Waddell & Reed Financial (WDR) 10-Q 30 Oct 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 23, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 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		62,547,588
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001052100
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets:
Cash and cash equivalents	$ 165,259	$ 151,815
Cash and cash equivalents - restricted	61,933	74,325
Investment securities	579,344	688,346
Receivables:
Funds and separate accounts	13,050	15,167
Customers and other	57,781	80,089
Prepaid expenses and other current assets	35,946	31,655
Total current assets	913,313	1,041,397
Property and equipment, net	27,213	34,726
Goodwill and identifiable intangible assets	145,869	145,869
Deferred income taxes	15,676	14,418
Other non-current assets	23,359	29,918
Total assets	1,125,430	1,266,328
Liabilities:
Accounts payable	17,509	20,123
Payable to investment companies for securities	17,443	36,883
Payable to third party brokers	16,559	17,123
Payable to customers	81,265	84,558
Short-term notes payable	94,980
Accrued compensation	65,896	79,507
Other current liabilities	56,515	71,001
Total current liabilities	350,167	309,195
Long-term debt		94,926
Accrued pension and postretirement costs	579	3,145
Other non-current liabilities	27,173	30,960
Total liabilities	377,919	438,226
Redeemable noncontrolling interests		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; 62,548 shares outstanding (68,847 at December 31, 2019)	997	997
Additional paid-in capital	296,220	312,693
Retained earnings	1,270,678	1,241,598
Cost of 37,153 common shares in treasury (30,854 at December 31, 2019)	(824,309)	(749,625)
Accumulated other comprehensive income	3,925	3,234
Total stockholders' equity	747,511	808,897
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$ 1,125,430	$ 1,266,328

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 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	62,548	68,847
Common shares in treasury	37,153	30,854

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Total Revenues	$ 267,670	$ 270,680	$ 771,437	$ 800,244
Operating expenses:
Distribution	122,195	117,425	350,104	343,696
Compensation and benefits (including share-based compensation of $11,080, $11,580, $33,595, and $35,471 respectively)	62,416	64,999	182,704	191,718
General and administrative	19,156	16,680	58,278	47,421
Technology	14,250	15,019	41,989	47,769
Occupancy	4,160	5,684	13,160	19,100
Marketing and advertising	1,370	2,134	4,385	6,497
Depreciation	2,998	4,833	9,720	16,062
Subadvisory fees	3,490	3,882	10,444	11,154
Total	230,035	230,656	670,784	683,417
Operating income	37,635	40,024	100,653	116,827
Investment and other income	5,449	5,212	12,852	23,690
Interest expense	(1,542)	(1,562)	(4,630)	(4,662)
Income before provision for income taxes	41,542	43,674	108,875	135,855
Provision for income taxes	10,296	10,175	29,341	35,036
Net income	31,246	33,499	79,534	100,819
Net income attributable to redeemable noncontrolling interests	723	445	2,201	1,763
Net income attributable to Waddell & Reed Financial, Inc.	$ 30,523	$ 33,054	$ 77,333	$ 99,056
Net income per share attributable to Waddell and Reed Financial, Inc. common shareholders, basic and diluted:	$ 0.48	$ 0.46	$ 1.18	$ 1.33
Weighted average shares outstanding, basic and diluted:	64,240	72,387	65,795	74,446
Investment management fees
Revenues:
Total Revenues	$ 106,617	$ 111,806	$ 307,660	$ 334,438
Underwriting and distribution fees
Revenues:
Total Revenues	139,456	135,787	400,032	395,527
Shareholder service fees
Revenues:
Total Revenues	$ 21,597	$ 23,087	$ 63,745	$ 70,279

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Income
Compensation and benefits, share-based compensation	$ 11,080	$ 11,580	$ 33,595	$ 35,471

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 31,246	$ 33,499	$ 79,534	$ 100,819
Other comprehensive (loss) income:
Unrealized (loss) gain on available for sale investment securities during the period, net of income tax (benefit) expense of $(161), $92, $274 and $1,011, respectively	(511)	296	842	3,235
Postretirement benefit, net of income tax benefit of $(16), $(30), $(50) and $(88), respectively	(51)	(94)	(151)	(283)
Comprehensive income	30,684	33,701	80,225	103,771
Comprehensive income attributable to redeemable noncontrolling interests	723	445	2,201	1,763
Comprehensive income attributable to Waddell & Reed Financial, Inc.	$ 29,961	$ 33,256	$ 78,024	$ 102,008

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Comprehensive Income
Unrealized (loss) gain on available for sale investment securities during the period, income tax expense (benefit)	$ (161)	$ 92	$ 274	$ 1,011
Postretirement benefit, income tax (benefit) expense	$ (16)	$ (30)	$ (50)	$ (88)

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	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			99,056			99,056
Recognition of equity compensation		25,573	297			25,870
Net issuance/forfeiture of nonvested shares		(33,699)		33,699
Dividends accrued			(55,121)			(55,121)
Repurchase of common stock				(116,677)		(116,677)
Other comprehensive income (loss)					2,952	2,952
Balance at the end of the period at Sep. 30, 2019	$ 997	303,138	1,242,677	(710,565)	3,283	839,530
Balance (in shares) at Sep. 30, 2019	99,701
Balance at the beginning of the period at Dec. 31, 2018						11,463
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income						1,763
Net subscription of redeemable noncontrolling interests in sponsored funds						3,687
Balance at the end of the period at Sep. 30, 2019						16,913
Balance at the beginning of the period at Jun. 30, 2019	$ 997	294,487	1,227,314	(669,223)	3,081	856,656
Balance (in shares) at Jun. 30, 2019	99,701
Increase (Decrease) in Stockholders' Equity
Net income			33,054			33,054
Recognition of equity compensation		8,024	57			8,081
Net issuance/forfeiture of nonvested shares		627		(627)
Dividends accrued			(17,748)			(17,748)
Repurchase of common stock				(40,715)		(40,715)
Other comprehensive income (loss)					202	202
Balance at the end of the period at Sep. 30, 2019	$ 997	303,138	1,242,677	(710,565)	3,283	839,530
Balance (in shares) at Sep. 30, 2019	99,701
Balance at the beginning of the period at Jun. 30, 2019						15,115
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income						445
Net subscription of redeemable noncontrolling interests in sponsored funds						1,353
Balance at the end of the period at Sep. 30, 2019						16,913
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			77,333			77,333
Recognition of equity compensation		20,895	110			21,005
Net issuance/forfeiture of nonvested shares		(37,368)		37,368
Dividends accrued			(48,363)			(48,363)
Repurchase of common stock				(112,052)		(112,052)
Other comprehensive income (loss)					691	691
Balance at the end of the period at Sep. 30, 2020	$ 997	296,220	1,270,678	(824,309)	3,925	747,511
Balance (in shares) at Sep. 30, 2020	99,701
Balance at the beginning of the period at Dec. 31, 2019						19,205
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income						2,201
Net deconsolidation of redeemable noncontrolling interests in sponsored funds						(21,406)
Balance at the beginning of the period at Jun. 30, 2020	$ 997	289,439	1,255,770	(783,990)	4,487	766,703
Balance (in shares) at Jun. 30, 2020	99,701
Increase (Decrease) in Stockholders' Equity
Net income			30,523			30,523
Recognition of equity compensation		6,514	20			6,534
Net issuance/forfeiture of nonvested shares		267		(267)
Dividends accrued			(15,635)			(15,635)
Repurchase of common stock				(40,052)		(40,052)
Other comprehensive income (loss)					(562)	(562)
Balance at the end of the period at Sep. 30, 2020	$ 997	$ 296,220	$ 1,270,678	$ (824,309)	$ 3,925	747,511
Balance (in shares) at Sep. 30, 2020	99,701
Balance at the beginning of the period at Jun. 30, 2020						25,857
Increase (Decrease) in Redeemable Noncontrolling Interest
Net income						723
Net deconsolidation of redeemable noncontrolling interests in sponsored funds						$ (26,580)

