangible assets with determinable lives for the years ended: | ||||||||||||
(Dollars in thousands) | ||||||||||||
2014 | $ | 9,272 | ||||||||||
2015 | 7,093 | |||||||||||
2016 | 6,219 | |||||||||||
2017 | 5,230 | |||||||||||
Thereafter | 9,256 | |||||||||||
Total | $ | 37,070 | ||||||||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
FixedAssetsAdditionalDetail [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
The following is a summary of fixed assets: | ||||||||
December 31, | December 31, | |||||||
(Dollars in thousands) | 2013 | 2012 | ||||||
Furniture and equipment | $ | 34,980 | $ | 36,454 | ||||
Leasehold improvements | 23,478 | 19,508 | ||||||
Software | 19,967 | 20,159 | ||||||
Total | 78,425 | 76,121 | ||||||
Accumulated depreciation and amortization | (62,311 | ) | (61,032 | ) | ||||
$ | 16,114 | $ | 15,089 | |||||
ShortTerm_Financing_Tables
Short-Term Financing (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Summary of Short-Term Financing and Weighted Average Interest Rate on Borrowings | ' | |||||||||||
The following is a summary of short-term financing and the weighted average interest rate on borrowings: | ||||||||||||
Outstanding Balance | Weighted Average Interest Rate | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||
Commercial paper (secured) | $ | 280,294 | $ | 304,439 | 1.59% | 1.65% | ||||||
Prime broker arrangement | 234,417 | 172,575 | 0.90% | 0.98% | ||||||||
Total short-term financing | $ | 514,711 | $ | 477,014 | ||||||||
Contingencies_Commitments_and_
Contingencies, Commitments and Guarantees (Tables) | 12 Months Ended | |||
Dec. 31, 2012 | ||||
Commitments and Contingencies [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
The Company leases office space throughout the United States and in a limited number of foreign countries where the Company’s international operations reside. Aggregate minimum lease commitments under operating leases as of December 31, 2013 are as follows: | ||||
(Dollars in thousands) | ||||
2014 | $ | 11,997 | ||
2015 | 10,011 | |||
2016 | 10,203 | |||
2017 | 8,477 | |||
2018 | 8,158 | |||
Thereafter | 27,718 | |||
$ | 76,564 | |||
Compensation_Plans_Tables
Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Outstanding Equity Awards | ' | ||||||||||||||||
The following table provides a summary of the Company’s outstanding equity awards (in shares or units) as of December 31, 2013: | |||||||||||||||||
Incentive Plan | |||||||||||||||||
Restricted Stock | |||||||||||||||||
Annual grants | 866,894 | ||||||||||||||||
Sign-on grants | 436,402 | ||||||||||||||||
Retention grants | — | ||||||||||||||||
Performance grants | — | ||||||||||||||||
1,303,296 | |||||||||||||||||
Inducement Plan | |||||||||||||||||
Restricted Stock | 58,310 | ||||||||||||||||
Total restricted stock related to compensation | 1,361,606 | ||||||||||||||||
ARI deal consideration (1) | 220,456 | ||||||||||||||||
Total restricted stock outstanding | 1,582,062 | ||||||||||||||||
Incentive Plan | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
Leadership grants | 290,536 | ||||||||||||||||
Incentive Plan | |||||||||||||||||
Stock options outstanding | 469,289 | ||||||||||||||||
-1 | The Company issued restricted stock as part of deal consideration in conjunction with the acquisition of ARI. | ||||||||||||||||
Schedule of Valuation Assumptions | ' | ||||||||||||||||
The fair value of the awards on the grant date were determined using a Monte Carlo simulation with the following assumptions: | |||||||||||||||||
Risk-free | Expected Stock | ||||||||||||||||
Grant Year | Interest Rate | Price Volatility | |||||||||||||||
2013 | 0.40% | 44.00% | |||||||||||||||
2012 | 0.38% | 47.60% | |||||||||||||||
Changes in Unvested Restricted Stock | ' | ||||||||||||||||
The following table summarizes the changes in the Company’s unvested restricted stock (including the unvested restricted stock issued as part of the deal consideration for ARI) under the Incentive Plan and Inducement Plan for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Unvested | Weighted Average | ||||||||||||||||
Restricted Stock | Grant Date | ||||||||||||||||
(in Shares) | Fair Value | ||||||||||||||||
December 31, 2010 | 4,523,184 | $ | 39.84 | ||||||||||||||
Granted | 663,887 | 40.87 | |||||||||||||||
Vested | (1,791,712 | ) | 37.77 | ||||||||||||||
Canceled | (243,358 | ) | 39.03 | ||||||||||||||
December 31, 2011 | 3,152,001 | $ | 38.79 | ||||||||||||||
Granted | 635,136 | 22.89 | |||||||||||||||
Vested | (1,309,881 | ) | 34.21 | ||||||||||||||
Canceled | (154,818 | ) | 39.37 | ||||||||||||||
December 31, 2012 | 2,322,438 | $ | 37.01 | ||||||||||||||
Granted | 682,760 | 38.35 | |||||||||||||||
Vested | (1,165,989 | ) | 39.83 | ||||||||||||||
Canceled | (257,147 | ) | 38.3 | ||||||||||||||
December 31, 2013 | 1,582,062 | $ | 35.25 | ||||||||||||||
Changes in Unvested Restricted Stock Units | ' | ||||||||||||||||
The following summarizes the changes in the Company’s unvested restricted stock units under the Incentive Plan for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Unvested | Weighted Average | ||||||||||||||||
Restricted | Grant Date | ||||||||||||||||
Stock Units | Fair Value | ||||||||||||||||
December 31, 2011 | — | $ | — | ||||||||||||||
Granted | 214,526 | 12.12 | |||||||||||||||
Vested | — | — | |||||||||||||||
Canceled | (41,255 | ) | 12.12 | ||||||||||||||
December 31, 2012 | 173,271 | $ | 12.12 | ||||||||||||||
Granted | 117,265 | 21.32 | |||||||||||||||
Vested | — | — | |||||||||||||||
Canceled | — | — | |||||||||||||||
December 31, 2013 | 290,536 | $ | 15.83 | ||||||||||||||
Changes in Outstanding Stock Options | ' | ||||||||||||||||
The following table summarizes the changes in the Company’s outstanding stock options for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Weighted Average | |||||||||||||||||
Weighted | Remaining | ||||||||||||||||
Options | Average | Contractual Term | Aggregate | ||||||||||||||
Outstanding | Exercise Price | (in Years) | Intrinsic Value | ||||||||||||||
31-Dec-10 | 515,492 | $ | 44.64 | 4.9 | $ | 166,406 | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | (1,023 | ) | 39.62 | ||||||||||||||
Canceled | (11,846 | ) | 42.19 | ||||||||||||||
31-Dec-11 | 502,623 | $ | 44.71 | 3.9 | $ | — | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Canceled | (16,060 | ) | 43.17 | ||||||||||||||
31-Dec-12 | 486,563 | $ | 44.76 | 2.9 | $ | 94,150 | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Canceled | (17,274 | ) | 42.85 | ||||||||||||||
December 31, 2013 | 469,289 | $ | 44.83 | 2 | $ | 288,318 | |||||||||||
Options exercisable at December 31, 2011 | 502,623 | $ | 44.71 | 3.9 | $ | — | |||||||||||
Options exercisable at December 31, 2012 | 486,563 | $ | 44.76 | 2.9 | $ | 94,150 | |||||||||||
Options exercisable at December 31, 2013 | 469,289 | $ | 44.83 | 2 | $ | 288,318 | |||||||||||
Schedule of Additional Information Option Outstanding | ' | ||||||||||||||||
Additional information regarding Piper Jaffray Companies options outstanding as of December 31, 2013 is as follows: | |||||||||||||||||
Options Outstanding | Exercisable Options | ||||||||||||||||
Weighted Average | |||||||||||||||||
Remaining | Weighted | Weighted | |||||||||||||||
Range of | Contractual | Average | Average | ||||||||||||||
Exercise Prices | Shares | Life (in Years) | Exercise Price | Shares | Exercise Price | ||||||||||||
$28.01 | 22,852 | 1.3 | $ | 28.01 | 22,852 | $ | 28.01 | ||||||||||
$33.40 | 4,001 | 1.6 | $ | 33.4 | 4,001 | $ | 33.4 | ||||||||||
$39.62 | 131,637 | 1.1 | $ | 39.62 | 131,637 | $ | 39.62 | ||||||||||
$41.09 | 128,887 | 4.1 | $ | 41.09 | 128,887 | $ | 41.09 | ||||||||||
$47.30 - $51.05 | 134,499 | 0.5 | $ | 47.74 | 134,499 | $ | 47.74 | ||||||||||
$70.13 - $70.65 | 47,413 | 2.9 | $ | 70.26 | 47,413 | $ | 70.26 | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Earnings per Share | ' | ||||||||||||
The computation of earnings per share is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(Amounts in thousands, except per share data) | 2013 | 2012 | 2011 | ||||||||||
Net income/(loss) from continuing operations applicable to Piper Jaffray Companies | $ | 49,829 | $ | 47,075 | $ | (90,772 | ) | ||||||
Net loss from discontinued operations | (4,739 | ) | (5,807 | ) | (11,248 | ) | |||||||
Net income/(loss) applicable to Piper Jaffray Companies | 45,090 | 41,268 | (102,020 | ) | |||||||||
Earnings allocated to participating securities (1) | (4,494 | ) | (5,933 | ) | — | ||||||||
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders (2) | $ | 40,596 | $ | 35,335 | $ | (102,020 | ) | ||||||
Shares for basic and diluted calculations: | |||||||||||||
Average shares used in basic computation | 15,046 | 15,615 | 15,672 | ||||||||||
Stock options | 15 | 1 | 13 | ||||||||||
Restricted stock | — | — | 2,892 | ||||||||||
Average shares used in diluted computation | 15,061 | 15,616 | 18,577 | -3 | |||||||||
Earnings/(loss) per basic common share: | |||||||||||||
Income/(loss) from continuing operations | $ | 2.98 | $ | 2.58 | $ | (5.79 | ) | ||||||
Loss from discontinued operations | (0.28 | ) | (0.32 | ) | (0.72 | ) | |||||||
Earnings/(loss) per basic common share | $ | 2.7 | $ | 2.26 | $ | (6.51 | ) | ||||||
Earnings/(loss) per diluted common share: | |||||||||||||
Income/(loss) from continuing operations | $ | 2.98 | $ | 2.58 | $ | (5.79 | ) | ||||||
Loss from discontinued operations | (0.28 | ) | (0.32 | ) | (0.72 | ) | |||||||
Earnings/(loss) per diluted common share | $ | 2.7 | $ | 2.26 | $ | (6.51 | ) | -3 | |||||
-1 | Represents the allocation of earnings to participating securities. Losses are not allocated to participating securities. Participating securities include all of the Company’s unvested restricted shares. The weighted average participating shares outstanding were 1,667,067; 2,622,438 and 3,528,624 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
-2 | Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders for diluted and basic EPS may differ under the two-class method as a result of adding the effect of the assumed exercise of stock options to dilutive shares outstanding, which alters the ratio used to allocate earnings to Piper Jaffray Companies’ common shareholders and participating securities for purposes of calculating diluted and basic EPS. | ||||||||||||
-3 | Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Reportable Segment Financial Results | ' | |||||||||||
Reportable segment financial results from continuing operations are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Capital Markets | ||||||||||||
Investment banking | ||||||||||||
Financing | ||||||||||||
Equities | $ | 100,224 | $ | 73,180 | $ | 74,161 | ||||||
Debt | 74,284 | 74,102 | 54,565 | |||||||||
Advisory services | 74,420 | 86,165 | 74,373 | |||||||||
Total investment banking | 248,928 | 233,447 | 203,099 | |||||||||
Institutional sales and trading | ||||||||||||
Equities | 91,169 | 75,723 | 86,175 | |||||||||
Fixed income | 76,275 | 111,492 | 75,589 | |||||||||
Total institutional sales and trading | 167,444 | 187,215 | 161,764 | |||||||||
Management and performance fees | 3,891 | 1,678 | 243 | |||||||||
Investment income | 30,404 | 9,840 | 11,052 | |||||||||
Long-term financing expenses | (7,420 | ) | (7,982 | ) | (7,067 | ) | ||||||
Net revenues | 443,247 | 424,198 | 369,091 | |||||||||
Non-interest expenses | ||||||||||||
Goodwill impairment | — | — | 120,298 | |||||||||
Operating expenses (1) | 393,231 | 371,628 | 344,036 | |||||||||
Total non-interest expenses | 393,231 | 371,628 | 464,334 | |||||||||
Segment pre-tax operating income/(loss) | $ | 50,016 | $ | 52,570 | $ | (95,243 | ) | |||||
Segment pre-tax operating margin | 11.3 | % | 12.4 | % | N/M | |||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Capital Markets | ||||||||||||
Investment banking | ||||||||||||
Asset Management | ||||||||||||
Management and performance fees | ||||||||||||
Management fees | $ | 71,314 | $ | 63,236 | $ | 60,819 | ||||||
Performance fees | 7,840 | 785 | 2,245 | |||||||||
Total management and performance fees | 79,154 | 64,021 | 63,064 | |||||||||
Investment income/(loss) | 2,794 | 733 | (72 | ) | ||||||||
Net revenues | 81,948 | 64,754 | 62,992 | |||||||||
Operating expenses (1) | 56,351 | 48,313 | 47,938 | |||||||||
Segment pre-tax operating income | $ | 25,597 | $ | 16,441 | $ | 15,054 | ||||||
Segment pre-tax operating margin | 31.2 | % | 25.4 | % | 23.9 | % | ||||||
Total | ||||||||||||
Net revenues | $ | 525,195 | $ | 488,952 | $ | 432,083 | ||||||
Non-interest expenses | ||||||||||||
Goodwill impairment | — | — | 120,298 | |||||||||
Operating expenses (1) | 449,582 | 419,941 | 391,974 | |||||||||
Total non-interest expenses | 449,582 | 419,941 | 512,272 | |||||||||
Pre-tax operating income/(loss) | $ | 75,613 | $ | 69,011 | $ | (80,189 | ) | |||||
Pre-tax operating margin | 14.4 | % | 14.1 | % | N/M | |||||||
N/M – Not meaningful | ||||||||||||
-1 | Operating expenses include intangible asset amortization expense as set forth in the table below: | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Capital Markets | $ | 1,349 | $ | — | $ | — | ||||||
Asset Management | 6,644 | 6,944 | 7,256 | |||||||||
Total intangible asset amortization expense | $ | 7,993 | $ | 6,944 | $ | 7,256 | ||||||
Schedule of Intangible Asset Amortization Expense | ' | |||||||||||
Operating expenses include intangible asset amortization expense as set forth in the table below: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Capital Markets | $ | 1,349 | $ | — | $ | — | ||||||
Asset Management | 6,644 | 6,944 | 7,256 | |||||||||
Total intangible asset amortization expense | $ | 7,993 | $ | 6,944 | $ | 7,256 | ||||||
Net Revenues by Geographic Locations | ' | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Net revenues: | ||||||||||||
United States | $ | 513,433 | $ | 476,718 | $ | 415,647 | ||||||
Europe | 11,762 | 12,234 | 16,436 | |||||||||
Consolidated | $ | 525,195 | $ | 488,952 | $ | 432,083 | ||||||
Long-Lived Assets by Geographic Region | ' | |||||||||||
The following table presents long-lived assets held for use by geographic region: | ||||||||||||
December 31, | December 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||
Long-lived assets: | ||||||||||||
United States | $ | 296,516 | $ | 285,682 | ||||||||
Europe | 6,414 | 1,131 | ||||||||||
Consolidated | $ | 302,930 | $ | 286,813 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Income Tax Expense | ' | |||||||||||
The components of income tax expense from continuing operations are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Current: | ||||||||||||
Federal | $ | 20,468 | $ | 16,939 | $ | (6,108 | ) | |||||
State | 3,795 | (9,563 | ) | 27 | ||||||||
Foreign | 183 | — | — | |||||||||
24,446 | 7,376 | (6,081 | ) | |||||||||
Deferred: | ||||||||||||
Federal | (1,582 | ) | 7,735 | 13,803 | ||||||||
State | (4,041 | ) | 4,413 | 2,491 | ||||||||
