Waddell & Reed Financial (WDR) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document and Entity Information
Entity Registrant Name	WADDELL & REED FINANCIAL INC
Entity Central Index Key	1,052,100
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
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		82,992,048
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 612,660	$ 566,621
Cash and cash equivalents - restricted	39,605	76,595
Investment securities	219,437	243,283
Receivables:
Funds and separate accounts	33,328	39,110
Customers and other	172,624	216,843
Deferred income taxes	7,635	7,454
Income taxes receivable	4,869	7,747
Prepaid expenses and other current assets	26,461	14,980
Total current assets	1,116,619	1,172,633
Property and equipment, net	100,386	92,304
Deferred sales commissions, net	31,314	56,472
Goodwill and identifiable intangible assets	158,118	158,123
Deferred income taxes	20,764	20,036
Other non-current assets	15,588	12,298
Total assets	1,442,789	1,511,866
Liabilities:
Accounts payable	23,583	32,263
Payable to investment companies for securities	71,990	129,633
Payable to third party brokers	52,012	67,954
Payable to customers	83,227	110,399
Accrued compensation	74,160	67,574
Other current liabilities	52,981	55,143
Total current liabilities	357,953	462,966
Long-term debt	190,000	190,000
Accrued pension and postretirement costs	31,429	45,936
Other non-current liabilities	26,470	26,880
Total liabilities	$ 605,852	$ 725,782
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; 83,080 shares outstanding (83,654 at December 31, 2014)	$ 997	$ 997
Additional paid-in capital	330,834	318,636
Retained earnings	1,116,523	1,041,909
Cost of 16,621 common shares in treasury (16,047 at December 31, 2014)	(559,253)	(525,015)
Accumulated other comprehensive loss	(52,164)	(50,443)
Total stockholders' equity	836,937	786,084
Total liabilities and stockholders' equity	$ 1,442,789	$ 1,511,866

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2015	Dec. 31, 2014
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	83,080	(83,654)
Common shares in treasury	16,621	(16,047)

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Investment management fees	$ 175,218	$ 197,783	$ 543,237	$ 579,444
Underwriting and distribution fees	165,130	173,047	503,616	507,315
Shareholder service fees	35,761	38,728	108,704	113,849
Total	376,109	409,558	1,155,557	1,200,608
Operating expenses:
Underwriting and distribution	189,065	197,246	580,247	587,805
Compensation and related costs (including share-based compensation of $12,073, $12,941, $35,880 and $40,620, respectively)	46,157	48,375	152,481	146,973
General and administrative	25,458	24,924	79,033	75,863
Subadvisory fees	2,305	2,203	7,086	6,149
Depreciation	4,117	3,786	12,215	10,576
Intangible asset impairment		7,900		7,900
Total	267,102	284,434	831,062	835,266
Operating income	109,007	125,124	324,495	365,342
Investment and other income (loss)	(16,872)	(1,205)	(12,891)	8,795
Interest expense	(2,765)	(2,769)	(8,296)	(8,279)
Income before provision for income taxes	89,370	121,150	303,308	365,858
Provision for income taxes	41,312	46,564	120,692	133,420
Net income	$ 48,058	$ 74,586	$ 182,616	$ 232,438
Net income per share, basic and diluted:
Net income per share, basic and diluted (in dollars per share)	$ 0.58	$ 0.89	$ 2.18	$ 2.74
Weighted average shares outstanding, basic and diluted:
Weighted average shares outstanding, basic and diluted (in shares)	83,469	84,242	83,709	84,775

Consolidated Statements of Inc5

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements of Income
Compensation and related costs, share-based compensation	$ 12,073	$ 12,941	$ 35,880	$ 40,620

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements of Comprehensive Income
Net income	$ 48,058	$ 74,586	$ 182,616	$ 232,438
Other comprehensive income:
Unrealized depreciation of available for sale investment securities during the period, net of income tax benefit of $(5), $(11), $0 and $(9), respectively	(1,321)	(4,962)	(4,485)	(3,491)
Pension and postretirement benefits, net of income tax expense of $526, $186, $1,477 and $558, respectively	888	315	2,764	947
Comprehensive income	$ 47,625	$ 69,939	$ 180,895	$ 229,894

Consolidated Statements of Com7

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements of Comprehensive Income
Unrealized depreciation of available for sale investment securities during the period, income tax benefit	$ (5)	$ (11)	$ 0	$ (9)
Pension and postretirement benefits, income tax expense	$ 526	$ 186	$ 1,477	$ 558

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income(Loss)	Total
Balance at the beginning of the period at Dec. 31, 2013					$ (15,859)
Increase (Decrease) in Stockholders' Equity
Net income						$ 232,438
Other comprehensive loss					(2,544)
Balance at the end of the period at Sep. 30, 2014					(18,403)
Balance at the beginning of the period at Jun. 30, 2014					(13,756)
Increase (Decrease) in Stockholders' Equity
Net income						74,586
Other comprehensive loss					(4,647)
Balance at the end of the period at Sep. 30, 2014					(18,403)
Balance at the beginning of the period at Dec. 31, 2014	$ 997	$ 318,636	$ 1,041,909	$ (525,015)	(50,443)	786,084
Balance (in shares) at Dec. 31, 2014	99,701
Increase (Decrease) in Stockholders' Equity
Net income			182,616			182,616
Recognition of equity compensation		35,880				35,880
Net issuance/forfeiture of nonvested shares		(29,039)		29,039
Dividends accrued, $1.29 per share			(108,002)			(108,002)
Excess tax benefits from share-based payment arrangements		5,357				5,357
Repurchase of common stock				(63,277)		(63,277)
Other comprehensive loss					(1,721)	(1,721)
Balance at the end of the period at Sep. 30, 2015	$ 997	330,834	1,116,523	(559,253)	(52,164)	836,937
Balance (in shares) at Sep. 30, 2015	99,701
Balance at the beginning of the period at Jun. 30, 2015					(51,731)
Increase (Decrease) in Stockholders' Equity
Net income						48,058
Other comprehensive loss					(433)
Balance at the end of the period at Sep. 30, 2015	$ 997	$ 330,834	$ 1,116,523	$ (559,253)	$ (52,164)	$ 836,937
Balance (in shares) at Sep. 30, 2015	99,701

