XML 50 R30.htm IDEA: XBRL DOCUMENT v3.6.0.2
Earnings Per Share
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share

The Company calculates earnings per share using the two-class method. Basic earnings per common share is computed by dividing net income/(loss) applicable to Piper Jaffray Companies’ common shareholders by the weighted average number of common shares outstanding for the period. Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders represents net income/(loss) applicable to Piper Jaffray Companies reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities. All of the Company’s unvested restricted shares are deemed to be participating securities as they are eligible to share in the profits (e.g., receive dividends) of the Company. The Company’s unvested restricted stock units are not participating securities as they are not eligible to share in the profits of the Company. Diluted earnings per common share is calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive stock options and restricted stock units.

The computation of earnings per share is as follows:
 
Year Ended December 31,
(Amounts in thousands, except per share data)
2016
 
2015
 
2014
Net income/(loss) applicable to Piper Jaffray Companies
$
(21,952
)
 
$
52,075

 
$
63,172

Earnings allocated to participating securities (1)
—

 
(4,015
)
 
(5,031
)
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders (2)
$
(21,952
)
 
$
48,060

 
$
58,141

 
 
 
 
 
 
Shares for basic and diluted calculations:
 
 
 
 
 
Average shares used in basic computation
12,674

 
14,368

 
14,971

Stock options
15

 
21

 
54

Restricted stock units
90

 
—

 
—

Average shares used in diluted computation
12,779

(3)
14,389

 
15,025

 
 
 
 
 
 
Earnings/(loss) per common share:
 
 
 
 
 
Basic
$
(1.73
)
 
$
3.34

 
$
3.88

Diluted
$
(1.73
)
(3)
$
3.34

 
$
3.87

(1)
Represents the allocation of earnings to participating securities. Losses are not allocated to participating securities. Participating securities include all of the Company’s unvested restricted shares. The weighted average participating shares outstanding were 2,691,728; 1,201,610 and 1,299,827 for the years ended December 31, 2016, 2015 and 2014, respectively.
(2)
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders for diluted and basic EPS may differ under the two-class method as a result of adding the effect of the assumed exercise of stock options to dilutive shares outstanding, which alters the ratio used to allocate earnings to Piper Jaffray Companies’ common shareholders and participating securities for purposes of calculating diluted and basic EPS.
(3)
Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred. 2,874,117 common shares were excluded from diluted EPS as the Company had a net loss for the year.

The anti-dilutive effects from stock options and restricted stock units were immaterial for the years ended December 31, 2016, 2015 and 2014.