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interests
Dividends accrued (in dollars per share)	$ 0.25	$ 0.25	$ 0.75	$ 0.75

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 79,534	$ 100,819
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,368	16,057
Amortization of deferred sales commissions	1,180	1,492
Share-based compensation	33,595	35,471
Investments and derivatives loss (gain), net of collateral	1,688	(15,250)
Net purchases, maturities, and sales of trading and equity securities	22,468	(47,641)
Deferred income taxes	(1,480)	4,622
Net change in equity securities and trading debt securities held by consolidated sponsored funds	(10,886)	16,697
Other	(1,096)	1,273
Changes in assets and liabilities:
Customer and other receivables	3,801	70,220
Payable to investment companies for securities and payable to customers	(22,733)	(105,953)
Receivables from funds and separate accounts	2,117	3,360
Other assets	4,064	14,784
Accounts payable and payable to third party brokers	(6,383)	(10,243)
Other liabilities	(23,265)	(1,477)
Net cash provided by operating activities	91,972	84,231
Cash flows from investing activities:
Purchases of available for sale and equity method securities	(28,286)	(149,835)
Proceeds from sales of available for sale and equity method securities	3,257	19,667
Proceeds from maturities of available for sale securities	96,420	116,197
Proceeds from sale of property and equipment	2,262
Additions to property and equipment	(7,445)	(4,189)
Net cash provided by (used in) investing activities	66,208	(18,160)
Cash flows from financing activities:
Dividends paid	(49,939)	(56,560)
Repurchase of common stock	(112,865)	(118,668)
Net subscriptions (redemptions, distributions and deconsolidations) of redeemable noncontrolling interests in sponsored funds	5,807	3,687
Other	(131)	(168)
Net cash used in financing activities	(157,128)	(171,709)
Net decrease in cash, cash equivalents and restricted cash	1,052	(105,638)
Cash, cash equivalents, and restricted cash at beginning of period	226,140	291,555
Cash, cash equivalents, and restricted cash at end of period	$ 227,192	$ 185,917

Description of Business and Sig

Description of Business and Significant Accounting Policies	9 Months Ended
	Sep. 30, 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 September 30, 2020, we had $67.9 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 advisory programs, 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 continues to proactively manage 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: ● Our Enterprise Preparedness Team and COVID-19 steering committee continue to meet 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 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 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 December and increased 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 September 30, 2020 and the results of operations and cash flows for the three and nine months ended September 30, 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. The nine months ended September 30, 2020 included asset impairment charges of $0.9 million on assets held for sale, which were recorded in general and administrative expenses in our consolidated statements of income. During the third quarter of 2020, the aviation equipment was sold. As of September 30, 2020, $3.8 million of buildings and $1.9 million of land that were held for sale were included in Property and equipment, net on our consolidated balance sheets. As of December 31, 2019, $3.1 million of equipment, $3.8 million of buildings and $1.9 million of land that were held for sale were included in Property and equipment, net on our consolidated balance sheets. The Company intends to actively pursue the sale of remaining assets held for sale at market prices as soon as reasonably possible. ​ Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ​ As of September 30, 2020, the Company had $5.3 million of capitalized implementation costs for hosting arrangements with $215 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 our asset management and wealth management businesses. Amortization costs are recorded on a straight-line basis over the term of the hosting arrangement agreement. ​

New Accounting Guidance

New Accounting Guidance	9 Months Ended
	Sep. 30, 2020
New Accounting Guidance
New Accounting Guidance	2. New Accounting Guidance ​ Accounting Guidance Not Yet Adopted ​ In December 2019, the 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 have concluded that the adoption of this ASU will have an immaterial impact on our consolidated financial statements and related disclosures. ​

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 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 ​ Nine months ended ​ ​ ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ ​ ​ ​ (in thousands) ​ (in thousands) ​ Investment management fees: ​ ​ ​ Funds ​ $ 103,443 107,926 298,712 322,678 ​ Institutional ​ 3,174 3,880 8,948 11,760 ​ Total investment management fees ​ $ 106,617 111,806 307,660 334,438 ​ Underwriting and distribution fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaffiliated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service and distribution fees ​ $ 14,623 ​ 16,286 ​ 43,569 ​ 49,366 ​ Sales commissions ​ ​ 223 ​ 364 ​ 1,047 ​ 1,300 ​ Other revenues ​ ​ 82 ​ 67 ​ 308 ​ 242 ​ Total unaffiliated distribution fees ​ $ 14,928 ​ 16,717 ​ 44,924 ​ 50,908 ​ Wealth Management ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Advisory fees ​ $ 82,591 ​ 73,356 ​ 232,243 ​ 208,806 ​ Service and distribution fees ​ ​ 15,305 ​ 16,143 ​ 43,494 ​ 47,589 ​ Sales commissions ​ ​ 17,847 ​ 20,544 ​ 53,538 ​ 60,959 ​ Other revenues ​ ​ 8,785 ​ 9,027 ​ 25,833 ​ 27,265 ​ Total wealth management distribution fees ​ ​ 124,528 ​ 119,070 ​ 355,108 ​ 344,619 ​ Total distribution fees ​ $ 139,456 ​ 135,787 ​ 400,032 ​ 395,527 ​ Shareholder service fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholder service fees ​ $ 21,597 23,087 63,745 70,279 ​ ​ ​ ​ ​ ​ ​ ​ Total revenues ​ $ 267,670 270,680 771,437 800,244 ​ ​

