Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, shares outstanding | 14,638,496 | ||
Entity Common Stock, shares outstanding held by non-affiliates | 14,717,742 | ||
Entity Public Float | $ 1.1 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Assets | ||||
Cash and cash equivalents | [1] | $ 50,364 | $ 33,793 | |
Receivables from brokers, dealers and clearing organizations | 235,278 | 145,394 | ||
Financial instruments and other inventory positions owned | 479,795 | 663,330 | ||
Financial instruments and other inventory positions owned and pledged as collateral | 147,427 | 720,047 | ||
Total financial instruments and other inventory positions owned | 627,222 | 1,383,377 | ||
Fixed assets (net of accumulated depreciation and amortization of $60,555 and $55,944, respectively) | 32,619 | 25,179 | ||
Goodwill | 81,855 | 81,855 | ||
Intangible assets (net of accumulated amortization of $95,877 and $85,417, respectively) | 12,374 | 22,834 | ||
Investments | 151,963 | 176,212 | ||
Net deferred income tax assets | 101,857 | 101,205 | ||
Other assets | 51,737 | 54,834 | ||
Total assets | 1,345,269 | 2,024,683 | ||
Liabilities and Shareholders' Equity | ||||
Short-term financing | 49,953 | 289,937 | ||
Senior notes | 0 | 125,000 | ||
Payables to brokers, dealers and clearing organizations | 8,657 | 19,392 | ||
Financial instruments and other inventory positions sold, but not yet purchased | 177,427 | 399,227 | ||
Accrued compensation | 333,522 | 400,092 | ||
Other liabilities and accrued expenses | 45,294 | 49,800 | ||
Total liabilities | 614,853 | 1,283,448 | ||
Shareholders' equity: | ||||
Common stock, $0.01 par value: Shares authorized: 100,000,000 at December 31, 2018 and December 31, 2017; Shares issued: 19,518,044 at December 31, 2018 and 19,512,914 at December 31, 2017; Shares outstanding: 12,995,397 at December 31, 2018 and 12,911,149 at December 31, 2017 | 195 | 195 | ||
Additional paid-in capital | 796,363 | 791,970 | ||
Retained earnings | 182,552 | [2] | 176,270 | |
Less common stock held in treasury, at cost: 6,522,647 shares at December 31, 2018 and 6,601,765 shares at December 31, 2017 | (300,268) | (273,824) | ||
Accumulated other comprehensive loss | (1,398) | (1,279) | ||
Total common shareholders' equity | 677,444 | 693,332 | ||
Noncontrolling interests | 52,972 | 47,903 | ||
Total shareholders' equity | 730,416 | 741,235 | ||
Total liabilities and shareholders' equity | $ 1,345,269 | $ 2,024,683 | ||
[1] | Upon adoption of ASU 2016-18, restricted cash includes cash and cash equivalents previously segregated for regulatory purposes. See Note 3 for further discussion. | |||
[2] | Includes the cumulative effect adjustment upon adoption of ASU 2014-09, as amended. See Note 3 for further discussion. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization on fixed assets | $ 60,555 | $ 55,944 |
Accumulated amortization on intangible assets | $ 95,877 | $ 85,417 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,518,044 | 19,512,914 |
Common stock, shares outstanding | 12,995,397 | 12,911,149 |
Common stock held in treasury, shares | 6,522,647 | 6,601,765 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Revenues: | |||||
Investment banking | $ 588,978 | $ 633,837 | $ 490,340 | ||
Institutional brokerage | 124,517 | 154,563 | 161,186 | ||
Asset management | 49,803 | 56,835 | 60,672 | ||
Interest | 32,749 | 31,954 | 33,074 | ||
Investment income | 4,946 | 18,002 | 24,602 | ||
Total revenues | 800,993 | 895,191 | 769,874 | ||
Interest expense | 16,551 | 20,268 | 22,525 | ||
Net revenues | 784,442 | 874,923 | 747,349 | ||
Non-interest expenses: | |||||
Compensation and benefits | 512,847 | 617,635 | 510,612 | ||
Outside services | 39,957 | 38,012 | 39,289 | ||
Occupancy and equipment | 35,721 | 33,462 | 34,813 | ||
Communications | 31,621 | 29,891 | 29,626 | ||
Marketing and business development | 29,377 | 31,293 | 30,404 | ||
Deal-related expenses | 25,120 | 0 | 0 | ||
Trade execution and clearance | 8,014 | 8,166 | 7,651 | ||
Restructuring and integration costs | 3,770 | 0 | 10,206 | ||
Goodwill impairment | 0 | 114,363 | 82,900 | ||
Intangible asset amortization | 10,460 | 15,400 | 21,214 | ||
Back office conversion costs | 0 | 3,927 | 561 | ||
Other operating expenses | 12,678 | 12,097 | 10,947 | ||
Total non-interest expenses | 709,565 | 904,246 | 778,223 | ||
Income/(loss) before income tax expense/(benefit) | 74,877 | (29,323) | (30,874) | ||
Income tax expense/(benefit) | 19,047 | 30,229 | (17,128) | ||
Net income/(loss) | 55,830 | (59,552) | (13,746) | ||
Net income/(loss) applicable to noncontrolling interests | (1,206) | 2,387 | 8,206 | ||
Net income/(loss) applicable to Piper Jaffray Companies | 57,036 | (61,939) | (21,952) | ||
Net income/(loss) applicable to Piper Jaffray Companies' common shareholders | $ 49,993 | $ (64,875) | [1] | $ (21,952) | [1] |
Earnings/(loss) per common share | |||||
Basic | $ 3.78 | $ (5.07) | $ (1.73) | ||
Diluted | 3.72 | (5.07) | [2] | (1.73) | [2] |
Dividends declared per common share | $ 3.12 | $ 1.25 | $ 0 | ||
Weighted average number of common shares outstanding | |||||
Basic | 13,234 | 12,807 | 12,674 | ||
Diluted | 13,425 | 12,978 | [2] | 12,779 | [2] |
[1] | No allocation of undistributed income was made due to loss position. See Note 20. | ||||
[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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | $ 55,830 | $ (59,552) | $ (13,746) |
Other comprehensive income/(loss), net of tax: | |||
Foreign currency translation adjustment | (119) | 1,320 | (2,410) |
Comprehensive income/(loss) | 55,711 | (58,232) | (16,156) |
Comprehensive income/(loss) applicable to noncontrolling interests | (1,206) | 2,387 | 8,206 |
Comprehensive income/(loss) applicable to Piper Jaffray Companies | $ 56,917 | $ (60,619) | $ (24,362) |
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 Loss | Total Common Shareholders' Equity | Noncontrolling Interests | ||
Beginning Balance (in shares) at Dec. 31, 2015 | 13,311,016 | |||||||||
Beginning 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) | 0 | 0 | 0 | 0 | 0 | 0 | (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 | ||
Net income/(loss) | 55,830 | 0 | 0 | 57,036 | 0 | 0 | 57,036 | (1,206) | ||
Dividends | (47,157) | 0 | 0 | (47,157) | 0 | 0 | (47,157) | |||
Dividends | 0 | |||||||||
Amortization/issuance of restricted stock | 48,448 | $ 0 | 48,448 | 0 | 0 | 0 | 48,448 | 0 | ||
Repurchase of common stock through share repurchase program (in shares) | (681,233) | |||||||||
Repurchase of common stock through share repurchase program | (47,142) | $ 0 | 0 | 0 | (47,142) | 0 | (47,142) | 0 | ||
Issuance of treasury shares for restricted stock vestings (in shares) | 1,040,015 | |||||||||
Issuance of treasury shares for restricted stock vestings | $ 0 | $ 0 | (44,459) | 0 | 44,459 | 0 | 0 | 0 | ||
Repurchase of common stock for employee tax withholding (in shares) | (279,664) | (279,664) | ||||||||
Repurchase of common stock for employee tax withholding | $ (23,761) | $ 0 | 0 | 0 | (23,761) | 0 | (23,761) | 0 | ||
Shares reserved/issued for director compensation (in shares) | 5,130 | |||||||||
Shares reserved/issued for director compensation | 404 | $ 0 | 404 | 0 | 0 | 0 | 404 | 0 | ||
Other comprehensive income/(loss) | (119) | 0 | 0 | 0 | 0 | (119) | (119) | 0 | ||
Cumulative effect upon adoption of new accounting standard, net of tax | (3,597) | [1] | 0 | 0 | (3,597) | 0 | 0 | (3,597) | [1] | 0 |
Fund capital contributions/(distributions), net | 6,275 | $ 0 | 0 | 0 | 0 | 0 | 0 | 6,275 | ||
Ending Balance (in shares) at Dec. 31, 2018 | 12,995,397 | |||||||||
Ending Balance at Dec. 31, 2018 | $ 730,416 | $ 195 | $ 796,363 | $ 182,552 | $ (300,268) | $ (1,398) | $ 677,444 | $ 52,972 | ||
[1] | Cumulative effect adjustment upon adoption of ASU 2014-09, as amended. See Note 3 for further discussion. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Operating Activities: | ||||
Net income/(loss) | $ 55,830 | $ (59,552) | $ (13,746) | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||
Depreciation and amortization of fixed assets | 8,358 | 7,252 | 6,410 | |
Deferred income taxes | (652) | (3,372) | (31,023) | |
Stock-based compensation | 44,285 | 39,831 | 55,977 | |
Goodwill impairment | 0 | 114,363 | 82,900 | |
Amortization of intangible assets | 10,460 | 15,400 | 21,214 | |
Amortization of forgivable loans | 5,138 | 6,740 | 8,785 | |
Receivables: | ||||
Customers | 0 | 31,917 | 9,272 | |
Brokers, dealers and clearing organizations | (89,884) | 67,336 | (64,781) | |
Securities purchased under agreements to resell | 0 | 159,697 | (24,591) | |
Net financial instruments and other inventory positions owned | 534,355 | (224,536) | (7,835) | |
Investments | 24,249 | (8,155) | (10,881) | |
Other assets | (1,961) | 6,467 | (20,992) | |
Payables: | ||||
Customers | 0 | (29,352) | (8,012) | |
Brokers, dealers and clearing organizations | (10,735) | (21,450) | (7,289) | |
Securities sold under agreements to repurchase | 0 | (15,046) | (1,127) | |
Accrued compensation | (61,526) | 109,108 | 30,396 | |
Other liabilities and accrued expenses | (8,067) | 6,456 | (27,902) | |
Net cash provided by/(used in) operating activities | 509,850 | 203,104 | (3,225) | |
Investing Activities: | ||||
Business acquisitions, net of cash acquired | 0 | 0 | (72,709) | |
Purchases of fixed assets, net | (15,859) | (8,097) | (11,017) | |
Net cash used in investing activities | (15,859) | (8,097) | (83,726) | |
Financing Activities: | ||||
Decrease in short-term financing | (239,984) | (128,895) | (27,358) | |
Repayment of senior notes | (125,000) | (50,000) | 0 | |
Decrease in securities sold under agreements to repurchase | 0 | 0 | (27,269) | |
Payment of cash dividend | (47,157) | (18,947) | 0 | |
Increase/(decrease) in noncontrolling interests | 6,275 | (11,500) | 9,064 | |
Repurchase of common stock | (70,903) | (25,481) | (70,859) | |
Excess tax benefit from stock-based compensation | 0 | 0 | 304 | |
Proceeds from stock option exercises | 0 | 1,703 | 4,557 | |
Net cash used in financing activities | (476,769) | (233,120) | (111,561) | |
Currency adjustment: | ||||
Effect of exchange rate changes on cash | (651) | 1,532 | (2,046) | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 16,571 | (36,581) | (200,558) | |
Cash, cash equivalents and restricted cash at beginning of year | [1] | 33,793 | 70,374 | 270,932 |
Cash, cash equivalents and restricted cash at end of year | [1] | 50,364 | 33,793 | 70,374 |
Supplemental disclosure of cash flow information – | ||||
Interest | 17,129 | 19,917 | 23,171 | |
Income taxes | $ 17,134 | $ 31,895 | $ 27,298 | |
[1] | Upon adoption of ASU 2016-18, restricted cash includes cash and cash equivalents previously segregated for regulatory purposes. See Note 3 for further discussion. |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
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; Piper Jaffray Finance LLC, which facilitates corporate debt underwriting in conjunction with affiliated credit vehicles; 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 financial advisory services, management of and participation in underwritings 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 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 master limited partnerships and equity securities 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, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards Revenue Recognition In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which supersedes previous 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 adopted this guidance effective as of January 1, 2018 under the modified retrospective method, in which the cumulative effect of applying the standard was recognized at the date of initial application. The cumulative effect adjustment that the Company recognized upon adoption as of January 1, 2018 was a decrease to retained earnings of $3.6 million , net of tax. The Company applied the guidance only to those contracts that were not completed at the date of initial application. The previous broker dealer industry treatment of netting deal expenses with investment banking revenues was superseded under the new guidance. As a result of adopting ASU 2014-09, the Company now presents investment banking revenues gross of related client reimbursed deal expenses and deal-related expenses as non-interest expenses on the consolidated statements of operations, rather than the previous presentation of netting deal expenses incurred for completed investment banking deals within revenues. For the year ended December 31, 2018, the Company reported higher investment banking revenues and higher non-compensation expenses of $25.1 million . This change did not impact earnings. In addition, the Company now defers 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. For the year ended December 31, 2018, the amount of asset management revenue from performance fees that the Company would have recognized if not for this change was not material. With the exception of the above, the Company's previous methods of recognizing investment banking revenues were not significantly impacted by the new guidance. 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 became effective for the Company as of January 1, 2018. There was no material impact to the Company's results of operations, financial position or disclosures upon adoption as the Company's financial instruments were already recorded at fair value. 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 became effective for the Company as of January 1, 2018, with retrospective application. There was no material impact to the Company's presentation of its consolidated statements of cash flows upon adoption of ASU 2016-15. 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 was effective for the Company as of January 1, 2018, with retrospective application. As a registered broker dealer, Piper Jaffray is subject to Rule 15c3-3 of the Securities Exchange Act of 1934, as amended, 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. These accounts were previously classified as cash and cash equivalents segregated for regulatory purposes on the consolidated statements of financial condition. 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. The following table provides a reconciliation of cash, cash equivalents and restricted cash for all periods presented on the consolidated statements of cash flows: December 31, December 31, December 31, (Dollars in thousands) 2017 2016 2015 Cash and cash equivalents $ 33,793 $ 41,359 $ 189,910 Cash and cash equivalents segregated for regulatory purposes — 29,015 81,022 Cash, cash equivalents and restricted cash $ 33,793 $ 70,374 $ 270,932 Future Adoption of New Applicable Accounting Standards 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 for all leases with a term longer than 12 months 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. The Company will adopt ASU 2016-02 as of January 1, 2019 using the modified retrospective approach. Upon adoption, the Company estimates that it will recognize a right-of-use asset of approximately $44.0 million and a lease liability of approximately $59.0 million . The difference between the right-of-use asset and the lease liability is due to lease incentives. The Company does not expect changes to the recognition of rent expense in its consolidated statements of operations upon adoption of ASU 2016-02. The new guidance is not expected to impact Piper Jaffray's net capital position. The Company continues to evaluate the new disclosure requirements of ASU 2016-02. 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. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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, 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. Customer and 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 2017. Pershing is Piper Jaffray's clearing broker dealer responsible for the clearance and settlement of firm and customer cash and security transactions. In addition, subsequent to transitioning to a fully disclosed clearing model, the Company no longer enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, and securities borrowed and loaned transactions. 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. 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 11 for additional information on the Company's goodwill impairment testing. Intangible assets with determinable lives consist of customer relationships and the Simmons & Company International trade name 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, which 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 and investments in registered mutual funds. Equity investments in private companies are accounted for at fair value, as required by accounting guidance or if the fair value option was elected. Investments in partnerships are accounted for under the equity method, which is generally the net asset value. Registered mutual funds are accounted for at fair value. Other Assets Other assets include receivables and prepaid expenses. Receivables include fee receivables, accrued interest, 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 advisory and underwriting fees, are recorded when the performance obligation for the transaction is satisfied 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 gross of related client reimbursed deal expenses. Expenses for completed deals are reported separately in deal-related expenses on the consolidated statements of operations. Expenses related to investment banking deals not completed are recognized as non-interest expenses in their respective category on the consolidated statements of operations. The Company's advisory fees generally consist of a nonrefundable up-front fee and a success fee. The nonrefundable fee is recorded as deferred revenue upon receipt and recognized at a point in time when the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management's judgment is required in determining when a transaction is considered to be terminated. The substantial majority of the Company's advisory and underwriting fees (i.e., the success related advisory fee) are considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is considered to be constrained until satisfaction of the performance obligation. The Company's performance obligation is generally satisfied at a point in time upon the closing of a strategic transaction, completion of a financing or underwriting arrangement, or some other defined outcome (e.g., providing a fairness opinion). At this time, the Company has transferred control of the promised service and the customer obtains control. As these arrangements represent a single performance obligation, allocation of the transaction price is not necessary. The Company has elected to apply the following optional exemptions regarding disclosure of its remaining performance obligations: (i) the Company's performance obligation is part of a contract that has an original expected duration of one year or less and/or (ii) the variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation. 