Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K

☒
FORM 10-K
☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2019

2022
OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to

Commission file number 001-09818

ALLIANCEBERNSTEIN HOLDING L.P.
(Exact name of registrant as specified in its charter)

Delaware13-3434400
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
501 Commerce Street, Nashville, TN37203
(Address of principal executive offices)(Zip Code)

1345 Avenue of the Americas, New York, NY10105
(Address of principal executive offices)
(Zip Code)

Registrant’s telephone number, including area code: (212) 969-1000

(615) 622-0000
Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Units Rep. Assignments of Beneficial Ownership of LP Interests in AB Holding ("Units")ABNew York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes ☒  No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes ☐  No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer☒Accelerated filer ☐☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company ☐☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.   Yes ☒  No ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes ☐  No ☒
If securities are registered pursuant to Section 12 (b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). No☐ ☒

The aggregate market value of the units representing assignments of beneficial ownership of limited partnership interests held by non-affiliates computed by reference to the price at which such units were last sold on the New York Stock Exchange as of June 30, 20192022 was approximately $2.7$3.8 billion.

The number of units representing assignments of beneficial ownership of limited partnership interests outstanding as of December 31, 20192022 was 98,192,098.113,801,097. (This figure includes 100,000 general partnership units having economic interests equivalent to the economic interests of the units representing assignments of beneficial ownership of limited partnership interests.)

DOCUMENTS INCORPORATED BY REFERENCE

This Form 10-K does not incorporate any document by reference.



Table of Contents

Table of Contents
Table of Contents
ii
Part I
Item 1.
Business
1ii
Item 1A.
1
18
2729
Properties
29
Legal Proceedings
29
2829
2930
Selected Financial Data
32
AB
32
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
3433
3433
3633
3934
35
37
6159
6159
6159
6361
AB
80
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
129127
129127
Other Information
128
128
Part III
131129
Executive Compensation
145
162175
166179
168180
169181
172183
173184

2022 Annual Reporti

Table of Contents
Glossary of Certain Defined Terms

AB
AllianceBernstein L.P. (Delaware limited partnership formerly known as Alliance Capital Management L.P., “Alliance Capital”), the operating partnership, and its subsidiaries and, where appropriate, its predecessors, AB Holding and ACMC, Inc. and their respective subsidiaries.
AB HoldingAllianceBernstein Holding L.P. (Delaware limited partnership).
AB Holding Partnership Agreementthe Amended and Restated Agreement of Limited Partnership of AB Holding, dated as of October 29, 1999 and as amended February 24, 2006.
AB Holding Unitsunits representing assignments of beneficial ownership of limited partnership interest in AB Holding.
AB Partnership Agreementthe Amended and Restated Agreement of Limited Partnership of AB, dated as of October 29, 1999 and as amended February 24, 2006.
AB Unitsunits of limited partnership interest in AB.
AUMAB's assets under management.
Bernstein TransactionAB's acquisition of the business and assets of SCB Inc., formerly known as Sanford C. Bernstein Inc., and the related assumption of the liabilities of that business, completed on October 2, 2000.
Equitable AmericaEquitable Financial Insurance Company of America (f/k/a MONY Life Insurance Company of America, an Arizona corporation), a subsidiary of Equitable Holdings.
Equitable FinancialEquitable Financial Life Insurance Company (New York stock life insurance company), a subsidiary of Equitable Holdings.
Equitable Holdings or EQHEquitable Holdings, Inc. (Delaware corporation) and its subsidiaries other than AB and its subsidiaries.
Exchange Actthe Securities Exchange Act of 1934, as amended.
ERISAthe Employee Retirement Income Security Act of 1974, as amended.
GAAPU.S. Generally Accepted Accounting Principles.
General PartnerAllianceBernstein Corporation (Delaware corporation), the general partner of AB and AB Holding and a subsidiary of Equitable Holdings, and, where appropriate, ACMC, LLC, its predecessor.
Investment Advisers Actthe Investment Advisers Act of 1940, as amended.
Investment Company Actthe Investment Company Act of 1940, as amended.
NYSEthe New York Stock Exchange, Inc.
PartnershipsAB and AB Holding together.
SECthe United States Securities and Exchange Commission.
Securities Actthe Securities Act of 1933, as amended.
“AB” – AllianceBernstein L.P. (Delaware limited partnership formerly known as Alliance Capital Management L.P., “Alliance Capital”), the operating partnership, and its subsidiaries and, where appropriate, its predecessors, AB Holding and ACMC, Inc. and their respective subsidiaries.

iiAllianceBernstein
“AB Holding” – AllianceBernstein Holding L.P. (Delaware limited partnership).Table of Contents

“AB Holding Partnership Agreement” – the Amended and Restated Agreement of Limited Partnership of AB Holding, dated as of October 29, 1999 and as amended February 24, 2006.
Part I

“AB Holding Units” – units representing assignments of beneficial ownership of limited partnership interests in AB Holding.

“AB Partnership Agreement” – the Amended and Restated Agreement of Limited Partnership of AB, dated as of October 29, 1999 and as amended February 24, 2006.

“AB Units” – units of limited partnership interest in AB.

“AUM” – AB's assets under management.

“AXA” – AXA (société anonyme organized under the laws of France) is the holding company for the AXA Group, a worldwide leader in financial protection.

“Bernstein Transaction” – AB's acquisition of the business and assets of SCB Inc., formerly known as Sanford C. Bernstein Inc., and the related assumption of the liabilities of that business, completed on October 2, 2000.

“Equitable America” – Equitable Financial Insurance Company of America (f/k/a MONY Life Insurance Company of America, an Arizona corporation) and a subsidiary of Equitable Holdings.

“Equitable Holdings” or “EQH” – Equitable Holdings, Inc. (Delaware corporation) and its subsidiaries other than AB and its subsidiaries.

“Equitable Life” – AXA Equitable Life Insurance Company (New York stock life insurance company), a subsidiary of Equitable Holdings, and its subsidiaries other than AB and its subsidiaries.

“Exchange Act” – the Securities Exchange Act of 1934, as amended.

“ERISA” – the Employee Retirement Income Security Act of 1974, as amended.

"GAAP" – U.S. Generally Accepted Accounting Principles.

“General Partner” – AllianceBernstein Corporation (Delaware corporation), the general partner of AB and AB Holding and a subsidiary of Equitable Holdings, and, where appropriate, ACMC, LLC, its predecessor.

“Investment Advisers Act” – the Investment Advisers Act of 1940, as amended.

“Investment Company Act” – the Investment Company Act of 1940, as amended.

“NYSE” – the New York Stock Exchange, Inc.

“Partnerships” – AB and AB Holding together.

“SEC” – the United States Securities and Exchange Commission.

“Securities Act” – the Securities Act of 1933, as amended.



PART I

Item 1.Business

The words “we” and “our” in this Form 10-K refer collectively to AB Holding and AB and its subsidiaries, or to their officers and employees. Similarly, the words “company” and “firm” refer to both AB Holding and AB. Where the context requires distinguishing between AB Holding and AB, we identify which company is being discussed. Cross-references are in italics.

We use “global” in this Form 10-K to refer to all nations, including the United States; we use “international” or “non-U.S.” to refer to nations other than the United States.

We use “emerging markets” in this Form 10-K to refer to countries included in the Morgan Stanley Capital International (“MSCI”MSCI”) emerging markets index, which are,include, as of December 31, 2019: Argentina,2022: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and the United Arab Emirates.

Clients

We provide research, diversified investment management, research and related services globally to a broad range of clients through our three buy-side distribution channels: Institutions, Retail and Private Wealth Management, and our sell-side business, Bernstein Research Services. SSeeee “Distribution Channels” in this Item 1 for additional information.

As of December 31, 2019, 20182022, 2021 and 2017,2020, our AUM were approximately $623$646 billion, $516$779 billion and $554$686 billion, respectively, and our net revenues as of December 31, 2019, 2018 and 2017 were approximately $3.5$4.1 billion, $3.4$4.4 billion and $3.3$3.7 billion, respectively. EQH (our parent company), AXA and their respectiveits subsidiaries, whose AUM consist primarily of fixed income investments, constituteis our largest clients.client. Our EQH affiliates represented approximately 18%16%, 18%17% and 17%19% of our AUM as of December 31, 2019, 20182022, 2021 and 2017,2020, and we earned approximately 3%4% of our net revenues from services we provided to them in each of those years. AXA and its subsidiaries represented approximately 5%, 6% and 6% of our AUM as of December 31, 2019, 2018 and 2017, and we earned approximately 2% of our net revenues from services we provided to them in each of those years.

Assets Under Management (AUM)
($ billions)
Net Revenues
($ billions)

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ab-20221231_g2.jpg
See “Distribution Channels” below and “Assets Under Management” and “Net Revenues” in Item 7 for additional information regarding our AUM and net revenues.

Generally, we are compensated for our investment services on the basis of investment advisory and services fees calculated as a percentage of AUM. For additional information about our investment advisory and services fees, including performance-based fees, see “Risk Factors” in Item 1A and “Net Revenues – Investment Advisory and Services Fees” in Item 7.

Research

Our high-quality, in-depth research is the foundation of our business.asset management and private wealth management businesses. We believe that our global team of research professionals, whose disciplines include economic, fundamental equity, fixed income and quantitative research, gives us a competitive advantage in achieving investment success for our clients. We also have experts focused on multi-asset strategies, wealth management, environmental, social and governance (“ESG”), and alternative investments.

2022 Annual Report1
Table of Contents
Part I
Purpose, Values and Corporate Responsibility
As a fiduciary, responsible investor and research firm, we believe that being a responsible company and investing responsibly are linked. The views of governments, communities, consumers and other stakeholders continue to evolve on responsible behavior, and firms are rethinking their purpose beyond maximizing shareholder value. Increasingly, investors are more closely scrutinizing companies, including investment managers (like us), to determine how committed they are to corporate responsibility.

At AB, we pursue insight that unlocks opportunity. This is our firm's purpose. Together with our firm's mission and values, which we have described below, our purpose forms the foundation of responsibility at AB.
AB's mission is to help our clients define and achieve their investment goals, explicitly stating what we do each day to unlock opportunity for our clients. As an active manager, our differentiated insights drive our ability to deliver alpha and design innovative investment solutions. ESG and climate issues are workingkey elements in forming insights and in presenting potential risks and opportunities that can impact the performance of the companies and issuers in which we invest and the portfolios that we build.
Our values provide a framework for the behaviors and actions that deliver on our purpose and mission. Values align our actions. Each value emerges from our firm's character, yet also is aspirational, and each value challenges us to become a better, firm. Tomore responsible version of AB:
•We invest in each other, meaning that we have a strong organizational culture in which diversity is celebrated and mentorship is critical to our success.
•We strive for distinctive insight, meaning that we collaboratively identify creative solutions to clients' economic, ESG and climate-related investment challenges through our expertise in a wide range of investment disciplines.
•We speak with courage and conviction, which informs how we engage with our AB colleagues and issuers.
•We act with integrity, which is the bedrock of our relationships and drives us thisto avoid activities that could create potential conflicts of interest or distract us from our singular focus to provide asset management and research to our clients.
As noted above, we consistently challenge ourselves to become a better version of AB. We are committed to being a responsible firm and striving to model the behavior that we expect from the companies in which we invest. This means, in part, giving back to the communities in which we work through our firm-wide philanthropic initiative, AB Gives Back, and reducing our environmental footprint by increasing our use of “green buildings,” such as our new corporate headquarters in Nashville, Tennessee. Additionally, by promoting diversity, equity and inclusion, we are afforded different perspectives and ways of thinking, which can lead to better outcomes for our clients.clients (See Diversity, Equity and Inclusion below in this Item 1).

Also, striving to be more responsible gives us a richer perspective for evaluating other firms.companies. As longtime fundamental investors with a strong research heritage, we have integrated environmental, social and governance (“consider ESG”) considerations into factors in various processes. This helps us make fully informed risk/return assessments and draw insightful investment conclusions. Further,Our investors — research analysts and portfolio managers — understand the companies and industries they cover in-depth. This positions them well to determine which ESG issues are material to particular companies, to determine the financial impact of an ESG issue and to incorporate that insight into their cash-flow, earnings and credit models. And, we

have invested continue to invest in technology and innovation to further enable our investment teams to formalize their ESG evaluations and share insights from our engagements with other companies.

Additionally, AB has prioritized our employees' health and welfare throughout the COVID-19 pandemic while ensuring that our firm has continued to meet our fiduciary obligations and provide exceptional client service and thoughtful investment advice. Furthermore, COVID-19 is a prominent theme in engagement: it not only impacts business models but also highlights corporate ESG practices. We are advocating that issuers be responsible corporate citizens, and we are working to better understand opportunities and threats, including supply chain disruptions and inflationary pressures, fueled by the pandemic.
We provide additional information in this regard in our corporate responsibility report,the AB Responsibility Report, which can be found under “Corporate Responsibility“Responsibility - Overview” on www.alliancebernstein.com. And, we have described our Internet site.

Investment Services

Our broad rangefirm's governance structure, including our Board and its committees, in Item 10 of investment services includes:this Form 10-K.
•2Actively-managed equity strategies, with global and regional portfolios across capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities;
•Actively-managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies;
•Passive management, including index and enhanced index strategies;
•Alternative investments, including hedge funds, fund of funds, direct lending and private equity; and
•Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds.AllianceBernstein

Table of Contents
Part I
Investment Philosophy
We believe that by using differentiated research insights and a disciplined process to build high-active-share portfolios, we can achieve strong investment results for our clients over time. Key to this philosophy is developing and integrating ESG and climate research, as well as our approach to engagement. Our global research network, intellectual curiosity and collaborative culture allow us to advance clients' investment objectives, whether our clients are seeking responsibility generated idiosyncratic alpha, total return, downside mitigation, or sustainability and impact-focused outcomes.
Our investment services include expertise in:
Our•Actively managed equity strategies across global and regional universes, as well as capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities;
•Actively managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies;
•Actively managed alternative investments, including hedge funds, fund of funds and direct assets (e.g., direct lending, real estate and private equity);
•Portfolios with Purpose, including actively managed, impact-focused and Responsible+ (climate-conscious, ESG leaders, change catalysts) equity, fixed income and multi-asset strategies that address our clients' evolving need to invest their capital with purpose while pursuing strong investment returns;
•Multi-asset services span various investment disciplines,and solutions, including market capitalization (e.g., large-, mid-dynamic asset allocation, customized target-date funds and small-cap equities), term (e.g., long-, intermediate-target-risk funds; and short-duration debt securities), and geographic location (e.g., U.S., international, global, emerging markets, regional and local), in major markets around the world.

•Some passive management, including index, ESG index and enhanced index strategies.
Our AUM by client domicile and investment service as of December 31, 2019, 20182022, 2021 and 2017 were2020 are as follows:

AUM by Client Domicile
($ in billions)
AUM by Investment Service
($ in billions)

ab-20221231_g3.jpg
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By Client Domicile ($ in billions):
chart1a02.jpg
2022 Annual Report3
Table of Contents
By Investment Service ($ in billions):Part I

chart2updatea01.jpg


Distribution Channels

Institutions

We offer to our institutional clients, which include private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as EQH and its subsidiaries, separately-managedseparately managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles (“Institutional Services”).

We manage the assets of our institutional clients pursuant to written investment management agreements or other arrangements, which generally are terminable at any time or upon relatively short notice by either party. In general, our written investment management agreements may not be assigned without the client's consent. For information about our institutional investment advisory and services fees, including performance-based fees, see “Risk Factors” in Item 1A and “Net Revenues – Investment Advisory and Services Fees” in Item 7.

EQH and its subsidiaries constitute our largest institutional client. EQH and its subsidiaries combined AUM accounted for approximately 28%24%, 26%25% and 24%29% of our institutional AUM as of December 31, 2019, 20182022, 2021 and 2017,2020, respectively, and approximately 17%19%, 16%18% and 15%18% of our institutional revenues for 2019, 20182022, 2021 and 2017, respectively. Also, AXA and its subsidiaries combined AUM accounted for approximately 10%, 11% and 10% of our institutional AUM as of December 31, 2019, 2018 and 2017, respectively, and approximately 11%, 11% and 10% of our institutional revenues for 2019, 2018 and 2017,2020, respectively. No single institutional client other than EQH AXA and theirits respective subsidiaries accounted for more than approximately 1%2% of our net revenues for the year ended December 31, 2019.2022.


As of December 31, 2019, 20182022, EQH and 2017, Institutional Services represented approximately 45%, 48% and 48%, respectively, its subsidiaries combined AUM accounted for:
Approximately

24%
of our AUM,institutional AUM.
Approximately

19%
of our institutional revenues.


EQH and Subsidiaries as a % of our Institutional AUMEQH and Subsidiaries as a % of our Institutional Revenues


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4AllianceBernstein
Table of Contents
Part I
As of December 31, 2022, 2021 and 2020, Institutional Services represented approximately 46%, 43% and 46%, respectively, of our AUM, and the fees we earned from providing these services represented approximately 16%, 13% and 14%, respectively, of our net revenues for each of those years. Our AUM and revenues are as follows:

Institutional Services Assets Under Management
(by Investment Service)

Years Ended December 31% Change
2022202120202022-212021-20
(in millions)
Equity:
Equity Actively Managed$55,731 $73,726 $60,067 (24.4)%22.7 %
Equity Passively Managed(1)
21,062 28,995 27,873 (27.4)4.0 
Total Equity76,793 102,721 87,940 (25.2)16.8 
U.S.35,428 47,409 41,241 (25.3)15.0 
Global & Non-US41,365 55,312 46,699 (25.2)18.4 
Total Equity76,793 102,721 87,940 (25.2)16.8 
Fixed Income:
Fixed Income Taxable121,871 155,940 164,048 (21.8)(4.9)
Fixed Income Tax-Exempt849 1,108 1,271 (23.4)(12.8)
Fixed Income Passively Managed(1)
192 224 84 (14.3)166.7 
Total Fixed Income122,912 157,272 165,403 (21.8)(4.9)
U.S.88,800 110,312 116,833 (19.5)(5.6)
Global & Non-US34,112 46,960 48,570 (27.4)26.1 
Total Fixed Income122,912 157,272 165,403 (21.8)(4.9)
Alternatives/Multi-Asset Solutions(2):
U.S.12,873 7,697 6,104 67.2 26.1 
Global & Non-US84,703 69,390 56,151 22.1 23.6 
Total Alternatives/Multi-Asset Solutions97,576 77,087 62,255 26.6 23.8 
Total:
U.S.137,101 165,418 164,178 (17.1)0.8 
Global & Non-US160,180 171,662 151,420 (6.7)13.4 
Total$297,281 $337,080 $315,598 (11.8)6.8 
Affiliated - EQH70,924 84,096 91,396 (15.7)(8.0)
Non-affiliated226,357 252,984 224,202 (10.5)12.8 
Total$297,281 $337,080 $315,598 (11.8)6.8 
(1)Includes index and enhanced index services.
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services.
 December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in millions)    
Equity Actively Managed:         
U.S.$13,861
 $9,629
 $10,521
 44.0 % (8.5)%
Global & Non-US30,767
 23,335
 22,577
 31.8
 3.4
Total44,628
 32,964
 33,098
 35.4
 (0.4)
Equity Passively Managed(1):
         
U.S.21,349
 17,481
 18,515
 22.1
 (5.6)
Global & Non-US3,951
 3,174
 3,521
 24.5
 (9.9)
Total25,300
 20,655
 22,036
 22.5
 (6.3)
Total Equity69,928
 53,619
 55,134
 30.4
 (2.7)
Fixed Income Taxable:         
U.S.107,436
 96,913
 103,073
 10.9
 (6.0)
Global & Non-US50,281
 51,156
 60,233
 (1.7) (15.1)
Total157,717
 148,069
 163,306
 6.5
 (9.3)
Fixed Income Tax-Exempt:         
U.S.1,209
 1,046
 1,051
 15.6
 (0.5)
Global & Non-US—
 —
 —
 —
 —
Total1,209
 1,046
 1,051
 15.6
 (0.5)
Fixed Income Passively Managed(1):
         
U.S.69
 73
 66
 (5.5) 10.6
Global & Non-US20
 15
 20
 33.3
 (25.0)
Total89
 88
 86
 1.1
 2.3
Total Fixed Income159,015
 149,203
 164,443
 6.6
 (9.3)
Other(2):
         
U.S.5,568
 5,024
 5,258
 10.8
 (4.5)
Global & Non-US48,179
 38,433
 44,442
 25.4
 (13.5)
Total53,747
 43,457
 49,700
 23.7
 (12.6)
Total:         
U.S.149,492
 130,166
 138,484
 14.8
 (6.0)
Global & Non-US133,198
 116,113
 130,793
 14.7
 (11.2)
Total$282,690
 $246,279
 $269,277
 14.8
 (8.5)
Affiliated - EQH$78,506
 $64,447
 $65,384
 21.8
 (1.4)
AXA27,136
 25,948
 26,519
 4.6

(2.2)
Non-affiliated177,048
 155,884
 177,374
 13.6
 (12.1)
Total$282,690
 $246,279
 $269,277
 14.8
 (8.5)

2022 Annual Report5
Table of Contents
Part I

(1)
Includes index and enhanced index services.
(2)
Includes certain multi-asset solutions and services and certain alternative investments.

Revenues from Institutional Services
(by Investment Service)

Years Ended December 31% Change
2022202120202022-212021-20
(in thousands)
Equity:
Equity Actively Managed$220,917 $240,049 $170,802 (8.0)%40.5 %
Equity Passively Managed(1)
4,910 6,119 5,851 (19.8)4.6 
Total Equity225,827 246,168 176,653 (8.3)39.4 
U.S.80,908 97,522 69,795 (17.0)39.7 
Global & Non-US144,919 148,646 106,858 (2.5)39.1 
Total Equity225,827 246,168 176,653 (8.3)39.4 
Fixed Income:
Fixed Income Taxable189,679 199,866 194,026 (5.1)3.0 
Fixed Income Tax-Exempt1,182 1,356 1,355 (12.8)0.1 
Fixed Income Passively Managed(1)
425 105 82 n/m28.0 
Fixed Income Servicing(2)
15,991 14,738 14,108 8.5 4.5 
Total Fixed Income207,277 216,065 209,571 (4.1)3.1 
U.S.128,392 124,004 118,924 3.5 4.3 
Global & Non-US78,885 92,061 90,647 (14.3)1.6 
Total Fixed Income207,277 216,065 209,571 (4.1)3.1 
Alternatives/Multi-Asset Solutions(3):
U.S.114,982 64,646 52,222 77.9 23.8 
Global & Non-US111,202 59,179 73,354 87.9 (19.3)
Total Alternatives/Multi-Asset Solutions226,184 123,825 125,576 82.7 (1.4)
Total Investment Advisory and Services Fees:
U.S.324,282 286,172 240,941 13.3 18.8 
Global & Non-US335,004 299,886 270,859 11.7 10.7 
Total659,286 586,058 511,800 12.5 14.5 
Distribution Revenues268 474 588 (43.5)(19.4)
Shareholder Servicing Fees429 485 526(11.5)(7.8)
Total$659,983 $587,017 $512,914 12.4 14.4 
Affiliated - EQH125,229 105,415 90,101 18.8 17.0 
Non-affiliated534,754 481,602 422,813 11.0 13.9 
Total$659,983 $587,017 $512,914 12.4 14.4 
(1)Includes index and enhanced index services.
(2)Fixed Income Servicing includes advisory-related services fees that are not based on AUM, including derivative transaction fees, capital purchase program-related advisory services and other fixed income advisory services.
(3)Includes certain multi-asset solutions and services not included in equity or fixed income services.
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands)    
Equity Actively Managed:         
U.S.$62,252
 $60,465
 $53,352
 3.0 % 13.3 %
Global & Non-US98,169
 103,763
 88,676
 (5.4) 17.0
Total160,421
 164,228
 142,028
 (2.3) 15.6
Equity Passively Managed(1):
         
U.S.3,846
 3,713
 3,721
 3.6
 (0.2)
Global & Non-US1,992
 1,880
 1,882
 6.0
 (0.1)
Total5,838
 5,593
 5,603
 4.4
 (0.2)
Total Equity166,259
 169,821
 147,631
 (2.1) 15.0
Fixed Income Taxable:         
U.S.103,735
 102,356
 107,262
 1.3
 (4.6)
Global & Non-US100,352
 106,314
 112,294
 (5.6) (5.3)
Total204,087
 208,670
 219,556
 (2.2) (5.0)
Fixed Income Tax-Exempt:         
U.S.1,309
 1,217
 1,989
 7.6
 (38.8)
Global & Non-US—
 —
 —
 —
 —
Total1,309
 1,217
 1,989
 7.6
 (38.8)
Fixed Income Passively Managed(1):
         
U.S.86
 49
 202
 75.5
 (75.7)
Global & Non-US21
 28
 16
 (25.0) 75.0
Total107
 77
 218
 39.0
 (64.7)
Fixed Income Servicing(2):
         
U.S.13,215
 12,708
 13,597
 4.0
 (6.5)
Global & Non-US—
 —
 (14) n/m
 100.0
Total13,215
 12,708
 13,583
 4.0
 (6.4)
Total Fixed Income218,718
 222,672
 235,346
 (1.8) (5.4)
Other(3):
         
U.S.54,582
 52,131
 63,192
 4.7
 (17.5)
Global & Non-US39,405
 33,530
 38,153
 17.5
 (12.1)
Total93,987
 85,661
 101,345
 9.7
 (15.5)
Total Investment Advisory and Services Fees:         
U.S.239,025
 232,639
 243,315
 2.7
 (4.4)
Global & Non-US239,939
 245,515
 241,007
 (2.3) 1.9
Consolidated company-sponsored investment funds—
 (372) (8,717) 100.0

n/m
Total478,964
 477,782
 475,605
 0.2
 0.5
Distribution Revenues704
 757
 1,047
 (7.0) (27.7)
Shareholder Servicing Fees476
 529
 488
 (10.0) 8.4
Total$480,144
 $479,068
 $477,140
 0.2
 0.4
Affiliated - EQH$81,605
 $77,021
 $72,082
 6.0
 6.9
AXA55,135
 53,745
 48,843
 2.6

10.0
Non-affiliated343,404
 348,302
 356,215
 (1.4) (2.2)
Total$480,144
 $479,068
 $477,140
 0.2
 0.4

(1)
6AllianceBernsteinIncludes index and enhanced index services.
Table of Contents
Part I
Retail
We provide investment management and related services to a wide variety of individual retail investors globally through retail mutual funds we sponsor, mutual fund sub-advisory relationships, separately-managed account programs (see below), and other investment vehicles (“Retail Products and Services”).
We distribute our Retail Products and Services through financial intermediaries, including broker-dealers, insurance sales representatives, banks, registered investment advisers and financial planners. These products and services include open-end and closed-end funds that are either (i) registered as investment companies under the Investment Company Act (“U.S. Funds”), or (ii) not registered under the Investment Company Act and generally not offered to U.S. persons (“Non-U.S. Funds” and, collectively with the U.S. Funds, “AB Funds”). They also include separately-managed account programs, which are sponsored by financial intermediaries and generally charge an all-inclusive fee covering investment management, trade execution, asset allocation, and custodial and administrative services. In addition, we provide distribution, shareholder servicing, transfer agency services and administrative services for our Retail Products and Services. See “Net Revenues – Investment Advisory and Services Fees” in Item 7 for information about our retail investment advisory and services fees. See Note 2 to AB’s consolidated financial statements in Item 8 for a discussion of the commissions we pay to financial intermediaries in connection with the sale of open-end AB Funds.
Fees paid by the U.S. Funds are reflected in the applicable investment management agreement, which generally must be approved annually by the board of directors or trustees of those funds, by a majority vote of the independent directors or trustees. Increases in these fees must be approved by fund shareholders; decreases need not be, including any decreases implemented by a fund’s directors or trustees. In general, each investment management agreement with the U.S. Funds provides for termination by either party, at any time, upon 60 days’ notice.
Fees paid by Non-U.S. Funds are reflected in management agreements that continue until they are terminated. Increases in these fees generally must be approved by the relevant regulatory authority, depending on the domicile and structure of the fund, and Non-U.S. Fund shareholders must be given advance notice of any fee increases.
The mutual funds we sub-advise for EQH and its subsidiaries constitute our largest retail client. EQH and its subsidiaries accounted for approximately 14% of our retail AUM as of December 31, 2022, 2021 and 2020 and approximately 1% of our retail net revenues for the years ended December 31, 2022, 2021 and 2020.
Most open-end U.S. Funds have adopted a plan under Rule 12b-1 of the Investment Company Act that allows the fund to pay, out of assets of the fund, distribution and service fees for the distribution and sale of its shares. The open-end U.S. Funds have entered into such agreements with us, and we have entered into selling and distribution agreements pursuant to which we pay sales commissions to the financial intermediaries that distribute our open-end U.S. Funds. These agreements are terminable by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of fund shares.
As of December 31, 2022, retail U.S. Fund AUM were approximately $54 billion, or 22% of retail AUM, as compared to $73 billion, or 23%, as of December 31, 2021, and $62 billion, or 23%, as of December 31, 2020. Non-U.S. Fund AUM, as of December 31, 2022, totaled $96 billion, or 39% of retail AUM, as compared to $130 billion, or 41%, as of December 31, 2021, and $110 billion, or 41%, as of December 31, 2020.
(2)
Fixed Income Servicing includes advisory-related services fees that are not based on AUM, including derivative transaction fees, capital purchase program-related advisory services and other fixed income advisory services.
2022 Annual Report7
(3)
Includes certain multi-asset solutions and services and certain alternative services.

Retail

We provide investment management and related services to a wide variety of individual retail investors, both in the U.S. and internationally, through retail mutual funds we sponsor, mutual fund sub-advisory relationships, separately-managed account programs (see below), and other investment vehicles (“Retail Products and Services”).

We distribute our Retail Products and Services through financial intermediaries, including broker-dealers, insurance sales representatives, banks, registered investment advisers and financial planners. These products and services include open-end and closed-end funds that are either (i) registered as investment companies under the Investment Company Act (“U.S. Funds”), or (ii) not registered under the Investment Company Act and generally not offered to U.S. persons (“Non-U.S. Funds” and, collectively with the U.S. Funds, “AB Funds”). They also include separately-managed account programs, which are sponsored by financial intermediaries and generally charge an all-inclusive fee covering investment management, trade execution, asset allocation, and custodial and administrative services. In addition, we provide distribution, shareholder servicing, transfer agency services and administrative services for our Retail Products and Services. See “Net Revenues – Investment Advisory and Services Fees” in Item 7 for information about our retail investment advisory and services fees. See Note 2 to AB’s consolidated financial statements in Item 8 for a discussion of the commissions we pay to financial intermediaries in connection with the sale of open-end AB Funds.

Fees paid by the U.S. Funds are reflected in the applicable investment management agreement, which generally must be approved annually by the board of directors or trustees of those funds, by a majority vote of the independent directors or trustees. Increases in these fees must be approved by fund shareholders; decreases need not be, including any decreases implemented by a fund’s directors or trustees. In general, each investment management agreement with the U.S. Funds provides for termination by either party,at any time, upon 60 days’ notice.

Fees paid by Non-U.S. Funds are reflected in management agreements that continue until they are terminated. Increases in these fees generally must be approved by the relevant regulatory authority, depending on the domicile and structure of the fund, and Non-U.S. Fund shareholders must be given advance notice of any fee increases.

The mutual funds we sub-advise for EQH, AXA and their respective subsidiaries constitute our largest retail clients. EQH and its subsidiaries accounted for approximately 14%, 16% and 16% of our retail AUM as of December 31, 2019, 2018 and 2017, respectively, and approximately 2% of our retail net revenues in each of those years. AXA and its subsidiaries accounted for approximately 2%, 3% and 3% of our retail AUM as of December 31, 2019, 2018 and 2017, respectively, and approximately 1%, 2% and 2% of our retail net revenues for the years ended December 31, 2019, 2018 and 2017, respectively.

HSBC was responsible for approximately 14%, 7% and 9% of our open-end mutual fund sales in 2019, 2018 and 2017, respectively. HSBC is not under any obligation to sell a specific amount of AB Fund shares and is not our affiliate.

Most open-end U.S. Funds have adopted a plan under Rule 12b-1 of the Investment Company Act that allows the fund to pay, out of assets of the fund, distribution and service fees for the distribution and sale of its shares (“Rule 12b-1 Fees”). The open-end U.S. Funds have entered into such agreements with us, and we have entered into selling and distribution agreements pursuant to which we pay sales commissions to the financial intermediaries that distribute our open-end U.S. Funds. These agreements are terminable by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of fund shares.

As of December 31, 2019, retail U.S. Fund AUM were approximately $55 billion, or 23% of retail AUM, as compared to $43 billion, or 24%, as of December 31, 2018, and $47 billion, or 25%, as of December 31, 2017. Non-U.S. Fund AUM, as of December 31, 2019, totaled $103 billion, or 43% of retail AUM, as compared to $71 billion, or 39%, as of December 31, 2018, and $76 billion, or 40%, as of December 31, 2017.


Our Retail Services represented approximately 39%, 35% and 35% of our AUM as of December 31, 2019, 2018 and 2017, respectively, and the fees we earned from providing these services represented approximately 46%, 44% and 43% of our net revenues for the years ended December 31, 2019, 2018 and 2017,
Table of Contents
Part I
Our Retail Services represented approximately 38%, 41% and 39% of our AUM as of December 31, 2022, 2021 and 2020, respectively, and the fees we earned from providing these services represented approximately 49%, 50% and 49% of our net revenues for the years ended December 31, 2022, 2021 and 2020, respectively. Our AUM and revenues are as follows:

Retail Services Assets Under Management
(by Investment Service)

Years Ended December 31% Change
2022202120202022-212021-20
(in millions)
Equity:
Equity Actively Managed$116,235 $154,200 $106,866 (24.6)%44.3 %
Equity Passively Managed(1)
30,445 40,821 35,995 (25.4)13.4 
Total Equity146,680 195,021 142,861 (24.8)36.5 
U.S.118,547 152,106 108,506 (22.1)40.2 
Global & Non-US28,133 42,915 34,355 (34.4)24.9 
Total Equity146,680 195,021 142,861 (24.8)36.5 
Fixed Income:
Fixed Income Taxable53,995 75,813 84,654 (28.8)(10.4)
Fixed Income Tax-Exempt26,714 29,009 23,202 (7.9)25.0 
Fixed Income Passively Managed(1)
9,206 12,762 8,231 (27.9)55.0 
Total Fixed Income89,915 117,584 116,087 (23.5)1.3 
U.S.41,151 46,361 36,137 (11.2)28.3 
Global & Non-US48,764 71,223 79,950 (31.5)(10.9)
Total Fixed Income89,915 117,584 116,087 (23.5)1.3 
Alternatives/Multi-Asset Solutions(2):
U.S.2,697 3,595 3,071 (25.0)17.1 
Global & Non-US3,594 3,718 3,321 (3.3)12.0 
Total Alternatives/Multi-Asset Solutions6,291 7,313 6,392 (14.0)14.4 
Total:
U.S.162,395 202,062 147,714 (19.6)36.8 
Global & Non-US80,491 117,856 117,626 (31.7)0.2 
Total$242,886 $319,918 $265,340 (24.1)20.6 
Affiliated - EQH34,110 44,417 36,765 (23.2)20.8 
Non-affiliated208,776 275,501 228,575 (24.2)20.5 
Total$242,886 $319,918 $265,340 (24.1)20.6 
(1)Includes index and enhanced index services.
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services
 December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in millions)    
Equity Actively Managed:         
U.S.$57,125
 $41,450
 $37,720
 37.8 % 9.9 %
Global & Non-US24,497
 19,475
 20,274
 25.8
 (3.9)
Total81,622
 60,925
 57,994
 34.0
 5.1
Equity Passively Managed(1):
         
U.S.27,153
 22,658
 23,294
 19.8
 (2.7)
Global & Non-US7,530
 6,697
 8,758
 12.4
 (23.5)
Total34,683
 29,355
 32,052
 18.2
 (8.4)
Total Equity116,305
 90,280
 90,046
 28.8
 0.3
Fixed Income Taxable:         
U.S.9,093
 7,029
 7,699
 29.4
 (8.7)
Global & Non-US79,315
 53,413
 65,963
 48.5
 (19.0)
Total88,408
 60,442
 73,662
 46.3
 (17.9)
Fixed Income Tax-Exempt:         
U.S.20,706
 16,403
 15,654
 26.2
 4.8
Global & Non-US44
 42
 53
 4.8
 (20.8)
Total20,750
 16,445
 15,707
 26.2
 4.7
Fixed Income Passively Managed(1):
         
U.S.5,031
 4,965
 5,173
 1.3
 (4.0)
Global & Non-US3,794
 3,964
 4,250
 (4.3) (6.7)
Total8,825
 8,929
 9,423
 (1.2) (5.2)
Total Fixed Income117,983
 85,816
 98,792
 37.5
 (13.1)
Other(2):
         
U.S.2,470
 2,476
 2,799
 (0.2) (11.5)
Global & Non-US2,408
 2,197
 1,311
 9.6
 67.6
Total4,878
 4,673
 4,110
 4.4
 13.7
Total:         
U.S.121,578
 94,981
 92,339
 28.0
 2.9
Global & Non-US117,588
 85,788
 100,609
 37.1
 (14.7)
Total$239,166
 $180,769
 $192,948
 32.3
 (6.3)
Affiliated - EQH$34,448
 $29,206
 $30,720
 17.9
 (4.9)
AXA5,680
 5,471
 6,245
 3.8

(12.4)
Non-affiliated199,038
 146,092
 155,983
 36.2
 (6.3)
Total$239,166
 $180,769
 $192,948
 32.3
 (6.3)

8AllianceBernstein
Table of Contents
Part I
(1)
Includes index and enhanced index services.
(2)
Includes certain multi-asset solutions and services and certain alternative investments.

Revenues from Retail Services
(by Investment Service)

Years Ended December 31% Change
2022202120202022-212021-20
(in thousands)
Equity:
Equity Actively Managed$746,889 $766,578 $508,973 (2.6)%50.6 %
Equity Passively Managed(1)
12,870 14,773 14,347 (12.9)3.0 
Total Equity759,759 781,351 523,320 (2.8)49.3 
U.S.558,319 556,398 355,542 0.3 56.5 
Global & Non-US201,440 224,953 167,778 (10.5)34.1 
Total Equity759,759 781,351 523,320 (2.8)49.3 
Fixed Income:
Fixed Income Taxable390,708 517,327 534,164 (24.5)(3.2)
Fixed Income Tax-Exempt89,450 84,945 70,734 5.3 20.1 
Fixed Income Passively Managed(1)
13,682 12,994 12,229 5.3 6.3 
Total Fixed Income493,840 615,266 617,127 (19.7)(0.3)
U.S.119,053 115,248 101,825 3.3 13.2 
Global & Non-US374,787 500,018 515,302 (25.0)(3.0)
Total Fixed Income493,840 615,266 617,127 (19.7)(0.3)
Alternatives/Multi-Asset Solutions(2):
U.S.55,356 81,872 57,069 (32.4)43.5 
Global & Non-US13,484 13,117 12,723 2.8 3.1 
Total Alternatives/Multi-Asset Solutions68,840 94,989 69,792 (27.5)36.1 
Total Investment Advisory and Services Fees:
U.S.732,728 753,518 514,436 (2.8)46.5 
Global & Non-US589,711 738,086 695,803 (20.1)6.1 
Consolidated company-sponsored investment funds770 1,243 733 (38.1)69.6 
Total1,323,209 1,492,847 1,210,972 (11.4)23.3 
Distribution Revenues594,431 644,125 522,056 (7.7)23.4 
Shareholder Servicing Fees83,268 86,857 78,920 (4.1)10.1 
Total$2,000,908 $2,223,829 $1,811,948 (10.0)22.7 
Affiliated - EQH23,836 28,334 27,130 (15.9)4.4 
Non-affiliated1,977,072 2,195,495 1,784,818 (9.9)23.0 
Total$2,000,908 $2,223,829 $1,811,948 (10.0)22.7 
(1)Includes index and enhanced index services.
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services.
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands)    
Equity Actively Managed:         
U.S.$283,461
 $235,611
 $204,363
 20.3 % 15.3 %
Global & Non-US153,156
 149,995
 114,277
 2.1
 31.3
Total436,617
 385,606
 318,640
 13.2
 21.0
Equity Passively Managed(1):
         
U.S.9,179
 8,901
 8,508
 3.1
 4.6
Global & Non-US6,994
 7,861
 6,636
 (11.0) 18.5
Total16,173
 16,762
 15,144
 (3.5) 10.7
Total Equity452,790
 402,368
 333,784
 12.5
 20.5
Fixed Income Taxable:         
U.S.26,963
 25,194
 23,142
 7.0
 8.9
Global & Non-US479,886
 438,048
 454,613
 9.6
 (3.6)
Total506,849
 463,242
 477,755
 9.4
 (3.0)
Fixed Income Tax-Exempt:         
U.S.65,375
 58,824
 54,106
 11.1
 8.7
Global & Non-US99
 132
 120
 (25.0) 10.0
Total65,474
 58,956
 54,226
 11.1
 8.7
Fixed Income Passively Managed(1):
         
U.S.5,972
 6,086
 6,055
 (1.9) 0.5
Global & Non-US6,133
 6,809
 7,567
 (9.9) (10.0)
Total12,105
 12,895
 13,622
 (6.1) (5.3)
Total Fixed Income584,428
 535,093
 545,603
 9.2
 (1.9)
Other(2):
         
U.S.51,958
 63,232
 59,751
 (17.8) 5.8
Global & Non-US8,946
 8,575
 6,583
 4.3
 30.3
Total60,904
 71,807
 66,334
 (15.2) 8.3
Total Investment Advisory and Services Fees:         
U.S.442,908
 397,848
 355,925
 11.3
 11.8
Global & Non-US655,214
 611,420
 589,796
 7.2
 3.7
Consolidated company-sponsored investment funds883
 1,047
 1,005
 (15.7) 4.2
Total1,099,005
 1,010,315
 946,726
 8.8
 6.7
Distribution Revenues447,050
 411,996
 405,939
 8.5
 1.5
Shareholder Servicing Fees73,777
 72,134
 71,225
 2.3
 1.3
Total$1,619,832
 $1,494,445
 $1,423,890
 8.4
 5.0
Affiliated - EQH$27,737
 $27,814
 $26,393
 (0.3) 5.4
AXA23,293
 24,946
 23,769
 (6.6) 5.0
Non-affiliated1,568,802
 1,441,685
 1,373,728
 8.8
 4.9
Total$1,619,832
 $1,494,445
 $1,423,890
 8.4
 5.0

(1)
Includes index and enhanced index services.
2022 Annual Report9
(2)
Includes certain multi-asset solutions and services and certain alternative investments.

Private Wealth Management

We offer to our private wealth clients, which include high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, separately-managed accounts, hedge funds, mutual funds and other investment vehicles (“Private Wealth Services”).

We manage these accounts pursuant to written investment advisory agreements, which generally are terminable at any time or upon relatively short notice by any party, and may not be assigned without the client's consent. For information about our investment advisory and services fees, including performance-based fees, see “Risk Factors” in Item 1A and “Net Revenues – Investment Advisory and Services Fees” in Item 7.