Foreign | 1,567 | (54 | ) | (1,093 | ) | |||||||
(4,056 | ) | 12,094 | 15,201 | |||||||||
Total income tax expense from continuing operations | $ | 20,390 | $ | 19,470 | $ | 9,120 | ||||||
Total income tax expense/(benefit) from discontinued operations | $ | (2,935 | ) | $ | (23,795 | ) | $ | 1,756 | ||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
A reconciliation of federal income taxes at statutory rates to the Company’s effective tax rates from continuing operations is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | |||||||||
Federal income tax expense/(benefit) at statutory rates | $ | 26,464 | $ | 24,153 | $ | (28,066 | ) | |||||
Increase/(reduction) in taxes resulting from: | ||||||||||||
Goodwill impairment | — | — | 40,440 | |||||||||
State income taxes, net of federal tax benefit | 2,785 | 2,540 | 1,327 | |||||||||
Net tax-exempt interest income | (3,917 | ) | (3,353 | ) | (3,308 | ) | ||||||
Foreign jurisdictions tax rate differential | (185 | ) | (164 | ) | 413 | |||||||
Change in valuation allowance | (4,182 | ) | (1,110 | ) | (2,185 | ) | ||||||
Restricted stock deferred tax asset write-off | — | 4,577 | 557 | |||||||||
Income attributable to noncontrolling interests | (1,888 | ) | (863 | ) | (512 | ) | ||||||
Other, net | 1,313 | (6,310 | ) | 454 | ||||||||
Total income tax expense from continuing operations | $ | 20,390 | $ | 19,470 | $ | 9,120 | ||||||
Schedule of Net Deferred Tax Assets and Liabilities | ' | |||||||||||
Deferred income tax assets and liabilities reflect the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for the same items for income tax reporting purposes. The net deferred income tax assets included in other assets on the consolidated statements of financial condition consisted of the following items: | ||||||||||||
December 31, | December 31, | |||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Deferred compensation | $ | 43,608 | $ | 38,090 | ||||||||
Net operating loss carry forwards | 5,569 | 7,645 | ||||||||||
Liabilities/accruals not currently deductible | 1,903 | 2,035 | ||||||||||
Other | 1,459 | 2,667 | ||||||||||
Total deferred tax assets | 52,539 | 50,437 | ||||||||||
Valuation allowance | (159 | ) | (5,139 | ) | ||||||||
Deferred tax assets after valuation allowance | 52,380 | 45,298 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Goodwill amortization | 9,957 | 6,010 | ||||||||||
Unrealized gains on firm investments | 3,577 | 2,134 | ||||||||||
Fixed assets | 1,017 | 2,706 | ||||||||||
Other | 1,577 | 826 | ||||||||||
Total deferred tax liabilities | 16,128 | 11,676 | ||||||||||
Net deferred tax assets | $ | 36,252 | $ | 33,622 | ||||||||
Changes in Amount of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Balance at December 31, 2010 | $ | 9,510 | ||||||||||
Additions based on tax positions related to the current year | — | |||||||||||
Additions for tax positions of prior years | — | |||||||||||
Reductions for tax positions of prior years | (595 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2011 | $ | 8,915 | ||||||||||
Additions based on tax positions related to the current year | — | |||||||||||
Additions for tax positions of prior years | 200 | |||||||||||
Reductions for tax positions of prior years | (8,825 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2012 | $ | 290 | ||||||||||
Additions based on tax positions related to the current year | — | |||||||||||
Additions for tax positions of prior years | 2,000 | |||||||||||
Reductions for tax positions of prior years | (90 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2013 | $ | 2,200 | ||||||||||
Pipar_Jaffray_Companies_Parent
Pipar Jaffray Companies (Parent Company only) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Condensed statement of Financial condition [Abstract] | ' | |||||||||||
Condensed Financial Information Of Parent Company Only Statements Of Financial Condition [Text Block] | ' | |||||||||||
Condensed Statements of Financial Condition | ||||||||||||
December 31, | December 31, | |||||||||||
(Amounts in thousands) | 2013 | 2012 | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 336 | $ | 1,069 | ||||||||
Investment in and advances to subsidiaries | 870,104 | 857,973 | ||||||||||
Other assets | 9,119 | 20,850 | ||||||||||
Total assets | $ | 879,559 | $ | 879,892 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Variable rate senior notes | $ | 125,000 | $ | 125,000 | ||||||||
Accrued compensation | 18,454 | 20,838 | ||||||||||
Other liabilities and accrued expenses | 1,429 | 762 | ||||||||||
Total liabilities | 144,883 | 146,600 | ||||||||||
Shareholders’ equity | 734,676 | 733,292 | ||||||||||
Total liabilities and shareholders’ equity | $ | 879,559 | $ | 879,892 | ||||||||
Condensed Financial Information Of Parent Company Only Statement Of Income [Text Block] | ' | |||||||||||
Condensed Statements of Operations | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in thousands) | 2013 | 2012 | 2011 | |||||||||
Revenues: | ||||||||||||
Dividends from subsidiaries | $ | 46,000 | $ | 119,000 | $ | 80,483 | ||||||
Interest | 254 | 82 | 31 | |||||||||
Other revenues | 198 | — | — | |||||||||
Total revenues | 46,452 | 119,082 | 80,514 | |||||||||
Interest expense | 5,850 | 5,823 | 5,392 | |||||||||
Net revenues | 40,602 | 113,259 | 75,122 | |||||||||
Non-interest expenses: | ||||||||||||
Total non-interest expenses | 3,096 | 4,222 | 13,044 | |||||||||
Income from continuing operations before income tax expense/(benefit) and equity in undistributed/(distributed in excess of) income of subsidiaries | 37,506 | 109,037 | 62,078 | |||||||||
Income tax expense/(benefit) | 13,263 | 39,175 | (3,128 | ) | ||||||||
Income from continuing operations of parent company | 24,243 | 69,862 | 65,206 | |||||||||
Equity in undistributed/(distributed in excess of) income of subsidiaries | 25,200 | (49,617 | ) | (167,226 | ) | |||||||
Net income/(loss) from continuing operations | 49,443 | 20,245 | (102,020 | ) | ||||||||
Discontinued operations: | ||||||||||||
Income/(loss) from discontinued operations, net of tax | (4,353 | ) | 21,023 | — | ||||||||
Net income/(loss) | $ | 45,090 | $ | 41,268 | $ | (102,020 | ) | |||||
Condensed Financial Information Of Parent Company Only Statements Of Cash Flows [Text Block] | ' | |||||||||||
Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, | ||||||||||||
(Amounts in thousands) | 2013 | 2012 | 2011 | |||||||||
Operating Activities: | ||||||||||||
Net income/(loss) | $ | 45,090 | $ | 41,268 | $ | (102,020 | ) | |||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||||||||||||
Share-based and deferred compensation | 60 | 240 | 437 | |||||||||
Goodwill impairment | — | — | 9,247 | |||||||||
Equity distributed in excess of/(in undistributed) income of subsidiaries | (25,200 | ) | 49,617 | 167,226 | ||||||||
Net cash provided by operating activities | 19,950 | 91,125 | 74,890 | |||||||||
Financing Activities: | ||||||||||||
Issuance of variable rate senior notes | — | 125,000 | — | |||||||||
Decrease in bank syndicated financing | — | (115,000 | ) | (10,000 | ) | |||||||
Advances from/(to) subsidiaries | 35,246 | (76,481 | ) | (51,916 | ) | |||||||
Repurchase of common stock | (55,929 | ) | (38,068 | ) | (5,994 | ) | ||||||
Net cash used in financing activities | (20,683 | ) | (104,549 | ) | (67,910 | ) | ||||||
Net increase/(decrease) in cash and cash equivalents | (733 | ) | (13,424 | ) | 6,980 | |||||||
Cash and cash equivalents at beginning of year | 1,069 | 14,493 | 7,513 | |||||||||
Cash and cash equivalents at end of year | $ | 336 | $ | 1,069 | $ | 14,493 | ||||||
Supplemental disclosures of cash flow information | ||||||||||||
Cash received/(paid) during the year for: | ||||||||||||
Interest | $ | (5,596 | ) | $ | (5,741 | ) | $ | (5,361 | ) | |||
Income taxes | $ | (13,263 | ) | $ | (39,175 | ) | $ | 3,128 | ||||
Quarterly_Information_unaudite1
Quarterly Information (unaudited) (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||
Quarterly Information | ' | |||||||||||||||||
Quarterly Information (unaudited) | ||||||||||||||||||
2013 Fiscal Quarter | ||||||||||||||||||
(Amounts in thousands, except per share data) | First | Second | Third | Fourth | ||||||||||||||
Total revenues | $ | 115,312 | $ | 106,520 | $ | 134,506 | $ | 193,893 | ||||||||||
Interest expense | 5,779 | 6,748 | 6,192 | 6,317 | ||||||||||||||
Net revenues | 109,533 | 99,772 | 128,314 | 187,576 | ||||||||||||||
Non-interest expenses | 91,365 | 96,439 | 116,254 | 145,524 | ||||||||||||||
Income from continuing operations before income tax expense | 18,168 | 3,333 | 12,060 | 42,052 | ||||||||||||||
Income tax expense | 5,600 | 1,644 | 2,886 | 10,260 | ||||||||||||||
Net income from continuing operations | 12,568 | 1,689 | 9,174 | 31,792 | ||||||||||||||
Loss from discontinued operations, net of tax | (521 | ) | (1,871 | ) | (1,529 | ) | (818 | ) | ||||||||||
Net income/(loss) | 12,047 | (182 | ) | 7,645 | 30,974 | |||||||||||||
Net income/(loss) applicable to noncontrolling interests | 1,901 | (2,670 | ) | 2,323 | 3,840 | |||||||||||||
Net income applicable to Piper Jaffray Companies | $ | 10,146 | $ | 2,488 | $ | 5,322 | 27,134 | |||||||||||
Net income applicable to Piper Jaffray Companies' common shareholders | $ | 8,966 | $ | 2,266 | $ | 4,826 | $ | 24,445 | ||||||||||
Amounts applicable to Piper Jaffray Companies | ||||||||||||||||||
Net income from continuing operations | $ | 10,667 | $ | 4,359 | $ | 6,851 | $ | 27,952 | ||||||||||
Net loss from discontinued operations | (521 | ) | (1,871 | ) | (1,529 | ) | (818 | ) | ||||||||||
Net income applicable to Piper Jaffray Companies | $ | 10,146 | $ | 2,488 | $ | 5,322 | $ | 27,134 | ||||||||||
Earnings per basic common share | ||||||||||||||||||
Income from continuing operations | $ | 0.6 | $ | 0.25 | $ | 0.42 | $ | 1.75 | ||||||||||
Loss from discontinued operations | (0.03 | ) | (0.11 | ) | (0.09 | ) | (0.05 | ) | ||||||||||
Earnings per basic common share | $ | 0.58 | $ | 0.15 | $ | 0.33 | $ | 1.7 | ||||||||||
Earnings per diluted common share | ||||||||||||||||||
Income from continuing operations | $ | 0.6 | $ | 0.25 | $ | 0.42 | $ | 1.75 | ||||||||||
Loss from discontinued operations | (0.03 | ) | (0.11 | ) | (0.09 | ) | (0.05 | ) | ||||||||||
Earnings per diluted common share | $ | 0.57 | $ | 0.15 | $ | 0.33 | $ | 1.7 | ||||||||||
Weighted average number of common shares | ||||||||||||||||||
Basic | 15,582 | 15,621 | 14,641 | 14,378 | ||||||||||||||
Diluted | 15,610 | 15,626 | 14,626 | 14,397 | ||||||||||||||
2012 Fiscal Quarter | ||||||||||||||||||
(Amounts in thousands, except per share data) | First | Second | Third | Fourth | ||||||||||||||
Total revenues | $ | 117,566 | $ | 107,417 | $ | 135,900 | $ | 147,164 | ||||||||||
Interest expense | 4,128 | 4,319 | 4,395 | 6,253 | ||||||||||||||
Net revenues | 113,438 | 103,098 | 131,505 | 140,911 | ||||||||||||||
Non-interest expenses | 98,216 | 97,443 | 106,153 | 118,129 | ||||||||||||||
Income from continuing operations before income tax expense/(benefit) | 15,222 | 5,655 | 25,352 | 22,782 | ||||||||||||||
Income tax expense/(benefit) | 7,553 | (5,699 | ) | 10,194 | 7,422 | |||||||||||||
Net income from continuing operations | 7,669 | 11,354 | 15,158 | 15,360 | ||||||||||||||
Income/(loss) from discontinued operations, net of tax | (3,303 | ) | (3,934 | ) | 5,171 | (3,741 | ) | |||||||||||
Net income | 4,366 | 7,420 | 20,329 | 11,619 | ||||||||||||||
Net income/(loss) applicable to noncontrolling interests | 1,437 | 569 | 665 | (205 | ) | |||||||||||||
Net income applicable to Piper Jaffray Companies | $ | 2,929 | $ | 6,851 | $ | 19,664 | $ | 11,824 | ||||||||||
Net income applicable to Piper Jaffray Companies' common shareholders | $ | 2,480 | $ | 5,890 | $ | 16,840 | $ | 10,198 | ||||||||||
Amounts applicable to Piper Jaffray Companies | ||||||||||||||||||
Net income from continuing operations | $ | 6,232 | $ | 10,785 | $ | 14,493 | $ | 15,565 | ||||||||||
Net income/(loss) from discontinued operations | (3,303 | ) | (3,934 | ) | 5,171 | (3,741 | ) | |||||||||||
Net income applicable to Piper Jaffray Companies | $ | 2,929 | $ | 6,851 | $ | 19,664 | $ | 11,824 | ||||||||||
Earnings per basic common share | ||||||||||||||||||
Income from continuing operations | $ | 0.33 | $ | 0.58 | $ | 0.82 | $ | 0.88 | ||||||||||
Income/(loss) from discontinued operations | (0.17 | ) | (0.21 | ) | 0.29 | (0.21 | ) | |||||||||||
Earnings per basic common share | $ | 0.15 | $ | 0.37 | $ | 1.11 | $ | 0.67 | ||||||||||
Earnings per diluted common share | ||||||||||||||||||
Income from continuing operations | $ | 0.33 | $ | 0.58 | $ | 0.82 | $ | 0.88 | ||||||||||
Income/(loss) from discontinued operations | (0.17 | ) | (0.21 | ) | 0.29 | (0.21 | ) | |||||||||||
Earnings per diluted common share | $ | 0.15 | $ | 0.37 | $ | 1.11 | $ | 0.67 | ||||||||||
Weighted average number of common shares | ||||||||||||||||||
Basic | 16,072 | 15,932 | 15,210 | 15,253 | ||||||||||||||
Diluted | 16,072 | 15,932 | 15,210 | 15,256 | ||||||||||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 |
segment | Interest Revenue [Member] | Interest Revenue [Member] | Interest Expense [Member] | Interest Expense [Member] | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' | ' | ' | ' | ' |
Number of reportable segments | 2 | ' | ' | ' | ' | ' |
Reclassified amount | ' | ' | $11 | $12 | $10.20 | $10.90 |
Amount of restricted stock forfeitures | ' | $3.30 | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Disclosures (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' |
Lease term | '12 years |
Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '3 years |
Capitalized internal use software estimated useful life | '3 years |
Finite-lived intangible asset, useful life | '2 years |
Employee loans term | '2 years |
Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '10 years |
Capitalized internal use software estimated useful life | '7 years |
Finite-lived intangible asset, useful life | '10 years |
Employee loans term | '5 years |
Acquisitions_Additional_Inform
Acquisitions - Additional Information(Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Jul. 16, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill acquired | ' | $13,790,000 | $0 |
Intangible assets | ' | 6,665,000 | ' |
Capital Markets | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill acquired | 13,800,000 | 13,790,000 | 0 |
Intangible assets | ' | 6,665,000 | ' |
Capital Markets | Customer Relationships | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Intangible assets | ' | 6,000,000 | ' |
Capital Markets | Noncompete Agreements | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Intangible assets | ' | 700,000 | ' |
Seattle-Northwest Securities Corporation and Edgeview Partners, L.P. | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Consideration transferred | 32,700,000 | ' | ' |
Acquisition related compensation arrangements | 14,300,000 | ' | ' |
