Waddell & Reed Financial (WDR) 10-Q 1 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 25, 2019
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 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		70,323,231
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001052100
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 162,567	$ 231,997
Cash and cash equivalents - restricted	23,350	59,558
Investment securities	691,616	617,135
Receivables:
Funds and separate accounts	14,752	18,112
Customers and other	98,667	151,515
Prepaid expenses and other current assets	20,464	27,164
Total current assets	1,011,416	1,105,481
Property and equipment, net	49,785	63,429
Goodwill and identifiable intangible assets	145,869	145,869
Deferred income taxes	6,775	12,321
Other non-current assets	41,261	16,979
Total assets	1,255,106	1,344,079
Liabilities:
Accounts payable	17,095	26,253
Payable to investment companies for securities	31,022	100,085
Payable to third party brokers	18,036	19,891
Payable to customers	49,294	86,184
Accrued compensation	67,432	54,129
Other current liabilities	87,946	51,580
Total current liabilities	270,825	338,122
Long-term debt	94,908	94,854
Accrued pension and postretirement costs	822	798
Other non-current liabilities	32,108	15,392
Total liabilities	398,663	449,166
Redeemable noncontrolling interests	16,913	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; 71,211 shares outstanding (76,790 at December 31, 2018)	997	997
Additional paid-in capital	303,138	311,264
Retained earnings	1,242,677	1,198,445
Cost of 28,490 common shares in treasury (22,911 at December 31, 2018)	(710,565)	(627,587)
Accumulated other comprehensive income	3,283	331
Total stockholders' equity	839,530	883,450
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$ 1,255,106	$ 1,344,079

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 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	71,211	76,790
Common shares in treasury	28,490	22,911

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Total Revenues	$ 270,680	$ 295,118	$ 800,244	$ 888,071
Operating expenses:
Distribution	117,425	116,591	343,696	345,376
Compensation and benefits (including share-based compensation of $11,580, $12,856, $35,471, and $42,526, respectively)	64,999	64,561	191,718	199,174
General and administrative	16,680	17,559	47,421	56,240
Technology	15,019	15,414	47,769	49,293
Occupancy	5,684	7,148	19,100	21,081
Marketing and advertising	2,134	2,461	6,497	7,638
Depreciation	4,833	8,141	16,062	19,262
Subadvisory fees	3,882	3,767	11,154	11,158
Intangible asset impairment				1,200
Total	230,656	235,642	683,417	710,422
Operating income	40,024	59,476	116,827	177,649
Investment and other income	5,212	1,697	23,690	5,354
Interest expense	(1,562)	(1,555)	(4,662)	(4,908)
Income before provision for income taxes	43,674	59,618	135,855	178,095
Provision for income taxes	10,175	13,105	35,036	41,355
Net income	33,499	46,513	100,819	136,740
Net income (loss) attributable to redeemable noncontrolling interests	445	208	1,763	(380)
Net income attributable to Waddell & Reed Financial, Inc.	$ 33,054	$ 46,305	$ 99,056	$ 137,120
Net income per share attributable to Waddell and Reed Financial, Inc. common shareholders, basic and diluted:	$ 0.46	$ 0.58	$ 1.33	$ 1.69
Weighted average shares outstanding, basic and diluted:	72,387	79,595	74,446	81,372
Investment management fees
Revenues:
Total Revenues	$ 111,806	$ 129,302	$ 334,438	$ 393,385
Underwriting and distribution fees
Revenues:
Total Revenues	135,787	140,308	395,527	416,222
Shareholder service fees
Revenues:
Total Revenues	$ 23,087	$ 25,508	$ 70,279	$ 78,464

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Income
Compensation and benefits, share-based compensation	$ 11,580	$ 12,856	$ 35,471	$ 42,526

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 33,499	$ 46,513	$ 100,819	$ 136,740
Other comprehensive income:
Unrealized gain (loss) on available for sale investment securities during the period, net of income tax expense (benefit) of $92, $80, $1,011 and $(218), respectively	296	262	3,235	(700)
Postretirement benefit, net of income tax benefit of $(30), $(7), $(88) and $(22), respectively	(94)	(24)	(283)	(70)
Comprehensive income	33,701	46,751	103,771	135,970
Comprehensive income (loss) attributable to redeemable noncontrolling interests	445	208	1,763	(380)
Comprehensive income attributable to Waddell & Reed Financial, Inc.	$ 33,256	$ 46,543	$ 102,008	$ 136,350

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Unrealized gain (loss) on available for sale investment securities during the period, income tax expense (benefit)	$ 92	$ 80	$ 1,011	$ (218)
Postretirement benefit, income tax benefit	$ (30)	$ (7)	$ (88)	$ (22)

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)			137,120			137,120
Recognition of equity compensation		32,871	991			33,862
Net issuance/forfeiture of nonvested shares		(22,068)		22,068
Dividends accrued			(60,568)			(60,568)
Repurchase of common stock				(89,018)		(89,018)
Other comprehensive income (loss)					(770)	(770)
Balance at the end of the period at Sep. 30, 2018	$ 997	312,213	1,170,785	(589,391)	(1,094)	893,510
Balance (in shares) at Sep. 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)						(380)
Net subscription of redeemable noncontrolling interests in sponsored funds						2,004
Balance at the end of the period at Sep. 30, 2018						16,133
Balance at the beginning 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
Increase (Decrease) in Stockholders' Equity
Net income (loss)			46,305			46,305
Recognition of equity compensation		9,228	78			9,306
Net issuance/forfeiture of nonvested shares		841		(841)
Dividends accrued			(19,688)			(19,688)
Repurchase of common stock				(28,369)		(28,369)
Other comprehensive income (loss)					238	238
Balance at the end of the period at Sep. 30, 2018	$ 997	312,213	1,170,785	(589,391)	(1,094)	893,510
Balance (in shares) at Sep. 30, 2018	99,701
Balance at the beginning of the period at Jun. 30, 2018						17,052
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						208
Net redemption of redeemable noncontrolling interests in sponsored funds						(1,127)
Balance at the end of the period at Sep. 30, 2018						16,133
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)			99,056			99,056
Recognition of equity compensation		25,573	297			25,870
Net issuance/forfeiture of nonvested shares		(33,699)		33,699
Dividends accrued			(55,121)			(55,121)
Repurchase of common stock				(116,677)		(116,677)
Other comprehensive income (loss)					2,952	2,952
Balance at the end of the period at Sep. 30, 2019	$ 997	303,138	1,242,677	(710,565)	3,283	839,530
Balance (in shares) at Sep. 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)						1,763
Net subscription of redeemable noncontrolling interests in sponsored funds						3,687
Balance at the end of the period at Sep. 30, 2019						16,913
Balance at the beginning 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
Increase (Decrease) in Stockholders' Equity
Net income (loss)			33,054			33,054
Recognition of equity compensation		8,024	57			8,081
Net issuance/forfeiture of nonvested shares		627		(627)
Dividends accrued			(17,748)			(17,748)
Repurchase of common stock				(40,715)		(40,715)
Other comprehensive income (loss)					202	202
Balance at the end of the period at Sep. 30, 2019	$ 997	$ 303,138	$ 1,242,677	$ (710,565)	$ 3,283	839,530
Balance (in shares) at Sep. 30, 2019	99,701
Balance at the beginning of the period at Jun. 30, 2019						15,115
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						445
Net subscription of redeemable noncontrolling interests in sponsored funds						1,353
Balance at the end of the period at Sep. 30, 2019						$ 16,913