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2020
Investment Securities
Investment Securities	4. Investment Securities ​ Investment securities at September 30, 2020 and December 31, 2019 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2020 2019 ​ ​ ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 9,714 ​ 1,977 ​ Corporate bonds ​ ​ 180,203 ​ 254,291 ​ Total available for sale securities ​ 189,917 ​ 256,268 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 18,774 ​ 1,977 ​ Corporate bonds ​ 70,984 ​ 84,920 ​ U.S. Treasury bills ​ ​ — ​ 5,979 ​ Mortgage-backed securities ​ 1 ​ 4 ​ Term loans ​ ​ 44,994 ​ 44,268 ​ Consolidated sponsored funds ​ — ​ 43,567 ​ Total trading securities ​ 134,753 ​ 180,715 ​ Equity securities: ​ ​ ​ ​ ​ ​ Common stock ​ 34,206 ​ 34,945 ​ Sponsored funds ​ ​ 149,857 ​ 178,386 ​ Sponsored privately offered funds ​ 924 ​ 845 ​ Total equity securities ​ ​ 184,987 ​ 214,176 ​ Equity method securities: ​ ​ ​ ​ ​ ​ Sponsored funds ​ 69,687 ​ 37,187 ​ Total securities ​ $ 579,344 ​ 688,346 ​ ​ Commercial paper and corporate bonds accounted for as available for sale and held as of September 30, 2020 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost Fair value ​ (in thousands) Within one year $ 64,321 ​ 65,057 After one year but within five years ​ 121,170 ​ 124,860 ​ $ 185,491 ​ 189,917 ​ Commercial paper, corporate bonds, mortgage-backed securities and term loans accounted for as trading and held as of September 30, 2020 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ ​ ​ (in thousands) Within one year ​ ​ $ 29,580 After one year but within five years ​ ​ ​ 83,508 After five years but within 10 years ​ ​ ​ 21,665 ​ ​ ​ $ 134,753 ​ The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at September 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 9,720 ​ 3 ​ (9) ​ 9,714 ​ Corporate bonds ​ ​ 175,771 4,432 ​ — 180,203 ​ ​ ​ $ 185,491 4,435 (9) 189,917 ​ ​ 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 September 30, 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) Commercial paper ​ $ 2,420 ​ (9) ​ — ​ — ​ 2,420 ​ (9) ​ 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 one available for sale security in an unrealized loss position at September 30, 2020. ​ The Company evaluated available for sale securities in an unrealized loss position at September 30, 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 gains of $7.3 million and net unrealized losses of $0.2 million were recognized for the three months ended September 30, 2020 and September 30, 2019, respectively and net unrealized losses of $0.5 million and net unrealized gains of $17.9 million were recognized for the nine months ended September 30, 2020 and September 30, 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 September 30, 2020 and December 31, 2019, as well as the Company’s net interest in these funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ 2020 ​ 2019 ​ (in thousands) Cash $ — ​ ​ 1,530 Investments ​ — ​ 43,567 Other assets ​ — ​ 483 Other liabilities ​ — ​ — Redeemable noncontrolling interests ​ — ​ (19,205) Net interest in consolidated sponsored funds $ — ​ ​ 26,375 ​ During the third quarter of 2020, we deconsolidated one Ivy Fund in which we had provided initial seed capital at the time of the fund’s formation due to no longer having a controlling financial interest in the fund. ​ Fair Value ​ Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of the asset. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset. An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs that are significant to the overall valuation. The three-level hierarchy of inputs is summarized as follows: ​ ● Level 1 – Investments are valued using quoted prices in active markets for identical securities. ​ ● Level 2 – Investments are valued using other significant observable inputs, including quoted prices in active markets for similar securities. ​ ● Level 3 – Investments are valued using significant unobservable inputs, including the Company’s own assumptions in determining the fair value of investments. ​ Assets classified as Level 2 can have a variety of observable inputs. These observable inputs are collected and utilized, primarily by an independent pricing service, in different evaluated pricing approaches depending upon the specific asset to determine a value. The carrying amounts of certificates of deposit and commercial paper are measured at amortized cost, which approximates fair value due to the short time between purchase and expected maturity of the investments. Depending on the nature of the inputs, these investments are generally classified as Level 1 or 2 within the fair value hierarchy. U.S. Treasury bills are valued upon quoted market prices for similar assets in active markets, quoted prices for identical or similar assets that are not active and inputs other than quoted prices that are observable or corroborated by observable market data. The fair value of corporate bonds is measured using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads and fundamental data relating to the issuer. Term loans are valued using a price or composite price from one or more brokers or dealers as obtained from an independent pricing service. The fair value of loans is estimated using recently executed transactions, market price quotations, credit/market events, and cross-asset pricing. Inputs are generally observable market inputs obtained from independent sources. Term loans are generally categorized in Level 2 of the fair value hierarchy, unless key inputs are unobservable in which case they would be categorized as Level 3. The fair value of equity derivatives is measured based on active market broker quotes, evaluated broker quotes and evaluated prices from vendors. ​ The following tables summarize our investment securities as of September 30, 2020 and December 31, 2019 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 45,007 ​ — ​ — ​ — ​ 45,007 ​ Commercial paper ​ ​ — ​ 23,316 ​ — ​ — ​ 23,316 ​ Total cash equivalents ​ $ 45,007 ​ 23,316 ​ — ​ — ​ 68,323 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 9,714 ​ — ​ — ​ 9,714 ​ Corporate bonds ​ $ — ​ 180,203 ​ — ​ — ​ 180,203 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 18,774 ​ — ​ — ​ 18,774 ​ Corporate bonds ​ ​ — ​ 70,984 ​ — ​ ​ ​ 70,984 ​ Mortgage-backed securities ​ — 1 — — ​ 1 ​ Term loans ​ — 43,288 1,706 — ​ 44,994 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ 34,206 ​ — ​ — ​ — ​ 34,206 ​ Sponsored funds ​ ​ 149,857 ​ — ​ — ​ — ​ 149,857 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 924 ​ 924 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 69,687 ​ — ​ — ​ — ​ 69,687 ​ Total investment securities ​ $ 253,750 ​ 322,964 ​ 1,706 ​ 924 ​ 579,344 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 nine months ended September 30, 2020: ​ ​ ​ ​ ​ ​ For the nine months ended ​ ​ September 30, 2020 ​ ​ (in thousands) Level 3 assets at December 31, 2019 ​ $ 3,903 Additions ​ 6,501 Transfers in to level 3 ​ ​ 11,086 Transfers out of level 3 ​ ​ (15,622) Losses in Investment and other income ​ (1,026) Redemptions/Paydowns ​ ​ (3,136) Level 3 assets at September 30, 2020 ​ $ 1,706 ​ ​ ​ ​ Change in unrealized losses for Level 3 assets held at ​ $ (9) ​

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 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 10 total return swap contracts with a combined notional value of $271.2 million and 14 total return swap contracts with a combined notional value of $228.2 million as of September 30, 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 income in the Company’s consolidated statements of income. ​ The counterparties of the total return swap contracts posted $3.2 million in cash collateral with the Company as of September 30, 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 September 30, 2020 and December 31, 2019 and is calculated based on Level 2 inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2020 ​ ​ 2019 ​ location Fair value Fair value ​ ​ ​ (in thousands) Total return swap contracts Prepaid expenses and other current assets ​ $ 2,017 ​ ​ — Total return swap contracts ​ Other current liabilities ​ ​ — ​ ​ 3,990 Net total return swap asset (liability) ​ ​ $ 2,017 ​ ​ (3,990) ​ The following is a summary of net (losses) gains recognized in income for the three and nine months ended September 30, 2020 and September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ Income statement ​ September 30, ​ September 30, ​ location ​ 2020 2019 ​ 2020 ​ 2019 ​ ​ ​ (in thousands) ​ (in thousands) Total return swap contracts Investment and other income $ (14,191) 135 ​ $ (2,571) ​ (25,728) ​

Goodwill and Identifiable Intan

Goodwill and Identifiable Intangible Assets	9 Months Ended
	Sep. 30, 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 and identified no impairment during the current year’s assessment. Goodwill and identifiable intangible assets (all considered indefinite lived) at September 30, 2020 and December 31, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 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	9 Months Ended
	Sep. 30, 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 $96.2 million at September 30, 2020 compared to the carrying value net of debt issuance costs of $95.0 million, which is listed under short-term notes payable in the consolidated balance sheet. ​ On October 20, 2020, we entered into a 364-day unsecured revolving credit facility (the “New Credit Facility”) with various lenders, which initially provides for borrowings of up to $100.0 million and may be expanded to $200.0 million. The New Credit Facility replaced the prior credit facility, which was set to terminate in October 2020. The covenants in the New Credit Facility are consistent with the covenants in the prior credit facility, including the required consolidated leverage ratio and the consolidated interest coverage ratio. ​

Income Tax Uncertainties

Income Tax Uncertainties	9 Months Ended
	Sep. 30, 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 September 30, 2020 and December 31, 2019, the Company’s consolidated balance sheets included unrecognized tax benefits, including penalties and interest, of $2.1 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	9 Months Ended
	Sep. 30, 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 retained 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. The Company is currently performing the administrative actions required to terminate the Pension Plan in a standard termination, as defined by the Pension Benefit Guaranty Corporation. ​ In connection with the termination of the Pension Plan, in July 2020, the Company contributed $3.7 million dollars to the Pension Plan. Payments were made in July 2020 from the Pension Plan to participants, beneficiaries and alternate payees that elected to receive a lump sum distribution and to the selected annuity provider that has assumed the liabilities of the Pension Plan. As part of the assumption of Pension Plan liabilities by the annuity provider, the Company relieved the pension liability on its balance sheet and recorded settlement losses in the amount of $1.3 million during the third quarter of 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 income on the Company’s consolidated statements of income. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Pension Benefits ​ Postretirement Benefits ​ Pension Benefits ​ Postretirement Benefits ​ ​ ​ Three months ended September 30, ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ Nine months ended September 30, ​ ​ ​ 2020 ​ 2019 ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ ​ 2020 ​ 2019 ​ ​ ​ ​ (in thousands) ​ ​ (in thousands) ​ Components of net periodic benefit cost: ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 439 1,537 ​ $ 4 9 ​ $ 3,071 4,610 $ 12 25 ​ Expected return on plan assets ​ (374) (1,579) ​ — — ​ (2,618) (4,736) — — ​ Actuarial gain amortization ​ — — ​ (67) (124) ​ — — (201) (371) ​ Settlement loss ​ ​ 1,272 ​ — ​ ​ — ​ — ​ ​ 1,272 ​ — ​ ​ — ​ — ​ Total ​ $ 1,337 ​ (42) ​ $ (63) ​ (115) ​ $ 1,725 ​ (126) ​ $ (189) ​ (346) ​ ​

