Waddell & Reed Financial (WDR) 10-Q 1 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 24, 2013
Document and Entity Information	'	'
Entity Registrant Name	'WADDELL & REED FINANCIAL INC	'
Entity Central Index Key	'0001052100	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	85,416,415
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets:	'	'
Cash and cash equivalents	$426,643	$328,027
Cash and cash equivalents - restricted	101,919	92,980
Investment securities	196,100	176,142
Receivables:	'	'
Funds and separate accounts	33,833	33,886
Customers and other	110,572	136,073
Deferred income taxes	5,599	7,978
Income taxes receivable	'	5,577
Prepaid expenses and other current assets	9,819	9,080
Assets of discontinued operations held for sale	'	15,150
Total current assets	884,485	804,893
Property and equipment, net	70,349	69,328
Deferred sales commissions, net	76,250	69,355
Goodwill and identifiable intangible assets	161,969	161,969
Deferred income taxes	25,876	17,797
Other non-current assets	13,181	11,491
Assets of discontinued operations held for sale	'	18,010
Total assets	1,232,110	1,152,843
Liabilities:	'	'
Accounts payable	16,345	23,795
Payable to investment companies for securities	142,361	152,749
Payable to third party brokers	57,353	46,169
Payable to customers	27,474	45,182
Accrued compensation	64,211	46,347
Other current liabilities	41,802	43,504
Income taxes payable	2,077	'
Liabilities of discontinued operations held for sale	'	7,587
Total current liabilities	351,623	365,333
Long-term debt	190,000	190,000
Accrued pension and postretirement costs	51,992	62,458
Other non-current liabilities	26,141	24,531
Liabilities of discontinued operations held for sale	'	281
Total liabilities	619,756	642,603
Commitments and contingencies	'	'
Stockholders' equity:	'	'
Preferred stock-$1.00 par value: 5,000 shares authorized; none issued	'	'
Class A Common stock-$0.01 par value: 250,000 shares authorized; 99,701 shares issued; 85,417 shares outstanding (85,679 at December 31, 2012)	997	997
Additional paid-in capital	251,284	230,021
Retained earnings	800,634	698,423
Cost of 14,284 common shares in treasury (14,022 at December 31, 2012)	-400,026	-372,404
Accumulated other comprehensive loss	-40,535	-46,797
Total stockholders' equity	612,354	510,240
Total liabilities and stockholders' equity	$1,232,110	$1,152,843

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Per Share data, unless otherwise specified
Consolidated Balance Sheets	'	'
Preferred stock-par value (in dollars per share)	$1	$1
Preferred stock-shares authorized	5,000	5,000
Preferred stock-shares issued	0	0
Class A Common stock-par value (in dollars per share)	$0.01	$0.01
Class A Common stock-shares authorized	250,000	250,000
Class A Common stock-shares issued	99,701	99,701
Class A Common stock-shares outstanding	85,417	85,679
Common shares in treasury	14,284	14,022

Consolidated_Statements_of_Inc

Consolidated Statements of Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
Investment management fees	$165,559	$138,364	$470,223	$407,477
Underwriting and distribution fees	146,863	122,819	423,879	367,659
Shareholder service fees	34,667	32,182	101,248	95,786
Total	347,089	293,365	995,350	870,922
Operating expenses:	'	'	'	'
Underwriting and distribution	169,046	147,408	495,461	439,961
Compensation and related costs (including share-based compensation of $14,186, $12,299, $39,192 and $36,217, respectively)	49,472	42,343	145,003	128,432
General and administrative	20,462	15,774	63,608	57,172
Subadvisory fees	1,667	4,921	10,442	16,400
Depreciation	3,172	3,188	9,621	9,876
Total	243,819	213,634	724,135	651,841
Operating income	103,270	79,731	271,215	219,081
Investment and other income	5,212	2,632	10,591	7,906
Interest expense	-2,832	-2,826	-8,544	-8,477
Income from continuing operations before provision for income taxes	105,650	79,537	273,262	218,510
Provision for income taxes	37,231	27,421	99,023	78,332
Income from continuing operations	68,419	52,116	174,239	140,178
Loss from discontinued operations net of tax expense of $0, $473, $0 and $1,278, respectively	'	-43,590	'	-42,547
Net income	$68,419	$8,526	$174,239	$97,631
Net income (loss) per share, basic and diluted:	'	'	'	'
Income from continuing operations (in dollars per share)	$0.80	$0.61	$2.03	$1.63
Loss from discontinued operations (in dollars per share)	'	($0.51)	'	($0.49)
Net income (in dollars per share)	$0.80	$0.10	$2.03	$1.14
Weighted average shares outstanding:	'	'	'	'
Basic (in shares)	85,603	85,753	85,688	85,817
Diluted (in shares)	85,603	85,755	85,689	85,819

Consolidated_Statements_of_Inc1

Consolidated Statements of Income (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements of Income	'	'	'	'
Compensation and related costs, share-based compensation	$14,186	$12,299	$39,192	$36,217
Loss from discontinued operations, tax expense	$0	$473	$0	$1,278

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements of Comprehensive Income	'	'	'	'
Net income	$68,419	$8,526	$174,239	$97,631
Other comprehensive income:	'	'	'	'
Unrealized appreciation of available for sale investment securities during the period, net of income tax expense of $12, $2, $3 and $1, respectively	4,633	2,399	4,008	4,741
Pension and postretirement benefits, net of income tax expense of $480, $481, $1,633 and $1,528, respectively	816	816	2,254	2,364
Comprehensive income	$73,868	$11,741	$180,501	$104,736

Consolidated_Statements_of_Com1

Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements of Comprehensive Income	'	'	'	'
Unrealized appreciation of available for sale investment securities during the period, income tax expense (benefit)	$12	$2	$3	$1
Pension and postretirement benefits, income tax expense	$480	$481	$1,633	$1,528

Consolidated_Statement_of_Stoc

Consolidated Statement of Stockholders' Equity (USD $)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
In Thousands, unless otherwise specified
Balance at Dec. 31, 2012	$510,240	$997	$230,021	$698,423	($372,404)	($46,797)
Balance (in shares) at Dec. 31, 2012	'	99,701	'	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'
Net income	174,239	'	'	174,239	'	'
Recognition of equity compensation	39,192	'	39,192	'	'	'
Net issuance/forfeiture of nonvested shares	'	'	-24,754	'	24,754	'
Dividends accrued, $0.84 per share	-72,028	'	'	-72,028	'	'
Exercise of stock options	135	'	-35	'	170	'
Excess tax benefits from share-based payment arrangements	6,860	'	6,860	'	'	'
Repurchase of common stock	-52,546	'	'	'	-52,546	'
Unrealized appreciation on available for sale investment securities	4,008	'	'	'	'	4,008
Pension and postretirement benefits	2,254	'	'	'	'	2,254
Balance at Sep. 30, 2013	$612,354	$997	$251,284	$800,634	($400,026)	($40,535)
Balance (in shares) at Sep. 30, 2013	'	99,701	'	'	'	'

Consolidated_Statement_of_Stoc1

Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $)	0 Months Ended	9 Months Ended
	Jul. 17, 2013	Sep. 30, 2013
Consolidated Statement of Stockholders' Equity	'	'
Dividends accrued, per share (in dollars per share)	$0.28	$0.84

