Three of our subsidiaries, Waddell & Reed, Inc. ("W&R"), Legend Equities Corporation ("LEC"), and Ivy Funds Distributor, Inc. ("IFDI") are registered broker/dealers and members of the Financial Industry Regulatory Authority. Broker/dealers are subject to the SEC's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15.0 to 1.0. The primary difference between net capital and stockholders' equity is the non-allowable assets that are excluded from net capital.

A broker/dealer may elect not to be subject to the Aggregate Indebtedness Standard of paragraph (a)(1)(i) of Rule 15c3-1, in which case net capital must exceed the greater of $250 thousand or 2% of aggregate debit items computed in accordance with the Formula for Determination of Reserve Requirements for broker/dealers. W&R made this election and thus is not subject to the aggregate indebtedness ratio as of December 31, 2011 or 2010.

Net capital and aggregated indebtedness information for our broker/dealer subsidiaries is presented in the following table as of December 31, 2011 and 2010:

	(in thousands)

	2011						2010
	W&R		LEC		IFDI		W&R		LEC		IFDI
Net capital	$	34,524		1,654		45,579		39,563		2,547		38,663
Required capital		250		251		2,353		250		185		2,425

Excess of required capital	$	34,274		1,403		43,226		39,313		2,362		36,238

Ratio of aggregate indebtedness to net capital		Not applicable		2.28 to 1.0		0.77 to 1.0		Not applicable		1.09 to 1.0		0.94 to 1.0