Shareholders' Equity

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Share Repurchases

Effective August 14, 2015, the Company's board of directors authorized the repurchase of up to $150.0 million in common shares through September 30, 2017. During the six months ended June 30, 2017, the Company repurchased 27,530 shares at an average price of $72.63 per share for an aggregate purchase price of $2.0 million related to this authorization. During the six months ended June 30, 2016, the Company repurchased 1,351,015 shares at an average price of $38.76 per share for an aggregate purchase price of $52.4 million related to this authorization. The Company has $69.8 million remaining under this authorization.

The Company also purchases shares of common stock from restricted stock award recipients upon the award vesting as recipients sell shares to meet their employment tax obligations. The Company purchased 293,357 shares and 233,431 shares, or $21.6 million and $9.8 million of the Company’s common stock for this purpose during the six months ended June 30, 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 16. During the six months ended June 30, 2017 and 2016, the Company issued 800,044 shares and 674,981 shares, respectively, related to these obligations.

Dividends

Beginning in 2017, the Company initiated the payment of a quarterly cash dividend to holders of its common stock. 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.

On July 27, 2017, the board of directors declared a cash dividend of $0.3125 per share to be paid on September 15, 2017, to shareholders of record as of the close of business on August 28, 2017. During the six months ended June 30, 2017, the Company declared and paid dividends of $0.625 per share, totaling $9.5 million.

Noncontrolling Interests

The consolidated financial statements include the accounts of Piper Jaffray Companies, its wholly owned subsidiaries and other entities in which the Company has a controlling financial interest. Noncontrolling interests represent equity interests in consolidated entities that are not attributable, either directly or indirectly, to Piper Jaffray Companies. Noncontrolling interests include the minority equity holders’ proportionate share of the equity in a merchant banking fund of $37.1 million and a senior living fund aggregating $8.1 million as of June 30, 2017. As of December 31, 2016, noncontrolling interests included the minority equity holders’ proportionate share of the equity in a merchant banking fund of $35.0 million, a municipal bond fund with employee investors of $9.2 million and a senior living fund aggregating $12.8 million.

Ownership interests in entities held by parties other than the Company’s common shareholders are presented as noncontrolling interests within shareholders’ equity, separate from the Company’s own equity. Revenues, expenses and net income or loss are reported on the consolidated statements of operations on a consolidated basis, which includes amounts attributable to both the Company’s common shareholders and noncontrolling interests. Net income or loss is then allocated between the Company and noncontrolling interests based upon their relative ownership interests. Net income applicable to noncontrolling interests is deducted from consolidated net income to determine net income applicable to the Company. There was no other comprehensive income or loss attributed to noncontrolling interests for the six months ended June 30, 2017 and 2016, respectively.

The following table presents the changes in shareholders' equity for the six months ended June 30, 2017:

	Common		Common						Total
	Shares		Shareholders’			Noncontrolling			Shareholders’
(Amounts in thousands, except share amounts)	Outstanding		Equity			Interests			Equity
Balance at December 31, 2016	12,391,970		$	759,250		$	57,016		$	816,266
Net income	—		33,848			4,317			38,165
Dividends	—		(9,483		)	—			(9,483		)
Amortization/issuance of restricted stock (1)	—		26,725			—			26,725
Issuance of treasury shares for options exercised	26,149		1,703			—			1,703
Issuance of treasury shares for restricted stock vestings	773,895		—			—			—
Repurchase of common stock through share repurchase program	(27,530	)	(1,999		)	—			(1,999		)
Repurchase of common stock for employee tax withholding	(293,357	)	(21,598		)	—			(21,598		)
Shares reserved/issued for director compensation	2,124		134			—			134
Other comprehensive income	—		995			—			995
Fund capital distributions, net	—		—			(16,169		)	(16,169		)
Balance at June 30, 2017	12,873,251		$	789,575		$	45,164		$	834,739

(1) Includes amortization of restricted stock as part of deal consideration for the acquisition of Simmons. See Note 3 for further discussion.