Waddell & Reed Financial (WDR) 10-Q 2 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 26, 2019
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2019
Entity File Number	001-13913
Entity Registrant Name	WADDELL & REED FINANCIAL INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0261715
Entity Address, Address Line One	6300 Lamar Avenue
Entity Address, City or Town	Overland Park
Entity Address, State or Province	KS
Entity Address, Postal Zip Code	66202
City Area Code	913
Local Phone Number	236-2000
Title of 12(b) Security	Class A Common Stock, $.01 par value
Trading Symbol	WDR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		73,075,318
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001052100
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 168,926	$ 231,997
Cash and cash equivalents - restricted	28,671	59,558
Investment securities	697,903	617,135
Receivables:
Funds and separate accounts	20,526	18,112
Customers and other	81,222	151,515
Prepaid expenses and other current assets	24,265	27,164
Total current assets	1,021,513	1,105,481
Property and equipment, net	54,029	63,429
Goodwill and identifiable intangible assets	145,869	145,869
Deferred income taxes	4,372	12,321
Other non-current assets	42,899	16,979
Total assets	1,268,682	1,344,079
Liabilities:
Accounts payable	19,771	26,253
Payable to investment companies for securities	40,943	100,085
Payable to third party brokers	19,179	19,891
Payable to customers	47,862	86,184
Accrued compensation	49,197	54,129
Other current liabilities	92,989	51,580
Total current liabilities	269,941	338,122
Long-term debt	94,890	94,854
Accrued pension and postretirement costs	814	798
Other non-current liabilities	31,266	15,392
Total liabilities	396,911	449,166
Redeemable noncontrolling interests	15,115	11,463
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; 73,712 shares outstanding (76,790 at December 31, 2018)	997	997
Additional paid-in capital	294,487	311,264
Retained earnings	1,227,314	1,198,445
Cost of 25,989 common shares in treasury (22,911 at December 31, 2018)	(669,223)	(627,587)
Accumulated other comprehensive income	3,081	331
Total stockholders' equity	856,656	883,450
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$ 1,268,682	$ 1,344,079

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2019	Dec. 31, 2018
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	73,712	76,790
Common shares in treasury	25,989	22,911

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Total Revenues	$ 270,154	$ 295,338	$ 529,564	$ 592,953
Operating expenses:
Distribution	116,477	114,315	226,271	228,785
Compensation and benefits (including share-based compensation of $11,199, $14,902, $23,892, and $29,670, respectively)	61,876	65,828	126,719	134,613
General and administrative	16,037	19,143	30,741	38,681
Technology	16,442	17,235	32,750	33,879
Occupancy	6,701	6,969	13,416	13,933
Marketing and advertising	2,399	2,896	4,363	5,177
Depreciation	5,228	5,819	11,229	11,121
Subadvisory fees	3,715	3,683	7,272	7,391
Intangible asset impairment		1,200		1,200
Total	228,875	237,088	452,761	474,780
Operating income	41,279	58,250	76,803	118,173
Investment and other income	9,025	841	18,478	3,657
Interest expense	(1,552)	(1,551)	(3,100)	(3,353)
Income before provision for income taxes	48,752	57,540	92,181	118,477
Provision for income taxes	14,190	13,284	24,861	28,250
Net income	34,562	44,256	67,320	90,227
Net income (loss) attributable to redeemable noncontrolling interests	614	(222)	1,318	(588)
Net income attributable to Waddell & Reed Financial, Inc.	$ 33,948	$ 44,478	$ 66,002	$ 90,815
Net income per share attributable to Waddell and Reed Financial, Inc. common shareholders, basic and diluted:	$ 0.45	$ 0.55	$ 0.87	$ 1.10
Weighted average shares outstanding, basic and diluted:	74,694	81,449	75,492	82,275
Investment management fees
Revenues:
Total Revenues	$ 112,870	$ 130,391	$ 222,632	$ 264,083
Underwriting and distribution fees
Revenues:
Total Revenues	133,495	137,873	259,740	275,914
Shareholder service fees
Revenues:
Total Revenues	$ 23,789	$ 27,074	$ 47,192	$ 52,956

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Income
Compensation and benefits, share-based compensation	$ 11,199	$ 14,902	$ 23,892	$ 29,670

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 34,562	$ 44,256	$ 90,227	$ 67,320
Other comprehensive income:
Unrealized gain (loss) on available for sale investment securities during the period, net of income tax expense (benefit) of $402, $53, $919 and $(298), respectively	1,281	169	(962)	2,939
Postretirement benefit, net of income tax benefit of $(28), $(7), $(58) and $(15), respectively	(95)	(23)	(46)	(189)
Comprehensive income	35,748	44,402	89,219	70,070
Comprehensive income (loss) attributable to redeemable noncontrolling interests	614	(222)	(588)	1,318
Comprehensive income attributable to Waddell & Reed Financial, Inc.	$ 35,134	$ 44,624	$ 89,807	$ 68,752

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Comprehensive Income
Unrealized gain (loss) on available for sale investment securities during the period, income tax expense (benefit)	$ 402	$ 53	$ 919	$ (298)
Postretirement benefit, income tax benefit	$ (28)	$ (7)	$ (58)	$ (15)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
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)
Balance at the beginning 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 Stockholders' Equity
Net income (loss)			90,815			90,815
Recognition of equity compensation		23,643	913			24,556
Net issuance/forfeiture of nonvested shares		(22,909)		22,909
Dividends accrued			(40,880)			(40,880)
Repurchase of common stock				(60,649)		(60,649)
Other comprehensive income (loss)					(1,008)	(1,008)
Balance at the end of the period at Jun. 30, 2018	$ 997	302,144	1,144,090	(560,181)	(1,332)	885,718
Balance (in shares) at Jun. 30, 2018	99,701
Balance at the beginning of the period at Dec. 31, 2017						14,509
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						(588)
Net subscription of redeemable noncontrolling interests in sponsored funds						3,131
Balance at the end of the period at Jun. 30, 2018						17,052
Balance at the beginning of the period at Mar. 31, 2018	$ 997	283,768	1,118,922	(513,241)	(1,478)	888,968
Balance (in shares) at Mar. 31, 2018	99,701
Increase (Decrease) in Stockholders' Equity
Net income (loss)			44,478			44,478
Recognition of equity compensation		11,578	704			12,282
Net issuance/forfeiture of nonvested shares		6,798		(6,798)
Dividends accrued			(20,014)			(20,014)
Repurchase of common stock				(40,142)		(40,142)
Other comprehensive income (loss)					146	146
Balance at the end of the period at Jun. 30, 2018	$ 997	302,144	1,144,090	(560,181)	(1,332)	885,718
Balance (in shares) at Jun. 30, 2018	99,701
Balance at the beginning of the period at Mar. 31, 2018						18,570
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						(222)
Net subscription of redeemable noncontrolling interests in sponsored funds						(1,296)
Balance at the end of the period at Jun. 30, 2018						17,052
Balance at the beginning 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 Stockholders' Equity
Net income (loss)			66,002			66,002
Recognition of equity compensation		17,549	240			17,789
Net issuance/forfeiture of nonvested shares		(34,326)		34,326
Dividends accrued			(37,373)			(37,373)
Repurchase of common stock				(75,962)		(75,962)
Other comprehensive income (loss)					2,750	2,750
Balance at the end of the period at Jun. 30, 2019	$ 997	294,487	1,227,314	(669,223)	3,081	856,656
Balance (in shares) at Jun. 30, 2019	99,701
Balance at the beginning of the period at Dec. 31, 2018						11,463
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						1,318
Net subscription of redeemable noncontrolling interests in sponsored funds						2,334
Balance at the end of the period at Jun. 30, 2019						15,115
Balance at the beginning of the period at Mar. 31, 2019	$ 997	290,872	1,211,566	(636,726)	1,895	868,604
Balance (in shares) at Mar. 31, 2019	99,701
Increase (Decrease) in Stockholders' Equity
Net income (loss)			33,948			33,948
Recognition of equity compensation		7,941	148			8,089
Net issuance/forfeiture of nonvested shares		(4,326)		4,326
Dividends accrued			(18,348)			(18,348)
Repurchase of common stock				(36,823)		(36,823)
Other comprehensive income (loss)					1,186	1,186
Balance at the end of the period at Jun. 30, 2019	$ 997	$ 294,487	$ 1,227,314	$ (669,223)	$ 3,081	856,656
Balance (in shares) at Jun. 30, 2019	99,701
Balance at the beginning of the period at Mar. 31, 2019						12,936
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						614
Net subscription of redeemable noncontrolling interests in sponsored funds						1,565
Balance at the end of the period at Jun. 30, 2019						$ 15,115

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests
Dividends accrued (in dollars per share)	$ 0.25	$ 0.25	$ 0.50	$ 0.50