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 recognized at a point in time on the trade date because the customer has obtained the rights to the underlying security provided by the trade execution service, (ii) trading gains and losses, recorded on changes in the fair value of long and short security positions in the reporting period 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 commission share agreements or "soft dollar" arrangements. As the Company is not acting as a principal in satisfying the performance obligation 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. The performance obligation related to the transfer of these services is satisfied over time and the related fees are recognized under the output method, which reflects the fees that the Company has a right to invoice based on the services provided during the period. Fees are defined in client contracts as a percentage of portfolio assets under management. Amounts related to remaining performance obligations are not disclosed as the Company applies the output method. Asset management revenues may also include performance fees. Performance fees, if earned, are recognized when it is probable that such revenue will not be reversed in a future period. For the Company's alternative asset management funds, management will consider such factors as the remaining assets and residual life of the fund to conclude whether it is probable that a significant reversal of revenue will not occur in the future. For the Company's traditional asset management funds, 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 (e.g., monthly, quarterly or annually). These performance fees are typically annual performance hurdles and recognized in the fourth quarter of the applicable year, or upon client liquidation. 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. Investment Income – Investment income includes realized and unrealized gains and losses from the Company's merchant banking, energy, senior living and other firm investments. See Note 21 for revenues from contracts with customers disaggregated by major business activity. 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 19 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, or for periods in which cash dividends exceed net income resulting in an undistributed loss. 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. 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 the Company's management. |
Acquisition of Simmons & Compan
Acquisition of Simmons & Company International | 12 Months Ended |
Dec. 31, 2018 | |
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 part of the purchase price, the Company issued 1,149,340 restricted shares of its common stock 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, 2018 , the Company had $1.3 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 in the aggregate amount 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 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, 2018 , the Company had accrued $39.7 million related to this performance award plan, of which $8.9 million , $27.0 million and $4.3 million was recorded as compensation expense for the years ended December 31, 2018 , 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. 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, 2018 | |
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) 2018 2017 Financial instruments and other inventory positions owned: Corporate securities: Equity securities $ 1,458 $ 51,896 Convertible securities 92,485 74,456 Fixed income securities 31,906 30,145 Municipal securities: Taxable securities 38,711 67,699 Tax-exempt securities 268,804 744,241 Short-term securities 52,472 62,251 Mortgage-backed securities 15 481 U.S. government agency securities 123,384 317,318 U.S. government securities 954 9,317 Derivative contracts 17,033 25,573 Total financial instruments and other inventory positions owned $ 627,222 $ 1,383,377 Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 82,082 $ 101,517 Fixed income securities 20,180 30,292 U.S. government agency securities 10,257 49,077 U.S. government securities 60,365 213,312 Derivative contracts 4,543 5,029 Total financial instruments and other inventory positions sold, but not yet purchased $ 177,427 $ 399,227 At December 31, 2018 and 2017 , financial instruments and other inventory positions owned in the amount of $147.4 million and $720.0 million , respectively, had been pledged as collateral for short-term financings. 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 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, 2018 December 31, 2017 (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 $ 181,199 $ 169,950 $ 2,532,966 $ 239,224 $ 225,890 $ 2,819,006 Trading securities 408 4,202 262,275 126 4,459 399,450 Equity options Trading securities — — — 6 — 9,635 $ 181,607 $ 174,152 $ 2,795,241 $ 239,356 $ 230,349 $ 3,228,091 (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 2018 2017 2016 Interest rate derivative contract Investment banking $ (1,880 ) $ (2,608 ) $ (4,151 ) Interest rate derivative contract Institutional brokerage 334 (16,772 ) 19,613 Credit default swap index contract Institutional brokerage — 4,482 4,317 Futures and equity option derivative contracts Institutional brokerage — (17 ) 255 $ (1,546 ) $ (14,915 ) $ 20,034 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, 2018 , the Company had $15.9 million of uncollateralized credit exposure with these counterparties (notional contract amount of $176.8 million ), including $12.5 million of uncollateralized credit exposure with one counterparty. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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. 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 (e.g., 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. To the extent we hold, 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 on spreads over U.S. treasury securities, or models based upon prepayment expectations. 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 and investments in registered mutual funds. Investments in registered mutual funds are valued based on quoted prices on active markets and classified as Level I. 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 $3.0 million and $14.1 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, 2018 and 2017 , 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 $0.6 million , $1.6 million and $1.8 million for the years ended December 31, 2018 , 2017 and 2016 , 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, 2018 : Valuation Weighted Technique Unobservable Input Range Average (1) Assets: Investments at fair value: Equity securities in private companies Market approach Revenue multiple (2) 2 - 5 times 4.4 times EBITDA multiple (2) 13 - 16 times 14.1 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 in basis points ("bps") (3) 1 - 8 bps 2.6 bps Uncertainty of fair value measurements: (1) Unobservable inputs were weighted by the relative fair value of the financial instruments. (2) Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly higher/(lower) fair value measurement. (3) Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly lower/(higher) fair value measurement. The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2018 : 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 $ 331 $ 1,127 $ — $ — $ 1,458 Convertible securities — 92,485 — — 92,485 Fixed income securities — 31,906 — — 31,906 Municipal securities: Taxable securities — 38,711 — — 38,711 Tax-exempt securities — 268,804 — — 268,804 Short-term securities — 52,472 — — 52,472 Mortgage-backed securities — — 15 — 15 U.S. government agency securities — 123,384 — — 123,384 U.S. government securities 954 — — — 954 Derivative contracts — 181,378 229 (164,574 ) 17,033 Total financial instruments and other inventory positions owned 1,285 790,267 244 (164,574 ) 627,222 Cash equivalents 20,581 — — — 20,581 Investments at fair value 33,587 2,649 107,792 (2) — 144,028 Total assets $ 55,453 $ 792,916 $ 108,036 $ (164,574 ) $ 791,831 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 81,575 $ 507 $ — $ — $ 82,082 Fixed income securities — 20,180 — — 20,180 U.S. government agency securities — 10,257 — — 10,257 U.S. government securities 60,365 — — — 60,365 Derivative contracts — 169,950 4,202 (169,609 ) 4,543 Total financial instruments and other inventory positions sold, but not yet purchased $ 141,940 $ 200,894 $ 4,202 $ (169,609 ) $ 177,427 (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 $53.0 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, 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 Company's Level III assets were $108.0 million and $128.1 million , or 13.6 percent and 8.2 percent of financial instruments measured at fair value at December 31, 2018 and 2017 , respectively. There were $1.2 million of transfers of financial assets out of Level III for the year ended December 31, 2018 . There were no other significant transfers between Level I, Level II or Level III for the year ended December 31, 2018 . 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) 2017 Purchases Sales in out (losses) (losses) 2018 2018 Assets: Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities $ 700 $ — $ — $ — $ (700 ) $ — $ — $ — $ — Short-term securities 714 — (775 ) — — 54 7 — — Mortgage-backed securities 481 — (5 ) — — — (461 ) 15 (95 ) Derivative contracts 126 725 (3,807 ) — — 3,082 103 229 229 Total financial instruments and other inventory positions owned 2,021 725 (4,587 ) — (700 ) 3,136 (351 ) 244 134 Investments at fair value 126,060 15,988 (36,444 ) — (502 ) 14,015 (11,325 ) 107,792 (1,775 ) Total assets $ 128,081 $ 16,713 $ (41,031 ) $ — $ (1,202 ) $ 17,151 $ (11,676 ) $ 108,036 $ (1,641 ) Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 4,433 $ (2,815 ) $ 3,266 $ — $ — $ (451 ) $ (231 ) $ 4,202 $ 4,202 Total financial instruments and other inventory positions sold, but not yet purchased $ 4,433 $ (2,815 ) $ 3,266 $ — $ — $ (451 ) $ (231 ) $ 4,202 $ 4,202 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) (losses) 2017 2017 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 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, receivables and payables either from or to 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 11 for further discussion. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entities | Variable Interest Entities ("VIEs") 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, 2018 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, 2018 . 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: Investments $ 103,884 Other assets 600 Total assets $ 104,484 Liabilities: Other liabilities and accrued expenses $ 1,340 Total liabilities $ 1,340 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 19 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 $0.4 billion and $0.6 billion at December 31, 2018 and 2017 , 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, 2018 . The Company had no liabilities related to these VIEs at December 31, 2018 and 2017 . 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, 2018 . |
Receivables from and Payables t
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 Receivable from clearing organizations $ 223,987 $ 109,270 Deposits with clearing organizations 230 11,019 Receivable from brokers and dealers 7,700 12,041 Receivable arising from unsettled securities transactions — 9,218 Other 3,361 3,846 Total receivables from brokers, dealers and clearing organizations $ 235,278 $ 145,394 December 31, December 31, (Dollars in thousands) 2018 2017 Payable to clearing organizations 4,734 — Payable to brokers and dealers $ 3,923 $ 18,584 Payable arising from unsettled securities transactions — 808 Total payables to brokers, dealers and clearing organizations $ 8,657 $ 19,392 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 . |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments The Company's investments include investments in private companies and partnerships and registered mutual funds. December 31, December 31, (Dollars in thousands) 2018 2017 Investments at fair value $ 144,028 $ 165,564 Investments at cost 1,512 2,416 Investments accounted for under the equity method 6,423 8,232 Total investments 151,963 176,212 Less investments attributable to noncontrolling interests (1) (52,972 ) (44,397 ) $ 98,991 $ 131,815 (1) Noncontrolling interests are attributable to third party ownership in consolidated merchant banking and senior living funds. At December 31, 2018 , investments carried on a cost basis had an estimated fair market value of $1.5 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, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets December 31, December 31, (Dollars in thousands) 2018 2017 Fee receivables $ 23,120 $ 20,884 Accrued interest receivables 4,240 6,981 Forgivable loans, net 7,568 7,452 Prepaid expenses 9,477 6,769 Other 7,332 12,748 Total other assets $ 51,737 $ 54,834 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 $ 81,855 $ 114,363 $ 196,218 Impairment charge — (114,363 ) (114,363 ) Balance at December 31, 2017 $ 81,855 $ — $ 81,855 Goodwill acquired — — — Balance at December 31, 2018 $ 81,855 $ — $ 81,855 Intangible assets 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 Intangible assets acquired — — — Amortization of intangible assets (4,858 ) (5,602 ) (10,460 ) Balance at December 31, 2018 $ 4,284 $ 8,090 $ 12,374 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 quantitative goodwill test, which requires management to make judgments in determining what assumptions to use in the calculation. The quantitative goodwill test compares the fair value of the reporting unit to its carrying value, including allocated goodwill. An impairment is recognized for the excess amount of a reporting unit's carrying value over its fair value. 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). The Company performed its annual goodwill impairment testing for its capital markets reporting unit as of October 31, 2018, which resulted in no impairment. The annual goodwill impairment testing for 2017 and 2016 resulted in no impairment associated with the capital markets reporting unit. The Company concluded there were $114.4 million and $82.9 million non-cash goodwill impairment charges relating to the asset management reporting unit in 2017 and 2016 , respectively. The Company also evaluated its intangible assets (indefinite and definite-lived) and concluded there was no impairment in 2018 , 2017 and 2016 , 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) 2019 $ 8,001 2020 1,256 2021 258 Total $ 9,515 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets December 31, December 31, (Dollars in thousands) 2018 2017 Furniture and equipment $ 44,216 $ 38,506 Leasehold improvements 37,342 31,290 Software 11,616 11,327 Total 93,174 81,123 Accumulated depreciation and amortization (60,555 ) (55,944 ) $ 32,619 $ 25,179 For the years ended December 31, 2018 , 2017 and 2016 , depreciation and amortization of furniture and equipment, leasehold improvements and software totaled $8.4 million , $7.3 million and $6.4 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, 2018 | |
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) 2018 2017 2018 2017 Commercial paper (secured) $ 49,953 $ 49,974 3.38 % 2.32 % Prime broker arrangement — 239,963 N/A 2.23 % Total short-term financing $ 49,953 $ 289,937 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. As of December 31, 2018 , the weighted average maturity of outstanding CP Notes was 10 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 covenant that requires the Company's U.S. broker dealer subsidiary to maintain excess net capital of $100 million . The Company had established an arrangement to obtain financing with a prime broker related to its municipal bond fund. Financing under this arrangement was primarily secured by municipal securities and collateral limitations could reduce the amount of funding available. Prime broker financing activities were recorded net of receivables from trading activity. The funding was at the discretion of the prime broker subject to a notice period. In the third quarter of 2018, the Company completed the liquidation of its municipal bond fund, and closed this prime broker arrangement. 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, 2018 consisted of a one -year $175 million committed revolving credit facility with U.S. Bank, N.A., which was renewed in December 2018. 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 13, 2019 . The Company pays a nonrefundable commitment fee on the unused portion of the facility on a quarterly basis. At December 31, 2018 , the Company had no advances against this line of credit. The Company's uncommitted secured line at December 31, 2018 was $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, 2018 , the Company had no advances against this line of credit. |
