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Stockholders' Equity

3 Months Ended

Mar. 31, 2020

Stockholders' Equity

Stockholders' Equity

10.

Stockholders’ Equity

Earnings per Share

The components of basic and diluted earnings per share were as follows:


		Three months ended
		March 31,
		2020			2019

Net income attributable to Waddell & Reed Financial, Inc.		$	21,986		32,053

Weighted average shares outstanding, basic and diluted			67,675		76,299

Earnings per share, basic and diluted		$	0.32		0.42

Dividends

During the quarter, the Board of Directors declared a quarterly dividend on our Class A common stock in the amount of $0.25 per share with a May 1, 2020 payment date and an April 10, 2020 record date. The total dividend paid on May 1, 2020 was $16.5 million.

Common Stock Repurchases

The Board of Directors has authorized the repurchase of our Class A common stock in the open market and/or private purchases. The acquired shares may be used for corporate purposes, including issuing shares to employees in our stock-based compensation programs.

There were 3,807,438 shares and 2,226,325 shares repurchased in the open market or privately during the three months ended March 31, 2020 and 2019, respectively, which includes 231,393 shares and 149,073 shares, respectively, repurchased from employees who tendered shares to cover income tax withholdings with respect to vesting of stock awards during these two reporting periods.

Accumulated Other Comprehensive Income (Loss)

The following tables summarize accumulated other comprehensive income (loss) activity for the three months ended March 31, 2020 and March 31, 2019.


		For the three months ended March 31,
							Total
		Unrealized			Postretirement		accumulated
		gains (losses) on			benefits		other
		AFS investment			unrealized		comprehensive
		securities			gains (losses)		income (loss)
		(in thousands)
Balance at December 31, 2019		$	2,521		713		3,234
Other comprehensive loss before reclassification			(2,228)		—		(2,228)
Amount reclassified from accumulated other comprehensive income (loss)			(202)		(49)		(251)
Net current period other comprehensive loss			(2,430)		(49)		(2,479)
Balance at March 31, 2020		$	91		664		755


Balance at December 31, 2018		$	(797)		1,128		331
Other comprehensive income before reclassification			1,753		—		1,753
Amount reclassified from accumulated other comprehensive income (loss)			(95)		(94)		(189)
Net current period other comprehensive income (loss)			1,658		(94)		1,564
Balance at March 31, 2019		$	861		1,034		1,895

Reclassifications from accumulated other comprehensive income (loss) and included in net income are summarized in the tables that follow.


					Tax
For the three months ended March 31, 2020		Pre-tax			expense		Net of tax		Statement of income line item
		(in thousands)
Reclassifications included in net income:
Gains on available for sale debt securities		$	266		(64)		202		Investment and other (loss) income
Amortization of postretirement benefits			67		(18)		49		Compensation and benefits
Total		$	333		(82)		251



					Tax
For the three months ended March 31, 2019		Pre-tax			expense		Net of tax		Statement of income line item
		(in thousands)
Reclassifications included in net income:
Gains on available for sale debt securities		$	125		(30)		95		Investment and other (loss) income
Amortization of postretirement benefits			124		(30)		94		Compensation and benefits
Total		$	249		(60)		189

The combined disclosure used to capture the disclosure pertaining to an entity's earnings per share and disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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