Waddell & Reed Financial (WDR) 10-K 22 Feb 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Feb. 08, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	WADDELL & REED FINANCIAL INC
Entity Central Index Key	1,052,100
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,410
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		76,332,069
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 231,997	$ 207,829
Cash and cash equivalents - restricted	59,558	28,156
Investment securities	617,135	700,492
Receivables:
Funds and separate accounts	18,112	25,664
Customers and other	151,515	131,108
Prepaid expenses and other current assets	27,164	25,593
Total current assets	1,105,481	1,118,842
Property and equipment, net	63,429	87,667
Goodwill and identifiable intangible assets	145,869	147,069
Deferred income taxes	12,321	13,308
Other non-current assets	16,979	17,476
Total assets	1,344,079	1,384,362
Liabilities:
Accounts payable	26,253	38,998
Payable to investment companies for securities	100,085	43,422
Payable to third party brokers	19,891	25,153
Payable to customers	86,184	66,830
Short-term notes payable		94,996
Accrued compensation	54,129	47,643
Other current liabilities	51,580	44,797
Total current liabilities	338,122	361,839
Long-term debt	94,854	94,783
Accrued pension and postretirement costs	798	15,137
Other non-current liabilities	15,392	25,210
Total liabilities	449,166	496,969
Redeemable noncontrolling interests	11,463	14,509
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; 76,790 shares outstanding (82,687 at December 31, 2017)	997	997
Additional paid-in capital	311,264	301,410
Retained earnings	1,198,445	1,092,394
Cost of 22,911 common shares in treasury (17,014 at December 31, 2017)	(627,587)	(522,441)
Accumulated other comprehensive income	331	524
Total stockholders’ equity	883,450	872,884
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$ 1,344,079	$ 1,384,362

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2018	Dec. 31, 2017
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	76,790	82,687
Common shares in treasury	22,911	17,014

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Total Revenues	$ 1,160,301	$ 1,157,144	$ 1,239,023
Operating expenses:
Distribution	456,832	432,264	485,981
Compensation and benefits (including share-based compensation of $51,565, $57,716 and $51,514, respectively)	263,329	271,276	267,839
General and administrative	73,643	88,951	80,820
Technology	65,275	66,078	63,045
Occupancy	27,197	30,721	31,406
Marketing and advertising	10,323	12,425	13,080
Depreciation	25,649	20,983	18,358
Subadvisory fees	14,805	13,174	9,572
Intangible asset impairment	1,200	1,500	9,749
Total	938,253	937,372	979,850
Operating income	222,048	219,772	259,173
Investment and other income (loss)	22,705	37,084	(8,058)
Interest expense	(6,461)	(11,279)	(11,122)
Income before provision for income taxes	238,292	245,577	239,993
Provision for income taxes	55,480	101,368	81,884
Net income	182,812	144,209	158,109
Net (loss) income attributable to redeemable noncontrolling interests	(776)	2,930	1,414
Net income attributable to Waddell & Reed Financial, Inc.	$ 183,588	$ 141,279	$ 156,695
Net income per share attributable to Waddell and Reed Financial, Inc. common shareholders, basic and diluted:	$ 2.28	$ 1.69	$ 1.90
Weighted average shares outstanding, basic and diluted:	80,468	83,573	82,668
Investment management fees
Revenues:
Total Revenues	$ 507,906	$ 531,850	$ 557,112
Underwriting and distribution fees
Revenues:
Total Revenues	550,010	518,699	561,670
Shareholder service fees
Revenues:
Total Revenues	$ 102,385	$ 106,595	$ 120,241

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Income
Compensation and benefits, share-based compensation	$ 51,565	$ 57,716	$ 51,514

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 182,812	$ 144,209	$ 158,109
Other comprehensive income:
Unrealized gain (loss) on available for sale investment securities during the period, net of income tax expense (benefit) of $2, $(956) and $(2), respectively	13	7,505	(391)
Postretirement benefit, net of income tax expense (benefit) of $202, $(99) and $(718), respectively	642	(224)	(1,220)
Comprehensive income	183,467	151,490	156,498
Comprehensive (loss) income attributable to redeemable noncontrolling interests	(776)	2,930	1,414
Comprehensive income attributable to Waddell & Reed Financial, Inc.	$ 184,243	$ 148,560	$ 155,084

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income
Unrealized gain (loss) of available for sale investment securities during the period, income tax expense (benefit)	$ 2	$ (956)	$ (2)
Postretirement benefit, income tax expense (benefit)	$ 202	$ (99)	$ (718)

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, 2015	$ 997	$ 331,611	$ 1,085,248	$ (566,256)	$ (5,145)	$ 846,455
Balance (in shares) at Dec. 31, 2015	99,701
Increase (Decrease) in Stockholders' Equity
Net income (loss)			156,695			156,695
Recognition of equity compensation		51,382	132			51,514
Net issuance/forfeiture of nonvested shares		(84,741)		84,741
Dividends accrued, $1.84, $1.63 and $1.00 per share for 2016, 2017 and 2018, respectively			(152,953)			(152,953)
Tax impact of share-based payment arrangements		(6,344)				(6,344)
Repurchase of common stock				(49,753)		(49,753)
Other comprehensive income (loss)					(1,612)	(1,612)
Balance at the end of the period at Dec. 31, 2016	$ 997	291,908	1,089,122	(531,268)	(6,757)	844,002
Balance (in shares) at Dec. 31, 2016	99,701
Increase (Decrease) in Redeemable Noncontrolling Interest
Adoption of consolidation guidance on January 1, 2016 - redeemable noncontrolling interests in sponsored funds						14,330
Net income (loss)						1,414
Net redemption of redeemable noncontrolling interests in sponsored funds						(5,091)
Balance at the end of the period at Dec. 31, 2016						10,653
Increase (Decrease) in Stockholders' Equity
Net income (loss)			141,279			141,279
Recognition of equity compensation		50,593	690			51,283
Net issuance/forfeiture of nonvested shares		(44,595)		44,595
Dividends accrued, $1.84, $1.63 and $1.00 per share for 2016, 2017 and 2018, respectively			(136,497)			(136,497)
Repurchase of common stock				(35,768)		(35,768)
Other comprehensive income (loss)					7,281	7,281
Balance at the end of the period at Dec. 31, 2017	$ 997	301,410	1,092,394	(522,441)	524	872,884
Balance (in shares) at Dec. 31, 2017	99,701
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						2,930
Net subscription of redeemable noncontrolling interests in sponsored funds						926
Balance at the end of the period at Dec. 31, 2017						14,509
Increase (Decrease) in Stockholders' Equity
Adoption of new accounting principle guidance		3,504	(2,200)			1,304
Net income (loss)			183,588			183,588
Recognition of equity compensation		40,598	1,383			41,981
Net issuance/forfeiture of nonvested shares		(30,744)		30,744
Dividends accrued, $1.84, $1.63 and $1.00 per share for 2016, 2017 and 2018, respectively			(79,768)			(79,768)
Repurchase of common stock				(135,890)		(135,890)
Other comprehensive income (loss)					655	655
Balance at the end of the period at Dec. 31, 2018	$ 997	$ 311,264	1,198,445	$ (627,587)	331	883,450
Balance (in shares) at Dec. 31, 2018	99,701
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						(776)
Net redemption of redeemable noncontrolling interests in sponsored funds						(2,270)
Balance at the end of the period at Dec. 31, 2018						$ 11,463
Increase (Decrease) in Stockholders' Equity
Adoption of new accounting principle guidance | ASU 2016-01			812		(812)
Adoption of new accounting principle guidance | ASU 2018-02			$ 36		$ (36)

Consolidated Statement of Sto_2

Consolidated Statement of Stockholders’ Equity (Parenthetical) - $ / shares	1 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statement of Stockholders’ Equity
Dividends accrued (in dollars per share)	$ 0.25	$ 1	$ 1.63	$ 1.84

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 182,812	$ 144,209	$ 158,109
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,278	20,983	18,359
Write-down of impaired assets	1,538	1,500	9,749
Amortization of deferred sales commissions	3,348	4,855	23,601
Share-based compensation	51,565	57,716	51,514
Investments loss (gain), net	26,449	(17,104)	(12,075)
Net purchases of trading and equity securities	(30,237)	(43,714)	(24,352)
Deferred income taxes	783	20,481	1,982
Pension and postretirement plan benefits	(15,380)	(17,714)	3,166
Net change in equity securities and trading debt securities held by consolidated sponsored funds	81,119	(101,457)	(79,065)
Other	1,158	3,276	(2,523)
Changes in assets and liabilities:
Customer and other receivables	(20,407)	(3,013)	92,565
Payable to investment companies for securities and payable to customers	76,017	(26,357)	(97,459)
Receivables from funds and separate accounts	7,552	1,517	7,218
Other assets	2,194	10,134	2,255
Accounts payable and payable to third party brokers	(18,007)	4,395	(22,948)
Other liabilities	(21,767)	(8,856)	(42,192)
Net cash provided by operating activities	357,015	50,851	87,904
Cash flows from investing activities:
Purchases of available for sale and equity method securities	(113,975)	(365,770)	(72,096)
Proceeds from sales of available for sale and equity method securities	1,157	160,158	156,965
Proceeds from maturities of available for sale securities	125,727
Additions to property and equipment	(2,566)	(6,783)	(15,691)
Net cash of sponsored funds on consolidation			6,887
Other			(194)
Net cash provided by (used in) investing activities	10,343	(212,395)	75,871
Cash flows from financing activities:
Dividends paid	(81,215)	(154,042)	(152,830)
Repurchase of common stock	(133,378)	(35,768)	(49,753)
Repayment of short-term debt, net of debt issuance costs	(94,925)
Net subscriptions, (redemptions, distributions and deconsolidations) of redeemable noncontrolling interests in sponsored funds	(2,270)	926	(3,473)
Other		174	3,145
Net cash used in financing activities	(311,788)	(188,710)	(202,911)
Net increase (decrease) in cash and cash equivalents	55,570	(350,254)	(39,136)
Cash, cash equivalents, and restricted cash at beginning of period	235,985	586,239	625,375
Cash, cash equivalents, and restricted cash at end of period	291,555	235,985	586,239
Cash paid for:
Income taxes, net	59,147	85,299	76,982
Interest	$ 7,948	$ 10,299	$ 10,289

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	WADDELL & REED FINANCIAL, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2018, 2017 and 2016 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Amounts in the accompanying financial statements and notes are rounded to the nearest thousand unless otherwise stated. Certain amounts in the prior years’ financial statements have been reclassified for consistent presentation. The Company operates in one business segment as the Company’s management utilizes a consolidated approach to assess performance and allocate resources. Effective January 1, 2018, the Company changed the presentation of certain line items in the consolidated statements of income that are intended to improve the transparency of the Company’s financial statements through clearer alignment of operating expenses with financial statement captions. Specifically, the Company revised its accounting policy related to the reporting of indirect underwriting and distribution expenses in the former underwriting and distribution caption and certain expenses historically reported as general and administrative. Expenses previously recorded as underwriting and distribution expenses were retrospectively reclassified into (a) the following existing operating expense captions: Compensation and benefits and General and administrative, and (b) the following newly created operating expense captions: Distribution, Technology, Occupancy, and Marketing and advertising. Certain expenses historically reported as general and administrative were retrospectively reclassified into the following newly created operating expense captions: Technology, Occupancy, and Marketing and advertising. The Company considers the change in policy to be preferable and does not consider the change to be material to its consolidated financial statements. These changes were applied retrospectively to all periods presented and do not affect net income attributable to the Company. The Company also adopted Accounting Standards Update (“ASU”) 2017-07, “ Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ”. As a result, the Company retrospectively reclassified all net periodic pension costs, other than the historical service cost, from Compensation and benefits to Investment and other income (loss) within the consolidated statements of income. The reclassification of expenses as a result of the adoption of ASU 2017-07 does not affect net income attributable to the Company. Consolidation In the normal course of our business, we sponsor and manage various types of investment products. These investment products include open-end mutual funds, a closed-end mutual fund, privately offered funds, exchange-traded managed funds, and a Luxembourg SICAV. When creating and launching a new investment product, we typically fund the initial cash investment, commonly referred to as “seeding,” to allow the investment product the ability to generate an investment performance track record so that it is able to attract third party investors. Our initial investment in a new product typically represents 100% of the ownership in that product. We generally redeem our investment in seeded products when the related product establishes a sufficient track record, when third party investments in the related product are sufficient to sustain the strategy, or when a decision is made to no longer pursue the strategy. The length of time we hold a majority interest in a product varies based on a number of factors, including market demand, market conditions and investment performance. Our exposure to risk in these investment products is generally limited to any equity investment we have in the product and any earned but uncollected management or other fund-related service fees. In accordance with financial accounting standards, we consolidate certain sponsored investment products in which we have a controlling interest or the investment product meets the criteria of a variable interest entity (“VIE”) and we are deemed to be the primary beneficiary. In order to make this determination, an analysis is performed to determine if the investment product is a VIE or a voting interest entity (“VOE”). Assessing if an entity is a VIE or VOE involves judgment and analysis on an entity by entity basis. Factors included in this assessment include the legal organization of the entity, the Company’s contractual involvement with the entity and any implications resulting from or associated with related parties’ involvement with the entity. A VIE is an entity which does not have adequate equity to finance its activities without subordinated financial support, the equity investors do not have the normal characteristics of equity investors for a potential controlling financial interest as a group, or the voting rights are not proportional to their obligations to absorb the expected losses or their rights to receive the expected residual returns of the entity. The Company is deemed to be the primary beneficiary if it absorbs a majority of the VIE’s expected losses, expected residual returns, or both. If the Company is the primary beneficiary of a VIE, we are required to consolidate the assets, liabilities, results of operations and cash flows of the VIE into our consolidated financial statements. If an entity does not meet the criteria and is not considered a VIE, it is treated as a VOE, which is subject to traditional consolidation concepts based on ownership rights. Sponsored investment products that are considered VOEs are consolidated if we have a controlling financial interest in the entity absent substantive investor rights to replace the investment manager of the entity (kick-out rights). Use of Estimates GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and accompanying notes, and related disclosures of commitments and contingencies. Estimates are used for, but are not limited to, depreciation and amortization, income taxes, valuation of assets, pension and postretirement obligations, and contingencies. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Actual results could differ from our estimates. 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 and non-customers segregated in compliance with federal and other regulations. Disclosures About Fair Value of Financial Instruments Fair value of cash and cash equivalents, receivables and payables approximates carrying value. Fair values for investment securities are based on quoted market prices, where available. Otherwise, fair values for investment securities are based on Level 2 or Level 3 inputs detailed in Note 4. Fair value of long‑term debt is disclosed in Note 8. Investment Securities and Investments in Sponsored Funds Our investments are comprised of debt and equity securities, investments in sponsored funds and sponsored privately offered funds. Sponsored funds, which include the Funds and the IGI Funds, are investments we have made to provide seed capital for new investment products. 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 equity securities measured at fair value through net income (when the Company owns less than 20% of the fund). Unrealized gains and losses on debt securities classified as available for sale, net of related tax effects, are excluded from earnings until realized and are reported as a separate component of comprehensive income. For debt securities classified as trading and equity securities, unrealized gains and losses are included in earnings. Realized gains and losses are computed using the specific identification method for all investment securities, other than sponsored funds. For sponsored funds, realized gains and losses are computed using the average cost method. Substantially all of the Company’s equity method investees are investment companies that record their underlying investments at fair value. Therefore, under the equity method of accounting, our share of the investee's underlying net income or loss is predominantly representative of fair value adjustments in the investments held by the equity method investee. Our share of the investee's net income or loss is based on the most current information available and is recorded as a net gain or loss on investments within investment and other income (loss). Our available for sale debt securities are reviewed each quarter and adjusted for other than temporary declines in value. We consider factors affecting the issuer and the industry in which the issuer operates, general market trends including interest rates, and our ability and intent to hold an investment until it has recovered. Consideration is given to the length of time an investment’s market value has been below its amortized cost basis as well as prospects for recovery to the amortized cost basis. When a decline in the fair value of debt securities is determined to be other than temporary, the amount of the impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current‑period credit loss. If so, the other than temporary impairment recognized in earnings is equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If not, the portion of the impairment related to the credit loss is recognized in earnings while the portion of the impairment related to other factors is recognized in other comprehensive income, net of tax. Property and Equipment Property and equipment are carried at cost. The costs of improvements that extend the life of a fixed asset are capitalized, while the costs of repairs and maintenance are expensed as incurred. Depreciation and amortization are calculated and recorded using the straight‑line method over the estimated useful life of the related asset (or lease term if shorter), generally three to 10 years for furniture and fixtures; one to 10 years for computer software; one to five years for data processing equipment; one to 30 years for buildings; two to 26 years for other equipment; and up to 15 years for leasehold improvements, determined by the lesser of the lease term or expected life. Software Developed for Internal Use Certain internal costs incurred in connection with developing or obtaining software for internal use are capitalized in accordance with ASC 350, “Intangibles – Goodwill and Other Topic.” Internal costs capitalized are included in property and equipment, net in the consolidated balance sheets, and were $6.4 million and $10.5 million as of December 31, 2018 and 2017, respectively. Amortization begins when the software project is complete and ready for its intended use and continues over the estimated useful life, generally one to 10 years. Goodwill and Identifiable Intangible Assets Goodwill represents the excess of cost over fair value of the identifiable net assets of acquired companies. Indefinite-lived intangible assets represent advisory and subadvisory management contracts for managed assets obtained in acquisitions. The Company considers these contracts to be indefinite-lived intangible assets as they are expected to be renewed without significant cost or modification of terms. Goodwill and indefinite-lived intangible assets are tested for impairment annually or more frequently if events or circumstances indicate that the carrying value may not be recoverable. Goodwill and intangible assets require significant management estimates and judgment, including the valuation determination in connection with the initial purchase price allocation and the ongoing evaluation for impairment. Additional information related to the indefinite-lived intangible assets is included in Note 7. Revenue Recognition As of January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers ” and all subsequent ASUs that modified Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” The Company elected to apply the standard utilizing the cumulative effect approach. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue. Investment Management and Advisory Fees We recognize investment management and advisory fees as earned over the period in which investment management and advisory services are provided. While our investment management and advisory contracts are long-term in nature, the performance obligations are generally satisfied daily or monthly based on AUM. We calculate investment management fees from the Funds daily based upon average daily net AUM in accordance with investment management agreements between the Funds and the Company. The majority of investment and/or advisory fees earned from institutional accounts are calculated either monthly or quarterly based upon an average of net AUM in accordance with such investment management agreements. The Company may waive certain fees for investment management services at its discretion, or in accordance with contractual expense limitations, and these waivers are reflected as a reduction to investment management fees on the consolidated statements of income. Our investment advisory business receives research products and services from broker-dealers through “soft dollar” arrangements. Consistent with the “soft dollar” safe harbor established by Section 28(e) of the Securities Exchange Act of 1934, as amended, the investment advisory business does not have any contractual obligation requiring it to pay for research products and services obtained through soft dollar arrangements with brokers. As a result, we present “soft dollar” arrangements on a net basis. The Company has contractual arrangements with third parties to provide subadvisory services. Investment advisory fees are recorded gross of any subadvisory payments and are included in investment management fees based on management’s determination that the Company is acting in the capacity of principal service provider with respect to its relationship with the Funds. Any corresponding fees paid to subadvisors are included in operating expenses. Underwriting, Distribution and Shareholder Service Fees Fee‑based asset allocation products offer clients a selection of traditional asset allocation models, as well as features such as systematic rebalancing and client and Advisor participation in determining asset allocation across asset classes. Underwriting and distribution fee-based asset allocation revenues are calculated monthly based upon beginning of month client assets and are earned over the period in which services are provided. Performance obligations are generally satisfied daily or monthly based on client assets. Under a Rule 12b-1 service plan, the Funds may charge a maximum fee of 0.25% of the average daily net AUM for Ivy Funds Class B, C, E and Y shares for expenses paid to broker-dealers and other sales professionals in connection with providing ongoing services to the Funds’ shareholders and/or maintaining the Funds’ shareholder accounts, with the exception of the Funds’ Class R shares, for which the maximum fee is 0.50%. The Funds’ Class B and C shares may charge a maximum of 0.75% of the average daily net AUM under a Rule 12b-1 distribution plan to broker-dealers and other sales professionals for their services in connection with distributing shares of that class. The Funds’ Class A shares may charge a maximum fee of 0.25% of the average daily net AUM under a Rule 12b-1 service and distribution plan for expenses detailed previously. The Rule 12b-1 plans are subject to annual approval by the Funds’ board of trustees, including a majority of the disinterested members, by votes cast in person at a meeting called for the purpose of voting on such approval. All Funds may terminate the service and distribution plans at any time with approval of fund trustees or portfolio shareholders (a majority of either) without penalty. Underwriting and distribution commission revenues resulting from the sale of investment products are recorded upon satisfaction of performance obligations, which occurs on the trade date. For certain types of investment products, primarily variable annuities, distribution revenues are generally calculated based upon average daily net assets. When a client purchases Class A or Class E shares (front-end load), the client pays an initial sales charge of up to 5.75% of the amount invested. The sales charge for Class A or Class E shares typically declines as the investment amount increases. In addition, investors may combine their purchases of all fund shares to qualify for a reduced sales charge. When a client invests in a fee-based asset allocation product, Class I or Y shares are purchased at net asset value, and we do not charge an initial sales charge. Underwriting and distribution revenues resulting from payments from Advisors for office space, compliance oversight and affiliation fees are earned over the period in which the service is provided, which is generally monthly and is based on a fee schedule. Fees collected from Advisors for various services are recorded in underwriting and distribution fees on a gross basis, as the Company is the principal in these arrangements. Shareholder service fee revenue primarily includes transfer agency fees, custodian fees from retirement plan accounts, and portfolio accounting and administration fees. Transfer agency fees and portfolio accounting and administration fees are asset‑based revenues or account‑based revenues, while custodian fees from retirement plan accounts are based on the number of client accounts. Custodian fees, transfer agency fees and portfolio accounting and administration fees are earned upon completion of the service when all performance obligations have been satisfied. Advertising and Promotion We expense all advertising and promotion costs as the advertising or event takes place. Advertising expense was $8.1 million, $9.7 million and $9.4 million for the years ended December 31, 2018, 2017 and 2016, respectively, and is classified in marketing and advertising expense in the consolidated statements of income. Leases The Company leases office space under various leasing arrangements. Certain lease agreements contain renewal options, rent escalation clauses and/or other inducements provided by the landlord. Rent expense is recorded on a straight-line basis, including escalations and inducements, over the term of the lease. Share‑Based Compensation We account for share‑based compensation expense using the fair value method. Under the fair value method, share‑based compensation expense reflects the fair value of share‑based awards measured at grant date, and is recognized over the service period. The Company also issues share‑based awards to our Board of Directors. Changes in the Company’s share price result in variable compensation expense over the vesting period of awards granted to our Board of Directors. The Company’s Cash Settled RSU Plan (the “RSU Plan”) allows the Company to grant cash-settled restricted stock units (“RSUs”). Unvested RSUs have no purchase price and vest in 25% increments over four years, beginning on the first anniversary of the grant date. On the vesting date, RSU holders receive a lump sum cash payment equal to the fair market value of one share of the Company’s common stock, par value $0.01, for each RSU that has vested, subject to applicable tax withholdings. We treat RSUs as liability-classified awards and, therefore, account for them at fair value based on the closing price of our common stock on the reporting date, which results in variable compensation expense over the vesting period. Accounting for Income Taxes Income tax expense is based on pre-tax income, including adjustments made for the recognition or derecognition related to uncertain tax positions. The recognition or derecognition of income tax expense related to uncertain tax positions is determined under the guidance as prescribed by ASC 740, “ Income Taxes Topic. ” Deferred tax assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is recognized to reduce deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates that will be in effect when they are expected to be realized or settled. The effect on the measurement of deferred tax assets and liabilities of a change in income tax law is recognized in earnings in the period that includes the enactment date. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted, which significantly revised the U.S. corporate income tax system by, among other things, permanently reducing the federal statutory tax rate from 35% to 21% effective January 1, 2018. The Company recorded a one-time charge of $5.4 million in the fourth quarter of 2017 to measure net deferred tax assets at the reduced federal statutory rate. According to guidance from SEC Staff Accounting Bulletin 118, the Company recognized a provisional tax impact related to the revaluation of deferred tax assets and liabilities and included those amounts in its consolidated financial statements for the year ended December 31, 2017. In the third quarter of 2018, we finalized our 2017 U.S. corporate income tax return and revised provisional adjustments made to our net deferred tax asset. Accordingly, we recorded a discrete tax benefit of $1.0 million. The Company now considers its accounting for the income tax effects of the Tax Reform Act to be complete.

