Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 |
Document and Entity Information | |||
Entity Registrant Name | WADDELL & REED FINANCIAL INC | ||
Entity Central Index Key | 1052100 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $5.13 | ||
Entity Common Stock, Shares Outstanding | 83,564,556 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Cash and cash equivalents | $566,621 | $487,845 |
Cash and cash equivalents - restricted | 76,595 | 121,419 |
Investment securities | 243,283 | 201,348 |
Receivables: | ||
Funds and separate accounts | 39,110 | 36,467 |
Customers and other | 216,843 | 141,763 |
Deferred income taxes | 7,454 | 7,654 |
Income taxes receivable | 7,747 | 419 |
Prepaid expenses and other current assets | 14,980 | 9,410 |
Total current assets | 1,172,633 | 1,006,325 |
Property and equipment, net | 92,304 | 72,638 |
Deferred sales commissions, net | 56,472 | 79,894 |
Goodwill and identifiable intangible assets | 158,123 | 161,969 |
Deferred income taxes | 20,036 | 3,839 |
Other non-current assets | 12,298 | 12,300 |
Total assets | 1,511,866 | 1,336,965 |
Liabilities: | ||
Accounts payable | 32,263 | 18,821 |
Payable to investment companies for securities | 129,633 | 214,085 |
Payable to third party brokers | 67,954 | 59,756 |
Payable to customers | 110,399 | 8,664 |
Accrued compensation | 67,574 | 58,677 |
Other current liabilities | 55,143 | 59,726 |
Total current liabilities | 462,966 | 419,729 |
Long-term debt | 190,000 | 190,000 |
Accrued pension and postretirement costs | 45,936 | 13,333 |
Other non-current liabilities | 26,880 | 26,561 |
Total liabilities | 725,782 | 649,623 |
Commitments and contingencies | ||
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; 83,654 shares outstanding (85,236 at December 31, 2013) | 997 | 997 |
Additional paid-in capital | 318,636 | 267,406 |
Retained earnings | 1,041,909 | 850,600 |
Cost of 16,047 common shares in treasury (14,465 at December 31, 2013) | -525,015 | -415,802 |
Accumulated other comprehensive loss | -50,443 | -15,859 |
Total stockholders' equity | 786,084 | 687,342 |
Total liabilities and stockholders' equity | $1,511,866 | $1,336,965 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock-par value (in dollars per share) | $1 | $1 |
Preferred stock-shares authorized | 5,000,000 | 5,000,000 |
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 | 250,000,000 | 250,000,000 |
Class A Common stock-shares issued | 99,701,000 | 99,701,000 |
Class A Common stock-shares outstanding | 83,654,000 | 85,236,000 |
Common shares in treasury | 16,047,000 | 14,465,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Investment management fees | $768,102 | $650,442 | $549,231 |
Underwriting and distribution fees | 678,678 | 582,819 | 496,465 |
Shareholder service fees | 150,979 | 137,093 | 128,109 |
Total | 1,597,759 | 1,370,354 | 1,173,805 |
Operating expenses: | |||
Underwriting and distribution | 783,327 | 676,713 | 589,981 |
Compensation and related costs (including share-based compensation of of $54,144, $53,179 and $48,748,respectively) | 194,410 | 197,597 | 171,775 |
General and administrative | 104,637 | 86,419 | 75,332 |
Subadvisory fees | 8,436 | 12,220 | 21,009 |
Depreciation | 14,634 | 12,834 | 13,211 |
Intangible asset impairment | 7,900 | ||
Total | 1,113,344 | 985,783 | 871,308 |
Operating income | 484,415 | 384,571 | 302,497 |
Investment and other income | 16,790 | 19,904 | 9,817 |
Interest expense | -11,042 | -11,244 | -11,311 |
Income from continuing operations before provision for income taxes | 490,163 | 393,231 | 301,003 |
Provision for income taxes | 176,832 | 140,233 | 108,475 |
Income from continuing operations | 313,331 | 252,998 | 192,528 |
Loss from discontinued operations net of tax expense of $0, $0 and $1,058, respectively | -41,576 | ||
Net income | $313,331 | $252,998 | $150,952 |
Net income per share, basic and diluted: | |||
Income from continuing operations | $3.71 | $2.96 | $2.25 |
Loss from discontinued operations (in dollars per share) | ($0.49) | ||
Net income (in dollars per share) | $3.71 | $2.96 | $1.76 |
Weighted average shares outstanding: | |||
Basic (in shares) | 84,485 | 85,589 | 85,726 |
Diluted (in shares) | 84,485 | 85,589 | 85,728 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF INCOME | |||
Compensation and related costs, share-based compensation | $54,144 | $53,179 | $48,748 |
Loss from discontinued operations, tax expense | $0 | $0 | $1,058 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $313,331 | $252,998 | $150,952 |
Other comprehensive income: | |||
Unrealized appreciation (depreciation) of available for sale investment securities during the year, net of income tax expense (benefit) of $0, $(9) and $9, respectively | -6,158 | 2,105 | 5,467 |
Pension and postretirement benefits, net of income tax expense (benefit) of $(16,725), $17,272 and $(2,532), respectively | -28,426 | 28,833 | -4,157 |
Comprehensive income | $278,747 | $283,936 | $152,262 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Unrealized appreciation (depreciation) of available for sale investment securities during the year, income tax expense (benefit) | $1 | ($9) | $9 |
Pension and postretirement benefits, income tax expense (benefit) | ($16,725) | $17,272 | ($2,532) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $997 | $216,426 | $721,281 | ($366,954) | ($48,107) | $523,643 |
Balance (in shares) at Dec. 31, 2011 | 99,701 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 150,952 | 150,952 | ||||
Recognition of equity compensation | 49,937 | 56 | 49,993 | |||
Net issuance/forfeiture of nonvested shares | -43,106 | 43,106 | ||||
Dividends accrued, $1.45, $1.18 and $2.03 per share for the year ended 2014, 2013, and 2012 respectively | -173,866 | -173,866 | ||||
Exercise of stock options | -27 | 132 | 105 | |||
Excess tax benefits from share-based payment arrangements | 6,791 | 6,791 | ||||
Repurchase of common stock | -48,688 | -48,688 | ||||
Other comprehensive income | 1,310 | 1,310 | ||||
Balance at Dec. 31, 2012 | 997 | 230,021 | 698,423 | -372,404 | -46,797 | 510,240 |
Balance (in shares) at Dec. 31, 2012 | 99,701 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 252,998 | 252,998 | ||||
Recognition of equity compensation | 52,992 | 187 | 53,179 | |||
Net issuance/forfeiture of nonvested shares | -28,564 | 28,564 | ||||
Dividends accrued, $1.45, $1.18 and $2.03 per share for the year ended 2014, 2013, and 2012 respectively | -101,008 | -101,008 | ||||
Exercise of stock options | -35 | 170 | 135 | |||
Excess tax benefits from share-based payment arrangements | 12,992 | 12,992 | ||||
Repurchase of common stock | -72,132 | -72,132 | ||||
Other comprehensive income | 30,938 | 30,938 | ||||
Balance at Dec. 31, 2013 | 997 | 267,406 | 850,600 | -415,802 | -15,859 | 687,342 |
Balance (in shares) at Dec. 31, 2013 | 99,701 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 313,331 | 313,331 | ||||
Recognition of equity compensation | 53,912 | 232 | 54,144 | |||
Net issuance/forfeiture of nonvested shares | -21,817 | 21,817 | ||||
Dividends accrued, $1.45, $1.18 and $2.03 per share for the year ended 2014, 2013, and 2012 respectively | -122,254 | -122,254 | ||||
Excess tax benefits from share-based payment arrangements | 19,135 | 19,135 | ||||
Repurchase of common stock | -131,030 | -131,030 | ||||
Other comprehensive income | -34,584 | -34,584 | ||||
Balance at Dec. 31, 2014 | $997 | $318,636 | $1,041,909 | ($525,015) | ($50,443) | $786,084 |
Balance (in shares) at Dec. 31, 2014 | 99,701 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||
Dividends accrued, per share (in dollars per share) | $1.45 | $1.18 | $2.03 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $313,331 | $252,998 | $150,952 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Write-down of impaired assets | 7,900 | 42,373 | |
Depreciation and amortization | 14,754 | 13,681 | 15,093 |
Amortization of deferred sales commissions | 64,380 | 57,931 | 53,863 |
Share-based compensation | 54,144 | 53,179 | 49,993 |
Excess tax benefits from share-based payment arrangements | -19,135 | -12,992 | -6,791 |
Gain on sale of available for sale investment securities | -5,146 | -14,417 | -3,163 |
Net purchases and sales or maturities of trading securities | -38,662 | -25,959 | -27,470 |
Gain on trading securities | -2,350 | -3,840 | -5,470 |
Loss on sale and retirement of property and equipment | 1,774 | 761 | 5,326 |
Capital gains and dividends reinvested | -268 | ||
Deferred income taxes | 728 | -2,982 | -6,236 |
Changes in assets and liabilities: | |||
Cash and cash equivalents - restricted | 44,824 | -28,439 | -42,812 |
Other receivables | -75,428 | -5,690 | -29,422 |
Payable to investment companies for securities and payable to customers | 17,283 | 24,818 | 63,828 |
Receivables from funds and separate accounts | -2,643 | -2,581 | -2,044 |
Other assets | -5,568 | -1,139 | 2,872 |
Deferred sales commissions | -40,958 | -68,470 | -54,430 |
Accounts payable and payable to third party brokers | 21,640 | 8,613 | 6,969 |
Other liabilities | -5,826 | 41,712 | 20,004 |
Net cash provided by operating activities | 345,042 | 286,916 | 233,435 |
Cash flows from investing activities: | |||
Purchases of available for sale investment securities | -166,302 | -241,644 | -51,676 |
Proceeds from sales and maturities of available for sale investment securities | 164,247 | 262,171 | 49,809 |
Fund adoption transaction | -1,447 | ||
Additions to property and equipment | -35,606 | -16,905 | -15,262 |
Disposition of companies | 22,000 | ||
Net cash provided by (used in) investing activities | -39,108 | 25,622 | -17,129 |
Cash flows from financing activities: | |||
Dividends paid | -115,263 | -96,018 | -171,267 |
Repurchase of common stock | -131,030 | -72,132 | -48,688 |
Exercise of stock options | 135 | 105 | |
Excess tax benefits from share-based payment arrangements | 19,135 | 12,992 | 6,791 |
Net cash used in financing activities | -227,158 | -155,023 | -213,059 |
Net increase in cash and cash equivalents | 78,776 | 157,515 | 3,247 |
Cash and cash equivalents at beginning of year, including discontinued operations | 487,845 | 330,330 | 327,083 |
Cash and cash equivalents at end of year | 566,621 | 487,845 | 330,330 |
Less cash and cash equivalents of discontinued operations at end of year | 2,303 | ||
Cash and cash equivalents of continuing operations at end of year | 566,621 | 487,845 | 328,027 |
Cash paid for: | |||
Income taxes (net) | 165,189 | 124,196 | 98,181 |
Interest | $10,291 | $10,297 | $10,286 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Description of Business | |
Description of Business | 1. Description of Business |
Waddell & Reed Financial, Inc. and subsidiaries (hereinafter referred to as the "Company," "we," "our" and "us") derive revenues from investment management services, investment product underwriting and distribution, and/or shareholder services administration provided to the Waddell & Reed Advisors group of mutual funds (the "Advisors Funds"), Ivy Funds (the "Ivy Funds"), Ivy Funds Variable Insurance Portfolios (the "Ivy Funds VIP") and InvestEd Portfolios ("InvestEd") (collectively, the Advisors Funds, Ivy Funds, Ivy Funds VIP and InvestEd are referred to as the "Funds"), the Selector Management Fund SICAV and its Ivy Global Investors sub-funds (the "Selector Management Funds") and institutional and separately managed accounts. The Funds and the institutional and separately managed accounts operate under various rules and regulations set forth by the United States Securities and Exchange Commission (the "SEC"). The Selector Management Funds are regulated by Luxembourg's Commission de Surveillance du Secteur Financier as an undertaking for collective investment in transferable securities ("UCITS"). Services to the Funds are provided under investment management agreements, underwriting agreements and shareholder servicing and accounting service agreements that set forth the fees to be charged for these services. The majority of these agreements are subject to annual review and approval by each Fund's board of trustees. Our revenues are largely dependent on the total value and composition of assets under management. Accordingly, fluctuations in financial markets and composition of assets under management can significantly impact our revenues and results of operations. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies |
Basis of Presentation | |
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Amounts in the accompanying financial statements and notes are rounded to the nearest thousand unless otherwise stated. | |
The Company operates in one business segment. Although the Company does provide supplemental disclosure regarding assets under management and underwriting revenues and expenses by distribution channel, the Company's determination that it operates in one business segment is based on the fact that the Company's Chief Executive Officer, who is the chief operating decision maker, reviews financial results, assesses performance and allocates resources at the consolidated level. | |
Effective January 1, 2013, the Company adopted an amended accounting standard to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to present separately for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. The adoption was effective prospectively and did not have any effect on the Company's results of operations, financial position or liquidity. | |
In 2012, the Company signed a definitive agreement to sell its Legend group of subsidiaries ("Legend") and the sale closed effective January 1, 2013. The operational results of Legend have been reclassified as discontinued operations in our consolidated financial statements for all periods presented. Unless otherwise stated, footnote references refer to continuing operations. | |
Use of Estimates | |
GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and accompanying notes, and related disclosures of commitments and contingencies. Estimates are used for, but are not limited to, depreciation and amortization, income taxes, valuation of assets, pension and postretirement obligations, and contingencies. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Actual results could differ from our estimates. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash on hand and short-term investments. We consider all highly liquid investments with maturities upon acquisition of 90 days or less to be cash equivalents. Cash and cash equivalents—restricted represents cash held for the benefit of customers segregated in compliance with federal and other regulations. | |
Disclosures About Fair Value of Financial Instruments | |
Fair value of cash and cash equivalents, receivables and payables approximates carrying value. Fair value of long-term debt is disclosed in the indebtedness footnote. Fair values for investment securities are based on quoted market prices, where available. Otherwise, fair values for investment securities are based on Level 2 or Level 3 inputs detailed in Note 4. | |
Investment Securities and Investments in Affiliated Funds | |
Our investments are comprised of United States, state and government obligations, corporate debt securities and investments in affiliated funds. Affiliated funds, which include the Funds and Selector Management Funds, are investments we have made for both general corporate investment purposes and to provide seed capital for new mutual funds and sub-funds. Investments are classified as available for sale or trading. Unrealized holding gains and losses on securities available for sale, net of related tax effects, are excluded from earnings until realized and are reported as a separate component of comprehensive income. For trading securities, unrealized holding gains and losses are included in earnings. Realized gains and losses are computed using the specific identification method for investment securities, other than affiliated funds. For affiliated funds, realized gains and losses are computed using the average cost method. | |
Our available for sale investments are reviewed each quarter and adjusted for other than temporary declines in value. We consider factors affecting the issuer and the industry the issuer operates in, general market trends including interest rates, and our ability and intent to hold an investment until it has recovered. Consideration is given to the length of time an investment's market value has been below carrying value and prospects for recovery to carrying value. When a decline in the fair value of equity securities is determined to be other than temporary, the unrealized loss recorded net of tax in other comprehensive income is realized as a charge to net income and a new cost basis is established for financial reporting purposes. When a decline in the fair value of debt securities is determined to be other than temporary, the amount of the impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If so, the other than temporary impairment recognized in earnings is equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. If not, the portion of the impairment related to the credit loss is recognized in earnings while the portion of the impairment related to other factors is recognized in other comprehensive income, net of tax. | |
Property and Equipment | |
Property and equipment are carried at cost. The costs of improvements that extend the life of a fixed asset are capitalized, while the costs of repairs and maintenance are expensed as incurred. Depreciation and amortization are calculated and recorded using the straight-line method over the estimated useful life of the related asset (or lease term if shorter), generally three to 10 years for furniture and fixtures; one to 10 years for computer software; one to five years for data processing equipment; one to 40 years for buildings; three to 26 years for other equipment; and up to 15 years for leasehold improvements, which is the lesser of the lease term or expected life. | |
Software Developed for Internal Use | |
Certain internal costs incurred in connection with developing or obtaining software for internal use are capitalized in accordance with "Intangibles—Goodwill and Other Topic," Accounting Standards Codification ("ASC") 350. Internal costs capitalized are included in property and equipment, net in the consolidated balance sheets, and were $9.1 million and $10.4 million as of December 31, 2014 and 2013, respectively. Amortization begins when the software project is complete and ready for its intended use and continues over the estimated useful life, generally one to 10 years. | |
Goodwill and Identifiable Intangible Assets | |
Goodwill represents the excess of the cost of the Company's investment in the net assets of acquired companies over the fair value of the underlying identifiable net assets at the dates of acquisition. Goodwill is not amortized, but is reviewed annually for impairment in the second quarter of each year and when events or circumstances occur that indicate that goodwill might be impaired. Factors that the Company considers important in determining whether an impairment of goodwill or intangible assets might exist include significant continued underperformance compared to peers, the likelihood of termination or non-renewal of a mutual fund advisory or subadvisory contract or substantial changes in revenues earned from such contracts, significant changes in our business and products, material and ongoing negative industry or economic trends, or other factors specific to each asset being evaluated. | |
Prior to the sale of Legend effective January 1, 2013, the Company had two reporting units for goodwill: (i) investment management and related services, and (ii) Legend. The investment management and related services reporting unit's goodwill was recorded as part of the spin-off of the Company from its former parent, and to a lesser extent, was recorded as part of subsequent business combinations that were merged into existing investment management operations. Legend, our second reporting unit for goodwill, was a stand-alone investment management subsidiary and goodwill associated with Legend could be assessed separately from other investment management operations. Additional information related to the sale of Legend is included in Notes 6 and 7. | |
To determine the fair value of the Company's reporting unit, our review process uses the market and income approaches. In performing the analyses, the Company uses the best information available under the circumstances, including reasonable and supportable assumptions and projections. | |
The market approach employs market multiples for comparable publicly-traded companies in the financial services industry. Estimates of fair values of the reporting units are established using multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"). The Company believes that fair values calculated based on multiples of EBITDA are an accurate estimation of fair value. | |
If the fair value coverage margin calculated under the market approach is not considered significant, the Company utilizes a second approach, the income approach, to estimate fair values and averages the results under both methodologies. The income approach employs a discounted free cash flow approach that takes into account current actual results, projected future results, and the Company's estimated weighted average cost of capital. | |
The Company compares the fair values of the reporting units to their carrying amounts, including goodwill. If the carrying amount of the reporting unit exceeds its calculated fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. | |
Indefinite-life intangible assets represent advisory and subadvisory management contracts for managed assets obtained in acquisitions. The Company considers these contracts to be indefinite-life intangible assets as they are expected to be renewed without significant cost or modification of terms. The Company also tests these assets for impairment annually and when events or circumstances occur that indicate that the indefinite-life intangible asset might be impaired. If the carrying value of a management contract acquired exceeds its fair value, an impairment loss is recognized equal to that excess. Additional information related to the indefinite-life intangible assets is included in Note 7. | |
Deferred Sales Commissions | |