Senior Notes
Senior Notes | 12 Months Ended |
Dec. 31, 2018 | |
Senior Notes [Abstract] | |
Senior Notes | Senior Notes The Company entered into fixed and variable rate senior notes with certain entities advised by Pacific Investment Management Company. On October 8, 2015, the Company issued $125 million of Class C Notes. The Class C Notes were repaid in full on the October 9, 2018 maturity date. The $50 million of variable rate Class A Notes were repaid by the Company upon maturity on May 31, 2017. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 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 was immaterial for the years ended December 31, 2018 , 2017 and 2016 . 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, 2018 are as follows: (Dollars in thousands) 2019 $ 13,812 2020 13,686 2021 9,329 2022 7,984 2023 7,143 Thereafter 15,771 Total $ 67,725 Total minimum rentals to be received from 2019 through 2021 under noncancelable subleases were $2.9 million at December 31, 2018 . Rental expense, including operating costs and real estate taxes, was $18.2 million , $17.1 million and $17.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Investment Commitments As of December 31, 2018 , the Company had commitments to invest approximately $78.0 million in limited partnerships or limited liability companies that make direct or indirect equity or debt investments in companies. 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, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the year ended December 31, 2018 , the Company incurred pre-tax restructuring costs principally related to headcount reductions in both the Capital Markets and Asset Management segments. During the year ended December 31, 2016 , the Company incurred charges within the Capital Markets segment primarily in conjunction with its acquisition activities. Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Severance, benefits and outplacement costs $ 3,455 $ — $ 6,608 Vacated leased office space 130 — 1,320 Contract termination costs 185 — 1,026 Total pre-tax restructuring costs $ 3,770 $ — $ 8,954 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity The amended and restated 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 22 . 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 . Dividends Beginning in 2017, the Company initiated the payment of a quarterly cash dividend to holders of its common stock, which included unvested restricted shares with dividend rights. In addition, the Company's board of directors approved a dividend policy with the intention of returning a metric based on net income from the previous fiscal year. This includes an annual special cash dividend, payable in the first quarter of each year, beginning in 2018. In 2018 , the Company declared and paid quarterly cash dividends on its common stock, aggregating $1.50 per share, and an annual special cash dividend on its common stock related to fiscal 2017 results of $1.62 per share, totaling $47.2 million . In 2017 , the Company declared and paid quarterly cash dividends on its common stock, aggregating $1.25 per share, totaling $19.0 million . On February 1, 2019 , the Company's board of directors declared both a quarterly and annual special cash dividend on its common stock of $0.375 and $1.01 per share, respectively, to be paid on March 15, 2019 , to shareholders of record as of the close of business on February 25, 2019 . 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 September 30, 2017, the Company's board of directors authorized the repurchase of up to $150.0 million in shares of common stock through September 30, 2019 . In 2018 , the Company repurchased 681,233 shares at an average price of $69.20 per share for an aggregate purchase price of $47.1 million related to this authorization. No repurchases were made in conjunction with this authorization during the fourth quarter of 2017. The Company has $102.9 million remaining under this authorization. Effective August 14, 2015, the Company's board of directors authorized the repurchase of up to $150.0 million in shares of common stock 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. 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 279,664 shares or $23.8 million ; 314,542 shares or $23.0 million ; and 261,685 shares or $11.1 million of the Company's common stock for this purpose during the years ended December 31, 2018 , 2017 and 2016 , 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 19 . During the years ended December 31, 2018 , 2017 and 2016 , the Company issued 1,040,015 shares, 867,327 shares and 854,416 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 $50.2 million and a senior living fund aggregating $2.8 million as of December 31, 2018 . As of December 31, 2017 , noncontrolling interests included 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 . 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, 2018 , 2017 and 2016 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 2017 and 2016 , the Company incurred employee benefits expenses of $19.1 million , $19.9 million and $17.6 million , respectively. Health and Welfare Plans Company employees who meet certain work schedule and service requirements are eligible to participate in the Company's health and welfare plans. The Company subsidizes the cost of coverage for employees. The 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, 2018 , 2017 and 2016 , the Company recognized expense of $11.3 million , $12.0 million and $10.4 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. |
Compensation Plans
Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 : Incentive Plan Restricted Stock Annual grants 653,421 Sign-on grants 50,033 703,454 Inducement Plan Restricted Stock 254,058 Total restricted stock related to compensation 957,512 Simmons Deal Consideration (1) 612,283 Total restricted stock outstanding 1,569,795 Incentive Plan Restricted Stock Units Leadership grants 194,251 Incentive Plan Stock Options 81,667 (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 ( 0.8 million shares remained available for future issuance under the Incentive Plan as of December 31, 2018 ). 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 2018 for its February 2019 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"). 2018 and 2017 Leadership Grants Restricted stock units granted in 2018 and 2017 will vest and convert to shares of common stock at the end of each 36 -month performance period only if the Company satisfies predetermined performance and/or market conditions over the performance period. Under the terms of these awards, 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 each performance period. The maximum payout leverage under these grants 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 agreements. 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 restricted stock units upon termination of employment with a corresponding reversal of compensation expense. As of December 31, 2018 , the Company has determined that the performance condition is probable of achieving 50 percent of the 2018 award and 75 percent of the 2017 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 awards 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 restricted stock units upon termination of employment with a corresponding reversal of compensation expense. For this portion of the awards, 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 2018 2.40% 34.8% 2017 1.62% 35.9% Because the market condition portion of the awards vesting depend on the Company's total shareholder return relative to a peer group, the valuation modeled the performance of the peer group as well as the correlation between the Company and the peer group. The expected stock price volatility assumptions were determined using historical volatility, as correlation coefficients can only be developed through historical volatility. The risk-free interest rates were determined based on three -year U.S. Treasury bond yields. 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 retirement-eligible 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. 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 pursuant to the methodology above: Risk-free Expected Stock Grant Year Interest Rate Price Volatility 2016 0.98% 34.9% 2015 0.90% 29.8% Stock Options On February 15, 2018, the Company granted options to certain executive officers. These options are expensed on a straight-line basis over the required service period of five years , based on the estimated fair value of the award on the date of grant. The exercise price per share is equal to the closing price on the date of grant plus ten percent . These options are subject to graded vesting, beginning on the third anniversary of the grant date, so long as the employee remains continuously employed by the Company. The maximum term of these stock options is ten years. The fair value of this stock option award was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Risk-free interest rate 2.82% Dividend yield 3.22% Expected stock price volatility 37.20% Expected life of options (in years) 7.0 Fair value of options granted (per share) $24.49 The risk-free interest rate assumption was based on the U.S. Treasury bond yield with a maturity equal to the expected life of the options. The dividend yield assumption was based on the assumed dividend payout over the expected life of the options. The expected stock price volatility assumption was determined using historical volatility, as correlation coefficients can only be developed through historical volatility. 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 16, 2016 . These shares cliff vest on May 16, 2019. 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 following table summarizes the Company's stock-based compensation expense: Year Ended December 31, (amounts in millions) 2018 2017 2016 Stock-based compensation expense $ 43.3 $ 39.1 $ 54.1 Forfeitures 0.9 3.0 1.4 Tax benefit related to stock-based compensation expense 7.0 9.7 14.2 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, 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 Granted 310,494 88.18 Vested (945,550 ) 47.65 Canceled (20,766 ) 54.53 December 31, 2018 1,569,795 $ 53.80 The fair value of restricted stock that vested during the years ended December 31, 2018 , 2017 and 2016 was $45.1 million , $32.4 million and $28.0 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, 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 Granted 53,796 92.93 Vested (86,511 ) 21.83 Canceled (17,806 ) 23.91 December 31, 2018 194,251 $ 48.97 As of December 31, 2018 , there was $6.4 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, 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 $ — Granted 81,667 99.00 Exercised — — Canceled — — Expired — — December 31, 2018 81,667 $ 99.00 9.1 $ — Options exercisable at December 31, 2016 30,613 $ 65.86 0.3 $ 203,291 Options exercisable at December 31, 2017 — $ — 0 $ — Options exercisable at December 31, 2018 — $ — 0 $ — As of December 31, 2018 , there was $1.6 million of unrecognized compensation cost related to stock options expected to be recognized over a weighted average period of 4.1 years. There were no options exercised during the year ended December 31, 2018 . For the year ended December 31, 2017 , 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, 2016 , the intrinsic value of options exercised and the resulting tax benefit realized was $2.0 million and $0.8 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 2019, 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 Piper Jaffray Companies Mutual Fund Restricted Share Investment Plan is a fully funded deferred compensation plan which allows eligible employees to receive a portion of their incentive compensation 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 recorded compensation expense of $50.2 million , $60.2 million and $17.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, related to employee MFRS Awards, less forfeitures. Forfeitures were $1.6 million , $1.3 million and $0.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The nonqualified deferred compensation plan is an unfunded plan which allowed certain highly compensated employees, at their election, to defer a portion of their compensation. In 2017, this plan was closed to future deferral elections by participants for performance periods beginning after December 31, 2017. 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 $31.2 million and $31.5 million as of December 31, 2018 and 2017 , respectively, and are included in investments on the consolidated statements of financial condition. The compensation deferred by the employees was expensed in the period earned. The deferred compensation liability was $31.4 million and $31.6 million as of December 31, 2018 and 2017 , 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share ("EPS") 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, or for periods in which cash dividends exceed net income resulting in an undistributed loss. 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) 2018 2017 2016 Net income/(loss) applicable to Piper Jaffray Companies $ 57,036 $ (61,939 ) $ (21,952 ) Earnings allocated to participating securities (1) (7,043 ) (2,936 ) — Net income/(loss) applicable to Piper Jaffray Companies' common shareholders (2) $ 49,993 $ (64,875 ) $ (21,952 ) Shares for basic and diluted calculations: Average shares used in basic computation 13,234 12,807 12,674 Stock options — — 15 Restricted stock units 191 171 90 Average shares used in diluted computation (3) 13,425 12,978 12,779 Earnings/(loss) per common share: Basic $ 3.78 $ (5.07 ) $ (1.73 ) Diluted (3) $ 3.72 $ (5.07 ) $ (1.73 ) (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, or for periods in which cash dividends exceed net income resulting in an undistributed loss. 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 1,868,883 ; 2,349,476 ; and 2,691,728 for the years ended December 31, 2018 , 2017 and 2016 , 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, or for periods in which cash dividends exceed net income resulting in an undistributed loss. 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, 2018 , 2017 and 2016 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Capital Markets Investment banking Advisory services $ 394,133 $ 443,303 $ 304,654 Financing Equities 122,172 98,996 71,161 Debt 73,262 93,434 115,013 Total investment banking 589,567 635,733 490,828 Institutional sales and trading Equities 77,477 81,717 87,992 Fixed income 67,563 89,455 91,466 Total institutional sales and trading 145,040 171,172 179,458 Management and performance fees 6,318 5,566 6,363 Investment income 6,290 17,640 24,791 Long-term financing expenses (5,793 ) (7,676 ) (9,136 ) Net revenues 741,422 822,435 692,304 Operating expenses (1) 663,684 738,339 645,863 Segment pre-tax operating income $ 77,738 $ 84,096 $ 46,441 Segment pre-tax operating margin 10.5 % 10.2 % 6.7 % Continued on next page Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Asset Management Management and performance fees Management fees $ 43,461 $ 51,269 $ 53,725 Performance fees 24 — 584 Total management and performance fees 43,485 51,269 54,309 Investment income/(loss) (465 ) 1,219 736 Net revenues 43,020 52,488 55,045 Operating expenses (1) 45,881 165,907 132,360 Segment pre-tax operating loss $ (2,861 ) $ (113,419 ) $ (77,315 ) Segment pre-tax operating margin (6.7 )% (216.1 )% (140.5 )% Total Net revenues $ 784,442 $ 874,923 $ 747,349 Operating expenses (1) 709,565 904,246 778,223 Pre-tax operating income/(loss) $ 74,877 $ (29,323 ) $ (30,874 ) Pre-tax operating margin 9.5 % (3.4 )% (4.1 )% (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) 2018 2017 2016 Capital Markets $ 4,858 $ 10,178 $ 15,587 Asset Management 5,602 5,222 5,627 Total intangible asset amortization $ 10,460 $ 15,400 $ 21,214 Reportable segment assets are as follows: December 31, December 31, (Dollars in thousands) 2018 2017 Capital Markets $ 1,273,147 $ 1,933,050 Asset Management 72,122 91,633 Total assets $ 1,345,269 $ 2,024,683 |
Net Capital Requirements and Ot
Net Capital Requirements and Other Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , net capital calculated under the SEC rule was $222.3 million , and exceeded the minimum net capital required under the SEC rule by $221.3 million . The Company's committed short-term credit facility includes a covenant 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, 2018 , 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, 2018 , 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, 2018 | |