New Accounting Guidance

New Accounting Guidance	12 Months Ended
	Dec. 31, 2018
New Accounting Guidance
New Accounting Guidance	2. New Accounting Guidance Accounting Guidance Adopted During Fiscal Year 2018 On January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers.” This ASU 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. The Company applied the five-step method detailed in this ASU to all revenue streams and elected the cumulative effect approach. The implementation of this ASU did not have a material impact on the measurement or recognition of revenue from prior periods. See Note 1 - Summary of Significant Accounting Policies and Note 3 – Revenue Recognition, for additional accounting policy information and the additional disclosures required by this ASU. On January 1, 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU provided updated guidance on the recognition, measurement, presentation and disclosure of certain financial assets and financial liabilities. After January 1, 2018, the guidance requires substantially all equity investments in non-consolidated entities to be measured at fair value with changes recognized in earnings, except for those accounted for using the equity method of accounting. As such, the guidance eliminated the available for sale investment category for equity securities, which required unrealized holding gains to be recognized in accumulated other comprehensive income. Upon adoption, we reclassified net unrealized holding gains, net of taxes, related to our available for sale investment portfolio from accumulated other comprehensive income to retained earnings. See consolidated statement of stockholders’ equity and redeemable noncontrolling interests for the financial statement reclassification impact of adopting this ASU. On January 1, 2018, the Company adopted ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” This ASU eliminated the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. This ASU designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The adoption of this ASU did not impact our consolidated financial statements and related disclosures. On January 1, 2018, the Company adopted ASU 2016-18, “Statement of Cash Flows: Restricted Cash.” This ASU is intended to reduce diversity in practice by adding or clarifying guidance on classification and presentation of changes in restricted cash on the statement of cash flows. The amendments in this ASU required that a statement of cash flows include the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Cash and cash equivalents – restricted is included as a component of cash and cash equivalents on the Company’s consolidated statements of cash flows for all periods presented. On January 1, 2018, the Company adopted ASU 2017-07, “Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU changed the income statement presentation of our noncontributory retirement plan that covers substantially all employees and certain vested employees of our former parent company (the “Pension Plan”) by requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). In addition, only the service cost component is eligible for capitalization as part of an asset. The adoption of this ASU had no effect on our net income because it only impacts the classification of certain information on the consolidated statements of income. An amendment to freeze our noncontributory retirement plan that covers substantially all employees and certain vested employees of our former parent company was approved effective September 30, 2017; therefore, after September 30, 2017, we no longer incur service costs. The service cost component of net periodic benefit cost is recognized in compensation and related costs through September 30, 2017. The other components of net periodic cost were reclassified to investment and other income (loss) on a retrospective basis. On January 1, 2018, the Company adopted ASU 2017-09, “Compensation-Stock Compensation: Scope of Modification Accounting.” This ASU provided guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, “Compensation – Stock Compensation Topic.” The adoption of this ASU had an immaterial impact our consolidated financial statements and related disclosures. On January 1, 2018, the Company early adopted ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows entities to reclassify stranded tax effects attributable to the Tax Reform Act from accumulated other comprehensive income (“AOCI”) to retained earnings. Tax effects that are stranded in other comprehensive income for reasons unrelated to the Tax Reform Act, such as other changes in tax law, will be reclassified in future periods in accordance with the Company’s policy. Under the policy, the Company releases stranded income tax effects on available for sale securities on a security-by-security basis as securities are sold, matured, or extinguished. For the post retirement plan, the Company will release stranded income tax effects when the entire plan is liquidated or terminated. The adoption of this ASU did not have a material impact on our consolidated financial statements and related disclosures. See consolidated statement of stockholders’ equity for the financial statement reclassification impact of adopting this ASU. On January 1, 2018, the Company adopted ASU 2018-05, “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118.” This ASU updates the income tax accounting in U.S. GAAP to reflect SEC interpretive guidance released on December 22, 2017 when the Tax Reform Act became law. Staff Accountant Bulletin No. 118 states the SEC permits companies to use “reasonable estimates” and “provisional amounts” for some of their line items for taxes for their fourth quarter and year-end 2017 financial statements and regulatory filings. The Company has applied this guidance to its consolidated financial statements and related disclosures. See Note 1 - Summary of Significant Accounting Policies for additional information on the adoption of this ASU. During the fourth quarter of 2018, the company early adopted ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans, which removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. See Note 10 – Pension Plan and Postretirement Benefits Other Than Pension for updated disclosures as a result of the adoption of this ASU. New Accounting Guidance Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases, which increases transparency and comparability among organizations by establishing a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet with additional disclosures of key information about leasing arrangements. The new standard, and related ASUs, are effective for us on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. We expect to elect all of the new standard’s available transition practical expedients. We expect that this ASU will have a material effect on our financial statements. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to the recognition of new right-of-use assets and lease liabilities on our balance sheet for our real estate and equipment leases ranging from $35.0-45.0 million and the addition of significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize right-of-use assets or lease liabilities, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. In June 2018, FASB issued ASU 2018-07, Compensation – Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share–based payments granted to nonemployees by aligning the accounting with the requirements for employee share–based compensation. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company will adopt the provisions of this guidance on January 1, 2019. We have concluded that the adoption of this ASU will have an immaterial impact on our consolidated financial statements and related disclosures. In August 2018, FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates certain disclosure requirements for fair value measurements, requires entities to disclose new information, and modifies existing disclosure requirements. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Upon adoption of this ASU, disclosure changes will be reflected in our consolidated financial statements and related disclosures. In August 2018, FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. We are evaluating the impact the adoption of this ASU will have on our consolidated financial statements and related disclosures.

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2018
Revenue Recognition
Revenue Recognition	3. Revenue Recognition All revenue recognized in the consolidated statements of income is considered to be revenue from contracts with customers. The vast majority of revenue is determined based on average assets and is earned daily or monthly or is transactional and is earned on the trade date. As such, revenue from remaining performance obligations is not significant. The following table depicts the disaggregation of revenue by product and distribution channel: For the Year ended December 31, 2018 2017 2016 (in thousands) Investment management fees: Funds $ 486,181 506,868 521,207 Institutional 21,725 24,982 35,905 Total investment management fees 507,906 531,850 557,112 Underwriting and distribution fees: Unaffiliated Rule 12b-1 service and distribution fees 78,041 91,313 121,926 Sales commissions on front-end load mutual fund and variable annuity sales 1,886 1,498 565 Other revenues 568 1,182 2,924 Total unaffiliated distribution fees 80,495 93,993 125,415 Broker-Dealer Fee-based asset allocation product revenues 269,069 240,089 224,319 Rule 12b-1 service and distribution fees 70,938 75,850 93,260 Sales commissions on front-end load mutual fund and variable annuity sales 54,895 55,293 67,169 Sales commissions on other products 36,131 31,286 31,246 Other revenues 38,482 22,188 20,261 Total broker-dealer distribution fees 469,515 424,706 436,255 Total distribution fees 550,010 518,699 561,670 Shareholder service fees: Total shareholder service fees 102,385 106,595 120,241 Total revenues $ 1,160,301 1,157,144 1,239,023

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2018
Investment Securities
Investment Securities	4. Investment Securities Investment securities at December 31, 2018 and 2017 are as follows: December 31, December 31, 2018 2017 (in thousands) Available for sale securities: Certificates of deposit $ 5,001 12,999 Commercial paper 7,970 34,978 Corporate bonds 218,121 197,442 U.S. Treasury bills 19,672 19,779 Total available for sale securities 250,764 265,198 Trading debt securities: Certificates of deposit — 1,999 Commercial paper 1,993 — Corporate bonds 77,250 55,414 U.S. Treasury bills 5,884 4,929 Mortgage-backed securities 7 10 Consolidated sponsored funds 33,088 62,038 Total trading securities 118,222 124,390 Equity securities: Common stock 21,204 116 Sponsored funds (1) 153,548 137,857 Sponsored privately offered funds 678 695 Consolidated sponsored funds 24,879 77,048 Total equity securities 200,309 215,716 Equity method securities: Sponsored funds 47,840 95,188 Total securities $ 617,135 700,492 (1) Includes $124.0 million of investments at December 31, 2017, that were previously reported as available for sale securities prior to the adoption of ASU 2016-01 on January 1, 2018. Refer to Note 2 – New Accounting Guidance - Accounting Guidance Adopted During Fiscal Year 2018. Certificates of deposit, commercial paper, corporate bonds and U.S. Treasury bills accounted for as available for sale and held as of December 31, 2018 mature as follows: Amortized cost Fair value (in thousands) Within one year $ 97,196 96,726 After one year but within five years 154,614 154,038 $ 251,810 250,764 Commercial paper, corporate bonds, U.S. Treasury bills and mortgage-backed securities accounted for as trading and held as of December 31, 2018 mature as follows: Fair value (in thousands) Within one year $ 30,929 After one year but within five years 49,660 After five years but within 10 years 4,545 $ 85,134 The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2018: Amortized Unrealized Unrealized cost gains losses Fair value (in thousands) Available for sale securities: Certificates of deposit $ 5,000 1 — 5,001 Commercial paper 7,902 68 — 7,970 Corporate bonds 219,236 254 (1,369) 218,121 U.S. Treasury bills 19,672 — — 19,672 $ 251,810 323 (1,369) 250,764 The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2017: Amortized Unrealized Unrealized cost gains losses Fair value (in thousands) Available for sale securities: Certificates of deposit $ 13,000 1 (2) 12,999 Commercial paper 34,836 142 — 34,978 Corporate bonds 198,404 33 (995) 197,442 U.S. Treasury bills 20,019 — (240) 19,779 $ 266,259 176 (1,237) 265,198 Investment securities with fair values of $84.5 million, $237.2 million and $234.4 million were sold or redeemed during 2018, 2017 and 2016, respectively. During 2018, net realized gains of $0.3 million, less than $0.1 million and $12.8 million were recognized from the sale of $8.3 million in equity securities, the sale of $1.2 million in equity method securities and the redemption of $75.1 million in consolidated traded securities, respectively. During 2017, net realized gains of $0.9 million, $6.9 million and $1.5 million were recognized from the sale of $86.9 million in available for sale securities, the sale of $73.2 million in equity method securities, and the sale of $57.1 million in consolidated traded securities, respectively, and net realized losses of $0.5 million were recognized from the sale of $19.8 million in trading securities. During 2016, net realized gains of $3.6 million were recognized from the sale of $98.2 million in available for sale securities and net realized losses of $2.3 million were recognized from the sale of $58.7 million in equity method securities. A summary of available for sale sponsored funds with fair values below carrying values at December 31, 2018 is as follows: Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized December 31, 2018 Fair value losses Fair value losses Fair value losses (in thousands) Corporate bonds $ 36,302 (160) 119,480 (1,209) 155,782 (1,369) A summary of available for sale sponsored funds with fair values below carrying values at December 31, 2017 is as follows: Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized December 31, 2017 Fair value losses Fair value losses Fair value losses (in thousands) Certificates of deposit $ 2,998 (2) — — 2,998 (2) Corporate bonds 192,409 (995) — — 192,409 (995) U.S. Treasury bills 19,779 (240) — — 19,779 (240) $ 215,186 (1,237) — — 215,186 (1,237) The Company’s investment portfolio included 44 securities which were in an unrealized loss position at December 31, 2018. During 2018 and 2017, we recorded pre-tax charges of $0.3 million and $1.3 million, respectively, to reflect the “other than temporary” decline in value of certain of the Company’s available for sale investments with fair value below amortized cost. These charges were recorded due to either an intent to sell prior to recovery of the amortized cost or the investment in an unrealized loss position for an extended period of time where the losses were expected to become realized. These charges are recorded in investment and other income (loss) in the consolidated statement of operations for 2018 and 2017. The Company evaluated all of the other available for sale securities in an unrealized loss position at December 31, 2018 and concluded no additional other-than-temporary impairment existed at December 31, 2018. The unrealized losses in the Company’s investment portfolio at December 31, 2018 were primarily caused by changes in interest rates. At this time, the Company does not intend to sell, and does not believe it will be required to sell these securities before recovery of their amortized cost, with the exception of the securities mentioned above for which a charge was recorded. Sponsored Privately Offered Funds The Company holds a voting interests in a sponsored privately offered fund that is structured as an investment company in the legal form of an LLC. The Company held an investment in this fund totaling $0.7 million as of December 31, 2018 and December 31, 2017, which is the maximum loss exposure. Consolidated Sponsored Funds The following table details the balances related to consolidated sponsored funds at December 31, 2018 and 2017, as well as the Company’s net interest in these funds: December 31, December 31, 2018 2017 (in thousands) Cash $ 4,285 8,472 Investments 57,967 139,086 Other assets 872 1,588 Other liabilities (79) (1,040) Redeemable noncontrolling interests (11,463) (14,509) Net interest in consolidated sponsored funds $ 51,582 133,597 During the year ended December 31, 2018, we consolidated one sponsored privately offered fund, Ivy Funds, IGI Funds and Ivy NextShares in which we provided initial seed capital at the time of the funds’ formation. When we no longer have a controlling financial interest in a sponsored fund, it is deconsolidated from our consolidated financial statements. During 2018, we liquidated and redeemed our investment in the sponsored privately offered fund and the majority of our investment in the remaining IGI Funds, which resulted in a decrease in investments in the consolidated sponsored funds. One Ivy Fund, the IGI Funds and the Ivy Nextshares funds remain consolidated as of December 31, 2018. There was no impact to the consolidated statement of income as a result of the sponsored privately offered fund or IGI liquidation, as the funds were carried at fair value. Fair Value 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 carrying amounts of certificates of deposit and commercial paper are measured at amortized cost, which approximates fair value due to the short-time between purchase and expected maturity of the investments. Depending on the nature of the inputs, these investments are generally classified as Level 1 or 2 within the fair value hierarchy. U.S. Treasury bills are valued upon quoted market prices for similar assets in active markets, quoted prices for identical or similar assets that are not active and inputs other than quoted prices that are observable or corroborated by observable market data. 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. The fair value of equity derivatives is measured based on active market broker quotes, evaluated broker quotes and evaluated prices from vendors. The following tables summarize our investment securities as of December 31, 2018 and 2017 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. There were no transfers between levels for the years ended December 31, 2018 or 2017. December 31, 2018 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value Total (in thousands) Cash equivalents: (1) Money market funds $ 121,759 — — — 121,759 U.S. government sponsored enterprise note — 895 — — 895 Commercial paper — 74,277 — — 74,277 Total cash equivalents $ 121,759 75,172 — — 196,931 Available for sale securities: Certificates of deposit $ — 5,001 — — 5,001 Commercial paper — 7,970 — — 7,970 Corporate bonds — 218,121 — — 218,121 U.S. Treasury bills — 19,672 — — 19,672 Trading debt securities: Commercial paper — 1,993 — — 1,993 Corporate bonds — 77,250 — 77,250 U.S. Treasury bills — 5,884 — — 5,884 Mortgage-backed securities — 7 — — 7 Consolidated sponsored funds — 33,088 — — 33,088 Equity securities: Common stock 21,192 — 12 — 21,204 Sponsored funds 153,548 — — — 153,548 Sponsored privately offered funds measured at net asset value (2) — — — 678 678 Consolidated sponsored funds 24,879 — — — 24,879 Equity method securities: (3) Sponsored funds 47,840 — — — 47,840 Total $ 247,459 368,986 12 678 617,135 December 31, 2017 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value Total (in thousands) Cash equivalents: (1) Money market funds $ 145,785 — — — 145,785 Commercial paper — 11,064 — — 11,064 Total cash equivalents $ 145,785 11,064 — — 156,849 Available for sale securities: Certificates of deposit $ — 12,999 — — 12,999 Commercial paper — 34,978 — — 34,978 Corporate bonds — 197,442 — — 197,442 U.S. Treasury bills — 19,779 — — 19,779 Trading debt securities: Certificates of deposit — 1,999 — — 1,999 Corporate bonds — 55,414 — 55,414 U.S. Treasury bills — 4,929 — — 4,929 Mortgage-backed securities — 10 — — 10 Consolidated sponsored funds — 62,038 — — 62,038 Equity securities: Common stock 116 — — — 116 Sponsored funds 137,857 — — — 137,857 Sponsored privately offered funds measured at net asset value (2) — — — 695 695 Consolidated sponsored funds 77,048 — — — 77,048 Equity method securities: (3) Sponsored funds 95,188 — — — 95,188 Total $ 310,209 389,588 — 695 700,492 (1) Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds are measured at NAV and are classified as Level 1. Cash investments in commercial paper are measured at cost, which approximates fair value because of the short time between purchase of the instrument and its expected realization, and are classified as Level 2. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. (3) Substantially all of the Company’s equity method investments are investment companies that record their underlying investments at fair value. The following table summarizes the activity of investments categorized as Level 3 for the year ended December 31, 2018: For the year ended December 31, 2018 (in thousands) Level 3 assets at December 31, 2017 $ — Additions 359 Valuation change 5 Redemptions (352) Level 3 assets at December 31, 2018 $ 12