We defer certain costs, principally sales commissions and related compensation, which are paid to financial advisors and broker/dealers in connection with the sale of certain mutual fund shares sold without a front-end load sales charge. The costs incurred at the time of the sale of Class B shares sold prior to January 1, 2014 are amortized on a straight-line basis over five years, which approximates the expected life of the shareholders' investments. Effective January 1, 2014, the Company suspended sales of Class B shares. The costs incurred at the time of the sale of Class C shares are amortized on a straight-line basis over 12 months. Prior to June 16, 2014, the costs incurred at the time of the sale of shares for certain asset allocation products were deferred and amortized on a straight-line basis, not to exceed three years. We recover deferred sales commissions and related compensation through Rule 12b-1 and other distribution fees, which are paid on the Class B and Class C shares of the Advisors Funds and Ivy Funds, along with contingent deferred sales charges ("CDSCs") paid by shareholders who redeem their shares prior to completion of the specified holding period (three years for shares of certain asset allocation products sold prior to June 16, 2014, six years for a Class B share and 12 months for a Class C share), as well as through client fees paid on the asset allocation products sold prior to June 16, 2014. Effective June 16, 2014 we no longer assess a CDSC to investors upon early redemption of asset allocation products and amounts deferred for sales commissions and related compensation are classified in the prepaid and other current asset and other non-current assets in our consolidated balance sheet. Should we lose our ability to recover deferred sales commissions through distribution fees or CDSCs, the value of these assets would immediately decline, as would future cash flows. We periodically review the recoverability of the deferred sales commission assets as events or changes in circumstances indicate that their carrying amount may not be recoverable and adjust them accordingly. Impairment adjustments are recognized in operating income as a component of amortization of deferred sales commissions. | |
Revenue Recognition | |
Investment Management and Advisory Fees | |
We recognize investment management fees as earned over the period in which services are rendered. We charge the Funds daily based upon average daily net assets under management in accordance with investment management agreements between the Funds and the Company. The majority of investment and/or advisory fees earned from institutional and separate accounts are charged either monthly or quarterly based upon an average of net assets under management in accordance with such investment management agreements. The Company may waive certain fees for investment management services at its discretion, or in accordance with contractual expense limitations, and these waivers are reflected as a reduction to investment management fees on the statement of income. | |
Our investment advisory business receives research products and services from broker/dealers through "soft dollar" arrangements. Consistent with the "soft dollar" safe harbor established by Section 28(e) of the Securities Exchange Act of 1934, as amended, the investment advisory business does not have any contractual obligation requiring it to pay for research products and services obtained through soft dollar arrangements with brokers. As a result, we present "soft dollar" arrangements on a net basis. | |
The Company has contractual arrangements with third parties to provide subadvisory services. Investment advisory fees are recorded gross of any subadvisory payments and are included in investment management fees based on management's determination that the Company is acting in the capacity of principal service provider with respect to its relationship with the Funds. Any corresponding fees paid to subadvisors are included in operating expenses. | |
Distribution, Underwriter and Service Fees | |
Underwriting and distribution commission revenues resulting from the sale of investment products are recognized on the trade date. When a client purchases Class A or Class E shares (front-end load), the client pays an initial sales charge of up to 5.75% of the amount invested. The sales charge for Class A or Class E shares typically declines as the investment amount increases. In addition, investors may combine their purchases of all fund shares to qualify for a reduced sales charge. When a client invests in an asset allocation product, Class A shares are purchased at net asset value and we do not charge an initial sales charge. For client purchases of Class B shares (back-end load) prior to January 1, 2014, and Class C shares (level-load), we do not charge an initial sales charge. Effective January 1, 2014, the Company suspended sales of Class B shares. | |
Under a Rule 12b-1 service plan, the Funds may charge a maximum fee of 0.25% of the average daily net assets under management for Class B, C, E and Ivy Funds Y shares for expenses paid to broker/dealers and other sales professionals in connection with providing ongoing services to the Funds' shareholders and/or maintaining the Funds' shareholder accounts, with the exception of the Funds' Class R shares, for which the maximum fee is 0.50% and for the Class I, R6 and Advisors Funds Y shares, which do not charge a service fee. The Funds' Class B and Class C shares may charge a maximum of 0.75% of the average daily net assets under management under a Rule 12b-1 distribution plan to broker/dealers and other sales professionals for their services in connection with distributing shares of that class. The Funds' Class A shares may charge a maximum fee of 0.25% of the average daily net assets under management under a Rule 12b-1 service and distribution plan for expenses detailed previously. | |
Fee-based asset allocation revenues are charged quarterly based upon average daily net assets under management. For certain types of investment products, primarily variable annuities, distribution revenues are generally calculated based upon average daily net assets under management and are recognized monthly. Fees collected from advisors for services related to technology and errors and omissions insurance are recorded in underwriting and distribution fees on a gross basis, as the Company is the primary obligor in these arrangements. | |
Shareholder service fees are recognized monthly and are calculated based on the number of accounts or assets under management as applicable. Other administrative service fee revenues are recognized when contractual obligations are fulfilled or as services are provided. | |
Advertising and Promotion | |
We expense all advertising and promotion costs as incurred. Advertising expense was $15.7 million, $13.3 million and $9.9 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is classified in both underwriting and distribution expense and general and administrative expense in the consolidated statements of income. | |
Leases | |
The Company leases office space under various leasing arrangements. Most lease agreements contain renewal options, rent escalation clauses and/or other inducements provided by the landlord. As leases expire, they are typically renewed or replaced in the ordinary course of business. Rent expense is recorded on a straight-line basis, including escalations and inducements, over the term of the lease. | |
Share-Based Compensation | |
We account for share-based compensation expense using the fair value method. Under the fair value method, share-based compensation expense reflects the fair value of share-based awards measured at grant date, is recognized over the service period, and is adjusted each period for anticipated forfeitures. The Company also issues share-based awards to our financial advisors who are independent contractors. Changes in the Company's share price result in variable compensation expense over the vesting period. The fair value of options granted would be calculated using a Black-Scholes option-pricing model. The Black-Scholes model incorporates assumptions as to dividend yield, risk-free interest rate, expected volatility and expected life of the option. We have not issued options since 2002 and do not have any options outstanding as of December 31, 2014. | |
Accounting for Income Taxes | |
Income tax expense is based on pre-tax financial accounting income, including adjustments made for the recognition or derecognition related to uncertain tax positions. The recognition or derecognition of income tax expense related to uncertain tax positions is determined under the guidance as prescribed by "Income Taxes Topic," ASC 740. Deferred tax assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is recognized for deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. | |
Accounting_Pronouncements_Not_
Accounting Pronouncements Not Yet Adopted | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Pronouncements Not Yet Adopted | |
Accounting Pronouncements Not Yet Adopted | 3. Accounting Pronouncements Not Yet Adopted |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard also specifies the accounting for certain costs to obtain or fulfill a contract with a customer. ASU 2014-09 will supersede much of the existing revenue recognition guidance in accounting principles generally accepted in the United States and is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating which transition method to apply and the estimated impact the adoption of this ASU will have on our consolidated financial statements and related disclosures. | |
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Investment Securities | |||||||||||||||||||
Investment Securities | 4. Investment Securities | ||||||||||||||||||
Investment securities at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||
2014 | Amortized | Unrealized | Unrealized | Fair value | |||||||||||||||
cost | gains | losses | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Available for sale securities: | |||||||||||||||||||
Affiliated funds | $ | 162,425 | 4,237 | -5,392 | 161,270 | ||||||||||||||
| | | | | | | | | | | | | |||||||
$ | 162,425 | 4,237 | -5,392 | 161,270 | |||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Trading securities: | |||||||||||||||||||
Mortgage-backed securities | 28 | ||||||||||||||||||
Common stock | 72 | ||||||||||||||||||
Affiliated funds | 81,913 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
82,013 | |||||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Total investment securities | 243,283 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
2013 | Amortized | Unrealized | Unrealized | Fair value | |||||||||||||||
cost | gains | losses | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Available for sale securities: | |||||||||||||||||||
Mortgage-backed securities | $ | 8 | 1 | — | 9 | ||||||||||||||
Corporate bonds | 14,568 | 61 | — | 14,629 | |||||||||||||||
Affiliated funds | 87,710 | 5,899 | -957 | 92,652 | |||||||||||||||
| | | | | | | | | | | | | |||||||
$ | 102,286 | 5,961 | -957 | 107,290 | |||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Trading securities: | |||||||||||||||||||
Mortgage-backed securities | 37 | ||||||||||||||||||
Municipal bonds | 501 | ||||||||||||||||||
Corporate bonds | 9,412 | ||||||||||||||||||
Common stock | 60 | ||||||||||||||||||
Affiliated funds | 84,048 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
94,058 | |||||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Total investment securities | 201,348 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
A summary of available for sale affiliated funds with fair values below carrying values at December 31, 2014 is as follows: | |||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||
losses | losses | losses | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Affiliated funds | $ | 66,858 | -5,362 | 1,187 | -30 | 68,045 | -5,392 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total temporarily impaired securities | $ | 66,858 | -5,362 | 1,187 | -30 | 68,045 | -5,392 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Based upon our assessment of these affiliated funds, the time frame investments have been in a loss position and our intent to hold the affiliated funds until they have recovered, we determined that a write-down was not necessary at December 31, 2014. | |||||||||||||||||||
Corporate bonds accounted for as available for sale and trading matured in 2014. Mortgage-backed securities accounted for as available for sale were called in 2014. Mortgage-backed securities accounted for as trading and held as of December 31, 2014 mature in 2022. | |||||||||||||||||||
Investment securities with fair values of $301.0 million, $442.0 million and $79.9 million were sold during 2014, 2013 and 2012, respectively. During 2014, net realized gains of $5.1 million and $4.1 million were recognized from the sale of $149.8 million in available for sale securities and the sale of $151.2 million in trading securities, respectively. During 2013, net realized gains of $14.4 million and $7.7 million were recognized from the sale of $247.0 million in available for sale securities and the sale of $195.0 million in trading securities, respectively. During 2012, net realized gains of $3.2 million and $5.3 million were recognized from the sale of $32.9 million in available for sale securities and the sale of $47.0 million in trading securities, respectively. | |||||||||||||||||||
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 fair value of municipal bonds is measured based on pricing models that take into account, among other factors, information received from market makers and broker/dealers, current trades, bid-wants lists, offerings, market movements, the callability of the bond, state of issuance and benchmark yield curves. 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. The fair value of equity derivatives is measured based on active market broker quotes, evaluated broker quotes and evaluated prices from vendors. | |||||||||||||||||||
Securities' values classified as Level 3 are primarily determined through the use of a single quote (or multiple quotes) from dealers in the securities using proprietary valuation models. These quotes involve significant unobservable inputs, and thus, the related securities are classified as Level 3 securities. | |||||||||||||||||||
The following tables summarize our investment securities as of December 31, 2014 and 2013 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. There were no transfers between levels for the years ended December 31, 2014 or 2013. | |||||||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Mortgage-backed securities | $ | — | 28 | — | 28 | ||||||||||||||
Common stock | 72 | — | — | 72 | |||||||||||||||
Affiliated funds | 243,183 | — | — | 243,183 | |||||||||||||||
| | | | | | | | | | | | | |||||||
Total | $ | 243,255 | $ | 28 | $ | — | $ | 243,283 | |||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Mortgage-backed securities | — | 46 | — | 46 | |||||||||||||||
Municipal bonds | — | 501 | — | 501 | |||||||||||||||
Corporate bonds | — | 24,041 | — | 24,041 | |||||||||||||||
Common stock | 60 | — | — | 60 | |||||||||||||||
Affiliated funds | 176,700 | — | — | 176,700 | |||||||||||||||
| | | | | | | | | | | | | |||||||
Total | $ | 176,760 | $ | 24,588 | $ | — | $ | 201,348 | |||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property and Equipment | ||||||||||
Property and Equipment | 5. Property and Equipment | |||||||||
A summary of property and equipment at December 31, 2014 and 2013 is as follows: | ||||||||||
2014 | 2013 | Estimated | ||||||||
useful lives | ||||||||||
(in thousands) | ||||||||||
Leasehold improvements | $ | 21,039 | 19,991 | 1 - 15 years | ||||||
Furniture and fixtures | 29,462 | 32,688 | 3 - 10 years | |||||||
Equipment | 20,829 | 19,984 | 3 - 26 years | |||||||
Computer software | 74,506 | 80,692 | 1 - 10 years | |||||||
Data processing equipment | 23,684 | 22,374 | 1 - 5 years | |||||||
Buildings | 11,905 | 6,077 | 1 - 40 years | |||||||
Land | 3,804 | 1,940 | ||||||||
| | | | | | | | | | |
Property and equipment, at cost | 185,229 | 183,746 | ||||||||
Accumulated depreciation | -92,925 | -111,108 | ||||||||
| | | | | | | | | | |
Property and equipment, net | $ | 92,304 | 72,638 | |||||||
| | | | | | | | | | |
| | | | | | | | | | |
Depreciation expense was $14.6 million, $12.8 million and $13.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
At December 31, 2014, we had property and equipment under capital leases with a cost of $2.0 million and accumulated depreciation of $0.9 million. At December 31, 2013, we had property and equipment under capital leases with a cost of $1.9 million and accumulated depreciation of $0.9 million. | ||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operations | |
Discontinued Operations | 6. Discontinued Operations |
During 2012, the Company signed a definitive agreement with First Allied Holdings Inc. to sell all of the common interests of Legend and the sale closed effective January 1, 2013. Based on the value of the consideration the Company expected to receive upon closing, which was less than the carrying value of net assets to be sold, the Company recorded a non-cash impairment charge of $42.4 million, which is reflected in loss from discontinued operations on the statement of income in 2012. The consideration received was subject to working capital and regulatory capital adjustments through the closing date. The Company retained $7.7 million of Legend's excess working capital as part of the agreement. The agreement also included an earnout provision based on asset retention for a period of two years following the closing date. An earnout receivable of $4.1 million was accrued as of December 31, 2014 and we received payment in February 2015. | |
The operational results of Legend have been presented as discontinued operations in the consolidated financial statements for all periods presented. Legend's revenues and loss before provision for income taxes for the year ended December 31, 2012 were $74.0 million and $40.5 million, respectively. | |
For income tax purposes, the sale resulted in a $47.8 million capital loss. As of December 31, 2014, $18.3 million remains as a capital loss carryforward available to offset future capital gains for federal income tax purposes. The Company may not realize the full tax benefit of the capital loss carryforward if it does not generate sufficient future capital gains. The capital loss carryforward, if not utilized, will expire in 2018. Additional information related to the capital loss carryforward is included in Note 9. | |
Goodwill_and_Identifiable_Inta
Goodwill and Identifiable Intangible Assets | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Goodwill and Identifiable Intangible Assets | |||||||
Goodwill and Identifiable Intangible Assets | 7. Goodwill and Identifiable Intangible Assets | ||||||
Goodwill represents the excess of purchase price over the tangible assets and identifiable intangible assets of an acquired business. Our goodwill is not deductible for tax purposes. Goodwill and identifiable intangible assets (all considered indefinite lived) at December 31, 2014 and 2013 are as follows: | |||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Goodwill | $ | 106,970 | 106,970 | ||||
Mutual fund management advisory contracts | 42,753 | 38,699 | |||||
Mutual fund management subadvisory contracts | 8,400 | 16,300 | |||||
| | | | | | | |
Total identifiable intangible assets | 51,153 | 54,999 | |||||
| | | | | | | |
Total | $ | 158,123 | 161,969 | ||||
| | | | | | | |
| | | | | | | |
The mutual fund management subadvisory contracts in the table above represents our indefinite life intangible asset balance related to our subadvisory agreement to manage certain mutual fund products for Mackenzie Financial Corporation ("MFC"). This intangible asset was recorded in connection with our purchase of Mackenzie Investment Management, Inc. in 2002. As part of purchase accounting, a deferred tax liability was established related to this intangible asset, and prior to a third quarter 2014 adjustment, the associated deferred tax liability was $6.0 million. | |||||||
We performed a review of the intangible asset associated with the MFC subadvisory agreement during the third quarter of 2014 due to a decline in the related assets under management. The decline was attributed to a realignment of MFC's fund offerings and additional asset reductions. We recorded an impairment charge of $7.9 million in the third quarter of 2014 to this intangible asset as a result of the reduction in assets and associated cash flows, and reduced the associated deferred tax liability by $2.9 million. | |||||||
During the third quarter of 2014, we recorded a $4.1 million intangible asset related to a fund adoption transaction agreement with Emerging Managers Group, L.P., which became effective in August 2014, through which Ivy Investment Management Company assumed responsibility as investment adviser and Ivy Funds Distributor, Inc. serves as distributor of the Selector Management Funds. This asset is included in the mutual fund management advisory contracts line in the table above. | |||||||
During the third quarter of 2012, $59.2 million of goodwill related to Legend was allocated to assets of discontinued operations held for sale. Additionally, $42.4 million of goodwill was written down and is included in the loss from discontinued operations in the statement of income in 2012. | |||||||
Indebtedness
Indebtedness | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Indebtedness | |||||||
Indebtedness | 8. Indebtedness | ||||||
On August 31, 2010, the Company entered into an agreement to complete a $190.0 million private placement of senior unsecured notes that were issued and sold in two tranches: $95.0 million bearing interest at 5.0% and maturing January 13, 2018, Series A, and $95.0 million bearing interest of 5.75% and maturing January 13, 2021, Series B (collectively, the "Senior Notes"). The agreement contained a delayed funding provision that allowed the Company to draw down the proceeds in January 2011 when the 5.6% senior notes (the "Notes") matured. The Company used the proceeds of the issuance and sale of the Senior Notes to repay the Notes in full. Interest is payable semi-annually in January and July of each year. The most restrictive provisions of the agreement require the Company to maintain a consolidated leverage ratio not to exceed 3.0 to 1.0 for four consecutive quarters and a consolidated interest coverage ratio of not less than 4.0 to 1.0 for four consecutive quarters. The Company was in compliance with these covenants and similar covenants in prior facilities for all periods presented. As of December 31, 2014, the Company's consolidated leverage ratio was 0.3 to 1.0, and consolidated interest coverage ratio was 52.3 to 1.0. | |||||||
