Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Stockholders' Equity

Components of basic and diluted earnings per share

For the years ended December 31, 2019, 2018 and 2017, earnings per share were computed as follows:

	2019		2018	2017
	(in thousands, except for per share amounts)
Net income attributable to Waddell & Reed Financial, Inc.	$	114,992	183,588	141,279
Weighted average shares outstanding, basic and diluted		73,299	80,468	83,573
Earnings per share, basic and diluted	$	1.57	2.28	1.69

Summary of accumulated other comprehensive income (loss) activity

The following tables summarize other comprehensive income (loss) activity for the years ended December 31, 2019 and 2018.

				Total
	Unrealized		Postretirement	accumulated
	gains (losses) on		benefits	other
	AFS investment		unrealized	comprehensive
Year ended December 31, 2019	securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2018	$	(797)	1,128	331
Other comprehensive income (loss) before reclassification		3,496	(36)	3,460
Amount reclassified from accumulated other comprehensive income		(178)	(379)	(557)
Net current period other comprehensive income (loss)		3,318	(415)	2,903
Balance at December 31, 2019	$	2,521	713	3,234

				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

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, 2019
			Tax
	Pre-tax		expense	Net of tax	Statement of income line item
	(in thousands)
Reclassifications included in net income:
Gains on available for sale debt securities	$	234	(56)	178	Investment and other income
Amortization of postretirement benefits		495	(116)	379	Compensation and benefits
Total	$	729	(172)	557

	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