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 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 ​ Nine months ended ​ ​ ​ September 30, ​ September 30, ​ ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ ​ ​ (in thousands, except per share amounts) ​ Net income attributable to Waddell & Reed Financial, Inc. $ 30,523 33,054 $ 77,333 99,056 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding, basic and diluted ​ 64,240 ​ 72,387 ​ 65,795 ​ 74,446 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share, basic and diluted ​ $ 0.48 ​ 0.46 ​ $ 1.18 ​ 1.33 ​ ​ Dividends ​ During the quarter, the Board of Directors declared a quarterly dividend on our Class A common stock in the amount of $0.25 per share with a November 2, 2020 payment date and an October 12, 2020 record date. The total dividend to be paid on November 2, 2020 is $15.6 million. ​ Common Stock Repurchases ​ The Board of Directors has authorized the repurchase of our Class A common stock in the open market and/or private purchases. The acquired shares may be used for corporate purposes, including issuing shares to employees in our stock-based compensation programs. ​ There were 2,617,108 shares and 2,480,019 shares repurchased in the open market or privately during the three months ended September 30, 2020 and 2019, respectively, which includes 19 shares repurchased from employees who tendered shares to cover income tax withholdings with respect to vesting of stock awards during the three months ended September 30, 2019. There were 7,892,913 shares and 6,849,238 shares repurchased in the open market or privately during the nine months ended September 30, 2020 and 2019, respectively, which includes 451,245 shares and 440,002 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 ​ The following tables summarize accumulated other comprehensive income activity for the three and nine months ended September 30, 2020 and September 30, 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended September 30, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) on ​ benefits ​ other ​ ​ AFS investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at June 30, 2020 $ 3,874 613 4,487 Other comprehensive loss before reclassification (371) ​ — (371) Amount reclassified from accumulated other comprehensive income (140) ​ (51) (191) Net current period other comprehensive loss (511) ​ (51) (562) Balance at September 30, 2020 ​ $ 3,363 562 3,925 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2019 $ 2,142 939 3,081 Other comprehensive income before reclassification 379 — 379 Amount reclassified from accumulated other comprehensive income (83) (94) (177) Net current period other comprehensive income (loss) 296 ​ (94) 202 Balance at September 30, 2019 ​ $ 2,438 845 3,283 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the nine months ended September 30, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) ​ benefits ​ other ​ ​ on investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at December 31, 2019 $ 2,521 713 3,234 Other comprehensive income before reclassification ​ 1,344 — 1,344 Amount reclassified from accumulated other comprehensive income ​ (502) (151) (653) Net current period other comprehensive income (loss) ​ 842 ​ (151) 691 Balance at September 30, 2020 ​ $ 3,363 562 3,925 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2018 $ (797) 1,128 331 Other comprehensive income before reclassification ​ ​ 3,413 ​ — ​ 3,413 Amount reclassified from accumulated other comprehensive income ​ (178) ​ (283) (461) Net current period other comprehensive income (loss) ​ 3,235 ​ (283) 2,952 Balance at September 30, 2019 ​ $ 2,438 845 3,283 ​ ​ Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the three months ended September 30, 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 ​ $ 184 (44) ​ 140 Investment and other income Amortization of postretirement benefits ​ ​ 67 (16) 51 Compensation and benefits Total ​ $ 251 (60) 191 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the three months ended September 30, 2019 ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ Reclassifications included in net income: ​ Gains on available for sale debt securities ​ $ 109 (26) ​ 83 Investment and other income Amortization of postretirement benefits ​ $ 124 (30) 94 Compensation and benefits Total ​ $ 233 (56) 177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the nine months ended September 30, 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 ​ $ 661 (159) 502 Investment and other income Amortization of postretirement benefits ​ ​ 201 (50) 151 Compensation and benefits Total ​ $ 862 (209) 653 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the nine months ended September 30, 2019 ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ Reclassifications included in net income: ​ Gains on available for sale debt securities ​ $ 234 (56) 178 Investment and other income Amortization of postretirement benefits ​ 371 (88) 283 Compensation and benefits Total ​ $ 605 (144) 461 ​ ​ ​

Leases

Leases	9 Months Ended
	Sep. 30, 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 September 30, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 2,903 $ 4,189 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 42 $ 80 Interest on lease liabilities ​ ​ 2 ​ 8 Total ​ $ 44 ​ $ 88 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 9,164 $ 14,472 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 149 $ 224 Interest on lease liabilities ​ ​ 15 ​ 23 Total ​ $ 164 ​ $ 247 ​ Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ Operating cash flows from operating leases ​ $ 9,106 $ 13,661 Operating cash flows from finance leases ​ 15 23 Financing cash flows from finance leases ​ ​ 185 ​ ​ 222 ​ ​ ​ ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 665 ​ ​ 2,410 Finance leases ​ ​ 10 ​ ​ 40 ​ Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ December 31, 2019 ​ ​ (in thousands, except lease term and discount rate) Operating Leases: ​ ​ Operating lease ROU assets (Other non-current assets) ​ $ 15,181 $ 23,457 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 7,403 ​ $ 10,479 Other non-current liabilities ​ ​ 9,632 ​ ​ 14,694 Total operating lease liabilities ​ $ 17,035 ​ $ 25,173 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases: ​ ​ ​ ​ ​ ​ Property and equipment, gross ​ $ 476 ​ $ 985 Accumulated depreciation ​ ​ (391) ​ ​ (737) Property and equipment, net ​ $ 85 ​ $ 248 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 65 ​ $ 203 Other non-current liabilities ​ ​ 13 ​ ​ 55 Total finance lease liabilities ​ $ 78 ​ $ 258 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 4 years ​ ​ 4 years Finance leases ​ ​ 1 year ​ ​ 1 year ​ ​ ​ ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 4.04% ​ ​ 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 nine months ended September 30, 2020) $ 2,413 ​ 28 2021 ​ ​ 6,669 ​ ​ 44 2022 ​ 2,563 ​ 10 2023 ​ 2,122 ​ — 2024 ​ ​ 2,090 ​ ​ — Thereafter ​ 2,613 ​ — Total lease payments ​ 18,470 ​ 82 Less imputed interest ​ ​ (1,435) ​ ​ (4) Total ​ $ 17,035 ​ 78 ​

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 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)	9 Months Ended
	Sep. 30, 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 September 30, 2020 and the results of operations and cash flows for the three and nine months ended September 30, 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. The nine months ended September 30, 2020 included asset impairment charges of $0.9 million on assets held for sale, which were recorded in general and administrative expenses in our consolidated statements of income. During the third quarter of 2020, the aviation equipment was sold. As of September 30, 2020, $3.8 million of buildings and $1.9 million of land that were held for sale were included in Property and equipment, net on our consolidated balance sheets. As of December 31, 2019, $3.1 million of equipment, $3.8 million of buildings and $1.9 million of land that were held for sale were included in Property and equipment, net on our consolidated balance sheets. The Company intends to actively pursue the sale of remaining assets held for sale at market prices as soon as reasonably possible.
Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract	Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ​ As of September 30, 2020, the Company had $5.3 million of capitalized implementation costs for hosting arrangements with $215 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 our asset management and wealth management businesses. Amortization costs are recorded on a straight-line basis over the term of the hosting arrangement agreement.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 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 ​ Nine months ended ​ ​ ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ ​ ​ ​ (in thousands) ​ (in thousands) ​ Investment management fees: ​ ​ ​ Funds ​ $ 103,443 107,926 298,712 322,678 ​ Institutional ​ 3,174 3,880 8,948 11,760 ​ Total investment management fees ​ $ 106,617 111,806 307,660 334,438 ​ Underwriting and distribution fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaffiliated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service and distribution fees ​ $ 14,623 ​ 16,286 ​ 43,569 ​ 49,366 ​ Sales commissions ​ ​ 223 ​ 364 ​ 1,047 ​ 1,300 ​ Other revenues ​ ​ 82 ​ 67 ​ 308 ​ 242 ​ Total unaffiliated distribution fees ​ $ 14,928 ​ 16,717 ​ 44,924 ​ 50,908 ​ Wealth Management ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Advisory fees ​ $ 82,591 ​ 73,356 ​ 232,243 ​ 208,806 ​ Service and distribution fees ​ ​ 15,305 ​ 16,143 ​ 43,494 ​ 47,589 ​ Sales commissions ​ ​ 17,847 ​ 20,544 ​ 53,538 ​ 60,959 ​ Other revenues ​ ​ 8,785 ​ 9,027 ​ 25,833 ​ 27,265 ​ Total wealth management distribution fees ​ ​ 124,528 ​ 119,070 ​ 355,108 ​ 344,619 ​ Total distribution fees ​ $ 139,456 ​ 135,787 ​ 400,032 ​ 395,527 ​ Shareholder service fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholder service fees ​ $ 21,597 23,087 63,745 70,279 ​ ​ ​ ​ ​ ​ ​ ​ Total revenues ​ $ 267,670 270,680 771,437 800,244 ​