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 Cuts and Jobs 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. Securities and Exchange Commission Staff Accounting Bulletin No. 118, "Income Tax Accounting Implications of the Tax Cuts and Jobs Act" ("SAB 118") provides guidance on the application of ASC 740 as it pertained to the Tax Cuts and Jobs Act. SAB 118 permitted companies to report a provisional amount in the financial statements if the accounting for income tax effects of the Tax Cuts and Jobs Act was incomplete as of December 31, 2017. This provisional amount would be subject to adjustment during a defined measurement period, which was limited to one year from the enactment date of December 22, 2017. In accordance with SAB 118, the Company made a reasonable estimate of the impact of the Tax Cuts and Jobs 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. Pursuant to the defined measurement period in SAB 118, the Company recorded an additional $1.0 million of income tax expense for the year ended December 31, 2018 . The accounting for the income tax effects of the Tax Cuts and Jobs Act is complete as of December 31, 2018. The components of income tax expense/(benefit) are as follows: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Current: Federal $ 12,747 $ 27,611 $ 11,704 State 4,783 5,550 2,454 Foreign 276 93 (703 ) 17,806 33,254 13,455 Deferred: Federal (4,151 ) 5,783 (27,764 ) State 907 (7,554 ) (3,758 ) Foreign 4,485 (1,254 ) 939 1,241 (3,025 ) (30,583 ) Total income tax expense/(benefit) $ 19,047 $ 30,229 $ (17,128 ) 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) 2018 2017 2016 Federal income tax expense/(benefit) at statutory rates $ 15,724 $ (10,263 ) $ (10,806 ) Increase/(reduction) in taxes resulting from: Impact of the Tax Cuts and Jobs Act 952 54,154 — State income taxes, net of federal tax benefit 3,483 (791 ) (1,110 ) Net tax-exempt interest income (3,034 ) (5,040 ) (4,600 ) Foreign jurisdictions tax rate differential 1,067 865 1,860 Non-deductible compensation 1,999 — — Change in valuation allowance 5,299 (752 ) 362 Vestings of stock awards (7,103 ) (9,172 ) — Loss/(income) attributable to noncontrolling interests 253 (835 ) (2,872 ) Other, net 407 2,063 38 Total income tax expense/(benefit) $ 19,047 $ 30,229 $ (17,128 ) 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, 2018 , 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) 2018 2017 Deferred tax assets: Deferred compensation $ 67,563 $ 61,555 Goodwill tax basis in excess of book basis 35,614 38,592 Net operating loss carryforwards 5,554 4,789 Liabilities/accruals not currently deductible 1,117 1,744 Other 4,976 3,296 Total deferred tax assets 114,824 109,976 Valuation allowance (5,458 ) (159 ) Deferred tax assets after valuation allowance 109,366 109,817 Deferred tax liabilities: Unrealized gains on firm investments 4,464 6,599 Fixed assets 2,450 1,813 Other 595 200 Total deferred tax liabilities 7,509 8,612 Net deferred tax assets $ 101,857 $ 101,205 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 $5.5 million in state and foreign 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, 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 Additions based on tax positions related to the current year 608 Additions for tax positions of prior years — Reductions for tax positions of prior years — Settlements — Balance at December 31, 2018 $ 774 As of December 31, 2018 , approximately $0.8 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, 2018 , 2017 and 2016 , 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 2015 and is not subject to examination by state and local or non-U.S. tax authorities for taxable years before 2014 . The Company does not anticipate 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, 2018 | |
Condensed Financial Information 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) 2018 2017 Assets Cash and cash equivalents $ 254 $ 2,348 Investment in and advances to subsidiaries 676,516 827,158 Other assets 27,529 21,120 Total assets $ 704,299 $ 850,626 Liabilities and Shareholders' Equity Senior notes $ — $ 125,000 Accrued compensation 26,081 30,579 Other liabilities and accrued expenses 774 1,715 Total liabilities 26,855 157,294 Shareholders' equity 677,444 693,332 Total liabilities and shareholders' equity $ 704,299 $ 850,626 Condensed Statements of Operations Year Ended December 31, (Amounts in thousands) 2018 2017 2016 Revenues: Dividends from subsidiaries $ 84,896 $ 120,102 $ 104,016 Interest 1,247 1,125 994 Investment income/(loss) (496 ) 4,060 1,835 Total revenues 85,647 125,287 106,845 Interest expense 4,902 7,170 8,195 Net revenues 80,745 118,117 98,650 Non-interest expenses: Total non-interest expenses 5,844 4,936 4,505 Income before income tax expense and equity in income of subsidiaries 74,901 113,181 94,145 Income tax expense 12,612 35,589 27,952 Income of parent company 62,289 77,592 66,193 Equity distributed in excess of subsidiaries income (5,253 ) (139,531 ) (88,145 ) Net income/(loss) $ 57,036 $ (61,939 ) $ (21,952 ) Condensed Statements of Cash Flows Year Ended December 31, (Amounts in thousands) 2018 2017 2016 Operating Activities: Net income/(loss) $ 57,036 $ (61,939 ) $ (21,952 ) Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Stock-based and deferred compensation 404 208 944 Equity distributed in excess of subsidiaries income 5,253 139,531 88,145 Net cash provided by operating activities 62,693 77,800 67,137 Financing Activities: Repayment of senior notes (125,000 ) (50,000 ) — Advances from/(to) subsidiaries 154,512 (5,177 ) (6,276 ) Repurchase of common stock (47,142 ) (2,498 ) (59,739 ) Payment of cash dividend (47,157 ) (18,947 ) — Net cash used in financing activities (64,787 ) (76,622 ) (66,015 ) Net increase/(decrease) in cash, cash equivalents and restricted cash (2,094 ) 1,178 1,122 Cash, cash equivalents and restricted cash at beginning of year 2,348 1,170 48 Cash, cash equivalents and restricted cash at end of year $ 254 $ 2,348 $ 1,170 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 25, 2019 , the Company signed a definitive agreement to acquire Weeden & Co., L.P., a broker dealer specializing in equity security sales and trading, for total consideration of approximately $42.0 million , consisting of $24.5 million in cash and $17.5 million in restricted cash consideration and retention stock. Additional consideration up to $31.5 million may be earned if certain revenue targets are achieved. The transaction is expected to close in the second quarter of 2019, subject to regulatory approvals and customary closing conditions. |
Quarterly Information (unaudite
Quarterly Information (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (unaudited) | Quarterly Information (unaudited) 2018 Fiscal Quarter (Amounts in thousands, except per share data) First Second Third Fourth Total revenues $ 174,400 $ 178,580 $ 221,233 $ 226,780 Interest expense 5,338 5,099 3,705 2,409 Net revenues 169,062 173,481 217,528 224,371 Non-interest expenses 161,024 168,222 187,893 192,426 Income before income tax expense/(benefit) 8,038 5,259 29,635 31,945 Income tax expense/(benefit) (2,581 ) 567 7,365 13,696 Net income 10,619 4,692 22,270 18,249 Net income/(loss) applicable to noncontrolling interests 16 (1,534 ) 247 65 Net income applicable to Piper Jaffray Companies $ 10,603 $ 6,226 $ 22,023 18,184 Net income applicable to Piper Jaffray Companies' common shareholders $ 6,435 $ 5,522 $ 19,377 $ 16,164 Earnings per common share Basic $ 0.47 $ 0.43 $ 1.45 $ 1.22 Diluted $ 0.47 $ 0.43 $ 1.43 $ 1.21 Dividends declared per common share $ 1.995 $ 0.375 $ 0.375 $ 0.375 Weighted average number of common shares Basic 13,096 13,303 13,343 13,191 Diluted 13,382 13,438 13,508 13,367 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 Cuts and Jobs Act. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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, 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. |
Collateralized Securities Transactions | Customer and 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 2017. Pershing is Piper Jaffray's clearing broker dealer responsible for the clearance and settlement of firm and customer cash and security transactions. In addition, subsequent to transitioning to a fully disclosed clearing model, the Company no longer enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, and securities borrowed and loaned transactions. |
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. |
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 11 for additional information on the Company's goodwill impairment testing. Intangible assets with determinable lives consist of customer relationships and the Simmons & Company International trade name 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, which 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 and investments in registered mutual funds. Equity investments in private companies are accounted for at fair value, as required by accounting guidance or if the fair value option was elected. Investments in partnerships are accounted for under the equity method, which is generally the net asset value. Registered mutual funds are accounted for at fair value. |
Other Assets | Other Assets Other assets include receivables and prepaid expenses. Receivables include fee receivables, accrued interest, 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 advisory and underwriting fees, are recorded when the performance obligation for the transaction is satisfied 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 gross of related client reimbursed deal expenses. Expenses for completed deals are reported separately in deal-related expenses on the consolidated statements of operations. Expenses related to investment banking deals not completed are recognized as non-interest expenses in their respective category on the consolidated statements of operations. The Company's advisory fees generally consist of a nonrefundable up-front fee and a success fee. The nonrefundable fee is recorded as deferred revenue upon receipt and recognized at a point in time when the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management's judgment is required in determining when a transaction is considered to be terminated. The substantial majority of the Company's advisory and underwriting fees (i.e., the success related advisory fee) are considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is considered to be constrained until satisfaction of the performance obligation. The Company's performance obligation is generally satisfied at a point in time upon the closing of a strategic transaction, completion of a financing or underwriting arrangement, or some other defined outcome (e.g., providing a fairness opinion). At this time, the Company has transferred control of the promised service and the customer obtains control. As these arrangements represent a single performance obligation, allocation of the transaction price is not necessary. The Company has elected to apply the following optional exemptions regarding disclosure of its remaining performance obligations: (i) the Company's performance obligation is part of a contract that has an original expected duration of one year or less and/or (ii) the variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation. 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 recognized at a point in time on the trade date because the customer has obtained the rights to the underlying security provided by the trade execution service, (ii) trading gains and losses, recorded on changes in the fair value of long and short security positions in the reporting period 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 commission share agreements or "soft dollar" arrangements. As the Company is not acting as a principal in satisfying the performance obligation 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. The performance obligation related to the transfer of these services is satisfied over time and the related fees are recognized under the output method, which reflects the fees that the Company has a right to invoice based on the services provided during the period. Fees are defined in client contracts as a percentage of portfolio assets under management. Amounts related to remaining performance obligations are not disclosed as the Company applies the output method. Asset management revenues may also include performance fees. Performance fees, if earned, are recognized when it is probable that such revenue will not be reversed in a future period. For the Company's alternative asset management funds, management will consider such factors as the remaining assets and residual life of the fund to conclude whether it is probable that a significant reversal of revenue will not occur in the future. For the Company's traditional asset management funds, 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 (e.g., monthly, quarterly or annually). These performance fees are typically annual performance hurdles and recognized in the fourth quarter of the applicable year, or upon client liquidation. 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. Investment Income – Investment income includes realized and unrealized gains and losses from the Company's merchant banking, energy, senior living and other firm investments. See Note 21 for revenues from contracts with customers disaggregated by major business activity. |
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 19 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, or for periods in which cash dividends exceed net income resulting in an undistributed loss. 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. |
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 the Company's management. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash for all periods presented on the consolidated statements of cash flows: December 31, December 31, December 31, (Dollars in thousands) 2017 2016 2015 Cash and cash equivalents $ 33,793 $ 41,359 $ 189,910 Cash and cash equivalents segregated for regulatory purposes — 29,015 81,022 Cash, cash equivalents and restricted cash $ 33,793 $ 70,374 $ 270,932 |
Financial Instruments and Oth_2
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, 2018 | |
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) 2018 2017 Financial instruments and other inventory positions owned: Corporate securities: Equity securities $ 1,458 $ 51,896 Convertible securities 92,485 74,456 Fixed income securities 31,906 30,145 Municipal securities: Taxable securities 38,711 67,699 Tax-exempt securities 268,804 744,241 Short-term securities 52,472 62,251 Mortgage-backed securities 15 481 U.S. government agency securities 123,384 317,318 U.S. government securities 954 9,317 Derivative contracts 17,033 25,573 Total financial instruments and other inventory positions owned $ 627,222 $ 1,383,377 Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 82,082 $ 101,517 Fixed income securities 20,180 30,292 U.S. government agency securities 10,257 49,077 U.S. government securities 60,365 213,312 Derivative contracts 4,543 5,029 Total financial instruments and other inventory positions sold, but not yet purchased $ 177,427 $ 399,227 |
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, 2018 December 31, 2017 (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 $ 181,199 $ 169,950 $ 2,532,966 $ 239,224 $ 225,890 $ 2,819,006 Trading securities 408 4,202 262,275 126 4,459 399,450 Equity options Trading securities — — — 6 — 9,635 $ 181,607 $ 174,152 $ 2,795,241 $ 239,356 $ 230,349 $ 3,228,091 (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. |
Unrealized Gains/(Losses) on Derivative Instruments | The following table presents the Company's unrealized gains/(losses) on derivative instruments: (Dollars in thousands) Year Ended December 31, Derivative Category Operations Category 2018 2017 2016 Interest rate derivative contract Investment banking $ (1,880 ) $ (2,608 ) $ (4,151 ) Interest rate derivative contract Institutional brokerage 334 (16,772 ) 19,613 Credit default swap index contract Institutional brokerage — 4,482 4,317 Futures and equity option derivative contracts Institutional brokerage — (17 ) 255 $ (1,546 ) $ (14,915 ) $ 20,034 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 : Valuation Weighted Technique Unobservable Input Range Average (1) Assets: Investments at fair value: Equity securities in private companies Market approach Revenue multiple (2) 2 - 5 times 4.4 times EBITDA multiple (2) 13 - 16 times 14.1 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 in basis points ("bps") (3) 1 - 8 bps 2.6 bps Uncertainty of fair value measurements: (1) Unobservable inputs were weighted by the relative fair value of the financial instruments. (2) Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly higher/(lower) fair value measurement. (3) Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly lower/(higher) fair value measurement. |
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, 2018 : 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 $ 331 $ 1,127 $ — $ — $ 1,458 Convertible securities — 92,485 — — 92,485 Fixed income securities — 31,906 — — 31,906 Municipal securities: Taxable securities — 38,711 — — 38,711 Tax-exempt securities — 268,804 — — 268,804 Short-term securities — 52,472 — — 52,472 Mortgage-backed securities — — 15 — 15 U.S. government agency securities — 123,384 — — 123,384 U.S. government securities 954 — — — 954 Derivative contracts — 181,378 229 (164,574 ) 17,033 Total financial instruments and other inventory positions owned 1,285 790,267 244 (164,574 ) 627,222 Cash equivalents 20,581 — — — 20,581 Investments at fair value 33,587 2,649 107,792 (2) — 144,028 Total assets $ 55,453 $ 792,916 $ 108,036 $ (164,574 ) $ 791,831 Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 81,575 $ 507 $ — $ — $ 82,082 Fixed income securities — 20,180 — — 20,180 U.S. government agency securities — 10,257 — — 10,257 U.S. government securities 60,365 — — — 60,365 Derivative contracts — 169,950 4,202 (169,609 ) 4,543 Total financial instruments and other inventory positions sold, but not yet purchased $ 141,940 $ 200,894 $ 4,202 $ (169,609 ) $ 177,427 (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 $53.0 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, 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. |