Consolidated Statement of Stoc9

Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares	Jul. 15, 2015	Sep. 30, 2015
Consolidated Statement of Stockholders' Equity
Dividends accrued, per share (in dollars per share)	$ 0.43	$ 1.29

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 182,616	$ 232,438
Adjustments to reconcile net income to net cash provided by operating activities:
Intangible asset impairment		7,900
Depreciation and amortization	12,218	10,695
Amortization of deferred sales commissions	34,251	49,373
Share-based compensation	35,880	40,620
Excess tax benefits from share-based payment arrangements	(5,357)	(16,465)
Gain on sale of sponsored investment securities	(2,799)	(3,875)
Net purchases and sales or maturities of trading securities	59	(14,298)
(Gain) loss on trading securities	2,301	(1,985)
Loss on equity method securities	15,326
Loss on sale and retirement of property and equipment	338	1,131
Capital gains and dividends reinvested		(14)
Deferred income taxes	(2,384)	(2,273)
Changes in assets and liabilities:
Cash and cash equivalents - restricted	36,990	60,200
Other receivables	44,219	(24,263)
Payable to investment companies for securities and payable to customers	(84,815)	(52,849)
Receivables from funds and separate accounts	5,782	707
Other assets	(14,771)	(7,934)
Deferred sales commissions	(9,093)	(37,553)
Accounts payable and payable to third party brokers	(24,622)	2,355
Other liabilities	4,434	16,322
Net cash provided by operating activities	230,573	260,232
Cash flows from investing activities:
Purchases of sponsored investment securities	(25,893)	(131,844)
Proceeds from sales and maturities of sponsored investment securities	30,363	105,826
Additions to property and equipment	(20,635)	(25,211)
Fund adoption transaction	(2,200)	(1,447)
Net cash used in investing activities	(18,365)	(52,676)
Cash flows from financing activities:
Dividends paid	(108,249)	(86,754)
Repurchase of common stock	(63,277)	(96,145)
Excess tax benefits from share-based payment arrangements	5,357	16,465
Net cash used in financing activities	(166,169)	(166,434)
Net increase in cash and cash equivalents	46,039	41,122
Cash and cash equivalents at beginning of period	566,621	487,845
Cash and cash equivalents at end of period	$ 612,660	$ 528,967

Description of Business and Sig

Description of Business and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
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 and advisory services, investment product underwriting and distribution, and/or 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”), the Ivy Global Investors Fund SICAV (the “SICAV”) and its sub-funds (the “IGI 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”). The IGI Funds are regulated by Luxembourg’s Commission de Surveillance du Secteur Financier as an undertaking for collective investment in transferable securities (“UCITS”). 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. Services to the IGI Funds are provided under investment management and distribution agreements. 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 our revenues and results of operations. Basis of Presentation We have prepared the accompanying unaudited consolidated financial statements 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, 2014 (the “2014 Form 10-K”). The accompanying unaudited consolidated financial statements are prepared consistent with the accounting policies described in Note 2 to the consolidated financial statements included in our 2014 Form 10-K except as noted below. 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, 2015, the results of operations for the three and nine months ended September 30, 2015 and 2014, and cash flows for the nine months ended September 30, 2015 and 2014 in conformity with accounting principles generally accepted in the United States. The Company has classified its investments in certain sponsored funds as either equity method investments (when the Company owns between 20% and 50% of the fund) or as available for sale investments (when the Company owns less than 20% of the fund) as described in Note 4 to the unaudited consolidated financial statements. Effective July 1, 2015, $160.2 million of investments previously classified as available for sale investments were reclassified as equity method investments, representing seed investments in which the Company owns between 20% and 50% of the fund . P rior to July 1, 2015, the difference in accounting for these investments as available for sale investments compared to equity method investments was considered immaterial. However, due primarily to market action during the three-month period ended September 30, 2015, the difference in applying the equity method of accounting became more significant. As a result of this classification change, during the three months ended September 30, 2015, $2.1 million of unrealized losses were reclassified from other comprehensive income and recognized in the consolidated statement of income. In future periods, the Company will account for all investments in sponsored funds in which the Company owns between 20% and 50% as equity method securities. Consolidation We provide seed capital to our new investment products at the time we launch the products. These investment products include certain of the Advisors Funds and the Ivy Funds (“1940 Act Mutual Funds”), the SICAV and IGI Funds, limited liability companies (“LLCs”), and an open-end mutual fund organized in Canada (the “Canadian Mutual Fund”). Seeded investments in 1940 Act Mutual Funds and the Canadian Mutual Fund are organized under a series fund structure, whereby each open-ended mutual fund represents a separate share class of a legal entity organized under a statutory trust. The Company has determined that the 1940 Act Mutual Funds and the Canadian Mutual Fund are voting interest entities because the structure of the investment product is such that the voting rights held by the equity holders provide for equality among equity investors. To the extent material, these investment products would be consolidated if Company ownership, directly or indirectly, represents a majority interest. The Company has concluded that seed investments in the privately offered funds, which are structured as investment companies in the legal form of LLCs, are variable interest entities, but qualify for the deferral to certain provisions of Accounting Standards Codification (“ASC”) Subtopic 810-10, “ Consolidation — Overall,” afforded by Accounting Standards Update (“ASU”) 2010-10 , “Consolidation — Amendments for Certain Investment Funds” (the “Investment Company deferral”). The Company is not the primary beneficiary of the LLC investments as we do not absorb a majority of the expected variability of the LLC. The LLCs are investment companies and follow the guidance within ASC Topic 946, “ Financial Services — Investment Companies .” If the Company is determined to be the primary beneficiary of a LLC, the LLC would be consolidated on the Company’s financial statements to the extent material. The Company has determined the SICAV to be a voting interest entity, as its legal structure and the powers of its equity investors prevents the SICAV from meeting the characteristics of being a variable interest entity. To the extent material, the Company would be required to consolidate the SICAV if ownership of the SICAV, directly or indirectly, represents more than 50% of the outstanding voting shares of the SICAV.

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2015
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 Y

Accounting Pronouncements Not Yet Adopted	9 Months Ended
	Sep. 30, 2015
Accounting Pronouncements Not Yet Adopted
Accounting Pronouncements Not Yet Adopted	3. Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “ Revenue from Contracts with Customers .” ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This standard also specifies the accounting for certain costs to obtain or fulfill a contract with a customer. This ASU will supersede much of the existing revenue recognition guidance in accounting principles generally accepted in the United States and is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period; early application is permitted for the first interim period within annual reporting periods beginning after December 15, 2016. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating which transition method to apply and the estimated impact the adoption of this ASU will have on our consolidated financial statements and related disclosures. In February 2015, the FASB issued ASU 2015-02, “ Amendments to the Consolidation Analysis. ” The amendments in this ASU will affect all companies that are required to evaluate whether they should consolidate another entity. Additionally, the amendments in this ASU rescind the indefinite deferral of FASB Statement 167, “ Amendments to FASB Interpretation No. 46(r )” included in FASB ASU 2010-10, ASU 2015-02 will be effective for annual reporting periods after December 15, 2015, including interim periods within that reporting period. This standard permits the use of either a full retrospective or a modified retrospective approach. The Company believes that the adoption of this ASU on January 1, 2016, will result in an immaterial impact to our consolidated financial statements and related disclosures regarding our seeded investments in the 1940 Act Funds and the Canadian Mutual Fund. The Company is evaluating which approach to apply and the estimated impact the adoption of this ASU will have on our consolidated financial statements and related disclosures regarding our LLCs and our seeded investments in the SICAV and IGI Funds. In April 2015, the FASB issued ASU 2015-03, “ Simplifying the Presentation of Debt Issuance Costs. ” The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period; early adoption is permitted. The Company believes that the adoption of this ASU in 2016 will result in an immaterial impact to our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “ Customer’s Accounting for Fees Paid in a Cloud Computing Arrangemen t.” ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer would account for the software license element of the arrangement consistent with its accounting for the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer would account for the arrangement as a service contract. The proposed guidance would not change GAAP for a customer’s accounting of software license or service contracts. This standard will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015; early adoption is permitted. The Company believes that the adoption of this ASU in 2016 will result in an immaterial impact to our consolidated financial statements.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2015
Investment Securities
Investment Securities	4. Investment Securities Investment securities at September 30, 2015 and December 31, 2014 are as follows: Amortized Unrealized Unrealized September 30, 2015 cost gains losses Fair value (in thousands) Available for sale securities: Sponsored funds $ ) Sponsored privately offered funds — $ ) Equity method securities: Sponsored funds Sponsored privately offered funds Trading securities: Mortgage-backed securities Corporate bonds Common stock Sponsored funds Total investment securities $ Amortized Unrealized Unrealized December 31, 2014 cost gains losses Fair value (in thousands) Available for sale securities: Sponsored funds $ ) Sponsored privately offered funds — $ ) Trading securities: Mortgage-backed securities Common stock Sponsored funds Total investment securities $ Sponsored funds The Company has classified its investments in certain sponsored funds as either equity method investments (when the Company owns between 20% and 50% of the fund) or as available for sale investments (when the Company owns less than 20% of the fund). We do not hold a majority interest in any of our sponsored funds as of September 30, 2015. As a result, there are no sponsored funds consolidated in our financial statements. Sponsored privately offered funds The Company holds variable interests in, but is not the primary beneficiary of, certain sponsored privately offered funds. The Company held investments in these funds totaling $3.8 million as of September 30, 2015 and December 31, 2014, which is our maximum loss exposure. Purchases of trading securities during the nine months ended September 30, 2015 were $0.3 million. Sales of trading securities were $0.3 million for the same period. As described in Note 1 to the unaudited consolidated financial statements, effective July 1, 2015, $160.2 million of investments previously classified as available for sale securities were classified as equity method securities, representing seed investments in which the Company owns between 20% and 50% of the fund. As a result, during the three months ended September 30, 2015, $2.1 million of unrealized losses were reclassified from other comprehensive income and recognized in the consolidated statement of income. A summary of available for sale sponsored funds with fair values below carrying values at September 30, 2015 and December 31, 2014 is as follows: Less than 12 months 12 months or longer Total Unrealized Fair Unrealized Fair Unrealized September 30, 2015 Fair value losses value losses value losses (in thousands) Sponsored funds $ ) ) ) Less than 12 months 12 months or longer Total Unrealized Fair Unrealized Fair Unrealized December 31, 2014 Fair value losses value losses value losses (in thousands) Sponsored funds $ ) ) ) Based upon our assessment of these sponsored funds, the time frame the investments have been in a loss position and our intent to hold sponsored funds until they have recovered, we determined that a write-down was not necessary at September 30, 2015. A corporate bond accounted for as trading and held as of September 30, 2015 matures in 2018 and mortgage-backed securities accounted for as trading and held as of September 30, 2015 mature in 2022. 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-level 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 equity derivatives is measured based on active market broker quotes, evaluated broker quotes and evaluated prices from vendors. 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, 2015 and December 31, 2014 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Mortgage-backed securities $ — — Corporate bonds — — Common stock — — Sponsored funds — — Sponsored privately offered funds Total $ December 31, 2014 Level 1 Level 2 Level 3 Total (in thousands) Mortgage-backed securities $ — — Common stock — — Sponsored funds — — Sponsored privately offered funds Total $

