false2024Q1000123024512/31P3YP3Y101040900012302452024-01-012024-03-3100012302452024-04-30xbrli:shares00012302452024-03-31iso4217:USD00012302452023-12-310001230245us-gaap:AssetNotPledgedAsCollateralMember2024-03-310001230245us-gaap:AssetNotPledgedAsCollateralMember2023-12-310001230245us-gaap:AssetPledgedAsCollateralMember2024-03-310001230245us-gaap:AssetPledgedAsCollateralMember2023-12-31iso4217:USDxbrli:shares00012302452023-01-012023-03-310001230245us-gaap:CommonStockMember2023-12-310001230245us-gaap:AdditionalPaidInCapitalMember2023-12-310001230245us-gaap:RetainedEarningsMember2023-12-310001230245us-gaap:TreasuryStockCommonMember2023-12-310001230245us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001230245us-gaap:ParentMember2023-12-310001230245us-gaap:NoncontrollingInterestMember2023-12-310001230245us-gaap:RetainedEarningsMember2024-01-012024-03-310001230245us-gaap:ParentMember2024-01-012024-03-310001230245us-gaap:NoncontrollingInterestMember2024-01-012024-03-310001230245us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001230245us-gaap:CommonStockMember2024-01-012024-03-310001230245us-gaap:TreasuryStockCommonMember2024-01-012024-03-310001230245us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001230245us-gaap:CommonStockMember2024-03-310001230245us-gaap:AdditionalPaidInCapitalMember2024-03-310001230245us-gaap:RetainedEarningsMember2024-03-310001230245us-gaap:TreasuryStockCommonMember2024-03-310001230245us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001230245us-gaap:ParentMember2024-03-310001230245us-gaap:NoncontrollingInterestMember2024-03-310001230245us-gaap:CommonStockMember2022-12-310001230245us-gaap:AdditionalPaidInCapitalMember2022-12-310001230245us-gaap:RetainedEarningsMember2022-12-310001230245us-gaap:TreasuryStockCommonMember2022-12-310001230245us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001230245us-gaap:ParentMember2022-12-310001230245us-gaap:NoncontrollingInterestMember2022-12-3100012302452022-12-310001230245us-gaap:RetainedEarningsMember2023-01-012023-03-310001230245us-gaap:ParentMember2023-01-012023-03-310001230245us-gaap:NoncontrollingInterestMember2023-01-012023-03-310001230245us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001230245us-gaap:CommonStockMember2023-01-012023-03-310001230245us-gaap:TreasuryStockCommonMember2023-01-012023-03-310001230245us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001230245us-gaap:CommonStockMember2023-03-310001230245us-gaap:AdditionalPaidInCapitalMember2023-03-310001230245us-gaap:RetainedEarningsMember2023-03-310001230245us-gaap:TreasuryStockCommonMember2023-03-310001230245us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001230245us-gaap:ParentMember2023-03-310001230245us-gaap:NoncontrollingInterestMember2023-03-3100012302452023-03-31pipr:segment0001230245us-gaap:AccountingStandardsUpdate202307Member2024-01-012024-03-310001230245us-gaap:AccountingStandardsUpdate202309Member2024-01-012024-03-310001230245pipr:PershingclearingarrangementMember2024-03-310001230245us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001230245us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-03-310001230245us-gaap:FairValueMeasurementsRecurringMember2024-03-310001230245us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001230245us-gaap:FairValueMeasurementsRecurringMemberus-gaap:NoncontrollingInterestMember2024-03-310001230245us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001230245us-gaap:FairValueMeasurementsRecurringMember2023-12-310001230245us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001230245us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001230245us-gaap:FairValueMeasurementsRecurringMemberus-gaap:NoncontrollingInterestMember2023-12-310001230245us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NoncontrollingInterestMember2024-03-310001230245us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NoncontrollingInterestMember2023-12-31xbrli:pure0001230245us-gaap:FairValueInputsLevel3Member2024-01-012024-03-310001230245us-gaap:FairValueInputsLevel3Member2023-01-012023-03-310001230245us-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2024-03-310001230245us-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel1Memberpipr:SecondQuarterOf2024Memberus-gaap:EquitySecuritiesMember2024-03-310001230245us-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel1Memberpipr:ThirdQuarterOf2024Memberus-gaap:EquitySecuritiesMember2024-03-310001230245us-gaap:NontaxableMunicipalBondsMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2023-12-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2023-12-310001230245us-gaap:InvestmentsMember2023-12-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMember2023-12-310001230245us-gaap:NontaxableMunicipalBondsMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