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2018
Derivative Financial Instruments
Derivative Financial Instruments	5. Derivative Financial Instruments The Company has in place an economic hedge program that uses total return swap contracts to hedge market risk related to its investments in certain sponsored funds. Certain of the consolidated sponsored funds may utilize derivative financial instruments within their portfolios in pursuit of their stated investment objectives. We do not hedge for speculative purposes. Excluding derivative financial instruments held in certain consolidated sponsored funds, the Company was party to five total return swap contracts with a combined notional value of $194.4 million and six total return swap contracts with a combined notional value of $213.9 million as of December 31, 2018 and 2017, respectively. These derivative instruments are not designated as hedges for accounting purposes. Changes in fair value of the total return swap contracts are recognized in investment and other income (loss) on the Company’s consolidated statement of income. The Company posted $5.2 million and $9.7 million in cash collateral with the counterparties of the total return swap contracts as of December 31, 2018 and 2017, respectively. The cash collateral is included in customers and other receivables on the Company’s consolidated balance sheet. The Company does not record its fair value in derivative transactions against the posted collateral. The following table presents the fair value of the derivative financial instruments, excluding derivative financial instruments held in certain consolidated sponsored funds as of December 31, 2018 and 2017 calculated based on Level 2 inputs: December 31, December 31, 2018 2017 Balance sheet location Fair value Fair value (in thousands) Total return swap contracts Prepaid expenses and other current assets $ 4,968 — Total return swap contracts Other current liabilities — 1,093 Total $ 4,968 1,093 The following is a summary of net gains (losses) recognized in income for the years ended December 31, 2018 and 2017: Year ended Income statement December 31, location 2018 2017 (in thousands) Total return swap contracts Investment and other income (loss) $ 15,163 (36,368)

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2018
Property and Equipment
Property and Equipment	6. Property and Equipment A summary of property and equipment at December 31, 2018 and 2017 is as follows: Estimated 2018 2017 useful lives (in thousands) Leasehold improvements $ 21,790 22,106 1 - 15 years Furniture and fixtures 28,482 30,529 3 - 10 years Equipment 20,248 20,802 2 - 26 years Computer software 100,507 99,644 1 - 10 years Data processing equipment 17,056 18,678 1 - 5 years Buildings 11,772 11,759 1 - 30 years Land 2,843 2,843 Property and equipment, at cost 202,698 206,361 Accumulated depreciation (139,269) (118,694) Property and equipment, net $ 63,429 87,667 Depreciation expense was $25.6 million, $21.0 million and $18.4 million during the years ended December 31, 2018, 2017 and 2016, respectively. At December 31, 2018, we had property and equipment under capital leases with a cost of $1.6 million and accumulated depreciation of $1.1 million. At December 31, 2017, we had property and equipment under capital leases with a cost of $1.9 million and accumulated depreciation of $1.0 million.

Goodwill and Identifiable Intan

Goodwill and Identifiable Intangible Assets	12 Months Ended
	Dec. 31, 2018
Goodwill and Identifiable Intangible Assets
Goodwill and Identifiable Intangible Assets	7. Goodwill and Identifiable Intangible Assets Goodwill and identifiable intangible assets (all considered indefinite-lived) at December 31, 2018 and 2017 are as follows: December 31, December 31, 2018 2017 (in thousands) Goodwill $ 106,970 106,970 Mutual fund management advisory contracts 38,699 38,699 Mutual fund management subadvisory contract — 1,200 Other 200 200 Total identifiable intangible assets 38,899 40,099 Total $ 145,869 147,069 During 2018, the balance of the mutual fund management subadvisory contract intangible asset was determined to be impaired due to a termination of the subadvisory agreement.

Indebtedness

Indebtedness	12 Months Ended
	Dec. 31, 2018
Indebtedness
Indebtedness	8. Indebtedness On August 31, 2010, the Company entered into a note purchase agreement to complete a $190.0 million private placement Series A and Series B senior unsecured notes. The $95.0 million Series A, senior unsecured notes that matured on January 13, 2018 were repaid. Interest is payable semi‑annually in January and July of each year. The agreement requires 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 for all periods presented. As of December 31, 2018, the Company’s consolidated leverage ratio was 0.3 to 1.0, and the consolidated interest coverage ratio was 48.7 to 1.0. Debt is reported at its carrying amount in the consolidated balance sheet. The fair value of the Company’s Series B Senior Notes maturing January 13, 2021 was $98.0 million at December 31, 2018 compared to the carrying value net of debt issuance costs of $94.9 million, which is listed under long-term debt in the consolidated balance sheet. Fair value is calculated based on Level 2 inputs. On October 20, 2017, we entered into a three-year unsecured revolving credit facility (the “Credit Facility”) with various lenders, which initially provides for borrowings of up to $100.0 million and may be expanded to $200.0 million. The Credit Facility replaced the prior credit facility, which was set to expire in June 2018. At December 31, 2018 and 2017, there were no borrowings outstanding under the Credit Facility. Borrowings under the 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 Credit Facility also imposes a facility fee on the aggregate amount of commitments under the revolving facility (whether or not utilized). The facility fee is also based on the Company’s credit rating level. The covenants in the Credit Facility are consistent with the covenants in the prior credit facility, including the required consolidated leverage ratio and the consolidated interest coverage ratio, which match those outlined above for the Senior Notes.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Taxes
Income Taxes	9. Income Taxes The provision for income taxes from continuing operations for the years ended December 31, 2018, 2017 and 2016 consists of the following: 2018 2017 2016 (in thousands) Current taxes: Federal $ 54,071 73,167 72,711 State 625 7,720 7,174 Foreign 1 — 17 54,697 80,887 79,902 Deferred taxes 783 20,481 1,982 Provision for income taxes $ 55,480 101,368 81,884 The following table reconciles the statutory federal income tax rate with our effective income tax rate from continuing operations for the years ended December 31, 2018, 2017 and 2016: 2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.4 2.2 2.0 Share-based compensation 1.8 3.4 — Effects of U.S. tax rate decrease (0.4) 2.2 — Uncertain tax positions (2.2) (0.2) (0.1) Valuation allowance on losses capital in nature — (1.0) (3.2) Other items 0.7 (0.3) 0.4 Effective income tax rate 23.3 % 41.3 % 34.1 % The tax effect of temporary differences that give rise to significant portions of deferred tax liabilities and deferred tax assets at December 31, 2018 and 2017 are as follows: 2018 2017 (in thousands) Deferred tax assets: Benefit plans $ — 3,381 Accrued compensation and related costs 5,868 5,558 Other accrued expenses 3,861 4,094 Unrealized losses on investment securities and partnerships 6,272 — Share-based compensation 10,300 15,047 Unused state tax credits 2,618 2,788 State net operating loss carryforwards 7,266 7,235 Other 1,171 2,874 Total gross deferred assets 37,356 40,977 Deferred tax liabilities: Property and equipment $ (3,700) (7,301) Benefit plans (1,872) — Identifiable intangible assets (9,206) (7,419) Unrealized gains on investments securities and partnerships — (3,554) Prepaid expenses (2,478) (1,679) Other (513) (481) Total gross deferred liabilities (17,769) (20,434) Valuation allowance (7,266) (7,235) Net deferred tax asset $ 12,321 13,308 Certain subsidiaries of the Company have net operating loss carryforwards in certain states in which these companies file on a separate company basis. The deferred tax asset, net of federal tax effect, relating to these carryforwards as of December 31, 2018 and 2017 is approximately $7.3 million and $7.2 million, respectively. The carryforwards, if not utilized, will expire between 2019 and 2038. Management believes it is not more likely than not that these subsidiaries will generate sufficient future taxable income in these states to realize the benefit of the net operating loss carryforwards and, accordingly, a valuation allowance in the amount of $7.3 million and $7.2 million has been recorded at December 31, 2018 and 2017, respectively. The Company has state tax credit carryforwards of $2.6 million and $2.8 million as of December 31, 2018 and 2017, respectively. Of these state tax credit carryforwards, $2.3 million will expire between 2024 and 2034 if not utilized, $0.2 million will expire in 2026 if not utilized, and $0.1 million can be carried forward indefinitely. The Company anticipates these credits will be fully utilized prior to their expiration date. 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 as a reduction to income taxes receivable; unrecognized tax benefits that reduce a net operating loss, similar tax loss, or tax credit carryforward are presented as a reduction to non-current deferred income taxes. As of December 31, 2018 and December 31, 2017, the Company’s consolidated balance sheet included unrecognized tax benefits, including penalties and interest, of $2.7 million ($2.4 million net of federal benefit) and $10.9 million ($8.9 million net of federal benefit), respectively, that if recognized, would impact the Company’s effective tax rate. The Company finalized a voluntary disclosure agreement with a state tax jurisdiction in June 2018, which reduced unrecognized tax benefits by $9.3 million ($7.6 million net of federal benefit). 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 December 31, 2018, and December 31, 2017, the total amount of accrued interest and penalties related to uncertain tax positions recognized in the consolidated balance sheet was $0.7 million ($0.6 million net of federal benefit) and $4.0 million ($3.5 million net of federal benefit), respectively. The total amount of penalties and interest, net of federal expense, related to tax uncertainties recognized in the statement of income for the period ended December 31, 2018 was a benefit of $2.8 million, which was comprised of a $3.0 million benefit related to settlement of the previously mentioned voluntary disclosure agreement and offset by the accrual of $0.2 million additional penalties and interest on outstanding uncertain tax positions. The following table summarizes the Company's reconciliation of unrecognized tax benefits, excluding penalties and interest, for the years ended December 31, 2018, 2017 and 2016: 2018 2017 2016 (in thousands) Balance at beginning of year $ 6,843 7,734 8,448 Increases during the year: Gross increases - tax positions in prior period 712 244 465 Gross increases - current-period tax positions 331 97 494 Decreases during the year: Gross decreases - tax positions in prior period (4,219) (56) (167) Decreases due to settlements with taxing authorities (1,385) (178) (21) Decreases due to lapse of statute of limitations (212) (998) (1,485) Balance at end of year $ 2,070 6,843 7,734 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 Company is currently under audit in one state jurisdiction in which the Company operates. During 2017, the Company closed an Internal Revenue Service audit of the 2014 tax year. This audit was settled with no significant adjustments. During 2016, the Company settled two open tax years that were undergoing audit by a state jurisdiction in which the Company operates. The 2015, 2016, 2017 and 2018 federal income tax returns are open tax years that remain subject to potential future audit. State income tax returns for all years after 2014 and, in certain states, income tax returns for 2014, are subject to potential future audit by tax authorities in the Company’s major state tax jurisdictions.

Pension Plan and Postretirement

Pension Plan and Postretirement Benefits Other Than Pension	12 Months Ended
	Dec. 31, 2018
Pension Plan and Postretirement Benefits Other Than Pension
Pension Plan and Postretirement Benefits Other Than Pension	10. Pension Plan and Postretirement Benefits Other Than Pension Benefits payable under the Pension Plan are based on employees’ years of service and compensation during the final 10 years of employment. The Compensation Committee of the Company’s Board of Directors approved an amendment to freeze the Pension Plan effective September 30, 2017. After September 30, 2017, participants in the Pension Plan no longer accrue additional benefits for future service or compensation. Participants will retain benefits accumulated as of September 30, 2017 in accordance with the terms of the Pension Plan. In accordance with applicable accounting standards, the Pension Plan’s assets and liabilities were remeasured as of July 31, 2017, the date participants were notified of the freeze. This resulted in a reduction of the accrued pension liability of approximately $30.0 million and a curtailment gain of $31.6 million. During 2016, the Company offered eligible terminated, vested Pension Plan participants an option to elect a one-time voluntary lump sum window distribution equal to the present value of the participant’s pension benefit, in settlement of all future pension benefits to which they would otherwise have been entitled. This offer was made in an effort to reduce pension obligations and ongoing annual pension expense. Payments were distributed to participants who accepted the lump sum offer in 2016 from the assets of the Pension Plan. The Company recognized a non-cash settlement charge of $20.7 million in 2016 related to this event. We also sponsor an unfunded defined benefit postretirement medical plan that previously covered substantially all employees, as well as Advisors. The medical plan is contributory with participant contributions adjusted annually. The medical plan does not provide for benefits after age 65 with the exception of a small group of employees that were grandfathered when such plan was established. During 2016, the Company amended this plan to discontinue the availability of coverage for any individuals who retire after December 31, 2016. The plan amendment resulted in an $8.5 million curtailment gain, recorded in 2016 as part of net other postretirement benefit costs. A reconciliation of the funded status of these plans and the assumptions related to the obligations at December 31, 2018, 2017 and 2016 are as follows: Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (in thousands) Change in projected benefit obligation: Net benefit obligation at beginning of year $ 184,245 180,921 210,783 2,195 2,446 8,421 Service cost — 8,367 12,199 — — 555 Interest cost 5,986 6,248 9,432 54 58 297 Benefits paid (13,690) (8,511) (52,288) (602) (954) (674) Actuarial (gain) loss (22,013) 28,841 (19,886) (965) 139 1,790 Retiree contributions — — — 366 506 532 Curtailment gain — (31,621) — — — (8,475) Settlement loss — — 20,681 — — — Net benefit obligation at end of year $ 154,528 184,245 180,921 1,048 2,195 2,446 Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (in thousands) Change in plan assets: Fair value of plan assets at beginning of year $ 170,881 144,529 173,885 — — — Actual return on plan assets 1,808 24,863 2,932 — — — Employer contributions 4,000 10,000 20,000 236 448 142 Retiree contributions — — — 366 506 532 Benefits paid (13,690) (8,511) (52,288) (602) (954) (674) Fair value of plan assets at end of year $ 162,999 170,881 144,529 — — — Funded status at end of year $ 8,471 (13,364) (36,392) (1,048) (2,195) (2,446) Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (in thousands, except percentage data) Amounts recognized in the statement of financial position: Noncurrent assets $ 8,471 — — — — — Current liabilities — — — (250) (422) (458) Noncurrent liabilities — (13,364) (36,392) (798) (1,773) (1,988) Net amount recognized at end of year $ 8,471 (13,364) (36,392) (1,048) (2,195) (2,446) Weighted average assumptions used to determine benefit obligation at December 31: Discount rate 4.45 % 3.76 % 4.39 % 4.08 % 3.28 % 3.46 % Rate of compensation increase Not applicable 5.12 % Not applicable The discount rate assumption used to determine the pension and other postretirement benefits obligations was based on the Aon Hewitt AA Only Above Median Yield Curve. This discount rate was determined separately for each plan by plotting the expected benefit payments from each plan against a yield curve of high quality, zero coupon bonds and calculating the single rate that would produce the same present value of liabilities as the yield curve. Our Pension Plan asset allocation at December 31, 2018 and 2017 is as follows: Percentage of Percentage of Plan Assets at Plan Assets at Plan assets by category December 31, 2018 December 31, 2017 Cash 2 % 40 % Equity securities: Domestic — 29 % International — 18 % Fixed income securities 98 % 8 % Gold bullion — 5 % Total 100 % 100 % Historically, the primary investment objective has been to maximize growth of the Pension Plan assets to meet the projected obligations to the beneficiaries over a long period of time and to do so in a manner that is consistent with the Company’s earnings strength and risk tolerance. Asset allocation is the most important decision in managing the assets and is reviewed regularly. The asset allocation policy considers the Company’s financial strength and long‑term asset class risk/return expectations since the obligations are long‑term in nature. Prior to the Pension Plan freeze in 2017, assets were invested in our Asset Strategy investment style, managed by our in‑house investment professionals. Subsequent to the freeze, the Company adjusted the Pension Plan’s asset allocation to decrease the exposure to equity securities. In 2018, the Company implemented a new pension de-risking strategy designed to more closely match assets to the pension obligations by shifting exposure from return-seeking assets to liability-hedging assets. We determine the fair value of our Pension Plan assets using broad levels of inputs as defined by related accounting standards and categorized as Level 1, Level 2 or Level 3, as described in Note 4. The following tables summarize our Pension Plan assets as of December 31, 2018 and 2017. As of December 31, 2018 and 2017 a portion of the international equity securities were valued utilizing Level 2 inputs, in accordance with company policy based on market movement greater than or equal to 0.50% on the final trading day of the year. 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — 465 — 465 Equity securities: International — 4 — 4 Fixed income securities: U.S. Treasuries — 46,415 — 46,415 Corporate bond — 91,521 — 91,521 Foreign bonds — 21,870 — 21,870 Total investment securities — 160,275 — 160,275 Cash 2,724 Total $ 162,999 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — 66,779 — 66,779 Equity securities: Domestic 49,540 — — 49,540 International 4,889 26,542 — 31,431 Fixed income securities: U.S. Treasuries — 6,455 — 6,455 Corporate bond — 587 — 587 Foreign Bonds — 6,591 — 6,591 Gold bullion 8,369 — — 8,369 Total investment securities 62,798 106,954 — 169,752 Cash 1,129 Total $ 170,881 The 6.00% expected long‑term rate of return utilized after the Pension Plan freeze in 2017 reflected management’s expectations of long‑term average rates of return on funds invested to provide for benefits included in the projected benefit obligations. The expected return was based on the outlook for inflation, fixed income returns and equity returns, while also considering historical returns, asset allocation and investment strategy. In 2018, we adjusted the expected long-term rate of return to 5.00% to reflect a further decrease to the Plan’s equity securities’ holdings based on expected investment mix at the beginning of the year. During the year, we accelerated the de-risking strategy and as such, expect to further reduce the long-term rate of return in the future. The components of net periodic pension and other postretirement costs consisted of the following for the years ended December 31, 2018, 2017 and 2016: Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (in thousands) Components of net periodic benefit cost: Service cost $ — 8,367 12,199 — — 555 Interest cost 5,986 6,248 9,432 54 58 297 Expected return on plan assets (8,320) (10,113) (13,927) — — — Actuarial (gain) loss (15,501) 14,091 (8,891) — — — Actuarial gain amortization — — — (120) (180) (153) Prior service cost amortization — — — (2) (4) 4 Curtailment gain — (31,621) — — — (8,475) Settlement loss — — 20,681 — — — Total $ (17,835) (13,028) 19,494 (68) (126) (7,772) The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2018, 2017 and 2016 are as follows: Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 Discount rate 3.76 % 4.39% / 3.96 1 % 4.60 % 3.28 % 3.46 % 4.44 % Expected return on plan assets 5.00 % 7.00% / 6.00 1 % 7.50 % Not applicable Rate of compensation increase Not applicable 5.12 % 5.12 % Not applicable ________________________ (1) Due to the Pension Plan freeze and associated remeasurement as of July 31, 2017, the discount rate changed from 4.39% to 3.96% and the expected return on assets changed from 7.00% to 6.00%. Under current plan provisions, we expect the following benefit payments to be paid: Other Pension Postretirement Benefits Benefits (in thousands) 2019 $ 7,984 250 2020 8,068 179 2021 9,371 131 2022 8,843 116 2023 9,031 79 2024 through 2028 46,521 233 $ 89,818 988 Our policy with respect to funding the Pension Plan is to fund at least the minimum required by the Employee Retirement Income Security Act of 1974, as amended, and not more than the maximum amount deductible for tax purposes. All contributions made to the Pension Plan for 2018, 2017 and 2016 were voluntary. All Company contributions to other postretirement medical benefits are voluntary, as the postretirement medical plan is not funded and is not subject to any minimum regulatory funding requirements. The contributions for each year represent claims paid for medical expenses, and we anticipate making the 2019 expected contribution with cash generated from operations. Contributions by participants to the postretirement plan were $366 thousand, $506 thousand and $532 thousand for the years ended December 31, 2018, 2017 and 2016, respectively. For measurement purposes, the initial health care cost trend rate was 8.05% (prior to age 65) and 9.30% (subsequent to age 65) for 2018, 7.02% (prior to age 65) and 8.47% (subsequent to age 65) for 2017 and 6.82% for 2016. The health care cost trend rate reflects anticipated increases in health care costs. The initial growth rates for 2018 are assumed to gradually decline over the next 8 years to a rate of 4.5%. We also sponsored the Waddell & Reed Financial, Inc. Supplemental Executive Retirement Plan, as amended and restated (the “SERP”), a non-qualified deferred compensation plan covering eligible employees. The SERP was adopted to supplement the annual pension benefit for certain senior executive officers that the Pension Plan was prevented from providing because of compensation and benefit limits in the Internal Revenue Code (the “IRC”). The SERP allowed for discretionary contributions, though none were awarded to participants in 2017 or 2016. Additionally, each calendar year, participants’ accounts were credited (or charged) with an amount equal to the performance of certain hypothetical investment vehicles since the last preceding year. Upon a participant’s separation, or at such other time based on a pre-existing election by a participant, benefits accumulated under the SERP were payable in installments or in a lump sum. Following a lump sum payment of $3.8 million in February 2017 to the sole remaining participant in the SERP, the Board of Directors terminated the SERP. At December 31, 2018, the pension asset and postretirement liability recorded in the consolidated balance sheet was comprised of a pension asset of $8.5 million and a liability for postretirement benefits in the amount of $0.8 million. The current portion of postretirement liability of $0.3 million is included in other current liabilities on the consolidated balance sheet. At December 31, 2017, the accrued pension and postretirement liability recorded in the consolidated balance sheet was comprised of accrued pension costs of $13.4 million and a liability for postretirement benefits in the amount of $1.8 million. The accrued liability for the current portion of postretirement liability of $0.4 million is included in other current liabilities on the consolidated balance sheet.