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income	$174,239	$97,631
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Write-down of impaired assets	'	42,373
Depreciation and amortization	10,351	11,369
Amortization of deferred sales commissions	41,569	40,142
Share-based compensation	39,192	37,146
Excess tax benefits from share-based payment arrangements	-6,860	-3,298
Gain on sale of available for sale investment securities	-7,887	-3,163
Net purchases and sales or maturities of trading securities	-27,394	-37,806
Loss (gain) on trading securities	-2,862	330
Loss on sale and retirement of property and equipment	302	5,205
Capital gains and dividends reinvested	-50	'
Deferred income taxes	-7,335	-7,243
Changes in assets and liabilities:	'	'
Cash and cash equivalents - restricted	-8,939	-32,662
Other receivables	25,501	-44,204
Payable to investment companies for securities and payable to customers	-28,096	66,254
Receivables from funds and separate accounts	53	-7,975
Other assets	-2,429	1,550
Deferred sales commissions	-48,464	-41,494
Accounts payable and payable to third party brokers	3,734	6,415
Other liabilities	26,769	19,817
Net cash provided by operating activities	181,394	150,387
Cash flows from investing activities:	'	'
Purchases of available for sale investment securities	-137,828	-41,676
Proceeds from sales and maturities of available for sale investment securities	159,343	48,431
Additions to property and equipment	-10,944	-11,233
Disposition of companies	22,000	'
Net cash provided by (used in) investing activities	32,571	-4,478
Cash flows from financing activities:	'	'
Dividends paid	-72,101	-64,455
Repurchase of common stock	-52,546	-36,004
Exercise of stock options	135	'
Excess tax benefits from share-based payment arrangements	6,860	3,298
Net cash used in financing activities	-117,652	-97,161
Net increase in cash and cash equivalents	96,313	48,748
Cash and cash equivalents at beginning of period, including discontinued operations	330,330	327,083
Cash and cash equivalents at end of period	426,643	375,831
Less cash and cash equivalents of discontinued operations at end of period	'	2,754
Cash and cash equivalents of continuing operations at end of period	$426,643	$373,077

Description_of_Business_and_Si

Description of Business and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Description of Business and Significant Accounting Policies	'
Description of Business and Significant Accounting Policies	'
	1.              Description of Business and Significant Accounting Policies
	Waddell & Reed Financial, Inc. and Subsidiaries
	Waddell & Reed Financial, Inc. and subsidiaries (hereinafter referred to as the “Company,” “we,” “our” and “us”) derive revenues from investment management, investment product underwriting and distribution, and shareholder services administration provided to the Waddell & Reed Advisors Group of Mutual Funds (the “Advisors Funds”), Ivy Funds (the “Ivy Funds”), Ivy Funds Variable Insurance Portfolios (the “Ivy Funds VIP”) and InvestEd Portfolios (“InvestEd”) (collectively, the Advisors Funds, Ivy Funds, Ivy Funds VIP and InvestEd are referred to as the “Funds”), and institutional and separately managed accounts.  The Funds and the institutional and separately managed accounts operate under various rules and regulations set forth by the United States Securities and Exchange Commission (the “SEC”). Services to the Funds are provided under investment management agreements, underwriting agreements and shareholder servicing and accounting service agreements that set forth the fees to be charged for these services. The majority of these agreements are subject to annual review and approval by each Fund’s board of trustees. Our revenues are largely dependent on the total value and composition of assets under management.  Accordingly, fluctuations in financial markets and composition of assets under management can significantly impact revenues and results of operations.
	Basis of Presentation
	We have prepared the accompanying unaudited consolidated financial statements included herein pursuant to the rules and regulations of the SEC.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to enable a reasonable understanding of the information presented.  The information in this Quarterly Report on Form 10-Q should be read in conjunction with Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”).  Certain amounts in the prior years’ financial statements have been reclassified for consistent presentation.
	The accompanying unaudited consolidated financial statements are prepared consistently with the accounting policies described in Note 2 to the consolidated financial statements included in our 2012 Form 10-K, which include the following: use of estimates, cash and cash equivalents, disclosures about fair value of financial instruments, investment securities and investments in affiliated mutual funds, property and equipment, software developed for internal use, goodwill and identifiable intangible assets, deferred sales commissions, revenue recognition, advertising and promotion, share-based compensation and accounting for income taxes.
	Effective January 1, 2013, the Company adopted an amended accounting standard to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to present separately, for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. The adoption was effective prospectively and did not have any effect on the Company’s results of operations, financial position or liquidity.
	In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of only a normal and recurring nature) necessary to present fairly our financial position at September 30, 2013, the results of operations for the three and nine months ended September 30, 2013 and 2012, and cash flows for the nine months ended September 30, 2013 and 2012 in conformity with accounting principles generally accepted in the United States.
	During the third quarter of 2012, the Company committed to a plan to sell its Legend group of subsidiaries (“Legend”) and on October 29, 2012, the Company signed a definitive agreement to execute the transaction.  The sale closed effective January 1, 2013.  The operational results of Legend have been reclassified as discontinued operations in our unaudited consolidated financial statements for the three and nine months ended September 30, 2012 and as of December 31, 2012.  Unless otherwise stated, footnote references refer to continuing operations.

Cash_and_Cash_Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2013
Cash and Cash Equivalents	'
Cash and Cash Equivalents	'
	2.              Cash and Cash Equivalents
	Cash and cash equivalents include cash on hand and short-term investments.  We consider all highly liquid investments with maturities upon acquisition of 90 days or less to be cash equivalents.  Cash and cash equivalents — restricted represents cash held for the benefit of customers segregated in compliance with federal and other regulations.

Accounting_Pronouncements_Not_

Accounting Pronouncements Not Yet Adopted	9 Months Ended
	Sep. 30, 2013
Accounting Pronouncements Not Yet Adopted	'
Accounting Pronouncements Not Yet Adopted	'
	3.              Accounting Pronouncements Not Yet Adopted
	In July 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-06, “Other Topics (Topic 720): Fees Paid to the Federal Government by Health Insurers” (“ASU 2011-06”). This ASU was issued to address questions about how health insurers should recognize and classify in their income statements fees mandated by the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act (collectively, the “Acts”).  The Acts impose an annual fee on health insurers for each calendar year beginning on or after January 1, 2014.  A health insurer’s portion of the annual fee is payable no later than September 30 of the applicable calendar year and is not tax deductible.  The ASU specifies that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable.  A corresponding deferred cost is amortized to expense using a straight-line method of allocation unless another method better allocates the fee over the calendar year in which it is payable. ASU 2011-06 is effective for calendar years beginning after December 31, 2013.  The Company believes that the adoption of ASU 2011-06 in 2014 will result in an immaterial impact to its consolidated financial statements.
	In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”).  Under this standard, an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, rather than as a liability, when the uncertain tax position would reduce the net operating loss or other carryforward under the tax law.  ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013.  The Company believes that adoption of ASU 2013-11 in 2014 will result in an immaterial impact to its consolidated financial statements.