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 34,562	$ 44,256	$ 90,227	$ 67,320	$ 90,227
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			11,121	11,543
Write-down of impaired assets			1,200
Amortization of deferred sales commissions			1,890	1,049
Share-based compensation			29,670	23,892
Investments (gain) loss, net			4,536	(26,287)
Net purchases, maturities, and sales of trading and equity securities			(8,338)	(13,327)
Deferred income taxes			3,090	7,088
Net change in equity securities and trading debt securities held by consolidated sponsored funds			70,759	(8,973)
Other			2,092	588
Changes in assets and liabilities:
Customer and other receivables			(2,807)	72,615
Payable to investment companies for securities and payable to customers			2,679	(97,464)
Receivables from funds and separate accounts			2,488	(2,414)
Other assets			(1,932)	13,850
Accounts payable and payable to third party brokers			(3,706)	(7,194)
Other liabilities			(29,888)	(19,139)
Net cash provided by operating activities			173,081	23,147
Cash flows from investing activities:
Purchases of available for sale and equity method securities			(27,093)	(99,584)
Proceeds from sales of available for sale and equity method securities				19,667
Proceeds from maturities of available for sale securities			77,966	78,678
Additions to property and equipment			(1,142)	(2,748)
Net cash (used in) provided by investing activities			49,731	(3,987)
Cash flows from financing activities:
Dividends paid			(41,481)	(38,188)
Repurchase of common stock			(59,195)	(77,147)
Repayment of short-term debt, net of debt issuance costs			(94,960)
Net subscriptions (redemptions, distributions and deconsolidations) of redeemable noncontrolling interests in sponsored funds			3,131	2,334
Other				(117)
Net cash used in financing activities			(192,505)	(113,118)
Net (decrease) increase in cash and cash equivalents			30,307	(93,958)
Cash, cash equivalents, and restricted cash at beginning of period		$ 266,292	235,985	291,555	$ 235,985
Cash, cash equivalents, and restricted cash at end of period	$ 197,597		$ 266,292	$ 197,597

Description of Business and Sig

Description of Business and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Description of Business and Significant Accounting Policies
Description of Business and Significant Accounting Policies	WADDELL & REED FINANCIAL, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS ​ 1. Description of Business and Significant Accounting Policies ​ Waddell & Reed Financial, Inc. and Subsidiaries ​ Waddell & Reed Financial, Inc. (hereinafter referred to as the “Company,” “we,” “our” or “us”) is a holding company, incorporated in the state of Delaware in 1981, that conducts business through its subsidiaries. Founded in 1937, we are one of the oldest mutual fund complexes in the United States, having introduced the former Waddell & Reed Advisors group of mutual funds (the “Advisors Funds”) in 1940. Over time, we added additional mutual funds: Ivy Funds (the “Ivy Funds”); Ivy Variable Insurance Portfolios, our variable product offering (“Ivy VIP”); InvestEd Portfolios, our 529 college savings plan (“InvestEd”); and the Ivy High Income Opportunities Fund, a closed-end mutual fund (“IVH”). In 2016, we introduced the Ivy NextShares ® We derive our revenues from providing investment management and advisory services, investment product underwriting and distribution, and shareholder services administration to the Funds and institutional accounts. We also provide brokerage services, primarily to retail clients through Waddell & Reed, Inc. (“W&R”), and independent financial advisors associated with W&R (“Advisors”), who provide financial planning and advice to their clients. Investment management and advisory fees and certain underwriting and distribution revenues are based on the level of AUM and assets under administration (“AUA”) and are affected by sales levels, financial market conditions, redemptions and the composition of assets. Our underwriting and distribution revenues consist of fees earned on fee-based asset allocation programs and related advisory services, asset-based service and distribution fees promulgated under the 1940 Act (“Rule 12b-1”), distribution fees on certain variable products, and commissions derived from sales of investment and insurance products. The products sold have various commission structures and the revenues received from those sales vary based on the type and dollar amount sold. Shareholder service fee revenue includes transfer agency fees, custodian fees from retirement plan accounts, portfolio accounting and administration fees, and is earned based on client AUM or number of client accounts. Our major expenses are for distribution of our products, compensation related costs, occupancy, general and administrative, and information technology. Basis of Presentation ​ We have prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to enable a reasonable understanding of the information presented. The information in this Quarterly Report on Form 10-Q should be read in conjunction with Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”). Certain amounts in the prior year’s financial statements have been reclassified for consistent presentation. ​ The accompanying unaudited consolidated financial statements are prepared consistent with the accounting policies described in Note 1 to the consolidated financial statements included in our 2018 Form 10-K with the exception of the adoption of Accounting Standards Update (“ASU”) 2016-02, “Leases Compensation – Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ​ In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of only a normal and recurring nature) necessary to present fairly our financial position at June 30, 2019 and the results of operations and cash flows for the three and six months ended June 30, 2019 and 2018 in conformity with accounting principles generally accepted in the United States. ​

New Accounting Guidance

New Accounting Guidance	6 Months Ended
	Jun. 30, 2019
New Accounting Guidance
New Accounting Guidance	2. New Accounting Guidance ​ Accounting Guidance Adopted During the Second Quarter of 2019 ​ During the second quarter of 2019, the Company early adopted ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ​ Accounting Guidance Not Yet Adopted ​ 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 ​

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2019
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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Three months ended ​ Six months ended ​ Six months ended ​ ​ ​ (in thousands) ​ (in thousands) Investment management fees: ​ ​ Funds ​ $ 109,007 124,766 214,752 252,429 Institutional ​ 3,863 5,625 7,880 11,654 Total investment management fees ​ $ 112,870 130,391 222,632 264,083 Underwriting and distribution fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaffiliated ​ ​ ​ ​ ​ ​ ​ ​ ​ Rule 12b-1 service and distribution fees ​ $ 16,329 ​ 20,051 ​ 32,511 ​ 41,027 Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 488 ​ 507 ​ 926 ​ 977 Other revenues ​ ​ 83 ​ 148 ​ 175 ​ 333 Total unaffiliated distribution fees ​ $ 16,900 ​ 20,706 ​ 33,612 ​ 42,337 Wealth Management ​ ​ ​ ​ ​ ​ ​ ​ ​ Fee-based asset allocation product revenues ​ $ 70,220 ​ 66,580 ​ 135,450 ​ 132,097 Rule 12b-1 service and distribution fees ​ ​ 16,327 ​ 18,109 ​ 32,015 ​ 36,486 Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 12,302 ​ 13,823 ​ 24,322 ​ 28,249 Sales commissions on other products ​ ​ 8,497 ​ 9,065 ​ 16,103 ​ 17,487 Other revenues ​ ​ 9,249 ​ 9,590 ​ 18,238 ​ 19,258 Total wealth management distribution fees ​ ​ 116,595 ​ 117,167 ​ 226,128 ​ 233,577 Total distribution fees ​ $ 133,495 ​ 137,873 ​ 259,740 ​ 275,914 Shareholder service fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholder service fees ​ $ 23,789 27,074 47,192 52,956 ​ ​ ​ ​ ​ ​ Total revenues ​ $ 270,154 295,338 529,564 592,953 ​