Goodwill amount expected to be deducted for income tax purposes | 9,100,000 | ' | ' |
Intangible assets | ' | 6,665,000 | ' |
Acquisition related costs | ' | $1,100,000 | ' |
Seattle-Northwest Securities Corporation and Edgeview Partners, L.P. | Minimum | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquisition related compensation arrangement award vesting period | '2 years | ' | ' |
Seattle-Northwest Securities Corporation and Edgeview Partners, L.P. | Maximum | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquisition related compensation arrangement award vesting period | '5 years | ' | ' |
Seattle-Northwest Securities Corporation and Edgeview Partners, L.P. | Weighted Average | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquisition related compensation arrangement award vesting period | '4 years 3 months | ' | ' |
Acquisitions_Estimated_Fair_Va
Acquisitions - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | ' |
Goodwill | $210,634 | $196,844 | $196,844 |
Intangible assets | 6,665 | ' | ' |
Seattle-Northwest Securities Corporation and Edgeview Partners, L.P. | ' | ' | ' |
Assets | ' | ' | ' |
Cash and cash equivalents | 8,014 | ' | ' |
Financial instruments and other inventory positions owned | 24,074 | ' | ' |
Fixed assets | 1,247 | ' | ' |
Goodwill | 13,790 | ' | ' |
Intangible assets | 6,665 | ' | ' |
Other assets | 8,922 | ' | ' |
Total assets acquired | 62,712 | ' | ' |
Liabilities | ' | ' | ' |
Payables | 1,126 | ' | ' |
Financial instruments and other inventory positions sold, but not yet purchased | 22,588 | ' | ' |
Accrued compensation | 1,469 | ' | ' |
Other liabilities and accrued expenses | 4,789 | ' | ' |
Total liabilities assumed | 29,972 | ' | ' |
Net assets acquired | $32,740 | ' | ' |
Acquisitions_Unaudited_Pro_For
Acquisitions - Unaudited Pro Forma Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Combinations [Abstract] | ' | ' | ' |
Net revenues | $541,304 | $535,694 | $458,831 |
Net income from continuing operations applicable to Piper Jaffray Companies | $48,568 | $50,413 | ($90,810) |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $120,298 |
Loss on sale, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,876 | 0 | 0 |
Loss from discontinued operations, net of tax | ' | -818 | -1,529 | -1,871 | -521 | -3,741 | 5,171 | -3,934 | -3,303 | -4,739 | -5,807 | -11,248 |
Hong Kong Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 6,635 | 15,996 |
Restructure expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 11,535 | 0 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,197 | 16,550 | 24,983 |
Total non-interest expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,197 | 28,085 | 24,983 |
Loss from discontinued operations before income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,197 | -21,450 | -8,987 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | -415 | -21,069 | 1,927 |
Loss from discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | -782 | -381 | -10,914 |
FAMCO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,650 | 5,718 | 6,584 |
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,057 | 8,362 | 7,089 |
Total non-interest expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,057 | 13,870 | 7,089 |
Loss from discontinued operations before income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,407 | -8,152 | -505 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,326 | -2,726 | -171 |
Loss from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,081 | -5,426 | -334 |
Loss on sale, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,876 | 0 | 0 |
Loss from discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($3,957) | ($5,426) | ($334) |
Discontinued_Operations_Detail1
Discontinued Operations (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Loss on sale of FAMCO | ' | ($1,876,000) | $0 | $0 |
FAMCO | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Loss on sale of FAMCO | ' | -1,876,000 | 0 | 0 |
Sale of FAMCO, sale price | 4,000,000 | ' | ' | ' |
Sale of FAMCO, cash proceeds | 300,000 | ' | ' | ' |
Sale of FAMCO, note receivable received | 3,700,000 | ' | ' | ' |
FAMCO | Other Liabilities and Accrued Expenses | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Sale of FAMCO, indemnification accrual | ' | $500,000 | ' | ' |
Financial_Instruments_and_Othe2
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | $1,364,028 | $1,211,595 |
Financial instruments and other inventory positions owned, attributable to noncontrolling interest | -291,513 | -103,480 |
Financial instruments and other inventory positions owned, attributable to parent | 1,072,515 | 1,108,115 |
Financial instruments and other inventory positions sold, but not yet purchased | 512,833 | 357,201 |
Financial instruments and other inventory positions owned and pledged as collateral, attributable to noncontrolling interest | -68,356 | -27,308 |
Financial instruments and other inventory positions owned and pledged as collateral, attributable to parent | 444,477 | 329,893 |
Financial instruments and other inventory positions owned and pledged as collateral | 957,515 | 826,806 |
Equity securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 54,097 | 16,478 |
Financial instruments and other inventory positions sold, but not yet purchased | 69,205 | 27,090 |
Convertible securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 80,784 | 44,978 |
Financial instruments and other inventory positions sold, but not yet purchased | 0 | 1,015 |
Fixed income securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 10,102 | 33,668 |
Financial instruments and other inventory positions sold, but not yet purchased | 24,021 | 19,314 |
Taxable securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 232,379 | 164,059 |
Financial instruments and other inventory positions owned, attributable to noncontrolling interest | -101,800 | -43,800 |
Tax-exempt securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 460,865 | 418,189 |
Financial instruments and other inventory positions owned, attributable to noncontrolling interest | -183,900 | -58,000 |
Short-term securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 62,620 | 68,328 |
Financial instruments and other inventory positions sold, but not yet purchased | 0 | 60 |
Asset-backed securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 119,811 | 116,195 |
U.S. government agency securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 304,737 | 304,259 |
Financial instruments and other inventory positions sold, but not yet purchased | 120,084 | 73,724 |
U.S. government securities | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 0 | 4,966 |
Financial instruments and other inventory positions sold, but not yet purchased | 291,320 | 231,043 |
Financial instruments and other inventory positions owned and pledged as collateral, attributable to noncontrolling interest | -67,400 | -27,300 |
Derivative contracts | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Total financial instruments and other inventory positions owned | 38,633 | 40,475 |
Financial instruments and other inventory positions owned, attributable to noncontrolling interest | -5,800 | -1,700 |
Financial instruments and other inventory positions sold, but not yet purchased | 8,203 | 4,955 |
Financial instruments and other inventory positions owned and pledged as collateral, attributable to noncontrolling interest | ($1,000) | ' |
Investments_Investments_Detail
Investments Investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Investments [Abstract] | ' | ' | ||
Investments at fair value | $69,930 | $39,055 | ||
Investments at cost | 20,709 | 26,364 | ||
Investments accounted for under the equity method | 21,404 | 20,353 | ||
Total investments | 112,043 | 85,772 | ||
Less investments attributable to noncontrolling interests | -21,137 | [1] | -13,236 | [1] |
Investments less portion attributable to noncontolling interest | $90,906 | $72,536 | ||
[1] | Noncontrolling interests are attributable to third party ownership in a consolidated merchant banking fund and private equity investment vehicles. |
Financial_Instruments_and_Othe3
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Total Absolute Notional Contract Amount (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Absolute Notional Contract Amount of Derivative Instruments | $5,825,852 | $6,043,996 |
Customer matched-book | Interest rate derivative contract | ' | ' |
Derivative [Line Items] | ' | ' |
Absolute Notional Contract Amount of Derivative Instruments | 5,310,929 | 5,569,096 |
Trading securities | Interest rate derivative contract | ' | ' |
Derivative [Line Items] | ' | ' |
Absolute Notional Contract Amount of Derivative Instruments | 198,500 | 244,250 |
Trading securities | Credit default swap index contract | ' | ' |
Derivative [Line Items] | ' | ' |
Absolute Notional Contract Amount of Derivative Instruments | 299,333 | 230,650 |
Trading securities | Equity Option Derivative Contract [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Absolute Notional Contract Amount of Derivative Instruments | $17,090 | $0 |
Investments_Additional_Informa
Investments - Additional Information (Details) (USD $) | Dec. 31, 2013 |
Estimated fair market value of investments carried at cost | $29,900,000 |
Investments [Member] | ' |
Valuation Allowances and Reserves, Balance | $0 |
Financial_Instruments_and_Othe4
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Unrealized Gains/(Losses) on Derivative Instruments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative [Line Items] | ' | ' | ' |
Unrealized Gain (Loss) on Derivatives Instruments | ($6,208) | ($4,984) | ($11,380) |
Interest rate derivative contract | Investment banking | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Unrealized Gain (Loss) on Derivatives Instruments | -1,529 | -2,583 | -4,959 |
Interest rate derivative contract | Institutional brokerage | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Unrealized Gain (Loss) on Derivatives Instruments | -2,511 | -798 | -7,371 |
Credit default swap index contract | Institutional brokerage | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Unrealized Gain (Loss) on Derivatives Instruments | -1,522 | -1,603 | 1,009 |
Equity Option Derivative Contract [Member] | Institutional brokerage | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Unrealized Gain (Loss) on Derivatives Instruments | -646 | 0 | 0 |
Foreign Exchange Forward [Member] | Other Expense [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Unrealized Gain (Loss) on Derivatives Instruments | $0 | $0 | ($59) |
Financial_Instruments_and_Othe5
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Gross Fair Market Value of Derivative Instruments (Details) (USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | |
Fair value of derivative assets, gross | $352,299 | [1] |
Fair value of derivative liabilities, gross | 332,597 | [1] |
Financial instruments and other inventory positions owned | Interest rate derivative contract | ' | |
Derivative [Line Items] | ' | |
Fair value of derivative assets, gross | 342,210 | [1] |
Financial instruments and other inventory positions owned | Credit default swap index contract | ' | |
Derivative [Line Items] | ' | |
Fair value of derivative assets, gross | 10,070 | [1] |
Financial instruments and other inventory positions owned | Equity Option Derivative Contract [Member] | ' | |
Derivative [Line Items] | ' | |
Fair value of derivative assets, gross | 19 | [1] |
Financial instruments and other inventory positions sold, but not yet purchased | Interest rate derivative contract | ' | |
Derivative [Line Items] | ' | |
Fair value of derivative liabilities, gross | 323,032 | [1] |
Financial instruments and other inventory positions sold, but not yet purchased | Credit default swap index contract | ' | |
Derivative [Line Items] | ' | |
Fair value of derivative liabilities, gross | 7,676 | [1] |
Financial instruments and other inventory positions sold, but not yet purchased | Equity Option Derivative Contract [Member] | ' | |
Derivative [Line Items] | ' | |
Fair value of derivative liabilities, gross | $1,889 | [1] |
[1] | (Dollars in thousands) Asset Value at Liability Value at December 31, December 31,Derivative Category Financial Condition Location 2013 Financial Condition Location 2013Interest rate derivative contract Financial instruments and other inventory positions owned $342,210 Financial instruments and other inventory positions sold, but not yet purchased $323,032Credit default swap index contract Financial instruments and other inventory positions owned 10,070 Financial instruments and other inventory positions sold, but not yet purchased 7,676Equity option derivative contract Financial instruments and other inventory positions owned 19 Financial instruments and other inventory positions sold, but not yet purchased 1,889 $352,299 $332,597 |
Financial_Instruments_and_Othe6
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Additional Information (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' |
Uncollateralized credit exposure | $22 |
Notional contract amount of derivatives with counterparties not required to post collateral | 200.3 |
Counterparty | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' |
Uncollateralized credit exposure | $9.30 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Other assets | ' | $102,092,000 | $88,799,000 | ' |
Gains from fair value changes | ' | 10,600,000 | 2,600,000 | ' |
Transfers of financial assets from Level III | ' | 619,000 | 266,000 | ' |
Goodwill impairment | 0 | 0 | 0 | 120,298,000 |
Level III | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Total assets | ' | 171,919,000 | 152,328,000 | ' |
Percentage of Level III assets to financial instruments measured at fair value | ' | 11.20% | 11.70% | ' |
Investments [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Transfers of financial assets from Level III | ' | 600,000 | ' | ' |
Merchant Banking Investments | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Other assets | ' | $16,100,000 | $15,400,000 | ' |
U.S. government agency securities | Minimum | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Market yields basis points spreads to treasury securities (as a percent) | ' | 0.80% | ' | ' |
Prepayment expectations based upon PSA prepayment levels | ' | 192 | ' | ' |
U.S. government agency securities | Maximum | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Market yields basis points spreads to treasury securities (as a percent) | ' | 1.75% | ' | ' |
Prepayment expectations based upon PSA prepayment levels | ' | 383 | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Information about Significant Unobservable Inputs used in Fair Value Measurement (Details) | 12 Months Ended | |
Dec. 31, 2013 | ||
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Fair Value Inputs, Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 12 | |