The Company entered into a five year revolving credit facility (the "Credit Facility") with various lenders, effective June 28, 2013, which provides for initial borrowings of up to $125.0 million and replaced the Company's previous revolving credit facility. Lenders could, at their option upon the Company's request, expand the Credit Facility to $200.0 million. At December 31, 2014 and 2013, there were no borrowings outstanding under the facility. Borrowings under the Credit Facility bear interest at various rates including adjusted LIBOR or an alternative base rate plus, in each case, an incremental margin based on the Company's credit rating. The Credit Facility also provides for a facility fee on the aggregate amount of commitments under the revolving facility (whether or not utilized). The facility fee is also based on the Company's credit rating level. The Credit Facility's covenants match those outlined above for the Senior Notes. | |||||||
Debt is reported at its carrying amount in the consolidated balance sheet. The fair value of the Company's outstanding indebtedness is approximately $207.9 million at December 31, 2014 compared to the carrying value of $190.0 million. Fair value is calculated based on Level 2 inputs. The following is a summary of long-term debt at December 31, 2014 and 2013: | |||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Principal amount unsecured 5.0% senior notes due in 2018 | $ | 95,000 | 95,000 | ||||
Principal amount unsecured 5.75% senior notes due in 2021 | 95,000 | 95,000 | |||||
| | | | | | | |
Total | $ | 190,000 | 190,000 | ||||
| | | | | | | |
| | | | | | | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes | ||||||||||
Income Taxes | 9. Income Taxes | |||||||||
The provision for income taxes from continuing operations for the years ended December 31, 2014, 2013 and 2012 consists of the following: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Currently payable: | ||||||||||
Federal | $ | 161,863 | 131,000 | 104,922 | ||||||
State | 14,206 | 12,197 | 9,335 | |||||||
Foreign | 35 | 37 | — | |||||||
| | | | | | | | | | |
176,104 | 143,234 | 114,257 | ||||||||
Deferred taxes | 728 | -3,001 | -5,782 | |||||||
| | | | | | | | | | |
Provision for income taxes | $ | 176,832 | 140,233 | 108,475 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
The following table reconciles the statutory federal income tax rate with our effective income tax rate from continuing operations for the years ended December 31, 2014, 2013 and 2012: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Statutory federal income tax rate | 35.0% | 35.0% | 35.0% | |||||||
State income taxes, net of federal tax benefits | 2.1 | 2.2 | 2.2 | |||||||
State tax incentives | -0.2 | -0.1 | -0.2 | |||||||
Valuation allowance on losses capital in nature | -1 | -1.8 | -0.8 | |||||||
Other items | 0.2 | 0.4 | -0.2 | |||||||
| | | | | | | | | | |
Effective income tax rate | 36.1% | 35.7% | 36.0% | |||||||
| | | | | | | | | | |
| | | | | | | | | | |
The tax effect of temporary differences that give rise to significant portions of deferred tax liabilities and deferred tax assets at December 31, 2014 and 2013 are as follows: | ||||||||||
2014 | 2013 | |||||||||
(in thousands) | ||||||||||
Deferred tax liabilities: | ||||||||||
Deferred sales commissions | $ | -4,285 | -6,928 | |||||||
Property and equipment | -10,335 | -6,706 | ||||||||
Benefit plans | -11,452 | -10,620 | ||||||||
Identifiable intangible assets | -12,562 | -16,697 | ||||||||
Unrealized gains on investment securities | — | -1,853 | ||||||||
Prepaid expenses | -2,150 | -2,100 | ||||||||
| | | | | | | ||||
Total gross deferred liabilities | -40,784 | -44,904 | ||||||||
| | | | | | | ||||
Deferred tax assets: | ||||||||||
Accrued compensation | 9,098 | 10,893 | ||||||||
Additional pension and postretirement liability | 28,389 | 11,663 | ||||||||
Other accrued expenses | 5,789 | 5,151 | ||||||||
Unrealized losses on investment securities | 673 | 962 | ||||||||
Unrealized losses on investment in partnerships | 370 | 2,031 | ||||||||
Capital loss carryforwards | 6,849 | 9,474 | ||||||||
Nonvested stock | 20,300 | 21,860 | ||||||||
Unused state tax credits | 992 | 866 | ||||||||
State net operating loss carryforwards | 5,718 | 6,521 | ||||||||
Other | 3,572 | 3,962 | ||||||||
| | | | | | | ||||
Total gross deferred assets | 81,750 | 73,383 | ||||||||
Valuation allowance | -13,476 | -16,986 | ||||||||
| | | | | | | ||||
Net deferred tax asset | $ | 27,490 | 11,493 | |||||||
| | | | | | | ||||
| | | | | | | ||||
In 2013, a capital loss was realized on the sale of Legend. By law, the portion of this capital loss in excess of capital gains was carried forward to offset potential capital gains recognized in future years. Due to the character of the loss and the limited carryforward period permitted by law, the Company may not realize the full tax benefit of the capital loss. The capital loss carryforward, if not utilized, will expire in 2018. | ||||||||||
As of December 31, 2014, the Company had a deferred tax asset for a capital loss carryforward of $6.8 million. Other deferred tax assets that could generate potential future capital losses, if realized, include unrealized losses on investment securities of $0.7 million and unrealized losses on investments in partnerships of $0.4 million. As of December 31, 2013, the Company had a deferred tax asset for a capital loss carryforward of $9.5 million. Other deferred tax assets that could generate potential future capital losses, if realized, include unrealized losses on investment securities of $1.0 million and unrealized losses on investments in partnerships of $2.0 million. Deferred tax liabilities that could generate potential future capital gains include unrealized gains on investment securities of $1.9 million. | ||||||||||
Management believes it is not more likely than not that the Company will generate sufficient future capital gains to realize the full benefit of these capital losses and accordingly, a valuation allowance in the amount of $7.9 million and $10.6 million has been recorded at December 31, 2014 and 2013, respectively. During 2014, realized capital gains on the sale of securities in the Company's available for sale securities portfolio, appreciation in the fair value of the Company's trading securities portfolio, and capital gain distributions from investments decreased the valuation allowance and income tax expense by $4.2 million. Additionally, the Company closed a transaction that reclassified tax losses on a limited partnership investment from capital to ordinary, thereby decreasing the valuation allowance and reducing income tax expense by $1.5 million. Unrealized gains from partnership investments also decreased the valuation allowance and income tax expense by $0.2 million. These decreases were partially offset by an increase in the tax loss on the sale of Legend, which resulted in an increase to the valuation allowance and income tax expense of $0.6 million. Additionally, unrealized losses on investment securities increased the valuation allowance and income tax expense by $0.3 million. The remaining $2.3 million increase in the valuation allowance resulted from depreciation in the fair value of the Company's available for sale securities portfolio, which was recorded as a decrease to accumulated other comprehensive income. | ||||||||||
Certain subsidiaries of the Company have net operating loss carryforwards in certain states in which these companies file on a separate company basis. The deferred tax asset, net of federal tax effect, relating to the carryforwards as of December 31, 2014 and 2013 is approximately $5.7 million and $6.5 million, respectively. The carryforwards, if not utilized, will expire between 2015 and 2034. Management believes it is not more likely than not that these subsidiaries will generate sufficient future taxable income in these states to realize the benefit of the net operating loss carryforwards and, accordingly, a valuation allowance in the amount of $5.6 million and $6.4 million has been recorded at December 31, 2014 and 2013, respectively. | ||||||||||
The Company has state tax credit carryforwards of $1.0 million and $0.9 million as of December 31, 2014 and 2013, respectively. Of these state tax credit carryforwards, $0.8 million will expire between 2024 and 2030 if not utilized and $0.2 million will expire in 2026 if not utilized. The Company anticipates these credits will be fully utilized prior to their expiration date. | ||||||||||
As of January 1, 2014, the Company had unrecognized tax benefits, including penalties and interest, of $12.0 million ($8.4 million net of federal benefit) that, if recognized, would impact the Company's effective tax rate. As of December 31, 2014, the Company had unrecognized tax benefits, including penalties and interest, of $11.6 million ($8.3 million net of federal benefit) that, if recognized, would impact the Company's effective tax rate. The unrecognized tax benefits that are not expected to be settled within the next 12 months are included in other liabilities in the accompanying consolidated balance sheets; unrecognized tax benefits that are expected to be settled within the next 12 months are included in income taxes payable. In accordance with ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," beginning January 1, 2014, unrecognized tax benefits that reduce a net operating loss, similar tax loss, or tax credit carryforward are presented as a reduction to either current or noncurrent deferred income taxes, as applicable, on the accompanying consolidated balance sheet as of December 31, 2014. | ||||||||||
The Company's accounting policy with respect to interest and penalties related to income tax uncertainties is to classify these amounts as income taxes. As of January 1, 2014, the total amount of accrued interest and penalties related to uncertain tax positions recognized in the consolidated balance sheet was $3.0 million ($2.5 million net of federal benefit). The total amount of penalties and interest, net of federal benefit, related to tax uncertainties recognized in the statement of income for the period ended December 31, 2014 was $0.4 million. The total amount of accrued penalties and interest related to uncertain tax positions at December 31, 2014 of $3.5 million ($2.9 million net of federal benefit) is included in the total unrecognized tax benefits described above. | ||||||||||
The following table summarizes the Company's reconciliation of unrecognized tax benefits, excluding penalties and interest, for the years ended December 31, 2014, 2013 and 2012: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Balance at January 1 | $ | 9,013 | 8,322 | 7,467 | ||||||
Increases during the year: | ||||||||||
Gross increases—tax positions in prior period | 433 | 644 | 275 | |||||||
Gross increases—current-period tax positions | 656 | 1,355 | 2,215 | |||||||
Decreases during the year: | ||||||||||
Gross decreases—tax positions in prior period | -192 | -71 | -429 | |||||||
Decreases due to settlements with taxing authorities | -877 | -154 | — | |||||||
Decreases due to lapse of statute of limitations | -928 | -1,083 | -1,206 | |||||||
| | | | | | | | | | |
Balance at December 31 | $ | 8,105 | 9,013 | 8,322 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
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. During 2014, the Company settled six open tax years that were undergoing audit by state jurisdictions in which the Company operates. During 2013, the Company settled four open tax years that were undergoing audit by a state jurisdiction in which the Company operates. During 2012, the Company settled three open tax years that were undergoing audit by a state jurisdiction in which the Company operates. The 2011 through 2014 federal income tax returns are open tax years that remain subject to potential future audit. State income tax returns for all years after 2010 and, in certain states, income tax returns for 2010, are subject to potential future audit by tax authorities in the Company's major state tax jurisdictions. | ||||||||||
The Company is currently being audited in various state jurisdictions. It is reasonably possible that the Company will settle the audits in these jurisdictions within the next 12-month period. The Company's liability for unrecognized tax benefits, including penalties and interest, will not decrease significantly upon settlement of these audits. Additionally, such settlements are not anticipated to have a significant impact on the results of operations. | ||||||||||
Pension_Plan_and_Postretiremen
Pension Plan and Postretirement Benefits Other Than Pension | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Pension Plan and Postretirement Benefits Other Than Pension | |||||||||||||||||||
Pension Plan and Postretirement Benefits Other Than Pension | 10. Pension Plan and Postretirement Benefits Other Than Pension | ||||||||||||||||||
We provide a non-contributory retirement plan that covers substantially all employees and certain vested employees of our former parent company (the "Pension Plan"). Benefits payable under the Pension Plan are based on employees' years of service and compensation during the final ten years of employment. We also sponsor an unfunded defined benefit postretirement medical plan that covers substantially all employees, as well as our financial advisors, who are independent contractors. The medical plan is contributory with retiree contributions adjusted annually. The medical plan does not provide for post age 65 benefits with the exception of a small group of employees that were grandfathered when such plan was established. | |||||||||||||||||||
A reconciliation of the funded status of these plans and the assumptions related to the obligations at December 31, 2014, 2013 and 2012 follow: | |||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||
Net benefit obligation at beginning of year | $ | 172,105 | 184,165 | 148,412 | 8,172 | 8,792 | 8,145 | ||||||||||||
Service cost | 10,084 | 11,011 | 9,373 | 719 | 788 | 693 | |||||||||||||
Interest cost | 8,395 | 7,711 | 7,570 | 397 | 361 | 400 | |||||||||||||
Benefits paid | -8,733 | -19,283 | -5,760 | -527 | -283 | -560 | |||||||||||||
Actuarial (gain) loss | 26,410 | -11,499 | 24,570 | 760 | -1,807 | -223 | |||||||||||||
Plan amendments | -176 | — | — | — | — | — | |||||||||||||
Retiree contributions | — | — | — | 381 | 321 | 337 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Net benefit obligation at end of year | $ | 208,085 | 172,105 | 184,165 | 9,902 | 8,172 | 8,792 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
The accumulated benefit obligation for the Pension Plan was $171.3 million and $142.2 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
As part of the agreement to sell Legend, the Company retained the liability for pension and other postretirement benefits related to Legend that existed at the closing date of the sale, and these liabilities are included in the tables above. | |||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Change in plan assets: | |||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 170,430 | 133,911 | 103,404 | — | — | — | ||||||||||||
Actual return on plan assets | -6,149 | 38,802 | 21,267 | — | — | — | |||||||||||||
Employer contributions | 20,000 | 17,000 | 15,000 | 146 | -38 | 223 | |||||||||||||
Retiree contributions | — | — | — | 381 | 321 | 337 | |||||||||||||
Benefits paid | -8,733 | -19,283 | -5,760 | -527 | -283 | -560 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Fair value of plan assets at end of year | $ | 175,548 | 170,430 | 133,911 | — | — | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Funded status at end of year | $ | -32,537 | $ | -1,675 | -50,254 | -9,902 | -8,172 | -8,792 | |||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
(in thousands, except percentage data) | |||||||||||||||||||
Amounts recognized in the statement of financial position: | |||||||||||||||||||
Current liabilities | $ | — | — | — | -279 | -260 | -304 | ||||||||||||
Noncurrent liabilities | -32,537 | -1,675 | -50,254 | -9,623 | -7,912 | -8,488 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Net amount recognized at end of year | $ | -32,537 | -1,675 | -50,254 | -9,902 | -8,172 | -8,792 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income: | |||||||||||||||||||
Transition obligation | $ | -21 | -27 | -32 | — | — | — | ||||||||||||
Prior service cost | -1,179 | -1,822 | -2,377 | -17 | -72 | -127 | |||||||||||||
Accumulated gain (loss) | -75,681 | -30,602 | -74,286 | 265 | 1,041 | -765 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Accumulated other comprehensive income (loss) | -76,881 | -32,451 | -76,695 | 248 | 969 | -892 | |||||||||||||
Cumulative employer contributions in excess of net periodic benefit cost | 44,344 | 30,776 | 26,441 | -10,150 | -9,141 | -7,900 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Net amount recognized at end of year | $ | -32,537 | -1,675 | -50,254 | -9,902 | -8,172 | -8,792 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Weighted average assumptions used to determine benefit obligation at December 31: | |||||||||||||||||||
Discount rate | 4.13% | 4.97% | 4.22% | 4.07% | 4.94% | 4.18% | |||||||||||||
Rate of compensation increase | 5.12% | 5.12% | 3.99% | Not applicable | |||||||||||||||
The discount rate assumption used to determine the pension and other postretirement benefits obligations was based on the Aon Hewitt AA Only Above Median Yield Curve. This discount rate was determined separately for each plan by plotting the expected benefit payments from each plan against a yield curve of high quality, zero coupon bonds and calculating the single rate that would produce the same present value of liabilities as the yield curve. | |||||||||||||||||||
Our Pension Plan asset allocation at December 31, 2014 and 2013 is as follows: | |||||||||||||||||||
Plan assets by category | Percentage of | Percentage of | |||||||||||||||||
Plan Assets at | Plan Assets at | ||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||
Cash | 23% | 18% | |||||||||||||||||
Equity securities: | |||||||||||||||||||
Domestic | 51% | 33% | |||||||||||||||||
International | 17% | 40% | |||||||||||||||||
Fixed income securities | 1% | 1% | |||||||||||||||||
Private equity | 1% | 1% | |||||||||||||||||
Gold bullion | 7% | 7% | |||||||||||||||||
| | | | | | | |||||||||||||
Total | 100% | 100% | |||||||||||||||||
| | | | | | | |||||||||||||
| | | | | | | |||||||||||||
The primary investment objective is to maximize growth of the Pension Plan assets to meet the projected obligations to the beneficiaries over a long period of time, and to do so in a manner that is consistent with the Company's earnings strength and risk tolerance. Asset allocation is the most important decision in managing the assets, and it is reviewed regularly. The asset allocation policy considers the Company's financial strength and long-term asset class risk/return expectations since the obligations are long-term in nature. As of December 31, 2014, our Pension Plan assets were invested in our Asset Strategy investment style and are managed by our in-house investment professionals. | |||||||||||||||||||
Asset Strategy invests in the domestic or foreign market that is believed to offer the greatest probability of return or, alternatively, that provides the highest degree of safety in uncertain times. This style may allocate its assets among stocks, bonds and short-term investments and since the allocation is dynamically managed and able to take advantage of opportunities as they are presented by the market, there is not a predetermined asset allocation. Dependent on the outlook for the U.S. and global economies, our investment managers make top-down allocations among stocks, bonds, cash, precious metals and currency markets around the globe. After determining allocations, we seek the best opportunities within each market. Derivative instruments play an important role in this style's investment process, to manage risk and maximize stability of the assets in the portfolio. | |||||||||||||||||||
At December 31, 2014, the Pension Plan had a significant weighting of plan assets invested in equity securities, a concentration not typical of a classic pension plan. | |||||||||||||||||||
Risk management is primarily the responsibility of the investment portfolio manager, who incorporates it with day-to-day research and management. Although investment flexibility is essential to this style's investment process, the Pension Plan does not invest in a number of asset classes that are commonly referred to as alternative investments, namely venture capital, direct real estate properties, timber, or oil, gas or other mineral explorations or development programs or leases. The Pension Plan also has a number of specific guidelines that serve to manage investment risk by placing limits on net securities exposure and concentration of assets within specific companies or industries. | |||||||||||||||||||
We determine the fair value of our Pension Plan assets using broad levels of inputs as defined by related accounting standards and categorized as Level 1, Level 2 or Level 3, as previously defined in Note 4. The following tables summarize our Pension Plan assets as of December 31, 2014 and 2013. There were no transfers between levels for the years ended December 31, 2014 or 2013. | |||||||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Equity securities: | |||||||||||||||||||
Domestic | $ | 90,061 | — | — | 90,061 | ||||||||||||||
International | 29,351 | — | — | 29,351 | |||||||||||||||
Equity derivatives | — | 116 | — | 116 | |||||||||||||||
Fixed income securities: | |||||||||||||||||||
Mortgage-backed securities | — | 14 | — | 14 | |||||||||||||||
Corporate bond | — | — | 1,884 | 1,884 | |||||||||||||||
Private equity | — | — | 1,518 | 1,518 | |||||||||||||||
Gold bullion | 12,209 | — | — | 12,209 | |||||||||||||||
| | | | | | | | | | | | | |||||||
Total investment securities | 131,621 | 130 | 3,402 | 135,153 | |||||||||||||||
Cash and other | 40,395 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
Total | $ | 175,548 | |||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Equity securities: | |||||||||||||||||||
Domestic | $ | 54,558 | — | — | 54,558 | ||||||||||||||
