Waddell & Reed Financial (WDR) 10-Q 1 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 24, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2020
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		65,622,663
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001052100
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets:
Cash and cash equivalents	$ 160,316	$ 151,815
Cash and cash equivalents - restricted	53,423	74,325
Investment securities	605,780	688,346
Receivables:
Funds and separate accounts	12,144	15,167
Customers and other	59,487	80,089
Prepaid expenses and other current assets	43,129	31,655
Total current assets	934,279	1,041,397
Property and equipment, net	33,017	34,726
Goodwill and identifiable intangible assets	145,869	145,869
Deferred income taxes	27,267	14,418
Other non-current assets	27,321	29,918
Total assets	1,167,753	1,266,328
Liabilities:
Accounts payable	38,414	20,123
Payable to investment companies for securities	19,669	36,883
Payable to third party brokers	15,991	17,123
Payable to customers	72,009	84,558
Short-term notes payable	94,944
Accrued compensation	41,738	79,507
Other current liabilities	70,982	71,001
Total current liabilities	353,747	309,195
Long-term debt		94,926
Accrued pension and postretirement costs	3,343	3,145
Other non-current liabilities	25,935	30,960
Total liabilities	383,025	438,226
Redeemable noncontrolling interests	19,070	19,205
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; 66,655 shares outstanding (68,847 at December 31, 2019)	997	997
Additional paid-in capital	282,401	312,693
Retained earnings	1,247,084	1,241,598
Cost of 33,046 common shares in treasury (30,854 at December 31, 2019)	(765,579)	(749,625)
Accumulated other comprehensive income	755	3,234
Total stockholders' equity	765,658	808,897
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$ 1,167,753	$ 1,266,328

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2020	Dec. 31, 2019
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	66,655	68,847
Common shares in treasury	33,046	30,854

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Total Revenues	$ 263,733	$ 259,410
Operating expenses:
Distribution	120,033	109,794
Compensation and benefits (including share-based compensation of $9,983 and $12,693, respectively)	58,425	64,843
General and administrative	18,598	14,704
Technology	13,502	16,308
Occupancy	4,709	6,715
Marketing and advertising	1,896	1,964
Depreciation	3,513	6,001
Subadvisory fees	3,666	3,557
Total	224,342	223,886
Operating income	39,391	35,524
Investment and other (loss) income	(7,745)	9,453
Interest expense	(1,549)	(1,548)
Income before provision for income taxes	30,097	43,429
Provision for income taxes	9,633	10,671
Net income	20,464	32,758
Net (loss) income attributable to redeemable noncontrolling interests	(1,522)	705
Net income attributable to Waddell & Reed Financial, Inc.	$ 21,986	$ 32,053
Net income per share attributable to Waddell and Reed Financial, Inc. common shareholders, basic and diluted:	$ 0.32	$ 0.42
Weighted average shares outstanding, basic and diluted:	67,675	76,299
Investment management fees
Revenues:
Total Revenues	$ 105,219	$ 109,762
Underwriting and distribution fees
Revenues:
Total Revenues	136,943	126,245
Shareholder service fees
Revenues:
Total Revenues	$ 21,571	$ 23,403

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Income
Compensation and benefits, share-based compensation	$ 9,983	$ 12,693

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 20,464	$ 32,758
Other comprehensive income:
Unrealized (loss) gain on available for sale investment securities during the period, net of income tax (benefit) expense of $(760) and $517, respectively	(2,430)	1,658
Postretirement benefit, net of income tax benefit of $(18) and $(30), respectively	(49)	(94)
Comprehensive income	17,985	34,322
Comprehensive (loss) income attributable to redeemable noncontrolling interests	(1,522)	705
Comprehensive income attributable to Waddell & Reed Financial, Inc.	$ 19,507	$ 33,617

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Comprehensive Income
Unrealized (loss) gain on available for sale investment securities during the period, income tax expense (benefit)	$ (760)	$ 517
Postretirement benefit, income tax (benefit) expense	$ (18)	$ (30)

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
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)			32,053			32,053
Recognition of equity compensation		9,608	93			9,701
Net issuance/forfeiture of nonvested shares		(30,000)		30,000
Dividends accrued			(19,025)			(19,025)
Repurchase of common stock				(39,139)		(39,139)
Other comprehensive income (loss)					1,564	1,564
Balance at the end of the period at Mar. 31, 2019	$ 997	290,872	1,211,566	(636,726)	1,895	868,604
Balance (in shares) at Mar. 31, 2019	99,701
Balance at the beginning of the period at Dec. 31, 2018						11,463
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						705
Net subscription of redeemable noncontrolling interests in sponsored funds						768
Balance at the end of the period at Mar. 31, 2019						12,936
Balance at the beginning of the period at Dec. 31, 2019	$ 997	312,693	1,241,598	(749,625)	3,234	808,897
Balance (in shares) at Dec. 31, 2019	99,701
Increase (Decrease) in Stockholders' Equity
Net income (loss)			21,986			21,986
Recognition of equity compensation		7,693	71			7,764
Net issuance/forfeiture of nonvested shares		(37,985)		37,985
Dividends accrued			(16,571)			(16,571)
Repurchase of common stock				(53,939)		(53,939)
Other comprehensive income (loss)					(2,479)	(2,479)
Balance at the end of the period at Mar. 31, 2020	$ 997	$ 282,401	$ 1,247,084	$ (765,579)	$ 755	765,658
Balance (in shares) at Mar. 31, 2020	99,701
Balance at the beginning of the period at Dec. 31, 2019						19,205
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income (loss)						(1,522)
Net subscription of redeemable noncontrolling interests in sponsored funds						1,387
Balance at the end of the period at Mar. 31, 2020						$ 19,070

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests
Dividends accrued (in dollars per share)	$ 0.25	$ 0.25

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 20,464	$ 32,758
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	3,168	6,208
Amortization of deferred sales commissions	395	551
Share-based compensation	9,983	12,693
Investments and derivatives loss (gain), net of collateral	50,012	(16,481)
Net purchases, maturities, and sales of trading and equity securities	(2,144)	(2,233)
Deferred income taxes	(12,071)	5,914
Net change in equity securities and trading debt securities held by consolidated sponsored funds	1,326	(5,081)
Other	212	(56)
Changes in assets and liabilities:
Customer and other receivables	6,804	77,039
Payable to investment companies for securities and payable to customers	(29,763)	(115,675)
Receivables from funds and separate accounts	3,023	(1,018)
Other assets	3,214	4,193
Accounts payable and payable to third party brokers	(3,219)	(3,466)
Other liabilities	(22,128)	(12,843)
Net cash provided by (used in) operating activities	29,276	(17,497)
Cash flows from investing activities:
Purchases of available for sale and equity method securities	(2,999)	(70,501)
Proceeds from sales of available for sale and equity method securities		19,667
Proceeds from maturities of available for sale securities	33,875	38,375
Additions to property and equipment	(3,182)	(1,474)
Net cash provided by (used in) investing activities	27,694	(13,933)
Cash flows from financing activities:
Dividends paid	(17,119)	(19,348)
Repurchase of common stock	(53,599)	(40,871)
Net subscriptions (redemptions, distributions and deconsolidations) of redeemable noncontrolling interests in sponsored funds	1,387	768
Other	(40)	(62)
Net cash used in financing activities	(69,371)	(59,513)
Net decrease in cash, cash equivalents and restricted cash	(12,401)	(90,943)
Cash, cash equivalents, and restricted cash at beginning of period	226,140	291,555
Cash, cash equivalents, and restricted cash at end of period	$ 213,739	$ 200,612