Weighted Average | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Fair Value Inputs, Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 12 | |
Financial instruments and other inventory positions sold, but not yet purchased | Minimum | Discounted cash flow | Level III | Interest rate derivative contract | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Unamortized premium over the MMD curve | 0.01% | |
Financial instruments and other inventory positions sold, but not yet purchased | Maximum | Discounted cash flow | Level III | Interest rate derivative contract | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Unamortized premium over the MMD curve | 0.15% | |
Financial instruments and other inventory positions sold, but not yet purchased | Weighted Average | Discounted cash flow | Level III | Interest rate derivative contract | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Unamortized premium over the MMD curve | 0.09% | |
Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | Level III | Tax-exempt securities | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Debt service coverage ratio | 5.00% | |
Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | Level III | Short-term securities | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Expected recovery rate (% of par) | 77.00% | |
Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | Level III | Collateralized by Residential mortgages | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Credit default rate | 2.00% | |
Prepayment rates | 2.00% | |
Loss severity | 52.00% | |
Valuation yields | 4.00% | |
Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | Level III | Interest rate derivative contract | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Unamortized premium over the MMD curve | 0.03% | |
Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | Level III | Equity investment in private company | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Revenue multiple | 1.6 | |
Financial instruments and other inventory positions owned | Minimum | Black-Scholes option pricing model | Level III | Warrants in public and private companies | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Liquidity discount rates | 30.00% | |
Financial instruments and other inventory positions owned | Minimum | Black-Scholes option pricing model | Level III | Warrants in private companies | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Stock volatility factors of comparable companies | 27.53% | |
Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | Level III | Tax-exempt securities | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Debt service coverage ratio | 69.00% | |
Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | Level III | Short-term securities | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Expected recovery rate (% of par) | 80.00% | |
Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | Level III | Collateralized by Residential mortgages | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Credit default rate | 8.00% | |
Prepayment rates | 8.00% | |
Loss severity | 100.00% | |
Valuation yields | 8.00% | |
Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | Level III | Interest rate derivative contract | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Unamortized premium over the MMD curve | 0.49% | |
Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | Level III | Equity investment in private company | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Revenue multiple | 6.7 | |
Financial instruments and other inventory positions owned | Maximum | Black-Scholes option pricing model | Level III | Warrants in public and private companies | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Liquidity discount rates | 40.00% | |
Financial instruments and other inventory positions owned | Maximum | Black-Scholes option pricing model | Level III | Warrants in private companies | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Stock volatility factors of comparable companies | 96.90% | |
Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | Level III | Tax-exempt securities | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Debt service coverage ratio | 22.20% | [1] |
Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | Level III | Short-term securities | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Expected recovery rate (% of par) | 79.60% | [1] |
Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | Level III | Collateralized by Residential mortgages | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Credit default rate | 4.70% | [2] |
Prepayment rates | 5.30% | [3] |
Loss severity | 69.40% | [2] |
Valuation yields | 6.00% | [2] |
Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | Level III | Interest rate derivative contract | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Unamortized premium over the MMD curve | 0.20% | |
Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | Level III | Equity investment in private company | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Revenue multiple | 3.16 | |
Financial instruments and other inventory positions owned | Weighted Average | Black-Scholes option pricing model | Level III | Warrants in public and private companies | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Liquidity discount rates | 33.50% | [4] |
Financial instruments and other inventory positions owned | Weighted Average | Black-Scholes option pricing model | Level III | Warrants in private companies | ' | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | ' | |
Stock volatility factors of comparable companies | 56.00% | [1] |
[1] | Significant increase/(decrease) in the unobservable input in isolation would result in a significantly higher/(lower) fair value measurement. | |
[2] | Significant changes in any of these inputs in isolation could result in a significantly different fair value. Generally, a change in the assumption used for credit default rates is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally inverse change in the assumption for valuation yields. | |
[3] | The potential impact of changes in prepayment rates on fair value is dependent on other security-specific factors, such as the par value and structure. Changes in the prepayment rates may result in directionally similar or directionally inverse changes in fair value depending on whether the security trades at a premium or discount to the par value. | |
[4] | Significant increase/(decrease) in the unobservable input in isolation would result in a significantly lower/(higher) fair value measurement. |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Valuation of Financial Instruments by Pricing Observability Levels (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Thousands, unless otherwise specified | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | $1,364,028 | $1,211,595 | ' | ||
Investments at fair value | 69,930 | 39,055 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 512,833 | 357,201 | ' | ||
Equity securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 54,097 | 16,478 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 69,205 | 27,090 | ' | ||
Convertible securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 80,784 | 44,978 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 0 | 1,015 | ' | ||
Fixed income securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 10,102 | 33,668 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 24,021 | 19,314 | ' | ||
Taxable securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 232,379 | 164,059 | ' | ||
Tax-exempt securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 460,865 | 418,189 | ' | ||
Short-term securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 62,620 | 68,328 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 0 | 60 | ' | ||
Asset-backed securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 119,811 | 116,195 | ' | ||
U.S. government agency securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 304,737 | 304,259 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 120,084 | 73,724 | ' | ||
U.S. government securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 0 | 4,966 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 291,320 | 231,043 | ' | ||
Derivative contracts | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 38,633 | 40,475 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 8,203 | 4,955 | ' | ||
Level I | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 39,730 | 8,146 | ' | ||
Cash equivalents | 101,629 | 51,346 | ' | ||
Investments at fair value | 20,690 | 5,810 | ' | ||
Total assets | 162,049 | 65,302 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 362,414 | 256,405 | ' | ||
Level I | Equity securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 39,711 | 3,180 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 69,205 | 25,362 | ' | ||
Level I | Convertible securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level I | Fixed income securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level I | Taxable securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Level I | Tax-exempt securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Level I | Short-term securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level I | Asset-backed securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Level I | U.S. government agency securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level I | U.S. government securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | 4,966 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 291,320 | 231,043 | ' | ||
Level I | Derivative contracts | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 19 | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 1,889 | ' | ' | ||
Level II | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 1,515,285 | 1,640,204 | ' | ||
Cash equivalents | ' | ' | ' | ||
Investments at fair value | ' | ' | ' | ||
Total assets | 1,515,285 | 1,640,204 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 468,170 | 665,605 | ' | ||
Level II | Equity securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 14,386 | 13,298 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | 1,728 | ' | ||
Level II | Convertible securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 80,784 | 44,978 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | 1,015 | ' | ||
Level II | Fixed income securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 10,002 | 33,668 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 24,021 | 19,314 | ' | ||
Level II | Taxable securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 232,379 | 164,059 | ' | ||
Level II | Tax-exempt securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 459,432 | 416,760 | ' | ||
Level II | Short-term securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 61,964 | 67,672 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | 60 | ' | ||
Level II | Asset-backed securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 12 | 24 | ' | ||
Level II | U.S. government agency securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 304,737 | 304,259 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 120,084 | 73,724 | ' | ||
Level II | U.S. government securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level II | Derivative contracts | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 351,589 | 595,486 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 324,065 | 569,764 | ' | ||
Level III | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 122,679 | 119,083 | ' | ||
Cash equivalents | ' | ' | ' | ||
Investments at fair value | 49,240 | 33,245 | ' | ||
Total assets | 171,919 | 152,328 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 6,643 | 5,218 | ' | ||
Level III | Equity securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level III | Convertible securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level III | Fixed income securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 100 | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level III | Taxable securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Level III | Tax-exempt securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 1,433 | 1,429 | ' | ||
Level III | Short-term securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 656 | 656 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level III | Asset-backed securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 119,799 | 116,171 | ' | ||
Level III | U.S. government agency securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level III | U.S. government securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Level III | Derivative contracts | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 691 | 827 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 6,643 | 5,218 | ' | ||
Counterparty and Cash Collateral Netting | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | -313,666 | [1] | -555,838 | [1] | ' |
Cash equivalents | ' | [1] | ' | [1] | ' |
Investments at fair value | ' | [1] | ' | [1] | ' |
Total assets | -313,666 | [1] | -555,838 | [1] | ' |
Financial instruments and other inventory positions sold, but not yet purchased | -324,394 | [1] | -570,027 | [1] | ' |
Counterparty and Cash Collateral Netting | Equity securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | [1] | ' | [1] | ' |
Financial instruments and other inventory positions sold, but not yet purchased | ' | [1] | ' | [1] | ' |
Counterparty and Cash Collateral Netting | Convertible securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | [1] | ' | [1] | ' |
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | [1] | ' | |
Counterparty and Cash Collateral Netting | Fixed income securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | [1] | ' | [1] | ' |
Financial instruments and other inventory positions sold, but not yet purchased | ' | [1] | ' | [1] | ' |
Counterparty and Cash Collateral Netting | Taxable securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | [1] | ' | [1] | ' |
Counterparty and Cash Collateral Netting | Tax-exempt securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | [1] | ' | [1] | ' |
Counterparty and Cash Collateral Netting | Short-term securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | [1] | ' | [1] | ' |
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | [1] | ' | |
Counterparty and Cash Collateral Netting | Asset-backed securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | [1] | ' | [1] | ' |
Counterparty and Cash Collateral Netting | U.S. government agency securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | [1] | ' | [1] | ' |