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) 2017 Purchases Sales in out (losses) (losses) 2018 2018 Assets: Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities $ 700 $ — $ — $ — $ (700 ) $ — $ — $ — $ — Short-term securities 714 — (775 ) — — 54 7 — — Mortgage-backed securities 481 — (5 ) — — — (461 ) 15 (95 ) Derivative contracts 126 725 (3,807 ) — — 3,082 103 229 229 Total financial instruments and other inventory positions owned 2,021 725 (4,587 ) — (700 ) 3,136 (351 ) 244 134 Investments at fair value 126,060 15,988 (36,444 ) — (502 ) 14,015 (11,325 ) 107,792 (1,775 ) Total assets $ 128,081 $ 16,713 $ (41,031 ) $ — $ (1,202 ) $ 17,151 $ (11,676 ) $ 108,036 $ (1,641 ) Liabilities: Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 4,433 $ (2,815 ) $ 3,266 $ — $ — $ (451 ) $ (231 ) $ 4,202 $ 4,202 Total financial instruments and other inventory positions sold, but not yet purchased $ 4,433 $ (2,815 ) $ 3,266 $ — $ — $ (451 ) $ (231 ) $ 4,202 $ 4,202 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) (losses) 2017 2017 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 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 . 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: Investments $ 103,884 Other assets 600 Total assets $ 104,484 Liabilities: Other liabilities and accrued expenses $ 1,340 Total liabilities $ 1,340 |
Receivables from and Payables_2
Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Brokers and Dealers [Abstract] | |
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | December 31, December 31, (Dollars in thousands) 2018 2017 Receivable from clearing organizations $ 223,987 $ 109,270 Deposits with clearing organizations 230 11,019 Receivable from brokers and dealers 7,700 12,041 Receivable arising from unsettled securities transactions — 9,218 Other 3,361 3,846 Total receivables from brokers, dealers and clearing organizations $ 235,278 $ 145,394 December 31, December 31, (Dollars in thousands) 2018 2017 Payable to clearing organizations 4,734 — Payable to brokers and dealers $ 3,923 $ 18,584 Payable arising from unsettled securities transactions — 808 Total payables to brokers, dealers and clearing organizations $ 8,657 $ 19,392 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of Investments | The Company's investments include investments in private companies and partnerships and registered mutual funds. December 31, December 31, (Dollars in thousands) 2018 2017 Investments at fair value $ 144,028 $ 165,564 Investments at cost 1,512 2,416 Investments accounted for under the equity method 6,423 8,232 Total investments 151,963 176,212 Less investments attributable to noncontrolling interests (1) (52,972 ) (44,397 ) $ 98,991 $ 131,815 (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, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | December 31, December 31, (Dollars in thousands) 2018 2017 Fee receivables $ 23,120 $ 20,884 Accrued interest receivables 4,240 6,981 Forgivable loans, net 7,568 7,452 Prepaid expenses 9,477 6,769 Other 7,332 12,748 Total other assets $ 51,737 $ 54,834 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 $ 81,855 $ 114,363 $ 196,218 Impairment charge — (114,363 ) (114,363 ) Balance at December 31, 2017 $ 81,855 $ — $ 81,855 Goodwill acquired — — — Balance at December 31, 2018 $ 81,855 $ — $ 81,855 Intangible assets 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 Intangible assets acquired — — — Amortization of intangible assets (4,858 ) (5,602 ) (10,460 ) Balance at December 31, 2018 $ 4,284 $ 8,090 $ 12,374 |
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) 2019 $ 8,001 2020 1,256 2021 258 Total $ 9,515 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | December 31, December 31, (Dollars in thousands) 2018 2017 Furniture and equipment $ 44,216 $ 38,506 Leasehold improvements 37,342 31,290 Software 11,616 11,327 Total 93,174 81,123 Accumulated depreciation and amortization (60,555 ) (55,944 ) $ 32,619 $ 25,179 |
Short-Term Financing (Tables)
Short-Term Financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2018 2017 Commercial paper (secured) $ 49,953 $ 49,974 3.38 % 2.32 % Prime broker arrangement — 239,963 N/A 2.23 % Total short-term financing $ 49,953 $ 289,937 |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 are as follows: (Dollars in thousands) 2019 $ 13,812 2020 13,686 2021 9,329 2022 7,984 2023 7,143 Thereafter 15,771 Total $ 67,725 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Pre-tax Restructuring Charges | During the year ended December 31, 2018 , the Company incurred pre-tax restructuring costs principally related to headcount reductions in both the Capital Markets and Asset Management segments. During the year ended December 31, 2016 , the Company incurred charges within the Capital Markets segment primarily in conjunction with its acquisition activities. Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Severance, benefits and outplacement costs $ 3,455 $ — $ 6,608 Vacated leased office space 130 — 1,320 Contract termination costs 185 — 1,026 Total pre-tax restructuring costs $ 3,770 $ — $ 8,954 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 : Incentive Plan Restricted Stock Annual grants 653,421 Sign-on grants 50,033 703,454 Inducement Plan Restricted Stock 254,058 Total restricted stock related to compensation 957,512 Simmons Deal Consideration (1) 612,283 Total restricted stock outstanding 1,569,795 Incentive Plan Restricted Stock Units Leadership grants 194,251 Incentive Plan Stock Options 81,667 (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 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 awards 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 restricted stock units upon termination of employment with a corresponding reversal of compensation expense. For this portion of the awards, 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 2018 2.40% 34.8% 2017 1.62% 35.9% 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 pursuant to the methodology above: Risk-free Expected Stock Grant Year Interest Rate Price Volatility 2016 0.98% 34.9% 2015 0.90% 29.8% |
Schedule of Stock Options Valuation Assumptions | The fair value of this stock option award was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Risk-free interest rate 2.82% Dividend yield 3.22% Expected stock price volatility 37.20% Expected life of options (in years) 7.0 Fair value of options granted (per share) $24.49 |
Schedule of Stock-Based Compensation Expense | The following table summarizes the Company's stock-based compensation expense: Year Ended December 31, (amounts in millions) 2018 2017 2016 Stock-based compensation expense $ 43.3 $ 39.1 $ 54.1 Forfeitures 0.9 3.0 1.4 Tax benefit related to stock-based compensation expense 7.0 9.7 14.2 |
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, 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 Granted 310,494 88.18 Vested (945,550 ) 47.65 Canceled (20,766 ) 54.53 December 31, 2018 1,569,795 $ 53.80 |
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, 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 Granted 53,796 92.93 Vested (86,511 ) 21.83 Canceled (17,806 ) 23.91 December 31, 2018 194,251 $ 48.97 |
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, 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 $ — Granted 81,667 99.00 Exercised — — Canceled — — Expired — — December 31, 2018 81,667 $ 99.00 9.1 $ — Options exercisable at December 31, 2016 30,613 $ 65.86 0.3 $ 203,291 Options exercisable at December 31, 2017 — $ — 0 $ — Options exercisable at December 31, 2018 — $ — 0 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Net income/(loss) applicable to Piper Jaffray Companies $ 57,036 $ (61,939 ) $ (21,952 ) Earnings allocated to participating securities (1) (7,043 ) (2,936 ) — Net income/(loss) applicable to Piper Jaffray Companies' common shareholders (2) $ 49,993 $ (64,875 ) $ (21,952 ) Shares for basic and diluted calculations: Average shares used in basic computation 13,234 12,807 12,674 Stock options — — 15 Restricted stock units 191 171 90 Average shares used in diluted computation (3) 13,425 12,978 12,779 Earnings/(loss) per common share: Basic $ 3.78 $ (5.07 ) $ (1.73 ) Diluted (3) $ 3.72 $ (5.07 ) $ (1.73 ) (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, or for periods in which cash dividends exceed net income resulting in an undistributed loss. 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 1,868,883 ; 2,349,476 ; and 2,691,728 for the years ended December 31, 2018 , 2017 and 2016 , 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, or for periods in which cash dividends exceed net income resulting in an undistributed loss. 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, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segment Financial Results | Reportable segment financial results are as follows: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Capital Markets Investment banking Advisory services $ 394,133 $ 443,303 $ 304,654 Financing Equities 122,172 98,996 71,161 Debt 73,262 93,434 115,013 Total investment banking 589,567 635,733 490,828 Institutional sales and trading Equities 77,477 81,717 87,992 Fixed income 67,563 89,455 91,466 Total institutional sales and trading 145,040 171,172 179,458 Management and performance fees 6,318 5,566 6,363 Investment income 6,290 17,640 24,791 Long-term financing expenses (5,793 ) (7,676 ) (9,136 ) Net revenues 741,422 822,435 692,304 Operating expenses (1) 663,684 738,339 645,863 Segment pre-tax operating income $ 77,738 $ 84,096 $ 46,441 Segment pre-tax operating margin 10.5 % 10.2 % 6.7 % Continued on next page Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Asset Management Management and performance fees Management fees $ 43,461 $ 51,269 $ 53,725 Performance fees 24 — 584 Total management and performance fees 43,485 51,269 54,309 Investment income/(loss) (465 ) 1,219 736 Net revenues 43,020 52,488 55,045 Operating expenses (1) 45,881 165,907 132,360 Segment pre-tax operating loss $ (2,861 ) $ (113,419 ) $ (77,315 ) Segment pre-tax operating margin (6.7 )% (216.1 )% (140.5 )% Total Net revenues $ 784,442 $ 874,923 $ 747,349 Operating expenses (1) 709,565 904,246 778,223 Pre-tax operating income/(loss) $ 74,877 $ (29,323 ) $ (30,874 ) Pre-tax operating margin 9.5 % (3.4 )% (4.1 )% (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) 2018 2017 2016 Capital Markets $ 4,858 $ 10,178 $ 15,587 Asset Management 5,602 5,222 5,627 Total intangible asset amortization $ 10,460 $ 15,400 $ 21,214 |
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) 2018 2017 2016 Capital Markets $ 4,858 $ 10,178 $ 15,587 Asset Management 5,602 5,222 5,627 Total intangible asset amortization $ 10,460 $ 15,400 $ 21,214 |
Reportable Segment Assets | Reportable segment assets are as follows: December 31, December 31, (Dollars in thousands) 2018 2017 Capital Markets $ 1,273,147 $ 1,933,050 Asset Management 72,122 91,633 Total assets $ 1,345,269 $ 2,024,683 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Current: Federal $ 12,747 $ 27,611 $ 11,704 State 4,783 5,550 2,454 Foreign 276 93 (703 ) 17,806 33,254 13,455 Deferred: Federal (4,151 ) 5,783 (27,764 ) State 907 (7,554 ) (3,758 ) Foreign 4,485 (1,254 ) 939 1,241 (3,025 ) (30,583 ) Total income tax expense/(benefit) $ 19,047 $ 30,229 $ (17,128 ) |
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) 2018 2017 2016 Federal income tax expense/(benefit) at statutory rates $ 15,724 $ (10,263 ) $ (10,806 ) Increase/(reduction) in taxes resulting from: Impact of the Tax Cuts and Jobs Act 952 54,154 — State income taxes, net of federal tax benefit 3,483 (791 ) (1,110 ) Net tax-exempt interest income (3,034 ) (5,040 ) (4,600 ) Foreign jurisdictions tax rate differential 1,067 865 1,860 Non-deductible compensation 1,999 — — Change in valuation allowance 5,299 (752 ) 362 Vestings of stock awards (7,103 ) (9,172 ) — Loss/(income) attributable to noncontrolling interests 253 (835 ) (2,872 ) Other, net 407 2,063 38 Total income tax expense/(benefit) $ 19,047 $ 30,229 $ (17,128 ) |
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) 2018 2017 Deferred tax assets: Deferred compensation $ 67,563 $ 61,555 Goodwill tax basis in excess of book basis 35,614 38,592 Net operating loss carryforwards 5,554 4,789 Liabilities/accruals not currently deductible 1,117 1,744 Other 4,976 3,296 Total deferred tax assets 114,824 109,976 Valuation allowance (5,458 ) (159 ) Deferred tax assets after valuation allowance 109,366 109,817 Deferred tax liabilities: Unrealized gains on firm investments 4,464 6,599 Fixed assets 2,450 1,813 Other 595 200 Total deferred tax liabilities 7,509 8,612 Net deferred tax assets $ 101,857 $ 101,205 |
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, 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 Additions based on tax positions related to the current year 608 Additions for tax positions of prior years — Reductions for tax positions of prior years — Settlements — Balance at December 31, 2018 $ 774 |
Piper Jaffray Companies (Pare_2
Piper Jaffray Companies (Parent Company only) (Tables) - Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Statements of Financial Condition | Condensed Statements of Financial Condition December 31, December 31, (Amounts in thousands) 2018 2017 Assets Cash and cash equivalents $ 254 $ 2,348 Investment in and advances to subsidiaries 676,516 827,158 Other assets 27,529 21,120 Total assets $ 704,299 $ 850,626 Liabilities and Shareholders' Equity Senior notes $ — $ 125,000 Accrued compensation 26,081 30,579 Other liabilities and accrued expenses 774 1,715 Total liabilities 26,855 157,294 Shareholders' equity 677,444 693,332 Total liabilities and shareholders' equity $ 704,299 $ 850,626 |
Condensed Statements of Operations | Condensed Statements of Operations Year Ended December 31, (Amounts in thousands) 2018 2017 2016 Revenues: Dividends from subsidiaries $ 84,896 $ 120,102 $ 104,016 Interest 1,247 1,125 994 Investment income/(loss) (496 ) 4,060 1,835 Total revenues 85,647 125,287 106,845 Interest expense 4,902 7,170 8,195 Net revenues 80,745 118,117 98,650 Non-interest expenses: Total non-interest expenses 5,844 4,936 4,505 Income before income tax expense and equity in income of subsidiaries 74,901 113,181 94,145 Income tax expense 12,612 35,589 27,952 Income of parent company 62,289 77,592 66,193 Equity distributed in excess of subsidiaries income (5,253 ) (139,531 ) (88,145 ) Net income/(loss) $ 57,036 $ (61,939 ) $ (21,952 ) |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, (Amounts in thousands) 2018 2017 2016 Operating Activities: Net income/(loss) $ 57,036 $ (61,939 ) $ (21,952 ) Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Stock-based and deferred compensation 404 208 944 Equity distributed in excess of subsidiaries income 5,253 139,531 88,145 Net cash provided by operating activities 62,693 77,800 67,137 Financing Activities: Repayment of senior notes (125,000 ) (50,000 ) — Advances from/(to) subsidiaries 154,512 (5,177 ) (6,276 ) Repurchase of common stock (47,142 ) (2,498 ) (59,739 ) Payment of cash dividend (47,157 ) (18,947 ) — Net cash used in financing activities (64,787 ) (76,622 ) (66,015 ) Net increase/(decrease) in cash, cash equivalents and restricted cash (2,094 ) 1,178 1,122 Cash, cash equivalents and restricted cash at beginning of year 2,348 1,170 48 Cash, cash equivalents and restricted cash at end of year $ 254 $ 2,348 $ 1,170 |
Quarterly Information (unaudi_2
Quarterly Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information Schedules | Quarterly Information (unaudited) 2018 Fiscal Quarter (Amounts in thousands, except per share data) First Second Third Fourth Total revenues $ 174,400 $ 178,580 $ 221,233 $ 226,780 Interest expense 5,338 5,099 3,705 2,409 Net revenues 169,062 173,481 217,528 224,371 Non-interest expenses 161,024 168,222 187,893 192,426 Income before income tax expense/(benefit) 8,038 5,259 29,635 31,945 Income tax expense/(benefit) (2,581 ) 567 7,365 13,696 Net income 10,619 4,692 22,270 18,249 Net income/(loss) applicable to noncontrolling interests 16 (1,534 ) 247 65 Net income applicable to Piper Jaffray Companies $ 10,603 $ 6,226 $ 22,023 18,184 Net income applicable to Piper Jaffray Companies' common shareholders $ 6,435 $ 5,522 $ 19,377 $ 16,164 Earnings per common share Basic $ 0.47 $ 0.43 $ 1.45 $ 1.22 Diluted $ 0.47 $ 0.43 $ 1.43 $ 1.21 Dividends declared per common share $ 1.995 $ 0.375 $ 0.375 $ 0.375 Weighted average number of common shares Basic 13,096 13,303 13,343 13,191 Diluted 13,382 13,438 13,508 13,367 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) |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash and cash equivalents | $ 33,793 | $ 41,359 | $ 189,910 | ||
Cash and cash equivalents segregated for regulatory purposes | 0 | 29,015 | 81,022 | ||
Cash, cash equivalents and restricted cash | [1] | $ 50,364 | 33,793 | 70,374 | $ 270,932 |
Deal-related expenses | 25,120 | $ 0 | $ 0 | ||
ASU 2014-09 | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 3,597 | ||||
Impact under the modified retrospective method of adoption | Right-of-use asset | ASU 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact upon adoption | 44,000 | ||||
Impact under the modified retrospective method of adoption | Lease liability | ASU 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact upon adoption | $ 59,000 | ||||
[1] | Upon adoption of ASU 2016-18, restricted cash includes cash and cash equivalents previously segregated for regulatory purposes. See Note 3 for further discussion. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 |
Acquisition of Simmons & Comp_2
Acquisition of Simmons & Company International - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 26, 2016 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 81,855 | $ 81,855 | $ 196,218 | ||
Intangible assets acquired | 0 | 1,000 | |||
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 | 60,700 | ||||
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 | 1,300 | ||||
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 | 39,700 | ||||
Compensation expense related to this performance award plan | 8,900 | 27,000 | 4,300 | ||
Capital Markets | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 81,855 | 81,855 | 81,855 | ||