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests
Dividends accrued (in dollars per share)	$ 0.25	$ 0.25	$ 0.75	$ 0.75

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 100,819	$ 136,740
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,057	19,262
Write-down of impaired assets		1,200
Amortization of deferred sales commissions	1,492	2,682
Share-based compensation	35,471	42,526
Investments (gain) loss, net	(25,916)	2,521
Net purchases, maturities, and sales of trading and equity securities	(47,641)	(4,387)
Deferred income taxes	4,622	5,307
Net change in equity securities and trading debt securities held by consolidated sponsored funds	16,697	71,452
Other	1,273	2,973
Changes in assets and liabilities:
Customer and other receivables	74,807	9,286
Payable to investment companies for securities and payable to customers	(105,953)	(14,394)
Receivables from funds and separate accounts	3,360	3,345
Other assets	19,599	7,650
Accounts payable and payable to third party brokers	(11,013)	(1,388)
Other liabilities	557	(21,042)
Net cash provided by operating activities	84,231	263,733
Cash flows from investing activities:
Purchases of available for sale and equity method securities	(149,835)	(56,840)
Proceeds from sales of available for sale and equity method securities	19,667	1,157
Proceeds from maturities of available for sale securities	116,197	100,085
Additions to property and equipment	(4,189)	(1,831)
Net cash (used in) provided by investing activities	(18,160)	42,571
Cash flows from financing activities:
Dividends paid	(56,560)	(61,531)
Repurchase of common stock	(118,668)	(88,166)
Repayment of short-term debt, net of debt issuance costs		(94,943)
Net subscriptions (redemptions, distributions and deconsolidations) of redeemable noncontrolling interests in sponsored funds	3,687	2,004
Other	(168)
Net cash used in financing activities	(171,709)	(242,636)
Net (decrease) increase in cash, cash equivalents and restricted cash	(105,638)	63,668
Cash, cash equivalents, and restricted cash at beginning of period	291,555	235,985
Cash, cash equivalents, and restricted cash at end of period	$ 185,917	$ 299,653

Description of Business and Sig

Description of Business and Significant Accounting Policies	9 Months Ended
	Sep. 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 wealth management 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 Rule 12b-1 of the Investment Company Act of 1940 (“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 (our “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 September 30, 2019 and the results of operations and cash flows for the three and nine months ended September 30, 2019 and 2018 in conformity with accounting principles generally accepted in the United States. ​

New Accounting Guidance

New Accounting Guidance	9 Months Ended
	Sep. 30, 2019
New Accounting Guidance
New Accounting Guidance	2. New Accounting Guidance ​ 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	9 Months Ended
	Sep. 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 ​ Nine months ended ​ Nine months ended ​ ​ ​ (in thousands) ​ (in thousands) Investment management fees: ​ ​ Funds ​ $ 107,926 123,764 322,678 376,193 Institutional ​ 3,880 5,538 11,760 17,192 Total investment management fees ​ $ 111,806 129,302 334,438 393,385 Underwriting and distribution fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaffiliated ​ ​ ​ ​ ​ ​ ​ ​ ​ Rule 12b-1 service and distribution fees ​ $ 16,003 ​ 19,707 ​ 48,514 ​ 60,734 Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 361 ​ 441 ​ 1,287 ​ 1,418 Other revenues ​ ​ 67 ​ 126 ​ 242 ​ 459 Total unaffiliated distribution fees ​ $ 16,431 ​ 20,274 ​ 50,043 ​ 62,611 Wealth Management ​ ​ ​ ​ ​ ​ ​ ​ ​ Fee-based asset allocation product revenues ​ $ 73,356 ​ 69,468 ​ 208,806 ​ 201,565 Rule 12b-1 service and distribution fees ​ ​ 16,426 ​ 18,106 ​ 48,441 ​ 54,591 Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 12,523 ​ 13,651 ​ 36,845 ​ 41,900 Sales commissions on other products ​ ​ 8,024 ​ 9,111 ​ 24,127 ​ 26,632 Other revenues ​ ​ 9,027 ​ 9,698 ​ 27,265 ​ 28,923 Total wealth management distribution fees ​ ​ 119,356 ​ 120,034 ​ 345,484 ​ 353,611 Total distribution fees ​ $ 135,787 ​ 140,308 ​ 395,527 ​ 416,222 Shareholder service fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholder service fees ​ $ 23,087 25,508 70,279 78,464 ​ ​ ​ ​ ​ ​ Total revenues ​ $ 270,680 295,118 800,244 888,071 ​