Investment_Securities

Investment Securities	9 Months Ended
	Sep. 30, 2013
Investment Securities	'
Investment Securities	'
	4.              Investment Securities
	Investment securities at September 30, 2013 and December 31, 2012 are as follows:
		Amortized		Unrealized		Unrealized
	September 30, 2013	cost		gains		losses		Fair value
		(in thousands)
	Available for sale securities:
	Mortgage-backed securities	$	8	1		—		9
	Corporate bonds	14,657		117		—		14,774
	Affiliated mutual funds	79,975		6,915		(117	)	86,773
		$	94,640	7,033		(117	)	101,556
	Trading securities:
	Mortgage-backed securities							39
	Municipal bonds							500
	Corporate bonds							11,919
	Common stock							48
	Affiliated mutual funds							82,038
								94,544
	Total investment securities							$	196,100
		Amortized		Unrealized		Unrealized
	December 31, 2012	cost		gains		losses		Fair value
		(in thousands)
	Available for sale securities:
	Mortgage-backed securities	$	9	1		—		10
	Corporate bonds	30,408		248		(3	)	30,653
	Affiliated mutual funds	73,443		3,749		(1,090	)	76,102
		$	103,860	3,998		(1,093	)	106,765
	Trading securities:
	Mortgage-backed securities							44
	Municipal bonds							501
	Corporate bonds							12,112
	Common stock							37
	Affiliated mutual funds							56,683
								69,377
	Total investment securities							$	176,142
	Purchases of trading securities during the nine months ended September 30, 2013 were $143.4 million; $30 million represented seed money for the Ivy Global Real Estate and Ivy Global Risk-Managed Real Estate Funds, new funds launched in the second quarter.  Sales of trading securities were $116.0 million for the same period.
	A summary of available for sale debt securities and affiliated mutual funds with fair values below carrying values at September 30, 2013 and December 31, 2012 is as follows:
		Less than 12 months				12 months or longer				Total
				Unrealized		Fair		Unrealized		Fair	Unrealized
	September 30, 2013	Fair value		losses		value		losses		value	losses
		(in thousands)
	Affiliated mutual funds	$	5,809	(99	)	212		(18	)	6,021	(117	)
	Total temporarily impaired securities	$	5,809	(99	)	212		(18	)	6,021	(117	)
		Less than 12 months				12 months or longer				Total
				Unrealized		Fair		Unrealized		Fair	Unrealized
	December 31, 2012	Fair value		losses		value		losses		value	losses
		(in thousands)
	Corporate bonds	$	997	(3	)	—		—		997	(3	)
	Affiliated mutual funds	23,478		(469	)	5,604		(621	)	29,082	(1,090	)
	Total temporarily impaired securities	$	24,475	(472	)	5,604		(621	)	30,079	(1,093	)
	Based upon our assessment of these affiliated mutual funds, the time frame investments have been in a loss position, and our intent to hold affiliated mutual funds until they have recovered, we determined that a write-down was not necessary at September 30, 2013.
	Mortgage-backed securities and corporate bonds accounted for as available for sale as of September 30, 2013 mature as follows:
		Amortized		Fair value
		cost
		(in thousands)
	Within one year	$	14,657	14,774
	After five years but within 10 years	8		9
		$	14,665	14,783
	Mortgage-backed securities, municipal bonds and corporate bonds accounted for as trading and held as of September 30, 2013 mature as follows:
		Fair value
		(in thousands)
	Within one year	$	11,919
	After one year but within five years	500
	After five years but within 10 years	39
	$	12,458
Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of the asset.  Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset.  An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs that are significant to the overall valuation.  The three-tier hierarchy of inputs is summarized as follows:
·                  Level 1 — Investments are valued using quoted prices in active markets for identical securities.
·                  Level 2 — Investments are valued using other significant observable inputs, including quoted prices in active markets for similar securities.
·                  Level 3 — Investments are valued using significant unobservable inputs, including the Company’s own assumptions in determining the fair value of investments.
Assets classified as Level 2 can have a variety of observable inputs.  These observable inputs are collected and utilized, primarily by an independent pricing service, in different evaluated pricing approaches depending upon the specific asset to determine a value.  The fair value of municipal bonds is measured based on pricing models that take into account, among other factors, information received from market makers and broker/dealers, current trades, bid-wants lists, offerings, market movements, the callability of the bond, state of issuance and benchmark yield curves. The fair value of corporate bonds is measured using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads and fundamental data relating to the issuer.
Securities’ values classified as Level 3 are primarily determined through the use of a single quote (or multiple quotes) from dealers in the securities using proprietary valuation models.  These quotes involve significant unobservable inputs, and thus, the related securities are classified as Level 3 securities.
The following tables summarize our investment securities as of September 30, 2013 and December 31, 2012 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs.
September 30, 2013	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage-backed securities	$	—	48		—		48
Municipal bonds	—		500		—		500
Corporate bonds	—		26,693		—		26,693
Common stock	48		—		—		48
Affiliated mutual funds	168,811		—		—		168,811
Total	$	168,859	27,241		—		196,100
December 31, 2012	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage-backed securities	$	—	54		—		54
Municipal bonds	—		501		—		501
Corporate bonds	—		42,765		—		42,765
Common stock	37		—		—		37
Affiliated mutual funds	132,785		—		—		132,785
Total	$	132,822	43,320		—		176,142

Discontinued_Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2013
Discontinued Operations	'
Discontinued Operations	'
	5.     Discontinued Operations
	During the third quarter of 2012, the Company committed to a plan to sell Legend.  On October 29, 2012, the Company signed a definitive agreement with First Allied Holdings Inc. to sell all of the common interests of Legend Group Holdings, LLC.  The sale closed effective January 1, 2013.  Based on the value of the consideration the Company expected to receive upon closing of the sale, which was less than the carrying value of net assets to be sold, the Company recorded a non-cash impairment charge of $42.4 million during the third quarter of 2012.  The agreement also included an earnout provision based on asset retention for a period of two years following the closing date.
	For income tax purposes, the sale resulted in a $47.5 million capital loss that may only be utilized to offset future capital gains.  Due to the character of the loss and the limited carry forward period permitted by law, the Company may not realize the full tax benefit of the capital loss.
	The operational results of Legend have been presented as discontinued operations in the unaudited consolidated financial statements for the three and nine months ended September 30, 2012. Legend’s revenues and loss before provision for income taxes follow:
		Three months			Nine months
		ended September 30, 2012			ended September 30, 2012
		(in thousands)
	Revenues	$	18,041		55,310
	Loss before provision for income taxes	$	(43,117	)	(41,269	)
	The assets and liabilities of Legend, classified as discontinued operations held for sale in the consolidated balance sheet at December 31, 2012, are as follows (amounts in thousands):
	Assets
	Cash and cash equivalents	$	2,303
	Cash and cash equivalents - restricted	401
	Investment securities	1,352
	Receivables	10,345
	Prepaid expenses and other current assets	749
	Total current assets	15,150
	Property and equipment, net	992
	Goodwill	16,868
	Other non-current assets	150
	Total non-current assets	18,010
	Total assets	33,160
	Liabilities
	Accounts payable	464
	Accrued compensation	6,243
	Other current liabilities	880
	Total current liabilities	7,587
	Non-current liabilities	281
	Total liabilities	7,868
	Assets less liabilities	$	25,292

Goodwill_and_Identifiable_Inta

Goodwill and Identifiable Intangible Assets	9 Months Ended
	Sep. 30, 2013
Goodwill and Identifiable Intangible Assets	'
Goodwill and Identifiable Intangible Assets	'
	6.              Goodwill and Identifiable Intangible Assets
	Goodwill represents the excess of purchase price over the tangible assets and identifiable intangible assets of an acquired business.  Our goodwill is not deductible for tax purposes.  Goodwill and identifiable intangible assets (all considered indefinite lived) are as follows:
		September 30,			December 31,
		2013			2012
		(in thousands)
	Goodwill	$	138,947		138,947
	Accumulated amortization	(31,977		)	(31,977	)
	Total goodwill	106,970			106,970
	Mutual fund management advisory contracts	38,699			38,699
	Mutual fund management subadvisory contracts	16,300			16,300
	Total identifiable intangible assets	54,999			54,999
	Total	$	161,969		161,969

Indebtedness

Indebtedness	9 Months Ended
	Sep. 30, 2013
Indebtedness	'
Indebtedness	'
	7.              Indebtedness
	Debt is reported at its carrying amount in the consolidated balance sheets.  The fair value of the Company’s outstanding indebtedness is approximately $204.6 million at September 30, 2013 compared to the carrying value of $190.0 million.  Fair value is calculated based on Level 2 inputs.
	The Company entered into a five year revolving credit facility (the “New Credit Facility”) with various lenders, effective June 28, 2013, which initially provides for borrowings of up to $125.0 million. The New Credit Facility replaced the prior credit facility, which was set to terminate in August 2013.  Lenders can, at their option upon the Company’s request, expand the New Credit Facility to $200.0 million.  Additionally, the New Credit Facility contains a swingline loan feature for up to $20 million. At September 30, 2013, there were no borrowings outstanding under the facility.  Borrowings under the New Credit Facility bear interest at various rates, including adjusted LIBOR or an alternative base rate plus, in each case, an incremental margin based on the Company’s credit rating. The New Credit Facility also charges a facility fee on the aggregate amount of commitments under the revolving facility (whether or not utilized) based on the Company’s credit rating level.  The New Credit Facility’s covenants match those of our $190.0 million senior unsecured notes.  The most restrictive provisions of the agreement require the Company to maintain a consolidated leverage ratio not to exceed 3.0 to 1.0 for four consecutive quarters and a consolidated interest coverage ratio of not less than 4.0 to 1.0 for four consecutive quarters.  The Company was in compliance with these covenants and similar covenants in prior facilities for all periods presented.