-01-012024-03-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-01-012024-03-310001230245us-gaap:InvestmentsMember2024-01-012024-03-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMember2024-01-012024-03-310001230245us-gaap:NontaxableMunicipalBondsMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-03-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-03-310001230245us-gaap:InvestmentsMember2024-03-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMember2024-03-310001230245us-gaap:NontaxableMunicipalBondsMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2022-12-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2022-12-310001230245us-gaap:InvestmentsMember2022-12-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMember2022-12-310001230245us-gaap:NontaxableMunicipalBondsMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2023-01-012023-03-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2023-01-012023-03-310001230245us-gaap:InvestmentsMember2023-01-012023-03-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMember2023-01-012023-03-310001230245us-gaap:NontaxableMunicipalBondsMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2023-03-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2023-03-310001230245us-gaap:InvestmentsMember2023-03-310001230245us-gaap:DerivativeMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMember2023-03-310001230245pipr:MeasurementInputExpectedRecoveryRateMembersrt:MinimumMemberus-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-03-310001230245srt:MaximumMemberpipr:MeasurementInputExpectedRecoveryRateMemberus-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-03-310001230245srt:WeightedAverageMemberpipr:MeasurementInputExpectedRecoveryRateMemberus-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-03-310001230245srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputCreditSpreadMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-03-31pipr:basis_points0001230245srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputCreditSpreadMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-03-310001230245srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputCreditSpreadMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMember2024-03-310001230245us-gaap:InvestmentsMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:MarketApproachValuationTechniqueMember2024-03-310001230245srt:MaximumMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:MarketApproachValuationTechniqueMember2024-03-310001230245srt:WeightedAverageMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:MarketApproachValuationTechniqueMember2024-03-310001230245us-gaap:InvestmentsMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2024-03-310001230245srt:MaximumMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2024-03-310001230245srt:WeightedAverageMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2024-03-310001230245us-gaap:InvestmentsMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberpipr:MeasurementInputMarketComparableValuationMultipleMemberus-gaap:MarketApproachValuationTechniqueMember2024-03-310001230245srt:MaximumMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberpipr:MeasurementInputMarketComparableValuationMultipleMemberus-gaap:MarketApproachValuationTechniqueMember2024-03-310001230245srt:WeightedAverageMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberpipr:MeasurementInputMarketComparableValuationMultipleMemberus-gaap:MarketApproachValuationTechniqueMember2024-03-310001230245us-gaap:InvestmentsMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputDiscountRateMember2024-03-310001230245srt:MaximumMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputDiscountRateMember2024-03-310001230245srt:WeightedAverageMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:MeasurementInputDiscountRateMember2024-03-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:MeasurementInputCreditSpreadMember2024-03-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMembersrt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:MeasurementInputCreditSpreadMember2024-03-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:MeasurementInputCreditSpreadMember2024-03-310001230245us-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Member2024-03-310001230245us-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel3Memberpipr:MeasurementInputRecentRoundOfFinancingMember2024-03-310001230245us-gaap:ShortTermDebtMemberus-gaap:AssetPledgedAsCollateralMember2024-03-310001230245us-gaap:ShortTermDebtMemberus-gaap:AssetPledgedAsCollateralMember2023-12-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMemberus-gaap:InterestRateContractMemberpipr:CustomerMatchedBookMemberus-gaap:NondesignatedMember2024-03-310001230245us-gaap:InterestRateContractMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMemberpipr:CustomerMatchedBookMemberus-gaap:NondesignatedMember2024-03-310001230245us-gaap:InterestRateContractMemberpipr:CustomerMatchedBookMemberus-gaap:NondesignatedMember2024-03-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMemberus-gaap:InterestRateContractMemberpipr:CustomerMatchedBookMemberus-gaap:NondesignatedMember2023-12-310001230245us-gaap:InterestRateContractMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMemberpipr:CustomerMatchedBookMemberus-gaap:NondesignatedMember2023-12-310001230245us-gaap:InterestRateContractMemberpipr:CustomerMatchedBookMemberus-gaap:NondesignatedMember2023-12-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMemberpipr:TradingSecuritiesDerivativeContractMemberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2024-03-310001230245pipr:TradingSecuritiesDerivativeContractMemberus-gaap:InterestRateContractMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMemberus-gaap:NondesignatedMember2024-03-310001230245pipr:TradingSecuritiesDerivativeContractMemberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2024-03-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMemberpipr:TradingSecuritiesDerivativeContractMemberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2023-12-310001230245pipr:TradingSecuritiesDerivativeContractMemberus-gaap:InterestRateContractMemberpipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMemberus-gaap:NondesignatedMember2023-12-310001230245pipr:TradingSecuritiesDerivativeContractMemberus-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2023-12-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMemberus-gaap:NondesignatedMember2024-03-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMemberus-gaap:NondesignatedMember2024-03-310001230245us-gaap:NondesignatedMember2024-03-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsOwnedMemberus-gaap:NondesignatedMember2023-12-310001230245pipr:FinancialInstrumentsAndOtherInventoryPositionsSoldButNotYetPurchasedMemberus-gaap:NondesignatedMember2023-12-310001230245us-gaap:NondesignatedMember2023-12-310001230245us-gaap:InterestRateContractMemberpipr:InvestmentBankingRevenuesMemberus-gaap:NondesignatedMember2024-01-012024-03-310001230245us-gaap:InterestRateContractMemberpipr:InvestmentBankingRevenuesMemberus-gaap:NondesignatedMember2023-01-012023-03-310001230245us-gaap:InterestRateContractMemberpipr:InstitutionalBrokerageRevenuesMemberus-gaap:NondesignatedMember2024-01-012024-03-310001230245us-gaap:InterestRateContractMemberpipr:InstitutionalBrokerageRevenuesMemberus-gaap:NondesignatedMember2023-01-012023-03-310001230245us-gaap:StockOptionMemberpipr:InstitutionalBrokerageRevenuesMemberus-gaap:NondesignatedMember2024-01-012024-03-310001230245us-gaap:StockOptionMemberpipr:InstitutionalBrokerageRevenuesMemberus-gaap:NondesignatedMember2023-01-012023-03-310001230245us-gaap:NondesignatedMember2024-01-012024-03-310001230245us-gaap:NondesignatedMember2023-01-012023-03-310001230245pipr:CounterpartiesnotrequiredtopostcollateralMemberus-gaap:FairValueConcentrationOfRiskMaximumAmountOfLossMember2024-03-310001230245pipr:OneunnamedfinancialinstitutionalnotrequiredtopostcollateralMemberus-gaap:FairValueConcentrationOfRiskMaximumAmountOfLossMember2024-03-310001230245us-gaap:FairValueInputsLevel3Member2024-03-310001230245us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2024-03-310001230245us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2024-03-310001230245us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-12-310001230245pipr:EmployeeMember2024-03-310001230245pipr:EmployeeMember2023-12-310001230245us-gaap:RevolvingCreditFacilityMember2024-03-310001230245us-gaap:RevolvingCreditFacilityMember2023-12-310001230245us-gaap:LineOfCreditMember2024-01-012024-03-310001230245us-gaap:LineOfCreditMember2024-03-310001230245us-gaap:LineOfCreditMember2023-12-310001230245pipr:SettlementWithSECAndCFTCMember2024-03-310001230245pipr:OtherNonInterestExpenseMemberpipr:SettlementWithSECAndCFTCMember2024-01-012024-03-310001230245pipr:QuarterlyDividendMember2024-01-012024-03-310001230245pipr:SpecialDividendMember2024-01-012024-03-310001230245us-gaap:SubsequentEventMemberpipr:QuarterlyDividendMember2024-04-262024-04-260001230245pipr:ShareRepurchaseProgramAuthorizedMay62022Member2024-01-012024-03-310001230245pipr:ShareRepurchaseProgramAuthorizedMay62022Member2022-05-060001230245pipr:ShareRepurchaseProgramAuthorizedMay62022Member2024-03-310001230245pipr:ShareRepurchaseProgramAuthorizedJanuary12022Member2024-01-012024-03-310001230245pipr:ShareRepurchaseProgramAuthorizedJanuary12022Member2022-01-010001230245pipr:ShareRepurchaseProgramAuthorizedJanuary12022Member2024-03-310001230245pipr:AdvisoryServicesMember2024-01-012024-03-310001230245pipr:AdvisoryServicesMember2023-01-012023-03-310001230245pipr:EquitiesFinancingMember2024-01-012024-03-310001230245pipr:EquitiesFinancingMember2023-01-012023-03-310001230245pipr:DebtFinancingMember2024-01-012024-03-310001230245pipr:DebtFinancingMember2023-01-012023-03-310001230245pipr:EquitySalesandTradingMember2024-01-012024-03-310001230245pipr:EquitySalesandTradingMember2023-01-012023-03-310001230245pipr:FixedIncomeSalesandTradingMember2024-01-012024-03-310001230245pipr:FixedIncomeSalesandTradingMember2023-01-012023-03-31pipr:plan0001230245pipr:RestrictedStockRelatedToCompensationPlansMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockMemberpipr:AnnualGrantMember2024-03-310001230245pipr:SignOnGrantMemberpipr:RestrictedStockRelatedToCompensationPlansMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockMember2024-03-310001230245pipr:RestrictedStockRelatedToCompensationPlansMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMember2024-03-310001230245pipr:A2020EmploymentInducementAwardPlanMemberpipr:RestrictedStockRelatedToCompensationPlansMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMember2024-03-310001230245pipr:RestrictedStockRelatedToCompensationPlansMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:A2022EmploymentInducementAwardPlanMember2024-03-310001230245pipr:RestrictedStockRelatedToCompensationPlansMemberus-gaap:RestrictedStockMember2024-03-310001230245us-gaap:RestrictedStockMemberpipr:RestrictedStockRelatedToAcquisitionsMember2024-03-310001230245us-gaap:RestrictedStockMember2024-03-310001230245us-gaap:RestrictedStockUnitsRSUMember2024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMember2024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockMemberpipr:AnnualGrantMember2024-01-012024-03-310001230245pipr:SignOnGrantMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMembersrt:MinimumMemberus-gaap:RestrictedStockMember2024-01-012024-03-310001230245pipr:SignOnGrantMembersrt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockMember2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMember2022-01-012022-12-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:InducementGrantMembersrt:MinimumMemberus-gaap:RestrictedStockMember2022-01-012022-12-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMember2022-01-012022-12-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2024Memberpipr:PerformanceConditionMember2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2024Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2024Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2023Memberpipr:PerformanceConditionMember2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2023Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2023Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2022Memberpipr:PerformanceConditionMember2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2022Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2022Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2021Memberpipr:PerformanceConditionMember2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2021Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2021Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:GrantYear2020Memberus-gaap:RestrictedStockUnitsRSUMemberpipr:PerformanceConditionMember2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberpipr:GrantYear2020Memberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:GrantYear2020Memberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:PerformanceConditionMember2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2024Memberpipr:PerformanceConditionMembersrt:ProFormaMember2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2023Memberpipr:PerformanceConditionMembersrt:ProFormaMember2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2022Memberpipr:PerformanceConditionMembersrt:ProFormaMember2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberpipr:VestingYear2027Memberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2024Member2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberpipr:VestingYear2026Memberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2023Member2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2022Memberpipr:VestingYear2025Member2024-01-012024-03-310001230245pipr:VestingYear2024Memberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:MarketConditionMemberus-gaap:RestrictedStockUnitsRSUMemberpipr:GrantYear2021Member2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberpipr:VestingYear2023Memberpipr:MarketConditionMemberpipr:GrantYear2020Memberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:EmployeeStockOptionMemberpipr:GrantYear2023Member2024-01-012024-03-310001230245pipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:EmployeeStockOptionMemberpipr:GrantYear2018Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:EmployeeStockOptionMemberpipr:GrantYear2023Member2024-01-012024-03-310001230245srt:MaximumMemberpipr:AmendedAndRestated2003AnnualAndLongTermIncentivePlanMemberus-gaap:EmployeeStockOptionMemberpipr:GrantYear2018Member2024-01-012024-03-310001230245pipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:A2019EmploymentInducementAwardPlanMemberpipr:WeedenCo.LPMember2019-08-022019-08-020001230245pipr:A2020EmploymentInducementAwardPlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:SandlerONeillMember2020-01-032020-01-030001230245pipr:A2020EmploymentInducementAwardPlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:A18MonthVestingPeriodMemberpipr:SandlerONeillMember2020-01-032020-01-030001230245pipr:A2020EmploymentInducementAwardPlanMemberpipr:InducementGrantMemberpipr:ThreeYearPeriodMemberus-gaap:RestrictedStockMemberpipr:SandlerONeillMember2020-01-032020-01-030001230245pipr:A2020EmploymentInducementAwardPlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:FiveYearVestingPeriodMemberpipr:SandlerONeillMember2020-01-032020-01-030001230245srt:WeightedAverageMemberpipr:A2020EmploymentInducementAwardPlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:SandlerONeillMember2020-01-032020-01-030001230245pipr:A2020EmploymentInducementAwardPlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:TheValenceGroupMember2020-04-032020-04-030001230245pipr:A2020EmploymentInducementAwardPlanMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:TRSAdvisorsLLCMember2020-12-312020-12-310001230245pipr:DBOPartnersMemberpipr:InducementGrantMemberus-gaap:RestrictedStockMemberpipr:A2022EmploymentInducementAwardPlanMember2022-10-072022-10-070001230245us-gaap:RestrictedStockMember2023-12-310001230245us-gaap:RestrictedStockMember2024-01-012024-03-310001230245us-gaap:RestrictedStockUnitsRSUMember2023-12-310001230245us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001230245pipr:RestrictedstockandrestrictedstockunitsRSUsMember2024-03-310001230245pipr:RestrictedstockandrestrictedstockunitsRSUsMember2024-01-012024-03-310001230245us-gaap:EmployeeStockOptionMember2023-12-310001230245us-gaap:EmployeeStockOptionMember2023-01-012023-12-310001230245us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001230245us-gaap:EmployeeStockOptionMember2024-03-310001230245pipr:MutualFundRestrictedSharesMember2024-01-012024-03-310001230245pipr:NonqualifiedDeferredCompensationPlanMember2024-03-310001230245us-gaap:FairValueInputsLevel1Memberpipr:NonqualifiedDeferredCompensationPlanMember2024-03-310001230245us-gaap:FairValueInputsLevel1Memberpipr:NonqualifiedDeferredCompensationPlanMember2023-12-310001230245pipr:NonqualifiedDeferredCompensationPlanMember2023-12-310001230245pipr:DBOPartnersMemberpipr:NetrevenuetargetMember2022-10-070001230245pipr:DBOPartnersMemberpipr:NoServiceRequirementMemberpipr:NetrevenuetargetMember2022-10-070001230245pipr:DBOPartnersMemberpipr:NoServiceRequirementMemberpipr:NetrevenuetargetMember2024-03-310001230245pipr:DBOPartnersMemberpipr:ServiceRequirementMemberpipr:NetrevenuetargetMember2022-10-070001230245pipr:DBOPartnersMemberpipr:ServiceRequirementMemberpipr:NetrevenuetargetMember2024-03-310001230245pipr:CornerstoneMacroMemberpipr:NetrevenuetargetMember2022-02-040001230245pipr:NoServiceRequirementMemberpipr:CornerstoneMacroMemberpipr:NetrevenuetargetMember2022-02-040001230245pipr:NoServiceRequirementMemberpipr:CornerstoneMacroMemberpipr:NetrevenuetargetMember2024-03-310001230245us-gaap:SubsequentEventMemberpipr:NoServiceRequirementMemberpipr:CornerstoneMacroMemberpipr:NetrevenuetargetMember2024-04-012024-04-010001230245pipr:CornerstoneMacroMemberpipr:ServiceRequirementMemberpipr:NetrevenuetargetMember2024-03-310001230245pipr:CornerstoneMacroMemberpipr:ServiceRequirementMemberpipr:NetrevenuetargetMember2024-01-012024-03-310001230245pipr:CornerstoneMacroMemberpipr:ServiceRequirementMemberpipr:NetrevenuetargetMember2023-01-012023-03-310001230245pipr:TRSAdvisorsLLCMemberpipr:RevenueThresholdMember2020-12-312020-12-310001230245pipr:TRSAdvisorsLLCMemberpipr:RevenueThresholdMember2024-01-012024-03-310001230245pipr:TRSAdvisorsLLCMemberpipr:RevenueThresholdMember2023-01-012023-03-310001230245pipr:TheValenceGroupMemberpipr:RevenueThresholdMember2020-04-032020-04-030001230245pipr:TheValenceGroupMemberpipr:RevenueThresholdMember2023-07-012023-09-300001230245pipr:TheValenceGroupMemberpipr:RevenueThresholdMember2023-01-012023-03-310001230245pipr:RestrictedCashMemberpipr:WeedenCo.Member2019-08-020001230245us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001230245us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001230245us-gaap:RestrictedStockMember2023-01-012023-03-310001230245pipr:DebbraL.SchonemanMember2024-01-012024-03-310001230245pipr:DebbraL.SchonemanMember2024-03-31