Financial instruments and other inventory positions sold, but not yet purchased | ' | [1] | ' | [1] | ' |
Counterparty and Cash Collateral Netting | U.S. government securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | ' | [1] | ' | |
Financial instruments and other inventory positions sold, but not yet purchased | ' | [1] | ' | [1] | ' |
Counterparty and Cash Collateral Netting | Derivative contracts | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | -313,666 | [1] | -555,838 | [1] | ' |
Financial instruments and other inventory positions sold, but not yet purchased | -324,394 | [1] | -570,027 | [1] | ' |
Total | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 1,364,028 | 1,211,595 | ' | ||
Cash equivalents | 101,629 | 51,346 | ' | ||
Investments at fair value | 69,930 | 39,055 | ' | ||
Total assets | 1,535,587 | 1,301,996 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 512,833 | 357,201 | ' | ||
Total | Equity securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 54,097 | 16,478 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 69,205 | 27,090 | ' | ||
Total | Convertible securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 80,784 | 44,978 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | 1,015 | ' | ||
Total | Fixed income securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 10,102 | 33,668 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 24,021 | 19,314 | ' | ||
Total | Taxable securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 232,379 | 164,059 | ' | ||
Total | Tax-exempt securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 460,865 | 418,189 | ' | ||
Total | Short-term securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 62,620 | 68,328 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | 60 | ' | ||
Total | Asset-backed securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 119,811 | 116,195 | ' | ||
Total | U.S. government agency securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 304,737 | 304,259 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 120,084 | 73,724 | ' | ||
Total | U.S. government securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | ' | 4,966 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 291,320 | 231,043 | ' | ||
Total | Derivative contracts | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Financial instruments and other inventory positions owned | 38,633 | 40,475 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | 8,203 | 4,955 | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 6,643 | 5,218 | 5,665 | ||
Financial instruments and other inventory positions sold, but not yet purchased | Convertible securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | ' | 1,171 | ||
Financial instruments and other inventory positions sold, but not yet purchased | Fixed income securities | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | ' | 900 | ||
Financial instruments and other inventory positions sold, but not yet purchased | Derivative contracts | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $6,643 | $5,218 | $3,594 | ||
[1] | Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments - Changes in Fair Value Associated with Level III Financial Instruments (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | $152,328 | $80,554 | ||
Purchases | 244,565 | 145,042 | ||
Sales | -251,600 | -79,608 | ||
Transfers in | ' | 304 | ||
Transfers out | -619 | -266 | ||
Realized gains/ (losses) | 25,431 | [1] | 808 | [1] |
Unrealized gains/ (losses) | 1,814 | [1] | 5,494 | [1] |
Ending balance | 171,919 | 152,328 | ||
Financial instruments and other inventory positions sold, but not yet purchased | ' | ' | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 5,218 | 5,665 | ||
Purchases | -5,702 | -7,446 | ||
Sales | 457 | ' | ||
Transfers in | ' | ' | ||
Transfers out | ' | -1,171 | ||
Realized gains/(losses) | 5,232 | [1] | 6,500 | [1] |
Unrealized gains/ (losses) | 1,438 | [1] | 1,670 | [1] |
Ending balance | 6,643 | 5,218 | ||
Financial instruments and other inventory positions sold, but not yet purchased | Convertible securities | ' | ' | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | ' | 1,171 | ||
Purchases | ' | ' | ||
Sales | ' | ' | ||
Transfers in | ' | ' | ||
Transfers out | ' | -1,171 | ||
Realized gains/(losses) | ' | ' | [1] | |
Unrealized gains/ (losses) | ' | ' | [1] | |
Ending balance | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | Fixed income securities | ' | ' | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | ' | 900 | ||
Purchases | ' | -897 | ||
Sales | ' | ' | ||
Transfers in | ' | ' | ||
Transfers out | ' | ' | ||
Realized gains/(losses) | ' | -49 | [1] | |
Unrealized gains/ (losses) | ' | 46 | [1] | |
Ending balance | ' | ' | ||
Financial instruments and other inventory positions sold, but not yet purchased | Derivative contracts | ' | ' | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 5,218 | 3,594 | ||
Purchases | -5,702 | -6,549 | ||
Sales | 457 | ' | ||
Transfers in | ' | ' | ||
Transfers out | ' | ' | ||
Realized gains/(losses) | 5,232 | [1] | 6,549 | [1] |
Unrealized gains/ (losses) | 1,438 | [1] | 1,624 | [1] |
Ending balance | 6,643 | 5,218 | ||
Financial instruments and other inventory positions owned | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 119,083 | 59,213 | ||
Purchases | 227,740 | 130,039 | ||
Sales | -241,242 | -77,214 | ||
Transfers in | ' | 304 | ||
Transfers out | ' | ' | ||
Realized gains/ (losses) | 19,482 | [1] | -787 | [1] |
Unrealized gains/ (losses) | -2,384 | [1] | 7,528 | [1] |
Ending balance | 122,679 | 119,083 | ||
Financial instruments and other inventory positions owned | Fixed income securities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 0 | 2,815 | ||
Purchases | 100 | 1,995 | ||
Sales | 0 | -4,594 | ||
Transfers in | 0 | ' | ||
Transfers out | 0 | ' | ||
Realized gains/ (losses) | 0 | [1] | -118 | [1] |
Unrealized gains/ (losses) | 0 | [1] | -98 | [1] |
Ending balance | 100 | 0 | ||
Financial instruments and other inventory positions owned | Tax-exempt securities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 1,429 | 3,135 | ||
Purchases | 1 | 1,550 | ||
Sales | ' | -2,997 | ||
Transfers in | ' | 266 | ||
Transfers out | ' | ' | ||
Realized gains/ (losses) | ' | [1] | -1,156 | [1] |
Unrealized gains/ (losses) | 3 | [1] | 631 | [1] |
Ending balance | 1,433 | 1,429 | ||
Financial instruments and other inventory positions owned | Short-term securities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 656 | 175 | ||
Purchases | ' | 650 | ||
Sales | ' | ' | ||
Transfers in | ' | ' | ||
Transfers out | ' | ' | ||
Realized gains/ (losses) | ' | [1] | ' | [1] |
Unrealized gains/ (losses) | ' | [1] | -169 | [1] |
Ending balance | 656 | 656 | ||
Financial instruments and other inventory positions owned | Asset-backed securities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 116,171 | 53,088 | ||
Purchases | 227,634 | 125,844 | ||
Sales | -238,860 | -69,623 | ||
Transfers in | ' | 38 | ||
Transfers out | ' | ' | ||
Realized gains/ (losses) | 17,105 | [1] | 487 | [1] |
Unrealized gains/ (losses) | -2,251 | [1] | 6,337 | [1] |
Ending balance | 119,799 | 116,171 | ||
Financial instruments and other inventory positions owned | Derivative contracts | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 827 | ' | ||
Purchases | 5 | ' | ||
Sales | -2,382 | ' | ||
Transfers in | ' | ' | ||
Transfers out | ' | ' | ||
Realized gains/ (losses) | 2,377 | [1] | ' | [1] |
Unrealized gains/ (losses) | -136 | [1] | 827 | [1] |
Ending balance | 691 | 827 | ||
Investments | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | 33,245 | 21,341 | ||
Purchases | 16,825 | 15,003 | ||
Sales | -10,358 | -2,394 | ||
Transfers in | ' | ' | ||
Transfers out | -619 | -266 | ||
Realized gains/ (losses) | 5,949 | [1] | 1,595 | [1] |
Unrealized gains/ (losses) | 4,198 | [1] | -2,034 | [1] |
Ending balance | $49,240 | $33,245 | ||
[1] | Realized and unrealized gains/(losses) related to financial instruments, with the exception of customer matched-book derivatives, are reported in institutional brokerage on the consolidated statements of operations. Realized and unrealized gains/(losses) related to customer matched-book derivatives are reported in investment banking. Realized and unrealized gains/(losses) related to investments are reported in investment banking revenues or investment income on the consolidated statements of operations |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entities Disclosure [Abstract] | ' | ' |
Remaining capital commitments to investment vehicles | $47,600,000 | ' |
Variable interest entity, nonconsolidated total assets | 800,000,000 | 800,000,000 |
Variable interest entities, exposure to loss | 12,500,000 | ' |
VIE liabilities | $0 | $0 |
Receivables_from_and_Payables_4
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Amounts Receivable from Brokers, Dealers and Clearing Organizations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure Amounts Receivable From Brokers Dealers And Clearing Organizations [Abstract] | ' | ' |
Receivable arising from unsettled securities transactions | $59,657 | $66,426 |
Deposits paid for securities borrowed | 36,278 | 32,163 |
Receivable from clearing organizations | 966 | 17,655 |
Deposits with clearing organizations | 20,995 | 24,717 |
Securities failed to deliver | 593 | 5,440 |
Other | 8,624 | 1,716 |
Brokers, dealers and clearing organizations | $127,113 | $148,117 |
Receivables_from_and_Payables_5
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Amounts Payable to Brokers, Dealers and Clearing Organizations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure Amounts Payable To Brokers Dealers And Clearing Organizations [Abstract] | ' | ' |
Payable arising from unsettled securities transactions | $5,643 | $24,643 |
Payable to clearing organizations | 9,462 | 5,763 |
Securities failed to receive | 744 | 7,459 |
Other | 11,873 | 22,290 |
Brokers, dealers and clearing organizations | $27,722 | $60,155 |
Receivables_from_and_Payables_6
Receivables from and Payables to Customers Amounts Receivable from Customers (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total receivables | $11,633 | $13,795 |
Cash accounts | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total receivables | 5,013 | 7,444 |
Margin accounts | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total receivables | $6,620 | $6,351 |
Receivables_from_and_Payables_7
Receivables from and Payables to Customers Amounts Payable to Customers (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables To Customers [Line Items] | ' | ' |
Total payables | $33,109 | $42,007 |
Cash accounts | ' | ' |
Payables To Customers [Line Items] | ' | ' |
Total payables | 30,499 | 32,103 |
Margin accounts | ' | ' |
Payables To Customers [Line Items] | ' | ' |
Total payables | $2,610 | $9,904 |
Collateralized_Securities_Tran2
Collateralized Securities Transactions - Summary of Repurchase Liabilities, Fair Market Value of Related Collateral Pledged and Interest Rate Charged (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Assets Sold under Agreements to Repurchase [Line Items] | ' |
Repurchase Liabilities | $4,397 |
Fair Market Value | 6,294 |
Maturity Overnight [Member] | Taxable securities | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' |
Repurchase Liabilities | 3,672 |
Fair Market Value | 5,328 |
Interest Rate | 1.85% |
On demand maturities | U.S. government agency securities | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' |
Repurchase Liabilities | 725 |
Fair Market Value | $966 |
Interest Rate | 1.99% |
Collateralized_Securities_Tran3
Collateralized Securities Transactions - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Collateralized Securities Transactions Disclosure [Abstract] | ' | ' |
Reverse Repurchase, Offset Value | $0 | ' |
Securities purchased under agreements to resell, securities borrowed and margin agreements on terms that permit to repledge or resell the securities to others | 212,400,000 | 186,100,000 |
Securities either pledged or otherwise transferred to others in connection with financing activities or to satisfy commitments under financial instruments and other inventory positions sold, but not yet purchased | 194,900,000 | 174,400,000 |
Securities loaned | $0 | $0 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Net deferred income tax assets | $36,252 | $33,622 |
Fee receivables | 34,415 | 25,343 |
Accrued interest receivables | 9,793 | 8,029 |
Forgivable loans, net | 7,879 | 10,315 |
Income tax receivables | 0 | 5,448 |
Prepaid expenses | 5,237 | 3,840 |
Other | 8,516 | 2,202 |
Total other assets | $102,092 | $88,799 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Changes in Carrying Value of Goodwill and Intangible Assets (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 16, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capital Markets | Capital Markets | Capital Markets | Capital Markets | Asset Mgmt [Member] | Asset Mgmt [Member] | Asset Mgmt [Member] | |||||
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill beginning balance | ' | $196,844 | $196,844 | ' | ' | $0 | $0 | ' | $196,844 | $196,844 | ' |
Goodwill acquired | ' | -13,790 | 0 | ' | -13,800 | -13,790 | 0 | ' | ' | 0 | ' |
Impairment charge | 0 | 0 | 0 | -120,298 | ' | 0 | 0 | -120,298 | ' | 0 | ' |
Goodwill ending balance | ' | 210,634 | 196,844 | 196,844 | ' | 13,790 | 0 | 0 | 196,844 | 196,844 | 196,844 |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets beginning balance | ' | 41,258 | 48,202 | ' | ' | 0 | 0 | ' | 41,258 | 48,202 | ' |
Intangible assets acquired | ' | 6,665 | ' | ' | ' | 6,665 | ' | ' | 0 | ' | ' |
Amortization of intangible assets | ' | -7,993 | -6,944 | -7,256 | ' | -1,349 | 0 | 0 | -6,644 | -6,944 | -7,256 |
Intangible assets ending balance | ' | $39,930 | $41,258 | $48,202 | ' | $5,316 | $0 | $0 | $34,614 | $41,258 | $48,202 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Additional Information (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill And Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' |
Goodwill | ' | $210,634 | $196,844 | $196,844 |
Goodwill, Impairment Loss | 0 | 0 | 0 | -120,298 |
Impairment of Intangible Assets, Finite-lived | ' | 0 | ' | ' |
Finite-Lived Customer Relationships, Gross | ' | 6,665 | ' | ' |
FAMCO | ' | ' | ' | ' |
Goodwill And Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' |
Goodwill, Impairment Loss | ' | ' | -5,508 | ' |
Capital Markets | ' | ' | ' | ' |
Goodwill And Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' |
Goodwill | ' | 13,790 | 0 | 0 |
Goodwill, Impairment Loss | ' | 0 | 0 | -120,298 |
Finite-Lived Customer Relationships, Gross | ' | 6,665 | ' | ' |
Customer Relationships | Capital Markets | ' | ' | ' | ' |
Goodwill And Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' |