Goodwill and Identifiable Intan

Goodwill and Identifiable Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Identifiable Intangible Assets
Goodwill and Identifiable Intangible Assets	5. 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) at September 30, 2015 and December 31, 2014 are as follows: September 30, December 31, 2015 2014 (in thousands) Goodwill $ Mutual fund management advisory contracts Mutual fund management subadvisory contracts Total identifiable intangible assets Total $

Indebtedness

Indebtedness	9 Months Ended
	Sep. 30, 2015
Indebtedness
Indebtedness	6. Indebtedness Debt is reported at its carrying amount in the consolidated balance sheet. The fair value of the Company’s outstanding indebtedness is approximately $205.0 million at September 30, 2015 compared to the carrying value of $190.0 million. Fair value is calculated based on Level 2 inputs.

Income Tax Uncertainties

Income Tax Uncertainties	9 Months Ended
	Sep. 30, 2015
Income Tax Uncertainties
Income Tax Uncertainties	7. Income Tax Uncertainties As of January 1, 2015 and September 30, 2015, the Company had unrecognized tax benefits, including penalties and interest, of $11.6 million ($8.3 million net of federal benefit) and $12.5 million ($9.1 million net of federal benefit), respectively, that if recognized, would impact the Company’s effective tax rate. In the accompanying consolidated balance sheet, unrecognized tax benefits that are not expected to be settled within the next 12 months are included in other liabilities; unrecognized tax benefits that are expected to be settled within the next 12 months are included in income taxes payable; unrecognized tax benefits that reduce a net operating loss, similar tax loss, or tax credit carryforward are presented as a reduction to either current or noncurrent deferred income taxes, as applicable. 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, 2015, the total amount of accrued interest and penalties related to uncertain tax positions recognized in the consolidated balance sheet was $3.5 million ($2.9 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, 2015 was $0.1 million. The total amount of accrued penalties and interest related to uncertain tax positions at September 30, 2015 of $3.6 million ($2.9 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 2012, 2013 and 2014 federal income tax returns are open tax years that remain subject to potential future audit. State income tax returns for all years after 2011 and, in certain states, income tax returns for 2011, 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. The Company’s liability for unrecognized tax benefits, including penalties and interest, is not expected to decrease significantly upon settlement of these audits. Additionally, such settlements are not anticipated to have a significant impact on the results of operations.