Description of Business and Sig

Description of Business and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
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”) (collectively, Ivy Funds, Ivy VIP, InvestEd and IVH are referred to as the “Funds”). In addition to the Funds, our assets under management (“AUM”) include institutional managed accounts. As of March 31, 2020, we had $56.0 billion in AUM. 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. The Company is proactively managing business continuity and safety considerations as circumstances of the coronavirus disease 2019 (“COVID-19’) evolve. Our leadership team’s priority is on ensuring the health and safety of all employees, clients, Advisors and communities, while also ensuring full continuity of service and access. The Company started transitioning to a work from home environment early in March 2020 and has been following the Centers for Disease Control and Prevention and local authorities’ recommendations on safe practices throughout this process. We have undertaken a number of steps to facilitate safety, security and full continuity of service, including: ● We activated an Enterprise Preparedness Team and COVID-19 steering committee that meets regularly to assess developments and determine the best action to ensure business continuity and the safety of our employees and partners. ● We have adopted interim business practices, including restricting business travel, requiring all meetings to take place via remote access tools, adopting safety protocols to limit the potential for exposure, adopting social distancing practices, implementing a clearly-defined approval process for reentry to any worksite, advising personnel on preventive measures and offering remote collaboration and productivity tools and training resources to our employees. ● We enhanced monitoring and capabilities of our systems to allow our remote workforce to function efficiently and have continued our educational and monitoring practices to ensure there are no compromises to confidentiality, privacy and cybersecurity requirements. ● The Ivy investment management and distribution teams transitioned seamlessly to remote working. Our teams have a strong heritage of active collaboration which has migrated to a virtual environment without compromise. ​ ● Within our wealth management business, the majority of independent advisors are working from temporary locations. We are demonstrating our differentiated service and support model by continuing regular communications with Advisors as well as delivering additional advisor and client focused resources. ​ ● We have not initiated any layoffs, furloughs or reduced hours. As we implemented our business continuity plans, we have intentionally maintained the same pay practices for all of our employees based upon their regular work schedule, paid spot bonuses to certain employees, implemented a temporary hourly wage increase to designated client services personnel, increased certain benefit coverages for specific COVID-19 related treatments through May, and are increasing our philanthropic contributions to local organizations to help support the COVID-19 responses in our community. ​ 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, 2019 (our “2019 Form 10-K”). Certain amounts in the prior year’s financial statements have been reclassified for consistent presentation. Derivative activity was reclassified within operating activities on our consolidated statements of cash flows to provide a comprehensive view of the impact of the economic hedge program for our seed investment portfolio. ​ 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 2019 Form 10-K with the exception of the adoption of Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment 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 ​ 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 March 31, 2020 and the results of operations and cash flows for the three months ended March 31, 2020 and 2019 in conformity with accounting principles generally accepted in the United States. ​ Assets Held for Sale ​ Assets held for sale included real property related to our corporate headquarters move and aviation equipment. As of March 31, 2020 and December 31, 2019, $3.1 million of equipment, $3.8 million of buildings and $1.9 million of land were included in Property and equipment, net on our consolidated balance sheets. The Company intends to actively pursue sale of these assets at market prices as soon as reasonably possible. ​

New Accounting Guidance

New Accounting Guidance	3 Months Ended
	Mar. 31, 2020
New Accounting Guidance
New Accounting Guidance	2. New Accounting Guidance ​ Accounting Guidance Adopted During the First Quarter of 2020 ​ On January 1, 2020, the Company adopted ASU 2016-13 , Measurement of Credit Losses on Financial Instruments. The ASU changes the impairment model for most financial assets and requires the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The adoption of this ASU had an immaterial impact on our consolidated financial statements and related disclosures. ​ On January 1, 2020, the Company adopted ASU 2017-04 , Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment. This ASU eliminates the second step from the goodwill impairment test. An entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss cannot exceed the total amount of goodwill allocated to the reporting unit. The adoption of this ASU had an immaterial impact on our consolidated financial statements and related disclosures. ​ On January 1, 2020, the Company adopted ASU 2018-15 , Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the provisions of this guidance using the prospective adoption approach, which does not require the restatement of prior years. The adoption of this ASU did not have a material impact on our operating income or net income as requirements under the standard are generally consistent with our current accounting for cloud computing arrangements, with the primary difference being the classification of certain information in our consolidated financial statements and related disclosures. As of March 31, 2020, the Company had $2.6 million of capitalized implementation costs for hosting arrangements with $23 thousand of accumulated amortization in prepaid and other current assets on the consolidated balance sheet. Our hosting arrangements that are service contracts include internal and external costs related to various technology additions in support of both our asset management and wealth management business. Amortization costs are recorded on a straight-line basis over the term of the hosting arrangement agreement. ​ Accounting Guidance Not Yet Adopted ​ In December 2019, FASB issued ASU 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies and improves the consistent application of the accounting for income taxes by removing certain exceptions to general principles and by clarifying and amending existing guidance. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We are evaluating the impact the adoption of this ASU will have on our consolidated financial statements and related disclosures. ​

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2020
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 ​ ​ ​ ​ ​ (in thousands) ​ ​ Investment management fees: ​ ​ ​ Funds ​ $ 102,293 105,745 ​ Institutional ​ 2,926 4,017 ​ Total investment management fees ​ $ 105,219 109,762 ​ Underwriting and distribution fees: ​ ​ ​ ​ ​ ​ ​ Unaffiliated ​ ​ ​ ​ ​ ​ ​ Rule 12b-1 service and distribution fees ​ $ 15,276 ​ 16,465 ​ ​ Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 451 ​ 443 ​ ​ Other revenues ​ ​ 135 ​ 92 ​ ​ Total unaffiliated distribution fees ​ $ 15,862 ​ 17,000 ​ ​ Wealth Management ​ ​ ​ ​ ​ ​ ​ Fee-based asset allocation product revenues ​ $ 77,118 ​ 65,230 ​ ​ Rule 12b-1 service and distribution fees ​ ​ 14,589 ​ 15,405 ​ ​ Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 11,958 ​ 12,015 ​ ​ Sales commissions on other products ​ ​ 8,699 ​ 7,606 ​ ​ Other revenues ​ ​ 8,717 ​ 8,989 ​ ​ Total wealth management distribution fees ​ ​ 121,081 ​ 109,245 ​ ​ Total distribution fees ​ $ 136,943 ​ 126,245 ​ ​ Shareholder service fees: ​ ​ ​ ​ ​ ​ ​ Total shareholder service fees ​ $ 21,571 23,403 ​ ​ ​ ​ ​ ​ Total revenues ​ $ 263,733 259,410 ​ ​

