PIPER JAFFRAY COMPANIES (NYSE:PJC) Files An 8-K Material ImpairmentsItem 2.06Material Impairments.
On September 25, 2017, Piper Jaffray Companies (the “Company”) concluded that it will be required to record a noncash impairment charge to reduce the carrying value of the goodwill associated with the Company’s Asset Management segment. The Company identified goodwill impairment indicators in the third quarter of its fiscal year ending December 31, 2017 (“fiscal 2017”) necessitating a full impairment testing of goodwill. The Company’s Asset Management segment has experienced declining profitability in fiscal 2017 as decreases in revenues relating to higher margin product offerings have not been fully offset by new revenues on assets gained in lower margin product offerings. Company management believes the shift in revenue mix is attributable, in part, to the extended cycle of investors favoring passive investment vehicles over active management. The Company estimates that the impairment charge will be in the range of $100.0 to $114.4 million on a pre-tax basis. The impairment will not result in any current or future cash expenditures.
About PIPER JAFFRAY COMPANIES (NYSE:PJC)
Piper Jaffray Companies is an investment bank and asset management company, which serves the needs of corporations, private equity groups, public entities, non-profit entities and institutional investors in the United States and internationally. The Company provides products and services, including equity and debt capital markets products, financial advisory services, equity and fixed income institutional brokerage, equity and fixed income research, and asset management services. Its segments include Capital Markets and Asset Management. The Capital Markets segment provides investment banking and institutional sales, trading and research services for various equity and fixed income products. The Capital Markets segment also includes the alternative asset management funds and its principal investments. The Asset Management segment includes its traditional asset management business and its investments in registered funds and private funds or partnerships that it manages.