Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2020

Stockholders' Equity

Components of basic and diluted earnings per share

For the years ended December 31, 2020, 2019 and 2018, earnings per share were computed as follows:

	2020		2019	2018
	(in thousands, except for per share amounts)
Net income attributable to Waddell & Reed Financial, Inc.	$	70,457	114,992	183,588
Weighted average shares outstanding, basic and diluted		64,974	73,299	80,468
Earnings per share, basic and diluted	$	1.08	1.57	2.28

Summary of accumulated other comprehensive income activity

The following tables summarize other comprehensive income activity for the years ended December 31, 2020 and 2019.

				Total
	Unrealized		Postretirement	accumulated
	gains (losses) on		benefits	other
	AFS investment		unrealized	comprehensive
Year ended December 31, 2020	securities		gains (losses)	income (loss)
	(in thousands)
Balance at December 31, 2019	$	2,521	713	3,234
Other comprehensive income (loss) before reclassification		823	(309)	514
Amount reclassified from accumulated other comprehensive income		(648)	(203)	(851)
Net current period other comprehensive income (loss)		175	(512)	(337)
Balance at December 31, 2020	$	2,696	201	2,897

				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

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

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

		For the year ended December 31, 2020
			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	$	853	(205)	648	Investment and other income
Amortization of postretirement benefits		269	(66)	203	Compensation and benefits
Total	$	1,122	(271)	851

	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