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2020
Investment Securities
Investment Securities	4. Investment Securities ​ Investment securities at March 31, 2020 and December 31, 2019 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2020 2019 ​ ​ ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 1,977 ​ Corporate bonds ​ ​ 222,478 ​ 254,291 ​ Total available for sale securities ​ 222,478 ​ 256,268 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 9,573 ​ 1,977 ​ Corporate bonds ​ 77,325 ​ 84,920 ​ U.S. Treasury bills ​ ​ 6,022 ​ 5,979 ​ Mortgage-backed securities ​ 3 ​ 4 ​ Term loans ​ ​ 37,220 ​ 44,268 ​ Consolidated sponsored funds ​ 42,241 ​ 43,567 ​ Total trading securities ​ 172,384 ​ 180,715 ​ Equity securities: ​ ​ ​ ​ ​ ​ Common stock ​ 30,528 ​ 34,945 ​ Sponsored funds ​ ​ 148,683 ​ 178,386 ​ Sponsored privately offered funds ​ 668 ​ 845 ​ Total equity securities ​ ​ 179,879 ​ 214,176 ​ Equity method securities: ​ ​ ​ ​ ​ ​ Sponsored funds ​ 31,039 ​ 37,187 ​ Total securities ​ $ 605,780 ​ 688,346 ​ ​ Corporate bonds accounted for as available for sale and held as of March 31, 2020 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost Fair value ​ (in thousands) Within one year $ 63,347 ​ 63,292 After one year but within five years ​ 159,011 ​ 159,186 ​ $ 222,358 ​ 222,478 ​ Commercial paper, corporate bonds, U.S. Treasury bills, mortgage-backed securities and term loans accounted for as trading and held as of March 31, 2020 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ ​ ​ (in thousands) Within one year ​ ​ $ 35,102 After one year but within five years ​ ​ ​ 70,350 After five years but within 10 years ​ ​ ​ 24,691 ​ ​ ​ $ 130,143 ​ The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at March 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds ​ $ 222,358 1,505 ​ (1,385) 222,478 ​ ​ The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 1,976 ​ 1 ​ — ​ 1,977 ​ Corporate bonds ​ ​ 250,982 3,314 ​ (5) 254,291 ​ ​ ​ $ 252,958 3,315 (5) 256,268 ​ ​ A summary of available for sale investment securities with fair values below carrying values at March 31, 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or longer ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ Fair value losses Fair value losses Fair value losses ​ ​ (in thousands) Corporate bonds ​ $ 93,046 ​ (1,385) ​ — ​ — ​ 93,046 ​ (1,385) ​ A summary of available for sale investment securities with fair values below carrying values at December 31, 2019 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or longer ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ Fair value losses Fair value losses Fair value losses ​ ​ (in thousands) Corporate bonds ​ $ 4,538 ​ — ​ 8,056 ​ (5) ​ 12,594 ​ (5) ​ ​ The Company’s investment portfolio included 24 available for sale securities in an unrealized loss position at March 31, 2020. ​ The Company evaluated available for sale securities in an unrealized loss position at March 31, 2020, including reviewing credit ratings, assessing the extent of losses, and considering the impact of market conditions for each individual security. The Company concluded no allowance for credit losses was necessary as it expects to recover the entire amortized cost basis of each security. 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. ​ For equity securities held at the end of the period, net unrealized losses of $35.9 million and net unrealized gains of $13.1 million were recognized for the three months ended March 31, 2020 and March 31, 2019, respectively. ​ Sponsored Funds ​ The Company has classified its equity investments in the 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 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 March 31, 2020 and December 31, 2019, as well as the Company’s net interest in these funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ ​ 2020 ​ 2019 ​ (in thousands) Cash $ 765 ​ ​ 1,530 Investments ​ 42,241 ​ 43,567 Other assets ​ 1,107 ​ 483 Other liabilities ​ (793) ​ — Redeemable noncontrolling interests ​ (19,070) ​ (19,205) Net interest in consolidated sponsored funds $ 24,250 ​ ​ 26,375 ​ During the three months ended March 31, 2020, we consolidated one Ivy Fund in which we provided initial seed capital at the time of the fund’s formation. 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 March 31, 2020 and December 31, 2019 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 7,759 ​ — ​ — ​ — ​ 7,759 ​ Commercial paper ​ ​ — ​ 19,159 ​ — ​ — ​ 19,159 ​ Total cash equivalents ​ $ 7,759 ​ 19,159 ​ — ​ — ​ 26,918 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds ​ $ — ​ 222,478 ​ — ​ — ​ 222,478 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 9,573 ​ — ​ — ​ 9,573 ​ Corporate bonds ​ ​ — ​ 77,325 ​ — ​ ​ ​ 77,325 ​ U.S. Treasury bills ​ ​ — ​ 6,022 ​ — ​ — ​ 6,022 ​ Mortgage-backed securities ​ — 3 — — ​ 3 ​ Term loans ​ — 29,090 8,130 — ​ 37,220 ​ Consolidated sponsored funds ​ — 42,241 — — ​ 42,241 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ 30,528 ​ — ​ — ​ — ​ 30,528 ​ Sponsored funds ​ ​ 148,683 ​ — ​ — ​ — ​ 148,683 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 668 ​ 668 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 31,039 ​ — ​ — ​ — ​ 31,039 ​ Total investment securities ​ $ 210,250 ​ 386,732 ​ 8,130 ​ 668 ​ 605,780 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 4,203 ​ — ​ — ​ — ​ 4,203 ​ Commercial paper ​ ​ — ​ 38,143 ​ — ​ — ​ 38,143 ​ Total cash equivalents ​ $ 4,203 ​ 38,143 ​ — ​ — ​ 42,346 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 1,977 ​ — ​ — ​ 1,977 ​ Corporate bonds ​ ​ — ​ 254,291 ​ — ​ — ​ 254,291 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 1,977 ​ — ​ — ​ 1,977 ​ Corporate bonds ​ ​ — ​ 84,920 ​ — ​ ​ ​ 84,920 ​ U.S. Treasury bills ​ ​ — ​ 5,979 ​ — ​ — ​ 5,979 ​ Mortgage-backed securities ​ — 4 — — ​ 4 ​ Term Loans ​ ​ — ​ 40,368 ​ 3,900 ​ — ​ 44,268 ​ Consolidated sponsored funds ​ ​ — ​ 43,567 ​ — ​ — ​ 43,567 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ 34,942 — 3 — ​ 34,945 ​ Sponsored funds ​ 178,386 — — — ​ 178,386 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 845 ​ 845 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 37,187 ​ — ​ — ​ — ​ 37,187 ​ Total investment securities ​ $ 250,515 ​ 433,083 ​ 3,903 ​ 845 ​ 688,346 ​ ​ (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) 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 three months ended March 31, 2020: ​ ​ ​ ​ ​ ​ For the three months ended ​ ​ March 31, 2020 ​ ​ (in thousands) Level 3 assets at December 31, 2019 ​ $ 3,903 Additions ​ 6,020 Transfers in to level 3 ​ ​ 7,371 Transfers out of level 3 ​ ​ (5,630) Losses in Investment and other income ​ (932) Redemptions/Paydowns ​ ​ (2,602) Level 3 assets at March 31, 2020 ​ $ 8,130 ​ ​ ​ ​ Change in unrealized losses for Level 3 assets held at ​ $ (158) ​

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2020
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. ​ The Company was party to 17 total return swap contracts with a combined notional value of $223.2 million and 14 total return swap contracts with a combined notional value of $228.2 million as of March 31, 2020 and December 31, 2019, 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 (loss) income in the Company’s consolidated statements of income. ​ The counterparties of the total return swap contracts posted $20.4 million in cash collateral with the Company as of March 31, 2020, which is included in accounts payable in the Company’s consolidated balance sheet. The Company posted $3.7 million in cash collateral with the counterparties of the total return swap contracts as of December 31, 2019, which ​ The following table presents the fair value of the derivative financial instruments as of March 31, 2020 and December 31, 2019 and is calculated based on Level 2 inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2020 ​ ​ 2019 ​ location Fair value Fair value ​ ​ ​ (in thousands) Total return swap contracts Prepaid expenses and other current assets ​ $ 20,240 ​ ​ — Total return swap contracts ​ Other current liabilities ​ ​ — ​ ​ 3,990 Net total return swap asset (liability) ​ ​ $ 20,240 ​ ​ (3,990) ​ The following is a summary of net gains (losses) recognized in income for the three months ended March 31, 2020 and March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ Income statement ​ March 31, ​ location ​ 2020 ​ 2019 ​ ​ ​ (in thousands) Total return swap contracts Investment and other (loss) income $ 42,069 ​ (20,622) ​

Goodwill and Identifiable Intan

Goodwill and Identifiable Intangible Assets	3 Months Ended
	Mar. 31, 2020
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. The Company performs an annual goodwill impairment assessment during the second quarter of each year. Given the impacts of COVID-19, the Company also performed an interim goodwill impairment assessment in accordance with ASU 2017-04. Goodwill and identifiable intangible assets (all considered indefinite lived) at March 31, 2020 and December 31, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2020 ​ 2019 ​ ​ ​ (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	3 Months Ended
	Mar. 31, 2020
Indebtedness
Indebtedness	7. Indebtedness ​ Debt is reported at its carrying amount in the consolidated balance sheets. The fair value, calculated based on Level 2 inputs, of the Company’s senior unsecured notes maturing January 13, 2021 was $96.8 million at March 31, 2020 compared to the carrying value net of debt issuance costs of $94.9 million, which is listed under short-term notes payable in the consolidated balance sheet. ​