Pension Plan and Postretirement

Pension Plan and Postretirement Benefits Other Than Pension	9 Months Ended
	Sep. 30, 2015
Pension Plan and Postretirement Benefits Other Than Pension
Pension Plan and Postretirement Benefits Other Than Pension	8. 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 our advisors, who are independent contractors. 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 were as follows: Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Three months ended September 30, Three months ended September 30, Nine months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 (in thousands) (in thousands) Components of net periodic benefit cost: Service cost $ Interest cost Expected return on plan assets ) ) — — ) ) — — Actuarial (gain) loss amortization — ) — ) Prior service cost amortization Transition obligation amortization — — — — Total(1) $ (1) Approximately 60% of net periodic pension and other postretirement benefit costs are included in compensation and related costs on the consolidated statements of income, while the remainder is included in underwriting and distribution expense. During the first quarter of 2015, we contributed $20.0 million to the Pension Plan.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity 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, 2015 2014 2015 2014 (in thousands, except per share amounts) Net income $ Weighted average shares outstanding, basic and diluted Earnings per share, basic and diluted $ Dividends On July 15, 2015, the Board of Directors approved a dividend on our common stock in the amount of $0.43 per share to stockholders of record on October 12, 2015 to be paid on November 2, 2015. The total dividend to be paid is approximately $35.7 million and is included in other current liabilities as of September 30, 2015. Common Stock Repurchases The Board of Directors 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 812,764 shares and 614,062 shares repurchased in the open market or privately during the three months ended September 30, 2015 and 2014, respectively, which includes 108 shares and 1,962 shares, respectively, repurchased from employees who tendered shares to cover their minimum income tax withholdings with respect to vesting of stock awards during these same reporting periods. There were 1,435,355 shares and 1,522,270 shares repurchased in the open market or privately during the nine months ended September 30, 2015 and 2014, respectively, which includes 312,199 shares and 428,081 shares, respectively, repurchased from employees who tendered shares to cover their minimum income tax withholdings with respect to vesting of stock awards during each of these two periods. Accumulated Other Comprehensive Income (Loss) The following tables summarize other comprehensive income (loss) activity for the three and nine months ended September 30, 2015 and September 30, 2014. Three months ended September 30, 2015 Unrealized (gains) losses on investment securities Change in valuation allowance for unrealized gains (losses) on investment securities Pension and postretirement benefits Total accumulated other comprehensive income (loss) (in thousands) Balance at June 30, 2015 $ ) ) ) ) Other comprehensive loss before reclassification ) ) — ) Amount reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) ) ) ) Balance at September 30, 2015 $ ) ) ) ) Three months ended September 30, 2014 Unrealized (gains) losses on investment securities Change in valuation allowance for unrealized gains (losses) on investment securities Pension and postretirement benefits Total accumulated other comprehensive income (loss) (in thousands) Balance at June 30, 2014 $ ) ) Other comprehensive income before reclassification ) ) — ) Amount reclassified from accumulated other comprehensive income ) ) ) Net current period other comprehensive income ) ) ) Balance at September 30, 2014 $ ) ) ) Nine months ended September 30, 2015 Unrealized (gains) losses on investment securities Change in valuation allowance for unrealized gains (losses) on investment securities Pension and postretirement benefits Total accumulated other comprehensive income (loss) (in thousands) Balance at December 31, 2014 $ ) ) ) ) Other comprehensive loss before reclassification ) ) — ) Amount reclassified from accumulated other comprehensive income ) ) Net current period other comprehensive income (loss) ) ) ) Balance at September 30, 2015 $ ) ) ) ) Nine months ended September 30, 2014 Unrealized (gains) losses on investment securities Change in valuation allowance for unrealized gains (losses) on investment securities Pension and postretirement benefits Total accumulated other comprehensive income (loss) (in thousands) Balance at December 31, 2013 $ ) ) Other comprehensive income before reclassification — Amount reclassified from accumulated other comprehensive income ) ) ) Net current period other comprehensive income ) ) ) Balance at September 30, 2014 $ ) ) ) Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow. For the three months ended September 30, 2015 Pre-tax Tax (expense) benefit Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Sponsored funds investment losses $ ) ) Investment and other income (loss) Valuation allowance — ) ) Provision for income taxes Amortization of pension and postretirement benefits ) ) Underwriting and distribution expense and Compensation and related costs Total $ ) ) For the three months ended September 30, 2014 Pre-tax Tax (expense) benefit Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Realized gain on sale of sponsored investment securities $ ) Investment and other income (loss) Valuation allowance — Provision for income taxes Amortization of pension and postretirement benefits ) ) Underwriting and distribution expense and Compensation and related costs Total $ For the nine months ended September 30, 2015 Pre-tax Tax (expense) benefit Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Sponsored funds investment gains $ ) Investment and other income (loss) Valuation allowance — Provision for income taxes Amortization of pension and postretirement benefits ) ) Underwriting and distribution expense and Compensation and related costs Total $ ) ) For the nine months ended September 30, 2014 Pre-tax Tax (expense) benefit Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Realized gain on sale of sponsored investment securities $ ) Investment and other income (loss) Valuation allowance — Provision for income taxes Amortization of pension and postretirement benefits ) ) Underwriting and distribution expense and Compensation and related costs Total $

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2015
Contingencies
Contingencies	10. 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 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’s judgment is required related to contingent liabilities because the outcomes are difficult to predict. In our opinion, the likelihood that any pending legal proceeding, regulatory investigation, claim, or other contingency will have a material adverse effect on our business, financial condition or results of operations is remote.

Description of Business and S21

Description of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Description of Business and Significant Accounting Policies
Basis of Presentation	Basis of Presentation We have prepared the accompanying unaudited consolidated financial statements 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, 2014 (the “2014 Form 10-K”). The accompanying unaudited consolidated financial statements are prepared consistent with the accounting policies described in Note 2 to the consolidated financial statements included in our 2014 Form 10-K except as noted below. 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, 2015, the results of operations for the three and nine months ended September 30, 2015 and 2014, and cash flows for the nine months ended September 30, 2015 and 2014 in conformity with accounting principles generally accepted in the United States. The Company has classified its investments in certain sponsored funds as either equity method investments (when the Company owns between 20% and 50% of the fund) or as available for sale investments (when the Company owns less than 20% of the fund) as described in Note 4 to the unaudited consolidated financial statements. Effective July 1, 2015, $160.2 million of investments previously classified as available for sale investments were reclassified as equity method investments, representing seed investments in which the Company owns between 20% and 50% of the fund. Prior to July 1, 2015, the difference in accounting for these investments as available for sale investments compared to equity method investments was considered immaterial. However, due primarily to market action during the three-month period ended September 30, 2015, the difference in applying the equity method of accounting became more significant. As a result of this classification change, during the three months ended September 30, 2015, $2.1 million of unrealized losses were reclassified from other comprehensive income and recognized in the consolidated statement of income. In future periods, the Company will account for all investments in sponsored funds in which the Company owns between 20% and 50% as equity method securities.
Consolidation	Consolidation We provide seed capital to our new investment products at the time we launch the products. These investment products include certain of the Advisors Funds and the Ivy Funds (“1940 Act Mutual Funds”), the SICAV and IGI Funds, limited liability companies (“LLCs”), and an open-end mutual fund organized in Canada (the “Canadian Mutual Fund”). Seeded investments in 1940 Act Mutual Funds and the Canadian Mutual Fund are organized under a series fund structure, whereby each open-ended mutual fund represents a separate share class of a legal entity organized under a statutory trust. The Company has determined that the 1940 Act Mutual Funds and the Canadian Mutual Fund are voting interest entities because the structure of the investment product is such that the voting rights held by the equity holders provide for equality among equity investors. To the extent material, these investment products would be consolidated if Company ownership, directly or indirectly, represents a majority interest. The Company has concluded that seed investments in the privately offered funds, which are structured as investment companies in the legal form of LLCs, are variable interest entities, but qualify for the deferral to certain provisions of Accounting Standards Codification (“ASC”) Subtopic 810-10, “ Consolidation — Overall,” afforded by Accounting Standards Update (“ASU”) 2010-10 , “Consolidation — Amendments for Certain Investment Funds” (the “Investment Company deferral”). The Company is not the primary beneficiary of the LLC investments as we do not absorb a majority of the expected variability of the LLC. The LLCs are investment companies and follow the guidance within ASC Topic 946, “ Financial Services — Investment Companies .” If the Company is determined to be the primary beneficiary of a LLC, the LLC would be consolidated on the Company’s financial statements to the extent material. The Company has determined the SICAV to be a voting interest entity, as its legal structure and the powers of its equity investors prevents the SICAV from meeting the characteristics of being a variable interest entity. To the extent material, the Company would be required to consolidate the SICAV if ownership of the SICAV, directly or indirectly, represents more than 50% of the outstanding voting shares of the SICAV.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2015
Investment Securities
Schedule of investment securities	Amortized Unrealized Unrealized September 30, 2015 cost gains losses Fair value (in thousands) Available for sale securities: Sponsored funds $ ) Sponsored privately offered funds — $ ) Equity method securities: Sponsored funds Sponsored privately offered funds Trading securities: Mortgage-backed securities Corporate bonds Common stock Sponsored funds Total investment securities $ Amortized Unrealized Unrealized December 31, 2014 cost gains losses Fair value (in thousands) Available for sale securities: Sponsored funds $ ) Sponsored privately offered funds — $ ) Trading securities: Mortgage-backed securities Common stock Sponsored funds Total investment securities $
Summary of available for sale sponsored funds with fair values below carrying values	Less than 12 months 12 months or longer Total Unrealized Fair Unrealized Fair Unrealized September 30, 2015 Fair value losses value losses value losses (in thousands) Sponsored funds $ ) ) ) Less than 12 months 12 months or longer Total Unrealized Fair Unrealized Fair Unrealized December 31, 2014 Fair value losses value losses value losses (in thousands) Sponsored funds $ ) ) )
Schedule of fair value of investment securities	September 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Mortgage-backed securities $ — — Corporate bonds — — Common stock — — Sponsored funds — — Sponsored privately offered funds Total $ December 31, 2014 Level 1 Level 2 Level 3 Total (in thousands) Mortgage-backed securities $ — — Common stock — — Sponsored funds — — Sponsored privately offered funds Total $