Investment Securities

Investment Securities	6 Months Ended
	Jun. 30, 2019
Investment Securities
Investment Securities	4. Investment Securities ​ Investment securities at June 30, 2019 and December 31, 2018 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2019 2018 ​ ​ ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Certificates of deposit ​ $ — ​ 5,001 ​ Commercial paper ​ ​ 4,459 ​ 7,970 ​ Corporate bonds ​ ​ 253,330 ​ 218,121 ​ U.S. Treasury bills ​ ​ — ​ 19,672 ​ Total available for sale securities ​ 257,789 ​ 250,764 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 1,486 ​ 1,993 ​ Corporate bonds ​ 88,201 ​ 77,250 ​ U.S. Treasury bills ​ ​ 5,957 ​ 5,884 ​ Mortgage-backed securities ​ 6 ​ 7 ​ Term loans ​ ​ 30,877 ​ — ​ Consolidated sponsored funds ​ 38,286 ​ 33,088 ​ Total trading securities ​ 164,813 ​ 118,222 ​ Equity securities: ​ ​ ​ ​ ​ ​ Common stock ​ 37,169 ​ 21,204 ​ Sponsored funds ​ ​ 173,372 ​ 153,548 ​ Sponsored privately offered funds ​ 844 ​ 678 ​ Consolidated sponsored funds ​ ​ 28,654 ​ 24,879 ​ Total equity securities ​ ​ 240,039 ​ 200,309 ​ Equity method securities: ​ ​ ​ ​ ​ ​ Sponsored funds ​ 35,262 ​ 47,840 ​ Total securities ​ $ 697,903 ​ 617,135 ​ ​ Commercial paper and corporate bonds accounted for as available for sale and held as of June 30, 2019 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost Fair value ​ (in thousands) Within one year $ 98,498 ​ 98,485 After one year but within five years ​ 156,479 ​ 159,304 ​ $ 254,977 ​ 257,789 ​ Commercial paper, corporate bonds, U.S. Treasury bills, mortgage-backed securities and term loans accounted for as trading and held as of June 30, 2019 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ ​ ​ (in thousands) Within one year ​ ​ $ 31,432 After one year but within five years ​ ​ ​ 73,865 After five years but within 10 years ​ ​ ​ 21,230 ​ ​ ​ $ 126,527 ​ The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 4,459 ​ — ​ — ​ 4,459 ​ Corporate bonds ​ ​ 250,518 2,985 ​ (173) 253,330 ​ ​ ​ $ 254,977 2,985 (173) 257,789 ​ ​ 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 ​ ​ A summary of available for sale investment securities with fair values below carrying values at June 30, 2019 and December 31, 2018 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or longer ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ ​ ​ Unrealized June 30, 2019 Fair value losses Fair value losses Fair value losses ​ ​ (in thousands) Corporate bonds ​ $ 4,986 ​ (14) ​ 70,166 ​ (159) ​ 75,152 ​ (173) ​ A summary of available for sale investment securities 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) ​ ​ The Company’s investment portfolio included 20 available for sale securities in an unrealized loss position at June 30, 2019. ​ The Company evaluated available for sale securities in an unrealized loss position at June 30, 2019 and concluded no other-than-temporary impairment existed. The unrealized losses in the Company’s investment portfolio 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. ​ Sponsored Funds ​ The Company has classified its equity investments in the Ivy Funds as equity method investments (when the Company owns between 20% and 50% of the fund) or equity securities measured at fair value through net income (when the Company owns less than 20% of the fund). These entities do not meet the criteria of a variable interest entity (“VIE”) and are considered to be voting interest entities (“VOE”). The Company has determined the Ivy Funds are VOEs because the structure of the investment products is such that the voting rights held by the equity holders provide for equality among equity investors. ​ Sponsored Privately Offered Funds ​ The Company holds an interest in a privately offered fund structured in the form of a limited liability company. The members of this entity have the substantive ability to remove the Company as managing member or dissolve the entity upon a simple majority vote. This entity does not meet the criteria of a VIE and is considered to be a VOE. ​ Consolidated Sponsored Funds ​ The following table details the balances related to consolidated sponsored funds at June 30, 2019 and December 31, 2018, as well as the Company’s net interest in these funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ December 31, ​ ​ 2019 ​ 2018 ​ (in thousands) Cash $ 5,282 ​ ​ 4,285 Investments ​ 66,940 ​ 57,967 Other assets ​ 1,357 ​ 872 Other liabilities ​ (826) ​ (79) Redeemable noncontrolling interests ​ (15,115) ​ (11,463) Net interest in consolidated sponsored funds $ 57,638 ​ ​ 51,582 ​ During the three months ended June 30, 2019, an Ivy Fund, Ivy NextShares and Ivy Global Investors Funds in which we provided initial seed capital at the time of the funds’ formation were consolidated. During 2018, we liquidated the Ivy Global Investors Société d’Investissement à Capital Variable and its Ivy Global Investors sub-funds, including converting the investments held by the sub-funds to cash, and redeemed the majority of our investment. When we no longer have a controlling financial interest in a sponsored fund, it is deconsolidated from our consolidated financial statements. ​ 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. Term loans are valued using a price or composite price from one or more brokers or dealers as obtained from an independent pricing service. The fair value of loans is estimated using recently executed transactions, market price quotations, credit/market events, and cross-asset pricing. Inputs are generally observable market inputs obtained from independent sources. Term loans are generally categorized in Level 2 of the fair value hierarchy, unless key inputs are unobservable in which case they would be categorized as Level 3. 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 June 30, 2019 and December 31, 2018 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 32,070 ​ — ​ — ​ — ​ 32,070 ​ U.S. government sponsored enterprise note ​ ​ — ​ 895 ​ — ​ — ​ 895 ​ Commercial paper ​ ​ — ​ 27,065 ​ — ​ — ​ 27,065 ​ Total cash equivalents ​ $ 32,070 ​ 27,960 ​ — ​ — ​ 60,030 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 4,459 ​ — ​ — ​ 4,459 ​ Corporate bonds ​ ​ — ​ 253,330 ​ — ​ — ​ 253,330 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 1,486 ​ — ​ — ​ 1,486 ​ Corporate bonds ​ ​ — ​ 88,201 ​ — ​ ​ ​ 88,201 ​ U.S. Treasury bills ​ ​ — ​ 5,957 ​ — ​ — ​ 5,957 ​ Mortgage-backed securities ​ — 6 — — ​ 6 ​ Term loans ​ — 29,509 1,368 — ​ 30,877 ​ Consolidated sponsored funds ​ — 38,286 — — ​ 38,286 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ 37,166 ​ — ​ 3 ​ — ​ 37,169 ​ Sponsored funds ​ ​ 173,372 ​ — ​ — ​ — ​ 173,372 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 844 ​ 844 ​ Consolidated sponsored funds ​ ​ 28,654 ​ — ​ — ​ — ​ 28,654 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 35,262 ​ — ​ — ​ — ​ 35,262 ​ Total investment securities ​ $ 274,454 ​ 421,234 ​ 1,371 ​ 844 ​ 697,903 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 investment securities ​ $ 247,459 ​ 368,986 ​ 12 ​ 678 ​ 617,135 ​ ​ (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 net asset value 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 six months ended June 30, 2019: ​ ​ ​ ​ ​ ​ For the six months ended ​ ​ June 30, 2019 ​ ​ (in thousands) Level 3 assets at December 31, 2018 ​ $ 12 Additions ​ 1,376 Losses in Investment and other income ​ (17) Redemptions ​ ​ — Level 3 assets at June 30, 2019 ​ $ 1,371 ​ ​ ​ ​ Change in unrealized losses for Level 3 assets held at June 30, 2019 ​ $ (17) ​

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2019
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 11 total return swap contracts with a combined notional value of $250.0 million and five total return swap contracts with a combined notional value of $194.4 million as of June 30, 2019 and December 31, 2018, respectively. These derivative financial 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 in the Company’s consolidated statements of income. ​ The Company posted $2.0 million and $5.2 million in cash collateral with the counterparties of the total return swap contracts as of June 30, 2019 and December 31, 2018, respectively. The cash collateral is included in Customers and other receivables in 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 June 30, 2019 and December 31, 2018 and is calculated based on Level 2 inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2019 ​ ​ 2018 ​ 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 ​ ​ 2,034 ​ ​ — Total ​ $ 2,034 ​ ​ 4,968 ​ The following is a summary of net losses recognized in income for the three and six months ended June 30, 2019 and June 30, 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ Income statement ​ June 30, ​ June 30, ​ location ​ 2019 2018 ​ 2019 ​ 2018 ​ ​ ​ (in thousands) ​ (in thousands) Total return swap contracts Investment and other income $ (5,241) (1,908) ​ $ (25,863) ​ (543) ​ ​

Goodwill and Identifiable Intan

Goodwill and Identifiable Intangible Assets	6 Months Ended
	Jun. 30, 2019
Goodwill and Identifiable Intangible Assets
Goodwill and Identifiable Intangible Assets	6. Goodwill and Identifiable Intangible Assets ​ Goodwill represents the excess of purchase price over the tangible assets and identifiable intangible assets of an acquired business. Our goodwill is not deductible for tax purposes. Goodwill and identifiable intangible assets (all considered indefinite lived) at June 30, 2019 and December 31, 2018 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2019 ​ 2018 ​ ​ ​ (in thousands) ​ Goodwill $ 106,970 106,970 ​ ​ ​ ​ ​ ​ ​ Mutual fund management advisory contracts ​ 38,699 38,699 ​ Other ​ 200 200 ​ Total identifiable intangible assets ​ 38,899 38,899 ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 145,869 145,869 ​ ​

Indebtedness

Indebtedness	6 Months Ended
	Jun. 30, 2019
Indebtedness
Indebtedness	7. Indebtedness ​ Debt is reported at its carrying amount in the consolidated balance sheet. The fair value, calculated based on Level 2 inputs, of the Company’s senior unsecured notes maturing January 13, 2021 was $98.6 million at June 30, 2019 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. ​

Income Tax Uncertainties

Income Tax Uncertainties	6 Months Ended
	Jun. 30, 2019
Income Tax Uncertainties
Income Tax Uncertainties	8. Income Tax Uncertainties In the accompanying consolidated balance sheets, unrecognized tax benefits that are not expected to be settled within the next 12 months are included in other liabilities; unrecognized tax benefits that are expected to be settled within the next 12 months are included in income taxes payable; unrecognized tax benefits that reduce a net operating loss, similar tax loss, or tax credit carryforward are presented as a reduction to non-current deferred income taxes. As of June 30, 2019 and December 31, 2018, the Company’s consolidated balance sheet included unrecognized tax benefits, including penalties and interest, of $2.8 million ($2.4 million net of federal benefit) and $2.7 million ($2.4 million net of federal benefit), respectively, that if recognized, would impact the Company’s effective tax rate. The Company’s accounting policy with respect to interest and penalties related to income tax uncertainties is to classify these amounts as income taxes. The total amounts of penalties and interest, net of federal benefit, related to income tax uncertainties recognized in the statements of income for the three and six month periods ended June 30, 2019 were $26 thousand and $42 thousand, respectively. The total amount of accrued penalties and interest related to uncertain tax positions recognized in the consolidated balance sheet at June 30, 2019 and December 31, 2018 is $0.7 million ($0.6 million net of federal benefit) and $0.7 million ($0.6 million net of federal benefit), respectively. 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 does not expect the resolution or settlement of any open audits, Federal or State, to materially impact the consolidated financial statements. ​ The 2015-2018 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	6 Months Ended
	Jun. 30, 2019
Pension Plan and Postretirement Benefits Other Than Pension
Pension Plan and Postretirement Benefits Other Than Pension	9. Pension Plan and Postretirement Benefits Other Than Pension ​ Benefits payable under our noncontributory retirement plan that covers substantially all employees and certain vested employees of our former parent company (the “Pension Plan”) were based on employees’ years of service and compensation during the final 10 years of employment. On July 26, 2017, 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 ceased accruing additional benefits for future service or compensation. Participants retain benefits accumulated as of September 30, 2017 in accordance with the terms of the Pension Plan. The Company intends to terminate the Pension Plan in a standard termination with an expected completion date in 2020. ​ 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 this plan was established. During the third quarter of 2016, the Company amended this plan to discontinue the availability of coverage for any individuals who retire after December 31, 2016. ​ The components of net periodic pension and other postretirement costs related to these plans were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Pension Benefits ​ Postretirement Benefits ​ Pension Benefits ​ Postretirement Benefits ​ ​ ​ Three months ended June 30, ​ ​ Three months ended June 30, ​ Six months ended June 30, ​ ​ Six months ended June 30, ​ ​ ​ 2019 ​ 2018 ​ ​ 2019 ​ 2018 ​ 2019 ​ 2018 ​ ​ 2019 ​ 2018 ​ ​ ​ ​ (in thousands) ​ ​ (in thousands) ​ Components of net periodic benefit cost: ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 1,545 1,485 ​ $ 8 13 ​ $ 3,073 2,993 $ 16 27 ​ Expected return on plan assets ​ (1,567) (2,062) ​ — — ​ (3,157) (4,131) — — ​ Actuarial gain amortization ​ — — ​ (123) (30) ​ — — (247) (60) ​ Prior service credit amortization ​ — — ​ — — ​ — — — (1) ​ Total ​ $ (22) ​ (577) ​ $ (115) ​ (17) ​ $ (84) ​ (1,138) ​ $ (231) ​ (34) ​ ​ ​