Income Tax Uncertainties

Income Tax Uncertainties	3 Months Ended
	Mar. 31, 2020
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 other current liabilities; 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 March 31, 2020 and December 31, 2019, the Company’s consolidated balance sheets included unrecognized tax benefits, including penalties and interest, of $2.0 million ($1.8 million net of federal benefit) and $2.0 million ($1.7 million net of federal benefit), respectively, that if recognized, would impact the Company’s effective tax rate. ​ 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. ​ Our 2016-2019 federal income tax returns are open tax years that remain subject to potential future audit. Our state income tax returns for all years after 2015 and, in certain states, income tax returns for 2015, 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	3 Months Ended
	Mar. 31, 2020
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 (“Compensation Committee”) 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 Compensation Committee approved the termination of the Pension Plan, effective June 1, 2019, and the Company intends to terminate the Pension Plan in a standard termination, as defined by the Pension Benefit Guaranty Corporation. The Company is currently performing the administrative actions required to carry out the termination, with an expected completion date in 2020. ​ We also sponsor an unfunded defined benefit postretirement medical plan that previously covered substantially all employees, as well as Advisors. The medical plan is contributory with participant contributions adjusted annually. The medical plan does not provide for benefits after age 65 with the exception of a small group of employees that were grandfathered when this plan was established. During the third quarter of 2016, the Company amended this plan to discontinue the availability of coverage for any individuals who retire after December 31, 2016. ​ The components of net periodic pension costs and other postretirement costs related to these plans are reflected in the table below. Net periodic pension costs are recorded in investment and other (loss) income on the Company’s consolidated statements of income. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Pension Benefits ​ Postretirement Benefits ​ ​ ​ Three months ended March 31, ​ ​ Three months ended March 31, ​ ​ ​ 2020 ​ 2019 ​ ​ 2020 ​ 2019 ​ ​ ​ ​ (in thousands) ​ Components of net periodic benefit cost: ​ ​ ​ ​ ​ ​ Interest cost ​ $ 1,316 1,528 $ 4 8 ​ Expected return on plan assets ​ (1,122) (1,590) — — ​ Actuarial gain amortization ​ — — (67) (124) ​ Prior service credit amortization ​ — — — — ​ Total ​ $ 194 ​ (62) ​ $ (63) ​ (116) ​ ​

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
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 ​ ​ ​ March 31, ​ ​ ​ 2020 ​ 2019 ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to Waddell & Reed Financial, Inc. $ 21,986 32,053 ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding, basic and diluted ​ 67,675 ​ 76,299 ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share, basic and diluted ​ $ 0.32 ​ 0.42 ​ ​ 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 May 1, 2020 payment date and an April 10, 2020 record date. The total dividend paid on May 1, 2020 was $16.5 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 3,807,438 shares and 2,226,325 shares repurchased in the open market or privately during the three months ended March 31, 2020 and 2019, respectively, which includes 231,393 shares and 149,073 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 months ended March 31, 2020 and March 31, 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) on ​ benefits ​ other ​ ​ AFS investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at December 31, 2019 $ 2,521 713 3,234 Other comprehensive loss before reclassification (2,228) ​ — (2,228) Amount reclassified from accumulated other comprehensive income (loss) (202) ​ (49) (251) Net current period other comprehensive loss (2,430) ​ (49) (2,479) Balance at March 31, 2020 ​ $ 91 664 755 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2018 $ (797) 1,128 331 Other comprehensive income before reclassification 1,753 — 1,753 Amount reclassified from accumulated other comprehensive income (loss) (95) (94) (189) Net current period other comprehensive income (loss) 1,658 ​ (94) 1,564 Balance at March 31, 2019 ​ $ 861 1,034 1,895 ​ ​ 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 March 31, 2020 ​ 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 ​ $ 266 (64) ​ 202 Investment and other (loss) income Amortization of postretirement benefits ​ ​ 67 (18) 49 Compensation and benefits Total ​ $ 333 (82) 251 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the three months ended March 31, 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 ​ $ 125 (30) ​ 95 Investment and other (loss) income Amortization of postretirement benefits ​ ​ 124 (30) 94 Compensation and benefits Total ​ $ 249 (60) 189 ​ ​ ​

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases
Leases	11. 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 six 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, Leases ). Operating lease assets and liabilities are included in other non-current assets, other current liabilities, and other non-current liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, net, other current liabilities, and other non-current liabilities in our consolidated balance sheets. ​ Right-of-use (“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, Leases , Leases ​ During January 2020, we signed a fifteen-year lease, which we expect to commence during 2022, relating to the development of a new 260,000 square foot innovative, distinctive and sustainably-designed corporate headquarters building in the heart of downtown Kansas City, Missouri. The lease will be recognized in the Company’s consolidated financial statements during the period that includes the lease’s commencement date. ​ The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 3,233 $ 5,318 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 55 $ 83 Interest on lease liabilities ​ ​ 9 ​ 8 Total ​ $ 64 ​ $ 91 ​ ​ ​ ​ ​ ​ ​ ​ Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ Operating cash flows from operating leases ​ $ 3,143 $ 5,238 Operating cash flows from finance leases ​ 9 8 Financing cash flows from finance leases ​ ​ 58 ​ ​ 80 ​ ​ ​ ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 7 ​ ​ — Finance leases ​ ​ — ​ ​ 40 ​ Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 ​ December 31, 2019 ​ ​ (in thousands, except lease term and discount rate) Operating Leases: ​ ​ Operating lease ROU assets (Other non-current assets) ​ $ 20,478 $ 23,457 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 9,561 ​ $ 10,479 Other non-current liabilities ​ ​ 12,726 ​ ​ 14,694 Total operating lease liabilities ​ $ 22,287 ​ $ 25,173 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases: ​ ​ ​ ​ ​ ​ Property and equipment, gross ​ $ 861 ​ $ 985 Accumulated depreciation ​ ​ (676) ​ ​ (737) Property and equipment, net ​ $ 185 ​ $ 248 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 152 ​ $ 203 Other non-current liabilities ​ ​ 36 ​ ​ 55 Total finance lease liabilities ​ $ 188 ​ $ 258 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 4 years ​ ​ 4 years Finance leases ​ ​ 1 year ​ ​ 1 year ​ ​ ​ ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 4.28% ​ ​ 4.32% Finance leases ​ ​ 6.00% ​ ​ 6.00% ​ Maturities of lease liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ ​ Finance ​ ​ Leases ​ ​ Leases ​ ​ (in thousands) Year ended December 31, ​ ​ ​ ​ ​ ​ 2020 (excluding the three months ended March 31, 2020) $ 8,189 ​ 140 2021 ​ ​ 6,696 ​ ​ 43 2022 ​ 2,465 ​ 6 2023 ​ 2,122 ​ — 2024 ​ ​ 2,090 ​ ​ — Thereafter ​ 2,613 ​ — Total lease payments ​ 24,175 ​ 189 Less imputed interest ​ ​ (1,888) ​ ​ (1) Total ​ $ 22,287 ​ 188 ​

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2020
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.” third parties, but undiscounted receivables from insurers or other third parties may be accrued separately. The Company regularly revises such accruals in light of new information. The Company discloses the nature of the contingency when management believes it is reasonably possible the outcome may be significant to the Company’s consolidated financial statements and, where feasible, an estimate of the possible loss. For purposes of our litigation contingency disclosures, “significant” includes material matters as well as other items that management believes should be disclosed. Management’s judgment is required related to contingent liabilities because the outcomes are difficult to predict. ​