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2020
Investment Securities
Schedule of investment securities	Investment securities at September 30, 2020 and December 31, 2019 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2020 2019 ​ ​ ​ ​ (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 9,714 ​ 1,977 ​ Corporate bonds ​ ​ 180,203 ​ 254,291 ​ Total available for sale securities ​ 189,917 ​ 256,268 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 18,774 ​ 1,977 ​ Corporate bonds ​ 70,984 ​ 84,920 ​ U.S. Treasury bills ​ ​ — ​ 5,979 ​ Mortgage-backed securities ​ 1 ​ 4 ​ Term loans ​ ​ 44,994 ​ 44,268 ​ Consolidated sponsored funds ​ — ​ 43,567 ​ Total trading securities ​ 134,753 ​ 180,715 ​ Equity securities: ​ ​ ​ ​ ​ ​ Common stock ​ 34,206 ​ 34,945 ​ Sponsored funds ​ ​ 149,857 ​ 178,386 ​ Sponsored privately offered funds ​ 924 ​ 845 ​ Total equity securities ​ ​ 184,987 ​ 214,176 ​ Equity method securities: ​ ​ ​ ​ ​ ​ Sponsored funds ​ 69,687 ​ 37,187 ​ Total securities ​ $ 579,344 ​ 688,346 ​
Summary of maturities of securities held	Commercial paper and corporate bonds accounted for as available for sale and held as of September 30, 2020 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost Fair value ​ (in thousands) Within one year $ 64,321 ​ 65,057 After one year but within five years ​ 121,170 ​ 124,860 ​ $ 185,491 ​ 189,917 ​ Commercial paper, corporate bonds, mortgage-backed securities and term loans accounted for as trading and held as of September 30, 2020 mature as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value ​ ​ ​ (in thousands) Within one year ​ ​ $ 29,580 After one year but within five years ​ ​ ​ 83,508 After five years but within 10 years ​ ​ ​ 21,665 ​ ​ ​ $ 134,753
Summary of the gross unrealized gains (losses) related to securities	The following is a summary of the gross unrealized gains (losses) related to securities classified as available for sale at September 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Unrealized Unrealized ​ ​ ​ cost ​ gains ​ losses ​ Fair value (in thousands) ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 9,720 ​ 3 ​ (9) ​ 9,714 ​ Corporate bonds ​ ​ 175,771 4,432 ​ — 180,203 ​ ​ ​ $ 185,491 4,435 (9) 189,917 ​ ​ 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 September 30, 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) Commercial paper ​ $ 2,420 ​ (9) ​ — ​ — ​ 2,420 ​ (9) ​ 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 September 30, 2020 and December 31, 2019, as well as the Company’s net interest in these funds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ 2020 ​ 2019 ​ (in thousands) Cash $ — ​ ​ 1,530 Investments ​ — ​ 43,567 Other assets ​ — ​ 483 Other liabilities ​ — ​ — Redeemable noncontrolling interests ​ — ​ (19,205) Net interest in consolidated sponsored funds $ — ​ ​ 26,375
Schedule of fair value of investment securities	The following tables summarize our investment securities as of September 30, 2020 and December 31, 2019 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 Level 1 Level 2 Level 3 Other Assets Held at Net Asset Value ​ Total ​ ​ (in thousands) Cash equivalents: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 45,007 ​ — ​ — ​ — ​ 45,007 ​ Commercial paper ​ ​ — ​ 23,316 ​ — ​ — ​ 23,316 ​ Total cash equivalents ​ $ 45,007 ​ 23,316 ​ — ​ — ​ 68,323 ​ Available for sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ — ​ 9,714 ​ — ​ — ​ 9,714 ​ Corporate bonds ​ $ — ​ 180,203 ​ — ​ — ​ 180,203 ​ Trading debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ — ​ 18,774 ​ — ​ — ​ 18,774 ​ Corporate bonds ​ ​ — ​ 70,984 ​ — ​ ​ ​ 70,984 ​ Mortgage-backed securities ​ — 1 — — ​ 1 ​ Term loans ​ — 43,288 1,706 — ​ 44,994 ​ Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock ​ ​ 34,206 ​ — ​ — ​ — ​ 34,206 ​ Sponsored funds ​ ​ 149,857 ​ — ​ — ​ — ​ 149,857 ​ Sponsored privately offered funds measured at net asset value (2) ​ ​ — ​ — ​ — ​ 924 ​ 924 ​ Equity method securities: (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sponsored funds ​ ​ 69,687 ​ — ​ — ​ — ​ 69,687 ​ Total investment securities ​ $ 253,750 ​ 322,964 ​ 1,706 ​ 924 ​ 579,344 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 nine months ended September 30, 2020: ​ ​ ​ ​ ​ ​ For the nine months ended ​ ​ September 30, 2020 ​ ​ (in thousands) Level 3 assets at December 31, 2019 ​ $ 3,903 Additions ​ 6,501 Transfers in to level 3 ​ ​ 11,086 Transfers out of level 3 ​ ​ (15,622) Losses in Investment and other income ​ (1,026) Redemptions/Paydowns ​ ​ (3,136) Level 3 assets at September 30, 2020 ​ $ 1,706 ​ ​ ​ ​ Change in unrealized losses for Level 3 assets held at ​ $ (9)

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2020 and December 31, 2019 and is calculated based on Level 2 inputs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ Balance sheet ​ ​ 2020 ​ ​ 2019 ​ location Fair value Fair value ​ ​ ​ (in thousands) Total return swap contracts Prepaid expenses and other current assets ​ $ 2,017 ​ ​ — Total return swap contracts ​ Other current liabilities ​ ​ — ​ ​ 3,990 Net total return swap asset (liability) ​ ​ $ 2,017 ​ ​ (3,990)
Schedule of net (losses) gains recognized in income of derivative financial instrument	The following is a summary of net (losses) gains recognized in income for the three and nine months ended September 30, 2020 and September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Nine months ended ​ ​ Income statement ​ September 30, ​ September 30, ​ location ​ 2020 2019 ​ 2020 ​ 2019 ​ ​ ​ (in thousands) ​ (in thousands) Total return swap contracts Investment and other income $ (14,191) 135 ​ $ (2,571) ​ (25,728)