Intangible assets acquired | $ 0 | $ 0 | |||
Capital Markets | Simmons & Company International | |||||
Business Acquisition [Line Items] | |||||
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 |
Financial Instruments and Oth_3
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, 2018 | Dec. 31, 2017 |
Financial instruments and other inventory positions owned: | ||
Equity securities | $ 1,458 | $ 51,896 |
Convertible securities | 92,485 | 74,456 |
Fixed income securities | 31,906 | 30,145 |
Taxable securities | 38,711 | 67,699 |
Tax-exempt securities | 268,804 | 744,241 |
Short-term securities | 52,472 | 62,251 |
Mortgage-backed securities | 15 | 481 |
U.S. government agency securities | 123,384 | 317,318 |
U.S. government securities | 954 | 9,317 |
Derivative contracts | 17,033 | 25,573 |
Total financial instruments and other inventory positions owned | 627,222 | 1,383,377 |
Financial instruments and other inventory positions sold, but not yet purchased: | ||
Equity securities | 82,082 | 101,517 |
Fixed income securities | 20,180 | 30,292 |
U.S. government agency securities | 10,257 | 49,077 |
U.S. government securities | 60,365 | 213,312 |
Derivative contracts | 4,543 | 5,029 |
Total financial instruments and other inventory positions sold, but not yet purchased | 177,427 | 399,227 |
Financial instruments and other inventory positions owned and pledged as collateral | $ 147,427 | $ 720,047 |
Financial Instruments and Oth_4
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, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional amount | $ 2,795,241 | $ 3,228,091 |
Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets | 181,607 | 239,356 |
Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities | 174,152 | 230,349 |
Customer matched-book | Interest rate derivative contract | ||
Derivative [Line Items] | ||
Notional amount | 2,532,966 | 2,819,006 |
Customer matched-book | Interest rate derivative contract | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets | 181,199 | 239,224 |
Customer matched-book | Interest rate derivative contract | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities | 169,950 | 225,890 |
Trading securities | Interest rate derivative contract | ||
Derivative [Line Items] | ||
Notional amount | 262,275 | 399,450 |
Trading securities | Interest rate derivative contract | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets | 408 | 126 |
Trading securities | Interest rate derivative contract | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities | 4,202 | 4,459 |
Trading securities | Equity option derivative contracts | ||
Derivative [Line Items] | ||
Notional amount | 0 | 9,635 |
Trading securities | Equity option derivative contracts | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 6 |
Trading securities | Equity option derivative contracts | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
Financial Instruments and Oth_5
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | $ (1,546) | $ (14,915) | $ 20,034 |
Interest rate derivative contract | Investment banking | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | (1,880) | (2,608) | (4,151) |
Interest rate derivative contract | Institutional brokerage | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | 334 | (16,772) | 19,613 |
Credit default swap index contract | Institutional brokerage | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | 0 | 4,482 | 4,317 |
Futures and equity option derivative contracts | Institutional brokerage | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) on Derivatives Instruments | $ 0 | $ (17) | $ 255 |
Financial Instruments and Oth_6
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, 2018USD ($) |
Counterparties not required to post collateral | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Uncollateralized credit exposure | $ 15.9 |
Notional contract amount | 176.8 |
One unnamed financial institutional not required to post collateral | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Uncollateralized credit exposure | $ 12.5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Option (Details) - Merchant banking and other equity investments - Level III - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Investments at fair value | $ 3 | $ 14.1 | |
Gains from changes in fair value | $ 0.6 | $ 1.6 | $ 1.8 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Information about Significant Unobservable Inputs used in Fair Value Measurement (Details) - Level III | Dec. 31, 2018basis_points |
Discounted cash flow | Premium over the MMD curve | Minimum | Financial instruments and other inventory positions sold, but not yet purchased | Interest rate locks | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative contracts | 1 |
Discounted cash flow | Premium over the MMD curve | Maximum | Financial instruments and other inventory positions sold, but not yet purchased | Interest rate locks | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative contracts | 8 |
Discounted cash flow | Premium over the MMD curve | Weighted Average | Financial instruments and other inventory positions sold, but not yet purchased | Interest rate locks | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative contracts | 2.6 |
Investments at fair value | Equity securities in private companies | Market approach | Revenue multiple | Minimum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value | 2 |
Investments at fair value | Equity securities in private companies | Market approach | Revenue multiple | Maximum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value | 5 |
Investments at fair value | Equity securities in private companies | Market approach | Revenue multiple | Weighted Average | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value | 4.4 |
Investments at fair value | Equity securities in private companies | Market approach | EBITDA multiple | Minimum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value | 13 |
Investments at fair value | Equity securities in private companies | Market approach | EBITDA multiple | Maximum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value | 16 |
Investments at fair value | Equity securities in private companies | Market approach | EBITDA multiple | Weighted Average | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value | 14.1 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Transfers out of Level 3 | $ 1,202 | $ 601 |
Transfers between fair value levels | 0 | |
Level III | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 108,036 | $ 128,081 |
Percentage of Level III assets to financial instruments measured at fair value | 13.60% | 8.20% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Valuation of Financial Instruments by Pricing Observability Levels (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | $ 1,458,000 | $ 51,896,000 |
Convertible securities | 92,485,000 | 74,456,000 |
Fixed income securities | 31,906,000 | 30,145,000 |
Taxable securities | 38,711,000 | 67,699,000 |
Tax-exempt securities | 268,804,000 | 744,241,000 |
Short-term securities | 52,472,000 | 62,251,000 |
Mortgage-backed securities | 15,000 | 481,000 |
U.S. government agency securities | 123,384,000 | 317,318,000 |
U.S. government securities | 954,000 | 9,317,000 |
Derivative contracts | 17,033,000 | 25,573,000 |
Derivative contracts | (164,574,000) | (213,783,000) |
Total financial instruments and other inventory positions owned | 627,222,000 | 1,383,377,000 |
Equity securities | 82,082,000 | 101,517,000 |
Fixed income securities | 20,180,000 | 30,292,000 |
U.S. government agency securities | 10,257,000 | 49,077,000 |
U.S. government securities | 60,365,000 | 213,312,000 |
Derivative contracts | 4,543,000 | 5,029,000 |
Derivative contracts | (169,609,000) | (225,320,000) |
Total financial instruments and other inventory positions sold, but not yet purchased | 177,427,000 | 399,227,000 |
Securities posted as collateral | 0 | 0 |
Investments at fair value attributable to third party ownership | 144,028,000 | 165,564,000 |
Level I | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 331,000 | 1,863,000 |
U.S. government securities | 954,000 | 9,317,000 |
Derivative contracts | 6,000 | |
Total financial instruments and other inventory positions owned | 1,285,000 | 11,186,000 |
Cash equivalents | 20,581,000 | 3,782,000 |
Investments at fair value | 33,587,000 | 39,504,000 |
Total assets | 55,453,000 | 54,472,000 |
Equity securities | 81,575,000 | 91,934,000 |
U.S. government securities | 60,365,000 | 213,312,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 141,940,000 | 305,246,000 |
Level II | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 1,127,000 | 50,033,000 |
Convertible securities | 92,485,000 | 74,456,000 |
Fixed income securities | 31,906,000 | 30,145,000 |
Taxable securities | 38,711,000 | 67,699,000 |
Tax-exempt securities | 268,804,000 | 743,541,000 |
Short-term securities | 52,472,000 | 61,537,000 |
U.S. government agency securities | 123,384,000 | 317,318,000 |
Derivative contracts | 181,378,000 | 239,224,000 |
Total financial instruments and other inventory positions owned | 790,267,000 | 1,583,953,000 |
Investments at fair value | 2,649,000 | |
Total assets | 792,916,000 | 1,583,953,000 |
Equity securities | 507,000 | 9,583,000 |
Fixed income securities | 20,180,000 | 30,292,000 |
U.S. government agency securities | 10,257,000 | 49,077,000 |
Derivative contracts | 169,950,000 | 225,916,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 200,894,000 | 314,868,000 |
Level III | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Tax-exempt securities | 700,000 | |
Short-term securities | 714,000 | |
Mortgage-backed securities | 15,000 | 481,000 |
Derivative contracts | 229,000 | 126,000 |
Total financial instruments and other inventory positions owned | 244,000 | 2,021,000 |
Investments at fair value | 107,792,000 | 126,060,000 |
Total assets | 108,036,000 | 128,081,000 |
Derivative contracts | 4,202,000 | 4,433,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 4,202,000 | 4,433,000 |
Measured on a recurring basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 1,458,000 | 51,896,000 |
Convertible securities | 92,485,000 | 74,456,000 |
Fixed income securities | 31,906,000 | 30,145,000 |
Taxable securities | 38,711,000 | 67,699,000 |
Tax-exempt securities | 268,804,000 | 744,241,000 |
Short-term securities | 52,472,000 | 62,251,000 |
Mortgage-backed securities | 15,000 | 481,000 |
U.S. government agency securities | 123,384,000 | 317,318,000 |
U.S. government securities | 954,000 | |
Derivative contracts | 17,033,000 | 25,573,000 |
Total financial instruments and other inventory positions owned | 627,222,000 | 1,383,377,000 |
Cash equivalents | 20,581,000 | 3,782,000 |
Investments at fair value | 144,028,000 | 165,564,000 |
Total assets | 791,831,000 | 1,552,723,000 |
Equity securities | 82,082,000 | 101,517,000 |
Fixed income securities | 20,180,000 | 30,292,000 |
U.S. government agency securities | 10,257,000 | 49,077,000 |
U.S. government securities | 60,365,000 | 213,312,000 |
Derivative contracts | 4,543,000 | 5,029,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 177,427,000 | 399,227,000 |
Noncontrolling Interests | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments at fair value attributable to third party ownership | $ 52,972,000 | $ 44,397,000 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Changes in Fair Values Associated with Level III Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 128,081 | $ 147,143 |
Purchases | 16,713 | 32,467 |
Sales | (41,031) | (57,076) |
Transfers out | (1,202) | (601) |
Realized gains/(losses) | (17,151) | (9,696) |
Unrealized gains/(losses) | 11,676 | 3,548 |
Ending balance | 108,036 | 128,081 |
Unrealized gains/(losses) for assets held at period end | 1,641 | (14,924) |
Unrealized gains/(losses) for liabilities held at period end | 4,202 | 4,433 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 4,433 | 1,487 |
Purchases | (2,815) | (17,083) |
Sales | 3,266 | 211 |
Realized gains/(losses) | (451) | 16,872 |
Unrealized gains/(losses) | (231) | 2,946 |
Ending balance | 4,202 | 4,433 |
Short-term securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers out | 0 | 0 |
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 | 4,202 | 4,433 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 4,433 | 1,487 |
Issuances | (2,815) | (17,083) |
Settlements | 3,266 | 211 |
Transfers in | 0 | 0 |
Transfers out | 0 | 0 |
Realized gains/(losses) | (451) | 16,872 |
Unrealized gains/(losses) | (231) | 2,946 |
Ending balance | 4,202 | 4,433 |
Financial instruments and other inventory positions owned | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 2,021 | 23,824 |
Purchases | 725 | 1,105 |
Sales | (4,587) | (20,072) |
Transfers out | (700) | |
Realized gains/(losses) | (3,136) | (12,281) |
Unrealized gains/(losses) | 351 | 15,117 |
Ending balance | 244 | 2,021 |
Unrealized gains/(losses) for assets held at period end | (134) | 36 |
Financial instruments and other inventory positions owned | Taxable securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 2,686 |
Purchases | 0 | |
Sales | (2,703) | |
Transfers into Level III | 0 | |
Transfers out | 0 | |
Realized gains/(losses) | (716) | |
Unrealized gains/(losses) | 699 | |
Ending balance | 0 | |
Unrealized gains/(losses) for assets held at period end | 0 | |
Financial instruments and other inventory positions owned | Tax-exempt securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 700 | 1,077 |
Purchases | 0 | 0 |
Sales | 0 | (267) |
Transfers into Level III | 0 | 0 |
Transfers out | (700) | 0 |
Realized gains/(losses) | 0 | 0 |
Unrealized gains/(losses) | 0 | 110 |
Ending balance | 0 | 700 |
Unrealized gains/(losses) for assets held at period end | 0 | 110 |
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 | 714 | 744 |
Purchases | 0 | 0 |
Sales | (775) | (25) |
Transfers into Level III | 0 | 0 |
Realized gains/(losses) | (54) | (2) |
Unrealized gains/(losses) | (7) | 7 |
Ending balance | 714 | |
Unrealized gains/(losses) for assets held at period end | 0 | 7 |
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 | 481 | 5,365 |
Purchases | 0 | 996 |
Sales | (5) | (5,608) |
Transfers into Level III | 0 | 0 |
Transfers out | 0 | 0 |
Realized gains/(losses) | 0 | (203) |
Unrealized gains/(losses) | 461 | 475 |
Ending balance | 15 | 481 |
Unrealized gains/(losses) for assets held at period end | 95 | 45 |
Financial instruments and other inventory positions owned | Derivative contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 126 | 13,952 |
Issuances | 725 | 109 |
Settlements | (3,807) | (11,469) |
Transfers into Level III | 0 | 0 |
Transfers out | 0 | 0 |
Realized gains/(losses) | (3,082) | (11,360) |
Unrealized gains/(losses) | (103) | 13,826 |
Ending balance | 229 | 126 |
Unrealized gains/(losses) for assets held at period end | (229) | (126) |
Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 126,060 | 123,319 |
Purchases | 15,988 | 31,362 |
Sales | (36,444) | (37,004) |
Transfers into Level III | 0 | 0 |
Transfers out | (502) | (601) |
Realized gains/(losses) | (14,015) | 2,585 |
Unrealized gains/(losses) | 11,325 | (11,569) |
Ending balance | 107,792 | 126,060 |
Unrealized gains/(losses) for assets held at period end | $ 1,775 | $ (14,960) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Non-Recurring Fair Value Measurement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Non-cash goodwill impairment charge | $ 114,363 | $ 0 | $ 114,363 | $ 82,900 |
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 | 82,900 | ||
Asset Management | Level III | Non-recurring fair value measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Non-cash goodwill impairment charge | $ 114,363 | $ 82,900 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - Variable Interest Entity, Primary Beneficiary $ in Thousands | Dec. 31, 2018USD ($) |
Variable Interest Entity [Line Items] | |
Consolidated VIE assets | $ 104,484 |
Consolidated VIE liabilities | 1,340 |
Investments | |
Variable Interest Entity [Line Items] | |
Consolidated VIE assets | 103,884 |
Other assets | |
Variable Interest Entity [Line Items] | |
Consolidated VIE assets | 600 |
Other liabilities and accrued expenses | |
Variable Interest Entity [Line Items] | |
Consolidated VIE liabilities | $ 1,340 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Available bank line financing | $ 25,000,000 | |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, nonconsolidated net assets | 400,000,000 | $ 600,000,000 |
Variable interest entities, exposure to loss | 6,400,000 | |
Variable interest entity, nonconsolidated liabilities | $ 0 | $ 0 |
Receivables from and Payables_3
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Amounts Receivable from Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Brokers and Dealers [Abstract] | ||
Receivable from clearing organizations | $ 223,987 | $ 109,270 |
Deposits with clearing organizations | 230 | 11,019 |
Receivable from brokers and dealers | 7,700 | 12,041 |
Receivable arising from unsettled securities transactions | 0 | 9,218 |
Other | 3,361 | 3,846 |
Total receivables from brokers, dealers and clearing organizations | $ 235,278 | $ 145,394 |
Receivables from and Payables_4
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Amounts Payable to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Brokers and Dealers [Abstract] | ||
Payable to clearing organizations | $ 4,734 | $ 0 |
Payable to brokers and dealers | 3,923 | 18,584 |
Payable arising from unsettled securities transactions | 0 | 808 |
Total payables to brokers, dealers and clearing organizations | $ 8,657 | $ 19,392 |
Receivables from and Payables_5
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Additional Information (Details) | Dec. 31, 2018USD ($) |
Pershing clearing arrangement | |