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2019
Stockholders' Equity
Stockholders' Equity	10. Stockholders’ Equity ​ Earnings per Share ​ The components of basic and diluted earnings per share were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ ​ June 30, ​ June 30, ​ ​ ​ 2019 ​ 2018 ​ 2019 ​ 2018 ​ ​ ​ (in thousands, except per share amounts) ​ Net income attributable to Waddell & Reed Financial, Inc. $ 33,948 44,478 $ 66,002 90,815 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding, basic and diluted ​ 74,694 ​ 81,449 ​ 75,492 ​ 82,275 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share, basic and diluted ​ $ 0.45 ​ 0.55 ​ $ 0.87 ​ 1.10 ​ ​ Dividends ​ During the quarter, the Board of Directors declared a quarterly dividend on our Class A common stock in the amount of $0.25 per share payable on August 1, 2019 to stockholders of record on July 11, 2019. The total dividend paid on August 1, 2019 was $18.4 million. ​ 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 issuing shares to employees in our stock-based compensation programs. ​ There were 2,142,894 shares and 2,098,625 shares repurchased in the open market or privately during the three months ended June 30, 2019 and 2018, respectively, which includes 290,910 shares and 508,625 shares, respectively, repurchased from employees who tendered shares to cover income tax withholdings with respect to vesting of stock awards during these two reporting periods. There were 4,369,219 shares and 3,094,934 shares repurchased in the open market or privately during the six months ended June 30, 2019 and 2018, respectively, which includes 439,983 shares and 629,934 shares, respectively, repurchased from employees who tendered shares to cover income tax withholdings with respect to vesting of stock awards during these two reporting periods. ​ Accumulated Other Comprehensive Income (Loss) ​ The following tables summarize accumulated other comprehensive income (loss) activity for the three and six months ended June 30, 2019 and June 30, 2018. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ ​ ​ ​ gains (losses) on ​ benefits ​ other ​ ​ ​ ​ ​ AFS investment ​ unrealized ​ comprehensive Three months ended June 30, 2019 ​ ​ ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ ​ ​ ​ (in thousands) ​ Balance at March 31, 2019 ​ ​ $ 861 1,034 1,895 Other comprehensive income before reclassification ​ ​ ​ 1,281 ​ — 1,281 ​ Amount reclassified from accumulated other comprehensive loss ​ ​ ​ — ​ (95) (95) ​ Net current period other comprehensive income (loss) ​ ​ ​ 1,281 ​ (95) 1,186 ​ Balance at June 30, 2019 ​ ​ ​ ​ $ 2,142 939 3,081 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ ​ ​ gains (losses) on ​ benefits ​ other ​ ​ ​ ​ AFS investment ​ unrealized ​ comprehensive Three months ended June 30, 2018 ​ ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ ​ ​ ​ (in thousands) ​ Balance at March 31, 2018 ​ ​ $ (1,941) 463 (1,478) Other comprehensive income before reclassification ​ ​ ​ 169 — 169 ​ Amount reclassified from accumulated other comprehensive loss ​ ​ ​ — (23) (23) ​ Net current period other comprehensive income (loss) ​ ​ ​ 169 ​ (23) 146 ​ Balance at June 30, 2018 ​ ​ ​ ​ $ (1,772) 440 (1,332) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ ​ ​ gains (losses) ​ benefits ​ other ​ ​ ​ ​ on investment ​ unrealized ​ comprehensive Six months ended June 30, 2019 ​ ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ ​ ​ ​ (in thousands) ​ Balance at December 31, 2018 ​ ​ $ (797) 1,128 331 Other comprehensive income before reclassification ​ ​ ​ ​ 3,034 — 3,034 ​ Amount reclassified from accumulated other comprehensive loss ​ ​ ​ ​ (95) (189) (284) ​ Net current period other comprehensive income (loss) ​ ​ ​ ​ 2,939 ​ (189) 2,750 ​ Balance at June 30, 2019 ​ ​ ​ ​ $ 2,142 939 3,081 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ ​ ​ (gains) losses ​ benefits ​ other ​ ​ ​ ​ on investment ​ unrealized ​ comprehensive Six months ended June 30, 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 before reclassification ​ ​ ​ ​ ​ (962) ​ — ​ (962) ​ Amount reclassified from accumulated other comprehensive loss ​ ​ ​ ​ — (46) (46) ​ Net current period other comprehensive (loss) income ​ ​ ​ ​ (1,917) ​ 61 (1,856) ​ Balance at June 30, 2018 ​ ​ ​ ​ $ (1,772) 440 (1,332) ​ ​ Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ ​ Reclassifications included in net income: ​ Amortization of postretirement benefits ​ $ 123 (28) 95 Compensation and benefits ​ Total ​ $ 123 (28) 95 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended June 30, 2018 ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ ​ Reclassifications included in net income: ​ Amortization of postretirement benefits ​ $ 30 (7) 23 Compensation and benefits ​ Total ​ $ 30 (7) 23 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ ​ Reclassifications included in net income: ​ Gains on available for sale debt securities ​ $ 125 (30) 95 Investment and other income ​ Amortization of postretirement benefits ​ ​ 247 (58) 189 Compensation and benefits ​ Total ​ $ 372 (88) 284 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2018 ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ Statement of income ​ ​ Pre-tax ​ expense ​ 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 ​ Amortization of postretirement benefits ​ 60 (121) (61) Compensation and benefits and retained earnings ​ Total ​ $ 1,355 (461) 894 ​ ​ ​ ​ ​

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases
Leases	11. Leases ​ On January 1, 2019, the Company adopted ASU 2016-02, Leases ​ The Company has operating and finance leases for corporate office space and equipment. Our leases have remaining lease terms of less than one year to seven years, some of which include options to extend leases for up to 20 years, and some of which include options to terminate the leases within one year. Certain leases include variable lease payments in future periods based on a market index or rate. We determine if an arrangement is a lease at inception (or the effective date of ASU 2016-02). Operating lease assets and liabilities are included in other non-current assets, other current liabilities, and other non-current liabilities in our consolidated balance sheet at June 30, 2019. Finance leases are included in property and equipment, net, other current liabilities, and other non-current liabilities in our consolidated balance sheets. ​ ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date (or the effective date of ASU 2016-02) based on the present value of lease payments over the lease term. The Company uses an incremental borrowing rate based on the information available at the commencement date (or the effective date of ASU 2016-02) in determining the present value of lease payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. ​ The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three ​ For the six ​ ​ months ended ​ months ended ​ ​ June 30, 2019 ​ June 30, 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 4,965 $ 10,283 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 61 $ 144 Interest on lease liabilities ​ ​ 7 ​ 15 Total ​ $ 68 ​ $ 159 ​ ​ ​ ​ ​ ​ ​ ​ Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ For the six ​ ​ months ended ​ ​ June 30, 2019 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ Operating cash flows from operating leases ​ $ 9,867 Operating cash flows from finance leases ​ 15 Financing cash flows from finance leases ​ ​ 153 ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ Operating leases ​ ​ — Finance leases ​ ​ 40 ​ Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ (in thousands, ​ ​ except lease term ​ ​ and discount rate) Operating Leases: ​ Operating lease ROU assets (Other non-current assets) ​ $ 27,235 ​ ​ ​ ​ Other current liabilities ​ $ 11,831 Other non-current liabilities ​ ​ 16,478 Total operating lease liabilities ​ $ 28,309 ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases: ​ ​ ​ Property and equipment, gross ​ $ 1,211 Accumulated depreciation ​ ​ (817) Property and equipment, net ​ $ 394 ​ ​ ​ ​ Other current liabilities ​ $ 266 Other non-current liabilities ​ ​ 141 Total finance lease liabilities ​ $ 407 ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ Operating leases ​ ​ 4 years Finance leases ​ ​ 2 years ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ Operating leases ​ ​ 4.33% Finance leases ​ ​ 6.00% ​ Maturities of lease liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ ​ Finance ​ ​ Leases ​ ​ Leases ​ ​ (in thousands) Year ended December 31, ​ ​ ​ ​ ​ ​ 2019 (excluding the six months ended June 30, 2019) $ 7,155 ​ 145 2020 ​ ​ 9,523 ​ ​ 224 2021 ​ 4,882 ​ 45 2022 ​ 2,178 ​ 6 2023 ​ ​ 2,090 ​ ​ — Thereafter ​ 4,703 ​ — Total lease payments ​ 30,531 ​ 420 Less imputed interest ​ ​ (2,222) ​ ​ (13) Total ​ $ 28,309 ​ 407 ​ The adoption of the lease standard using the effective date as the date of initial application requires the inclusion of the disclosures for periods prior to adoption, which are included below. Minimum future rental commitments as of December 31, 2018 for all non-cancelable operating leases were 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 ​ ​ Rent expense was $5.8 million and $11.8 million for the three and six months ended June 30, 2018, respectively. ​ As of 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. ​

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2019
Contingencies
Contingencies	12. Contingencies ​ The Company is involved from time to time in various legal proceedings, regulatory investigations and claims incident to the normal conduct of business, which may include proceedings that are specific to us and others generally applicable to business practices within the industries in which we operate. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and on the results of operations in a particular quarter or year. The Company 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.” ​ 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 settlement agreement provides 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 April 8, 2019, the court entered an order granting final approval of the settlement, including 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. The settlement was effective on May 9, 2019 and the settlement amount was funded by insurance.