Goodwill and Identifiable Int_2

Goodwill and Identifiable Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 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 and identified no impairment during the current year’s assessment. Goodwill and identifiable intangible assets (all considered indefinite lived) at September 30, 2020 and December 31, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 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)	9 Months Ended
	Sep. 30, 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 income on the Company’s consolidated statements of income. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Pension Benefits ​ Postretirement Benefits ​ Pension Benefits ​ Postretirement Benefits ​ ​ ​ Three months ended September 30, ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ ​ Nine months ended September 30, ​ ​ ​ 2020 ​ 2019 ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ ​ 2020 ​ 2019 ​ ​ ​ ​ (in thousands) ​ ​ (in thousands) ​ Components of net periodic benefit cost: ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 439 1,537 ​ $ 4 9 ​ $ 3,071 4,610 $ 12 25 ​ Expected return on plan assets ​ (374) (1,579) ​ — — ​ (2,618) (4,736) — — ​ Actuarial gain amortization ​ — — ​ (67) (124) ​ — — (201) (371) ​ Settlement loss ​ ​ 1,272 ​ — ​ ​ — ​ — ​ ​ 1,272 ​ — ​ ​ — ​ — ​ Total ​ $ 1,337 ​ (42) ​ $ (63) ​ (115) ​ $ 1,725 ​ (126) ​ $ (189) ​ (346) ​

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 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 ​ Nine months ended ​ ​ ​ September 30, ​ September 30, ​ ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ ​ ​ (in thousands, except per share amounts) ​ Net income attributable to Waddell & Reed Financial, Inc. $ 30,523 33,054 $ 77,333 99,056 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding, basic and diluted ​ 64,240 ​ 72,387 ​ 65,795 ​ 74,446 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share, basic and diluted ​ $ 0.48 ​ 0.46 ​ $ 1.18 ​ 1.33 ​
Summary of accumulated other comprehensive income (loss) activity	The following tables summarize accumulated other comprehensive income activity for the three and nine months ended September 30, 2020 and September 30, 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended September 30, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) on ​ benefits ​ other ​ ​ AFS investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at June 30, 2020 $ 3,874 613 4,487 Other comprehensive loss before reclassification (371) ​ — (371) Amount reclassified from accumulated other comprehensive income (140) ​ (51) (191) Net current period other comprehensive loss (511) ​ (51) (562) Balance at September 30, 2020 ​ $ 3,363 562 3,925 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2019 $ 2,142 939 3,081 Other comprehensive income before reclassification 379 — 379 Amount reclassified from accumulated other comprehensive income (83) (94) (177) Net current period other comprehensive income (loss) 296 ​ (94) 202 Balance at September 30, 2019 ​ $ 2,438 845 3,283 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the nine months ended September 30, ​ ​ ​ ​ ​ ​ Total ​ ​ Unrealized ​ Postretirement ​ accumulated ​ ​ gains (losses) ​ benefits ​ other ​ ​ on investment ​ unrealized ​ comprehensive ​ ​ securities ​ gains (losses) ​ income (loss) ​ ​ (in thousands) Balance at December 31, 2019 $ 2,521 713 3,234 Other comprehensive income before reclassification ​ 1,344 — 1,344 Amount reclassified from accumulated other comprehensive income ​ (502) (151) (653) Net current period other comprehensive income (loss) ​ 842 ​ (151) 691 Balance at September 30, 2020 ​ $ 3,363 562 3,925 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2018 $ (797) 1,128 331 Other comprehensive income before reclassification ​ ​ 3,413 ​ — ​ 3,413 Amount reclassified from accumulated other comprehensive income ​ (178) ​ (283) (461) Net current period other comprehensive income (loss) ​ 3,235 ​ (283) 2,952 Balance at September 30, 2019 ​ $ 2,438 845 3,283
Summary of reclassifications from accumulated other comprehensive income (loss) and included in net income	Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the three months ended September 30, 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 ​ $ 184 (44) ​ 140 Investment and other income Amortization of postretirement benefits ​ ​ 67 (16) 51 Compensation and benefits Total ​ $ 251 (60) 191 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the three months ended September 30, 2019 ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ Reclassifications included in net income: ​ Gains on available for sale debt securities ​ $ 109 (26) ​ 83 Investment and other income Amortization of postretirement benefits ​ $ 124 (30) 94 Compensation and benefits Total ​ $ 233 (56) 177 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the nine months ended September 30, 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 ​ $ 661 (159) 502 Investment and other income Amortization of postretirement benefits ​ ​ 201 (50) 151 Compensation and benefits Total ​ $ 862 (209) 653 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax ​ ​ ​ ​ For the nine months ended September 30, 2019 ​ Pre-tax ​ expense ​ Net of tax ​ Statement of income line item ​ ​ (in thousands) ​ ​ Reclassifications included in net income: ​ Gains on available for sale debt securities ​ $ 234 (56) 178 Investment and other income Amortization of postretirement benefits ​ 371 (88) 283 Compensation and benefits Total ​ $ 605 (144) 461 ​ ​

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases
Schedule of components of lease expense	The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 2,903 $ 4,189 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 42 $ 80 Interest on lease liabilities ​ ​ 2 ​ 8 Total ​ $ 44 ​ $ 88 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Operating Lease Cost ​ $ 9,164 $ 14,472 ​ ​ ​ ​ ​ ​ ​ Finance Lease Cost: ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ $ 149 $ 224 Interest on lease liabilities ​ ​ 15 ​ 23 Total ​ $ 164 ​ $ 247
Schedule of supplemental cash flow information	Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, ​ ​ 2020 ​ 2019 ​ ​ (in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ Operating cash flows from operating leases ​ $ 9,106 $ 13,661 Operating cash flows from finance leases ​ 15 23 Financing cash flows from finance leases ​ ​ 185 ​ ​ 222 ​ ​ ​ ​ ​ ​ ​ ROU assets obtained in exchange for lease obligations: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 665 ​ ​ 2,410 Finance leases ​ ​ 10 ​ ​ 40
Schedule of supplemental balance sheet information	Supplemental balance sheet information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ December 31, 2019 ​ ​ (in thousands, except lease term and discount rate) Operating Leases: ​ ​ Operating lease ROU assets (Other non-current assets) ​ $ 15,181 $ 23,457 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 7,403 ​ $ 10,479 Other non-current liabilities ​ ​ 9,632 ​ ​ 14,694 Total operating lease liabilities ​ $ 17,035 ​ $ 25,173 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases: ​ ​ ​ ​ ​ ​ Property and equipment, gross ​ $ 476 ​ $ 985 Accumulated depreciation ​ ​ (391) ​ ​ (737) Property and equipment, net ​ $ 85 ​ $ 248 ​ ​ ​ ​ ​ ​ ​ Other current liabilities ​ $ 65 ​ $ 203 Other non-current liabilities ​ ​ 13 ​ ​ 55 Total finance lease liabilities ​ $ 78 ​ $ 258 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 4 years ​ ​ 4 years Finance leases ​ ​ 1 year ​ ​ 1 year ​ ​ ​ ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 4.04% ​ ​ 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 nine months ended September 30, 2020) $ 2,413 ​ 28 2021 ​ ​ 6,669 ​ ​ 44 2022 ​ 2,563 ​ 10 2023 ​ 2,122 ​ — 2024 ​ ​ 2,090 ​ ​ — Thereafter ​ 2,613 ​ — Total lease payments ​ 18,470 ​ 82 Less imputed interest ​ ​ (1,435) ​ ​ (4) Total ​ $ 17,035 ​ 78
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 nine months ended September 30, 2020) $ 2,413 ​ 28 2021 ​ ​ 6,669 ​ ​ 44 2022 ​ 2,563 ​ 10 2023 ​ 2,122 ​ — 2024 ​ ​ 2,090 ​ ​ — Thereafter ​ 2,613 ​ — Total lease payments ​ 18,470 ​ 82 Less imputed interest ​ ​ (1,435) ​ ​ (4) Total ​ $ 17,035 ​ 78

Description of Business and S_3

Description of Business and Significant Accounting Policies (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Assets under management	$ 67,900,000
Impairment on assets held for sale	900
Assets held for sale	27,213	$ 34,726
Capitalized implementation costs for hosting arrangements	5,300
Accumulated amortization of hosting arrangement	215
Equipment
Assets held for sale		3,100
Buildings
Assets held for sale	3,800	3,800
Land
Assets held for sale	$ 1,900	$ 1,900