Defined Contribution Plan

Defined Contribution Plan	12 Months Ended
	Dec. 31, 2018
Defined Contribution Plan
Defined Contribution Plan	11. Defined Contribution Plan We sponsor a defined contribution plan that qualifies under Section 401(k) of the IRC to provide retirement benefits to substantially all of our employees. As allowed under Section 401(k), the plan provides tax‑deferred salary deductions for eligible employees. Our matching contributions to the plan for the years ended December 31, 2018, 2017 and 2016 were $6.8 million, $6.0 million and $6.8 million, respectively. In 2017, in connection with the Pension Plan freeze, the Company amended its 401(k) plan to permit employer discretionary nonelective contributions to eligible participants. For the 2017 plan year, the Company approved a discretionary nonelective contribution in an amount equal to 4% of such participant’s eligible compensation. These contributions, which were expensed over the service period in 2017, totaled $5.5 million and were funded and allocated to participant accounts during the first quarter of 2018.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity
Stockholders' Equity	12. Stockholders’ Equity Earnings per Share For the years ended December 31, 2018, 2017 and 2016, earnings per share were computed as follows: 2018 2017 2016 Net income attributable to Waddell & Reed Financial, Inc. $ 183,588 141,279 156,695 Weighted average shares outstanding, basic and diluted 80,468 83,573 82,668 Earnings per share, basic and diluted $ 2.28 1.69 1.90 Dividends The Board of Directors declared dividends on our Class A common stock of $1.00 per share, $1.63 per share and $1.84 per share for the years ended December 31, 2018, 2017 and 2016, respectively. In December 2018, the Board of Directors declared a quarterly dividend on our Class A common stock of $0.25 per share payable on February 1, 2019 to stockholders of record as of January 11, 2019. As of December 31, 2018 and 2017, other current liabilities included $19.2 million and $20.7 million, respectively, for dividends payable to stockholders. Common Stock Repurchases The Board of Directors has authorized the repurchase of our Class A common stock in the open market and/or private purchases. The acquired shares may be used for corporate purposes, including as shares issued to employees in our share‑based compensation programs. There were 6,963,269 shares, 1,842,337 shares and 2,320,726 shares repurchased in the open market or privately during the years ended December 31, 2018, 2017 and 2016, respectively. The repurchased shares include; 729,882 shares, 402,337 shares and 423,726 shares repurchased from employees who elected to tender shares to cover their income tax withholdings with respect to vesting of stock awards during the years ended December 31, 2018, 2017 and 2016, respectively. Accumulated Other Comprehensive Loss The following tables summarize other comprehensive income (loss) activity for the years ended December 31, 2018 and 2017. Total Unrealized Postretirement accumulated gains (losses) on benefits other AFS investment unrealized comprehensive Year ended December 31, 2018 securities gains (losses) income (loss) (in thousands) Balance at December 31, 2017 $ 145 379 524 Amount reclassified to retained earnings for ASUs adopted in 2018 (955) 107 (848) Other comprehensive (loss) income before reclassification (360) 736 376 Amount reclassified from accumulated other comprehensive income (loss) 373 (94) 279 Net current period other comprehensive (loss) income (942) 749 (193) Balance at December 31, 2018 $ (797) 1,128 331 Change in valuation allowance for unrealized Total Unrealized gains Postretirement accumulated gains (losses) (losses) on benefits other on investment investment unrealized comprehensive Year ended December 31, 2017 securities securities gains (losses) income (loss) (in thousands) Balance at December 31, 2016 $ (3,972) (3,388) 603 (6,757) Other comprehensive income (loss) before reclassification 4,039 3,743 (106) 7,676 Amount reclassified from accumulated other comprehensive income (loss) 78 (355) (118) (395) Net current period other comprehensive income (loss) 4,117 3,388 (224) 7,281 Balance at December 31, 2017 $ 145 — 379 524 Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow: For the year ended December 31, 2018 Tax (expense) Statement of income Pre-tax benefit Net of tax line item or retained earnings (in thousands) Reclassifications included in net income or retained earnings for ASUs adopted in 2018: Sponsored funds investment gains $ 1,295 (340) 955 Retained earnings Losses on available for sale debt securities $ (489) 116 (373) Investment and other income (loss) Amortization of postretirement benefits 122 (135) (13) Compensation and benefits and retained earnings Total $ 928 (359) 569 For the year ended December 31, 2017 Tax benefit Pre-tax (expense) Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Sponsored funds investment losses $ (124) 46 (78) Investment and other income (loss) Valuation allowance — 355 355 Provision for income taxes Amortization of postretirement benefits 184 (66) 118 Compensation and benefits Total $ 60 335 395

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2018
Share-Based Compensation
Share-Based Compensation	13. Share‑Based Compensation The Company’s 1998 Stock Incentive Plan, as amended and restated (the “SI Plan”) allows us to grant equity compensation awards, including nonvested stock, as part of our overall compensation program to attract and retain key personnel and encourage a greater personal financial investment in the Company, thereby promoting the long-term growth of the Company. A maximum of 35.6 million shares of common stock are authorized for issuance under the SI Plan and as of December 31, 2018, 2,121,728 shares of common stock were available for issuance under the SI Plan. In addition, we may make incentive payments under the Company Executive Incentive Plan, as amended and restated (the “EIP”) in the form of cash, nonvested stock or a combination thereof. Incentive awards paid under the EIP in the form of nonvested stock are issued out of shares reserved for issuance under the SI Plan. Generally, shares of common stock subject to an award that expires or is cancelled, forfeited, exchanged, settled in cash or is terminated will again be available for awards under the SI Plan. Nonvested stock awards are valued on the date of grant and have no purchase price. These awards have historically vested over four years in 33 1/3% increments on the second, third and fourth anniversaries of the grant date; however, awards granted on or after December 31, 2016 vest in 25% increments on the first anniversary of the grant date. The Company has issued nonvested stock awards to non-employee directors. These awards generally have the same terms as awards issued to employees, except awards granted on or after January 2, 2017 fully vest on the first anniversary of the grant date and changes in the Company’s share price result in variable compensation expense over the vesting period. Beginning in 2017, the Company established a Cash Settled RSU Plan (the “RSU Plan”), which allows the Company to grant cash-settled restricted stock units (“RSU”) to attract and retain key personnel and enable them to participate in the long-term growth of the Company. Unvested RSUs have no purchase price and vest in 25% increments over four years, beginning on the first anniversary of the grant date. On the vesting date, RSU holders receive a lump sum cash payment equal to the fair market value of one share of the Company’s common stock, par value $0.01, for each RSU that has vested, subject to applicable tax withholdings. We treat RSUs as liability-classified awards and, therefore, account for them at fair value based on the closing price of our common stock on the reporting date, which results in variable compensation expense over the vesting period. Nonvested shares and nonvested RSU’s are forfeited upon the termination of employment with or service to the Company, as applicable, or service on the Board of Directors, dependent upon the circumstances of termination. Except for restrictions placed on the transferability of nonvested shares, holders of nonvested shares have full stockholders’ rights during the term of restriction, including voting rights and the rights to receive cash dividends. Since nonvested RSUs are not shares of Company stock, holders of nonvested RSUs are not entitled to voting rights, but are entitled to dividend equivalent payments for each RSU equal to the dividend paid on one share of our common stock. A summary of nonvested share activity and related fair value for the year ended December 31, 2018 follows: Weighted Average Nonvested Grant Date Stock Shares Fair Value Nonvested at December 31, 2017 5,088,640 $ 27.26 Granted 1,561,155 20.87 Vested (2,061,297) 32.02 Forfeited (494,738) 24.23 Nonvested at December 31, 2018 4,093,760 $ 22.79 A summary of nonvested RSU activity for the year ended December 31, 2018 follows: Nonvested Cash-Settled Units Nonvested at December 31, 2017 1,213,029 Granted 1,105,087 Vested (343,711) Forfeited (212,345) Nonvested at December 31, 2018 1,762,060 For the years ended December 31, 2018, 2017 and 2016 compensation expense related to nonvested shares totaled $51.6 million, $57.7 million and $51.5 million, respectively. The deferred income tax benefit from the compensation expense related to nonvested stock was $10.0 million, $12.2 million and $19.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. These benefits will be recognized upon vesting and may increase or decrease depending on the fair value of the shares on the date of vesting. As of December 31, 2018, the remaining unamortized expense of $60.6 million is expected to be recognized over a weighted average period of 2.2 years. The total fair value of shares vested (at vest date) during the years ended December 31, 2018, 2017 and 2016, was $41.0 million, $20.8 million and $26.7 million, respectively. The Company withholds a portion of each employee’s vested shares to satisfy income tax withholding obligations of the Company with respect to vesting of the shares.

Uniform Net Capital Rule Requir

Uniform Net Capital Rule Requirements	12 Months Ended
	Dec. 31, 2018
Uniform Net Capital Rule Requirements
Uniform Net Capital Rule Requirements	14. Uniform Net Capital Rule Requirements Two of our subsidiaries, W&R and IDI are registered broker-dealers and members of FINRA. Broker-dealers are subject to the SEC’s Uniform Net Capital Rule (Rule 15c3‑1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15.0 to 1.0. The primary difference between net capital and stockholders’ equity is the non‑allowable assets that are excluded from net capital. A broker-dealer may elect not to be subject to the Aggregate Indebtedness Standard of paragraph (a)(1)(i) of Rule 15c3‑1, in which case net capital must exceed the greater of $250 thousand or 2% of aggregate debit items computed in accordance with the Formula for Determination of Reserve Requirements for broker-dealers. W&R made this election and thus is not subject to the aggregate indebtedness ratio as of December 31, 2018 or 2017. Net capital and aggregated indebtedness information for our broker-dealer subsidiaries is presented in the following table as of December 31, 2018 and 2017: 2018 2017 (in thousands) W&R IDI W&R IDI Net capital $ 57,109 25,688 28,024 21,167 Required capital 250 1,336 250 1,757 Excess of required capital $ 56,859 24,352 27,774 19,410 Ratio of aggregate indebtedness to net capital Not Not applicable 0.78 to 1.0 applicable 1.25 to 1.0

Rental Expense and Lease Commit

Rental Expense and Lease Commitments	12 Months Ended
	Dec. 31, 2018
Rental Expense and Lease Commitments
Rental Expense and Lease Commitments	15. Rental Expense and Lease Commitments We lease certain home office buildings, certain sales and other office space and equipment under operating leases. Rent expense was $22.7 million, $24.5 million and $24.3 million, for the years ended December 31, 2018, 2017 and 2016, respectively. Future minimum rental commitments under non‑cancelable operating leases are as follows: Year Commitments (in thousands) 2019 $ 16,488 2020 9,797 2021 5,757 2022 2,913 2023 2,320 Thereafter 5,161 $ 42,436

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2018
Related Party Transactions
Related Party Transactions	16. Related Party Transactions We earn investment management fee revenues from the Funds and IGI Funds for which we act as an investment adviser, pursuant to an investment management agreement with each Fund. In addition, we have agreements with the Funds pursuant to Rule 12b‑1 under the ICA for which distribution and service fees are collected from the Funds for distribution of mutual fund shares, for costs such as advertising and commissions paid to broker-dealers, and for providing ongoing services to shareholders of the Funds and/or maintaining shareholder accounts. We also earn service fee revenues by providing various services to the Funds and their shareholders pursuant to a shareholder servicing agreement with each Fund (except Ivy VIP) and an accounting service agreement with each Fund. Certain of our officers and directors are also officers and/or trustees for the various Funds for which we act as an investment adviser. These agreements are approved or renewed on an annual basis by each Fund’s board of trustees, including a majority of the disinterested members. Revenues for services provided or related to the Funds and IGI Funds for the years ended December 31, 2018, 2017 and 2016 are as follows: 2018 2017 2016 (in thousands) Investment management fees $ 486,581 508,035 523,304 Rule 12b-1 service and distribution fees 141,220 159,873 208,901 Shareholder service fees 102,385 106,595 120,241 Total revenues $ 730,186 774,503 852,446 Included in Funds and separate accounts receivable at December 31, 2018 and 2017 are receivables due from the Funds of $14.6 and $20.6 million, respectively.

Contingencies

Contingencies	12 Months Ended
	Dec. 31, 2018
Contingencies
Contingencies	17. 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 establishes reserves for litigation and similar matters when those matters present material loss contingencies that management determines to be both probable and reasonably estimable in accordance with ASC 450, “Contingencies Topic.” 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. The Company discloses the nature of the contingency when management believes it is reasonably possible the outcome may be significant to the Company’s consolidated financial statements 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 must be disclosed. Management’s judgment is required related to contingent liabilities because the outcomes are difficult to predict. Shareholder Derivative Litigation In an action filed on April 18, 2016 in the District Court of Johnson County, Kansas, Hieu Phan v. Ivy Investment Management Company, et al. (Case No. I6CV02338 Div. 4), plaintiff filed a putative derivative action on behalf of the nominal defendant, a mutual fund trust affiliated with the Company, alleging breach of fiduciary duty and breach of contract claims relating to an investment held in the affiliated mutual fund by the Company's registered investment adviser subsidiary. On behalf of the nominal defendant trust, plaintiff filed claims against the Company’s registered investment adviser subsidiary and current and retired trustees of the trust seeking monetary damages and demanding a jury trial. While the Company denies that any of its subsidiaries breached their fiduciary duties to, or committed a breach of the investment management agreement with, the nominal defendant trust, the parties to the litigation reached a settlement. The February 14, 2018 settlement agreement provided a full release for the benefit of defendants and for the payment of $19.9 million (less $6.1 million for attorney’s fees plus nominal costs associated with notice to shareholders), recoverable to the Company through insurance, to the affiliated mutual fund for the benefit of its shareholders. On July 30, 2018, the court entered an order granting final approval of the settlement. The settlement amount has been funded by insurance, and the affiliated mutual fund has received the net settlement amount after deduction for attorney’s fees and nominal costs described above. 401(k) Plan Class Action Litigation In an action filed on June 23, 2017 and amended on June 26, 2017 in the U.S. District Court for the District of Kansas, Schapker v. Waddell & Reed Financial, Inc., et al, (Case No. 17-2365 D. Kan.), Stacy Schapker, a participant in the Company’s 401(k) and Thrift Plan, as amended and restated (the “401(k) Plan”), filed a lawsuit against the Company, the Company’s Board of Directors, the Administrative Committee of the 401(k) Plan, and unnamed Jane and John Doe Defendants 1-25. On August 7, 2017, plaintiff filed a second amended complaint on behalf of the 401(k) Plan and a proposed class of 401(k) Plan participants, alleging claims for breach of fiduciary duty and prohibited transactions under the Employee Retirement Income Security Act of 1974, as amended, based on the 401(k) Plan’s offering of investments managed by the Company or its affiliates during a proposed class period of June 23, 2011 to present. The second amended complaint dismissed the Company’s Board of Directors as a defendant and named as defendants the Company, the Compensation Committee of the Company’s Board of Directors, the Administrative Committee of the 401(k) Plan, and the individuals who served on those committees during the proposed class period. While the Company and all other defendants deny any and all liability with respect to the claims, the parties to the litigation reached a settlement. The November 19, 2018 settlement agreement contemplates a full release for the benefit of the Company and all other defendants and the payment of $4.875 million (less attorney’s fees and costs, class representative compensation, and administrative expenses) to eligible settlement class members, their beneficiaries or alternate payees. On November 28, 2018, the court entered an order granting preliminary approval of the settlement, including preliminary certification of a class for settlement purposes only, to include 401(k) Plan participants at any time during the approved class period of June 23, 2011 to November 28, 2018. A fairness hearing is scheduled for April 8, 2019, at which the court will consider granting final approval to the settlement. The settlement is subject to final court approval. The payments contemplated by the proposed settlement are recoverable to the Company through insurance. The Company has recorded a liability and offsetting receivable from insurance, as reflected in the Company's consolidated balance sheets.