Income_Tax_Uncertainties

Income Tax Uncertainties	9 Months Ended
	Sep. 30, 2013
Income Tax Uncertainties	'
Income Tax Uncertainties	'
	8.              Income Tax Uncertainties
	As of January 1, 2013 and September 30, 2013, the Company had unrecognized tax benefits, including penalties and interest, of $10.8 million ($7.5 million net of federal benefit) and $12.0 million ($8.3 million net of federal benefit), respectively, that if recognized, would impact the Company’s effective tax rate.  The unrecognized tax benefits that are not expected to be settled within the next 12 months are included in other liabilities in the accompanying consolidated balance sheet; unrecognized tax benefits that are expected to be settled within the next 12 months are included in income taxes payable.
	The Company’s accounting policy with respect to interest and penalties related to income tax uncertainties is to classify these amounts as income taxes.  As of January 1, 2013, the total amount of accrued interest and penalties related to uncertain tax positions recognized in the consolidated balance sheet was $2.5 million ($2.0 million net of federal benefit).  The total amount of penalties and interest, net of federal benefit, related to income tax uncertainties recognized in the statement of income for the nine month period ended September 30, 2013 was $0.5 million.  The total amount of accrued penalties and interest related to uncertain tax positions at September 30, 2013 of $3.0 million ($2.5 million net of federal benefit) is included in the total unrecognized tax benefits described above.
	In the ordinary course of business, many transactions occur for which the ultimate tax outcome is uncertain.  In addition, respective tax authorities periodically audit our income tax returns.  These audits examine our significant tax filing positions, including the timing and amounts of deductions and the allocation of income among tax jurisdictions.  The 2010, 2011 and 2012 federal income tax returns are open tax years that remain subject to potential future audit.  State income tax returns for all years after 2009 and, in certain states, income tax returns prior to 2010, are subject to potential future audit by tax authorities in the Company’s major state tax jurisdictions.
	The Company is currently being audited in various state jurisdictions.  It is reasonably possible that the Company will settle the audits in these jurisdictions within the next 12-month period.  It is estimated that the Company’s liability for unrecognized tax benefits, including penalties and interest, could decrease by up to $3.0 million (up to $2.0 million net of federal benefit) upon settlement of these audits.  Such settlements are not anticipated to have a significant impact on the results of operations.

Pension_Plan_and_Postretiremen

Pension Plan and Postretirement Benefits Other Than Pension	9 Months Ended
	Sep. 30, 2013
Pension Plan and Postretirement Benefits Other Than Pension	'
Pension Plan and Postretirement Benefits Other Than Pension	'
	9.              Pension Plan and Postretirement Benefits Other Than Pension
	We provide a non-contributory retirement plan that covers substantially all employees and certain vested employees of our former parent company (the “Pension Plan”).  Benefits payable under the Pension Plan are based on employees’ years of service and compensation during the final 10 years of employment.  We also sponsor an unfunded defined benefit postretirement medical plan that covers substantially all employees, as well as Waddell & Reed advisors.  The medical plan is contributory with participant contributions adjusted annually.  The medical plan does not provide for post age 65 benefits with the exception of a small group of employees that were grandfathered when such plan was established.
	The components of net periodic pension and other postretirement costs related to these plans are as follows:
		Pension Benefits					Other		Pension Benefits				Other
							Postretirement						Postretirement
							Benefits						Benefits
		Three months					Three months		Nine months				Nine months
		ended					ended		ended				ended
		September 30,					September 30,		September 30,				September 30,
		2013			2012		2013	2012	2013		2012		2013	2012
		(in thousands)							(in thousands)
	Components of net periodic benefit cost:
	Service cost	$	2,753		2,343		197	173	8,259		7,030		591	519
	Interest cost	1,928			1,893		90	100	5,783		5,678		270	300
	Expected return on plan assets	(2,796		)	(2,200	)	—	—	(8,389	)	(6,600	)	—	—
	Actuarial loss amortization	1,142			1,141		—	3	3,426		3,422		—	9
	Prior service cost amortization	138			139		14	14	416		417		42	42
	Transition obligation amortization	1			1		—	—	3		4		—	—
	Total (1)	$	3,166		3,317		301	290	9,498		9,951		903	870
	(1)         Net periodic pension benefit and postretirement medical costs related to discontinued operations and included in the table above were $187 thousand for the three months ended September 30, 2012 and $562 thousand for the nine months ended September 30, 2012.
	During the first nine months of 2013, we contributed $17.0 million to the Pension Plan.  We do not expect to make additional contributions for the remainder of 2013.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity	'
Stockholders' Equity	'
	10.  Stockholders’ Equity
	Earnings per Share
	The components of basic and diluted earnings per share from continuing operations were as follows:
		Three months ended					Nine months ended
		September 30,					September 30,
		2013			2012		2013		2012
		(in thousands, except per share amounts)
	Net income from continuing operations	$	68,419		52,116		174,239		140,178
	Weighted average shares outstanding - basic	85,603			85,753		85,688		85,817
	Dilutive potential shares from stock options	—			2		1		2
	Weighted average shares outstanding - diluted	85,603			85,755		85,689		85,819
	Earnings per share from continuing operations, basic and diluted	$	0.8		0.61		2.03		1.63
	Dividends
	On July 17, 2013, the Board of Directors (the “Board”) approved a dividend on our common stock in the amount of $0.28 per share to stockholders of record as of October 11, 2013 to be paid on November 1, 2013.  The total dividend to be paid is approximately $23.9 million and is included in other current liabilities in the consolidated balance sheet at September 30, 2013.
	Common Stock Repurchases
	The Board has authorized the repurchase of our common stock in the open market and/or private purchases. The acquired shares may be used for corporate purposes, including shares issued to employees in our stock-based compensation programs.
	There were 316,961 shares and 213,366 shares repurchased in the open market or privately during the three months ended September 30, 2013 and 2012, respectively, which included 1,961 shares and 1,966 shares repurchased from employees tendering shares to cover their minimum income tax withholdings with respect to vesting of stock awards during these two periods.  There were 1,187,839 shares and 1,158,720 shares repurchased in the open market or privately during the nine months ended September 30, 2013 and 2012, respectively, which included 468,739 shares and 415,320 shares repurchased from employees tendering shares to cover their minimum income tax withholdings with respect to vesting of stock awards during each of these two periods.
	Accumulated Other Comprehensive Loss
	The following table summarizes other comprehensive income (loss) activity for the quarter ended September 30, 2013.
		Unrealized gains			Change in			Pension and		Total
		on investment			valuation			postretirement		accumulated
		securities			allowance for			benefits		other
					unrealized gains					comprehensive
					(losses) on					income (loss)
					investment
					securities
		(in thousands)
	Balance at June 30, 2013	$	1,431		(201		)	(47,214	)	(45,984	)
	Other comprehensive income before reclassification	4,330			2,530			—		6,860
	Amount reclassified from accumulated other comprehensive income	(1,408		)	(819		)	816		(1,411	)
	Net current period other comprehensive income	2,922			1,711			816		5,449
	Balance at September 30, 2013	$	4,353		$	1,510		(46,398	)	(40,535	)
	Reclassifications from accumulated other comprehensive income and included in net income are summarized in the table that follows for the three months ended September 30, 2013.
		Pre-tax			Tax		Net of tax		Statement of income line item
					(expense)
					benefit
		(in thousands)
	Reclassifications included in net income:
	Realized gain on sale of available for sale investment securities	$	2,225		(817	)	1,408		Investment and other income
	Valuation allowance	—			819		819		Provision for income taxes
	Amorization of pension and postretirement benefits	(1,296		)	480		(816	)	Underwriting and distribution expense and Compensation and related costs
	Total	$	929		482		1,411
	The following table summarizes other comprehensive income (loss) activity for the nine months ended September 30, 2013.
		Unrealized gains			Change in			Pension and		Total
		on investment			valuation			postretirement		accumulated
		securities			allowance for			benefits		other
					unrealized gains					comprehensive
					(losses) on					income (loss)
					investment
					securities
		(in thousands)
	Balance at December 31, 2012	$	1,823		32			(48,652	)	(46,797	)
	Other comprehensive income before reclassification	7,519			4,396			—		11,915
	Amount reclassified from accumulated other comprehensive income	(4,989		)	(2,918		)	2,254		(5,653	)
	Net current period other comprehensive income	2,530			1,478			2,254		6,262
	Balance at September 30, 2013	$	4,353		$	1,510		(46,398	)	(40,535	)
	Reclassifications from accumulated other comprehensive income and included in net income are summarized in the table that follows for the nine months ended September 30, 2013.
		Pre-tax			Tax		Net of tax		Statement of income line item
					(expense)
					benefit
		(in thousands)
	Reclassifications included in net income:
	Realized gain on sale of available for sale investment securities	$	7,887		(2,898	)	4,989		Investment and other income
Valuation allowance	—			2,918		2,918		Provision for income taxes
Amorization of pension and postretirement benefits	(3,887		)	1,633		(2,254	)	Underwriting and distribution expense and Compensation and related costs
Total	$	4,000		1,653		5,653