International | 67,889 | — | — | 67,889 | |||||||||||||||
Equity derivatives | — | 471 | — | 471 | |||||||||||||||
Fixed income securities: | |||||||||||||||||||
Mortgage-backed securities | — | 17 | — | 17 | |||||||||||||||
Corporate bond | — | — | 1,900 | 1,900 | |||||||||||||||
Private equity | — | — | 2,119 | 2,119 | |||||||||||||||
Gold bullion | 12,316 | — | — | 12,316 | |||||||||||||||
| | | | | | | | | | | | | |||||||
Total investment securities | 134,763 | 488 | 4,019 | 139,270 | |||||||||||||||
Cash and other | 31,160 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
Total | $ | 170,430 | |||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
The following table summarizes the activity of plan assets categorized as Level 3 for the years ended December 31, 2014 and 2013: | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Level 3 plan assets at beginning of year | $ | 4,019 | 1,772 | ||||||||||||||||
Purchases, issuances and settlements | 1,900 | ||||||||||||||||||
— | |||||||||||||||||||
Valuation change | -617 | 347 | |||||||||||||||||
| | | | | | | |||||||||||||
Level 3 plan assets at end of year | $ | 3,402 | 4,019 | ||||||||||||||||
| | | | | | | |||||||||||||
| | | | | | | |||||||||||||
The 7.75% expected long-term rate of return on Pension Plan assets reflects management's expectations of long-term average rates of return on funds invested to provide for benefits included in the projected benefit obligations. The expected return is based on the outlook for inflation, fixed income returns and equity returns, while also considering historical returns, asset allocation and investment strategy. The plan expects a relatively high return because of the types of investment the portfolio incorporates, the success the portfolio managers have had with generating returns in excess of passive management in those types of investments, and the past history of returns. The ability to use a high concentration of equities, especially international equities, within the plan's investment policy presents portfolio managers the opportunity to earn higher returns than other investment strategies that are restricted to owning lower returning asset classes. | |||||||||||||||||||
The components of net periodic pension and other postretirement costs consisted of the following for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||
Service cost | $ | 10,084 | 11,011 | 9,373 | 719 | 788 | 693 | ||||||||||||
Interest cost | 8,395 | 7,711 | 7,570 | 397 | 361 | 400 | |||||||||||||
Expected return on plan assets | -14,016 | -11,185 | -8,799 | — | — | — | |||||||||||||
Actuarial loss amortization | 1,496 | 4,567 | 4,563 | -17 | — | 12 | |||||||||||||
Prior service cost amortization | 468 | 555 | 555 | 55 | 55 | 55 | |||||||||||||
Transition obligation amortization | 5 | 5 | 5 | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Net periodic benefit cost (1) | $ | 6,432 | 12,664 | 13,267 | 1,154 | 1,204 | 1,160 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
-1 | Net periodic pension benefit and postretirement medical costs related to discontinued operations and included in the table above were $749 thousand for the year ended December 31, 2012. | ||||||||||||||||||
The estimated net loss, prior service cost and transition obligation for the Pension Plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2015 are $5.0 million, $459 thousand and $5 thousand, respectively. The estimated prior service cost for the postretirement medical plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2015 is $19 thousand. | |||||||||||||||||||
The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.97% | 4.22% | 4.99% | 4.94% | 4.18% | 5.00% | |||||||||||||
Expected return on plan assets | 7.75% | 7.75% | 7.75% | Not applicable | |||||||||||||||
Rate of compensation increase | 5.12% | 3.99% | 4.04% | Not applicable | |||||||||||||||
We expect the following benefit payments to be paid, which reflect future service as appropriate: | |||||||||||||||||||
Pension | Other | ||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||
Benefits | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
2015 | $ | 6,813 | 279 | ||||||||||||||||
2016 | 8,743 | 341 | |||||||||||||||||
2017 | 9,929 | 378 | |||||||||||||||||
2018 | 10,066 | 478 | |||||||||||||||||
2019 | 12,161 | 558 | |||||||||||||||||
2020 through 2024 | 74,734 | 3,839 | |||||||||||||||||
| | | | | | | |||||||||||||
$ | 122,446 | 5,873 | |||||||||||||||||
| | | | | | | |||||||||||||
| | | | | | | |||||||||||||
Our policy with respect to funding the Pension Plan is to fund at least the minimum required by the Employee Retirement Income Security Act of 1974, as amended, and not more than the maximum amount deductible for tax purposes. All contributions made to the Pension Plan for 2014, 2013 and 2012 were voluntary. A contribution of $20 million was made to the Pension Plan in January 2015 and no further contributions are planned for 2015. | |||||||||||||||||||
All Company contributions to other postretirement medical benefits are voluntary, as the postretirement medical plan is not funded and is not subject to any minimum regulatory funding requirements. The contributions for each year represent claims paid for medical expenses, and we anticipate making the 2015 expected contribution with cash generated from operations. Contributions by participants to the postretirement plan were $381 thousand, $321 thousand and $337 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
For measurement purposes, the initial health care cost trend rate was 8.04% for 2014, 8.52% for 2013 and 9.01% for 2012. The health care cost trend rate reflects anticipated increases in health care costs. The initial assumed growth rate of 8.04% for 2014 is assumed to gradually decline over the next 13 years to a rate of 4.5%. The effect of a 1% annual increase in assumed cost trend rates would increase the December 31, 2014 accumulated postretirement benefit obligation by approximately $1.2 million, and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended December 31, 2014 by approximately $168 thousand. The effect of a 1% annual decrease in assumed cost trend rates would decrease the December 31, 2014 accumulated postretirement benefit obligation by approximately $1.0 million, and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended December 31, 2014 by approximately $142 thousand. | |||||||||||||||||||
We also sponsor the Waddell & Reed Financial, Inc. Supplemental Executive Retirement Plan, as amended and restated (the "SERP"), a non-qualified deferred compensation plan covering eligible employees. The SERP provides certain benefits for Company officers that the Pension Plan is prevented from providing because of compensation and benefit limits in the Internal Revenue Code (the "IRC"). | |||||||||||||||||||
The SERP was adopted to supplement the annual pension paid to certain senior executive officers. Each calendar year, the Compensation Committee of the Board of Directors (the "Compensation Committee") credits participants' SERP accounts with (i) an amount equal to 4% of the executive's base salary, less the amount of the maximum employer matching contribution available under our 401(k) plan, and (ii) a non-formula award, if any, as determined by the Compensation Committee in its discretion. There were no discretionary awards made to participants during 2014, 2013 or 2012. Additionally, each calendar year, participants' accounts are credited (or charged) with an amount equal to the performance of certain hypothetical investment vehicles since the last preceding year. Upon a participant's separation, or at such other time based on a pre-existing election by a participant, benefits accumulated under the SERP are payable in installments or in a lump sum. As of December 31, 2014 and 2013, the aggregate liability to participants was $3.8 million. | |||||||||||||||||||
At December 31, 2014, the accrued pension and postretirement liability recorded in the consolidated balance sheet was comprised of accrued pension costs of $32.5 million, a liability for postretirement benefits in the amount of $9.6 million and an accrued liability for SERP benefits of $3.8 million. The current portion of postretirement liability of $0.3 million is included in other current liabilities on the balance sheet. At December 31, 2013, the accrued pension and postretirement liability recorded on the balance sheet was comprised of accrued pension costs of $1.7 million, a liability for postretirement benefits in the amount of $7.9 million and an accrued liability for SERP benefits of $3.7 million. The current portion of postretirement liability of $0.3 million is included in other current liabilities on the balance sheet. | |||||||||||||||||||
Employee_Savings_Plan
Employee Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
Employee Savings Plan | |
Employee Savings Plan | 11. Employee Savings Plan |
We sponsor a defined contribution plan that qualifies under Section 401(k) of the IRC to provide retirement benefits to substantially all of our employees. As allowed under Section 401(k), the plan provides tax-deferred salary deductions for eligible employees. Our matching contributions to the plan for the years ended December 31, 2014, 2013 and 2012 were $6.4 million, $5.1 million and $4.7 million, respectively. | |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity | |||||||||||||
Stockholders' Equity | 12. Stockholders' Equity | ||||||||||||
Earnings per Share | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, earnings per share from continuing operations were computed as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Income from continuing operations | $ | 313,331 | 252,998 | 192,528 | |||||||||
| | | | | | | | | | ||||
| | | | | | | | | | ||||
Weighted average shares outstanding—basic | 84,485 | 85,589 | 85,726 | ||||||||||
Dilutive potential shares from stock options | — | — | 2 | ||||||||||
| | | | | | | | | | ||||
Weighted average shares outstanding—diluted | 84,485 | 85,589 | 85,728 | ||||||||||
| | | | | | | | | | ||||
| | | | | | | | | | ||||
Earnings per share from continuing operations, basic and diluted | $ | 3.71 | $ | 2.96 | 2.25 | ||||||||
Dividends | |||||||||||||
We declared dividends on our common stock of $1.45 per share, $1.18 per share and $2.03 per share for the years ended December 31, 2014, 2013 and 2012, respectively. The Board of Directors approved an increase in the quarterly dividend on our common stock from $0.34 per share to $0.43 per share beginning with the dividend declared in the fourth quarter 2014 and paid on February 2, 2015 to stockholders of record on January 12, 2015. In the fourth quarter of 2012, the Company paid a special cash dividend on our common stock of $1.00 per share (included in the 2012 total above). As of December 31, 2014 and 2013, other current liabilities included $36.0 million and $29.0 million, respectively, for dividends payable to stockholders. | |||||||||||||
Common Stock Repurchases | |||||||||||||
The Board of Directors has authorized the repurchase of our common stock in the open market and/or private purchases. The acquired shares may be used for corporate purposes, including shares issued to employees in our stock-based compensation programs. There were 2,252,152 shares, 1,492,535 shares and 1,536,968 shares repurchased in the open market or privately during the years ended December 31, 2014, 2013 and 2012, respectively, which includes 599,340 shares, 665,035 shares and 568,568 shares repurchased from employees who elected to tender shares to cover their minimum tax withholdings with respect to vesting of stock awards during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||
The following table summarizes other comprehensive income (loss) activity for the years ended December 31, 2014 and 2013. | |||||||||||||
Year ended December 31, 2014 | Unrealized | Change in | Pension and | Total | |||||||||
gains | valuation | postretirement | accumulated | ||||||||||
on investment | allowance for | benefits | other | ||||||||||
securities | unrealized | comprehensive | |||||||||||
gains | income (loss) | ||||||||||||
(losses) on | |||||||||||||
investment | |||||||||||||
securities | |||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2013 | $ | 3,150 | 810 | -19,819 | -15,859 | ||||||||
Other comprehensive loss before reclassification | -636 | -381 | -29,689 | -30,706 | |||||||||
Amount reclassified from accumulated other comprehensive income | -3,241 | -1,900 | 1,263 | -3,878 | |||||||||
| | | | | | | | | | | | | |
Net current period other comprehensive loss | -3,877 | -2,281 | -28,426 | -34,584 | |||||||||
| | | | | | | | | | | | | |
Balance at December 31, 2014 | $ | -727 | $ | -1,471 | -48,245 | -50,443 | |||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Year ended December 31, 2013 | Unrealized | Change in | Pension and | Total | |||||||||
gains | valuation | postretirement | accumulated | ||||||||||
on investment | allowance for | benefits | other | ||||||||||
securities | unrealized | comprehensive | |||||||||||
gains | income (loss) | ||||||||||||
(losses) on | |||||||||||||
investment | |||||||||||||
securities | |||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 1,823 | 32 | -48,652 | -46,797 | ||||||||
Other comprehensive income before reclassification | 10,447 | 6,085 | 25,592 | 42,124 | |||||||||
Amount reclassified from accumulated other comprehensive income | -9,120 | -5,307 | 3,241 | -11,186 | |||||||||
| | | | | | | | | | | | | |
Net current period other comprehensive income | 1,327 | 778 | 28,833 | 30,938 | |||||||||
| | | | | | | | | | | | | |
Balance at December 31, 2013 | $ | 3,150 | $ | 810 | -19,819 | -15,859 | |||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Reclassifications from accumulated other comprehensive income and included in net income are summarized in the table that follows for the years ended December 31, 2014 and 2013. | |||||||||||||
For the year ended December 31, 2014 | |||||||||||||
Pre-tax | Tax | Net of tax | Statement of income line item | ||||||||||
(expense) | |||||||||||||
benefit | |||||||||||||
(in thousands) | |||||||||||||
Reclassifications included in net income: | |||||||||||||
Realized gain on sale of available for sale investment securities | $ | 5,146 | -1,905 | 3,241 | Investment and other income | ||||||||
Valuation allowance | — | 1,900 | 1,900 | Provision for income taxes | |||||||||
Amortization of pension and postretirement benefits | -2,007 | 744 | -1,263 | Underwriting and distribution expense and Compensation and related costs | |||||||||
| | | | | | | | | | | | ||
Total | $ | 3,139 | 739 | 3,878 | |||||||||
| | | | | | | | | | | | ||
| | | | | | | | | | | | ||
For the year ended December 31, 2013 | |||||||||||||
Pre-tax | Tax | Net of tax | Statement of income line item | ||||||||||
(expense) | |||||||||||||
benefit | |||||||||||||
(in thousands) | |||||||||||||
Reclassifications included in net income: | |||||||||||||
Realized gain on sale of available for sale investment securities | $ | 14,417 | -5,297 | 9,120 | Investment and other income | ||||||||
Valuation allowance | — | 5,307 | 5,307 | Provision for income taxes | |||||||||
Amortization of pension and postretirement benefits | -5,182 | 1,941 | -3,241 | Underwriting and distribution expense and Compensation and related costs | |||||||||
| | | | | | | | | | | | ||
Total | $ | 9,235 | 1,951 | 11,186 | |||||||||
| | | | | | | | | | | | ||
| | | | | | | | | | | | ||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Share-Based Compensation | |||||||
Share-Based Compensation | 13. Share-Based Compensation | ||||||
The Company has three stock-based compensation plans: the Company 1998 Stock Incentive Plan, as amended and restated (the "SI Plan"), the Company 1998 Executive Stock Award Plan, as amended and restated (the "ESA Plan") and the Company 1998 Non-Employee Director Stock Award Plan, as amended and restated (the "NED Plan") (collectively, the "Stock Plans"). | |||||||
The SI Plan allows us to grant equity compensation awards, including, among other awards, non-qualified stock options and nonvested stock as part of our overall compensation program to attract and retain key personnel and encourage a greater personal financial investment in the Company, thereby promoting the long-term growth of the Company. All of the Stock Plans also allow us to grant non-qualified stock options and/or nonvested stock. A maximum of 30.0 million shares of common stock are authorized for issuance under the SI Plan. A maximum of 3.75 million and 1.2 million shares of common stock are authorized for issuance under the ESA Plan and NED Plan, respectively. In total, 8,362,456 shares of common stock are available for issuance as of December 31, 2014 under these plans. In addition, we make incentive payments under the Company 2003 Executive Incentive Plan, as amended and restated (the "EIP") in the form of cash, stock options, nonvested stock or a combination thereof. Incentive awards paid under the EIP in the form of stock options or nonvested stock, or granted following the conversion of cash bonus amounts into stock options and/or nonvested stock, are issued out of shares reserved for issuance under the SI and ESA Plans. Generally, shares of common stock covered by terminated, surrendered or cancelled options, by forfeited nonvested stock, or by the forfeiture of other awards that do not result in issuance of shares of common stock are again available for awards under the plan from which they were terminated, surrendered, cancelled or forfeited. | |||||||
Under our Stock Plans, the exercise price of a stock option is equal to the closing market price of Company common stock on the date of grant. The maximum term of non-qualified options granted under the SI Plan is ten years and two days and the options generally vest in 331/3% increments on the second, third and fourth anniversaries of the grant date. The maximum term of non-qualified options granted under the ESA Plan and NED Plan is 11 years and the options generally vest 10% each year, beginning on the first anniversary of the grant date. Our Stock Plans include a Stock Option Restoration Program feature (the "SORP") that allows, on the first trading day of August, a holder to pay the exercise price on vested in-the-money options by surrendering common stock of the Company that has been owned for at least six months. This feature also permits a holder exercising an option to be granted new options in an amount equal to the number of common shares used to satisfy both the exercise price and withholding taxes due upon exercise. New options are granted with an expiration date equal to that of the original option and vest six months after the grant date. The SORP results in a net issuance of shares of common stock and fewer stock options outstanding. We receive a current income tax benefit for stock option exercises. | |||||||
Nonvested stock awards are valued on the date of grant, have no purchase price and generally vest over four years in 331/3% increments on the second, third and fourth anniversaries of the grant date. The Company also issues nonvested stock awards to our financial advisors who are independent contractors. These awards have the same terms as awards issued to employees; however, changes in the Company's share price result in variable compensation expense over the vesting period. Under the Stock Plans, nonvested shares are forfeited upon the termination of employment with or service to the Company, as applicable, or service on the Board of Directors, dependent upon the circumstances of termination. Except for restrictions placed on the transferability of nonvested stock, holders of nonvested stock have full stockholders' rights during the term of restriction, including voting rights and the rights to receive cash dividends. | |||||||
(a) | Stock Options | ||||||
There are no options outstanding as of December 31, 2014. The total intrinsic value (on date of exercise) of options exercised during the years ended December 31, 2013 and 2012 was $139 thousand and $72 thousand, respectively. The related income tax benefit recognized was $51 thousand and $26 thousand for the years ended December 31, 2013 and 2012, respectively. | |||||||
(b) | Nonvested Stock | ||||||
A summary of nonvested share activity and related fair value for the year ended December 31, 2014 follows: | |||||||
Nonvested | Weighted | ||||||
Stock Shares | Average | ||||||
Grant Date | |||||||
Fair Value | |||||||
Nonvested at December 31, 2013 | 4,305,950 | $ | 38.50 | ||||
Granted | 1,103,813 | 68.00 | |||||
Vested | -1,533,446 | 35.58 | |||||
Forfeited | -434,115 | 45.56 | |||||
| | | | | | | |
Nonvested at December 31, 2014 | 3,442,202 | $ | 48.37 | ||||
| | | | | | | |
| | | | | | | |
For the years ended December 31, 2014, 2013 and 2012, compensation expense related to nonvested stock totaled $54.1 million, $53.2 million and $48.7 million, respectively. Additional compensation expense related to Legend's nonvested stock of $1.2 million for the year ended December 31, 2012, is reflected in loss from discontinued operations in the statement of income. | |||||||
The income tax benefit from the compensation expense related to nonvested stock was $20.1 million, $19.6 million and $17.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. These benefits will be recognized upon vesting and may increase or decrease depending on the fair value of the shares on the date of vesting. As of December 31, 2014, the remaining unamortized expense of $111.3 million is expected to be recognized over a weighted average period of 2.2 years. | |||||||
The total fair value of shares vested (at vest date) during the years ended December 31, 2014, 2013 and 2012 was $104.8 million, $80.5 million and $53.5 million, respectively. The Company permits employees the right to tender a portion of their vested shares to the Company to satisfy the minimum tax withholding obligations of the Company with respect to vesting of the shares. During 2015, we expect to repurchase approximately 500 thousand shares from employees who elect to tender shares to cover their minimum tax withholdings. | |||||||
Uniform_Net_Capital_Rule_Requi
Uniform Net Capital Rule Requirements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Uniform Net Capital Rule Requirements | |||||||||||||
Uniform Net Capital Rule Requirements | 14. Uniform Net Capital Rule Requirements | ||||||||||||