Goodwill and Identifiable Int23

Goodwill and Identifiable Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Identifiable Intangible Assets
Schedule of goodwill and identifiable intangible assets	September 30, December 31, 2015 2014 (in thousands) Goodwill $ Mutual fund management advisory contracts Mutual fund management subadvisory contracts Total identifiable intangible assets Total $

Pension Plan and Postretireme24

Pension Plan and Postretirement Benefits Other Than Pension (Tables)	9 Months Ended
	Sep. 30, 2015
Pension Plan and Postretirement Benefits Other Than Pension
Schedule of components of net periodic pension and other postretirement costs	Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Three months ended September 30, Three months ended September 30, Nine months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 (in thousands) (in thousands) Components of net periodic benefit cost: Service cost $ Interest cost Expected return on plan assets ) ) — — ) ) — — Actuarial (gain) loss amortization — ) — ) Prior service cost amortization Transition obligation amortization — — — — Total(1) $ (1) Approximately 60% of net periodic pension and other postretirement benefit costs are included in compensation and related costs on the consolidated statements of income, while the remainder is included in underwriting and distribution expense.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity
Components of basic and diluted earnings per share	Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Net income $ Weighted average shares outstanding, basic and diluted Earnings per share, basic and diluted $
Summary of other comprehensive income (loss) activity	Three months ended September 30, 2015 Unrealized (gains) losses on investment securities Change in valuation allowance for unrealized gains (losses) on investment securities Pension and postretirement benefits Total accumulated other comprehensive income (loss) (in thousands) Balance at June 30, 2015 $ ) ) ) ) Other comprehensive loss before reclassification ) ) — ) Amount reclassified from accumulated other comprehensive income Net current period other comprehensive income (loss) ) ) ) Balance at September 30, 2015 $ ) ) ) ) Three months ended September 30, 2014 Unrealized (gains) losses on investment securities Change in valuation allowance for unrealized gains (losses) on investment securities Pension and postretirement benefits Total accumulated other comprehensive income (loss) (in thousands) Balance at June 30, 2014 $ ) ) Other comprehensive income before reclassification ) ) — ) Amount reclassified from accumulated other comprehensive income ) ) ) Net current period other comprehensive income ) ) ) Balance at September 30, 2014 $ ) ) ) Nine months ended September 30, 2015 Unrealized (gains) losses on investment securities Change in valuation allowance for unrealized gains (losses) on investment securities Pension and postretirement benefits Total accumulated other comprehensive income (loss) (in thousands) Balance at December 31, 2014 $ ) ) ) ) Other comprehensive loss before reclassification ) ) — ) Amount reclassified from accumulated other comprehensive income ) ) Net current period other comprehensive income (loss) ) ) ) Balance at September 30, 2015 $ ) ) ) ) Nine months ended September 30, 2014 Unrealized (gains) losses on investment securities Change in valuation allowance for unrealized gains (losses) on investment securities Pension and postretirement benefits Total accumulated other comprehensive income (loss) (in thousands) Balance at December 31, 2013 $ ) ) Other comprehensive income before reclassification — Amount reclassified from accumulated other comprehensive income ) ) ) Net current period other comprehensive income ) ) ) Balance at September 30, 2014 $ ) ) )
Summary of reclassifications from accumulated other comprehensive income (loss) and included in net income	For the three months ended September 30, 2015 Pre-tax Tax (expense) benefit Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Sponsored funds investment losses $ ) ) Investment and other income (loss) Valuation allowance — ) ) Provision for income taxes Amortization of pension and postretirement benefits ) ) Underwriting and distribution expense and Compensation and related costs Total $ ) ) For the three months ended September 30, 2014 Pre-tax Tax (expense) benefit Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Realized gain on sale of sponsored investment securities $ ) Investment and other income (loss) Valuation allowance — Provision for income taxes Amortization of pension and postretirement benefits ) ) Underwriting and distribution expense and Compensation and related costs Total $ For the nine months ended September 30, 2015 Pre-tax Tax (expense) benefit Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Sponsored funds investment gains $ ) Investment and other income (loss) Valuation allowance — Provision for income taxes Amortization of pension and postretirement benefits ) ) Underwriting and distribution expense and Compensation and related costs Total $ ) ) For the nine months ended September 30, 2014 Pre-tax Tax (expense) benefit Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Realized gain on sale of sponsored investment securities $ ) Investment and other income (loss) Valuation allowance — Provision for income taxes Amortization of pension and postretirement benefits ) ) Underwriting and distribution expense and Compensation and related costs Total $