ShareBased_Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2013
Share-Based Compensation.	'
Share-Based Compensation	'
	11.  Share-Based Compensation
	On December 31, 2012, there were 6,371 options outstanding with a weighted average exercise price of $21.09, all of which were exercised during 2013.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2013
Contingencies	'
Contingencies	'
	12.       Contingencies
	The Company is involved from time to time in various legal proceedings, regulatory investigations and claims incident to the normal conduct of business, which may include proceedings that are specific to us and others generally applicable to business practices within the industries in which we operate.  A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and on the results of operations in a particular quarter or year.
	The Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable, and the amount can be reasonably estimated.  These amounts are not reduced by amounts that may be recovered under insurance or claims against third parties, but undiscounted receivables from insurers or other third parties may be accrued separately. The Company regularly revises such accruals in light of new information.  For contingencies where an unfavorable outcome is reasonably possible and that are significant, the Company discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our litigation contingency disclosures, “significant” includes material matters as well as other items that management believes should be disclosed.  Management judgment is required related to contingent liabilities and the outcome of litigation because both are difficult to predict.

Description_of_Business_and_Si1

Description of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Description of Business and Significant Accounting Policies	'
Basis of Presentation	'
	Basis of Presentation
	We have prepared the accompanying unaudited consolidated financial statements included herein pursuant to the rules and regulations of the SEC.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to enable a reasonable understanding of the information presented.  The information in this Quarterly Report on Form 10-Q should be read in conjunction with Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”).  Certain amounts in the prior years’ financial statements have been reclassified for consistent presentation.
	The accompanying unaudited consolidated financial statements are prepared consistently with the accounting policies described in Note 2 to the consolidated financial statements included in our 2012 Form 10-K, which include the following: use of estimates, cash and cash equivalents, disclosures about fair value of financial instruments, investment securities and investments in affiliated mutual funds, property and equipment, software developed for internal use, goodwill and identifiable intangible assets, deferred sales commissions, revenue recognition, advertising and promotion, share-based compensation and accounting for income taxes.
	Effective January 1, 2013, the Company adopted an amended accounting standard to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to present separately, for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. The adoption was effective prospectively and did not have any effect on the Company’s results of operations, financial position or liquidity.
	In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of only a normal and recurring nature) necessary to present fairly our financial position at September 30, 2013, the results of operations for the three and nine months ended September 30, 2013 and 2012, and cash flows for the nine months ended September 30, 2013 and 2012 in conformity with accounting principles generally accepted in the United States.
	During the third quarter of 2012, the Company committed to a plan to sell its Legend group of subsidiaries (“Legend”) and on October 29, 2012, the Company signed a definitive agreement to execute the transaction.  The sale closed effective January 1, 2013.  The operational results of Legend have been reclassified as discontinued operations in our unaudited consolidated financial statements for the three and nine months ended September 30, 2012 and as of December 31, 2012.  Unless otherwise stated, footnote references refer to continuing operations.

Investment_Securities_Tables

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2013
Investment Securities	'
Schedule of investment securities	'
		Amortized		Unrealized		Unrealized
	September 30, 2013	cost		gains		losses		Fair value
		(in thousands)
	Available for sale securities:
	Mortgage-backed securities	$	8	1		—		9
	Corporate bonds	14,657		117		—		14,774
	Affiliated mutual funds	79,975		6,915		(117	)	86,773
		$	94,640	7,033		(117	)	101,556
	Trading securities:
	Mortgage-backed securities							39
	Municipal bonds							500
	Corporate bonds							11,919
	Common stock							48
	Affiliated mutual funds							82,038
								94,544
	Total investment securities							$	196,100
		Amortized		Unrealized		Unrealized
	December 31, 2012	cost		gains		losses		Fair value
		(in thousands)
	Available for sale securities:
	Mortgage-backed securities	$	9	1		—		10
	Corporate bonds	30,408		248		(3	)	30,653
	Affiliated mutual funds	73,443		3,749		(1,090	)	76,102
		$	103,860	3,998		(1,093	)	106,765
	Trading securities:
	Mortgage-backed securities							44
	Municipal bonds							501
	Corporate bonds							12,112
	Common stock							37
	Affiliated mutual funds							56,683
								69,377
	Total investment securities							$	176,142
Summary of available for sale debt securities and affiliated mutual funds with fair values below carrying values	'
		Less than 12 months				12 months or longer				Total
				Unrealized		Fair		Unrealized		Fair	Unrealized
	September 30, 2013	Fair value		losses		value		losses		value	losses
		(in thousands)
	Affiliated mutual funds	$	5,809	(99	)	212		(18	)	6,021	(117	)
	Total temporarily impaired securities	$	5,809	(99	)	212		(18	)	6,021	(117	)
		Less than 12 months				12 months or longer				Total
				Unrealized		Fair		Unrealized		Fair	Unrealized
	December 31, 2012	Fair value		losses		value		losses		value	losses
		(in thousands)
	Corporate bonds	$	997	(3	)	—		—		997	(3	)
	Affiliated mutual funds	23,478		(469	)	5,604		(621	)	29,082	(1,090	)
	Total temporarily impaired securities	$	24,475	(472	)	5,604		(621	)	30,079	(1,093	)
Schedule of available for sale securities by maturity date	'
	Mortgage-backed securities and corporate bonds accounted for as available for sale as of September 30, 2013 mature as follows:
		Amortized		Fair value
		cost
		(in thousands)
	Within one year	$	14,657	14,774
	After five years but within 10 years	8		9
		$	14,665	14,783
Schedule of trading securities by maturity date	'
	Mortgage-backed securities, municipal bonds and corporate bonds accounted for as trading and held as of September 30, 2013 mature as follows:
		Fair value
		(in thousands)
	Within one year	$	11,919
	After one year but within five years	500
	After five years but within 10 years	39
		$	12,458
Schedule of fair value of investment securities	'
	September 30, 2013	Level 1		Level 2		Level 3		Total
		(in thousands)
	Mortgage-backed securities	$	—	48		—		48
	Municipal bonds	—		500		—		500
	Corporate bonds	—		26,693		—		26,693
	Common stock	48		—		—		48
	Affiliated mutual funds	168,811		—		—		168,811
	Total	$	168,859	27,241		—		196,100
	December 31, 2012	Level 1		Level 2		Level 3		Total
		(in thousands)
	Mortgage-backed securities	$	—	54		—		54
	Municipal bonds	—		501		—		501
	Corporate bonds	—		42,765		—		42,765
	Common stock	37		—		—		37
	Affiliated mutual funds	132,785		—		—		132,785
	Total	$	132,822	43,320		—		176,142