Two of our subsidiaries, Waddell & Reed, Inc. ("W&R") and Ivy Funds Distributor, Inc. ("IFDI") are registered broker/dealers and members of the Financial Industry Regulatory Authority. Broker/dealers are subject to the SEC's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15.0 to 1.0. The primary difference between net capital and stockholders' equity is the non-allowable assets that are excluded from net capital. | |||||||||||||
A broker/dealer may elect not to be subject to the Aggregate Indebtedness Standard of paragraph (a)(1)(i) of Rule 15c3-1, in which case net capital must exceed the greater of $250 thousand or 2% of aggregate debit items computed in accordance with the Formula for Determination of Reserve Requirements for broker/dealers. W&R made this election and thus is not subject to the aggregate indebtedness ratio as of December 31, 2014 or 2013. | |||||||||||||
Net capital and aggregated indebtedness information for our broker/dealer subsidiaries is presented in the following table as of December 31, 2014 and 2013: | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
W&R | IFDI | W&R | IFDI | ||||||||||
Net capital | $ | 10,965 | 19,455 | 23,688 | 14,648 | ||||||||
Required capital | 250 | 3,995 | 250 | 3,340 | |||||||||
| | | | | | | | | | | | | |
Excess of required capital | $ | 10,715 | 15,460 | 23,438 | 11,308 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Ratio of aggregate indebtedness to net capital | Not | Not | |||||||||||
applicable | 3.08 to 1.0 | applicable | 3.42 to 1.0 | ||||||||||
Rental_Expense_and_Lease_Commi
Rental Expense and Lease Commitments | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Rental Expense and Lease Commitments | ||||
Rental Expense and Lease Commitments | 15. Rental Expense and Lease Commitments | |||
We lease certain home office buildings, certain sales and other office space and equipment under long-term operating leases. Rent expense was $22.6 million, $22.5 million and $21.9 million, for the years ended December 31, 2014, 2013 and 2012, respectively. Future minimum rental commitments under non-cancelable operating leases are as follows: | ||||
Year | Commitments | |||
(in thousands) | ||||
2015 | $ | 21,927 | ||
2016 | 18,688 | |||
2017 | 14,410 | |||
2018 | 10,121 | |||
2019 | 5,634 | |||
Thereafter | 14,353 | |||
| | | | |
$ | 85,133 | |||
| | | | |
| | | | |
New leases are expected to be executed as existing leases expire. Thus, future minimum lease commitments are not expected to be materially different than those in 2014. | ||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Related Party Transactions | |||||||||||
Related Party Transactions | 16. Related Party Transactions | ||||||||||
We earn investment management fee revenues from the Funds for which we also act as an investment adviser, pursuant to an investment management agreement with each Fund. In addition, we have agreements with the Funds pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, pursuant to which distribution and service fees are collected from the Funds for distribution of mutual fund shares, for costs such as advertising and commissions paid to broker/dealers, and for providing ongoing services to shareholders of the Funds and/or maintaining shareholder accounts. We also earn service fee revenues by providing various services to the Funds and their shareholders pursuant to a shareholder servicing agreement with each Fund (except the Ivy Funds VIP) and an accounting service agreement with each Fund. Certain of our officers and directors are also officers and/or trustees for the various Funds for which we act as an investment adviser. These agreements are approved or renewed on an annual basis by each Fund's board of trustees, including a majority of the disinterested members. | |||||||||||
Revenues for services provided or related to these Funds for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Investment management fees | $ | 709,179 | 602,120 | 506,081 | |||||||
Rule 12b-1 service and distribution fees | 338,846 | 299,442 | 259,803 | ||||||||
Shareholder service fees | 150,979 | 137,093 | 128,109 | ||||||||
| | | | | | | | | | | |
Total revenues | $ | 1,199,004 | 1,038,655 | 893,993 | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Included in Funds and separate accounts receivable at December 31, 2014 and 2013 are receivables due from the Funds of $30.3 and $28.3 million respectively. | |||||||||||
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Contingencies | |
Contingencies | 17. 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 results of operations in a particular quarter or year. | |
The Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. These amounts are not reduced by amounts that may be recovered under insurance or claims against 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. For contingencies where an unfavorable outcome is reasonably possible and that are significant, the Company discloses the nature of the contingency 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. In our opinion, the likelihood that any pending legal proceeding, regulatory investigation, claim, or other contingency will have a material adverse effect on our business, financial condition or results of operations is remote. | |
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Concentrations of Credit Risk | |
Concentrations of Credit Risk | 18. Concentrations of Credit Risk |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents held. The Company maintains cash and cash equivalents with various financial institutions. Cash deposits maintained at financial institutions may exceed the federally insured limit. | |
Selected_Quarterly_Information
Selected Quarterly Information (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Selected Quarterly Information (Unaudited) | ||||||||||||||
Selected Quarterly Information (Unaudited) | 19. Selected Quarterly Information (Unaudited) | |||||||||||||
Quarter | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
(in thousands) | ||||||||||||||
2014 | ||||||||||||||
Total revenues | $ | 390,416 | 400,634 | 409,558 | 397,151 | |||||||||
Net income | $ | 74,864 | 82,988 | 74,586 | 80,893 | |||||||||
Net income per share, basic and diluted | $ | 0.88 | 0.98 | 0.89 | 0.97 | |||||||||
Quarter | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
(in thousands) | ||||||||||||||
2013 | ||||||||||||||
Total revenues | $ | 316,555 | 331,706 | 347,089 | 375,004 | |||||||||
Net income | $ | 53,863 | 51,957 | 68,419 | 78,759 | |||||||||
Net income per share, basic and diluted | $ | 0.63 | 0.61 | 0.80 | 0.92 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Description of Business | |
Basis of Presentation | |
Basis of Presentation | |
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Amounts in the accompanying financial statements and notes are rounded to the nearest thousand unless otherwise stated. | |
The Company operates in one business segment. Although the Company does provide supplemental disclosure regarding assets under management and underwriting revenues and expenses by distribution channel, the Company's determination that it operates in one business segment is based on the fact that the Company's Chief Executive Officer, who is the chief operating decision maker, reviews financial results, assesses performance and allocates resources at the consolidated level. | |
Effective January 1, 2013, the Company adopted an amended accounting standard to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to present separately for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. The adoption was effective prospectively and did not have any effect on the Company's results of operations, financial position or liquidity. | |
In 2012, the Company signed a definitive agreement to sell its Legend group of subsidiaries ("Legend") and the sale closed effective January 1, 2013. The operational results of Legend have been reclassified as discontinued operations in our consolidated financial statements for all periods presented. Unless otherwise stated, footnote references refer to continuing operations. | |
Use of Estimates | Use of Estimates |
GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and accompanying notes, and related disclosures of commitments and contingencies. Estimates are used for, but are not limited to, depreciation and amortization, income taxes, valuation of assets, pension and postretirement obligations, and contingencies. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Actual results could differ from our estimates. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents include cash on hand and short-term investments. We consider all highly liquid investments with maturities upon acquisition of 90 days or less to be cash equivalents. Cash and cash equivalents—restricted represents cash held for the benefit of customers segregated in compliance with federal and other regulations. | |
Disclosures About Fair Value of Financial Instruments | Disclosures About Fair Value of Financial Instruments |
Fair value of cash and cash equivalents, receivables and payables approximates carrying value. Fair value of long-term debt is disclosed in the indebtedness footnote. Fair values for investment securities are based on quoted market prices, where available. Otherwise, fair values for investment securities are based on Level 2 or Level 3 inputs detailed in Note 4. | |
Investment Securities and Investments in Affiliated Mutual Funds | Investment Securities and Investments in Affiliated Funds |
Our investments are comprised of United States, state and government obligations, corporate debt securities and investments in affiliated funds. Affiliated funds, which include the Funds and Selector Management Funds, are investments we have made for both general corporate investment purposes and to provide seed capital for new mutual funds and sub-funds. Investments are classified as available for sale or trading. Unrealized holding gains and losses on securities available for sale, net of related tax effects, are excluded from earnings until realized and are reported as a separate component of comprehensive income. For trading securities, unrealized holding gains and losses are included in earnings. Realized gains and losses are computed using the specific identification method for investment securities, other than affiliated funds. For affiliated funds, realized gains and losses are computed using the average cost method. | |
Our available for sale investments are reviewed each quarter and adjusted for other than temporary declines in value. We consider factors affecting the issuer and the industry the issuer operates in, general market trends including interest rates, and our ability and intent to hold an investment until it has recovered. Consideration is given to the length of time an investment's market value has been below carrying value and prospects for recovery to carrying value. When a decline in the fair value of equity securities is determined to be other than temporary, the unrealized loss recorded net of tax in other comprehensive income is realized as a charge to net income and a new cost basis is established for financial reporting purposes. When a decline in the fair value of debt securities is determined to be other than temporary, the amount of the impairment recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If so, the other than temporary impairment recognized in earnings is equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. If not, the portion of the impairment related to the credit loss is recognized in earnings while the portion of the impairment related to other factors is recognized in other comprehensive income, net of tax. | |
Property and Equipment | Property and Equipment |
Property and equipment are carried at cost. The costs of improvements that extend the life of a fixed asset are capitalized, while the costs of repairs and maintenance are expensed as incurred. Depreciation and amortization are calculated and recorded using the straight-line method over the estimated useful life of the related asset (or lease term if shorter), generally three to 10 years for furniture and fixtures; one to 10 years for computer software; one to five years for data processing equipment; one to 40 years for buildings; three to 26 years for other equipment; and up to 15 years for leasehold improvements, which is the lesser of the lease term or expected life. | |
Software Developed for Internal Use | Software Developed for Internal Use |
Certain internal costs incurred in connection with developing or obtaining software for internal use are capitalized in accordance with "Intangibles—Goodwill and Other Topic," Accounting Standards Codification ("ASC") 350. Internal costs capitalized are included in property and equipment, net in the consolidated balance sheets, and were $9.1 million and $10.4 million as of December 31, 2014 and 2013, respectively. Amortization begins when the software project is complete and ready for its intended use and continues over the estimated useful life, generally one to 10 years. | |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets |
Goodwill represents the excess of the cost of the Company's investment in the net assets of acquired companies over the fair value of the underlying identifiable net assets at the dates of acquisition. Goodwill is not amortized, but is reviewed annually for impairment in the second quarter of each year and when events or circumstances occur that indicate that goodwill might be impaired. Factors that the Company considers important in determining whether an impairment of goodwill or intangible assets might exist include significant continued underperformance compared to peers, the likelihood of termination or non-renewal of a mutual fund advisory or subadvisory contract or substantial changes in revenues earned from such contracts, significant changes in our business and products, material and ongoing negative industry or economic trends, or other factors specific to each asset being evaluated. | |
Prior to the sale of Legend effective January 1, 2013, the Company had two reporting units for goodwill: (i) investment management and related services, and (ii) Legend. The investment management and related services reporting unit's goodwill was recorded as part of the spin-off of the Company from its former parent, and to a lesser extent, was recorded as part of subsequent business combinations that were merged into existing investment management operations. Legend, our second reporting unit for goodwill, was a stand-alone investment management subsidiary and goodwill associated with Legend could be assessed separately from other investment management operations. Additional information related to the sale of Legend is included in Notes 6 and 7. | |
To determine the fair value of the Company's reporting unit, our review process uses the market and income approaches. In performing the analyses, the Company uses the best information available under the circumstances, including reasonable and supportable assumptions and projections. | |
The market approach employs market multiples for comparable publicly-traded companies in the financial services industry. Estimates of fair values of the reporting units are established using multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"). The Company believes that fair values calculated based on multiples of EBITDA are an accurate estimation of fair value. | |
If the fair value coverage margin calculated under the market approach is not considered significant, the Company utilizes a second approach, the income approach, to estimate fair values and averages the results under both methodologies. The income approach employs a discounted free cash flow approach that takes into account current actual results, projected future results, and the Company's estimated weighted average cost of capital. | |
The Company compares the fair values of the reporting units to their carrying amounts, including goodwill. If the carrying amount of the reporting unit exceeds its calculated fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. | |
Indefinite-life intangible assets represent advisory and subadvisory management contracts for managed assets obtained in acquisitions. The Company considers these contracts to be indefinite-life intangible assets as they are expected to be renewed without significant cost or modification of terms. The Company also tests these assets for impairment annually and when events or circumstances occur that indicate that the indefinite-life intangible asset might be impaired. If the carrying value of a management contract acquired exceeds its fair value, an impairment loss is recognized equal to that excess. Additional information related to the indefinite-life intangible assets is included in Note 7. | |
Deferred Sales Commissions | Deferred Sales Commissions |
We defer certain costs, principally sales commissions and related compensation, which are paid to financial advisors and broker/dealers in connection with the sale of certain mutual fund shares sold without a front-end load sales charge. The costs incurred at the time of the sale of Class B shares sold prior to January 1, 2014 are amortized on a straight-line basis over five years, which approximates the expected life of the shareholders' investments. Effective January 1, 2014, the Company suspended sales of Class B shares. The costs incurred at the time of the sale of Class C shares are amortized on a straight-line basis over 12 months. Prior to June 16, 2014, the costs incurred at the time of the sale of shares for certain asset allocation products were deferred and amortized on a straight-line basis, not to exceed three years. We recover deferred sales commissions and related compensation through Rule 12b-1 and other distribution fees, which are paid on the Class B and Class C shares of the Advisors Funds and Ivy Funds, along with contingent deferred sales charges ("CDSCs") paid by shareholders who redeem their shares prior to completion of the specified holding period (three years for shares of certain asset allocation products sold prior to June 16, 2014, six years for a Class B share and 12 months for a Class C share), as well as through client fees paid on the asset allocation products sold prior to June 16, 2014. Effective June 16, 2014 we no longer assess a CDSC to investors upon early redemption of asset allocation products and amounts deferred for sales commissions and related compensation are classified in the prepaid and other current asset and other non-current assets in our consolidated balance sheet. Should we lose our ability to recover deferred sales commissions through distribution fees or CDSCs, the value of these assets would immediately decline, as would future cash flows. We periodically review the recoverability of the deferred sales commission assets as events or changes in circumstances indicate that their carrying amount may not be recoverable and adjust them accordingly. Impairment adjustments are recognized in operating income as a component of amortization of deferred sales commissions. | |
Revenue Recognition | Revenue Recognition |
Investment Management and Advisory Fees | |
We recognize investment management fees as earned over the period in which services are rendered. We charge the Funds daily based upon average daily net assets under management in accordance with investment management agreements between the Funds and the Company. The majority of investment and/or advisory fees earned from institutional and separate accounts are charged either monthly or quarterly based upon an average of net assets under management in accordance with such investment management agreements. The Company may waive certain fees for investment management services at its discretion, or in accordance with contractual expense limitations, and these waivers are reflected as a reduction to investment management fees on the statement of income. | |
Our investment advisory business receives research products and services from broker/dealers through "soft dollar" arrangements. Consistent with the "soft dollar" safe harbor established by Section 28(e) of the Securities Exchange Act of 1934, as amended, the investment advisory business does not have any contractual obligation requiring it to pay for research products and services obtained through soft dollar arrangements with brokers. As a result, we present "soft dollar" arrangements on a net basis. | |
The Company has contractual arrangements with third parties to provide subadvisory services. Investment advisory fees are recorded gross of any subadvisory payments and are included in investment management fees based on management's determination that the Company is acting in the capacity of principal service provider with respect to its relationship with the Funds. Any corresponding fees paid to subadvisors are included in operating expenses. | |
Distribution, Underwriter and Service Fees | |
Underwriting and distribution commission revenues resulting from the sale of investment products are recognized on the trade date. When a client purchases Class A or Class E shares (front-end load), the client pays an initial sales charge of up to 5.75% of the amount invested. The sales charge for Class A or Class E shares typically declines as the investment amount increases. In addition, investors may combine their purchases of all fund shares to qualify for a reduced sales charge. When a client invests in an asset allocation product, Class A shares are purchased at net asset value and we do not charge an initial sales charge. For client purchases of Class B shares (back-end load) prior to January 1, 2014, and Class C shares (level-load), we do not charge an initial sales charge. Effective January 1, 2014, the Company suspended sales of Class B shares. | |
Under a Rule 12b-1 service plan, the Funds may charge a maximum fee of 0.25% of the average daily net assets under management for Class B, C, E and Ivy Funds Y shares for expenses paid to broker/dealers and other sales professionals in connection with providing ongoing services to the Funds' shareholders and/or maintaining the Funds' shareholder accounts, with the exception of the Funds' Class R shares, for which the maximum fee is 0.50% and for the Class I, R6 and Advisors Funds Y shares, which do not charge a service fee. The Funds' Class B and Class C shares may charge a maximum of 0.75% of the average daily net assets under management under a Rule 12b-1 distribution plan to broker/dealers and other sales professionals for their services in connection with distributing shares of that class. The Funds' Class A shares may charge a maximum fee of 0.25% of the average daily net assets under management under a Rule 12b-1 service and distribution plan for expenses detailed previously. | |