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2019
Investment Securities
Investment Securities	4. Investment Securities ​ Investment securities at September 30, 2019 and December 31, 2018 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2019 2018 ​ ​ ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Certificates of deposit ​ $ — ​ 5,001 ​ Commercial paper ​ ​ 1,975 ​ 7,970 ​ Corporate bonds ​ ​ 267,064 ​ 218,121 ​ U.S. Treasury bills ​ ​ — ​ 19,672 ​ Total available for sale securities ​ 269,039 ​ 250,764 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 1,975 ​ 1,993 ​ Corporate bonds ​ 89,057 ​ 77,250 ​ U.S. Treasury bills ​ ​ 5,968 ​ 5,884 ​ Mortgage-backed securities ​ 5 ​ 7 ​ Term loans ​ ​ 42,272 ​ — ​ Consolidated sponsored funds ​ 41,269 ​ 33,088 ​ Total trading securities ​ 180,546 ​ 118,222 ​ Equity securities: ​ ​ ​ ​ ​ ​ Common stock ​ 31,744 ​ 21,204 ​ Sponsored funds ​ ​ 174,219 ​ 153,548 ​ Sponsored privately offered funds ​ 781 ​ 678 ​ Consolidated sponsored funds ​ ​ — ​ 24,879 ​ Total equity securities ​ ​ 206,744 ​ 200,309 ​ Equity method securities: ​ ​ ​ ​ ​ ​ Sponsored funds ​ 35,287 ​ 47,840 ​ Total securities ​ $ 691,616 ​ 617,135 ​ ​ Commercial paper and corporate bonds accounted for as available for sale and held as of September 30, 2019 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost Fair value ​ (in thousands) Within one year $ 83,965 ​ 84,173 After one year but within five years ​ 181,873 ​ 184,866 ​ $ 265,838 ​ 269,039 ​ Commercial paper, corporate bonds, U.S. Treasury bills, mortgage-backed securities and term loans accounted for as trading and held as of September 30, 2019 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ ​ ​ (in thousands) Within one year ​ ​ $ 32,977 After one year but within five years ​ ​ ​ 76,645 After five years but within 10 years ​ ​ ​ 29,655 ​ ​ ​ $ 139,277 ​ The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 1,975 ​ — ​ — ​ 1,975 ​ Corporate bonds ​ ​ 263,863 3,240 ​ (39) 267,064 ​ ​ ​ $ 265,838 3,240 (39) 269,039 ​ ​ 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 September 30, 2019 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or longer ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ ​ ​ Unrealized September 30, 2019 Fair value losses Fair value losses Fair value losses ​ ​ (in thousands) Corporate bonds ​ $ 19,987 ​ (19) ​ 27,105 ​ (20) ​ 47,092 ​ (39) ​ 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 12 available for sale securities in an unrealized loss position at September 30, 2019. ​ The Company evaluated available for sale securities in an unrealized loss position at September 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 September 30, 2019 and December 31, 2018, as well as the Company’s net interest in these funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ 2019 ​ 2018 ​ (in thousands) Cash $ 5,161 ​ ​ 4,285 Investments ​ 41,269 ​ 57,967 Other assets ​ 486 ​ 872 Other liabilities ​ — ​ (79) Redeemable noncontrolling interests ​ (16,913) ​ (11,463) Net interest in consolidated sponsored funds $ 30,003 ​ ​ 51,582 ​ At September 30, 2019, we consolidated an Ivy Fund and Ivy Global Investors Funds in which we provided initial seed capital at the time of the funds’ formation. 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. During the third quarter of 2019, the formerly consolidated Ivy Nextshares were liquidated and distributed to shareholders. 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 September 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 3,090 ​ — ​ — ​ — ​ 3,090 ​ U.S. government sponsored enterprise note ​ ​ — ​ 896 ​ — ​ — ​ 896 ​ Commercial paper ​ ​ — ​ 37,104 ​ — ​ — ​ 37,104 ​ Total cash equivalents ​ $ 3,090 ​ 38,000 ​ — ​ — ​ 41,090 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 1,975 ​ — ​ — ​ 1,975 ​ Corporate bonds ​ ​ — ​ 267,064 ​ — ​ — ​ 267,064 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 1,975 ​ — ​ — ​ 1,975 ​ Corporate bonds ​ ​ — ​ 89,057 ​ — ​ ​ ​ 89,057 ​ U.S. Treasury bills ​ ​ — ​ 5,968 ​ — ​ — ​ 5,968 ​ Mortgage-backed securities ​ — 5 — — ​ 5 ​ Term loans ​ — 40,879 1,393 — ​ 42,272 ​ Consolidated sponsored funds ​ — 41,269 — — ​ 41,269 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ 31,742 ​ — ​ 2 ​ — ​ 31,744 ​ Sponsored funds ​ ​ 174,219 ​ — ​ — ​ — ​ 174,219 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 781 ​ 781 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 35,287 ​ — ​ — ​ — ​ 35,287 ​ Total investment securities ​ $ 241,248 ​ 448,192 ​ 1,395 ​ 781 ​ 691,616 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 nine months ended September 30, 2019: ​ ​ ​ ​ ​ ​ For the nine months ended ​ ​ September 30, 2019 ​ ​ (in thousands) Level 3 assets at December 31, 2018 ​ $ 12 Additions ​ 2,357 Transfers out of level 3 ​ ​ (196) Losses in Investment and other income ​ (23) Redemptions/Paydowns ​ ​ (755) Level 3 assets at September 30, 2019 ​ $ 1,395 ​ ​ ​ ​ Change in unrealized losses for Level 3 assets held at ​ $ (21) ​

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 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 14 total return swap contracts with a combined notional value of $222.1 million and five total return swap contracts with a combined notional value of $194.4 million as of September 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 $0.6 million and $5.2 million in cash collateral with the counterparties of the total return swap contracts as of September 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 September 30, 2019 and December 31, 2018 and is calculated based on Level 2 inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2019 ​ ​ 2018 ​ location Fair value Fair value ​ ​ ​ (in thousands) Total return swap contracts Prepaid expenses and other current assets ​ $ 153 ​ ​ 4,968 Total return swap contracts ​ Other current liabilities ​ ​ 467 ​ ​ — Net total return swap (liability) asset ​ ​ $ (314) ​ ​ 4,968 ​ The following is a summary of net gains (losses) recognized in income for the three and nine months ended September 30, 2019 and September 30, 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ Income statement ​ September 30, ​ September 30, ​ location ​ 2019 2018 ​ 2019 ​ 2018 ​ ​ ​ (in thousands) ​ (in thousands) Total return swap contracts Investment and other income $ 135 (6,769) ​ $ (25,728) ​ (7,313) ​

Goodwill and Identifiable Intan

Goodwill and Identifiable Intangible Assets	9 Months Ended
	Sep. 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 September 30, 2019 and December 31, 2018 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 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	9 Months Ended
	Sep. 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 September 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	9 Months Ended
	Sep. 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 September 30, 2019 and December 31, 2018, the Company’s consolidated balance sheet included unrecognized tax benefits, including penalties and interest, of $2.7 million ($2.3 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 amount of penalties and interest, net of federal benefit, related to income tax uncertainties recognized in the statements of income for the three and nine month periods ended September 30, 2019 was $38 thousand and $79 thousand, respectively. The total amount of accrued penalties and interest related to uncertain tax positions recognized in the consolidated balance sheet at September 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 2016, 2017, and 2018 federal income tax returns are open tax years that remain subject to potential future audit. State income tax returns for all years after 2014 and, in certain states, income tax returns for 2014, are subject to potential future audit by tax authorities in the Company’s major state tax jurisdictions. ​

Pension Plan and Postretirement

Pension Plan and Postretirement Benefits Other Than Pension	9 Months Ended
	Sep. 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, as defined by the Pension Benefit Guaranty Corporation, 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 September 30, ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ Nine months ended September 30, ​ ​ 2019 ​ 2018 ​ ​ 2019 ​ 2018 ​ 2019 ​ 2018 ​ ​ 2019 ​ 2018 ​ ​ ​ (in thousands) ​ ​ (in thousands) Components of net periodic benefit cost: ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 1,537 1,497 ​ $ 9 14 ​ $ 4,610 4,490 $ 25 41 Expected return on plan assets ​ (1,579) (2,065) ​ — — ​ (4,736) (6,196) — — Actuarial gain amortization ​ — — ​ (124) (30) ​ — — (371) (90) Prior service credit amortization ​ — — ​ — (1) ​ — — — (2) Total ​ $ (42) ​ (568) ​ $ (115) ​ (17) ​ $ (126) ​ (1,706) ​ $ (346) ​ (51) ​ ​ ​