Finite-Lived Customer Relationships, Gross | ' | 6,000 | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | '1 year 11 months | ' | ' |
Noncompete Agreements | Capital Markets | ' | ' | ' | ' |
Goodwill And Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' |
Finite-Lived Customer Relationships, Gross | ' | $700 | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | '3 years | ' | ' |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Aggregate Future Intangible Asset Amortization Expense (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
2014 | $9,272 |
2015 | 7,093 |
2016 | 6,219 |
2017 | 5,230 |
Thereafter | 9,256 |
Total | $37,070 |
Fixed_Assets_Summary_of_Fixed_
Fixed Assets - Summary of Fixed Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $78,425 | $76,121 |
Accumulated depreciation and amortization | -62,311 | -61,032 |
Property, Plant and Equipment, Net | 16,114 | 15,089 |
Furniture and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 34,980 | 36,454 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 23,478 | 19,508 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $19,967 | $20,159 |
Fixed_Assets_Additional_Inform
Fixed Assets - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation | $5.60 | $6.50 | $6.60 |
ShortTerm_Financing_Summary_of
Short-Term Financing - Summary of Short Term Financing and Weighted Average Interest Rate on Borrowings (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Oustanding Balance | $514,711 | $477,014 |
Commercial paper (secured) | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Oustanding Balance | 280,294 | 304,439 |
Weighted Average Interest Rate | 1.59% | 1.65% |
Prime broker arrangement | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Oustanding Balance | $234,417 | $172,575 |
Weighted Average Interest Rate | 0.90% | 0.98% |
ShortTerm_Financing_Additional
Short-Term Financing - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Commercial paper (secured) | Commercial paper (secured) | Commercial paper (secured) | Commercial paper (secured) | Commercial paper (secured) | Commercial paper (secured) | Commercial paper (secured) | Line of Credit [Member] | Line of Credit [Member] | Committed Credit Facility [Member] | Committed Credit Facility [Member] | ||||
program | Minimum | Maximum | CP Series A | CP Series II A | CP Series III A | Uncommitted Credit Facility [Member] | Committed Credit Facility [Member] | Covenant Requirement | ||||||
banks | ||||||||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured commercial paper notes, maturity period | ' | ' | ' | ' | ' | '27 days | '270 days | ' | ' | ' | ' | ' | ' | ' |
Number of commercial paper programs | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average maturity period | ' | ' | ' | ' | ' | ' | ' | '132 days | '107 days | '31 days | ' | ' | ' | ' |
Debt term | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Line of credity, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $185,000,000 | $250,000,000 | $250,000,000 | ' |
Minimum net capital required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 |
Short-term financing | ' | $514,711,000 | $477,014,000 | $280,294,000 | $304,439,000 | ' | ' | ' | ' | ' | $0 | $0 | ' | ' |
Number of banks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Variable_Rate_Senior_Notes_Add
Variable Rate Senior Notes - Additional Information (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Nov. 30, 2012 | Nov. 30, 2012 | Dec. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | ||
class | Class A Variable Rate Senior Notes Due May 2014 | Class A Variable Rate Senior Notes Due May 2014 | Class B Variable Rate Senior Notes Due November 2015 | Class B Variable Rate Senior Notes Due November 2015 | Covenant Requirement | ||
Three-Month LIBOR | Three-Month LIBOR | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | $125,000,000 | $50,000,000 | ' | $75,000,000 | ' | ' |
Number of classes of notes | ' | 2 | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | 4.00% | ' | 4.50% | ' |
Note purchase agreement, days to pay interest | '5 days | ' | ' | ' | ' | ' | ' |
Note purchase agreement, event of default, maximum indebtedness | 10,000,000 | ' | ' | ' | ' | ' | ' |
Minimum net capital required | ' | ' | ' | ' | ' | ' | $120,000,000 |
Bank_Syndicated_Financing_Addi
Bank Syndicated Financing - Additional Information (Detail) (USD $) | 0 Months Ended | 23 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2010 | Nov. 30, 2012 |
Debt Instrument [Line Items] | ' | ' |
Debt term | '3 years | ' |
Credit agreement, interest rate margin above federal funds rate | 0.50% | ' |
Credit agreement, interest rate margin above one-month LIBOR rate | 1.00% | ' |
Credit agreement, applicable margin rate, minimum | 1.50% | ' |
Credit agreement, applicable margin rate, maximum | 3.00% | ' |
Nonrefundable commitment fee, percentage | ' | 0.50% |
Term Loan | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Bank syndicated financing | 100 | ' |
Revolving credit facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Bank syndicated financing | 50 | ' |
Legal_Contingencies_Aggregate_
Legal Contingencies - Aggregate Minimum Lease Commitments under Operating Leases (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
2014 | $11,997,000 | ' | ' |
2015 | 10,011,000 | ' | ' |
2016 | 10,203,000 | ' | ' |
2017 | 8,477,000 | ' | ' |
2018 | 8,158,000 | ' | ' |
Thereafter | 27,718,000 | ' | ' |
Total | 76,564,000 | ' | ' |
Rentals Received Under Noncancelable Subleases | 9,800,000 | ' | ' |
Operating Leases, Rent Expense | $12,900,000 | $13,100,000 | $14,900,000 |
Legal_Contingencies_Additional
Legal Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loss Contingencies [Line Items] | ' | ' | ' |
Litigation Related Reserve Activity Net | ($4.10) | $0.90 | ($0.20) |
Remaining capital commitments to investment vehicles | $47.60 | ' | ' |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring-related expense | $3.60 | $3.60 |
Severance Costs | 2.4 | 2.4 |
Leased Office Space [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Other Restructuring Costs | 0.5 | 1.2 |
Contract Termination [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Other Restructuring Costs | $0.70 | ' |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2010 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 100,000,000 | ' | ' | ' | 100,000,000 | 100,000,000 | ' |
Common stock, par value | $0.01 | ' | ' | ' | $0.01 | $0.01 | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | 5,000,000 | ' | ' |
Preferred stock, par value | ' | ' | ' | ' | $0.01 | ' | ' |
Common stock, number of votes per share | ' | ' | ' | ' | 1 | ' | ' |
Repurchase of common stock, authorized amount | ' | $100,000,000 | $75,000,000 | ' | ' | ' | ' |
Treasury Stock, Shares, Acquired | 156,577 | ' | ' | 1,488,881 | 1,719,662 | ' | ' |
Treasury Stock, Shares, Acquired as Pecent of Outstanding Common Stock | ' | ' | ' | ' | 11.30% | ' | ' |
Treasury Stock Acquired, Average Cost Per Share | $29.38 | ' | ' | $22.48 | $32.52 | ' | ' |
Treasury Stock, Value, Acquired, Cost Method | 4,600,000 | ' | ' | 33,500,000 | 55,929,000 | 38,068,000 | 5,994,000 |
Common stock repurchase authorized, remaining amount | ' | ' | ' | ' | 39,500,000 | ' | ' |
Shares of common stock purchased from restricted stock award related to recipients' employment tax obligations | ' | ' | ' | ' | 386,713 | 385,449 | ' |
Repurchase of common stock for employee tax withholding | ' | ' | ' | ' | 15,533,000 | 9,096,000 | 20,535,000 |
Number of common stock issued for retirement plan obligations | ' | ' | ' | ' | 96,049 | 165,241 | 90,085 |
Compensation and benefits | ' | ' | ' | ' | 322,464,000 | 296,882,000 | 265,015,000 |
Reissuance of treasury shares as a result of employee vesting | ' | ' | ' | ' | 786,467 | 937,978 | ' |
Retirement Plan | ' | ' | ' | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Compensation and benefits | ' | ' | ' | ' | $3,900,000 | $3,800,000 | ' |
Noncontrolling_Interests_Addit
Noncontrolling Interests - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Noncontrolling Interest Note [Line Items] | ' | ' |
Noncontrolling interests | $147,396 | $56,883 |
Municipal bond fund | ' | ' |
Noncontrolling Interest Note [Line Items] | ' | ' |
Noncontrolling interests | 126,300 | 43,700 |
Merchant banking fund | ' | ' |
Noncontrolling Interest Note [Line Items] | ' | ' |
Noncontrolling interests | 14,100 | 6,400 |
Other private equity investments | ' | ' |
Noncontrolling Interest Note [Line Items] | ' | ' |
Noncontrolling interests | $7,000 | $6,800 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Pension and Other Postretirement Benefit Expense | $12.10 | $13 | $11.60 |
Maximum 401 K Plan Contribution Rates As Percentage Of Employees Earnings | 100.00% | ' | ' |
Employer 401 K Matching Contribution To Employee Maximum | 6.00% | ' | ' |
Postretirement Medical Plan | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | 0.1 | 0.1 | 0.1 |
Retirement Plan | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 1.1 | ' | ' |
Health and Welfare Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Pension and Other Postretirement Benefit Expense | $7.20 | $8 | $6.90 |
Compensation_Plans_Summary_of_
Compensation Plans - Summary of Outstanding Equity Awards (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock outstanding | 1,361,606 | ' | ' | ' |
Total restricted stock outstanding | 1,582,062 | ' | ' | ' |
Stock options outstanding | 469,289 | 486,563 | 502,623 | 515,492 |
Restricted Stock Units | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Leadership grants | 290,536 | ' | ' | ' |
Amended And Restated 2003 Annual And Long -Term Incentive Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock outstanding | 1,303,296 | ' | ' | ' |
Amended And Restated 2003 Annual And Long -Term Incentive Plan | Annual grants | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock outstanding | 866,894 | ' | ' | ' |
Amended And Restated 2003 Annual And Long -Term Incentive Plan | Sign-on grants | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock outstanding | 436,402 | ' | ' | ' |
Amended And Restated 2003 Annual And Long -Term Incentive Plan | Retention Grant [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock outstanding | 0 | ' | ' | ' |
Amended And Restated 2003 Annual And Long -Term Incentive Plan | Performance Shares [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock outstanding | 0 | ' | ' | ' |
2010 Employment Inducement Award Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock outstanding | 58,310 | ' | ' | ' |
acquisition related [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total restricted stock outstanding | 220,456 | ' | ' | ' |
Compensation_Plans_RSU_Valuati
Compensation Plans - RSU Valuation Assumptions (Details) (Restricted Stock Units) | 12 Months Ended |
Dec. 31, 2013 | |
Grant Year 2013 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free Interest Rate | 0.40% |
Expected Stock Price Volatility | 44.00% |
Grant Year 2012 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free Interest Rate | 0.38% |
Expected Stock Price Volatility | 47.60% |
Compensation_Plans_Unvested_Re
Compensation Plans - Unvested Restricted Stock (Details) (Restricted Stock, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock | ' | ' | ' |
Unvested Restricted Stock or Stock Units | ' | ' | ' |
Beginning Balance | 2,322,438 | 3,152,001 | 4,523,184 |
Granted | 682,760 | 635,136 | 663,887 |
Vested | -1,165,989 | -1,309,881 | -1,791,712 |
Cancelled | -257,147 | -154,818 | -243,358 |
Ending Balance | 1,582,062 | 2,322,438 | 3,152,001 |
Weighted Average Grant Date Fair Value (in dollars per share) | ' | ' | ' |
Beginning Balance | $37.01 | $38.79 | $39.84 |
Granted | $38.35 | $22.89 | $40.87 |
Vested | $39.83 | $34.21 | $37.77 |
Cancelled | $38.30 | $39.37 | $39.03 |
Ending Balance | $35.25 | $37.01 | $38.79 |
Compensation_Plans_Unvested_Re1
Compensation Plans - Unvested Restricted Stock Units (Details) (Restricted Stock Units, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units | ' | ' |
Unvested Restricted Stock or Stock Units | ' | ' |
Beginning Balance | 173,271 | 0 |
Granted | 117,265 | 214,526 |
Vested | 0 | 0 |
Cancelled | 0 | -41,255 |
Ending Balance | 290,536 | 173,271 |
Weighted Average Grant Date Fair Value (in dollars per share) | ' | ' |
Beginning Balance | $12.12 | $0 |
Granted | $21.32 | $12.12 |
Vested | $0 | $0 |
Cancelled | $0 | $12.12 |
Ending Balance | $15.83 | $12.12 |
Compensation_Plans_Stock_Optio
Compensation Plans - Stock Options (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Options Outstanding | ' | ' | ' | ' |
Beginning Balance | 486,563 | 502,623 | 515,492 | ' |
Granted | 0 | 0 | 0 | ' |
Exercised | 0 | 0 | -1,023 | ' |
Cancelled | -17,274 | -16,060 | -11,846 | ' |
Ending Balance | 469,289 | 486,563 | 502,623 | 515,492 |
Options exercisable at period end | 469,289 | 486,563 | 502,623 | ' |
Weighted Average Exercise Price (in dollars per share) | ' | ' | ' | ' |
Beginning Balance | $44.76 | $44.71 | $44.64 | ' |
Granted | $0 | $0 | $0 | ' |
Exercised | $0 | $0 | $39.62 | ' |
Cancelled | $42.85 | $43.17 | $42.19 | ' |
Ending Balance | $44.83 | $44.76 | $44.71 | $44.64 |
Options exercisable at period end | $44.83 | $44.76 | $44.71 | ' |
Weighted Average Remaining Contractual Term (in Years) | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term (in Years) | '2 years | '2 years 10 months 24 days | '3 years 10 months 24 days | '4 years 10 months 24 days |
Options exercisable at period end | '2 years | '2 years 10 months 24 days | '3 years 10 months 24 days | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Aggregate Intrinsic Value of Stock Options | $288,318 | $94,150 | $0 | $166,406 |
Options exercisable at end of period | $288,318 | $94,150 | $0 | ' |
Compensation_Plans_Additional_
Compensation Plans - Additional Stock Option Activity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
$28.01 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of exercise prices, upper | $28.01 | ' |
Options outstanding, shares | ' | 22,852 |
Options outstanding, weighted average contractual life (in Years) | '1 year 4 months | ' |
Options outstanding, weighted average exercise price | ' | $28.01 |
Exercisable options, shares | ' | 22,852 |
Exercisable options, weighted average exercise price | ' | $28.01 |
$33.40 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of exercise prices, upper | $33.40 | ' |
Options outstanding, shares | ' | 4,001 |
Options outstanding, weighted average contractual life (in Years) | '1 year 7 months | ' |
Options outstanding, weighted average exercise price | ' | $33.40 |
Exercisable options, shares | ' | 4,001 |
Exercisable options, weighted average exercise price | ' | $33.40 |
$39.62 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of exercise prices, upper | $39.62 | ' |
Options outstanding, shares | ' | 131,637 |