Description of Business and S26

Description of Business and Significant Accounting Policies (Details) $ in Millions	3 Months Ended
	Sep. 30, 2015USD ($)
Description of Business and Significant Accounting Policies
Transfers to equity method securities	$ 160.2
Unrealized losses	$ 2.1

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Available for sale securities:
Amortized cost	$ 48,543	$ 48,543	$ 162,425
Unrealized gains	735	735	4,237
Unrealized losses	(6,376)	(6,376)	(5,392)
Fair value	42,902	42,902	161,270
Equity method securities	146,382	146,382
Trading securities:
Fair value	30,153	30,153	82,013
Total investment securities	219,437	219,437	243,283
Purchases of trading securities		300
Sales and maturities of trading securities		300
Transfers to equity method securities	160,200
Unrealized losses	2,100
Sponsored funds
Available for sale securities:
Amortized cost	48,043	48,043	160,675
Unrealized gains	412	412	2,177
Unrealized losses	(6,376)	(6,376)	(5,392)
Fair value	42,079	42,079	157,460
Equity method securities	143,438	143,438
Trading securities:
Fair value	30,045	30,045	81,913
Total investment securities	215,562	215,562	239,373
Sponsored privately offered funds
Available for sale securities:
Amortized cost	500	500	1,750
Unrealized gains	323	323	2,060
Fair value	823	823	3,810
Equity method securities	2,944	2,944
Trading securities:
Total investment securities	3,767	3,767	3,810
Mortgage-backed securities
Trading securities:
Fair value	22	22	28
Total investment securities	22	22	28
Corporate bonds
Trading securities:
Fair value	6	6
Total investment securities	6	6
Common Stock
Trading securities:
Fair value	80	80	72
Total investment securities	$ 80	$ 80	$ 72

Investment Securities (Details

Investment Securities (Details 2) - Sponsored funds - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair value
Less than 12 months	$ 33,184	$ 66,858
12 months or longer	4,849	1,187
Total temporarily impaired securities	38,033	68,045
Unrealized losses
Less than 12 months	(5,300)	(5,362)
12 months or longer	(1,076)	(30)
Total Unrealized losses on temporarily impaired securities	$ (6,376)	$ (5,392)

Investment Securities (Detail29

Investment Securities (Details 3) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair value of investments
Total investment securities	$ 219,437	$ 243,283
Mortgage-backed securities
Fair value of investments
Total investment securities	22	28
Corporate bonds
Fair value of investments
Total investment securities	6
Common Stock
Fair value of investments
Total investment securities	80	72
Sponsored funds
Fair value of investments
Total investment securities	215,562	239,373
Sponsored privately offered funds
Fair value of investments
Total investment securities	3,767	3,810
Level 1
Fair value of investments
Total investment securities	219,365	243,215
Level 1 | Common Stock
Fair value of investments
Total investment securities	80	72
Level 1 | Sponsored funds
Fair value of investments
Total investment securities	215,562	239,373
Level 1 | Sponsored privately offered funds
Fair value of investments
Total investment securities	3,723	3,770
Level 2
Fair value of investments
Total investment securities	35	32
Level 2 | Mortgage-backed securities
Fair value of investments
Total investment securities	22	28
Level 2 | Corporate bonds
Fair value of investments
Total investment securities	6
Level 2 | Sponsored privately offered funds
Fair value of investments
Total investment securities	7	4
Level 3
Fair value of investments
Total investment securities	37	36
Level 3 | Sponsored privately offered funds
Fair value of investments
Total investment securities	$ 37	$ 36

Goodwill and Identifiable Int30

Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Goodwill and Identifiable Intangible Assets
Goodwill	$ 106,970	$ 106,970
Mutual fund management advisory contracts	42,748	42,753
Mutual fund management subadvisory contracts	8,400	8,400
Total identifiable intangible assets	51,148	51,153
Total goodwill and identifiable intangible assets	$ 158,118	$ 158,123

Indebtedness (Details)

Indebtedness (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Indebtedness
Fair value of outstanding indebtedness	$ 205,000
Summary of long-term debt
Total long-term debt	$ 190,000	$ 190,000

Income Tax Uncertainties (Detai

Income Tax Uncertainties (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Jan. 01, 2015
Income Tax Uncertainties
Unrecognized tax benefits, including penalties and interest that if recognized would impact effective tax rate	$ 12.5	$ 11.6
Unrecognized tax benefits, including penalties and interest, net of federal tax benefit that if recognized would affect effective tax rate	9.1	8.3
Accrued interest and penalties related to uncertain tax positions	3.6	3.5
Accrued interest and penalties related to uncertain tax positions, net of federal benefit	2.9	$ 2.9
Total expense of interest and penalties, net of federal benefit related to uncertain tax positions	$ 0.1