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 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 ​ Nine months ended ​ ​ September 30, ​ September 30, ​ ​ 2019 ​ 2018 ​ 2019 ​ 2018 ​ ​ (in thousands, except per share amounts) Net income attributable to Waddell & Reed Financial, Inc. $ 33,054 46,305 $ 99,056 137,120 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding, basic and diluted ​ 72,387 ​ 79,595 ​ 74,446 ​ 81,372 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share, basic and diluted ​ $ 0.46 ​ 0.58 ​ $ 1.33 ​ 1.69 ​ 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 with a November 1, 2019 payment date and an October 11, 2019 record date. The total dividend paid on November 1, 2019 was $17.7 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 2,480,019 shares and 1,424,612 shares repurchased in the open market or privately during the three months ended September 30, 2019 and 2018, respectively, which includes 19 shares and 225 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 6,849,238 shares and 4,519,546 shares repurchased in the open market or privately during the nine months ended September 30, 2019 and 2018, respectively, which includes 440,002 shares and 630,159 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 nine months ended September 30, 2019 and September 30, 2018. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended September 30, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) on ​ benefits ​ other ​ ​ AFS investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at June 30, 2019 $ 2,142 939 3,081 Other comprehensive income before reclassification 379 ​ — 379 Amount reclassified from accumulated other comprehensive (loss) (83) ​ (94) (177) Net current period other comprehensive income (loss) 296 ​ (94) 202 Balance at September 30, 2019 ​ $ 2,438 845 3,283 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2018 $ (1,772) 440 (1,332) Other comprehensive income before reclassification 218 — 218 Amount reclassified from accumulated other comprehensive income (loss) 44 (24) 20 Net current period other comprehensive income (loss) 262 ​ (24) 238 Balance at September 30, 2018 ​ $ (1,510) 416 (1,094) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the nine months ended September 30, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) ​ benefits ​ other ​ ​ on investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at December 31, 2018 $ (797) 1,128 331 Other comprehensive income before reclassification ​ 3,413 — 3,413 Amount reclassified from accumulated other comprehensive (loss) ​ (178) (283) (461) Net current period other comprehensive income (loss) ​ 3,235 ​ (283) 2,952 Balance at September 30, 2019 ​ $ 2,438 845 3,283 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ ​ (744) ​ — ​ (744) Amount reclassified from accumulated other comprehensive income (loss) ​ 44 ​ (70) (26) Net current period other comprehensive (loss) income ​ (1,655) ​ 37 (1,618) Balance at September 30, 2018 ​ $ (1,510) 416 (1,094) ​ Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the three months ended September 30, 2019 ​ 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 ​ $ 109 ​ (26) ​ 83 Investment and other income Amortization of postretirement benefits ​ ​ 124 (30) 94 Compensation and benefits Total ​ $ 233 (56) 177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ ​ ​ ​ benefit ​ ​ ​ ​ For the three months ended September 30, 2018 ​ Pre-tax ​ (expense) ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ Reclassifications included in net income: ​ Losses on available for sale debt securities ​ $ (58) 14 ​ (44) Investment and other income Amortization of postretirement benefits ​ ​ 31 (7) 24 Compensation and benefits Total ​ $ (27) 7 (20) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the nine months ended September 30, 2019 ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ Reclassifications included in net income: ​ Gains on available for sale debt securities ​ $ 234 (56) 178 Investment and other income Amortization of postretirement benefits ​ ​ 371 (88) 283 Compensation and benefits Total ​ $ 605 (144) 461 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ ​ ​ ​ (expense) ​ ​ ​ Statement of income For the nine months ended September 30, 2018 ​ Pre-tax ​ benefit ​ Net of tax ​ line item or retained earnings ​ ​ (in thousands) ​ ​ Reclassifications included in net income or retained earnings for ASUs adopted in 2018: ​ Sponsored funds investment gains ​ $ 1,295 (340) 955 Retained earnings Losses on available for sale debt securities ​ (58) 14 (44) Investment and other income Amortization of postretirement benefits ​ 92 (129) (37) Compensation and benefits and retained earnings Total ​ $ 1,329 (455) 874 ​ ​ ​ ​

Leases

Leases	9 Months Ended
	Sep. 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 September 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. 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 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 nine ​ ​ months ended ​ months ended ​ ​ September 30, 2019 ​ September 30, 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 4,189 $ 14,472 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 80 $ 224 Interest on lease liabilities ​ ​ 8 ​ 23 Total ​ $ 88 ​ $ 247 ​ ​ ​ ​ ​ ​ ​ ​ Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ For the nine ​ ​ months ended ​ ​ September 30, 2019 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ Operating cash flows from operating leases ​ $ 13,661 Operating cash flows from finance leases ​ 23 Financing cash flows from finance leases ​ ​ 222 ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ Operating leases ​ ​ 2,410 Finance leases ​ ​ 40 ​ Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ (in thousands, ​ ​ except lease term ​ ​ and discount rate) Operating Leases: ​ Operating lease ROU assets (Other non-current assets) ​ $ 25,795 ​ ​ ​ ​ Other current liabilities ​ $ 10,873 Other non-current liabilities ​ ​ 16,445 Total operating lease liabilities ​ $ 27,318 ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases: ​ ​ ​ Property and equipment, gross ​ $ 1,054 Accumulated depreciation ​ ​ (734) Property and equipment, net ​ $ 320 ​ ​ ​ ​ Other current liabilities ​ $ 241 Other non-current liabilities ​ ​ 90 Total finance lease liabilities ​ $ 331 ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ Operating leases ​ ​ 4 years Finance leases ​ ​ 1 year ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ Operating leases ​ ​ 4.32% Finance leases ​ ​ 6.00% ​ Maturities of lease liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ ​ Finance ​ ​ Leases ​ ​ Leases ​ ​ (in thousands) Year ended December 31, ​ ​ ​ ​ ​ ​ 2019 (excluding the nine months ended September 30, 2019) $ 3,361 ​ 68 2020 ​ ​ 10,580 ​ ​ 218 2021 ​ 6,468 ​ 45 2022 ​ 2,178 ​ 6 2023 ​ ​ 2,090 ​ ​ — Thereafter ​ 4,703 ​ — Total lease payments ​ 29,380 ​ 337 Less imputed interest ​ ​ (2,062) ​ ​ (6) Total ​ $ 27,318 ​ 331 ​ 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 $17.6 million for the three and nine months ended September 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	9 Months Ended
	Sep. 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.” ​

Description of Business and S_2

Description of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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 (our “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 September 30, 2019 and the results of operations and cash flows for the three and nine months ended September 30, 2019 and 2018 in conformity with accounting principles generally accepted in the United States.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 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 ​ Nine months ended ​ Nine months ended ​ ​ ​ (in thousands) ​ (in thousands) Investment management fees: ​ ​ Funds ​ $ 107,926 123,764 322,678 376,193 Institutional ​ 3,880 5,538 11,760 17,192 Total investment management fees ​ $ 111,806 129,302 334,438 393,385 Underwriting and distribution fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaffiliated ​ ​ ​ ​ ​ ​ ​ ​ ​ Rule 12b-1 service and distribution fees ​ $ 16,003 ​ 19,707 ​ 48,514 ​ 60,734 Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 361 ​ 441 ​ 1,287 ​ 1,418 Other revenues ​ ​ 67 ​ 126 ​ 242 ​ 459 Total unaffiliated distribution fees ​ $ 16,431 ​ 20,274 ​ 50,043 ​ 62,611 Wealth Management ​ ​ ​ ​ ​ ​ ​ ​ ​ Fee-based asset allocation product revenues ​ $ 73,356 ​ 69,468 ​ 208,806 ​ 201,565 Rule 12b-1 service and distribution fees ​ ​ 16,426 ​ 18,106 ​ 48,441 ​ 54,591 Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 12,523 ​ 13,651 ​ 36,845 ​ 41,900 Sales commissions on other products ​ ​ 8,024 ​ 9,111 ​ 24,127 ​ 26,632 Other revenues ​ ​ 9,027 ​ 9,698 ​ 27,265 ​ 28,923 Total wealth management distribution fees ​ ​ 119,356 ​ 120,034 ​ 345,484 ​ 353,611 Total distribution fees ​ $ 135,787 ​ 140,308 ​ 395,527 ​ 416,222 Shareholder service fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholder service fees ​ $ 23,087 25,508 70,279 78,464 ​ ​ ​ ​ ​ ​ Total revenues ​ $ 270,680 295,118 800,244 888,071

