Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PJC | ||
Entity Registrant Name | Piper Jaffray Companies | ||
Entity Central Index Key | 1,230,245 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, shares outstanding | 15,199,699 | ||
Entity Common Stock, shares outstanding held by non-affiliates | 14,263,651 | ||
Entity Public Float | $ 855 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 33,793 | $ 41,359 |
Cash and cash equivalents segregated for regulatory purposes | 0 | 29,015 |
Receivables: | ||
Customers | 0 | 31,917 |
Brokers, dealers and clearing organizations | 145,394 | 212,730 |
Securities purchased under agreements to resell | 0 | 159,697 |
Financial instruments and other inventory positions owned | 663,330 | 464,610 |
Financial instruments and other inventory positions owned and pledged as collateral | 720,047 | 594,361 |
Total financial instruments and other inventory positions owned | 1,383,377 | 1,058,971 |
Fixed assets (net of accumulated depreciation and amortization of $55,944 and $58,308, respectively) | 25,179 | 25,343 |
Goodwill | 81,855 | 196,218 |
Intangible assets (net of accumulated amortization of $85,417 and $70,017, respectively) | 22,834 | 37,234 |
Investments | 176,212 | 168,057 |
Net deferred income tax assets | 101,205 | 97,833 |
Other assets | 54,834 | 67,129 |
Total assets | 2,024,683 | 2,125,503 |
Liabilities and Shareholders' Equity | ||
Short-term financing | 289,937 | 418,832 |
Senior notes | 125,000 | 175,000 |
Payables: | ||
Customers | 0 | 29,352 |
Brokers, dealers and clearing organizations | 19,392 | 40,842 |
Securities sold under agreements to repurchase | 0 | 15,046 |
Financial instruments and other inventory positions sold, but not yet purchased | 399,227 | 299,357 |
Accrued compensation | 400,092 | 288,255 |
Other liabilities and accrued expenses | 49,800 | 42,553 |
Total liabilities | 1,283,448 | 1,309,237 |
Shareholders' equity: | ||
Common stock, $0.01 par value: Shares authorized: 100,000,000 at December 31, 2017 and December 31, 2016; Shares issued: 19,512,914 at December 31, 2017 and 19,535,307 at December 31, 2016; Shares outstanding: 12,911,149 at December 31, 2017 and 12,391,970 at December 31, 2016 | 195 | 195 |
Additional paid-in capital | 791,970 | 788,927 |
Retained earnings | 176,270 | 257,188 |
Less common stock held in treasury, at cost: 6,601,765 at December 31, 2017 and 7,143,337 shares at December 31, 2016 | (273,824) | (284,461) |
Accumulated other comprehensive loss | (1,279) | (2,599) |
Total common shareholders' equity | 693,332 | 759,250 |
Noncontrolling interests | 47,903 | 57,016 |
Total shareholders' equity | 741,235 | 816,266 |
Total liabilities and shareholders' equity | $ 2,024,683 | $ 2,125,503 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization on fixed assets | $ 55,944 | $ 58,308 |
Accumulated amortization on intangible assets | $ 85,417 | $ 70,017 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,512,914 | 19,535,307 |
Common stock, shares outstanding | 12,911,149 | 12,391,970 |
Common stock held in treasury, shares | 6,601,765 | 7,143,337 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Revenues: | |||||
Investment banking | $ 633,837,000 | $ 490,340,000 | $ 414,118,000 | ||
Institutional brokerage | 154,563,000 | 161,186,000 | 154,889,000 | ||
Asset management | 56,835,000 | 60,672,000 | 75,017,000 | ||
Interest | 31,954,000 | 33,074,000 | 41,557,000 | ||
Investment income | 18,002,000 | 24,602,000 | 10,736,000 | ||
Total revenues | 895,191,000 | 769,874,000 | 696,317,000 | ||
Interest expense | 20,268,000 | 22,525,000 | 23,399,000 | ||
Net revenues | 874,923,000 | 747,349,000 | 672,918,000 | ||
Non-interest expenses: | |||||
Compensation and benefits | 617,635,000 | 510,612,000 | 421,733,000 | ||
Outside services | 38,012,000 | 39,289,000 | 36,218,000 | ||
Occupancy and equipment | 33,462,000 | 34,813,000 | 28,301,000 | ||
Communications | 29,891,000 | 29,626,000 | 23,762,000 | ||
Marketing and business development | 31,293,000 | 30,404,000 | 29,990,000 | ||
Trade execution and clearance | 8,166,000 | 7,651,000 | 7,794,000 | ||
Restructuring and integration costs | 0 | 10,206,000 | 10,652,000 | ||
Goodwill impairment | 114,363,000 | 82,900,000 | 0 | ||
Intangible asset amortization | 15,400,000 | 21,214,000 | 7,662,000 | ||
Back office conversion costs | 3,927,000 | 561,000 | 0 | ||
Other operating expenses | 12,097,000 | 10,947,000 | 20,383,000 | ||
Total non-interest expenses | 904,246,000 | 778,223,000 | 586,495,000 | ||
Income/(loss) before income tax expense/(benefit) | (29,323,000) | (30,874,000) | 86,423,000 | ||
Income tax expense/(benefit) | 30,229,000 | (17,128,000) | 27,941,000 | ||
Net income/(loss) | (59,552,000) | (13,746,000) | 58,482,000 | ||
Net income applicable to noncontrolling interests | 2,387,000 | 8,206,000 | 6,407,000 | ||
Net income/(loss) applicable to Piper Jaffray Companies | (61,939,000) | (21,952,000) | 52,075,000 | ||
Net income/(loss) applicable to Piper Jaffray Companies' common shareholders | $ (64,875,000) | [1] | $ (21,952,000) | [1] | $ 48,060,000 |
Earnings/(loss) per common share | |||||
Basic | $ (5.07) | $ (1.73) | $ 3.34 | ||
Diluted | (5.07) | [2] | (1.73) | [2] | 3.34 |
Dividends declared per common share | $ 1.25 | $ 0 | $ 0 | ||
Weighted average number of common shares outstanding | |||||
Basic | 12,807 | 12,674 | 14,368 | ||
Diluted | 12,978 | [2] | 12,779 | [2] | 14,389 |
[1] | No allocation of undistributed income was made due to loss position. See Note 22. | ||||
[2] | 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 Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | $ (59,552) | $ (13,746) | $ 58,482 |
Other comprehensive income/(loss), net of tax: | |||
Foreign currency translation adjustment | 1,320 | (2,410) | (566) |
Comprehensive income/(loss) | (58,232) | (16,156) | 57,916 |
Comprehensive income applicable to noncontrolling interests | 2,387 | 8,206 | 6,407 |
Comprehensive income/(loss) applicable to Piper Jaffray Companies | $ (60,619) | $ (24,362) | $ 51,509 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) | Total Common Shareholders' Equity | Noncontrolling Interests |
Beginning Balance (in shares) at Dec. 31, 2014 | 15,265,420 | |||||||
Beginning Balance at Dec. 31, 2014 | $ 969,460 | $ 195 | $ 735,415 | $ 227,065 | $ (143,140) | $ 377 | $ 819,912 | $ 149,548 |
Net income/(loss) | 58,482 | 0 | 0 | 52,075 | 0 | 0 | 52,075 | 6,407 |
Amortization/issuance of restricted stock | 43,237 | $ 0 | 43,237 | 0 | 0 | 0 | 43,237 | 0 |
Repurchase of common stock through share repurchase program (in shares) | (2,459,400) | |||||||
Repurchase of common stock through share repurchase program | (118,464) | $ 0 | 0 | 0 | (118,464) | 0 | (118,464) | 0 |
Issuance of treasury shares for options exercised (in shares) | 50,671 | |||||||
Issuance of treasury shares for options exercised | 1,856 | $ 0 | 96 | 0 | 1,760 | 0 | 1,856 | 0 |
Issuance of treasury shares for restricted stock vestings (in shares) | 734,080 | |||||||
Issuance of treasury shares for restricted stock vestings | $ 0 | $ 0 | (26,752) | 0 | (26,752) | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding (in shares) | (281,180) | (281,180) | ||||||
Repurchase of common stock for employee tax withholding | $ (14,461) | $ 0 | 0 | 0 | (14,461) | 0 | (14,461) | 0 |
Shares reserved/issued for director compensation (in shares) | 1,425 | |||||||
Shares reserved/issued for director compensation | 70 | $ 0 | 70 | 0 | 0 | 0 | 70 | 0 |
Other comprehensive income/(loss) | (566) | 0 | 0 | 0 | 0 | (566) | (566) | 0 |
Fund capital contributions/(distributions), net | (106,794) | $ 0 | 0 | 0 | 0 | 0 | 0 | (106,794) |
Ending Balance (in shares) at Dec. 31, 2015 | 13,311,016 | |||||||
Ending Balance at Dec. 31, 2015 | 832,820 | $ 195 | 752,066 | 279,140 | (247,553) | (189) | 783,659 | 49,161 |
Net income/(loss) | (13,746) | 0 | 0 | (21,952) | 0 | 0 | (21,952) | 8,206 |
Amortization/issuance of restricted stock | 65,311 | $ 0 | 65,311 | 0 | 0 | 0 | 65,311 | 0 |
Repurchase of common stock through share repurchase program (in shares) | (1,536,226) | |||||||
Repurchase of common stock through share repurchase program | (59,739) | $ 0 | 0 | 0 | (59,739) | 0 | (59,739) | 0 |
Issuance of treasury shares for options exercised (in shares) | 104,175 | |||||||
Issuance of treasury shares for options exercised | 4,557 | $ 0 | 411 | 0 | 4,146 | 0 | 4,557 | 0 |
Issuance of treasury shares for restricted stock vestings (in shares) | 750,241 | |||||||
Issuance of treasury shares for restricted stock vestings | $ 0 | $ 0 | (29,805) | 0 | (29,805) | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding (in shares) | (261,685) | (261,685) | ||||||
Repurchase of common stock for employee tax withholding | $ (11,120) | $ 0 | 0 | 0 | (11,120) | 0 | (11,120) | 0 |
Shares reserved/issued for director compensation (in shares) | 24,449 | |||||||
Shares reserved/issued for director compensation | 944 | $ 0 | 944 | 0 | 0 | 0 | 944 | 0 |
Other comprehensive income/(loss) | (2,410) | 0 | 0 | 0 | 0 | (2,410) | (2,410) | 0 |
Deconsolidation of investment partnerships | (9,415) | (9,415) | ||||||
Fund capital contributions/(distributions), net | 9,064 | $ 0 | 0 | 0 | 0 | 0 | 0 | 9,064 |
Ending Balance (in shares) at Dec. 31, 2016 | 12,391,970 | |||||||
Ending Balance at Dec. 31, 2016 | 816,266 | $ 195 | 788,927 | 257,188 | (284,461) | (2,599) | 759,250 | 57,016 |
Net income/(loss) | (59,552) | 0 | 0 | (61,939) | 0 | 0 | (61,939) | 2,387 |
Dividends | (18,979) | 0 | 0 | (18,979) | 0 | 0 | (18,979) | |
Dividends | 0 | |||||||
Amortization/issuance of restricted stock | 37,250 | $ 0 | 37,250 | 0 | 0 | 0 | 37,250 | 0 |
Repurchase of common stock through share repurchase program (in shares) | (36,936) | |||||||
Repurchase of common stock through share repurchase program | (2,498) | $ 0 | 0 | 0 | (2,498) | 0 | (2,498) | 0 |
Issuance of treasury shares for options exercised (in shares) | 26,149 | |||||||
Issuance of treasury shares for options exercised | 1,703 | $ 0 | 662 | 0 | 1,041 | 0 | 1,703 | 0 |
Issuance of treasury shares for restricted stock vestings (in shares) | 841,178 | |||||||
Issuance of treasury shares for restricted stock vestings | $ 0 | $ 0 | (35,077) | 0 | (35,077) | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding (in shares) | (314,542) | (314,542) | ||||||
Repurchase of common stock for employee tax withholding | $ (22,983) | $ 0 | 0 | 0 | (22,983) | 0 | (22,983) | 0 |
Shares reserved/issued for director compensation (in shares) | 3,330 | |||||||
Shares reserved/issued for director compensation | 208 | $ 0 | 208 | 0 | 0 | 0 | 208 | 0 |
Other comprehensive income/(loss) | 1,320 | 0 | 0 | 0 | 0 | 1,320 | 1,320 | 0 |
Fund capital contributions/(distributions), net | (11,500) | $ 0 | 0 | 0 | 0 | 0 | 0 | (11,500) |
Ending Balance (in shares) at Dec. 31, 2017 | 12,911,149 | |||||||
Ending Balance at Dec. 31, 2017 | $ 741,235 | $ 195 | $ 791,970 | $ 176,270 | $ (273,824) | $ (1,279) | $ 693,332 | $ 47,903 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||
Net income/(loss) | $ (59,552,000) | $ (13,746,000) | $ 58,482,000 |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | |||
Depreciation and amortization of fixed assets | 7,252,000 | 6,410,000 | 5,058,000 |
Deferred income taxes | (3,372,000) | (31,023,000) | (20,959,000) |
Stock-based compensation | 39,831,000 | 55,977,000 | 48,754,000 |
Goodwill impairment | 114,363,000 | 82,900,000 | 0 |
Amortization of intangible assets | 15,400,000 | 21,214,000 | 7,662,000 |
Amortization of forgivable loans | 6,740,000 | 8,785,000 | 6,377,000 |
Decrease/(increase) in operating assets: | |||
Cash and cash equivalents segregated for regulatory purposes | 29,015,000 | 52,007,000 | (56,011,000) |
Receivables: | |||
Customers | 31,917,000 | 9,272,000 | (31,509,000) |
Brokers, dealers and clearing organizations | 67,336,000 | (64,781,000) | 13,060,000 |
Securities purchased under agreements to resell | 159,697,000 | (24,591,000) | 171,182,000 |
Net financial instruments and other inventory positions owned | (224,536,000) | (7,835,000) | 126,458,000 |
Investments | (8,155,000) | (10,881,000) | (38,558,000) |
Other assets | 6,467,000 | (20,992,000) | 3,602,000 |
Payables: | |||
Customers | (29,352,000) | (8,012,000) | 24,036,000 |
Brokers, dealers and clearing organizations | (21,450,000) | (7,289,000) | 22,567,000 |
Securities sold under agreements to repurchase | (15,046,000) | (1,127,000) | 18,050,000 |
Accrued compensation | 109,108,000 | 30,396,000 | 2,178,000 |
Other liabilities and accrued expenses | 6,456,000 | (27,902,000) | 19,095,000 |
Net cash provided by operating activities | 232,119,000 | 48,782,000 | 379,524,000 |
Investing Activities: | |||
Business acquisitions, net of cash acquired | 0 | (72,709,000) | (11,739,000) |
Repayment of note receivable | 0 | 0 | 1,500,000 |
Purchases of fixed assets, net | (8,097,000) | (11,017,000) | (5,914,000) |
Net cash provided by/(used in) investing activities | (8,097,000) | (83,726,000) | (16,153,000) |
Financing Activities: | |||
Increase/(decrease) in short-term financing | (128,895,000) | (27,358,000) | 68,423,000 |
Issuance of senior notes | 0 | 0 | 125,000,000 |
Repayment of senior notes | (50,000,000) | 0 | (75,000,000) |
Decrease in securities sold under agreements to repurchase | 0 | (27,269,000) | (75,377,000) |
Payment of cash dividend | (18,947,000) | 0 | 0 |
Increase/(decrease) in noncontrolling interests | (11,500,000) | 9,064,000 | (106,794,000) |
Repurchase of common stock | (25,481,000) | (70,859,000) | (132,925,000) |
Excess tax benefit from stock-based compensation | 0 | 304,000 | 5,858,000 |
Proceeds from stock option exercises | 1,703,000 | 4,557,000 | 1,856,000 |
Net cash used in financing activities | (233,120,000) | (111,561,000) | (188,959,000) |
Currency adjustment: | |||
Effect of exchange rate changes on cash | 1,532,000 | (2,046,000) | (369,000) |
Net increase/(decrease) in cash and cash equivalents | (7,566,000) | (148,551,000) | 174,043,000 |
Cash and cash equivalents at beginning of year | 41,359,000 | 189,910,000 | 15,867,000 |
Cash and cash equivalents at end of year | 33,793,000 | 41,359,000 | 189,910,000 |
Supplemental disclosure of cash flow information – | |||
Interest | 19,917,000 | 23,171,000 | 24,668,000 |
Income taxes | $ 31,895,000 | $ 27,298,000 | $ 31,950,000 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
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; 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. and PJC Capital Management LLC, which consist of entities providing alternative asset management services; Piper Jaffray Financial Products Inc. and Piper Jaffray Financial Products II Inc., entities that facilitate derivative transactions; and other immaterial subsidiaries. Effective August 7, 2017, Piper Jaffray transitioned from a self clearing securities broker dealer to a fully disclosed clearing model. Pershing LLC ("Pershing") is Piper Jaffray's clearing broker dealer responsible for the clearance and settlement of firm and customer cash and security transactions. 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 investment banking services and institutional sales, trading and research services. Investment banking services include management of and participation in underwritings, financial advisory services and public finance activities. Revenues are generated through the receipt of advisory and financing fees. 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. Also, the Company generates revenue through strategic trading and investing activities, which focus on investments in municipal bonds, U.S. government agency securities, and merchant banking activities involving equity or debt investments in late stage private companies. The Company has created alternative asset management funds in merchant banking, energy and senior living in order to invest firm capital and to manage capital from outside investors. The Company receives management and performance fees for managing these funds. 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. 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 the Company's alternative asset management funds. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements and Other Guidance Guidance for Accounting Impacts of the Tax Cuts and Jobs Act In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, "Income Tax Accounting Implications of the Tax Cuts and Jobs Act" ("SAB 118"). SAB 118 provides guidance on the application of ASC 740 as it pertains to the Tax Cuts and Jobs Act (the "Tax Reform Act"). Under SAB 118, if a company's accounting for certain income tax effects of the Tax Reform Act is incomplete but a reasonable estimate for those effects can be determined, then the reasonable estimate should be reported as a provisional amount in the company's financial statements. The provisional amount would be subject to adjustment during a measurement period until the accounting under ASC 740 is complete. The measurement period would be limited to one year from the enactment date of December 22, 2017. SAB 118 also requires disclosures about the material financial reporting impacts of the Tax Reform Act for which accounting under ASC 740 is incomplete. See Note 25 for additional information on the Company's income taxes and the related impacts of the Tax Reform Act on its consolidated financial statements for the year ended December 31, 2017 . Adoption of New Accounting Standards Stock-Based Compensation In March 2016, the FASB issued Accounting Standard Update ("ASU") No. 2016-09, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 made targeted amendments to the accounting for share-based payments to employees. It became effective for the Company as of January 1, 2017. There was no impact to the Company's retained earnings upon adoption of ASU 2016-09. Under ASU 2016-09, the Company recognizes the income tax effects of stock awards in the income statement when the awards vest or are settled. For the year ended December 31, 2017 , this accounting change resulted in the recording of a $9.2 million tax benefit for stock awards vesting during the period. Prior to the adoption of this ASU, this amount would have been recorded directly to additional paid-in capital. In addition, the Company has elected to account for forfeitures of awards with service conditions as they occur. This will result in dividends originally charged against retained earnings for forfeited, unvested stock-based payment awards to be reclassified to compensation expense in the period in which the forfeiture occurs. Furthermore, tax impacts from the vesting of stock-based compensation are presented as an operating activity on the consolidated statements of cash flows on a prospective basis. Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, "Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 eliminates the requirement to calculate the implied fair value of goodwill (i.e., perform a hypothetical purchase price allocation) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The Company early adopted ASU 2017-04 effective July 1, 2017 on a prospective basis. Future Adoption of New Applicable Accounting Standards Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"), which supersedes current revenue recognition guidance, including most industry-specific guidance. ASU 2014-09, as amended, requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services, and also requires enhanced disclosures. The Company has identified its revenues and costs that are within the scope of the new guidance. The current broker dealer industry treatment of netting deal expenses with investment banking revenues will change under the new guidance. As a result of adopting ASU 2014-09, the Company will generally present deal expenses on a gross basis on the consolidated statements of operations, rather than the current presentation of netting deal expenses incurred for completed investment banking deals within revenues. This change will not impact earnings, however, the Company will report higher revenues and higher non-compensation expenses. Based on historical experience, the Company expects $20.0 million to $25.0 million of annual deal-related expenses. In addition, the Company expects to defer the recognition of performance fees on its merchant banking, energy and senior living alternative asset management funds until such fees are no longer subject to reversal, which will cause a delay in the recognition of these fees as revenue. The Company anticipates that its current methods of recognizing investment banking revenues will not be significantly impacted by the new guidance. The Company will adopt this guidance effective as of January 1, 2018 under the modified retrospective method, in which the cumulative effect of applying the standard will be recognized at the date of initial application. As of December 31, 2017 , the estimated cumulative effect that the Company will recognize is a decrease to retained earnings upon adoption of approximately $3.0 million , net of tax. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). The amendments in ASU 2016-01 address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for annual and interim periods beginning after December 15, 2017. Except for the early application guidance outlined in ASU 2016-01, early adoption is not permitted. The adoption of ASU 2016-01 will not have a material impact on the Company's results of operations, financial position or disclosures. Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability on the consolidated statements of financial position and disclose key information about leasing arrangements. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current U.S. GAAP. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. As of December 31, 2017, the Company had approximately 65 operating leases for office space with aggregate minimum lease commitments of $68.9 million . Upon adoption, this lease commitment will be reflected on the statement of financial condition as a right-of-use asset and a lease commitment liability. The Company is evaluating other service contracts which may include embedded leases, however, the Company does not expect these to be material. Upon adoption of ASU 2016-02, the Company does not expect material changes to the recognition of rent expense in its consolidated statements of operations. The impact of the new guidance on Piper Jaffray's net capital is expected to be minimal. Financial Instruments – Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). The new guidance requires an entity to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts as opposed to delaying recognition until the loss was probable of occurring. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for annual and interim periods beginning after December 15, 2018. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"). ASU 2016-15 clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The amendments in ASU 2016-15 are effective for annual and interim periods beginning after December 31, 2017 and should be applied retrospectively. The Company expects that only a limited number of amendments will impact the presentation of its consolidated statements of cash flows. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). Under ASU 2016-18, restricted cash will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the consolidated statements of cash flows. ASU 2016-18 is effective for annual and interim periods beginning after December 15, 2017 and will be applied retrospectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a variable interest entity ("VIE") or a voting interest entity. VIEs are entities in which (i) the total equity investment at risk is not sufficient to enable the entity to finance its activities independently or (ii) the at-risk equity holders do not have the normal characteristics of a controlling financial interest. A controlling financial interest in a VIE is present when an enterprise has one or more variable interests that have both (i) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The enterprise with a controlling financial interest is the primary beneficiary and consolidates the VIE. Voting interest entities lack one or more of the characteristics of a VIE. The usual condition for a controlling financial interest is ownership of a majority voting interest for a corporation or a majority of kick-out or participating rights for a limited partnership. 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's investment is accounted for under the equity method of accounting. 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. Piper Jaffray is a registered broker dealer subject to Rule 15c3-3 of the Securities Exchange Act of 1934, which requires broker dealers carrying customer accounts to maintain cash or qualified securities in a segregated reserve account for the exclusive benefit of its customers. Subsequent to transitioning to a fully disclosed clearing model in 2017, Piper Jaffray no longer carries customer accounts and is no longer subject to Rule 15c3-3. Customer Transactions As discussed in Note 1 , Piper Jaffray transitioned from a self clearing securities broker dealer to a fully disclosed clearing model in 2017. Pershing is Piper Jaffray's clearing broker dealer responsible for the clearance and settlement of firm and customer cash and security transactions. Customer securities transactions are recorded on a settlement date basis, while the related revenues and expenses are recorded on a trade-date basis. Prior to transitioning to Pershing, customer receivables and payables included amounts related to both customer cash and margin transactions clearing through Piper Jaffray. 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 Effective August 7, 2017, Pershing is responsible for the clearance and settlement of firm and customer cash and security transactions. 