New Accounting Guidance (Detail

New Accounting Guidance (Details)	Sep. 30, 2020
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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue Recognition
Total Revenues	$ 267,670	$ 270,680	$ 771,437	$ 800,244
Investment management fees
Revenue Recognition
Total Revenues	106,617	111,806	307,660	334,438
Funds
Revenue Recognition
Total Revenues	103,443	107,926	298,712	322,678
Institutional
Revenue Recognition
Total Revenues	3,174	3,880	8,948	11,760
Underwriting and distribution fees
Revenue Recognition
Total Revenues	139,456	135,787	400,032	395,527
Unaffiliated
Revenue Recognition
Total Revenues	14,928	16,717	44,924	50,908
Unaffiliated service and distribution fees
Revenue Recognition
Total Revenues	14,623	16,286	43,569	49,366
Unaffiliated sales commissions
Revenue Recognition
Total Revenues	223	364	1,047	1,300
Unaffiliated Other revenues
Revenue Recognition
Total Revenues	82	67	308	242
Wealth Management
Revenue Recognition
Total Revenues	124,528	119,070	355,108	344,619
Wealth Management Advisor Fees
Revenue Recognition
Total Revenues	82,591	73,356	232,243	208,806
Wealth Management Service and distribution fees
Revenue Recognition
Total Revenues	15,305	16,143	43,494	47,589
Wealth Management Sales commissions
Revenue Recognition
Total Revenues	17,847	20,544	53,538	60,959
Wealth Management Other revenues
Revenue Recognition
Total Revenues	8,785	9,027	25,833	27,265
Shareholder service fees
Revenue Recognition
Total Revenues	$ 21,597	$ 23,087	$ 63,745	$ 70,279

Investment Securities - Investm

Investment Securities - Investment securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available for sale securities:
Available for sale securities	$ 189,917	$ 256,268
Trading debt securities:
Trading debt securities	134,753	180,715
Equity securities:
Equity securities	184,987	214,176
Equity method securities:
Total investment securities	579,344	688,346
Commercial paper
Available for sale securities:
Available for sale securities	9,714	1,977
Trading debt securities:
Trading debt securities	18,774	1,977
Corporate bonds
Available for sale securities:
Available for sale securities	180,203	254,291
Trading debt securities:
Trading debt securities	70,984	84,920
U.S. treasury bills
Trading debt securities:
Trading debt securities		5,979
Mortgage-backed securities
Trading debt securities:
Trading debt securities	1	4
Term loans
Trading debt securities:
Trading debt securities	44,994	44,268
Consolidated Sponsored Funds
Trading debt securities:
Trading debt securities		43,567
Common Stock
Equity securities:
Equity securities	34,206	34,945
Sponsored funds
Equity securities:
Equity securities	149,857	178,386
Equity method securities:
Equity method securities	69,687	37,187
Sponsored privately offered funds
Equity securities:
Equity securities	$ 924	$ 845

Investment Securities - Maturit

Investment Securities - Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost
Within one year	$ 64,321
After one year but within five years	121,170
Amortized Cost	185,491	$ 252,958
Fair value
Within one year	65,057
After one year but within five years	124,860
Total fair value	189,917	$ 256,268
Fair value
Within one year	29,580
After one year but within five years	83,508
After five years but within 10 years	21,665
Total fair value	$ 134,753

Investment Securities - Inves_2

Investment Securities - Investment securities and summary of the gains (losses) related to securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available for sale securities:
Amortized Cost	$ 185,491	$ 252,958
Unrealized gains	4,435	3,315
Unrealized losses	(9)	(5)
Fair value	189,917	256,268
Commercial paper
Available for sale securities:
Amortized Cost	9,720	1,976
Unrealized gains	3	1
Unrealized losses	(9)
Fair value	9,714	1,977
Corporate bonds
Available for sale securities:
Amortized Cost	175,771	250,982
Unrealized gains	4,432	3,314
Unrealized losses		(5)
Fair value	$ 180,203	$ 254,291

Investment Securities - Availab

Investment Securities - Available for sale sponsored funds with fair values below carrying values (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)security	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)security	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Unrealized losses
Securities in an unrealized loss position | security	1		1
Net unrealized gains (losses) on equity securities	$ 7,300	$ (200)	$ (500)	$ 17,900
Commercial paper
Fair value
Less than 12 months	2,420		2,420
Total fair value	2,420		2,420
Unrealized losses
Less than 12 months	(9)		(9)
Total unrealized losses	$ (9)		$ (9)
Corporate bonds
Fair value
Less than 12 months					$ 4,538
12 months or longer					8,056
Total fair value					12,594
Unrealized losses
12 months or longer					(5)
Total unrealized losses					$ (5)

Investment Securities - Consoli

Investment Securities - Consolidated Sponsored Funds (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investment Securities
Cash	$ 165,259	$ 151,815
Redeemable noncontrolling interests		(19,205)
Consolidated Sponsored Funds
Investment Securities
Cash		1,530
Investments		43,567
Other assets		483
Redeemable noncontrolling interests		(19,205)
Net interest in consolidated sponsored funds		$ 26,375

Investment Securities - Fair va

Investment Securities - Fair value of investment securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair value of investments
Cash equivalents	$ 68,323	$ 42,346
Available for sale securities	189,917	256,268
Trading debt securities	134,753	180,715
Equity securities	184,987	214,176
Total investment securities	579,344	688,346
Money market funds
Fair value of investments
Cash equivalents	45,007	4,203
Commercial paper
Fair value of investments
Cash equivalents	23,316	38,143
Available for sale securities	9,714	1,977
Trading debt securities	18,774	1,977
Corporate bonds
Fair value of investments
Available for sale securities	180,203	254,291
Trading debt securities	70,984	84,920
U.S. treasury bills
Fair value of investments
Trading debt securities		5,979
Mortgage-backed securities
Fair value of investments
Trading debt securities	1	4
Term loans
Fair value of investments
Trading debt securities	44,994	44,268
Consolidated Sponsored Funds
Fair value of investments
Trading debt securities		43,567
Common Stock
Fair value of investments
Equity securities	34,206	34,945
Sponsored funds
Fair value of investments
Equity securities	149,857	178,386
Equity method securities	69,687	37,187
Sponsored privately offered funds
Fair value of investments
Equity securities	924	845
Level 1
Fair value of investments
Cash equivalents	45,007	4,203
Total investment securities	253,750	250,515
Level 1 | Money market funds
Fair value of investments
Cash equivalents	45,007	4,203
Level 1 | Common Stock
Fair value of investments
Equity securities	34,206	34,942
Level 1 | Sponsored funds
Fair value of investments
Equity securities	149,857	178,386
Equity method securities	69,687	37,187
Level 2
Fair value of investments
Cash equivalents	23,316	38,143
Total investment securities	322,964	433,083
Level 2 | Commercial paper
Fair value of investments
Cash equivalents	23,316	38,143
Available for sale securities	9,714	1,977
Trading debt securities	18,774	1,977
Level 2 | Corporate bonds
Fair value of investments
Available for sale securities	180,203	254,291
Trading debt securities	70,984	84,920
Level 2 | U.S. treasury bills
Fair value of investments
Trading debt securities		5,979
Level 2 | Mortgage-backed securities
Fair value of investments
Trading debt securities	1	4
Level 2 | Term loans
Fair value of investments
Trading debt securities	43,288	40,368
Level 2 | Consolidated Sponsored Funds
Fair value of investments
Trading debt securities		43,567
Level 3
Fair value of investments
Total investment securities	1,706	3,903
Level 3 | Term loans
Fair value of investments
Trading debt securities	1,706	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	924	845
Other Assets Held at Net Value | Sponsored privately offered funds
Fair value of investments
Equity securities	$ 924	$ 845