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2019
Investment Securities
Schedule of investment securities	Investment securities at September 30, 2019 and December 31, 2018 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2019 2018 ​ ​ ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Certificates of deposit ​ $ — ​ 5,001 ​ Commercial paper ​ ​ 1,975 ​ 7,970 ​ Corporate bonds ​ ​ 267,064 ​ 218,121 ​ U.S. Treasury bills ​ ​ — ​ 19,672 ​ Total available for sale securities ​ 269,039 ​ 250,764 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 1,975 ​ 1,993 ​ Corporate bonds ​ 89,057 ​ 77,250 ​ U.S. Treasury bills ​ ​ 5,968 ​ 5,884 ​ Mortgage-backed securities ​ 5 ​ 7 ​ Term loans ​ ​ 42,272 ​ — ​ Consolidated sponsored funds ​ 41,269 ​ 33,088 ​ Total trading securities ​ 180,546 ​ 118,222 ​ Equity securities: ​ ​ ​ ​ ​ ​ Common stock ​ 31,744 ​ 21,204 ​ Sponsored funds ​ ​ 174,219 ​ 153,548 ​ Sponsored privately offered funds ​ 781 ​ 678 ​ Consolidated sponsored funds ​ ​ — ​ 24,879 ​ Total equity securities ​ ​ 206,744 ​ 200,309 ​ Equity method securities: ​ ​ ​ ​ ​ ​ Sponsored funds ​ 35,287 ​ 47,840 ​ Total securities ​ $ 691,616 ​ 617,135 ​
Summary of maturities of securities held	Commercial paper and corporate bonds accounted for as available for sale and held as of September 30, 2019 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost Fair value ​ (in thousands) Within one year $ 83,965 ​ 84,173 After one year but within five years ​ 181,873 ​ 184,866 ​ $ 265,838 ​ 269,039 ​ Commercial paper, corporate bonds, U.S. Treasury bills, mortgage-backed securities and term loans accounted for as trading and held as of September 30, 2019 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ ​ ​ (in thousands) Within one year ​ ​ $ 32,977 After one year but within five years ​ ​ ​ 76,645 After five years but within 10 years ​ ​ ​ 29,655 ​ ​ ​ $ 139,277
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 September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 1,975 ​ — ​ — ​ 1,975 ​ Corporate bonds ​ ​ 263,863 3,240 ​ (39) 267,064 ​ ​ ​ $ 265,838 3,240 (39) 269,039 ​ ​ 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 September 30, 2019 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or longer ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ ​ ​ Unrealized September 30, 2019 Fair value losses Fair value losses Fair value losses ​ ​ (in thousands) Corporate bonds ​ $ 19,987 ​ (19) ​ 27,105 ​ (20) ​ 47,092 ​ (39) ​ 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 September 30, 2019 and December 31, 2018, as well as the Company’s net interest in these funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ 2019 ​ 2018 ​ (in thousands) Cash $ 5,161 ​ ​ 4,285 Investments ​ 41,269 ​ 57,967 Other assets ​ 486 ​ 872 Other liabilities ​ — ​ (79) Redeemable noncontrolling interests ​ (16,913) ​ (11,463) Net interest in consolidated sponsored funds $ 30,003 ​ ​ 51,582
Schedule of fair value of investment securities	The following tables summarize our investment securities as of September 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 3,090 ​ — ​ — ​ — ​ 3,090 ​ U.S. government sponsored enterprise note ​ ​ — ​ 896 ​ — ​ — ​ 896 ​ Commercial paper ​ ​ — ​ 37,104 ​ — ​ — ​ 37,104 ​ Total cash equivalents ​ $ 3,090 ​ 38,000 ​ — ​ — ​ 41,090 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 1,975 ​ — ​ — ​ 1,975 ​ Corporate bonds ​ ​ — ​ 267,064 ​ — ​ — ​ 267,064 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 1,975 ​ — ​ — ​ 1,975 ​ Corporate bonds ​ ​ — ​ 89,057 ​ — ​ ​ ​ 89,057 ​ U.S. Treasury bills ​ ​ — ​ 5,968 ​ — ​ — ​ 5,968 ​ Mortgage-backed securities ​ — 5 — — ​ 5 ​ Term loans ​ — 40,879 1,393 — ​ 42,272 ​ Consolidated sponsored funds ​ — 41,269 — — ​ 41,269 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ 31,742 ​ — ​ 2 ​ — ​ 31,744 ​ Sponsored funds ​ ​ 174,219 ​ — ​ — ​ — ​ 174,219 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 781 ​ 781 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 35,287 ​ — ​ — ​ — ​ 35,287 ​ Total investment securities ​ $ 241,248 ​ 448,192 ​ 1,395 ​ 781 ​ 691,616 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 nine months ended September 30, 2019: ​ ​ ​ ​ ​ ​ For the nine months ended ​ ​ September 30, 2019 ​ ​ (in thousands) Level 3 assets at December 31, 2018 ​ $ 12 Additions ​ 2,357 Transfers out of level 3 ​ ​ (196) Losses in Investment and other income ​ (23) Redemptions/Paydowns ​ ​ (755) Level 3 assets at September 30, 2019 ​ $ 1,395 ​ ​ ​ ​ Change in unrealized losses for Level 3 assets held at ​ $ (21)

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 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 September 30, 2019 and December 31, 2018 and is calculated based on Level 2 inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2019 ​ ​ 2018 ​ location Fair value Fair value ​ ​ ​ (in thousands) Total return swap contracts Prepaid expenses and other current assets ​ $ 153 ​ ​ 4,968 Total return swap contracts ​ Other current liabilities ​ ​ 467 ​ ​ — Net total return swap (liability) asset ​ ​ $ (314) ​ ​ 4,968
Schedule of net gains (losses) recognized in income of derivative financial instrument	The following is a summary of net gains (losses) recognized in income for the three and nine months ended September 30, 2019 and September 30, 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ Income statement ​ September 30, ​ September 30, ​ location ​ 2019 2018 ​ 2019 ​ 2018 ​ ​ ​ (in thousands) ​ (in thousands) Total return swap contracts Investment and other income $ 135 (6,769) ​ $ (25,728) ​ (7,313)