Our Private Wealth Services represented approximately 16%, 17% and 17% of our AUM as of December 31, 2019, 2018 and 2017, respectively. The fees we earned from providing these services represented approximately 26%, 26% and 24% of our net revenues for 2019, 2018 and 2017,
Table of Contents
Part I
Private Wealth Management
We partner with our clients, embracing innovation and research to address increasingly complex challenges. Our clients include high-net-worth individuals and families who have created generational wealth as successful business owners, athletes, entertainers, corporate executives and private practice owners. We also provide investment and wealth advice to foundations and endowments, family offices and other entities. Our flexible and extensive investment platform offers a range of solutions, including separately-managed accounts, hedge funds, mutual funds and other investment vehicles, tailored to meet each distinct client's needs. Our investment platform is complimented with a wealth platform that includes complex tax and estate planning, pre-IPO and pre-transaction planning, multi-generational family engagement, and philanthropic advice in addition to tailored approaches to meeting the unique needs of emerging wealth and multi-cultural demographics ("Private Wealth Services").
We manage accounts pursuant to written investment advisory agreements, which generally are terminable at any time or upon relatively short notice by any authorized party, and may not be assigned without the client's consent. For information about our investment advisory and services fees, including performance-based fees, see “Risk Factors” in Item 1A and “Net Revenues – Investment Advisory and Services Fees” in Item 7.
Our Private Wealth Services represented approximately 16%, 16% and 15% of our AUM as of December 31, 2022, 2021 and 2020, respectively. The fees we earned from providing these services represented approximately 25%, 25% and 24% of our net revenues for 2022, 2021 and 2020, respectively. Our AUM and revenues are as follows:

Private Wealth Services Assets Under Management
(by Investment Service)
Years Ended December 31% Change
2022202120202022-212021-20
(in millions)
Equity:
Equity Actively Managed$45,977 $59,709 $50,854 (23.0)%17.4 %
Equity Passively Managed(1)
2,304 1,764 666 30.6 %164.9 %
Total Equity48,281 61,473 51,520 (21.5)19.3 
U.S.28,014 35,014 28,776 (20.0)21.7 
Global & Non-US20,267 26,459 22,744 (23.4)16.3 
Total Equity48,281 61,473 51,520 (21.5)19.3 
Fixed Income:
Fixed Income Taxable14,391 14,567 14,515 (1.2)0.4 
Fixed Income Tax-Exempt24,953 26,929 25,764 (7.3)4.5 
Fixed Income Passively Managed(1)
2 230 195 (99.1)17.9 
Total Fixed Income39,346 41,726 40,474 (5.7)3.1 
U.S.34,764 36,166 35,042 (3.9)3.2 
Global & Non-US4,582 5,561 5,432 (17.6)2.4 
Total Fixed Income39,346 41,727 40,474 (5.7)3.1 
Alternatives/Multi-Asset Solutions(2):
U.S.6,607 6,926 5,927 (4.6)16.9 
Global & Non-US12,021 11,446 7,064 5.0 62.0 
Total Alternatives/Multi-Asset Solutions18,628 18,372 12,991 1.4 41.4 
Total:
U.S.69,385 78,106 69,745 (11.2)12.0 
Global & Non-US36,870 43,466 35,240 (15.2)23.3 
Total$106,255 $121,572 $104,985 (12.6)15.8 
(1)Includes index and enhanced index services.
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services.
 December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in millions)    
Equity Actively Managed:         
U.S.$26,840
 $22,504
 $26,492
 19.3 % (15.1)%
Global & Non-US24,094
 19,809
 21,880
 21.6
 (9.5)
Total50,934
 42,313
 48,372
 20.4
 (12.5)
Equity Passively Managed(1):
         
U.S.142
 113
 130
 25.7
 (13.1)
Global & Non-US32
 42
 51
 (23.8) (17.6)
Total174
 155
 181
 12.3
 (14.4)
Total Equity51,108
 42,468
 48,553
 20.3
 (12.5)
Fixed Income Taxable:         
U.S.7,583
 7,022
 6,772
 8.0
 3.7
Global & Non-US4,587
 4,154
 4,141
 10.4
 0.3
Total12,170
 11,176
 10,913
 8.9
 2.4
Fixed Income Tax-Exempt:         
U.S.25,102
 24,129
 23,636
 4.0
 2.1
Global & Non-US15
 15
 18
 —
 (16.7)
Total25,117
 24,144
 23,654
 4.0
 2.1
Fixed Income Passively Managed(1):
         
U.S.—
 11
 —
 (100.0) n/m
Global & Non-US372
 404
 401
 (7.9) 0.7
Total372
 415
 401
 (10.4) 3.5
Total Fixed Income37,659
 35,735
 34,968
 5.4
 2.2
Other(2):
         
U.S.6,808
 5,762
 3,606
 18.2
 59.8
Global & Non-US5,484
 5,340
 5,139
 2.7
 3.9
Total12,292
 11,102
 8,745
 10.7
 27.0
Total:         
U.S.66,475
 59,541
 60,636
 11.6
 (1.8)
Global & Non-US34,584
 29,764
 31,630
 16.2
 (5.9)
Total$101,059
 $89,305
 $92,266
 13.2
 (3.2)

(1)
10AllianceBernsteinIncludes index and enhanced index services.
Table of Contents
Part I
(2)
Includes certain multi-asset solutions and services and certain alternative investments.

Revenues Fromfrom Private Wealth Services
(by Investment Service)

Years Ended December 31% Change
2022202120202022-212021-20
(in thousands)
Equity:
Equity Actively Managed$521,155 $584,455 $487,899 (10.8)%19.8 %
Equity Passively Managed(1)
8,700 4,780 1,113 82.0 %n/m
Total Equity529,855 589,235 489,012 (10.1)20.5 
U.S.295,235 325,154 263,938 (9.2)23.2 
Global & Non-US234,620 264,081 225,074 (11.2)17.3 
Total Equity529,855 589,235 489,012 (10.1)20.5 
Fixed Income:
Fixed Income Taxable66,851 72,404 71,575 (7.7)1.2 
Fixed Income Tax-Exempt125,123 130,391 123,952 (4.0)5.2 
Fixed Income Passively Managed(1)
1,804 2,634 2,891 (31.5)(8.9)
Total Fixed Income193,778 205,429 198,418 (5.7)3.5 
U.S.159,411 167,402 160,666 (4.8)4.2 
Global & Non-US34,367 38,027 37,752 (9.6)0.7 
Total Fixed Income193,778 205,429 198,418 (5.7)3.5 
Alternatives/Multi-Asset Solutions(2):
U.S.195,666 249,432 109,169 (21.6)128.5 
Global & Non-US69,245 71,524 76,065 (3.2)(6.0)
Total Alternatives/Multi-Asset Solutions264,911 320,956 185,234 (17.5)73.3 
Total Investment Advisory and Services Fees:
U.S.650,311 741,987 533,773 (12.4)39.0 
Global & Non-US338,232 373,632 338,891 (9.5)10.3 
Total988,543 1,115,619 872,664 (11.4)27.8 
Distribution Revenues12,496 7,641 7,137 63.5 7.1 
Shareholder Servicing Fees2,964 2,882 2,871 2.8 0.4 
Total$1,004,003 $1,126,142 $882,672 (10.8)27.6 
(1)Includes index and enhanced index services.
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services.
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands)    
Equity Actively Managed:         
U.S.$267,671
 $274,320
 $272,577
 (2.4)% 0.6 %
Global & Non-US246,930
 240,332
 212,021
 2.7
 13.4
Total514,601
 514,652
 484,598
 —
 6.2
Equity Passively Managed(1):
         
U.S.144
 117
 206
 23.1
 (43.2)
Global & Non-US190
 254
 510
 (25.2) (50.2)
Total334
 371
 716
 (10.0) (48.2)
Total Equity514,935
 515,023
 485,314
 —
 6.1
Fixed Income Taxable:         
U.S.34,546
 33,034
 34,173
 4.6
 (3.3)
Global & Non-US29,418
 28,358
 26,425
 3.7
 7.3
Total63,964
 61,392
 60,598
 4.2
 1.3
Fixed Income Tax-Exempt:         
U.S.122,350
 118,811
 114,974
 3.0
 3.3
Global & Non-US97
 109
 88
 (11.0) 23.9
Total122,447
 118,920
 115,062
 3.0
 3.4
Fixed Income Passively Managed(1):
         
U.S.13
 156
 58
 (91.7) 169.0
Global & Non-US3,663
 5,312
 4,059
 (31.0) 30.9
Total3,676
 5,468
 4,117
 (32.8) 32.8
Total Fixed Income190,087
 185,780
 179,777
 2.3
 3.3
Other(2):
         
U.S.123,216
 122,686
 67,019
 0.4
 83.1
Global & Non-US65,837
 51,839
 49,365
 27.0
 5.0
Total189,053
 174,525
 116,384
 8.3
 50.0
Total Investment Advisory and Services Fees:         
U.S.547,940
 549,124
 489,007
 (0.2) 12.3
Global & Non-US346,135
 326,204
 292,468
 6.1
 11.5
Consolidated company-sponsored investment funds—
 (1,214) (2,501) 100.0
 51.5
Total894,075
 874,114
 778,974
 2.3
 12.2
Distribution Revenues7,289
 5,809
 5,077
 25.5
 14.4
Shareholder Servicing Fees3,141
 3,311
 3,311
 (5.1) —
Total$904,505
 $883,234
 $787,362
 2.4
 12.2

(1)2022 Annual ReportIncludes index and enhanced index services.11
Table of Contents
Part I
Bernstein Research Services
We offer high-quality fundamental and quantitative research and trade execution services in equities and listed options to institutional investors, such as mutual fund and hedge fund managers, pension funds and other institutional investors ("Bernstein Research Services" or "BRS"). We serve our clients, which are based in major markets around the world, through our trading professionals, who are primarily based in New York, London and Hong Kong, and our research analysts, who provide fundamental company and industry research along with quantitative research into securities valuation and factors affecting stock-price movements.
Additionally, we occasionally provide equity capital markets services to issuers of publicly traded securities, such as initial public offerings and follow-on offerings, generally acting as co-manager in such offerings.
We earn revenues for providing investment research to, and executing brokerage transactions for, institutional clients. These clients compensate us principally by directing us to execute brokerage transactions on their behalf, for which we earn commissions, and to a lesser but increasing extent, by paying us directly for research through commission sharing agreements or cash payments. Bernstein Research Services accounted for approximately 10%, 10% and 12% of our net revenues for the years ended December 31, 2022, 2021 and 2020, respectively.
For information regarding trends in fee rates charged for brokerage transactions, see “Risk Factors” in Item 1A.
In the fourth quarter of 2022, AB and Société Générale (EURONEXT: SCGLY, “SocGen”), a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the BRS business has been classified as held for sale. For further discussion, see Note 24 Acquisitions and Divestitures to AB's consolidated financial statements in Item 8.
(2)Includes certain multi-asset solutions and services and certain alternative investments.

Bernstein Research Services

We offer high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options to institutional investors, such as pension fund, hedge fund and mutual fund managers, and other institutional investors (“Bernstein Research Services”). We serve our clients, which are based in the United States and in other major markets around the world, through our trading professionals, who are primarily based in New York, London and Hong Kong, and our sell-side analysts, who provide fundamental company and industry research along with quantitative research into securities valuation and factors affecting stock-price movements.

We earn revenues for providing investment research to, and executing brokerage transactions for, institutional clients. These clients compensate us principally by directing us to execute brokerage transactions on their behalf, for which we earn commissions, and to a lesser but increasing extent, by paying us directly for research through commission sharing agreements or cash payments. Bernstein Research Services accounted for approximately 12%, 13% and 14% of our net revenues as of December 31, 2019, 2018 and 2017, respectively.

For information regarding trends in fee rates charged for brokerage transactions, see “Risk Factors” in Item 1A.

Our Bernstein Research Services revenues are as follows:

Revenues Fromfrom Bernstein Research Services

Years Ended December 31% Change
2022202120202022-212021-20
(in thousands)  
Bernstein Research Services$416,273 $452,017 $459,744 (7.9)%(1.7)%
Custody
Our U.S. based broker-dealer subsidiary acts as custodian for the majority of our Private Wealth Management AUM and some of our Institutional AUM. Other custodian arrangements, directed by clients, include banks, trust companies, brokerage firms and other financial institutions.
People Management
As a leading global investment management and research firm, we bring together a wide range of insights, expertise and innovations to advance the interests of our clients around the world. The intellectual capital and distinctive knowledge of our employees are collectively the most important assets of our firm, so the long-term sustainability and success of our firm is heavily dependent on our people. In 2022, our human capital and administrative services teams became our "People" team, a key acknowledgement of the central role they play in supporting our employees and advancing their work experience. We are keenly focused on:
•fostering an inclusive culture by incorporating diversity, equity and inclusion in all levels of our business;
•encouraging innovation;
•developing, retaining and recruiting high quality talent; and
•aligning employees’ incentives and risk taking with those of the firm.
As a result, we have a strong firm culture that helps us maximize performance and drive excellence. Further, our firm’s role as a fiduciary is embedded in our culture. As a fiduciary, our firm’s primary objective is to act in our clients' best interests and help them reach their financial goals.
Also, our Board of Directors (the "Board") and committees of the Board, particularly our Compensation and Workplace Practices Committee, provide oversight into various matters affecting our people, including emerging people management risks and strategies to mitigate our exposure to those risks. Furthermore, our Board and Board committees evaluate the overall effectiveness of our social responsibility policies, goals and programs and recommend changes to management as necessary. These collaborative efforts contribute to the overall framework that guides how AB attracts, retains and develops a workforce that supports our values and strategic initiatives.
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands)  
  
Bernstein Research Services$407,911
 $439,432
 $449,919
 (7.2)% (2.3)%
12AllianceBernstein
Table of Contents
Part I
Talent Acquisition
AB seeks to achieve excellence in business and investment performance by recruiting and hiring a workforce with diversity of thought, backgrounds and experiences. We believe that diverse and inclusive teams generate better ideas and reach more balanced decisions. We seek to leverage the unique backgrounds of our employees to meet the needs of a broad range of clients and engage with the communities in which we operate. We engage several external organizations to assist in attracting and recruiting top talent at all levels, with a particular focus on attracting diverse talent. We have a sizable group of internal talent acquisition associates focused on recruiting, and we have implemented various people-related initiatives to develop and provide for a balanced workforce. Additionally, we offer internship programs for students to work in positions across functional areas of the firm, and an important part of our emerging talent and post-graduate recruitment strategy is to convert a high percentage of our interns into full-time employees.
Employee Engagement
We believe a workforce is most productive, effective and highly engaged when they feel connected to our business and culture. We seek to provide diverse work experiences, professional development opportunities, competitive compensation and benefits, an inclusive and diverse culture and social engagement projects to keep our employees motivated, connected to our firm and engaged throughout their careers. We strive to create a culture of intellectual curiosity and collaboration, creating an environment where our employees can thrive and do their best work. We foster growth and advancement through different training avenues to develop skill sets, create opportunities for networking, both internally and externally, and we encourage internal mobility as a part of our employees' career trajectory.
It is important that our employees are not only connected to our business but also to the communities in which we operate. As such, AB offers many opportunities for our employees to volunteer in the communities in which we serve, including our firm-wide philanthropic initiative, AB Gives Back. Other initiatives in support of these objectives include a five-year refresh award, whereby employees receive two additional weeks off for every five years of service. In addition, we utilize AB Voice, a periodic survey designed to measure employee satisfaction and engagement, allowing us to identify and address performance gaps.
Diversity, Equity and Inclusion
Our continued commitment to Diversity, Equity & Inclusion ("DEI") across all facets of our firm aligns with broader industry recognition of the workplace as both a working and learning community. We believe that our company plays a critical role in empowering our people though purpose and fostering an inclusive, collaborative environment and equitable culture that allows for connectivity, belonging and success at every level.
A key element of our ongoing journey has been to adapt as appropriate to evolving DEI industry trends. In 2022, we formally incorporated the concept of "equity" into our strategy and team name in an effort to more accurately reflect our current and anticipated approach.
Our firm's community engagement efforts have been further integrated under the DEI umbrella. To support our grantee and community partners, bolster our commitment to our non-profit clients, and add value for our current and future employees, our approach leverages four programs under the "AB Gives Back" brand: philanthropy, volunteering, board participation and gift matching. Some highlights include improved student attendance and financial literacy in inner city neighborhoods and over 3,000 employee volunteer hours completed in 2022.
We have enhanced our talent attraction and retention approach to position ourselves as an employer of choice and increase investment in our people. We have developed a diverse talent strategy with a goal of gaining a deeper understanding of the needs of diverse talent and also equipping managers with the necessary tools to effectively manage an increasingly diverse workforce. The strategy includes incorporating the concept of inclusive leadership into the firm-wide leadership development curriculum and providing opportunities to build relationships across the firm at all levels.
Finally, our people remain our top priority. Over the course of the last year, there has been a continued focus on education and deepening engagement across all pillars of our strategy to include Employee Resource Groups ("ERGs"), corporate partnerships, and the overall experience at AB. ERGs have been a major proponent of these efforts by cultivating spaces for courageous conversations, encouraging professional development and personal wellness, and raising awareness for various underrepresented communities.

2022 Annual Report13
Table of Contents
Part I
Compensation and Benefits
We consistently invest in our workforce by offering competitive compensation. We utilize a variety of compensation elements, including base salaries, annual short-term compensation awards (i.e., cash bonuses) and, for those of our employees who earn more than $300,000 annually, a long-term compensation award program. Long-term incentive compensation awards generally are denominated in restricted AB Holding Units. We utilize this structure to foster a stronger sense of ownership and align the interests of our employees directly with the interests of our Unitholders and indirectly with the interests of our clients, as strong performance for our clients generally contributes directly to increases in AUM and improved financial performance for the firm. Furthermore, in the U.S. (and elsewhere, although benefits may differ by jurisdiction):
•We provide employee wages that are competitive and consistent with employee positions, skill levels, performance, experience, knowledge and geographic location.
•We engage nationally recognized compensation and benefits consulting firms to independently evaluate the effectiveness of our executive compensation and benefit programs, as well as consulting services relating to the amount and form of compensation paid to employees other than executives, and to provide benchmarking against our industry peers; this process also includes engagement of outside counsel to conduct privileged pay equity reviews to ensure ongoing compliance with applicable laws and regulations.
•We provide merit-based and cost of living annual salary increases, as well as incentive compensation, which are communicated to employees at year-end and documented through our annual review procedures, upon internal transfer and/or promotion; and
•The firm makes benefits available to all eligible employees, including a flexible in-office work schedule that permits working remotely two days weekly, health and prescription insurance, paid and unpaid leaves, a retirement plan, and life and disability/accident coverage. We also offer a variety of voluntary benefits that allow employees to select the options that meet their needs, including flexible time-off, paid parental leave, adoption and surrogacy assistance, tuition reimbursement, and a health and financial wellness program.
Health, Safety and Flexibility for our Workforce
During 2020, at the onset of COVID, we mobilized to ensure the health and safety of our employees globally. We implemented business continuity measures, including travel restrictions and a work-from-home requirement for almost all personnel (other than a relatively small number of employees whose physical presence in our offices was considered critical), which lasted through the second quarter of 2021. Then, while continuing to closely monitor COVID-related conditions globally, we developed return-to-office programs tailored locally, so that employees could feel safe knowing that their health, and the health of their families, were a priority. This meant a staggered return to the office so that we could monitor data while complying with local ordinances.
Beginning in July 2021, in the U.S. we returned to the office three days a week, alternating weeks through the end of 2021. In early 2022, while most of our employees returned to the office full-time, we offered employees the ability to work remotely up to two days per week given the ability and diligence our employees demonstrated while working remotely. By the end of 2022, all employees had returned to the office utilizing a hybrid work schedule, including the flexibility to work remotely up to two days per week. We believe this approach allows our employees to maintain the important benefits of in-person collaboration while providing greater work-life balance.
Employees
As of December 31, 2022, our firm had 4,436 full-time employees, including 203 AB CarVal employees, compared to 4,118 full-time employees as of December 31, 2021, representing a 7.7% increase (a 2.8% increase excluding AB CarVal).
Custody

Our U.S. based broker-dealer subsidiary acts as custodian for the majority of our Private Wealth Management AUM and some of our Institutional AUM. Other custodial arrangements are maintained by client-designated banks, trust companies, brokerage firms or custodians.

Employees

As of December 31, 2019, our firm had 3,811 full-time employees, representing a 4.7% increase compared to the end of 2018. 

14New York state law requires that private sector businesses with 50 or more full-time employees in the state give early warning of plant closings, layoffs, relocations and other covered reductions in work hours. This notification, known as the Worker Adjustment and Retraining Notification (AllianceBernstein“WARN”) notice, must be provided to affected employees and their representatives, the New York State Department of Labor and the Local Workforce Investment Board, for relocations that affect 25 or more employees. In connection with our establishing 1,250 roles in Nashville, Tennessee (most of which are being relocated from our White Plains and New York City locations), we are required to file a series of WARN notices throughout the process, which began in the second half of 2018. We will continue to file these notices as qualifying events occur.
Table of Contents
Part I
As of December 31, 2022, our employees reflected the following characteristics and locations:
Region:Female% FemaleMale% MaleGrand Total% of Total
Americas1,16426 %2,09947 %3,26374 %
Asia ex Japan2345 %2275 %46110 %
EMEA2215 %3779 %59814 %
Japan562 %431 %992 %
Grand Total(1) (2)
1,67538 %2,74662 %4,421100 %
(1)The table above only reflects employees who have self-reported as male or female and as such does not reconcile to our total of 4,436 full-time employees.
(2)The methodology utilized to populate the table above changed from the prior year. Specifically, while in 2021 we presented the total percentage of female and male full-time employees by region who self-reported, in the above table we present the total percentage of female and male full-time employees by region, as a percentage of total global full-time employees, who self-reported.
In connection with our establishing 1,250 roles in Nashville, Tennessee, we have relocated many of our employees from our New York City and White Plains, New York, locations. Employees whose roles are in-scope for the move, but who are not relocating, receive a separation package. We expect layoffs to continue on a rolling basis until all in-scope roles are filled in Nashville.
Information about our Executive Officers
Please refer to "Item 10. Directors, Executive Officers and Corporate Governance" below for information relating to our firm's executive officers.









Service Marks

We have registered a number of service marks with the U.S. Patent and Trademark Office and various foreign trademark offices, including the mark “AllianceBernstein.” The logo set forth below and “Ahead is a service mark of Tomorrow” are service marks of AB:
logoa07.jpgab-20221231_g7.jpg
In 2015, we established a new brand identity by prominently incorporating “AB” into our brand architecture, while maintaining the legal names of our corporate entities. With this and other related refinements, our company, and our Institutional and Retail businesses, are referred to as “AllianceBernstein (AB)” or simply “AB.” Private Wealth Management and Bernstein Research Services are referred to as “AB Bernstein.” Also, we adopted the logo and “Ahead of Tomorrow” service marksmark described above.

In connection with the Bernstein Transaction, we acquired all of the rights in, and title to, the Bernstein service marks, including the mark “Bernstein.”

In connection with an acquisition we completedService marks are generally valid and may be renewed indefinitely, as long as they are in 2013, we acquired all of the rights in, and title to, the W.P. Stewart & Co. service marks, including the logo “WPSTEWART.”

use and/or their registrations are properly maintained.
Regulation

Virtually all aspects of our business are subject to various federal and state laws and regulations, rules of various securities regulators and exchanges, and laws in the foreign countries in which our subsidiaries conduct business. These laws and regulations primarily are intended to protect clients and fund shareholders and generally grant supervisory agencies broad administrative powers, including the power to limit or restrict the carrying on of business for failure to comply with such laws and regulations. Possible sanctions that may be imposed on us include the suspension of individual employees, limitations on engaging in business for specific periods, the revocation of the registration as an investment adviser or broker-dealer, censures and fines.

2022 Annual Report15
Table of Contents
Part I
AB, AB Holding, the General Partner and foursix of our subsidiaries (Sanford C. Bernstein & Co., LLC (“SCB LLC”), AB Broadly Syndicated Loan Manager LLC, AB Custom Alternative Solutions LLC, AB Private Credit Investors LLC, AB CarVal Investors and W.P. Stewart Asset Management LLC)Ltd.) are registered with the SEC as investment advisers under the Investment Advisers Act. Additionally, AB Holding is an NYSE-listed company and, accordingly, is subject to applicable regulations promulgated by the NYSE. Also, AB, SCB LLC and AB Custom Alternative Solutions LLC are registered with the Commodity Futures Trading Commission (“CFTC”) as commodity pool operators and commodity trading advisers; SCB LLC also is registered with the CFTC as a commodities introducing broker.

Each U.S. Fund is registered with the SEC under the Investment Company Act and each Non-U.S. Fund is subject to the laws in the jurisdiction in which the fund is registered. For example, our platform of Luxembourg-based funds operates pursuant to Luxembourg laws and regulations, including Undertakings for the Collective Investment in Transferable Securities Directives, and is authorized and supervised by the Commission de Surveillance du Secteur Financier (“CSSF”), the primary regulator in Luxembourg. AllianceBernstein Investor Services, Inc., one of our subsidiaries, is registered with the SEC as a transfer and servicing agent.

SCB LLC and another of our subsidiaries, AllianceBernstein Investments, Inc., are registered with the SEC as broker-dealers, and both are members of the Financial Industry Regulatory Authority. In addition, SCB LLC is a member of the NYSE and other principal U.S. exchanges.

Many of our subsidiaries are subject to the oversight of regulatory authorities in the jurisdictions outside the United States in which they operate, including the Ontario Securities Commission, the Investment Industry Regulatory Organization of Canada, the European Securities and Markets Authority, the Financial Conduct Authority in the U.K., the CSSF in Luxembourg, the Financial Services Agency in Japan, the Securities & Futures Commission in Hong Kong, the Monetary Authority of Singapore, the Financial Services Commission in South Korea, the Financial Supervisory Commission in Taiwan and The Securities and Exchange Board of India. While these regulatory requirements often may be comparable to the requirements of the SEC and other U.S. regulators, they are sometimes more restrictive and may cause us to incur substantial expenditures of time and money related to our compliance efforts. For additional information relating to the regulations that impact our business, please refer to "Risk Factors" in Item 1A.






Iran Threat Reduction and Syria Human Rights Act

AB, AB Holding and their global subsidiaries had no transactions or activities requiring disclosure under the Iran Threat Reduction and Syria Human Rights Act, nor were they involved in the AXA Group matters described immediately below. We have provided the information below as AXA and its subsidiaries remained our affiliates through early December 2019.
The non-U.S. based subsidiaries of AXA operate in compliance with applicable laws and regulations of the various jurisdictions in which they operate, including applicable international (United Nations and European Union) laws and regulations. While AXA Group companies based and operating outside the United States generally are not subject to U.S. law, as an international group, AXA has in place policies and standards (including the AXA Group International Sanctions Policy) that apply to all AXA Group companies worldwide and often impose requirements that go well beyond local law.
AXA has informed us that AXA Konzern AG, an AXA insurance subsidiary organized under the laws of Germany, provides accident and health insurance to diplomats based at the Iranian Embassy in Berlin, Germany. The total annual premium of these policies is approximately $109,150 and the annual net profit arising from these policies, which is difficult to calculate with precision, is estimated to be $18,385.
AXA also has informed us that AXA Belgium, an AXA insurance subsidiary organized under the laws of Belgium, has two policies providing for car insurance for Global Trading NV, which was designated on May 17, 2018 under (E.O.) 13224 and subsequently changed its name to Energy Engineers & Construction on August 20, 2018. The total annual premium of these policies is approximately $6,559 before tax and the annual net profit arising from these policies, which is difficult to calculate with precision, is estimated to be $983. These policies were cancelled during 2019.
In addition, AXA has informed us that AXA Insurance Ireland, an AXA insurance subsidiary, provides statutorily required car insurance under four separate policies to the Iranian Embassy in Dublin, Ireland. AXA has informed us that compliance with the Declined Cases Agreement of the Irish Government prohibits the cancellation of these policies unless another insurer is willing to assume the coverage. The total annual premium for these policies is approximately $7,115 and the annual net profit arising from these policies, which is difficult to calculate with precision, is estimated to be $853.
Also, AXA has informed us that AXA Sigorta, a subsidiary of AXA organized under the laws of the Republic of Turkey, provides car insurance coverage for vehicle pools and compulsory earthquake coverage of the Iranian General Consulate and the Iranian Embassy in Istanbul, Turkey. Motor liability insurance coverage is compulsory in Turkey and cannot be canceled unilaterally. The total annual premium in respect of these policies is approximately $3,150 and the annual net profit, which is difficult to calculate with precision, is estimated to be $473.
Additionally, AXA has informed us that AXA Winterthur, an AXA insurance subsidiary organized under the laws of Switzerland, provides Naftiran Intertrade, a wholly-owned subsidiary of the Iranian state-owned National Iranian Oil Company, with life, disability and accident coverage for its employees. In addition, AXA Winterthur also provides car and property insurance coverage for the Iranian Embassy in Bern. The provision of these forms of coverage is mandatory in Switzerland. The total annual premium of these policies is approximately $396,597 and the annual net profit arising from these policies, which is difficult to calculate with precision, is estimated to be $59,489.
Also, AXA has informed us that AXA Egypt, an AXA insurance subsidiary organized under the laws of Egypt, provides the Iranian state-owned Iran Development Bank, two life insurance contracts, covering individuals who have loans with the bank. The total annual premium of these policies is approximately $20,650 and annual net profit arising from these policies, which is difficult to calculate with precision, is estimated to be $2,000.
In addition, AXA has informed us that AXA Hong Kong, an AXA insurance subsidiary organized under the laws of Hong Kong, provided the Iranian state-owned Hong Kong Branch of Melli Bank PLC, which was re-designated on November 5, 2018 pursuant to E.O. 13224, with group health insurance for its employees. This business has now been canceled. The total annual premium of these policies is approximately $27,122 and the annual net profit arising from these policies, which is difficult to calculate with precision, is estimated to be $4,339.
Lastly, AXA has informed us that AXA XL, which AXA acquired during the third quarter of 2018, through various non-U.S. subsidiaries, provides insurance to marine policyholders located outside of the U.S. or reinsurance coverage to non-U.S. insurers of marine risks as well as mutual associations of ship owners that provide their members with protection and liability coverage. The provision of these coverages may involve entities or activities related to Iran, including transporting crude oil, petrochemicals and refined petroleum products. AXA XL’s non-U.S. subsidiaries insure or reinsure multiple voyages and fleets containing multiple ships, so they are unable to attribute gross revenues and net profits from such marine policies to activities with Iran. As the activities of these insureds and re-insureds are permitted under applicable laws and regulations, AXA XL intends for its non-U.S. subsidiaries to continue providing such coverage to its insureds and re-insureds to the extent permitted by applicable law.

The aggregate annual premium for the above-referenced insurance policies is approximately $570,343, representing approximately 0.0006% of AXA’s 2019 consolidated revenues, which are expected to exceed $100 billion. The related net profit, which is difficult to calculate with precision, is estimated to be $86,522, representing approximately 0.002% of AXA’s estimated 2019 aggregate net profit.
History and Structure

We have been in the investment research and management business for more than 50 years. Bernstein was founded in 1967. Alliance Capital was founded in 1971 when the investment management department of Donaldson, Lufkin & Jenrette, Inc. (since November 2000, a part of Credit Suisse Group) merged with the investment advisory business of Moody’s Investors Service, Inc.

In April 1988, AB Holding “went public” as a master limited partnership. AB Holding Units, which trade under the ticker symbol “AB,” have been listed on the NYSE since that time.

In October 1999, AB Holding reorganized by transferring its business and assets to AB, a newly-formed operating partnership, in exchange for all of the AB Units (“(the “Reorganization”). Since the date of the Reorganization, AB has conducted the business formerly conducted by AB Holding and AB Holding’s activities have consisted of owning AB Units and engaging in related activities. Unlike AB Holding Units, AB Units do not trade publicly and are subject to significant restrictions on transfer. The General Partner is the general partner of both AB and AB Holding.

In October 2000, our two legacy firms, Alliance Capital and Bernstein, combined, bringing together Alliance Capital’s expertise in growth equity and corporate fixed income investing and its family of retail mutual funds, with Bernstein’s expertise in value equity investing, tax-exempt fixed income management, and its Private Wealth Management and Bernstein Research Servicesbusinesses.

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As of December 31, 2019,2022, the condensed ownership structure of AB is as follows (for a more complete description of our ownership structure, see “Principal Security Holders” in Item 12):

chart3.jpgab-20221231_g8.jpg
The General Partner owns 100,000 general partnership units in AB Holding and a 1% general partnership interest in AB. Including these general partnership interests, EQH, directly and through certain of its subsidiaries (see “Principal Security Holders” in Item 12), had an approximate 64.8%61.3% economic interest in AB as of December 31, 2019.2022.






Competition
We compete in all aspects of our business with numerous investment management firms, mutual fund sponsors, brokerage and investment banking firms, insurance companies, banks, savings and loan associations, and other financial institutions that often provide investment products with similar features and objectives as those we offer. Our competitors offer a wide range of financial services to the same customers that we seek to serve. Some of our competitors are larger, have a broader range of product choices and investment capabilities, conduct business in more markets, and have substantially greater resources than we do. These factors may place us at a competitive disadvantage, and we can give no assurance that our strategies and efforts to maintain and enhance our current client relationships, and create new ones, will be successful.

In addition, EQH and its subsidiaries provide financial services, some of which compete with those we offer. The AB Partnership Agreement specifically allows EQH and its subsidiaries (other than the General Partner) to compete with AB and to pursue opportunities that may be available to us. EQH and certain of its subsidiaries have substantially greater financial resources than we do and are not obligated to provide resources to us.

To grow our business, we believe we must be able to compete effectively for AUM. Key competitive factors include:
•our investment performance for clients;
•our investment performance for clients;
•our commitment to place the interests of our clients first;
•the quality of our research;
•our ability to attract, motivate and retain highly skilled, and often highly specialized, personnel;
•the array of investment products we offer;
•the fees we charge;
•Morningstar/Lipper rankings for the AB Funds;
•our ability to sell our actively-managed investment services despite the fact that many investors favor passive services;
•our operational effectiveness;
•our ability to further develop and market our brand; and
•our global presence.
•our commitment to place the interests of our clients first;

•the quality of our research;
•our ability to attract, motivate and retain highly skilled, and often highly specialized, personnel;
•the array of investment products we offer;
•the fees we charge;
•Morningstar/Lipper rankings for the AB Funds;
•our ability to sell our actively-managed investment services despite the fact that many investors favor passive services;
•our operational effectiveness;
•our ability to further develop and market our brand; and
•our global presence.
Competition is an important risk that our business faces and should be considered along with the other factors we discuss in “Risk Factors” in Item 1A.

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Available Information

AB and AB Holding file or furnish annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, amendments to such reports, and other reports (and amendments thereto) required to comply with federal securities laws, including Section 16 beneficial ownership reports on Forms 3, 4 and 5, registration statements and proxy statements. We maintain an Internet site (http://www.alliancebernstein.com) where the public can view these reports, free of charge, as soon as reasonably practicable after each report is filed with, or furnished to, the SEC. In addition, the SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.


Item 1A.Risk Factors

Please consider this section along with the description of our business in Item 1, the competition section immediately above and AB’s financial information contained in Items 6, 7 and 8. The majority of the risk factors discussed below directly affect AB. These risk factors also affect AB Holding because AB Holding’s principal source of income and cash flow is attributable to its investment in AB. See also “Cautions Regarding Forward-Looking Statements” in Item 7.

Business-related Risks

Our revenues and results of operations depend on the market value and composition of our AUM, which can fluctuate significantly based on various factors, including many factors outside of our control.

We derive most of our revenues from investment advisory and services fees, which typically are calculated as a percentage of the value of AUM as of a specified date, or as a percentage of the value of average AUM for the applicable billing period, and vary with the type of investment service, the size of the account and the total amount of assets we manage for a particular client. The value and composition of our AUM can be adversely affected by several factors, including:

•Market Factors. Our AUM remain sensitive to the volatility associated with global financial market conditions. For example, the dramatic securities market declines experienced during March 2020, which resulted from the global effects of COVID-19, caused a significant reduction in our AUM. Markets and AUM levels recovered to new highs in 2021 following unprecedented, coordinated monetary and fiscal policy support and the approval of vaccines to help remedy the global pandemic. However, significant supply chain challenges, energy shortages and labor shortages, brought about by COVID-19 and significantly exacerbated by the conflict in Ukraine, contributed to heightened global inflationary pressures, which resulted in sizable interest rate increases and associated market volatility in 2022. We recognize that, due to continued uncertainty associated with these circumstances, markets may remain volatile and, accordingly, there remains risk of a significant reduction in our revenues and net income in future periods. Global economies and financial markets are increasingly interconnected, which increases the probability that conditions in one country or region might adversely impact a different country or region. Conditions affecting the general economy, including political, social or economic instability at the local, regional or global level may also affect the market value of our AUM. Health crises, such as the COVID-19 pandemic, as well as other incidents that interrupt the expected course of events, such as natural disasters, war (such as the ongoing conflict in Ukraine) or civil disturbance, acts of terrorism (whether foreign or domestic), power outages and other unforeseeable and external events, and the public response to or fear of such diseases or events, have had and may in the future have a significant adverse effect on financial markets and our AUM, revenues and net income. Furthermore, the preventative and protective health-related actions, such as business activity suspensions and population lock-downs, that governments have taken, and may continue to take, in response to COVID-19 have resulted, and may continue to result, in periods of business interruption, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations. Also, significant market volatility and uncertainty, and reductions in the availability of margin financing, can significantly limit the liquidity of certain asset backed and other securities, making it at times impossible to sell these securities at prices reflecting their true economic value. While liquidity conditions were relatively stable in 2022 despite market volatility, we recognize the possibility that conditions could deteriorate in the future. Lack of liquidity makes it more difficult for our funds to meet redemption requests. If liquidity were to worsen, this may have a significant adverse effect on our AUM, revenues and net income in the future.
•Client Preferences. Generally, our clients may withdraw their assets at any time and on short notice. Also, changing market dynamics and investment trends, particularly with respect to sponsors of defined benefit plans choosing to invest in less risky investments and the ongoing shift to lower-fee passive services described below, may continue to reduce interest in some of the investment products we offer, and/or clients and prospects may continue to seek investment products that we may not currently offer. Loss of, or decreases in, AUM reduces our investment advisory and services fees and revenues.
•18
Market FactorsAllianceBernstein. Global financial markets performed very well in 2019, supported by three 25 basis point interest rate cuts from the U.S. Federal Reserve, which were designed to prevent negative impacts from global risks that emerged during the year.  Other central banks around the world also provided additional monetary accommodation, boosting global financial markets broadly even as aggregate growth slowed in 2019 relative to 2018.  Investor optimism about the eventual resolution of the trade dispute between the United States and China provided a significant boost to global equities in the fourth quarter of 2019.  In addition, the Federal Reserve resumed expansion of its balance sheet late in the year, which has been viewed by many financial market participants as indicative of the central bank’s willingness to keep liquidity ample.  Subdued inflation kept interest rates generally low, which supported both economic growth and strong financial market performance.  Some key risks to market performance in 2020 we are considering include a resumption (or heightening) of U.S./China trade tensions, geopolitical conflict and the U.S. election.  These factors, and the market volatility they may cause, may adversely affect our AUM and revenues.
•
Client Preferences. Generally,
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•Our Investment Performance. Our ability to achieve investment returns for clients that meet or exceed investment returns for comparable asset classes and competing investment services is a key consideration when clients decide to keep their assets with us or invest additional assets, and when a prospective client is deciding whether to invest with us. Poor investment performance, both in absolute terms and/or relative to peers and stated benchmarks, may result in clients withdrawing assets and prospective clients choosing to invest with competitors.
•Investing Trends. Our fee rates can vary significantly among the various investment products and services we offer to our clients (see “Net Revenues” in Item 7 for additional information regarding our fee rates); our fee realization rate fluctuates as clients shift assets between accounts or products with different fee structures.
•Service Changes. We may be required to reduce our fee levels, restructure the fees we charge and/or adjust the services we offer to our clients because of, among other things, regulatory initiatives (whether industry-wide or specifically targeted), changing technology in the asset management business (including algorithmic strategies and emerging financial technology), court decisions and competitive considerations. A reduction in fee levels would reduce our clients may withdraw their assets at any time and on short notice. Also, changing market dynamics and investment trends, particularly with respect to sponsors of defined benefit plans choosing to invest in less risky investments and the ongoing shift to lower-fee passive services described below, may continue to reduce interest in some of the investment products we offer, and/or clients and prospects may continue to seek investment products that we may not currently offer. Loss of, or decreases in, AUM reduces our investment advisory and services fees and revenues.
•Interest Rate Changes. Investor interest in and the valuation of our fixed income and multi-asset investment portfolios can be adversely affected by changes in interest rates, particularly if interest rates increase substantially and quickly.
•
Our Investment Performance.  Our ability to achieve investment returns for clients that meet or exceed investment returns for comparable asset classes and competing investment services is a key consideration when clients decide to keep their assets with us or invest additional assets, and when a prospective client is deciding whether to invest with us. Poor investment performance, both in absolute terms and/or relative to peers and stated benchmarks, may result in clients withdrawing assets and prospective clients choosing to invest with competitors.
•
Investing Trends. Our fee rates can vary significantly among the various investment products and services we offer to our clients (see “Net Revenues” in Item 7 for additional information regarding our fee rates); our fee realization rate fluctuates as clients shift assets between accounts or products with different fee structures.
•
Service Changes. We may be required to reduce our fee levels, restructure the fees we charge and/or adjust the services we offer to our clients because of, among other things, regulatory initiatives (whether industry-wide or specifically targeted), changing technology in the asset management business (including algorithmic strategies and emerging financial technology), court decisions and competitive considerations. A reduction in fee levels would reduce our revenues.
A decrease in the value of our AUM, a decrease in the amount of AUM we manage, an adverse mix shift in our AUM and/or a reduction in the level of fees we charge would adversely affect our investment advisory fees and revenues. A reduction in revenues, without a commensurate reduction in expenses, adversely affects our results of operations.


The industry-wide shift from actively-managedactively managed investment services to passive services has adversely affected our investment advisory and services fees, revenues and results of operations, and this trend may continue.
Our competitive environment has become increasingly difficult, over the past decade, as active managers, which invest based on individual security selection, have, on average, consistently underperformed passive services, which invest based on market indices. ForActive performance relative to benchmarks as of mid-2022 deteriorated from prior-year levels, with 40% of active managers outperforming their passive benchmarks for the 12-month period12 months ended June 30, 2019, active equity fund managers, although they improved their relative performance2022 (latest data available), compared to 47% for the prior periods, generally continued12-month period. U.S. stock active funds fared better than non-U.S. with 45% of U.S. active stock funds outperforming benchmarks, as compared with 23% for non-U.S. stock funds. Performance of actively managed bond funds decreased sharply in 2022, with just 29% outperforming benchmarks, representing a 44% decline compared to lag their key benchmarks,the prior-year period.
Flows into actively managed funds deteriorated industry-wide in 2022, with 48% of active managers outperforming. Results varied among growth, value and core managers. Demand for passive strategies persisted, and while active equity managers continued to struggle to attract new assets, flows to active fixed income managers turned positive. In the U.S., total industry-wide active mutual fund outflows of $286$974 billion in 2018 improved to net outflows2022, contrasted with inflows of $34$148 billion in 2019. Active equity U.S. mutual fund outflows of $289 billion in 2019 increased by 16% year-over-year as the pace of outflows steadily accelerated during the year.2021. Active fixed income U.S. mutual funds recovered following significantexperienced outflows during the fourth quarter of 2018, as inflows during 2019 of $272$482 billion reflecting positive flows in each quarter of 2019, improved by $258 billion2022, compared to 2018. Meanwhile,inflows of $368 billion in 2021. Furthermore, active equity U.S. mutual fund outflows accelerated to $432 billion in 2022, compared to outflows of $191 billion in 2021. By contrast, demand for passive strategies in the U.S. continued to grow, though at a reduced rate from the prior year, as industry-wide total industry-wide passive mutual fund net inflows of $453$518 billion were up slightly from last year's inflows of $450 billion. The most recent data available for U.S. institutions (through September 30, 2019) is more negative. Total industry active equity and fixed income net outflows for the nine months ended September 30, 2019 were $481in 2022 compared to $928 billion approximately 117% more than the same period a year ago. In this environment, organicin 2021. Organic growth through positive net inflows iscontinues to be difficult to achieve for active managers, such as AB, and requires taking market share from other active managers.
The significant shift from active services to passive services adversely affects Bernstein Research Services revenues as well. GlobalInstitutional global market trading volumes have declinedcontinue to be pressured (notwithstanding the heightened market volatility and trading volume predominantly relating to COVID-19 in recent years, and we expect this to continue, fueledthe first half of 2020) by persistent active equity outflows and passive equity inflows. As a result, portfolio turnover has declined and investors hold fewer shares that are actively traded by managers.
Our reputation could suffer if we are unable to deliver consistent, competitive investment performance.

Our business is based on the trust and confidence of our clients. Damage to our reputation, resulting from poor or inconsistent investment performance, among other factors, can reduce substantially our AUM and impair our ability to maintain or grow our business.

EQH and its subsidiaries, as well as AXA and its subsidiaries provide a significant amount of our AUM and fund a significant portion of our seed investments, and if our agreements with them terminate or they withdraw capital support whether as a result of EQH's public offerings since 2018 or another factor, it could have a material adverse effect on our business, results of operations and/or financial condition.
EQH (our parent company), AXA and their respectiveits subsidiaries constitute our largest clients.client. Our EQH affiliates represented approximately 18%,16% of our AUM as of December 31, 2019,2022, and we earned approximately 3%4% of our net revenues from services we provided to them in 2019. AXA and its subsidiaries represented approximately 5% of our AUM as of December 31, 2019, and we earned approximately 2% of our net revenues from services we provided to them in 2019.them. Our related investment management agreements are terminable at any time or on short notice by either party, and neither EQH nor AXA is not under any obligation to maintain any level of AUM with us. A material adverse effect on our business, results of operations and/or financial condition could result if EQH or AXA were to terminate theirits investment management agreements with us.
Further, while we currently cannot predict the eventual impact on us
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Table of AXA's sale of its interest in EQH, such impact could include a reduction in the support AXA has provided to us in the past with respect to our investment management business, resulting in a decrease to our revenues and ability to initiate new investment services. Also, we rely on AXA, including its subsidiary AXA Business Services, for a number of significant services and we benefit from our affiliation with AXA in certain common vendor relationships. These arrangements may change with possible negative financial implications for us.Contents
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Our business is dependent on investment advisory agreements with clients, and selling and distribution agreements with various financial intermediaries and consultants, which generally are subject to termination or non-renewal on short notice.
We derive most of our revenues pursuant to written investment management agreements (or other arrangements) with institutional investors, mutual funds and private wealth clients, and selling and distribution agreements with financial intermediaries that distribute AB Funds. Generally, the investment management agreements (and other arrangements), including our agreements with AXA, EQH and their respectiveits subsidiaries, are terminable at any time or upon relatively short notice by either party. The investment management agreements pursuant to which we manage the U.S. Funds must be renewed and approved by the Funds’ boards of directors annually. A significant majority of the directors are independent. Consequently, there can be no assurance that the board of directors of each fund will approve the fund’s investment management agreement each year, or will not condition its approval on revised terms that may be adverse to us. In addition, investors in AB Funds can redeem their investments without

notice. Any termination of, or failure to renew, a significant number of these agreements, or a significant increase in redemption rates, could have a material adverse effect on our results of operations and business prospects.