Concentrations of Risk

Concentrations of Risk	12 Months Ended
	Dec. 31, 2018
Concentrations of Risk
Concentrations of Risk	18. Concentrations of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents held. The Company maintains cash and cash equivalents with various financial institutions. Cash deposits maintained at financial institutions may exceed the federally insured limit. Our investments in sponsored funds and investments held as trading expose us to market risk. The underlying holdings of our AUM are also subject to market risk, which may arise from changes in equity prices, credit ratings, foreign currency exchange rates, and interest rates.

Selected Quarterly Information

Selected Quarterly Information (Unaudited)	12 Months Ended
	Dec. 31, 2018
Selected Quarterly Information (Unaudited)
Selected Quarterly Information (Unaudited)	19. Selected Quarterly Information (Unaudited) Quarter First Second Third Fourth (in thousands) 2018 Total revenues $ 297,615 295,338 295,118 272,230 Net income attributable to Waddell & Reed Financial, Inc. $ 46,337 44,478 46,305 46,468 Net income per share, basic and diluted $ 0.56 0.55 0.58 0.60 Quarter First Second Third Fourth (in thousands) 2017 Total revenues $ 286,564 286,657 289,447 294,476 Net income attributable to Waddell & Reed Financial, Inc. $ 33,871 24,061 53,582 29,765 Net income per share, basic and diluted $ 0.40 0.29 0.64 0.36

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Description of Business and Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Amounts in the accompanying financial statements and notes are rounded to the nearest thousand unless otherwise stated. Certain amounts in the prior years’ financial statements have been reclassified for consistent presentation. The Company operates in one business segment as the Company’s management utilizes a consolidated approach to assess performance and allocate resources. Effective January 1, 2018, the Company changed the presentation of certain line items in the consolidated statements of income that are intended to improve the transparency of the Company’s financial statements through clearer alignment of operating expenses with financial statement captions. Specifically, the Company revised its accounting policy related to the reporting of indirect underwriting and distribution expenses in the former underwriting and distribution caption and certain expenses historically reported as general and administrative. Expenses previously recorded as underwriting and distribution expenses were retrospectively reclassified into (a) the following existing operating expense captions: Compensation and benefits and General and administrative, and (b) the following newly created operating expense captions: Distribution, Technology, Occupancy, and Marketing and advertising. Certain expenses historically reported as general and administrative were retrospectively reclassified into the following newly created operating expense captions: Technology, Occupancy, and Marketing and advertising. The Company considers the change in policy to be preferable and does not consider the change to be material to its consolidated financial statements. These changes were applied retrospectively to all periods presented and do not affect net income attributable to the Company. The Company also adopted Accounting Standards Update (“ASU”) 2017-07, “ Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ”. As a result, the Company retrospectively reclassified all net periodic pension costs, other than the historical service cost, from Compensation and benefits to Investment and other income (loss) within the consolidated statements of income. The reclassification of expenses as a result of the adoption of ASU 2017-07 does not affect net income attributable to the Company.
Consolidation	Consolidation In the normal course of our business, we sponsor and manage various types of investment products. These investment products include open-end mutual funds, a closed-end mutual fund, privately offered funds, exchange-traded managed funds, and a Luxembourg SICAV. When creating and launching a new investment product, we typically fund the initial cash investment, commonly referred to as “seeding,” to allow the investment product the ability to generate an investment performance track record so that it is able to attract third party investors. Our initial investment in a new product typically represents 100% of the ownership in that product. We generally redeem our investment in seeded products when the related product establishes a sufficient track record, when third party investments in the related product are sufficient to sustain the strategy, or when a decision is made to no longer pursue the strategy. The length of time we hold a majority interest in a product varies based on a number of factors, including market demand, market conditions and investment performance. Our exposure to risk in these investment products is generally limited to any equity investment we have in the product and any earned but uncollected management or other fund-related service fees. In accordance with financial accounting standards, we consolidate certain sponsored investment products in which we have a controlling interest or the investment product meets the criteria of a variable interest entity (“VIE”) and we are deemed to be the primary beneficiary. In order to make this determination, an analysis is performed to determine if the investment product is a VIE or a voting interest entity (“VOE”). Assessing if an entity is a VIE or VOE involves judgment and analysis on an entity by entity basis. Factors included in this assessment include the legal organization of the entity, the Company’s contractual involvement with the entity and any implications resulting from or associated with related parties’ involvement with the entity. A VIE is an entity which does not have adequate equity to finance its activities without subordinated financial support, the equity investors do not have the normal characteristics of equity investors for a potential controlling financial interest as a group, or the voting rights are not proportional to their obligations to absorb the expected losses or their rights to receive the expected residual returns of the entity. The Company is deemed to be the primary beneficiary if it absorbs a majority of the VIE’s expected losses, expected residual returns, or both. If the Company is the primary beneficiary of a VIE, we are required to consolidate the assets, liabilities, results of operations and cash flows of the VIE into our consolidated financial statements. If an entity does not meet the criteria and is not considered a VIE, it is treated as a VOE, which is subject to traditional consolidation concepts based on ownership rights. Sponsored investment products that are considered VOEs are consolidated if we have a controlling financial interest in the entity absent substantive investor rights to replace the investment manager of the entity (kick-out rights).
Use of Estimates	Use of Estimates GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and accompanying notes, and related disclosures of commitments and contingencies. Estimates are used for, but are not limited to, depreciation and amortization, income taxes, valuation of assets, pension and postretirement obligations, and contingencies. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Actual results could differ from our estimates.
Cash and Cash Equivalents	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 and non-customers segregated in compliance with federal and other regulations.
Disclosures About Fair Value of Financial Instruments	Disclosures About Fair Value of Financial Instruments Fair value of cash and cash equivalents, receivables and payables approximates carrying value. Fair values for investment securities are based on quoted market prices, where available. Otherwise, fair values for investment securities are based on Level 2 or Level 3 inputs detailed in Note 4. Fair value of long‑term debt is disclosed in Note 8.
Investment Securities and Investments in Sponsored Funds	Investment Securities and Investments in Sponsored Funds Our investments are comprised of debt and equity securities, investments in sponsored funds and sponsored privately offered funds. Sponsored funds, which include the Funds and the IGI Funds, are investments we have made to provide seed capital for new investment products. 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 equity securities measured at fair value through net income (when the Company owns less than 20% of the fund). Unrealized gains and losses on debt securities classified as available for sale, net of related tax effects, are excluded from earnings until realized and are reported as a separate component of comprehensive income. For debt securities classified as trading and equity securities, unrealized gains and losses are included in earnings. Realized gains and losses are computed using the specific identification method for all investment securities, other than sponsored funds. For sponsored funds, realized gains and losses are computed using the average cost method. Substantially all of the Company’s equity method investees are investment companies that record their underlying investments at fair value. Therefore, under the equity method of accounting, our share of the investee's underlying net income or loss is predominantly representative of fair value adjustments in the investments held by the equity method investee. Our share of the investee's net income or loss is based on the most current information available and is recorded as a net gain or loss on investments within investment and other income (loss). Our available for sale debt securities are reviewed each quarter and adjusted for other than temporary declines in value. We consider factors affecting the issuer and the industry in which the issuer operates, general market trends including interest rates, and our ability and intent to hold an investment until it has recovered. Consideration is given to the length of time an investment’s market value has been below its amortized cost basis as well as prospects for recovery to the amortized cost basis. When a decline in the fair value of debt securities is determined to be other than temporary, the amount of the impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current‑period credit loss. If so, the other than temporary impairment recognized in earnings is equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If not, the portion of the impairment related to the credit loss is recognized in earnings while the portion of the impairment related to other factors is recognized in other comprehensive income, net of tax.
Property and Equipment	Property and Equipment Property and equipment are carried at cost. The costs of improvements that extend the life of a fixed asset are capitalized, while the costs of repairs and maintenance are expensed as incurred. Depreciation and amortization are calculated and recorded using the straight‑line method over the estimated useful life of the related asset (or lease term if shorter), generally three to 10 years for furniture and fixtures; one to 10 years for computer software; one to five years for data processing equipment; one to 30 years for buildings; two to 26 years for other equipment; and up to 15 years for leasehold improvements, determined by the lesser of the lease term or expected life.
Software Developed for Internal Use	Software Developed for Internal Use Certain internal costs incurred in connection with developing or obtaining software for internal use are capitalized in accordance with ASC 350, “Intangibles – Goodwill and Other Topic.” Internal costs capitalized are included in property and equipment, net in the consolidated balance sheets, and were $6.4 million and $10.5 million as of December 31, 2018 and 2017, respectively. Amortization begins when the software project is complete and ready for its intended use and continues over the estimated useful life, generally one to 10 years.
Goodwill and Identifiable Intangible Assets	Goodwill and Identifiable Intangible Assets Goodwill represents the excess of cost over fair value of the identifiable net assets of acquired companies. Indefinite-lived intangible assets represent advisory and subadvisory management contracts for managed assets obtained in acquisitions. The Company considers these contracts to be indefinite-lived intangible assets as they are expected to be renewed without significant cost or modification of terms. Goodwill and indefinite-lived intangible assets are tested for impairment annually or more frequently if events or circumstances indicate that the carrying value may not be recoverable. Goodwill and intangible assets require significant management estimates and judgment, including the valuation determination in connection with the initial purchase price allocation and the ongoing evaluation for impairment. Additional information related to the indefinite-lived intangible assets is included in Note 7.
Revenue Recognition	Revenue Recognition As of January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers ” and all subsequent ASUs that modified Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” The Company elected to apply the standard utilizing the cumulative effect approach. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue. Investment Management and Advisory Fees We recognize investment management and advisory fees as earned over the period in which investment management and advisory services are provided. While our investment management and advisory contracts are long-term in nature, the performance obligations are generally satisfied daily or monthly based on AUM. We calculate investment management fees from the Funds daily based upon average daily net AUM in accordance with investment management agreements between the Funds and the Company. The majority of investment and/or advisory fees earned from institutional accounts are calculated either monthly or quarterly based upon an average of net AUM in accordance with such investment management agreements. The Company may waive certain fees for investment management services at its discretion, or in accordance with contractual expense limitations, and these waivers are reflected as a reduction to investment management fees on the consolidated statements of income. Our investment advisory business receives research products and services from broker-dealers through “soft dollar” arrangements. Consistent with the “soft dollar” safe harbor established by Section 28(e) of the Securities Exchange Act of 1934, as amended, the investment advisory business does not have any contractual obligation requiring it to pay for research products and services obtained through soft dollar arrangements with brokers. As a result, we present “soft dollar” arrangements on a net basis. The Company has contractual arrangements with third parties to provide subadvisory services. Investment advisory fees are recorded gross of any subadvisory payments and are included in investment management fees based on management’s determination that the Company is acting in the capacity of principal service provider with respect to its relationship with the Funds. Any corresponding fees paid to subadvisors are included in operating expenses. Underwriting, Distribution and Shareholder Service Fees Fee‑based asset allocation products offer clients a selection of traditional asset allocation models, as well as features such as systematic rebalancing and client and Advisor participation in determining asset allocation across asset classes. Underwriting and distribution fee-based asset allocation revenues are calculated monthly based upon beginning of month client assets and are earned over the period in which services are provided. Performance obligations are generally satisfied daily or monthly based on client assets. Under a Rule 12b-1 service plan, the Funds may charge a maximum fee of 0.25% of the average daily net AUM for Ivy Funds Class B, C, E and Y shares for expenses paid to broker-dealers and other sales professionals in connection with providing ongoing services to the Funds’ shareholders and/or maintaining the Funds’ shareholder accounts, with the exception of the Funds’ Class R shares, for which the maximum fee is 0.50%. The Funds’ Class B and C shares may charge a maximum of 0.75% of the average daily net AUM under a Rule 12b-1 distribution plan to broker-dealers and other sales professionals for their services in connection with distributing shares of that class. The Funds’ Class A shares may charge a maximum fee of 0.25% of the average daily net AUM under a Rule 12b-1 service and distribution plan for expenses detailed previously. The Rule 12b-1 plans are subject to annual approval by the Funds’ board of trustees, including a majority of the disinterested members, by votes cast in person at a meeting called for the purpose of voting on such approval. All Funds may terminate the service and distribution plans at any time with approval of fund trustees or portfolio shareholders (a majority of either) without penalty. Underwriting and distribution commission revenues resulting from the sale of investment products are recorded upon satisfaction of performance obligations, which occurs on the trade date. For certain types of investment products, primarily variable annuities, distribution revenues are generally calculated based upon average daily net assets. When a client purchases Class A or Class E shares (front-end load), the client pays an initial sales charge of up to 5.75% of the amount invested. The sales charge for Class A or Class E shares typically declines as the investment amount increases. In addition, investors may combine their purchases of all fund shares to qualify for a reduced sales charge. When a client invests in a fee-based asset allocation product, Class I or Y shares are purchased at net asset value, and we do not charge an initial sales charge. Underwriting and distribution revenues resulting from payments from Advisors for office space, compliance oversight and affiliation fees are earned over the period in which the service is provided, which is generally monthly and is based on a fee schedule. Fees collected from Advisors for various services are recorded in underwriting and distribution fees on a gross basis, as the Company is the principal in these arrangements. Shareholder service fee revenue primarily includes transfer agency fees, custodian fees from retirement plan accounts, and portfolio accounting and administration fees. Transfer agency fees and portfolio accounting and administration fees are asset‑based revenues or account‑based revenues, while custodian fees from retirement plan accounts are based on the number of client accounts. Custodian fees, transfer agency fees and portfolio accounting and administration fees are earned upon completion of the service when all performance obligations have been satisfied.
Advertising and Promotion	Advertising and Promotion We expense all advertising and promotion costs as the advertising or event takes place. Advertising expense was $8.1 million, $9.7 million and $9.4 million for the years ended December 31, 2018, 2017 and 2016, respectively, and is classified in marketing and advertising expense in the consolidated statements of income.
Leases	Leases The Company leases office space under various leasing arrangements. Certain lease agreements contain renewal options, rent escalation clauses and/or other inducements provided by the landlord. Rent expense is recorded on a straight-line basis, including escalations and inducements, over the term of the lease.
Share-Based Compensation	Share‑Based Compensation We account for share‑based compensation expense using the fair value method. Under the fair value method, share‑based compensation expense reflects the fair value of share‑based awards measured at grant date, and is recognized over the service period. The Company also issues share‑based awards to our Board of Directors. Changes in the Company’s share price result in variable compensation expense over the vesting period of awards granted to our Board of Directors. The Company’s Cash Settled RSU Plan (the “RSU Plan”) allows the Company to grant cash-settled restricted stock units (“RSUs”). Unvested RSUs have no purchase price and vest in 25% increments over four years, beginning on the first anniversary of the grant date. On the vesting date, RSU holders receive a lump sum cash payment equal to the fair market value of one share of the Company’s common stock, par value $0.01, for each RSU that has vested, subject to applicable tax withholdings. We treat RSUs as liability-classified awards and, therefore, account for them at fair value based on the closing price of our common stock on the reporting date, which results in variable compensation expense over the vesting period.
Accounting for Income Taxes	Accounting for Income Taxes Income tax expense is based on pre-tax income, including adjustments made for the recognition or derecognition related to uncertain tax positions. The recognition or derecognition of income tax expense related to uncertain tax positions is determined under the guidance as prescribed by ASC 740, “ Income Taxes Topic. ” Deferred tax assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is recognized to reduce deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates that will be in effect when they are expected to be realized or settled. The effect on the measurement of deferred tax assets and liabilities of a change in income tax law is recognized in earnings in the period that includes the enactment date. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted, which significantly revised the U.S. corporate income tax system by, among other things, permanently reducing the federal statutory tax rate from 35% to 21% effective January 1, 2018. The Company recorded a one-time charge of $5.4 million in the fourth quarter of 2017 to measure net deferred tax assets at the reduced federal statutory rate. According to guidance from SEC Staff Accounting Bulletin 118, the Company recognized a provisional tax impact related to the revaluation of deferred tax assets and liabilities and included those amounts in its consolidated financial statements for the year ended December 31, 2017. In the third quarter of 2018, we finalized our 2017 U.S. corporate income tax return and revised provisional adjustments made to our net deferred tax asset. Accordingly, we recorded a discrete tax benefit of $1.0 million. The Company now considers its accounting for the income tax effects of the Tax Reform Act to be complete.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2018
Revenue Recognition
Summary of disaggregation of revenue	For the Year ended December 31, 2018 2017 2016 (in thousands) Investment management fees: Funds $ 486,181 506,868 521,207 Institutional 21,725 24,982 35,905 Total investment management fees 507,906 531,850 557,112 Underwriting and distribution fees: Unaffiliated Rule 12b-1 service and distribution fees 78,041 91,313 121,926 Sales commissions on front-end load mutual fund and variable annuity sales 1,886 1,498 565 Other revenues 568 1,182 2,924 Total unaffiliated distribution fees 80,495 93,993 125,415 Broker-Dealer Fee-based asset allocation product revenues 269,069 240,089 224,319 Rule 12b-1 service and distribution fees 70,938 75,850 93,260 Sales commissions on front-end load mutual fund and variable annuity sales 54,895 55,293 67,169 Sales commissions on other products 36,131 31,286 31,246 Other revenues 38,482 22,188 20,261 Total broker-dealer distribution fees 469,515 424,706 436,255 Total distribution fees 550,010 518,699 561,670 Shareholder service fees: Total shareholder service fees 102,385 106,595 120,241 Total revenues $ 1,160,301 1,157,144 1,239,023

