Noncontrolling Interests

9 Months Ended

Sep. 30, 2012

The consolidated financial statements include the accounts of Piper Jaffray Companies, its wholly owned subsidiaries and other entities in which the Company has a controlling financial interest. Noncontrolling interests represent equity interests in consolidated entities that are not attributable, either directly or indirectly, to Piper Jaffray Companies. Noncontrolling interests include the minority equity holders’ proportionate share of the equity in a municipal bond fund of $33.6 million and private equity investment vehicles aggregating $12.4 million as of September 30, 2012.

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 nine months ended September 30, 2012.

The following table summarizes the changes in common shareholders’ equity attributable to the Company and equity attributable to noncontrolling interests for the nine months ended September 30, 2012:



(Dollars in thousands)	Common Shareholders’ Equity			Noncontrolling Interests			Total Shareholders’ Equity
Balance at December 31, 2011	$	718,391		$	32,209		$	750,600
Net income	29,444			2,671			32,115
Amortization/issuance of restricted stock	15,111			—			15,111
Other comprehensive income	131			—			131
Repurchase of common stock through share repurchase program	(33,468		)	—			(33,468		)
Repurchase of common stock for employee tax withholding	(9,046		)	—			(9,046		)
Issuance of treasury shares for 401k match	3,814			—			3,814
Shares reserved to meet deferred compensation obligations	239			—			239
Fund capital contributions	—			11,084			11,084
Fund capital withdrawals	—			(4		)	(4		)
Balance at September 30, 2012	$	724,616		$	45,960		$	770,576

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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