Description of Business and S_2

Description of Business and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Description of Business and Significant Accounting Policies
Basis of Presentation	Basis of Presentation ​ We have prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to enable a reasonable understanding of the information presented. The information in this Quarterly Report on Form 10-Q should be read in conjunction with Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”). Certain amounts in the prior year’s financial statements have been reclassified for consistent presentation. ​ The accompanying unaudited consolidated financial statements are prepared consistent with the accounting policies described in Note 1 to the consolidated financial statements included in our 2018 Form 10-K with the exception of the adoption of Accounting Standards Update (“ASU”) 2016-02, “Leases Compensation – Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ​ In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting of only a normal and recurring nature) necessary to present fairly our financial position at June 30, 2019 and the results of operations and cash flows for the three and six months ended June 30, 2019 and 2018 in conformity with accounting principles generally accepted in the United States. ​

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue Recognition
Summary of disaggregation of revenue	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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Three months ended ​ Six months ended ​ Six months ended ​ ​ ​ (in thousands) ​ (in thousands) Investment management fees: ​ ​ Funds ​ $ 109,007 124,766 214,752 252,429 Institutional ​ 3,863 5,625 7,880 11,654 Total investment management fees ​ $ 112,870 130,391 222,632 264,083 Underwriting and distribution fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaffiliated ​ ​ ​ ​ ​ ​ ​ ​ ​ Rule 12b-1 service and distribution fees ​ $ 16,329 ​ 20,051 ​ 32,511 ​ 41,027 Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 488 ​ 507 ​ 926 ​ 977 Other revenues ​ ​ 83 ​ 148 ​ 175 ​ 333 Total unaffiliated distribution fees ​ $ 16,900 ​ 20,706 ​ 33,612 ​ 42,337 Wealth Management ​ ​ ​ ​ ​ ​ ​ ​ ​ Fee-based asset allocation product revenues ​ $ 70,220 ​ 66,580 ​ 135,450 ​ 132,097 Rule 12b-1 service and distribution fees ​ ​ 16,327 ​ 18,109 ​ 32,015 ​ 36,486 Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 12,302 ​ 13,823 ​ 24,322 ​ 28,249 Sales commissions on other products ​ ​ 8,497 ​ 9,065 ​ 16,103 ​ 17,487 Other revenues ​ ​ 9,249 ​ 9,590 ​ 18,238 ​ 19,258 Total wealth management distribution fees ​ ​ 116,595 ​ 117,167 ​ 226,128 ​ 233,577 Total distribution fees ​ $ 133,495 ​ 137,873 ​ 259,740 ​ 275,914 Shareholder service fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholder service fees ​ $ 23,789 27,074 47,192 52,956 ​ ​ ​ ​ ​ ​ Total revenues ​ $ 270,154 295,338 529,564 592,953 ​

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2019
Investment Securities
Schedule of investment securities	Investment securities at June 30, 2019 and December 31, 2018 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2019 2018 ​ ​ ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Certificates of deposit ​ $ — ​ 5,001 ​ Commercial paper ​ ​ 4,459 ​ 7,970 ​ Corporate bonds ​ ​ 253,330 ​ 218,121 ​ U.S. Treasury bills ​ ​ — ​ 19,672 ​ Total available for sale securities ​ 257,789 ​ 250,764 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 1,486 ​ 1,993 ​ Corporate bonds ​ 88,201 ​ 77,250 ​ U.S. Treasury bills ​ ​ 5,957 ​ 5,884 ​ Mortgage-backed securities ​ 6 ​ 7 ​ Term loans ​ ​ 30,877 ​ — ​ Consolidated sponsored funds ​ 38,286 ​ 33,088 ​ Total trading securities ​ 164,813 ​ 118,222 ​ Equity securities: ​ ​ ​ ​ ​ ​ Common stock ​ 37,169 ​ 21,204 ​ Sponsored funds ​ ​ 173,372 ​ 153,548 ​ Sponsored privately offered funds ​ 844 ​ 678 ​ Consolidated sponsored funds ​ ​ 28,654 ​ 24,879 ​ Total equity securities ​ ​ 240,039 ​ 200,309 ​ Equity method securities: ​ ​ ​ ​ ​ ​ Sponsored funds ​ 35,262 ​ 47,840 ​ Total securities ​ $ 697,903 ​ 617,135 ​
Summary of maturities of securities held	Commercial paper and corporate bonds accounted for as available for sale and held as of June 30, 2019 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost Fair value ​ (in thousands) Within one year $ 98,498 ​ 98,485 After one year but within five years ​ 156,479 ​ 159,304 ​ $ 254,977 ​ 257,789 ​ Commercial paper, corporate bonds, U.S. Treasury bills, mortgage-backed securities and term loans accounted for as trading and held as of June 30, 2019 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ ​ ​ (in thousands) Within one year ​ ​ $ 31,432 After one year but within five years ​ ​ ​ 73,865 After five years but within 10 years ​ ​ ​ 21,230 ​ ​ ​ $ 126,527
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 June 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 4,459 ​ — ​ — ​ 4,459 ​ Corporate bonds ​ ​ 250,518 2,985 ​ (173) 253,330 ​ ​ ​ $ 254,977 2,985 (173) 257,789 ​ ​ 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 ​
Summary of available for sale sponsored funds with fair values below carrying values	A summary of available for sale investment securities with fair values below carrying values at June 30, 2019 and December 31, 2018 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or longer ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ ​ ​ Unrealized June 30, 2019 Fair value losses Fair value losses Fair value losses ​ ​ (in thousands) Corporate bonds ​ $ 4,986 ​ (14) ​ 70,166 ​ (159) ​ 75,152 ​ (173) ​ A summary of available for sale investment securities 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) ​
Summary of balances related to consolidated sponsored funds as well the company's net interest in these funds	The following table details the balances related to consolidated sponsored funds at June 30, 2019 and December 31, 2018, as well as the Company’s net interest in these funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ December 31, ​ ​ 2019 ​ 2018 ​ (in thousands) Cash $ 5,282 ​ ​ 4,285 Investments ​ 66,940 ​ 57,967 Other assets ​ 1,357 ​ 872 Other liabilities ​ (826) ​ (79) Redeemable noncontrolling interests ​ (15,115) ​ (11,463) Net interest in consolidated sponsored funds $ 57,638 ​ ​ 51,582
Schedule of fair value of investment securities	The following tables summarize our investment securities as of June 30, 2019 and December 31, 2018 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 32,070 ​ — ​ — ​ — ​ 32,070 ​ U.S. government sponsored enterprise note ​ ​ — ​ 895 ​ — ​ — ​ 895 ​ Commercial paper ​ ​ — ​ 27,065 ​ — ​ — ​ 27,065 ​ Total cash equivalents ​ $ 32,070 ​ 27,960 ​ — ​ — ​ 60,030 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 4,459 ​ — ​ — ​ 4,459 ​ Corporate bonds ​ ​ — ​ 253,330 ​ — ​ — ​ 253,330 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 1,486 ​ — ​ — ​ 1,486 ​ Corporate bonds ​ ​ — ​ 88,201 ​ — ​ ​ ​ 88,201 ​ U.S. Treasury bills ​ ​ — ​ 5,957 ​ — ​ — ​ 5,957 ​ Mortgage-backed securities ​ — 6 — — ​ 6 ​ Term loans ​ — 29,509 1,368 — ​ 30,877 ​ Consolidated sponsored funds ​ — 38,286 — — ​ 38,286 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ 37,166 ​ — ​ 3 ​ — ​ 37,169 ​ Sponsored funds ​ ​ 173,372 ​ — ​ — ​ — ​ 173,372 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 844 ​ 844 ​ Consolidated sponsored funds ​ ​ 28,654 ​ — ​ — ​ — ​ 28,654 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 35,262 ​ — ​ — ​ — ​ 35,262 ​ Total investment securities ​ $ 274,454 ​ 421,234 ​ 1,371 ​ 844 ​ 697,903 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 investment securities ​ $ 247,459 ​ 368,986 ​ 12 ​ 678 ​ 617,135 ​ ​ (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 net asset value 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	The following table summarizes the activity of investments categorized as Level 3 for the six months ended June 30, 2019: ​ ​ ​ ​ ​ ​ For the six months ended ​ ​ June 30, 2019 ​ ​ (in thousands) Level 3 assets at December 31, 2018 ​ $ 12 Additions ​ 1,376 Losses in Investment and other income ​ (17) Redemptions ​ ​ — Level 3 assets at June 30, 2019 ​ $ 1,371 ​ ​ ​ ​ Change in unrealized losses for Level 3 assets held at June 30, 2019 ​ $ (17) ​

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Derivative Financial Instruments
Schedule of fair value of derivative financial instruments, excluding derivative financial instruments held in certain consolidated sponsored funds	The following table presents the fair value of the derivative financial instruments, excluding derivative financial instruments held in certain consolidated sponsored funds, as of June 30, 2019 and December 31, 2018 and is calculated based on Level 2 inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2019 ​ ​ 2018 ​ 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 ​ ​ 2,034 ​ ​ — Total ​ $ 2,034 ​ ​ 4,968 ​ The following is a summary of net losses recognized in income for the three and six months ended June 30, 2019 and June 30, 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ Income statement ​ June 30, ​ June 30, ​ location ​ 2019 2018 ​ 2019 ​ 2018 ​ ​ ​ (in thousands) ​ (in thousands) Total return swap contracts Investment and other income $ (5,241) (1,908) ​ $ (25,863) ​ (543) ​ ​
Schedule of net gains (losses) recognized in income of derivative financial instrument	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2019 ​ ​ 2018 ​ 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 ​ ​ 2,034 ​ ​ — Total ​ $ 2,034 ​ ​ 4,968