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2018
Investment Securities
Schedule of investment securities	December 31, December 31, 2018 2017 (in thousands) Available for sale securities: Certificates of deposit $ 5,001 12,999 Commercial paper 7,970 34,978 Corporate bonds 218,121 197,442 U.S. Treasury bills 19,672 19,779 Total available for sale securities 250,764 265,198 Trading debt securities: Certificates of deposit — 1,999 Commercial paper 1,993 — Corporate bonds 77,250 55,414 U.S. Treasury bills 5,884 4,929 Mortgage-backed securities 7 10 Consolidated sponsored funds 33,088 62,038 Total trading securities 118,222 124,390 Equity securities: Common stock 21,204 116 Sponsored funds (1) 153,548 137,857 Sponsored privately offered funds 678 695 Consolidated sponsored funds 24,879 77,048 Total equity securities 200,309 215,716 Equity method securities: Sponsored funds 47,840 95,188 Total securities $ 617,135 700,492 (1) Includes $124.0 million of investments at December 31, 2017, that were previously reported as available for sale securities prior to the adoption of ASU 2016-01 on January 1, 2018. Refer to Note 2 – New Accounting Guidance - Accounting Guidance Adopted During Fiscal Year 2018.
Summary of maturities of securities held	Certificates of deposit, commercial paper, corporate bonds and U.S. Treasury bills accounted for as available for sale and held as of December 31, 2018 mature as follows: Amortized cost Fair value (in thousands) Within one year $ 97,196 96,726 After one year but within five years 154,614 154,038 $ 251,810 250,764 Commercial paper, corporate bonds, U.S. Treasury bills and mortgage-backed securities accounted for as trading and held as of December 31, 2018 mature as follows: Fair value (in thousands) Within one year $ 30,929 After one year but within five years 49,660 After five years but within 10 years 4,545 $ 85,134
Summary of the gross unrealized gains (losses) related to securities	The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2018: Amortized Unrealized Unrealized cost gains losses Fair value (in thousands) Available for sale securities: Certificates of deposit $ 5,000 1 — 5,001 Commercial paper 7,902 68 — 7,970 Corporate bonds 219,236 254 (1,369) 218,121 U.S. Treasury bills 19,672 — — 19,672 $ 251,810 323 (1,369) 250,764 The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2017: Amortized Unrealized Unrealized cost gains losses Fair value (in thousands) Available for sale securities: Certificates of deposit $ 13,000 1 (2) 12,999 Commercial paper 34,836 142 — 34,978 Corporate bonds 198,404 33 (995) 197,442 U.S. Treasury bills 20,019 — (240) 19,779 $ 266,259 176 (1,237) 265,198
Summary of available for sale sponsored funds with fair values below carrying values	A summary of available for sale sponsored funds with fair values below carrying values at December 31, 2018 is as follows: Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized December 31, 2018 Fair value losses Fair value losses Fair value losses (in thousands) Corporate bonds $ 36,302 (160) 119,480 (1,209) 155,782 (1,369) A summary of available for sale sponsored funds with fair values below carrying values at December 31, 2017 is as follows: Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized December 31, 2017 Fair value losses Fair value losses Fair value losses (in thousands) Certificates of deposit $ 2,998 (2) — — 2,998 (2) Corporate bonds 192,409 (995) — — 192,409 (995) U.S. Treasury bills 19,779 (240) — — 19,779 (240) $ 215,186 (1,237) — — 215,186 (1,237)
Summary of balances related to consolidated sponsored funds as well the company’s net interest in these funds	December 31, December 31, 2018 2017 (in thousands) Cash $ 4,285 8,472 Investments 57,967 139,086 Other assets 872 1,588 Other liabilities (79) (1,040) Redeemable noncontrolling interests (11,463) (14,509) Net interest in consolidated sponsored funds $ 51,582 133,597
Schedule of fair value of investment securities	December 31, 2018 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value Total (in thousands) Cash equivalents: (1) Money market funds $ 121,759 — — — 121,759 U.S. government sponsored enterprise note — 895 — — 895 Commercial paper — 74,277 — — 74,277 Total cash equivalents $ 121,759 75,172 — — 196,931 Available for sale securities: Certificates of deposit $ — 5,001 — — 5,001 Commercial paper — 7,970 — — 7,970 Corporate bonds — 218,121 — — 218,121 U.S. Treasury bills — 19,672 — — 19,672 Trading debt securities: Commercial paper — 1,993 — — 1,993 Corporate bonds — 77,250 — 77,250 U.S. Treasury bills — 5,884 — — 5,884 Mortgage-backed securities — 7 — — 7 Consolidated sponsored funds — 33,088 — — 33,088 Equity securities: Common stock 21,192 — 12 — 21,204 Sponsored funds 153,548 — — — 153,548 Sponsored privately offered funds measured at net asset value (2) — — — 678 678 Consolidated sponsored funds 24,879 — — — 24,879 Equity method securities: (3) Sponsored funds 47,840 — — — 47,840 Total $ 247,459 368,986 12 678 617,135 December 31, 2017 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value Total (in thousands) Cash equivalents: (1) Money market funds $ 145,785 — — — 145,785 Commercial paper — 11,064 — — 11,064 Total cash equivalents $ 145,785 11,064 — — 156,849 Available for sale securities: Certificates of deposit $ — 12,999 — — 12,999 Commercial paper — 34,978 — — 34,978 Corporate bonds — 197,442 — — 197,442 U.S. Treasury bills — 19,779 — — 19,779 Trading debt securities: Certificates of deposit — 1,999 — — 1,999 Corporate bonds — 55,414 — 55,414 U.S. Treasury bills — 4,929 — — 4,929 Mortgage-backed securities — 10 — — 10 Consolidated sponsored funds — 62,038 — — 62,038 Equity securities: Common stock 116 — — — 116 Sponsored funds 137,857 — — — 137,857 Sponsored privately offered funds measured at net asset value (2) — — — 695 695 Consolidated sponsored funds 77,048 — — — 77,048 Equity method securities: (3) Sponsored funds 95,188 — — — 95,188 Total $ 310,209 389,588 — 695 700,492 (1) Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds are measured at NAV and are classified as Level 1. Cash investments in commercial paper are measured at cost, which approximates fair value because of the short time between purchase of the instrument and its expected realization, and are classified as Level 2. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. (3) Substantially all of the Company’s equity method investments are investment companies that record their underlying investments at fair value.
Schedule of activity of investments categorized as Level 3	For the year ended December 31, 2018 (in thousands) Level 3 assets at December 31, 2017 $ — Additions 359 Valuation change 5 Redemptions (352) Level 3 assets at December 31, 2018 $ 12

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2018
Derivative Financial Instruments
Schedule of fair value of derivative financial instruments, excluding derivative financial instruments held in certain consolidated sponsored funds	December 31, December 31, 2018 2017 Balance sheet location Fair value Fair value (in thousands) Total return swap contracts Prepaid expenses and other current assets $ 4,968 — Total return swap contracts Other current liabilities — 1,093 Total $ 4,968 1,093
Schedule of net gains (losses) recognized in income of derivative financial instrument	Year ended Income statement December 31, location 2018 2017 (in thousands) Total return swap contracts Investment and other income (loss) $ 15,163 (36,368)

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property and Equipment
Schedule of property and equipment, net	Estimated 2018 2017 useful lives (in thousands) Leasehold improvements $ 21,790 22,106 1 - 15 years Furniture and fixtures 28,482 30,529 3 - 10 years Equipment 20,248 20,802 2 - 26 years Computer software 100,507 99,644 1 - 10 years Data processing equipment 17,056 18,678 1 - 5 years Buildings 11,772 11,759 1 - 30 years Land 2,843 2,843 Property and equipment, at cost 202,698 206,361 Accumulated depreciation (139,269) (118,694) Property and equipment, net $ 63,429 87,667

Goodwill and Identifiable Int_2

Goodwill and Identifiable Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill and Identifiable Intangible Assets
Schedule of goodwill and identifiable intangible assets	December 31, December 31, 2018 2017 (in thousands) Goodwill $ 106,970 106,970 Mutual fund management advisory contracts 38,699 38,699 Mutual fund management subadvisory contract — 1,200 Other 200 200 Total identifiable intangible assets 38,899 40,099 Total $ 145,869 147,069

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes
Schedule of provision for income taxes	2018 2017 2016 (in thousands) Current taxes: Federal $ 54,071 73,167 72,711 State 625 7,720 7,174 Foreign 1 — 17 54,697 80,887 79,902 Deferred taxes 783 20,481 1,982 Provision for income taxes $ 55,480 101,368 81,884
Schedule of reconciliation of statutory federal income tax rate with effective income tax rate	2018 2017 2016 Statutory federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.4 2.2 2.0 Share-based compensation 1.8 3.4 — Effects of U.S. tax rate decrease (0.4) 2.2 — Uncertain tax positions (2.2) (0.2) (0.1) Valuation allowance on losses capital in nature — (1.0) (3.2) Other items 0.7 (0.3) 0.4 Effective income tax rate 23.3 % 41.3 % 34.1 %
Schedule of deferred tax liabilities and deferred tax assets	2018 2017 (in thousands) Deferred tax assets: Benefit plans $ — 3,381 Accrued compensation and related costs 5,868 5,558 Other accrued expenses 3,861 4,094 Unrealized losses on investment securities and partnerships 6,272 — Share-based compensation 10,300 15,047 Unused state tax credits 2,618 2,788 State net operating loss carryforwards 7,266 7,235 Other 1,171 2,874 Total gross deferred assets 37,356 40,977 Deferred tax liabilities: Property and equipment $ (3,700) (7,301) Benefit plans (1,872) — Identifiable intangible assets (9,206) (7,419) Unrealized gains on investments securities and partnerships — (3,554) Prepaid expenses (2,478) (1,679) Other (513) (481) Total gross deferred liabilities (17,769) (20,434) Valuation allowance (7,266) (7,235) Net deferred tax asset $ 12,321 13,308
Summary of the Company's reconciliation of unrecognized tax benefits, excluding penalties and interest	The following table summarizes the Company's reconciliation of unrecognized tax benefits, excluding penalties and interest, for the years ended December 31, 2018, 2017 and 2016: 2018 2017 2016 (in thousands) Balance at beginning of year $ 6,843 7,734 8,448 Increases during the year: Gross increases - tax positions in prior period 712 244 465 Gross increases - current-period tax positions 331 97 494 Decreases during the year: Gross decreases - tax positions in prior period (4,219) (56) (167) Decreases due to settlements with taxing authorities (1,385) (178) (21) Decreases due to lapse of statute of limitations (212) (998) (1,485) Balance at end of year $ 2,070 6,843 7,734

Pension Plan and Postretireme_2

Pension Plan and Postretirement Benefits Other Than Pension (Tables)	12 Months Ended
	Dec. 31, 2018
Pension Plan and Postretirement Benefits Other Than Pension
Schedule of changes in net funded status, disclosure of amounts recognized in the balance sheet, and the assumptions used to determine the benefit obligation	A reconciliation of the funded status of these plans and the assumptions related to the obligations at December 31, 2018, 2017 and 2016 are as follows: Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (in thousands) Change in projected benefit obligation: Net benefit obligation at beginning of year $ 184,245 180,921 210,783 2,195 2,446 8,421 Service cost — 8,367 12,199 — — 555 Interest cost 5,986 6,248 9,432 54 58 297 Benefits paid (13,690) (8,511) (52,288) (602) (954) (674) Actuarial (gain) loss (22,013) 28,841 (19,886) (965) 139 1,790 Retiree contributions — — — 366 506 532 Curtailment gain — (31,621) — — — (8,475) Settlement loss — — 20,681 — — — Net benefit obligation at end of year $ 154,528 184,245 180,921 1,048 2,195 2,446 Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (in thousands) Change in plan assets: Fair value of plan assets at beginning of year $ 170,881 144,529 173,885 — — — Actual return on plan assets 1,808 24,863 2,932 — — — Employer contributions 4,000 10,000 20,000 236 448 142 Retiree contributions — — — 366 506 532 Benefits paid (13,690) (8,511) (52,288) (602) (954) (674) Fair value of plan assets at end of year $ 162,999 170,881 144,529 — — — Funded status at end of year $ 8,471 (13,364) (36,392) (1,048) (2,195) (2,446) Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (in thousands, except percentage data) Amounts recognized in the statement of financial position: Noncurrent assets $ 8,471 — — — — — Current liabilities — — — (250) (422) (458) Noncurrent liabilities — (13,364) (36,392) (798) (1,773) (1,988) Net amount recognized at end of year $ 8,471 (13,364) (36,392) (1,048) (2,195) (2,446) Weighted average assumptions used to determine benefit obligation at December 31: Discount rate 4.45 % 3.76 % 4.39 % 4.08 % 3.28 % 3.46 % Rate of compensation increase Not applicable 5.12 % Not applicable
Schedule of Pension Plan asset allocation	Our Pension Plan asset allocation at December 31, 2018 and 2017 is as follows: Percentage of Percentage of Plan Assets at Plan Assets at Plan assets by category December 31, 2018 December 31, 2017 Cash 2 % 40 % Equity securities: Domestic — 29 % International — 18 % Fixed income securities 98 % 8 % Gold bullion — 5 % Total 100 % 100 %
Summary of entity's pension plan assets fair value	2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — 465 — 465 Equity securities: International — 4 — 4 Fixed income securities: U.S. Treasuries — 46,415 — 46,415 Corporate bond — 91,521 — 91,521 Foreign bonds — 21,870 — 21,870 Total investment securities — 160,275 — 160,275 Cash 2,724 Total $ 162,999 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — 66,779 — 66,779 Equity securities: Domestic 49,540 — — 49,540 International 4,889 26,542 — 31,431 Fixed income securities: U.S. Treasuries — 6,455 — 6,455 Corporate bond — 587 — 587 Foreign Bonds — 6,591 — 6,591 Gold bullion 8,369 — — 8,369 Total investment securities 62,798 106,954 — 169,752 Cash 1,129 Total $ 170,881
Schedule of components of net periodic pension and other postretirement costs	The components of net periodic pension and other postretirement costs consisted of the following for the years ended December 31, 2018, 2017 and 2016: Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (in thousands) Components of net periodic benefit cost: Service cost $ — 8,367 12,199 — — 555 Interest cost 5,986 6,248 9,432 54 58 297 Expected return on plan assets (8,320) (10,113) (13,927) — — — Actuarial (gain) loss (15,501) 14,091 (8,891) — — — Actuarial gain amortization — — — (120) (180) (153) Prior service cost amortization — — — (2) (4) 4 Curtailment gain — (31,621) — — — (8,475) Settlement loss — — 20,681 — — — Total $ (17,835) (13,028) 19,494 (68) (126) (7,772)
Schedule of weighted average assumptions used to determine net periodic cost	The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2018, 2017 and 2016 are as follows: Other Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 Discount rate 3.76 % 4.39% / 3.96 1 % 4.60 % 3.28 % 3.46 % 4.44 % Expected return on plan assets 5.00 % 7.00% / 6.00 1 % 7.50 % Not applicable Rate of compensation increase Not applicable 5.12 % 5.12 % Not applicable ________________________ (1) Due to the Pension Plan freeze and associated remeasurement as of July 31, 2017, the discount rate changed from 4.39% to 3.96% and the expected return on assets changed from 7.00% to 6.00%.
Schedule of expected benefit payments to be paid	Under current plan provisions, we expect the following benefit payments to be paid: Other Pension Postretirement Benefits Benefits (in thousands) 2019 $ 7,984 250 2020 8,068 179 2021 9,371 131 2022 8,843 116 2023 9,031 79 2024 through 2028 46,521 233 $ 89,818 988

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity
Components of basic and diluted earnings per share	For the years ended December 31, 2018, 2017 and 2016, earnings per share were computed as follows: 2018 2017 2016 Net income attributable to Waddell & Reed Financial, Inc. $ 183,588 141,279 156,695 Weighted average shares outstanding, basic and diluted 80,468 83,573 82,668 Earnings per share, basic and diluted $ 2.28 1.69 1.90
Summary of other comprehensive income (loss) activity	The following tables summarize other comprehensive income (loss) activity for the years ended December 31, 2018 and 2017. Total Unrealized Postretirement accumulated gains (losses) on benefits other AFS investment unrealized comprehensive Year ended December 31, 2018 securities gains (losses) income (loss) (in thousands) Balance at December 31, 2017 $ 145 379 524 Amount reclassified to retained earnings for ASUs adopted in 2018 (955) 107 (848) Other comprehensive (loss) income before reclassification (360) 736 376 Amount reclassified from accumulated other comprehensive income (loss) 373 (94) 279 Net current period other comprehensive (loss) income (942) 749 (193) Balance at December 31, 2018 $ (797) 1,128 331 Change in valuation allowance for unrealized Total Unrealized gains Postretirement accumulated gains (losses) (losses) on benefits other on investment investment unrealized comprehensive Year ended December 31, 2017 securities securities gains (losses) income (loss) (in thousands) Balance at December 31, 2016 $ (3,972) (3,388) 603 (6,757) Other comprehensive income (loss) before reclassification 4,039 3,743 (106) 7,676 Amount reclassified from accumulated other comprehensive income (loss) 78 (355) (118) (395) Net current period other comprehensive income (loss) 4,117 3,388 (224) 7,281 Balance at December 31, 2017 $ 145 — 379 524
Summary of reclassifications from accumulated other comprehensive income (loss) and included in net income	Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow: For the year ended December 31, 2018 Tax (expense) Statement of income Pre-tax benefit Net of tax line item or retained earnings (in thousands) Reclassifications included in net income or retained earnings for ASUs adopted in 2018: Sponsored funds investment gains $ 1,295 (340) 955 Retained earnings Losses on available for sale debt securities $ (489) 116 (373) Investment and other income (loss) Amortization of postretirement benefits 122 (135) (13) Compensation and benefits and retained earnings Total $ 928 (359) 569 For the year ended December 31, 2017 Tax benefit Pre-tax (expense) Net of tax Statement of income line item (in thousands) Reclassifications included in net income: Sponsored funds investment losses $ (124) 46 (78) Investment and other income (loss) Valuation allowance — 355 355 Provision for income taxes Amortization of postretirement benefits 184 (66) 118 Compensation and benefits Total $ 60 335 395

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2018
Share-Based Compensation
Summary of nonvested share activity and related fair value	A summary of nonvested share activity and related fair value for the year ended December 31, 2018 follows: Weighted Average Nonvested Grant Date Stock Shares Fair Value Nonvested at December 31, 2017 5,088,640 $ 27.26 Granted 1,561,155 20.87 Vested (2,061,297) 32.02 Forfeited (494,738) 24.23 Nonvested at December 31, 2018 4,093,760 $ 22.79
Schedule of nonvested cash settled unit activity	A summary of nonvested RSU activity for the year ended December 31, 2018 follows: Nonvested Cash-Settled Units Nonvested at December 31, 2017 1,213,029 Granted 1,105,087 Vested (343,711) Forfeited (212,345) Nonvested at December 31, 2018 1,762,060

Uniform Net Capital Rule Requ_2

Uniform Net Capital Rule Requirements (Tables)	12 Months Ended
	Dec. 31, 2018
Uniform Net Capital Rule Requirements
Schedule of net capital and aggregated indebtedness information for broker/dealer subsidiaries	Net capital and aggregated indebtedness information for our broker-dealer subsidiaries is presented in the following table as of December 31, 2018 and 2017: 2018 2017 (in thousands) W&R IDI W&R IDI Net capital $ 57,109 25,688 28,024 21,167 Required capital 250 1,336 250 1,757 Excess of required capital $ 56,859 24,352 27,774 19,410 Ratio of aggregate indebtedness to net capital Not Not applicable 0.78 to 1.0 applicable 1.25 to 1.0

Rental Expense and Lease Comm_2

Rental Expense and Lease Commitments (Tables)	12 Months Ended
	Dec. 31, 2018
Rental Expense and Lease Commitments
Schedule of future minimum rental commitments under non-cancelable operating leases	Future minimum rental commitments under non‑cancelable operating leases are as follows: Year Commitments (in thousands) 2019 $ 16,488 2020 9,797 2021 5,757 2022 2,913 2023 2,320 Thereafter 5,161 $ 42,436

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2018
Related Party Transactions
Schedule of revenues for services provided or related to the Funds and IGI	Revenues for services provided or related to the Funds and IGI Funds for the years ended December 31, 2018, 2017 and 2016 are as follows: 2018 2017 2016 (in thousands) Investment management fees $ 486,581 508,035 523,304 Rule 12b-1 service and distribution fees 141,220 159,873 208,901 Shareholder service fees 102,385 106,595 120,241 Total revenues $ 730,186 774,503 852,446

Selected Quarterly Informatio_2

Selected Quarterly Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Selected Quarterly Information (Unaudited)
Schedule of selected quarterly Information	Quarter First Second Third Fourth (in thousands) 2018 Total revenues $ 297,615 295,338 295,118 272,230 Net income attributable to Waddell & Reed Financial, Inc. $ 46,337 44,478 46,305 46,468 Net income per share, basic and diluted $ 0.56 0.55 0.58 0.60 Quarter First Second Third Fourth (in thousands) 2017 Total revenues $ 286,564 286,657 289,447 294,476 Net income attributable to Waddell & Reed Financial, Inc. $ 33,871 24,061 53,582 29,765 Net income per share, basic and diluted $ 0.40 0.29 0.64 0.36