Description of Business and S_2

Description of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
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, 2019 (our “2019 Form 10-K”). Certain amounts in the prior year’s financial statements have been reclassified for consistent presentation. Derivative activity was reclassified within operating activities on our consolidated statements of cash flows to provide a comprehensive view of the impact of the economic hedge program for our seed investment portfolio. ​ 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 2019 Form 10-K with the exception of the adoption of Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment 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 ​ 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 March 31, 2020 and the results of operations and cash flows for the three months ended March 31, 2020 and 2019 in conformity with accounting principles generally accepted in the United States.
Assets Held for Sale	Assets Held for Sale ​ Assets held for sale included real property related to our corporate headquarters move and aviation equipment. As of March 31, 2020 and December 31, 2019, $3.1 million of equipment, $3.8 million of buildings and $1.9 million of land were included in Property and equipment, net on our consolidated balance sheets. The Company intends to actively pursue sale of these assets at market prices as soon as reasonably possible.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2020
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 ​ ​ ​ ​ ​ (in thousands) ​ ​ Investment management fees: ​ ​ ​ Funds ​ $ 102,293 105,745 ​ Institutional ​ 2,926 4,017 ​ Total investment management fees ​ $ 105,219 109,762 ​ Underwriting and distribution fees: ​ ​ ​ ​ ​ ​ ​ Unaffiliated ​ ​ ​ ​ ​ ​ ​ Rule 12b-1 service and distribution fees ​ $ 15,276 ​ 16,465 ​ ​ Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 451 ​ 443 ​ ​ Other revenues ​ ​ 135 ​ 92 ​ ​ Total unaffiliated distribution fees ​ $ 15,862 ​ 17,000 ​ ​ Wealth Management ​ ​ ​ ​ ​ ​ ​ Fee-based asset allocation product revenues ​ $ 77,118 ​ 65,230 ​ ​ Rule 12b-1 service and distribution fees ​ ​ 14,589 ​ 15,405 ​ ​ Sales commissions on front-end load mutual fund and variable annuity sales ​ ​ 11,958 ​ 12,015 ​ ​ Sales commissions on other products ​ ​ 8,699 ​ 7,606 ​ ​ Other revenues ​ ​ 8,717 ​ 8,989 ​ ​ Total wealth management distribution fees ​ ​ 121,081 ​ 109,245 ​ ​ Total distribution fees ​ $ 136,943 ​ 126,245 ​ ​ Shareholder service fees: ​ ​ ​ ​ ​ ​ ​ Total shareholder service fees ​ $ 21,571 23,403 ​ ​ ​ ​ ​ ​ Total revenues ​ $ 263,733 259,410 ​

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2020
Investment Securities
Schedule of investment securities	Investment securities at March 31, 2020 and December 31, 2019 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2020 2019 ​ ​ ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 1,977 ​ Corporate bonds ​ ​ 222,478 ​ 254,291 ​ Total available for sale securities ​ 222,478 ​ 256,268 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 9,573 ​ 1,977 ​ Corporate bonds ​ 77,325 ​ 84,920 ​ U.S. Treasury bills ​ ​ 6,022 ​ 5,979 ​ Mortgage-backed securities ​ 3 ​ 4 ​ Term loans ​ ​ 37,220 ​ 44,268 ​ Consolidated sponsored funds ​ 42,241 ​ 43,567 ​ Total trading securities ​ 172,384 ​ 180,715 ​ Equity securities: ​ ​ ​ ​ ​ ​ Common stock ​ 30,528 ​ 34,945 ​ Sponsored funds ​ ​ 148,683 ​ 178,386 ​ Sponsored privately offered funds ​ 668 ​ 845 ​ Total equity securities ​ ​ 179,879 ​ 214,176 ​ Equity method securities: ​ ​ ​ ​ ​ ​ Sponsored funds ​ 31,039 ​ 37,187 ​ Total securities ​ $ 605,780 ​ 688,346 ​
Summary of maturities of securities held	Corporate bonds accounted for as available for sale and held as of March 31, 2020 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost Fair value ​ (in thousands) Within one year $ 63,347 ​ 63,292 After one year but within five years ​ 159,011 ​ 159,186 ​ $ 222,358 ​ 222,478 ​ Commercial paper, corporate bonds, U.S. Treasury bills, mortgage-backed securities and term loans accounted for as trading and held as of March 31, 2020 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ ​ ​ (in thousands) Within one year ​ ​ $ 35,102 After one year but within five years ​ ​ ​ 70,350 After five years but within 10 years ​ ​ ​ 24,691 ​ ​ ​ $ 130,143
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 March 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds ​ $ 222,358 1,505 ​ (1,385) 222,478 ​ ​ The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 1,976 ​ 1 ​ — ​ 1,977 ​ Corporate bonds ​ ​ 250,982 3,314 ​ (5) 254,291 ​ ​ ​ $ 252,958 3,315 (5) 256,268 ​
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 March 31, 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or longer ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ Fair value losses Fair value losses Fair value losses ​ ​ (in thousands) Corporate bonds ​ $ 93,046 ​ (1,385) ​ — ​ — ​ 93,046 ​ (1,385) ​ A summary of available for sale investment securities with fair values below carrying values at December 31, 2019 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or longer ​ Total ​ ​ ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ ​ ​ Unrealized ​ Fair value losses Fair value losses Fair value losses ​ ​ (in thousands) Corporate bonds ​ $ 4,538 ​ — ​ 8,056 ​ (5) ​ 12,594 ​ (5) ​
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 March 31, 2020 and December 31, 2019, as well as the Company’s net interest in these funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ ​ 2020 ​ 2019 ​ (in thousands) Cash $ 765 ​ ​ 1,530 Investments ​ 42,241 ​ 43,567 Other assets ​ 1,107 ​ 483 Other liabilities ​ (793) ​ — Redeemable noncontrolling interests ​ (19,070) ​ (19,205) Net interest in consolidated sponsored funds $ 24,250 ​ ​ 26,375
Schedule of fair value of investment securities	The following tables summarize our investment securities as of March 31, 2020 and December 31, 2019 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 7,759 ​ — ​ — ​ — ​ 7,759 ​ Commercial paper ​ ​ — ​ 19,159 ​ — ​ — ​ 19,159 ​ Total cash equivalents ​ $ 7,759 ​ 19,159 ​ — ​ — ​ 26,918 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds ​ $ — ​ 222,478 ​ — ​ — ​ 222,478 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 9,573 ​ — ​ — ​ 9,573 ​ Corporate bonds ​ ​ — ​ 77,325 ​ — ​ ​ ​ 77,325 ​ U.S. Treasury bills ​ ​ — ​ 6,022 ​ — ​ — ​ 6,022 ​ Mortgage-backed securities ​ — 3 — — ​ 3 ​ Term loans ​ — 29,090 8,130 — ​ 37,220 ​ Consolidated sponsored funds ​ — 42,241 — — ​ 42,241 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ 30,528 ​ — ​ — ​ — ​ 30,528 ​ Sponsored funds ​ ​ 148,683 ​ — ​ — ​ — ​ 148,683 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 668 ​ 668 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 31,039 ​ — ​ — ​ — ​ 31,039 ​ Total investment securities ​ $ 210,250 ​ 386,732 ​ 8,130 ​ 668 ​ 605,780 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 4,203 ​ — ​ — ​ — ​ 4,203 ​ Commercial paper ​ ​ — ​ 38,143 ​ — ​ — ​ 38,143 ​ Total cash equivalents ​ $ 4,203 ​ 38,143 ​ — ​ — ​ 42,346 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 1,977 ​ — ​ — ​ 1,977 ​ Corporate bonds ​ ​ — ​ 254,291 ​ — ​ — ​ 254,291 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 1,977 ​ — ​ — ​ 1,977 ​ Corporate bonds ​ ​ — ​ 84,920 ​ — ​ ​ ​ 84,920 ​ U.S. Treasury bills ​ ​ — ​ 5,979 ​ — ​ — ​ 5,979 ​ Mortgage-backed securities ​ — 4 — — ​ 4 ​ Term Loans ​ ​ — ​ 40,368 ​ 3,900 ​ — ​ 44,268 ​ Consolidated sponsored funds ​ ​ — ​ 43,567 ​ — ​ — ​ 43,567 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ 34,942 — 3 — ​ 34,945 ​ Sponsored funds ​ 178,386 — — — ​ 178,386 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 845 ​ 845 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 37,187 ​ — ​ — ​ — ​ 37,187 ​ Total investment securities ​ $ 250,515 ​ 433,083 ​ 3,903 ​ 845 ​ 688,346 ​ ​ (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) 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 three months ended March 31, 2020: ​ ​ ​ ​ ​ ​ For the three months ended ​ ​ March 31, 2020 ​ ​ (in thousands) Level 3 assets at December 31, 2019 ​ $ 3,903 Additions ​ 6,020 Transfers in to level 3 ​ ​ 7,371 Transfers out of level 3 ​ ​ (5,630) Losses in Investment and other income ​ (932) Redemptions/Paydowns ​ ​ (2,602) Level 3 assets at March 31, 2020 ​ $ 8,130 ​ ​ ​ ​ Change in unrealized losses for Level 3 assets held at ​ $ (158)