Goodwill and Identifiable Int_2

Goodwill and Identifiable Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Identifiable Intangible Assets
Schedule of goodwill and identifiable intangible assets	Goodwill represents the excess of purchase price over the tangible assets and identifiable intangible assets of an acquired business. Our goodwill is not deductible for tax purposes. Goodwill and identifiable intangible assets (all considered indefinite lived) at June 30, 2019 and December 31, 2018 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2019 ​ 2018 ​ ​ ​ (in thousands) ​ Goodwill $ 106,970 106,970 ​ ​ ​ ​ ​ ​ ​ Mutual fund management advisory contracts ​ 38,699 38,699 ​ Other ​ 200 200 ​ Total identifiable intangible assets ​ 38,899 38,899 ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 145,869 145,869 ​ ​

Pension Plan and Postretireme_2

Pension Plan and Postretirement Benefits Other Than Pension (Tables)	6 Months Ended
	Jun. 30, 2019
Pension Plan and Postretirement Benefits Other Than Pension
Schedule of components of net periodic pension and other postretirement costs	The components of net periodic pension and other postretirement costs related to these plans were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Pension Benefits ​ Postretirement Benefits ​ Pension Benefits ​ Postretirement Benefits ​ ​ ​ Three months ended June 30, ​ ​ Three months ended June 30, ​ Six months ended June 30, ​ ​ Six months ended June 30, ​ ​ ​ 2019 ​ 2018 ​ ​ 2019 ​ 2018 ​ 2019 ​ 2018 ​ ​ 2019 ​ 2018 ​ ​ ​ ​ (in thousands) ​ ​ (in thousands) ​ Components of net periodic benefit cost: ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 1,545 1,485 ​ $ 8 13 ​ $ 3,073 2,993 $ 16 27 ​ Expected return on plan assets ​ (1,567) (2,062) ​ — — ​ (3,157) (4,131) — — ​ Actuarial gain amortization ​ — — ​ (123) (30) ​ — — (247) (60) ​ Prior service credit amortization ​ — — ​ — — ​ — — — (1) ​ Total ​ $ (22) ​ (577) ​ $ (115) ​ (17) ​ $ (84) ​ (1,138) ​ $ (231) ​ (34) ​ ​ ​

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Stockholders' Equity
Components of basic and diluted earnings per share	The components of basic and diluted earnings per share were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ ​ June 30, ​ June 30, ​ ​ ​ 2019 ​ 2018 ​ 2019 ​ 2018 ​ ​ ​ (in thousands, except per share amounts) ​ Net income attributable to Waddell & Reed Financial, Inc. $ 33,948 44,478 $ 66,002 90,815 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding, basic and diluted ​ 74,694 ​ 81,449 ​ 75,492 ​ 82,275 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share, basic and diluted ​ $ 0.45 ​ 0.55 ​ $ 0.87 ​ 1.10 ​
Summary of accumulated other comprehensive income (loss) activity	The following tables summarize accumulated other comprehensive income (loss) activity for the three and six months ended June 30, 2019 and June 30, 2018. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ ​ ​ ​ gains (losses) on ​ benefits ​ other ​ ​ ​ ​ ​ AFS investment ​ unrealized ​ comprehensive Three months ended June 30, 2019 ​ ​ ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ ​ ​ ​ (in thousands) ​ Balance at March 31, 2019 ​ ​ $ 861 1,034 1,895 Other comprehensive income before reclassification ​ ​ ​ 1,281 ​ — 1,281 ​ Amount reclassified from accumulated other comprehensive loss ​ ​ ​ — ​ (95) (95) ​ Net current period other comprehensive income (loss) ​ ​ ​ 1,281 ​ (95) 1,186 ​ Balance at June 30, 2019 ​ ​ ​ ​ $ 2,142 939 3,081 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ ​ ​ gains (losses) on ​ benefits ​ other ​ ​ ​ ​ AFS investment ​ unrealized ​ comprehensive Three months ended June 30, 2018 ​ ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ ​ ​ ​ (in thousands) ​ Balance at March 31, 2018 ​ ​ $ (1,941) 463 (1,478) Other comprehensive income before reclassification ​ ​ ​ 169 — 169 ​ Amount reclassified from accumulated other comprehensive loss ​ ​ ​ — (23) (23) ​ Net current period other comprehensive income (loss) ​ ​ ​ 169 ​ (23) 146 ​ Balance at June 30, 2018 ​ ​ ​ ​ $ (1,772) 440 (1,332) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ ​ ​ gains (losses) ​ benefits ​ other ​ ​ ​ ​ on investment ​ unrealized ​ comprehensive Six months ended June 30, 2019 ​ ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ ​ ​ ​ (in thousands) ​ Balance at December 31, 2018 ​ ​ $ (797) 1,128 331 Other comprehensive income before reclassification ​ ​ ​ ​ 3,034 — 3,034 ​ Amount reclassified from accumulated other comprehensive loss ​ ​ ​ ​ (95) (189) (284) ​ Net current period other comprehensive income (loss) ​ ​ ​ ​ 2,939 ​ (189) 2,750 ​ Balance at June 30, 2019 ​ ​ ​ ​ $ 2,142 939 3,081 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ ​ ​ (gains) losses ​ benefits ​ other ​ ​ ​ ​ on investment ​ unrealized ​ comprehensive Six months ended June 30, 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 before reclassification ​ ​ ​ ​ ​ (962) ​ — ​ (962) ​ Amount reclassified from accumulated other comprehensive loss ​ ​ ​ ​ — (46) (46) ​ Net current period other comprehensive (loss) income ​ ​ ​ ​ (1,917) ​ 61 (1,856) ​ Balance at June 30, 2018 ​ ​ ​ ​ $ (1,772) 440 (1,332) ​ ​
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 three months ended June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ ​ Reclassifications included in net income: ​ Amortization of postretirement benefits ​ $ 123 (28) 95 Compensation and benefits ​ Total ​ $ 123 (28) 95 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended June 30, 2018 ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ ​ Reclassifications included in net income: ​ Amortization of postretirement benefits ​ $ 30 (7) 23 Compensation and benefits ​ Total ​ $ 30 (7) 23 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ ​ Reclassifications included in net income: ​ Gains on available for sale debt securities ​ $ 125 (30) 95 Investment and other income ​ Amortization of postretirement benefits ​ ​ 247 (58) 189 Compensation and benefits ​ Total ​ $ 372 (88) 284 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2018 ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ Statement of income ​ ​ Pre-tax ​ expense ​ 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 ​ Amortization of postretirement benefits ​ 60 (121) (61) Compensation and benefits and retained earnings ​ Total ​ $ 1,355 (461) 894 ​ ​ ​ ​ ​

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases
Components of lease expense	The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three ​ For the six ​ ​ months ended ​ months ended ​ ​ June 30, 2019 ​ June 30, 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 4,965 $ 10,283 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 61 $ 144 Interest on lease liabilities ​ ​ 7 ​ 15 Total ​ $ 68 ​ $ 159 ​ ​ ​ ​ ​ ​ ​
Schedule of supplemental cash flow information	Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ For the six ​ ​ months ended ​ ​ June 30, 2019 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ Operating cash flows from operating leases ​ $ 9,867 Operating cash flows from finance leases ​ 15 Financing cash flows from finance leases ​ ​ 153 ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ Operating leases ​ ​ — Finance leases ​ ​ 40
Schedule of supplemental balance sheet information	Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ (in thousands, ​ ​ except lease term ​ ​ and discount rate) Operating Leases: ​ Operating lease ROU assets (Other non-current assets) ​ $ 27,235 ​ ​ ​ ​ Other current liabilities ​ $ 11,831 Other non-current liabilities ​ ​ 16,478 Total operating lease liabilities ​ $ 28,309 ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases: ​ ​ ​ Property and equipment, gross ​ $ 1,211 Accumulated depreciation ​ ​ (817) Property and equipment, net ​ $ 394 ​ ​ ​ ​ Other current liabilities ​ $ 266 Other non-current liabilities ​ ​ 141 Total finance lease liabilities ​ $ 407 ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ Operating leases ​ ​ 4 years Finance leases ​ ​ 2 years ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ Operating leases ​ ​ 4.33% Finance leases ​ ​ 6.00%
Schedule of maturities of operating leases	Maturities of lease liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ ​ Finance ​ ​ Leases ​ ​ Leases ​ ​ (in thousands) Year ended December 31, ​ ​ ​ ​ ​ ​ 2019 (excluding the six months ended June 30, 2019) $ 7,155 ​ 145 2020 ​ ​ 9,523 ​ ​ 224 2021 ​ 4,882 ​ 45 2022 ​ 2,178 ​ 6 2023 ​ ​ 2,090 ​ ​ — Thereafter ​ 4,703 ​ — Total lease payments ​ 30,531 ​ 420 Less imputed interest ​ ​ (2,222) ​ ​ (13) Total ​ $ 28,309 ​ 407
Schedule of maturities of finance leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ ​ Finance ​ ​ Leases ​ ​ Leases ​ ​ (in thousands) Year ended December 31, ​ ​ ​ ​ ​ ​ 2019 (excluding the six months ended June 30, 2019) $ 7,155 ​ 145 2020 ​ ​ 9,523 ​ ​ 224 2021 ​ 4,882 ​ 45 2022 ​ 2,178 ​ 6 2023 ​ ​ 2,090 ​ ​ — Thereafter ​ 4,703 ​ — Total lease payments ​ 30,531 ​ 420 Less imputed interest ​ ​ (2,222) ​ ​ (13) Total ​ $ 28,309 ​ 407
Schedule of minimum future rental commitments for non-cancelable operating leases	The adoption of the lease standard using the effective date as the date of initial application requires the inclusion of the disclosures for periods prior to adoption, which are included below. Minimum future rental commitments as of December 31, 2018 for all non-cancelable operating leases were 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 ​

