Shareholders' Equity

Share Repurchases

Effective September 30, 2017, the Company's board of directors authorized the repurchase of up to $150.0 million in common shares through September 30, 2019. During the nine months ended September 30, 2018, the Company repurchased 124,606 shares at an average price of $72.26 per share for an aggregate purchase price of $9.0 million related to this authorization. The Company has $141.0 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 common shares through September 30, 2017. During the nine months ended September 30, 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.

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 264,254 shares and 308,801 shares, or $22.7 million and $22.6 million of the Company's common stock for this purpose during the nine months ended September 30, 2018 and 2017, 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 13. During the nine months ended September 30, 2018 and 2017, the Company issued 840,043 shares and 850,925 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, which includes unvested restricted shares. 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.

During the nine months ended September 30, 2018, the Company declared and paid quarterly cash dividends on its common stock, aggregating $1.125 per share, and an annual special cash dividend on its common stock of $1.62 per share, totaling $41.6 million.

On October 26, 2018, the board of directors declared a cash dividend of $0.375 per share to be paid on December 14, 2018, to shareholders of record as of the close of business on November 28, 2018.

Noncontrolling Interests

The consolidated financial statements include the accounts of Piper Jaffray Companies, its wholly owned subsidiaries and other entities in which the Company has a controlling financial interest. Noncontrolling interests represent equity interests in consolidated entities that are not attributable, either directly or indirectly, to Piper Jaffray Companies. Noncontrolling interests include the minority equity holders' proportionate share of the equity in merchant banking funds of $42.0 million and a senior living fund aggregating $5.2 million as of September 30, 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 nine months ended September 30, 2018 and 2017, respectively.

The following table presents the changes in shareholders' equity for the nine months ended September 30, 2018:



	Common		Common						Total
	Shares		Shareholders'			Noncontrolling			Shareholders'
(Amounts in thousands, except share amounts)	Outstanding		Equity			Interests			Equity
Balance at December 31, 2017	12,911,149		$	693,332		$	47,903		$	741,235
Net income/(loss)	—		38,852			(1,271		)	37,581
Dividends	—		(41,631		)	—			(41,631		)
Amortization/issuance of restricted stock	—		44,541			—			44,541
Issuance of treasury shares for restricted stock vestings	840,043		—			—			—
Repurchase of common stock through share repurchase program	(124,606	)	(9,004		)	—			(9,004		)
Repurchase of common stock for employee tax withholding	(264,254	)	(22,660		)	—			(22,660		)
Shares reserved/issued for director compensation	4,371		348			—			348
Other comprehensive income	—		30			—			30
Cumulative effect upon adoption of new accounting standard, net of tax (1)	—		(3,597		)	—			(3,597		)
Fund capital contributions, net	—		—			572			572
Balance at September 30, 2018	13,366,703		$	700,211		$	47,204		$	747,415


(1)	Cumulative effect adjustment upon adoption of ASU 2014-09, as amended. See Note 2 for further discussion.