Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2016

Stockholders' Equity

Components of basic and diluted earnings per share

	Three months ended			Nine months ended
	September 30,			September 30,
	2016		2015	2016		2015
	(in thousands, except per share amounts)
Net income attributable to Waddell & Reed Financial, Inc.	$	53,827	48,058		124,490	182,616
Weighted average shares outstanding, basic and diluted		82,834	83,469		82,629	83,709
Earnings per share, basic and diluted	$	0.65	0.58		1.51	2.18

Summary of other comprehensive income (loss) activity

			Change in
			valuation
			allowance for
			unrealized		Pension and	Total
	Unrealized		gains		postretirement	accumulated
	gains (losses)		(losses) on		benefits	other
	on investment		investment		unrealized	comprehensive
Three months ended September 30, 2016	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at June 30, 2016	$	(2,498)		(2,511)	(52,499)	(57,508)
Other comprehensive income (loss) before reclassification		1,660		1,022	(1,222)	1,460
Amount reclassified from accumulated other comprehensive income (loss)		(1,871)		(1,155)	1,055	(1,971)
Net current period other comprehensive loss		(211)		(133)	(167)	(511)
Balance at September 30, 2016	$	(2,709)	$	(2,644)	(52,666)	(58,019)

			Change in
			valuation
			allowance for
			unrealized		Pension and	Total
	Unrealized		gains		postretirement	accumulated
	gains (losses)		(losses) on		benefits	other
	on investment		investment		unrealized	comprehensive
Three months ended September 30, 2015	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at June 30, 2015	$	(2,713)		(2,649)	(46,369)	(51,731)
Other comprehensive loss before reclassification		(2,165)		(1,262)	—	(3,427)
Amount reclassified from accumulated other comprehensive income		1,330		776	888	2,994
Net current period other comprehensive income (loss)		(835)		(486)	888	(433)
Balance at September 30, 2015	$	(3,548)	$	(3,135)	(45,481)	(52,164)

			Change in
			valuation
			allowance for
			unrealized		Pension and	Total
	Unrealized		gains		postretirement	accumulated
	gains (losses)		(losses) on		benefits	other
	on investment		investment		unrealized	comprehensive
Nine months ended September 30, 2016	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2015	$	(3,729)		(3,240)	(54,536)	(61,505)
Other comprehensive income (loss) before reclassification		3,207		1,938	(1,222)	3,923
Amount reclassified from accumulated other comprehensive income (loss)		(2,187)		(1,342)	3,092	(437)
Net current period other comprehensive income		1,020		596	1,870	3,486
Balance at September 30, 2016	$	(2,709)	$	(2,644)	(52,666)	(58,019)

			Change in
			valuation
			allowance for
			unrealized		Pension and	Total
	Unrealized		gains		postretirement	accumulated
	(gains) losses		(losses) on		benefits	other
	on investment		investment		unrealized	comprehensive
Nine months ended September 30, 2015	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2014	$	(727)		(1,471)	(48,245)	(50,443)
Other comprehensive loss before reclassification		(2,387)		(1,420)	—	(3,807)
Amount reclassified from accumulated other comprehensive income (loss)		(434)		(244)	2,764	2,086
Net current period other comprehensive income (loss)		(2,821)		(1,664)	2,764	(1,721)
Balance at September 30, 2015	$	(3,548)	$	(3,135)	(45,481)	(52,164)

Summary of reclassifications from accumulated other comprehensive income (loss) and included in net income

		For the three months ended September 30, 2016
			Tax
			(expense)
	Pre-tax		benefit	Net of tax	Statement of income line item
	(in thousands)
Reclassifications included in net income:
Sponsored funds investment gains	$	2,980	(1,109)	1,871	Investment and other income (loss)
Valuation allowance		—	1,155	1,155	Provision for income taxes
Amortization of pension and postretirement benefits		(1,611)	556	(1,055)	Underwriting and distribution expense and Compensation and related costs
Total	$	1,369	602	1,971

	For the three months ended September 30, 2015
			Tax
			(expense)
	Pre-tax		benefit	Net of tax	Statement of income line item
	(in thousands)
Reclassifications included in net income:
Realized loss on sale of sponsored investment securities	$	(2,119)	789	(1,330)	Investment and other income (loss)
Valuation allowance		—	(776)	(776)	Provision for income taxes
Amortization of pension and postretirement benefits		(1,414)	526	(888)	Underwriting and distribution expense and Compensation and related costs
Total	$	(3,533)	539	(2,994)

		For the nine months ended September 30, 2016
			Tax
			(expense)
	Pre-tax		benefit	Net of tax	Statement of income line item
	(in thousands)
Reclassifications included in net income:
Sponsored funds investment gains	$	3,483	(1,296)	2,187	Investment and other income (loss)
Valuation allowance		—	1,342	1,342	Provision for income taxes
Amortization of pension and postretirement benefits		(4,833)	1,741	(3,092)	Underwriting and distribution expense and Compensation and related costs
Total	$	(1,350)	1,787	437

	For the nine months ended September 30, 2015
			Tax
			(expense)
	Pre-tax		benefit	Net of tax	Statement of income line item
	(in thousands)
Reclassifications included in net income:
Realized gain on sale of sponsored investment securities	$	685	(251)	434	Investment and other income (loss)
Valuation allowance		—	244	244	Provision for income taxes
Amortization of pension and postretirement benefits		(4,241)	1,477	(2,764)	Underwriting and distribution expense and Compensation and related costs
Total	$	(3,556)	1,470	(2,086)