Description of Business and S_3

Description of Business and Significant Accounting Policies (Details) $ in Billions	Jun. 30, 2019USD ($)
Description of Business and Significant Accounting Policies
Assets under management	$ 71.9

New Accounting Guidance (Detail

New Accounting Guidance (Details)	Jun. 30, 2019
ASU 2018-13
New Accounting Guidance
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
ASU 2018-15
New Accounting Guidance
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	false

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue Recognition
Total Revenues	$ 270,154	$ 295,338	$ 295,338	$ 529,564	$ 592,953
Investment management fees
Revenue Recognition
Total Revenues	112,870	130,391	130,391	222,632	264,083
Investment management fees - Funds
Revenue Recognition
Total Revenues	109,007		124,766	214,752	252,429
Investment management fees - Institutional
Revenue Recognition
Total Revenues	3,863		5,625	7,880	11,654
Underwriting and distribution fees
Revenue Recognition
Total Revenues	133,495	137,873	137,873	259,740	275,914
Unaffiliated
Revenue Recognition
Total Revenues	16,900		20,706	33,612	42,337
Unaffiliated Rule 12b-1 service and distribution fees
Revenue Recognition
Total Revenues	16,329		20,051	32,511	41,027
Unaffiliated sales commissions on front-end load mutual fund and variable annuity sales
Revenue Recognition
Total Revenues	488		507	926	977
Unaffiliated other revenues
Revenue Recognition
Total Revenues	83		148	175	333
Wealth Management
Revenue Recognition
Total Revenues	116,595		117,167	226,128	233,577
Wealth Management, Fee-based asset allocation product revenues
Revenue Recognition
Total Revenues	70,220		66,580	135,450	132,097
Wealth Management, Rule 12b-1 service and distribution fees
Revenue Recognition
Total Revenues	16,327		18,109	32,015	36,486
Wealth Management, sales commissions on front-end load mutual fund and variable annuity sales
Revenue Recognition
Total Revenues	12,302		13,823	24,322	28,249
Wealth Management, sales commissions on other products
Revenue Recognition
Total Revenues	8,497		9,065	16,103	17,487
Wealth Management, other revenues
Revenue Recognition
Total Revenues	9,249		9,590	18,238	19,258
Shareholder service fees
Revenue Recognition
Total Revenues	$ 23,789	$ 27,074	$ 27,074	$ 47,192	$ 52,956

Investment Securities - Investm

Investment Securities - Investment securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available for sale securities:
Available for sale securities	$ 257,789	$ 250,764
Trading debt securities:
Trading debt securities	164,813	118,222
Equity securities:
Equity securities	240,039	200,309
Equity method securities:
Total investment securities	697,903	617,135
Certificates of deposit
Available for sale securities:
Available for sale securities		5,001
Commercial paper
Available for sale securities:
Available for sale securities	4,459	7,970
Trading debt securities:
Trading debt securities	1,486	1,993
Corporate bonds
Available for sale securities:
Available for sale securities	253,330	218,121
Trading debt securities:
Trading debt securities	88,201	77,250
U.S. treasury bills
Available for sale securities:
Available for sale securities		19,672
Trading debt securities:
Trading debt securities	5,957	5,884
Mortgage-backed securities
Trading debt securities:
Trading debt securities	6	7
Term loans
Trading debt securities:
Trading debt securities	30,877
Consolidated Sponsored Funds
Trading debt securities:
Trading debt securities	38,286	33,088
Equity securities:
Equity securities	28,654	24,879
Common Stock
Equity securities:
Equity securities	37,169	21,204
Sponsored funds
Equity securities:
Equity securities	173,372	153,548
Equity method securities:
Equity method securities	35,262	47,840
Sponsored privately offered funds
Equity securities:
Equity securities	$ 844	$ 678

Investment Securities - Maturit

Investment Securities - Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Amortized Cost
Within one year	$ 98,498
After one year but within five years	156,479
Amortized Cost	254,977	$ 251,810
Fair value
Within one year	98,485
After one year but within five years	159,304
Total fair value	257,789	$ 250,764
Fair value
Within one year	31,432
After one year but within five years	73,865
After five years but within 10 years	21,230
Total fair value	$ 126,527

Investment Securities - Inves_2

Investment Securities - Investment securities and summary of the gains (losses) related to securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available for sale securities:
Amortized Cost	$ 254,977	$ 251,810
Unrealized gains	2,985	323
Unrealized losses	(173)	(1,369)
Fair value	257,789	250,764
Certificates of deposit
Available for sale securities:
Amortized Cost		5,000
Unrealized gains		1
Fair value		5,001
Commercial paper
Available for sale securities:
Amortized Cost	4,459	7,902
Unrealized gains		68
Fair value	4,459	7,970
Corporate bonds
Available for sale securities:
Amortized Cost	250,518	219,236
Unrealized gains	2,985	254
Unrealized losses	(173)	(1,369)
Fair value	$ 253,330	218,121
U.S. treasury bills
Available for sale securities:
Amortized Cost		19,672
Fair value		$ 19,672

Investment Securities - Availab

Investment Securities - Available for sale sponsored funds with fair values below carrying values (Details) $ in Thousands	Jun. 30, 2019USD ($)security	Dec. 31, 2018USD ($)
Unrealized losses
Securities in an unrealized loss position | security	20
Corporate bonds
Fair value
Less than 12 months	$ 4,986	$ 36,302
12 months or longer	70,166	119,480
Total fair value	75,152	155,782
Unrealized losses
Less than 12 months	(14)	(160)
12 months or longer	(159)	(1,209)
Total unrealized losses	$ (173)	$ (1,369)

Investment Securities - Consoli

Investment Securities - Consolidated Sponsored Funds (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investment Securities
Cash	$ 168,926	$ 231,997
Redeemable noncontrolling interests	(15,115)	(11,463)
Consolidated Sponsored Funds
Investment Securities
Cash	5,282	4,285
Investments	66,940	57,967
Other assets	1,357	872
Other liabilities	(826)	(79)
Redeemable noncontrolling interests	(15,115)	(11,463)
Net interest in consolidated sponsored funds	$ 57,638	$ 51,582

Investment Securities - Fair va

Investment Securities - Fair value of investment securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair value of investments
Cash equivalents	$ 60,030	$ 196,931
Available for sale securities	257,789	250,764
Trading debt securities	164,813	118,222
Equity securities	240,039	200,309
Total investment securities	697,903	617,135
Money market funds
Fair value of investments
Cash equivalents	32,070	121,759
U.S. government sponsored enterprise note
Fair value of investments
Cash equivalents	895	895
Certificates of deposit
Fair value of investments
Available for sale securities		5,001
Commercial paper
Fair value of investments
Cash equivalents	27,065	74,277
Available for sale securities	4,459	7,970
Trading debt securities	1,486	1,993
Corporate bonds
Fair value of investments
Available for sale securities	253,330	218,121
Trading debt securities	88,201	77,250
U.S. treasury bills
Fair value of investments
Available for sale securities		19,672
Trading debt securities	5,957	5,884
Mortgage-backed securities
Fair value of investments
Trading debt securities	6	7
Term loans
Fair value of investments
Trading debt securities	30,877
Common Stock
Fair value of investments
Equity securities	37,169	21,204
Consolidated Sponsored Funds
Fair value of investments
Trading debt securities	38,286	33,088
Equity securities	28,654	24,879
Sponsored funds
Fair value of investments
Equity securities	173,372	153,548
Equity method securities	35,262	47,840
Sponsored privately offered funds
Fair value of investments
Equity securities	844	678
Level 1
Fair value of investments
Cash equivalents	32,070	121,759
Total investment securities	274,454	247,459
Level 1 | Money market funds
Fair value of investments
Cash equivalents	32,070	121,759
Level 1 | Common Stock
Fair value of investments
Equity securities	37,166	21,192
Level 1 | Consolidated Sponsored Funds
Fair value of investments
Equity securities	28,654	24,879
Level 1 | Sponsored funds
Fair value of investments
Equity securities	173,372	153,548
Equity method securities	35,262	47,840
Level 2
Fair value of investments
Cash equivalents	27,960	75,172
Total investment securities	421,234	368,986
Level 2 | U.S. government sponsored enterprise note
Fair value of investments
Cash equivalents	895	895
Level 2 | Certificates of deposit
Fair value of investments
Available for sale securities		5,001
Level 2 | Commercial paper
Fair value of investments
Cash equivalents	27,065	74,277
Available for sale securities	4,459	7,970
Trading debt securities	1,486	1,993
Level 2 | Corporate bonds
Fair value of investments
Available for sale securities	253,330	218,121
Trading debt securities	88,201	77,250
Level 2 | U.S. treasury bills
Fair value of investments
Available for sale securities		19,672
Trading debt securities	5,957	5,884
Level 2 | Mortgage-backed securities
Fair value of investments
Trading debt securities	6	7
Level 2 | Term loans
Fair value of investments
Trading debt securities	29,509
Level 2 | Consolidated Sponsored Funds
Fair value of investments
Trading debt securities	38,286	33,088
Level 3
Fair value of investments
Total investment securities	1,371	12
Level 3 | Term loans
Fair value of investments
Trading debt securities	1,368
Level 3 | Common Stock
Fair value of investments
Equity securities	3	12
Other Assets Held at Net Value
Fair value of investments
Total investment securities	844	678
Other Assets Held at Net Value | Sponsored privately offered funds
Fair value of investments
Equity securities	$ 844	$ 678

Investment Securities - Inves_3

Investment Securities - Investment category (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Level 3 assets at beginning of period	$ 12
Additions	1,376
Losses in Investment and other income	(17)
Level 3 assets at end of period	1,371
Change in unrealized losses for Level 3 assets held	$ (17)