For the transition period from to

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☑ No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☑ No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐ No  ☑

As of April 30, 2024, the registrant had 17,699,038 shares of Common Stock outstanding.

(1)Includes amortization of restricted stock issued in conjunction with the Company's acquisitions.

NOTE 1 | ORGANIZATION AND BASIS OF PRESENTATION

Piper Sandler Companies is the parent company of Piper Sandler & Co. ("Piper Sandler"), a securities broker dealer and investment banking firm; Piper Sandler Ltd., a firm providing securities brokerage and mergers and acquisitions services in the United Kingdom ("U.K."); Piper Sandler Finance LLC, which facilitates corporate debt underwriting in conjunction with affiliated credit vehicles; Piper Sandler Investment Group Inc., PSC Capital Management LLC, PSC Capital Management II LLC and PSC Capital Management III LLC, entities providing alternative asset management services; Piper Sandler Hedging Services, LLC, an entity that assists clients with hedging strategies; Piper Sandler Financial Products Inc. and Piper Sandler Financial Products II Inc., entities that facilitate derivative transactions; and other immaterial subsidiaries.

Piper Sandler Companies and its subsidiaries (collectively, the "Company") operate in one reporting segment providing investment banking services and institutional sales, trading and research services. Investment banking services include financial advisory services, management of and participation in underwritings, and municipal financing activities. Revenues are generated through the receipt of advisory and financing fees. Institutional sales, trading and research services focus on the trading of equity and fixed income products with institutions, corporations, government and non-profit entities. Revenues are generated through commissions and sales credits earned on equity and fixed income institutional sales activities, net interest revenues on trading securities held in inventory, profits and losses from trading these securities, and fees for research services and corporate access offerings. Also, the Company has created alternative asset management funds in merchant banking and healthcare in order to invest firm capital and to manage capital from outside investors. The Company records gains and losses from investments in these funds and receives management and performance fees.

The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC"). Pursuant to this guidance, certain information and disclosures have been omitted that are included within the complete annual financial statements. Except as disclosed herein, there have been no material changes in the information reported in the financial statements and related disclosures in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

The consolidated financial statements include the accounts of Piper Sandler Companies, its wholly owned subsidiaries, and all 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 Sandler Companies. Noncontrolling interests include the minority equity holders' proportionate share of the equity in the Company's alternative asset management funds. All material intercompany balances have been eliminated.

Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates and assumptions are based on the best information available, actual results could differ from those estimates.

NOTE 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2023 for a full description of the Company's significant accounting policies.

NOTE 3 | RECENT ACCOUNTING PRONOUNCEMENTS

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact of ASU 2023-07 on its financial statement disclosures.