Similarly, the selling and distribution agreements with securities firms, brokers, banks and other financial intermediaries are terminable by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of fund shares. These intermediaries generally offer their clients investment products that compete with our products. In addition, certain institutional investors rely on consultants to advise them about choosing an investment adviser and some of our services may not be considered among the best choices by these consultants. As a result, investment consultants may advise their clients to move their assets invested with us to other investment advisers, which could result in significant net outflows.

Lastly, our Private Wealth Services rely on referrals from financial planners, registered investment advisers and other professionals. We cannot be certain that we will continue to have access to, or receive referrals from, these third parties. Loss of such access or referrals could have a material adverse effect on our results of operations and business prospects.

Performance-based fee arrangements with our clients may cause greater fluctuations in our net revenues.

We sometimes charge our clients performance-based fees, whereby we charge a base advisory fee and are eligible to earn an additional performance-based fee or incentive allocation that is calculated as either a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. Some performance-based fees include a high-watermark provision, which generally provides that if a client account under-performs relative to its performance target (whether in absolute terms or relative to a specified benchmark), it must gain back such under-performance before we can collect future performance-based fees. Therefore, if we fail to achieve the performance target for a particular period, we will not earn a performance-based fee for that period and, for accounts with a high-watermark provision, our ability to earn future performance-based fees will be impaired.

We are eligible to earn performance-based fees on 7.9%10.6%, 9.1%9.2% and 0.7%0.5% of the assets we manage for institutional clients, private wealth clients and retail clients, respectively (in total, 5.3%6.6% of our AUM). If the percentage of our AUM subject to performance-based fees increases, seasonality and volatility of revenue and earnings are likely to become more significant. Our performance-based fees were $99.6$145.2 million, $118.1$245.1 million and $94.8$132.6 million in 2019, 20182022, 2021 and 2017,2020, respectively.

The revenues generated by Bernstein Research Services may be adversely affected by circumstances beyond our control, including declines in brokerage transaction rates, declines in global market volumes, failure to settle our trades by significant counterparties and the effects of MiFID II.

Brexit.
Electronic, or “low-touch,” trading represents a significant percentage of buy-side trading activity and typically produces transaction fees that are significantly lower than the price of traditional full servicefull-service fee rates. As a result, blended pricing throughout our industry is lower now than it was historically, and price declines may continue. In addition, fee rates we charge and charged by other brokers for brokerage services have historically experienced price pressure, and we expect these trends to continue. Also, while increases in transaction volume and market share often can offset decreases in rates, this may not continue.

In addition, the failure or inability of any of our broker-dealer's significant counterparties to perform could expose us to substantial expenditures and adversely affect our revenues. For example, SCB LLC, as a member of clearing and settlement organizations, would be required to settle open trades of any non-performing counterparty. This exposes us to the mark-to-market adjustment on the trades between trade date and settlement date, which could be significant, especially during periods of severe market volatility. Also, our ability to access liquidity in such situations may be limited by what our funding relationships are able to offer us at such times.

Lastly, extensive changes proposed by the SEC to the equity market structure, including Regulation Best Execution, the proposed Order Competition Rule and proposed changes to Regulation NMA establishing, among other things, minimum pricing increments and required disclosures by larger broker-dealers and specified trading platforms, if adopted as proposed, could substantially increase the cost of conducting our buy-side and broker-dealer operations and, possibly, adversely impact trade execution quality.
We discuss the risks associated with the second installment of the Markets in Financial Instruments Directive II (“MiFID II”)Brexit below in "Legal and Regulatory-related Risks" in this Item 1A.

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We may be unable to develop new products and services, and the development of new products and services may expose us to reputational harm, additional costs or operational risk.
Our financial performance depends, in part, on our ability to react nimbly to changes in the asset management industry, respond to evolving client needs, and develop, market and manage new investment products and services. Conversely, the development and introduction of new products and services, including the creation of products with concentrations in industries or sectors specific to individual client criteria, or with a focus on ESG, requires continuous innovative effort on our part and may require significant time and resources as well as ongoing support and investment. Substantial risk and uncertainties are associated with the introduction of new products and services, including the implementation of new and appropriate operational controls and procedures, shifting client and market preferences, the introduction of competing products or services, and compliance with regulatory and disclosure requirements. We can make no assurance that we will be able to develop new products and services that successfully address the needs of clients within needed timeframes. Any failure to successfully develop new products and services, or effectively manage associated operational risks, could harm our reputation and expose us to additional costs, which could adversely affect our AUM, revenues and operating income.
Fluctuations in the exchange rates between the U.S. dollar and various other currencies can adversely affect our AUM, revenues and results of operations.

operations.
Although significant portions of our net revenues and expenses, as well as our AUM, presently are denominated in U.S. dollars, we have subsidiaries and clients outside of the United States with functional currencies other than the U.S. dollar. Weakening of these currencies relative to the U.S. dollar adversely affects the value in U.S. dollar terms of our revenues and our AUM denominated in these other currencies. Accordingly, fluctuations in U.S. dollar exchange rates affect our AUM, revenues and reported financial results from one period to the next.


We may not be successful in our efforts to hedge our exposure to such fluctuations, which could negatively impact our revenues and reported financial results.

Our seed capital investments are subject to market risk. While we enter into various futures, forwards, swap and option contracts to economically hedge many of these investments, we also may be exposed to market risk and credit-related losses in the event of non-performance by counterparties to these derivative instruments.

We have a seed investment program for the purpose of building track records and assisting with the marketing initiatives pertaining to our firm's new products. These seed capital investments are subject to market risk. Our risk management team oversees a seed hedging program that attempts to minimize this risk, subject to practical and cost considerations. Also, not all seed investments are deemed appropriate to hedge, and in those cases we are exposed to market risk. In addition, we may be subject to basis risk in that we cannot always hedge with precision our market exposure and, as a result, we may be subject to relative spreads between market sectors. As a result, volatility in the capital markets may cause significant changes in our period-to-period financial and operating results.

We use various derivative instruments, including futures, forwards, swapswaps and option contracts, in conjunction with our seed hedging program. While in most cases broad market risks are hedged, our hedges are imperfect and some market risk remains. In addition, our use of derivatives results in counterparty risk (i.e., the risk that we may be exposed to credit-related losses in the event of non-performance by counterparties to these derivative instruments), regulatory risk (e.g., short selling restrictions) and cash/synthetic basis risk (i.e., the risk that the underlying positions do not move identically to the related derivative instruments).

We may engage in strategic transactions that could pose risks.

As part of our business strategy, we consider potential strategic transactions, including acquisitions (such as our purchase of CarVal Investors in 2022), dispositions, mergers, consolidations, joint venturesventure partnerships (such as our planned joint venture partnership with SocGen) and similar transactions, some of which may be material. These transactions, if undertaken, may involve various risks and present financial, managerial and operational challenges, including:.

•adverse effects on our earnings if acquired intangible assets or goodwill become impaired;
•existence of unknown liabilities or contingencies that arise after closing;
•potential disputes with counterparties; and
potential dilution•the possible need for us to increase our existing unitholders,firm's leverage or, if we fund the purchase price of a transaction with AB Units or AB Holding Units.Units, likely dilution to our existing unitholders.
Acquisitions also pose the risk that any business we acquire may lose customers or employees or could under-perform relative to expectations. Additionally, the loss of investment personnel poses the risk that we may lose the AUM we expected to manage, which could adversely affect our results of operations. Furthermore, strategic transactions may require us to increase our leverage or, if we issue AB Units or AB Holding Units to fund an acquisition, would dilute the holdings of our existing Unitholders.

We may not accurately value the securities we hold on behalf of our clients or our company investments.

In accordance with applicable regulatory requirements, contractual obligations or client direction, we employ procedures for the pricing and valuation of securities and other positions held in client accounts or for company investments. We have established a Valuation Committee, consisting of senior officers and employees, which oversees pricing controls and valuation processes. If market quotations for a security are not readily available, the Valuation Committee determines a fair value for the security.

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Extraordinary volatility in financial markets, significant liquidity constraints or our failure to adequately consider one or more factors when determining the fair value of a security based on information with limited market observability could result in our failing to properly value securities we hold for our clients or investments accounted for on our balance sheet. Improper valuation likely would result in our basing fee calculations on inaccurate AUM figures, our striking incorrect net asset values for company-sponsored mutual funds or hedge funds or, in the case of company investments, our inaccurately calculating and reporting our financial condition and operating results. Although the overall percentage of our AUM that we fair value based on information with limited market observability is not significant, inaccurate fair value determinations can harm our clients, create regulatory issues and damage our reputation.


We may not have sufficient information to confirm or review the accuracy of valuations provided to us by underlying external managers for the funds in which certain of our alternative investment products invest.

Certain of our alternative investment services invest in funds managed by external managers (“External Managers”) rather than investing directly in securities and other instruments. As a result, our abilities will be limited with regard to (i) monitoring such investments, (ii) regularly obtaining complete, accurate and current information with respect to such investments and (iii) exercising control over such investments. Accordingly, we may not have sufficient information to confirm or review the accuracy of valuations provided to us by External Managers. In addition, we will be required to rely on External Managers’ compliance with any applicable investment guidelines and restrictions. Any failure of an External Manager to operate within such guidelines or to provide accurate information with respect to the investment could subject our alternative investment products to losses and cause damage to our reputation.
The quantitative and systematic models we use in certain of our investment services may contain errors, resulting in imprecise risk assessments and unintended output.

We use quantitative and systematic models in a variety of our investment services, generally in combination with fundamental research. These models are developed by senior quantitative professionals and typically are implemented by IT professionals. Our Model Risk Oversight Committee oversees the model governance framework and associated model review activities, which are then executed by our Model Risk Team. However, due to the complexity and large data dependency of such models, it is possible that errors in the models could exist and our controls could fail to detect such errors. Failure to detect errors could result in client losses and reputational damage.

The financial services industry is intensely competitive.

We compete on the basis of a number of factors, including our investment performance for our clients, our array of investment services, innovation, reputation and price. By having a global presence, we often face competitors with more experience and more established relationships with clients, regulators and industry participants in the relevant market, which could adversely affect our ability to expand. Furthermore, if we are unable to maintain and/or continue to improve our investment performance, our client flows may be adversely affected, which may make it more difficult for us to compete effectively.
Also, increased competition could reduce the demand for our products and services, which could have a material adverse effect on our financial condition, results of operations and business prospects. For additional information regarding competitive factors, see “Competition” in Item 1.

Human Capital-relatedPeople-related Risks

We may be unable to continue to attract, motivate and retain key personnel, and the cost to retain key personnel could put pressure on our adjusted operating margin.

Our business depends on our ability to attract, motivate and retain highly skilled, and often highly specialized, technical, investment, managerial and executive personnel, and there is no assurance that we will be able to continue to do so.

The market for these professionals is extremely competitive. TheyCertain of these professionals often maintain strong, personal relationships with investors in our products and other members of the business community so their departure may cause us to lose client accounts or result in fewer opportunities to win new business, either of which factors could have a material adverse effect on our results of operations and business prospects.

Additionally, a decline in revenues may limit our ability to pay our employees at competitive levels, and maintaining (or increasing) compensation without a revenue increase, in order to retain key personnel, may adversely affect our adjusted operating margin. As a result, we remain vigilant about aligning our cost structure (including headcount) with our revenue base. For additional information regarding our compensation practices, see "Compensation Discussion and Analysis" in Item 11.

Our process of relocating our headquarters may not be executed as we envision.

have envisioned.
We have announced that we will establishestablished our corporate headquarters in and relocatehave relocated a total of approximately 1,250 jobs previously located in the New York metropolitan area to Nashville, Tennessee (for additional information, see “Relocation Strategy” in Item 7). Although the eventual impact on AB from this process is not yet known, the uncertainty created by these circumstances could have a significant adverse effect onadversely affect AB’s ability to motivate and retain current employees. Further, significant managerial and operational challenges could arise such as ineffective transfer of institutional knowledge from current employees to newly-hired employees, if AB

experiences significantly greater attrition among current employees than the firm anticipates in connection with the relocation and/or if the firm encounters more difficulty than expected in hiring qualified employees to help staff our Nashville headquarters.

Additionally, our estimates for both the transition costs and the corresponding expense savings relating to our headquarters relocation which we discuss in more detail in “Relocation Strategy” in Item 7, are based on our current assumptions of employee relocation costs, severance, and overlapping compensation and occupancy costs. If our assumptions turn out to be inaccurate, our adjusted net revenuesexpenses and adjusted operating income could be adversely affected.
Employee misconduct, which can be difficult to detect and deter, could harm us by impairing our ability to attract and retain clients and subjecting us to significant regulatory scrutiny, legal liability and reputational harm.
There have been several highly publicized cases involving fraud or other misconduct by employees in the financial services industry generally, and we are not immune. Misconduct by employees could involve the improper use or disclosure of confidential information, which could result in legal action, regulatory sanctions, and reputational or financial harm. Further,
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fraud, payment or solicitation of bribes and other deceptive practices or other misconduct by our employees could similarly subject us to regulatory scrutiny, legal liability and reputational damage.
Operational, Technology and Cyber-related Risks

Technology failures and disruptions, including failures to properly safeguard confidential information, can significantly constrain our operations and result in significant time and expense to remediate, which could result in a material adverse effect on our results of operations and business prospects.

We are highly dependent on software and related technologies throughout our business, including both proprietary systems and those provided by third-party vendors. We use our technology to, among other things, obtain securities pricing information, process client transactions, store and maintain data, and provide reports and other services to our clients. Despite our protective measures, including measures designed to effectively secure information through system security technology and established and tested business continuity plans, we may still experience system delays and interruptions as a result of natural disasters, hardware failures, software defects, power outages, acts of war and third-party failures. We cannot predict with certainty all of the adverse effects that could result from our failure, or the failure of a third party, to efficiently address and resolve these delays and interruptions. These adverse effects could include the inability to perform critical business functions or failure to comply with financial reporting and other regulatory requirements, which could lead to loss of client confidence, reputational damage, exposure to disciplinary action and liability to our clients.

Many of the software applications that we use in our business are licensed from, and supported, upgraded and maintained by, third-party vendors. A suspension or termination of certain of these licenses or the related support, upgrades and maintenance could cause temporary system delays or interruption. Additionally, technology rapidly evolves and we cannot guarantee that our competitors may not implement more advanced technology platforms for their products and services, which may place us at a competitive disadvantage and adversely affect our results of operations and business prospects.

Also, we could be subject to losses if we fail to properly safeguard sensitive and confidential information. As part of our normal operations, we maintain and transmit confidential information about our clients as well as proprietary information relating to our business operations. Although we take protective measures, our systems still could be vulnerable to cyber attack or other forms of unauthorized access (including computer viruses) that have a security impact, such as an authorized employee or vendor inadvertently or intentionally causing us to release confidential or proprietary information. Such disclosure could, among other things, allow competitors access to our proprietary business information and require significant time and expense to investigate and remediate the breach. Moreover, loss of confidential client information could harm our reputation and subject us to liability under laws that protect confidential personal data, resulting in increased costs or loss of revenues.

Any significant security breach of our information and cyber security infrastructure, as well as our failure to properly escalate and respond to such an incident, may significantly harm our operations and reputation.
It is critical that we ensure the continuity and effectiveness of our information and cyber security infrastructure, policies, procedures and capabilities to protect our computer and telecommunications systems and the data that reside on or are transmitted through them and contracted third-party systems. Although we take protective measures, including measures to effectively secure information through system security technology, our technology systems may still be vulnerable to unauthorized access, supply chain attacks, computer viruses or other events that have a security impact, such as an external attack by one or more cyber criminals (including phishing attacks attempting to obtain confidential information and ransomware attacks attempting to block access to a computer system until a sum of money is paid), which could materially harm our operations and reputation. Additionally, while we take precautions to password protect and encrypt our laptops and sensitive information on our other mobile electronic devices, if such devices are stolen, misplaced or left unattended, they may become vulnerable to hacking or other unauthorized use, creating a possible security risk and resulting in potentially costly actions by us.
Furthermore, although we maintain a robust cyber security infrastructure and incident preparedness strategy, which we test periodically,frequently, we may be unable to respond, both internally and externally, to a cyber incident in a sufficiently expeditious manner. Any such failure could cause significant harm to our reputation and result in litigation, regulatory scrutiny and/or significant remediation costs.

Unpredictable
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Climate change and other unpredictable events, including climate change,outbreak of infectious disease, natural disaster, dangerous weather conditions, technology failure, terrorist attack and political unrest, may adversely affect our ability to conduct business.

War, terrorist attack, political unrest, power failure, climate change, natural disaster and rapid spread of infectious disease (such as the recent impact caused by the 2019 novel coronavirus)ongoing COVID-19 pandemic) could interrupt our operations by:

•causing disruptions in global economic conditions, thereby decreasing investor confidence and making investment products generally less attractive;
•inflicting loss of life;
•triggering large-scale technology failures or delays;
•breaching our information and cyber security infrastructure; and
•requiring substantial capital expenditures and operating expenses to remediate damage and restore operations.
Furthermore, climate change may increase the severity and frequency of catastrophes, or adversely affect our investment portfolio or investor sentiment. Climate change may also increase the frequency and severity of weather-related disasters and pandemics. And, climate change regulation may affect the prospects of companies and other entities whose securities in which we invest, or our willingness to continue to invest in such securities.
Despite the contingency plans and facilities we have in place, including system security measures, information back-up and disaster recovery processes, our ability to conduct business, including in key business centers where we have significant operations, such as Nashville, Tennessee, New York City, London, England, and Nashville, Tennessee,Hong Kong, may be adversely affected by a disruption in the infrastructure that supports our operations and the communities in which they are located. This may include a disruption involving electrical, communications, transportation or other services we may use or third parties with which we conduct business. If a disruption occurs in one location and our employees in that location are unable to occupy our offices or communicate with or travel to other locations, our ability to conduct business with and on behalf of our clients may suffer, and we may not be able to successfully implement contingency plans that depend on communication or travel. Furthermore, unauthorized access to our systems as a result of a security breach, the failure of our systems, or the loss of data could give rise to legal proceedings or regulatory penalties under laws protecting the privacy of personal information, disrupt operations, and damage our reputation.

Our operations require experienced, professional staff. Loss of a substantial number of such persons or an inability to provide properly equipped places for them to work may, by disrupting our operations, adversely affect our financial condition, results of operations and business prospects. In addition, our property and business interruption insurance may not be adequate to compensate us for all losses, failures or breaches that may occur.

Our own operational failures or those of third parties on which we rely, including failures arising out of human error, could disrupt our business, damage our reputation and reduce our revenues.

Weaknesses or failures in our internal processes or systems could lead to disruption of our operations, liability to clients, exposure to disciplinary action or harm to our reputation. Our business is highly dependent on our ability to process, on a daily basis, large numbers of transactions, many of which are highly complex, across numerous and diverse markets. These transactions generally must comply with client investment guidelines, as well as stringent legal and regulatory standards.

Our obligations to clients require us to exercise skill, care and prudence in performing our services. Despite our employees being highly trained and skilled, the large number of transactions we process makes it highly likely that errors will occasionally occur. If we make a mistake in performing our services that causes financial harm to a client, we have a duty to act promptly to put the client in the position the client would have been in had we not made the error. The occurrence of mistakes, particularly significant ones, can have a material adverse effect on our reputation, results of operations and business prospects.

The individuals and third-party vendors or issuers on whom we rely to perform services for us or our clients may be unable or unwilling to honor their contractual obligations to us.

We rely on various counterparties and other third-party vendors to augment our existing investment, operational, financial and technological capabilities, but the use of a third-party vendor does not diminish AB's responsibility to ensure that client and regulatory obligations are met. Default rates, credit downgrades and disputes with counterparties as to the valuation of collateral increase significantly in times of market stress. Disruptions in the financial markets and other economic challenges may cause our counterparties and other third-party vendors to experience significant cash flow problems or even render them insolvent, which may expose us to significant costs and impair our ability to conduct business.

Weaknesses or failures within a third-party vendor's internal processes or systems, or inadequate business continuity plans, can materially disrupt our business operations. Also, third-party vendors may lack the necessary infrastructure or resources to effectively safeguard our confidential data. If we are unable to effectively manage the risks associated with such third-party relationships, we may suffer fines, disciplinary action and reputational damage.

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We may not always successfully manage actual and potential conflicts of interest that arise in our business.

Increasingly, we must manage actual and potential conflicts of interest, including situations where our services to a particular client conflict, or are perceived to conflict, with the interests of another client. Failure to adequately address potential conflicts of interest could adversely affect our reputation, results of operations and business prospects.

We have procedures and controls that are designed to identify and mitigate conflicts of interest, including those designed to prevent the improper sharing of information. However, appropriately managing conflicts of interest is complex. Our reputation could be damaged and the willingness of clients to enter into transactions in which such a conflict might arise may be affected if we fail, or appear to fail, to deal appropriately with actual or perceived conflicts of interest. In addition, potential or perceived conflicts could give rise to litigation or regulatory enforcement actions.

Maintaining adequate liquidity for our general business needs depends on certain factors, including operating cash flows and our access to credit on reasonable terms.

Our financial condition is dependent on our cash flow from operations, which is subject to the performance of the capital markets, our ability to maintain and grow AUM and other factors beyond our control. Our ability to issue public or private debt on reasonable terms may be limited by adverse market conditions, our profitability, our creditworthiness as perceived by lenders and changes in government regulations, including tax rates and interest rates. Furthermore, our access to credit on reasonable terms is partially dependent on our firm’s credit ratings.

Both Moody’s Investors Service, Inc. and Standard & Poor's Rating Service affirmed AB’s long-term and short-term credit ratings and indicated a stable outlook in 2019.2022. Future changes in our credit ratings are possible and any downgrade to our ratings is likely to increase our borrowing costs and limit our access to the capital markets. If this occurs, we may be forced to incur unanticipated costs or revise our strategic plans, which could have a material adverse effect on our financial condition, results of operations and business prospects.

An impairment of goodwill may occur.

Determining whether an impairment of the goodwill asset exists requires management to exercise a substantial amount of judgment. In addition, to the extent that securities valuations are depressed for prolonged periods of time and/or market conditions deteriorate, or if we experience significant net redemptions, our AUM, revenues, profitability and unit price will be adversely affected. Although the price of an AB Holding Unit is just one factor in the calculation of fair value, if AB Holding Unit price levels decline significantly, reaching the conclusion that fair value exceeds carrying value will, over time, become more difficult. In addition, control premiums, industry earnings multiples and discount rates are impacted by economic conditions. As a result, subsequent impairment tests may occur more frequently and be based on more negative assumptions and future cash flow projections, and may result in an impairment of goodwill. An impairment may result in a material charge to our earnings. For additional information about our impairment testing, see Item 7.

The insurance that we maintainpurchase may not fully cover all potential exposures.

We maintain professional liability, errors & omissions, fidelity, cyber, property, casualty, business interruption and other types of insurance, but such insurance may not cover all risks associated with the operation of our business. Our coverage is subject to exclusions and limitations, including high self-insured retentions or deductibles and maximum limits and liabilities covered. In addition, from time to time, various types of insurance may not be available on commercially acceptable terms or, in some cases, at all. We can make no assurance that a claim or claims will be covered by our insurance policies or, if covered, will not exceed our available insurance coverage, or that our insurers will remain solvent and meet their obligations.
In the future, we may not be able to obtain coverage at current levels, if at all, and our premiums may increase significantly on coverage that we maintain. Also, we currently are party to certain joint insurance arrangements with subsidiaries of EQH. If our affiliates choose not to include us as insured parties under any such policies, we may need to obtain stand-alone insurance coverage, which could have coverage terms that are less beneficial to us and/or cost more.





Legal and Regulatory-related Risks

Our business is subject to pervasive, complex and continuously evolving global regulation, compliance with which involves substantial expenditures of time and money, and violation of which may result in material adverse consequences.

Virtually all aspects of our business are subject to federal and state laws and regulations, rules of securities regulators and exchanges, and laws and regulations in the foreign jurisdictions in which our subsidiaries conduct business. If we violate these laws or regulations, we could be subject to civil liability, criminal liability or sanction, including restriction or revocation of our and our subsidiaries’ professional licenses or registrations, revocation of the licenses of our employees, censures, fines, or temporary suspension or permanent bar from conducting business. Any such liability or sanction could have a material adverse effect on our financial condition, results of operations and business prospects. A regulatory proceeding, even if it does not result in a finding of wrongdoing or sanction, could require substantial expenditures of time and money and could potentially damage our reputation.

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In recent years, global regulators have substantially increased their oversight of financial services. Some of the newly-adopted and proposed regulations are focused on investment management services. Others, while more broadly focused, nonetheless impact our business. Moreover, the adoption of new laws, regulations or standards and changes in the interpretation or enforcement of existing laws, regulations or standards have directly affected, and will continue to affect, our business, including making our efforts to comply more expensive and time-consuming.

For example, there has been increasing regulatory focus on ESG-related practices by investment managers. The SEC is poised in 2023 to issue a rule enhancing and standardizing climate disclosures by U.S. public companies, including investment managers. The SEC also has focused on the labeling by investment funds of their activities or investments as "sustainable" and has examined the methodology used by funds for determining ESG investments, with a keen focus on whether such labeling may be misleading. Outside the U.S., the European Commission has adopted an action plan on financing sustainable growth, as well as initiatives at the European Union (the "EU") level, such as the EU Sustainable Finance Disclosure Regulation (the "SFDR"). Compliance with the SFDR and other ESG-related regulations may subject us to increased restrictions, disclosure obligations, and compliance and other associated costs, as well as potential reputational harm.
Also, in 2015 the Financial Supervisory Commission in Taiwan (“(the “FSC”) implemented new limits on the degree to which local investors can own an offshore investment product. While certain exemptions have been available to us, should we not continue to qualify, the FSC’s rules could force some of our local resident investors to redeem their investments in our funds sold in Taiwan (and/or prevent further sales of those funds in Taiwan), some of which funds have local ownership levels substantially above the FSC limits. This could lead to significant declines in our investment advisory and services fees and revenues earned from these funds.

In Europe, MiFID II, which became effective in January 2018, makes significant modifications to the manner in which European broker-dealers can be compensated for research. These modifications have reduced, and are believed to have significantly reduced, the overall research spend by European buy-side firms, which has decreased the revenues we derive from our European clients. Our European clients may continue to reduce their research budgets, which could result in a significant decline in our sell-side revenues.
Also, while MiFID II is not applicable to firms operating outside of Europe, competitive and client pressures may force buy-side firms operating outside of Europe to pay for research from their own resources instead of through bundled trading commissions. If that occurs, we would expect that research budgets from those clients will decrease further, which could result in an additional significant decline in our sell-side revenues. Additionally, these competitive and client pressures may result in our buy-side operation paying for research out of our own resources instead of through bundled trading commissions, which could increase our firm's expenses and decrease our operating income.

Additionally, in July 2017 the Chief Executive of the U.K. Financial Conduct Authority (“(the “FCA”), which regulates the London Interbank Offered Rate, or “LIBOR,“LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations, announced that the FCA will no longer persuade or compel banks to submit rates for the calculation of the LIBOR benchmark after 2021. In November 2020, the ICE Benchmark Administration Limited announced a plan to extend the date as of which most U.S. LIBOR values would cease being computed from December 31, 2021 to June 30, 2023. Although financial regulators and industry working groups have suggested alternative reference rates, global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates may adversely affect the amount of interest payable or interest receivable on certain of our firm's portfolio investments. These changes may also impact the market liquidity and market value of these portfolio investments. We are finalizing our global assessment of exposure in relation to funds utilizing LIBOR based instruments and benchmarks. Further, we are prioritizing the mitigation of risks associated with the forecast changes to financial instruments and performance benchmarks referencing existing LIBOR rates, and concurrently any impact on AB portfolios and investment strategies.

Lastly, it also is uncertain how regulatory trends will further evolve, underboth in the current U.S. President's administration and abroad. For example, following the Brexit referendum in June 2016, a narrow majority of votersthe U.K.'s departure from the EU resulted in a U.K. referendum voted to exit the European Union (“Brexit”) and, as of January 31, 2020, the U.K. did just that. However, it remains unclear exactly howleaving the EU Single Market on December 31, 2020. While the U.K.’s status in relation and the EU have agreed to a trade deal, which took effect on January 1, 2021, this deal does not include specific arrangements for financial services. Accordingly, since the European Union ("EU") will change now that is has left. Accordingly,start of 2021, our U.K.-based buy-side and sell-side subsidiaries are implementinghave implemented alternative arrangements in EU jurisdictions in order(utilizing AB's EU-based subsidiaries) to ensure continued operations in the Eurozone, includingEU Single Market. These arrangements are subject to potential change due to ongoing negotiations between the U.K. and the EU on future regulatory cooperation, and it is difficult to ascertain how any such changes may impact the ability of our continued abilityU.K.-based subsidiaries to market and sell various investment productsprovide services to EU-based clients in the Eurozone. In addition, any other changes in the composition of the EU’s member states may add further complexity to our global risks and operations.


future.
We are involved in various legal proceedings and regulatory matters and may be involved in such proceedings in the future, any one or combination of which could have a material adverse effect on our reputation, financial condition, results of operations and business prospects.

We may be involved in various matters, including regulatory inquiries, administrative proceedings and litigation, some of which allege significant damages, and we may be involved in additional matters in the future. Litigation is subject to significant uncertainties, particularly when plaintiffs allege substantial or indeterminate damages, the litigation is in its early stages, or when the litigation is highly complex or broad in scope.

Structure-related Risks

The partnership structure of AB Holding and AB limits Unitholders’ abilities to influence the management and operation of AB’s business and is highly likely to prevent a change in control of AB Holding and AB.

The General Partner, as general partner of both AB Holding and AB, generally has the exclusive right and full authority and responsibility to manage, conduct, control and operate their respective businesses, except as otherwise expressly stated in their respective Amended and Restated Agreements of Limited Partnership. AB Holding and AB Unitholders have more limited voting rights on matters affecting AB than do holders of common stock in a corporation. Both Amended and Restated Agreements of Limited Partnership provide that Unitholders do not have any right to vote for directors of the General Partner and that Unitholders only can vote on certain extraordinary matters (including removal of the General Partner under certain
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extraordinary circumstances). Additionally, the AB Partnership Agreement includes significant restrictions on the transfer of AB Units and provisions that have the practical effect of preventing the removal of the General Partner, which provisions are highly likely to prevent a change in control of AB’s management.

AB Units are illiquid and subject to significant transfer restrictions.

There is no public trading market for AB Units and we do not anticipate that a public trading market will develop. The AB Partnership Agreement restricts our ability to participate in a public trading market or anything substantially equivalent to one by providing that any transfer that may cause AB to be classified as a “publicly traded partnership” (“PTP”) as defined in Section 7704 of the Internal Revenue Code of 1986, as amended (“(the “Code”), shall be deemed void and shall not be recognized by AB. In addition, AB Units are subject to significant restrictions on transfer, such as obtaining the written consent of EQH and the General Partner pursuant to the AB Partnership Agreement. Generally, neither EQH nor the General Partner will permit any transfer that it believes would create a risk that AB would be treated as a corporation for tax purposes. EQH and the General Partner have implemented a transfer program that requires a seller to locate a purchaser and imposes annual volume restrictions on transfers. You may request a copy of the transfer program from our Corporate Secretary (corporate_secretary@alliancebernstein.com(corporate_secretary@alliancebernstein.com)). Also, we have filed the transfer program as Exhibit 10.07 to this Form 10-K.

Changes in the partnership structuretreatment of AB Holding and AB and/or changes in theas partnerships for tax law governing partnershipspurposes would have significant tax ramifications.

AB Holding, havingHaving elected under Section 7704(g) of the Code to be subject to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business, AB Holding is a “grandfathered” PTP that is taxable as a partnership for federal income tax purposes. AB Holding is also subject to the 4.0% New York City unincorporated business tax (“UBT”), net of credits for UBT paid by AB. In order toTo preserve AB Holding’sHolding's status as a “grandfathered” PTP that is taxed as a partnership for federal income tax purposes, management seeks to ensure that AB Holding doesmust not directly or indirectly (through AB) enter into a substantial new line of business. A “new line of business” includes any business that is not closely related to AB’s historical business of providing research and diversified investment management and related services to its clients. A new line of business is “substantial” when a partnership derives more than 15% of its gross income from, or uses more than 15% (by value) of its total assets in, the new line of business.

AB isTo preserve AB’s status as a private partnership for federal income tax purposes, AB Units must not be considered publicly traded.
If either or both AB Holding and accordingly, is notAB were taxable as a corporation, the return on investment to Unitholders generally would be reduced because distributions to Unitholders generally would be subject to two layers of taxation: first, amounts available for distribution would be subject to federal (and applicable state and local) taxes at the corporate entity level; and second, Unitholders generally would be subject to federal (and applicable state corporate income taxes. However, and local) taxes upon receipt of dividends.
AB isHolding and AB are subject to the 4.0% UBT. Domestic corporate subsidiariesNew York City unincorporated business tax (“UBT”). AB Holding may net credits for UBT paid by AB.
Changes in tax law governing us or an increase in business activities outside the U.S. could have a material impact on us.
Legislative proposals have been or may be introduced that, if enacted, could have a material adverse effect on us. We cannot predict the outcome of AB, which are subject to federal, state and local income taxes, generally are included in the filing of a consolidated federal income tax return with separate state and local income tax returns being filed. such legislative proposals.
Each of AB's non-U.S. corporate subsidiaries generally is subject to taxes in the foreign jurisdiction where it is located. If our business increasingly operates in countries other than the U.S., AB’sor if there are changes in tax law or rates of taxation in foreign jurisdictions where our corporate subsidiaries operate, AB's effective tax rate will increase as our international subsidiaries are subject to corporate taxes in the jurisdictions where they are located.

In order to preserve AB’s status as a private partnership for federal income tax purposes, AB Units must not be considered publicly traded. If such units were to be considered readily tradable, AB would be subject to federal and state corporate income tax on its net income. Furthermore, as noted above, should AB enter into a substantial new line of business, AB Holding, by virtue of its

ownership of AB, would lose its status as a grandfathered PTP and would become subject to corporate income tax as set forth above. If AB and AB Holding were to become subject to corporate income tax as set forth above, their net income and quarterly distributions to Unitholders would be materially reduced. For information about the significant restrictions on transfer of AB Units, see the risk factor immediately above.

could increase.
If pursuant to the Bipartisan Budget Act of 2015 ("2015 Act"), any audit by the Internal Revenue Service ("IRS") of our income tax returns for any of our taxable years beginning after December 31, 2017 results in any adjustments, the IRS may collect any resulting taxes, including any applicable penalties and interest, directly from us, in which case our net income and the cash available for quarterly Unitholder distributions may be substantially reduced.

Although the IRS, under current law, generally determines tax adjustments at the partnership level when it audits the income tax return of a partnership, the IRS, with respect to taxable years beginning on or before December 31, 2017, is required to collect any additional taxes, interest and penalties from the partnership's individual partners.  The 2015 Act modifies this procedure for audits of a partnership’sFor taxable years beginning after December 31, 2017, a "partnership representative" that we designate (a “Partnership Representative”) will have the sole authority to act on our behalf for purposes of, among other things, IRS audits and if a partnership meets certain requirementsrelated proceedings (and any similar state or local audits and makes a proper election, forproceedings). Any actions taken by us or by the Partnership Representative on our behalf in connection with such audits or proceedings will be binding on us and our Unitholders.
For an audit of a partnership’spartnership's taxable years beginning before January 1, 2018. We may choose to make suchafter December 31, 2017, the IRS, absent an election if we receive a written notice of selection for examination for an eligible taxableby the partnership to the contrary (see discussion below), generally determines adjustments at the partnership level in the year or if we file, on or after January 1, 2018, an administrative adjustment request for an eligible taxable year and otherwise qualify to make such an election.

in which the audit is resolved.
Generally, we will have the ability to collect any resulting tax liability (and any related interest and penalties) from our Unitholders in accordance with their percentage interests during the year under audit, but there can be no assurance that we will elect to do so or be able to do so under all circumstances. If we do not collect such tax liability from our Unitholders in accordance with their percentage interests in the tax year under audit, our net income and the available cash for quarterly distributions to current Unitholders may be substantially reduced. Accordingly, our current Unitholders may bear some or all of the tax liability resulting from such audit adjustment, even if such Unitholders did not own Units during the tax year under audit. In particular, as a publicly traded partnership,with respect to AB Holding, our Partnership Representative (as defined below) may, in certain instances, request that any “imputed underpayment”under-payment” resulting from an audit be adjusted by amounts of certain of our passive losses. If we successfully make such a request, we would have to reduce suspended passive loss carryovers in a manner which is binding on the partners.

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In August and December, 2018, the IRS issued final regulations providing rules relating to the operation of the partnership audit rules (the “Final Regulations”).  Pursuant to the 2015 Act and the Final Regulations,addition, for taxable years beginning after December 31, 2017, we will bemay, but are not required to, designate a partner, or other person, with a substantial presence in the United States as the partnership representative (“Partnership Representative”) and we will no longer have a “tax matters partner.” The Partnership Representative will have the sole authority to act on our behalf for purposes of, among other things, U.S. federal income tax audits and judicial review of administrative adjustments by the IRS. If we do not make such a designation, the IRS can select any person as the Partnership Representative. Any actions taken by us or by the Partnership Representative on our behalf with respect to, among other things, U.S. federal income tax audits and judicial review of administrative adjustments by the IRS, will be binding on us and our unitholders.

In addition, the Final Regulations clarified the procedure under which a partnership may electan election to require its unitholdersour Unitholders to take into account on their income tax returns an audit adjustment made to the partnership’sour income tax items.  We may, but are not required to, make suchitems, also known as a “push-out” election. In addition,This may also require Unitholders to provide certain information to us (possibly including information about the beneficial owners of our Unitholders). Also, a partnership that is a partner of another partnership (such as AB Holding with respect to AB) may elect to have its unitholders take an audit adjustment of the lower-tier partnership into account (i.e., the upper-tier partnership may push adjustments received from the lower-tier partnership through to the partners of the upper-tier partnership). The upper-tier partnership must timely complete the “push-out” of the adjustment in order for it to be effective. Under the Final Regulations, such election must be made by the extended due date for the return for the adjustment year of the audited partnership, regardless of whether the audited partnership is required to file a return for the adjustment year or timely files a request for an extension for its return.  The Final Regulations set forth a number ofThere are several requirements to make a “push-out” election and we may be unable or unwilling to comply with such requirements. If we do not make a “push-out” election, we would be required to pay any tax resulting from the adjustments to our income tax items, and the cash available for distribution to unitholders would be substantially reduced.

Non-U.S. unitholders may be subject to a 10% withholding tax on the sale of their AB Units or AB Holding Units, which could reduce the value of such Units.

as well as on distributions, and we may be liable for any under-withholding.
Gain or loss from the sale or exchange of a partnership units after November 27, 2017unit by a non-U.S. unitholder areis treated as effectively connected with a U.S. trade or business and is subject to U.S. federal income tax to the extent that the non-U.S. unitholder would have had effectively connected gain or loss on a hypothetical sale by the partnership of all of its assets at fair market value as of the date of the sale or exchange of the partnership units. The Tax Cuts and Jobs Act also imposed certain withholding requirements for the sale of partnership units by a non-U.S. unitholder and authorized the IRS to issue regulations to carry out the withholding rules in the case of publicly traded partnerships.  In December 2017, the IRS issued a notice suspending the application of these new withholding rules to the

disposition of publicly traded partnership units until the IRS issued related guidance. In May 2019, the IRS issued proposed regulations ("Proposed Regulations") that would, if enacted, end the suspension of withholding rules with respect to the disposition of units in publicly traded partnerships by non-U.S. unitholders. Taxpayers are permitted to rely on the suspension provided by the earlier notice until finalized regulations are enacted, which the IRS intends to to be 60 days after the date that any such regulations are finalized. We cannot predict when or if the IRS will finalize the Proposed Regulations or release other guidance or what the finalized regulations or other guidance will indicate. If the Proposed Regulations are finalized and enacted in their current form, they generally would subject publicly traded partnerships to the same rules as other partnerships, in which case we would be subject to two different withholding regimes. Under the first regime, the recipientfurtherance of the units being transferred, or the broker through which such transferforegoing, a transferee of a partnership unit is effected, generally will be required to withhold a tax equal to 10% of the amount realized on any transfer of such a partnership unit unless an exception applies.
Distributions by a PTP to a non-U.S. unitholder also are subject to U.S. withholding tax if the PTP has effectively connected gross income, gain or loss.
A transferee is not required to withhold tax if it relies on a certification issued by the transferring unitholder, unlesstransferor or the transferring unitholder provides the recipient unitholder (or the broker, as applicable) with either proper documentation provingunderlying partnership establishing that the transferring unitholderan exception to withholding applies. If a transferee of AB Units is not a nonresident alien individual or foreign corporation, or with certain other statements or certifications described in the Proposed Regulations that limit or relieve the recipient unitholder’s (or the broker's, as applicable) withholding obligation. Under the second regime, if the recipient unitholder (or the broker, as applicable) failsrequired to withhold and failed to properly withhold, then we generallydo so, AB would be obligatedrequired to deduct and withhold fromon distributions to the recipient unitholder a tax in an amount equaltransferee to the amount the transferring unitholder (or thesatisfy that liability.
A broker as applicable) failedis not required to withhold (plus interest). Whetheron the transfer of an interest in a PTP or not these withholding rules apply does not affect the characterization of gain or loss from the sale or exchange of partnership unitson a distribution by a non-U.S. unitholder as effectively connected withPTP if the PTP certifies that the "10% exception" applies. This exception applies if, either (1) the PTP was not engaged in a U.S. trade or business.business during a specified time period, or (2) upon a hypothetical sale of the PTP's assets at fair market value, (i) the amount of net gain that would have been effectively connected with the conduct of a trade or business within the U.S. would be less than 10% of the total net gain, or (ii) no gain would have been effectively connected with the conduct of a trade or business in the U.S.
To make this certification, the PTP must issue a "qualified notice" indicating that it qualifies for this exception, which we have done and intend to continue to do. The qualified notice must state the amount of a distribution that is attributable to each type of income group specified in the Treasury Regulations. The PTP must post each qualified notice on its primary public website (and keep it accessible for 10 years) and deliver it to any registered holder that is a nominee. A broker may not rely on such a certification if it has actual knowledge that the certification is incorrect or unreliable.
As a PTP, beginning on January 1, 2023, AB Holding may be liable for any under-withholding by a broker that relies on a qualified notice for which we failed to make a reasonable estimate of the amounts required for determining the applicability of the 10% exception.
28AllianceBernstein
Table of Contents
Part I
Item 1B.Unresolved Staff Comments

Neither AB nor AB Holding has unresolved comments from the staff of the SEC to report.


Item 2.Properties

Our principal executive officesheadquarters is located at 501 Commerce Street, Nashville, Tennessee. We occupy 218,976 square feet of space at this location under a 15-year lease agreement that commenced in the fourth quarter of 2020.
We lease space at our other principal location, 1345 Avenue of the Americas, New York, New York are occupied pursuant to a lease expiring in 2024. At this location, we currently lease 999,963 square feet of space, within which we currently occupy approximately 523,373512,284 square feet of space and have sub-let (or are seeking to sub-let) approximately 476,590 square feet of space. We also leased space at one other location in New York City, which expired on December 31, 2019.
In addition, we lease approximately 229,147 square feet of space at One North Lexington, White Plains, New York under a lease expiring in 2021. At this location, we currently occupy approximately 55,921 square feet of space and have sub-let (or are seeking to sub-let) approximately 173,226487,679 square feet of space.

WeAlso, we entered into a 20-year lease agreement in New York, New York, at 66 Hudson Boulevard, for 190,000165,608 square feet that is expected to commence in 2024.

We entered into short-term leases for office space in Nashville, Tennessee during the construction of our new corporate headquarters at 501 Commerce Street, which we will vacate upon completion of 501 Commerce Street.

We entered into a 15-year lease agreement in Nashville, Tennessee, at 501 Commerce Street, for 218,976 square feet that is expected to commence in July 2020.
We also lease 50,792 square feet of space in San Antonio, Texas under a lease expiring April 30, 2029 with options to extend through 2039. 
in 2029. 
In addition, we lease less significantmore modest amounts of space in 23 other cities in the United States.
Our subsidiaries lease space in 2830 cities outside the United States, the most significant of which areis a lease in London, England, under a lease expiring in 2022,2031, and in Hong Kong, China, under a lease expiring in 2027.2024. In London we currently lease 65,488 square feet of space, within which we currently occupy approximately 54,746 square feet of space and have sub-let approximately 10,74260,732 square feet of space. In Hong Kong, we currently lease and occupy 35,878 square feet of space.