Discontinued_Operations_Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2013
Discontinued Operations	'
Schedule of operational results of Legend presented as discontinued operations along with assets and liabilities of Legend, classified as discontinued operations held for sale	'
		Three months			Nine months
		ended September 30, 2012			ended September 30, 2012
		(in thousands)
	Revenues	$	18,041		55,310
	Loss before provision for income taxes	$	(43,117	)	(41,269	)
Assets and liabilities of Legend, classified as discontinued operations held for sale	'
	The assets and liabilities of Legend, classified as discontinued operations held for sale in the consolidated balance sheet at December 31, 2012, are as follows (amounts in thousands):
	Assets
	Cash and cash equivalents	$	2,303
	Cash and cash equivalents - restricted	401
	Investment securities	1,352
	Receivables	10,345
	Prepaid expenses and other current assets	749
	Total current assets	15,150
	Property and equipment, net	992
	Goodwill	16,868
	Other non-current assets	150
	Total non-current assets	18,010
	Total assets	33,160
	Liabilities
	Accounts payable	464
	Accrued compensation	6,243
	Other current liabilities	880
	Total current liabilities	7,587
	Non-current liabilities	281
	Total liabilities	7,868
	Assets less liabilities	$	25,292

Goodwill_and_Identifiable_Inta1

Goodwill and Identifiable Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2013
Goodwill and Identifiable Intangible Assets	'
Schedule of goodwill and identifiable intangible assets	'
		September 30,			December 31,
		2013			2012
		(in thousands)
	Goodwill	$	138,947		138,947
	Accumulated amortization	(31,977		)	(31,977	)
	Total goodwill	106,970			106,970
	Mutual fund management advisory contracts	38,699			38,699
	Mutual fund management subadvisory contracts	16,300			16,300
	Total identifiable intangible assets	54,999			54,999
	Total	$	161,969		161,969

Pension_Plan_and_Postretiremen1

Pension Plan and Postretirement Benefits Other Than Pension (Tables)	9 Months Ended
	Sep. 30, 2013
Pension Plan and Postretirement Benefits Other Than Pension	'
Schedule of components of net periodic pension and other postretirement costs related to the plans	'
		Pension Benefits					Other		Pension Benefits				Other
							Postretirement						Postretirement
							Benefits						Benefits
		Three months					Three months		Nine months				Nine months
		ended					ended		ended				ended
		September 30,					September 30,		September 30,				September 30,
		2013			2012		2013	2012	2013		2012		2013	2012
		(in thousands)							(in thousands)
	Components of net periodic benefit cost:
	Service cost	$	2,753		2,343		197	173	8,259		7,030		591	519
	Interest cost	1,928			1,893		90	100	5,783		5,678		270	300
	Expected return on plan assets	(2,796		)	(2,200	)	—	—	(8,389	)	(6,600	)	—	—
	Actuarial loss amortization	1,142			1,141		—	3	3,426		3,422		—	9
	Prior service cost amortization	138			139		14	14	416		417		42	42
	Transition obligation amortization	1			1		—	—	3		4		—	—
	Total (1)	$	3,166		3,317		301	290	9,498		9,951		903	870
	(1)         Net periodic pension benefit and postretirement medical costs related to discontinued operations and included in the table above were $187 thousand for the three months ended September 30, 2012 and $562 thousand for the nine months ended September 30, 2012.

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity	'
Components of basic and diluted earnings per share	'
		Three months ended					Nine months ended
		September 30,					September 30,
		2013			2012		2013		2012
		(in thousands, except per share amounts)
	Net income from continuing operations	$	68,419		52,116		174,239		140,178
	Weighted average shares outstanding - basic	85,603			85,753		85,688		85,817
	Dilutive potential shares from stock options	—			2		1		2
	Weighted average shares outstanding - diluted	85,603			85,755		85,689		85,819
	Earnings per share from continuing operations, basic and diluted	$	0.8		0.61		2.03		1.63
Summary of other comprehensive income (loss) activity	'
		Unrealized gains			Change in			Pension and		Total
		on investment			valuation			postretirement		accumulated
		securities			allowance for			benefits		other
					unrealized gains					comprehensive
					(losses) on					income (loss)
					investment
					securities
		(in thousands)
	Balance at June 30, 2013	$	1,431		(201		)	(47,214	)	(45,984	)
	Other comprehensive income before reclassification	4,330			2,530			—		6,860
	Amount reclassified from accumulated other comprehensive income	(1,408		)	(819		)	816		(1,411	)
	Net current period other comprehensive income	2,922			1,711			816		5,449
	Balance at September 30, 2013	$	4,353		$	1,510		(46,398	)	(40,535	)
		Unrealized gains			Change in			Pension and		Total
		on investment			valuation			postretirement		accumulated
		securities			allowance for			benefits		other
					unrealized gains					comprehensive
					(losses) on					income (loss)
					investment
					securities
		(in thousands)
	Balance at December 31, 2012	$	1,823		32			(48,652	)	(46,797	)
	Other comprehensive income before reclassification	7,519			4,396			—		11,915
	Amount reclassified from accumulated other comprehensive income	(4,989		)	(2,918		)	2,254		(5,653	)
	Net current period other comprehensive income	2,530			1,478			2,254		6,262
	Balance at September 30, 2013	$	4,353		$	1,510		(46,398	)	(40,535	)
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 table that follows for the three months ended September 30, 2013.
		Pre-tax			Tax		Net of tax		Statement of income line item
					(expense)
					benefit
		(in thousands)
	Reclassifications included in net income:
	Realized gain on sale of available for sale investment securities	$	2,225		(817	)	1,408		Investment and other income
	Valuation allowance	—			819		819		Provision for income taxes
	Amorization of pension and postretirement benefits	(1,296		)	480		(816	)	Underwriting and distribution expense and Compensation and related costs
	Total	$	929		482		1,411
	Reclassifications from accumulated other comprehensive income and included in net income are summarized in the table that follows for the nine months ended September 30, 2013.
		Pre-tax			Tax		Net of tax		Statement of income line item
					(expense)
					benefit
		(in thousands)
	Reclassifications included in net income:
	Realized gain on sale of available for sale investment securities	$	7,887		(2,898	)	4,989		Investment and other income
	Valuation allowance	—			2,918		2,918		Provision for income taxes
	Amorization of pension and postretirement benefits	(3,887		)	1,633		(2,254	)	Underwriting and distribution expense and Compensation and related costs
	Total	$	4,000		1,653		5,653