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - Not designated as a hedge - Total return swap contracts $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019USD ($)contract	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Jun. 30, 2019USD ($)contract	Dec. 31, 2018USD ($)contract
Derivative Financial Instruments
Number of contracts | contract	11			11	5
Notional value	$ 250,000			$ 250,000	$ 194,400
Cash collateral with the counterparties	2,000			2,000	5,200
Level 2
Derivative Financial Instruments
Fair value - assets					4,968
Fair value - liabilities	2,034			2,034
Level 2 | Investment and other income (loss)
Derivative Financial Instruments
Net gains (losses) recognized in income	(5,241)	$ (1,908)	$ (543)	(25,863)
Level 2 | Prepaid expenses and other current assets
Derivative Financial Instruments
Fair value - assets					$ 4,968
Level 2 | Other current liabilities
Derivative Financial Instruments
Fair value - liabilities	$ 2,034			$ 2,034

Goodwill and Identifiable Int_3

Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Goodwill and Identifiable Intangible Assets
Goodwill	$ 106,970	$ 106,970
Mutual fund management advisory contracts	38,699	38,699
Other	200	200
Total identifiable intangible assets	38,899	38,899
Total goodwill and identifiable intangible assets	$ 145,869	$ 145,869

Indebtedness (Details)

Indebtedness (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Indebtedness
Long-term debt	$ 94,890	$ 94,854
Senior 5.75% unsecured notes due, 2021 ("Series B Notes")
Indebtedness
Fair value of outstanding long-term indebtedness	98,600
Long-term debt	$ 94,900

Income Tax Uncertainties (Detai

Income Tax Uncertainties (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Income Tax Uncertainties
Unrecognized tax benefits, including penalties and interest that if recognized would impact effective tax rate	$ 2,800	$ 2,800	$ 2,700
Unrecognized tax benefits, including penalties and interest, net of federal tax benefit that if recognized would affect effective tax rate	2,400	2,400	2,400
Total expense of interest and penalties, net of federal benefit related to uncertain tax positions	26	42
Accrued interest and penalties related to uncertain tax positions	700	700	700
Accrued interest and penalties related to uncertain tax positions, net of federal benefit	$ 600	$ 600	$ 600

Pension Plan and Postretireme_3

Pension Plan and Postretirement Benefits Other Than Pension (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019
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
Components of net periodic benefit cost:
Interest cost	$ 1,545	$ 1,485	$ 2,993	$ 3,073
Expected return on plan assets	(1,567)	(2,062)	(4,131)	(3,157)
Total	(22)	(577)	(1,138)	$ (84)
Other Postretirement Benefits
Pension Plan and Postretirement Benefits Other than Pension
Age of employees after which the plan does not provide benefits				65 years
Components of net periodic benefit cost:
Interest cost	8	13	27	$ 16
Actuarial gain amortization	(123)	(30)	(60)	(247)
Prior service cost amortization			(1)
Total	$ (115)	$ (17)	$ (34)	$ (231)

Stockholders' Equity - Earnings

Stockholders' Equity - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Components of basic and diluted earnings per share
Net income attributable to Waddell & Reed Financial, Inc.	$ 33,948	$ 44,478		$ 66,002	$ 90,815
Weighted average shares outstanding - basic and diluted	74,694,000	81,449,000		75,492,000	82,275,000
Earnings per share:
Earnings per share, basic and diluted (in dollars per share)	$ 0.45	$ 0.55		$ 0.87	$ 1.10
Dividends
Dividends declared (in dollars per share)	$ 0.25	$ 0.25		$ 0.50	$ 0.50
Dividends to be paid	$ 18,400			$ 18,400
Common stock repurchases
Shares repurchased in the open market or privately	2,142,894		2,098,625	4,369,219	3,094,934
Shares repurchased from employees to cover income tax withholdings	290,910		508,625	439,983	629,934

Stockholders' Equity - Accumula

Stockholders' Equity - Accumulated other comprehensive income (loss) activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	$ 868,604	$ 888,968	$ 883,450	$ 872,884
Balance at the end of the period	856,656	885,718	856,656	885,718
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	1,895	(1,478)	331	524
Amount reclassified to retained earnings for ASUs adopted in 2018				(848)
Other comprehensive income (loss) before reclassification	1,281	169	3,034	(962)
Amount reclassified from accumulated other comprehensive income (loss)	(95)	(23)	(284)	(46)
Net current period other comprehensive income (loss)	1,186	146	2,750	(1,856)
Balance at the end of the period	3,081	(1,332)	3,081	(1,332)
Unrealized gains (losses) on AFS investment securities
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	861	(1,941)	(797)	145
Amount reclassified to retained earnings for ASUs adopted in 2018				(955)
Other comprehensive income (loss) before reclassification	1,281	169	3,034	(962)
Amount reclassified from accumulated other comprehensive income (loss)			(95)
Net current period other comprehensive income (loss)	1,281	169	2,939	(1,917)
Balance at the end of the period	2,142	(1,772)	2,142	(1,772)
Postretirement benefits unrealized gains (losses)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	1,034	463	1,128	379
Amount reclassified to retained earnings for ASUs adopted in 2018				107
Amount reclassified from accumulated other comprehensive income (loss)	(95)	(23)	(189)	(46)
Net current period other comprehensive income (loss)	(95)	(23)	(189)	61
Balance at the end of the period	$ 939	$ 440	$ 939	$ 440

Stockholders' Equity - Reclassi

Stockholders' Equity - Reclassifications from accumulated other comprehensive income (loss) and included in net income (Details) - Reclassifications from accumulated other comprehensive income - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019
Reclassifications included in net income:
Pre-tax	$ 123	$ 30	$ 1,355	$ 372
Tax expense	(28)	(7)	(461)	(88)
Net of tax	95	23	894	284
Sponsored funds investment losses | Retained earnings
Reclassifications included in net income:
Pre-tax			1,295
Tax expense			(340)
Net of tax			955
Gains (losses) on available for sale debt securities | Investment and other income (loss)
Reclassifications included in net income:
Pre-tax				125
Tax expense				(30)
Net of tax				95
Postretirement benefits unrealized gains (losses) | Compensation and benefits
Reclassifications included in net income:
Pre-tax	123	30	60	247
Tax expense	(28)	(7)	(121)	(58)
Net of tax	$ 95	$ 23	$ (61)	$ 189

Leases (Details)

Leases (Details)	6 Months Ended
	Jun. 30, 2019
Leases
Option to extend - Operating	true
Option to extend - Finance	true
Option to terminate - Operating	true
Option to terminate - Finance	true
Minimum
Leases
Remaining lease terms - Operating	1 year
Remaining lease terms - Finance	1 year
Maximum
Leases
Remaining lease terms - Operating	7 years
Remaining lease terms - Finance	7 years
Option to extend period - Operating	20 years
Option to extend period - Finance	20 years
Option to terminate period - Operating	1 year
Option to terminate period - Finance	1 year

Leases - Components of Lease (D

Leases - Components of Lease (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Components of lease expense
Operating Lease Cost	$ 4,965	$ 10,283
Amortization of ROU assets	61	144
Interest on lease liabilities	7	15
Total	$ 68	$ 159

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Leases
Operating cash flows from operating leases	$ 9,867
Operating cash flows from finance leases	15
Financing cash flows from finance leases	153
ROU assets obtained in exchange for lease obligations - Finance leases	$ 40

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2019
Leases
Operating lease ROU assets			$ 27,235
Financial position			us-gaap:OtherAssetsNoncurrent
Operating lease liabilities - current			$ 11,831
Financial position			us-gaap:OtherLiabilitiesCurrent
Operating lease liabilities - noncurrent			$ 16,478
Financial position			us-gaap:OtherLiabilitiesNoncurrent
Total Operating lease liabilities			$ 28,309
Financing Lease ROU assets			$ 394
Financial position			Property, Plant and Equipment, Net
Finance lease liabilities - current			$ 266
Financial position			us-gaap:OtherLiabilitiesCurrent
Finance lease liabilities - noncurrent			$ 141
Financial position			us-gaap:OtherLiabilitiesNoncurrent
Finance lease liabilities			$ 407
Weighted average remaining lease term - Operating leases			4 years
Weighted average remaining lease term - Financing leases			2 years
Weighted average discount rate - Operating leases			4.33%
Weighted average discount rate - Financing leases			6.00%
Rent expense before adoption	$ 5,800	$ 11,800
Finance lease assets
Leases
Property and equipment, gross			$ 1,211
Accumulated depreciation			$ (817)

Leases - Capital Leases (Detail

Leases - Capital Leases (Details) $ in Millions	Dec. 31, 2018USD ($)
Leases
Property and equipment under capital leases, cost	$ 1.6
Property and equipment accumulated depreciation	$ 1.1

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2019USD ($)
Operating Leases maturities:
2019 (excluding three months ended March 31, 2019)	$ 7,155
2020	9,523
2021	4,882
2022	2,178
2023	2,090
Thereafter	4,703
Total lease payments	30,531
Less imputed interest	(2,222)
Total	28,309
Finance Leases maturities:
2019 (excluding three months ended March 31, 2019)	145
2020	224
2021	45
2022	6
Total lease payments	420
Less imputed interest	(13)
Total	$ 407

Leases (Details)_2

Leases (Details) $ in Thousands	Dec. 31, 2018USD ($)
Future minimum rental commitments under non-cancelable operating leases
2019	$ 16,488
2020	9,797
2021	5,757
2022	2,913
2023	2,320
Thereafter	5,161
Total	$ 42,436

Contingencies (Details)

Contingencies (Details) $ in Thousands	Jun. 30, 2019USD ($)
Case No. 17-2365 D. Kan
Shareholder Derivative Litigation
Settlement agreement amount	$ 4,875