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 municipal bond fund are recorded on a gross basis. Collateralized Securities Transactions Subsequent to transitioning to a fully disclosed clearing model on August 7, 2017, the Company no longer enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, and securities borrowed and loaned transactions. Prior to August 7, 2017, securities purchased under agreements to resell and securities sold under agreements to repurchase were carried at the contractual amounts at which the securities would be subsequently resold or repurchased, including accrued interest. It was the Company's policy to take possession or control of securities purchased under agreements to resell at the time these agreements were entered into. The counterparties to these agreements were typically primary dealers of U.S. government securities and major financial institutions. Collateral was valued daily, and additional collateral was obtained from or refunded to counterparties when appropriate. Securities borrowed and loaned resulted from transactions with other broker dealers or financial institutions and were recorded at the amount of cash collateral advanced or received. As of December 31, 2016, 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 required the Company to deposit cash or other collateral with the lender. Securities loaned transactions required the borrower to deposit cash with the Company. The Company monitored the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. Interest was accrued on securities borrowed and loaned transactions and 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 (including securities with extended settlements and derivative contracts) 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), including securities with extended settlements, 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 Measurement – Definition and Hierarchy – Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 820, "Fair Value Measurement," ("ASC 820") defines fair value as the amount at which an instrument could be exchanged in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy 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 observability 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. 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, 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. Level III – Instruments that have little to no pricing observability as of the report date. These financial instruments are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Valuation 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. 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. 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 ten years 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. See Note 13 for additional information on the Company's goodwill impairment testing. Intangible assets with determinable lives consist of customer relationships, the Simmons & Company International trade name, and non-competition agreements that are amortized over their original estimated useful lives ranging from one to ten years. The pattern of amortization reflects the timing of the realization of the economic benefits of such intangible assets. 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 investments include equity investments in private companies and partnerships, investments in registered mutual funds, warrants of public and private companies and private company debt. Equity investments in private companies are accounted for at fair value, as required by accounting guidance or 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, or at cost. Registered mutual funds are accounted for at fair value. Company-owned warrants with a cashless exercise option are valued at fair value. Private company debt investments are recorded at fair value, as required by accounting guidance, or at amortized cost, net of any unamortized premium or discount. Other Assets Other assets include receivables and prepaid expenses. Receivables include fee receivables, accrued interest, secured loan 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 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 for completed deals. 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 and included in other liabilities and accrued expenses on the consolidated statements of financial condition. 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 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 financing and its 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. Subsequent to transitioning to a fully disclosed clearing model, the Company no longer engages in securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned activities. Investment Income – Investment income includes realized and unrealized gains and losses from the Company's merchant banking, energy, senior living 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 stock-based awards that do not require future service are recognized in the year in which the awards were deemed to be earned. Stock-based awards that require future service are amortized over the relevant service period. Forfeitures of awards with service conditions are accounted for when they occur. See Note 21 for additional information on the Company's accounting for stock-based compensation. 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. No allocation of undistributed earnings is made for periods in which a loss is incurred. Distributed earnings (e.g., dividends) are 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 and restricted stock units. Unvested stock-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 stock-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 dividends, or the dividends are forfeitable until vested. Forfeitable dividends are accrued and recorded as a payable until shares vest. 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 period-end rates of exchange. The gains or losses resulting from translating foreign currency financial statements are included in other comprehensive income/(loss). Gains or losses resulting from foreign currency transactions are included in net income/(loss). 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 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. |
Acquisition of Simmons & Compan
Acquisition of Simmons & Company International | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition of Simmons & Company International | Acquisition of Simmons & Company International On February 26, 2016 , the Company completed the acquisition of Simmons & Company International ("Simmons"), an employee-owned investment bank and broker dealer focused on the energy industry. The economic value of the acquisition was approximately $140.0 million . The Company acquired net assets with a fair value of $119.3 million as described below. As part of the purchase price, the Company issued 1,149,340 restricted shares valued at $48.2 million as equity consideration on the acquisition date. Employees must fulfill service requirements in exchange for the rights to the shares. Compensation expense will be amortized on a straight-line basis over the requisite service period of one or three years. As of December 31, 2017 , the Company had $10.7 million of remaining compensation expense related to these restricted shares. The fair value of the restricted stock was determined using the market price of the Company's common stock on the date of the acquisition. The Company also entered into acquisition-related compensation arrangements with certain employees of $20.6 million which consisted of cash ( $9.0 million ) and restricted stock ( $11.6 million ) for retention purposes. Compensation expense related to these arrangements is amortized on a straight-line basis over the requisite service period of three years . Additional cash compensation may be available to certain investment banking employees subject to exceeding an investment banking revenue threshold during the three year post-acquisition period to the extent they are employed by the Company at the time of payment. Amounts estimated to be payable related to this performance award plan will be recorded as compensation expense on the consolidated statements of operations over the requisite performance period of three years . As of December 31, 2017 , the Company had accrued $31.3 million related to this performance award plan, of which $27.0 million and $4.3 million was recorded as compensation expense in 2017 and 2016, respectively. The acquisition was accounted for pursuant to FASB Accounting Standards Codification Topic 805, "Business Combinations." Accordingly, the purchase price was allocated to the acquired assets and liabilities assumed based on their estimated fair values as of the acquisition date. 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 $60.7 million of goodwill on its consolidated statements of financial condition, of which $59.4 million is expected to be deductible for income tax purposes. In management's opinion, the goodwill represents the reputation and operating expertise of Simmons. Identifiable intangible assets purchased by the Company consisted of customer relationships and the Simmons trade name with acquisition-date fair values of $17.5 million and $9.1 million , respectively. Transaction costs of $0.9 million were incurred for the year ended December 31, 2016 , and are included in restructuring and integration costs on the consolidated statements of operations. The following table summarizes the estimated fair value of assets acquired and liabilities assumed at the date of the acquisition: (Dollars in thousands) Assets: Cash and cash equivalents $ 47,201 Fixed assets 1,868 Goodwill 60,737 Intangible assets 26,638 Investments 980 Other assets 5,071 Total assets acquired 142,495 Liabilities: Accrued compensation 15,387 Other liabilities and accrued expenses 7,814 Total liabilities assumed 23,201 Net assets acquired $ 119,294 Simmons' results of operations have been included in the Company's consolidated financial statements prospectively beginning on the date of acquisition. The acquisition has been fully integrated with the Company's existing operations. Accordingly, post-acquisition revenues and net income are not discernible. |
Financial Instruments and Other
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments Owned and Sold, 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 December 31, December 31, (Dollars in thousands) 2017 2016 Financial instruments and other inventory positions owned: Corporate securities: Equity securities $ 51,896 $ 6,363 Convertible securities 74,456 103,486 Fixed income securities 30,145 21,018 Municipal securities: Taxable securities 67,699 63,090 Tax-exempt securities 744,241 559,329 Short-term securities 62,251 35,175 Mortgage-backed securities 481 5,638 U.S. government agency securities 317,318 205,685 U.S. government securities 9,317 29,970 Derivative contracts 25,573 29,217 Total financial instruments and other inventory positions owned 1,383,377 1,058,971 Less noncontrolling interests (1) — (57,700 ) $ 1,383,377 $ 1,001,271 Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 101,517 $ 89,453 Fixed income securities 30,292 17,324 U.S. government agency securities 49,077 6,723 U.S. government securities 213,312 180,650 Derivative contracts 5,029 5,207 Total financial instruments and other inventory positions sold, but not yet purchased 399,227 299,357 Less noncontrolling interests (2) — (631 ) $ 399,227 $ 298,726 (1) Noncontrolling interests attributable to third party ownership in a consolidated municipal bond fund consist of $1.3 million of taxable municipal securities, $55.2 million of tax-exempt municipal securities, and $1.2 million of derivative contracts as of December 31, 2016 . (2) Noncontrolling interests attributable to third party ownership in a consolidated municipal bond fund consist of U.S. government securities as of December 31, 2016 . At December 31, 2017 and 2016 , financial instruments and other inventory positions owned in the amount of $720.0 million and $594.4 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, U.S. treasury bond futures and exchange traded options. Derivative Contract Financial Instruments The Company uses interest rate swaps, interest rate locks, credit default swap index contracts, U.S treasury bond futures and equity option contracts as a means to manage risk in certain inventory positions. The Company also enters into interest rate swaps to facilitate customer transactions. 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 and uses U.S. treasury bond futures to hedge interest rate and market value risks associated with its fixed income securities. These 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. 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. The total absolute notional contract amount, representing the absolute value of the sum of gross long and short derivative contracts, provides an indication of the volume of the Company's derivative activity and does not represent gains and losses. The following table presents the gross fair market value and the total absolute notional contract amount of the Company's outstanding derivative instruments, prior to counterparty netting, by asset or liability position: December 31, 2017 December 31, 2016 (Dollars in thousands) Derivative Derivative Notional Derivative Derivative Notional Derivative Category Assets (1) Liabilities (2) Amount Assets (1) Liabilities (2) Amount Interest rate Customer matched-book $ 239,224 $ 225,890 $ 2,819,006 $ 288,955 $ 272,819 $ 3,330,207 Trading securities 126 4,459 399,450 13,952 1,707 423,550 Credit default swap index Trading securities — — — — 127 7,470 Futures and equity options Trading securities 6 — 9,635 — — — $ 239,356 $ 230,349 $ 3,228,091 $ 302,907 $ 274,653 $ 3,761,227 (1) Derivative assets are included within financial instruments and other inventory positions owned on the consolidated statements of financial condition. (2) Derivative liabilities are included within financial instruments and other inventory positions sold, but not yet purchased on the consolidated statements of financial condition. 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 gains and losses on the related economically hedged inventory positions are not disclosed below as they are not in qualifying hedging relationships. The following table presents the Company's unrealized gains/(losses) on derivative instruments: (Dollars in thousands) Year Ended December 31, Derivative Category Operations Category 2017 2016 2015 Interest rate derivative contract Investment banking $ (2,608 ) $ (4,151 ) $ (2,274 ) Interest rate derivative contract Institutional brokerage (16,772 ) 19,613 534 Credit default swap index contract Institutional brokerage 4,482 4,317 12,228 Futures and equity option derivative contracts Institutional brokerage (17 ) 255 (252 ) $ (14,915 ) $ 20,034 $ 10,236 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, 2017 , the Company had $19.1 million of uncollateralized credit exposure with these counterparties (notional contract amount of $180.1 million ), including $14.9 million of uncollateralized credit exposure with one counterparty. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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. 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. 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. Certain illiquid taxable 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. 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. Mortgage-backed securities – Mortgage-backed securities are valued using observable trades, when available. Certain mortgage-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 mortgage-backed securities are categorized as Level II. Certain mortgage-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 mortgage-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 202 - 303 basis points ("bps") on spreads over U.S. treasury securities, or models based upon prepayment expectations ranging from 0% - 39% conditional prepayment rate ("CPR"). 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 swaps, interest rate locks, credit default swap index contracts, U.S treasury bond futures and equity option 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 included 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 and partnerships, investments in registered mutual funds, warrants of public and private companies and private company debt. Investments in 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. Investments 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 (e.g., multiples of revenue and earnings before interest, taxes, depreciation and amortization ("EBITDA")) 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 $14.1 million and $19.7 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, 2017 and 2016 , respectively. The realized and unrealized net gains from fair value changes included in earnings as a result of electing to apply the fair value option to certain financial assets were $1.6 million , $1.8 million and $1.3 million for the years ended December 31, 2017 , 2016 and 2015 , 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, 2017 : Valuation Weighted Technique Unobservable Input Range Average Assets: Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities Discounted cash flow Expected recovery rate (% of par) (2) 5 - 60% 19.4% Short-term securities Discounted cash flow Expected recovery rate (% of par) (2) 66 - 94% 91.0% Mortgage-backed securities: Collateralized by residential mortgages Discounted cash flow Credit default rates (3) 1 - 2% 1.5% Prepayment rates (4) 20.0% 20.0% Loss severity (3) 25 - 50% 26.9% Valuation yields (3) 5.0% 5.0% Derivative contracts: Interest rate locks Discounted cash flow Premium over the MMD curve (1) 7 - 15 bps 11.1 bps Investments at fair value: Equity securities in private companies Market approach Revenue multiple (2) 2 - 6 times 4.9 times EBITDA multiple (2) 11 - 15 times 12.8 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 - 16 bps 7.9 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, 2017 : 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 $ 1,863 $ 50,033 $ — $ — $ 51,896 Convertible securities — 74,456 — — 74,456 Fixed income securities — 30,145 — — 30,145 Municipal securities: Taxable securities — 67,699 — — 67,699 Tax-exempt securities — 743,541 700 — 744,241 Short-term securities — 61,537 714 — 62,251 Mortgage-backed securities — — 481 — 481 U.S. government agency securities — 317,318 — — 317,318 U.S. government securities 9,317 — — — 9,317 Derivative contracts 6 239,224 126 (213,783 ) 25,573 Total financial instruments and other inventory positions owned 11,186 1,583,953 2,021 (213,783 ) 1,383,377 Cash equivalents 3,782 — — — 3,782 Investments at fair value 39,504 — 126,060 (2) — 165,564 Total assets $ 54,472 $ 1,583,953 $ 128,081 $ (213,783 ) $ 1,552,723 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 91,934 $ 9,583 $ — $ — $ 101,517 Fixed income securities — 30,292 — — 30,292 U.S. government agency securities — 49,077 — — 49,077 U.S. government securities 213,312 — — — 213,312 Derivative contracts — 225,916 4,433 (225,320 ) 5,029 Total financial instruments and other inventory positions sold, but not yet purchased $ 305,246 $ 314,868 $ 4,433 $ (225,320 ) $ 399,227 (1) Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. (2) Noncontrolling interests of $44.4 million are attributable to third party ownership in consolidated merchant banking and senior living funds. The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2016 : 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 $ 82 $ 6,281 $ — $ — $ 6,363 Convertible securities — 103,486 — — 103,486 Fixed income securities — 21,018 — — 21,018 Municipal securities: Taxable securities — 60,404 2,686 — 63,090 Tax-exempt securities — 558,252 1,077 — 559,329 Short-term securities — 34,431 744 — 35,175 Mortgage-backed securities — 273 5,365 — 5,638 U.S. government agency securities — 205,685 — — 205,685 U.S. government securities 29,970 — — — 29,970 Derivative contracts — 288,955 13,952 (273,690 ) 29,217 Total financial instruments and other inventory positions owned 30,052 1,278,785 23,824 (273,690 ) 1,058,971 Cash equivalents 768 — — — 768 Investments at fair value 32,783 — 123,319 (2) — 156,102 Total assets $ 63,603 $ 1,278,785 $ 147,143 $ (273,690 ) $ 1,215,841 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 89,453 $ — $ — $ — $ 89,453 Fixed income securities — 17,324 — — 17,324 U.S. government agency securities — 6,723 — — 6,723 U.S. government securities 180,650 — — — 180,650 Derivative contracts — 273,166 1,487 (269,446 ) 5,207 Total financial instruments and other inventory positions sold, but not yet purchased $ 270,103 $ 297,213 $ 1,487 $ (269,446 ) $ 299,357 (1) Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. (2) Noncontrolling interests of $45.1 million are attributable to third party ownership in consolidated merchant banking and senior living funds. The Company's Level III assets were $128.1 million and $147.1 million , or 8.2 percent and 12.1 percent of financial instruments measured at fair value at December 31, 2017 and 2016 , 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 out of Level III for the year ended December 31, 2017 . There were no other significant transfers between Level I, Level II or Level III for the year ended December 31, 2017 . The following tables summarize the changes in fair value associated with Level III financial instruments held at the beginning or end of the periods presented: Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at December 31, Transfers Transfers gains/ gains/ December 31, December 31, (Dollars in thousands) 2016 Purchases Sales in out (losses) (1) (losses) (1) 2017 2017 (1) Assets: Financial instruments and other inventory positions owned: Municipal securities: Taxable securities $ 2,686 $ — $ (2,703 ) $ — $ — $ 716 $ (699 ) $ — $ — Tax-exempt securities 1,077 — (267 ) — — — (110 ) 700 (110 ) Short-term securities 744 — (25 ) — — 2 (7 ) 714 (7 ) Mortgage-backed securities 5,365 996 (5,608 ) — — 203 (475 ) 481 (45 ) Derivative contracts 13,952 109 (11,469 ) — — 11,360 (13,826 ) 126 126 Total financial instruments and other inventory positions owned 23,824 1,105 (20,072 ) — — 12,281 (15,117 ) 2,021 (36 ) Investments at fair value 123,319 31,362 (37,004 ) — (601 ) (2,585 ) 11,569 126,060 14,960 Total assets $ 147,143 $ 32,467 $ (57,076 ) $ — $ (601 ) $ 9,696 $ (3,548 ) $ 128,081 $ 14,924 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 1,487 $ (17,083 ) $ 211 $ — $ — $ 16,872 $ 2,946 $ 4,433 $ 4,433 Total financial instruments and other inventory positions sold, but not yet purchased $ 1,487 $ (17,083 ) $ 211 $ — $ — $ 16,872 $ 2,946 $ 4,433 $ 4,433 (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. Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at December 31, Transfers Transfers gains/ gains/ December 31, December 31, (Dollars in thousands) 2015 Purchases Sales in out (losses) (1) (losses) (1) 2016 2016 (1) Assets: Financial instruments and other inventory positions owned: Municipal securities: Taxable securities $ 5,816 $ — $ (3,700 ) $ — $ — $ 554 $ 16 $ 2,686 $ 16 Tax-exempt securities 1,177 — — — — — (100 ) 1,077 (100 ) Short-term securities 720 — — — — — 24 744 24 Mortgage-backed securities 121,124 26,519 (142,263 ) — — 3,495 (3,510 ) 5,365 69 Derivative contracts — — — — — — 13,952 13,952 13,952 Total financial instruments and other inventory positions owned 128,837 26,519 (145,963 ) — — 4,049 10,382 23,824 13,961 Investments at fair value 109,444 33,683 (28,343 ) — (9,088 ) 10,336 7,287 123,319 7,014 Total assets $ 238,281 $ 60,202 $ (174,306 ) $ — $ (9,088 ) $ 14,385 $ 17,669 $ 147,143 $ 20,975 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 7,148 $ (14,653 ) $ — $ — $ — $ 14,653 $ (5,661 ) $ 1,487 $ 1,487 Total financial instruments and other inventory positions sold, but not yet purchased $ 7,148 $ (14,653 ) $ — $ — $ — $ 14,653 $ (5,661 ) $ 1,487 $ 1,487 (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 the Company's 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 approximate fair value due to their liquid or short-term nature. Non-Recurring Fair Value Measurements The Company recorded non-cash goodwill impairment charges of $114.4 million and $82.9 million for the years ended December 31, 2017 and 2016, respectively, representing the full value of goodwill attributable to the asset management reporting unit. The fair value measurements used in the analyses were calculated using the income approach (discounted cash flow method) and market approach (earnings multiples of public company comparables). The discounted cash flow models were calculated using unobservable inputs, such as revenue and EBITDA forecasts, which are classified as Level III within the fair value hierarchy. See Note 13 for further discussion. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [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, or providing financing to senior living facilities, 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 structure and nature of each 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 and how the entity is financed. 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. Consolidated VIEs The Company's consolidated VIEs at December 31, 2017 include certain alternative asset management funds in which the Company has an investment and, as the managing partner, is deemed to have both the power to direct the most significant activities of the funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these funds. The following table presents information about the carrying value of the assets and liabilities of the VIEs which are consolidated by the Company and included on the consolidated statements of financial condition at December 31, 2017 . The assets can only be used to settle the liabilities of the respective VIE, and the creditors of the VIEs do not have recourse to the general credit of the Company. One of these VIEs has $25.0 million of bank line financing available with an interest rate based on prime plus an applicable margin. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities are eliminated in consolidation. Alternative Asset (Dollars in thousands) Management Funds Assets: Receivables from brokers, dealers and clearing organizations $ 9,218 Financial instruments and other inventory positions owned and pledged as collateral 404,952 Investments 107,618 Other assets 4,205 Total assets $ 525,993 Liabilities: Short-term financing $ 239,963 Payables to brokers, dealers and clearing organizations 808 Financial instruments and other inventory positions sold, but not yet purchased 47,806 Other liabilities and accrued expenses 87,775 Total liabilities $ 376,352 The Company has investments in a grantor trust which was established as part of a nonqualified deferred compensation plan. The Company is the primary beneficiary of the grantor trust. Accordingly, the assets and liabilities of the grantor trust are consolidated by the Company on the consolidated statements of financial condition. See Note 21 for additional information on the nonqualified deferred compensation plan. Nonconsolidated VIEs The Company determined it is not the primary beneficiary of certain VIEs and accordingly does not consolidate them. These VIEs had net assets approximating $0.6 billion and $0.8 billion at December 31, 2017 and 2016 , respectively. The Company's exposure to loss from these VIEs is $6.4 million , which is the carrying value of its capital contributions recorded in investments on the consolidated statements of financial condition at December 31, 2017 . The Company had no liabilities related to these VIEs at December 31, 2017 and 2016 . 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, 2017 . |
