Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2017

Stockholders' Equity

Components of basic and diluted earnings per share

	Three months ended
	March 31,
	2017		2016
Net income attributable to Waddell & Reed Financial, Inc.	$	33,056	36,968
Weighted average shares outstanding, basic and diluted		84,077	82,104
Earnings per share, basic and diluted	$	0.39	0.45

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 March 31, 2017	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2016	$	(3,972)		(3,388)	(45,969)	(53,329)
Other comprehensive income before reclassification		1,423		2,324	—	3,747
Amount reclassified from accumulated other comprehensive income (loss)		(92)		(56)	786	638
Net current period other comprehensive income		1,331		2,268	786	4,385
Balance at March 31, 2017	$	(2,641)	$	(1,120)	(45,183)	(48,944)

			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 March 31, 2016	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2015	$	(3,729)		(3,240)	(54,536)	(61,505)
Other comprehensive loss before reclassification		(4)		(1)	—	(5)
Amount reclassified from accumulated other comprehensive income		51		30	1,077	1,158
Net current period other comprehensive income		47		29	1,077	1,153
Balance at March 31, 2016	$	(3,682)	$	(3,211)	(53,459)	(60,352)

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

		For the three months ended March 31, 2017
			Tax
			(expense)
	Pre-tax		benefit	Net of tax	Statement of income line item
	(in thousands)
Reclassifications included in net income:
Sponsored funds investment gains	$	148	(56)	92	Investment and other income (loss)
Valuation allowance		—	56	56	Provision for income taxes
Amortization and settlement of pension and postretirement benefits		(1,251)	465	(786)	Underwriting and distribution expense and Compensation and related costs
Total	$	(1,103)	465	(638)

	For the three months ended March 31, 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	$	(81)	30	(51)	Investment and other income (loss)
Valuation allowance		—	(30)	(30)	Provision for income taxes
Amortization of pension and postretirement benefits		(1,696)	619	(1,077)	Underwriting and distribution expense and Compensation and related costs
Total	$	(1,777)	619	(1,158)