Goodwill and Identifiable Int_2

Goodwill and Identifiable Intangible Assets (Tables)	9 Months Ended
	Sep. 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 September 30, 2019 and December 31, 2018 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 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)	9 Months Ended
	Sep. 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 September 30, ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ Nine months ended September 30, ​ ​ 2019 ​ 2018 ​ ​ 2019 ​ 2018 ​ 2019 ​ 2018 ​ ​ 2019 ​ 2018 ​ ​ ​ (in thousands) ​ ​ (in thousands) Components of net periodic benefit cost: ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 1,537 1,497 ​ $ 9 14 ​ $ 4,610 4,490 $ 25 41 Expected return on plan assets ​ (1,579) (2,065) ​ — — ​ (4,736) (6,196) — — Actuarial gain amortization ​ — — ​ (124) (30) ​ — — (371) (90) Prior service credit amortization ​ — — ​ — (1) ​ — — — (2) Total ​ $ (42) ​ (568) ​ $ (115) ​ (17) ​ $ (126) ​ (1,706) ​ $ (346) ​ (51)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 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 ​ Nine months ended ​ ​ September 30, ​ September 30, ​ ​ 2019 ​ 2018 ​ 2019 ​ 2018 ​ ​ (in thousands, except per share amounts) Net income attributable to Waddell & Reed Financial, Inc. $ 33,054 46,305 $ 99,056 137,120 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding, basic and diluted ​ 72,387 ​ 79,595 ​ 74,446 ​ 81,372 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share, basic and diluted ​ $ 0.46 ​ 0.58 ​ $ 1.33 ​ 1.69
Summary of accumulated other comprehensive income (loss) activity	The following tables summarize accumulated other comprehensive income (loss) activity for the three and nine months ended September 30, 2019 and September 30, 2018. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended September 30, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) on ​ benefits ​ other ​ ​ AFS investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at June 30, 2019 $ 2,142 939 3,081 Other comprehensive income before reclassification 379 ​ — 379 Amount reclassified from accumulated other comprehensive (loss) (83) ​ (94) (177) Net current period other comprehensive income (loss) 296 ​ (94) 202 Balance at September 30, 2019 ​ $ 2,438 845 3,283 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2018 $ (1,772) 440 (1,332) Other comprehensive income before reclassification 218 — 218 Amount reclassified from accumulated other comprehensive income (loss) 44 (24) 20 Net current period other comprehensive income (loss) 262 ​ (24) 238 Balance at September 30, 2018 ​ $ (1,510) 416 (1,094) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the nine months ended September 30, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) ​ benefits ​ other ​ ​ on investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at December 31, 2018 $ (797) 1,128 331 Other comprehensive income before reclassification ​ 3,413 — 3,413 Amount reclassified from accumulated other comprehensive (loss) ​ (178) (283) (461) Net current period other comprehensive income (loss) ​ 3,235 ​ (283) 2,952 Balance at September 30, 2019 ​ $ 2,438 845 3,283 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ ​ (744) ​ — ​ (744) Amount reclassified from accumulated other comprehensive income (loss) ​ 44 ​ (70) (26) Net current period other comprehensive (loss) income ​ (1,655) ​ 37 (1,618) Balance at September 30, 2018 ​ $ (1,510) 416 (1,094) ​
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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the three months ended September 30, 2019 ​ 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 ​ $ 109 ​ (26) ​ 83 Investment and other income Amortization of postretirement benefits ​ ​ 124 (30) 94 Compensation and benefits Total ​ $ 233 (56) 177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ ​ ​ ​ benefit ​ ​ ​ ​ For the three months ended September 30, 2018 ​ Pre-tax ​ (expense) ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ Reclassifications included in net income: ​ Losses on available for sale debt securities ​ $ (58) 14 ​ (44) Investment and other income Amortization of postretirement benefits ​ ​ 31 (7) 24 Compensation and benefits Total ​ $ (27) 7 (20) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the nine months ended September 30, 2019 ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ Reclassifications included in net income: ​ Gains on available for sale debt securities ​ $ 234 (56) 178 Investment and other income Amortization of postretirement benefits ​ ​ 371 (88) 283 Compensation and benefits Total ​ $ 605 (144) 461 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ ​ ​ ​ ​ ​ (expense) ​ ​ ​ Statement of income For the nine months ended September 30, 2018 ​ Pre-tax ​ benefit ​ Net of tax ​ line item or retained earnings ​ ​ (in thousands) ​ ​ Reclassifications included in net income or retained earnings for ASUs adopted in 2018: ​ Sponsored funds investment gains ​ $ 1,295 (340) 955 Retained earnings Losses on available for sale debt securities ​ (58) 14 (44) Investment and other income Amortization of postretirement benefits ​ 92 (129) (37) Compensation and benefits and retained earnings Total ​ $ 1,329 (455) 874 ​ ​

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Components of lease expense	The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three ​ For the nine ​ ​ months ended ​ months ended ​ ​ September 30, 2019 ​ September 30, 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 4,189 $ 14,472 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 80 $ 224 Interest on lease liabilities ​ ​ 8 ​ 23 Total ​ $ 88 ​ $ 247 ​ ​ ​ ​ ​ ​ ​
Schedule of supplemental cash flow information	Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ For the nine ​ ​ months ended ​ ​ September 30, 2019 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ Operating cash flows from operating leases ​ $ 13,661 Operating cash flows from finance leases ​ 23 Financing cash flows from finance leases ​ ​ 222 ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ Operating leases ​ ​ 2,410 Finance leases ​ ​ 40
Schedule of supplemental balance sheet information	Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ (in thousands, ​ ​ except lease term ​ ​ and discount rate) Operating Leases: ​ Operating lease ROU assets (Other non-current assets) ​ $ 25,795 ​ ​ ​ ​ Other current liabilities ​ $ 10,873 Other non-current liabilities ​ ​ 16,445 Total operating lease liabilities ​ $ 27,318 ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases: ​ ​ ​ Property and equipment, gross ​ $ 1,054 Accumulated depreciation ​ ​ (734) Property and equipment, net ​ $ 320 ​ ​ ​ ​ Other current liabilities ​ $ 241 Other non-current liabilities ​ ​ 90 Total finance lease liabilities ​ $ 331 ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ Operating leases ​ ​ 4 years Finance leases ​ ​ 1 year ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ Operating leases ​ ​ 4.32% 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 nine months ended September 30, 2019) $ 3,361 ​ 68 2020 ​ ​ 10,580 ​ ​ 218 2021 ​ 6,468 ​ 45 2022 ​ 2,178 ​ 6 2023 ​ ​ 2,090 ​ ​ — Thereafter ​ 4,703 ​ — Total lease payments ​ 29,380 ​ 337 Less imputed interest ​ ​ (2,062) ​ ​ (6) Total ​ $ 27,318 ​ 331
Schedule of maturities of finance leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ ​ Finance ​ ​ Leases ​ ​ Leases ​ ​ (in thousands) Year ended December 31, ​ ​ ​ ​ ​ ​ 2019 (excluding the nine months ended September 30, 2019) $ 3,361 ​ 68 2020 ​ ​ 10,580 ​ ​ 218 2021 ​ 6,468 ​ 45 2022 ​ 2,178 ​ 6 2023 ​ ​ 2,090 ​ ​ — Thereafter ​ 4,703 ​ — Total lease payments ​ 29,380 ​ 337 Less imputed interest ​ ​ (2,062) ​ ​ (6) Total ​ $ 27,318 ​ 331
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	Sep. 30, 2019USD ($)
Description of Business and Significant Accounting Policies
Assets under management	$ 68.8

New Accounting Guidance (Detail

New Accounting Guidance (Details)	Sep. 30, 2019
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue Recognition
Total Revenues	$ 270,680	$ 295,118	$ 800,244	$ 888,071
Investment management fees
Revenue Recognition
Total Revenues	111,806	129,302	334,438	393,385
Investment management fees - Funds
Revenue Recognition
Total Revenues	107,926	123,764	322,678	376,193
Investment management fees - Institutional
Revenue Recognition
Total Revenues	3,880	5,538	11,760	17,192
Underwriting and distribution fees
Revenue Recognition
Total Revenues	135,787	140,308	395,527	416,222
Unaffiliated
Revenue Recognition
Total Revenues	16,431	20,274	50,043	62,611
Unaffiliated Rule 12b-1 service and distribution fees
Revenue Recognition
Total Revenues	16,003	19,707	48,514	60,734
Unaffiliated sales commissions on front-end load mutual fund and variable annuity sales
Revenue Recognition
Total Revenues	361	441	1,287	1,418
Unaffiliated other revenues
Revenue Recognition
Total Revenues	67	126	242	459
Wealth Management
Revenue Recognition
Total Revenues	119,356	120,034	345,484	353,611
Wealth Management, Fee-based asset allocation product revenues
Revenue Recognition
Total Revenues	73,356	69,468	208,806	201,565
Wealth Management, Rule 12b-1 service and distribution fees
Revenue Recognition
Total Revenues	16,426	18,106	48,441	54,591
Wealth Management, sales commissions on front-end load mutual fund and variable annuity sales
Revenue Recognition
Total Revenues	12,523	13,651	36,845	41,900
Wealth Management, sales commissions on other products
Revenue Recognition
Total Revenues	8,024	9,111	24,127	26,632
Wealth Management, other revenues
Revenue Recognition
Total Revenues	9,027	9,698	27,265	28,923
Shareholder service fees
Revenue Recognition
Total Revenues	$ 23,087	$ 25,508	$ 70,279	$ 78,464