Fee-based asset allocation revenues are charged quarterly based upon average daily net assets under management. For certain types of investment products, primarily variable annuities, distribution revenues are generally calculated based upon average daily net assets under management and are recognized monthly. Fees collected from advisors for services related to technology and errors and omissions insurance are recorded in underwriting and distribution fees on a gross basis, as the Company is the primary obligor in these arrangements. | |
Shareholder service fees are recognized monthly and are calculated based on the number of accounts or assets under management as applicable. Other administrative service fee revenues are recognized when contractual obligations are fulfilled or as services are provided. | |
Advertising and Promotion | Advertising and Promotion |
We expense all advertising and promotion costs as incurred. Advertising expense was $15.7 million, $13.3 million and $9.9 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is classified in both underwriting and distribution expense and general and administrative expense in the consolidated statements of income. | |
Share-Based Compensation | Share-Based Compensation |
We account for share-based compensation expense using the fair value method. Under the fair value method, share-based compensation expense reflects the fair value of share-based awards measured at grant date, is recognized over the service period, and is adjusted each period for anticipated forfeitures. The Company also issues share-based awards to our financial advisors who are independent contractors. Changes in the Company's share price result in variable compensation expense over the vesting period. The fair value of options granted would be calculated using a Black-Scholes option-pricing model. The Black-Scholes model incorporates assumptions as to dividend yield, risk-free interest rate, expected volatility and expected life of the option. We have not issued options since 2002 and do not have any options outstanding as of December 31, 2014. | |
Accounting for Income Taxes | Accounting for Income Taxes |
Income tax expense is based on pre-tax financial accounting income, including adjustments made for the recognition or derecognition related to uncertain tax positions. The recognition or derecognition of income tax expense related to uncertain tax positions is determined under the guidance as prescribed by "Income Taxes Topic," ASC 740. Deferred tax assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is recognized for deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. | |
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Investment Securities | |||||||||||||||||||
Schedule of investment securities | |||||||||||||||||||
2014 | Amortized | Unrealized | Unrealized | Fair value | |||||||||||||||
cost | gains | losses | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Available for sale securities: | |||||||||||||||||||
Affiliated funds | $ | 162,425 | 4,237 | -5,392 | 161,270 | ||||||||||||||
| | | | | | | | | | | | | |||||||
$ | 162,425 | 4,237 | -5,392 | 161,270 | |||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Trading securities: | |||||||||||||||||||
Mortgage-backed securities | 28 | ||||||||||||||||||
Common stock | 72 | ||||||||||||||||||
Affiliated funds | 81,913 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
82,013 | |||||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Total investment securities | 243,283 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
2013 | Amortized | Unrealized | Unrealized | Fair value | |||||||||||||||
cost | gains | losses | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Available for sale securities: | |||||||||||||||||||
Mortgage-backed securities | $ | 8 | 1 | — | 9 | ||||||||||||||
Corporate bonds | 14,568 | 61 | — | 14,629 | |||||||||||||||
Affiliated funds | 87,710 | 5,899 | -957 | 92,652 | |||||||||||||||
| | | | | | | | | | | | | |||||||
$ | 102,286 | 5,961 | -957 | 107,290 | |||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Trading securities: | |||||||||||||||||||
Mortgage-backed securities | 37 | ||||||||||||||||||
Municipal bonds | 501 | ||||||||||||||||||
Corporate bonds | 9,412 | ||||||||||||||||||
Common stock | 60 | ||||||||||||||||||
Affiliated funds | 84,048 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
94,058 | |||||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Total investment securities | 201,348 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Summary of available for sale affiliated mutual funds with fair values below carrying values | A summary of available for sale affiliated funds with fair values below carrying values at December 31, 2014 is as follows: | ||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||
losses | losses | losses | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Affiliated funds | $ | 66,858 | -5,362 | 1,187 | -30 | 68,045 | -5,392 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total temporarily impaired securities | $ | 66,858 | -5,362 | 1,187 | -30 | 68,045 | -5,392 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Schedule of fair value of investment securities | |||||||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Mortgage-backed securities | $ | — | 28 | — | 28 | ||||||||||||||
Common stock | 72 | — | — | 72 | |||||||||||||||
Affiliated funds | 243,183 | — | — | 243,183 | |||||||||||||||
| | | | | | | | | | | | | |||||||
Total | $ | 243,255 | $ | 28 | $ | — | $ | 243,283 | |||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Mortgage-backed securities | — | 46 | — | 46 | |||||||||||||||
Municipal bonds | — | 501 | — | 501 | |||||||||||||||
Corporate bonds | — | 24,041 | — | 24,041 | |||||||||||||||
Common stock | 60 | — | — | 60 | |||||||||||||||
Affiliated funds | 176,700 | — | — | 176,700 | |||||||||||||||
| | | | | | | | | | | | | |||||||
Total | $ | 176,760 | $ | 24,588 | $ | — | $ | 201,348 | |||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property and Equipment | ||||||||||
Schedule of property and equipment, net | ||||||||||
2014 | 2013 | Estimated | ||||||||
useful lives | ||||||||||
(in thousands) | ||||||||||
Leasehold improvements | $ | 21,039 | 19,991 | 1 - 15 years | ||||||
Furniture and fixtures | 29,462 | 32,688 | 3 - 10 years | |||||||
Equipment | 20,829 | 19,984 | 3 - 26 years | |||||||
Computer software | 74,506 | 80,692 | 1 - 10 years | |||||||
Data processing equipment | 23,684 | 22,374 | 1 - 5 years | |||||||
Buildings | 11,905 | 6,077 | 1 - 40 years | |||||||
Land | 3,804 | 1,940 | ||||||||
| | | | | | | | | | |
Property and equipment, at cost | 185,229 | 183,746 | ||||||||
Accumulated depreciation | -92,925 | -111,108 | ||||||||
| | | | | | | | | | |
Property and equipment, net | $ | 92,304 | 72,638 | |||||||
| | | | | | | | | | |
| | | | | | | | | | |
Goodwill_and_Identifiable_Inta1
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Goodwill and Identifiable Intangible Assets | |||||||
Schedule of goodwill and identifiable intangible assets | |||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Goodwill | $ | 106,970 | 106,970 | ||||
Mutual fund management advisory contracts | 42,753 | 38,699 | |||||
Mutual fund management subadvisory contracts | 8,400 | 16,300 | |||||
| | | | | | | |
Total identifiable intangible assets | 51,153 | 54,999 | |||||
| | | | | | | |
Total | $ | 158,123 | 161,969 | ||||
| | | | | | | |
| | | | | | | |
Indebtedness_Tables
Indebtedness (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Indebtedness | |||||||
Summary of long-term debt | |||||||
2014 | 2013 | ||||||
(in thousands) | |||||||
Principal amount unsecured 5.0% senior notes due in 2018 | $ | 95,000 | 95,000 | ||||
Principal amount unsecured 5.75% senior notes due in 2021 | 95,000 | 95,000 | |||||
| | | | | | | |
Total | $ | 190,000 | 190,000 | ||||
| | | | | | | |
| | | | | | | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes | ||||||||||
Schedule of provision for income taxes | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Currently payable: | ||||||||||
Federal | $ | 161,863 | 131,000 | 104,922 | ||||||
State | 14,206 | 12,197 | 9,335 | |||||||
Foreign | 35 | 37 | — | |||||||
| | | | | | | | | | |
176,104 | 143,234 | 114,257 | ||||||||
Deferred taxes | 728 | -3,001 | -5,782 | |||||||
| | | | | | | | | | |
Provision for income taxes | $ | 176,832 | 140,233 | 108,475 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
Schedule of reconciliation of statutory federal income tax rate with effective income tax rate | ||||||||||
2014 | 2013 | 2012 | ||||||||
Statutory federal income tax rate | 35.0% | 35.0% | 35.0% | |||||||
State income taxes, net of federal tax benefits | 2.1 | 2.2 | 2.2 | |||||||
State tax incentives | -0.2 | -0.1 | -0.2 | |||||||
Valuation allowance on losses capital in nature | -1 | -1.8 | -0.8 | |||||||
Other items | 0.2 | 0.4 | -0.2 | |||||||
| | | | | | | | | | |
Effective income tax rate | 36.1% | 35.7% | 36.0% | |||||||
| | | | | | | | | | |
| | | | | | | | | | |
Schedule of deferred tax liabilities and deferred tax assets | ||||||||||
2014 | 2013 | |||||||||
(in thousands) | ||||||||||
Deferred tax liabilities: | ||||||||||
Deferred sales commissions | $ | -4,285 | -6,928 | |||||||
Property and equipment | -10,335 | -6,706 | ||||||||
Benefit plans | -11,452 | -10,620 | ||||||||
Identifiable intangible assets | -12,562 | -16,697 | ||||||||
Unrealized gains on investment securities | — | -1,853 | ||||||||
Prepaid expenses | -2,150 | -2,100 | ||||||||
| | | | | | | ||||
Total gross deferred liabilities | -40,784 | -44,904 | ||||||||
| | | | | | | ||||
Deferred tax assets: | ||||||||||
Accrued compensation | 9,098 | 10,893 | ||||||||
Additional pension and postretirement liability | 28,389 | 11,663 | ||||||||
Other accrued expenses | 5,789 | 5,151 | ||||||||
Unrealized losses on investment securities | 673 | 962 | ||||||||
Unrealized losses on investment in partnerships | 370 | 2,031 | ||||||||
Capital loss carryforwards | 6,849 | 9,474 | ||||||||
Nonvested stock | 20,300 | 21,860 | ||||||||
Unused state tax credits | 992 | 866 | ||||||||
State net operating loss carryforwards | 5,718 | 6,521 | ||||||||
Other | 3,572 | 3,962 | ||||||||
| | | | | | | ||||
Total gross deferred assets | 81,750 | 73,383 | ||||||||
Valuation allowance | -13,476 | -16,986 | ||||||||
| | | | | | | ||||
Net deferred tax asset | $ | 27,490 | 11,493 | |||||||
| | | | | | | ||||
| | | | | | | ||||
Summary of the Company's reconciliation of unrecognized tax benefits, excluding penalties and interest | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Balance at January 1 | $ | 9,013 | 8,322 | 7,467 | ||||||
Increases during the year: | ||||||||||
Gross increases—tax positions in prior period | 433 | 644 | 275 | |||||||
Gross increases—current-period tax positions | 656 | 1,355 | 2,215 | |||||||
Decreases during the year: | ||||||||||
Gross decreases—tax positions in prior period | -192 | -71 | -429 | |||||||
Decreases due to settlements with taxing authorities | -877 | -154 | — | |||||||
Decreases due to lapse of statute of limitations | -928 | -1,083 | -1,206 | |||||||
| | | | | | | | | | |
Balance at December 31 | $ | 8,105 | 9,013 | 8,322 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
Pension_Plan_and_Postretiremen1
Pension Plan and Postretirement Benefits Other Than Pension (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Pension Plan and Postretirement Benefits Other Than Pension | |||||||||||||||||||
Schedule of changes in net funded status, disclosure of amounts recognized in the balance sheet, and the assumptions used to determine the benefit obligation | |||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||
Net benefit obligation at beginning of year | $ | 172,105 | 184,165 | 148,412 | 8,172 | 8,792 | 8,145 | ||||||||||||
Service cost | 10,084 | 11,011 | 9,373 | 719 | 788 | 693 | |||||||||||||
Interest cost | 8,395 | 7,711 | 7,570 | 397 | 361 | 400 | |||||||||||||
Benefits paid | -8,733 | -19,283 | -5,760 | -527 | -283 | -560 | |||||||||||||
Actuarial (gain) loss | 26,410 | -11,499 | 24,570 | 760 | -1,807 | -223 | |||||||||||||
Plan amendments | -176 | — | — | — | — | — | |||||||||||||
Retiree contributions | — | — | — | 381 | 321 | 337 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Net benefit obligation at end of year | $ | 208,085 | 172,105 | 184,165 | 9,902 | 8,172 | 8,792 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Schedule of pension plan asset allocation | |||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Change in plan assets: | |||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 170,430 | 133,911 | 103,404 | — | — | — | ||||||||||||
Actual return on plan assets | -6,149 | 38,802 | 21,267 | — | — | — | |||||||||||||
Employer contributions | 20,000 | 17,000 | 15,000 | 146 | -38 | 223 | |||||||||||||
Retiree contributions | — | — | — | 381 | 321 | 337 | |||||||||||||
Benefits paid | -8,733 | -19,283 | -5,760 | -527 | -283 | -560 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Fair value of plan assets at end of year | $ | 175,548 | 170,430 | 133,911 | — | — | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Funded status at end of year | $ | -32,537 | $ | -1,675 | -50,254 | -9,902 | -8,172 | -8,792 | |||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
(in thousands, except percentage data) | |||||||||||||||||||
Amounts recognized in the statement of financial position: | |||||||||||||||||||
Current liabilities | $ | — | — | — | -279 | -260 | -304 | ||||||||||||
Noncurrent liabilities | -32,537 | -1,675 | -50,254 | -9,623 | -7,912 | -8,488 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Net amount recognized at end of year | $ | -32,537 | -1,675 | -50,254 | -9,902 | -8,172 | -8,792 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income: | |||||||||||||||||||
Transition obligation | $ | -21 | -27 | -32 | — | — | — | ||||||||||||
Prior service cost | -1,179 | -1,822 | -2,377 | -17 | -72 | -127 | |||||||||||||
Accumulated gain (loss) | -75,681 | -30,602 | -74,286 | 265 | 1,041 | -765 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Accumulated other comprehensive income (loss) | -76,881 | -32,451 | -76,695 | 248 | 969 | -892 | |||||||||||||
Cumulative employer contributions in excess of net periodic benefit cost | 44,344 | 30,776 | 26,441 | -10,150 | -9,141 | -7,900 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Net amount recognized at end of year | $ | -32,537 | -1,675 | -50,254 | -9,902 | -8,172 | -8,792 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Weighted average assumptions used to determine benefit obligation at December 31: | |||||||||||||||||||
Discount rate | 4.13% | 4.97% | 4.22% | 4.07% | 4.94% | 4.18% | |||||||||||||
Rate of compensation increase | 5.12% | 5.12% | 3.99% | Not applicable | |||||||||||||||
Summary of entity's pension plan assets | |||||||||||||||||||
Plan assets by category | Percentage of | Percentage of | |||||||||||||||||
Plan Assets at | Plan Assets at | ||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||
Cash | 23% | 18% | |||||||||||||||||
Equity securities: | |||||||||||||||||||
Domestic | 51% | 33% | |||||||||||||||||
International | 17% | 40% | |||||||||||||||||
Fixed income securities | 1% | 1% | |||||||||||||||||
Private equity | 1% | 1% | |||||||||||||||||
Gold bullion | 7% | 7% | |||||||||||||||||
| | | | | | | |||||||||||||
Total | 100% | 100% | |||||||||||||||||
| | | | | | | |||||||||||||
| | | | | | | |||||||||||||
Summary of entity's pension plan assets fair value | |||||||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Equity securities: | |||||||||||||||||||
Domestic | $ | 90,061 | — | — | 90,061 | ||||||||||||||
International | 29,351 | — | — | 29,351 | |||||||||||||||
Equity derivatives | — | 116 | — | 116 | |||||||||||||||
Fixed income securities: | |||||||||||||||||||
Mortgage-backed securities | — | 14 | — | 14 | |||||||||||||||
Corporate bond | — | — | 1,884 | 1,884 | |||||||||||||||
Private equity | — | — | 1,518 | 1,518 | |||||||||||||||
Gold bullion | 12,209 | — | — | 12,209 | |||||||||||||||
| | | | | | | | | | | | | |||||||
Total investment securities | 131,621 | 130 | 3,402 | 135,153 | |||||||||||||||
Cash and other | 40,395 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
Total | $ | 175,548 | |||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Equity securities: | |||||||||||||||||||
Domestic | $ | 54,558 | — | — | 54,558 | ||||||||||||||
International | 67,889 | — | — | 67,889 | |||||||||||||||
Equity derivatives | — | 471 | — | 471 | |||||||||||||||
Fixed income securities: | |||||||||||||||||||
Mortgage-backed securities | — | 17 | — | 17 | |||||||||||||||
Corporate bond | — | — | 1,900 | 1,900 | |||||||||||||||
Private equity | — | — | 2,119 | 2,119 | |||||||||||||||
Gold bullion | 12,316 | — | — | 12,316 | |||||||||||||||
| | | | | | | | | | | | | |||||||
Total investment securities | 134,763 | 488 | 4,019 | 139,270 | |||||||||||||||
Cash and other | 31,160 | ||||||||||||||||||
| | | | | | | | | | | | | |||||||
Total | $ | 170,430 | |||||||||||||||||
| | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | |||||||
Summary of the activity of plan assets categorized as Level 3 | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Level 3 plan assets at beginning of year | $ | 4,019 | 1,772 | ||||||||||||||||
Purchases, issuances and settlements | 1,900 | ||||||||||||||||||
— | |||||||||||||||||||
Valuation change | -617 | 347 | |||||||||||||||||
| | | | | | | |||||||||||||
Level 3 plan assets at end of year | $ | 3,402 | 4,019 | ||||||||||||||||
| | | | | | | |||||||||||||
| | | | | | | |||||||||||||
Schedule of components of net periodic pension and other postretirement costs | |||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||
Service cost | $ | 10,084 | 11,011 | 9,373 | 719 | 788 | 693 | ||||||||||||
Interest cost | 8,395 | 7,711 | 7,570 | 397 | 361 | 400 | |||||||||||||
Expected return on plan assets | -14,016 | -11,185 | -8,799 | — | — | — | |||||||||||||
Actuarial loss amortization | 1,496 | 4,567 | 4,563 | -17 | — | 12 | |||||||||||||
Prior service cost amortization | 468 | 555 | 555 | 55 | 55 | 55 | |||||||||||||
Transition obligation amortization | 5 | 5 | 5 | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Net periodic benefit cost (1) | $ | 6,432 | 12,664 | 13,267 | 1,154 | 1,204 | 1,160 | ||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
-1 | Net periodic pension benefit and postretirement medical costs related to discontinued operations and included in the table above were $749 thousand for the year ended December 31, 2012. | ||||||||||||||||||
Schedule of weighted average assumptions used to determine net periodic cost and benefit obligation | |||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.97% | 4.22% | 4.99% | 4.94% | 4.18% | 5.00% | |||||||||||||
Expected return on plan assets | 7.75% | 7.75% | 7.75% | Not applicable | |||||||||||||||
Rate of compensation increase | 5.12% | 3.99% | 4.04% | Not applicable | |||||||||||||||
Schedule of expected benefit payments to be paid | |||||||||||||||||||
Pension | Other | ||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||
Benefits | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
2015 | $ | 6,813 | 279 | ||||||||||||||||
2016 | 8,743 | 341 | |||||||||||||||||
2017 | 9,929 | 378 | |||||||||||||||||
2018 | 10,066 | 478 | |||||||||||||||||
2019 | 12,161 | 558 | |||||||||||||||||
2020 through 2024 | 74,734 | 3,839 | |||||||||||||||||
| | | | | | | |||||||||||||
$ | 122,446 | 5,873 | |||||||||||||||||
| | | | | | | |||||||||||||
| | | | | | | |||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity | |||||||||||||
Components of basic and diluted earnings per share | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Income from continuing operations | $ | 313,331 | 252,998 | 192,528 | |||||||||
| | | | | | | | | | ||||
| | | | | | | | | | ||||
Weighted average shares outstanding—basic | 84,485 | 85,589 | 85,726 | ||||||||||
Dilutive potential shares from stock options | — | — | 2 | ||||||||||
| | | | | | | | | | ||||
Weighted average shares outstanding—diluted | 84,485 | 85,589 | 85,728 | ||||||||||
| | | | | | | | | | ||||
| | | | | | | | | | ||||
Earnings per share from continuing operations, basic and diluted | $ | 3.71 | $ | 2.96 | 2.25 | ||||||||
Summary of other comprehensive income (loss) activity | |||||||||||||
Year ended December 31, 2014 | Unrealized | Change in | Pension and | Total | |||||||||
gains | valuation | postretirement | accumulated | ||||||||||
on investment | allowance for | benefits | other | ||||||||||
securities | unrealized | comprehensive | |||||||||||
gains | income (loss) | ||||||||||||
(losses) on | |||||||||||||
investment | |||||||||||||
securities | |||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2013 | $ | 3,150 | 810 | -19,819 | -15,859 | ||||||||
Other comprehensive loss before reclassification | -636 | -381 | -29,689 | -30,706 | |||||||||
Amount reclassified from accumulated other comprehensive income | -3,241 | -1,900 | 1,263 | -3,878 | |||||||||
| | | | | | | | | | | | | |
Net current period other comprehensive loss | -3,877 | -2,281 | -28,426 | -34,584 | |||||||||
| | | | | | | | | | | | | |
Balance at December 31, 2014 | $ | -727 | $ | -1,471 | -48,245 | -50,443 | |||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Year ended December 31, 2013 | Unrealized | Change in | Pension and | Total | |||||||||
gains | valuation | postretirement | accumulated | ||||||||||
on investment | allowance for | benefits | other | ||||||||||
securities | unrealized | comprehensive | |||||||||||
gains | income (loss) | ||||||||||||
(losses) on | |||||||||||||
investment | |||||||||||||
securities | |||||||||||||
(in thousands) | |||||||||||||
Balance at December 31, 2012 | $ | 1,823 | 32 | -48,652 | -46,797 | ||||||||
Other comprehensive income before reclassification | 10,447 | 6,085 | 25,592 | 42,124 | |||||||||
Amount reclassified from accumulated other comprehensive income | -9,120 | -5,307 | 3,241 | -11,186 | |||||||||
| | | | | | | | | | | | | |
Net current period other comprehensive income | 1,327 | 778 | 28,833 | 30,938 | |||||||||
| | | | | | | | | | | | | |
Balance at December 31, 2013 | $ | 3,150 | $ | 810 | -19,819 | -15,859 | |||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Summary of reclassifications from accumulated other comprehensive income (loss) and included in net income | |||||||||||||
For the year ended December 31, 2014 | |||||||||||||
Pre-tax | Tax | Net of tax | Statement of income line item | ||||||||||
(expense) | |||||||||||||
benefit | |||||||||||||
(in thousands) | |||||||||||||
Reclassifications included in net income: | |||||||||||||
Realized gain on sale of available for sale investment securities | $ | 5,146 | -1,905 | 3,241 | Investment and other income | ||||||||
Valuation allowance | — | 1,900 | 1,900 | Provision for income taxes | |||||||||
Amortization of pension and postretirement benefits | -2,007 | 744 | -1,263 | Underwriting and distribution expense and Compensation and related costs | |||||||||
| | | | | | | | | | | | ||
Total | $ | 3,139 | 739 | 3,878 | |||||||||
| | | | | | | | | | | | ||
| | | | | | | | | | | | ||
For the year ended December 31, 2013 | |||||||||||||
Pre-tax | Tax | Net of tax | Statement of income line item | ||||||||||
(expense) | |||||||||||||
benefit | |||||||||||||
(in thousands) | |||||||||||||
Reclassifications included in net income: | |||||||||||||
Realized gain on sale of available for sale investment securities | $ | 14,417 | -5,297 | 9,120 | Investment and other income | ||||||||
Valuation allowance | — | 5,307 | 5,307 | Provision for income taxes | |||||||||
Amortization of pension and postretirement benefits | -5,182 | 1,941 | -3,241 | Underwriting and distribution expense and Compensation and related costs | |||||||||
| | | | | | | | | | | | ||
Total | $ | 9,235 | 1,951 | 11,186 | |||||||||
| | | | | | | | | | | | ||
| | | | | | | | | | | | ||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Share-Based Compensation | |||||||
Summary of nonvested share activity and related fair value | |||||||
Nonvested | Weighted | ||||||
Stock Shares | Average | ||||||
Grant Date | |||||||
Fair Value | |||||||
Nonvested at December 31, 2013 | 4,305,950 | $ | 38.50 | ||||
Granted | 1,103,813 | 68.00 | |||||
Vested | -1,533,446 | 35.58 | |||||
Forfeited | -434,115 | 45.56 | |||||
| | | | | | | |
Nonvested at December 31, 2014 | 3,442,202 | $ | 48.37 | ||||
| | | | | | | |
| | | | | | | |
Uniform_Net_Capital_Rule_Requi1
Uniform Net Capital Rule Requirements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Uniform Net Capital Rule Requirements | |||||||||||||
Schedule of net capital and aggregated indebtedness information for broker/dealer subsidiaries | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
W&R | IFDI | W&R | IFDI | ||||||||||
Net capital | $ | 10,965 | 19,455 | 23,688 | 14,648 | ||||||||
Required capital | 250 | 3,995 | 250 | 3,340 | |||||||||
| | | | | | | | | | | | | |
Excess of required capital | $ | 10,715 | 15,460 | 23,438 | 11,308 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Ratio of aggregate indebtedness to net capital | Not | Not | |||||||||||
applicable | 3.08 to 1.0 | applicable | 3.42 to 1.0 | ||||||||||
Rental_Expense_and_Lease_Commi1
Rental Expense and Lease Commitments (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Rental Expense and Lease Commitments | ||||
Schedule of future minimum rental commitments under non-cancelable operating leases | ||||
Year | Commitments | |||
(in thousands) | ||||
2015 | $ | 21,927 | ||
2016 | 18,688 | |||
2017 | 14,410 | |||
2018 | 10,121 | |||
2019 | 5,634 | |||
Thereafter | 14,353 | |||
| | | | |
$ | 85,133 | |||
| | | | |
| | | | |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Related Party Transactions | |||||||||||
Schedule of revenues for services provided or related to the Funds | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Investment management fees | $ | 709,179 | 602,120 | 506,081 | |||||||
Rule 12b-1 service and distribution fees | 338,846 | 299,442 | 259,803 | ||||||||
Shareholder service fees | 150,979 | 137,093 | 128,109 | ||||||||
| | | | | | | | | | | |
Total revenues | $ | 1,199,004 | 1,038,655 | 893,993 | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Selected_Quarterly_Information1
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Selected Quarterly Information (Unaudited) | ||||||||||||||
Schedule of selected quarterly Information | ||||||||||||||
Quarter | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
(in thousands) | ||||||||||||||
2014 | ||||||||||||||
Total revenues | $ | 390,416 | 400,634 | 409,558 | 397,151 | |||||||||
Net income | $ | 74,864 | 82,988 | 74,586 | 80,893 | |||||||||
Net income per share, basic and diluted | $ | 0.88 | 0.98 | 0.89 | 0.97 | |||||||||
Quarter | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
(in thousands) | ||||||||||||||
2013 | ||||||||||||||
Total revenues | $ | 316,555 | 331,706 | 347,089 | 375,004 | |||||||||
Net income | $ | 53,863 | 51,957 | 68,419 | 78,759 | |||||||||
Net income per share, basic and diluted | $ | 0.63 | 0.61 | 0.80 | 0.92 | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
item | item | ||
Summary of Significant Accounting Policies | |||
Number of operating business segments | 1 | ||
Summary of property and equipment | |||
Internal costs capitalized | $9.10 | $10.40 | |
Goodwill and Identifiable Intangible Assets | |||
Number of reporting units for goodwill | 2 | ||
Furniture and fixtures | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 3 years | ||
Furniture and fixtures | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 10 years | ||
Computer software | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 1 year | ||
Computer software | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 10 years | ||
Data processing equipment | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 1 year | ||
Data processing equipment | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 5 years | ||
Buildings | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 1 year | ||
Buildings | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 40 years | ||
Other equipment | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 3 years | ||
Other equipment | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 26 years | ||
Leasehold improvements | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 1 year | ||
Leasehold improvements | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 15 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2014 | |
Class A | |
Deferred Sales Commissions | |
Maximum service plan fee (as a percent) | 0.25% |
Maximum distribution plan fee (as a percent) | 0.25% |
Class A | Maximum | |
Deferred Sales Commissions | |
Sales charge (as a percent) | 5.75% |
Class B | |
Deferred Sales Commissions | |
Amortization period of the cost incurred at the time of sale | 5 years |
Required holding period of shares | 6 years |
Maximum service plan fee (as a percent) | 0.25% |
Maximum distribution plan fee (as a percent) | 0.75% |
Class C | |
Deferred Sales Commissions | |
Amortization period of the cost incurred at the time of sale | 12 months |
Required holding period of shares | 12 months |
Maximum service plan fee (as a percent) | 0.25% |
Maximum distribution plan fee (as a percent) | 0.75% |
Class E | |
Deferred Sales Commissions | |
Maximum service plan fee (as a percent) | 0.25% |
Class E | Maximum | |
Deferred Sales Commissions | |
Sales charge (as a percent) | 5.75% |
Ivy Funds Y | |
Deferred Sales Commissions | |
Maximum service plan fee (as a percent) | 0.25% |
Class R | |
Deferred Sales Commissions | |
Maximum service plan fee (as a percent) | 0.50% |
Asset allocation product | |
Deferred Sales Commissions | |
Required holding period of shares | 3 years |
Asset allocation product | Maximum | |
Deferred Sales Commissions | |
Amortization period of the cost incurred at the time of sale | 3 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Advertising and Promotion | |||
Advertising expense | $15.70 | $13.30 | $9.90 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available for sale securities: | ||
Amortized cost | $162,425 | $102,286 |
Unrealized gains | 4,237 | 5,961 |
Unrealized losses | -5,392 | -957 |
Fair value | 161,270 | 107,290 |
Trading securities: | ||
Fair value | 82,013 | 94,058 |
Investment securities | 243,283 | 201,348 |
Mortgage-backed securities | ||
Available for sale securities: | ||
Amortized cost | 8 | |
Unrealized gains | 1 | |
Fair value | 9 | |
Trading securities: | ||
Fair value | 28 | 37 |
Municipal bonds | ||
Trading securities: | ||
Fair value | 501 | |
Corporate bonds | ||
Available for sale securities: | ||
Amortized cost | 14,568 | |
Unrealized gains | 61 | |
Fair value | 14,629 | |
Trading securities: | ||
Fair value | 9,412 | |
Common Stock | ||
Trading securities: | ||
Fair value | 72 | 60 |
Affiliated funds | ||
Available for sale securities: | ||
Amortized cost | 162,425 | 87,710 |
Unrealized gains | 4,237 | 5,899 |
Unrealized losses | -5,392 | -957 |
Fair value | 161,270 | 92,652 |
Trading securities: | ||
Fair value | $81,913 | $84,048 |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value | |
Less than 12 months | $66,858 |
12 months or longer | 1,187 |
Total temporarily impaired securities | 68,045 |
Unrealized losses | |
Less than 12 months | -5,362 |
12 months or longer | -30 |
Total Unrealized losses on temporarily impaired securities | -5,392 |
Affiliated funds | |
Fair Value | |
Less than 12 months | 66,858 |
12 months or longer | 1,187 |
Total temporarily impaired securities | 68,045 |
Unrealized losses | |
Less than 12 months | -5,362 |
12 months or longer | -30 |
Total Unrealized losses on temporarily impaired securities | ($5,392) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investment Securities | |||
Investment securities, sold at fair value | $301,000,000 | $442,000,000 | $79,900,000 |
Net realized gain recognized from sale of available for sale securities | 5,146,000 | 14,417,000 | 3,163,000 |
Net realized gain (loss) recognized from sale of trading securities | 4,100,000 | 7,700,000 | 5,300,000 |
Available for sale securities, sold at fair value | 149,800,000 | 247,000,000 | 32,900,000 |
Sales of trading securities | $151,200,000 | $195,000,000 | $47,000,000 |
Investment_Securities_Details_2
Investment Securities (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investment Securities | ||
Amount of transfer between levels | $0 | $0 |
Fair value of investments | ||
Total investment securities | 243,283 | 201,348 |
Level 1 | ||
Fair value of investments | ||
Total investment securities | 243,255 | 176,760 |
Level 1 | Common Stock | ||
Fair value of investments | ||
Total investment securities | 72 | 60 |
Level 1 | Affiliated funds | ||
Fair value of investments | ||
Total investment securities | 243,183 | 176,700 |
Level 2 | ||
Fair value of investments | ||
Total investment securities | 28 | 24,588 |
Level 2 | Mortgage-backed securities | ||
Fair value of investments | ||
Total investment securities | 28 | 46 |
Level 2 | Municipal bonds | ||
Fair value of investments | ||
Total investment securities | 501 | |
Level 2 | Corporate bonds | ||
Fair value of investments | ||
Total investment securities | 24,041 | |
Total | Mortgage-backed securities | ||
Fair value of investments | ||
Total investment securities | 28 | 46 |
Total | Municipal bonds | ||
Fair value of investments | ||
Total investment securities | 501 | |
Total | Corporate bonds | ||
Fair value of investments | ||
Total investment securities | 24,041 | |
Total | Common Stock | ||
Fair value of investments | ||
Total investment securities | 72 | 60 |
Total | Affiliated funds | ||
Fair value of investments | ||
Total investment securities | $243,183 | $176,700 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of property and equipment | |||
Property and equipment, at cost | $185,229 | $183,746 | |
Accumulated depreciation | -92,925 | -111,108 | |
Property and equipment, net | 92,304 | 72,638 | |
Depreciation | 14,634 | 12,834 | 13,211 |
Leasehold improvements | |||
Summary of property and equipment | |||
Property and equipment, at cost | 21,039 | 19,991 | |
Leasehold improvements | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 1 year | ||
Leasehold improvements | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 15 years | ||
Furniture and fixtures | |||
Summary of property and equipment | |||
Property and equipment, at cost | 29,462 | 32,688 | |
Furniture and fixtures | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 3 years | ||
Furniture and fixtures | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 10 years | ||
Equipment | |||
Summary of property and equipment | |||
Property and equipment, at cost | 20,829 | 19,984 | |
Equipment | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 3 years | ||
Equipment | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 26 years | ||
Computer software | |||
Summary of property and equipment | |||
Property and equipment, at cost | 74,506 | 80,692 | |
Computer software | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 1 year | ||
Computer software | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 10 years | ||
Data processing equipment | |||
Summary of property and equipment | |||
Property and equipment, at cost | 23,684 | 22,374 | |
Data processing equipment | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 1 year | ||
Data processing equipment | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 5 years | ||
Buildings | |||
Summary of property and equipment | |||
Property and equipment, at cost | 11,905 | 6,077 | |
Buildings | Minimum | |||
Summary of property and equipment | |||
Estimated useful lives | 1 year | ||
Buildings | Maximum | |||
Summary of property and equipment | |||
Estimated useful lives | 40 years | ||
Land | |||
Summary of property and equipment | |||
Property and equipment, at cost | 3,804 | 1,940 | |
Property and equipment under capital leases | |||
Summary of property and equipment | |||
Property and equipment, at cost | 2,000 | 1,900 | |
Accumulated depreciation | $900 | $900 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Capital loss carryforward | ||
Operational results of Legend presented as discontinued operations | ||
Capital loss carryforward | $18.30 | |
Legend subsidiary | ||
Discontinued Operations | ||
Non-cash impairment charge | 42.4 | |
Excess working capital retained | 7.7 | |
Period of Earnout Provision | 2 years | |
Maximum earnout provision | 4.1 | |
Capital loss on sale | 47.8 | |
Operational results of Legend presented as discontinued operations | ||
Revenues | 74 | |
Income (loss) before provision for income taxes | $40.50 |
Goodwill_and_Identifiable_Inta2
Goodwill and Identifiable Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2012 | |
Goodwill and Identifiable Intangible Assets | |||||
Goodwill | $106,970,000 | $106,970,000 | |||
Mutual fund management advisory contracts | 42,753,000 | 38,699,000 | |||
Mutual fund management subadvisory contracts | 8,400,000 | 16,300,000 | |||
Total identifiable intangible assets | 51,153,000 | 54,999,000 | |||
Total goodwill and identifiable intangible assets | 158,123,000 | 161,969,000 | |||
Deferred tax liability | 12,562,000 | 16,697,000 | |||
Impairment charge | 7,900,000 | 7,900,000 | |||
Reduction of associated deferred tax liability | 2,900,000 | ||||
Intangible asset related to the fund adoption transaction agreement with Emerging Managers Group, L.P. | 4,100,000 | ||||
Legend subsidiary | |||||
Goodwill, annual impairment test | |||||
Goodwill | 59,200,000 | ||||
Impairment charges | $42,400,000 |
Indebtedness_Details
Indebtedness (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 28, 2013 | Jan. 31, 2011 | |
Indebtedness | ||||
Fair value of outstanding indebtedness | $207,900,000 | |||
Summary of long-term debt | ||||
Total long-term debt | 190,000,000 | 190,000,000 | ||
Credit Facility | ||||
Indebtedness | ||||
Revolving credit facility term | 5 years | |||
Maximum borrowing capacity | 125,000,000 | |||
Variable Rate Basis | LIBOR | |||
Amount that borrowing capacity can be expanded upon entity's request | 200,000,000 | |||
Borrowing outstanding under the facility | 0 | 0 | ||
Senior Notes | ||||
Indebtedness | ||||
Consolidated leverage ratio | 0.3 | |||
Consolidated interest coverage ratio | 52.3 | |||
Number of consecutive quarters for which the maximum consolidated leverage ratio is required to be maintained under financial covenants | 4 | |||
Number of consecutive quarters for which the minimum consolidated interest coverage ratio is required to be maintained under financial covenants | 4 | |||
Number of tranches of debt issuance | 2 | |||
Senior Notes | Maximum | ||||
Indebtedness | ||||
Consolidated leverage ratio | 3 | |||
Senior Notes | Minimum | ||||
Indebtedness | ||||
Consolidated interest coverage ratio | 4 | |||
Senior 5.0% unsecured notes due, 2018 ("Series A Notes") | ||||
Indebtedness | ||||
Interest rate of debt (as a percent) | 5.00% | |||
Summary of long-term debt | ||||
Total long-term debt | 95,000,000 | 95,000,000 | ||
Senior 5.75% unsecured notes due, 2021 ("Series B Notes") | ||||
Indebtedness | ||||
Interest rate of debt (as a percent) | 5.75% | |||
Summary of long-term debt | ||||
Total long-term debt | $95,000,000 | $95,000,000 | ||
Senior 5.60% unsecured notes due, 2011 | ||||
Indebtedness | ||||
Interest rate of debt (as a percent) | 5.60% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Currently payable: | |||
Federal | $161,863 | $131,000 | $104,922 |
State | 14,206 | 12,197 | 9,335 |
Foreign | 35 | 37 | |
Total currently payable | 176,104 | 143,234 | 114,257 |
Deferred taxes | 728 | -3,001 | -5,782 |
Provision for income taxes | $176,832 | $140,233 | $108,475 |
Reconciliation of statutory federal income tax rate with the entity's effective income tax rate | |||
Statutory federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefits (as a percent) | 2.10% | 2.20% | 2.20% |
State tax incentives (as a percent) | -0.20% | -0.10% | -0.20% |
Valuation allowance on losses capital in nature (as a percent) | -1.00% | -1.80% | -0.80% |
Other items (as a percent) | 0.20% | 0.40% | -0.20% |
Effective income tax rate (as a percent) | 36.10% | 35.70% | 36.00% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred tax liabilities: | ||
Deferred sales commissions | ($4,285,000) | ($6,928,000) |
Property and equipment | -10,335,000 | -6,706,000 |
Benefit plans | -11,452,000 | -10,620,000 |
Identifiable intangible assets | -12,562,000 | -16,697,000 |
Unrealized gains on investment securities | -1,853,000 | |
Prepaid expenses | -2,150,000 | -2,100,000 |
Total gross deferred liabilities | -40,784,000 | -44,904,000 |
Deferred tax assets: | ||
Accrued compensation | 9,098,000 | 10,893,000 |
Additional pension and postretirement liability | 28,389,000 | 11,663,000 |
Other accrued expenses | 5,789,000 | 5,151,000 |
Unrealized losses on investment securities | 673,000 | 962,000 |
Unrealized losses on investments in partnerships | 370,000 | 2,031,000 |
Capital loss carryforwards | 6,849,000 | 9,474,000 |
Nonvested stock | 20,300,000 | 21,860,000 |
Unused state tax credits | 992,000 | 866,000 |
State net operating loss carryforwards | 5,718,000 | 6,521,000 |
Other | 3,572,000 | 3,962,000 |
Valuation allowance | ||
Valuation allowance | -13,476,000 | -16,986,000 |
Decrease in valuation allowance related to realized capital gains on securities in investment portfolios and capital gain distributions from investments | 1,500,000 | |
Decrease in valuation allowance related to reduction in the tax loss on the sale of Legend | 600,000 | |
Reduction in valuation allowance due to realized capital gains on securities and appreciation in fair value of investment portfolios | 200,000 | |
Total gross deferred assets | 81,750,000 | 73,383,000 |
Net deferred tax asset | 27,490,000 | 11,493,000 |
State tax credit carryforwards that will expire between 2024 and 2030 if not utilized | 800,000 | |
State tax credit carryforwards that will expire in 2026 if not utilized | 200,000 | |
Capital loss carryforward | ||
Valuation allowance | ||
Valuation allowance | -7,900,000 | -10,600,000 |
Decrease in valuation allowance related to realized capital gains on securities in investment portfolios and capital gain distributions from investments | 4,200,000 | |
Increase in valuation allowance related to losses from partnership investments | 300,000 | |
Reduction in valuation allowance due to realized capital gains on securities and appreciation in fair value of investment portfolios | 2,300,000 | |
Net operating loss carryforwards | ||
Valuation allowance | ||
Valuation allowance | ($5,600,000) | ($6,400,000) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Jan. 01, 2014 |
Income Taxes | ||
Unrecognized tax benefits, including penalties and interest that if recognized would impact effective tax rate | $11.60 | $12 |
Unrecognized tax benefits, including penalties and interest, net of federal tax benefit that if recognized would affect effective tax rate | 8.3 | 8.4 |
Accrued interest and penalties related to uncertain tax positions | 3.5 | 3 |
Accrued interest and penalties related to uncertain tax positions, net of federal benefit | 2.9 | 2.5 |
Total expense of interest and penalties, net of federal benefit related to uncertain tax positions | $0.40 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of unrecognized tax benefits, excluding penalties and interest | |||
Balance at the beginning of the period | $9,013 | $8,322 | $7,467 |
Increases during the year: | |||
Gross increases - tax positions in prior period | 433 | 644 | 275 |
Gross increases - current-period tax positions | 656 | 1,355 | 2,215 |
Decreases during the year: | |||
Gross decreases - tax positions in prior period | -192 | -71 | -429 |
Decreases due to settlements with taxing authorities | -877 | -154 | |
Decreases due to lapse of statute of limitations | -928 | -1,083 | -1,206 |
Balance at the end of the period | $8,105 | $9,013 | $8,322 |
Number of open tax years settled | 6 years | 4 years | 3 years |
Pension_Plan_and_Postretiremen2
Pension Plan and Postretirement Benefits Other Than Pension (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Amounts recognized in the statement of financial position: | |||
Noncurrent liabilities | ($45,936,000) | ($13,333,000) | |
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 | ||
Change in projected benefit obligation: | |||
Net benefit obligation at beginning of year | 172,105,000 | 184,165,000 | 148,412,000 |
Service cost | 10,084,000 | 11,011,000 | 9,373,000 |
Interest cost | 8,395,000 | 7,711,000 | 7,570,000 |
Benefits paid | -8,733,000 | -19,283,000 | -5,760,000 |
Actuarial (gain) loss | 26,410,000 | -11,499,000 | 24,570,000 |
Plan Amendment | -176,000 | ||
Net benefit obligation at end of year | 208,085,000 | 172,105,000 | 184,165,000 |