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2020
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 as of March 31, 2020 and December 31, 2019 and is calculated based on Level 2 inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2020 ​ ​ 2019 ​ location Fair value Fair value ​ ​ ​ (in thousands) Total return swap contracts Prepaid expenses and other current assets ​ $ 20,240 ​ ​ — Total return swap contracts ​ Other current liabilities ​ ​ — ​ ​ 3,990 Net total return swap asset (liability) ​ ​ $ 20,240 ​ ​ (3,990)
Schedule of net (losses) gains recognized in income of derivative financial instrument	The following is a summary of net gains (losses) recognized in income for the three months ended March 31, 2020 and March 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ Income statement ​ March 31, ​ location ​ 2020 ​ 2019 ​ ​ ​ (in thousands) Total return swap contracts Investment and other (loss) income $ 42,069 ​ (20,622)

Goodwill and Identifiable Int_2

Goodwill and Identifiable Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
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. The Company performs an annual goodwill impairment assessment during the second quarter of each year. Given the impacts of COVID-19, the Company also performed an interim goodwill impairment assessment in accordance with ASU 2017-04. Goodwill and identifiable intangible assets (all considered indefinite lived) at March 31, 2020 and December 31, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2020 ​ 2019 ​ ​ ​ (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)	3 Months Ended
	Mar. 31, 2020
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 costs and other postretirement costs related to these plans are reflected in the table below. Net periodic pension costs are recorded in investment and other (loss) income on the Company’s consolidated statements of income. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Pension Benefits ​ Postretirement Benefits ​ ​ ​ Three months ended March 31, ​ ​ Three months ended March 31, ​ ​ ​ 2020 ​ 2019 ​ ​ 2020 ​ 2019 ​ ​ ​ ​ (in thousands) ​ Components of net periodic benefit cost: ​ ​ ​ ​ ​ ​ Interest cost ​ $ 1,316 1,528 $ 4 8 ​ Expected return on plan assets ​ (1,122) (1,590) — — ​ Actuarial gain amortization ​ — — (67) (124) ​ Prior service credit amortization ​ — — — — ​ Total ​ $ 194 ​ (62) ​ $ (63) ​ (116) ​

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
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 ​ ​ ​ March 31, ​ ​ ​ 2020 ​ 2019 ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to Waddell & Reed Financial, Inc. $ 21,986 32,053 ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding, basic and diluted ​ 67,675 ​ 76,299 ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share, basic and diluted ​ $ 0.32 ​ 0.42 ​
Summary of accumulated other comprehensive income (loss) activity	The following tables summarize accumulated other comprehensive income (loss) activity for the three months ended March 31, 2020 and March 31, 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) on ​ benefits ​ other ​ ​ AFS investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at December 31, 2019 $ 2,521 713 3,234 Other comprehensive loss before reclassification (2,228) ​ — (2,228) Amount reclassified from accumulated other comprehensive income (loss) (202) ​ (49) (251) Net current period other comprehensive loss (2,430) ​ (49) (2,479) Balance at March 31, 2020 ​ $ 91 664 755 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2018 $ (797) 1,128 331 Other comprehensive income before reclassification 1,753 — 1,753 Amount reclassified from accumulated other comprehensive income (loss) (95) (94) (189) Net current period other comprehensive income (loss) 1,658 ​ (94) 1,564 Balance at March 31, 2019 ​ $ 861 1,034 1,895 ​ ​
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 March 31, 2020 ​ 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 ​ $ 266 (64) ​ 202 Investment and other (loss) income Amortization of postretirement benefits ​ ​ 67 (18) 49 Compensation and benefits Total ​ $ 333 (82) 251 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the three months ended March 31, 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 ​ $ 125 (30) ​ 95 Investment and other (loss) income Amortization of postretirement benefits ​ ​ 124 (30) 94 Compensation and benefits Total ​ $ 249 (60) 189 ​ ​

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases
Schedule of components of lease expense	The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 3,233 $ 5,318 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 55 $ 83 Interest on lease liabilities ​ ​ 9 ​ 8 Total ​ $ 64 ​ $ 91 ​ ​ ​ ​ ​ ​ ​
Schedule of supplemental cash flow information	Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ Operating cash flows from operating leases ​ $ 3,143 $ 5,238 Operating cash flows from finance leases ​ 9 8 Financing cash flows from finance leases ​ ​ 58 ​ ​ 80 ​ ​ ​ ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 7 ​ ​ — Finance leases ​ ​ — ​ ​ 40
Schedule of supplemental balance sheet information	Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2020 ​ December 31, 2019 ​ ​ (in thousands, except lease term and discount rate) Operating Leases: ​ ​ Operating lease ROU assets (Other non-current assets) ​ $ 20,478 $ 23,457 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 9,561 ​ $ 10,479 Other non-current liabilities ​ ​ 12,726 ​ ​ 14,694 Total operating lease liabilities ​ $ 22,287 ​ $ 25,173 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases: ​ ​ ​ ​ ​ ​ Property and equipment, gross ​ $ 861 ​ $ 985 Accumulated depreciation ​ ​ (676) ​ ​ (737) Property and equipment, net ​ $ 185 ​ $ 248 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 152 ​ $ 203 Other non-current liabilities ​ ​ 36 ​ ​ 55 Total finance lease liabilities ​ $ 188 ​ $ 258 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 4 years ​ ​ 4 years Finance leases ​ ​ 1 year ​ ​ 1 year ​ ​ ​ ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 4.28% ​ ​ 4.32% Finance leases ​ ​ 6.00% ​ ​ 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, ​ ​ ​ ​ ​ ​ 2020 (excluding the three months ended March 31, 2020) $ 8,189 ​ 140 2021 ​ ​ 6,696 ​ ​ 43 2022 ​ 2,465 ​ 6 2023 ​ 2,122 ​ — 2024 ​ ​ 2,090 ​ ​ — Thereafter ​ 2,613 ​ — Total lease payments ​ 24,175 ​ 189 Less imputed interest ​ ​ (1,888) ​ ​ (1) Total ​ $ 22,287 ​ 188
Schedule of maturities of finance leases	Maturities of lease liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ ​ Finance ​ ​ Leases ​ ​ Leases ​ ​ (in thousands) Year ended December 31, ​ ​ ​ ​ ​ ​ 2020 (excluding the three months ended March 31, 2020) $ 8,189 ​ 140 2021 ​ ​ 6,696 ​ ​ 43 2022 ​ 2,465 ​ 6 2023 ​ 2,122 ​ — 2024 ​ ​ 2,090 ​ ​ — Thereafter ​ 2,613 ​ — Total lease payments ​ 24,175 ​ 189 Less imputed interest ​ ​ (1,888) ​ ​ (1) Total ​ $ 22,287 ​ 188

Description of Business and S_3

Description of Business and Significant Accounting Policies (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets under management	$ 56,000,000
Assets held for sale	33,017	$ 34,726
Equipment
Assets held for sale	3,100
Buildings
Assets held for sale	3,800
Land
Assets held for sale	$ 1,900