Investment Securities - Investm

Investment Securities - Investment securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available for sale securities:
Available for sale securities	$ 269,039	$ 250,764
Trading debt securities:
Trading debt securities	180,546	118,222
Equity securities:
Equity securities	206,744	200,309
Equity method securities:
Total investment securities	691,616	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	1,975	7,970
Trading debt securities:
Trading debt securities	1,975	1,993
Corporate bonds
Available for sale securities:
Available for sale securities	267,064	218,121
Trading debt securities:
Trading debt securities	89,057	77,250
U.S. treasury bills
Available for sale securities:
Available for sale securities		19,672
Trading debt securities:
Trading debt securities	5,968	5,884
Mortgage-backed securities
Trading debt securities:
Trading debt securities	5	7
Term loans
Trading debt securities:
Trading debt securities	42,272
Consolidated Sponsored Funds
Trading debt securities:
Trading debt securities	41,269	33,088
Equity securities:
Equity securities		24,879
Common Stock
Equity securities:
Equity securities	31,744	21,204
Sponsored funds
Equity securities:
Equity securities	174,219	153,548
Equity method securities:
Equity method securities	35,287	47,840
Sponsored privately offered funds
Equity securities:
Equity securities	$ 781	$ 678

Investment Securities - Maturit

Investment Securities - Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Amortized Cost
Within one year	$ 83,965
After one year but within five years	181,873
Amortized Cost	265,838	$ 251,810
Fair value
Within one year	84,173
After one year but within five years	184,866
Total fair value	269,039	$ 250,764
Fair value
Within one year	32,977
After one year but within five years	76,645
After five years but within 10 years	29,655
Total fair value	$ 139,277

Investment Securities - Inves_2

Investment Securities - Investment securities and summary of the gains (losses) related to securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available for sale securities:
Amortized Cost	$ 265,838	$ 251,810
Unrealized gains	3,240	323
Unrealized losses	(39)	(1,369)
Fair value	269,039	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	1,975	7,902
Unrealized gains		68
Fair value	1,975	7,970
Corporate bonds
Available for sale securities:
Amortized Cost	263,863	219,236
Unrealized gains	3,240	254
Unrealized losses	(39)	(1,369)
Fair value	$ 267,064	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	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)
Unrealized losses
Securities in an unrealized loss position | security	12
Corporate bonds
Fair value
Less than 12 months	$ 19,987	$ 36,302
12 months or longer	27,105	119,480
Total fair value	47,092	155,782
Unrealized losses
Less than 12 months	(19)	(160)
12 months or longer	(20)	(1,209)
Total unrealized losses	$ (39)	$ (1,369)

Investment Securities - Consoli

Investment Securities - Consolidated Sponsored Funds (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investment Securities
Cash	$ 162,567	$ 231,997
Redeemable noncontrolling interests	(16,913)	(11,463)
Consolidated Sponsored Funds
Investment Securities
Cash	5,161	4,285
Investments	41,269	57,967
Other assets	486	872
Other liabilities		(79)
Redeemable noncontrolling interests	(16,913)	(11,463)
Net interest in consolidated sponsored funds	$ 30,003	$ 51,582

Investment Securities - Fair va

Investment Securities - Fair value of investment securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair value of investments
Cash equivalents	$ 41,090	$ 196,931
Available for sale securities	269,039	250,764
Trading debt securities	180,546	118,222
Equity securities	206,744	200,309
Total investment securities	691,616	617,135
Money market funds
Fair value of investments
Cash equivalents	3,090	121,759
U.S. government sponsored enterprise note
Fair value of investments
Cash equivalents	896	895
Certificates of deposit
Fair value of investments
Available for sale securities		5,001
Commercial paper
Fair value of investments
Cash equivalents	37,104	74,277
Available for sale securities	1,975	7,970
Trading debt securities	1,975	1,993
Corporate bonds
Fair value of investments
Available for sale securities	267,064	218,121
Trading debt securities	89,057	77,250
U.S. treasury bills
Fair value of investments
Available for sale securities		19,672
Trading debt securities	5,968	5,884
Mortgage-backed securities
Fair value of investments
Trading debt securities	5	7
Term loans
Fair value of investments
Trading debt securities	42,272
Common Stock
Fair value of investments
Equity securities	31,744	21,204
Consolidated Sponsored Funds
Fair value of investments
Trading debt securities	41,269	33,088
Equity securities		24,879
Sponsored funds
Fair value of investments
Equity securities	174,219	153,548
Equity method securities	35,287	47,840
Sponsored privately offered funds
Fair value of investments
Equity securities	781	678
Level 1
Fair value of investments
Cash equivalents	3,090	121,759
Total investment securities	241,248	247,459
Level 1 | Money market funds
Fair value of investments
Cash equivalents	3,090	121,759
Level 1 | Common Stock
Fair value of investments
Equity securities	31,742	21,192
Level 1 | Consolidated Sponsored Funds
Fair value of investments
Equity securities		24,879
Level 1 | Sponsored funds
Fair value of investments
Equity securities	174,219	153,548
Equity method securities	35,287	47,840
Level 2
Fair value of investments
Cash equivalents	38,000	75,172
Total investment securities	448,192	368,986
Level 2 | U.S. government sponsored enterprise note
Fair value of investments
Cash equivalents	896	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	37,104	74,277
Available for sale securities	1,975	7,970
Trading debt securities	1,975	1,993
Level 2 | Corporate bonds
Fair value of investments
Available for sale securities	267,064	218,121
Trading debt securities	89,057	77,250
Level 2 | U.S. treasury bills
Fair value of investments
Available for sale securities		19,672
Trading debt securities	5,968	5,884
Level 2 | Mortgage-backed securities
Fair value of investments
Trading debt securities	5	7
Level 2 | Term loans
Fair value of investments
Trading debt securities	40,879
Level 2 | Consolidated Sponsored Funds
Fair value of investments
Trading debt securities	41,269	33,088
Level 3
Fair value of investments
Total investment securities	1,395	12
Level 3 | Term loans
Fair value of investments
Trading debt securities	1,393
Level 3 | Common Stock
Fair value of investments
Equity securities	2	12
Other Assets Held at Net Value
Fair value of investments
Total investment securities	781	678
Other Assets Held at Net Value | Sponsored privately offered funds
Fair value of investments
Equity securities	$ 781	$ 678

