Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2018

Stockholders' Equity

Components of basic and diluted earnings per share

	Three months ended			Nine months ended
	September 30,			September 30,
	2018		2017	2018		2017
	(in thousands, except per share amounts)
Net income attributable to Waddell & Reed Financial, Inc.	$	46,305	53,582	$	137,120	111,515
Weighted average shares outstanding, basic and diluted		79,595	83,476		81,372	83,719
Earnings per share, basic and diluted	$	0.58	0.64	$	1.69	1.33

Summary of other comprehensive income (loss) activity

				Total
	Unrealized		Postretirement	accumulated
	gains (losses)		benefits	other
	on investment		unrealized	comprehensive
Three months ended September 30, 2018	securities		gains (losses)	income (loss)
	(in thousands)
Balance at June 30, 2018	$	(1,772)	440	(1,332)
Other comprehensive income before reclassification		218	—	218
Amount reclassified from accumulated other comprehensive loss		44	(24)	20
Net current period other comprehensive income (loss)		262	(24)	238
Balance at September 30, 2018	$	(1,510)	416	(1,094)

			Change in
			valuation
			allowance for
			unrealized			Total
	Unrealized		gains		Postretirement	accumulated
	gains (losses)		(losses) on		benefits	other
	on investment		investment		unrealized	comprehensive
Three months ended September 30, 2017	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at June 30, 2017	$	(1,986)		(540)	546	(1,980)
Other comprehensive income before reclassification		1,968		800	—	2,768
Amount reclassified from accumulated other comprehensive loss		(438)		(260)	(30)	(728)
Net current period other comprehensive income (loss)		1,530		540	(30)	2,040
Balance at September 30, 2017	$	(456)		—	516	60

				Total
	Unrealized		Postretirement	accumulated
	gains (losses)		benefits	other
	on investment		unrealized	comprehensive
Nine months ended September 30, 2018	securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2017	$	145	379	524
Amount reclassified to retained earnings for recently adopted ASUs		(955)	107	(848)
Other comprehensive loss before reclassification		(744)	—	(744)
Amount reclassified from accumulated other comprehensive loss		44	(70)	(26)
Net current period other comprehensive (loss) income		(1,655)	37	(1,618)
Balance at September 30, 2018	$	(1,510)	416	(1,094)

			Change in
			valuation
			allowance for
			unrealized			Total
	Unrealized		gains		Postretirement	accumulated
	(gains) losses		(losses) on		benefits	other
	on investment		investment		unrealized	comprehensive
Nine months ended September 30, 2017	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2016	$	(3,972)		(3,388)	603	(6,757)
Other comprehensive income before reclassification		4,113		3,743	—	7,856
Amount reclassified from accumulated other comprehensive loss		(597)		(355)	(87)	(1,039)
Net current period other comprehensive income (loss)		3,516		3,388	(87)	6,817
Balance at September 30, 2017	$	(456)		—	516	60

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

		For the three months ended September 30, 2018
			Tax
			(expense)		Statement of income
	Pre-tax		benefit	Net of tax	line item or retained earnings
	(in thousands)
Reclassifications included in net income:
Losses on available for sale debt securities	$	(58)	14	(44)	Investment and other income (loss)
Amortization of postretirement benefits		31	(7)	24	Compensation and benefits and retained earnings
Total	$	(27)	7	(20)

	For the three months ended September 30, 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	$	698	(260)	438	Investment and other income (loss)
Valuation allowance		—	260	260	Provision for income taxes
Amortization of postretirement benefits		46	(16)	30	Compensation and benefits and retained earnings
Total	$	744	(16)	728

		For the nine months ended September 30, 2018
			Tax
	Pre-tax		expense	Net of tax	Statement of income line item
	(in thousands)
Reclassifications included in net income or retained earnings for ASUs adopted in 2018:
Sponsored funds investment gains	$	1,295	(340)	955	Investment and other income (loss)
Losses on available for sale debt securities		(58)	14	(44)	Investment and other income (loss)
Amortization of postretirement benefits		92	(129)	(37)	Compensation and benefits and retained earnings
Total	$	1,329	(455)	874

	For the nine months ended September 30, 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	$	952	(355)	597	Investment and other income (loss)
Valuation allowance		—	355	355	Provision for income taxes
Amortization of postretirement benefits		138	(51)	87	Compensation and benefits and retained earnings
Total	$	1,090	(51)	1,039