Pension Plan and Postretireme33

Pension Plan and Postretirement Benefits Other Than Pension (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Components of net periodic benefit cost:
Percentage of net periodic pension and other postretirement benefit costs included in Compensation and related costs				60.00%
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
Employer contributions		$ 20,000
Components of net periodic benefit cost:
Service cost	$ 3,020		$ 2,521	$ 9,061	$ 7,563
Interest cost	2,105		2,099	6,315	6,297
Expected return on plan assets	(3,628)		(3,504)	(10,884)	(10,512)
Actuarial (gain) loss amortization	1,293		373	3,879	1,121
Prior service cost amortization	115		117	345	351
Transition obligation amortization	1		1	3	3
Total	2,906		1,607	$ 8,719	4,823
Other Postretirement Benefits
Pension Plan and Postretirement Benefits Other than Pension
Age of employees after which the plan does not provide benefits				65 years
Components of net periodic benefit cost:
Service cost	227		180	$ 683	540
Interest cost	99		99	297	297
Actuarial (gain) loss amortization			(4)		(12)
Prior service cost amortization	5		14	15	42
Total	$ 331		$ 289	$ 995	$ 867

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 15, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Components of basic and diluted earnings per share
Net income		$ 48,058	$ 74,586	$ 182,616	$ 232,438
Weighted average shares outstanding - basic and diluted		83,469,000	84,242,000	83,709,000	84,775,000
Earnings per share:
Earnings per share, basic and diluted (in dollars per share)		$ 0.58	$ 0.89	$ 2.18	$ 2.74
Dividends
Dividends accrued, per share (in dollars per share)	$ 0.43			$ 1.29
Dividends to be paid		$ 35,700		$ 35,700
Common stock repurchases
Shares repurchased in the open market or privately		812,764	614,062	1,435,355	1,522,270
Shares repurchased from employees to cover minimum income tax withholdings		108	1,962	312,199	428,081

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period			$ 786,084
Net current period other comprehensive income (loss)			(1,721)
Balance at the end of the period	$ 836,937		836,937
Accumulated Other Comprehensive Income(Loss)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	(51,731)	$ (13,756)	(50,443)	$ (15,859)
Other comprehensive income (loss) before reclassification	(3,427)	(3,674)	(3,807)	377
Amount reclassified from accumulated other comprehensive income	2,994	(973)	2,086	(2,921)
Net current period other comprehensive income (loss)	(433)	(4,647)	(1,721)	(2,544)
Balance at the end of the period	(52,164)	(18,403)	(52,164)	(18,403)
Unrealized (gains) losses on investment securities
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	(2,713)	4,078	(727)	3,150
Other comprehensive income (loss) before reclassification	(2,165)	(2,317)	(2,387)	239
Amount reclassified from accumulated other comprehensive income	1,330	(813)	(434)	(2,441)
Net current period other comprehensive income (loss)	(835)	(3,130)	(2,821)	(2,202)
Balance at the end of the period	(3,548)	948	(3,548)	948
Change in valuation allowance for unrealized gains (losses) on investment securities
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	(2,649)	1,353	(1,471)	810
Other comprehensive income (loss) before reclassification	(1,262)	(1,357)	(1,420)	138
Amount reclassified from accumulated other comprehensive income	776	(475)	(244)	(1,427)
Net current period other comprehensive income (loss)	(486)	(1,832)	(1,664)	(1,289)
Balance at the end of the period	(3,135)	(479)	(3,135)	(479)
Pension and postretirement benefits
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	(46,369)	(19,187)	(48,245)	(19,819)
Amount reclassified from accumulated other comprehensive income	888	315	2,764	947
Net current period other comprehensive income (loss)	888	315	2,764	947
Balance at the end of the period	$ (45,481)	$ (18,872)	$ (45,481)	$ (18,872)

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassifications from accumulated other comprehensive income (loss)
Reclassifications included in net income:
Pre-tax	$ (3,533)	$ 789	$ (3,556)	$ 2,370
Tax (expense) benefit	539	184	1,470	551
Net of tax	(2,994)	973	(2,086)	2,921
Sponsored funds investment gains and losses | Investment and other income (loss) | Reclassifications from accumulated other comprehensive income (loss)
Reclassifications included in net income:
Pre-tax	(2,119)	1,290	685	3,875
Tax (expense) benefit	789	(477)	(251)	(1,434)
Net of tax	(1,330)	813	434	2,441
Change in valuation allowance for unrealized gains (losses) on investment securities
Reclassifications included in net income:
Net of tax	(776)	475	244	1,427
Change in valuation allowance for unrealized gains (losses) on investment securities | Provision for income taxes | Reclassifications from accumulated other comprehensive income (loss)
Reclassifications included in net income:
Tax (expense) benefit	(776)	475	244	1,427
Net of tax	(776)	475	244	1,427
Pension and postretirement benefits
Reclassifications included in net income:
Net of tax	(888)	(315)	(2,764)	(947)
Pension and postretirement benefits | Underwriting and distribution expense and Compensation and related costs | Reclassifications from accumulated other comprehensive income (loss)
Reclassifications included in net income:
Pre-tax	(1,414)	(501)	(4,241)	(1,505)
Tax (expense) benefit	526	186	1,477	558
Net of tax	$ (888)	$ (315)	$ (2,764)	$ (947)