EQUITY

9 Months Ended

Sep. 30, 2015

EQUITY

EQUITY

NOTE 5: EQUITY

Share Repurchases

We have a policy that requires us to repurchase shares of our common stock to satisfy employee tax withholding obligations upon the vesting of restricted stock awards or the exercise of stock options and, at the participant’s election, shares of common stock surrendered to the Company for satisfaction of the exercise price of stock options.

During the nine months ended September 30, 2015 and 2014 we repurchased 227,700 shares of common stock for $4.2 million and 276,032 shares of common stock for $4.0 million, respectively. Additionally, during the nine months ended September 30, 2015, 1,889 shares of common stock were surrendered to us to satisfy the exercise price of stock options.

Dividends

On September 9, 2015, the Board of Directors (the “Board”) of Epiq declared a cash dividend of $0.09 per outstanding share of common stock payable on November 16, 2015 to shareholders of record as of the close of business on October 15, 2015.  The aggregate amount of the dividends declared for the three and nine months ended September 30, 2015 was $3.4 million and $10.1 million, respectively.

Shareholder Rights Agreement and Rights Dividend

On September 18, 2014, we entered into a Rights Agreement (the “Rights Agreement”) pursuant to which the Board declared a dividend of one preferred stock purchase right (a “Right”) for each outstanding share of common stock of the Company. The dividend was paid on September 29, 2014, to holders of record as of the close of business on that date. On July 7, 2015, all Rights issued under the Rights Agreement expired and are no longer outstanding.

Accumulated Other Comprehensive Loss, Net

The following table summarizes the components of Accumulated other comprehensive loss (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Foreign currency translation adjustments
Balance at beginning of period	$	(2,979	)	$	514		$	(2,952	)	$	(541	)
Other comprehensive loss, net of tax	(1,483		)	(1,775		)	(1,510		)	(720		)
Balance at end of period	$	(4,462	)	$	(1,261	)	$	(4,462	)	$	(1,261	)
Unrealized loss on cash flow hedges
Balance at beginning of period	$	(1,958	)	$	(810	)	$	(1,410	)	$	—
Other comprehensive income (loss) before reclassification adjustment, net of tax	(1,537		)	73			(2,085		)	(737		)
Reclassification adjustments, net of tax	27			—			27			—
Balance at end of period	$	(3,468	)	$	(737	)	$	(3,468	)	$	(737	)