Item 3.Legal Proceedings

With respect to all significant litigation matters, we consider the likelihood of a negative outcome. If we determine the likelihood of a negative outcome is probable and the amount of the loss can be reasonably estimated, we record an estimated loss for the expected outcome of the litigation. If the likelihood of a negative outcome is reasonably possible and we are able to determine an estimate of the possible loss or range of loss in excess of amounts already accrued, if any, we disclose that fact together with the estimate of the possible loss or range of loss. However, it is often difficult to predict the outcome or estimate a possible loss or range of loss because litigation is subject to inherent uncertainties, particularly when plaintiffs allege substantial or indeterminate damages. Such is also the case when the litigation is in its early stages or when the litigation is highly complex or broad in scope. In these cases, we disclose that we are unable to predict the outcome or estimate a possible loss or range of loss.

On December 14, 2022, four individual participants in the Profit Sharing Plan for Employees of AB (the "AB Profit Sharing Plan") filed a class action complaint (the "Complaint") in the U.S. District Court for the Southern District of New York against AB, current and former members of the Compensation and Workplace Practices Committee of the Board of Directors, and the Investment and Administrative Committees under the AB Profit Sharing Plan. Plaintiffs, who seek to represent a class of all participants in the AB Profit Sharing Plan from December 14, 2016 to the present, allege that defendants violated their fiduciary duties and engaged in prohibited transactions under ERISA by including proprietary collective investment trusts as investment options offered in the AB Profit Sharing Plan. The Complaint seeks unspecified damages, disgorgement and other equitable relief. AB is prepared to defend itself vigorously against these claims. While the outcome of this matter currently is not determinable given the matter remains in its early stages, we do not believe this litigation will have a material adverse effect on our results of operations, financial condition or liquidity.
AB may be involved in various other matters, including regulatory inquiries, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that we could incur losses pertaining to these matters, but we cannot currently estimate any such losses.

Management, after consultation with legal counsel, currently believes that the outcome of any individual matter that is pending or threatened, or all of them combined, will not have a material adverse effect on our results of operations, financial condition or liquidity. However, any inquiry, proceeding or litigation has an element of uncertainty; management cannot determine whether further developments relating to any individual matter that is pending or threatened, or all of them combined, will have a material adverse effect on our results of operation, financial condition or liquidity in any future reporting period.

Item 4.Mine Safety Disclosures

Not applicable.

PART II
2022 Annual Report29

Table of Contents
Part II
Item 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market for AB Holding Units and AB Units; Cash Distributions

AB Holding Units are listed on the NYSE and trade publicly under the ticker symbol “AB.”“AB". There is no established public trading market for AB Units, which are subject to significant restrictions on transfer. For information about these transfer restrictions, see “Structure-related Risks” in Item 1A.

AB Holding’s principal source of income and cash flow is attributable to its limited partnership interests in AB.

Each of AB Holding and AB distributes on a quarterly basis all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement and the AB Partnership Agreement, respectively, to its Unitholders and the General Partner. For additional information concerning distribution of Available Cash Flow by AB Holding, see Note 2 to AB Holding’s financial statements in Item 8. For additional information concerning distribution of Available Cash Flow by AB, see Note 2 to AB’s consolidated financial statements in Item 8.

On December 31, 2019, the30, 2022 (the last trading day during 2019,of the year), the closing price of an AB Holding Unit on the NYSE was $30.26$34.37 per Unit. On December 31, 2019,2022, there were (i) 941893 AB Holding Unitholders of record for approximately 82,000116,000 beneficial owners, and (ii) 375368 AB Unitholders of record (we do not believe there are substantial additional beneficial owners).

Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities

We did not engage in any unregistered sales of our securities during the years ended December 31, 2019, 20182022, 2021 and 2017.

2020, except as previously disclosed in a Current Report on Form 8-K dated July 1, 2022.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Each quarter, since the third quarter of 2011, AB has implemented plansconsiders whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Exchange Act. TheWe did not, however, adopt a plan adopted during the fourth quarter of 2019 expired at the close of business on February 11, 2020.2022. AB may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under the firm’s incentive compensation award program and for other corporate purposes. For additional information about Rule 10b5-1 plans, see “Units Outstanding” in Item 7.


30AllianceBernstein
Table of Contents
Part II
AB Holding Units bought by us or one of our affiliates during the fourth quarter of 20192022 are as follows:

Issuer Purchases of Equity Securities
 
Total
Number of
AB Holding
Units
Purchased
 
Average
Price Paid
Per AB
Holding Unit,
net of
Commissions
 
Total
Number of
AB Holding
Units
Purchased as
Part of
Publicly
Announced
Plans or
Programs
 
Maximum
Number (or
Approximate
Dollar Value)
of AB
Holding
Units that
May Yet Be
Purchased
Under the
Plans or
Programs
Period       
10/1/19-10/31/19(1)(2)
264,663
 $28.34
 —
 —
11/1/19-11/30/19(1)(2)
42,800
 29.00
 —
 —
12/1/19-12/31/19(1)(2)
2,821,051
 28.98
 —
 —
Total3,128,514
 $28.93
 —
 —

(1)
During the fourth quarter of 2019, we purchased 2,648,758 AB Holding Units from employees to allow them to fulfill statutory withholding tax requirements at the time of distribution of long-term incentive compensation awards.
(2)
During the fourth quarterIssuer Purchases of 2019, we purchased 479,756 AB Holding Units on the open market pursuant to a Rule 10b5-1 plan to help fund anticipated obligations under our incentive compensation award program.Equity Securities

PeriodTotal
Number of
AB Holding
Units
Purchased		Average
Price Paid
Per AB
Holding Unit,
net of
Commissions		Total
Number of
AB Holding
Units
Purchased as
Part of
Publicly
Announced
Plans or
Programs		Maximum
Number (or
Approximate
Dollar Value)
of AB
Holding
Units that
May Yet Be
Purchased
Under the
Plans or
Programs
10/1/22-10/31/22— $— — —
11/1/22-11/30/22— — — —
12/1/22-12/31/22(1)
2,558,363 40.70 — —
Total2,558,363 $40.70 — —
(1)During the fourth quarter of 2022, we purchased 2,558,363 AB Holding Units from employees to allow them to fulfill statutory withholding tax requirements at the time of distribution of long-term incentive compensation awards.
Neither we nor our affiliates bought any AB Units bought by us or one of our affiliates during the fourth quarter of 2019 are as follows:2022.

Issuer Purchases of Equity Securities
 
Total Number
of
AB
Units
Purchased
 
Average
Price Paid
Per
AB
Unit, net of
Commissions
 
Total
Number of
AB
Units Purchased as
Part of
Publicly
Announced
Plans or
Programs
 
Maximum
Number (or
Approximate
Dollar Value)
of AB
Units that
May Yet Be
Purchased
Under the
Plans or
Programs
Period       
10/1/19-10/31/19—
 —
 —
 —
11/1/19-11/30/19—
 —
 —
 —
12/1/19-12/31/19(1)
2,800
 28.85
 —
 —
Total2,800
 $28.85
 —
 —

(1)2022 Annual Report
During December 2019, we purchased 2,800 AB Units in a private transaction.31


Table of Contents
Part II
Item 6.Selected Financial Data [Reserved]

AllianceBernstein Holding L.P.

The follow selected financial data is derived from the consolidated financial statements of AllianceBernstein Holding L.P. and provides summary historical financial information for the periods ended and as of the dates indicated:
 Years Ended December 31,
 2019 2018 2017 2016 2015
 (in thousands, except per unit amounts)
Income statement data: 
Equity in net income attributable to AB Unitholders$266,292
 $270,647
 $232,393
 $239,389
 $210,084
Income taxes27,729
 28,250
 24,971
 22,803
 24,320
Net income$238,563
 $242,397
 $207,422
 $216,586
 $185,764
Basic net income per unit$2.49
 $2.50
 $2.19
 $2.24
 $1.87
Diluted net income per unit$2.49
 $2.50
 $2.19
 $2.23
 $1.86
Cash distributions per unit(1)
$2.53
 $2.68
 $2.30
 $1.92
 $1.86
Balance sheet data at period end: 
  
  
  
  
Total assets$1,554,264
 $1,490,701
 $1,544,704
 $1,540,508
 $1,576,120
Partners’ capital$1,552,538
 $1,490,057
 $1,543,550
 $1,539,889
 $1,575,846
________________________
(1)
32		AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement, to its Unitholders; for all years presented, the cash distributions per unit reflect the impact of AB’s non-GAAP adjustments.


AllianceBernstein L.P.
Selected Consolidated Financial Data
 Years Ended December 31,
 2019 2018 2017 2016 2015
 (in thousands, except per unit amounts and unless otherwise indicated)
INCOME STATEMENT DATA: 
Revenues:         
Investment advisory and services fees$2,472,044
 $2,362,211
 $2,201,305
 $1,933,471
 $1,973,837
Bernstein research services407,911
 439,432
 449,919
 479,875
 493,463
Distribution revenues455,043
 418,562
 412,063
 384,405
 427,156
Dividend and interest income104,421
 98,226
 71,162
 46,939
 24,872
Investment gains (losses)38,659
 2,653
 92,102
 93,353
 3,551
Other revenues97,559
 98,676
 97,135
 99,859
 101,169
Total revenues3,575,637
 3,419,760
 3,323,686
 3,037,902
 3,024,048
Less: interest expense57,205
 52,399
 25,165
 9,123
 3,321
Net revenues3,518,432
 3,367,361
 3,298,521
 3,028,779
 3,020,727
          
Expenses: 
  
      
Employee compensation and benefits:         
Employee compensation and benefits1,442,783
 1,378,811
 1,313,469
 1,229,721
 1,267,926
Promotion and servicing: 
  
    
  
Distribution-related payments487,965
 427,186
 411,467
 363,603
 384,425
Amortization of deferred sales commissions15,029
 21,343
 31,886
 41,066
 49,145
Trade execution, marketing, T&E and other219,860
 222,630
 213,275
 216,542
 232,023
General and administrative: 
  
  
  
  
General and administrative484,750
 448,996
 481,488
 426,147
 431,635
Real estate charges3,324
 7,160
 36,669
 17,704
 998
Contingent payment arrangements(510) (2,219) 267
 (20,245) (5,441)
Interest on borrowings13,035
 10,359
 8,194
 4,765
 3,119
Amortization of intangible assets28,759
 27,781
 27,896
 26,311
 25,798
Total expenses2,694,995
 2,542,047
 2,524,611
 2,305,614
 2,389,628
Operating income823,437
 825,314
 773,910
 723,165
 631,099
Income taxes41,754
 45,816
 53,110
 28,319
 44,797
Net income781,683
 779,498
 720,800
 694,846
 586,302
Net income of consolidated entities attributable to non-controlling interests29,641
 21,910
 58,397
 21,488
 6,375
Net income attributable to AB Unitholders$752,042
 $757,588
 $662,403
 $673,358
 $579,927
Basic net income per AB Unit$2.78
 $2.79
 $2.46
 $2.48
 $2.11
Diluted net income per AB Unit$2.78
 $2.78
 $2.45
 $2.47
 $2.10
Operating margin(1)
22.6% 23.9% 21.7% 23.2% 20.7%
CASH DISTRIBUTIONS PER AB UNIT(2)
$2.82
 $2.96
 $2.57
 $2.15
 $2.11

 Years Ended December 31,
 2019 2018 2017 2016 2015
BALANCE SHEET DATA AT PERIOD END: 
  
  
  
  
Total assets$8,706,092
 $8,789,098
 $9,282,734
 $8,741,158
 $7,433,721
Debt$560,000
 $546,267
 $565,745
 $512,970
 $581,700
Total capital$4,017,101
 $3,916,209
 $4,063,304
 $4,068,189
 $4,017,221
ASSETS UNDER MANAGEMENT AT PERIOD END (in millions)$622,915
 $516,353
 $554,491
 $480,201
 $467,440
AllianceBernstein
(1)
Table of Contents
Operating income excluding net income (loss) attributable to non-controlling interests as a percentage of net revenues.
(2)
Cash distributions per AB Unit reflect the impact of AB's non-GAAP adjustments. Refer to Item 7 for additional information concerning our non-GAAP adjustments.


Part II
Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Percentage change figures are calculated using assets under management roundedImpact of COVID-19
AB continues to actively monitor COVID-19 developments and their impact on our employees, business and operations. The aggregate extent to which COVID-19, including its impact on the nearest millionglobal economy, affects AB’s business, liquidity, results of operations and financial statement amounts roundedcondition, will depend on future COVID-19 developments that are highly uncertain, including the scope and duration of COVID-19 and any recovery period, the emergence, spread and seriousness of COVID-19 variants, the continuing prevalence of severe, unconstrained and/or escalating rates of infection and hospitalization in various countries and regions, the availability, adoption and efficacy of treatments and vaccines, and future actions taken by governmental authorities, central banks and other parties in response to COVID-19. Further, we have benefited from certain of our adjusted operating expenses declining significantly due to COVID-19, generally owing to depressed levels of travel and entertainment and in-person client meetings, during both 2020 and 2021. While these costs started to return in 2022, results in 2022 did not reach historical levels; the nearest thousand.prior-year savings are not indicative of our future performance. Additionally, as most of our workforce continues working in a hybrid model, which includes the option of two remote days each week, we are mindful of increased risk related to cybersecurity, which could significantly disrupt our business functions.

Executive Overview(1)
Our total assets under management ("AUM") as of December 31, 20192022 were $622.9$646.4 billion, up $106.5down $132.2 billion, or 20.6%17.0%, during 2019.2022. The increasedecrease was driven primarily by market appreciationdepreciation of $82.2$140.4 billion and net outflows of $3.6 billion (reflecting Retail net outflows of $11.6 billion, offset by Institutional net inflows of $6.3 billion and Private Wealth Management net inflows of $1.7 billion), offset by the addition of $12.2 billion due to the acquisition of CarVal Investors L.P. ("CarVal") in the third quarter. AXA S.A.("AXA") redeemed approximately $4.5 billion of low-fee fixed income and equity mandates in 2022. Going forward, any AXA-related redemptions or new sales (reflecting, for example, recent commitments by AXA to certain of our private alternative strategies) will be considered as part of our normal course of business.
Institutional AUM decreased $39.8 billion, or 11.8%, to $297.3 billion during 2022, primarily due to market depreciation of $57.8 billion, partially offset by the addition of $12.2 billion due to the acquisition of CarVal and net inflows of $25.2 billion (mainly due to Retail net inflows of $23.8 billion).
Institutional AUM increased $36.4 billion, or 14.8%, to $282.7 billion during 2019, due to market appreciation of $34.0 billion and net inflows of $2.4$6.3 billion. Gross sales decreased $9.0increased $0.5 billion, from $26.1$31.7 billion in 20182021 to $17.1$32.2 billion in 2019.2022. Redemptions and terminations decreased $18.1$10.1 billion, from $30.1$23.4 billion in 20182021 to $12.0$13.3 billion in 2019. The declines in both sales and redemptions in 2019 were primarily driven by significant one-time fundings and terminations related to low-fee Customized Retirement Strategies, which occurred in 2018.2022. Institutional net inflows included $2.3 billion of AXA redemptions.
Retail AUM increased $58.4decreased $77.0 billion, or 32.3%24.1%, to $239.2$242.9 billion during 2019,2022, primarily due to market appreciationdepreciation of $34.5$65.5 billion and net inflowsoutflows of $23.8$11.6 billion. Net outflows included $2.2 billion of AXA redemptions. Gross sales increased $21.1decreased $34.1 billion, from $54.2$100.0 billion in 20182021 to $75.3$65.9 billion in 2019.2022. Redemptions and terminations decreased $2.5increased $1.2 billion, from $46.5$65.1 billion in 20182021 to $44.0$66.3 billion in 2019.2022.
Private Wealth Management AUM increased $11.7decreased $15.4 billion, or 13.2%12.6%, to $101.0$106.2 billion during 2019, primarily2022, due to market appreciationdepreciation of $13.7$17.1 billion, offset by net outflowsinflows of $1.0$1.7 billion. Gross sales decreased $2.2$0.8 billion, from $13.5$18.3 billion in 20182021 to $11.3$17.5 billion in 2019.2022. Redemptions and terminations increased $1.4$0.5 billion, from $11.0$15.3 billion in 20182021 to $12.4$15.8 billion in 2019.2022.
Bernstein Research Services ("BRS") revenue decreased $31.5$35.7 million, or 7.2%7.9%, in 2019.2022. The decrease was driven by significantly lower customer trading activity in Europe and Asia due to lower global customer activitylocal market conditions. In the fourth quarter of 2022, AB and trading commissions, partially offset bySociété Générale (EURONEXT: SCGLY, “SocGen”), a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the inclusion of revenues fromBRS business has been classified as held for sale. For further discussion, see Note 24 Acquisitions and Divestitures to our acquisition of Autonomous Research LLP ("consolidated financial statements in Item 8Autonomous"). Our acquisition of Autonomous closed on April 1, 2019.
Our 20192022 net revenues of $3.5$4.1 billion increased $151.1decreased $387.3 million, or 4.5%8.7%, compared to net revenues of $4.4 billion in the prior year's net revenues.year. The most significant contributors to the increase were higherdecrease was primarily driven by lower base advisory fees of $128.4$123.6 million, higher investment losses of $101.8 million, lower performance-based fees of $99.9 million, lower distribution revenues of $36.5$45.0 million, and higher investment gains revenue of $36.0 million, offset by lower Bernstein Research Services revenue of $31.5$35.7 million and lower performance-basedshareholder servicing fees of $18.5$3.6 million, partially offset by higher net dividend and interest income of $21.6 million. Our operating expenses of $2.7$3.2 billion increased $152.9$14.1 million, or 6.0%0.4%, compared to the prior year's expenses.year. The increase was primarily was due to higher employee compensationgeneral and benefitsadministrative expenses of $64.0$86.0 million, higher amortization of intangible assets of $20.9 million, higher interest on borrowings of $12.8 million and higher contingent payment arrangements of $3.9 million, offset by lower promotion and servicing expenses of $51.7$60.1 million and higher generallower employee compensation and administrativebenefits expenses (including real estate charges) of $31.9$49.4 million. Our operating income decreased $1.9$401.4 million, or 0.2%33.0%, to $823.4 million$0.8 billion from $825.3 million$1.2 billion in 20182021 and our operating margin decreased to 21.5% in 2022 from 23.9%27.3% in 20182021.
1Percentage change figures are calculated using assets under management rounded to 22.6% in 2019.the nearest million, while financial statement amounts are rounded to the nearest hundred thousand.
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Market Environment
EquityWhile equity markets finishedwere positive in 2019, keyed by reductionthe fourth quarter of trade tensions between the U.S. and China, ongoing stimulus from Central Bank fiscal policies and the resilient U.S. economy. Specifically,2022, with the S&P 500 theIndex ("S&P") and Dow Jones Industrial Average andboth registering gains, both indexes declined for the full year ended December 31, 2022. The S&P declined 18.1% for the full year, while the Nasdaq each rallied to finishdeclined by 33.1% and was down 8.7% in December. Inflation remains the year with record high point gains.dominant issue for U.S. markets, fueling consumer concerns of a potential recession. While the U.S. consumer has been largely resilient so far, higher interest rates have weighed on home building, trade and business investments. Despite a downturn in manufacturing and businesses generally being reluctant to invest, consumer spending has remained at a healthy level andsigns that the labor market has remained strong, with the unemployment rate at a 50-year low. Three rate cuts by the Federal Reserve during the year and new repurchase programs helped reduce stresses in short term funding markets and unwind the inverted yield curve. Inflation continues to approximate the Federal Reserve’s target and, barring a material deterioration in the U.S. economy,inflation are easing, the Federal Reserve has maintained its aggressive stance on monetary policy. At its December meeting, the Federal Reserve increased interest rates and indicated a pause inthat, while future rate cuts.increases are likely to be less severe, they continue to be needed.

Also, the improved global economic data and alleviated trade tensions sparked a rally in international equities and a weakening of the U.S. dollar. In the U.K., while the economic consequencesnew prime minister reversed the tax cuts introduced by his predecessor and added some tax increases. These actions calmed the market and reduced the pressure on mortgage rates. However, monetary tightening, steep energy prices and supply-side constraints from Brexit create a challenging outlook for consumers.
In China, key watch-points include the property market and overall growth in the economy. The Chinese government has announced new support measures, but it is unclear whether these measures will be sufficient to re-create historical growth patterns.
Relationship with EQH and its Subsidiaries
EQH (our parent company) and its subsidiaries are our largest client. EQH is collaborating with AB in order to improve the risk-adjusted yield for the General Accounts of Brexit are stillEQH's insurance subsidiaries by investing additional assets at AB, including the utilization of AB's higher-fee, longer-duration alternative offerings. Equitable Financial Life Insurance Company, a subsidiary of EQH ("Equitable Financial"), has agreed to provide $10 billion in permanent capital2 to build out AB's private illiquid offerings, including private alternatives and private placements. Deployment of this capital commitment is more than 50% completed and is expected to continue over approximately the next two years. We expect this anticipated capital from Equitable Financial will continue to accelerate both organic and inorganic growth in our private alternatives business, allowing us to continue to deliver for our clients, employees, unitholders and other stakeholders. For example, included in this $10 billion commitment by EQH is $750 million in capital to be determined, the results of the special election held in December 2019 boosted the U.K. pound and the U.K. equity market. The era of negative rates in some European jurisdictions may be ending, and different approaches to improving liquidity, which may inure to the benefit of the banking system, are being considered. In Asia, markets remained relatively weak, and uncertainty surrounds the continued demonstrations in Hong Kong. China is balancing the short-term need for economic stimulus against the medium-term need to reduce debt levels in the Chinese economy. This analysis by the Chinese will likely result in modest stimulus to boost the Chinese economy.

MiFID II
In Europe, MiFID II, which became effective on January 3, 2018, has made significant modifications to the manner in which European broker-dealers can be compensated for research. These modifications are believed to have significantly reduced the

overall research spend by European buy-side firms, which has decreased the revenues we derive from our European clients. Our European clients may continue to reduce their research budgets, which could result in a significant decline in our sell-side revenues.

Also, while MiFID II is not applicable to firms operating outside of Europe, competitive and client pressures may force buy-side firms operating outside of Europe to pay for research from their own resources instead ofdeployed through bundled trading commissions. If that occurs, we would expect that research budgets from those clients will decrease further, which could result in an additional significant decline in our sell-side revenues. Additionally, these competitive and client pressures may result in our buy-side operation paying for research out of our own resources instead of through bundled trading commissions, which could increase our firm's expenses and decrease our operating income.

The ultimate impact of MiFID II on payments for research globally remains uncertain.
Equitable Holdings IPO
During the second quarter of 2018, AXA S.A. ("AXA") completed the sale of a minority stake in Equitable Holdings, Inc. (“EQH”) through an initial public offering ("IPO"). Since then, AXA has completed additional offerings and taken other steps, most recently during the fourth quarter of 2019. As a result, AXA owned less than 10% of the outstanding common stock of EQH as of December 31, 2019.

While we cannot at this time predict the eventual impact on AB of this transaction, such impact could include a reduction in the support AXA has provided to AB in the past with respect to AB's investment management business, resulting in a decrease in our revenues and ability to initiate new investment services. Also, AB relies on AXA, including its subsidiary, AXA Business Services, for a number of significant services and AB has benefited from its affiliation with AXA in certain common vendor relationships. Some of these arrangements are expected to change with possible negative financial implications for AB.

AXA has notified us of their intent to terminate approximately $14 billion of fixed income investment mandates during the first half of 2020. The revenue we earn from the management of these assets is not significant.CarVal.
Relocation Strategy
On May 2, 2018,As previously announced, we announced that we would establishhave established our corporate headquarters in and relocate approximately 1,050 jobs located in the New York metro area to, Nashville, TN. Subsequently, on January 14, 2020, we announced our plans to relocate an additional 200 jobs to Nashville thereby increasing the total relocated jobs to 1,250. The decision to add the additional jobs was the result of the growth in our business, select investments we are making, and the insourcing of roles typically performed by consultants.TN, at 501 Commerce Street. Our Nashville headquarters will househouses Finance, IT, Operations, Legal, Compliance, Internal Audit, Human Capital, and Sales and Marketing.Marketing, and at year-end 2022 we had 1,079 employees in Nashville. We have been actively relocating jobs and expect this transition to take several years.reach a total of 1,250 employees in Nashville by the end of 2024. We will continue to maintain a principal location in New York City, which will househouses our Portfolio Management, Sell-Side Research and Trading, and New York-based Private Wealth Management businesses.

We believe relocating our corporate headquarters to Nashville will affordaffords us the opportunity to provide an improved quality of life alternative for our employees and enableenables us to attract and recruit new talented employees to a highly desirable location while improving the long-term cost structure of the firm.

During the transition period, which began in 2018 and is expected to continue through 2024, we currently estimate that we will incur transition costs of approximately $155between $145 million to $165$155 million. These costs include employee relocation, severance, recruitment, and overlapping compensation and occupancy costs. Over this same period, we expect to realize total expense savings of approximately $180between $205 million to $190 million, an amount greater than the total transition costs.$215 million. However, we willdid incur some transition costs before we beginbegan to realize expense savings. WeFor the period beginning in 2018 and ending in the fourth quarter of 2022, we incurred $10$120 million of cumulative transition costs compared to $132 million of cumulative savings. In addition, we incurred $24 million of transition costs in 2018 and approximately $33for the twelve months ended December 31, 2022, compared to $43 million in 2019. With regard to 2019, this compares to estimatedof expense savings, of approximately $16 million, resulting in a $0.06 reduction inan overall net savings of $19 million for the period. In 2022, our net income per unit (("“EPU”EPU") increased $0.07 as a result of our relocation strategy, which compares to the $0.06 EPU increase that occurred in 2019. We currently anticipate a similar EPU reduction in 2020 of approximately $0.06.2021. We also expect to achieve breakeven or a slight accretion in EPU in 2021 and then achieve EPU accretion in each year thereafter.future year. Beginning in 2025, once the transition period has been completed, we estimate ongoing annual expense savings of approximately $75 million to $80 million, which will result from a combination of occupancy and compensation-related savings. Our estimates for both the transition costs and the corresponding expense savings are based on our current assumptions of employee relocation costs, severance, and overlapping compensation and occupancy costs. In addition, our estimates for both the timing of when we incur transition costs and realize the related expense savings are based on our current relocation implementation plan and the timing for execution of each phase. The actual total charges we eventually record, the related expense savings we realize, and the timing and magnitude of EPU impact are expected tomay differ from our current estimates as we implement each phase of our headquarters relocation.


2Permanent capital means investment capital of indefinite duration, which may be withdrawn under certain conditions. Although Equitable Financial has indicated its intention over time to provide this investment capital to AB, which is mutually beneficial to both firms, it has no binding commitment to do so.
34AllianceBernstein
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During October 2018, we signed a lease, which commencescommenced in mid-2020,the fourth quarter of 2020, relating to 218,976 square feet of space at our new Nashville headquarters. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 15 year15-year initial lease term is $134 million.

Although we have presented many of our transition costs and annual expense savings with numerical specificity, and we believe these targets to be reasonable as of the date of this report, the uncertainties surrounding the assumptions we discuss above create a significant risk that these targets may not be achieved. Accordingly, the expenses we actually incur and the savings we actually realize may differ from our targets, particularly if actual events adversely differ from one or more of our key assumptions. The transition costs and expense savings, together with their underlying assumptions, are Forward-Looking Statements and can be affected by any of the factors discussed in “Risk“Risk Factors” and “Cautions“Cautions Regarding Forward-Looking Statements” in this 2022 10-K. We strongly caution investors not to place undue reliance on any of these assumptions or our cost and expense targets. Except as may be required by applicable securities laws, we are not under any obligation, and we expressly disclaim any obligation, to update or alter any assumptions, estimates, financial goals, targets, projections or other related statements that we may make.

Adjusted Operating Margin Target
We previously adopted a goal of increasing our adjusted operating margin to a target of 30% by 2020 (the “2020 Margin Target”), subject to the assumptions, factors and contingencies described as part of the initial disclosure of this target. Our adjusted operating margin for 2019 was 27.5%.
Our AUM and, therefore, our investment advisory revenues, including performance-based fee revenues, are heavily dependent on the level and volatility of the financial markets. Based upon our current revenue and expense projections, we do not believe that achieving the 2020 Margin Target is likely. However, we are taking additional actions to better align our expenses with our expected revenues. We remain committed to achieving an adjusted operating margin of 30% in years subsequent to 2020 and will take continued actions in this regard, subject to prevailing market conditions and the evolution of our business mix.

AB Holding

AB Holding’s principal source of income and cash flow is attributable to its investment in AB Units. The AB Holding financial statements, notes to the financial statements and and management’s discussion and analysis of financial condition and results of operations (“MD&A”) should be read in conjunction with those of AB.

Results of Operations
Years Ended December 31% Change
2022202120202022-212021-20
(in thousands, except per unit amounts)
Net income attributable to AB Unitholders$831,813 $1,148,623 $865,952 (27.6)%32.6 %
Weighted average equity ownership interest36.7 %36.2 %35.6 %
Equity in net income attributable to AB Unitholders$305,504 $416,326 $308,404 (26.6)35.0 
Income taxes31,339 30,483 29,024 2.8 5.0 
Net income of AB Holding$274,165 $385,843 $279,380 (28.9)38.1 
Diluted net income per AB Holding Unit$2.69 $3.88 $2.88 (30.7)34.7 
Distributions per AB Holding Unit (1)
$2.95 $3.90 $2.91 (24.4)34.0 
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands, except per unit amounts)    
Net income attributable to AB Unitholders$752,042
 $757,588
 $662,403
 (0.7)% 14.4%
Weighted average equity ownership interest35.4% 35.7% 35.1%    
Equity in net income attributable to AB Unitholders$266,292
 $270,647
 $232,393
 (1.6) 16.5
Income taxes27,729
 28,250
 24,971
 (1.8) 13.1
Net income of AB Holding$238,563
 $242,397
 $207,422
 (1.6) 16.9
Diluted net income per AB Holding Unit$2.49
 $2.50
 $2.19
 (0.4) 14.2
Distributions per AB Holding Unit (1)
$2.53
 $2.68
 $2.30
 (5.6) 16.5
________________________
(1)(1)Distributions reflect the impact of AB’s non-GAAP adjustments.
Distributions reflect the impact of AB’s non-GAAP adjustments.

AB Holding had net income of $238.6$274.2 million in 20192022 compared to $242.4$385.8 million in 2018,2021, reflecting lower net income attributable to AB Unitholders, and lowerpartially offset by higher weighted average equity ownership interest. AB Holding had net income of $242.4$385.8 million in 20182021 compared to $207.4$279.4 million in 2017,2020, reflecting higher net income attributable to AB Unitholders and higher weighted average equity ownership interest.

AB Holding's partnership gross income is derived from its interest in AB. AB Holding’s income taxes, which reflect a 3.5% federal tax on its partnership gross income from the active conduct of a trade or business, are computed by multiplying certain AB qualifying revenues (primarily U.S. investment advisory fees, brokerage commissions and direct payments for research payments and brokerage commissions)services) by AB Holding’s ownership

interest in AB, multiplied by the 3.5% tax rate. AB Holding’s effective tax rate was 10.4%10.3% in 2019, 10.4%2022, 7.3% in 20182021 and 10.7%9.4% in 2017.2020. See Note 6 to AB Holding’s financial statements in Item 8 for a further description.

As supplemental information, AB provides the performance measures “adjusted net revenues,” “adjusted operating income” and “adjusted operating margin,” which are the principal metrics management uses in evaluating and comparing the period-to-period operating performance of AB. Management principally uses these metrics in evaluating performance because they present a clearer picture of AB's operating performance and allow management to see long-term trends without the distortion primarily caused by long-term incentive compensation-related mark-to-market adjustments, real estate charges (discussed below in Adjusted Operating Income) and other adjustment items. Similarly, management believes that these management operating metrics help investors better understand the underlying trends in AB's results and, accordingly, provide a valuable perspective for investors. Such measures are not based on generally accepted accounting principles (“non-GAAP measures”). These non-GAAP measures are provided in addition to, and not as substitutes for, net revenues, operating income and operating margin, and they may not be comparable to non-GAAP measures presented by other companies. Management uses both GAAP and non-GAAP measures in evaluating the company’s financial performance. The non-GAAP measures alone may pose limitations because they do not include all of AB’s revenues and expenses. Further, adjusted diluted net income per AB Holding Unit is not a liquidity measure and should not be used in place of cash flow measures. See “Management Operating Metrics” in this Item 7.

2022 Annual Report35
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The impact of these adjustments on AB Holding’s net income and diluted net income per AB Holding Unit are as follows:
Years Ended December 31,Years Ended December 31
2019 2018 2017202220212020
(in thousands, except per unit amounts)(in thousands, except per unit amounts)
AB non-GAAP adjustments, before taxes$8,648
 $48,655
 $34,605
AB non-GAAP adjustments, before taxes$75,745 $2,959 $6,393 
AB Income tax benefit (expense) on non-GAAP adjustments1,070
 (1,473) (3,599)
AB Income tax (expense) benefit on non-GAAP adjustmentsAB Income tax (expense) benefit on non-GAAP adjustments(6,395)71 (523)
AB non-GAAP adjustments, after taxes9,718
 47,182
 31,006
AB non-GAAP adjustments, after taxes69,350 3,030 5,870 
AB Holding’s weighted average equity ownership interest in AB35.4% 35.7% 35.1%AB Holding’s weighted average equity ownership interest in AB36.7 %36.2 %35.6 %
Impact on AB Holding’s net income of AB non-GAAP adjustments$3,441
 $16,856
 $10,877
Impact on AB Holding’s net income of AB non-GAAP adjustments$25,468 $1,098 $2,090 
     
Net income - diluted, GAAP basis$238,642
 $242,844
 $208,102
Net income - diluted, GAAP basis$274,167 $385,873 $279,436 
Impact on AB Holding’s net income of AB non-GAAP adjustments3,441
 16,856
 10,877
Impact on AB Holding’s net income of AB non-GAAP adjustments25,468 1,098 2,090 
Adjusted net income - diluted$242,083
 $259,700
 $218,979
Adjusted net income - diluted$299,635 $386,971 $281,526 
     
Diluted net income per AB Holding Unit, GAAP basis$2.49
 $2.50
 $2.19
Diluted net income per AB Holding Unit, GAAP basis$2.69 $3.88 $2.88 
Impact of AB non-GAAP adjustments0.03
 0.17
 0.11
Impact of AB non-GAAP adjustments0.25 0.01 0.03 
Adjusted diluted net income per AB Holding Unit$2.52
 $2.67
 $2.30
Adjusted diluted net income per AB Holding Unit$2.94 $3.89 $2.91 
The degree to which AB’s non-GAAP adjustments impact AB Holding’s net income fluctuates based on AB Holding's ownership percentage in AB.

Tax Legislation

For a discussion of tax legislation, see “Risk Factors - Structure-related Risks” in Item 1A.

Capital Resources and Liquidity

During the year ended December 31, 2019,2022, net cash provided by operating activities was $222.8$362.6 million, compared to $279.3$355.1 million during the corresponding 2018 period. The decrease primarily resulted from lower cash distributions received from AB of $58.6 million. During the year ended December 31, 2018, net cash provided by operating activities was $279.3 million, compared to $202.4 million during the corresponding 20172021 period. The increase primarily resulted from higher cash distributions received from AB of $81.2$9.3 million.

 During the year ended December 31, 2021, net cash provided by operating activities was $355.1 million, compared to $270.0 million during the corresponding 2020 period. The increase primarily resulted from higher cash distributions received from AB of $86.3 million.
During the years ended December 31, 2019, 20182022, 2021 and 2017,2020, net cash used in investing activities was $11.5$1.8 million, $16.6$3.4 million and $20.1$0.1 million, respectively, reflecting investments in AB with proceeds from exercises of compensatory options to buy AB Holding Units.


Units and capital contributions to AB.
During the year ended December 31, 2019,2022, net cash used in financing activities was $211.2$360.8 million, compared to $262.7$351.7 million during the corresponding 20182021 period. The decrease primarilyincrease was due to lower cash distributions to Unitholders of $58.2$3.5 million partially offset by lowerand proceeds from exercise of compensatory options to buy AB Holding Units of $5.1$3.2 million, offset by lower capital contributions from AB of $2.3 million. During the year ended December 31, 2018,2021, net cash used in financing activities was $262.7$351.7 million, compared to $182.3$269.9 million during the corresponding 20172020 period. The increase primarily was due to higher cash distributions to Unitholders of $78.3$86.6 million, and loweroffset by higher proceeds from exercise of compensatory options to buy AB Holding Units of $3.5$3.3 million.

Management believes that AB Holding will have the resources it needs to meet its financial obligations as a result of the cash flow AB Holding realizes from its investment in AB.

Cash Distributions

AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement, to its Unitholders (including the General Partner). Available Cash Flow typically is the adjusted diluted net income per unit for the quarter multiplied by the number of units outstanding at the end of the quarter. Management anticipates that Available Cash Flow will continue to be based on adjusted diluted net income per unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments made to adjusted net income should not be made with respect to the Available Cash Flow calculation. See Note 2 to AB Holding’s financial statements in Item 8 for a description of Available Cash Flow.

Commitments and Contingencies

For a discussion of commitments and contingencies, see Note 7 to AB Holding’s financial statements in Item 8.

AB

Assets Under Management
Assets under management by distribution channel are as follows: 
 As of December 31,     % Change  
 2019 2018 2017 2019-18 2018-17
 (in billions)      
  
Institutions$282.7
 $246.3
 $269.3
 14.8% (8.5)%
Retail239.2
 180.8
 192.9
 32.3
 (6.3)
Private Wealth Management101.0
 89.3
 92.3
 13.2
 (3.2)
Total$622.9
 $516.4
 $554.5
 20.6
 (6.9)
Assets under management by investment service are as follows:
 As of December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in billions)  
  
Equity       
  
Actively Managed$177.2
 $136.2
 $139.4
 30.1 % (2.3)%
Passively Managed (1)
60.1
 50.2
 54.3
 19.9
 (7.6)
Total Equity237.3
 186.4
 193.7
 27.4
 (3.8)
          
Fixed Income         
Actively Managed         
Taxable258.3
 219.7
 247.9
 17.6
 (11.4)
Tax-exempt47.1
 41.7
 40.4
 13.1
 3.0
 305.4
 261.4
 288.3
 16.9
 (9.4)
Passively Managed (1)
9.3
 9.4
 9.9
 (1.5) (4.8)
Total Fixed Income314.7
 270.8
 298.2
 16.2
 (9.2)
          
Other (2)
         
Actively Managed69.3
 58.3
 61.9
 18.8
 (5.8)
Passively Managed (1)
1.6
 0.9
 0.7
 76.8
 39.7
Total Other70.9
 59.2
 62.6
 19.7
 (5.3)
Total$622.9
 $516.4
 $554.5
 20.6
 (6.9)
          
(1)
Includes index and enhanced index services.
(2)
Includes certain multi-asset solutions and services and certain alternative investments.

Changes in assets under management during 2019 and 2018 are as follows:
 Distribution Channel
 Institutions Retail 
Private
Wealth
Management
 Total
 (in billions)
Balance as of December 31, 2018$246.3
 $180.8
 $89.3
 $516.4
Long-term flows: 
  
  
  
Sales/new accounts17.1
 75.3
 11.3
 103.7
Redemptions/terminations(12.0) (44.0) (12.4) (68.4)
Cash flow/unreinvested dividends(2.7) (7.5) 0.1
 (10.1)
Net long-term inflows (outflows)2.4
 23.8
 (1.0) 25.2
Adjustments(3)
—
 —
 (0.9) (0.9)
Transfers—
 0.1
 (0.1) —
Market appreciation34.0
 34.5
 13.7
 82.2
Net change36.4
 58.4
 11.7
 106.5
Balance as of December 31, 2019$282.7
 $239.2
 $101.0
 $622.9
        
Balance as of December 31, 2017$269.3
 $192.9
 $92.3
 $554.5
Long-term flows:       
Sales/new accounts26.1
 54.2
 13.5
 93.8
Redemptions/terminations(30.1) (46.5) (11.0) (87.6)
Cash flow/unreinvested dividends(6.0) (7.7) (0.6) (14.3)
Net long-term (outflows) inflows(10.0) —
 1.9
 (8.1)
Transfers0.2
 0.2
 (0.4) —
Market depreciation(13.2) (12.3) (4.5) (30.0)
Net change(23.0) (12.1) (3.0) (38.1)
Balance as of December 31, 2018$246.3
 $180.8
 $89.3
 $516.4

 Investment Service
 
Equity
Actively
Managed
 
Equity
Passively
Managed(1)
 
Fixed
Income
Actively
Managed
- Taxable
 
Fixed
Income
Actively
Managed -
Tax-
Exempt
 
Fixed
Income
Passively
Managed(1)
 
Other(2)
 Total
 (in billions)
Balance as of December 31, 2018$136.2
 $50.2
 $219.7
 $41.7
 $9.4
 $59.2
 $516.4
Long-term flows: 
  
  
    
  
  
Sales/new accounts34.7
 0.5
 53.0
 10.0
 0.1
 5.4
 103.7
Redemptions/terminations(26.4) (0.8) (31.5) (6.8) (0.4) (2.5) (68.4)
Cash flow/unreinvested dividends(4.3) (3.8) (2.8) (0.2) (0.6) 1.6
 (10.1)
Net long-term inflows (outflows)4.0
 (4.1) 18.7
 3.0
 (0.9) 4.5
 25.2
Adjustments(3)
—
 —
 (0.4) (0.5) —
 —
 (0.9)
Market appreciation37.0
 14.0
 20.3
 2.9
 0.8
 7.2
 82.2
Net change41.0
 9.9
 38.6
 5.4
 (0.1) 11.7
 106.5
Balance as of December 31, 2019$177.2
 $60.1
 $258.3
 $47.1
 $9.3
 $70.9
 $622.9
              
Balance as of December 31, 2017$139.4
 $54.3
 $247.9
 $40.4
 $9.9
 $62.6
 $554.5
Long-term flows: 
  
  
    
  
  
Sales/new accounts36.7
 4.0
 27.6
 7.9
 0.1
 17.5
 93.8
Redemptions/terminations(22.2) (0.6) (40.8) (6.7) (0.6) (16.7) (87.6)
Cash flow/unreinvested dividends(3.7) (3.6) (6.2) (0.4) 0.2
 (0.6) (14.3)
Net long-term inflows (outflows)10.8
 (0.2) (19.4) 0.8
 (0.3) 0.2
 (8.1)
Market (depreciation) appreciation(14.0) (3.9) (8.8) 0.5
 (0.2) (3.6) (30.0)
Net change(3.2) (4.1) (28.2) 1.3
 (0.5) (3.4) (38.1)
Balance as of December 31, 2018$136.2
 $50.2
 $219.7
 $41.7
 $9.4
 $59.2
 $516.4
(1)
Includes index and enhanced index services.
(2)
Includes certain multi-asset solutions and services and certain alternative investments.
(3)
Approximately $900 million of non-investment management fee earning taxable and tax-exempt money market assets
were removed from assets under management during the second quarter of 2019.


Net long-term inflows (outflows) for actively managed investment services as compared to passively managed investment services during 2019 and 2018 are as follows:
 Years Ended December 31,
 2019 2018
 (in billions)
Actively Managed   
  Equity$4.0
 $10.8
 Fixed Income21.7
 (18.6)
 Other4.0
 (0.1)
 29.7
 (7.9)
Passively Managed 
  
  Equity(4.1) (0.2)
 Fixed Income(0.9) (0.3)
 Other0.5
 0.3
 (4.5) (0.2)
Total net long-term inflows (outflows)$25.2
 $(8.1)

Average assets under management by distribution channel and investment service are as follows:
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in billions)  
  
Distribution Channel:       
  
Institutions$265.4
 $258.1
 $253.8
 2.8 % 1.7 %
Retail212.3
 191.8
 177.5
 10.7
 8.1
Private Wealth Management96.5
 94.3
 86.7
 2.3
 8.8
Total$574.2
 $544.2
 $518.0
 5.5
 5.1
          
Investment Service:         
Equity Actively Managed$158.4
 $146.4
 $125.6
 8.2
 16.6
Equity Passively Managed(1)
56.4
 53.8
 50.8
 4.8
 5.9
Fixed Income Actively Managed – Taxable239.7
 230.3
 236.3
 4.1
 (2.5)
Fixed Income Actively Managed – Tax-exempt44.6
 41.3
 38.8
 8.0
 6.4
Fixed Income Passively Managed(1)
9.4
 9.8
 10.3
 (4.4) (4.3)
Other(2)
65.7
 62.6
 56.2
 5.1
 11.3
Total$574.2
 $544.2
 $518.0
 5.5
 5.1
(1)
Includes index and enhanced index services.
(2)
Includes certain multi-asset solutions and services and certain alternative investments.
During 2019, our Institutional channel average AUM of $265.4 billion increased $7.3 billion, or 2.8%, compared to 2018, primarily due to this AUM increasing $36.4 billion, or 14.8%, to $282.7 billion over the last twelve months. The $36.4 billion increase in AUM resulted from market appreciation of $34.0 billion and net inflows of $2.4 billion. During 2018, our Institutional channel average AUM of $258.1 billion increased $4.3 billion, or 1.7%, compared to 2017; however, this AUM decreased $23.0 billion, or 8.5%, to $246.3 billion during 2018. The $23.0 billion decrease in AUM resulted from market depreciation of $13.2 billion (with $11.6 billion of market deprecation occurring in the fourth quarter of 2018) and net outflows of $10.0 billion.