Receivables from and Payables t
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | 12 Months Ended |
Dec. 31, 2017 | |
Brokers and Dealers [Abstract] | |
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | Receivables from and Payables to Brokers, Dealers and Clearing Organizations December 31, December 31, (Dollars in thousands) 2017 2016 Receivable arising from unsettled securities transactions $ 9,218 $ 132,724 Deposits paid for securities borrowed — 27,573 Receivable from clearing organizations 109,270 3,293 Deposits with clearing organizations 11,019 35,713 Receivable from brokers and dealers 12,041 10,988 Securities failed to deliver — 975 Other 3,846 1,464 Total receivables from brokers, dealers and clearing organizations $ 145,394 $ 212,730 December 31, December 31, (Dollars in thousands) 2017 2016 Payable arising from unsettled securities transactions $ 808 $ 13,948 Payable to clearing organizations — 15,893 Payable to brokers and dealers 18,584 7,958 Securities failed to receive — 3,043 Total payables to brokers, dealers and clearing organizations $ 19,392 $ 40,842 As discussed in Note 1 , Piper Jaffray transitioned from a self clearing securities broker dealer to a fully disclosed clearing model in 2017. Under the Company's fully disclosed clearing agreement, the majority of its securities inventories and all of its customer activities are held by or cleared through Pershing. The Company has also established an arrangement to obtain financing from Pershing related to the majority of its trading activities. Financing under this arrangement is secured primarily by securities, and collateral limitations could reduce the amount of funding available under this arrangement. The funding is at the discretion of Pershing and could be denied. The Company's clearing arrangement activities are recorded net from trading activity. The Company's fully disclosed clearing agreement includes a covenant requiring Piper Jaffray to maintain excess net capital of $120 million . 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, prior to transitioning to a fully disclosed clearing model. |
Receivables from and Payables16
Receivables from and Payables to Customers | 12 Months Ended |
Dec. 31, 2017 | |
Receivables From Payables To Customers [Abstract] | |
Receivables from and Payables to Customers | Receivables from and Payables to Customers Effective August 7, 2017, Pershing is Piper Jaffray's clearing broker dealer responsible for the clearance and settlement of customer cash and security transactions. December 31, December 31, (Dollars in thousands) 2017 2016 Cash accounts $ — $ 29,610 Margin accounts — 2,307 Total receivables from customers $ — $ 31,917 Securities owned by customers were previously held as collateral for margin loan receivables. This collateral is not reflected on the consolidated financial statements. Margin loan receivables earned interest at floating interest rates based on prime rates. December 31, December 31, (Dollars in thousands) 2017 2016 Cash accounts $ — $ 14,416 Margin accounts — 14,936 Total payables to customers $ — $ 29,352 Payables to customers primarily comprise cash balances in customer accounts consisting of customer funds pending settlement of securities transactions and customer funds on deposit, prior to transitioning to a fully disclosed clearing model. Except for amounts arising from customer short sales, all amounts payable to customers were subject to withdrawal by customers upon their request. |
Collateralized Securities Trans
Collateralized Securities Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Repurchase Agreements [Abstract] | |
Collateralized Securities Transactions | Collateralized Securities Transactions As discussed in Note 1 , Piper Jaffray transitioned from a self clearing securities broker dealer to a fully disclosed clearing model in the third quarter of 2017. The Company's current short-term financing and prior customer securities activities involve the Company using securities as collateral. In the event that the counterparty did not meet its contractual obligation to return securities used as collateral (e.g., pursuant to the terms of a repurchase agreement), or customers did not deposit additional securities or cash for margin when required, the Company was exposed to the risk of reacquiring the securities or selling the securities at unfavorable market prices in order to satisfy its obligations. The Company controlled 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 uses unaffiliated third party custodians to administer the underlying collateral for certain of its short-term financings 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. Prior to transitioning to a fully disclosed clearing model, the Company obtained 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 $192.2 million at December 31, 2016 , of which $185.2 million had been pledged or otherwise transferred to satisfy its commitments under financial instruments and other inventory positions sold, but not yet purchased. 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. The Company had no outstanding securities lending arrangements as of December 31, 2017 or 2016 . See Note 5 for information related to the Company's offsetting of derivative contracts. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments The Company's investments include investments in private companies and partnerships, registered mutual funds, warrants of public and private companies and private company debt. December 31, December 31, (Dollars in thousands) 2017 2016 Investments at fair value $ 165,564 $ 156,102 Investments at cost 2,416 2,755 Investments accounted for under the equity method 8,232 9,200 Total investments 176,212 168,057 Less investments attributable to noncontrolling interests (1) (44,397 ) (45,123 ) $ 131,815 $ 122,934 (1) Noncontrolling interests are attributable to third party ownership in consolidated merchant banking and senior living funds. At December 31, 2017 , investments carried on a cost basis had an estimated fair market value of $4.1 million . Because valuation estimates were based upon management's judgment, 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 the Company's 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. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets December 31, December 31, (Dollars in thousands) 2017 2016 Fee receivables $ 20,884 $ 22,840 Accrued interest receivables 6,981 9,259 Forgivable loans, net 7,452 9,307 Prepaid expenses 6,769 6,363 Secured loan receivables 2,975 6,236 Other 9,773 13,124 Total other assets $ 54,834 $ 67,129 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Capital Asset (Dollars in thousands) Markets Management Total Goodwill Balance at December 31, 2015 $ 21,132 $ 196,844 $ 217,976 Goodwill acquired 60,723 419 61,142 Impairment charge — (82,900 ) (82,900 ) Balance at December 31, 2016 $ 81,855 $ 114,363 $ 196,218 Impairment charge — (114,363 ) (114,363 ) Balance at December 31, 2017 $ 81,855 $ — $ 81,855 Intangible assets Balance at December 31, 2015 $ 8,256 $ 22,274 $ 30,530 Intangible assets acquired 26,651 1,267 27,918 Amortization of intangible assets (15,587 ) (5,627 ) (21,214 ) Balance at December 31, 2016 $ 19,320 $ 17,914 $ 37,234 Intangible assets acquired — 1,000 1,000 Amortization of intangible assets (10,178 ) (5,222 ) (15,400 ) Balance at December 31, 2017 $ 9,142 $ 13,692 $ 22,834 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 further analysis is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform a two-step impairment test, which requires management to make judgments in determining what assumptions to use in the calculation. The first step requires a comparison of the fair value of the reporting unit to its carrying value, including allocated goodwill. The estimated fair value of the reporting unit is derived based on valuation techniques that a market participant would use. The Company estimates the fair value of the reporting unit using the income approach (discounted cash flow method) and market approach (earnings and/or transaction multiples). As discussed in Note 3 , the Company adopted ASU 2017-04 effective July 1, 2017. ASU 2017-04 eliminates the second step from the goodwill impairment test. Accordingly, the Company will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The Company identified impairment indicators in the third quarter of 2017 related to the asset management reporting unit resulting from declining profitability and performed an interim goodwill impairment test as of July 31, 2017, which resulted in a non-cash goodwill impairment charge of $114.4 million . The fair value of the asset management reporting unit was calculated using the income approach (discounted cash flow method based on revenue and EBITDA forecasts) and market approach (earnings multiples of comparable public companies). The Company performed its annual goodwill impairment testing for its capital markets reporting unit as of October 31, 2017, which resulted in no impairment. The Company concluded there was a $82.9 million non-cash goodwill impairment charge in 2016 related to the asset management reporting unit. The annual goodwill impairment testing for 2016 resulted in no impairment associated with the capital markets reporting unit. The Company concluded there was no goodwill impairment in 2015 . The Company also evaluated its intangible assets (indefinite and definite-lived) and concluded there was no impairment in 2017 , 2016 and 2015 , respectively. The addition of goodwill and intangible assets during the year ended December 31, 2016 primarily related to the acquisition of Simmons, as discussed in Note 4 . Management identified $26.6 million of intangible assets, consisting of customer relationships ( $17.5 million ) and the Simmons trade name ( $9.1 million ), which are being amortized over a weighted average life of 1.6 years and 4.0 years , respectively. Intangible assets with determinable lives consist of customer relationships and the Simmons trade name. 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) 2018 $ 10,460 2019 8,001 2020 1,256 2021 258 Total $ 19,975 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets December 31, December 31, (Dollars in thousands) 2017 2016 Furniture and equipment $ 38,506 $ 37,712 Leasehold improvements 31,290 31,982 Software 11,327 13,957 Total 81,123 83,651 Accumulated depreciation and amortization (55,944 ) (58,308 ) $ 25,179 $ 25,343 For the years ended December 31, 2017 , 2016 and 2015 , depreciation and amortization of furniture and equipment, leasehold improvements and software totaled $7.3 million , $6.4 million and $5.1 million , respectively, and are included in occupancy and equipment expense on the consolidated statements of operations. |
Short-Term Financing
Short-Term Financing | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-Term Financing | Short-Term Financing Outstanding Balance Weighted Average Interest Rate December 31, December 31, December 31, December 31, (Dollars in thousands) 2017 2016 2017 2016 Commercial paper (secured) $ 49,974 $ 147,021 2.32 % 2.12 % Prime broker arrangements 239,963 271,811 2.23 % 1.49 % Total short-term financing $ 289,937 $ 418,832 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 currently issued under two separate programs, CP Series A and CP Series II A, and are secured by different inventory classes. CP Series III A was discontinued during the third quarter of 2017. As of December 31, 2017 , the weighted average maturity of outstanding CP Notes was 8 days . The CP Notes are interest bearing or sold at a discount to par with an interest rate based on LIBOR plus an applicable margin. CP Series II A includes a revised covenant that requires the Company's U.S. broker dealer subsidiary to maintain excess net capital of $100 million . The Company has established arrangements to obtain financing with prime brokers related to its municipal bond fund and convertible securities. Financing under these arrangements is primarily secured by municipal and convertible securities, and collateral limitations could reduce the amount of funding available under the arrangements. Prime broker financing activities are recorded net of receivables from trading activity. The funding is at the discretion of the prime brokers subject to a notice period. The Company has both committed and uncommitted short-term bank line financing available on a secured 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, 2017 consisted of a one -year $200 million committed revolving credit facility with U.S. Bank, N.A., which was renewed in December 2017. 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 minimum net capital of $120 million , and the unpaid principal amount of all advances under this facility will be due on December 14, 2018 . The Company pays a nonrefundable commitment fee on the unused portion of the facility on a quarterly basis. At December 31, 2017 , the Company had no advances against this line of credit. The Company's uncommitted secured line at December 31, 2017 totaled $85 million and is 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 line is subject to approval by the bank each time an advance is requested and may be denied. At December 31, 2017 , the Company had no advances against this line of credit. |
Senior Notes
Senior Notes | 12 Months Ended |
Dec. 31, 2017 | |
Senior Notes [Abstract] | |
Senior Notes | Senior Notes The Company has entered into variable and fixed rate senior notes with certain entities advised by Pacific Investment Management Company ("PIMCO"). The following table presents the outstanding balance by note class: Outstanding Balance December 31, December 31, (Dollars in thousands) 2017 2016 Class A Notes $ — $ 50,000 Class C Notes 125,000 125,000 Total senior notes $ 125,000 $ 175,000 On October 8, 2015 , the Company entered into a second amended and restated note purchase agreement ("Second Amended and Restated Note Purchase Agreement") under which the Company issued $125 million of fixed rate Class C Notes. The Class C Notes bear interest at an annual fixed rate of 5.06 percent , are payable semi-annually and mature on October 9, 2018 . The unpaid principal amount is due in full on the maturity date and may not be prepaid by the Company. The variable rate Class A Notes were repaid by the Company upon maturity on May 31, 2017. The Second Amended and Restated Note Purchase Agreement includes customary events of default and 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. At December 31, 2017 , the Company was in compliance with all covenants. The senior notes are recorded at amortized cost which approximate fair value at December 31, 2017 . |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 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. Reasonably possible losses in excess of amounts accrued at December 31, 2017 are not material. 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 included within other operating expenses resulted in expense of $0.1 million , $0.3 million , and $9.7 million (primarily related to a municipal derivatives class action settlement paid in 2016) for the years ended December 31, 2017 , 2016 and 2015 , 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, 2017 are as follows: (Dollars in thousands) 2018 $ 14,509 2019 12,884 2020 12,214 2021 7,888 2022 6,544 Thereafter 14,872 Total $ 68,911 Total minimum rentals to be received from 2018 through 2022 under noncancelable subleases were $4.5 million at December 31, 2017 . Rental expense, including operating costs and real estate taxes, was $17.1 million , $17.3 million and $13.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Investment Commitments As of December 31, 2017 , the Company had commitments to invest approximately $72.5 million in limited partnerships or limited liability companies that make direct or indirect equity or debt investments in companies or provide financing for senior living facilities. Other Guarantees The Company is a member of numerous exchanges. 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 exchange, other members would be required to meet shortfalls. To mitigate these performance risks, the exchanges 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. 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, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company incurred the following pre-tax restructuring charges within the Capital Markets segment primarily in conjunction with its acquisition activities. Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Severance, benefits and outplacement costs $ — $ 6,608 $ 8,806 Vacated redundant leased office space — 1,320 — Contract termination costs — 1,026 546 Total pre-tax restructuring charges $ — $ 8,954 $ 9,352 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
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 out of funds legally available for that purpose. There are also restrictions on the payment of dividends as set forth in Note 24 . The Company's board of directors determines the declaration and payment of dividends on a quarterly basis, and is free to change the Company's dividend policy at any time. Piper Jaffray Companies did not pay cash dividends on its common stock in 2016 or 2015 . Dividends Beginning in 2017, the Company initiated the payment of a quarterly cash dividend to holders of its common stock, which includes unvested restricted shares. The Company declared and paid dividends of $1.25 per share, totaling $19.0 million , for the year ended December 31, 2017. In addition, the Company's board of directors approved a new dividend policy with the intention of returning a metric based on net income from the previous fiscal year. This will include an annual special cash dividend, payable in the first quarter of each year, beginning in 2018. On February 1, 2018 , the Company's board of directors declared both a quarterly and annual special cash dividend on its common stock of $0.375 and $1.62 per share, respectively, to be paid on March 15, 2018 , to shareholders of record as of the close of business on February 26, 2018 . 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. Share Repurchases Effective August 14, 2015, the Company's board of directors authorized the repurchase of up to $150.0 million in common shares through September 30, 2017 . In 2017 , the Company repurchased 36,936 shares at an average price of $67.62 per share for an aggregate purchase price of $2.5 million related to this authorization. During the year ended December 31, 2016 , the Company repurchased 1,536,226 shares at an average price of $38.89 per share for an aggregate purchase price of $59.7 million related to this authorization. During the year ended December 31, 2015 , the Company repurchased 2,459,400 shares at an average price of $48.17 per share for an aggregate purchase price of $118.5 million related to the August 2015 and prior authorizations. On August 10, 2017, the Company's board of directors authorized the repurchase of up to $150.0 million in common shares, effective from September 30, 2017 through September 30, 2019 . No repurchases have been made in conjunction with this authorization through December 31, 2017. 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 314,542 shares or $23.0 million ; 261,685 shares or $11.1 million , and 281,180 shares or $14.5 million of the Company's common stock for this purpose during the years ended December 31, 2017 , 2016 and 2015 , respectively. Issuance of Shares The Company issues common shares out of treasury stock as a result of employee restricted share vesting and exercise transactions as discussed in Note 21 . During the years ended December 31, 2017 , 2016 and 2015 , the Company issued 867,327 shares, 854,416 shares and 784,751 shares, respectively, related to these obligations. 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 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 merchant banking funds of $42.7 million and a senior living fund aggregating $5.2 million as of December 31, 2017 . As of December 31, 2016 , noncontrolling interests included the minority equity holders' proportionate share of the equity in a merchant banking fund of $35.0 million , a municipal bond fund with employee investors of $9.2 million and a senior living fund aggregating $12.8 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, 2017 , 2016 and 2015 . |
Compensation Plans
Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
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 2016 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, less forfeitures. The following table provides a summary of the Company's outstanding equity awards (in shares or units) as of December 31, 2017 : Incentive Plan Restricted Stock Annual grants 903,821 Sign-on grants 240,424 1,144,245 Inducement Plan Restricted Stock 260,231 Total restricted stock related to compensation 1,404,476 Simmons Deal Consideration (1) 821,141 Total restricted stock outstanding 2,225,617 Incentive Plan Restricted Stock Units Leadership grants 244,772 (1) The Company issued restricted stock with service conditions as part of deal consideration for the acquisition of Simmons. See Note 4 for further discussion. 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 8.2 million shares of common stock ( 1.0 million shares remained available for future issuance under the Incentive Plan as of December 31, 2017 ). 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 requisite service period. The Company grants shares of restricted stock to employees as part of year-end compensation ("Annual Grants") and upon initial hiring or as a retention award ("Sign-on 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 2017 for its February 2018 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 one to five years . Employees forfeit unvested shares upon termination of employment and a reversal of compensation expense is recorded. 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 grants restricted stock units to its leadership team ("Leadership Grants"). In the fourth quarter of 2017, the compensation committee of the Company’s board of directors included defined retirement provisions in its Leadership Grants, beginning with the February 2018 grant. Certain grantees meeting defined age and service requirements will be fully vested in the awards as long as performance and post-termination obligations are met throughout the performance period. These grants are expensed in the period in which those awards are deemed to be earned, which is the calendar year preceding the February grant date. For example, the Company recognized compensation expense for retirement-eligible grantees in fiscal 2017 for its February 2018 Leadership Grant. 2017 Leadership Grant Restricted stock units granted in 2017 will vest and convert to shares of common stock at the end of the performance period only if the Company satisfies predetermined performance and/or market conditions over the 36 -month performance period from January 1, 2017 through December 31, 2019. Under the terms of the award, the number of units that will actually vest and convert to shares will be based on the extent to which the Company achieves specified targets during the performance period. The maximum payout leverage under this grant is 150 percent . Up to 75 percent of the award can be earned based on the Company achieving certain average adjusted return on equity targets, as defined in the terms of the award agreement. The fair value of this portion of the award was based on the closing price of the Company's common stock on the grant date. If the Company determines that it is probable that the performance condition will be achieved, compensation expense is amortized on a straight-line basis over the 36 -month performance period. The probability that the performance condition will be achieved is reevaluated each reporting period with changes in estimated outcomes accounted for using a cumulative effect adjustment to compensation expense. Compensation expense will be recognized only if the performance condition is met. Employees forfeit unvested share units upon termination of employment with a corresponding reversal of compensation expense. As of December 31, 2017 , the Company has determined that the performance condition is probable of achieving 75 percent of the grant award. Up to 75 percent of the award can be earned based on the Company's total shareholder return relative to members of a predetermined peer group. The market condition must be met for the award to vest and compensation cost will be recognized regardless if the market condition is satisfied. Compensation expense is amortized on a straight-line basis over the 36 -month requisite service period. Employees forfeit unvested share units upon termination of employment with a corresponding reversal of compensation expense. For this portion of the award, the fair value on the grant date was determined using a Monte Carlo simulation with the following assumptions: Risk-free Expected Stock Grant Year Interest Rate Price Volatility 2017 1.62% 35.9% Because the market condition 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 assumption was determined using historical volatility, as correlation coefficients can only be developed through historical volatility. The risk-free interest rate was determined based on the three -year U.S. Treasury bond yield. Leadership Grants Prior to 2017 Restricted stock units granted prior to 2017 contain market condition criteria and will vest and convert to shares of common stock at the end of each 36 -month performance period only if the Company's stock performance 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's stock performance achieving specified targets during each performance period. Compensation expense is recognized over each 36 -month performance period. Up to 50 percent of these awards 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 awards can be earned based on the Company's total shareholder return. The fair value of the awards on the grant date was determined using a Monte Carlo simulation with the following assumptions: Risk-free Expected Stock Grant Year Interest Rate Price Volatility 2016 0.98% 34.9% 2015 0.90% 29.8% 2014 0.82% 41.3% 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 was ten years. The Company has not granted stock options since 2008, and all awards have been exercised or expired as of March 31, 2017. Inducement Plan The Company established the Inducement Plan in conjunction with the acquisition of Simmons. The Company granted $11.6 million ( 286,776 shares) in restricted stock under the Inducement Plan on May 15, 2016 . These shares cliff vest in three years . 