Investment_Securities_Details

Investment Securities (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Available for sale securities:	'	'
Amortized cost	$94,640,000	$103,860,000
Unrealized gains	7,033,000	3,998,000
Unrealized losses	-117,000	-1,093,000
Fair value	101,556,000	106,765,000
Trading securities:	'	'
Fair value	94,544,000	69,377,000
Investment securities	196,100,000	176,142,000
Purchases of trading securities	143,400,000	'
Seed money paid for the Ivy Global Real Estate and Ivy Global Risk-Managed Real Estate Funds	30,000,000	'
Sales of trading securities	116,000,000	'
Mortgage-backed securities	'	'
Available for sale securities:	'	'
Amortized cost	8,000	9,000
Unrealized gains	1,000	1,000
Fair value	9,000	10,000
Trading securities:	'	'
Fair value	39,000	44,000
Municipal bonds	'	'
Trading securities:	'	'
Fair value	500,000	501,000
Corporate bonds	'	'
Available for sale securities:	'	'
Amortized cost	14,657,000	30,408,000
Unrealized gains	117,000	248,000
Unrealized losses	'	-3,000
Fair value	14,774,000	30,653,000
Trading securities:	'	'
Fair value	11,919,000	12,112,000
Common Stock	'	'
Trading securities:	'	'
Fair value	48,000	37,000
Affiliated mutual funds	'	'
Available for sale securities:	'	'
Amortized cost	79,975,000	73,443,000
Unrealized gains	6,915,000	3,749,000
Unrealized losses	-117,000	-1,090,000
Fair value	86,773,000	76,102,000
Trading securities:	'	'
Fair value	$82,038,000	$56,683,000

Investment_Securities_Details_

Investment Securities (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Fair Value	'	'
Less than 12 months	$5,809	$24,475
12 months or longer	212	5,604
Total temporarily impaired securities	6,021	30,079
Unrealized losses	'	'
Less than 12 months	-99	-472
12 months or longer	-18	-621
Total Unrealized losses on temporarily impaired securities	-117	-1,093
Fair value	'	'
Total fair value	94,544	69,377
Amortized Cost	'	'
Within one year	14,657	'
After five years but within 10 years	8	'
Total amortized cost	14,665	'
Fair value	'	'
Within one year	14,774	'
After five years but within 10 years	9	'
Total fair value	14,783	'
Affiliated mutual funds	'	'
Fair Value	'	'
Less than 12 months	5,809	23,478
12 months or longer	212	5,604
Total temporarily impaired securities	6,021	29,082
Unrealized losses	'	'
Less than 12 months	-99	-469
12 months or longer	-18	-621
Total Unrealized losses on temporarily impaired securities	-117	-1,090
Fair value	'	'
Total fair value	82,038	56,683
Corporate bonds	'	'
Fair Value	'	'
Less than 12 months	'	997
Total temporarily impaired securities	'	997
Unrealized losses	'	'
Less than 12 months	'	-3
Total Unrealized losses on temporarily impaired securities	'	-3
Fair value	'	'
Total fair value	11,919	12,112
Mortgage-Backed Securities and Bonds	'	'
Fair value	'	'
Within one year	11,919	'
After one year but within five years	500	'
After five years but within 10 years	39	'
Total fair value	$12,458	'

Investment_Securities_Details_1

Investment Securities (Details 3) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Fair value of investments	'	'
Total investment securities	$196,100	$176,142
Level 1	'	'
Fair value of investments	'	'
Total investment securities	168,859	132,822
Level 1 | Common Stock	'	'
Fair value of investments	'	'
Total investment securities	48	37
Level 1 | Affiliated mutual funds	'	'
Fair value of investments	'	'
Total investment securities	168,811	132,785
Level 2	'	'
Fair value of investments	'	'
Total investment securities	27,241	43,320
Level 2 | Mortgage-backed securities	'	'
Fair value of investments	'	'
Total investment securities	48	54
Level 2 | Municipal bonds	'	'
Fair value of investments	'	'
Total investment securities	500	501
Level 2 | Corporate bonds	'	'
Fair value of investments	'	'
Total investment securities	26,693	42,765
Total	'	'
Fair value of investments	'	'
Total investment securities	196,100	176,142
Total | Mortgage-backed securities	'	'
Fair value of investments	'	'
Total investment securities	48	54
Total | Municipal bonds	'	'
Fair value of investments	'	'
Total investment securities	500	501
Total | Corporate bonds	'	'
Fair value of investments	'	'
Total investment securities	26,693	42,765
Total | Common Stock	'	'
Fair value of investments	'	'
Total investment securities	48	37
Total | Affiliated mutual funds	'	'
Fair value of investments	'	'
Total investment securities	$168,811	$132,785

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Assets	'	'	'	'
Cash and cash equivalents	$2,754,000	'	$2,754,000	'
Total current assets	'	'	'	15,150,000
Total non-current assets	'	'	'	18,010,000
Liabilities	'	'	'	'
Total current liabilities	'	'	'	7,587,000
Non-current liabilities	'	'	'	281,000
Legend subsidiary	'	'	'	'
Discontinued Operations	'	'	'	'
Non-cash impairment charge	42,400,000	'	'	'
Period under agreement for earnout provision	'	'2 years	'	'
Capital loss on sale	'	47,500,000	'	'
Operational results of Legend presented as discontinued operations	'	'	'	'
Revenues	18,041,000	'	55,310,000	'
Loss before provision for income taxes	-43,117,000	'	-41,269,000	'
Assets	'	'	'	'
Cash and cash equivalents	'	'	'	2,303,000
Cash and cash equivalents - restricted	'	'	'	401,000
Investment securities	'	'	'	1,352,000
Receivables	'	'	'	10,345,000
Prepaid expenses and other current assets	'	'	'	749,000
Total current assets	'	'	'	15,150,000
Property and equipment, net	'	'	'	992,000
Goodwill	'	'	'	16,868,000
Other non-current assets	'	'	'	150,000
Total non-current assets	'	'	'	18,010,000
Total assets	'	'	'	33,160,000
Liabilities	'	'	'	'
Accounts payable	'	'	'	464,000
Accrued compensation	'	'	'	6,243,000
Other current liabilities	'	'	'	880,000
Total current liabilities	'	'	'	7,587,000
Non-current liabilities	'	'	'	281,000
Total liabilities	'	'	'	7,868,000
Assets less liabilities	'	'	'	$25,292,000

Goodwill_and_Identifiable_Inta2

Goodwill and Identifiable Intangible Assets (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Goodwill and Identifiable Intangible Assets	'	'
Goodwill	$138,947	$138,947
Accumulated amortization	-31,977	-31,977
Total goodwill	106,970	106,970
Mutual fund management advisory contracts	38,699	38,699
Mutual fund management subadvisory contracts	16,300	16,300
Total identifiable intangible assets	54,999	54,999
Total goodwill and identifiable intangible assets	$161,969	$161,969

Indebtedness_Details

Indebtedness (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Jun. 28, 2013	Sep. 30, 2013	Jun. 28, 2013	Jun. 28, 2013	Jun. 28, 2013	Sep. 30, 2013
			New Credit Facility	New Credit Facility	New Credit Facility	New Credit Facility	Swingline loan	Senior Notes
					Maximum	Minimum
Indebtedness	'	'	'	'	'	'	'	'
Fair value of outstanding indebtedness	$204,600,000	'	'	'	'	'	'	'
Summary of long-term debt	'	'	'	'	'	'	'	'
Total long-term debt	190,000,000	190,000,000	'	'	'	'	'	190,000,000
Revolving credit facility term	'	'	'5 years	'	'	'	'	'
Maximum borrowing capacity	'	'	125,000,000	'	'	'	20,000,000	'
Variable Rate Basis	'	'	'	'LIBOR	'	'	'	'
Amount that borrowing capacity can be expanded upon entity's request	'	'	200,000,000	'	'	'	'	'
Borrowing outstanding under the facility	'	'	'	$0	'	'	'	'
Consolidated leverage ratio	'	'	'	'	3	'	'	'
Consolidated interest coverage ratio	'	'	'	'	'	4	'	'
Number of consecutive quarters for which the maximum consolidated leverage ratio is required to be maintained under financial covenants	'	'	'4 years	'	'	'	'	'
Number of consecutive quarters for which the minimum consolidated interest coverage ratio is required to be maintained under financial covenants	'	'	'4 years	'	'	'	'	'