Options outstanding, weighted average contractual life (in Years) | '1 year 1 month | ' |
Options outstanding, weighted average exercise price | ' | $39.62 |
Exercisable options, shares | ' | 131,637 |
Exercisable options, weighted average exercise price | ' | $39.62 |
$41.09 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of exercise prices, upper | $41.09 | ' |
Options outstanding, shares | ' | 128,887 |
Options outstanding, weighted average contractual life (in Years) | '4 years 1 month | ' |
Options outstanding, weighted average exercise price | ' | $41.09 |
Exercisable options, shares | ' | 128,887 |
Exercisable options, weighted average exercise price | ' | $41.09 |
$47.30 - $51.05 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of exercise prices, lower | $47.30 | ' |
Range of exercise prices, upper | $51.05 | ' |
Options outstanding, shares | ' | 134,499 |
Options outstanding, weighted average contractual life (in Years) | '6 months | ' |
Options outstanding, weighted average exercise price | ' | $47.74 |
Exercisable options, shares | ' | 134,499 |
Exercisable options, weighted average exercise price | ' | $47.74 |
$70.13 - $70.65 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Range of exercise prices, lower | $70.13 | ' |
Range of exercise prices, upper | $70.65 | ' |
Options outstanding, shares | ' | 47,413 |
Options outstanding, weighted average contractual life (in Years) | '2 years 10 months 24 days | ' |
Options outstanding, weighted average exercise price | ' | $70.26 |
Exercisable options, shares | ' | 47,413 |
Exercisable options, weighted average exercise price | ' | $70.26 |
Compensation_Plans_Additional_1
Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 15-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | |
plan | Minimum | Maximum | Maximum | Annual grants | Retention Grant [Member] | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock | Restricted Stock | Restricted Stock | Stock Options | Amended And Restated 2003 Annual And Long -Term Incentive Plan | Amended And Restated 2003 Annual And Long -Term Incentive Plan | 2010 Employment Inducement Award Plan | |||
New Employees [Member] | New Employees [Member] | Maximum | Maximum | Maximum | ||||||||||||||||
Award Earned Based on Shareholder Return Relative to Predetermined Peer Group | Award Earned Based on Total Shareholder Return | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock-based compensation plans | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity award grants authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' |
Shares available for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' |
Award vesting period in years | ' | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years |
Annual grant expense period | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeitures recorded as a result of violating the post-termination restrictions | $1,000,000 | $1,300,000 | $3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units, performance period | ' | ' | ' | ' | ' | ' | ' | ' | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period over which restricted stock expense expected to be recognized | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | '2 years 10 months 10 days | ' | ' | ' | ' | ' | ' |
Award earning percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Number of years risk free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of stock options | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted shares granted to ARI employees, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 |
Restricted shares granted, share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117,265 | 214,526 | ' | ' | 682,760 | 635,136 | 663,887 | ' | ' | ' | 158,801 |
Compensation expense related to employee restricted stock awards | 21,000,000 | 20,200,000 | 21,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit related to compensation costs for stock-based compensation arrangements | 8,200,000 | 7,900,000 | 8,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of restricted stock vested during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,400,000 | 44,800,000 | 67,700,000 | ' | ' | ' | ' |
Unrecognized compensation cost related to restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13,500,000 | ' | ' | $0 | ' | ' | ' |
Expected Shares Payment For Tax Withholding For Share Based Compensation In Next Fiscal Year | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition related compensation awards vesting period | '3 years | ' | ' | '2 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income/(loss) from continuing operations | $27,952 | $6,851 | $4,359 | $10,667 | $15,565 | $14,493 | $10,785 | $6,232 | $49,829 | $47,075 | ($90,772) | |||
Net loss from discontinued operations | -818 | -1,529 | -1,871 | -521 | -3,741 | 5,171 | -3,934 | -3,303 | -4,739 | -5,807 | -11,248 | |||
Net income/(loss) applicable to Piper Jaffray Companies | 27,134 | 5,322 | 2,488 | 10,146 | 11,824 | 19,664 | 6,851 | 2,929 | 45,090 | 41,268 | -102,020 | |||
Earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -4,494 | [1] | -5,933 | [1] | 0 | [1] |
Net income applicable to Piper Jaffray Companies' common shareholders | $24,445 | $4,826 | $2,266 | $8,966 | $10,198 | $16,840 | $5,890 | $2,480 | $40,596 | [2] | $35,335 | [2] | ($102,020) | [2],[3] |
Shares for basic and diluted calculations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Average shares used in basic computation | 14,378,000 | 14,641,000 | 15,621,000 | 15,582,000 | 15,253,000 | 15,210,000 | 15,932,000 | 16,072,000 | 15,046,000 | 15,615,000 | 15,672,000 | |||
Average shares used in diluted computation | 14,397,000 | 14,626,000 | 15,626,000 | 15,610,000 | 15,256,000 | 15,210,000 | 15,932,000 | 16,072,000 | 15,061,000 | 15,616,000 | 15,672,000 | [4] | ||
Earnings/(loss) per basic common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income from continuing operations | $1.75 | $0.42 | $0.25 | $0.60 | $0.88 | $0.82 | $0.58 | $0.33 | $2.98 | $2.58 | ($5.79) | |||
Loss from discontinued operations | ($0.05) | ($0.09) | ($0.11) | ($0.03) | ($0.21) | $0.29 | ($0.21) | ($0.17) | ($0.28) | ($0.32) | ($0.72) | |||
Earnings per basic common share | $1.70 | $0.33 | $0.15 | $0.58 | $0.67 | $1.11 | $0.37 | $0.15 | $2.70 | $2.26 | ($6.51) | |||
Earnings/(loss) per diluted common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income from continuing operations | $1.75 | $0.42 | $0.25 | $0.60 | $0.88 | $0.82 | $0.58 | $0.33 | $2.98 | $2.58 | ($5.79) | |||
Loss from discontinued operations | ($0.05) | ($0.09) | ($0.11) | ($0.03) | ($0.21) | $0.29 | ($0.21) | ($0.17) | ($0.28) | ($0.32) | ($0.72) | |||
Earnings per diluted common share | $1.70 | $0.33 | $0.15 | $0.57 | $0.67 | $1.11 | $0.37 | $0.15 | $2.70 | $2.26 | ($6.51) | [4] | ||
Weighted average participating shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 1,667,067 | 2,622,438 | 3,528,624 | |||
Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares for basic and diluted calculations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Incremental common share attributable to share-based payment arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | 1,000 | 13,000 | |||
Restricted Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares for basic and diluted calculations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Incremental common share attributable to share-based payment arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 2,892,000 | |||
Calculated diluted number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares for basic and diluted calculations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Average shares used in diluted computation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,577,000 | [4] | ||
[1] | Represents the allocation of earnings to participating securities. Losses are not allocated to participating securities. Participating securities include all of the Company’s unvested restricted shares. The weighted average participating shares outstanding were 1,667,067; 2,622,438 and 3,528,624 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
[2] | Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders for diluted and basic EPS may differ under the two-class method as a result of adding the effect of the assumed exercise of stock options to dilutive shares outstanding, which alters the ratio used to allocate earnings to Piper Jaffray Companies’ common shareholders and participating securities for purposes of calculating diluted and basic EPS. | |||||||||||||
[3] | No allocation of income was made due to loss position. | |||||||||||||
[4] | Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred. |
Segment_Reporting_Reportable_S
Segment Reporting - Reportable Segment Financial Results (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | $248,563 | $232,958 | $202,513 | |||
Institutional sales and trading | ' | ' | ' | ' | ' | ' | ' | ' | ' | 146,648 | 166,642 | 135,358 | |||
Asset management | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,045 | 65,699 | 63,307 | |||
Investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,566 | 4,903 | 8,178 | |||
Net revenues | ' | 187,576 | 128,314 | 99,772 | 109,533 | 140,911 | 131,505 | 103,098 | 113,438 | 525,195 | 488,952 | 432,083 | |||
Goodwill impairment | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 120,298 | |||
Operating expenses | ' | 145,524 | 116,254 | 96,439 | 91,365 | 118,129 | 106,153 | 97,443 | 98,216 | 449,582 | 419,941 | 512,272 | |||
Segment pre-tax operating income/(loss) | ' | 42,052 | 12,060 | 3,333 | 18,168 | 22,782 | 25,352 | 5,655 | 15,222 | 75,613 | 69,011 | -80,189 | |||
Pre-tax operating margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.40% | 14.10% | ' | |||
Intangible asset amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,993 | 6,944 | 7,256 | |||
Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | 248,928 | 233,447 | 203,099 | |||
Institutional sales and trading | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167,444 | 187,215 | 161,764 | |||
Asset management | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,891 | 1,678 | 243 | |||
Investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,404 | 9,840 | 11,052 | |||
Interest Expense, Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,420 | 7,982 | 7,067 | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 443,247 | 424,198 | 369,091 | |||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 120,298 | |||
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 393,231 | 371,628 | 464,334 | |||
Segment pre-tax operating income/(loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,016 | 52,570 | -95,243 | |||
Pre-tax operating margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.30% | 12.40% | ' | |||
Intangible asset amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,349 | 0 | 0 | |||
Asset Mgmt [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Management fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71,314 | 63,236 | 60,819 | |||
Performance fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,840 | 785 | 2,245 | |||
Asset management | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,154 | 64,021 | 63,064 | |||
Investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,794 | 733 | -72 | |||
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,948 | 64,754 | 62,992 | |||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | |||
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,351 | [1] | 48,313 | [1] | 47,938 | [1] |
Segment pre-tax operating income/(loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,597 | 16,441 | 15,054 | |||
Pre-tax operating margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.20% | 25.40% | 23.90% | |||
Intangible asset amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,644 | 6,944 | 7,256 | |||
Equities Financing [Member] | Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,224 | 73,180 | 74,161 | |||
Debt Financing [Member] | Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74,284 | 74,102 | 54,565 | |||
Advisory Services | Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74,420 | 86,165 | 74,373 | |||
Equity securities | Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Institutional sales and trading | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,169 | 75,723 | 86,175 | |||
Debt securities | Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Institutional sales and trading | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,275 | 111,492 | 75,589 | |||
Goodwill Impairment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 120,298 | |||
Goodwill Impairment [Member] | Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 120,298 | |||
Operating Expense [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 449,582 | 419,941 | 391,974 | |||
Operating Expense [Member] | Capital Markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | $393,231 | $371,628 | $344,036 | |||
[1] | Operating expenses include intangible asset amortization expense as set forth in the table below: Year Ended December 31,(Dollars in thousands)2013 2012 2011Capital Markets$1,349 $— $—Asset Management6,644 6,944 7,256Total intangible asset amortization expense$7,993 $6,944 $7,256 |
Segment_Reporting_Net_Revenues
Segment Reporting - Net Revenues by Geographic Locations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $187,576 | $128,314 | $99,772 | $109,533 | $140,911 | $131,505 | $103,098 | $113,438 | $525,195 | $488,952 | $432,083 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 513,433 | 476,718 | 415,647 |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | $11,762 | $12,234 | $16,436 |
Segment_Reporting_LongLived_As
Segment Reporting - Long-Lived Assets By Geographic Region (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Long Lived Assets | $302,930 | $286,813 |
United States | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Long Lived Assets | 296,516 | 285,682 |
Europe | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Long Lived Assets | $6,414 | $1,131 |
Net_Capital_Requirements_and_O1
Net Capital Requirements and Other Regulatory Matters - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ' |
Net capital requirement | $1,000,000 |
Net capital requirement, percentage of aggregate debit balances arising from customer transactions | 2.00% |
Net capital requirement, percent of aggregate debit balances under restriction on business expansion or dividend payment | 5.00% |
Net capital | 165,600,000 |
Amount of capital that exceeds the minimum net capital required | 164,600,000 |
Committed Credit Facility [Member] | ' |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ' |
Revolving credit facility | 250,000,000 |
Committed Credit Facility [Member] | Covenant Requirement | ' |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | ' |