Excess net capital required | $ 120,000,000 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Investments at fair value | $ 144,028 | $ 165,564 |
Investments at cost | 1,512 | 2,416 |
Investments accounted for under the equity method | 6,423 | 8,232 |
Total investments | 151,963 | 176,212 |
Investments attributable to noncontrolling interests | ||
Schedule of Investments [Line Items] | ||
Investments at fair value | 52,972 | 44,397 |
Investments attributable to parent | ||
Schedule of Investments [Line Items] | ||
Total investments | $ 98,991 | $ 131,815 |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Millions | Dec. 31, 2018USD ($) |
Investments, All Other Investments [Abstract] | |
Estimated fair market value of investments carried at cost | $ 1.5 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Fee receivables | $ 23,120 | $ 20,884 |
Accrued interest receivables | 4,240 | 6,981 |
Forgivable loans, net | 7,568 | 7,452 |
Prepaid expenses | 9,477 | 6,769 |
Other | 7,332 | 12,748 |
Total other assets | $ 51,737 | $ 54,834 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Value of Goodwill and Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | ||||
Goodwill beginning balance | $ 81,855,000 | $ 196,218,000 | ||
Impairment charge | $ (114,363,000) | 0 | (114,363,000) | $ (82,900,000) |
Goodwill acquired | 0 | |||
Goodwill ending balance | 81,855,000 | 81,855,000 | 196,218,000 | |
Intangible assets | ||||
Intangible assets beginning balance | 22,834,000 | 37,234,000 | ||
Intangible assets acquired | 0 | 1,000,000 | ||
Amortization of intangible assets | (10,460,000) | (15,400,000) | (21,214,000) | |
Intangible assets ending balance | 12,374,000 | 22,834,000 | 37,234,000 | |
Capital Markets | ||||
Goodwill | ||||
Goodwill beginning balance | 81,855,000 | 81,855,000 | ||
Impairment charge | 0 | 0 | 0 | |
Goodwill acquired | 0 | |||
Goodwill ending balance | 81,855,000 | 81,855,000 | 81,855,000 | |
Intangible assets | ||||
Intangible assets beginning balance | 9,142,000 | 19,320,000 | ||
Intangible assets acquired | 0 | 0 | ||
Amortization of intangible assets | (4,858,000) | (10,178,000) | (15,587,000) | |
Intangible assets ending balance | 4,284,000 | 9,142,000 | 19,320,000 | |
Asset Management | ||||
Goodwill | ||||
Goodwill beginning balance | 0 | 114,363,000 | ||
Impairment charge | (114,363,000) | (82,900,000) | ||
Goodwill ending balance | 0 | 0 | 114,363,000 | |
Intangible assets | ||||
Intangible assets beginning balance | 13,692,000 | 17,914,000 | ||
Intangible assets acquired | 0 | 1,000,000 | ||
Amortization of intangible assets | (5,602,000) | (5,222,000) | (5,627,000) | |
Intangible assets ending balance | $ 8,090,000 | $ 13,692,000 | $ 17,914,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Expected Amortization Expense (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,019 | $ 8,001 |
2,020 | 1,256 |
2,021 | 258 |
Total | $ 9,515 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($)unit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Number of reporting units | unit | 2 | |||
Non-cash goodwill impairment charge | $ (114,363,000) | $ 0 | $ (114,363,000) | $ (82,900,000) |
Intangible asset impairment | 0 | 0 | 0 | |
Asset Management | ||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Non-cash goodwill impairment charge | (114,363,000) | (82,900,000) | ||
Capital Markets | ||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Non-cash goodwill impairment charge | $ 0 | $ 0 | $ 0 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets before accumulated depreciation and amortization | $ 93,174 | $ 81,123 |
Accumulated depreciation and amortization | (60,555) | (55,944) |
Fixed assets | 32,619 | 25,179 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets before accumulated depreciation and amortization | 44,216 | 38,506 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets before accumulated depreciation and amortization | 37,342 | 31,290 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets before accumulated depreciation and amortization | $ 11,616 | $ 11,327 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 8.4 | $ 7.3 | $ 6.4 |
Short-Term Financing - Schedule
Short-Term Financing - Schedule of Outstanding Short-Term Financing (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Oustanding Balance | $ 49,953 | $ 289,937 |
Commercial paper (secured) | ||
Short-term Debt [Line Items] | ||
Oustanding Balance | $ 49,953 | $ 49,974 |
Weighted Average Interest Rate | 3.38% | 2.32% |
Prime broker arrangement | ||
Short-term Debt [Line Items] | ||
Oustanding Balance | $ 0 | $ 239,963 |
Weighted Average Interest Rate | 2.23% |
Short-Term Financing - Addition
Short-Term Financing - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)program | Dec. 31, 2017USD ($) | |
Short-term Debt [Line Items] | ||
Short-term financing | $ 49,953,000 | $ 289,937,000 |
Commercial paper (secured) | ||
Short-term Debt [Line Items] | ||
Number of commercial paper programs | program | 2 | |
Short-term financing | $ 49,953,000 | 49,974,000 |
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 | 10 days | |
Prime broker arrangement | ||
Short-term Debt [Line Items] | ||
Short-term financing | $ 0 | $ 239,963,000 |
Credit facility | Committed Credit Facility | ||
Short-term Debt [Line Items] | ||
Debt term | 1 year | |
Line of credity, maximum borrowing capacity | $ 175,000,000 | |
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 - Additional Infor
Senior Notes - Additional Information (Details) - Senior Notes - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class C Notes | ||
Debt Instrument [Line Items] | ||
Senior notes repaid in full | $ 125,000,000 | |
Class A Notes | ||
Debt Instrument [Line Items] | ||
Senior notes repaid in full | $ 50,000,000 |
Contingencies, Commitments an_3
Contingencies, Commitments and Guarantees - Schedule of aggregate minimum lease commitments under operating leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,019 | $ 13,812 | ||
2,020 | 13,686 | ||
2,021 | 9,329 | ||
2,022 | 7,984 | ||
2,023 | 7,143 | ||
Thereafter | 15,771 | ||
Total | 67,725 | ||
Total minimum rentals to be received under noncancelable subleases | 2,900 | ||
Rental expense | $ 18,200 | $ 17,100 | $ 17,300 |
Contingencies, Commitments an_4
Contingencies, Commitments and Guarantees - Additional Information (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining investment commitments | $ 78 |
Liability for guarantees | $ 0 |
Restructuring - Schedule of Pre
Restructuring - Schedule of Pre-tax Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ 3,770 | $ 0 | $ 8,954 |
Severance, benefits and outplacement costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 3,455 | 0 | 6,608 |
Vacated leased office space | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 130 | 0 | 1,320 |
Contract termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ 185 | $ 0 | $ 1,026 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2019$ / shares | Dec. 31, 2018USD ($)vote / shares$ / sharesshares | Sep. 30, 2018$ / shares | Jun. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2018USD ($)vote / shares$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Aug. 14, 2015USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Cash dividends paid | $ 47,157,000 | $ 18,981,000 | |||||||||||
Dividends declared, per share | $ 0.375 | $ 0.375 | $ 0.375 | $ 1.995 | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 3.12 | $ 1.25 | $ 0 | ||
Aggregate purchase price of share repurchases | $ | $ 70,903,000 | $ 25,481,000 | $ 70,859,000 | ||||||||||
Remaining under share repurchase program | $ | $ 102,900,000 | $ 102,900,000 | |||||||||||
Common stock, shares authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||
Common stock, par value | $ 0.01 | $ 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 | 279,664 | 314,542 | 261,685 | ||||||||||
Repurchase of common stock for employee tax withholding | $ | $ 23,800,000 | $ 23,000,000 | $ 11,100,000 | ||||||||||
Reissuance of treasury shares as a result of employee vesting | shares | 1,040,015 | 867,327 | 854,416 | ||||||||||
Quarterly dividends | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Cash dividends paid | $ 1.5 | $ 1.25 | |||||||||||
Annual special dividends | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Cash dividends paid | $ 1.62 | ||||||||||||
Dividends declared | Quarterly dividends | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Dividends declared, per share | $ 0.375 | ||||||||||||
Dividends declared | Annual special dividends | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Dividends declared, per share | $ 1.01 | ||||||||||||
2017 Plan | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Repurchase of common stock, authorized amount | $ | $ 150,000,000 | ||||||||||||
Shares repurchased | shares | 681,233 | ||||||||||||
Share repurchases, average price per share | $ 69.20 | ||||||||||||
Aggregate purchase price of share repurchases | $ | $ 0 | $ 47,100,000 | |||||||||||
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 | $ 38.89 | |||||||||||
Aggregate purchase price of share repurchases | $ | $ 2,500,000 | $ 59,700,000 |
Shareholders' Equity - Noncontr
Shareholders' Equity - Noncontrolling Interests - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 52,972,000 | $ 47,903,000 | |
Other comprehensive income or loss attributed to noncontrolling interests | 0 | 0 | $ 0 |
Merchant banking funds | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | 50,200,000 | 42,700,000 | |
Senior living fund | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 2,800,000 | $ 5,200,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized as part of compensation and benefits | $ 19.1 | $ 19.9 | $ 17.6 |
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 | $ 11.3 | $ 12 | $ 10.4 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 81,667 | 0 | 30,613 | 157,201 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 1,569,795 | 2,225,617 | 2,874,117 | 1,287,915 |
Leadership grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 194,251 | 244,772 | 374,460 | 356,242 |
Amended And Restated 2003 Annual And Long-Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 81,667 | |||
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 | 194,251 | |||
Restricted stock related to compensation | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 957,512 | |||
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 | 703,454 | |||
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 | 50,033 | |||
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 | 653,421 | |||
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 | 254,058 | |||
Simmons Deal Consideration (1) | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock or units outstanding | 612,283 |
Compensation Plans - Schedule o
Compensation Plans - Schedule of RSU Valuation Assumptions (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2018 | |
Grant Year 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.40% |
Expected Stock Price Volatility | 34.80% |
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% |
Compensation Plans - Schedule_2
Compensation Plans - Schedule of Stock Options Valuation Assumptions (Details) - Stock options | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.82% |
Dividend yield | 3.22% |
Expected stock price volatility | 37.20% |
Expected life of options (in years) | 7 years |
Fair value of options granted (per share) | $ 24.49 |
Compensation Plans - Schedule_3
Compensation Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation expense | $ 43.3 | $ 39.1 | $ 54.1 |
Forfeitures | 0.9 | 3 | 1.4 |
Tax benefit related to stock-based compensation | $ 7 | $ 9.7 | $ 14.2 |
Compensation Plans - Summary _2
Compensation Plans - Summary of Changes in Unvested Restricted Stock (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unvested Restricted Stock (in Shares) | |||
Beginning Balance | 2,225,617 | 2,874,117 | 1,287,915 |
Granted | 310,494 | 248,749 | 2,359,672 |
Vested | (945,550) | (717,782) | (623,961) |
Cancelled | (20,766) | (179,467) | (149,509) |
Ending Balance | 1,569,795 | 2,225,617 | 2,874,117 |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 46.40 | $ 43.12 | $ 46.20 |
Granted | 88.18 | 77.78 | 41.87 |
Vested | 47.65 | 45.08 | 44.89 |
Cancelled | 54.53 | 42.70 | 42.49 |
Ending Balance | $ 53.80 | $ 46.40 | $ 43.12 |
Compensation Plans - Summary _3
Compensation Plans - Summary of Changes in Unvested Restricted Stock Units (Details) - Leadership grants - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unvested Restricted Stock Units | |||
Beginning Balance | 244,772 | 374,460 | 356,242 |
Granted | 53,796 | 35,981 | 135,483 |
Vested | (86,511) | (115,290) | (117,265) |
Cancelled | (17,806) | (50,379) | 0 |
Ending Balance | 194,251 | 244,772 | 374,460 |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 27.89 | $ 21.63 | $ 22.18 |
Granted | 92.93 | 84.10 | 19.93 |
Vested | 21.83 | 23.42 | 21.32 |
Cancelled | 23.91 | 31.73 | 0 |
Ending Balance | $ 48.97 | $ 27.89 | $ 21.63 |
Compensation Plans - Summary _4
Compensation Plans - Summary of Changes in Stock Options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options Outstanding | ||||
Beginning Balance | 0 | 30,613 | 157,201 | |
Granted | 81,667 | 0 | 0 | |
Exercised | 0 | (26,149) | (104,175) | |
Cancelled | 0 | 0 | 0 | |
Expired | 0 | (4,464) | (22,413) | |
Ending Balance | 81,667 | 0 | 30,613 | 157,201 |
Options exercisable at period end | 0 | 0 | 30,613 | |
Weighted Average Exercise Price (in dollars per share) | ||||
Beginning Balance | $ 0 | $ 65.86 | $ 50.35 | |
Granted | 99 | 0 | 0 | |
Exercised | 0 | 65.13 | 43.75 | |
Cancelled | 0 | 0 | 0 | |
Expired | 0 | 70.13 | 59.83 | |
Ending Balance | 99 | 0 | 65.86 | $ 50.35 |
Options exercisable at period end | $ 0 | $ 0 | $ 65.86 | |
Weighted Average Remaining Contractual Term (in Years) | ||||
Weighted Average Remaining Contractual Term (in Years) | 9 years 1 month 13 days | 0 days | 4 months | 1 year 7 months 6 days |
Options exercisable at period end | 0 days | 0 days | 4 months | |
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value of Stock Options | $ 0 | $ 0 | $ 203,291 | $ 0 |
Options exercisable at end of period | $ 0 | $ 0 | $ 203,291 |
Compensation Plans - Additional
Compensation Plans - Additional Information (Detail) | May 16, 2016USD ($)shares | Mar. 31, 2019shares | Dec. 31, 2018USD ($)planshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)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 | $ 43,300,000 | $ 39,100,000 | $ 54,100,000 | ||
Forfeitures recorded | 900,000 | 3,000,000 | 1,400,000 | ||
Tax benefit related to stock-based compensation | $ 7,000,000 | $ 9,700,000 | $ 14,200,000 | ||
Options exercises during the period | shares | 0 | 26,149 | 104,175 | ||
Intrinsic value of options exercised | $ 300,000 | $ 2,000,000 | |||
Resulting tax benefit from stock option exercises | $ 100,000 | $ 800,000 | |||
Shares of common stock purchased from restricted stock award related to recipients' employment tax obligations | shares | 279,664 | 314,542 | 261,685 | ||
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 | 310,494 | 248,749 | 2,359,672 | ||
Fair value of restricted stock vested during the period | $ 45,100,000 | $ 32,400,000 | $ 28,000,000 | ||
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 | $ 6,400,000 | ||||
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 years risk free interest rate | 3 years | ||||
Number of shares granted | shares | 53,796 | 35,981 | 135,483 | ||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Sign on grants requisite service period (in years) | 5 years | ||||
Share based compensation option exercise price | 10.00% | ||||
Unrecognized compensation cost | $ 1,600,000 | ||||
Weighted average period of unrecognized compensation cost related to restricted stock and restricted stock units | 4 years 1 month | ||||
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 | 800,000 | ||||
2016 Employment Inducement Award Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value of restricted stock granted | $ 11,600,000 | ||||
Number of shares granted | shares | 286,776 | ||||
Grant Years 2017 and 2018 | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award earning percentage | 150.00% | ||||
Average adjusted return on equity targets | Grant Years 2017 and 2018 | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award earning percentage | 75.00% | ||||
Average adjusted return on equity targets | Grant Year 2018 | Probability of achieving performance condition | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award earning percentage | 50.00% | ||||
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 Years Prior to 2017 | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award earning percentage | 50.00% | ||||
Total shareholder return relative to members of a predetermined peer group | Grant Years 2017 and 2018 | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award earning percentage | 75.00% | ||||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
MFRS compensation expense | $ 43.3 | $ 39.1 | $ 54.1 |
Nonqualified Deferred Compensation Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Plan assets | 31.2 | 31.5 | |
Plan liabilities | $ 31.4 | 31.6 | |
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 | $ 50.2 | 60.2 | 17.5 |
MFRS forfeitures | $ 1.6 | $ 1.3 | $ 0.6 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Net income/(loss) applicable to Piper Jaffray Companies | $ 18,184 | $ 22,023 | $ 6,226 | $ 10,603 | $ (46,074) | $ (49,713) | $ 13,573 | $ 20,275 | $ 57,036 | $ (61,939) | $ (21,952) | ||
Earnings allocated to participating securities (1) | 7,043 | 2,936 | 0 | ||||||||||
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders (2) | $ 16,164 | $ 19,377 | $ 5,522 | $ 6,435 | $ (46,771) | $ (50,415) | $ 11,522 | $ 16,828 | $ 49,993 | $ (64,875) | [1] | $ (21,952) | [1] |