During 2019, our Retail channel average AUM of $212.3 billion increased $20.5 billion, or 10.7%, compared to 2018, primarily due to this AUM increasing $58.4 billion, or 32.3%, to $239.2 billion over the last twelve months. The $58.4 billion increase in AUM resulted primarily from market appreciation of $34.5 billion and net inflows of $23.8 billion. During 2018, our Retail channel average AUM of $191.8 billion increased $14.3 billion, or 8.1%, compared to 2017; however, this AUM decreased $12.1 billion, or 6.3%, to $180.8 billion during 2018. The $12.1 billion decrease in AUM resulted primarily from market depreciation of $12.3 billion (with $16.4 billion of market deprecation occurring in the fourth quarter of 2018).
During 2019, our Private Wealth Management channel average AUM of $96.5 billion increased $2.2 billion, or 2.3%, compared to 2018, primarily due to this AUM increasing $11.7 billion, or 13.2%, to $101.0 billion over the last twelve months. The $11.7 billion increase in AUM resulted primarily from market appreciation of $13.7 billion, partially offset by net outflows of $1.0 billion and an adjustment of $0.9 billion in the second quarter of 2019 relating to the removal of non-investment management fee earning assets. During 2018, our Private Wealth Management channel average AUM of $94.3 billion increased $7.6 billion, or 8.8%, compared to 2017; however, this AUM decreased $3.0 billion, or 3.2%, to $89.3 billion during 2018. The $3.0 billion decrease in AUM resulted from market depreciation of $4.5 billion (with $6.8 billion of market deprecation occurring in the fourth quarter of 2018), offset by net inflows of $1.9 billion.

As a result of the significant market declines in the fourth quarter of 2018, AUM as of December 31, 2018 was lower than AUM as of December 31, 2017 in all three distribution channels; however, average AUM during 2018 was higher than average AUM during 2017 in all three distribution channels, reflecting our strong performance through the first nine months of 2018. Conversely, the dynamic experienced in the fourth quarter of 2018 combined with positive market performance in 2019 resulted in the increases in our year-end AUM as of December 31, 2019 for all three distribution channels significantly outpacing the respective increases in average AUM during 2019.
Absolute investment composite returns, gross of fees, and relative performance as of December 31, 2019 compared to benchmarks for certain representative Institutional equity and fixed income services are as follows:
 1-Year 3-Year 5-Year
      
Global High Income - Hedged (fixed income)     
Absolute return15.3 % 6.5 % 6.3 %
Relative return (vs. Bloomberg Barclays Global High Yield Index - Hedged)1.9
 0.4
 (0.3)
Global Fixed Income - Unhedged (fixed income)     
Absolute return5.3
 4.1
 2.1
Relative return (vs. Bloomberg Barclays Global Treasury Index)(0.2) —
 —
Global Plus - Hedged (fixed income)     
Absolute return8.7
 4.5
 4.1
Relative return (vs. Bloomberg Barclays Global Aggregate Index - Hedged)0.5
 0.2
 0.5
Intermediate Municipal Bonds (fixed income)     
Absolute return6.1
 3.7
 2.8
Relative return (vs. Lipper Short/Int. Blended Muni Fund Avg)1.2
 0.7
 0.7
U.S. Strategic Core Plus (fixed income)     
Absolute return9.2
 4.6
 3.8
Relative return (vs. Bloomberg Barclays U.S. Aggregate Index)0.5
 0.5
 0.8
Emerging Market Debt (fixed income)     
Absolute return14.7
 6.1
 5.9
Relative return (vs. JPM EMBI Global/JPM EMBI)0.3
 0.1
 —
U.S. Relative Value     
Absolute return24.5
 12.3
 10.2
Relative return (vs. Russell 1000 Value Index)(2.0) 2.6
 1.9

 1-Year 3-Year 5-Year
International Strategic Core Equity     
Absolute return19.4
 11.4
 8.1
Relative return (vs. MSCI EAFE Index)(2.6) 1.8
 2.5
U.S. Small & Mid Cap Value     
Absolute return21.2
 5.8
 7.3
Relative return (vs. Russell 2500 Value Index)(2.4) (0.3) 0.1
U.S. Strategic Value     
Absolute return21.0
 6.2
 4.5
Relative return (vs. Russell 1000 Value Index)(5.5) (3.5) (3.8)
U.S. Small Cap Growth     
Absolute return37.3
 23.2
 15.0
Relative return (vs. Russell 2000 Growth Index)8.8
 10.7
 5.7
U.S. Large Cap Growth     
Absolute return35.1
 22.7
 16.5
Relative return (vs. Russell 1000 Growth Index)(1.3) 2.2
 1.8
U.S. Small & Mid Cap Growth     
Absolute return31.7
 19.3
 12.4
Relative return (vs. Russell 2500 Growth Index)(0.9) 4.1
 1.5
Concentrated U.S. Growth     
Absolute return40.6
 21.4
 14.3
Relative return (vs. S&P 500 Index)9.1
 6.2
 2.6
Select U.S. Equity     
Absolute return30.5
 15.6
 11.7
Relative return (vs. S&P 500 Index)(1.0) 0.3
 —
Strategic Equities     
Absolute return29.6
 14.3
 11.2
Relative return (vs. Russell 3000 Index)(1.4) (0.3) —
Global Core Equity     
Absolute return28.8
 15.9
 10.7
Relative return (vs. MSCI ACWI Index)2.2
 3.4
 2.3
U.S. Strategic Core Equity     
Absolute return32.1
 15.1
 12.7
Relative return (vs. S&P 500 Index)0.6
 (0.2) 1.0
Select U.S. Equity Long/Short     
Absolute return18.9
 10.6
 7.8
Relative return (vs. S&P 500 Index)(12.6) (4.7) (3.9)

Consolidated Results of Operations
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands, except per unit amounts)  
  
Net revenues$3,518,432
 $3,367,361
 $3,298,521
 4.5 % 2.1 %
Expenses2,694,995
 2,542,047
 2,524,611
 6.0
 0.7
Operating income823,437
 825,314
 773,910
 (0.2) 6.6
Income taxes41,754
 45,816
 53,110
 (8.9) (13.7)
Net income781,683
 779,498
 720,800
 0.3
 8.1
Net income of consolidated entities attributable to non-controlling interests29,641
 21,910
 58,397
 35.3
 (62.5)
Net income attributable to AB Unitholders$752,042
 $757,588
 $662,403
 (0.7) 14.4
Diluted net income per AB Unit$2.78
 $2.78
 $2.45
 —
 13.5
Distributions per AB Unit$2.82
 $2.96
 $2.57
 (4.7) 15.2
Operating margin(1)
22.6% 23.9% 21.7%  
  
(1)
Operating income excluding net income (loss) attributable to non-controlling interests as a percentage of net revenues.

Net income attributable to AB Unitholders for the year ended December 31, 2019 decreased $5.5 million from the year ended December 31, 2018. The decrease primarily is due to (in millions):
Higher employee compensation and benefits$(64.0)
Higher promotion and servicing expenses(51.7)
Higher general and administrative expenses (including real estate charges)(31.9)
Lower Bernstein Research Services revenue(31.5)
Lower performance-based fees(18.5)
Higher net income of consolidated entities attributable to non-controlling interest(7.7)
Higher base advisory fees128.4
Higher distribution revenues36.5
Higher investment gains36.0
Other(1.1)
 $(5.5)

Net income attributable to AB Unitholders for the year ended December 31, 2018 increased $95.2 million from the year ended December 31, 2017. The increase primarily was due to (in millions):
Higher base advisory fees$137.5
Lower general and administrative expenses (including real estate charges)62.0
Lower net income of consolidated entities attributable to non-controlling interest36.5
Higher performance-based fees23.4
Lower income tax expenses7.3
Higher distribution revenues6.5
Changes in contingent payment arrangements2.5
Lower investment gains(89.4)
Higher employee compensation and benefits(65.3)
Higher promotion and servicing expenses(14.5)
Lower Bernstein Research Services revenue(10.5)
Other(0.8)
 $95.2
Units Outstanding
Each quarter, we consider whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (“Exchange Act”). A plan of this type allows a company to repurchase its shares at times when it otherwise might be prevented from doing so because of self-imposed trading blackout periods or because it possesses material non-public information. Each broker we select has the authority to repurchase AB Holding Units on our behalf in accordance with the terms and limitations specified in the plan. Repurchases are subject to regulations promulgated by the SEC, as well as certain price, market volume and timing constraints specified in the plan. The plan adopted during the fourth quarter of 2019 expired at the close of business on February 11, 2020. We may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under our incentive compensation award program and for other corporate purposes.
Cash Distributions
AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement, to its Unitholders (including the General Partner). Available Cash Flow typically is the adjusted diluted net income per unit for the quarter multiplied by the number of units outstanding at the end of the quarter. Management anticipates that Available Cash Flow will continue to be based on adjusted diluted net income per unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments made to adjusted net income should not be made with respect to the Available Cash Flow calculation. See Note 2 to AB Holding’s financial statements in Item 8 for a description of Available Cash Flow.
36AllianceBernstein
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Commitments and Contingencies
For a discussion of commitments and contingencies, see Note 7 to AB Holding’s financial statements in Item 8.
AB
Assets Under Management
Assets under management by distribution channel are as follows: 
 As of December 31% Change  
 2022202120202022-212021-20
 (in billions)  
Institutions$297.3 $337.1 $315.6 (11.8 %)6.8 %
Retail242.9 319.9 265.3 (24.1)20.6 
Private Wealth Management106.2 121.6 105.0 (12.6)15.8 
Total$646.4 $778.6 $685.9 (17.0)13.5 
Assets under management by investment service are as follows:
 As of December 31% Change
 2022202120202022-212021-20
 (in billions)  
Equity  
Actively Managed$217.9 $287.6 $217.8 (24.2 %)32.1 %
Passively Managed(1)
53.8 71.6 64.5 (24.8)10.9 
Total Equity271.7 359.2 282.3 (24.3)27.2 
Fixed Income   
Actively Managed   
Taxable190.3 246.3 263.2 (22.8)(6.4)
Tax–exempt52.5 57.1 50.3 (7.9)13.6 
Total242.8 303.4 313.5 (20.0)(3.2)
Passively Managed(1)
9.4 13.2 8.5 (28.9)55.3 
Total Fixed Income252.2 316.6 322.0 (20.3)(1.7)
Alternatives/Multi-Asset Solutions(2)
 Actively Managed115.8 97.3 79.1 19.1 23.0 
Passively Managed(1)
6.7 5.5 2.5 21.5 116.6 
Total Alternatives/Multi-Asset Solutions122.5 102.8 81.6 19.2 25.9 
Total$646.4 $778.6 $685.9 (17.0 %)13.5 %
(1)Includes index and enhanced index services.
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services.
2022 Annual Report37
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Part II
Changes in assets under management during 2022 and 2021 are as follows:
 Distribution Channel
 InstitutionsRetailPrivate
Wealth
Management		Total
 (in billions)
Balance as of December 31, 2021$337.1 $319.9 $121.6 $778.6 
Long-term flows:
Sales/new accounts32.2 65.9 17.5 115.6 
Redemptions/terminations(13.3)(66.3)(15.8)(95.4)
Cash flow/unreinvested dividends(12.6)(11.2)— (23.8)
Net long-term inflows (outflows)(1)
6.3 (11.6)1.7 (3.6)
Adjustments(2)
(0.4)— — (0.4)
Acquisition(3)
12.2 — — 12.2 
Transfers(0.1)0.1 — — 
Market depreciation(57.8)(65.5)(17.1)(140.4)
Net change(39.8)(77.0)(15.4)(132.2)
Balance as of December 31, 2022$297.3 $242.9 $106.2 $646.4 
Balance as of December 31, 2020$315.6 $265.3 $105.0 $685.9 
Long-term flows:
Sales/new accounts31.7 100.0 18.3 150.0 
Redemptions/terminations(23.4)(65.1)(15.3)(103.8)
Cash flow/unreinvested dividends(6.0)(14.1)— (20.1)
Net long-term inflows(1)
2.3 20.8 3.0 26.1 
Transfers(0.2)0.2 — — 
Market appreciation19.4 33.6 13.6 66.6 
Net change21.5 54.6 16.6 92.7 
Balance as of December 31, 2021$337.1 $319.9 $121.6 $778.6 
(1)Net flows include $4.5 billion and $1.3 billion of AXA redemptions for 2022 and 2021, respectively.
(2)Approximately $0.4 billion of Institutional AUM was removed from our total assets under management during the second quarter of 2022 due to a change in the fee structure.
(3)The CarVal acquisition added approximately $12.2 billion of Institutional AUM in the third quarter of 2022.
38AllianceBernstein
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Part II
 Investment Service
 Equity
Actively
Managed
Equity
Passively
Managed(1)
Fixed
Income
Actively
Managed-
Taxable		Fixed Income
Actively
Managed-Tax-
Exempt
Fixed
Income
Passively
Managed(1)
Alternatives/
Multi-Asset
Solutions(2)
Total
(in billions)
Balance as of December 31, 2021$287.6 $71.6 $246.3 $57.1 $13.2 $102.8 $778.6 
Long-term flows:
Sales/new accounts46.0 1.8 25.5 16.0 (0.1)26.4 115.6 
Redemptions/terminations(39.0)(3.1)(32.6)(15.0)(1.5)(4.2)(95.4)
Cash flow/unreinvested dividends(9.7)(4.0)(10.8)(0.4)0.3 0.8 (23.8)
Net long-term (outflows) inflows(3)
(2.7)(5.3)(17.9)0.6 (1.3)23.0 (3.6)
Adjustments(4)
— — — — — (0.4)(0.4)
Acquisition(5)
— — — — — 12.2 12.2 
Market (depreciation)(67.0)(12.5)(38.1)(5.2)(2.5)(15.1)(140.4)
Net change(69.7)(17.8)(56.0)(4.6)(3.8)19.7 (132.2)
Balance as of December 31, 2022$217.9 $53.8 $190.3 $52.5 $9.4 $122.5 $646.4 
Balance as of December 31, 2020$217.8 $64.5 $263.2 $50.3 $8.5 $81.6 $685.9 
Long-term flows:
Sales/new accounts72.9 1.4 44.9 13.5 4.6 12.7 150.0 
Redemptions/terminations(39.6)(1.1)(52.6)(7.8)(0.4)(2.3)(103.8)
Cash flow/unreinvested dividends(11.4)(7.8)(2.2)0.3 0.8 0.2 (20.1)
Net long-term inflows (outflows)(3)
21.9 (7.5)(9.9)6.0 5.0 10.6 26.1 
Market appreciation (depreciation)47.9 14.6 (7.0)0.8 (0.3)10.6 66.6 
Net change69.8 7.1 (16.9)6.8 4.7 21.2 92.7 
Balance as of December 31, 2021$287.6 $71.6 $246.3 $57.1 $13.2 $102.8 $778.6 
(1)Includes index and enhanced index services.
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services.
(3)Net flows include $4.5 billion and $1.3 billion of AXA redemptions for 2022 and 2021, respectively.
(4)Approximately $0.4 billion of Institutional AUM was removed from our total assets under management during the second quarter of 2022 due to a change in the fee structure.
(5)The CarVal acquisition added approximately $12.2 billion of Institutional AUM in the third quarter of 2022.
2022 Annual Report39
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Net long-term (outflows) inflows for actively managed investment services as compared to passively managed investment services during 2022 and 2021 are as follows:
 Years Ended December 31
 20222021
 (in billions)
Actively Managed
Equity$(2.7)$21.9 
Fixed Income(17.3)(3.9)
Alternatives/Multi- Asset Solutions20.9 8.3 
Total0.9 26.3 
Passively Managed  
Equity(5.3)(7.5)
Fixed Income(1.3)5.0 
Alternatives/Multi- Asset Solutions2.1 2.3 
Total(4.5)(0.2)
Total net long-term (outflows) inflows$(3.6)$26.1 
Average assets under management by distribution channel and investment service are as follows:
 Years Ended December 31% Change
 2022202120202022-212021-20
 (in billions)  
Distribution Channel:  
Institutions$308.4 $325.7 $285.9 (5.3 %)13.9 %
Retail267.8 291.0 236.5 (8.0)23.0 
Private Wealth Management110.3 114.1 97.1 (3.3)17.5 
Total$686.5 $730.8 $619.5 (6.1)18.0 
Investment Service:
Equity Actively Managed$239.7 $252.2 $179.8 (4.9)40.2 
Equity Passively Managed(1)
60.4 68.7 57.1 (12.1)20.5 
Fixed Income Actively Managed – Taxable210.0 253.1 254.4 (17.1)(0.5)
Fixed Income Actively Managed – Tax-exempt54.1 53.8 47.9 0.6 12.3 
Fixed Income Passively Managed(1)
11.5 9.6 9.4 20.2 1.4 
Alternatives/Multi-Asset Solutions(2)
110.8 93.4 70.9 18.6 31.7 
Total$686.5 $730.8 $619.5 (6.1)18.0 
(1)Includes index and enhanced index services.
(2)Includes certain multi-asset solutions and services not included in equity or fixed income services.
40AllianceBernstein
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During 2022, our Institutional channel average AUM of $308.4 billion decreased $17.3 billion, or 5.3%, compared to 2021, primarily due to this AUM decreasing $39.8 billion, or 11.8%, to $297.3 billion from December 31, 2021. The $39.8 billion decrease in AUM resulted primarily from market depreciation of $57.8 billion, partially offset by an addition of $12.2 billion due to the acquisition of CarVal and net inflows of $6.3 billion. During 2021, our Institutional channel average AUM of $325.7 billion increased $39.8 billion, or 13.9%, compared to 2020, primarily due to this AUM increasing $21.5 billion, or 6.8%, to $337.1 billion during 2021. The $21.5 billion increase in AUM resulted primarily from market appreciation of $19.4 billion and net inflows of $2.3 billion.
During 2022, our Retail channel average AUM of $267.8 billion decreased $23.2 billion, or 8.0%, compared to 2021, primarily due to this AUM decreasing $77.0 billion, or 24.1%, to $242.9 billion from December 31, 2021. The $77.0 billion decrease in AUM resulted primarily from market depreciation of $65.5 billion and net outflows of $11.6 billion. During 2021, our Retail channel average AUM of $291.0 billion increased $54.5 billion, or 23.0%, compared to 2020, primarily due to this AUM increasing $54.6 billion, or 20.6%, to $319.9 billion during 2021. The $54.6 billion increase in AUM resulted primarily from market appreciation of $33.6 billion and net inflows of $20.8 billion.
During 2022, our Private Wealth Management channel average AUM of $110.3 billion decreased $3.8 billion, or 3.3%, compared to 2021, primarily due to this AUM decreasing $15.4 billion, or 12.6%, to $106.2 billion from December 31, 2021. The $15.4 billion decrease in AUM resulted from market depreciation of $17.1 billion, offset by net inflows of $1.7 billion. During 2021, our Private Wealth Management channel average AUM of $114.1 billion increased $17.0 billion, or 17.5%, compared to 2020, primarily due to this AUM increasing $16.6 billion, or 15.8%, to $121.6 billion during 2021. The $16.6 billion increase in AUM resulted primarily from market appreciation of $13.6 billion and net inflows of $3.0 billion.
Absolute investment composite returns, gross of fees, and relative performance as of December 31, 2022 compared to benchmarks for certain representative Institutional equity and fixed income services are as follows:
 1-Year
3-Year(1)
5-Year(1)
Global High Income - Hedged (fixed income)
Absolute return(11.1%)(1.2%)1.3%
Relative return (vs. Bloomberg Barclays Global High Yield Index - Hedged)(0.1)—0.1
Global Plus - Hedged (fixed income)
Absolute return(11.6)(2.3)0.5
Relative return (vs. Bloomberg Barclays Global Aggregate Index - Hedged)(0.4)0.30.2
Intermediate Municipal Bonds (fixed income)
Absolute return(5.2)0.21.6
Relative return (vs. Lipper Short/Int. Blended Muni Fund Avg)0.20.70.7
U.S. Strategic Core Plus (fixed income)
Absolute return(13.3)(2.3)0.4
Relative return (vs. Bloomberg Barclays U.S. Aggregate Index)(0.3)0.40.4
Emerging Market Debt (fixed income)
Absolute return(18.4)(4.7)(1.4)
Relative return (vs. JPM EMBI Global/JPM EMBI)(1.9)(0.2)(0.4)
Sustainable Global Thematic
Absolute return(26.5)8.68.9
Relative return (vs. MSCI ACWI Index)(8.1)4.63.7
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 1-Year
3-Year(1)
5-Year(1)
International Strategic Core Equity
Absolute return(13.9)0.72.3
Relative return (vs. MSCI EAFE Index)0.6(0.2)0.8
U.S. Small & Mid Cap Value
Absolute return(15.2)6.74.8
Relative return (vs. Russell 2500 Value Index)(2.1)1.5—
U.S. Strategic Value
Absolute return(6.1)7.05.0
Relative return (vs. Russell 1000 Value Index)1.41.0(1.6)
U.S. Small Cap Growth
Absolute return(38.4)2.07.8
Relative return (vs. Russell 2000 Growth Index)(12.0)1.34.3
U.S. Large Cap Growth
Absolute return(28.3)7.911.8
Relative return (vs. Russell 1000 Growth Index)0.80.10.8
U.S. Small & Mid Cap Growth
Absolute return(35.5)3.67.1
Relative return (vs. Russell 2500 Growth Index)(9.3)0.71.2
Concentrated U.S. Growth
Absolute return(23.3)7.312.2
Relative return (vs. S&P 500 Index)(5.2)(0.3)2.8
Select U.S. Equity
Absolute return(13.0)10.010.7
Relative return (vs. S&P 500 Index)5.12.31.3
Strategic Equities
Absolute return(19.8)5.97.5
Relative return (vs. Russell 3000 Index)(0.6)(1.2)(1.2)
Global Core Equity
Absolute return(19.5)2.25.6
Relative return (vs. MSCI ACWI Index)(1.2)(1.8)0.4
U.S. Strategic Core Equity
Absolute return(9.4)7.19.8
Relative return (vs. S&P 500 Index)8.7(0.6)0.4
Select U.S. Equity Long/Short
Absolute return(8.6)6.87.6
Relative return (vs. S&P 500 Index)9.5(0.9)(1.8)
Global Strategic Core Equity
Absolute return(10.7)5.07.3
Relative return (vs. S&P 500 Index)7.5—1.2
(1)Reflects annualized returns.
42AllianceBernstein
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Consolidated Results of Operations
 Years Ended December 31% Change
 2022202120202022-212021-20
 (in thousands, except per unit amounts)  
Net revenues$4,054,290 $4,441,602 $3,708,536 (8.7)%19.8 %
Expenses3,239,194 3,225,140 2,801,100 0.4 15.1 
Operating income815,096 1,216,462 907,436 (33.0)34.1 
Income taxes39,639 62,728 45,653 (36.8)37.4 
Net income775,457 1,153,734 861,783 (32.8)33.9 
Net (loss) income of consolidated entities attributable to non-controlling interests(56,356)5,111 (4,169)n/mn/m
Net income attributable to AB Unitholders$831,813 $1,148,623 $865,952 (27.6)32.6 
Diluted net income per AB Unit$3.01 $4.18 $3.19 (28.0)31.0 
Distributions per AB Unit$3.26 $4.19 $3.20 (22.2)30.9 
Operating margin(1)
21.5 %27.3 %24.6 %  
(1)Operating income excluding net (loss) income attributable to non-controlling interests as a percentage of net revenues.
Net income attributable to AB Unitholders for the year ended December 31, 2022 decreased $316.8 million from the year ended December 31, 2021. The decrease primarily is due to (in millions):
Lower base advisory fees$(123.6)
Higher investment losses(101.8)
Lower performance-based fees(99.9)
Higher general and administrative expenses(86.0)
Lower distribution revenues(45.0)
Lower Bernstein Research Services revenue(35.7)
Lower promotion and servicing expenses60.1 
Higher net loss of consolidated entities attributable to non-controlling interest61.5 
Lower employee compensation and benefits49.4 
Other4.2 
$(316.8)
Net income attributable to AB Unitholders for the year ended December 31, 2021 increased $282.7 million from the year ended December 31, 2020. The increase primarily was due to (in millions):
Higher base advisory fees$486.6 
Higher distribution revenues122.5 
Higher performance-based fees112.5 
Higher employee compensation and benefits(221.8)
Higher promotion and servicing expenses(153.5)
Higher general and administrative expenses(64.5)
Other0.9 
$282.7
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Units Outstanding
Each quarter, we consider whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (“Exchange Act”). A plan of this type allows a company to repurchase its shares at times when it otherwise might be prevented from doing so because of self-imposed trading blackout periods or because it possesses material non-public information. Each broker we select has the authority to repurchase AB Holding Units on our behalf in accordance with the terms and limitations specified in the plan. Repurchases are subject to regulations promulgated by the SEC, as well as certain price, market volume and timing constraints specified in the plan. There was no plan adopted during the fourth quarter of 2022. We may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under our incentive compensation award program and for other corporate purposes.
Cash Distributions
We are required to distribute all of our Available Cash Flow, as defined in the AB Partnership Agreement, to our Unitholders and the General Partner. Available Cash Flow typically is the adjusted diluted net income per unit for the quarter multiplied by the number of general and limited partnership interests at the end of the quarter. In future periods, management anticipates that Available Cash Flow will continue to be based on adjusted diluted net income per unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments that are made for adjusted net income should not be made with respect to the Available Cash Flow calculation. See Note 2 to our consolidated financial statements contained in Item 8 for a description of Available Cash Flow.
Management Operating Metrics
We are providing the non-GAAP measures “adjusted net revenues,” “adjusted operating income” and “adjusted operating margin” because they are the principal operating metrics management uses in evaluating and comparing period-to-period operating performance. Management principally uses these metrics in evaluating performance because they present a clearer picture of our operating performance and allow management to see long-term trends without the distortion primarily caused by long-term incentive compensation-related mark-to-market adjustments, real estate charges and other adjustment items. Similarly, we believe that these management operating metrics help investors better understand the underlying trends in our results and, accordingly, provide a valuable perspective for investors.
These non-GAAP measures are provided in addition to, and not as substitutes for, net revenues, operating income and operating margin, and they may not be comparable to non-GAAP measures presented by other companies. Management uses both accounting principles generally accepted in the United States of America ("US GAAP") and non-GAAP measures in evaluating our financial performance. The non-GAAP measures alone may pose limitations because they do not include all of our revenues and expenses.

 Years Ended December 31,
 2019 2018 2017
 (in thousands)
Net revenues, US GAAP basis$3,518,432
 $3,367,361
 $3,298,521
Adjustments:     
Impact of adoption of revenue recognition standard ASC 606—
 77,844
 —
Distribution-related payments(487,965) (427,186) (411,467)
Amortization of deferred sales commissions(15,029) (21,343) (31,886)
Pass-through fees and expenses(56,840) (40,219) (40,531)
Impact of consolidated company-sponsored funds(33,044) (38,142) (87,255)
Long-term incentive compensation-related investment gains and dividend and interest(8,939) 3,509
 (9,891)
Loss (gain) on sale of software technology investment—
 3,733
 (4,592)
Other—
 47
 —
Adjusted net revenues$2,916,615
 $2,925,604
 $2,712,899
      
Operating income, US GAAP basis$823,437
 $825,314
 $773,910
Adjustments:     
Impact of adoption of revenue recognition standard ASC 606—
 35,156
 —
Real estate charges2,623
 7,160
 36,669
Acquisition-related expenses6,734
 1,924
 2,012
Long-term incentive compensation-related items1,217
 3,064
 709
CEO's EQH award compensation1,125
 —
 —
Loss (gain) on sale of software technology investment—
 3,733
 (4,592)
Contingent payment arrangements(3,051) (2,429) (193)
Other—
 47
 —
Sub-total of non-GAAP adjustments8,648
 48,655
 34,605
Less: Net income of consolidated entities attributable to non-controlling interests29,641
 21,910
 58,397
Adjusted operating income802,444
 852,059
 750,118
Adjusted income taxes40,684
 47,289
 56,709
Adjusted net income$761,760
 $804,770
 $693,409
Diluted net income per AB Unit, GAAP basis$2.78
 $2.78
 $2.45
Impact of non-GAAP adjustments0.03
 0.18
 0.12
Adjusted diluted net income per AB Unit$2.81
 $2.96
 $2.57
      
Adjusted operating margin27.5% 29.1% 27.7%
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Years Ended December 31
202220212020
(in thousands)
Net revenues, US GAAP basis$4,054,290$4,441,602$3,708,536
Adjustments:
Distribution-related adjustments:
Distribution revenues(607,195)(652,240)(529,781)
Investment advisory services fees(57,139)(90,242)(66,858)
Pass-through adjustments:
Investment advisory services fees(65,116)(40,628)(18,279)
Other revenues(38,959)(37,209)(39,333)
Impact of consolidated company-sponsored funds57,436(6,933)954
Incentive compensation-related items(7,083)(6,694)(6,772)
Write-down of investment—1,880859
Adjusted net revenues$3,336,234$3,609,536$3,049,326
Operating income, US GAAP basis$815,096$1,216,462$907,436
Adjustments:
Real estate(825)(3,162)2,880
Incentive compensation-related items3,461687(83)
EQH award compensation606940802
Write-down of investment—1,880859
Acquisition-related expenses72,5032,6141,935
Sub-total of non-GAAP adjustments75,7452,9596,393
Less: Net (loss) income of consolidated entities attributable to non-controlling interests(56,356)5,111(4,169)
Adjusted operating income947,1971,214,310917,998
Adjusted income taxes46,03462,65846,176
Adjusted net income$901,163$1,151,652$871,822
Diluted net income per AB Unit, GAAP basis$3.01$4.18$3.19
Impact of non-GAAP adjustments0.250.020.02
Adjusted diluted net income per AB Unit$3.26$4.20$3.21
Operating margin, GAAP basis21.5%27.3%24.6%
Impact of non-GAAP adjustments6.96.35.5
Adjusted operating margin28.4%33.6%30.1%
Adjusted operating income for the year ended December 31, 20192022 decreased $49.6$267.1 million, or 5.8%22.0%, from the year ended December 31, 2018,2021, primarily due to lower performance-based fees of $99.3$130.9 million, lower investment advisory base fees of $99.1 million, lower Bernstein Research Services revenue of $31.5$35.7 million and higher general and administrative expenses of $29.3$32.3 million, higher net distribution expenses of $17.8 million and higherpartially offset by lower employee compensation expenses (excluding the impactand benefits expense of long-term incentive compensation-related items) of $8.3 million, offset by higher investment advisory base fees of $113.3 million and higher investments gains and losses revenue of $22.4$58.4 million.
Adjusted operating income for the year ended December 31, 20182021 increased $101.9$296.3 million, or 13.6%32.3%, from the year ended December 31, 2017,2020, primarily due to higher investment advisory base fees of $139.3$460.9 million and higher performance-based fees of $90.7$91.7 million, partially offset by higher employee compensation and benefits expenses of $221.4 million and lowerhigher general and administrative expenses of $19.1 million, offset by higher employee compensation expenses (excluding the impact$49.2 million.
2022 Annual Report45
Table of long-term incentive compensation-related items) of $119.6 million, lower Bernstein Research Services revenue of $10.5 million, lower investments gains and losses revenue of $9.5 million and higher promotion and servicing expenses of $8.6 million.Contents
On January 1, 2018, as a result of our adoption of ASC 606, we recorded a cumulative effect adjustment, net of tax, of $35.0 million to partners’ capital in the consolidated statement of financial condition. This amount represented carried interest distributionsPart II

of $77.9 million previously received, net of revenue sharing payments to investment team members, of $42.7 million, with respect to which it was probable that significant reversal would not occur. These amounts were included in adjusted net revenues and adjusted operating income in the first quarter of 2018.
Adjusted Net Revenues
Adjusted netNet Revenue, as adjusted, is reduced to exclude all of the company's distribution revenues, offset distribution-related payments to third partieswhich are recorded as a separate line item on the consolidated statement of income, as well as amortizationa portion of deferred sales commissions againstinvestment advisory services fees received that is used to pay distribution revenues.and servicing costs. For certain products, based on the distinct arrangements, certain distribution fees are collected by us and passed through to third-party client intermediaries, while for certain other products, we collect investment advisory services fees and a portion is passed through to third-party client intermediaries. In both arrangements, the third-party client intermediary owns the relationship with the client and is responsible for performing services and distributing the product to the client on our behalf. We believe offsetting netdistribution revenues by distribution-related paymentsand certain investment advisory services fees is useful for our investors and other users of our financial statements because such presentation appropriately reflects the nature of these costs as pass-through payments to third parties whothat perform functions on behalf of our sponsored mutual funds and/or shareholders of these funds. We offsetDistribution-related adjustments fluctuate each period based on the type of investment products sold, as well as the average AUM over the period. Also, we adjust distribution revenues for the amortization of deferred sales commissions against net revenues because suchas these costs, over time, essentiallywill offset our distributionsuch revenues.
We also exclude additional pass-through expenses we incur (primarilyadjust investment advisory and services fees and other revenues for pass through costs, primarily related to our transfer agency) that are reimbursedagent and recorded asshareholder servicing fees. Also, we adjust for certain performance-based fees in revenues.passed through to our investment advisors. These fees do not affect operating income, but they do affect our operating margin. Asas such, we exclude these fees from adjusted net revenues.
We adjust for the revenue impact of consolidating company-sponsored investment funds by eliminating the consolidated company-sponsored investment funds' revenues and including AB's fees from such consolidated company-sponsored investment funds and AB's investment gains and losses on its investments in such consolidated company-sponsored investment funds that were eliminated in consolidation.
Adjusted net revenues exclude investment gains and losses and dividends and interest on employee long-term incentive compensation-related investments. Also, we adjust for certain acquisition-related pass-through performance-based fees and performance related compensation.
Adjusted net revenues includeDuring the impactfourth quarter of our adoption of revenue recognition standard ASC 6062021, we wrote down an equity method investment; this write-down brought the investment balance to zero. Additionally, during the first quarter of 2018, asdiscussed above.
During 2017,2020, we excluded a realized gain of $4.6 million onwrote-down an investment that had been received in exchange for the exchangesale of software technology for an ownership stake in a third party provider of financial market data and trading tools. During 2018,technology; the write-down brought the investment balance to zero. Previously, we decreased our valuation of thishad been excluding the investment by $3.7 million.from adjusted net revenues.
Adjusted Operating Income
Adjusted operating income represents operating income on a US GAAP basis excluding (1) real estate charges (credits), (2) acquisition-related expenses, (3) the impact on net revenues and compensation expense of the investment gains and losses (as well as the dividends and interest) associated with employee long-term incentive compensation-related investments, (4) our CEO's(3) the equity compensation paid by EQH award compensation,to certain AB executives, as discussed below, (4) the write-down of investments (discussed immediately above), (5) loss (gain) on the sale of a software technology investment,acquisition-related expenses and (6) adjustments to contingent payment arrangements, and (7) the impact of consolidated company-sponsored investment funds; provided, however, that adjusted operating income includes the revenues and expenses associated with our implementation of ASC 606 during the first quarter of 2018 discussed above.funds.
Real estate charges (credits) have been excluded because they are not considered part of our core operating results when comparing financial results from period to period and to industry peers. However, beginning inincurred during the fourth quarter of 2019 real estate charges (credits),through the fourth quarter of 2020, while excluded in the period in which the charges (credits) arewere recorded, are included ratably over the remaining applicable lease term.
Acquisition-related expenses have been excluded because they are not considered part of our core operating results when comparing financial results from period to period and to industry peers. During 2019, these expenses included an intangible asset impairment charge of $3.1 million relating to our 2016 acquisition.
Prior to 2009, a significant portion of employee compensation was in the form of long-term incentive compensation awards that were notionally invested in AB investment services and generally vested over a period of four years. AB economically hedged the exposure to market movements by purchasing and holding these investments on its balance sheet. All such investments had vested as of year-end 2012 and the investments have been delivered to the participants, except for those investments with respect to which the participant elected a long-term deferral. Fluctuation in the value of these investments, which also impacts compensation expense, is recorded within investment gains and losses on the income statement and also impacts compensation expense.statement. Management believes it is useful to reflect the offset achieved from economically hedging the market exposure of these investments in the calculation of adjusted operating income and adjusted operating margin. The non-GAAP measures exclude gains and losses and dividends and interest on employee long-term incentive compensation-related investments included in revenues and compensation expense.
The board of directors of EQH granted to Seth P. Bernstein, (“our CEO,”) equity awards in connection with EQH's IPO IPO. Additionally, equity awards were granted to Mr. Bernstein and Mr. Bernstein'sother AB executives for their membership on the EQH Management Committee. Mr. BernsteinThese individuals may receive additional equity or cash compensation from EQH in the future related to histheir service on the Management Committee. Any awards granted to Mr. Bernsteinthese individuals by EQH are

recorded as compensation expense in AB’s consolidated statement of income. The compensation expense associated with these awards has been excluded from our non-GAAP measures because they are non-cash and are based upon EQH's, and not AB's, financial performance.

The loss (gain) on the salewrite-down of a software technology investment hasinvestments discussed above in Adjusted Net Revenues have been excluded due to itstheir non-recurring nature and because it isthey are not part of our core operating results.

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Acquisition-related expenses have been excluded because they are not considered part of our core operating results when comparing financial results from period to period and to industry peers. Acquisition-related expenses include professional fees and the recording of changes in estimates to contingent payment arrangements associated with our acquisitions. Beginning in the first quarter of 2022, acquisition-related expenses also include certain compensation-related expenses, amortization of intangible assets for contracts acquired and accretion expense with respect to contingent payment arrangements. During 2022 and 2021, these expenses included an intangible asset impairment charge of $5.6 million and $1.0 million, respectively, related to various historical acquisitions.
The recording of changes in estimates of contingent consideration payable with respect to contingent payment arrangements associated with our acquisitions are not considered part of our core operating results and, accordingly, have been excluded.
We adjusted for the operating income impact of consolidating certain company-sponsored investment funds by eliminating the consolidated company-sponsored funds' revenues and expenses and including AB's revenues and expenses that were eliminated in consolidation. We also excluded the limited partner interests we do not own.
Adjusted Net Income and Adjusted Diluted Net Income per AB Unit
As previously discussed, our quarterly distribution is typically our adjusted diluted net income per unit (which is derived from adjusted net income) for the quarter multiplied by the number of general and limited partnership interests at the end of the quarter. Adjusted income taxes, used in calculating adjusted net income, are calculated using the GAAP effective tax rate adjusted for non-GAAP income tax adjustments.
Adjusted Operating Margin
Adjusted operating margin allows us to monitor our financial performance and efficiency from period to period without the volatility noted above in our discussion of adjusted operating income and to compare our performance to industry peers on a basis that better reflects our performance in our core business. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenues.

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Net Revenues
The components of net revenues are as follows:
 Years Ended December 31% Change
 2022202120202022-212021-20
 (in thousands)  
Investment advisory and services fees:  
Institutions:  
Base fees$581,987 $540,478 $458,449 7.7 %17.9 %
Performance-based fees77,299 45,580 53,351 69.6 (14.6)
 659,286 586,058 511,800 12.5 14.5 
Retail:
Base fees1,321,645 1,442,178 1,186,560 (8.4)21.5 
Performance-based fees1,564 50,669 24,412 (96.9)107.6 
 1,323,209 1,492,847 1,210,972 (11.4)23.3 
Private Wealth Management:
Base fees922,159 966,749 817,801 (4.6)18.2 
Performance-based fees66,384 148,870 54,863 (55.4)171.3 
 988,543 1,115,619 872,664 (11.4)27.8 
Total:
Base fees2,825,791 2,949,405 2,462,810 (4.2)19.8 
Performance-based fees145,247 245,119 132,626 (40.7)84.8 
 2,971,038 3,194,524 2,595,436 (7.0)23.1 
Bernstein Research Services416,273 452,017 459,744 (7.9)(1.7)
Distribution revenues607,195 652,240 529,781 (6.9)23.1 
Dividend and interest income123,091 38,734 50,923 n/m(23.9)
Investment (losses) gains(102,413)(636)(16,401)n/m(96.1)
Other revenues105,544 108,409 104,703 (2.6)3.5 
Total revenues4,120,728 4,445,288 3,724,186 (7.3)19.4 
Less: Interest expense66,438 3,686 15,650 n/m(76.4)
Net revenues$4,054,290 $4,441,602 $3,708,536 (8.7)19.8 
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands)  
  
Investment advisory and services fees:       
  
Institutions:       
  
Base fees$451,125
 $444,884
 $430,446
 1.4 % 3.4 %
Performance-based fees27,839
 32,898
 45,159
 (15.4) (27.2)
 478,964
 477,782
 475,605
 0.2
 0.5
Retail: 
  
  
    
Base fees1,076,495
 992,037
 922,510
 8.5
 7.5
Performance-based fees22,510
 18,278
 24,216
 23.2
 (24.5)
 1,099,005
 1,010,315
 946,726
 8.8
 6.7
Private Wealth Management: 
  
  
    
Base fees844,809
 807,147
 753,569
 4.7
 7.1
Performance-based fees49,266
 66,967
 25,405
 (26.4) 163.6
 894,075
 874,114
 778,974
 2.3
 12.2
Total: 
  
  
    
Base fees2,372,429
 2,244,068
 2,106,525
 5.7
 6.5
Performance-based fees99,615
 118,143
 94,780
 (15.7) 24.6
 2,472,044
 2,362,211
 2,201,305
 4.6
 7.3
Bernstein Research Services407,911
 439,432
 449,919
 (7.2) (2.3)
Distribution revenues455,043
 418,562
 412,063
 8.7
 1.6
Dividend and interest income104,421
 98,226
 71,162
 6.3
 38.0
Investment gains38,659
 2,653
 92,102
 n/m
 (97.1)
Other revenues97,559
 98,676
 97,135
 (1.1) 1.6
Total revenues3,575,637
 3,419,760
 3,323,686
 4.6
 2.9
Less: Interest expense57,205
 52,399
 25,165
 9.2
 108.2
Net revenues$3,518,432
 $3,367,361
 $3,298,521
 4.5
 2.1
Investment Advisory and Services Fees
Investment advisory and services fees are the largest component of our revenues. These fees generally are calculated as a percentage of the value of AUM as of a specified date, or as a percentage of the value of average AUM for the applicable billing period, and vary with the type of investment service, the size of account and the total amount of assets we manage for a particular client. Accordingly, fee income generally increases or decreases as AUM increase or decrease and is affected by market appreciation or depreciation, the addition of new client accounts or client contributions of additional assets to existing accounts, withdrawals of assets from and termination of client accounts, purchases and redemptions of mutual fund shares, shifts of assets between accounts or products with different fee structures, and acquisitions. Our average basis points realized (investment advisory and services fees divided by average AUM) generally approximate 3530 to 110105 basis points for actively-managedactively managed equity services, 10 to 70 basis points for actively-managed fixed income services and 2 to 2050 basis points for passively-managedpassively managed services. Average basis points realized for other services could range from 43 basis points for certain Institutional third party managed services to over 100150 basis points for certain Retail and Private Wealth Management alternative services. These ranges include all-inclusive fee arrangements (covering investment management, trade execution and other services) for our Private Wealth Management clients.
We calculate AUM using established market-based valuation methods and fair valuation (non-observable market) methods. Market-based valuation methods include: last sale/settle prices from an exchange for actively-traded listed equities, options and futures; evaluated bid prices from recognized pricing vendors for fixed income, asset-backed or mortgage-backed issues; mid prices from recognized pricing vendors and brokers for credit default swaps; and quoted bids or spreads from pricing
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vendors and brokers for other derivative products. Fair valuation methods include: discounted cash flow models or any other methodology that is validated and approved by our Valuation Committee (see paragraph immediately below for more information regarding our Valuation

Committee). Fair valuation methods are used only where AUM cannot be valued using market-based valuation methods, such as in the case of private equity or illiquid securities.
The Valuation Committee, which consists of senior officers and employees, is responsible for overseeing the pricing and valuation of all investments held in client and AB portfolios. The Valuation Committee has adopted a Statement of Pricing Policies describing principles and policies that apply to pricing and valuing investments held in these portfolios. We also have a Pricing Group, which reports tois overseen by the Valuation Committee and is responsible for overseeingmanaging the pricing process for all investments.
We sometimes charge our clients performance-based fees. In these situations, we charge a base advisory fee and are eligible to earn an additional performance-based fee or incentive allocation that is calculated as either a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. Some performance-based fees include a high-watermark provision, which generally provides that if a client account underperforms relative to its performance target (whether absolute or relative to a specified benchmark), it must gain back such underperformance before we can collect future performance-based fees. Therefore, if we fail to achieve our performance target for a particular period, we will not earn a performance-based fee for that period and, for accounts with a high-watermark provision, our ability to earn future performance-based fees will be impaired. We are eligible to earn performance-based fees on 7.9%10.6%, 9.1%9.2% and 0.7%0.5% of the assets we manage for institutional clients, private wealth clients and retail clients, respectively (in total, 5.3%6.6% of our AUM).
Our investment advisory and services fees increaseddecreased by $109.8$223.5 million, or 4.6%7.0%, in 2019,2022, due to a $123.6 million, or 4.2%, decrease in base fees and a $99.9 million decrease in performance-based fees. The decrease in base fees is primarily due to a $128.46.1% decrease in average AUM, partially offset by a slight increase in our portfolio fee rate. Our investment advisory and services fees increased by $599.1 million, or 5.7%23.1%, in 2021, due to a $486.6 million, or 19.8%, increase in base fees whichand a $112.5 million increase in performance-based fees. The increase in base fees was primarily resulted fromdue to a 5.5%18.0% increase in average AUM, and the impact ofas well as a slight increase in our portfolio fee rate.
Performance-based fees decreased $99.9 million, or 40.7%, in 2022, primarily due to lower performance-based fees earned on Financial Services Opportunities fund, U.S. Select Equity fund, Arya Partners fund and Private Credit Services fund, partially offset by higher U.S. Real Estate Funds fees. Performance-based fees increased $112.5 million, or 84.8%, in 2021, primarily due to higher performance-based fees earned on Private Credit Services, U.S. Real Estate Funds, Financial Services Opportunities and U.S. Select Equity, partially offset by lower Arya Partners fees.
Institutional investment advisory and services fees increased $73.2 million, or 12.5%, in 2022, due to an increase in base fees of $41.5 million, or 7.7%, and an increase in performance-based fees of $31.7 million. The increase in base fees is primarily due to a higher portfolio fee rate, partially offset by a 5.3% decrease in average AUM. Institutional investment advisory and services fees increased $74.3 million, or 14.5%, in 2021, due to an increase in base fees of $82.0 million, or 17.9%, partially offset by a decrease in in performance-based fees of $7.8 million. The increase in base fees was primarily due to a 13.9% increase in average AUM, an increase in portfolio fee rate and a shift in product mix from fixed income to active equities and alternatives, which generally haveearn higher fees. This increase was partially offset by an $18.5
Retail investment advisory and services fees decreased $169.6 million, or 11.4%, in 2022, due to a decrease in base fees of $120.5 million, or 8.4%, and a $49.1 million decrease in performance-based fees. OurThe decrease in base fees is primarily due to a 8.0% decrease in average AUM. Retail investment advisory and services fees increased by $160.9$281.9 million, or 7.3%23.3%, in 2018, primarily due to a $137.5 million, or 6.5%, increase in base fees, which primarily resulted from a 5.1% increase in average AUM and the impact of a shift in distribution channel mix from Institutions to Retail and Private Wealth Management. Also, performance-based fees increased $23.4 million.