In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"). This guidance enhances the annual income tax disclosure requirements by requiring disaggregated information related to the effective tax rate reconciliation and income taxes paid, as well as other disclosure requirements. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact of ASU 2023-09 on its financial statement disclosures.

NOTE 4 | RECEIVABLES FROM AND PAYABLES TO BROKERS, DEALERS AND CLEARING ORGANIZATIONS

Under the Company's fully disclosed clearing agreement, all of its securities inventories with the exception of convertible securities, and all of its customer activities are held by or cleared through Pershing LLC ("Pershing"). The Company has established an arrangement to obtain financing from Pershing related to the majority of its trading activities. The Company also has a clearing arrangement with bank financing related to its convertible securities inventories. Financing under these arrangements is secured primarily by securities, and collateral limitations could reduce the amount of funding available under these arrangements. The funding is at their discretion and could be denied. The Company's clearing arrangement activities are recorded net of trading activity. The Company's fully disclosed clearing agreement includes a covenant requiring Piper Sandler to maintain excess net capital of $120 million.

NOTE 5 | FAIR VALUE OF FINANCIAL INSTRUMENTS

Based on the nature of the Company's business and its role as a "dealer" in the securities industry or as a manager of alternative asset management funds, the fair values of its financial instruments are determined internally. The Company's processes are designed to ensure that the fair values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, unobservable inputs are developed based on an evaluation of all relevant empirical market data, including prices evidenced by market transactions, interest rates, credit spreads, volatilities and correlations and other security-specific information. Valuation adjustments related to illiquidity or counterparty credit risk are also considered. In estimating fair value, the Company may utilize information provided by third-party pricing vendors to corroborate internally-developed fair value estimates.

The Company employs specific control processes to determine the reasonableness of the fair value of its financial instruments. The Company's processes are designed to ensure that the internally-estimated fair values are accurately recorded and that the data inputs and the valuation techniques used are appropriate, consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. Individuals outside of the trading departments perform independent pricing verification reviews as of each reporting date. The Company has established parameters which set forth when the fair value of securities is independently verified. The selection parameters are generally based upon the type of security, the level of estimation risk of a security, the materiality of the security to the Company's consolidated financial statements, changes in fair value from period to period, and other specific facts and circumstances of the Company's securities portfolio. In evaluating the initial internally-estimated fair values made by the Company's traders, the nature and complexity of securities involved (e.g., term, coupon, collateral, and other key drivers of value), level of market activity for securities, and availability of market data are considered. The independent price verification procedures include, but are not limited to, analysis of trade data (both internal and external where available), corroboration to the valuation of positions with similar characteristics, risks and components, or comparison to an alternative pricing source, such as a discounted cash flow model. The Company's valuation committees, comprised of members of senior management and risk management, provide oversight and overall responsibility for the internal control processes and procedures related to fair value measurements.

The following is a description of the valuation techniques used to measure fair value.

Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value and classified as Level I.

The Company records financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased at fair value on the consolidated statements of financial condition with unrealized gains and losses reflected on the consolidated statements of operations.

Exchange traded equity securities are valued based on quoted prices from the exchange for identical assets or liabilities as of the period-end date. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level I. Non-exchange traded equity securities are measured primarily using broker quotations, prices observed for recently executed market transactions and internally-developed fair value estimates based on observable inputs and are categorized within Level II of the fair value hierarchy.

Convertible securities are valued based on observable trades, when available, and therefore are generally categorized as Level II.

Fixed income securities include corporate bonds which are valued based on recently executed market transactions of comparable size, internally-developed fair value estimates based on observable inputs, or broker quotations. Accordingly, these corporate bonds are categorized as Level II.

Taxable municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II.

Tax-exempt municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II. Certain illiquid tax-exempt municipal securities are valued using market data for comparable securities (e.g., maturity and sector) and management judgment to infer an appropriate current yield or other model-based valuation techniques deemed appropriate by management based on the specific nature of the individual security and therefore are categorized as Level III.

Short-term municipal securities include variable rate demand notes and other short-term municipal securities. Variable rate demand notes and other short-term municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II.