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 compensation expense of $39.1 million , $54.1 million and $48.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, related to employee restricted stock and restricted stock unit awards. Forfeitures were $3.0 million , $1.4 million and $0.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The tax benefit related to stock-based compensation expense totaled $9.7 million , $14.2 million and $18.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The following table summarizes the changes in the Company's unvested restricted stock: Unvested Weighted Average Restricted Stock Grant Date (in Shares) Fair Value December 31, 2014 1,095,305 $ 36.51 Granted 783,758 51.08 Vested (575,716 ) 34.72 Canceled (15,432 ) 40.83 December 31, 2015 1,287,915 $ 46.20 Granted 2,359,672 41.87 Vested (623,961 ) 44.89 Canceled (149,509 ) 42.49 December 31, 2016 2,874,117 $ 43.12 Granted 248,749 77.78 Vested (717,782 ) 45.08 Canceled (179,467 ) 42.70 December 31, 2017 2,225,617 $ 46.40 The fair value of restricted stock that vested during the years ended December 31, 2017 , 2016 and 2015 was $32.4 million , $28.0 million and $20.0 million , respectively. The following table summarizes the changes in the Company's unvested restricted stock units: Unvested Weighted Average Restricted Grant Date Stock Units Fair Value December 31, 2014 405,826 $ 17.99 Granted 123,687 21.83 Vested (149,814 ) 12.12 Canceled (23,457 ) 12.12 December 31, 2015 356,242 $ 22.18 Granted 135,483 19.93 Vested (117,265 ) 21.32 Canceled — — December 31, 2016 374,460 $ 21.63 Granted 35,981 84.10 Vested (115,290 ) 23.42 Canceled (50,379 ) 31.73 December 31, 2017 244,772 $ 27.89 As of December 31, 2017 , there was $23.2 million of total unrecognized compensation cost related to restricted stock and restricted stock units expected to be recognized over a weighted average period of 1.3 years. The following table summarizes the changes in the Company's stock options: Weighted Average Weighted Remaining Options Average Contractual Term Aggregate Outstanding Exercise Price (in Years) Intrinsic Value December 31, 2014 217,873 $ 46.66 2.0 $ 3,066,839 Granted — — Exercised (50,671 ) 36.62 Canceled — — Expired (10,001 ) 39.62 December 31, 2015 157,201 $ 50.35 1.6 $ — Granted — — Exercised (104,175 ) 43.75 Canceled — — Expired (22,413 ) 59.83 December 31, 2016 30,613 $ 65.86 0.3 $ 203,291 Granted — — Exercised (26,149 ) 65.13 Canceled — — Expired (4,464 ) 70.13 December 31, 2017 — $ — 0 $ — Options exercisable at December 31, 2015 157,201 $ 50.35 1.6 $ — Options exercisable at December 31, 2016 30,613 $ 65.86 0.3 $ 203,291 Options exercisable at December 31, 2017 — $ — 0 $ — As of December 31, 2017 , there was no unrecognized compensation cost related to stock options expected to be recognized over future years. The intrinsic value of options exercised and the resulting tax benefit realized was $0.3 million and $0.1 million , respectively, for the year ended December 31, 2017 . For the year ended December 31, 2016 , the intrinsic value of options exercised and the resulting tax benefit realized was $2.0 million and $0.8 million , respectively. For the year ended December 31, 2015 , the intrinsic value of options exercised and the resulting tax benefit realized was $0.9 million and $0.3 million , 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 2018, 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 Plans The Company maintains various deferred compensation arrangements for employees. The nonqualified deferred compensation plan is an unfunded plan which allows certain highly compensated employees, at their election, to defer a percentage of their base salary, commissions and/or cash bonuses. The deferrals vest immediately and are non-forfeitable. The amounts deferred under this plan are held in a grantor trust. The Company invests, as a principal, in investments to economically hedge its obligation under the nonqualified deferred compensation plan. Investments in the grantor trust, consisting of mutual funds, totaled $31.5 million and $24.4 million as of December 31, 2017 and 2016 , respectively, and are included in investments on the consolidated statements of financial condition. The compensation deferred by the employees is expensed in the period earned. The deferred compensation liability was $31.6 million and $24.5 million as of December 31, 2017 and 2016 , respectively. Changes in the fair value of the investments made by the Company are reported in investment income and changes in the corresponding deferred compensation liability are reflected as compensation and benefits expense on the consolidated statements of operations. On August 9, 2017, the Company's board of directors approved the discontinuance of future deferral elections by participants for performance periods beginning after December 31, 2017. The Piper Jaffray Companies Mutual Fund Restricted Share Investment Plan is a fully funded 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 restricted mutual fund shares ("MFRS Awards") of investment funds. 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. MFRS Awards are owned by employee recipients (subject to the aforementioned vesting restrictions) and as such are not included on the consolidated statements of financial condition. 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 . The Company recorded compensation expense of $58.4 million , $17.5 million and $26.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, related to employee MFRS Awards. Total compensation cost includes year-end compensation for MFRS Awards and the amortization of sign-on MFRS Awards, less forfeitures. Forfeitures were $1.3 million for the year ended December 31, 2017 . Forfeitures were immaterial for the years ended December 31, 2016 and 2015 , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [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 and a tax-qualified retirement plan (the "Retirement Plan"). During the years ended December 31, 2017 , 2016 and 2015 , the Company incurred employee benefits expenses of $19.9 million , $17.6 million and $15.1 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 health plans contain 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, 2017 , 2016 and 2015 , the Company recognized expense of $12.0 million , $10.4 million and $9.1 million , respectively, in compensation and benefits expense 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
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. No allocation of undistributed earnings is made for periods in which a loss is incurred. Distributed earnings (e.g., dividends) are 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 receive dividends, or the dividends are forfeitable until vested. Diluted earnings per common share is calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive stock options and restricted stock units. The computation of earnings per share is as follows: Year Ended December 31, (Amounts in thousands, except per share data) 2017 2016 2015 Net income/(loss) applicable to Piper Jaffray Companies $ (61,939 ) $ (21,952 ) $ 52,075 Earnings allocated to participating securities (1) (2,936 ) — (4,015 ) Net income/(loss) applicable to Piper Jaffray Companies' common shareholders (2) $ (64,875 ) $ (21,952 ) $ 48,060 Shares for basic and diluted calculations: Average shares used in basic computation 12,807 12,674 14,368 Stock options — 15 21 Restricted stock units 171 90 — Average shares used in diluted computation 12,978 (3) 12,779 (3) 14,389 Earnings/(loss) per common share: Basic $ (5.07 ) $ (1.73 ) $ 3.34 Diluted $ (5.07 ) (3) $ (1.73 ) (3) $ 3.34 (1) Represents the allocation of distributed and undistributed earnings to participating securities. No allocation of undistributed earnings is made for periods in which a loss is incurred. Distributed earnings (e.g., dividends) are allocated to participating securities. Participating securities include all of the Company's unvested restricted shares. The weighted average participating shares outstanding were 2,349,476 ; 2,691,728 and 1,201,610 for the years ended December 31, 2017 , 2016 and 2015 , 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 and restricted stock units 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. Common shares of 2,225,617 and 2,874,117 were excluded from diluted EPS at December 31, 2017 and 2016, respectively, as the Company had a net loss for these years. The anti-dilutive effects from stock options and restricted stock units were immaterial for the years ended December 31, 2017 , 2016 and 2015 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
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. Segment assets are based on those directly associated with each segment, and include an allocation of certain assets based on the most relevant measures applicable, including headcount and other factors. The substantial majority of the Company's net revenues and long-lived assets are located in the U.S. Reportable segment financial results are as follows: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Capital Markets Investment banking Financing Equities $ 98,996 $ 71,161 $ 114,468 Debt 93,434 115,013 91,195 Advisory services 443,303 304,654 209,163 Total investment banking 635,733 490,828 414,826 Institutional sales and trading Equities 81,717 87,992 78,584 Fixed income 89,455 91,466 94,305 Total institutional sales and trading 171,172 179,458 172,889 Management and performance fees 5,566 6,363 4,642 Investment income 17,640 24,791 24,468 Long-term financing expenses (7,676 ) (9,136 ) (7,494 ) Net revenues 822,435 692,304 609,331 Operating expenses (1) 738,339 645,863 530,937 Segment pre-tax operating income $ 84,096 $ 46,441 $ 78,394 Segment pre-tax operating margin 10.2 % 6.7 % 12.9 % Continued on next page Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Asset Management Management and performance fees Management fees $ 51,269 $ 53,725 $ 70,167 Performance fees — 584 208 Total management and performance fees 51,269 54,309 70,375 Investment income/(loss) 1,219 736 (6,788 ) Net revenues 52,488 55,045 63,587 Operating expenses (1) 165,907 132,360 55,558 Segment pre-tax operating income/(loss) $ (113,419 ) $ (77,315 ) $ 8,029 Segment pre-tax operating margin (216.1 )% (140.5 )% 12.6 % Total Net revenues $ 874,923 $ 747,349 $ 672,918 Operating expenses (1) 904,246 778,223 586,495 Pre-tax operating income/(loss) $ (29,323 ) $ (30,874 ) $ 86,423 Pre-tax operating margin (3.4 )% (4.1 )% 12.8 % (1) Operating expenses include non-cash goodwill impairment charges of $114.4 million and $82.9 million for the years ended December 31, 2017 and 2016, respectively, related to the Asset Management segment, as well as intangible asset amortization as set forth in the table below: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Capital Markets $ 10,178 $ 15,587 $ 1,622 Asset Management 5,222 5,627 6,040 Total intangible asset amortization $ 15,400 $ 21,214 $ 7,662 Reportable segment assets are as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Capital Markets $ 1,933,050 $ 1,934,528 Asset Management 91,633 190,975 $ 2,024,683 $ 2,125,503 |
Net Capital Requirements and Ot
Net Capital Requirements and Other Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [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, Inc. ("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 $1.0 million . Advances to affiliates, repayment of subordinated debt, dividend payments and other equity withdrawals by Piper Jaffray are subject to certain approvals, notifications and other provisions of SEC and FINRA rules. At December 31, 2017 , net capital calculated under the SEC rule was $137.6 million , and exceeded the minimum net capital required under the SEC rule by $136.6 million . The Company's committed short-term credit facility and its senior notes include covenants requiring Piper Jaffray to maintain minimum net capital of $120 million . CP Notes issued under CP Series II A include a covenant that requires Piper Jaffray to maintain excess net capital of $100 million . The Company's fully disclosed clearing agreement with Pershing also includes a covenant requiring Piper Jaffray to maintain excess net capital of $120 million . Piper Jaffray Ltd. ("PJL"), a broker dealer subsidiary registered in the United Kingdom, is subject to the capital requirements of the Prudential Regulation Authority and the Financial Conduct Authority. As of December 31, 2017 , PJL was in compliance with the capital requirements of the Prudential Regulation Authority and the Financial Conduct Authority. Piper Jaffray Hong Kong Limited is licensed by the Hong Kong Securities and Futures Commission, which is subject to the liquid capital requirements of the Securities and Futures (Financial Resources) Rule promulgated under the Securities and Futures Ordinance. At December 31, 2017 , Piper Jaffray Hong Kong Limited was in compliance with the liquid capital requirements of the Hong Kong Securities and Futures Commission. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense/(benefit) 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 Tax Reform Act was enacted on December 22, 2017. ASC 740 requires companies to recognize the effect of the tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017. In accordance with SAB 118, the Company has made a reasonable estimate of the impact of the Tax Reform Act, and recorded a discrete item in its 2017 provisional income tax expense of $54.2 million . This amount reflects an estimated reduction of deferred tax assets as a result of the statutory federal rate decrease from 35 percent to 21 percent. The Company continues to evaluate its estimates surrounding the remeasurement of deferred tax assets. The components of income tax expense/(benefit) are as follows: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Current: Federal $ 27,611 $ 11,704 $ 33,818 State 5,550 2,454 7,030 Foreign 93 (703 ) 58 33,254 13,455 40,906 Deferred: Federal 5,783 (27,764 ) (11,620 ) State (7,554 ) (3,758 ) (1,901 ) Foreign (1,254 ) 939 556 (3,025 ) (30,583 ) (12,965 ) Total income tax expense/(benefit) $ 30,229 $ (17,128 ) $ 27,941 A reconciliation of federal income taxes at statutory rates to the Company's effective tax rates is as follows: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Federal income tax expense/(benefit) at statutory rates $ (10,263 ) $ (10,806 ) $ 30,248 Increase/(reduction) in taxes resulting from: Impact of the Tax Cuts and Jobs Act 54,154 — — State income taxes, net of federal tax benefit (791 ) (1,110 ) 3,155 Net tax-exempt interest income (5,040 ) (4,600 ) (4,299 ) Foreign jurisdictions tax rate differential 865 1,860 191 Change in valuation allowance (752 ) 362 — Vestings of stock awards (9,172 ) — — Income attributable to noncontrolling interests (835 ) (2,872 ) (2,243 ) Other, net 2,063 38 889 Total income tax expense/(benefit) $ 30,229 $ (17,128 ) $ 27,941 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, 2017 , no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of our foreign earnings to the U.S. 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 consisted of the following items: December 31, December 31, (Dollars in thousands) 2017 2016 Deferred tax assets: Deferred compensation $ 61,555 $ 79,230 Goodwill tax basis in excess of book basis 38,592 18,357 Net operating loss carryforwards 4,789 3,900 Liabilities/accruals not currently deductible 1,744 1,060 Other 3,296 5,474 Total deferred tax assets 109,976 108,021 Valuation allowance (159 ) (911 ) Deferred tax assets after valuation allowance 109,817 107,110 Deferred tax liabilities: Unrealized gains on firm investments 6,599 6,406 Fixed assets 1,813 2,075 Other 200 796 Total deferred tax liabilities 8,612 9,277 Net deferred tax assets $ 101,205 $ 97,833 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, 2014 $ 2,323 Additions based on tax positions related to the current year — Additions for tax positions of prior years — Reductions for tax positions of prior years (2,000 ) Settlements (200 ) Balance at December 31, 2015 $ 123 Additions based on tax positions related to the current year — Additions for tax positions of prior years — Reductions for tax positions of prior years — Settlements — Balance at December 31, 2016 $ 123 Additions based on tax positions related to the current year — Additions for tax positions of prior years 166 Reductions for tax positions of prior years — Settlements (123 ) Balance at December 31, 2017 $ 166 As of December 31, 2017 , approximately $0.2 million of the Company's unrecognized tax benefits would impact the annual effective rate, if recognized. The Company recognizes interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense. The Company had no accruals related to the payment of interest and penalties at December 31, 2017 , 2016 and 2015, 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 examination by U.S. federal tax authorities for years before 2014 and is not subject to examination by state and local or non-U.S. tax authorities for taxable years before 2013. The Company anticipates all of its uncertain income tax positions will be resolved within the next twelve months. |
Piper Jaffray Companies (Parent
Piper Jaffray Companies (Parent Company only) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Piper Jaffray Companies (Parent Company only) | Piper Jaffray Companies (Parent Company only) Condensed Statements of Financial Condition December 31, December 31, (Amounts in thousands) 2017 2016 Assets Cash and cash equivalents $ 2,348 $ 1,170 Investment in and advances to subsidiaries 827,158 941,215 Other assets 21,120 22,031 Total assets $ 850,626 $ 964,416 Liabilities and Shareholders' Equity Senior notes $ 125,000 $ 175,000 Accrued compensation 30,579 27,756 Other liabilities and accrued expenses 1,715 2,410 Total liabilities 157,294 205,166 Shareholders' equity 693,332 759,250 Total liabilities and shareholders' equity $ 850,626 $ 964,416 Condensed Statements of Operations Year Ended December 31, (Amounts in thousands) 2017 2016 2015 Revenues: Dividends from subsidiaries $ 120,102 $ 104,016 $ 37,649 Interest 1,125 994 650 Investment income/(loss) 4,060 1,835 (2,033 ) Total revenues 125,287 106,845 36,266 Interest expense 7,170 8,195 6,406 Net revenues 118,117 98,650 29,860 Non-interest expenses: Total non-interest expenses 4,936 4,505 3,487 Income before income tax expense and equity in income of subsidiaries 113,181 94,145 26,373 Income tax expense 35,589 27,952 9,191 Income of parent company 77,592 66,193 17,182 Equity in undistributed/(distributed in excess of) income of subsidiaries (139,531 ) (88,145 ) 34,893 Net income/(loss) $ (61,939 ) $ (21,952 ) $ 52,075 Condensed Statements of Cash Flows Year Ended December 31, (Amounts in thousands) 2017 2016 2015 Operating Activities: Net income/(loss) $ (61,939 ) $ (21,952 ) $ 52,075 Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Stock-based and deferred compensation 208 944 70 Equity in undistributed/(distributed in excess of) income of subsidiaries 139,531 88,145 (34,893 ) Net cash provided by operating activities 77,800 67,137 17,252 Investing Activities: Repayment of note receivable — — 1,500 Net cash provided by investing activities — — 1,500 Financing Activities: Issuance of senior notes — — 125,000 Repayment of senior notes (50,000 ) — (75,000 ) Advances from/(to) subsidiaries (5,177 ) (6,276 ) 49,560 Repurchase of common stock (2,498 ) (59,739 ) (118,464 ) Payment of cash dividend (18,947 ) — — Net cash used in financing activities (76,622 ) (66,015 ) (18,904 ) Net increase/(decrease) in cash and cash equivalents 1,178 1,122 (152 ) Cash and cash equivalents at beginning of year 1,170 48 200 Cash and cash equivalents at end of year $ 2,348 $ 1,170 $ 48 |
Quarterly Information (unaudite
Quarterly Information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (unaudited) | Quarterly Information (unaudited) 2017 Fiscal Quarter (Amounts in thousands, except per share data) First Second Third Fourth Total revenues $ 205,487 $ 204,007 $ 244,915 $ 240,782 Interest expense 4,958 6,262 4,348 4,700 Net revenues 200,529 197,745 240,567 236,082 Non-interest expenses 177,720 177,878 322,803 (1) 225,845 Income/(loss) before income tax expense/(benefit) 22,809 19,867 (82,236 ) 10,237 Income tax expense/(benefit) (395 ) 4,906 (31,423 ) 57,141 (4) Net income/(loss) 23,204 14,961 (50,813 ) (46,904 ) Net income/(loss) applicable to noncontrolling interests 2,929 1,388 (1,100 ) (830 ) Net income/(loss) applicable to Piper Jaffray Companies $ 20,275 $ 13,573 $ (49,713 ) (46,074 ) Net income/(loss) applicable to Piper Jaffray Companies' common shareholders $ 16,828 $ 11,522 $ (50,415 ) (2) $ (46,771 ) (2) Earnings/(loss) per common share Basic $ 1.33 $ 0.89 $ (3.91 ) $ (3.63 ) Diluted $ 1.31 $ 0.89 $ (3.91 ) (3) $ (3.63 ) (3) Dividends declared per common share $ 0.3125 $ 0.3125 $ 0.3125 $ 0.3125 Weighted average number of common shares Basic 12,594 12,826 12,898 12,906 Diluted 12,922 12,937 12,975 (3) 13,075 (3) (1) Includes a $114.4 million non-cash goodwill impairment charge. (2) No allocation of undistributed 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. (4) Includes a $54.2 million remeasurement of deferred tax assets due to a lower federal corporate rate resulting from the enactment of the Tax Reform Act. 2016 Fiscal Quarter (Amounts in thousands, except per share data) First Second Third Fourth Total revenues $ 159,601 $ 176,392 $ 206,276 $ 227,605 Interest expense 6,045 5,909 5,429 5,142 Net revenues 153,556 170,483 200,847 222,463 Non-interest expenses 150,114 163,974 182,396 281,739 (1) Income/(loss) before income tax expense/(benefit) 3,442 6,509 18,451 (59,276 ) Income tax expense/(benefit) 256 1,996 6,515 (25,895 ) Net income/(loss) 3,186 4,513 11,936 (33,381 ) Net income applicable to noncontrolling interests 749 2,575 1,278 3,604 Net income/(loss) applicable to Piper Jaffray Companies $ 2,437 $ 1,938 $ 10,658 $ (36,985 ) Net income/(loss) applicable to Piper Jaffray Companies' common shareholders $ 2,124 $ 1,577 $ 8,582 $ (36,985 ) (2) Earnings/(loss) per common share Basic $ 0.16 $ 0.12 $ 0.70 $ (3.00 ) Diluted $ 0.16 $ 0.12 $ 0.70 $ (3.00 ) (3) Weighted average number of common shares Basic 13,160 12,927 12,282 12,337 Diluted 13,172 12,942 12,298 12,353 (3) (1) Includes a $82.9 million non-cash goodwill impairment charge. (2) No allocation of undistributed 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. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a variable interest entity ("VIE") or a voting interest entity. VIEs are entities in which (i) the total equity investment at risk is not sufficient to enable the entity to finance its activities independently or (ii) the at-risk equity holders do not have the normal characteristics of a controlling financial interest. A controlling financial interest in a VIE is present when an enterprise has one or more variable interests that have both (i) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The enterprise with a controlling financial interest is the primary beneficiary and consolidates the VIE. Voting interest entities lack one or more of the characteristics of a VIE. The usual condition for a controlling financial interest is ownership of a majority voting interest for a corporation or a majority of kick-out or participating rights for a limited partnership. 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's investment is accounted for under the equity method of accounting. 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. Piper Jaffray is a registered broker dealer subject to Rule 15c3-3 of the Securities Exchange Act of 1934, which requires broker dealers carrying customer accounts to maintain cash or qualified securities in a segregated reserve account for the exclusive benefit of its customers. Subsequent to transitioning to a fully disclosed clearing model in 2017, Piper Jaffray no longer carries customer accounts and is no longer subject to Rule 15c3-3. |
Customer Transactions | Customer Transactions As discussed in Note 1 , Piper Jaffray transitioned from a self clearing securities broker dealer to a fully disclosed clearing model in 2017. Pershing is Piper Jaffray's clearing broker dealer responsible for the clearance and settlement of firm and customer cash and security transactions. Customer securities transactions are recorded on a settlement date basis, while the related revenues and expenses are recorded on a trade-date basis. Prior to transitioning to Pershing, customer receivables and payables included amounts related to both customer cash and margin transactions clearing through Piper Jaffray. 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 Effective August 7, 2017, Pershing is responsible for the clearance and settlement of firm and customer cash and security transactions. 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 municipal bond fund are recorded on a gross basis. |
Collateralized Securities Transactions | Collateralized Securities Transactions Subsequent to transitioning to a fully disclosed clearing model on August 7, 2017, the Company no longer enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, and securities borrowed and loaned transactions. Prior to August 7, 2017, securities purchased under agreements to resell and securities sold under agreements to repurchase were carried at the contractual amounts at which the securities would be subsequently resold or repurchased, including accrued interest. It was the Company's policy to take possession or control of securities purchased under agreements to resell at the time these agreements were entered into. The counterparties to these agreements were typically primary dealers of U.S. government securities and major financial institutions. Collateral was valued daily, and additional collateral was obtained from or refunded to counterparties when appropriate. Securities borrowed and loaned resulted from transactions with other broker dealers or financial institutions and were recorded at the amount of cash collateral advanced or received. As of December 31, 2016, 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 required the Company to deposit cash or other collateral with the lender. Securities loaned transactions required the borrower to deposit cash with the Company. The Company monitored the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. Interest was accrued on securities borrowed and loaned transactions and 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 (including securities with extended settlements and derivative contracts) 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), including securities with extended settlements, 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 Measurement – Definition and Hierarchy – Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 820, "Fair Value Measurement," ("ASC 820") defines fair value as the amount at which an instrument could be exchanged in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy 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 observability 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. 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, 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. Level III – Instruments that have little to no pricing observability as of the report date. These financial instruments are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Valuation 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. 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. |
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 ten years 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. See Note 13 for additional information on the Company's goodwill impairment testing. Intangible assets with determinable lives consist of customer relationships, the Simmons & Company International trade name, and non-competition agreements that are amortized over their original estimated useful lives ranging from one to ten years. The pattern of amortization reflects the timing of the realization of the economic benefits of such intangible assets. 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 investments include equity investments in private companies and partnerships, investments in registered mutual funds, warrants of public and private companies and private company debt. Equity investments in private companies are accounted for at fair value, as required by accounting guidance or 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, or at cost. Registered mutual funds are accounted for at fair value. Company-owned warrants with a cashless exercise option are valued at fair value. Private company debt investments are recorded at fair value, as required by accounting guidance, or at amortized cost, net of any unamortized premium or discount. |
Other Assets | Other Assets Other assets include receivables and prepaid expenses. Receivables include fee receivables, accrued interest, secured loan 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 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 for completed deals. 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 and included in other liabilities and accrued expenses on the consolidated statements of financial condition. 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 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 financing and its 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. Subsequent to transitioning to a fully disclosed clearing model, the Company no longer engages in securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned activities. Investment Income – Investment income includes realized and unrealized gains and losses from the Company's merchant banking, energy, senior living 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 stock-based awards that do not require future service are recognized in the year in which the awards were deemed to be earned. Stock-based awards that require future service are amortized over the relevant service period. Forfeitures of awards with service conditions are accounted for when they occur. See Note 21 for additional information on the Company's accounting for stock-based compensation. |
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. No allocation of undistributed earnings is made for periods in which a loss is incurred. Distributed earnings (e.g., dividends) are 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 and restricted stock units. Unvested stock-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 stock-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 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 period-end rates of exchange. The gains or losses resulting from translating foreign currency financial statements are included in other comprehensive income/(loss). Gains or losses resulting from foreign currency transactions are included in net income/(loss). |
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 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. |
Acquisition of Simmons & Comp36
Acquisition of Simmons & Company International (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of estimated fair value of assets acquired and liabilities assumed | The following table summarizes the estimated fair value of assets acquired and liabilities assumed at the date of the acquisition: (Dollars in thousands) Assets: Cash and cash equivalents $ 47,201 Fixed assets 1,868 Goodwill 60,737 Intangible assets 26,638 Investments 980 Other assets 5,071 Total assets acquired 142,495 Liabilities: Accrued compensation 15,387 Other liabilities and accrued expenses 7,814 Total liabilities assumed 23,201 Net assets acquired $ 119,294 |
Financial Instruments and Oth37
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, 2017 | |
Financial Instruments Owned and Sold, Not yet Purchased [Abstract] | |
Schedule of Financial Instruments Owned and Financial Instruments Sold, but Not Yet Purchased by Type | December 31, December 31, (Dollars in thousands) 2017 2016 Financial instruments and other inventory positions owned: Corporate securities: Equity securities $ 51,896 $ 6,363 Convertible securities 74,456 103,486 Fixed income securities 30,145 21,018 Municipal securities: Taxable securities 67,699 63,090 Tax-exempt securities 744,241 559,329 Short-term securities 62,251 35,175 Mortgage-backed securities 481 5,638 U.S. government agency securities 317,318 205,685 U.S. government securities 9,317 29,970 Derivative contracts 25,573 29,217 Total financial instruments and other inventory positions owned 1,383,377 1,058,971 Less noncontrolling interests (1) — (57,700 ) $ 1,383,377 $ 1,001,271 Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 101,517 $ 89,453 Fixed income securities 30,292 17,324 U.S. government agency securities 49,077 6,723 U.S. government securities 213,312 180,650 Derivative contracts 5,029 5,207 Total financial instruments and other inventory positions sold, but not yet purchased 399,227 299,357 Less noncontrolling interests (2) — (631 ) $ 399,227 $ 298,726 (1) Noncontrolling interests attributable to third party ownership in a consolidated municipal bond fund consist of $1.3 million of taxable municipal securities, $55.2 million of tax-exempt municipal securities, and $1.2 million of derivative contracts as of December 31, 2016 . (2) Noncontrolling interests attributable to third party ownership in a consolidated municipal bond fund consist of U.S. government securities as of December 31, 2016 |
Schedule of Gross Fair Market Value and Total Absolute Notional Contract Amount | The following table presents the gross fair market value and the total absolute notional contract amount of the Company's outstanding derivative instruments, prior to counterparty netting, by asset or liability position: December 31, 2017 December 31, 2016 (Dollars in thousands) Derivative Derivative Notional Derivative Derivative Notional Derivative Category Assets (1) Liabilities (2) Amount Assets (1) Liabilities (2) Amount Interest rate Customer matched-book $ 239,224 $ 225,890 $ 2,819,006 $ 288,955 $ 272,819 $ 3,330,207 Trading securities 126 4,459 399,450 13,952 1,707 423,550 Credit default swap index Trading securities — — — — 127 7,470 Futures and equity options Trading securities 6 — 9,635 — — — $ 239,356 $ 230,349 $ 3,228,091 $ 302,907 $ 274,653 $ 3,761,227 |
Unrealized Gains/(Losses) on Derivative Instruments | The gains and losses on the related economically hedged inventory positions are not disclosed below as they are not in qualifying hedging relationships. The following table presents the Company's unrealized gains/(losses) on derivative instruments: (Dollars in thousands) Year Ended December 31, Derivative Category Operations Category 2017 2016 2015 Interest rate derivative contract Investment banking $ (2,608 ) $ (4,151 ) $ (2,274 ) Interest rate derivative contract Institutional brokerage (16,772 ) 19,613 534 Credit default swap index contract Institutional brokerage 4,482 4,317 12,228 Futures and equity option derivative contracts Institutional brokerage (17 ) 255 (252 ) $ (14,915 ) $ 20,034 $ 10,236 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 : Valuation Weighted Technique Unobservable Input Range Average Assets: Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities Discounted cash flow Expected recovery rate (% of par) (2) 5 - 60% 19.4% Short-term securities Discounted cash flow Expected recovery rate (% of par) (2) 66 - 94% 91.0% Mortgage-backed securities: Collateralized by residential mortgages Discounted cash flow Credit default rates (3) 1 - 2% 1.5% Prepayment rates (4) 20.0% 20.0% Loss severity (3) 25 - 50% 26.9% Valuation yields (3) 5.0% 5.0% Derivative contracts: Interest rate locks Discounted cash flow Premium over the MMD curve (1) 7 - 15 bps 11.1 bps Investments at fair value: Equity securities in private companies Market approach Revenue multiple (2) 2 - 6 times 4.9 times EBITDA multiple (2) 11 - 15 times 12.8 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 - 16 bps 7.9 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, 2017 : 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 $ 1,863 $ 50,033 $ — $ — $ 51,896 Convertible securities — 74,456 — — 74,456 Fixed income securities — 30,145 — — 30,145 Municipal securities: Taxable securities — 67,699 — — 67,699 Tax-exempt securities — 743,541 700 — 744,241 Short-term securities — 61,537 714 — 62,251 Mortgage-backed securities — — 481 — 481 U.S. government agency securities — 317,318 — — 317,318 U.S. government securities 9,317 — — — 9,317 Derivative contracts 6 239,224 126 (213,783 ) 25,573 Total financial instruments and other inventory positions owned 11,186 1,583,953 2,021 (213,783 ) 1,383,377 Cash equivalents 3,782 — — — 3,782 Investments at fair value 39,504 — 126,060 (2) — 165,564 Total assets $ 54,472 $ 1,583,953 $ 128,081 $ (213,783 ) $ 1,552,723 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 91,934 $ 9,583 $ — $ — $ 101,517 Fixed income securities — 30,292 — — 30,292 U.S. government agency securities — 49,077 — — 49,077 U.S. government securities 213,312 — — — 213,312 Derivative contracts — 225,916 4,433 (225,320 ) 5,029 Total financial instruments and other inventory positions sold, but not yet purchased $ 305,246 $ 314,868 $ 4,433 $ (225,320 ) $ 399,227 (1) Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. (2) Noncontrolling interests of $44.4 million are attributable to third party ownership in consolidated merchant banking and senior living funds. The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2016 : 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 $ 82 $ 6,281 $ — $ — $ 6,363 Convertible securities — 103,486 — — 103,486 Fixed income securities — 21,018 — — 21,018 Municipal securities: Taxable securities — 60,404 2,686 — 63,090 Tax-exempt securities — 558,252 1,077 — 559,329 Short-term securities — 34,431 744 — 35,175 Mortgage-backed securities — 273 5,365 — 5,638 U.S. government agency securities — 205,685 — — 205,685 U.S. government securities 29,970 — — — 29,970 Derivative contracts — 288,955 13,952 (273,690 ) 29,217 Total financial instruments and other inventory positions owned 30,052 1,278,785 23,824 (273,690 ) 1,058,971 Cash equivalents 768 — — — 768 Investments at fair value 32,783 — 123,319 (2) — 156,102 Total assets $ 63,603 $ 1,278,785 $ 147,143 $ (273,690 ) $ 1,215,841 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 89,453 $ — $ — $ — $ 89,453 Fixed income securities — 17,324 — — 17,324 U.S. government agency securities — 6,723 — — 6,723 U.S. government securities 180,650 — — — 180,650 Derivative contracts — 273,166 1,487 (269,446 ) 5,207 Total financial instruments and other inventory positions sold, but not yet purchased $ 270,103 $ 297,213 $ 1,487 $ (269,446 ) $ 299,357 (1) Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties. (2) Noncontrolling interests of $45.1 million are attributable to third party ownership in consolidated merchant banking and senior living funds. |
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 held at the beginning or end of the periods presented: Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at December 31, Transfers Transfers gains/ gains/ December 31, December 31, (Dollars in thousands) 2016 Purchases Sales in out (losses) (1) (losses) (1) 2017 2017 (1) Assets: Financial instruments and other inventory positions owned: Municipal securities: Taxable securities $ 2,686 $ — $ (2,703 ) $ — $ — $ 716 $ (699 ) $ — $ — Tax-exempt securities 1,077 — (267 ) — — — (110 ) 700 (110 ) Short-term securities 744 — (25 ) — — 2 (7 ) 714 (7 ) Mortgage-backed securities 5,365 996 (5,608 ) — — 203 (475 ) 481 (45 ) Derivative contracts 13,952 109 (11,469 ) — — 11,360 (13,826 ) 126 126 Total financial instruments and other inventory positions owned 23,824 1,105 (20,072 ) — — 12,281 (15,117 ) 2,021 (36 ) Investments at fair value 123,319 31,362 (37,004 ) — (601 ) (2,585 ) 11,569 126,060 14,960 Total assets $ 147,143 $ 32,467 $ (57,076 ) $ — $ (601 ) $ 9,696 $ (3,548 ) $ 128,081 $ 14,924 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 1,487 $ (17,083 ) $ 211 $ — $ — $ 16,872 $ 2,946 $ 4,433 $ 4,433 Total financial instruments and other inventory positions sold, but not yet purchased $ 1,487 $ (17,083 ) $ 211 $ — $ — $ 16,872 $ 2,946 $ 4,433 $ 4,433 (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. Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at December 31, Transfers Transfers gains/ gains/ December 31, December 31, (Dollars in thousands) 2015 Purchases Sales in out (losses) (1) (losses) (1) 2016 2016 (1) Assets: Financial instruments and other inventory positions owned: Municipal securities: Taxable securities $ 5,816 $ — $ (3,700 ) $ — $ — $ 554 $ 16 $ 2,686 $ 16 Tax-exempt securities 1,177 — — — — — (100 ) 1,077 (100 ) Short-term securities 720 — — — — — 24 744 24 Mortgage-backed securities 121,124 26,519 (142,263 ) — — 3,495 (3,510 ) 5,365 69 Derivative contracts — — — — — — 13,952 13,952 13,952 Total financial instruments and other inventory positions owned 128,837 26,519 (145,963 ) — — 4,049 10,382 23,824 13,961 Investments at fair value 109,444 33,683 (28,343 ) — (9,088 ) 10,336 7,287 123,319 7,014 Total assets $ 238,281 $ 60,202 $ (174,306 ) $ — $ (9,088 ) $ 14,385 $ 17,669 $ 147,143 $ 20,975 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 7,148 $ (14,653 ) $ — $ — $ — $ 14,653 $ (5,661 ) $ 1,487 $ 1,487 Total financial instruments and other inventory positions sold, but not yet purchased $ 7,148 $ (14,653 ) $ — $ — $ — $ 14,653 $ (5,661 ) $ 1,487 $ 1,487 (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 (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Schedule of Consolidated Variable Interest Entities | The following table presents information about the carrying value of the assets and liabilities of the VIEs which are consolidated by the Company and included on the consolidated statements of financial condition at December 31, 2017 . The assets can only be used to settle the liabilities of the respective VIE, and the creditors of the VIEs do not have recourse to the general credit of the Company. One of these VIEs has $25.0 million of bank line financing available with an interest rate based on prime plus an applicable margin. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities are eliminated in consolidation. Alternative Asset (Dollars in thousands) Management Funds Assets: Receivables from brokers, dealers and clearing organizations $ 9,218 Financial instruments and other inventory positions owned and pledged as collateral 404,952 Investments 107,618 Other assets 4,205 Total assets $ 525,993 Liabilities: Short-term financing $ 239,963 Payables to brokers, dealers and clearing organizations 808 Financial instruments and other inventory positions sold, but not yet purchased 47,806 Other liabilities and accrued expenses 87,775 Total liabilities $ 376,352 |
Receivables from and Payables40
Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Brokers and Dealers [Abstract] | |
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | December 31, December 31, (Dollars in thousands) 2017 2016 Receivable arising from unsettled securities transactions $ 9,218 $ 132,724 Deposits paid for securities borrowed — 27,573 Receivable from clearing organizations 109,270 3,293 Deposits with clearing organizations 11,019 35,713 Receivable from brokers and dealers 12,041 10,988 Securities failed to deliver — 975 Other 3,846 1,464 Total receivables from brokers, dealers and clearing organizations $ 145,394 $ 212,730 December 31, December 31, (Dollars in thousands) 2017 2016 Payable arising from unsettled securities transactions $ 808 $ 13,948 Payable to clearing organizations — 15,893 Payable to brokers and dealers 18,584 7,958 Securities failed to receive — 3,043 Total payables to brokers, dealers and clearing organizations $ 19,392 $ 40,842 |
Receivables from and Payables41
Receivables from and Payables to Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables From Payables To Customers [Abstract] | |
Amounts Receivable From Customers | Effective August 7, 2017, Pershing is Piper Jaffray's clearing broker dealer responsible for the clearance and settlement of customer cash and security transactions. December 31, December 31, (Dollars in thousands) 2017 2016 Cash accounts $ — $ 29,610 Margin accounts — 2,307 Total receivables from customers $ — $ 31,917 |
Amounts Payable To Customers | December 31, December 31, (Dollars in thousands) 2017 2016 Cash accounts $ — $ 14,416 Margin accounts — 14,936 Total payables to customers $ — $ 29,352 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Schedule of Investments | The Company's investments include investments in private companies and partnerships, registered mutual funds, warrants of public and private companies and private company debt. December 31, December 31, (Dollars in thousands) 2017 2016 Investments at fair value $ 165,564 $ 156,102 Investments at cost 2,416 2,755 Investments accounted for under the equity method 8,232 9,200 Total investments 176,212 168,057 Less investments attributable to noncontrolling interests (1) (44,397 ) (45,123 ) $ 131,815 $ 122,934 (1) Noncontrolling interests are attributable to third party ownership in consolidated merchant banking and senior living funds. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | December 31, December 31, (Dollars in thousands) 2017 2016 Fee receivables $ 20,884 $ 22,840 Accrued interest receivables 6,981 9,259 Forgivable loans, net 7,452 9,307 Prepaid expenses 6,769 6,363 Secured loan receivables 2,975 6,236 Other 9,773 13,124 Total other assets $ 54,834 $ 67,129 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill and Intangible Assets | Capital Asset (Dollars in thousands) Markets Management Total Goodwill Balance at December 31, 2015 $ 21,132 $ 196,844 $ 217,976 Goodwill acquired 60,723 419 61,142 Impairment charge — (82,900 ) (82,900 ) Balance at December 31, 2016 $ 81,855 $ 114,363 $ 196,218 Impairment charge — (114,363 ) (114,363 ) Balance at December 31, 2017 $ 81,855 $ — $ 81,855 Intangible assets Balance at December 31, 2015 $ 8,256 $ 22,274 $ 30,530 Intangible assets acquired 26,651 1,267 27,918 Amortization of intangible assets (15,587 ) (5,627 ) (21,214 ) Balance at December 31, 2016 $ 19,320 $ 17,914 $ 37,234 Intangible assets acquired — 1,000 1,000 Amortization of intangible assets (10,178 ) (5,222 ) (15,400 ) Balance at December 31, 2017 $ 9,142 $ 13,692 $ 22,834 |
Schedule of Expected Amortization Expense | 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) 2018 $ 10,460 2019 8,001 2020 1,256 2021 258 Total $ 19,975 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | December 31, December 31, (Dollars in thousands) 2017 2016 Furniture and equipment $ 38,506 $ 37,712 Leasehold improvements 31,290 31,982 Software 11,327 13,957 Total 81,123 83,651 Accumulated depreciation and amortization (55,944 ) (58,308 ) $ 25,179 $ 25,343 |
Short-Term Financing (Tables)
Short-Term Financing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Short-Term Financing | Outstanding Balance Weighted Average Interest Rate December 31, December 31, December 31, December 31, (Dollars in thousands) 2017 2016 2017 2016 Commercial paper (secured) $ 49,974 $ 147,021 2.32 % 2.12 % Prime broker arrangements 239,963 271,811 2.23 % 1.49 % Total short-term financing $ 289,937 $ 418,832 |
Senior Notes (Tables)
Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Senior Notes [Abstract] | |
Schedule of Senior Notes | The following table presents the outstanding balance by note class: Outstanding Balance December 31, December 31, (Dollars in thousands) 2017 2016 Class A Notes $ — $ 50,000 Class C Notes 125,000 125,000 Total senior notes $ 125,000 $ 175,000 |
Contingencies, Commitments an48
Contingencies, Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of aggregate minimum lease commitments under 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, 2017 are as follows: (Dollars in thousands) 2018 $ 14,509 2019 12,884 2020 12,214 2021 7,888 2022 6,544 Thereafter 14,872 Total $ 68,911 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Pre-tax Restructuring Charges | The Company incurred the following pre-tax restructuring charges within the Capital Markets segment primarily in conjunction with its acquisition activities. Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Severance, benefits and outplacement costs $ — $ 6,608 $ 8,806 Vacated redundant leased office space — 1,320 — Contract termination costs — 1,026 546 Total pre-tax restructuring charges $ — $ 8,954 $ 9,352 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 : Incentive Plan Restricted Stock Annual grants 903,821 Sign-on grants 240,424 1,144,245 Inducement Plan Restricted Stock 260,231 Total restricted stock related to compensation 1,404,476 Simmons Deal Consideration (1) 821,141 Total restricted stock outstanding 2,225,617 Incentive Plan Restricted Stock Units Leadership grants 244,772 (1) The Company issued restricted stock with service conditions as part of deal consideration for the acquisition of Simmons. See Note 4 for further discussion. |
Schedule of RSU Valuation Assumptions | Up to 50 percent of these awards 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 awards can be earned based on the Company's total shareholder return. The fair value of the awards on the grant date was determined using a Monte Carlo simulation with the following assumptions: Risk-free Expected Stock Grant Year Interest Rate Price Volatility 2016 0.98% 34.9% 2015 0.90% 29.8% 2014 0.82% 41.3% Up to 75 percent of the award can be earned based on the Company's total shareholder return relative to members of a predetermined peer group. The market condition must be met for the award to vest and compensation cost will be recognized regardless if the market condition is satisfied. Compensation expense is amortized on a straight-line basis over the 36 -month requisite service period. Employees forfeit unvested share units upon termination of employment with a corresponding reversal of compensation expense. For this portion of the award, the fair value on the grant date was determined using a Monte Carlo simulation with the following assumptions: Risk-free Expected Stock Grant Year Interest Rate Price Volatility 2017 1.62% 35.9% |
Summary of Changes in Unvested Restricted Stock | The following table summarizes the changes in the Company's unvested restricted stock: Unvested Weighted Average Restricted Stock Grant Date (in Shares) Fair Value December 31, 2014 1,095,305 $ 36.51 Granted 783,758 51.08 Vested (575,716 ) 34.72 Canceled (15,432 ) 40.83 December 31, 2015 1,287,915 $ 46.20 Granted 2,359,672 41.87 Vested (623,961 ) 44.89 Canceled (149,509 ) 42.49 December 31, 2016 2,874,117 $ 43.12 Granted 248,749 77.78 Vested (717,782 ) 45.08 Canceled (179,467 ) 42.70 December 31, 2017 2,225,617 $ 46.40 |
Summary of Changes in Unvested Restricted Stock Units | The following table summarizes the changes in the Company's unvested restricted stock units: Unvested Weighted Average Restricted Grant Date Stock Units Fair Value December 31, 2014 405,826 $ 17.99 Granted 123,687 21.83 Vested (149,814 ) 12.12 Canceled (23,457 ) 12.12 December 31, 2015 356,242 $ 22.18 Granted 135,483 19.93 Vested (117,265 ) 21.32 Canceled — — December 31, 2016 374,460 $ 21.63 Granted 35,981 84.10 Vested (115,290 ) 23.42 Canceled (50,379 ) 31.73 December 31, 2017 244,772 $ 27.89 |