Income_Tax_Uncertainties_Detai

Income Tax Uncertainties (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Income Tax Uncertainties	'	'
Unrecognized tax benefits, including penalties and interest that if recognized would impact effective tax rate	$12	$10.80
Unrecognized tax benefits, including penalties and interest, net of federal tax benefit that if recognized would affect effective tax rate	8.3	7.5
Accrued interest and penalties related to uncertain tax positions	3	2.5
Accrued interest and penalties related to uncertain tax positions, net of federal benefit	2.5	2
Total expense of interest and penalties, net of federal benefit related to uncertain tax positions	$0.50	'

Income_Tax_Uncertainties_Detai1

Income Tax Uncertainties (Details 2) (USD $)	Sep. 30, 2013
In Millions, unless otherwise specified
Income Tax Uncertainties	'
Estimated decrease in unrecognized tax benefits within the next 12-month period, high end of range	$3
Estimated decrease in unrecognized tax benefits net of federal benefits within the next 12-month period, high end of range	$2

Pension_Plan_and_Postretiremen2

Pension Plan and Postretirement Benefits Other Than Pension (Details)	9 Months Ended
	Sep. 30, 2013
Pension Benefits	'
Pension Plan and Postretirement Benefits Other than Pension	'
Final number of years of employee's compensation to determine the benefits payable	'10 years
Other Postretirement Benefits	'
Pension Plan and Postretirement Benefits Other than Pension	'
Age of employees after which the plan does not provide benefits	'65 years

Pension_Plan_and_Postretiremen3

Pension Plan and Postretirement Benefits Other Than Pension (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Pension Benefits	'	'	'	'
Components of net periodic benefit cost:	'	'	'	'
Service cost	$2,753,000	$2,343,000	$8,259,000	$7,030,000
Interest cost	1,928,000	1,893,000	5,783,000	5,678,000
Expected return on plan assets	-2,796,000	-2,200,000	-8,389,000	-6,600,000
Actuarial loss amortization	1,142,000	1,141,000	3,426,000	3,422,000
Prior service cost amortization	138,000	139,000	416,000	417,000
Transition obligation amortization	1,000	1,000	3,000	4,000
Total	3,166,000	3,317,000	9,498,000	9,951,000
Expected benefit payments	'	'	'	'
Entity's contribution to Pension Plan	'	'	17,000,000	'
Other Postretirement Benefits	'	'	'	'
Components of net periodic benefit cost:	'	'	'	'
Service cost	197,000	173,000	591,000	519,000
Interest cost	90,000	100,000	270,000	300,000
Actuarial loss amortization	'	3,000	'	9,000
Prior service cost amortization	14,000	14,000	42,000	42,000
Total	301,000	290,000	903,000	870,000
Other Postretirement Benefits | Segment Discontinued Operations	'	'	'	'
Components of net periodic benefit cost:	'	'	'	'
Total	'	$187,000	'	$562,000

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended
	Jul. 17, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Components of basic and diluted earnings per share	'	'	'	'	'
Net income from continuing operations (in dollars)	'	$68,419,000	$52,116,000	$174,239,000	$140,178,000
Weighted average shares outstanding - basic	'	85,603,000	85,753,000	85,688,000	85,817,000
Dilutive potential shares from stock options	'	'	2,000	1,000	2,000
Weighted average shares outstanding - diluted	'	85,603,000	85,755,000	85,689,000	85,819,000
Earnings per share:	'	'	'	'	'
Earnings per share from continuing operations, basic and diluted (in dollars per share)	'	$0.80	$0.61	$2.03	$1.63
Dividends	'	'	'	'	'
Dividends accrued, per share (in dollars per share)	$0.28	'	'	$0.84	'
Dividends to be paid (in dollars)	'	$23,900,000	'	$23,900,000	'
Common stock repurchases	'	'	'	'	'
Shares repurchased in the open market or privately	'	316,961	213,366	1,187,839	1,158,720
Shares repurchased from employees to cover minimum income tax withholdings	'	1,961	1,966	468,739	415,320

Stockholders_Equity_Details_2

Stockholders' Equity (Details 2) (USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013
Changes in other comprehensive income (loss)	'	'
Balance at the beginning of the period	($45,984)	($46,797)
Other comprehensive income before reclassification	6,860	11,915
Amount reclassified from accumulated other comprehensive income	-1,411	-5,653
Net current period other comprehensive income	5,449	6,262
Balance at the end of the period	-40,535	-40,535
Unrealized gains on investment securities	'	'
Changes in other comprehensive income (loss)	'	'
Balance at the beginning of the period	1,431	1,823
Other comprehensive income before reclassification	4,330	7,519
Amount reclassified from accumulated other comprehensive income	-1,408	-4,989
Net current period other comprehensive income	2,922	2,530
Balance at the end of the period	4,353	4,353
Change in valuation allowance for unrealized gains (losses) on investment securities	'	'
Changes in other comprehensive income (loss)	'	'
Balance at the beginning of the period	-201	32
Other comprehensive income before reclassification	2,530	4,396
Amount reclassified from accumulated other comprehensive income	-819	-2,918
Net current period other comprehensive income	1,711	1,478
Balance at the end of the period	1,510	1,510
Pension and postretirement benefits	'	'
Changes in other comprehensive income (loss)	'	'
Balance at the beginning of the period	-47,214	-48,652
Amount reclassified from accumulated other comprehensive income	816	2,254
Net current period other comprehensive income	816	2,254
Balance at the end of the period	($46,398)	($46,398)

Stockholders_Equity_Details_3

Stockholders' Equity (Details 3) (USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013
Reclassifications included in net income:	'	'
Net of tax	$1,411	$5,653
Reclassifications from accumulated other comprehensive income	'	'
Reclassifications included in net income:	'	'
Pre-tax	929	4,000
Tax (expense) benefit	482	1,653
Net of tax	1,411	5,653
Realized gain on sale of available for sale investment securities	'	'
Reclassifications included in net income:	'	'
Net of tax	1,408	4,989
Realized gain on sale of available for sale investment securities | Investment and other income | Reclassifications from accumulated other comprehensive income	'	'
Reclassifications included in net income:	'	'
Pre-tax	2,225	7,887
Tax (expense) benefit	-817	-2,898
Net of tax	1,408	4,989
Valuation allowance	'	'
Reclassifications included in net income:	'	'
Net of tax	819	2,918
Valuation allowance | Provision for income taxes | Reclassifications from accumulated other comprehensive income	'	'
Reclassifications included in net income:	'	'
Tax (expense) benefit	819	2,918
Net of tax	819	2,918
Amortization of pension and postretirement benefits	'	'
Reclassifications included in net income:	'	'
Net of tax	-816	-2,254
Amortization of pension and postretirement benefits | Underwriting and distribution expense and Compensation and related costs | Reclassifications from accumulated other comprehensive income	'	'
Reclassifications included in net income:	'	'
Pre-tax	-1,296	-3,887
Tax (expense) benefit	480	1,633
Net of tax	($816)	($2,254)

ShareBased_Compensation_Detail

Share-Based Compensation (Details) (Stock Options, USD $)	Dec. 31, 2012
Stock Options	'
Share-Based Compensation	'
Options outstanding (in shares)	6,371
Weighted average exercise price of options outstanding (in dollars per share)	$21.09