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Basis of Presentation and Consolidation (Details)	12 Months Ended
	Dec. 31, 2018segment
Summary of Significant Accounting Policies
Number of operating business segments	1

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Summary of property and equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Furniture and fixtures | Minimum
Summary of property and equipment
Estimated useful lives	3 years
Furniture and fixtures | Maximum
Summary of property and equipment
Estimated useful lives	10 years
Computer software | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Computer software | Maximum
Summary of property and equipment
Estimated useful lives	10 years
Data processing equipment | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Data processing equipment | Maximum
Summary of property and equipment
Estimated useful lives	5 years
Buildings | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Buildings | Maximum
Summary of property and equipment
Estimated useful lives	30 years
Other equipment | Minimum
Summary of property and equipment
Estimated useful lives	2 years
Other equipment | Maximum
Summary of property and equipment
Estimated useful lives	26 years
Leasehold improvements | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Leasehold improvements | Maximum
Summary of property and equipment
Estimated useful lives	15 years
Software Developed for Internal Use
Summary of property and equipment
Internal costs capitalized	$ 6.4	$ 10.5
Software Developed for Internal Use | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Software Developed for Internal Use | Maximum
Summary of property and equipment
Estimated useful lives	10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Deferred Sales Commissions and Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2018
Ivy Funds Class C
Revenue Recognition
Maximum service plan fee (as a percent)	0.25%
Maximum distribution plan fee (as a percent)	0.75%
Ivy Funds Class E
Revenue Recognition
Maximum service plan fee (as a percent)	0.25%
Ivy Funds Class E | Maximum
Revenue Recognition
Sales charge (as a percent)	5.75%
Ivy Funds Class Y
Revenue Recognition
Maximum service plan fee (as a percent)	0.25%
Ivy Funds Class R
Revenue Recognition
Maximum service plan fee (as a percent)	0.50%
Ivy Funds Class A
Revenue Recognition
Maximum service plan fee (as a percent)	0.25%
Maximum distribution plan fee (as a percent)	0.25%
Ivy Funds Class A | Maximum
Revenue Recognition
Sales charge (as a percent)	5.75%

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Advertising and Promotion (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Advertising and Promotion
Advertising expense	$ 8.1	$ 9.7	$ 9.4

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Share Based Compensation and Accounting for Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Percentage increments vested on anniversaries on the grant date			25.00%			33.33%
Vesting period			4 years
Par value, common stock		$ 0.01	$ 0.01	$ 0.01
Federal statutory tax rate			21.00%	35.00%	35.00%
Provisional tax impact related to the revaluation of deferred tax assets and liabilities		$ 5.4
Discrete tax benefit	$ (1)
Cash Settled RSU Plan
Percentage increments vested on anniversaries on the grant date			25.00%
Vesting period			4 years
Number of share of par value $0.01 on which lump sum cash payment is received by RSU holders			1
Par value, common stock			$ 0.01

New Accounting Guidance (Detail

New Accounting Guidance (Details) - ASU 2016-02 $ in Millions	Jan. 01, 2019USD ($)
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use asset	$ 35
Operating lease liability	35
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use asset	45
Operating lease liability	$ 45

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue Recognition
Total Revenues	$ 1,160,301	$ 1,157,144	$ 1,239,023
Investment management fees
Revenue Recognition
Total Revenues	507,906	531,850	557,112
Investment management fees - Funds
Revenue Recognition
Total Revenues	486,181	506,868	521,207
Investment management fees - Institutional
Revenue Recognition
Total Revenues	21,725	24,982	35,905
Underwriting and distribution fees
Revenue Recognition
Total Revenues	550,010	518,699	561,670
Unaffiliated
Revenue Recognition
Total Revenues	80,495	93,993	125,415
Unaffiliated Rule 12b-1 service and distribution fees
Revenue Recognition
Total Revenues	78,041	91,313	121,926
Unaffiliated sales commissions on front-end load mutual fund and variable annuity sales
Revenue Recognition
Total Revenues	1,886	1,498	565
Unaffiliated other revenues
Revenue Recognition
Total Revenues	568	1,182	2,924
Broker-dealer
Revenue Recognition
Total Revenues	469,515	424,706	436,255
Broker-dealer fee based asset allocation product revenue
Revenue Recognition
Total Revenues	269,069	240,089	224,319
Broker-dealer Rule 12b-1 service and distribution fees
Revenue Recognition
Total Revenues	70,938	75,850	93,260
Broker-dealer sales commissions on front-end load mutual fund and variable annuity sales
Revenue Recognition
Total Revenues	54,895	55,293	67,169
Broker-dealer sales commissions on other products
Revenue Recognition
Total Revenues	36,131	31,286	31,246
Broker-dealer other revenues
Revenue Recognition
Total Revenues	38,482	22,188	20,261
Shareholder service fees
Revenue Recognition
Total Revenues	$ 102,385	$ 106,595	$ 120,241

Investment Securities - Investm

Investment Securities - Investment securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Available for sale securities:
Available for sale securities	$ 250,764	$ 265,198
Trading debt securities:
Trading debt securities	118,222	124,390
Equity securities:
Equity securities	200,309	215,716
Equity method securities:
Total investment securities	617,135	700,492
Certificates of deposit
Available for sale securities:
Available for sale securities	5,001	12,999
Trading debt securities:
Trading debt securities		1,999
Commercial paper
Available for sale securities:
Available for sale securities	7,970	34,978
Trading debt securities:
Trading debt securities	1,993
Corporate bonds
Available for sale securities:
Available for sale securities	218,121	197,442
Trading debt securities:
Trading debt securities	77,250	55,414
U.S. treasury bills
Available for sale securities:
Available for sale securities	19,672	19,779
Trading debt securities:
Trading debt securities	5,884	4,929
Fixed income securities: Mortgage-backed securities
Trading debt securities:
Trading debt securities	7	10
Consolidated Sponsored Funds
Trading debt securities:
Trading debt securities	33,088	62,038
Equity securities:
Equity securities	24,879	77,048
Common Stock
Equity securities:
Equity securities	21,204	116
Sponsored funds
Equity securities:
Equity securities	153,548	137,857
Equity method securities:
Equity method securities	47,840	95,188
Sponsored funds | Previous accounting guidance
Equity method securities:
Available for sale securities		124,000
Sponsored privately offered funds
Equity securities:
Equity securities	$ 678	$ 695

Investment Securities - Maturit

Investment Securities - Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Amortized Cost
Within one year	$ 97,196
After one year but within five years	154,614
Amortized Cost	251,810	$ 266,259
Fair value
Within one year	96,726
After one year but within five years	154,038
Total fair value	250,764	$ 265,198
Fair value
Within one year	30,929
After one year but within five years	49,660
After five years but within 10 years	4,545
Total fair value	$ 85,134

Investment Securities - Inves_2

Investment Securities - Investment securities and summary of the gains (losses) related to securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Available for sale securities:
Amortized Cost	$ 251,810	$ 266,259
Unrealized gains	323	176
Unrealized losses	(1,369)	(1,237)
Fair value	250,764	265,198
Certificates of deposit
Available for sale securities:
Amortized Cost	5,000	13,000
Unrealized gains	1	1
Unrealized losses		(2)
Fair value	5,001	12,999
Commercial paper
Available for sale securities:
Amortized Cost	7,902	34,836
Unrealized gains	68	142
Fair value	7,970	34,978
Corporate bonds
Available for sale securities:
Amortized Cost	219,236	198,404
Unrealized gains	254	33
Unrealized losses	(1,369)	(995)
Fair value	218,121	197,442
U.S. treasury bills
Available for sale securities:
Amortized Cost	19,672	20,019
Unrealized losses		(240)
Fair value	$ 19,672	$ 19,779

Investment Securities - Sponsor

Investment Securities - Sponsored Privately Offered Funds (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investment Securities
Proceeds from maturities of trading debt securities	$ 84.5	$ 237.2	$ 234.4
Net realized gains on sale of equity securities	0.3
Net realized gains (losses) on sale of trading securities		(0.5)
Proceeds from sale of equity securities	8.3
Proceeds from sale of trading securities		19.8
Net realized gains on sale of available for sale securities		0.9	3.6
Proceeds from sale of available for sale securities		86.9	98.2
Consolidated Sponsored Funds
Investment Securities
Net realized gains (losses) on sale of trading securities	12.8	1.5
Proceeds from sale of trading securities	75.1	57.1
Sponsored funds
Investment Securities
Net realized gain (loss) on equity method investments		6.9	(2.3)
Proceeds from sale of equity method investments	1.2	73.2	$ 58.7
Sponsored funds | Maximum
Investment Securities
Net realized gain (loss) on equity method investments	0.1
Sponsored funds | Investment and other income (loss)
Investment Securities
Pre-tax charge to reflect the “other than temporary” decline in value of investments	$ 0.3	$ 1.3

Investment Securities - Availab

Investment Securities - Available for sale sponsored funds with fair values below carrying values (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)
Fair value
Less than 12 months		$ 215,186
Total fair value		215,186
Unrealized losses
Less than 12 months		(1,237)
Total unrealized losses		(1,237)
Securities in an unrealized loss position | security	44
Other-than-temporary impairment of available for sale securities	$ 0
Certificates of deposit
Fair value
Less than 12 months		2,998
Total fair value		2,998
Unrealized losses
Less than 12 months		(2)
Total unrealized losses		(2)
Corporate bonds
Fair value
Less than 12 months	36,302	192,409
12 months or longer	119,480
Total fair value	155,782	192,409
Unrealized losses
Less than 12 months	(160)	(995)
12 months or longer	(1,209)
Total unrealized losses	$ (1,369)	(995)
U.S. treasury bills
Fair value
Less than 12 months		19,779
Total fair value		19,779
Unrealized losses
Less than 12 months		(240)
Total unrealized losses		$ (240)

Investment Securities - Consoli

Investment Securities - Consolidated Sponsored Funds (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investment Securities
Cash	$ 231,997	$ 207,829
Redeemable noncontrolling interests	(11,463)	(14,509)
Consolidated Sponsored Funds
Investment Securities
Cash	4,285	8,472
Investments	57,967	139,086
Other assets	872	1,588
Other liabilities	(79)	(1,040)
Redeemable noncontrolling interests	(11,463)	(14,509)
Net interest in consolidated sponsored funds	$ 51,582	$ 133,597

Investment Securities - Fair va

Investment Securities - Fair value of investment securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value of investments
Cash equivalents	$ 196,931	$ 156,849
Available for sale securities	250,764	265,198
Trading debt securities	118,222	124,390
Equity securities	200,309	215,716
Total investment securities	617,135	700,492
Amount of transfer between levels	0	0
Money market funds
Fair value of investments
Cash equivalents	121,759	145,785
U.S. government sponsored enterprise note
Fair value of investments
Cash equivalents	895
Certificates of deposit
Fair value of investments
Available for sale securities	5,001	12,999
Trading debt securities		1,999
Commercial paper
Fair value of investments
Cash equivalents	74,277	11,064
Available for sale securities	7,970	34,978
Trading debt securities	1,993
Corporate bonds
Fair value of investments
Available for sale securities	218,121	197,442
Trading debt securities	77,250	55,414
U.S. treasury bills
Fair value of investments
Available for sale securities	19,672	19,779
Trading debt securities	5,884	4,929
Fixed income securities: Mortgage-backed securities
Fair value of investments
Trading debt securities	7	10
Common Stock
Fair value of investments
Equity securities	21,204	116
Consolidated Sponsored Funds
Fair value of investments
Trading debt securities	33,088	62,038
Equity securities	24,879	77,048
Sponsored funds
Fair value of investments
Equity securities	153,548	137,857
Equity method securities	47,840	95,188
Sponsored privately offered funds
Fair value of investments
Equity securities	678	695
Level 1
Fair value of investments
Cash equivalents	121,759	145,785
Total investment securities	247,459	310,209
Level 1 | Money market funds
Fair value of investments
Cash equivalents	121,759	145,785
Level 1 | Common Stock
Fair value of investments
Equity securities	21,192	116
Level 1 | Consolidated Sponsored Funds
Fair value of investments
Equity securities	24,879	77,048
Level 1 | Sponsored funds
Fair value of investments
Equity securities	153,548	137,857
Equity method securities	47,840	95,188
Level 2
Fair value of investments
Cash equivalents	75,172	11,064
Total investment securities	368,986	389,588
Level 2 | U.S. government sponsored enterprise note
Fair value of investments
Cash equivalents	895
Level 2 | Certificates of deposit
Fair value of investments
Available for sale securities	5,001	12,999
Trading debt securities		1,999
Level 2 | Commercial paper
Fair value of investments
Cash equivalents	74,277	11,064
Available for sale securities	7,970	34,978
Trading debt securities	1,993
Level 2 | Corporate bonds
Fair value of investments
Available for sale securities	218,121	197,442
Trading debt securities	77,250	55,414
Level 2 | U.S. treasury bills
Fair value of investments
Available for sale securities	19,672	19,779
Trading debt securities	5,884	4,929
Level 2 | Fixed income securities: Mortgage-backed securities
Fair value of investments
Trading debt securities	7	10
Level 2 | Consolidated Sponsored Funds
Fair value of investments
Trading debt securities	33,088	62,038
Level 3
Fair value of investments
Total investment securities	12
Level 3 | Common Stock
Fair value of investments
Equity securities	12
Other Assets Held at Net Value
Fair value of investments
Total investment securities	678	695
Other Assets Held at Net Value | Sponsored privately offered funds
Fair value of investments
Equity securities	$ 678	$ 695

Investment Securities - Inves_3

Investment Securities - Investment category (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Additions	$ 359
Valuation change	5
Redemptions	(352)
Level 3 assets at end of period	$ 12

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - Not designated as a hedge - Total return swap contracts $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)contract	Dec. 31, 2017USD ($)contract
Derivative Financial Instruments
Number of contracts | contract	5	6
Notional value	$ 194,400	$ 213,900
Cash collateral with the counterparties	5,200	9,700
Level 2
Derivative Financial Instruments
Fair value - assets	4,968
Fair value - liabilities		1,093
Level 2 | Investment and other income (loss)
Derivative Financial Instruments
Net gains (losses) recognized in income	15,163	(36,368)
Level 2 | Prepaid expenses and other current assets (liabilities)
Derivative Financial Instruments
Fair value - assets	$ 4,968
Level 2 | Other current liabilities
Derivative Financial Instruments
Fair value - liabilities		$ 1,093

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Summary of property and equipment
Property and equipment, at cost	$ 202,698	$ 206,361
Accumulated depreciation	(139,269)	(118,694)
Property and equipment, net	63,429	87,667
Depreciation	25,649	20,983	$ 18,358
Leasehold improvements
Summary of property and equipment
Property and equipment, at cost	$ 21,790	22,106
Leasehold improvements | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Leasehold improvements | Maximum
Summary of property and equipment
Estimated useful lives	15 years
Furniture and fixtures
Summary of property and equipment
Property and equipment, at cost	$ 28,482	30,529
Furniture and fixtures | Minimum
Summary of property and equipment
Estimated useful lives	3 years
Furniture and fixtures | Maximum
Summary of property and equipment
Estimated useful lives	10 years
Equipment
Summary of property and equipment
Property and equipment, at cost	$ 20,248	20,802
Equipment | Minimum
Summary of property and equipment
Estimated useful lives	2 years
Equipment | Maximum
Summary of property and equipment
Estimated useful lives	26 years
Computer software
Summary of property and equipment
Property and equipment, at cost	$ 100,507	99,644
Computer software | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Computer software | Maximum
Summary of property and equipment
Estimated useful lives	10 years
Data processing equipment
Summary of property and equipment
Property and equipment, at cost	$ 17,056	18,678
Data processing equipment | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Data processing equipment | Maximum
Summary of property and equipment
Estimated useful lives	5 years
Buildings
Summary of property and equipment
Property and equipment, at cost	$ 11,772	11,759
Buildings | Minimum
Summary of property and equipment
Estimated useful lives	1 year
Buildings | Maximum
Summary of property and equipment
Estimated useful lives	30 years
Land
Summary of property and equipment
Property and equipment, at cost	$ 2,843	2,843
Property and equipment under capital leases
Summary of property and equipment
Property and equipment, at cost	1,600	1,900
Accumulated depreciation	$ (1,100)	$ (1,000)

Goodwill and Identifiable Int_3

Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Goodwill and identifiable intangible assets
Goodwill	$ 106,970	$ 106,970
Other	200	200
Total identifiable intangible assets	38,899	40,099
Total goodwill and identifiable intangible assets	145,869	147,069
Mutual fund management advisory contracts
Goodwill and identifiable intangible assets
Mutual fund contracts	$ 38,699	38,699
Mutual fund management subadvisory contract
Goodwill and identifiable intangible assets
Mutual fund contracts		$ 1,200

Indebtedness (Details)

Indebtedness (Details) $ in Thousands	Jan. 13, 2018USD ($)	Oct. 20, 2017USD ($)	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)	Aug. 31, 2010USD ($)
Indebtedness
Repayment of short-term debt			$ 94,925
Long-term debt			94,854	$ 94,783
Credit Facility
Indebtedness
Revolving credit facility term		3 years
Maximum borrowing capacity		$ 100,000
Amount that borrowing capacity can be expanded upon entity's request		$ 200,000
Borrowing outstanding under the facility			$ 0	$ 0
Senior Notes
Indebtedness
Face amount of notes issued and sold					$ 190,000
Consolidated leverage ratio			0.3
Number of consecutive quarters for which the maximum consolidated leverage ratio is required to be maintained under financial covenants | item			4
Number of consecutive quarters for which the minimum consolidated interest coverage ratio is required to be maintained under financial covenants | item			4
Consolidated interest coverage ratio			48.7
Senior Notes | Maximum
Indebtedness
Consolidated leverage ratio			3
Senior Notes | Minimum
Indebtedness
Consolidated interest coverage ratio			4
Senior 5.0% unsecured notes due, 2018 ("Series A Notes")
Indebtedness
Repayment of short-term debt	$ 95,000
Senior 5.75% unsecured notes due, 2021 ("Series B Notes")
Indebtedness
Fair value of outstanding long-term indebtedness			$ 98,000
Long-term debt			$ 94,900

Income Taxes - Provision for in

Income Taxes - Provision for income taxes and reconciliation of statutory federal income tax rate with effective income tax rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current taxes:
Federal	$ 54,071	$ 73,167	$ 72,711
State	625	7,720	7,174
Foreign	1		17
Total current taxes	54,697	80,887	79,902
Deferred Income Tax Expense (Benefit)	783	20,481	1,982
Provision for income taxes	$ 55,480	$ 101,368	$ 81,884
Reconciliation of statutory federal income tax rate with the entity's effective income tax rate
Statutory federal income tax rate (as a percent)	21.00%	35.00%	35.00%
State income taxes, net of federal tax benefit (as a percent)	2.40%	2.20%	2.00%
Share-based compensation (as a percent)	1.80%	3.40%
Effects of U.S. tax rate decrease (as a percent)	(0.40%)	2.20%
Uncertain tax positions (as a percent)	(2.20%)	(0.20%)	(0.10%)
Valuation allowance on losses capital in nature (as a percent)		(1.00%)	(3.20%)
Other items (as a percent)	0.70%	(0.30%)	0.40%
Effective income tax rate (as a percent)	23.30%	41.30%	34.10%