Investment Securities - Inves_3

Investment Securities - Investment category (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Level 3 assets at beginning of period	$ 3,903
Additions	6,501
Transfers in to level 3	11,086
Transfers out of level 3	(15,622)
Losses in Investment and other income	$ (1,026)
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	$ (3,136)
Level 3 assets at end of period	1,706
Change in unrealized gains (losses) for Level 3 assets held	$ (9)

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - Not designated as a hedge - Total return swap contracts $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)contract	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)contract	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)contract
Derivative Financial Instruments
Number of contracts | contract	10		10		14
Notional value	$ 271,200		$ 271,200		$ 228,200
Cash collateral posted by counterparties	3,200		3,200
Cash collateral with the counterparties					3,700
Level 2
Derivative Financial Instruments
Net total return swap (liability) asset	2,017		2,017		(3,990)
Investment and other income (loss) | Level 2
Derivative Financial Instruments
Net (losses) gains recognized in income	(14,191)	$ 135	(2,571)	$ (25,728)
Prepaid expenses and other current assets | Level 2
Derivative Financial Instruments
Fair value - assets	$ 2,017		$ 2,017
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	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Goodwill and Identifiable Intangible Assets
Impairment of goodwill	$ 0
Goodwill	106,970	$ 106,970
Mutual fund management advisory contracts	38,699	38,699
Other	200	200
Total identifiable intangible assets	38,899	38,899
Total goodwill and identifiable intangible assets	$ 145,869	$ 145,869

Indebtedness (Details)

Indebtedness (Details) - USD ($) $ in Thousands	Oct. 20, 2020	Sep. 30, 2020
Indebtedness
Short-term notes payable		$ 94,980
Credit Facility | Subsequent Event
Indebtedness
Maximum borrowing capacity	$ 100,000
Amount that borrowing capacity can be expanded upon entity's request	$ 200,000
Senior 5.75% unsecured notes due, 2021 ("Series B Notes")
Indebtedness
Fair value of outstanding indebtedness		96,200
Short-term notes payable		$ 95,000

Income Tax Uncertainties (Detai

Income Tax Uncertainties (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Income Tax Uncertainties
Unrecognized tax benefits, including penalties and interest that if recognized would impact effective tax rate	$ 2.1	$ 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	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Pension Benefits
Pension Plan and Postretirement Benefits Other than Pension
Final number of years of employee's compensation to determine the benefits payable				10 years
Employer contributions	$ 3,700
Components of net periodic benefit cost:
Interest cost		$ 439	$ 1,537	$ 3,071	$ 4,610
Expected return on plan assets		(374)	(1,579)	(2,618)	(4,736)
Settlement loss		1,272		1,272
Total		1,337	(42)	$ 1,725	(126)
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	9	$ 12	25
Actuarial gain amortization		(67)	(124)	(201)	(371)
Total		$ (63)	$ (115)	$ (189)	$ (346)

Stockholders' Equity - Earnings

Stockholders' Equity - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Components of basic and diluted earnings per share
Net income attributable to Waddell & Reed Financial, Inc.	$ 30,523	$ 33,054	$ 77,333	$ 99,056
Weighted average shares outstanding - basic and diluted	64,240,000	72,387,000	65,795,000	74,446,000
Earnings per share:
Earnings per share, basic and diluted (in dollars per share)	$ 0.48	$ 0.46	$ 1.18	$ 1.33
Dividends
Dividends declared (in dollars per share)	$ 0.25	$ 0.25	$ 0.75	$ 0.75
Dividends payable to stockholders	$ 15,600		$ 15,600
Common stock repurchases
Shares repurchased in the open market or privately	2,617,108	2,480,019	7,892,913	6,849,238
Shares repurchased from employees to cover income tax withholdings		19	451,245	440,002

Stockholders' Equity - Accumula

Stockholders' Equity - Accumulated other comprehensive income (loss) activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	$ 766,703	$ 856,656	$ 808,897	$ 883,450
Balance at the end of the period	747,511	839,530	747,511	839,530
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	4,487	3,081	3,234	331
Other comprehensive income (loss) before reclassification	(371)	379	1,344	3,413
Amount reclassified from accumulated other comprehensive income	(191)	(177)	(653)	(461)
Net current period other comprehensive income (loss)	(562)	202	691	2,952
Balance at the end of the period	3,925	3,283	3,925	3,283
Unrealized gains (losses) on AFS investment securities
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	3,874	2,142	2,521	(797)
Other comprehensive income (loss) before reclassification	(371)	379	1,344	3,413
Amount reclassified from accumulated other comprehensive income	(140)	(83)	(502)	(178)
Net current period other comprehensive income (loss)	(511)	296	842	3,235
Balance at the end of the period	3,363	2,438	3,363	2,438
Postretirement benefits unrealized gains (losses)
AOCI Attributable to Parent, Net of Tax
Balance at the beginning of the period	613	939	713	1,128
Amount reclassified from accumulated other comprehensive income	(51)	(94)	(151)	(283)
Net current period other comprehensive income (loss)	(51)	(94)	(151)	(283)
Balance at the end of the period	$ 562	$ 845	$ 562	$ 845

Stockholders' Equity - Reclassi

Stockholders' Equity - Reclassifications from accumulated other comprehensive income (loss) and included in net income (Details) - Reclassifications from accumulated other comprehensive income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Reclassifications included in net income:
Pre-tax	$ 251	$ 233	$ 862	$ 605
Tax (expense) benefit	(60)	(56)	(209)	(144)
Net of tax	191	177	653	461
Gains (losses) on available for sale debt securities | Investment and other income (loss)
Reclassifications included in net income:
Pre-tax	184	109	661	234
Tax (expense) benefit	(44)	(26)	(159)	(56)
Net of tax	140	83	502	178
Postretirement benefits unrealized gains (losses) | Compensation and benefits
Reclassifications included in net income:
Pre-tax	67	124	201	371
Tax (expense) benefit	(16)	(30)	(50)	(88)
Net of tax	$ 51	$ 94	$ 151	$ 283

Leases - Narrative (Details)

Leases - Narrative (Details) - ft²	9 Months Ended
	Sep. 30, 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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Components of lease expense
Operating Lease Cost	$ 2,903	$ 4,189	$ 9,164	$ 14,472
Amortization of ROU assets	42	80	149	224
Interest on lease liabilities	2	8	15	23
Total	$ 44	$ 88	$ 164	$ 247

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Leases
Operating cash flows from operating leases	$ 9,106	$ 13,661
Operating cash flows from finance leases	15	23
Financing cash flows from finance leases	185	222
ROU assets obtained in exchange for lease obligations - Operating leases	665	2,410
ROU assets obtained in exchange for lease obligations - Finance leases	$ 10	$ 40

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases
Operating lease ROU assets	$ 15,181	$ 23,457
Financial position	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Operating lease liabilities - current	$ 7,403	$ 10,479
Financial position	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Operating lease liabilities - noncurrent	$ 9,632	$ 14,694
Financial position	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Total Operating lease liabilities	$ 17,035	$ 25,173
Financing Lease ROU assets	$ 85	$ 248
Financial position	us-gaap:PropertyPlantAndEquipmentNet	us-gaap:PropertyPlantAndEquipmentNet
Finance lease liabilities - current	$ 65	$ 203
Financial position	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Finance lease liabilities - noncurrent	$ 13	$ 55
Financial position	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Finance lease liabilities	$ 78	$ 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	4.04%	4.32%
Weighted average discount rate - Financing leases	6.00%	6.00%
Finance lease assets
Leases
Property and equipment, gross	$ 476	$ 985
Accumulated depreciation	$ (391)	$ (737)

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Operating Leases maturities:
2020 (excluding the nine months ended September 30, 2020)	$ 2,413
2021	6,669
2022	2,563
2023	2,122
2024	2,090
Thereafter	2,613
Total lease payments	18,470
Less imputed interest	(1,435)
Total	17,035	$ 25,173
Finance Leases maturities:
2020 (excluding the nine months ended September 30, 2020)	28
2021	44
2022	10
Total lease payments	82
Less imputed interest	(4)
Total	$ 78	$ 258