Accumulated benefit obligation | 171,300,000 | 142,200,000 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 170,430,000 | 133,911,000 | 103,404,000 |
Actual return on plan assets | -6,149,000 | 38,802,000 | 21,267,000 |
Employer contributions | 20,000,000 | 17,000,000 | 15,000,000 |
Benefits paid | -8,733,000 | -19,283,000 | -5,760,000 |
Fair value of plan assets at end of year | 175,548,000 | 170,430,000 | 133,911,000 |
Funded status at end of year | -32,537,000 | -1,675,000 | 50,254,000 |
Amounts recognized in the statement of financial position: | |||
Noncurrent liabilities | -32,537,000 | -1,675,000 | -50,254,000 |
Net amount recognized at end of year | -32,537,000 | -1,675,000 | -50,254,000 |
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income: | |||
Transition obligation | -21,000 | -27,000 | -32,000 |
Prior service cost | -1,179,000 | -1,822,000 | -2,377,000 |
Accumulated gain (loss) | -75,681,000 | -30,602,000 | -74,286,000 |
Accumulated other comprehensive income (loss) | -76,881,000 | -32,451,000 | -76,695,000 |
Cumulative employer contributions in excess of net periodic benefit cost | 44,344,000 | 30,776,000 | 26,441,000 |
Net amount recognized at end of year | -32,537,000 | -1,675,000 | -50,254,000 |
Weighted average assumptions used to determine benefit obligation | |||
Discount rate (as a percent) | 4.13% | 4.97% | 4.22% |
Rate of compensation increase (as a percent) | 5.12% | 5.12% | 3.99% |
Other Postretirement Benefits | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Age of employees after which the plan does not provide benefits | 65 years | ||
Change in projected benefit obligation: | |||
Net benefit obligation at beginning of year | 8,172,000 | 8,792,000 | 8,145,000 |
Service cost | 719,000 | 788,000 | 693,000 |
Interest cost | 397,000 | 361,000 | 400,000 |
Benefits paid | -527,000 | -283,000 | -560,000 |
Actuarial (gain) loss | 760,000 | -1,807,000 | -223,000 |
Retiree contributions | 381,000 | 321,000 | 337,000 |
Net benefit obligation at end of year | 9,902,000 | 8,172,000 | 8,792,000 |
Change in plan assets: | |||
Employer contributions | 146,000 | -38,000 | 223,000 |
Retiree contributions | 381,000 | 321,000 | 337,000 |
Benefits paid | -527,000 | -283,000 | -560,000 |
Funded status at end of year | -9,902,000 | -8,172,000 | -8,792,000 |
Amounts recognized in the statement of financial position: | |||
Current liabilities | -279,000 | -260,000 | -304,000 |
Noncurrent liabilities | -9,623,000 | -7,912,000 | -8,488,000 |
Net amount recognized at end of year | -9,902,000 | -8,172,000 | -8,792,000 |
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income: | |||
Prior service cost | -17,000 | -72,000 | -127,000 |
Accumulated gain (loss) | 265,000 | 1,041,000 | -765,000 |
Accumulated other comprehensive income (loss) | 248,000 | 969,000 | -892,000 |
Cumulative employer contributions in excess of net periodic benefit cost | -10,150,000 | -9,141,000 | -7,900,000 |
Net amount recognized at end of year | ($9,902,000) | ($8,172,000) | ($8,792,000) |
Weighted average assumptions used to determine benefit obligation | |||
Discount rate (as a percent) | 4.07% | 4.94% | 4.18% |
Pension_Plan_and_Postretiremen3
Pension Plan and Postretirement Benefits Other Than Pension (Details 2) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plan and Postretirement Benefits Other Than Pension | ||
Cash (as a percent) | 23.00% | 18.00% |
Equity securities: | ||
Domestic (as a percent) | 51.00% | 33.00% |
International (as a percent) | 17.00% | 40.00% |
Fixed income securities (as a percent) | 1.00% | 1.00% |
Private equity (as a percent) | 1.00% | 1.00% |
Gold bullion (as a percent) | 7.00% | 7.00% |
Percentage of plan assets allocation | 100.00% | 100.00% |
Pension_Plan_and_Postretiremen4
Pension Plan and Postretirement Benefits Other Than Pension (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Pension Plan and Postretirement Benefits Other than Pension | |||
Amount of transfer between levels | $0 | $0 | |
Level 3 | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 3,402 | 4,019 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at beginning of year | 4,019 | 1,772 | |
Purchases, issuances and settlements | 1,900 | ||
Valuation change | -617 | 347 | |
Fair value of plan assets at end of year | 3,402 | 4,019 | |
Pension Benefits | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Amount of transfer between levels | 0 | 0 | |
Total fair value | 175,548 | 170,430 | 103,404 |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at beginning of year | 170,430 | 133,911 | 103,404 |
Fair value of plan assets at end of year | 175,548 | 170,430 | 103,404 |
Pension Benefits | Equity securities: Domestic | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 90,061 | 54,558 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 90,061 | 54,558 | |
Pension Benefits | Equity securities: Foreign | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 29,351 | 67,889 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 29,351 | 67,889 | |
Pension Benefits | Equity derivatives | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 116 | 471 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 116 | 471 | |
Pension Benefits | Mortgage-backed securities | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 14 | 17 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 14 | 17 | |
Pension Benefits | Corporate bonds | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 1,884 | 1,900 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 1,884 | 1,900 | |
Pension Benefits | Private equity | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 1,518 | 2,119 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 1,518 | 2,119 | |
Pension Benefits | Gold bullion | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 12,209 | 12,316 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 12,209 | 12,316 | |
Pension Benefits | Total investment securities | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 135,153 | 139,270 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 135,153 | 139,270 | |
Pension Benefits | Cash and other | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 40,395 | 31,160 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 40,395 | 31,160 | |
Pension Benefits | Level 1 | Equity securities: Domestic | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 90,061 | 54,558 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 90,061 | 54,558 | |
Pension Benefits | Level 1 | Equity securities: Foreign | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 29,351 | 67,889 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 29,351 | 67,889 | |
Pension Benefits | Level 1 | Gold bullion | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 12,209 | 12,316 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 12,209 | 12,316 | |
Pension Benefits | Level 1 | Total investment securities | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 131,621 | 134,763 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 131,621 | 134,763 | |
Pension Benefits | Level 2 | Equity derivatives | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 116 | 471 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 116 | 471 | |
Pension Benefits | Level 2 | Mortgage-backed securities | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 14 | 17 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 14 | 17 | |
Pension Benefits | Level 2 | Total investment securities | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 130 | 488 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 130 | 488 | |
Pension Benefits | Level 3 | Corporate bonds | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 1,884 | 1,900 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 1,884 | 1,900 | |
Pension Benefits | Level 3 | Private equity | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 1,518 | 2,119 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | 1,518 | 2,119 | |
Pension Benefits | Level 3 | Total investment securities | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Total fair value | 3,402 | 4,019 | |
Summary of the activity of plan assets categorized as Level 3 during the period | |||
Fair value of plan assets at end of year | $3,402 | $4,019 |
Pension_Plan_and_Postretiremen5
Pension Plan and Postretirement Benefits Other Than Pension (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted average assumptions used to determine net periodic benefit cost | |||
Expected return on plan assets (as a percent) | 7.75% | ||
Pension Benefits | |||
Components of net periodic benefit cost: | |||
Service cost | $10,084,000 | $11,011,000 | $9,373,000 |
Interest cost | 8,395,000 | 7,711,000 | 7,570,000 |
Expected return on plan assets | -14,016,000 | -11,185,000 | -8,799,000 |
Actuarial loss amortization | 1,496,000 | 4,567,000 | 4,563,000 |
Prior service cost amortization | 468,000 | 555,000 | 555,000 |
Transition obligation amortization | 5,000 | 5,000 | 5,000 |
Net periodic benefit cost | 6,432,000 | 12,664,000 | 13,267,000 |
Amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in next fiscal year | |||
Estimated net gain (loss) that will be amortized from accumulated other comprehensive income into net periodic benefit cost | -5,000,000 | ||
Estimated prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost | 459,000 | ||
Estimated transition obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost | 5,000 | ||
Weighted average assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 4.97% | 4.22% | 4.99% |
Expected return on plan assets (as a percent) | 7.75% | 7.75% | 7.75% |
Rate of compensation increase (as a percent) | 5.12% | 3.99% | 4.04% |
Expected benefit payments | |||
2015 | 6,813,000 | ||
2016 | 8,743,000 | ||
2017 | 9,929,000 | ||
2018 | 10,066,000 | ||
2019 | 12,161,000 | ||
2020 through 2024 | 74,734,000 | ||
Total | 122,446,000 | ||
Expected contribution in the next fiscal year | 20,000,000 | ||
Pension Benefits | Segment Discontinued Operations | |||
Components of net periodic benefit cost: | |||
Net periodic benefit cost | 749,000 | ||
Other Postretirement Benefits | |||
Components of net periodic benefit cost: | |||
Service cost | 719,000 | 788,000 | 693,000 |
Interest cost | 397,000 | 361,000 | 400,000 |
Actuarial loss amortization | -17,000 | 12,000 | |
Prior service cost amortization | 55,000 | 55,000 | 55,000 |
Net periodic benefit cost | 1,154,000 | 1,204,000 | 1,160,000 |
Amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in next fiscal year | |||
Estimated net gain (loss) that will be amortized from accumulated other comprehensive income into net periodic benefit cost | 19,000 | ||
Weighted average assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 4.94% | 4.18% | 5.00% |
Expected benefit payments | |||
2015 | 279,000 | ||
2016 | 341,000 | ||
2017 | 378,000 | ||
2018 | 478,000 | ||
2019 | 558,000 | ||
2020 through 2024 | 3,839,000 | ||
Total | 5,873,000 | ||
Contributions by participants | 381,000 | 321,000 | 337,000 |
Other Postretirement Benefits | Segment Discontinued Operations | |||
Components of net periodic benefit cost: | |||
Net periodic benefit cost | $749,000 |
Pension_Plan_and_Postretiremen6
Pension Plan and Postretirement Benefits Other Than Pension (Details 5) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Aggregate liability to participants | $32,500,000 | $1,700,000 | |
Other Postretirement Benefits | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Initial health care cost trend rate (as a percent) | 8.04% | 8.52% | 9.01% |
Number of years at which the rate reaches the ultimate trend rate | 13 years | ||
Rate to which the cost trend rate is assumed to decline (as a percent) | 4.50% | ||
Effect of 1% annual increase in assumed health care cost trend rates on the accumulated postretirement benefit obligation | 1,200,000 | ||
Effect of 1% annual increase in assumed health care cost trend rates on the service and interest cost components | 168,000 | ||
Effect of 1% annual decrease in assumed health care cost trend rates on the accumulated postretirement benefit obligation | 1,000 | ||
Effect of 1% annual decrease in assumed health care cost trend rates on the service and interest cost components | 142,000 | ||
Aggregate liability to participants | 9,600,000 | 7,900,000 | |
Current portion of postretirement liability | 279,000 | 260,000 | 304,000 |
SERP | |||
Pension Plan and Postretirement Benefits Other than Pension | |||
Percentage of executive's base salary that is used to credit participants SERP accounts | 4.00% | ||
Amount of discretionary awards made to participants | 0 | 0 | 0 |
Aggregate liability to participants | $3,800,000 | $3,800,000 |
Employee_Savings_Plan_Details
Employee Savings Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Savings Plan | |||
Employer's matching contribution to the plan | $6.40 | $5.10 | $4.70 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of basic and diluted earnings per share | ||||||||||||
Income from continuing operations | $80,893,000 | $74,586,000 | $82,988,000 | $74,864,000 | $78,759,000 | $68,419,000 | $51,957,000 | $53,863,000 | $313,331,000 | $252,998,000 | $192,528,000 | |
Weighted average shares outstanding - basic | 84,485,000 | 85,589,000 | 85,726,000 | |||||||||
Dilutive potential shares from stock options | 2,000 | |||||||||||
Weighted average shares outstanding - diluted | 84,485,000 | 85,589,000 | 85,728,000 | |||||||||
Earnings per share: | ||||||||||||
Earnings per share from continuing operations, basic and diluted (in dollars per share) | $3.71 | $2.96 | $2.25 | |||||||||
Dividends | ||||||||||||
Dividends accrued, per share (in dollars per share) | $1.45 | $1.18 | $2.03 | |||||||||
Quarterly dividend on common stock (in dollars per share) | $0.34 | $0.43 | ||||||||||
Special cash dividend paid (in dollars per share) | $1 | |||||||||||
Dividends to be paid | $36,000,000 | $29,000,000 | $36,000,000 | $29,000,000 | ||||||||
Common stock repurchases | ||||||||||||
Shares repurchased in the open market or privately | 2,252,152 | 1,492,535 | 1,536,968 | |||||||||
Shares repurchased from employees to cover minimum income tax withholdings | 599,340 | 665,035 | 568,568 |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) - (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | ($15,859) | ($46,797) |
Other comprehensive income before reclassification | -30,706 | 42,124 |
Amount reclassified from accumulated other comprehensive income | -3,878 | -11,186 |
Net current period other comprehensive (loss) income | -34,584 | 30,938 |
Balance at the end of the period | -50,443 | -15,859 |
Unrealized gains on investment securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | 3,150 | 1,823 |
Other comprehensive income before reclassification | -636 | 10,447 |
Amount reclassified from accumulated other comprehensive income | -3,241 | -9,120 |
Net current period other comprehensive (loss) income | -3,877 | 1,327 |
Balance at the end of the period | -727 | 3,150 |
Change in valuation allowance for unrealized gains (losses) on investment securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | 810 | 32 |
Other comprehensive income before reclassification | -381 | 6,085 |
Amount reclassified from accumulated other comprehensive income | -1,900 | -5,307 |
Net current period other comprehensive (loss) income | -2,281 | 778 |
Balance at the end of the period | -1,471 | 810 |
Pension and postretirement benefits | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | -19,819 | -48,652 |
Other comprehensive income before reclassification | -29,689 | 25,592 |
Amount reclassified from accumulated other comprehensive income | 1,263 | 3,241 |
Net current period other comprehensive (loss) income | -28,426 | 28,833 |
Balance at the end of the period | ($48,245) | ($19,819) |
Stockholders_Equity_Details_3
Stockholders' Equity (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reclassifications included in net income: | ||
Net of tax | $3,878 | $11,186 |
Reclassifications from accumulated other comprehensive income | ||
Reclassifications included in net income: | ||
Pre-tax | 3,139 | 9,235 |
Tax (expense) benefit | 739 | 1,951 |
Net of tax | 3,878 | 11,186 |
Unrealized gains on investment securities | ||
Reclassifications included in net income: | ||
Pre-tax | 5,146 | 14,417 |
Tax (expense) benefit | -1,905 | -5,297 |
Net of tax | 3,241 | 9,120 |
Change in valuation allowance for unrealized gains (losses) on investment securities | ||
Reclassifications included in net income: | ||
Tax (expense) benefit | 1,900 | 5,307 |
Net of tax | 1,900 | 5,307 |
Pension and postretirement benefits | ||
Reclassifications included in net income: | ||
Pre-tax | -2,007 | -5,182 |
Tax (expense) benefit | 744 | 1,941 |
Net of tax | ($1,263) | ($3,241) |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
plan | |
Share-Based Compensation | |
Number of stock-based compensation plans | 3 |
Share-Based Compensation | |
Number of shares of common stock available for issuance | 8,362,456 |
Nonvested stock awards | |
Share-Based Compensation | |
Percentage increments vested on the second, third and fourth anniversaries of the grant date | 33.33% |
Vesting period | 4 years |
Purchase price (in dollars per share) | 0 |
Stock Option Restoration Plan ("SORP") | |
Share-Based Compensation | |
Minimum holding term to surrender common stock by payment of exercise price on vested in-the-money options | 6 months |
Vesting period | 6 months |
1998 Stock Incentive Plan ("SI Plan") | |
Share-Based Compensation | |
Maximum number of shares of common stock authorized for issuance | 30,000,000 |
Maximum term of non-qualified options vested | 10 years 2 days |
Percentage increments vested on the second, third and fourth anniversaries of the grant date | 33.33% |
1998 Executive Stock Award Plan ("ESA Plan") | |
Share-Based Compensation | |
Maximum number of shares of common stock authorized for issuance | 3,750,000 |
Maximum term of non-qualified options vested | 11 years |
Percentage increments vested on the second, third and fourth anniversaries of the grant date | 10% per year |
NED Plan | |
Share-Based Compensation | |
Maximum number of shares of common stock authorized for issuance | 1,200,000 |
Maximum term of non-qualified options vested | 11 years |
Percentage increments vested on the second, third and fourth anniversaries of the grant date | 10% per year |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 2) (Stock Options, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options | |||
Share-Based Compensation | |||
Options outstanding (in shares) | 0 | ||
Total intrinsic value of options exercised | $139 | $72 | |
Related income tax benefit recognized | $51 | $26 |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details 3) (Nonvested stock awards, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Nonvested Stock Shares | |||
Nonvested at the beginning of the period (in shares) | 4,305,950 | ||
Granted (in shares) | 1,103,813 | ||
Vested (in shares) | -1,533,446 | ||
Forfeited (in shares) | -434,115 | ||
Nonvested at the end of the period (in shares) | 3,442,202 | 4,305,950 | |
Nonvested Stock Shares, Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $38.50 | ||
Granted (in dollars per share) | $68 | ||
Vested (in dollars per share) | $35.58 | ||
Forfeited (in dollars per share) | $45.56 | ||
Nonvested at the end of the period (in dollars per share) | $48.37 | $38.50 | |
Compensation expense | $54.10 | $53.20 | $48.70 |
Related income tax benefit recognized | 20.1 | 19.6 | 17.9 |
Remaining unamortized expense of nonvested stock expected to be recognized | 111.3 | ||
Period for expense amortized | 2 years 2 months 12 days | ||
Total fair value of shares vested | 104.8 | 80.5 | 53.5 |
Shares expected to be repurchased from employees who elect to tender shares to cover minimum tax withholdings | 484,000 | ||
Legend subsidiary | |||
Nonvested Stock Shares, Weighted Average Grant Date Fair Value | |||
Compensation expense for discontinued operations | $1.20 |
Uniform_Net_Capital_Rule_Requi2
Uniform Net Capital Rule Requirements (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
subsidiary | |
Uniform Net Capital Rule Requirements | |
Number of subsidiaries registered as broker dealers | 2 |
Maximum ratio of aggregate indebtedness to net capital | 15 |
Minimum net capital | $250 |
Net capital percentage of debit balances | 2.00% |
Uniform_Net_Capital_Rule_Requi3
Uniform Net Capital Rule Requirements (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Waddell & Reed, Inc. (W&R) | ||
Net capital and aggregated indebtedness information for entity's broker/dealer subsidiaries | ||
Net capital | $10,965 | $23,688 |
Required capital | 250 | 250 |
Excess of required capital | 10,715 | 23,438 |
Ivy Funds Distributor, Inc. (IFDI) | ||
Net capital and aggregated indebtedness information for entity's broker/dealer subsidiaries | ||
Net capital | 19,455 | 14,648 |
Required capital | 3,995 | 3,340 |
Excess of required capital | $15,460 | $11,308 |
Ratio of aggregate indebtedness to net capital | 3.08 | 3.42 |
Rental_Expense_and_Lease_Commi2
Rental Expense and Lease Commitments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Rental Expense and Lease Commitments | |||
Rent expense | $22,600,000 | $22,500,000 | $21,900,000 |
Future minimum rental commitments under non-cancelable operating leases | |||
2015 | 21,927,000 | ||
2016 | 18,688,000 | ||
2017 | 14,410,000 | ||
2018 | 10,121,000 | ||
2019 | 5,634,000 | ||
Thereafter | 14,353,000 | ||
Total | $85,133,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transactions | |||
Total revenues | $1,199,004,000 | $1,038,655,000 | $893,993,000 |
Receivables due from the Funds | 30,300,000 | 28,300,000 | |
Investment management fees | |||
Related Party Transactions | |||
Total revenues | 709,179,000 | 602,120,000 | 506,081,000 |
Rule 12b-1 serve and distribution fees | |||
Related Party Transactions | |||
Total revenues | 338,846,000 | 299,442,000 | 259,803,000 |
Shareholder service fees | |||
Related Party Transactions | |||
Total revenues | $150,979,000 | $137,093,000 | $128,109,000 |
Selected_Quarterly_Information2
Selected Quarterly Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Information (Unaudited) | |||||||||||
Total revenues | $397,151 | $409,558 | $400,634 | $390,416 | $375,004 | $347,089 | $331,706 | $316,555 | $1,597,759 | $1,370,354 | $1,173,805 |
Net income | $80,893 | $74,586 | $82,988 | $74,864 | $78,759 | $68,419 | $51,957 | $53,863 | $313,331 | $252,998 | $192,528 |
Net income per share, basic and diluted | $0.97 | $0.89 | $0.98 | $0.88 | $0.92 | $0.80 | $0.61 | $0.63 | $3.71 | $2.96 | $1.76 |