New Accounting Guidance (Detail

New Accounting Guidance (Details) $ in Thousands	Mar. 31, 2020USD ($)
ASU 2016-13
New Accounting Guidance
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
ASU 2017-04
New Accounting Guidance
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
ASU 2018-15
New Accounting Guidance
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Capitalized implementation costs for hosting arrangements	$ 2,600
Accumulated amortization of hosting arrangement	$ 23
ASU 2019-12
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
	Mar. 31, 2020	Mar. 31, 2019
Revenue Recognition
Total Revenues	$ 263,733	$ 259,410
Investment management fees
Revenue Recognition
Total Revenues	105,219	109,762
Investment management fees - Funds
Revenue Recognition
Total Revenues	102,293	105,745
Investment management fees - Institutional
Revenue Recognition
Total Revenues	2,926	4,017
Underwriting and distribution fees
Revenue Recognition
Total Revenues	136,943	126,245
Unaffiliated
Revenue Recognition
Total Revenues	15,862	17,000
Unaffiliated Rule 12b-1 service and distribution fees
Revenue Recognition
Total Revenues	15,276	16,465
Unaffiliated sales commissions on front-end load mutual fund and variable annuity sales
Revenue Recognition
Total Revenues	451	443
Unaffiliated other revenues
Revenue Recognition
Total Revenues	135	92
Wealth Management
Revenue Recognition
Total Revenues	121,081	109,245
Wealth Management, Fee-based asset allocation product revenues
Revenue Recognition
Total Revenues	77,118	65,230
Wealth Management, Rule 12b-1 service and distribution fees
Revenue Recognition
Total Revenues	14,589	15,405
Wealth Management, sales commissions on front-end load mutual fund and variable annuity sales
Revenue Recognition
Total Revenues	11,958	12,015
Wealth Management, sales commissions on other products
Revenue Recognition
Total Revenues	8,699	7,606
Wealth Management, other revenues
Revenue Recognition
Total Revenues	8,717	8,989
Shareholder service fees
Revenue Recognition
Total Revenues	$ 21,571	$ 23,403

Investment Securities - Investm

Investment Securities - Investment securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available for sale securities:
Available for sale securities	$ 222,478	$ 256,268
Trading debt securities:
Trading debt securities	172,384	180,715
Equity securities:
Equity securities	179,879	214,176
Equity method securities:
Total investment securities	605,780	688,346
Commercial paper
Available for sale securities:
Available for sale securities		1,977
Trading debt securities:
Trading debt securities	9,573	1,977
Corporate bonds
Available for sale securities:
Available for sale securities	222,478	254,291
Trading debt securities:
Trading debt securities	77,325	84,920
U.S. treasury bills
Trading debt securities:
Trading debt securities	6,022	5,979
Mortgage-backed securities
Trading debt securities:
Trading debt securities	3	4
Term loans
Trading debt securities:
Trading debt securities	37,220	44,268
Consolidated Sponsored Funds
Trading debt securities:
Trading debt securities	42,241	43,567
Common Stock
Equity securities:
Equity securities	30,528	34,945
Sponsored funds
Equity securities:
Equity securities	148,683	178,386
Equity method securities:
Equity method securities	31,039	37,187
Sponsored privately offered funds
Equity securities:
Equity securities	$ 668	$ 845

Investment Securities - Maturit

Investment Securities - Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized Cost
Within one year	$ 63,347
After one year but within five years	159,011
Amortized Cost	222,358	$ 252,958
Fair value
Within one year	63,292
After one year but within five years	159,186
Total fair value	222,478	$ 256,268
Fair value
Within one year	35,102
After one year but within five years	70,350
After five years but within 10 years	24,691
Total fair value	$ 130,143

Investment Securities - Inves_2

Investment Securities - Investment securities and summary of the gains (losses) related to securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available for sale securities:
Amortized Cost	$ 222,358	$ 252,958
Unrealized gains		3,315
Unrealized losses		(5)
Fair value	222,478	256,268
Commercial paper
Available for sale securities:
Amortized Cost		1,976
Unrealized gains		1
Fair value		1,977
Corporate bonds
Available for sale securities:
Amortized Cost	222,358	250,982
Unrealized gains	1,505	3,314
Unrealized losses	(1,385)	(5)
Fair value	$ 222,478	$ 254,291

Investment Securities - Availab

Investment Securities - Available for sale sponsored funds with fair values below carrying values (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)security	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Unrealized losses
Securities in an unrealized loss position | security	24
Net unrealized gains (losses) on equity securities	$ (35,900)	$ 13,100
Corporate bonds
Fair value
Less than 12 months	93,046		$ 4,538
12 months or longer			8,056
Total fair value	93,046		12,594
Unrealized losses
Less than 12 months	(1,385)
12 months or longer			(5)
Total unrealized losses	$ (1,385)		$ (5)

Investment Securities - Consoli

Investment Securities - Consolidated Sponsored Funds (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investment Securities
Cash	$ 160,316	$ 151,815
Redeemable noncontrolling interests	(19,070)	(19,205)
Consolidated Sponsored Funds
Investment Securities
Cash	765	1,530
Investments	42,241	43,567
Other assets	1,107	483
Other liabilities	(793)
Redeemable noncontrolling interests	(19,070)	(19,205)
Net interest in consolidated sponsored funds	$ 24,250	$ 26,375

Investment Securities - Fair va

Investment Securities - Fair value of investment securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair value of investments
Cash equivalents	$ 26,918	$ 42,346
Available for sale securities	222,478	256,268
Trading debt securities	172,384	180,715
Equity securities	179,879	214,176
Total investment securities	605,780	688,346
Money market funds
Fair value of investments
Cash equivalents	7,759	4,203
Commercial paper
Fair value of investments
Cash equivalents	19,159	38,143
Available for sale securities		1,977
Trading debt securities	9,573	1,977
Corporate bonds
Fair value of investments
Available for sale securities	222,478	254,291
Trading debt securities	77,325	84,920
U.S. treasury bills
Fair value of investments
Trading debt securities	6,022	5,979
Mortgage-backed securities
Fair value of investments
Trading debt securities	3	4
Term loans
Fair value of investments
Trading debt securities	37,220	44,268
Consolidated Sponsored Funds
Fair value of investments
Trading debt securities	42,241	43,567
Common Stock
Fair value of investments
Equity securities	30,528	34,945
Sponsored funds
Fair value of investments
Equity securities	148,683	178,386
Equity method securities	31,039	37,187
Sponsored privately offered funds
Fair value of investments
Equity securities	668	845
Level 1
Fair value of investments
Cash equivalents	7,759	4,203
Total investment securities	210,250	250,515
Level 1 | Money market funds
Fair value of investments
Cash equivalents	7,759	4,203
Level 1 | Common Stock
Fair value of investments
Equity securities	30,528	34,942
Level 1 | Sponsored funds
Fair value of investments
Equity securities	148,683	178,386
Equity method securities	31,039	37,187
Level 2
Fair value of investments
Cash equivalents	19,159	38,143
Total investment securities	386,732	433,083
Level 2 | Commercial paper
Fair value of investments
Cash equivalents	19,159	38,143
Available for sale securities		1,977
Trading debt securities	9,573	1,977
Level 2 | Corporate bonds
Fair value of investments
Available for sale securities	222,478	254,291
Trading debt securities	77,325	84,920
Level 2 | U.S. treasury bills
Fair value of investments
Trading debt securities	6,022	5,979
Level 2 | Mortgage-backed securities
Fair value of investments
Trading debt securities	3	4
Level 2 | Term loans
Fair value of investments
Trading debt securities	29,090	40,368
Level 2 | Consolidated Sponsored Funds
Fair value of investments
Trading debt securities	42,241	43,567
Level 3
Fair value of investments
Total investment securities	8,130	3,903
Level 3 | Term loans
Fair value of investments
Trading debt securities	8,130	3,900
Level 3 | Common Stock
Fair value of investments
Equity securities		3
Other Assets Held at Net Value
Fair value of investments
Total investment securities	668	845
Other Assets Held at Net Value | Sponsored privately offered funds
Fair value of investments
Equity securities	$ 668	$ 845