Institutional investment advisory and services fees increased $1.2 million, or 0.2%, in 2019, primarily2021, due to an increase in base fees of $6.2$255.6 million, or 1.4%21.5%, primarily resulting fromand a 2.8%$26.3 million increase in average AUM, partially offset by a decrease in performance-based fees of $5.1 million and the impact of lower fee realization from active equities. Institutional investment advisory and services fees increased $2.2 million, or 0.5%, in 2018, primarily due to anfees. The increase in base fees of $14.4 million, or 3.4%,is primarily resulting fromdue to a 1.7%23.0% increase in average AUM and the impact of higher fees from alternatives and a shift in product mix to active equities, which generally have higher fees. The increase was partially offset by a decrease in performance-based fees of $12.3 million.
Retail investment advisory and services fees increased $88.7 million, or 8.8%, in 2019, primarily due to an increase in base fees of $84.5 million, or 8.5%, primarily resulting from a 10.7% increase in average AUM, partially offset by the impact of lower fee realization from active equities. Also, performance-based fees increased $4.2 million. Retail investment advisory and services fees increased $63.6 million, or 6.7%, in 2018, primarily due to an increase in base fees of $69.5 million, or 7.5%, primarily resulting from an 8.1% increase in average AUM. The increase was partially offset by a decrease in performance-based fees of $5.9 million.

Private Wealth Management investment advisory and services fees increaseddecreased by $20.0$127.1 million, or 2.3%11.4%, in 2019,2022, due to an increasea decrease in base fees of $37.7$44.6 million, or 4.7%4.6%, primarily resulting fromand an 2.3% increase in average AUM and the impact of a shift in product mix to alternatives, which generally have higher fees. This increase was partially offset by a $17.7$82.5 million decrease in performance-based fees. The decrease in base fees is primarily due to a 3.3% decrease in average AUM. Private Wealth Management investment advisory and services fees increased $95.1$243.0 million, or 12.2%27.8%, in 2018,2021, due to an increase in base fees of $53.6$148.9 million, or 7.1%18.2%, resulting from an 8.8%and a $94.0 million increase in performance-based fees. The increase in base fees is primarily due to a 17.5% increase in average AUM. In addition, performance-based fees increased $41.6 million.
Bernstein Research Services
We earn revenues for providing investment research to, and executing brokerage transactions for, institutional clients. These clients compensate us principally by directing us to execute brokerage transactions on their behalf, for which we earn commissions, and to a lesser extent, but increasingly, by paying us directly for research through commission sharing agreements or cash payments. In the fourth quarter of 2022, AB and SocGen, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the BRSbusiness has been classified as held for sale. For further discussion, see Note 24 Acquisitions and Divestitures to our consolidated financial statements in Item 8.
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Revenues from Bernstein Research Services decreased $31.5$35.7 million, or 7.2%7.9%, in 2019.2022. The decrease was driven by significantly lower customer trading activity in Europe and Asia due to lower global customer activity and trading commissions, partially offset by the inclusion of revenues from our acquisition of Autonomous (which closed on April 1, 2019).local market conditions.
Revenues from Bernstein Research Services decreased $10.5$7.7 million, or 2.3%1.7%, in 2018.2021. The decrease was due to lower trading activity driven by a reduction in commission rates duelower global market volatility as compared to the unbundling of research services and a volume mix shift to lower fee electronic trading across all regions,COVID-related volatility in 2020. This was partially offset by a weaker U.S. dollar.higher research payments across Bernstein and Autonomous Research products.

Distribution Revenues
Two of our subsidiaries act as distributors and/or placement agents of company-sponsored mutual funds and receive distribution services fees from certain of those funds as full or partial reimbursement of the distribution expenses they incur. Period-over-period fluctuations of distribution revenues typically are in line with fluctuations of the corresponding average AUM of these mutual funds.
Distribution revenues increased $36.5decreased $45.0 million, or 8.7%6.9%, in 2019,2022, primarily due to the corresponding average AUM of these mutual funds decreasing 12.4%, partially offset by a shift in product mix from mutual funds with lower distribution rates to mutual funds with higher distribution rates. Distribution revenues increased $122.5 million, or 23.1%, in 2021, primarily due to the corresponding average AUM of these mutual funds increasing 10.0%, offset by the impact of a shift in product mix from mutual funds that have higher distribution rates to mutual funds with lower distribution rates.
Distribution revenues increased $6.5 million, or 1.6%, in 2018, primarily due to the corresponding average AUM of these mutual funds increasing 4.5%, offset by the impact of a shift in product mix. Average AUM for Japan and Taiwan domiciled funds increased 35.1%, while average AUM of B-share and C-share mutual funds (which have higher distribution rates than A- share mutual funds, as well as other funds not domiciled in the U.S. or Luxembourg) decreased 22.5%17.2%.
Dividend and Interest Income and Interest Expense
Dividend and interest income consists primarily of investment income and interest earned on customer margin balances and U.S. Treasury Bills as well as dividend and interest income in our consolidated company-sponsored investment funds. Interest expense principally reflects interest accrued on cash balances in customers’ brokerage accounts.
Dividend and interest income increased $6.2$84.4 million or 6.3%, in 2019,2022, primarily due to higher interest earned on customer margin balances, andhigher interest earned on U.S. Treasury Bills offset by loweras well as higher dividend and interest income in our consolidated company-sponsored investment funds. Interest expense increased $4.8$62.8 million or 9.2%, in 2019,2022, due to higher interest paid on cash balances in customers' brokerage accounts.
Dividend and interest income increased $27.1decreased $12.2 million, or 38.0%23.9%, in 2018,2021, primarily due to higherlower interest earned on customer margin balances and U.S. Treasury Bills.Bills as well as lower dividend and interest income in our consolidated company-sponsored investment funds. Interest expense increased $27.2decreased $12.0 million, or 76.4%, in 2018,2021, due to higherlower interest paid on cash balances in customers' brokerage accounts.
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Investment Gains (Losses)
Investment gains (losses) consist primarily of realized and unrealized investment gains or losses on: (i) employee long-term incentive compensation-related investments, (ii) U.S. Treasury Bills, (iii) market-making in exchange-traded options and equities, (iv) seed capital investments, (v) derivatives and (vi) investments in our consolidated company-sponsored investment funds. Investment gains (losses) also include equity in earnings of proprietary investments in limited partnership hedge funds that we sponsor and manage.

Investment gains (losses) are as follows:
Years Ended December 31
202220212020
(in thousands)
Long-term incentive compensation-related investments:Long-term incentive compensation-related investments:
Realized gainsRealized gains$1,345 $2,213 $2,655 
Unrealized (losses) gainsUnrealized (losses) gains(10,626)2,446 2,914 
Years Ended December 31,
2019 2018 2017
(in thousands)
Long-term incentive compensation-related investments     
Realized gains$1,672
 $2,512
 $2,214
Unrealized (losses) gains5,859
 (8,032) 5,723
     
Investments held by consolidated company-sponsored investment funds     
Investments held by consolidated company-sponsored investment funds:Investments held by consolidated company-sponsored investment funds:
Realized (losses) gains9,378
 (1,134) 59,669
Realized (losses) gains(46,293)(2,341)3,357 
Unrealized gains36,150
 14,217
 36,340
Unrealized (losses)Unrealized (losses)(73,194)(1,882)(854)
     
Seed capital investments 
  
  
Seed capital investments:Seed capital investments: 
Realized gains (losses) 
  
  
Realized gains (losses) 
Seed capital and other17,301
 (943) 24,822
Seed capital and other17,272 20,263 25,002 
Derivatives(30,320) 7,001
 (22,395)Derivatives41,236 (22,313)(30,343)
Unrealized gains (losses) 
  
  
Unrealized (losses) gainsUnrealized (losses) gains 
Seed capital and other7,510
 (15,003) (9,713)Seed capital and other(31,261)(6,907)(12,387)
Derivatives(8,013) 5,384
 (1,478)Derivatives(177)8,992 (5,220)
     
Brokerage-related investments 
  
  
Realized losses(1,209) (1,410) (2,796)
Brokerage-related investments:Brokerage-related investments: 
Realized (losses)Realized (losses)(1,384)(829)(1,188)
Unrealized gains (losses)331
 61
 (284)Unrealized gains (losses)669 (278)(337)
$38,659
 $2,653
 $92,102
 $(102,413)$(636)$(16,401)
Other Revenues
Other revenues consist of fees earned for transfer agency services provided to company-sponsored mutual funds, fees earned for administration and recordkeeping services provided to company-sponsored mutual funds and the general accountsGeneral Accounts of EQH and its subsidiaries, and other miscellaneous revenues. Other revenues decreased $1.1$2.9 million, or 1.1%2.6%, in 2019,2022, primarily due to lower brokerage income and lower investment income related to our consolidated company-sponsored investment funds, partially offset by higher shareholder servicing fees. Other revenues increased $1.5$3.7 million, or 1.6%3.5%, in 2018,2021, primarily due to higher shareholder servicing fees, and higher mutual fund reimbursements.partially offset by lower brokerage income.

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Expenses
The components of expenses are as follows:
 Years Ended December 31% Change
 2022202120202022-212021-20
 (in thousands)  
Employee compensation and benefits1,666,636 $1,716,013 $1,494,198 (2.9)%14.8 %
Promotion and servicing:     
Distribution-related payments629,572 708,117 569,283 (11.1)24.4 
Amortization of deferred sales commissions34,762 34,364 27,355 1.2 25.6 
Trade execution, marketing, T&E and other215,556 197,486 189,787 9.2 4.1 
 879,890 939,967 786,425 (6.4)19.5 
General and administrative641,635 555,608 491,070 15.5 13.1 
Contingent payment arrangements6,563 2,710 1,855 142.2 46.1 
Interest on borrowings17,906 5,145 6,180 n/a(16.7)
Amortization of intangible assets26,564 5,697 21,372 n/a(73.3)
Total$3,239,194 $3,225,140 $2,801,100 0.4 15.1 
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands)  
  
Employee compensation and benefits$1,442,783
 $1,378,811
 $1,313,469
 4.6 % 5.0 %
Promotion and servicing: 
  
  
  
  
Distribution-related payments487,965
 427,186
 411,467
 14.2
 3.8
Amortization of deferred sales commissions15,029
 21,343
 31,886
 (29.6) (33.1)
Trade execution, marketing, T&E and other219,860
 222,630
 213,275
 (1.2) 4.4
 722,854
 671,159
 656,628
 7.7
 2.2
General and administrative: 
  
  
  
  
General and administrative484,750
 448,996
 481,488
 8.0
 (6.7)
Real estate charges3,324
 7,160
 36,669
 (53.6) (80.5)
 488,074
 456,156
 518,157
 7.0
 (12.0)
Contingent payment arrangements(510) (2,219) 267
 (77.0) n/m
Interest on borrowings13,035
 10,359
 8,194
 25.8
 26.4
Amortization of intangible assets28,759
 27,781
 27,896
 3.5
 (0.4)
Total$2,694,995
 $2,542,047
 $2,524,611
 6.0
 0.7
Employee Compensation and Benefits
Employee compensation and benefits consist of base compensation (including salaries and severance), annual short-term incentive compensation awards (cash bonuses), annual long-term incentive compensation awards, commissions, fringe benefits and other employment costs (including recruitment, training, temporary help and meals).
Compensation expense as a percentage of net revenues was 41.0%41.1%, 40.9%38.6% and 39.8%40.3% for the years ended December 31, 2019, 20182022, 2021 and 2017,2020, respectively. Compensation expense generally is determined on a discretionary basis and is primarily a function of our firm’s current-year financial performance. The amounts of incentive compensation we award are designed to motivate, reward and retain top talent while aligning our executives' interests with the interests of our Unitholders. Senior management, together with the approval of the Compensation and Workplace Practices Committee of the Board of Directors of AllianceBernstein Corporation (“Compensation Committee”), periodically confirmscontinue to believe that the appropriate metric to consider in determining the amount of incentive compensation is the ratio of adjusted employee compensation and benefits expense to adjusted net revenues. Adjusted net revenues used in the adjusted compensation ratio are the same as the adjusted net revenues presented as a non-GAAP measure (discussed earlier in this Item 7). Adjusted employee compensation and benefits expense is total employee compensation and benefits expense minus other employment costs such as recruitment, training, temporary help and meals (which were 1.2%1.1%, 1.1%0.9% and 1.1%0.9% of adjusted net revenues for 2019, 20182022, 2021 and 2017,2020, respectively), and excludes the impact of mark-to-market vesting expense, as well as dividends and interest expense, associated with employee long-term incentive compensation-related investments and the amortization expense associated with the awards issued by EQH to some of our firm's CEOexecutives relating to his roletheir roles as a membermembers of the EQH Management Committee. Senior management, with the approval of the Compensation Committee, has established as an objective that adjusted employee compensation and benefits expense, excluding the impact of performance-based fees, generally should not exceed 50% of our adjusted net revenues in any year, except in unexpected or unusual circumstances. Our ratios of adjusted compensation expense as a percentage of adjusted net revenues were 47.9%48.4%, 47.5%46.5% and 47.1%47.9%, respectively, for the years ended December 31, 2019, 20182022, 2021 and 2017.2020.
In 2019,2022, employee compensation and benefits expense decreased $49.4 million, or 2.9%, primarily due to lower incentive compensation of $107.7 million, partially offset by higher base compensation of $39.8 million, higher commissions of $12.7 million and higher other employment costs of $5.3 million. In 2021, employee compensation and benefits expense increased $64.0$221.8 million, or 4.6%, primarily due to higher base compensation of $34.1 million (primarily higher salaries), higher incentive compensation of $17.4 million and higher fringes of $15.6 million, partially offset by lower commissions of $3.2 million. In 2018, employee compensation and benefits expense increased $65.3 million, or 5.0%14.8%, primarily due to higher incentive compensation of $19.3 million, higher commissions of $19.0$124.6 million, higher base compensation of $14.7$48.9 million, (primarily higher salaries), andcommissions of $25.0 million, higher fringes of $7.4$20.1 million and higher other employment costs of $3.3 million.


Promotion and Servicing
Promotion and servicing expenses include distribution-related payments to financial intermediaries for distribution of AB mutual funds and amortization of deferred sales commissions paid to financial intermediaries for the sale of back-end load shares of AB mutual funds. Also included in this expense category are costs related to trade execution and clearance, travel and entertainment, advertising and promotional materials.
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Promotion and servicing expenses decreased $60.1 million, or 6.4%, in 2022. The decrease was primarily due to lower distribution-related payments of $78.5 million, lower transfer fees of $4.9 million and lower trade execution and clearance expenses of $3.1 million, partially offset by higher travel and entertainment expenses of $15.4 million and higher firm meeting expenses of $8.8 million. Promotion and servicing expenses increased $51.7$153.5 million, or 7.7%19.5%, in 2019.2021. The increase primarily was due to higher distribution-related payments of $60.8$138.8 million, and higher travel and entertainment expensestransfer fees of $3.2$10.1 million, offset by lowerhigher amortization of deferred sales commissions of $6.3$7.0 million and higher marketing expenses of $4.9 million, partially offset by lower trade execution and clearance expenses of $3.7 million and lower marketing expenses of $2.5 million. Promotion and servicing expenses increased $14.5 million, or 2.2%, in 2018. The increase primarily was due to higher distribution-related payments of $15.7 million, higher marketing expenses of $4.5 million and higher trade execution and clearance expenses of $4.5 million, offset by lower amortization of deferred sales commissions of $10.5$7.4 million.
General and Administrative
General and administrative expenses include portfolio services expenses,fees, technology expenses,fees, professional fees and office-related expenses (occupancy, communications and similar expenses). General and administrative expenses as a percentage of net revenues were 13.9%15.8%, 13.5%12.5% and 15.7%13.2% for the years ended December 31, 2019, 20182022, 2021 and 2017,2020, respectively. General and administrative expenses increased $31.9$86.0 million, or 7.0%15.5%, during 2019,in 2022. The increase was primarily due to higher professional fees of $27.3 million, higher portfolio services fees of $21.3 million, higher technology fees of $19.1 million, a valuation adjustment of $7.4 million associated with the classification of BRS as held for sale, higher office-related expenses of $6.9 million and a $5.6 million impairment of certain acquisition related intangible assets. General and administrative expenses increased $64.5 million, or 13.1%, in 2021. The increase was primarily due to higher portfolio service feesservices of $11.2$34.0 million, higher technology fees of $11.0$14.3 million, andhigher office-related expenses of $7.6 million, higher professional fees of $7.0 million. General and administrative expenses decreased $62.0 million, or 12.0%, during 2018, primarily due to lower real estate charges of $29.5 million, the lack of a $19.7 million vendor termination fee recorded in 2017, lower rent expense of $5.0 million, lower exchange rate losses of $2.8$6.6 million and an unfavorable foreign exchange translation impact of $5.2 million, partially offset by lower errorscharitable contributions of $2.7$4.9 million.
Contingent Payment Arrangements
Contingent payment arrangements reflect changes in estimates of contingent payment liabilities associated with acquisitions in current and previous periods, as well as accretion expense of these liabilities. In 2022, we recognized $6.6 million in accretion expense related to our contingent considerations payable. The creditexpense of $0.5$2.7 million for 20192021 reflects accretion expense of $3.3 million, offset by the change in estimate of the contingent consideration payable relating to our 2016 acquisition of $3.1 million, offset by accretion expenses of $2.6 million. The credit of $2.2 million for 2018 reflects the change in estimate of the contingent consideration payable relating to our 2016 acquisition of $2.4 million, offset by accretion expenses of $0.2 million. The expense of $0.3 million for 2017 reflects accretion expenses of $0.5 million, offset by a change in estimate of the contingent consideration payable relating to our 2010 acquisition of $0.2$0.6 million.
Interest on Borrowings
Interest expense increased 25.8%$12.8 million in 2019,2022, reflecting bothhigher interest rates on borrowings and higher weighted average borrowings. Average daily borrowings for the EQH facilities and commercial paper were $845.5 million at a weighted average interest rates.rate of 1.7% during 2022 compared to $561.6 million and 0.2% during 2021.
Interest expense decreased $1.0 million, or 16.7%, in 2021, reflecting lower interest rates partially offset by higher weighted average borrowings. Average daily borrowings for both the EQH facility and commercial paper were $436.9$561.6 million at a weighted average interest rate of 2.5%0.2% during 20192021 compared to $350.3$554.0 million and 2.0% for commercial paper0.5% during 2018. Interest expense2020.
Amortization of Intangible Assets
Amortization of intangible assets reflects our amortization of costs assigned to acquired investment management contracts with a finite life. These assets are recognized at fair value and generally are amortized on a straight-line basis over their estimated useful life. On July 1, 2022, AB acquired CarVal, which resulted in recording of $303.0 million of finite-lived intangible assets primarily relating to investment management contracts and investor relationships with useful lives ranging from 5 to 10 years (see Note 24 Acquisitions and Divestitures to our consolidated financial statements in Item 8). Amortization of intangible assets increased 26.4%$20.9 million in 2018, reflecting higher weighted average interest rates on commercial paper borrowings. Average daily borrowings2022. The increase was primarily due to the acquired intangible assets associated with the CarVal acquisition. Amortization of commercial paper during 2018 and 2017 were $350.3intangible assets decreased $15.7 million, and $482.2 million, respectively, with weighted average interest ratesor 73.3%, in 2021. The decrease in the prior year was primarily due to the full amortization of 2.0% and 1.2%, respectively.intangible assets related to the Bernstein acquisition.
Income Taxes
AB, a private limited partnership, is not subject to federal or state corporate income taxes. However, AB is subject to a 4.0% New York City unincorporated business tax (“UBT”). Our domestic corporate subsidiaries are subject to federal, state and local income taxes, and generally are included in the filing of a consolidated federal income tax return. Separate state and local income tax returns also are filed. Foreign corporate subsidiaries generally are subject to taxes in the jurisdictions where they are located.
Income tax expense decreased $4.1$23.1 million, or 8.9%36.8%, in 20192022 compared to 2018.2021. This decrease is due to lower pre-tax book income and one-time discrete items which resulted in a lower effective tax rate in 20192022 of 5.1%4.9% compared to 5.6%5.2% in 2018. The decrease in our effective tax rate was driven by a more favorable mix of earnings across the AB tax filing groups and a reduction of one-time discrete items.2021.
Income tax expense decreased $7.3$17.1 million, or 13.7%37.4%, in 20182021 compared to 2017.2020. This decreaseincrease is due to higher pre-tax book income which resulted in a lowerhigher effective tax rate in 20182021 of 5.6%5.2% compared to 6.9%5.0% in 2017 and higher pre-tax income. The decrease in our effective tax rate was driven by the impact2020.
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Net (Loss) Income (Loss) of Consolidated Entities Attributable to Non-Controlling Interests
Net (loss) income (loss) of consolidated entities attributable to non-controlling interests primarily consists of limited partner interests owned by other investors in our consolidated company-sponsored investment funds. In 2019, 2018 and 2017,2022, we had $29.6$56.4 million $21.9 million and $58.4 million, respectively, of net gainsloss of consolidated entities attributable to non-controlling interests, primarily due to losses on investments held by our consolidated company-sponsored investment funds. In 2021, we had $5.1 million of net income of consolidated entities attributable to non-controlling interests, primarily due to gains on investments held by our consolidated company-sponsored investment funds. Fluctuations period-to-period resultIn 2020 we had $4.2 million of net losses of consolidated entities attributable to non-controlling interests, primarily from the number ofdue to losses on investments held by our consolidated company-sponsored investment funds and their respective market performance.funds.
Capital Resources and Liquidity
Cash flows from operating activities primarily include the receipt of investment advisory and services fees and other revenues offset by the payment of operating expenses incurred in the normal course of business. Our cash flows from operating activities have historically been positive and sufficient to support our operations. We do not anticipate this to change in the foreseeable future. Cash flows from investing activities generally consist of small capital expenditures and, when applicable, business acquisitions. Cash flows from financing activities primarily consist of issuance and repayment of debt and the repurchase of AB Holding units to fund our long-term deferred compensation plans. We are required to distribute all of our Available Cash Flow to our Unitholders and the General Partner.
During 2019,2022, net cash provided by operating activities was $827.5 million,$1.1 billion, compared to $1.3 billion during 2018.2021. The change primarily was due to lower earnings of $265.1 million (after non-cash reconciling items), a decrease in accrued compensation of $200.8 million and a decrease in broker-dealer related payables (net of receivable and segregated U.S. Treasury Bills activity) of $754.8$169.2 million, andpartially offset by net activity of our consolidated company-sponsored investment funds of $427.6$252.0 million offset by lower net purchasesand an increase in fees receivable of broker-dealer investments of $754.7$193.3 million. During 2018,2021, net cash provided by operating activities was $1.3 billion, compared to $645.5 million$1.5 billion during 2017.2020. The change primarily was due to net activity of our consolidated company-sponsored investment funds of $560.6 million, an increase in other assets of $75.7 million and higher net purchases of broker-dealer investments of $33.3 million, partially offset by higher earnings of $346.2 million, an increase in broker-dealer related payables (net of receivable and segregated U.S. Treasury Bills activity) of $618.8 million, a decrease in net activity of our consolidated company-sponsored investment funds of $467.3 million and higher cash provided by net income of $75.5 million, offset by higher net purchases of broker-dealer investments of $294.7$72.9 million and an increase in broker dealer deposits with clearing organizationsaccounts payable and accrued expenses of $150.5$25.2 million.
During 2019,2022, net cash used in investing activities was $23.0$22.0 million, compared to $32.8$65.7 million during 2018.2021. The change is primarily due to the acquisition of Autonomous,CarVal, net of cash acquired of $5.3 million.$40.3 million in 2022. During 2018,2021, net cash used in investing activities was $32.8$65.7 million, compared to $39.3$59.1 million during 2017.2020. The change is primarily reflects lowerdue to higher purchases of furniture, equipment and leasehold improvements of $6.6$20.4 million, partially offset by lower cash paid for acquisitions, net of cash acquired, of $9.8 million and lower purchases of equity method investments of $4.1 million.
During 2019,2022, net cash used in financing activities was $775.0 million,$1.1 billion, compared to $1.6$0.9 billion during 2018.2021. The change reflects lower net purchases of non-controlling interests of consolidated company-sponsored investment funds in 2022 of $309.9 million, repayment of CarVal debt subsequent to acquisition of $42.7 million and an decrease in overdrafts payable of $41.6 million, partially offset by higher net borrowings of debt of $155.0 million and a decrease in the net purchases of AB Holding Units to fund long-term incentive compensation plans of $51.3 million.During 2021, net cash used in financing activities was $0.9 billion, compared to $1.1 billion during 2020. The change reflects the net purchases of non-controlling interests of consolidated company-sponsored investment funds in 20192021 as compared to net redemptions of non-controlling interests of consolidated company-sponsored investment funds in 20182020 (impact of $622.2$532.7 million), lowerpartially offset by higher distributions to the General Partner and Unitholders of $154.7$223.0 million as a result of higher earnings (distributions on earnings are paid one quarter in arrears) and loweran increase in the net purchases of AB Holding Units to fund long-term incentive compensation plan awardsplans of $95.5$113.2 million.During 2018, net cash used in financing activities was $1.6 billion, compared to $623.9 million during 2017. The change reflects the net redemptions of non-controlling interests of consolidated company-sponsored investment funds in 2018 as compared to net purchases of non-controlling interests of consolidated company-sponsored investment funds in 2017 (impact of $635.3 million), higher distributions to the General Partner and Unitholders of $214.1 million and net repayments of bank loans in 2018 as compared to net proceeds from bank loans in 2017 (impact of $125.0 million).
As of December 31, 2019,2022, AB had $679.7 million$1.1 billion of cash and cash equivalents (excluding cash and cash equivalents of consolidated company-sponsored investment funds)funds and cash held for sale), all of which is available for liquidity but consist primarily of cash on deposit for our broker-dealers related to various customer clearing activities and cash held by foreign subsidiaries of $448.4$497.0 million.
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Debt and Credit Facilities
AB has an $800.0 million committed, unsecured senior revolving credit facility (the "See Note 12 to our consolidated financial statements in Item 8Credit Facility") with a group of commercial banks and other lenders, which matures on September 27, 2023. The Credit Facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $200.0 million; any such increase is subject to the consent of the affected lenders. The Credit Facility is available for AB and Sanford C. Bernstein & Co., LLC ("SCB LLC") business purposes, including the support of AB’s commercial paper program. Both AB and SCB LLC can draw directly under the Credit Facility and management may draw on the Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the Credit Facility.
The Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2019, we were in compliance with these covenants. The Credit Facility also includes customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender’s commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the Credit Facility would automatically become immediately due and payable, and the lender’s commitments automatically would terminate.
Amounts under the Credit Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. Voluntary prepayments and commitment reductions requested by us are permitted at any time without a fee (other than customary breakage costsdisclosures relating to the prepayment of any drawn loans) upon proper noticeour debt and subject to a minimum dollar

requirement. Borrowings under the Credit Facility bear interest at a rate per annum, which will be, at our option, a rate equal to an applicable margin, which is subject to adjustment based on the credit ratings of AB, plus one of the following indices: London Interbank Offered Rate; a floating base rate; or the Federal Funds rate.
As of December 31, 2019 and 2018, we had no amounts outstanding under the Credit Facility. During 2019 and 2018, we did not draw upon the Credit Facility.
In addition to the Credit Facility, on November 4, 2019, AB established a $900.0 million committed, unsecured senior credit facility (“facilities.EQH Facility”) with EQH. The EQH Facility matures on November 4, 2024 and is available for AB's general business purposes. Borrowings under the EQH Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates.
The EQH Facility contains affirmative, negative and financial covenants which are substantially similar to those in AB’s committed bank facilities. The EQH Facility also includes customary events of default substantially similar to those in AB’s committed bank facilities, including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or the lender’s commitment may be terminated.
Amounts under the EQH Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. AB or EQH may reduce or terminate the commitment at any time without penalty upon proper notice. EQH also may terminate the facility immediately upon a change of control of our general partner.
As of December 31, 2019, AB had $560.0 million outstanding under the EQH Facility with an interest rate of approximately 1.6%. Average daily borrowings on the EQH Facility during 2019 for the 57 days it was available were $358.6 million with a weighted average interest rate of approximately 1.6%.
As of December 31, 2019, we had no commercial paper outstanding. As of December 31, 2018, AB had $523.2 million in commercial paper outstanding with a weighted average interest rate of approximately 2.7%. The commercial paper is short term in nature, and as such, recorded value is estimated to approximate fair value (and considered a Level 2 security in the fair value hierarchy). Average daily borrowings of commercial paper for the 317 days commercial paper was outstanding in 2019 was $438.6 million with a weighted average interest rate of 2.6%. Average daily borrowings for 2018 were $350.3 million with a weighted average interest rate of approximately 2.0%.
AB has a $200.0 million committed, unsecured senior revolving credit facility (the "Revolver") with a leading international bank, which matures on November 16, 2021. The Revolver is available for AB's and SCB LLC's business purposes, including the provision of additional liquidity to meet funding requirements primarily related to SCB LLC's operations. Both AB and SCB LLC can draw directly under the Revolver and management expects to draw on the Revolver from time to time. AB has agreed to guarantee the obligations of SCB LLC under the Revolver. The Revolver contains affirmative, negative and financial covenants that are identical to those of the Credit Facility. As of December 31, 2019 we had no amounts outstanding under the Revolver. As of December 31, 2018, we had $25.0 million outstanding under the Revolver with an interest rate of 3.4%. Average daily borrowings for 2019 and 2018 were $23.5 million and $19.4 million, respectively, with weighted average interest rates of 3.2% and 2.8%, respectively.
In addition, SCB LLC currently has three uncommitted lines of credit with three financial institutions. Two of these lines of credit permit us to borrow up to an aggregate of approximately $175.0 million, with AB named as an additional borrower, while the other line has no stated limit. As of December 31, 2019 and 2018, SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings on the lines of credit during 2019 and 2018 were $1.9 million and $2.7 million, respectively, with weighted average interest rates of approximately 1.9% and 1.6%, respectively.
Our financial condition and access to public and private debt markets should provide adequate liquidity for our general business needs. Management believes that cash flow from operations and the issuance of debt and AB Units or AB Holding Units will provide us with the resources we need to meet our financial obligations. See “Risk Factors” in Item 1A and “Cautions Regarding Forward-Looking Statements” in this Item 7 for a discussion of credit markets and our ability to renew our credit facilities at expiration.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Guarantees
Under various circumstances, AB guarantees the obligations of its consolidated subsidiaries.

AB maintains guaranteesa guarantee in connection with the an $800 million committed, unsecured senior revolving credit facility (the "Credit Facility and Revolver."). If SCB LLC is unable to meet its obligations, AB will pay the obligations when due or on demand. In addition,SCB LLC currently has five uncommitted lines of credit with five financial institutions. Four of these lines of credit permit us to borrow up to an aggregate of approximately $315.0 million, with AB named as an additional borrower, while the other line has no stated limit. AB has guaranteed the obligations of SCB LLC under these lines of credit. AB maintains guarantees totaling $375$415.0 million for SCB LLC’s threefive uncommitted lines of credit.
AB maintains a guarantee with a commercial bank, under which we guarantee the obligations in the ordinary course of business of each of SCB LLC, our U.K.-based broker-dealer and our Cayman subsidiary. We also maintain fourthree additional guarantees with other commercial banks under which we guarantee approximately $387$263.4 million of obligations for our U.K.-based broker-dealer and $99$99.0 million of obligations for our India-based broker-dealer. In the event that any of these fourthree entities is unable to meet its obligations, AB will pay the obligations when due or on demand.
We also have two smaller guarantees with a commercial bank totaling approximately $1.5$1.9 million, under which we guarantee certain obligations in the ordinary course of business of one of our foreign subsidiaries.
We have not been required to perform under any of the above agreements and currently have no liability in connection with these agreements.
Aggregate Contractual Obligations
Our contractual obligations as of December 31, 2019 are as follows:
 Payments Due by Period
 Total 
Less than
1 Year
 1-3 Years 3-5 Years 
More than
5 Years
 (in millions)
EQH credit facility$560.0
 $560.0
 $—
 $—
 $—
Leases, net of sublease commitments978.0
 83.3
 151.2
 124.3
 619.2
Funding commitments10.1
 10.1
 —
 —
 —
Accrued compensation and benefits254.8
 168.1
 54.3
 14.7
 17.7
Unrecognized tax benefits(1)
5.7
 2.9
 —
 2.8
 —
Federal transition tax (1)
16.5
 1.6
 3.2
 7.0
 4.7
Total$1,825.1
 $826.0
 $208.7
 $148.8
 $641.6
(1)See Note 21 to our consolidated financial statements in Item 8 for discussion of unrecognized tax benefits and federal transition tax.
During 2010, as general partner of AllianceBernstein U.S. Real Estate L.P. (“Real Estate Fund”), we committed to invest $25$25.0 million in the Real Estate Fund. As of December 31, 2019,2022, we had funded $22.4 million of this commitment. During 2014, as general partner of AllianceBernstein U.S. Real Estate II L.P. (“Real Estate Fund II”), we committed to invest $28.0$27.3 million, as amended in 2015,2020, in the Real Estate Fund II. As of December 31, 2019,2022, we had funded $19.9$21.6 million of this commitment.
We have various compensation and benefit obligations, including accrued salaries and fringes, commissions, payroll taxes, incentive payments and deferred compensation arrangements. The majority of our compensation and benefits obligations are paid out in less than one year, while the deferred compensation obligations are payable over various periods, with the majority payable over periods of up to three years. Accrued compensation and benefits amounts in the table above excludeas of December 31, 2022 totaled $399.3 million. This amount excludes our accrued pension obligation. Offsetting our accrued compensation obligations are long-term incentive compensation-related investments and money market investments we funded totaling $57.9$49.2 million, which are included in our consolidated statement of financial condition. Any amounts reflected on the consolidated statement of financial condition as payables (to broker-dealers, brokerage clients and company-sponsored mutual funds) and accounts payable and accrued expenses (excluding the tax obligations above) are excluded from the table above.aforementioned accrued compensation and benefits obligation amount.
We expect to make contributions to our qualified profit sharing plan of approximately $15$17.5 million in each of the next four years. We do not currently anticipate that we will contribute to the Retirement Plan during 2020.2023.
During OctoberThe 2017 Tax Act (enacted in the U.S. on December 22, 2017) imposed a federal transition tax on mandatory deemed repatriation of certain deferred foreign earnings. Management elected to pay the transition tax in installments over an eight-year period from 2018 we signedto 2025. The federal transition tax obligation as of December 31, 2022 totaled $11.7 million and is recorded to income tax payable on our consolidated statement of financial condition. See Note 21 to our consolidated financial statements in Item 8 for further discussion of our taxes.
See Note 13 to our consolidated financial statements in Item 8 for discussion of our leases.
See Note 12 to our consolidated financial statements in Item 8 for a lease, which commences in mid-2020, relating to 218,976 square feetdiscussion of space at our new Nashville headquarters. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 15 year initial lease term is $134 million. During April 2019, we signed a lease, which commences in 2024, relating to approximately 190,000 square feetdebt.
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Table of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 year lease term is approximately $448 million.Contents

Part II


Contingencies
See Note 14 to our consolidated financial statements in Item 8 for a discussion of our commitments and contingencies.
Critical Accounting Estimates
The preparation of the consolidated financial statements and notes to consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses.
Management believes that the critical accounting policies and estimates discussed below involve significant management judgment due to the sensitivity of the methods and assumptions used.
Goodwill
Our acquisitions are accounted for under the acquisition method of accounting, where the cost of the acquisition is allocated on the basis of the estimated fair value of the assets acquired and the liabilities assumed. The excess of the purchase price over the fair value of identifiable assets acquired, net of liabilities assumed, results in the recognition of goodwill.
On July 1, 2022, AB Holding acquired a 100% ownership interest in CarVal Investors L.P. (“CarVal”). Immediately following its acquisition of CarVal (the "CarVal acquisition"), AB Holding contributed 100% of its equity interests in CarVal to AB in exchange for AB Units (see Note 24 Acquisitions and Divestitures to our consolidated financial statements in Item 8).
On November 22, 2022, AB and SocGen, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As such, the BRS business has been classified as held for sale and $159.8 million of goodwill recorded on the consolidated statement of financial condition has been allocated to the held for sale disposal group. As AB is a single reporting unit, we have allocated goodwill to the disposal group based on the relative fair values of (1) the disposal group and (2) the portion of the reporting unit that will be retained. For further discussion, see Note 24 Acquisitions and Divestitures to our consolidated financial statements in Item 8.
As of December 31, 2019,2022, we had goodwill of $3.1$3.6 billion on the consolidated statement of financial condition, which included $666.1 million as a result of the CarVal acquisition in the third quarter of 2022, $2.8 billion as a result of the Sanford C. Bernstein Inc. (“Bernstein”) acquisition in 2000 and $291.9 million in regard to various smaller acquisitions. Approximately $159.8 million of goodwill has been classified as assets held for sale on the consolidated statement of financial condition.
We have determined that AB has only one reporting segment and reporting unit. We test our goodwill annually, as of September 30, for impairment. As of September 30, 2019, the impairment test indicated that goodwill was not impaired.or if certain events or changes in circumstances occur and trigger an interim impairment test. The carrying value of goodwill is also reviewed if facts and circumstances occur that suggest possible impairment, such as, but not limited to significant transactions including acquisitions or divestitures and significant declines in AUM, revenues, earnings or the price of an AB Holding Unit.
On an annual basis, Any of these changes in circumstances could suggest the possibility that goodwill is impaired, but none of these events or when circumstances warrant, we perform step oneby itself would indicate that it is more likely than not that goodwill is impaired. Instead, they are merely recognized as triggering events for the consideration of our two-step goodwill impairment test. The first stepand must be viewed in combination with any mitigating or positive factors. A holistic evaluation of all events since the goodwillmost recent quantitative impairment test must be done to determine whether it is used to identify potential impairment by comparing the fair value of AB,more likely than not that the reporting unit with its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill is not considered to be impaired and the second step of theimpaired.
For our annual impairment test, is not performed. However, if the carrying value of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit to the aggregated fair values of its individual assets and liabilities to determine the amount of impairment, if any.
AB estimates its fair value under bothwe utilize the market approach and income approach. Under the market approach,where the fair value of the reporting unit is based on its unadjusted market valuation (AB Units outstanding multiplied by the price of an AB Holding Unit) and adjusted market valuations assuming a control premiumHolding's Unit price) and earnings multiples. The price of a publicly-tradedpublicly traded AB Holding Unit serves as a reasonable starting point for valuing an AB Unit because each represents the same fractional interest in our underlying business. Our market approach analysis also includes control premiums, which are based on an analysis of control premiums for relevant recent acquisitions, and comparable industry earnings multiples applied to our earnings forecast. forecast and assumes a control premium (when applicable).
The announcement of the joint venture between AB and SocGen and classification of the BRS business as held for sale during the fourth quarter of 2022 was a triggering event requiring an interim impairment test; as such, we tested our goodwill as of December 31, 2022. The impairment test indicated that goodwill was not impaired.
Under ASU 2017-04, Simplifying the income approach,Test for Goodwill Impairment, a goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Under this guidance, the goodwill impairment test no longer includes a determination by management of whether a decline in fair value is temporary. However, it is important that management's determination of fair value reflect the impact of changing market conditions, including the severity and anticipated duration of any such changes.
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Business Combinations
We account for business combinations using the acquisition method of accounting whereby the identifiable assets and liabilities of the acquired business, as well as any noncontrolling interest in the acquired business, are recorded at their estimated fair values as of the date that we obtain control of the acquired business. Any purchase consideration in excess of the estimated fair values of the net assets acquired is recorded as goodwill. Acquisition-related expenses are expensed as incurred.
Often, as part of the business combination, intangible assets are recorded based on their estimated fair value at the time of acquisition and primarily relate to acquired investment management contracts. We periodically review indefinite-lived intangible assets for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, we perform additional impairment tests to measure the amount of the impairment loss, if any.
We periodically enter into contingent payment arrangements in connection with our business combinations. In these arrangements, we agree to pay additional consideration to the sellers to the extent that certain performance targets are achieved. We estimate the fair value of these potential future obligations at the reporting unittime a business combination is basedconsummated and record a liability on a discounted basis on our consolidated statement of financial condition. We then accrete the obligation to its expected payment amount over the measurement period. If our expected payment amount subsequently changes, the obligation is modified in the current period resulting in a gain or loss. Both gains and losses resulting from changes to expected payments and the accretion of these obligations to their expected payment amounts are reflected within contingent payment arrangements in our consolidated statements of income.
Several valuation methods may be used to determine the fair value of assets acquired and liabilities assumed. For intangible assets and contingent liabilities, we typically use a method that is a form of the income approach, whereby a forecast of future cash flows attributable to the asset are discounted to present value using a risk-adjusted discount rate. Similarly for contingent liabilities, we develop a forecast of estimatedfuture cash flows attributable to the performance objectives that are then discounted to present value using a risk-adjusted discount rate. Some of the more significant estimates and assumptions inherent in the income approach include the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows. DeterminingSee Note 24 Acquisitions and Divestitures to our consolidated financial statements in Item 8.
Assets and Liabilities Held for Sale
The Company classifies assets and liabilities to be sold (disposal group) as held for sale in the period when all of the applicable criteria are met, including: (i) management commits to a plan to sell, (ii) the disposal group is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the disposal group is being actively marketed at a reasonable price in relation to its fair value, (v) significant changes to the plan to sell are unlikely, and (vi) the sale of the disposal group is generally probable of being completed within one year. Management performs an assessment of held for sale at least quarterly or when events or changes in business circumstances indicate that a change in classification may be necessary. Assets and liabilities held for sale are presented separately within the consolidated statements of financial condition with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell. Depreciation of property, plant and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each reporting period the disposal group remains classified as held for sale, the carrying value of the disposal group is adjusted for subsequent changes in fair value less costs to sell. A loss is recognized for any subsequent decrease in fair value less costs to sell, while a gain is recognized in any subsequent period for any subsequent increase in fair value less cost to sell, but not in excess of the cumulative loss previously recognized. If, in any period, the carrying value of the disposal group exceeds the estimated fair value usingless costs to sell, a discounted cash flow valuation technique consists of applying business growth rate assumptions over the estimated life of the goodwill asset and then discounting the resulting expected cash flows usingloss is recognized on sale rather than an estimated weighted average cost of capital of market participants to arrive at a present value amount that approximates fair value.impairment loss.
Loss Contingencies
Management continuously reviews with legal counsel the status of regulatory matters and pending or threatened litigation. We evaluate the likelihood that a loss contingency exists and record a loss contingency if it is both probable and reasonably estimable as of the date of the financial statements. See Note 14 to our consolidated financial statements in Item 8.
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Accounting Pronouncements
See Note 2 to our consolidated financial statements in Item 8.
Cautions Regarding Forward-Looking Statements
Certain statements provided by management in this report are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but are not limited to, the following: the performance of financial markets, the investment performance of sponsored investment products and separately-managedseparately managed accounts, general economic conditions, industry trends, future acquisitions, integration of acquired companies, competitive conditions and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly-traded partnerships are taxed. We caution readers to carefully consider such factors. Further, these forward-looking statements speak only as of the date on which such statements are made; we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. For further information regarding these forward-looking statements and the factors that could cause actual results to differ, see “Risk Factors” in Item 1A. Any or all of the forward-looking statements that we make in this

Form 10-K, other documents we file with or furnish to the SEC, and any other public statements we issue, may turn out to be wrong. It is important to remember that other factors besidesthose listed in “Risk Factors” and those listed below could also adversely impact our revenues, financial condition, results of operations and business prospects.