Asset-backed securities are valued using recently executed observable trades, when available, and therefore are generally categorized as Level II. Certain asset-backed securities are valued using models where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data. Accordingly, these asset-backed securities are categorized as Level II.

U.S. government agency securities include agency debt bonds and mortgage bonds. Agency debt bonds are valued by using either direct price quotes or price quotes for comparable bond securities and are categorized as Level II. Mortgage bonds include bonds secured by mortgages, mortgage pass-through securities, agency collateralized mortgage-obligation ("CMO") securities and agency interest-only securities. Mortgage pass-through securities, CMO securities and interest-only securities are valued using recently executed observable trades or other observable inputs, such as prepayment speeds and therefore are generally categorized as Level II. Mortgage bonds are valued using observable market inputs, such as market yields on spreads over U.S. treasury securities, or models based upon prepayment expectations. These securities are categorized as Level II.

U.S. government securities include highly liquid U.S. treasury securities which are generally valued using quoted market prices and therefore are categorized as Level I. The Company does not transact in securities of countries other than the U.S. government.

Derivative contracts include interest rate swaps, interest rate locks, and U.S. treasury bond futures. These instruments derive their value from underlying assets, reference rates, indices or a combination of these factors. The majority of the Company's interest rate derivative contracts, including both interest rate swaps and interest rate locks, are valued using market standard pricing models based on the net present value of estimated future cash flows. The valuation models used do not involve material subjectivity as the methodologies do not entail significant judgment and the pricing inputs are market observable, including contractual terms, yield curves and measures of volatility. These instruments are classified as Level II within the fair value hierarchy. Certain interest rate locks transact in less active markets and are valued using valuation models that include the previously mentioned observable inputs and certain unobservable inputs that require significant judgment, such as the premium over the Municipal Market Data ("MMD") curve. These instruments are classified as Level III.

The Company's investments valued at fair value include equity investments in private companies and mutual funds held by a grantor trust for the Company's nonqualified deferred compensation plan. Investments in private companies are valued based on an assessment of each underlying security, considering rounds of financing, the financial condition and operating results of the private company, third-party transactions and market-based information, including comparable company transactions, trading multiples (e.g., multiples of revenue and earnings before interest, taxes, depreciation and amortization ("EBITDA")), discounted cash flow analyses and changes in market outlook, among other factors. These securities are categorized based on the lowest level of input that is significant to the fair value measurement and therefore are categorized as Level II or Level III. Certain underlying securities, as well as investments in mutual funds, are valued based on quoted prices from the exchange for identical assets as of the period-end date. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level I. See Note 8 and Note 14 to our consolidated financial statements for additional information about the Company's nonqualified deferred compensation plan.

The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in FASB Accounting Standards Codification Topic 820, "Fair Value Measurement" ("ASC 820") as of March 31, 2024:

(1)Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties.

(2)Includes noncontrolling interests of $234.2 million attributable to unrelated third-party ownership in consolidated alternative asset management funds.

The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2023:

(1)Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties.

(2)Includes noncontrolling interests of $211.1 million attributable to unrelated third-party ownership in consolidated alternative asset management funds.

The carrying values of the Company's cash, receivables and payables either from or to brokers, dealers and clearing organizations, and short-term financings approximate fair value due to either their liquid or short-term nature.

The Company's Level III assets were $220.7 million (including noncontrolling interests of $170.9 million) and $233.0 million (including noncontrolling interests of $177.0 million), or 28.0 percent and 21.9 percent of financial instruments measured at fair value at March 31, 2024 and December 31, 2023, respectively. There were $13.2 million and $14.7 million of transfers of financial assets out of Level III for the three months ended March 31, 2024 and 2023, respectively, primarily due to unobservable inputs becoming observable. At March 31, 2024, the Company's Level I investments at fair value included $50.2 million of equity securities subject to contractual sale restrictions, of which $5.2 million will expire in the second quarter of 2024 and $8.6 million will expire in the third quarter of 2024. The sales restrictions on the remaining equity securities are in effect during certain trading windows so long as the securities are owned.

The following table summarizes the changes in fair value associated with Level III financial instruments held at the beginning or end of the periods presented: