Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2020

Stockholders' Equity

Components of basic and diluted earnings per share

The components of basic and diluted earnings per share were as follows:

	Three months ended			Nine months ended
	September 30,			September 30,
	2020		2019	2020		2019
	(in thousands, except per share amounts)
Net income attributable to Waddell & Reed Financial, Inc.	$	30,523	33,054	$	77,333	99,056
Weighted average shares outstanding, basic and diluted		64,240	72,387		65,795	74,446
Earnings per share, basic and diluted	$	0.48	0.46	$	1.18	1.33

Summary of accumulated other comprehensive income (loss) activity

The following tables summarize accumulated other comprehensive income activity for the three and nine months ended September 30, 2020 and September 30, 2019.

	For the three months ended September 30,
				Total
	Unrealized		Postretirement	accumulated
	gains (losses) on		benefits	other
	AFS investment		unrealized	comprehensive
	securities		gains (losses)	income (loss)
	(in thousands)
Balance at June 30, 2020	$	3,874	613	4,487
Other comprehensive loss before reclassification		(371)	—	(371)
Amount reclassified from accumulated other comprehensive income		(140)	(51)	(191)
Net current period other comprehensive loss		(511)	(51)	(562)
Balance at September 30, 2020	$	3,363	562	3,925
Balance at June 30, 2019	$	2,142	939	3,081
Other comprehensive income before reclassification		379	—	379
Amount reclassified from accumulated other comprehensive income		(83)	(94)	(177)
Net current period other comprehensive income (loss)		296	(94)	202
Balance at September 30, 2019	$	2,438	845	3,283

	For the nine months ended September 30,
				Total
	Unrealized		Postretirement	accumulated
	gains (losses)		benefits	other
	on investment		unrealized	comprehensive
	securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2019	$	2,521	713	3,234
Other comprehensive income before reclassification		1,344	—	1,344
Amount reclassified from accumulated other comprehensive income		(502)	(151)	(653)
Net current period other comprehensive income (loss)		842	(151)	691
Balance at September 30, 2020	$	3,363	562	3,925
Balance at December 31, 2018	$	(797)	1,128	331
Other comprehensive income before reclassification		3,413	—	3,413
Amount reclassified from accumulated other comprehensive income		(178)	(283)	(461)
Net current period other comprehensive income (loss)		3,235	(283)	2,952
Balance at September 30, 2019	$	2,438	845	3,283

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.

			Tax
For the three months ended September 30, 2020	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	$	184	(44)	140	Investment and other income
Amortization of postretirement benefits		67	(16)	51	Compensation and benefits
Total	$	251	(60)	191

			Tax
For the three months ended September 30, 2019	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	$	109	(26)	83	Investment and other income
Amortization of postretirement benefits	$	124	(30)	94	Compensation and benefits
Total	$	233	(56)	177

			Tax
For the nine months ended September 30, 2020	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	$	661	(159)	502	Investment and other income
Amortization of postretirement benefits		201	(50)	151	Compensation and benefits
Total	$	862	(209)	653

			Tax
For the nine months ended September 30, 2019	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		371	(88)	283	Compensation and benefits
Total	$	605	(144)	461