The forward-looking statements referred to in the preceding paragraph,, most of which directly affect AB but also affect AB Holding because AB Holding’s principal source of income and cash flow is attributable to its investment in AB, include statements regarding:
•Our belief that the cash flow AB Holding realizes from its investment in AB will provide AB Holding with the resources it needs to meet its financial obligations: AB Holding’s cash flow is dependent on the quarterly cash distributions it receives from AB. Accordingly, AB Holding’s ability to meet its financial obligations is dependent on AB’s cash flow from its operations, which is subject to the performance of the capital markets and other factors beyond our control.
•Our financial condition and ability to access the public and private capital markets providing adequate liquidity for our general business needs: Our financial condition is dependent on our cash flow from operations, which is subject to the performance of the capital markets, our ability to maintain and grow client assets under management and other factors beyond our control. Our ability to access public and private capital markets on reasonable terms may be limited by adverse market conditions, our firm’s credit ratings, our profitability and changes in government regulations, including tax rates and interest rates.
•The outcome of litigation: Litigation is inherently unpredictable, and excessive damage awards do occur. Though we have stated that we do not expect any pending legal proceedings to have a material adverse effect on our results of operations, financial condition or liquidity, any settlement or judgment with respect to a legal proceeding could be significant, and could have such an effect.
•The possibility that we will engage in open market purchases of AB Holding Units to help fund anticipated obligations under our incentive compensation award program: The number of AB Holding Units AB may decide to buy in future periods, if any, to help fund incentive compensation awards depends on various factors, some of which are beyond our control, including the fluctuation in the price of an AB Holding Unit (NYSE: AB) and the availability of cash to make these purchases.
•Our determination that adjusted employee compensation expense, excluding the impact of performance-based fees, generally should not exceed 50% of our adjusted net revenues on an annual basis: Aggregate employee compensation reflects employee performance and competitive compensation levels. Fluctuations in our revenues and/or changes in competitive compensation levels could result in adjusted employee compensation expense exceeding 50% of our adjusted net revenues.
•The adverse impact of COVID-19: The aggregate extent to which COVID-19, including its impact on the global economy, affects AB’s business, liquidity, results of operations and financial condition, will depend on future COVID-19 developments that are highly uncertain, including the scope and duration of the disease and any recovery period, the emergence, spread and seriousness of COVID-19 variants, the continuing prevalence of severe, unconstrained and/or escalating rates of infection and hospitalization in various countries and regions, the availability, adoption and efficacy of treatments and vaccines, and future actions taken by governmental authorities, central banks and other parties in response to COVID-19.
•The impact of our acquisition of CarVal: The impact of our acquisition of CarVal: These statements concern expected growth, client and stockholder benefits, key assumptions, revenue realization, financial benefits or returns, accretion and integration costs. Actual results may differ materially from future results expressed or implied by our forward-looking statements as a result of similar risks to those that impact our other similar business lines, as well as the risk that we are not able to realize the anticipated benefits of the transaction, including the realization of revenue, accretion, and financial benefits or returns, in full or that we may take longer to realize benefits than expected, due, among other reasons, to the
•58
Our belief that the cash flow AB Holding realizes from its investment in AB will provide AB Holding with the resources it needs to meet its financial obligations: AllianceBernsteinAB Holding’s cash flow is dependent on the quarterly cash distributions it receives from AB. Accordingly, AB Holding’s ability to meet its financial obligations is dependent on AB’s cash flow from its operations, which is subject to the performance of the capital markets and other factors beyond our control.

Table of Contents
Part II
challenges of integrating a new business and personnel. The anticipated benefits may also be adversely impacted by the risk that AB Holding units to be issued after the closing are issued at a price below anticipated levels. We caution readers to carefully consider such factors.
•Our Relocation Strategy: While many of the expenses, expense savings and EPU impact we expect will result from our Relocation Strategy are presented with numerical specificity, and we believe these figures to be reasonable as of the date of this report, the uncertainties surrounding the assumptions on which our estimates are based create a significant risk that our current estimates may not be realized. These assumptions include:
•
Our financial condition and ability to access the public and private capital markets providing adequate liquidity for our general business needs: Our financial condition is dependent on our cash flow from operations, which is subject to the performance of the capital markets, our ability to maintain and grow client assets under management and other factors beyond our control. Our ability to access public and private capital markets on reasonable terms may be limited by adverse market conditions, our firm’s credit ratings, our profitability and changes in government regulations, including tax rates and interest rates.

•
The outcome of litigation: Litigation is inherently unpredictable, and excessive damage awards do occur. Though we have stated that we do not expect any pending legal proceedings to have a material adverse effect on our results of operations, financial condition or liquidity, any settlement or judgment with respect to a legal proceeding could be significant, and could have such an effect.

•
The possibility that we will engage in open market purchases of AB Holding Units to help fund anticipated obligations under our incentive compensation award program: The number of AB Holding Units AB may decide to buy in future periods, if any, to help fund incentive compensation awards depends on various factors, some of which are beyond our control, including the fluctuation in the price of an AB Holding Unit (NYSE: AB) and the availability of cash to make these purchases.

•
Our determination that adjusted employee compensation expense should not exceed 50% of our adjusted net revenues:  Aggregate employee compensation reflects employee performance and competitive compensation levels. Fluctuations in our revenues and/or changes in competitive compensation levels could result in adjusted employee compensation expense exceeding 50% of our adjusted net revenues.
•
Our Relocation Strategy: While the expenses, expense savings and EPU impact we expect will result from our Relocation Strategy are presented with numerical specificity, and we believe these figures to be reasonable as of the date of this report, the uncertainties surrounding the assumptions on which our estimates are based create a significant risk that our current estimates may not be realized. These assumptions include:
the amount and timing of employee relocation costs, severance, and overlapping compensation and occupancy costs we experience; and
•the timing for execution of each phase of our relocation implementation plan.
•
Our 2020 Margin Target: We previously adopted a goal of increasing our adjusted operating margin to a target of 30% by 2020, subject to the assumptions, factors and contingencies described as part of our initial disclosure of this target. Our adjusted operating margin for 2019 was 27.5%.
Our AUM and, therefore, our investment advisory revenues, including performance-based fee revenues, are heavily dependent on the level and volatility of the financial markets. Based upon our current revenue and expense projections, we do not believe that achieving the 2020 Margin Target is likely. However, we are taking additional actions to better align our expenses with our expected revenues. We remain committed to achieving an adjusted operating margin of 30% in years subsequent to 2020 and will take continued actions in this regard, subject to prevailing market conditions and the evolution of our business mix.


Item 7A. 7A. Quantitative and Qualitative Disclosures about Market Risk

AB Holding

Market Risk, Risk Management and Derivative Financial Instruments

Market Risk, Risk Management and Derivative Financial Instruments
AB Holding’s sole investment is AB Units. AB Holding did not own, nor was it a party to, any derivative financial instruments during the years ended December 31, 2019, 20182022, 2021 and 2017.2020.

AB
Market Risk, Risk Management and Derivative Financial Instruments
Our investments consist of trading and other investments. Trading investments include U.S. Treasury Bills, mutual funds, exchange-traded options and various separately-managed portfolios consisting of equity securities. Trading investments are purchased for short-term investment, principally to fund liabilities related to long-term incentive compensation plans and to seed new investment services. Other investments include investments in hedge funds we sponsor and other investment vehicles.
We enter into various futures, forwards, swaps and options primarily to economically hedge our seed capital investments. We do not hold any derivatives designated in a formal hedge relationship under ASC 815-10, Derivatives and Hedging. See Note 7 to our consolidated financial statements in Item 8.
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Trading and Non-Trading Market Risk Sensitive Instruments
Investments with Interest Rate Risk—Fair Value
The table below provides our potential exposure with respect to our fixed income investments, measured in terms of fair value, to an immediate 100 basis point increase in interest rates at all maturities from the levels prevailing as of December 31, 20192022 and 2018.2021. Such a fluctuation in interest rates is a hypothetical rate scenario used to calibrate potential risk and does not represent our view of future market movements. While these fair value measurements provide a representation of interest rate sensitivity of our investments in fixed income mutual funds and fixed income hedge funds, they are based on our exposures at a particular point in time and may not be representative of future market results. These exposures will change as a result of ongoing changes in investments in response to our assessment of changing market conditions and available investment opportunities:
As of December 31
20222021
Fair ValueEffect of
+100
Basis Point
Change		Fair ValueEffect of
+100
Basis Point
Change
(in thousands)
Fixed Income Investments:
Trading$93,221 $(5,789)$100,661 $(6,976)
 As of December 31,
 2019 2018
 Fair Value 
Effect of
+100
Basis Point
Change
 Fair Value 
Effect of
+100
Basis Point
Change
 (in thousands)
Fixed Income Investments:       
Trading$36,122
 $(2,445) $435,020
 $(28,668)

Investments with Equity Price Risk—Fair Value
Our investments also include investments in equity securities, mutual funds and hedge funds. The following table provides our potential exposure with respect to our equity investments, measured in terms of fair value, to an immediate 10% dropdecrease in equity prices from those prevailing as of December 31, 20192022 and 2018.2021. A 10% decrease in equity prices is a hypothetical scenario used to calibrate potential risk and does not represent our view of future market movements. While these fair value measurements provide a representation of equity price sensitivity of our investments in equity securities, mutual funds and hedge funds, they are based on our exposures at a particular point in time and may not be representative of future market results. These exposures will change as a result of ongoing portfolio activities in response to our assessment of changing market conditions and available investment opportunities:
 As of December 31
 20222021
 Fair ValueEffect of
-10%
Equity Price
Change		Fair ValueEffect of
-10%
Equity Price
Change
 (in thousands)
Equity Investments:
Trading$65,846 $(6,585)$85,704 $(8,570)
Other investments$58,451 $(5,845)$87,053 $(8,705)
 As of December 31,
 2019 2018
 Fair Value 
Effect of -10%
Equity Price
Change
 Fair Value 
Effect of -10%
Equity Price
Change
 (in thousands)
Equity Investments:       
Trading$151,140
 $(15,114) $178,215
 $(17,822)
Other investments79,532
 (7,953) 101,109
 (10,111)

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Item 8.Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

To the General Partner and Unitholders of AllianceBernstein Holding L.P.
Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying statements of financial condition of AllianceBernstein Holding L.P. (the “Company”“Company”) as of December 31, 20192022 and 2018,2021, and the related statements of income, of comprehensive income, of changes in partners’ capital and of cash flows for each of the three years in the period ended December 31, 2019,2022, including the related notes (collectively referred to as the “financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2019,2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 20192022 and 2018,2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 20192022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019,2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Acquisition of CarVal Investors L.P. - Fair Value of Finite-Lived Intangible Assets and Contingent Consideration Payable
Measurement of Equity in Net Income Attributable to AB Unitholders - Performance-Based Fees

As described in Notes 1, 2 and 4Note 8 to the financial statements, on July 1, 2022, the Company’s principal sourceCompany acquired a 100% ownership interest in CarVal Investors L.P. (CarVal) for total purchase consideration of income$818.1 million, which resulted in management recording $303.0 million of finite-lived intangible assets primarily related to investment management contracts and cash flow is attributableinvestor relationships with useful lives ranging from 5 to 10 years and $228.9 million of contingent consideration payable. Immediately following the acquisition of CarVal by the Company, the Company contributed 100% of its investmentequity interests in CarVal to AllianceBernstein L.P. (AB) limited partnership interests. The equity in net incomeexchange for AB units. Fair value of the acquired finite-lived intangible assets was based on a forecast of future cash flows attributable to AB unitholdersthe assets that are discounted to present value using a risk-adjusted discount rate. Fair value of the contingent consideration payable was $266.3 million for the year ended December 31, 2019. The Company records its investment in AB using the equity methodbased on a forecast of accounting. The Company’s investment is increased to reflect its proportionate share of income of AB, decreased to reflect its proportionate share of losses of AB andfuture cash distributions made by AB to its unitholders and adjusted to reflect its proportionate share of certain capital transactions of AB. The Company’s proportionate share of income of AB includes performance-based fees recognized by AB. The transaction price for the asset management performance obligation for certain hedge fund and alternative investment advisory contracts, provide for a performance-based fee, in additionflows attributable to the base advisory fee, which is calculated as eitherperformance objectives that are discounted to present value using a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. The performance-based fees are forms of variable consideration and are therefore excluded from the transaction price until it becomes probable that there will not be significant reversal of the cumulative revenue recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include the contractual claw-back provisions to which the variable consideration is subject, the length of time to which the uncertainty of the consideration is subject, the number and range of possible consideration amounts, the probability of significant fluctuations in the fund’s market value and the level at which the fund’s value exceeds the contractual threshold required to earn such a fee. With respect to the constraining factors related to the fund’s market value, management measures assets under management (AUM) using established market-based valuation methods and fair valuation (non-observable market) methods. As disclosed by management, fair valuation methods, including discounted cash flow models and other methods, are used only where AUM cannot be valued using market-based valuation methods, such as in the case of private equity or illiquid securities. risk-adjusted discount rate.


The principal considerations for our determination that performing procedures relating to the measurementfair value of equitythe finite-lived intangible assets and contingent consideration payable recognized in net income attributable to AB unitholders - performance-based feesthe acquisition of CarVal is a critical audit matter are that there wasthe significant judgment by management in assessingdeveloping the probability that there will not be a significant reversalestimated fair value of the cumulative revenue recognizedfinite-lived intangible assets and in determining the fund’s market value where fair valuation methods are used.contingent consideration payable. This in turn led to significanta high degree of auditor judgment, subjectivity, and effort in performing procedures relating to performance-based fees, includingand evaluating audit evidence related to the constraining factors impactingfuture cash flows and risk-adjusted discount rate assumptions utilized within the amountcalculation of variable consideration.Thethe present value of future cash flows. In addition, the audit effort also includedinvolved the involvementuse of professionals with specialized skill and knowledge to assist in evaluating management’s estimate of the funds’ market value where fair valuation methods are used.knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements.These procedures included testing the effectiveness of controls relating to equitythe determination of the fair value of finite-lived intangible assets and contingent consideration payable recognized in net income attributable to AB Unitholders, including controls relating to AB’s revenue recognition process for performance-based fees,the acquisition of CarVal, including controls over the assessmentdevelopment of constraining factorsthe future cash flows and risk-adjusted discount rate assumptions utilized within the valuationcalculation of AUM.the present value of future cash flows. These procedures also included, among others, reading the purchase agreement and testing management’s process for determining performance-based fees, includingestimating the fair value of the acquired finite-lived intangible assets and contingent consideration payable. Testing management’s process included (i) evaluating the appropriateness of the methodsmethod used testing the contractual claw-back provisions to which the variable consideration is subject and, on a sample basis, evaluating the reasonableness of management’s assumptions relateddiscount future cash flows to the length of time to which the uncertainty of the consideration is subject, the number and range of possible consideration amounts and the probability of significant fluctuations in the funds’ market value. In evaluating management’s estimates of the funds’ marketpresent value, procedures included the involvement of professionals with specialized skill and knowledge to assist in developing an independent range of prices for a sample of securities used in determining the underlying funds’ market value where fair valuation methods are used, and comparison of management’s estimate of the securities’ fair value to the independently developed ranges. Developing the independent estimate of securities’ fair value involved(ii) testing the completeness and accuracy of underlying data provided by managementused in the method used to discount future cash flows to present value, and independently developing the(iii) evaluating management’s significant assumptions forrelated to the sampled securities.future cash flows and risk-adjusted discount rate. Evaluating the reasonableness of the assumption related to the future cash flows involved considering the historical performance of Carval, the consistency with external market and industry data, and the consistency with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in the evaluation of the appropriateness of the method used to discount future cash flows to present value and the reasonableness of the risk-adjusted discount rate assumption.





/s/PricewaterhouseCoopers LLP
New York, New York

Nashville, Tennessee
February 12, 202010, 2023
We have served as the Company’s auditor since 2006.


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AllianceBernstein Holding L.P.

AllianceBernstein Holding L.P.
Statements of Financial Condition

 December 31,
 2019 2018
 
(in thousands,
except unit amounts)
ASSETS   
Investment in AB$1,554,203
 $1,490,701
Other assets61
 —
Total assets$1,554,264
 $1,490,701
LIABILITIES AND PARTNERS’ CAPITAL   
Liabilities:   
Other liabilities$1,726
 $644
Total liabilities1,726
 644
Commitments and contingencies (See Note 7)


 


Partners’ capital:   
General Partner: 100,000 general partnership units issued and outstanding1,402
 1,385
Limited partners: 98,092,098 and 96,558,278 limited partnership units issued and outstanding1,619,200
 1,555,892
AB Holding Units held by AB to fund long-term incentive compensation plans(27,436) (27,759)
Accumulated other comprehensive loss(40,628) (39,461)
Total partners’ capital1,552,538
 1,490,057
Total liabilities and partners’ capital$1,554,264
 $1,490,701

Years Ended December 31
20222021
(in thousands,
except unit amounts)
ASSETS
Investment in AB$2,074,626 $1,623,764 
Total assets$2,074,626 $1,623,764 
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:
Other liabilities$1,623 $2,140 
Total liabilities1,623 2,140 
Commitments and contingencies (See Note 7)
Partners’ capital:
General Partner: 100,000 general partnership units issued and outstanding1,355 1,439 
Limited partners: 113,701,097 and 99,171,727 limited partnership units issued and outstanding2,160,207 1,696,199 
AB Holding Units held by AB to fund long-term incentive compensation plans(37,551)(43,309)
Accumulated other comprehensive loss(51,008)(32,705)
Total partners’ capital2,073,003 1,621,624 
Total liabilities and partners’ capital$2,074,626 $1,623,764 
See Accompanying Notes to Financial Statements.

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AllianceBernstein Holding L.P.
Statements of Income

 Years Ended December 31,
 2019 2018 2017
 (in thousands, except per unit amounts)
Equity in net income attributable to AB Unitholders$266,292
 $270,647
 $232,393
      
Income taxes27,729
 28,250
 24,971
      
Net income$238,563
 $242,397
 $207,422
      
Net income per unit:     
      
Basic$2.49
 $2.50
 $2.19
Diluted$2.49
 $2.50
 $2.19

 Years Ended December 31
 202220212020
 (in thousands, except per unit amounts)
Equity in net income attributable to AB Unitholders$305,504 $416,326 $308,404 
Income taxes31,339 30,483 29,024 
Net income$274,165 $385,843 $279,380 
Net income per unit:
Basic$2.69 $3.88 $2.88 
Diluted$2.69 $3.88 $2.88 
See Accompanying Notes to Financial Statements.

AllianceBernstein Holding L.P.
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AllianceBernstein Holding L.P.
Statements of Comprehensive Income

 Years Ended December 31,
 2019 2018 2017
 (in thousands)
Net income$238,563
 $242,397
 $207,422
Other comprehensive (loss) income: 
  
  
Foreign currency translation adjustments, before reclassification and tax1,900
 (6,884) 9,671
Less: reclassification adjustment for (losses) included in net income upon liquidation—
 (36) —
Foreign currency translation adjustments, before tax1,900
 (6,848) 9,671
Income tax (expense) benefit(161) 217
 3
Foreign currency translation adjustments, net of tax1,739
 (6,631) 9,674
Unrealized gains on investments: 
  
  
Unrealized gains arising during period—
 —
 2
Income tax benefit—
 —
 2
Unrealized gains on investments, net of tax—
 —
 4
Changes in employee benefit related items: 
  
  
Amortization of prior service cost6
 8
 9
Recognized actuarial (loss) gain(3,011) 541
 (1,115)
Changes in employee benefit related items(3,005) 549
 (1,106)
Income tax benefit (expense)99
 (49) (10)
Employee benefit related items, net of tax(2,906) 500
 (1,116)
Other—
 133
 —
Other comprehensive (loss) income(1,167) (5,998) 8,562
Comprehensive income$237,396
 $236,399
 $215,984

Years Ended December 31
202220212020
(in thousands)
Net income$274,165 $385,843 $279,380 
Other comprehensive (loss) income:   
Foreign currency translation adjustments, before reclassification and tax(19,805)(2,894)8,579 
Less: reclassification adjustment for gains (losses) included in net income upon liquidation— 1,613 (77)
Foreign currency translation adjustments, before tax(19,805)(4,507)8,656 
Income tax benefit (expense)249 147 (310)
Foreign currency translation adjustments, net of tax(19,556)(4,360)8,346 
Changes in employee benefit related items:   
Amortization of prior service cost(12)7 8 
Recognized actuarial gain (loss)1,293 5,566 (1,557)
Changes in employee benefit related items1,281 5,573 (1,549)
Income tax (expense)(28)(20)(67)
Employee benefit related items, net of tax1,253 5,553 (1,616)
Other comprehensive (loss) income(18,303)1,193 6,730 
Comprehensive income$255,862 $387,036 $286,110 
See Accompanying Notes to Financial Statements.

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Statements of Changes in Partners’ Capital

 Years Ended December 31,
 2019 2018 2017
 (in thousands)
General Partner’s Capital     
Balance, beginning of year$1,385
 $1,411
 $1,405
Net income249
 250
 219
Cash distributions to Unitholders(232) (288) (213)
Impact of adoption of revenue recognition standard ASC 606—
 12
 —
Balance, end of year1,402
 1,385
 1,411
Limited Partners’ Capital 
  
  
Balance, beginning of year1,555,892
 1,590,776
 1,592,240
Net income238,314
 242,147
 207,203
Cash distributions to Unitholders(222,253) (280,434) (202,175)
Retirement of AB Holding Units(110,752) (194,544) (162,206)
Issuance of AB Holding Units to fund long-term incentive compensation plan awards146,488
 168,955
 135,604
Exercise of compensatory options to buy AB Holding Units11,511
 16,589
 20,110
Impact of adoption of revenue recognition standard ASC 606—
 12,536
 —
Other—
 (133) —
Balance, end of year1,619,200
 1,555,892
 1,590,776
AB Holding Units held by AB to fund long-term incentive compensation plans 
  
  
Balance, beginning of year(27,759) (15,174) (11,731)
Change in AB Holding Units held by AB to fund long-term incentive compensation plans323
 (12,585) (3,443)
Balance, end of year(27,436) (27,759) (15,174)
Accumulated Other Comprehensive (Loss) Income 
  
  
Balance, beginning of year(39,461) (33,463) (42,025)
Foreign currency translation adjustment, net of tax1,739
 (6,631) 9,674
Changes in employee benefit related items, net of tax(2,906) 500
 (1,116)
Unrealized gain on investments, net of tax—
 —
 4
Other—
 133
 —
Balance, end of year(40,628) (39,461) (33,463)
Total Partners’ Capital$1,552,538
 $1,490,057
 $1,543,550

Years Ended December 31
202220212020
(in thousands)
General Partner’s Capital
Balance, beginning of year$1,439 $1,410 $1,402 
Net income270 387 288 
Cash distributions to Unitholders(354)(358)(280)
Balance, end of year1,355 1,439 1,410 
Limited Partners’ Capital   
Balance, beginning of year1,696,199 1,656,816 1,619,200 
Net income273,895 385,456 279,092 
Cash distributions to Unitholders(360,670)(357,097)(270,601)
Retirement of AB Holding Units(114,794)(143,460)(78,388)
Issuance of AB Holding Units to fund long-term incentive compensation plan awards76,230 151,082 107,366 
Issuance of AB Holding Units to fund CarVal acquisition589,169 — — 
Exercise of compensatory options to buy AB Holding Units178 3,402 147 
Balance, end of year2,160,207 1,696,199 1,656,816 
AB Holding Units held by AB to fund long-term incentive compensation plans   
Balance, beginning of year(43,309)(20,171)(27,436)
Change in AB Holding Units held by AB to fund long-term incentive compensation plans5,758 (23,138)7,265 
Balance, end of year(37,551)(43,309)(20,171)
Accumulated Other Comprehensive (Loss)   
Balance, beginning of year(32,705)(33,898)(40,628)
Foreign currency translation adjustment, net of tax(19,556)(4,360)8,346 
Changes in employee benefit related items, net of tax1,253 5,553 (1,616)
Balance, end of year(51,008)(32,705)(33,898)
Total Partners’ Capital$2,073,003 $1,621,624 $1,604,157 
See Accompanying Notes to Financial Statements.

AllianceBernstein Holding L.P.
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Statements of Cash Flows

Years Ended December 31
202220212020
(in thousands)
Cash flows from operating activities:
Net income$274,165 $385,843 $279,380 
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income attributable to AB Unitholders(305,504)(416,326)(308,404)
Cash distributions received from AB394,470 385,236 298,919 
Changes in assets and liabilities:
Decrease (increase) in other assets— 92 (31)
(Decrease) increase in other liabilities(517)264 150 
Net cash provided by operating activities362,614 355,109 270,014 
Cash flows from investing activities:
Acquisition of business, net cash acquired40,777 — — 
Contribution of CarVal to AB(40,777)— — 
Capital contribution to AB(1,590)— — 
Investments in AB with proceeds from exercise of compensatory options to buy AB Holding Units(178)(3,402)(147)
Net cash used in investing activities(1,768)(3,402)(147)
Cash flows from financing activities:
Cash distributions to Unitholders(361,024)(357,455)(270,881)
Capital contributions from AB— 2,346 867 
Proceeds from exercise of compensatory options to buy AB Holding Units178 3,402 147 
Net cash used in financing activities(360,846)(351,707)(269,867)
Change in cash and cash equivalents— — — 
Cash and cash equivalents as of beginning of the year— — — 
Cash and cash equivalents as of end of the year$— $— $— 
Cash paid:
Income taxes31,862 30,127 28,906 
Non-cash investing activities:
Fair value of assets acquired (less cash acquired of $40.8 million)$1,087,218 $— $— 
Fair value of liabilities assumed296,750 — — 
Fair value of non-redeemable non-controlling interest assumed13,191 — — 
Fair value of assets contributed to AB (less cash acquired of $40.8 million)(1,087,218)— — 
Fair value of liabilities contributed to AB(296,750)— — 
Fair value of non-redeemable non-controlling interest contributed to AB(13,191)— — 
Issuance of AB Holding Units to fund long-term incentive compensation plan awards76,230 151,082 107,366 
Retirement of AB Holding Units(114,794)(143,460)(78,388)
 Years Ended December 31,
 2019 2018 2017
 (in thousands)
Cash flows from operating activities:     
Net income$238,563
 $242,397
 $207,422
Adjustments to reconcile net income to net cash provided by operating activities:     
Equity in net income attributable to AB Unitholders(266,292) (270,647) (232,393)
Cash distributions received from AB249,463
 308,042
 226,846
Changes in assets and liabilities:     
(Increase) in other assets(61) —
 —
Increase (decrease) in other liabilities1,082
 (510) 535
Net cash provided by operating activities222,755
 279,282
 202,410
      
Cash flows from investing activities:     
Investments in AB with proceeds from exercises of compensatory options to buy AB Holding Units(11,511) (16,589) (20,110)
Net cash used in investing activities(11,511) (16,589) (20,110)
      
Cash flows from financing activities:     
Cash distributions to Unitholders(222,485) (280,722) (202,388)
Capital contributions (to) from AB(270) 1,440
 (22)
Proceeds from exercise of compensatory options to buy AB Holding Units11,511
 16,589
 20,110
Net cash used in financing activities(211,244) (262,693) (182,300)
      
Change in cash and cash equivalents—
 —
 —
Cash and cash equivalents as of beginning of the year—
 —
 —
Cash and cash equivalents as of end of the year$—
 $—
 $—
      
Cash paid:     
Income taxes$26,650
 $28,766
 $24,436
      
Non-cash investing activities:     
Issuance of AB Holding Units to fund long-term incentive compensation plan awards146,488
 168,955
 135,604
Retirement of AB Holding Units(110,752) (194,544) (162,206)

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Years Ended December 31
202220212020
(in thousands)
Non-cash financing activities:
Payables recorded under contingent payment arrangements228,885 — — 
Equity consideration issued in connection with acquisition589,169 — — 
Payables contributed to and assumed by AB under contingent payment arrangements(228,885)— — 
Equity consideration received from AB in connection with acquisition(589,169)— — 
See Accompanying Notes to Financial Statements.

AllianceBernstein Holding L.P.
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AllianceBernstein Holding L.P.
Notes to Financial Statements

The words “we” and “our” refer collectively to AllianceBernstein Holding L.P. (“AB Holding”) and AllianceBernstein L.P. and its subsidiaries (“AB”), or to their officers and employees. Similarly, the word “company” refers to both AB Holding and AB. Where the context requires distinguishing between AB Holding and AB, we identify which of them is being discussed. Cross-references are in italics.

1. Business Description and Organization

AB Holding’s principal source of income and cash flow is attributable to its investment in AB limited partnership interests.

AB provides research, diversified investment management, research and related services globally to a broad range of clients. Its principal services include:

•
Institutional Services—servicing its institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as Equitable Holdings, Inc. ("EQH") and its subsidiaries, by means of separately-managed•Institutional Services—servicing its institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as Equitable Holdings, Inc. ("EQH") and its subsidiaries, by means of separately managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles.

•Retail Services—Services—servicing its retail clients, primarily by means of retail mutual funds sponsored by AB or an affiliated company, sub-advisory relationships with mutual funds sponsored by third parties, separately-managedseparately managed account programs sponsored by financial intermediaries worldwide and other investment vehicles.

•Private Wealth Management Services—Services—servicing its private clients, including high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, by means of separately-managedseparately managed accounts, hedge funds, mutual funds and other investment vehicles.

•Bernstein Research Services—Services—servicing institutional investors, such as pension fund, hedge fund and mutual fund managers, seeking high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options.

AB also provides distribution, shareholder servicing, transfer agency services and administrative services to the mutual funds it sponsors.

AB’s high-quality, in-depth research is the foundation of its business.asset management and private wealth management businesses. AB’s research disciplines include economic, fundamental equity, fixed income and quantitative research. In addition, AB has experts focused onexpertise in multi-asset strategies, wealth management, environmental, social and corporate governance ("ESG"), and alternative investments.

AB provides a broad range of investment services with expertise in:

Actively-managed•Actively managed equity strategies withacross global and regional portfolios acrossuniverses, as well as capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities;

Actively-managed•Actively managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies;

Passive management, including index and enhanced index strategies;

Alternative•Actively managed alternative investments, including hedge funds, fund of funds and direct assets (e.g., direct lending, real estate and private equity;equity);
•Portfolios with Purpose, including actively managed, impact-focused and Responsible+ (climate-conscious, ESG leaders, change catalysts) equity, fixed income and multi-asset strategies that address our clients evolving need to invest their capital with purpose while pursuing strong investment returns;

•Multi-asset solutionsservices and services,solutions, including dynamic asset allocation, customized target-date funds and target-risk funds.

funds; and
AB’s services span various investment disciplines,•Some passive management, including market capitalization (e.g., large-, mid-index, ESG index and small-cap equities), term (e.g., long-, intermediate- and short-duration debt securities), and geographic location (e.g., U.S., international, global, emerging markets, regional and local), in major markets around the world.enhanced index strategies.


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Organization

During the second quarter of 2018, AXA S.A. ("AXA") completed the sale of a minority stake in EQH through an initial public offering ("IPO"). Since then, AXA has completed additional offerings and taken other steps, most recently during the fourth quarter of 2019. As a result, AXA owned less than 10% of the outstanding common stock of EQH as of December 31, 2019.

As of December 31, 2019,2022, EQH owns approximately 4.1%3.5% of the issued and outstanding units representing assignments of beneficial ownership of limited partnership interests in AB Holding (“AB Holding Units”). AllianceBernstein Corporation (an indirect wholly-owned subsidiary of EQH, “General Partner”) is the general partner of both AB Holding and AB. AllianceBernstein Corporation owns 100,000 general partnership units in AB Holding and a 1% general partnership interest in AB.

As of December 31, 2019,2022, the ownership structure of AB, expressed as a percentage of general and limited partnership interests, was as follows:
EQH and its subsidiaries63.359.9 %
AB Holding36.039.4 
Unaffiliated holders0.7
100.0%


Including both the general partnership and limited partnership interests in AB Holding and AB, EQH and its subsidiaries had an approximate 64.8%61.3% economic interest in AB as of December 31, 2019.2022.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

AB Holding’s financial statements and notes should be read in conjunction with the consolidated financial statements and notes of AB, which are included in this Form 10-K.

Investment in AB

AB Holding records its investment in AB using the equity method of accounting. AB Holding’s investment is increased to reflect its proportionate share of income of AB and decreased to reflect its proportionate share of losses of AB and cash distributions made by AB to its Unitholders. In addition, AB Holding's investment is adjusted to reflect its proportionate share of certain capital transactions of AB.

Cash Distributions

AB Holding is required to distribute all of its Available Cash Flow, as defined in the Amended and Restated Agreement of Limited Partnership of AB Holding (“AB Holding Partnership Agreement”), to its Unitholders pro rata in accordance with their percentage interests in AB Holding. Available Cash Flow is defined as the cash distributions AB Holding receives from AB minus such amounts as the General Partner determines, in its sole discretion, should be retained by AB Holding for use in its business (such as the payment of taxes) or plus such amounts as the General Partner determines, in its sole discretion, should be released from previously retained cash flow.

On February 12, 2020,8, 2023, the General Partner declared a distribution of $0.85$0.70 per unit, representing a distribution of Available Cash Flow for the three months ended December 31, 2019.2022. Each general partnership unit in AB Holding is entitled to receive distributions equal to those received by each AB Holding Unit. The distribution is payable on March 5, 202016, 2023 to holders of record at the close of business on February 24, 2020.

21, 2023.
Total cash distributions per Unit paid to Unitholders during 2019, 20182022, 2021 and 20172020 were $2.32, $2.88$3.54, $3.58 and $2.13,$2.79, respectively.



Long-term Incentive Compensation Plans

AB maintains several unfunded, non-qualified long-term incentive compensation plans, under which the company grants awards of restricted AB Holding Units to its employees and members of the Board of Directors, who are not employed by AB or by any of AB’s affiliates (“Eligible Directors”).

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AB funds its restricted AB Holding Unit awards either by purchasing AB Holding Units on the open market or purchasing newly-issued AB Holding Units from AB Holding, and then keeping these AB Holding Units in a consolidated rabbi trust until delivering them or retiring them. In accordance with the AB Holding Partnership Agreement, when AB purchases newly-issued AB Holding Units from AB Holding, AB Holding is required to use the proceeds it receives from AB to purchase the equivalent number of newly-issued AB Units, thus increasing its percentage ownership interest in AB. AB Holding Units held in the consolidated rabbi trust are corporate assets in the name of the trust and are available to the general creditors of AB.

During 2019 and 2018, AB purchased 6.0 million and 9.3 millionRepurchases of AB Holding Units for $172.6 millionthe years ended December 31, 2022 and $268.0 million, respectively (on2021 consisted of the following:
Years Ended December 31
20222021
(in millions)
Total amount of AB Holding Units Purchased(1)
5.2 5.6 
Total Cash Paid for AB Holding Units Purchased(1)
$211.8 $262.3 
Open Market Purchases of AB Holding Units Purchased(1)
2.3 2.6 
Total Cash Paid for Open Market Purchases of AB Holding Units(1)
$92.7 $117.9 
(1)Purchased on a trade date basis). These amounts reflecttrade-date basis. The difference between open-market purchases of 2.9 million and 6.5 million AB Holding Units for $82.7 million and $183.2 million, respectively, withunits retained reflects the remainder relating to purchasesretention of AB Holding Units from employees to allow them to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards.

Each quarter, AB considers whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (“Exchange Act”). A plan of this type allows a company to repurchase its shares at times when it otherwise might be prevented from doing so because of self-imposed trading blackout periods or because it possesses material non-public information. Each broker selected by AB has the authority to repurchase AB Holding Units on AB’s behalf in accordance with the terms and limitations specified in the plan. Repurchases are subject to regulations promulgated by the U.S. Securities and Exchange Commission (“SEC”) as well as certain price, market volume and timing constraints specified in the plan. TheWe did not adopt a plan adopted during the fourth quarter of 2019 expired at the close of business on February 11, 2020.2022. AB may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under its incentive compensation award program and for other corporate purposes.

During 2019,2022, AB granted to employees and Eligible Directors 7.74.7 million restricted AB Holding Units (including 5.43.8 million granted in December for 20192022 year-end awards). During 2018,2021, AB granted to employees and Eligible Directors 8.77.0 million restricted AB Holding Units (including 6.23.4 million granted in December for 20182021 year-end awards). AB used AB Holding Units repurchased during the periods and newly-issued AB Holding Units to fund thesesthese awards.

During 20192022 and 2018,2021, AB Holding issued 0.5 million5,774 and 0.90.1 million AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $11.5$0.2 million and $16.6$3.4 million, respectively, received from award recipients as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Units.
Subsequent Events

We have evaluated subsequent events through the date that these financial statements were filed with the SEC and did not identify any subsequent events that would have required disclosure in these financial statements.
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3. Net Income Per Unit

Basic net income per unit is derived by dividing net income by the basic weighted average number of units outstanding for each year. Diluted net income per unit is derived by adjusting net income for the assumed dilutive effect of compensatory options (“Net income - diluted”) and dividing by the diluted weighted average number of units outstanding for each year.

Years Ended December 31
202220212020
(in thousands, except per unit amounts)
Net income - basic$274,165 $385,843 $279,380 
Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options2 30 56 
Net income - diluted$274,167 $385,873 $279,436 
Weighted average units outstanding - basic101,763 99,545 96,870 
Dilutive effect of compensatory options1 11 27 
Weighted average units outstanding - diluted101,764 99,556 96,897 
Basic net income per unit$2.69 $3.88 $2.88 
Diluted net income per unit$2.69 $3.88 $2.88 
 Years Ended December 31,
 2019 2018 2017
 (in thousands, except per unit amounts)
Net income - basic$238,563
 $242,397
 $207,422
Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options79
 447
 680
Net income - diluted$238,642
 $242,844
 $208,102
      
Weighted average units outstanding - basic95,884
 97,041
 94,733
Dilutive effect of compensatory options44
 251
 430
Weighted average units outstanding - diluted95,928
 97,292
 95,163
      
Basic net income per unit$2.49
 $2.50
 $2.19
Diluted net income per unit$2.49
 $2.50
 $2.19

Years Ended December 31
202220212020
Anti-dilutive options excluded from diluted net income— — 29,056 

We excluded 29,056 options in 2019, 49,784 options in 2018 and 1,970,741 options in 2017, from the diluted net income per unit computation due to their anti-dilutive effect.

4. Investment in AB

Changes in AB Holding’s investment in AB for the years ended December 31, 20192022 and 20182021 are as follows:
 20222021
 (in thousands)
Investment in AB as of January 1,$1,623,764 $1,605,941 
Equity in net income attributable to AB Unitholders305,504 416,326 
Changes in accumulated other comprehensive income(18,303)1,193 
Cash distributions received from AB(394,470)(385,236)
Additional investments with proceeds from exercises of compensatory options to buy AB Holding Units178 3,402 
Capital contributions to AB1,590 — 
Capital contributions from AB— (2,346)
AB Holding Units retired(114,794)(143,460)
AB Holding Units issued to fund long-term incentive compensation plans76,230 151,082 
AB Holding Units issued to fund CarVal acquisition589,169 — 
Change in AB Holding Units held by AB for long-term incentive compensation plans5,758 (23,138)
Investment in AB as of December 31,$2,074,626 $1,623,764 
 2019 2018
 (in thousands)
Investment in AB as of January 1,$1,490,701
 $1,544,704
Equity in net income attributable to AB Unitholders266,292
 270,647
Changes in accumulated other comprehensive (loss) income(1,167) (5,998)
Cash distributions received from AB(249,463) (308,042)
Additional investments with proceeds from exercises of compensatory options to buy AB Holding Units11,511
 16,589
Capital contributions to (from) AB270
 (1,440)
AB Holding Units retired(110,752) (194,544)
AB Holding Units issued to fund long-term incentive compensation plans146,488
 168,955
Change in AB Holding Units held by AB for long-term incentive compensation plans323
 (12,585)
Impact of AB's adoption of revenue recognition standard ASC 606—
 12,548
Other—
 (133)
Investment in AB as of December 31,$1,554,203
 $1,490,701
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5. Units Outstanding

Changes in AB Holding Units outstanding for the years ended December 31, 20192022 and 20182021 are as follows:
 20222021
Outstanding as of January 1,99,271,727 98,322,942 
Options exercised5,774 143,211 
Units issued (1)
17,326,222 3,917,437 
Units retired(2,802,626)(3,111,863)
Outstanding as of December 31,113,801,097 99,271,727 
 2019 2018
Outstanding as of January 1,96,658,278
 96,461,989
Options exercised511,894
 889,119
Units issued4,833,715
 6,153,320
Units retired(3,811,789) (6,846,150)
Outstanding as of December 31,98,192,098
 96,658,278

(1)Includes 15,321,535 Units issued as a result of the CarVal acquisition.

6. Income Taxes

AB Holding is a “grandfathered” publicly-traded partnership ("PTP") for federal tax purposes and, accordingly, is not subject to federal or state corporate income taxes. However, AB Holding is subject to the 4.0% New York City unincorporated business tax (“UBT”), net of credits for UBT paid by AB, and to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. AB Holding’s partnership gross income is derived from its interest in AB.

The principal reasons for the difference between AB Holding’s effective tax rates and the UBT statutory tax rate of 4.0% are as follows:
 Years Ended December 31,
 2019 2018 2017
 (in thousands)
UBT statutory rate$10,652
 4.0 % $10,826
 4.0 % $9,296
 4.0 %
Federal tax on partnership gross business income27,197
 10.2
 27,674
 10.2
 24,520
 10.5
State income taxes532
 0.2
 576
 0.2
 451
 0.2
Credit for UBT paid by AB(10,652) (4.0) (10,826) (4.0) (9,296) (4.0)
Income tax expense and effective tax rate$27,729
 10.4
 $28,250
 10.4
 $24,971
 10.7


Years Ended December 31
202220212020
(in thousands)
UBT statutory rate$12,220 4.0 %$16,653 4.0 %$12,336 4.0 %
Federal tax on partnership gross business income30,676 10.0 29,643 7.1 28,522 9.2 
State income taxes663 0.2 840 0.2 502 0.2 
Credit for UBT paid by AB(12,220)(4.0)(16,653)(4.0)(12,336)(4.0)
Income tax expense and effective tax rate$31,339 10.3 %$30,483 7.3 %$29,024 9.4 %
AB Holding’s federal income tax is computed by multiplying certain AB qualifying revenues (primarily U.S. investment advisory fees, research payments and brokerage commissions) by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate. AB Holding Units in AB’s consolidated rabbi trust are not considered outstanding for purposes of calculating AB Holding’s ownership interest in AB.
Years Ended December 31% Change
2022202120202022-212021-20
(in thousands)
Net income attributable to AB Unitholders$831,813 $1,148,623 $865,952 (27.6)%32.6 %
Multiplied by: weighted average equity ownership interest36.7 %36.2 %35.6 %
Equity in net income attributable to AB Unitholders$305,504 $416,326 $308,404 (26.6)35.0 
AB qualifying revenues$2,775,693 $2,779,281 $2,740,137 (0.1)1.4 
Multiplied by: weighted average equity ownership interest for calculating tax31.6 %30.5 %30.1 %
Multiplied by: federal tax3.5 %3.5 %3.5 %
Federal income taxes30,676 29,643 28,522 
State income taxes663 840 502 
Total income taxes$31,339 $30,483 $29,024 2.8 5.0 
 Years Ended December 31, % Change
 2019 2018 2017 2019-18 2018-17
 (in thousands)    
Net income attributable to AB Unitholders$752,042
 $757,588
 $662,403
 (0.7)% 14.4%
Multiplied by: weighted average equity ownership interest35.4% 35.7% 35.1%    
Equity in net income attributable to AB Unitholders$266,292
 $270,647
 $232,393
 (1.6) 16.5
          
AB qualifying revenues$2,640,169
 $2,647,254
 $2,407,212
 (0.3) 10.0
Multiplied by: weighted average equity ownership interest for calculating tax29.4% 29.9% 29.1%    
Multiplied by: federal tax3.5% 3.5% 3.5%    
Federal income taxes27,197
 27,674
 24,520
    
State income taxes532
 576
 451
    
Total income taxes$27,729
 $28,250
 $24,971
 (1.8) 13.1



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In order to preserve AB Holding’s status as a “grandfathered” PTP for federal income tax purposes, management ensures that AB Holding does not directly or indirectly (through AB) enter into a substantial new line of business. If AB Holding were to lose its status as a “grandfathered” PTP, it would be subject to corporate income tax, which would reduce materially AB Holding’s net income and its quarterly distributions to AB Holding Unitholders.