Minimum net capital required | $120,000,000 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $20,468 | $16,939 | ($6,108) |
State | ' | ' | ' | ' | ' | ' | ' | ' | 3,795 | -9,563 | 27 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 183 | 0 | 0 |
Current Income Tax Expense (Benefit), Total | ' | ' | ' | ' | ' | ' | ' | ' | 24,446 | 7,376 | -6,081 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -1,582 | 7,735 | 13,803 |
State | ' | ' | ' | ' | ' | ' | ' | ' | -4,041 | 4,413 | 2,491 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 1,567 | -54 | -1,093 |
Total Deferred Income Tax Expense (Benefit), Total | ' | ' | ' | ' | ' | ' | ' | ' | -4,056 | 12,094 | 15,201 |
Total income tax expense from continuing operations | 10,260 | 2,886 | 1,644 | 5,600 | 7,422 | 10,194 | -5,699 | 7,553 | 20,390 | 19,470 | 9,120 |
Total income tax expense/(benefit) from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ($2,935) | ($23,795) | $1,756 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Federal Income Taxes at Statutory Rates to Effective Tax Rates (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal income tax expense/(benefit) at statutory rates | ' | ' | ' | ' | ' | ' | ' | ' | $26,464 | $24,153 | ($28,066) |
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 40,440 |
State income taxes, net of federal tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 2,785 | 2,540 | 1,327 |
Net tax-exempt interest income | ' | ' | ' | ' | ' | ' | ' | ' | -3,917 | -3,353 | -3,308 |
Foreign jurisdictions tax rate differential | ' | ' | ' | ' | ' | ' | ' | ' | -185 | -164 | 413 |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | -4,182 | -1,110 | -2,185 |
Restricted stock deferred tax asset write-off | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 4,577 | 557 |
Loss/(income) attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | -1,888 | -863 | -512 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 1,313 | -6,310 | 454 |
Total income tax expense from continuing operations | $10,260 | $2,886 | $1,644 | $5,600 | $7,422 | $10,194 | ($5,699) | $7,553 | $20,390 | $19,470 | $9,120 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Asset Included in Other Assets on Consolidated Statements of Financial Condition (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Deferred compensation | $43,608 | $38,090 |
Net operating loss carry forwards | 5,569 | 7,645 |
Liabilities/accruals not currently deductible | 1,903 | 2,035 |
Other | 1,459 | 2,667 |
Total deferred tax assets | 52,539 | 50,437 |
Valuation allowance | -159 | -5,139 |
Deferred tax assets after valuation allowance | 52,380 | 45,298 |
Deferred tax liabilities: | ' | ' |
Goodwill amortization | 9,957 | 6,010 |
Unrealized gains on firm investments | 3,577 | 2,134 |
Fixed assets | 1,017 | 2,706 |
Other | 1,577 | 826 |
Total deferred tax liabilities | 16,128 | 11,676 |
Net deferred tax assets | $36,252 | $33,622 |
Income_Taxes_Changes_in_Amount
Income Taxes - Changes in Amount of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Beginning balance | $290 | $8,915 | $9,510 |
Additions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 2,000 | 200 | 0 |
Reductions for tax positions of prior years | -90 | -8,825 | -595 |
Settlements | 0 | 0 | 0 |
Ending Balance | $2,200 | $290 | $8,915 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' | ' | ' |
Net operating loss carry forwards | $5,569,000 | $7,645,000 | ' | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 200,000 | ' | ' | ' |
Valuation allowance | -159,000 | -5,139,000 | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 200,000 | 0 | 300,000 | ' |
Changes in income tax expense due to unrecognized tax benefits decreases | ' | -7,400,000 | ' | ' |
Income tax benefit from discontinued operations | -2,935,000 | -23,795,000 | 1,756,000 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 200,000 | 100,000 | ' | ' |
Reductions for tax positions of prior years | 90,000 | 8,825,000 | 595,000 | ' |
Unrecognized Tax Benefits | 2,200,000 | 290,000 | 8,915,000 | 9,510,000 |
Unrecognized Tax Benefits Decreases Resulting From Reversal Of Interest Accrued | ' | $2,600,000 | ' | ' |
Piper_Jaffray_Companies_Parent1
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Financial Condition (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $123,683 | $105,371 | $85,024 | $50,216 |
Goodwill | 210,634 | 196,844 | 196,844 | ' |
Other assets | 102,092 | 88,799 | ' | ' |
Total assets | 2,318,157 | 2,087,733 | ' | ' |
Liabilities and Shareholders’ Equity | ' | ' | ' | ' |
Variable rate senior notes | 125,000 | 125,000 | ' | ' |
Accrued compensation | 159,928 | 132,124 | ' | ' |
Other liabilities and accrued expenses | 58,385 | 53,193 | ' | ' |
Total liabilities | 1,436,085 | 1,297,558 | ' | ' |
Total common shareholders’ equity | 734,676 | 733,292 | ' | ' |
Total liabilities and shareholders' equity | 2,318,157 | 2,087,733 | ' | ' |
Parent Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 336 | 1,069 | 14,493 | 7,513 |
Investment in and advances to subsidiaries | 870,104 | 857,973 | ' | ' |
Other assets | 9,119 | 20,850 | ' | ' |
Total assets | 879,559 | 879,892 | ' | ' |
Liabilities and Shareholders’ Equity | ' | ' | ' | ' |
Variable rate senior notes | 125,000 | 125,000 | ' | ' |
Accrued compensation | 18,454 | 20,838 | ' | ' |
Other liabilities and accrued expenses | 1,429 | 762 | ' | ' |
Total liabilities | 144,883 | 146,600 | ' | ' |
Total common shareholders’ equity | 734,676 | 733,292 | ' | ' |
Total liabilities and shareholders' equity | $879,559 | $879,892 | ' | ' |
Piper_Jaffray_Companies_Parent2
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest | ' | ' | ' | ' | ' | ' | ' | ' | $50,409 | $37,845 | $43,447 |
Unrealized loss on investments | ' | ' | ' | ' | ' | ' | ' | ' | 198 | 0 | 0 |
Total revenues | 193,893 | 134,506 | 106,520 | 115,312 | 147,164 | 135,900 | 107,417 | 117,566 | 550,231 | 508,047 | 452,803 |
Interest expense | 6,317 | 6,192 | 6,748 | 5,779 | 6,253 | 4,395 | 4,319 | 4,128 | 25,036 | 19,095 | 20,720 |
Net revenues | 187,576 | 128,314 | 99,772 | 109,533 | 140,911 | 131,505 | 103,098 | 113,438 | 525,195 | 488,952 | 432,083 |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-interest expenses | 145,524 | 116,254 | 96,439 | 91,365 | 118,129 | 106,153 | 97,443 | 98,216 | 449,582 | 419,941 | 512,272 |
Income/(loss) from continuing operations before income tax expense | 42,052 | 12,060 | 3,333 | 18,168 | 22,782 | 25,352 | 5,655 | 15,222 | 75,613 | 69,011 | -80,189 |
Income tax expense/(benefit) | 10,260 | 2,886 | 1,644 | 5,600 | 7,422 | 10,194 | -5,699 | 7,553 | 20,390 | 19,470 | 9,120 |
Net income/(loss) | 30,974 | 7,645 | -182 | 12,047 | 11,619 | 20,329 | 7,420 | 4,366 | 50,484 | 43,734 | -100,557 |
Net income/(loss) from continuing operations | 27,952 | 6,851 | 4,359 | 10,667 | 15,565 | 14,493 | 10,785 | 6,232 | 49,829 | 47,075 | -90,772 |
Net loss from discontinued operations | -818 | -1,529 | -1,871 | -521 | -3,741 | 5,171 | -3,934 | -3,303 | -4,739 | -5,807 | -11,248 |
Net income/(loss) applicable to Piper Jaffray Companies | 27,134 | 5,322 | 2,488 | 10,146 | 11,824 | 19,664 | 6,851 | 2,929 | 45,090 | 41,268 | -102,020 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend Income From Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 46,000 | 119,000 | 80,483 |
Interest | ' | ' | ' | ' | ' | ' | ' | ' | 254 | 82 | 31 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 46,452 | 119,082 | 80,514 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 5,850 | 5,823 | 5,392 |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 40,602 | 113,259 | 75,122 |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-interest expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,096 | 4,222 | 13,044 |
Income/(loss) from continuing operations before income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 37,506 | 109,037 | 62,078 |
Income tax expense/(benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 13,263 | 39,175 | -3,128 |
Net income/(loss) | ' | ' | ' | ' | ' | ' | ' | ' | 24,243 | 69,862 | 65,206 |
Equity distributed in excess of income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 25,200 | -49,617 | -167,226 |
Net income/(loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 49,443 | 20,245 | -102,020 |
Net loss from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | -4,353 | 21,023 | 0 |
Net income/(loss) applicable to Piper Jaffray Companies | ' | ' | ' | ' | ' | ' | ' | ' | $45,090 | $41,268 | ($102,020) |
Piper_Jaffray_Companies_Parent3
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities: | ' | ' | ' |
Net income/(loss) | $45,090 | $41,268 | ($102,020) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ' | ' | ' |
Share-based and deferred compensation | 21,598 | 20,641 | 22,803 |
Goodwill impairment | 0 | 0 | 120,298 |
Net cash provided by/(used in) operating activities | 46,560 | -211,782 | 205,333 |
Financing Activities: | ' | ' | ' |
Issuance/(repayment) of variable rate senior notes | 0 | 125,000 | 0 |
Increase/(decrease) in bank syndicated financing | 0 | -115,000 | -10,000 |
Repurchase of common stock | -71,462 | -47,164 | -26,529 |
Net cash provided by/(used in) financing activities | 1,401 | 234,277 | -162,691 |
Net increase in cash and cash equivalents | 18,312 | 20,347 | 34,808 |
Cash and cash equivalents at beginning of year | 105,371 | 85,024 | 50,216 |
Cash and cash equivalents at end of year | 123,683 | 105,371 | 85,024 |
Supplemental disclosures of cash flow information Cash received/(paid) during the year for: | ' | ' | ' |
Interest | -23,487 | -22,129 | -25,700 |
Income taxes | -745 | 4,961 | -14,982 |
Parent Company | ' | ' | ' |
Operating Activities: | ' | ' | ' |
Net income/(loss) | 45,090 | 41,268 | -102,020 |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ' | ' | ' |
Share-based and deferred compensation | 60 | 240 | 437 |
Goodwill impairment | 0 | 0 | 9,247 |
Equity distributed in excess of income of subsidiaries | -25,200 | 49,617 | 167,226 |
Net cash provided by/(used in) operating activities | 19,950 | 91,125 | 74,890 |
Financing Activities: | ' | ' | ' |
Issuance/(repayment) of variable rate senior notes | 0 | 125,000 | 0 |
Increase/(decrease) in bank syndicated financing | 0 | -115,000 | -10,000 |
Advances to subsidiaries | 35,246 | -76,481 | -51,916 |
Repurchase of common stock | -55,929 | -38,068 | -5,994 |
Net cash provided by/(used in) financing activities | -20,683 | -104,549 | -67,910 |
Net increase in cash and cash equivalents | -733 | -13,424 | 6,980 |
Cash and cash equivalents at beginning of year | 1,069 | 14,493 | 7,513 |
Cash and cash equivalents at end of year | 336 | 1,069 | 14,493 |
Supplemental disclosures of cash flow information Cash received/(paid) during the year for: | ' | ' | ' |
Interest | -5,596 | -5,741 | -5,361 |
Income taxes | ($13,263) | ($39,175) | $3,128 |
Quarterly_Information_unaudite2
Quarterly Information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | $193,893 | $134,506 | $106,520 | $115,312 | $147,164 | $135,900 | $107,417 | $117,566 | $550,231 | $508,047 | $452,803 | |||
Interest expense | 6,317 | 6,192 | 6,748 | 5,779 | 6,253 | 4,395 | 4,319 | 4,128 | 25,036 | 19,095 | 20,720 | |||
Net revenues | 187,576 | 128,314 | 99,772 | 109,533 | 140,911 | 131,505 | 103,098 | 113,438 | 525,195 | 488,952 | 432,083 | |||
Non-interest expenses | 145,524 | 116,254 | 96,439 | 91,365 | 118,129 | 106,153 | 97,443 | 98,216 | 449,582 | 419,941 | 512,272 | |||
Income from continuing operations before income tax expense | 42,052 | 12,060 | 3,333 | 18,168 | 22,782 | 25,352 | 5,655 | 15,222 | 75,613 | 69,011 | -80,189 | |||
Income tax expense | 10,260 | 2,886 | 1,644 | 5,600 | 7,422 | 10,194 | -5,699 | 7,553 | 20,390 | 19,470 | 9,120 | |||
Net income from continuing operations | 31,792 | 9,174 | 1,689 | 12,568 | 15,360 | 15,158 | 11,354 | 7,669 | 55,223 | 49,541 | -89,309 | |||
Loss from discontinued operations, net of tax | -818 | -1,529 | -1,871 | -521 | -3,741 | 5,171 | -3,934 | -3,303 | -4,739 | -5,807 | -11,248 | |||
Net income/(loss) | 30,974 | 7,645 | -182 | 12,047 | 11,619 | 20,329 | 7,420 | 4,366 | 50,484 | 43,734 | -100,557 | |||
Net income applicable to noncontrolling interests | 3,840 | 2,323 | -2,670 | 1,901 | -205 | 665 | 569 | 1,437 | 5,394 | 2,466 | 1,463 | |||
Net income/(loss) applicable to Piper Jaffray Companies | 27,134 | 5,322 | 2,488 | 10,146 | 11,824 | 19,664 | 6,851 | 2,929 | 45,090 | 41,268 | -102,020 | |||
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders | 24,445 | 4,826 | 2,266 | 8,966 | 10,198 | 16,840 | 5,890 | 2,480 | 40,596 | [1] | 35,335 | [1] | -102,020 | [1],[2] |
Amounts applicable to Piper Jaffray Companies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income/(loss) from continuing operations | 27,952 | 6,851 | 4,359 | 10,667 | 15,565 | 14,493 | 10,785 | 6,232 | 49,829 | 47,075 | -90,772 | |||
Net loss from discontinued operations | ($818) | ($1,529) | ($1,871) | ($521) | ($3,741) | $5,171 | ($3,934) | ($3,303) | ($4,739) | ($5,807) | ($11,248) | |||
Earnings/(loss) per basic common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income from continuing operations | $1.75 | $0.42 | $0.25 | $0.60 | $0.88 | $0.82 | $0.58 | $0.33 | $2.98 | $2.58 | ($5.79) | |||
Loss from discontinued operations | ($0.05) | ($0.09) | ($0.11) | ($0.03) | ($0.21) | $0.29 | ($0.21) | ($0.17) | ($0.28) | ($0.32) | ($0.72) | |||
Earnings per basic common share | $1.70 | $0.33 | $0.15 | $0.58 | $0.67 | $1.11 | $0.37 | $0.15 | $2.70 | $2.26 | ($6.51) | |||
Earnings/(loss) per diluted common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income from continuing operations | $1.75 | $0.42 | $0.25 | $0.60 | $0.88 | $0.82 | $0.58 | $0.33 | $2.98 | $2.58 | ($5.79) | |||
Loss from discontinued operations | ($0.05) | ($0.09) | ($0.11) | ($0.03) | ($0.21) | $0.29 | ($0.21) | ($0.17) | ($0.28) | ($0.32) | ($0.72) | |||
Earnings per diluted common share | $1.70 | $0.33 | $0.15 | $0.57 | $0.67 | $1.11 | $0.37 | $0.15 | $2.70 | $2.26 | ($6.51) | [3] | ||
Weighted average number of common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic | 14,378 | 14,641 | 15,621 | 15,582 | 15,253 | 15,210 | 15,932 | 16,072 | 15,046 | 15,615 | 15,672 | |||
Diluted | 14,397 | 14,626 | 15,626 | 15,610 | 15,256 | 15,210 | 15,932 | 16,072 | 15,061 | 15,616 | 15,672 | [3] | ||
[1] | Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders for diluted and basic EPS may differ under the two-class method as a result of adding the effect of the assumed exercise of stock options to dilutive shares outstanding, which alters the ratio used to allocate earnings to Piper Jaffray Companies’ common shareholders and participating securities for purposes of calculating diluted and basic EPS. | |||||||||||||
[2] | No allocation of income was made due to loss position. | |||||||||||||
[3] | Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred. |