Summary of Changes in Stock Options | The following table summarizes the changes in the Company's stock options: Weighted Average Weighted Remaining Options Average Contractual Term Aggregate Outstanding Exercise Price (in Years) Intrinsic Value December 31, 2014 217,873 $ 46.66 2.0 $ 3,066,839 Granted — — Exercised (50,671 ) 36.62 Canceled — — Expired (10,001 ) 39.62 December 31, 2015 157,201 $ 50.35 1.6 $ — Granted — — Exercised (104,175 ) 43.75 Canceled — — Expired (22,413 ) 59.83 December 31, 2016 30,613 $ 65.86 0.3 $ 203,291 Granted — — Exercised (26,149 ) 65.13 Canceled — — Expired (4,464 ) 70.13 December 31, 2017 — $ — 0 $ — Options exercisable at December 31, 2015 157,201 $ 50.35 1.6 $ — Options exercisable at December 31, 2016 30,613 $ 65.86 0.3 $ 203,291 Options exercisable at December 31, 2017 — $ — 0 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2015 Net income/(loss) applicable to Piper Jaffray Companies $ (61,939 ) $ (21,952 ) $ 52,075 Earnings allocated to participating securities (1) (2,936 ) — (4,015 ) Net income/(loss) applicable to Piper Jaffray Companies' common shareholders (2) $ (64,875 ) $ (21,952 ) $ 48,060 Shares for basic and diluted calculations: Average shares used in basic computation 12,807 12,674 14,368 Stock options — 15 21 Restricted stock units 171 90 — Average shares used in diluted computation 12,978 (3) 12,779 (3) 14,389 Earnings/(loss) per common share: Basic $ (5.07 ) $ (1.73 ) $ 3.34 Diluted $ (5.07 ) (3) $ (1.73 ) (3) $ 3.34 (1) Represents the allocation of distributed and undistributed earnings to participating securities. No allocation of undistributed earnings is made for periods in which a loss is incurred. Distributed earnings (e.g., dividends) are allocated to participating securities. Participating securities include all of the Company's unvested restricted shares. The weighted average participating shares outstanding were 2,349,476 ; 2,691,728 and 1,201,610 for the years ended December 31, 2017 , 2016 and 2015 , 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 and restricted stock units 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. Common shares of 2,225,617 and 2,874,117 were excluded from diluted EPS at December 31, 2017 and 2016, respectively, as the Company had a net loss for these years. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segment Financial Results | Reportable segment financial results are as follows: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Capital Markets Investment banking Financing Equities $ 98,996 $ 71,161 $ 114,468 Debt 93,434 115,013 91,195 Advisory services 443,303 304,654 209,163 Total investment banking 635,733 490,828 414,826 Institutional sales and trading Equities 81,717 87,992 78,584 Fixed income 89,455 91,466 94,305 Total institutional sales and trading 171,172 179,458 172,889 Management and performance fees 5,566 6,363 4,642 Investment income 17,640 24,791 24,468 Long-term financing expenses (7,676 ) (9,136 ) (7,494 ) Net revenues 822,435 692,304 609,331 Operating expenses (1) 738,339 645,863 530,937 Segment pre-tax operating income $ 84,096 $ 46,441 $ 78,394 Segment pre-tax operating margin 10.2 % 6.7 % 12.9 % Continued on next page Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Asset Management Management and performance fees Management fees $ 51,269 $ 53,725 $ 70,167 Performance fees — 584 208 Total management and performance fees 51,269 54,309 70,375 Investment income/(loss) 1,219 736 (6,788 ) Net revenues 52,488 55,045 63,587 Operating expenses (1) 165,907 132,360 55,558 Segment pre-tax operating income/(loss) $ (113,419 ) $ (77,315 ) $ 8,029 Segment pre-tax operating margin (216.1 )% (140.5 )% 12.6 % Total Net revenues $ 874,923 $ 747,349 $ 672,918 Operating expenses (1) 904,246 778,223 586,495 Pre-tax operating income/(loss) $ (29,323 ) $ (30,874 ) $ 86,423 Pre-tax operating margin (3.4 )% (4.1 )% 12.8 % (1) Operating expenses include non-cash goodwill impairment charges of $114.4 million and $82.9 million for the years ended December 31, 2017 and 2016, respectively, related to the Asset Management segment, as well as intangible asset amortization as set forth in the table below: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Capital Markets $ 10,178 $ 15,587 $ 1,622 Asset Management 5,222 5,627 6,040 Total intangible asset amortization $ 15,400 $ 21,214 $ 7,662 |
Schedule of Intangible Asset Amortization | Operating expenses include non-cash goodwill impairment charges of $114.4 million and $82.9 million for the years ended December 31, 2017 and 2016, respectively, related to the Asset Management segment, as well as intangible asset amortization as set forth in the table below: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Capital Markets $ 10,178 $ 15,587 $ 1,622 Asset Management 5,222 5,627 6,040 Total intangible asset amortization $ 15,400 $ 21,214 $ 7,662 |
Reportable Segment Assets | Reportable segment assets are as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Capital Markets $ 1,933,050 $ 1,934,528 Asset Management 91,633 190,975 $ 2,024,683 $ 2,125,503 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense/(Benefit) | The components of income tax expense/(benefit) are as follows: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Current: Federal $ 27,611 $ 11,704 $ 33,818 State 5,550 2,454 7,030 Foreign 93 (703 ) 58 33,254 13,455 40,906 Deferred: Federal 5,783 (27,764 ) (11,620 ) State (7,554 ) (3,758 ) (1,901 ) Foreign (1,254 ) 939 556 (3,025 ) (30,583 ) (12,965 ) Total income tax expense/(benefit) $ 30,229 $ (17,128 ) $ 27,941 |
Effective Income Tax Rate Reconciliation | A reconciliation of federal income taxes at statutory rates to the Company's effective tax rates is as follows: Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Federal income tax expense/(benefit) at statutory rates $ (10,263 ) $ (10,806 ) $ 30,248 Increase/(reduction) in taxes resulting from: Impact of the Tax Cuts and Jobs Act 54,154 — — State income taxes, net of federal tax benefit (791 ) (1,110 ) 3,155 Net tax-exempt interest income (5,040 ) (4,600 ) (4,299 ) Foreign jurisdictions tax rate differential 865 1,860 191 Change in valuation allowance (752 ) 362 — Vestings of stock awards (9,172 ) — — Income attributable to noncontrolling interests (835 ) (2,872 ) (2,243 ) Other, net 2,063 38 889 Total income tax expense/(benefit) $ 30,229 $ (17,128 ) $ 27,941 |
Schedule of Net Deferred Income 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 consisted of the following items: December 31, December 31, (Dollars in thousands) 2017 2016 Deferred tax assets: Deferred compensation $ 61,555 $ 79,230 Goodwill tax basis in excess of book basis 38,592 18,357 Net operating loss carryforwards 4,789 3,900 Liabilities/accruals not currently deductible 1,744 1,060 Other 3,296 5,474 Total deferred tax assets 109,976 108,021 Valuation allowance (159 ) (911 ) Deferred tax assets after valuation allowance 109,817 107,110 Deferred tax liabilities: Unrealized gains on firm investments 6,599 6,406 Fixed assets 1,813 2,075 Other 200 796 Total deferred tax liabilities 8,612 9,277 Net deferred tax assets $ 101,205 $ 97,833 |
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, 2014 $ 2,323 Additions based on tax positions related to the current year — Additions for tax positions of prior years — Reductions for tax positions of prior years (2,000 ) Settlements (200 ) Balance at December 31, 2015 $ 123 Additions based on tax positions related to the current year — Additions for tax positions of prior years — Reductions for tax positions of prior years — Settlements — Balance at December 31, 2016 $ 123 Additions based on tax positions related to the current year — Additions for tax positions of prior years 166 Reductions for tax positions of prior years — Settlements (123 ) Balance at December 31, 2017 $ 166 |
Piper Jaffray Companies (Pare54
Piper Jaffray Companies (Parent Company only) (Tables) - Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Statements of Financial Condition | Condensed Statements of Financial Condition December 31, December 31, (Amounts in thousands) 2017 2016 Assets Cash and cash equivalents $ 2,348 $ 1,170 Investment in and advances to subsidiaries 827,158 941,215 Other assets 21,120 22,031 Total assets $ 850,626 $ 964,416 Liabilities and Shareholders' Equity Senior notes $ 125,000 $ 175,000 Accrued compensation 30,579 27,756 Other liabilities and accrued expenses 1,715 2,410 Total liabilities 157,294 205,166 Shareholders' equity 693,332 759,250 Total liabilities and shareholders' equity $ 850,626 $ 964,416 |
Condensed Statements of Operations | Condensed Statements of Operations Year Ended December 31, (Amounts in thousands) 2017 2016 2015 Revenues: Dividends from subsidiaries $ 120,102 $ 104,016 $ 37,649 Interest 1,125 994 650 Investment income/(loss) 4,060 1,835 (2,033 ) Total revenues 125,287 106,845 36,266 Interest expense 7,170 8,195 6,406 Net revenues 118,117 98,650 29,860 Non-interest expenses: Total non-interest expenses 4,936 4,505 3,487 Income before income tax expense and equity in income of subsidiaries 113,181 94,145 26,373 Income tax expense 35,589 27,952 9,191 Income of parent company 77,592 66,193 17,182 Equity in undistributed/(distributed in excess of) income of subsidiaries (139,531 ) (88,145 ) 34,893 Net income/(loss) $ (61,939 ) $ (21,952 ) $ 52,075 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, (Amounts in thousands) 2017 2016 2015 Operating Activities: Net income/(loss) $ (61,939 ) $ (21,952 ) $ 52,075 Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Stock-based and deferred compensation 208 944 70 Equity in undistributed/(distributed in excess of) income of subsidiaries 139,531 88,145 (34,893 ) Net cash provided by operating activities 77,800 67,137 17,252 Investing Activities: Repayment of note receivable — — 1,500 Net cash provided by investing activities — — 1,500 Financing Activities: Issuance of senior notes — — 125,000 Repayment of senior notes (50,000 ) — (75,000 ) Advances from/(to) subsidiaries (5,177 ) (6,276 ) 49,560 Repurchase of common stock (2,498 ) (59,739 ) (118,464 ) Payment of cash dividend (18,947 ) — — Net cash used in financing activities (76,622 ) (66,015 ) (18,904 ) Net increase/(decrease) in cash and cash equivalents 1,178 1,122 (152 ) Cash and cash equivalents at beginning of year 1,170 48 200 Cash and cash equivalents at end of year $ 2,348 $ 1,170 $ 48 |
Quarterly Information (unaudi55
Quarterly Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information Schedules | Quarterly Information (unaudited) 2017 Fiscal Quarter (Amounts in thousands, except per share data) First Second Third Fourth Total revenues $ 205,487 $ 204,007 $ 244,915 $ 240,782 Interest expense 4,958 6,262 4,348 4,700 Net revenues 200,529 197,745 240,567 236,082 Non-interest expenses 177,720 177,878 322,803 (1) 225,845 Income/(loss) before income tax expense/(benefit) 22,809 19,867 (82,236 ) 10,237 Income tax expense/(benefit) (395 ) 4,906 (31,423 ) 57,141 (4) Net income/(loss) 23,204 14,961 (50,813 ) (46,904 ) Net income/(loss) applicable to noncontrolling interests 2,929 1,388 (1,100 ) (830 ) Net income/(loss) applicable to Piper Jaffray Companies $ 20,275 $ 13,573 $ (49,713 ) (46,074 ) Net income/(loss) applicable to Piper Jaffray Companies' common shareholders $ 16,828 $ 11,522 $ (50,415 ) (2) $ (46,771 ) (2) Earnings/(loss) per common share Basic $ 1.33 $ 0.89 $ (3.91 ) $ (3.63 ) Diluted $ 1.31 $ 0.89 $ (3.91 ) (3) $ (3.63 ) (3) Dividends declared per common share $ 0.3125 $ 0.3125 $ 0.3125 $ 0.3125 Weighted average number of common shares Basic 12,594 12,826 12,898 12,906 Diluted 12,922 12,937 12,975 (3) 13,075 (3) (1) Includes a $114.4 million non-cash goodwill impairment charge. (2) No allocation of undistributed 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. (4) Includes a $54.2 million remeasurement of deferred tax assets due to a lower federal corporate rate resulting from the enactment of the Tax Reform Act. 2016 Fiscal Quarter (Amounts in thousands, except per share data) First Second Third Fourth Total revenues $ 159,601 $ 176,392 $ 206,276 $ 227,605 Interest expense 6,045 5,909 5,429 5,142 Net revenues 153,556 170,483 200,847 222,463 Non-interest expenses 150,114 163,974 182,396 281,739 (1) Income/(loss) before income tax expense/(benefit) 3,442 6,509 18,451 (59,276 ) Income tax expense/(benefit) 256 1,996 6,515 (25,895 ) Net income/(loss) 3,186 4,513 11,936 (33,381 ) Net income applicable to noncontrolling interests 749 2,575 1,278 3,604 Net income/(loss) applicable to Piper Jaffray Companies $ 2,437 $ 1,938 $ 10,658 $ (36,985 ) Net income/(loss) applicable to Piper Jaffray Companies' common shareholders $ 2,124 $ 1,577 $ 8,582 $ (36,985 ) (2) Earnings/(loss) per common share Basic $ 0.16 $ 0.12 $ 0.70 $ (3.00 ) Diluted $ 0.16 $ 0.12 $ 0.70 $ (3.00 ) (3) Weighted average number of common shares Basic 13,160 12,927 12,282 12,337 Diluted 13,172 12,942 12,298 12,353 (3) |
Organization and Basis of Pre56
Organization and Basis of Presentation - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Recent Accounting Pronounceme57
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Item Effected [Line Items] | ||
Aggregate minimum lease commitments | $ 68,911,000 | |
ASU 2016-09 | ||
Item Effected [Line Items] | ||
Tax benefit for stock award vesting | $ 9,200,000 | |
ASU 2016-02 | ||
Item Effected [Line Items] | ||
Operating leases | 65 | |
Aggregate minimum lease commitments | $ 68,911,000 | |
Retained Earnings | ASU 2016-09 | ||
Item Effected [Line Items] | ||
Impact to retained earnings upon adoption | $ 0 | |
Retained Earnings | ASU 2014-09 | Estimated cumulative effect | ||
Item Effected [Line Items] | ||
Impact to retained earnings upon adoption | 3,000,000 | |
Annual deal-related expenses | Minimum | ASU 2014-09 | Estimated cumulative effect | ||
Item Effected [Line Items] | ||
Historical annual deal expenses | 20,000,000 | |
Annual deal-related expenses | Maximum | ASU 2014-09 | Estimated cumulative effect | ||
Item Effected [Line Items] | ||
Historical annual deal expenses | $ 25,000,000 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 1 year |
Employee loans term | 2 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Lease term | 12 years |
Finite-lived intangible asset, useful life | 10 years |
Employee loans term | 5 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Internal use software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Internal use software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Acquisition of Simmons & Comp59
Acquisition of Simmons & Company International - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 26, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 81,855 | $ 196,218 | $ 217,976 | ||
Intangible assets acquired | 1,000 | 27,918 | |||
Simmons & Company International | |||||
Business Acquisition [Line Items] | |||||
Economic value | $ 140,000 | ||||
Fair value of net assets acquired | $ 119,300 | ||||
Acquisition related compensation arrangements | 20,600 | ||||
Goodwill | 60,737 | ||||
Goodwill amount expected to be deducted for income tax purposes | 59,400 | ||||
Restricted Stock | Simmons & Company International | |||||
Business Acquisition [Line Items] | |||||
Number of restricted common shares issued as part of the purchase price | 1,149,340 | ||||
Value of equity consideration on the acquisition date | 48,200 | ||||
Unrecognized compensation cost related to restricted stock | 10,700 | ||||
Acquisition related compensation arrangements | 11,600 | ||||
Restricted Stock | Simmons & Company International | Minimum | |||||
Business Acquisition [Line Items] | |||||
Acquisition related compensation arrangement requisite service period in years | 1 year | ||||
Restricted Stock | Simmons & Company International | Maximum | |||||
Business Acquisition [Line Items] | |||||
Acquisition related compensation arrangement requisite service period in years | 3 years | ||||
Cash | Simmons & Company International | |||||
Business Acquisition [Line Items] | |||||
Acquisition related compensation arrangements | $ 9,000 | ||||
Cash | Restricted Stock | Simmons & Company International | |||||
Business Acquisition [Line Items] | |||||
Requisite service period for acquisition related compensation arrangements | 3 years | ||||
Performance award plan | Cash | Simmons & Company International | |||||
Business Acquisition [Line Items] | |||||
Requisite service period for performance award plan | 3 years | ||||
Recorded liability related to this performance award plan | 31,300 | ||||
Compensation expense related to this performance award plan | 27,000 | $ 4,300 | |||
Capital Markets | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 81,855 | 81,855 | $ 21,132 | ||
Intangible assets acquired | 0 | 26,651 | |||
Capital Markets | Simmons & Company International | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 26,638 | ||||
Transaction costs | 900 | ||||
Capital Markets | Simmons & Company International | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 17,500 | ||||
Capital Markets | Simmons & Company International | Simmons trade name | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 9,100 |
Acquisition of Simmons & Comp60
Acquisition of Simmons & Company International - Schedule of estimated fair value of assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 26, 2016 | Dec. 31, 2015 |
Assets: | ||||
Goodwill | $ 81,855 | $ 196,218 | $ 217,976 | |
Simmons & Company International | ||||
Assets: | ||||
Cash and cash equivalents | $ 47,201 | |||
Fixed assets | 1,868 | |||
Goodwill | 60,737 | |||
Intangible assets | 26,638 | |||
Investments | 980 | |||
Other assets | 5,071 | |||
Total assets acquired | 142,495 | |||
Liabilities: | ||||
Accrued compensation | 15,387 | |||
Other liabilities and accrued expenses | 7,814 | |||
Total liabilities assumed | 23,201 | |||
Net assets acquired | $ 119,294 |
Financial Instruments and Oth61
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Schedule of Financial Instruments Owned and Financial Instruments Sold, but Not Yet Purchased by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments and other inventory positions owned: | ||
Equity securities | $ 51,896 | $ 6,363 |
Convertible securities | 74,456 | 103,486 |
Fixed income securities | 30,145 | 21,018 |
Taxable securities | 67,699 | 63,090 |
Tax-exempt securities | 744,241 | 559,329 |
Short-term securities | 62,251 | 35,175 |
Mortgage-backed securities | 481 | 5,638 |
U.S. government agency securities | 317,318 | 205,685 |
U.S. government securities | 9,317 | 29,970 |
Derivative contracts | 25,573 | 29,217 |
Total financial instruments and other inventory positions owned | 1,383,377 | 1,058,971 |
Financial instruments and other inventory positions sold, but not yet purchased: | ||
Equity securities | 101,517 | 89,453 |
Fixed income securities | 30,292 | 17,324 |
U.S. government agency securities | 49,077 | 6,723 |
U.S. government securities | 213,312 | 180,650 |
Derivative contracts | 5,029 | 5,207 |
Total financial instruments and other inventory positions sold, but not yet purchased | 399,227 | 299,357 |
Financial instruments and other inventory positions owned and pledged as collateral | 720,047 | 594,361 |
Consolidated Municipal Bond Fund | ||
Financial instruments and other inventory positions owned: | ||
Taxable securities | 1,300 | |
Tax-exempt securities | 55,200 | |
Derivative contracts | 1,200 | |
Total financial instruments and other inventory positions owned | 0 | 57,700 |
Financial instruments and other inventory positions sold, but not yet purchased: | ||
Total financial instruments and other inventory positions sold, but not yet purchased | 0 | 631 |
Consolidated Entity, excluding third party ownership in a consolidated municipal bond fund | ||
Financial instruments and other inventory positions owned: | ||
Total financial instruments and other inventory positions owned | 1,383,377 | 1,001,271 |
Financial instruments and other inventory positions sold, but not yet purchased: | ||
Total financial instruments and other inventory positions sold, but not yet purchased | $ 399,227 | $ 298,726 |
Financial Instruments and Oth62
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Schedule of Gross Fair Market Value and Total Absolute Notional Contract Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional amount | $ 3,228,091 | $ 3,761,227 |
Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets (1) | 239,356 | 302,907 |
Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities (2) | 230,349 | 274,653 |
Customer matched-book | Interest rate derivative contract | ||
Derivative [Line Items] | ||
Notional amount | 2,819,006 | 3,330,207 |
Customer matched-book | Interest rate derivative contract | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets (1) | 239,224 | 288,955 |
Customer matched-book | Interest rate derivative contract | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities (2) | 225,890 | 272,819 |
Trading securities | Interest rate derivative contract | ||
Derivative [Line Items] | ||
Notional amount | 399,450 | 423,550 |
Trading securities | Interest rate derivative contract | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets (1) | 126 | 13,952 |
Trading securities | Interest rate derivative contract | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities (2) | 4,459 | 1,707 |
Trading securities | Credit default swap index contract | ||
Derivative [Line Items] | ||
Notional amount | 0 | 7,470 |
Trading securities | Credit default swap index contract | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets (1) | 0 | 0 |
Trading securities | Credit default swap index contract | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities (2) | 0 | 127 |
Trading securities | Futures and equity option derivative contracts | ||
Derivative [Line Items] | ||
Notional amount | 9,635 | 0 |
Trading securities | Futures and equity option derivative contracts | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets (1) | 6 | 0 |
Trading securities | Futures and equity option derivative contracts | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities (2) | $ 0 | $ 0 |
Financial Instruments and Oth63
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) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | $ (14,915) | $ 20,034 | $ 10,236 |
Interest rate derivative contract | Investment banking | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | (2,608) | (4,151) | (2,274) |
Interest rate derivative contract | Institutional brokerage | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | (16,772) | 19,613 | 534 |
Credit default swap index contract | Institutional brokerage | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | 4,482 | 4,317 | 12,228 |
Futures and equity option derivative contracts | Institutional brokerage | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | $ (17) | $ 255 | $ (252) |
Financial Instruments and Oth64
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Additional Information (Details) - Maximum risk of loss $ in Millions | Dec. 31, 2017USD ($) |
Counterparties not required to post collateral | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Uncollateralized credit exposure | $ 19.1 |
Notional contract amount | 180.1 |
One unnamed financial institutional not required to post collateral | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Uncollateralized credit exposure | $ 14.9 |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Fair Value Option (Details) - Merchant Banking Investments - Level III - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Investments at fair value | $ 14.1 | $ 19.7 | |
Gains from changes in fair value | $ 1.6 | $ 1.8 | $ 1.3 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Information about Significant Unobservable Inputs used in Fair Value Measurement (Details) - Level III | 12 Months Ended |
Dec. 31, 2017 | |
Equity securities in private companies | Investments at fair value | Minimum | Market approach | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Revenue multiple | 1.9 |
EBITDA multiple | 10.6 |
Equity securities in private companies | Investments at fair value | Maximum | Market approach | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Revenue multiple | 6.2 |
EBITDA multiple | 15 |
Equity securities in private companies | Investments at fair value | Weighted Average | Market approach | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Revenue multiple | 4.9 |
EBITDA multiple | 12.8 |
Interest rate locks | Financial instruments and other inventory positions sold, but not yet purchased | Minimum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Premium over the MMD curve | 1 |
Interest rate locks | Financial instruments and other inventory positions sold, but not yet purchased | Maximum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Premium over the MMD curve | 15.92 |
Interest rate locks | Financial instruments and other inventory positions sold, but not yet purchased | Weighted Average | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Premium over the MMD curve | 7.91 |
Tax-exempt securities | Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Expected recovery rate (% of par) | 5.00% |
Tax-exempt securities | Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Expected recovery rate (% of par) | 60.00% |
Tax-exempt securities | Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Expected recovery rate (% of par) | 19.40% |
Short-term securities | Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Expected recovery rate (% of par) | 66.00% |
Short-term securities | Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Expected recovery rate (% of par) | 94.00% |
Short-term securities | Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Expected recovery rate (% of par) | 91.00% |
Collateralized by residential mortgages | Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Credit default rate | 1.00% |
Prepayment rates | 20.00% |
Loss severity | 25.00% |
Valuation yields | 5.00% |
Collateralized by residential mortgages | Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Credit default rate | 2.00% |
Prepayment rates | 0.00% |
Loss severity | 50.00% |
Valuation yields | 0.00% |
Collateralized by residential mortgages | Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Credit default rate | 1.50% |
Prepayment rates | 20.00% |
Loss severity | 26.90% |
Valuation yields | 5.00% |
Interest rate locks | Financial instruments and other inventory positions owned | Minimum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Premium over the MMD curve | 7.42 |
Interest rate locks | Financial instruments and other inventory positions owned | Maximum | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Premium over the MMD curve | 15.26 |
Interest rate locks | Financial instruments and other inventory positions owned | Weighted Average | Discounted cash flow | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Premium over the MMD curve | 11.08 |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Transfers out of Level 3 | $ 601 | $ 9,088 |
Transfers between fair value levels | 0 | |
Level II | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 1,583,953 | 1,278,785 |
Level III | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 128,081 | $ 147,143 |
Percentage of Level III assets to financial instruments measured at fair value | 8.20% | 12.10% |
U.S. government agency securities | Minimum | Level II | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Conditional prepayment rate | 0.10% | |
Market yields basis points spreads to treasury securities (as a percent) | 2.02% | |
U.S. government agency securities | Maximum | Level II | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Conditional prepayment rate | 38.99% | |
Market yields basis points spreads to treasury securities (as a percent) | 3.03% |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Valuation of Financial Instruments by Pricing Observability Levels (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | $ 51,896,000 | $ 6,363,000 |
Convertible securities | 74,456,000 | 103,486,000 |
Fixed income securities | 30,145,000 | 21,018,000 |
Taxable securities | 67,699,000 | 63,090,000 |