Investment Securities - Inves_3

Investment Securities - Investment category (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Level 3 assets at beginning of period	$ 12
Additions	2,357
Transfers out of level 3	(196)
Losses in Investment and other income	(23)
Redemptions/Paydowns	(755)
Level 3 assets at end of period	1,395
Change in unrealized losses for Level 3 assets held	$ (21)

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - Not designated as a hedge - Total return swap contracts $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)contract	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)contract	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)contract
Derivative Financial Instruments
Number of contracts | contract	14		14		5
Notional value	$ 222,100		$ 222,100		$ 194,400
Cash collateral with the counterparties	600		600		5,200
Level 2
Derivative Financial Instruments
Net total return swap (liability) asset	(314)		(314)		4,968
Investment and other income (loss) | Level 2
Derivative Financial Instruments
Net gains (losses) recognized in income	135	$ (6,769)	(25,728)	$ (7,313)
Prepaid expenses and other current assets | Level 2
Derivative Financial Instruments
Fair value - assets	153		153		$ 4,968
Other current liabilities | Level 2
Derivative Financial Instruments
Fair value - liabilities	$ 467		$ 467

Goodwill and Identifiable Int_3

Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 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	Sep. 30, 2019	Dec. 31, 2018
Indebtedness
Long-term debt	$ 94,908	$ 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	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Income Tax Uncertainties
Unrecognized tax benefits, including penalties and interest that if recognized would impact effective tax rate	$ 2,700	$ 2,700	$ 2,700
Unrecognized tax benefits, including penalties and interest, net of federal tax benefit that if recognized would affect effective tax rate	2,300	2,300	2,400
Unrecognized tax benefits, reduced	38	79
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
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	$ 1,537	$ 1,497	$ 4,610	$ 4,490
Expected return on plan assets	(1,579)	(2,065)	(4,736)	(6,196)
Total	(42)	(568)	$ (126)	(1,706)
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	9	14	$ 25	41
Actuarial gain amortization	(124)	(30)	(371)	(90)
Prior service cost amortization		(1)		(2)
Total	$ (115)	$ (17)	$ (346)	$ (51)

Stockholders' Equity - Earnings

Stockholders' Equity - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Components of basic and diluted earnings per share
Net income attributable to Waddell & Reed Financial, Inc.	$ 33,054	$ 46,305	$ 99,056	$ 137,120
Weighted average shares outstanding - basic and diluted	72,387,000	79,595,000	74,446,000	81,372,000
Earnings per share:
Earnings per share, basic and diluted (in dollars per share)	$ 0.46	$ 0.58	$ 1.33	$ 1.69
Dividends
Dividends declared (in dollars per share)	$ 0.25	$ 0.25	$ 0.75	$ 0.75
Dividends to be paid	$ 17,700		$ 17,700
Common stock repurchases
Shares repurchased in the open market or privately	2,480,019	1,424,612	6,849,238	4,519,546
Shares repurchased from employees to cover income tax withholdings	19	225	440,002	630,159

Stockholders' Equity - Accumula

Stockholders' Equity - Accumulated other comprehensive income (loss) activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	$ 856,656	$ 885,718	$ 883,450	$ 872,884
Balance at the end of the period	839,530	893,510	839,530	893,510
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	3,081	(1,332)	331	524
Amount reclassified to retained earnings for ASUs adopted in 2018				(848)
Other comprehensive income (loss) before reclassification	379	218	3,413	(744)
Amount reclassified from accumulated other comprehensive income (loss)	(177)	20	(461)	(26)
Net current period other comprehensive income (loss)	202	238	2,952	(1,618)
Balance at the end of the period	3,283	(1,094)	3,283	(1,094)
Unrealized gains (losses) on AFS investment securities
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	2,142	(1,772)	(797)	145
Amount reclassified to retained earnings for ASUs adopted in 2018				(955)
Other comprehensive income (loss) before reclassification	379	218	3,413	(744)
Amount reclassified from accumulated other comprehensive income (loss)	(83)	44	(178)	44
Net current period other comprehensive income (loss)	296	262	3,235	(1,655)
Balance at the end of the period	2,438	(1,510)	2,438	(1,510)
Postretirement benefits unrealized gains (losses)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	939	440	1,128	379
Amount reclassified to retained earnings for ASUs adopted in 2018				107
Amount reclassified from accumulated other comprehensive income (loss)	(94)	(24)	(283)	(70)
Net current period other comprehensive income (loss)	(94)	(24)	(283)	37
Balance at the end of the period	$ 845	$ 416	$ 845	$ 416

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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reclassifications included in net income:
Pre-tax	$ 233	$ (27)	$ 605	$ 1,329
Tax benefit (expense)	(56)	7	(144)	(455)
Net of tax	177	(20)	461	874
Sponsored funds investment losses | Retained earnings
Reclassifications included in net income:
Pre-tax				1,295
Tax benefit (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	109	(58)	234	(58)
Tax benefit (expense)	(26)	14	(56)	14
Net of tax	83	(44)	178	(44)
Postretirement benefits unrealized gains (losses) | Compensation and benefits
Reclassifications included in net income:
Pre-tax	124	31	371	92
Tax benefit (expense)	(30)	(7)	(88)	(129)
Net of tax	$ 94	$ 24	$ 283	$ (37)

Leases (Details)

Leases (Details)	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Components of lease expense
Operating Lease Cost	$ 4,189	$ 14,472
Amortization of ROU assets	80	224
Interest on lease liabilities	8	23
Total	$ 88	$ 247

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Leases
Operating cash flows from operating leases	$ 13,661
Operating cash flows from finance leases	23
Financing cash flows from finance leases	222
ROU assets obtained in exchange for lease obligations - Operating leases	2,410
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	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019
Leases
Operating lease ROU assets			$ 25,795
Financial position			us-gaap:OtherAssetsNoncurrent
Operating lease liabilities - current			$ 10,873
Financial position			us-gaap:OtherLiabilitiesCurrent
Operating lease liabilities - noncurrent			$ 16,445
Financial position			us-gaap:OtherLiabilitiesNoncurrent
Total Operating lease liabilities			$ 27,318
Financing Lease ROU assets			$ 320
Financial position			Property, Plant and Equipment, Net
Finance lease liabilities - current			$ 241
Financial position			us-gaap:OtherLiabilitiesCurrent
Finance lease liabilities - noncurrent			$ 90
Financial position			us-gaap:OtherLiabilitiesNoncurrent
Finance lease liabilities			$ 331
Weighted average remaining lease term - Operating leases			4 years
Weighted average remaining lease term - Financing leases			1 year
Weighted average discount rate - Operating leases			4.32%
Weighted average discount rate - Financing leases			6.00%
Rent expense before adoption	$ 5,800	$ 17,600
Finance lease assets
Leases
Property and equipment, gross			$ 1,054
Accumulated depreciation			$ (734)

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	Sep. 30, 2019USD ($)
Operating Leases maturities:
2019 (excluding the nine months ended September 30, 2019)	$ 3,361
2020	10,580
2021	6,468
2022	2,178
2023	2,090
Thereafter	4,703
Total lease payments	29,380
Less imputed interest	(2,062)
Total	27,318
Finance Leases maturities:
2019 (excluding nine months ended September 30, 2019)	68
2020	218
2021	45
2022	6
Total lease payments	337
Less imputed interest	(6)
Total	$ 331

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