Investment Securities - Inves_3

Investment Securities - Investment category (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Level 3 assets at beginning of period	$ 3,903
Additions	6,020
Transfers in to level 3	7,371
Transfers out of level 3	(5,630)
Losses in Investment and other income	$ (932)
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income [Extensible List]	Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
Redemptions / Paydowns	$ (2,602)
Level 3 assets at end of period	8,130
Change in unrealized losses for Level 3 assets held	$ (158)

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - Not designated as a hedge - Total return swap contracts $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)contract	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)contract
Derivative Financial Instruments
Number of contracts | contract	17		14
Notional value	$ 223,200		$ 228,200
Cash collateral posted by counterparties	20,400
Cash collateral with the counterparties			3,700
Level 2
Derivative Financial Instruments
Net total return swap (liability) asset	20,240		(3,990)
Investment and other income (loss) | Level 2
Derivative Financial Instruments
Net (losses) gains recognized in income	42,069	$ (20,622)
Prepaid expenses and other current assets | Level 2
Derivative Financial Instruments
Fair value - assets	$ 20,240
Other current liabilities | Level 2
Derivative Financial Instruments
Fair value - liabilities			$ 3,990

Goodwill and Identifiable Int_3

Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
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) $ in Thousands	Mar. 31, 2020USD ($)
Indebtedness
Short-term notes payable	$ 94,944
Senior 5.75% unsecured notes due, 2021 ("Series B Notes")
Indebtedness
Fair value of outstanding indebtedness	96,800
Short-term notes payable	$ 94,900

Income Tax Uncertainties (Detai

Income Tax Uncertainties (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Income Tax Uncertainties
Unrecognized tax benefits, including penalties and interest that if recognized would impact effective tax rate	$ 2	$ 2
Unrecognized tax benefits, including penalties and interest, net of federal tax benefit that if recognized would affect effective tax rate	$ 1.8	$ 1.7

Pension Plan and Postretireme_3

Pension Plan and Postretirement Benefits Other Than Pension (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Pension Benefits
Pension Plan and Postretirement Benefits Other than Pension
Final number of years of employee's compensation to determine the benefits payable	10 years
Components of net periodic benefit cost:
Interest cost	$ 1,316	$ 1,528
Expected return on plan assets	(1,122)	(1,590)
Total	$ 194	(62)
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	$ 4	8
Actuarial gain amortization	(67)	(124)
Total	$ (63)	$ (116)

Stockholders' Equity - Earnings

Stockholders' Equity - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Components of basic and diluted earnings per share
Net income attributable to Waddell & Reed Financial, Inc.	$ 21,986	$ 32,053
Weighted average shares outstanding - basic and diluted	67,675,000	76,299,000
Earnings per share:
Earnings per share, basic and diluted (in dollars per share)	$ 0.32	$ 0.42
Dividends
Dividends declared (in dollars per share)	$ 0.25	$ 0.25
Dividends payable to stockholders	$ 16,500
Common stock repurchases
Shares repurchased in the open market or privately	3,807,438	2,226,325
Shares repurchased from employees to cover income tax withholdings	231,393	149,073

Stockholders' Equity - Accumula

Stockholders' Equity - Accumulated other comprehensive income (loss) activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	$ 808,897	$ 883,450
Balance at the end of the period	765,658	868,604
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	3,234	331
Other comprehensive income (loss) before reclassification	(2,228)	1,753
Amount reclassified from accumulated other comprehensive income (loss)	(251)	(189)
Net current period other comprehensive income (loss)	(2,479)	1,564
Balance at the end of the period	755	1,895
Unrealized gains (losses) on AFS investment securities
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	2,521	(797)
Other comprehensive income (loss) before reclassification	(2,228)	1,753
Amount reclassified from accumulated other comprehensive income (loss)	(202)	(95)
Net current period other comprehensive income (loss)	(2,430)	1,658
Balance at the end of the period	91	861
Postretirement benefits unrealized gains (losses)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	713	1,128
Amount reclassified from accumulated other comprehensive income (loss)	(49)	(94)
Net current period other comprehensive income (loss)	(49)	(94)
Balance at the end of the period	$ 664	$ 1,034

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
	Mar. 31, 2020	Mar. 31, 2019
Reclassifications included in net income:
Pre-tax	$ 333	$ 249
Tax (expense) benefit	(82)	(60)
Net of tax	251	189
Gains (losses) on available for sale debt securities | Investment and other income (loss)
Reclassifications included in net income:
Pre-tax	266	125
Tax (expense) benefit	(64)	(30)
Net of tax	202	95
Postretirement benefits unrealized gains (losses) | Compensation and benefits
Reclassifications included in net income:
Pre-tax	67	124
Tax (expense) benefit	(18)	(30)
Net of tax	$ 49	$ 94

Leases - Narrative (Details)

Leases - Narrative (Details) - ft²	3 Months Ended
	Mar. 31, 2020	Jan. 31, 2020
Leases
Option to extend - Operating	true
Option to extend - Finance	true
Option to terminate - Operating	true
Option to terminate - Finance	true
Minimum
Leases
Lease term - Operating	1 year
Lease term - Finance	1 year
Maximum
Leases
Lease term - Operating	6 years
Lease term - Finance	6 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
Corporate Headquarters
Leases
Lease term - Finance		15 years
Square footage		260,000

Leases - Components of Lease (D

Leases - Components of Lease (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Components of lease expense
Operating Lease Cost	$ 3,233	$ 5,318
Amortization of ROU assets	55	83
Interest on lease liabilities	9	8
Total	$ 64	$ 91

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases
Operating cash flows from operating leases	$ 3,143	$ 5,238
Operating cash flows from finance leases	9	8
Financing cash flows from finance leases	58	80
ROU assets obtained in exchange for lease obligations - Operating leases	$ 7
ROU assets obtained in exchange for lease obligations - Finance leases		$ 40

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases
Operating lease ROU assets	$ 20,478	$ 23,457
Financial position	us-gaap:OtherAssetsNoncurrent
Operating lease liabilities - current	$ 9,561	10,479
Financial position	us-gaap:OtherLiabilitiesCurrent
Operating lease liabilities - noncurrent	$ 12,726	14,694
Financial position	us-gaap:OtherLiabilitiesNoncurrent
Total Operating lease liabilities	$ 22,287	25,173
Financing Lease ROU assets	$ 185	248
Financial position	Property, Plant and Equipment, Net
Finance lease liabilities - current	$ 152	203
Financial position	us-gaap:OtherLiabilitiesCurrent
Finance lease liabilities - noncurrent	$ 36	55
Financial position	us-gaap:OtherLiabilitiesNoncurrent
Finance lease liabilities	$ 188	$ 258
Weighted average remaining lease term - Operating leases	4 years	4 years
Weighted average remaining lease term - Financing leases	1 year	1 year
Weighted average discount rate - Operating leases	4.28%	4.32%
Weighted average discount rate - Financing leases	6.00%	6.00%
Finance lease assets
Leases
Property and equipment, gross	$ 861	$ 985
Accumulated depreciation	$ (676)	$ (737)

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Operating Leases maturities:
2020 (excluding the three months ended March 31, 2020)	$ 8,189
2021	6,696
2022	2,465
2023	2,122
2024	2,090
Thereafter	2,613
Total lease payments	24,175
Less imputed interest	(1,888)
Total	22,287	$ 25,173
Finance Leases maturities:
2020 (excluding the three months ended March 31, 2020)	140
2021	43
2022	6
Total lease payments	189
Less imputed interest	(1)
Total	$ 188	$ 258