Tax-exempt securities | 744,241,000 | 559,329,000 |
Short-term securities | 62,251,000 | 35,175,000 |
Mortgage-backed securities | 481,000 | 5,638,000 |
U.S. government agency securities | 317,318,000 | 205,685,000 |
U.S. government securities | 9,317,000 | 29,970,000 |
Derivative contracts | 25,573,000 | 29,217,000 |
Derivative contracts | (213,783,000) | (273,690,000) |
Total financial instruments and other inventory positions owned | 1,383,377,000 | 1,058,971,000 |
Equity securities | 101,517,000 | 89,453,000 |
Fixed income securities | 30,292,000 | 17,324,000 |
U.S. government agency securities | 49,077,000 | 6,723,000 |
U.S. government securities | 213,312,000 | 180,650,000 |
Derivative contracts | 5,029,000 | 5,207,000 |
Derivative contracts | (225,320,000) | (269,446,000) |
Total financial instruments and other inventory positions sold, but not yet purchased | 399,227,000 | 299,357,000 |
Securities posted as collateral to its counterparties | 0 | 0 |
Investments at fair value attributable to third party ownership | 165,564,000 | 156,102,000 |
Level I | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 1,863,000 | 82,000 |
U.S. government securities | 9,317,000 | 29,970,000 |
Derivative contracts | 6,000 | |
Total financial instruments and other inventory positions owned | 11,186,000 | 30,052,000 |
Cash equivalents | 3,782,000 | 768,000 |
Investments at fair value | 39,504,000 | 32,783,000 |
Total assets | 54,472,000 | 63,603,000 |
Equity securities | 91,934,000 | 89,453,000 |
U.S. government securities | 213,312,000 | 180,650,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 305,246,000 | 270,103,000 |
Level II | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 50,033,000 | 6,281,000 |
Convertible securities | 74,456,000 | 103,486,000 |
Fixed income securities | 30,145,000 | 21,018,000 |
Taxable securities | 67,699,000 | 60,404,000 |
Tax-exempt securities | 743,541,000 | 558,252,000 |
Short-term securities | 61,537,000 | 34,431,000 |
Mortgage-backed securities | 273,000 | |
U.S. government agency securities | 317,318,000 | 205,685,000 |
Derivative contracts | 239,224,000 | 288,955,000 |
Total financial instruments and other inventory positions owned | 1,583,953,000 | 1,278,785,000 |
Total assets | 1,583,953,000 | 1,278,785,000 |
Equity securities | 9,583,000 | |
Fixed income securities | 30,292,000 | 17,324,000 |
U.S. government agency securities | 49,077,000 | 6,723,000 |
Derivative contracts | 225,916,000 | 273,166,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 314,868,000 | 297,213,000 |
Level III | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Taxable securities | 2,686,000 | |
Tax-exempt securities | 700,000 | 1,077,000 |
Short-term securities | 714,000 | 744,000 |
Mortgage-backed securities | 481,000 | 5,365,000 |
Derivative contracts | 126,000 | 13,952,000 |
Total financial instruments and other inventory positions owned | 2,021,000 | 23,824,000 |
Investments at fair value | 126,060,000 | 123,319,000 |
Total assets | 128,081,000 | 147,143,000 |
Derivative contracts | 4,433,000 | 1,487,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 4,433,000 | 1,487,000 |
Measured on a recurring basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 51,896,000 | 6,363,000 |
Convertible securities | 74,456,000 | 103,486,000 |
Fixed income securities | 30,145,000 | 21,018,000 |
Taxable securities | 67,699,000 | 63,090,000 |
Tax-exempt securities | 744,241,000 | 559,329,000 |
Short-term securities | 62,251,000 | 35,175,000 |
Mortgage-backed securities | 481,000 | 5,638,000 |
U.S. government agency securities | 317,318,000 | 205,685,000 |
U.S. government securities | 9,317,000 | |
Derivative contracts | 25,573,000 | 29,217,000 |
Total financial instruments and other inventory positions owned | 1,383,377,000 | 1,058,971,000 |
Cash equivalents | 3,782,000 | 768,000 |
Investments at fair value | 165,564,000 | 156,102,000 |
Total assets | 1,552,723,000 | 1,215,841,000 |
Equity securities | 101,517,000 | 89,453,000 |
Fixed income securities | 30,292,000 | 17,324,000 |
U.S. government agency securities | 49,077,000 | 6,723,000 |
U.S. government securities | 213,312,000 | 180,650,000 |
Derivative contracts | 5,029,000 | 5,207,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | $ 399,227,000 | $ 299,357,000 |
Fair Value of Financial Instr69
Fair Value of Financial Instruments - Changes in Fair Values Associated with Level III Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 147,143 | $ 238,281 |
Purchases | 32,467 | 60,202 |
Sales | (57,076) | (174,306) |
Transfers out | (601) | (9,088) |
Realized gains/ (losses) | (9,696) | (14,385) |
Unrealized gains/ (losses) | 3,548 | (17,669) |
Ending balance | 128,081 | 147,143 |
Unrealized gains/(losses) for assets held at period end | (14,924) | (20,975) |
Unrealized gains/(losses) for liabilities held at period end | 4,433 | 1,487 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,487 | 7,148 |
Purchases | (17,083) | (14,653) |
Sales | 211 | |
Realized gains/(losses) | 16,872 | 14,653 |
Unrealized gains/ (losses) | 2,946 | (5,661) |
Ending balance | 4,433 | 1,487 |
Financial instruments and other inventory positions sold, but not yet purchased | Derivative contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Unrealized gains/(losses) for liabilities held at period end | 4,433 | 1,487 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,487 | 7,148 |
Issuances | 17,083 | 14,653 |
Settlements | 211 | 0 |
Transfers in | 0 | 0 |
Transfers out | 0 | 0 |
Realized gains/(losses) | 16,872 | 14,653 |
Unrealized gains/ (losses) | 2,946 | (5,661) |
Ending balance | 4,433 | 1,487 |
Financial instruments and other inventory positions owned | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 23,824 | 128,837 |
Purchases | 1,105 | 26,519 |
Sales | (20,072) | (145,963) |
Realized gains/ (losses) | (12,281) | (4,049) |
Unrealized gains/ (losses) | 15,117 | (10,382) |
Ending balance | 2,021 | 23,824 |
Unrealized gains/(losses) for assets held at period end | 36 | (13,961) |
Financial instruments and other inventory positions owned | Taxable securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 2,686 | 5,816 |
Sales | (2,703) | (3,700) |
Transfers into Level III | 0 | 0 |
Realized gains/ (losses) | (716) | (554) |
Unrealized gains/ (losses) | 699 | (16) |
Ending balance | 2,686 | |
Unrealized gains/(losses) for assets held at period end | (16) | |
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 | 1,077 | 1,177 |
Sales | (267) | |
Transfers into Level III | 0 | 0 |
Unrealized gains/ (losses) | 110 | 100 |
Ending balance | 700 | 1,077 |
Unrealized gains/(losses) for assets held at period end | 110 | 100 |
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 | 744 | 720 |
Sales | (25) | |
Transfers into Level III | 0 | 0 |
Realized gains/ (losses) | (2) | |
Unrealized gains/ (losses) | 7 | (24) |
Ending balance | 714 | 744 |
Unrealized gains/(losses) for assets held at period end | 7 | (24) |
Financial instruments and other inventory positions owned | Mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 5,365 | 121,124 |
Purchases | 996 | 26,519 |
Sales | (5,608) | (142,263) |
Transfers into Level III | 0 | 0 |
Realized gains/ (losses) | (203) | (3,495) |
Unrealized gains/ (losses) | 475 | 3,510 |
Ending balance | 481 | 5,365 |
Unrealized gains/(losses) for assets held at period end | 45 | (69) |
Financial instruments and other inventory positions owned | Derivative contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 13,952 | |
Issuances | 109 | |
Settlements | 11,469 | 0 |
Transfers into Level III | 0 | 0 |
Realized gains/ (losses) | (11,360) | |
Unrealized gains/ (losses) | 13,826 | (13,952) |
Ending balance | 126 | 13,952 |
Unrealized gains/(losses) for assets held at period end | (126) | (13,952) |
Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 123,319 | 109,444 |
Purchases | 31,362 | 33,683 |
Sales | (37,004) | (28,343) |
Transfers into Level III | 0 | 0 |
Transfers out | (601) | (9,088) |
Realized gains/ (losses) | 2,585 | (10,336) |
Unrealized gains/ (losses) | (11,569) | (7,287) |
Ending balance | 126,060 | 123,319 |
Unrealized gains/(losses) for assets held at period end | $ (14,960) | $ (7,014) |
Fair Value of Financial Instr70
Fair Value of Financial Instruments - Non-Recurring Fair Value Measurement (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-cash goodwill impairment charge | $ 114,363,000 | $ 82,900,000 | $ 0 |
Level III | Non-recurring fair value measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percent of total goodwill asset mgmt segment | 100.00% | ||
Asset Management | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-cash goodwill impairment charge | $ 114,363,000 | $ 82,900,000 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | |
Consolidated VIE assets | $ 525,993 |
Consolidated VIE liabilities | 376,352 |
Variable Interest Entity, Primary Beneficiary | Receivables from brokers, dealers and clearing organizations | |
Variable Interest Entity [Line Items] | |
Consolidated VIE assets | 9,218 |
Variable Interest Entity, Primary Beneficiary | Financial instruments and other inventory positions owned and pledged as collateral | |
Variable Interest Entity [Line Items] | |
Consolidated VIE assets | 404,952 |
Variable Interest Entity, Primary Beneficiary | Investments | |
Variable Interest Entity [Line Items] | |
Consolidated VIE assets | 107,618 |
Variable Interest Entity, Primary Beneficiary | Other assets | |
Variable Interest Entity [Line Items] | |
Consolidated VIE assets | 4,205 |
Variable Interest Entity, Primary Beneficiary | Short-term financing | |
Variable Interest Entity [Line Items] | |
Consolidated VIE liabilities | 239,963 |
Variable Interest Entity, Primary Beneficiary | Payables to brokers, dealers and clearing organizations | |
Variable Interest Entity [Line Items] | |
Consolidated VIE liabilities | 808 |
Variable Interest Entity, Primary Beneficiary | Financial instruments and other inventory positions sold, but not yet purchased | |
Variable Interest Entity [Line Items] | |
Consolidated VIE liabilities | 47,806 |
Variable Interest Entity, Primary Beneficiary | Other liabilities and accrued expenses | |
Variable Interest Entity [Line Items] | |
Consolidated VIE liabilities | $ 87,775 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, nonconsolidated net assets | $ 600,000,000 | $ 800,000,000 |
Variable interest entities, exposure to loss | 6,400,000 | |
Variable interest entity, nonconsolidated liabilities | $ 0 | $ 0 |
Other liabilities and accrued expenses | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Available bank line financing | 25,000 |
Receivables from and Payables73
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Amounts Receivable from Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Brokers and Dealers [Abstract] | ||
Receivable arising from unsettled securities transactions | $ 9,218 | $ 132,724 |
Deposits paid for securities borrowed | 0 | 27,573 |
Receivable from clearing organizations | 109,270 | 3,293 |
Deposits with clearing organizations | 11,019 | 35,713 |
Receivable from brokers and dealers | 12,041 | 10,988 |
Securities failed to deliver | 0 | 975 |
Other | 3,846 | 1,464 |
Total receivables from brokers, dealers and clearing organizations | $ 145,394 | $ 212,730 |
Receivables from and Payables74
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Amounts Payable to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Brokers and Dealers [Abstract] | ||
Payable arising from unsettled securities transactions | $ 808 | $ 13,948 |
Payable to clearing organizations | 0 | 15,893 |
Payable to brokers and dealers | 18,584 | 7,958 |
Securities failed to receive | 0 | 3,043 |
Total payables to brokers, dealers and clearing organizations | $ 19,392 | $ 40,842 |
Receivables from and Payables75
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Additional Information (Details) | Dec. 31, 2017USD ($) |
Pershing clearing arrangement | |
Excess net capital required | $ 120,000,000 |
Receivables from and Payables76
Receivables from and Payables to Customers - Amounts Receivable from Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables From and Payables to Customers [Abstract] | ||
Cash accounts | $ 0 | $ 29,610 |
Margin accounts | 0 | 2,307 |
Total receivables from customers | $ 0 | $ 31,917 |
Receivables from and Payables77
Receivables from and Payables to Customers - Amounts Payable to Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables From and Payables to Customers [Abstract] | ||
Cash accounts | $ 0 | $ 14,416 |
Margin accounts | 0 | 14,936 |
Total payables to customers | $ 0 | $ 29,352 |
Collateralized Securities Tra78
Collateralized Securities Transactions - Additional Information (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Repurchase Agreements [Abstract] | ||
Securities purchased under agreements to resell, securities borrowed and margin agreements on terms that permit to repledge or resell the securities to others | $ 192,200,000 | |
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 | 185,200,000 | |
Securities loaned | $ 0 | $ 0 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | ||
Investments at fair value | $ 165,564 | $ 156,102 |
Investments at cost | 2,416 | 2,755 |
Investments accounted for under the equity method | 8,232 | 9,200 |
Total investments | 176,212 | 168,057 |
Less investments attributable to noncontrolling interests (1) | ||
Schedule of Investments [Line Items] | ||
Investments at fair value | 44,397 | 45,123 |
Consolidated Entity, excluding third party ownership in consolidated funds | ||
Schedule of Investments [Line Items] | ||
Total investments | $ 131,815 | $ 122,934 |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Millions | Dec. 31, 2017USD ($) |
Investments, All Other Investments [Abstract] | |
Estimated fair market value of investments carried at cost | $ 4.1 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Fee receivables | $ 20,884 | $ 22,840 |
Accrued interest receivables | 6,981 | 9,259 |
Forgivable loans, net | 7,452 | 9,307 |
Prepaid expenses | 6,769 | 6,363 |
Secured loan receivables | 2,975 | 6,236 |
Other | 9,773 | 13,124 |
Total other assets | $ 54,834 | $ 67,129 |
Goodwill and Intangible Asset82
Goodwill and Intangible Assets - Changes in Carrying Value of Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | |||
Goodwill beginning balance | $ 196,218,000 | $ 217,976,000 | |
Goodwill acquired | 61,142,000 | ||
Impairment charge | (114,363,000) | (82,900,000) | $ 0 |
Goodwill ending balance | 81,855,000 | 196,218,000 | 217,976,000 |
Intangible assets | |||
Intangible assets beginning balance | 37,234,000 | 30,530,000 | |
Intangible assets acquired | 1,000,000 | 27,918,000 | |
Amortization of intangible assets | (15,400,000) | (21,214,000) | (7,662,000) |
Intangible assets ending balance | 22,834,000 | 37,234,000 | 30,530,000 |
Capital Markets | |||
Goodwill | |||
Goodwill beginning balance | 81,855,000 | 21,132,000 | |
Goodwill acquired | 60,723,000 | ||
Impairment charge | 0 | 0 | |
Goodwill ending balance | 81,855,000 | 81,855,000 | 21,132,000 |
Intangible assets | |||
Intangible assets beginning balance | 19,320,000 | 8,256,000 | |
Intangible assets acquired | 0 | 26,651,000 | |
Amortization of intangible assets | (10,178,000) | (15,587,000) | (1,622,000) |
Intangible assets ending balance | 9,142,000 | 19,320,000 | 8,256,000 |
Asset Management | |||
Goodwill | |||
Goodwill beginning balance | 114,363,000 | 196,844,000 | |
Goodwill acquired | (419,000) | ||
Impairment charge | (114,363,000) | (82,900,000) | |
Goodwill ending balance | 0 | 114,363,000 | 196,844,000 |
Intangible assets | |||
Intangible assets beginning balance | 17,914,000 | 22,274,000 | |
Intangible assets acquired | 1,000,000 | 1,267,000 | |
Amortization of intangible assets | (5,222,000) | (5,627,000) | (6,040,000) |
Intangible assets ending balance | $ 13,692,000 | $ 17,914,000 | $ 22,274,000 |
Goodwill and Intangible Asset83
Goodwill and Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,018 | $ 10,460 |
2,019 | 8,001 |
2,020 | 1,256 |
2,021 | 258 |
Total | $ 19,975 |
Goodwill and Intangible Asset84
Goodwill and Intangible Assets - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)unit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Number of reporting units | unit | 2 | ||
Non-cash goodwill impairment charge | $ (114,363,000) | $ (82,900,000) | $ 0 |
Intangible asset impairment | 0 | 0 | $ 0 |
Intangible assets acquired | 1,000,000 | 27,918,000 | |
Asset Management | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Non-cash goodwill impairment charge | (114,363,000) | (82,900,000) | |
Intangible assets acquired | 1,000,000 | 1,267,000 | |
Capital Markets | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Non-cash goodwill impairment charge | 0 | 0 | |
Intangible assets acquired | 0 | 26,651,000 | |
Capital Markets | Simmons & Company International | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Intangible assets acquired | $ 26,638,000 | ||
Capital Markets | Simmons & Company International | Customer Relationships | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Intangible assets acquired | 17,500,000 | ||
Capital Markets | Simmons & Company International | Simmons trade name | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Intangible assets acquired | $ 9,100,000 | ||
Weighted Average | Capital Markets | Simmons & Company International | Customer Relationships | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Weighted average life | 1 year 7 months | ||
Weighted Average | Capital Markets | Simmons & Company International | Simmons trade name | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Weighted average life | 4 years |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets before accumulated depreciation and amortization | $ 81,123 | $ 83,651 |
Accumulated depreciation and amortization | (55,944) | (58,308) |
Fixed assets | 25,179 | 25,343 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets before accumulated depreciation and amortization | 38,506 | 37,712 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets before accumulated depreciation and amortization | 31,290 | 31,982 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets before accumulated depreciation and amortization | $ 11,327 | $ 13,957 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 7.3 | $ 6.4 | $ 5.1 |
Short-Term Financing - Schedule
Short-Term Financing - Schedule of Outstanding Short-Term Financing (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Oustanding Balance | $ 289,937 | $ 418,832 |
Commercial paper (secured) | ||
Short-term Debt [Line Items] | ||
Oustanding Balance | $ 49,974 | $ 147,021 |
Weighted Average Interest Rate | 2.32% | 2.12% |
Prime broker arrangements | ||
Short-term Debt [Line Items] | ||
Oustanding Balance | $ 239,963 | $ 271,811 |
Weighted Average Interest Rate | 2.23% | 1.49% |
Short-Term Financing - Addition
Short-Term Financing - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)program | Dec. 31, 2016USD ($) | |
Short-term Debt [Line Items] | ||
Short-term financing | $ 289,937,000 | $ 418,832,000 |
Commercial paper (secured) | ||
Short-term Debt [Line Items] | ||
Number of commercial paper programs | program | 2 | |
Short-term financing | $ 49,974,000 | 147,021,000 |
Commercial paper (secured) | Minimum | ||
Short-term Debt [Line Items] | ||
Debt term | 27 days | |
Commercial paper (secured) | Maximum | ||
Short-term Debt [Line Items] | ||
Debt term | 270 days | |
Commercial paper (secured) | CP Series II A | ||
Short-term Debt [Line Items] | ||
Excess net capital required | $ 100,000,000 | |
Commercial paper (secured) | CP Series II A | Weighted Average | ||
Short-term Debt [Line Items] | ||
Debt term | 8 days | |
Prime broker arrangements | ||
Short-term Debt [Line Items] | ||
Short-term financing | $ 239,963,000 | $ 271,811,000 |
Credit facility | Committed Credit Facility | ||
Short-term Debt [Line Items] | ||
Debt term | 1 year | |
Line of credity, maximum borrowing capacity | $ 200,000,000 | |
Minimum net capital required | 120,000,000 | |
Short-term financing | 0 | |
Credit facility | Uncommitted Credit Facility | ||
Short-term Debt [Line Items] | ||
Line of credity, maximum borrowing capacity | 85,000,000 | |
Short-term financing | $ 0 |
Senior Notes - Schedule of Seni
Senior Notes - Schedule of Senior Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Senior notes | $ 125,000 | $ 175,000 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 125,000 | 175,000 |
Senior Notes | Class A Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 0 | 50,000 |
Senior Notes | Class C Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 125,000 | $ 125,000 |
Senior Notes - Additional Infor
Senior Notes - Additional Information (Details) - Senior Notes - Class C Notes | Oct. 08, 2015USD ($) |
Debt Instrument [Line Items] | |
Face amount | $ 125,000,000 |
Fixed rate | 5.06% |
Contingencies, Commitments an91
Contingencies, Commitments and Guarantees - Schedule of aggregate minimum lease commitments under operating leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,018 | $ 14,509 | ||
2,019 | 12,884 | ||
2,020 | 12,214 | ||
2,021 | 7,888 | ||
2,022 | 6,544 | ||
Thereafter | 14,872 | ||
Total | 68,911 | ||
Total minimum rentals to be received under noncancelable subleases | 4,500 | ||
Rental expense | $ 17,100 | $ 17,300 | $ 13,700 |
Contingencies, Commitments an92
Contingencies, Commitments and Guarantees - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Litigation-related reserve activity | $ 0.1 | $ 0.3 | $ 9.7 |
Remaining investment commitments | 72.5 | ||
Liability for guarantees | $ 0 |
Restructuring - Schedule of Pre
Restructuring - Schedule of Pre-tax Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ 0 | $ 8,954 | $ 9,352 |
Severance, benefits and outplacement costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 0 | 6,608 | 8,806 |
Vacated redundant leased office space | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 0 | 1,320 | 0 |
Contract termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ 0 | $ 1,026 | $ 546 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2018$ / shares | Dec. 31, 2017vote / shares$ / sharesshares | Sep. 30, 2017$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2017USD ($)vote / shares$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Aug. 10, 2017USD ($) | Aug. 14, 2015USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Dividends declared, per share | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 1.25 | $ 0 | $ 0 | |||
Cash dividends paid | $ 19,000,000 | |||||||||
Aggregate purchase price of share repurchases | $ | $ 25,481,000 | $ 70,859,000 | $ 132,925,000 | |||||||
Common stock, shares authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares authorized | shares | 5,000,000 | 5,000,000 | ||||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||||||
Common stock, number of votes per share | vote / shares | 1 | 1 | ||||||||
Preferred stock, shares outstanding | shares | 0 | 0 | ||||||||
Shares of common stock repurchased for employee tax withholding | shares | 314,542 | 261,685 | 281,180 | |||||||
Repurchase of common stock for employee tax withholding | $ | $ 23,000,000 | $ 11,100,000 | $ 14,500,000 | |||||||
Reissuance of treasury shares as a result of employee vesting | shares | 867,327 | 854,416 | 784,751 | |||||||
2015 Plan | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchase of common stock, authorized amount | $ | $ 150,000,000 | |||||||||
Shares repurchased | shares | 36,936 | 1,536,226 | ||||||||
Share repurchases, average price per share | $ 67.62 | |||||||||
Aggregate purchase price of share repurchases | $ | $ 2,500,000 | |||||||||
2014 and 2015 Plans | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Shares repurchased | shares | 2,459,400 | |||||||||
Share repurchases, average price per share | $ 38.89 | $ 48.17 | ||||||||
Aggregate purchase price of share repurchases | $ | $ 59,700,000 | $ 118,500,000 | ||||||||
2017 Plan | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchase of common stock, authorized amount | $ | $ 150,000,000 | |||||||||
Aggregate purchase price of share repurchases | $ | $ 0 | |||||||||
Dividends declared | Quarterly dividends declared | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Dividends declared, per share | $ 0.375 | |||||||||
Dividends declared | Annual special dividend declared | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Dividends declared, per share | $ 1.62 |
Shareholders' Equity - Noncontr
Shareholders' Equity - Noncontrolling Interests - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 47,903,000 | $ 57,016,000 | |
Other comprehensive income or loss attributed to noncontrolling interests | 0 | 0 | $ 0 |
Merchant banking fund(s) | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | 42,700,000 | 35,000,000 | |
Senior living fund | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 5,200,000 | 12,800,000 | |
Municipal bond fund with employee investors | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 9,200,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized as part of compensation and benefits | $ 19.9 | $ 17.6 | $ 15.1 |
Health and Welfare Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized as part of compensation and benefits | $ 12 | $ 10.4 | $ 9.1 |
Retirement Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Maximum 401(k) plan contribution rates as percentage of employee earnings | 100.00% | ||
Retirement plan, employer matching contribution as a percentage of employees' gross pay | 6.00% |
Compensation Plans - Summary of
Compensation Plans - Summary of Outstanding Equity Awards (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 0 | 30,613 | 157,201 | 217,873 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 2,225,617 | 2,874,117 | 1,287,915 | 1,095,305 |
Leadership grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 244,772 | 374,460 | 356,242 | 405,826 |
Amended And Restated 2003 Annual And Long-Term Incentive Plan | Leadership grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 244,772 | |||
Restricted stock related to compensation | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 1,404,476 | |||
Restricted stock related to compensation | Amended And Restated 2003 Annual And Long-Term Incentive Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 1,144,245 | |||
Restricted stock related to compensation | Amended And Restated 2003 Annual And Long-Term Incentive Plan | Sign On Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 240,424 | |||
Restricted stock related to compensation | Amended And Restated 2003 Annual And Long-Term Incentive Plan | Annual Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 903,821 | |||
