Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Stockholders' Equity

Components of basic and diluted earnings per share

For the years ended December 31, 2018, 2017 and 2016, earnings per share were computed as follows:

	2018		2017	2016
Net income attributable to Waddell & Reed Financial, Inc.	$	183,588	141,279	156,695
Weighted average shares outstanding, basic and diluted		80,468	83,573	82,668
Earnings per share, basic and diluted	$	2.28	1.69	1.90

Summary of other comprehensive income (loss) activity

The following tables summarize other comprehensive income (loss) activity for the years ended December 31, 2018 and 2017.

				Total
	Unrealized		Postretirement	accumulated
	gains (losses) on		benefits	other
	AFS investment		unrealized	comprehensive
Year ended December 31, 2018	securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2017	$	145	379	524
Amount reclassified to retained earnings for ASUs adopted in 2018		(955)	107	(848)
Other comprehensive (loss) income before reclassification		(360)	736	376
Amount reclassified from accumulated other comprehensive income (loss)		373	(94)	279
Net current period other comprehensive (loss) income		(942)	749	(193)
Balance at December 31, 2018	$	(797)	1,128	331

			Change in
			valuation
			allowance for
			unrealized			Total
	Unrealized		gains		Postretirement	accumulated
	gains (losses)		(losses) on		benefits	other
	on investment		investment		unrealized	comprehensive
Year ended December 31, 2017	securities		securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2016	$	(3,972)		(3,388)	603	(6,757)
Other comprehensive income (loss) before reclassification		4,039		3,743	(106)	7,676
Amount reclassified from accumulated other comprehensive income (loss)		78		(355)	(118)	(395)
Net current period other comprehensive income (loss)		4,117		3,388	(224)	7,281
Balance at December 31, 2017	$	145		—	379	524

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

Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow:

		For the year ended December 31, 2018
			Tax
			(expense)		Statement of income
	Pre-tax		benefit	Net of tax	line item or retained earnings
	(in thousands)
Reclassifications included in net income or retained earnings for ASUs adopted in 2018:
Sponsored funds investment gains	$	1,295	(340)	955	Retained earnings
Losses on available for sale debt securities	$	(489)	116	(373)	Investment and other income (loss)
Amortization of postretirement benefits		122	(135)	(13)	Compensation and benefits and retained earnings
Total	$	928	(359)	569

	For the year ended December 31, 2017
			Tax
			benefit
	Pre-tax		(expense)	Net of tax	Statement of income line item
	(in thousands)
Reclassifications included in net income:
Sponsored funds investment losses	$	(124)	46	(78)	Investment and other income (loss)
Valuation allowance		—	355	355	Provision for income taxes
Amortization of postretirement benefits		184	(66)	118	Compensation and benefits
Total	$	60	335	395