Income Taxes - Deferred tax lia

Income Taxes - Deferred tax liabilities and deferred tax assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Benefit plans		$ 3,381
Accrued compensation and related costs	$ 5,868	5,558
Other accrued expenses	3,861	4,094
Unrealized losses on investment securities and partnerships	6,272
Share-based compensation	10,300	15,047
Unused state tax credits	2,618	2,788
State net operating loss carryforwards	7,266	7,235
Other	1,171	2,874
Total gross deferred assets	37,356	40,977
Deferred tax liabilities:
Property and equipment	(3,700)	(7,301)
Benefit plans	(1,872)
Identifiable intangible assets	(9,206)	(7,419)
Unrealized gain on investments securities and partnerships		(3,554)
Prepaid expenses	(2,478)	(1,679)
Other	(513)	(481)
Total gross deferred liabilities	(17,769)	(20,434)
Valuation allowance	(7,266)	(7,235)
Net deferred tax asset	12,321	13,308
Deferred tax assets, operating loss carryforwards, subject to expiration	7,300	7,200
Operating loss carryforward, valuation allowance	7,300	$ 7,200
State tax credit carryforwards that will expire between 2024 and 2034 if not utilized	2,300
State tax credit carryforwards that will expire in 2026 if not utilized	200
State tax credit carryforwards, indefinite carryforward	$ 100

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefits narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Unrecognized tax benefits, including penalties and interest that if recognized would impact effective tax rate	$ 2.7	$ 10.9
Unrecognized tax benefits, including penalties and interest, net of federal tax benefit that if recognized would affect effective tax rate	2.4	8.9
Unrecognized Tax Benefits, Period Increase (Decrease)	9.3
Unrecognized tax benefits, net of federal benefit	7.6
Accrued interest and penalties related to uncertain tax positions	0.7	4
Accrued interest and penalties related to uncertain tax positions, net of federal benefit	0.6	$ 3.5
Total expense of interest and penalties, net of federal benefit related to uncertain tax positions	2.8
Unrecognized tax benefits, settlement	3
Uncertain tax positions, additional penalties and interest	$ 0.2

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of unrecognized tax benefits, excluding penalties and interest
Balance at the beginning of the period	$ 6,843	$ 7,734	$ 8,448
Increases during the year:
Gross increases - tax positions in prior period	712	244	465
Gross increases - current-period tax positions	331	97	494
Decreases during the year:
Gross decreases - tax positions in prior period	(4,219)	(56)	(167)
Decreases due to settlements with taxing authorities	(1,385)	(178)	(21)
Decreases due to lapse of statute of limitations	(212)	(998)	(1,485)
Balance at the end of the period	$ 2,070	$ 6,843	$ 7,734
Number of open tax years settled			2 years

Pension Plan and Postretireme_3

Pension Plan and Postretirement Benefits Other Than Pension - Changes in net funded status, disclosure of amounts recognized in the balance sheet, and the assumptions used to determine the benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amounts recognized in the statement of financial position:
Noncurrent liabilities	$ (798)	$ (15,137)
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
Reduction of the accrued pension liability		(30,000)
Curtailment gain		31,621
Change in projected benefit obligation:
Net benefit obligation at beginning of year	$ 184,245	180,921	$ 210,783
Service cost		8,367	12,199
Interest cost	5,986	6,248	9,432
Benefits paid	(13,690)	(8,511)	(52,288)
Actuarial (gain) loss	(22,013)	28,841	(19,886)
Curtailment gain		(31,621)
Settlement loss			20,681
Net benefit obligation at end of year	154,528	184,245	180,921
Change in plan assets:
Fair value of plan assets at beginning of year	170,881	144,529	173,885
Actual return on plan assets	1,808	24,863	2,932
Employer contributions	4,000	10,000	20,000
Benefits paid	(13,690)	(8,511)	(52,288)
Fair value of plan assets at end of year	162,999	170,881	144,529
Funded status at end of year	8,471	(13,364)	(36,392)
Amounts recognized in the statement of financial position:
Noncurrent assets	8,471
Noncurrent liabilities		(13,364)	(36,392)
Net amount recognized at end of year	$ 8,471	$ (13,364)	$ (36,392)
Weighted average assumptions used to determine benefit obligation at December 31:
Discount rate (as a percent)	4.45%	3.76%	4.39%
Rate of compensation increase (as a percent)			5.12%
Other Postretirement Benefits
Pension Plan and Postretirement Benefits Other than Pension
Age of employees after which the plan does not provide benefits	65 years
Curtailment gain			$ 8,475
Change in projected benefit obligation:
Net benefit obligation at beginning of year	$ 2,195	$ 2,446	8,421
Service cost			555
Interest cost	54	58	297
Benefits paid	(602)	(954)	(674)
Actuarial (gain) loss	(965)	139	1,790
Retiree contributions	366	506	532
Curtailment gain			(8,475)
Net benefit obligation at end of year	1,048	2,195	2,446
Change in plan assets:
Employer contributions	236	448	142
Retiree contributions	366	506	532
Benefits paid	(602)	(954)	(674)
Funded status at end of year	(1,048)	(2,195)	(2,446)
Amounts recognized in the statement of financial position:
Current liabilities	(250)	(422)	(458)
Noncurrent liabilities	(798)	(1,773)	(1,988)
Net amount recognized at end of year	$ (1,048)	$ (2,195)	$ (2,446)
Weighted average assumptions used to determine benefit obligation at December 31:
Discount rate (as a percent)	4.08%	3.28%	3.46%

Pension Plan and Postretireme_4

Pension Plan and Postretirement Benefits Other Than Pension - Pension plan asset allocation (Details)	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations	100.00%	100.00%
Cash
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations	2.00%	40.00%
Domestic
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations		29.00%
International
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations		18.00%
Fixed income securities
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations	98.00%	8.00%
Gold bullion
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations		5.00%

Pension Plan and Postretireme_5

Pension Plan and Postretirement Benefits Other Than Pension - Plan assets fair value (Details) - Pension Benefits - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	$ 162,999	$ 170,881	$ 144,529	$ 173,885
Total investment securities
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	160,275	169,752
Cash equivalents
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	465	66,779
Domestic
Pension Plan and Postretirement Benefits Other than Pension
Total fair value		49,540
International
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	4	31,431
U.S. treasuries
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	46,415	6,455
Corporate bonds
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	91,521	587
Foreign Bonds
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	21,870	6,591
Gold bullion
Pension Plan and Postretirement Benefits Other than Pension
Total fair value		8,369
Cash
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	2,724	1,129
Level 1 | Total investment securities
Pension Plan and Postretirement Benefits Other than Pension
Total fair value		62,798
Level 1 | Domestic
Pension Plan and Postretirement Benefits Other than Pension
Total fair value		49,540
Level 1 | International
Pension Plan and Postretirement Benefits Other than Pension
Total fair value		4,889
Level 1 | Gold bullion
Pension Plan and Postretirement Benefits Other than Pension
Total fair value		8,369
Level 2 | Total investment securities
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	160,275	106,954
Level 2 | Cash equivalents
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	465	66,779
Level 2 | International
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	4	26,542
Level 2 | U.S. treasuries
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	46,415	6,455
Level 2 | Corporate bonds
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	91,521	587
Level 2 | Foreign Bonds
Pension Plan and Postretirement Benefits Other than Pension
Total fair value	$ 21,870	$ 6,591

Pension Plan and Postretireme_6

Pension Plan and Postretirement Benefits Other Than Pension - Components of net periodic costs, weighted average assumptions, and expected benefit payments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Benefits
Components of net periodic benefit cost:
Service cost			$ 8,367	$ 12,199
Interest cost		$ 5,986	6,248	9,432
Expected return on plan assets		(8,320)	(10,113)	(13,927)
Actuarial (gain) loss		(15,501)	14,091	(8,891)
Curtailment gain			(31,621)
Settlement loss				20,681
Total		$ (17,835)	$ (13,028)	$ 19,494
Weighted average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)		3.76%		4.60%
Expected return on plan assets (as a percent)	6.00%	5.00%		7.50%
Rate of compensation increase (as a percent)			5.12%	5.12%
Expected benefit payments
2,019		$ 7,984
2,020		8,068
2,021		9,371
2,022		8,843
2,023		9,031
2024 through 2028		46,521
Total		$ 89,818
Pension Benefits | Maximum
Weighted average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)		3.76%	4.39%
Expected return on plan assets (as a percent)			7.00%
Pension Benefits | Minimum
Weighted average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)			3.96%
Expected return on plan assets (as a percent)			6.00%
Other Postretirement Benefits
Components of net periodic benefit cost:
Service cost				$ 555
Interest cost		$ 54	$ 58	297
Actuarial gain amortization		(120)	(180)	(153)
Prior service cost amortization		(2)	(4)	4
Curtailment gain				(8,475)
Total		$ (68)	$ (126)	$ (7,772)
Weighted average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)		3.28%	3.46%	4.44%
Expected benefit payments
2,019		$ 250
2,020		179
2,021		131
2,022		116
2,023		79
2024 through 2028		233
Total		988
Contributions by participants		$ 366	$ 506	$ 532

Pension Plan and Postretireme_7

Pension Plan and Postretirement Benefits Other Than Pension - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Plan and Postretirement Benefits Other than Pension
Defined benefit plan liabilities		$ 798	$ 15,137
Pension Benefits
Pension Plan and Postretirement Benefits Other than Pension
Defined benefit plan assets		$ 8,471
Defined benefit plan liabilities			$ 13,364	$ 36,392
Other Postretirement Benefits
Pension Plan and Postretirement Benefits Other than Pension
Initial health care cost trend rate prior to age 65 (as a percent)		8.05%	7.02%
Initial health care cost trend rate subsequent to age 65 (as a percent)		9.30%	8.47%
Initial health care cost trend rate (as a percent)				6.82%
Rate to which the cost trend rate is assumed to decline (as a percent)		4.50%
Defined benefit plan liabilities		$ 798	$ 1,773	$ 1,988
Current portion of postretirement liability		$ 250	$ 422	$ 458
SERP
Pension Plan and Postretirement Benefits Other than Pension
Lump sum payment	$ 3,800

Defined Contribution Plan (Deta

Defined Contribution Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Contribution Plan
Employer's matching contribution to the plan	$ 6.8	$ 6	$ 6.8
Percentage of participant’s eligible compensation for discretionary nonelective contribution		4.00%
Defined Contribution Plan Employer Discretionary Contribution Amount		$ 5.5

Stockholders' Equity - Earnings

Stockholders' Equity - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Components of basic and diluted earnings per share
Net income attributable to Waddell & Reed Financial, Inc.		$ 46,468	$ 46,305	$ 44,478	$ 46,337	$ 29,765	$ 53,582	$ 24,061	$ 33,871	$ 183,588	$ 141,279	$ 156,695
Weighted average shares outstanding - basic and diluted										80,468,000	83,573,000	82,668,000
Earnings per share:
Earnings per share, basic and diluted (in dollars per share)										$ 2.28	$ 1.69	$ 1.90
Dividends
Dividends accrued (in dollars per share)	$ 0.25									$ 1	$ 1.63	$ 1.84
Dividends to be paid	$ 19,200	$ 19,200				$ 20,700				$ 19,200	$ 20,700
Common stock repurchases
Shares repurchased in the open market or privately										6,963,269	1,842,337	2,320,726
Shares repurchased from employees to cover income tax withholdings										729,882	402,337	423,726

Stockholders' Equity - Other co

Stockholders' Equity - Other comprehensive income (loss) activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	$ 872,884	$ 844,002
Balance at the end of the period	883,450	872,884
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	524	(6,757)
Amount reclassified to retained earnings for ASUs adopted in 2018	(848)
Other comprehensive income (loss) before reclassification	376	7,676
Amount reclassified from accumulated other comprehensive loss	279	(395)
Net current period other comprehensive income (loss)	(193)	7,281
Balance at the end of the period	331	524
Unrealized gains (losses) on investment securities
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	145	(3,972)
Amount reclassified to retained earnings for ASUs adopted in 2018	(955)
Other comprehensive income (loss) before reclassification	(360)	4,039
Amount reclassified from accumulated other comprehensive loss	373	78
Net current period other comprehensive income (loss)	(942)	4,117
Balance at the end of the period	(797)	145
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		(3,388)
Other comprehensive income (loss) before reclassification		3,743
Amount reclassified from accumulated other comprehensive loss		(355)
Net current period other comprehensive income (loss)		3,388
Postretirement benefits unrealized gains (losses)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	379	603
Amount reclassified to retained earnings for ASUs adopted in 2018	107
Other comprehensive income (loss) before reclassification	736	(106)
Amount reclassified from accumulated other comprehensive loss	(94)	(118)
Net current period other comprehensive income (loss)	749	(224)
Balance at the end of the period	$ 1,128	$ 379

Stockholders' Equity - Reclassi

Stockholders' Equity - Reclassifications from accumulated other comprehensive income (loss) and included in net income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Reclassifications from accumulated other comprehensive income
Reclassifications included in net income:
Pre-tax	$ 928	$ 60
Tax (expense) benefit	(359)	335
Net of tax	569	395
Sponsored funds investment gains | Retained earnings | Reclassifications from accumulated other comprehensive income
Reclassifications included in net income:
Pre-tax	1,295
Tax (expense) benefit	(340)
Net of tax	955
Sponsored funds investment gains | Investment and other income (loss) | Reclassifications from accumulated other comprehensive income
Reclassifications included in net income:
Pre-tax		(124)
Tax (expense) benefit		46
Net of tax		(78)
Losses on available for sale debt securities | Investment and other income (loss) | Reclassifications from accumulated other comprehensive income
Reclassifications included in net income:
Pre-tax	(489)
Tax (expense) benefit	116
Net of tax	(373)
Change in valuation allowance for unrealized gains (losses) on investment securities
Reclassifications included in net income:
Net of tax		355
Change in valuation allowance for unrealized gains (losses) on investment securities | Provision for income taxes | Reclassifications from accumulated other comprehensive income
Reclassifications included in net income:
Tax (expense) benefit		355
Net of tax		355
Postretirement benefits unrealized gains (losses)
Reclassifications included in net income:
Net of tax	94	118
Postretirement benefits unrealized gains (losses) | Underwriting and distribution expense and Compensation and related costs | Reclassifications from accumulated other comprehensive income
Reclassifications included in net income:
Pre-tax	122	184
Tax (expense) benefit	(135)	(66)
Net of tax	$ (13)	$ 118

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2015	Dec. 31, 2017
Share-Based Compensation
Vesting period	4 years
Percentage increments vested on anniversaries of the grant date	25.00%	33.33%
Par value, common stock	$ 0.01		$ 0.01
Cash Settled RSU Plan
Share-Based Compensation
Vesting period	4 years
Percentage increments vested on anniversaries of the grant date	25.00%
Number of share of par value $0.01 on which lump sum cash payment is received by RSU holders	1
Par value, common stock	$ 0.01
Number of shares of common stock on which each RSU holders are entitled to dividend equivalent payments	1
1998 Stock Incentive Plan ("SI Plan")
Share-Based Compensation
Maximum number of shares of common stock authorized for issuance	35,600,000
Number of shares of common stock available for issuance	2,121,728

Share-Based Compensation - Nonv

Share-Based Compensation - Nonvested share activity and related fair value (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Nonvested Stock Shares, Weighted Average Grant Date Fair Value
Compensation expense	$ 51,565	$ 57,716	$ 51,514
Nonvested stock awards
Nonvested Stock Shares
Nonvested at the beginning of the period (in shares)	5,088,640
Granted (in shares)	1,561,155
Vested (in shares)	(2,061,297)
Forfeited (in shares)	(494,738)
Nonvested at the end of the period (in shares)	4,093,760	5,088,640
Nonvested Stock Shares, Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 27.26
Granted (in dollars per share)	20.87
Vested (in dollars per share)	32.02
Forfeited (in dollars per share)	24.23
Nonvested at the end of the period (in dollars per share)	$ 22.79	$ 27.26
Compensation expense	$ 51,600	$ 57,700	51,500
Related income tax benefit recognized	10,000	12,200	19,200
Remaining unamortized expense of nonvested stock expected to be recognized	$ 60,600
Period for expense amortized	2 years 2 months 12 days
Total fair value of shares vested	$ 41,000	$ 20,800	$ 26,700
Cash Settled RSU Plan
Nonvested Stock Shares
Nonvested at the beginning of the period (in shares)	1,213,029
Granted (in shares)	1,105,087
Vested (in shares)	(343,711)
Forfeited (in shares)	(212,345)
Nonvested at the end of the period (in shares)	1,762,060	1,213,029

Uniform Net Capital Rule Requ_3

Uniform Net Capital Rule Requirements - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)subsidiary	Dec. 31, 2017USD ($)
Uniform Net Capital Rule Requirements
Number of subsidiaries registered as broker dealers | subsidiary	2
Maximum ratio of aggregate indebtedness to net capital	15
Minimum net capital | $	$ 250	$ 250
Net capital percentage of debit balances	2.00%	2.00%

Uniform Net Capital Rule Requ_4

Uniform Net Capital Rule Requirements - Net capital and aggregated indebtedness information for broker/dealer subsidiaries (Details) $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Waddell & Reed, Inc. (W&R)
Net capital and aggregated indebtedness information for entity's broker/dealer subsidiaries
Net capital	$ 57,109	$ 28,024
Required capital	250	250
Excess of required capital	56,859	27,774
Ivy Funds Distributor, Inc. (IFDI)
Net capital and aggregated indebtedness information for entity's broker/dealer subsidiaries
Net capital	25,688	21,167
Required capital	1,336	1,757
Excess of required capital	$ 24,352	$ 19,410
Ratio of aggregate indebtedness to net capital	0.78	1.25

Rental Expense and Lease Comm_3

Rental Expense and Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Rental Expense and Lease Commitments
Rent expense	$ 22,700	$ 24,500	$ 24,300
Future minimum rental commitments under non-cancelable operating leases
2,019	16,488
2,020	9,797
2,021	5,757
2,022	2,913
2,023	2,320
Thereafter	5,161
Total	$ 42,436

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transactions
Total revenues	$ 730,186	$ 774,503	$ 852,446
Receivables due from the Funds	14,600	20,600
Investment management fees
Related Party Transactions
Total revenues	486,581	508,035	523,304
Rule 12b-1 serve and distribution fees
Related Party Transactions
Total revenues	141,220	159,873	208,901
Shareholder service fees
Related Party Transactions
Total revenues	$ 102,385	$ 106,595	$ 120,241

Contingencies (Details)

Contingencies (Details) - USD ($) $ in Thousands	Nov. 19, 2018	Feb. 14, 2018
Case No I6CV02338 Div. 4
Shareholder Derivative Litigation
Settlement amount		$ 19,900
Attorney’s fees plus nominal costs associated with notice to shareholders		$ 6,100
Case No. 17-2365 D. Kan
Shareholder Derivative Litigation
Settlement amount	$ 4,875

Selected Quarterly Informatio_3

Selected Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Selected Quarterly Information (Unaudited)
Total revenues	$ 272,230	$ 295,118	$ 295,338	$ 297,615	$ 294,476	$ 289,447	$ 286,657	$ 286,564
Net income attributable to Waddell & Reed Financial, Inc.	$ 46,468	$ 46,305	$ 44,478	$ 46,337	$ 29,765	$ 53,582	$ 24,061	$ 33,871	$ 183,588	$ 141,279	$ 156,695
Net income per share, basic and diluted	$ 0.60	$ 0.58	$ 0.55	$ 0.56	$ 0.36	$ 0.64	$ 0.29	$ 0.40	$ 2.28	$ 1.69	$ 1.90