Shares for basic and diluted calculations: | |||||||||||||
Average shares used in basic computation | 13,191,000 | 13,343,000 | 13,303,000 | 13,096,000 | 12,906,000 | 12,898,000 | 12,826,000 | 12,594,000 | 13,234,000 | 12,807,000 | 12,674,000 | ||
Average shares used in diluted computation | 13,367,000 | 13,508,000 | 13,438,000 | 13,382,000 | 13,075,000 | 12,975,000 | 12,937,000 | 12,922,000 | 13,425,000 | 12,978,000 | [2] | 12,779,000 | [2] |
Earnings/(loss) per common share: | |||||||||||||
Basic | $ 1.22 | $ 1.45 | $ 0.43 | $ 0.47 | $ (3.63) | $ (3.91) | $ 0.89 | $ 1.33 | $ 3.78 | $ (5.07) | $ (1.73) | ||
Diluted | $ 1.21 | $ 1.43 | $ 0.43 | $ 0.47 | $ (3.63) | $ (3.91) | $ 0.89 | $ 1.31 | $ 3.72 | $ (5.07) | [2] | $ (1.73) | [2] |
Weighted average participating shares outstanding | 1,868,883 | 2,349,476 | 2,691,728 | ||||||||||
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 | 0 | 15,000 | ||||||||||
Restricted stock units | |||||||||||||
Shares for basic and diluted calculations: | |||||||||||||
Dilutive impact of securities | 191,000 | 171,000 | 90,000 | ||||||||||
[1] | No allocation of undistributed income was made due to loss position. See Note 20. | ||||||||||||
[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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | $ 588,978,000 | $ 633,837,000 | $ 490,340,000 | ||||||||
Institutional sales and trading | 124,517,000 | 154,563,000 | 161,186,000 | ||||||||
Total management and performance fees | 49,803,000 | 56,835,000 | 60,672,000 | ||||||||
Investment income/(loss) | 4,946,000 | 18,002,000 | 24,602,000 | ||||||||
Net revenues | $ 224,371,000 | $ 217,528,000 | $ 173,481,000 | $ 169,062,000 | $ 236,082,000 | $ 240,567,000 | $ 197,745,000 | $ 200,529,000 | 784,442,000 | 874,923,000 | 747,349,000 |
Operating expenses (1) | 192,426,000 | 187,893,000 | 168,222,000 | 161,024,000 | 225,845,000 | 322,803,000 | 177,878,000 | 177,720,000 | 709,565,000 | 904,246,000 | 778,223,000 |
Segment pre-tax operating income/(loss) | $ 31,945,000 | $ 29,635,000 | $ 5,259,000 | $ 8,038,000 | $ 10,237,000 | (82,236,000) | $ 19,867,000 | $ 22,809,000 | $ 74,877,000 | $ (29,323,000) | $ (30,874,000) |
Segment pre-tax operating margin | 9.50% | (3.40%) | (4.10%) | ||||||||
Non-cash goodwill impairment charge | $ 114,363,000 | $ 0 | $ 114,363,000 | $ 82,900,000 | |||||||
Intangible asset amortization | 10,460,000 | 15,400,000 | 21,214,000 | ||||||||
Capital Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | 589,567,000 | 635,733,000 | 490,828,000 | ||||||||
Institutional sales and trading | 145,040,000 | 171,172,000 | 179,458,000 | ||||||||
Total management and performance fees | 6,318,000 | 5,566,000 | 6,363,000 | ||||||||
Investment income/(loss) | 6,290,000 | 17,640,000 | 24,791,000 | ||||||||
Long-term financing expenses | 5,793,000 | 7,676,000 | 9,136,000 | ||||||||
Net revenues | 741,422,000 | 822,435,000 | 692,304,000 | ||||||||
Operating expenses (1) | 663,684,000 | 738,339,000 | 645,863,000 | ||||||||
Segment pre-tax operating income/(loss) | $ 77,738,000 | $ 84,096,000 | $ 46,441,000 | ||||||||
Segment pre-tax operating margin | 10.50% | 10.20% | 6.70% | ||||||||
Non-cash goodwill impairment charge | $ 0 | $ 0 | $ 0 | ||||||||
Intangible asset amortization | 4,858,000 | 10,178,000 | 15,587,000 | ||||||||
Capital Markets | Equities financing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | 122,172,000 | 98,996,000 | 71,161,000 | ||||||||
Capital Markets | Debt financing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | 73,262,000 | 93,434,000 | 115,013,000 | ||||||||
Capital Markets | Advisory services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investment banking | 394,133,000 | 443,303,000 | 304,654,000 | ||||||||
Capital Markets | Equities | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Institutional sales and trading | 77,477,000 | 81,717,000 | 87,992,000 | ||||||||
Capital Markets | Fixed income | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Institutional sales and trading | 67,563,000 | 89,455,000 | 91,466,000 | ||||||||
Asset Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total management and performance fees | 43,485,000 | 51,269,000 | 54,309,000 | ||||||||
Investment income/(loss) | (465,000) | 1,219,000 | 736,000 | ||||||||
Net revenues | 43,020,000 | 52,488,000 | 55,045,000 | ||||||||
Operating expenses (1) | 45,881,000 | 165,907,000 | 132,360,000 | ||||||||
Segment pre-tax operating income/(loss) | $ (2,861,000) | $ (113,419,000) | $ (77,315,000) | ||||||||
Segment pre-tax operating margin | (6.70%) | (216.10%) | (140.50%) | ||||||||
Non-cash goodwill impairment charge | $ 114,363,000 | $ 82,900,000 | |||||||||
Intangible asset amortization | $ 5,602,000 | 5,222,000 | 5,627,000 | ||||||||
Asset Management | Management fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total management and performance fees | 43,461,000 | 51,269,000 | 53,725,000 | ||||||||
Asset Management | Performance fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total management and performance fees | $ 24,000 | $ 0 | $ 584,000 |
Segment Reporting - Reportabl_2
Segment Reporting - Reportable Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Reportable segment assets | $ 1,345,269 | $ 2,024,683 |
Capital Markets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Reportable segment assets | 1,273,147 | 1,933,050 |
Asset Management | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Reportable segment assets | $ 72,122 | $ 91,633 |
Net Capital Requirements and _2
Net Capital Requirements and Other Regulatory Matters - Additional Information (Details) | Dec. 31, 2018USD ($) |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Minimum net capital requirement | $ 1,000,000 |
Net capital | 222,300,000 |
Minimum net capital required | 221,300,000 |
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 | |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||||||||||
Federal | $ 12,747 | $ 27,611 | $ 11,704 | ||||||||
State | 4,783 | 5,550 | 2,454 | ||||||||
Foreign | 276 | 93 | (703) | ||||||||
Current income tax expense/(benefit) | 17,806 | 33,254 | 13,455 | ||||||||
Deferred: | |||||||||||
Federal | (4,151) | 5,783 | (27,764) | ||||||||
State | 907 | (7,554) | (3,758) | ||||||||
Foreign | 4,485 | (1,254) | 939 | ||||||||
Deferred income tax expense/(benefit) | 1,241 | (3,025) | (30,583) | ||||||||
Total income tax expense/(benefit) | $ 13,696 | $ 7,365 | $ 567 | $ (2,581) | $ 57,141 | $ (31,423) | $ 4,906 | $ (395) | $ 19,047 | $ 30,229 | $ (17,128) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal income tax expense/(benefit) at statutory rates | $ 15,724 | $ (10,263) | $ (10,806) | ||||||||
Impact of the Tax Cuts and Jobs Act | 952 | 54,154 | 0 | ||||||||
State income taxes, net of federal tax benefit | 3,483 | (791) | (1,110) | ||||||||
Net tax-exempt interest income | (3,034) | (5,040) | (4,600) | ||||||||
Foreign jurisdictions tax rate differential | 1,067 | 865 | 1,860 | ||||||||
Non-deductible compensation | 1,999 | 0 | 0 | ||||||||
Change in valuation allowance | 5,299 | (752) | 362 | ||||||||
Vestings of stock awards | 7,103 | 9,172 | 0 | ||||||||
Loss/(income) attributable to noncontrolling interests | 253 | (835) | (2,872) | ||||||||
Other, net | 407 | 2,063 | 38 | ||||||||
Total income tax expense/(benefit) | $ 13,696 | $ 7,365 | $ 567 | $ (2,581) | $ 57,141 | $ (31,423) | $ 4,906 | $ (395) | $ 19,047 | $ 30,229 | $ (17,128) |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Deferred compensation | $ 67,563 | $ 61,555 |
Goodwill tax basis in excess of book basis | 35,614 | 38,592 |
Net operating loss carry forwards | 5,554 | 4,789 |
Liabilities/accruals not currently deductible | 1,117 | 1,744 |
Other | 4,976 | 3,296 |
Total deferred tax assets | 114,824 | 109,976 |
Valuation allowance | (5,458) | (159) |
Deferred tax assets after valuation allowance | 109,366 | 109,817 |
Deferred tax liabilities: | ||
Unrealized gains on firm investments | 4,464 | 6,599 |
Fixed assets | 2,450 | 1,813 |
Other | 595 | 200 |
Total deferred tax liabilities | 7,509 | 8,612 |
Net deferred tax assets | $ 101,857 | $ 101,205 |
Income Taxes - Changes in Amoun
Income Taxes - Changes in Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 166 | $ 123 | $ 123 |
Additions based on tax positions related to the current year | 608 | 0 | 0 |
Additions for tax positions of prior years | 0 | 166 | 0 |
Reductions for tax positions of prior years | 0 | 0 | 0 |
Settlements | 0 | (123) | 0 |
Ending Balance | $ 774 | $ 166 | $ 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 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense due to change in enacted tax rate | $ 952 | $ 54,154 | $ 0 |
Statutory federal rate | 21.00% | 35.00% | |
Deferred taxes upon repatriation of our foreign earnings | $ 0 | ||
Valuation allowance | (5,458) | $ (159) | |
Unrecognized tax benefits that would impact effective tax rate | 800 | ||
Accruals related to the payment of interest and penalties | $ 0 | $ 0 | $ 0 |
Piper Jaffray Companies (Pare_3
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets | |||||
Cash and cash equivalents | [1] | $ 50,364 | $ 33,793 | $ 70,374 | $ 270,932 |
Other assets | 51,737 | 54,834 | |||
Total assets | 1,345,269 | 2,024,683 | |||
Liabilities and Shareholders' Equity | |||||
Senior notes | 0 | 125,000 | |||
Accrued compensation | 333,522 | 400,092 | |||
Other liabilities and accrued expenses | 45,294 | 49,800 | |||
Total liabilities | 614,853 | 1,283,448 | |||
Shareholders' equity | 677,444 | 693,332 | |||
Total liabilities and shareholders' equity | 1,345,269 | 2,024,683 | |||
Parent Company | |||||
Assets | |||||
Cash and cash equivalents | 254 | 2,348 | $ 1,170 | $ 48 | |
Investment in and advances to subsidiaries | 676,516 | 827,158 | |||
Other assets | 27,529 | 21,120 | |||
Total assets | 704,299 | 850,626 | |||
Liabilities and Shareholders' Equity | |||||
Senior notes | 0 | 125,000 | |||
Accrued compensation | 26,081 | 30,579 | |||
Other liabilities and accrued expenses | 774 | 1,715 | |||
Total liabilities | 26,855 | 157,294 | |||
Shareholders' equity | 677,444 | 693,332 | |||
Total liabilities and shareholders' equity | $ 704,299 | $ 850,626 | |||
[1] | Upon adoption of ASU 2016-18, restricted cash includes cash and cash equivalents previously segregated for regulatory purposes. See Note 3 for further discussion. |
Piper Jaffray Companies (Pare_4
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||||||||||
Interest | $ 32,749 | $ 31,954 | $ 33,074 | ||||||||
Investment income/(loss) | 4,946 | 18,002 | 24,602 | ||||||||
Total revenues | $ 226,780 | $ 221,233 | $ 178,580 | $ 174,400 | $ 240,782 | $ 244,915 | $ 204,007 | $ 205,487 | 800,993 | 895,191 | 769,874 |
Net revenues | 224,371 | 217,528 | 173,481 | 169,062 | 236,082 | 240,567 | 197,745 | 200,529 | 784,442 | 874,923 | 747,349 |
Non-interest expenses: | |||||||||||
Total non-interest expenses | 192,426 | 187,893 | 168,222 | 161,024 | 225,845 | 322,803 | 177,878 | 177,720 | 709,565 | 904,246 | 778,223 |
Income tax expense | 13,696 | 7,365 | 567 | (2,581) | 57,141 | (31,423) | 4,906 | (395) | 19,047 | 30,229 | (17,128) |
Income of parent company | (18,249) | (22,270) | (4,692) | (10,619) | 46,904 | 50,813 | (14,961) | (23,204) | (55,830) | 59,552 | 13,746 |
Net income/(loss) applicable to Piper Jaffray Companies | $ 18,184 | $ 22,023 | $ 6,226 | $ 10,603 | $ (46,074) | $ (49,713) | $ 13,573 | $ 20,275 | 57,036 | (61,939) | (21,952) |
Parent Company | |||||||||||
Revenues: | |||||||||||
Dividends from subsidiaries | 84,896 | 120,102 | 104,016 | ||||||||
Interest | 1,247 | 1,125 | 994 | ||||||||
Investment income/(loss) | (496) | 4,060 | 1,835 | ||||||||
Total revenues | 85,647 | 125,287 | 106,845 | ||||||||
Interest expense | 4,902 | 7,170 | 8,195 | ||||||||
Net revenues | 80,745 | 118,117 | 98,650 | ||||||||
Non-interest expenses: | |||||||||||
Total non-interest expenses | 5,844 | 4,936 | 4,505 | ||||||||
Income before income tax expense and equity in income of subsidiaries | 74,901 | 113,181 | 94,145 | ||||||||
Income tax expense | 12,612 | 35,589 | 27,952 | ||||||||
Income of parent company | (62,289) | (77,592) | (66,193) | ||||||||
Equity distributed in excess of subsidiaries income | (5,253) | (139,531) | (88,145) | ||||||||
Net income/(loss) applicable to Piper Jaffray Companies | $ 57,036 | $ (61,939) | $ (21,952) |
Piper Jaffray Companies (Pare_5
Piper Jaffray Companies (Parent Company only) - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Operating Activities: | ||||||||||||
Net income/(loss) | $ 18,184 | $ 22,023 | $ 6,226 | $ 10,603 | $ (46,074) | $ (49,713) | $ 13,573 | $ 20,275 | $ 57,036 | $ (61,939) | $ (21,952) | |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||||||||||||
Share-based and deferred compensation | 44,285 | 39,831 | 55,977 | |||||||||
Net cash provided by/(used in) operating activities | 509,850 | 203,104 | (3,225) | |||||||||
Financing Activities: | ||||||||||||
Repurchase of common stock | (70,903) | (25,481) | (70,859) | |||||||||
Payment of cash dividend | (47,157) | (18,947) | 0 | |||||||||
Net cash used in financing activities | (476,769) | (233,120) | (111,561) | |||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 16,571 | (36,581) | (200,558) | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | [1] | 33,793 | 70,374 | 33,793 | 70,374 | 270,932 | ||||||
Cash, cash equivalents and restricted cash at end of year | [1] | 50,364 | 33,793 | 50,364 | 33,793 | 70,374 | ||||||
Parent Company | ||||||||||||
Operating Activities: | ||||||||||||
Net income/(loss) | 57,036 | (61,939) | (21,952) | |||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||||||||||||
Share-based and deferred compensation | 404 | 208 | 944 | |||||||||
Equity distributed in excess of subsidiaries income | 5,253 | 139,531 | 88,145 | |||||||||
Net cash provided by/(used in) operating activities | 62,693 | 77,800 | 67,137 | |||||||||
Financing Activities: | ||||||||||||
Repayment of senior notes | (125,000) | (50,000) | 0 | |||||||||
Advances from/(to) subsidiaries | 154,512 | (5,177) | (6,276) | |||||||||
Repurchase of common stock | (47,142) | (2,498) | (59,739) | |||||||||
Payment of cash dividend | (47,157) | (18,947) | 0 | |||||||||
Net cash used in financing activities | (64,787) | (76,622) | (66,015) | |||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | (2,094) | 1,178 | 1,122 | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | $ 2,348 | $ 1,170 | 2,348 | 1,170 | 48 | |||||||
Cash, cash equivalents and restricted cash at end of year | $ 254 | $ 2,348 | $ 254 | $ 2,348 | $ 1,170 | |||||||
[1] | Upon adoption of ASU 2016-18, restricted cash includes cash and cash equivalents previously segregated for regulatory purposes. See Note 3 for further discussion. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Definitive agreement to acquire - Weeden & Co., L.P. - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Feb. 25, 2019 | |
Subsequent Event [Line Items] | ||
Total consideration | $ 42 | |
Cash to be transferred | $ 24.5 | |
Acquisition related compensation arrangements | $ 17.5 | |
Maximum | Additional consideration | Additional consideration | ||
Subsequent Event [Line Items] | ||
Additional consideration available to be earned | $ 31.5 |
Quarterly Information (unaudi_3
Quarterly Information (unaudited) - Quarterly Information Schedules (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Total revenues | $ 226,780 | $ 221,233 | $ 178,580 | $ 174,400 | $ 240,782 | $ 244,915 | $ 204,007 | $ 205,487 | $ 800,993 | $ 895,191 | $ 769,874 | ||
Interest expense | 2,409 | 3,705 | 5,099 | 5,338 | 4,700 | 4,348 | 6,262 | 4,958 | 16,551 | 20,268 | 22,525 | ||
Net revenues | 224,371 | 217,528 | 173,481 | 169,062 | 236,082 | 240,567 | 197,745 | 200,529 | 784,442 | 874,923 | 747,349 | ||
Non-interest expenses | 192,426 | 187,893 | 168,222 | 161,024 | 225,845 | 322,803 | 177,878 | 177,720 | 709,565 | 904,246 | 778,223 | ||
Income/(loss) before income tax expense/(benefit) | 31,945 | 29,635 | 5,259 | 8,038 | 10,237 | (82,236) | 19,867 | 22,809 | 74,877 | (29,323) | (30,874) | ||
Income tax expense/(benefit) | 13,696 | 7,365 | 567 | (2,581) | 57,141 | (31,423) | 4,906 | (395) | 19,047 | 30,229 | (17,128) | ||
Net income/(loss) | 18,249 | 22,270 | 4,692 | 10,619 | (46,904) | (50,813) | 14,961 | 23,204 | 55,830 | (59,552) | (13,746) | ||
Net income/(loss) applicable to noncontrolling interests | 65 | 247 | (1,534) | 16 | (830) | (1,100) | 1,388 | 2,929 | (1,206) | 2,387 | 8,206 | ||
Net income/(loss) applicable to Piper Jaffray Companies | 18,184 | 22,023 | 6,226 | 10,603 | (46,074) | (49,713) | 13,573 | 20,275 | 57,036 | (61,939) | (21,952) | ||
Net income/(loss) applicable to Piper Jaffray Companies' common shareholders | $ 16,164 | $ 19,377 | $ 5,522 | $ 6,435 | $ (46,771) | $ (50,415) | $ 11,522 | $ 16,828 | $ 49,993 | $ (64,875) | [1] | $ (21,952) | [1] |
Earnings/(loss) per common share | |||||||||||||
Basic | $ 1.22 | $ 1.45 | $ 0.43 | $ 0.47 | $ (3.63) | $ (3.91) | $ 0.89 | $ 1.33 | $ 3.78 | $ (5.07) | $ (1.73) | ||
Diluted | 1.21 | 1.43 | 0.43 | 0.47 | (3.63) | (3.91) | 0.89 | 1.31 | 3.72 | (5.07) | [2] | (1.73) | [2] |
Dividends declared per common share | $ 0.375 | $ 0.375 | $ 0.375 | $ 1.995 | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 3.12 | $ 1.25 | $ 0 | ||
Weighted average number of common shares | |||||||||||||
Basic | 13,191 | 13,343 | 13,303 | 13,096 | 12,906 | 12,898 | 12,826 | 12,594 | 13,234 | 12,807 | 12,674 | ||
Diluted | 13,367 | 13,508 | 13,438 | 13,382 | 13,075 | 12,975 | 12,937 | 12,922 | 13,425 | 12,978 | [2] | 12,779 | [2] |
Non-cash goodwill impairment charge | $ 114,363 | $ 0 | $ 114,363 | $ 82,900 | |||||||||
Remeasurement of deferred tax assets due to a lower federal corporate rate | $ 54,154 | ||||||||||||
[1] | No allocation of undistributed income was made due to loss position. See Note 20. | ||||||||||||
[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. |