Restricted stock related to compensation | 2016 Employment Inducement Award Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 260,231 | |||
Simmons Deal Consideration (1) | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 821,141 |
Compensation Plans - Schedule o
Compensation Plans - Schedule of RSU Valuation Assumptions (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2017 | |
Grant Year 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.62% |
Expected Stock Price Volatility | 35.90% |
Grant Year 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 0.98% |
Expected Stock Price Volatility | 34.90% |
Grant Year 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 0.90% |
Expected Stock Price Volatility | 29.80% |
Grant Year 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 0.82% |
Expected Stock Price Volatility | 41.30% |
Compensation Plans - Summary 99
Compensation Plans - Summary of Changes in Unvested Restricted Stock (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unvested Restricted Stock (in Shares) | |||
Beginning Balance | 2,874,117 | 1,287,915 | 1,095,305 |
Granted | 248,749 | 2,359,672 | 783,758 |
Vested | (717,782) | (623,961) | (575,716) |
Cancelled | (179,467) | (149,509) | (15,432) |
Ending Balance | 2,225,617 | 2,874,117 | 1,287,915 |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 43.12 | $ 46.20 | $ 36.51 |
Granted | 77.78 | 41.87 | 51.08 |
Vested | 45.08 | 44.89 | 34.72 |
Cancelled | 42.70 | 42.49 | 40.83 |
Ending Balance | $ 46.40 | $ 43.12 | $ 46.20 |
Compensation Plans - Summary100
Compensation Plans - Summary of Changes in Unvested Restricted Stock Units (Details) - Leadership grants - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unvested Restricted Stock Units | |||
Beginning Balance | 374,460 | 356,242 | 405,826 |
Granted | 35,981 | 135,483 | 123,687 |
Vested | (115,290) | (117,265) | (149,814) |
Cancelled | (50,379) | 0 | (23,457) |
Ending Balance | 244,772 | 374,460 | 356,242 |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 21.63 | $ 22.18 | $ 17.99 |
Granted | 84.10 | 19.93 | 21.83 |
Vested | 23.42 | 21.32 | 12.12 |
Cancelled | 31.73 | 0 | 12.12 |
Ending Balance | $ 27.89 | $ 21.63 | $ 22.18 |
Compensation Plans - Summary101
Compensation Plans - Summary of Changes in Stock Options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options Outstanding | ||||
Beginning Balance | 30,613 | 157,201 | 217,873 | |
Granted | 0 | 0 | 0 | |
Exercised | (26,149) | (104,175) | (50,671) | |
Cancelled | 0 | 0 | 0 | |
Expired | (4,464) | (22,413) | (10,001) | |
Ending Balance | 0 | 30,613 | 157,201 | 217,873 |
Options exercisable at period end | 0 | 30,613 | 157,201 | |
Weighted Average Exercise Price (in dollars per share) | ||||
Beginning Balance | $ 65.86 | $ 50.35 | $ 46.66 | |
Granted | 0 | 0 | 0 | |
Exercised | 65.13 | 43.75 | 36.62 | |
Cancelled | 0 | 0 | 0 | |
Expired | 70.13 | 59.83 | 39.62 | |
Ending Balance | 0 | 65.86 | 50.35 | $ 46.66 |
Options exercisable at period end | $ 0 | $ 65.86 | $ 50.35 | |
Weighted Average Remaining Contractual Term (in Years) | ||||
Weighted Average Remaining Contractual Term (in Years) | 0 days | 4 months | 1 year 7 months 6 days | 2 years |
Options exercisable at period end | 0 days | 4 months | 1 year 7 months | |
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value of Stock Options | $ 0 | $ 203,291 | $ 0 | $ 3,066,839 |
Options exercisable at end of period | $ 0 | $ 203,291 | $ 0 |
Compensation Plans - Additional
Compensation Plans - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018shares | Dec. 31, 2017USD ($)planshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plans | plan | 2 | |||
Compensation expense related to employee restricted stock and restricted stock unit awards | $ 39,100,000 | $ 54,100,000 | $ 48,200,000 | |
Forfeitures recorded | 3,000,000 | 1,400,000 | 500,000 | |
Tax benefit related to stock-based compensation | 9,700,000 | 14,200,000 | 18,800,000 | |
Intrinsic value of options exercised | 300,000 | 2,000,000 | 900,000 | |
Resulting tax benefit from stock option exercises | $ 100,000 | $ 800,000 | $ 300,000 | |
Shares of common stock purchased from restricted stock award related to recipients' employment tax obligations | shares | 314,542 | 261,685 | 281,180 | |
Tax withholding from employee equity awards vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock purchased from restricted stock award related to recipients' employment tax obligations | shares | 300,000 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | shares | 248,749 | 2,359,672 | 783,758 | |
Fair value of restricted stock vested during the period | $ 32,400,000 | $ 28,000,000 | $ 20,000,000 | |
Annual Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Annual grant expense period (in years) | 1 year | |||
Sign On Grant | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Sign on grants requisite service period (in years) | 1 year | |||
Sign On Grant | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Sign on grants requisite service period (in years) | 5 years | |||
Restricted stock and restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 23,200,000 | |||
Weighted average period of unrecognized compensation cost related to restricted stock and restricted stock units | 1 year 3 months 15 days | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units, performance period | 36 months | |||
Number of shares granted | shares | 35,981 | 135,483 | 123,687 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 0 | |||
Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of stock options | 10 years | |||
Amended And Restated 2003 Annual And Long-Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity award grants authorized | shares | 8,200,000 | |||
Shares available for future issuance | shares | 1,000,000 | |||
2016 Employment Inducement Award Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Value of restricted stock granted | $ 11,600,000 | |||
Number of shares granted | shares | 286,776 | |||
Grant Year 2017 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award earning percentage | 150.00% | |||
Grant Year 2017 | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of years risk free interest rate | 3 years | |||
Average adjusted return on equity targets | Grant Year 2017 | Probability of achieving performance condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award earning percentage | 75.00% | |||
Average adjusted return on equity targets | Grant Year 2017 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award earning percentage | 75.00% | |||
Total shareholder return relative to members of a predetermined peer group | Grant Year 2017 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award earning percentage | 75.00% | |||
Total shareholder return relative to members of a predetermined peer group | Grant Years Prior to 2017 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award earning percentage | 50.00% | |||
Total Shareholder Return | Grant Years Prior to 2017 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award earning percentage | 50.00% |
Compensation Plans - Deferred C
Compensation Plans - Deferred Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
MFRS compensation expense | $ 39.1 | $ 54.1 | $ 48.2 |
Nonqualified Deferred Compensation Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Plan assets | 31.5 | 24.4 | |
Plan liabilities | $ 31.6 | 24.5 | |
Mutual Fund Restricted Shares Investment Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Award vesting period | 3 years | ||
MFRS compensation expense | $ 58.4 | $ 17.5 | $ 26.6 |
MFRS forfeitures | $ 1.3 | ||
New Employees | Mutual Fund Restricted Shares Investment Plan | Minimum | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Requisite service period | 2 years | ||
New Employees | Mutual Fund Restricted Shares Investment Plan | Maximum | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Requisite service period | 5 years |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Net income/(loss) applicable to Piper Jaffray Companies | $ (46,074) | $ (49,713) | $ 13,573 | $ 20,275 | $ (36,985) | $ 10,658 | $ 1,938 | $ 2,437 | $ (61,939) | $ (21,952) | $ 52,075 | ||
Earnings allocated to participating securities (1) | 2,936 | 0 | 4,015 | ||||||||||
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders (2) | $ (46,771) | $ (50,415) | $ 11,522 | $ 16,828 | $ (36,985) | $ 8,582 | $ 1,577 | $ 2,124 | $ (64,875) | [1] | $ (21,952) | [1] | $ 48,060 |
Shares for basic and diluted calculations: | |||||||||||||
Average shares used in basic computation | 12,906,000 | 12,898,000 | 12,826,000 | 12,594,000 | 12,337,000 | 12,282,000 | 12,927,000 | 13,160,000 | 12,807,000 | 12,674,000 | 14,368,000 | ||
Average shares used in diluted computation | 13,075,000 | 12,975,000 | 12,937,000 | 12,922,000 | 12,353,000 | 12,298,000 | 12,942,000 | 13,172,000 | 12,978,000 | [2] | 12,779,000 | [2] | 14,389,000 |
Earnings/(loss) per common share: | |||||||||||||
Basic | $ (3.63) | $ (3.91) | $ 0.89 | $ 1.33 | $ (3) | $ 0.70 | $ 0.12 | $ 0.16 | $ (5.07) | $ (1.73) | $ 3.34 | ||
Diluted | $ (3.63) | $ (3.91) | $ 0.89 | $ 1.31 | $ (3) | $ 0.70 | $ 0.12 | $ 0.16 | $ (5.07) | [2] | $ (1.73) | [2] | $ 3.34 |
Weighted average participating shares outstanding | 2,349,476 | 2,691,728 | 1,201,610 | ||||||||||
Common shares excluded from diluted EPS | 2,225,617 | 2,874,117 | |||||||||||
Stock options | |||||||||||||
Shares for basic and diluted calculations: | |||||||||||||
Dilutive impact of securities | 0 | 15,000 | 21,000 | ||||||||||
Restricted stock units | |||||||||||||
Shares for basic and diluted calculations: | |||||||||||||
Dilutive impact of securities | 171,000 | 90,000 | 0 | ||||||||||
[1] | No allocation of undistributed income was made due to loss position. See Note 22. | ||||||||||||
[2] | 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
Segment Reporting - Reportable Segment Financial Results (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | $ 633,837,000 | $ 490,340,000 | $ 414,118,000 | ||||||||
Institutional sales and trading | 154,563,000 | 161,186,000 | 154,889,000 | ||||||||
Management and performance fees | 56,835,000 | 60,672,000 | 75,017,000 | ||||||||
Investment income/(loss) | 18,002,000 | 24,602,000 | 10,736,000 | ||||||||
Net revenues | $ 236,082,000 | $ 240,567,000 | $ 197,745,000 | $ 200,529,000 | $ 222,463,000 | $ 200,847,000 | $ 170,483,000 | $ 153,556,000 | 874,923,000 | 747,349,000 | 672,918,000 |
Operating expenses (1) | 225,845,000 | 322,803,000 | 177,878,000 | 177,720,000 | 281,739,000 | 182,396,000 | 163,974,000 | 150,114,000 | 904,246,000 | 778,223,000 | 586,495,000 |
Segment pre-tax operating income/(loss) | $ 10,237,000 | $ (82,236,000) | $ 19,867,000 | $ 22,809,000 | $ (59,276,000) | $ 18,451,000 | $ 6,509,000 | $ 3,442,000 | $ (29,323,000) | $ (30,874,000) | $ 86,423,000 |
Segment pre-tax operating margin | (3.40%) | (4.10%) | 12.80% | ||||||||
Non-cash goodwill impairment charge | $ (114,363,000) | $ (82,900,000) | $ 0 | ||||||||
Intangible asset amortization | 15,400,000 | 21,214,000 | 7,662,000 | ||||||||
Capital Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | 635,733,000 | 490,828,000 | 414,826,000 | ||||||||
Institutional sales and trading | 171,172,000 | 179,458,000 | 172,889,000 | ||||||||
Management and performance fees | 5,566,000 | 6,363,000 | 4,642,000 | ||||||||
Investment income/(loss) | 17,640,000 | 24,791,000 | 24,468,000 | ||||||||
Long-term financing expenses | 7,676,000 | 9,136,000 | 7,494,000 | ||||||||
Net revenues | 822,435,000 | 692,304,000 | 609,331,000 | ||||||||
Operating expenses (1) | 738,339,000 | 645,863,000 | 530,937,000 | ||||||||
Segment pre-tax operating income/(loss) | $ 84,096,000 | $ 46,441,000 | $ 78,394,000 | ||||||||
Segment pre-tax operating margin | 10.20% | 6.70% | 12.90% | ||||||||
Non-cash goodwill impairment charge | $ 0 | $ 0 | |||||||||
Intangible asset amortization | 10,178,000 | 15,587,000 | $ 1,622,000 | ||||||||
Capital Markets | Equities financing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | 98,996,000 | 71,161,000 | 114,468,000 | ||||||||
Capital Markets | Debt financing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | 93,434,000 | 115,013,000 | 91,195,000 | ||||||||
Capital Markets | Advisory services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | 443,303,000 | 304,654,000 | 209,163,000 | ||||||||
Capital Markets | Equities | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Institutional sales and trading | 81,717,000 | 87,992,000 | 78,584,000 | ||||||||
Capital Markets | Fixed income | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Institutional sales and trading | 89,455,000 | 91,466,000 | 94,305,000 | ||||||||
Asset Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Management fees | 51,269,000 | 53,725,000 | 70,167,000 | ||||||||
Performance fees | 0 | 584,000 | 208,000 | ||||||||
Management and performance fees | 51,269,000 | 54,309,000 | 70,375,000 | ||||||||
Investment income/(loss) | 1,219,000 | 736,000 | (6,788,000) | ||||||||
Net revenues | 52,488,000 | 55,045,000 | 63,587,000 | ||||||||
Operating expenses (1) | 165,907,000 | 132,360,000 | 55,558,000 | ||||||||
Segment pre-tax operating income/(loss) | $ (113,419,000) | $ (77,315,000) | $ 8,029,000 | ||||||||
Segment pre-tax operating margin | (216.10%) | (140.50%) | 12.60% | ||||||||
Non-cash goodwill impairment charge | $ (114,363,000) | $ (82,900,000) | |||||||||
Intangible asset amortization | $ 5,222,000 | $ 5,627,000 | $ 6,040,000 |
Segment Reporting - Reportab106
Segment Reporting - Reportable Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Reportable segment assets | $ 2,024,683 | $ 2,125,503 |
Capital Markets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Reportable segment assets | 1,933,050 | 1,934,528 |
Asset Management | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Reportable segment assets | $ 91,633 | $ 190,975 |
Net Capital Requirements and107
Net Capital Requirements and Other Regulatory Matters - Additional Information (Details) | Dec. 31, 2017USD ($) |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Minimum net capital requirement | $ 1,000,000 |
Net capital | 137,600,000 |
Minimum net capital required | 136,600,000 |
Pershing clearing arrangement | |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Excess net capital required | 120,000,000 |
Committed Credit Facility | Senior Notes | |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Minimum net capital required | 120,000,000 |
Commercial Paper | CP Series II A | |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Excess net capital required | $ 100,000,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense/(Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ 27,611 | $ 11,704 | $ 33,818 | ||||||||
State | 5,550 | 2,454 | 7,030 | ||||||||
Foreign | 93 | (703) | 58 | ||||||||
Current Income Tax Expense (Benefit), Total | 33,254 | 13,455 | 40,906 | ||||||||
Deferred: | |||||||||||
Federal | 5,783 | (27,764) | (11,620) | ||||||||
State | (7,554) | (3,758) | (1,901) | ||||||||
Foreign | (1,254) | 939 | 556 | ||||||||
Deferred Income Tax Expense (Benefit) | (3,025) | (30,583) | (12,965) | ||||||||
Total income tax expense/(benefit) | $ 57,141 | $ (31,423) | $ 4,906 | $ (395) | $ (25,895) | $ 6,515 | $ 1,996 | $ 256 | $ 30,229 | $ (17,128) | $ 27,941 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal income tax expense/(benefit) at statutory rates | $ (10,263) | $ (10,806) | $ 30,248 | ||||||||
Impact of the Tax Cuts and Jobs Act | 54,154 | 0 | 0 | ||||||||
State income taxes, net of federal tax benefit | (791) | (1,110) | 3,155 | ||||||||
Net tax-exempt interest income | (5,040) | (4,600) | (4,299) | ||||||||
Foreign jurisdictions tax rate differential | 865 | 1,860 | 191 | ||||||||
Change in valuation allowance | (752) | 362 | 0 | ||||||||
Vestings of stock awards | 9,172 | 0 | 0 | ||||||||
Income attributable to noncontrolling interests | (835) | (2,872) | (2,243) | ||||||||
Other, net | 2,063 | 38 | 889 | ||||||||
Total income tax expense/(benefit) | $ 57,141 | $ (31,423) | $ 4,906 | $ (395) | $ (25,895) | $ 6,515 | $ 1,996 | $ 256 | $ 30,229 | $ (17,128) | $ 27,941 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Deferred compensation | $ 61,555 | $ 79,230 |
Goodwill tax basis in excess of book basis | 38,592 | 18,357 |
Net operating loss carry forwards | 4,789 | 3,900 |
Liabilities/accruals not currently deductible | 1,744 | 1,060 |
Other | 3,296 | 5,474 |
Total deferred tax assets | 109,976 | 108,021 |
Valuation allowance | (159) | (911) |
Deferred tax assets after valuation allowance | 109,817 | 107,110 |
Deferred tax liabilities: | ||
Unrealized gains on firm investments | 6,599 | 6,406 |
Fixed assets | 1,813 | 2,075 |
Other | 200 | 796 |
Total deferred tax liabilities | 8,612 | 9,277 |
Net deferred tax assets | $ 101,205 | $ 97,833 |
Income Taxes - Changes in Amoun
Income Taxes - Changes in Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 123 | $ 123 | $ 2,323 |
Additions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 166 | 0 | 0 |
Reductions for tax positions of prior years | 0 | 0 | (2,000) |
Settlements | (123) | 0 | (200) |
Ending Balance | $ 166 | $ 123 | $ 123 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||
Remeasurement of deferred tax assets due to a lower federal corporate rate | $ 54,154 | $ 0 | $ 0 | |
Statutory federal rate | 35.00% | |||
Deferred taxes upon repatriation of our foreign earnings | $ 0 | |||
Valuation allowance | (159) | (911) | ||
Unrecognized tax benefits that would impact effective tax rate | 200 | |||
Accruals related to the payment of interest and penalties | 0 | 0 | 0 | |
Resolution of uncertain tax positions | $ 123 | $ 0 | $ 200 | |
Next twelve months | ||||
Income Tax Contingency [Line Items] | ||||
Statutory federal rate | 21.00% | |||
Resolution of uncertain tax positions | $ 166 |
Piper Jaffray Companies (Par113
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 33,793 | $ 41,359 | $ 189,910 | $ 15,867 |
Other assets | 54,834 | 67,129 | ||
Total assets | 2,024,683 | 2,125,503 | ||
Liabilities and Shareholders' Equity | ||||
Senior notes | 125,000 | 175,000 | ||
Accrued compensation | 400,092 | 288,255 | ||
Other liabilities and accrued expenses | 49,800 | 42,553 | ||
Total liabilities | 1,283,448 | 1,309,237 | ||
Shareholders' equity | 693,332 | 759,250 | ||
Total liabilities and shareholders' equity | 2,024,683 | 2,125,503 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 2,348 | 1,170 | $ 48 | $ 200 |
Investment in and advances to subsidiaries | 827,158 | 941,215 | ||
Other assets | 21,120 | 22,031 | ||
Total assets | 850,626 | 964,416 | ||
Liabilities and Shareholders' Equity | ||||
Senior notes | 125,000 | 175,000 | ||
Accrued compensation | 30,579 | 27,756 | ||
Other liabilities and accrued expenses | 1,715 | 2,410 | ||
Total liabilities | 157,294 | 205,166 | ||
Shareholders' equity | 693,332 | 759,250 | ||
Total liabilities and shareholders' equity | $ 850,626 | $ 964,416 |
Piper Jaffray Companies (Par114
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||
Interest | $ 31,954 | $ 33,074 | $ 41,557 | ||||||||
Investment income/(loss) | 18,002 | 24,602 | 10,736 | ||||||||
Total revenues | $ 240,782 | $ 244,915 | $ 204,007 | $ 205,487 | $ 227,605 | $ 206,276 | $ 176,392 | $ 159,601 | 895,191 | 769,874 | 696,317 |
Net revenues | 236,082 | 240,567 | 197,745 | 200,529 | 222,463 | 200,847 | 170,483 | 153,556 | 874,923 | 747,349 | 672,918 |
Non-interest expenses: | |||||||||||
Total non-interest expenses | 225,845 | 322,803 | 177,878 | 177,720 | 281,739 | 182,396 | 163,974 | 150,114 | 904,246 | 778,223 | 586,495 |
Income tax expense | 57,141 | (31,423) | 4,906 | (395) | (25,895) | 6,515 | 1,996 | 256 | 30,229 | (17,128) | 27,941 |
Income of parent company | 46,904 | 50,813 | (14,961) | (23,204) | 33,381 | (11,936) | (4,513) | (3,186) | 59,552 | 13,746 | (58,482) |
Net income/(loss) applicable to Piper Jaffray Companies | $ (46,074) | $ (49,713) | $ 13,573 | $ 20,275 | $ (36,985) | $ 10,658 | $ 1,938 | $ 2,437 | (61,939) | (21,952) | 52,075 |
Parent Company | |||||||||||
Revenues: | |||||||||||
Dividends from subsidiaries | 120,102 | 104,016 | 37,649 | ||||||||
Interest | 1,125 | 994 | 650 | ||||||||
Investment income/(loss) | 4,060 | 1,835 | (2,033) | ||||||||
Total revenues | 125,287 | 106,845 | 36,266 | ||||||||
Interest expense | 7,170 | 8,195 | 6,406 | ||||||||
Net revenues | 118,117 | 98,650 | 29,860 | ||||||||
Non-interest expenses: | |||||||||||
Total non-interest expenses | 4,936 | 4,505 | 3,487 | ||||||||
Income before income tax expense and equity in income of subsidiaries | 113,181 | 94,145 | 26,373 | ||||||||
Income tax expense | 35,589 | 27,952 | 9,191 | ||||||||
Income of parent company | (77,592) | (66,193) | (17,182) | ||||||||
Equity in undistributed/(distributed in excess of) income of subsidiaries | (139,531) | (88,145) | 34,893 | ||||||||
Net income/(loss) applicable to Piper Jaffray Companies | $ (61,939) | $ (21,952) | $ 52,075 |
Piper Jaffray Companies (Par115
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||||||||||
Net income/(loss) | $ (46,074) | $ (49,713) | $ 13,573 | $ 20,275 | $ (36,985) | $ 10,658 | $ 1,938 | $ 2,437 | $ (61,939) | $ (21,952) | $ 52,075 |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | |||||||||||
Share-based and deferred compensation | 39,831 | 55,977 | 48,754 | ||||||||
Net cash provided by operating activities | 232,119 | 48,782 | 379,524 | ||||||||
Investing Activities: | |||||||||||
Repayment of note receivable | 0 | 0 | 1,500 | ||||||||
Net cash provided by/(used in) investing activities | (8,097) | (83,726) | (16,153) | ||||||||
Financing Activities: | |||||||||||
Issuance of senior notes | 0 | 0 | 125,000 | ||||||||
Repurchase of common stock | (25,481) | (70,859) | (132,925) | ||||||||
Payment of cash dividend | (18,947) | 0 | 0 | ||||||||
Net cash used in financing activities | (233,120) | (111,561) | (188,959) | ||||||||
Net increase/(decrease) in cash and cash equivalents | (7,566) | (148,551) | 174,043 | ||||||||
Cash and cash equivalents at beginning of year | 41,359 | 189,910 | 41,359 | 189,910 | 15,867 | ||||||
Cash and cash equivalents at end of year | 33,793 | 41,359 | 33,793 | 41,359 | 189,910 | ||||||
Parent Company | |||||||||||
Operating Activities: | |||||||||||
Net income/(loss) | (61,939) | (21,952) | 52,075 | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | |||||||||||
Share-based and deferred compensation | 208 | 944 | 70 | ||||||||
Equity in undistributed/(distributed in excess of) income of subsidiaries | 139,531 | 88,145 | (34,893) | ||||||||
Net cash provided by operating activities | 77,800 | 67,137 | 17,252 | ||||||||
Investing Activities: | |||||||||||
Repayment of note receivable | 0 | 0 | 1,500 | ||||||||
Net cash provided by/(used in) investing activities | 0 | 0 | 1,500 | ||||||||
Financing Activities: | |||||||||||
Issuance of senior notes | 0 | 0 | 125,000 | ||||||||
Repayment of senior notes | (50,000) | 0 | (75,000) | ||||||||
Advances from/(to) subsidiaries | (5,177) | (6,276) | 49,560 | ||||||||
Repurchase of common stock | (2,498) | (59,739) | (118,464) | ||||||||
Payment of cash dividend | (18,947) | 0 | 0 | ||||||||
Net cash used in financing activities | (76,622) | (66,015) | (18,904) | ||||||||
Net increase/(decrease) in cash and cash equivalents | 1,178 | 1,122 | (152) | ||||||||
Cash and cash equivalents at beginning of year | $ 1,170 | $ 48 | 1,170 | 48 | 200 | ||||||
Cash and cash equivalents at end of year | $ 2,348 | $ 1,170 | $ 2,348 | $ 1,170 | $ 48 |
Quarterly Information (unaud116
Quarterly Information (unaudited) - Quarterly Information Schedules (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Total revenues | $ 240,782,000 | $ 244,915,000 | $ 204,007,000 | $ 205,487,000 | $ 227,605,000 | $ 206,276,000 | $ 176,392,000 | $ 159,601,000 | $ 895,191,000 | $ 769,874,000 | $ 696,317,000 | ||
Interest expense | 4,700,000 | 4,348,000 | 6,262,000 | 4,958,000 | 5,142,000 | 5,429,000 | 5,909,000 | 6,045,000 | 20,268,000 | 22,525,000 | 23,399,000 | ||
Net revenues | 236,082,000 | 240,567,000 | 197,745,000 | 200,529,000 | 222,463,000 | 200,847,000 | 170,483,000 | 153,556,000 | 874,923,000 | 747,349,000 | 672,918,000 | ||
Non-interest expenses | 225,845,000 | 322,803,000 | 177,878,000 | 177,720,000 | 281,739,000 | 182,396,000 | 163,974,000 | 150,114,000 | 904,246,000 | 778,223,000 | 586,495,000 | ||
Income/(loss) before income tax expense/(benefit) | 10,237,000 | (82,236,000) | 19,867,000 | 22,809,000 | (59,276,000) | 18,451,000 | 6,509,000 | 3,442,000 | (29,323,000) | (30,874,000) | 86,423,000 | ||
Income tax expense/(benefit) | 57,141,000 | (31,423,000) | 4,906,000 | (395,000) | (25,895,000) | 6,515,000 | 1,996,000 | 256,000 | 30,229,000 | (17,128,000) | 27,941,000 | ||
Net income/(loss) | (46,904,000) | (50,813,000) | 14,961,000 | 23,204,000 | (33,381,000) | 11,936,000 | 4,513,000 | 3,186,000 | (59,552,000) | (13,746,000) | 58,482,000 | ||
Net income/(loss) applicable to noncontrolling interests | (830,000) | (1,100,000) | 1,388,000 | 2,929,000 | 3,604,000 | 1,278,000 | 2,575,000 | 749,000 | 2,387,000 | 8,206,000 | 6,407,000 | ||
Net income/(loss) applicable to Piper Jaffray Companies | (46,074,000) | (49,713,000) | 13,573,000 | 20,275,000 | (36,985,000) | 10,658,000 | 1,938,000 | 2,437,000 | (61,939,000) | (21,952,000) | 52,075,000 | ||
Net income/(loss) applicable to Piper Jaffray Companies' common shareholders | $ (46,771,000) | $ (50,415,000) | $ 11,522,000 | $ 16,828,000 | $ (36,985,000) | $ 8,582,000 | $ 1,577,000 | $ 2,124,000 | $ (64,875,000) | [1] | $ (21,952,000) | [1] | $ 48,060,000 |
Earnings/(loss) per common share | |||||||||||||
Basic | $ (3.63) | $ (3.91) | $ 0.89 | $ 1.33 | $ (3) | $ 0.70 | $ 0.12 | $ 0.16 | $ (5.07) | $ (1.73) | $ 3.34 | ||
Diluted | (3.63) | (3.91) | 0.89 | 1.31 | $ (3) | $ 0.70 | $ 0.12 | $ 0.16 | (5.07) | [2] | (1.73) | [2] | 3.34 |
Dividends declared per common share | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 1.25 | $ 0 | $ 0 | ||||||
Weighted average number of common shares | |||||||||||||
Basic | 12,906 | 12,898 | 12,826 | 12,594 | 12,337 | 12,282 | 12,927 | 13,160 | 12,807 | 12,674 | 14,368 | ||
Diluted | 13,075 | 12,975 | 12,937 | 12,922 | 12,353 | 12,298 | 12,942 | 13,172 | 12,978 | [2] | 12,779 | [2] | 14,389 |
Non-cash goodwill impairment charge | $ 114,363,000 | $ 82,900,000 | $ 0 | ||||||||||
Remeasurement of deferred tax assets due to a lower federal corporate rate | $ 54,154,000 | $ 0 | $ 0 | ||||||||||
[1] | No allocation of undistributed income was made due to loss position. See Note 22. | ||||||||||||
[2] | 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. |