We recognize the effects of a tax position in the financial statements only if, as of the reporting date, it is “more likely than not” to be sustained based solely on its technical merits.merits and their applicability to the facts and circumstances of the tax position. In making this assessment, we assume that the taxing authority will examine the tax position and have full knowledge of all relevant information. Accordingly, we have 0no liability for unrecognized tax benefits as of December 31, 20192022 and 2018.2021. A liability for unrecognized tax benefits, if required, would be recorded in income tax expense and affect the company’s effective tax rate.

As of December 31, 2019,2022, AB Holding is no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2015.2018.

7. Commitments and Contingencies

Legal and regulatory matters described below pertain to AB and are included here due to their potential significance to AB Holding’s investment in AB.

With respect to all significant litigation matters, we consider the likelihood of a negative outcome. If we determine the likelihood of a negative outcome is probable and the amount of the loss can be reasonably estimated, we record an estimated loss for the expected outcome of the litigation. If the likelihood of a negative outcome is reasonably possible and we are able to determine an estimate of the possible loss or range of loss in excess of amounts already accrued, if any, we disclose that fact together with the estimate of the possible loss or range of loss. However, it is often difficult to predict the outcome or estimate a possible loss or range of loss because litigation is subject to inherent uncertainties, particularly when plaintiffs allege substantial or indeterminate damages. Such is also the case when the litigation is in its early stages or when the litigation is highly complex or broad in scope. In these cases, we disclose that we are unable to predict the outcome or estimate a possible loss or range of loss.

On December 14th, 2022, four individual participants in the Profit Sharing Plan for Employees of AllianceBernstein L.P., (the "Plan") filed a class action complaint (the “Complaint”) in the U.S. District Court for the Southern District of New York against AB, current and former members of the Compensation Committee of the Board of Directors, and the Investment and Administrative Committees under the Plan. Plaintiffs, who seek to represent a class of all participants in the Plan from December 14, 2016 to the present, allege that defendants violated their fiduciary duties and engaged in prohibited transactions under the Employee Retirement Income Security Act of 1974, as amended ("ERISA") by including proprietary collective investment trusts as investment options offered under the Plan. The Complaint seeks unspecified damages, disgorgement and other equitable relief. AB is prepared to defend itself vigorously against these claims. While the ultimate outcome of this matter is currently not determinable given the matter remains in its early stages, we do not believe this litigation will have a material adverse effect on our results of operations, financial condition or liquidity.
AB may be involved in various other matters, including regulatory inquiries, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that AB could incur losses pertaining to these matters, but management cannot currently estimate any such losses.

Management, after consultation with legal counsel, currently believes that the outcome of any individual matter that is pending or threatened, or all of them combined, will not have a material adverse effect on our results of operations, financial condition or liquidity. However, any inquiry, proceeding or litigation has the element of uncertainty; management cannot determine whether further developments relating to any individual matter that is pending or threatened, or all of them combined, will have a material adverse effect on our results of operations, financial condition or liquidity in any future reporting period.


8. Quarterly Financial Data (Unaudited)Acquisition
On July 1, 2022, AB Holding acquired a 100% ownership interest in CarVal Investors L.P. (“CarVal”), a global private alternatives investment manager primarily focused on opportunistic and distressed credit, renewable energy, infrastructure, specialty finance and transportation investments that, as of the acquisition date, constituted approximately $12.2 billion in AUM. Also on July 1, immediately following the acquisition of CarVal, AB Holding contributed 100% of its equity interests in CarVal to AB in exchange for AB Units. Post-acquisition, CarVal was rebranded AB CarVal Investors (“AB CarVal”).
On the acquisition date, AB Holding issued approximately 3.2 million AB Holding Units (with a fair value of $132.8 million), with the remaining 12.1 million Units (with a fair value of $456.4 million) issued on November 1, 2022. The fair value of the units issued on November 1, 2022 reflects final adjustments to the estimated unit issuance recorded as of acquisition close on July 1, 2022 and as disclosed in the third quarter 2022 Form 10-Q.
 Quarters Ended 2019
 December 31 September 30 June 30 March 31
 (in thousands, except per unit amounts)
Equity in net income attributable to AB Unitholders$87,909
 $66,722
 $59,023
 $52,638
Net income$80,022
 $59,828
 $52,274
 $46,439
Basic net income per unit(1)
$0.84
 $0.62
 $0.54
 $0.49
Diluted net income per unit(1)
$0.84
 $0.62
 $0.54
 $0.49
Cash distributions per unit(2)(3)
$0.85
 $0.63
 $0.56
 $0.49
        
 Quarters Ended 2018
 December 31 September 30 June 30 March 31
 (in thousands, except per unit amounts)
Equity in net income attributable to AB Unitholders$66,759
 $72,802
 $65,388
 $65,698
Net income$59,880
 $65,900
 $58,457
 $58,160
Basic net income per unit(1)
$0.63
 $0.68
 $0.59
 $0.60
Diluted net income per unit(1)
$0.63
 $0.68
 $0.59
 $0.60
Cash distributions per unit(2)(3)
$0.64
 $0.69
 $0.62
 $0.73
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AB received 100% equity interest in CarVal from AB Holding and issued approximately 15.3 million AB Units (with a fair value of $589.2 million). AB also recorded a contingent consideration payable of $228.9 million (to be paid predominantly in AB Units) based on CarVal achieving certain performance objectives over a six-year period ending December 31, 2027. The AB Units, as discussed above, were issued to AB Holding; AB Holding then issued the equal amount of AB Holding Units to CarVal. The excess of the purchase price over the current fair value of identifiable net liabilities acquired of $156.1 million (net of cash acquired of $40.8 million), resulted in the recognition of $671.2 million of goodwill and the recording of $303.0 million of finite-lived intangible assets primarily relating to investment management contracts and investor relationships with useful lives ranging from 5 to 10 years. As a result of the transfer of equity to AB, AB recorded a net deferred tax asset of $5.1 million, resulting in the recognition of $666.1 million of goodwill. The goodwill recorded is not deductible for tax purposes as the CarVal acquisition was an investment in a partnership.
The following table summarizes the amounts of identified assets acquired and liabilities assumed at the acquisition date (reflecting acquisition adjustments recorded in the fourth quarter of 2022), as well as the consideration transferred to acquire CarVal (in thousands):
Summary of purchase consideration:
Fair value of AB Holding units issued$589,169 
Fair value of contingent consideration228,885 
Total purchase consideration818,054
(1)Purchase price allocation:
Basic
Assets acquired:
Cash and dilutedcash equivalents$40,777 
Receivables, net income per unit are computed independently for each of the periods presented. Accordingly, the sum of the quarterly82,523 
Investments - other947 
Furniture, equipment, and leasehold improvements, net income per unit amounts may not agree to the total for the year.2,464 
Right-of-use assets16,482 
Other assets10,600 
Intangible assets303,000 
Goodwill671,203 
Total assets acquired1,127,996 
(2)Liabilities assumed:
Declared
Accounts payable and paid during the following quarter.accrued expenses(17,793)
Accrued compensation and benefits(219,726)
Debt(42,661)
Lease liabilities(16,571)
Non-redeemable non-controlling interests in consolidated entities(13,191)
Total liabilities assumed(309,942)
(3)Net assets acquired
Cash distributions reflect the impact of AB’s non-GAAP adjustments.$818,054

The CarVal acquisition did not have a significant impact on our 2022 revenues and earnings. As a result, we have not provided supplemental pro forma financial information.
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Report of Independent Registered Public Accounting Firm
To the General Partner and Unitholders of AllianceBernstein L.P.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated statements of financial condition of AllianceBernstein L.P. and its subsidiaries (the “Company”) as of December 31, 20192022 and 2018,2021, and the related consolidated statements of income, of comprehensive income, of changes in partners’ capital and of cash flows for each of the three years in the period ended December 31, 2019,2022, including the related notes and financial statement schedule listed in the index appearing under Item 15(a) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2019,2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 20192022 and 2018,2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 20192022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019,2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control overOver Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Change in Accounting Principle
As discusseddescribed in Note 2 toManagement’s Report on Internal Control Over Financial Reporting, management has excluded CarVal Investors L.P. (CarVal) from its assessment of internal control over financial reporting as of December 31, 2022 because it was acquired by the Company in a purchase business combination during 2022. We have also excluded CarVal from our audit of internal control over financial reporting. CarVal is a wholly-owned subsidiary whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting each approximate 2% of the related consolidated financial statements,statement amounts as of and for the Company changed the manner in which it accounts for Leases in 2019.year ended December 31, 2022.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Acquisition of CarVal Investors L.P. - Fair Value of Finite-Lived Intangible Assets and Contingent Consideration Payable
As described in Notes 2, 9 and 24 to the consolidated financial statements, on July 1, 2022, AllianceBernstein Holding L.P. (AB Holding) acquired a 100% ownership interest in CarVal for total purchase consideration of $818.1 million, which resulted in management recording $303.0 million of finite-lived intangible assets primarily related to investment management contracts and investor relationships with useful lives ranging from 5 to 10 years and $228.9 million of contingent consideration payable. Immediately following the acquisition of CarVal by AB Holding, AB Holding contributed 100% of its equity interests in CarVal to AllianceBernstein L.P. (AB) in exchange for AB units. Fair value of the acquired finite-lived intangible assets was based on a forecast of future cash flows attributable to the assets that are discounted to present value using a risk-adjusted discount rate. Fair value of the contingent consideration payable was based on a forecast of future cash flows attributable to the performance objectives that are discounted to present value using a risk-adjusted discount rate.

The principal considerations for our determination that performing procedures relating to the fair value of the finite-lived intangible assets and contingent consideration payable recognized in the acquisition of CarVal is a critical audit matter are the significant judgment by management in developing the estimated fair value of the finite-lived intangible assets and the contingent consideration payable. This in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the future cash flows and risk-adjusted discount rate assumptions utilized within the calculation of the present value of future cash flows. In addition, the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the determination of the fair value of finite-lived intangible assets and contingent consideration payable recognized in the acquisition of CarVal, including controls over the development of the future cash flows and risk-adjusted discount rate assumptions utilized within the calculation of the present value of future cash flows. These procedures also included, among others, reading the purchase agreement and testing management’s process for estimating the fair value of the acquired finite-lived intangible assets and contingent consideration payable. Testing management’s process included (i) evaluating the appropriateness of the method used to discount future cash flows to present value, (ii) testing the completeness and accuracy of underlying data used in the method used to discount future cash flows to present value, and (iii) evaluating management’s significant assumptions related to the future cash flows and risk-adjusted discount rate. Evaluating the reasonableness of the assumption related to the future cash flows involved considering the historical performance of Carval, the consistency with external market and industry data, and the consistency with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in the evaluation of the appropriateness of the method used to discount future cash flows to present value and the reasonableness of the risk-adjusted discount rate assumption.

/s/PricewaterhouseCoopers LLP
New York, New York

Nashville, Tennessee
February 12, 202010, 2023
We have served as the Company’s auditor since 2006.


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AllianceBernstein L.P. and Subsidiaries



AllianceBernstein L.P. and Subsidiaries
Consolidated Statements of Financial Condition
Years Ended December 31
20222021
(in thousands,
except unit amounts)
ASSETS
Cash and cash equivalents$1,130,143 $1,285,700 
Cash and securities segregated, at fair value (cost $1,511,916 and $1,503,554)1,522,431 1,503,957 
Receivables, net:  
Brokers and dealers112,226 65,897 
Brokerage clients1,881,496 2,059,842 
AB funds fees314,247 340,158 
Other fees127,040 185,653 
Investments:  
Long-term incentive compensation-related47,870 63,839 
Other169,648 209,579 
Assets of consolidated company-sponsored investment funds:
Cash and cash equivalents19,751 90,326 
Investments516,536 613,025 
Other assets44,424 30,461 
Furniture, equipment and leasehold improvements, net189,258 169,175 
Goodwill3,598,591 3,091,763 
Intangible assets, net310,203 41,531 
Deferred sales commissions, net52,250 74,899 
Right-of-use assets371,898 421,980 
Assets held for sale551,351 — 
Other assets179,568 262,303 
Total assets$11,138,931 $10,510,088 
 December 31,
 2019 2018
 (in thousands,
except unit amounts)
ASSETS   
Cash and cash equivalents$679,738
 $640,206
Cash and securities segregated, at fair value (cost $1,090,443 and $1,169,461)1,094,866
 1,169,554
Receivables, net: 
  
Brokers and dealers97,966
 197,048
Brokerage clients1,536,674
 1,718,629
AB funds fees261,588
 217,470
Other fees148,744
 127,462
Investments: 
  
Long-term incentive compensation-related50,902
 52,429
Other215,892
 661,915
Assets of consolidated company-sponsored investment funds:   
   Cash and cash equivalents11,433
 13,118
   Investments581,004
 351,696
   Other assets19,810
 22,840
Furniture, equipment and leasehold improvements, net145,251
 155,519
Goodwill3,076,926
 3,066,700
Intangible assets, net55,366
 79,424
Deferred sales commissions, net36,296
 17,148
Right-of-use assets362,693
 —
Other assets330,943
 297,940
Total assets$8,706,092
 $8,789,098
    
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND CAPITAL 
  
Liabilities: 
  
Payables: 
  
Brokers and dealers$201,778
 $290,960
Securities sold not yet purchased30,157
 8,623
Brokerage clients2,531,946
 3,095,458
AB mutual funds71,142
 74,599
Accounts payable and accrued expenses192,110
 412,313
Lease liabilities468,451
 —
Liabilities of consolidated company-sponsored investment funds31,017
 22,610
Accrued compensation and benefits276,829
 273,250
Debt:   
EQH facility560,000
 —
Other—
 546,267
Total liabilities4,363,430
 4,724,080

 December 31,
 2019 2018
Commitments and contingencies (See Note 14)
   
Redeemable non-controlling interest325,561
 148,809
Capital: 
  
General Partner41,225
 40,240
Limited partners: 270,380,314 and 268,850,276 units issued and outstanding4,174,201
 4,075,306
Receivables from affiliates(9,011) (11,430)
AB Holding Units held for long-term incentive compensation plans(76,310) (77,990)
Accumulated other comprehensive loss(113,004) (110,866)
Partners’ capital attributable to AB Unitholders4,017,101
 3,915,260
Non-redeemable non-controlling interests in consolidated entities—
 949
Total capital4,017,101
 3,916,209
Total liabilities, redeemable non-controlling interest and capital$8,706,092
 $8,789,098
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Years Ended December 31
20222021
(in thousands,
except unit amounts)
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND CAPITAL
Liabilities:  
Payables:  
Brokers and dealers$389,828 $265,957 
Securities sold not yet purchased— 3,828 
Brokerage clients3,322,903 3,603,558 
AB mutual funds162,291 94,962 
Contingent consideration liability247,309 38,260 
Accounts payable and accrued expenses173,466 219,047 
Lease liabilities427,479 490,735 
Liabilities of consolidated company-sponsored investment funds55,529 87,000 
Accrued compensation and benefits415,878 369,649 
Debt990,000 755,000 
Liabilities held for sale107,952 — 
Total liabilities6,292,635 5,927,996 
Commitments and contingencies (See Note 14)
Redeemable non-controlling interest of consolidated entities368,656 421,169 
Capital:  
General Partner45,985 42,850 
Limited partners: 285,979,913 and 271,453,043 units issued and outstanding4,648,113 4,336,211 
Receivables from affiliates(4,270)(8,333)
AB Holding Units held for long-term incentive compensation plans(95,318)(119,470)
Accumulated other comprehensive loss(129,477)(90,335)
Partners’ capital attributable to AB Unitholders4,465,033 4,160,923 
Non-redeemable non-controlling interests in consolidated entities12,607 — 
Total capital4,477,640 4,160,923 
Total liabilities, non-controlling interest and capital$11,138,931 $10,510,088 
See Accompanying Notes to Consolidated Financial Statements.


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Consolidated Statements of Income
Years Ended December 31,Years Ended December 31
2019 2018 2017202220212020
(in thousands, except per unit amounts)(in thousands, except per unit amounts)
Revenues:     Revenues:
Investment advisory and services fees$2,472,044
 $2,362,211
 $2,201,305
Investment advisory and services fees$2,971,038 $3,194,524 $2,595,436 
Bernstein research services407,911
 439,432
 449,919
Bernstein research services416,273 452,017 459,744 
Distribution revenues455,043
 418,562
 412,063
Distribution revenues607,195 652,240 529,781 
Dividend and interest income104,421
 98,226
 71,162
Dividend and interest income123,091 38,734 50,923 
Investment gains (losses)38,659
 2,653
 92,102
Investment (losses)Investment (losses)(102,413)(636)(16,401)
Other revenues97,559
 98,676
 97,135
Other revenues105,544 108,409 104,703 
Total revenues3,575,637
 3,419,760
 3,323,686
Total revenues4,120,728 4,445,288 3,724,186 
Less: Interest expense57,205
 52,399
 25,165
Less: Interest expense66,438 3,686 15,650 
Net revenues3,518,432
 3,367,361
 3,298,521
Net revenues4,054,290 4,441,602 3,708,536 
     
Expenses: 
  
  
Expenses:   
Employee compensation and benefits1,442,783
 1,378,811
 1,313,469
Employee compensation and benefits1,666,636 1,716,013 1,494,198 
Promotion and servicing: 
  
  
Promotion and servicing:   
Distribution-related payments487,965
 427,186
 411,467
Distribution-related payments629,572 708,117 569,283 
Amortization of deferred sales commissions15,029
 21,343
 31,886
Amortization of deferred sales commissions34,762 34,364 27,355 
Trade execution, marketing, T&E and other219,860
 222,630
 213,275
Trade execution, marketing, T&E and other215,556 197,486 189,787 
General and administrative: 
  
  
General and administrative484,750
 448,996
 481,488
General and administrative641,635 555,608 491,070 
Real estate charges3,324
 7,160
 36,669
Contingent payment arrangements(510) (2,219) 267
Contingent payment arrangements6,563 2,710 1,855 
Interest on borrowings13,035
 10,359
 8,194
Interest on borrowings17,906 5,145 6,180 
Amortization of intangible assets28,759
 27,781
 27,896
Amortization of intangible assets26,564 5,697 21,372 
Total expenses2,694,995
 2,542,047
 2,524,611
Total expenses3,239,194 3,225,140 2,801,100 
     
Operating income823,437
 825,314
 773,910
Operating income815,096 1,216,462 907,436 
     
Income tax41,754
 45,816
 53,110
Income tax39,639 62,728 45,653 
     
Net income781,683
 779,498
 720,800
Net income775,457 1,153,734 861,783 
     
Net income of consolidated entities attributable to non-controlling interests29,641
 21,910
 58,397
     
Net (loss) income of consolidated entities attributable to non-controlling interestsNet (loss) income of consolidated entities attributable to non-controlling interests(56,356)5,111 (4,169)
Net income attributable to AB Unitholders$752,042
 $757,588
 $662,403
Net income attributable to AB Unitholders$831,813 $1,148,623 $865,952 
     
Net income per AB Unit: 
  
  
Net income per AB Unit:   
Basic$2.78
 $2.79
 $2.46
Basic$3.01 $4.18 $3.19 
Diluted$2.78
 $2.78
 $2.45
Diluted$3.01 $4.18 $3.19 
See Accompanying Notes to Consolidated Financial Statements.


80AllianceBernstein
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AllianceBernstein L.P. and Subsidiaries
Consolidated Statements of Comprehensive Income
Years Ended December 31,Years Ended December 31
2019 2018 2017202220212020
(in thousands)(in thousands)
Net income$781,683
 $779,498
 $720,800
Net income$775,457 $1,153,734 $861,783 
Other comprehensive (loss) income:     
Other comprehensive income:Other comprehensive income:
Foreign currency translation adjustments, before reclassification and tax:5,986
 (19,337) 28,123
Foreign currency translation adjustments, before reclassification and tax:(47,208)(7,839)23,882 
Less: reclassification adjustment for losses included in net income upon liquidation—
 (100) —
Less: reclassification adjustment for gains (losses) included in net income upon liquidationLess: reclassification adjustment for gains (losses) included in net income upon liquidation— 4,458 (216)
Foreign currency translation adjustments, before tax5,986
 (19,237) 28,123
Foreign currency translation adjustments, before tax(47,208)(12,297)24,098 
Income tax expense(383) 620
 —
Income tax benefit (expense)Income tax benefit (expense)1,215 457 (854)
Foreign currency translation adjustments, net of tax5,603
 (18,617) 28,123
Foreign currency translation adjustments, net of tax(45,993)(11,840)23,244 
Unrealized gains on investments:     
Unrealized gains arising during period—
 —
 6
Income tax benefit—
 —
 3
Unrealized gains on investments, net of tax—
 —
 9
Changes in employee benefit related items: 
  
  
Changes in employee benefit related items:
Amortization of prior service cost24
 24
 24
Amortization of prior service cost24 24 24 
Recognized actuarial (loss) gain(7,891) 1,586
 (3,190)
Recognized actuarial gain (loss)Recognized actuarial gain (loss)6,922 15,743 (4,280)
Changes in employee benefit related items(7,867) 1,610
 (3,166)Changes in employee benefit related items6,946 15,767 (4,256)
Income tax benefit (expense)274
 (139) (27)
Income tax (expense)Income tax (expense)(95)(59)(187)
Employee benefit related items, net of tax(7,593) 1,471
 (3,193)Employee benefit related items, net of tax6,851 15,708 (4,443)
Other—
 374
 —
Other comprehensive (loss) gain(1,990) (16,772) 24,939
Other comprehensive (loss) gain(39,142)3,868 18,801 
Less: Comprehensive income in consolidated entities attributable to non-controlling interests29,788
 21,864
 59,379
Less: Comprehensive (loss) income in consolidated entities attributable to non-controlling interestsLess: Comprehensive (loss) income in consolidated entities attributable to non-controlling interests(56,356)5,111 (4,169)
Comprehensive income attributable to AB Unitholders$749,905
 $740,862
 $686,360
Comprehensive income attributable to AB Unitholders$792,671 $1,152,491 $884,753 
See Accompanying Notes to Consolidated Financial Statements.

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AllianceBernstein L.P. and Subsidiaries
Consolidated Statements of Changes in Partners’ Capital
 Years Ended December 31,
 2019 2018 2017
 (in thousands)
General Partner’s Capital     
Balance, beginning of year$40,240
 $41,221
 $41,100
Net income7,521
 7,576
 6,624
Cash distributions to General Partner(7,042) (8,608) (6,449)
Long-term incentive compensation plans activity149
 (39) 211
Issuance (retirement) of AB Units, net357
 (256) (266)
Impact of adoption of revenue recognition standard ASC 606—
 349
 —
Other—
 (3) 1
Balance, end of year41,225
 40,240
 41,221
Limited Partners' Capital     
Balance, beginning of year4,075,306
 4,168,841
 4,154,810
Net income744,521
 750,012
 655,779
Cash distributions to Unitholders(696,470) (849,585) (637,690)
Long-term incentive compensation plans activity14,741
 (3,880) 20,859
Issuance (retirement) of AB Units, net35,259
 (25,486) (27,339)
Impact of adoption of revenue recognition standard ASC 606—
 34,601
 —
Other844
 803
 2,422
Balance, end of year4,174,201
 4,075,306
 4,168,841
Receivables from Affiliates     
Balance, beginning of year(11,430) (11,494) (12,830)
Capital contributions from General Partner—
 19
 344
Compensation plan accrual—
 352
 156
Long-term incentive compensation awards expense1,125
 —
 —
Capital contributions from AB Holding1,294
 (307) 836
Balance, end of year(9,011) (11,430) (11,494)
AB Holding Units held for Long-term Incentive Compensation Plans     
Balance, beginning of year(77,990) (42,688) (32,967)
Purchases of AB Holding Units to fund long-term compensation plans, net(171,930) (267,427) (219,627)
(Issuance) retirement of AB Units, net(35,736) 25,589
 26,603
Long-term incentive compensation awards expense207,057
 187,514
 185,234
Re-valuation of AB Holding Units held in rabbi trust(4,403) 19,022
 (1,931)
Other6,692
 —
 —
Balance, end of year(76,310) (77,990) (42,688)
Accumulated Other Comprehensive Income (Loss)     
Balance, beginning of year(110,866) (94,140) (118,096)
Foreign currency translation adjustment, net of tax5,455
 (18,571) 27,140
Changes in employee benefit related items, net of tax(7,593) 1,471
 (3,193)
Unrealized gain on investments, net of tax—
 —
 9
Other—
 374
 —
Balance, end of year(113,004) (110,866) (94,140)
Total Partners' Capital attributable to AB Unitholders4,017,101
 3,915,260
 4,061,740

Years Ended December 31
Years Ended December 31,202220212020
2019 2018 2017(in thousands)
General Partner’s CapitalGeneral Partner’s Capital
Balance, beginning of yearBalance, beginning of year$42,850 $41,776 $41,225 
Net incomeNet income8,318 11,486 8,660 
Cash distributions to General PartnerCash distributions to General Partner(10,715)(10,605)(8,376)
Long-term incentive compensation plans activityLong-term incentive compensation plans activity25 117 (23)
(Retirement) issuance of AB Units, net(Retirement) issuance of AB Units, net(385)76 290 
Issuance of AB Units for CarVal acquisitionIssuance of AB Units for CarVal acquisition5,892 — — 
Balance, end of yearBalance, end of year45,985 42,850 41,776 
Limited Partners' CapitalLimited Partners' Capital
Balance, beginning of yearBalance, beginning of year4,336,211 4,229,485 4,174,201 
Net incomeNet income823,495 1,137,137 857,292 
Cash distributions to UnitholdersCash distributions to Unitholders(1,059,105)(1,049,287)(828,503)
Long-term incentive compensation plans activityLong-term incentive compensation plans activity2,521 11,586 (2,147)
(Retirement) issuance of AB Units, net(Retirement) issuance of AB Units, net(38,286)7,290 28,642 
Issuance of AB Units for CarVal acquisitionIssuance of AB Units for CarVal acquisition583,277 — — 
Balance, end of yearBalance, end of year4,648,113 4,336,211 4,229,485 
Receivables from AffiliatesReceivables from Affiliates
Balance, beginning of yearBalance, beginning of year(8,333)(8,316)(9,011)
Long-term incentive compensation awards expenseLong-term incentive compensation awards expense607 941 802 
Capital contributions from (to) AB HoldingCapital contributions from (to) AB Holding3,456 (958)(107)
Balance, end of yearBalance, end of year(4,270)(8,333)(8,316)
AB Holding Units held for Long-term Incentive Compensation PlansAB Holding Units held for Long-term Incentive Compensation Plans
Balance, beginning of yearBalance, beginning of year(119,470)(57,219)(76,310)
Purchases of AB Holding Units to fund long-term compensation plans, netPurchases of AB Holding Units to fund long-term compensation plans, net(210,568)(261,825)(148,624)
Retirement (issuance) of AB Units, netRetirement (issuance) of AB Units, net40,346 (7,348)(28,696)
Long-term incentive compensation awards expenseLong-term incentive compensation awards expense198,783 215,484 194,840 
Re-valuation of AB Holding Units held in rabbi trustRe-valuation of AB Holding Units held in rabbi trust(4,240)(9,690)1,556 
OtherOther(169)1,128 15 
Balance, end of yearBalance, end of year(95,318)(119,470)(57,219)
Accumulated Other Comprehensive (Loss)Accumulated Other Comprehensive (Loss)
Balance, beginning of yearBalance, beginning of year(90,335)(94,203)(113,004)
Foreign currency translation adjustment, net of taxForeign currency translation adjustment, net of tax(45,993)(11,840)23,244 
Changes in employee benefit related items, net of taxChanges in employee benefit related items, net of tax6,851 15,708 (4,443)
Balance, end of yearBalance, end of year(129,477)(90,335)(94,203)
Total Partners' Capital attributable to AB UnitholdersTotal Partners' Capital attributable to AB Unitholders4,465,033 4,160,923 4,111,523 
Non-redeemable Non-controlling Interests in Consolidated Entities 
  
  
Non-redeemable Non-controlling Interests in Consolidated Entities
Balance, beginning of year949
 1,564
 36,172
Balance, beginning of year— — — 
Net income91
 69
 9,632
Foreign currency translation adjustment147
 (46) 983
Purchase of non-controlling interest(1,187) —
 (2,006)
Distributions (to) non-controlling interests of our consolidated venture capital fund activities—
 (638) (43,217)
CarVal acquisitionCarVal acquisition12,607 — — 
Balance, end of year—
 949
 1,564
Balance, end of year12,607 — — 
Total Capital$4,017,101
 $3,916,209
 $4,063,304
Total Capital$4,477,640 $4,160,923 $4,111,523 
See Accompanying Notes to Consolidated Financial Statements.

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Consolidated Statements of Cash Flows
 Years Ended December 31,
 2019 2018 2017
 (in thousands)
Cash flows from operating activities:     
Net income$781,683
 $779,498
 $720,800
Adjustments to reconcile net income to net cash provided by operating activities:     
Amortization of deferred sales commissions15,029
 21,343
 31,886
Non-cash long-term incentive compensation expense208,182
 187,514
 185,234
Depreciation and other amortization166,542
 70,000
 66,999
Unrealized (gains) losses on investments(13,431) 23,164
 3,554
Unrealized (gains) on investments of consolidated company-sponsored investment funds(36,150) (14,217) (36,340)
Other, net10,281
 (6,446) 13,189
Changes in assets and liabilities:     
Decrease (increase) in securities, segregated74,688
 (353,204) 129,747
Decrease (increase) in receivables223,137
 (207,000) 67,539
Decrease (increase) in investments460,347
 (294,383) 293
(Increase) decrease in investments of consolidated company-sponsored investment funds(193,158) 908,804
 (639,067)
(Increase) decrease in deferred sales commissions(34,177) (8,365) 1,878
(Increase) in right-of-use assets(11,141) —
 —
(Increase) in other assets(23,140) (152,726) (2,255)
Increase (decrease) in other assets and liabilities of consolidated company-sponsored investment funds, net11,437
 (662,934) 417,674
(Decrease) increase in payables(641,369) 1,024,317
 (338,523)
(Decrease) in lease liabilities(107,276) —
 —
(Decrease) increase in accounts payable and accrued expenses(56,518) (11,225) 10,657
(Decrease) increase in accrued compensation and benefits(7,486) 4,341
 12,187
Net cash provided by operating activities827,480
 1,308,481
 645,452
      
Cash flows from investing activities:     
Purchases of investments—
 —
 (12)
Proceeds from sales of investments—
 —
 11
Purchases of furniture, equipment and leasehold improvements(28,303) (32,789) (39,417)
Proceeds from sales of furniture, equipment and leasehold improvements—
 —
 75
Acquisition of businesses, net of cash acquired5,255
 —
 —
Net cash used in investing activities(23,048) (32,789) (39,343)
      

Years Ended December 31
Years Ended December 31,202220212020
2019 2018 2017(in thousands)
Cash flows from operating activities:Cash flows from operating activities:
Net incomeNet income$775,457 $1,153,734 $861,783 
Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred sales commissionsAmortization of deferred sales commissions34,762 34,364 27,355 
Non-cash long-term incentive compensation expenseNon-cash long-term incentive compensation expense199,390 216,425 195,642 
Depreciation and other amortizationDepreciation and other amortization66,617 44,985 61,028 
Unrealized losses on investmentsUnrealized losses on investments40,857 4,454 10,405 
Unrealized losses (gains) on investments of consolidated company-sponsored investment fundsUnrealized losses (gains) on investments of consolidated company-sponsored investment funds73,194 1,882 (854)
Non-cash lease expenseNon-cash lease expense99,861 98,773 98,798 
Loss on assets held for saleLoss on assets held for sale7,400 — — 
Other, netOther, net14,604 22,580 (2,914)
Changes in assets and liabilities:Changes in assets and liabilities:
(Increase) decrease in securities, segregated(Increase) decrease in securities, segregated(18,474)249,521 (658,612)
Decrease (increase) in receivablesDecrease (increase) in receivables35,410 (360,789)(182,684)
(Increase) decrease in investments(Increase) decrease in investments(10,331)(27,000)7,597 
Decrease (increase) in investments of consolidated company-sponsored investment fundsDecrease (increase) in investments of consolidated company-sponsored investment funds23,295 (312,325)279,276 
(Increase) in deferred sales commissions(Increase) in deferred sales commissions(12,113)(45,197)(55,125)
(Increase) decrease in other assets(Increase) decrease in other assets(5,487)(6,578)69,160 
(Increase) decrease in other assets and liabilities of consolidated company-sponsored investment funds, net(Increase) decrease in other assets and liabilities of consolidated company-sponsored investment funds, net(45,432)38,161 7,169 
Increase in payablesIncrease in payables110,112 214,139 861,502 
(Decrease) increase in accounts payable and accrued expenses(Decrease) increase in accounts payable and accrued expenses(8,424)35,877 10,666 
(Decrease) increase in accrued compensation and benefits(Decrease) increase in accrued compensation and benefits(150,285)50,545 46,885 
Cash payments to relieve operating lease liabilitiesCash payments to relieve operating lease liabilities(109,182)(114,769)(115,656)
Net cash provided by operating activitiesNet cash provided by operating activities1,121,231 1,298,782 1,521,421 
Cash flows from investing activities:Cash flows from investing activities:
Purchases of equity method investmentsPurchases of equity method investments— — (4,079)
Purchases of furniture, equipment and leasehold improvementsPurchases of furniture, equipment and leasehold improvements(62,308)(61,931)(41,504)
Acquisition of businesses, net of cash acquiredAcquisition of businesses, net of cash acquired40,282 (3,793)(13,552)
Net cash used in investing activitiesNet cash used in investing activities(22,026)(65,724)(59,135)
Cash flows from financing activities:     Cash flows from financing activities:
(Repayment) issuance of commercial paper, net(532,895) 24,546
 (28,553)
Proceeds from EQH facility560,000
 —
 —
(Repayment) proceeds from bank loans(25,000) (50,000) 75,000
Proceeds from debt, netProceeds from debt, net235,000 80,000 115,000 
(Decrease) increase in overdrafts payable(59,924) 3,273
 63,393
(Decrease) increase in overdrafts payable(25,411)16,192 (12,633)
Distributions to General Partner and Unitholders(703,512) (858,193) (644,139)Distributions to General Partner and Unitholders(1,069,820)(1,059,892)(836,879)
Capital contributions (to) non-controlling interests in consolidated entities—
 (638) (43,217)
Purchases (redemptions) of non-controlling interests of consolidated company-sponsored investment funds, net150,091
 (472,143) 163,164
Subscriptions (redemptions) of non-controlling interests of consolidated company-sponsored investment funds, netSubscriptions (redemptions) of non-controlling interests of consolidated company-sponsored investment funds, net3,843 313,699 (219,033)
Capital contributions from (to) affiliates269
 (1,421) 366
Capital contributions from (to) affiliates1,590 (2,346)(867)
Payments of contingent payment arrangements/purchase of shares(1,991) (1,093) (7,592)
Additional investments by AB Holding with proceeds from exercise of compensatory options to buy AB Holding Units11,511
 16,589
 20,110
Additional investments by AB Holding with proceeds from exercise of compensatory options to buy AB Holding Units178 3,402 147 
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net(171,930) (267,427) (219,627)Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net(210,568)(261,825)(148,624)
Other(1,580) (2,151) (2,836)
Payment of acquisition-related debt obligationPayment of acquisition-related debt obligation(42,661)— — 
Other, netOther, net(2,131)(2,186)306 
Net cash used in financing activities(774,961) (1,608,658) (623,931)Net cash used in financing activities(1,109,980)(912,956)(1,102,583)
Effect of exchange rate changes on cash and cash equivalents8,376
 (12,158) 21,760
Effect of exchange rate changes on cash and cash equivalents(56,234)(17,982)23,032 
Net increase (decrease) in cash and cash equivalents37,847
 (345,124) 3,938
Net (decrease) increase in cash and cash equivalentsNet (decrease) increase in cash and cash equivalents(67,009)302,120 382,735 
Cash and cash equivalents as of beginning of the period653,324
 998,448
 994,510
Cash and cash equivalents as of beginning of the period1,376,026 1,073,906 691,171 
Cash and cash equivalents as of end of the period$691,171
 $653,324
 $998,448
Cash and cash equivalents as of end of the period$1,309,017 $1,376,026 $1,073,906 
     
Cash paid:     Cash paid:
Interest paid$66,002
 $60,286
 $30,975
Interest paid$78,434 $5,263 $18,858 
Income taxes paid52,444
 41,946
 67,421
Income taxes paid55,473 55,656 59,791 
     
Non-cash investing activities:     Non-cash investing activities:
Fair value of assets acquired (excluding cash acquired of $11.8 million)28,966
 —
 —
Fair value of assets acquired (excluding cash acquired of $40.8 million, $2.8 million and $0.6 million, for 2022, 2021 and 2020, respectively)Fair value of assets acquired (excluding cash acquired of $40.8 million, $2.8 million and $0.6 million, for 2022, 2021 and 2020, respectively)1,085,141 13,235 18,389 
Fair value of deferred tax asset recordedFair value of deferred tax asset recorded5,072 — — 
Fair value of liabilities assumed16,837
 —
 —
Fair value of liabilities assumed296,750 1,642 437 
Fair value of non-redeemable non-controlling interest recordedFair value of non-redeemable non-controlling interest recorded13,191 — — 
Non-cash financing activities:     Non-cash financing activities:
Payables recorded under contingent payment arrangements17,384
 —
 —
Payables recorded under contingent payment arrangements231,385 7,800 4,400 
Equity consideration issued in connection with acquisitionEquity consideration issued in connection with acquisition589,169 — — 
See Accompanying Notes to Consolidated Financial Statements.


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Part II
AllianceBernstein L.P. and Subsidiaries
Notes to Consolidated Financial Statements
The words “we” and “our” refer collectively to AllianceBernstein L.P. and its subsidiaries (“AB”), or to their officers and employees. Similarly, the word “company” refers to AB. Cross-references are in italics.
1. Business Description and Organization
We provide research, diversified investment management, research and related services globally to a broad range of clients. Our principal services include:
•
Institutional Services—
•Institutional Services—servicing our institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as Equitable Holdings, Inc. ("EQH") and its subsidiaries, by means of separately managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles.
•EQH") and its subsidiaries, by means of separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles.
Retail Services—Services—servicing our retail clients, primarily by means of retail mutual funds sponsored by AB or an affiliated company, sub-advisory relationships with mutual funds sponsored by third parties, separately-managedseparately managed account programs sponsored by financial intermediaries worldwide and other investment vehicles.
•Private Wealth Management Services—Services—servicing our private clients, including high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, by means of separately-managedseparately managed accounts, hedge funds, mutual funds and other investment vehicles.
•Bernstein Research Services—Services—servicing institutional investors, such as pension fund, hedge fund and mutual fund managers, seeking high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options.
We also provide distribution, shareholder servicing, transfer agency services and administrative services to the mutual funds we sponsor.
Our high-quality, in-depth research is the foundation of our business.asset management and private wealth management businesses. Our research disciplines include economic, fundamental equity, fixed income and quantitative research. In addition, we have experts focused onexpertise in multi-asset strategies, wealth management, environmental, social and corporate governance ("ESG"), and alternative investments.
We provide a broad range of investment services with expertise in:
•
Actively-managed equity strategies, with global and regional portfolios across capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities;
Actively-managed•Actively managed equity strategies across global and regional universes, as well as capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities;
•Actively managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies;
Passive management, including index and enhanced index strategies;
Alternative•Actively managed alternative investments, including hedge funds, fund of funds and direct assets (e.g., direct lending, real estate and private equity;equity);
•Portfolios with Purpose, including actively managed, impact-focused and Responsible+ (climate-conscious, ESG leaders, change catalysts) equity, fixed income and multi-asset strategies that address our clients evolving need to invest their capital with purpose while pursuing strong investment returns;
•Multi-asset solutionsservices and services,solutions, including dynamic asset allocation, customized target-date funds and target-risk funds.
Our services span various investment disciplines, including market capitalization (e.g., large-, mid-funds; and small-cap equities), term (e.g., long-, intermediate- and short-duration debt securities), and geographic location (e.g., U.S., international, global, emerging markets, regional and local), in major markets around the world.
During the second quarter•Some passive management, including index, ESG index and enhanced index strategies.
84AllianceBernstein
Table of 2018, AXA S.A. ("ContentsAXA")completed the sale of a minority stake in EQH through an initial public offering ("IPO"). Since then, AXA has completed additional offerings and taken other steps, most recently during the fourth quarter of 2019. As a result, AXA owned less than 10% of the outstanding common stock of EQH as of December 31, 2019.
Part II
Organization
As of December 31, 2019,2022, EQH owned approximately 4.1%3.5% of the issued and outstanding units representing assignments of beneficial ownership of limited partnership interests in AllianceBernstein Holding L.P. (“AB Holding Units”). AllianceBernstein Corporation (an indirect wholly-owned subsidiary of EQH, “General Partner”) is the general partner of both AllianceBernstein Holding L.P. (“AB Holding”) and AB. AllianceBernstein Corporation owns 100,000 general partnership units in AB Holding and a 1% general partnership interest in AB.

As of December 31, 2019,2022, the ownership structure of AB, including limited partnership units outstanding as well as the general partner's 1% interest, was as follows:
EQH and its subsidiaries63.359.9 %
AB Holding36.039.4 
Unaffiliated holders0.7
100.0%
Including both the general partnership and limited partnership interests in AB Holding and AB, EQH and its subsidiaries had an approximate 64.8%61.3% economic interest in AB as of December 31, 2019.2022.
2. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Principles of Consolidation
The consolidated financial statements include AB and its majority-owned and/or controlled subsidiaries, and the consolidated entities that are considered to be variable interest entities ("VIEs") and voting interest entities ("VOEs") in which AB has a controlling financial interest. Non-controlling interests on the consolidated statements of financial condition include the portion of consolidated company-sponsored investment funds in which we do not have direct equity ownership. All significant inter-company transactions and balances among the consolidated entities have been eliminated.
Recently Adopted Accounting Pronouncements
In February 2016, the Financial or Accounting Standards Board ("FASB") issued ASU 2016-02, Leases. This pronouncement, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-02 is now referred to as Accounting Standards Codification 842 ("ASC 842"). The standard requires a lessee to record most leases on its balance sheet while also disclosing key information about those lease arrangements. The classification criteria to distinguish between finance and operating leases are generally consistent with the classification criteria to distinguish between capital and operating leases under previous lease accounting guidance. We adopted this new standard on January 1, 2019 using the modified retrospective method. Prior comparable periods will not be adjusted under this method.
We applied several practical expedients offered by ASC 842 upon adoption of this standard. These included continuing to account for existing leases based on judgments made under legacy US GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used a practical expedient to use hindsight in determining the lease terms (using knowledge and expectations as of the standard's adoption date instead of the previous assumptions under legacy US GAAP) and evaluating impairment of our right-of-use assets in the transition period (using our most up-to-date information).
Adoption of this standard resulted in the recording of operating right-of-use assets and lease liabilities of $438.7 million and $574.5 million, respectively, and financing right-of-use assets and lease liabilities of $2.4 million as of January 1, 2019. The operating right-of-use assets recognized as of January 1, 2019 are net of deferred rent of $50.0 million and liabilities associated with previously recognized impairments of $85.8 million. See Note 13, Leases, for additional disclosures.
In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits a company to reclassify the disproportionate income tax effects of the 2017 Tax Cuts and Job Act ("2017 Tax Act") on items within Accumulated Other Comprehensive Income ("AOCI") to retained earnings. The FASB refers to these amounts as "stranded tax effects." The ASU also requires certain new disclosures, some of which are applicable for all companies. We adopted this standard on January 1, 2019. The adoption of this standard had no impact on our financial condition or results of operations.
Pronouncements




Accounting Pronouncements Not Yet Adopted in 2019

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). This new guidance relatesDuring 2022, there have been no recently adopted accounting pronouncements or pronouncements not yet adopted that have or are expected to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The new guidance will not have a material impact on our financial condition orconsolidated results of operations.
In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. As a result of the revised guidance, a goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The revised guidance will be applied prospectively and is effective for financial statements issued for fiscal years beginning after December 15, 2019. The revised guidance will not have a material impact on our financial condition or results of operations.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendment modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The revised guidance is effective for all companies for fiscal years beginning after December 15, 2019, and interim periods within those years. Companies are permitted to early adopt any eliminated or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The revised guidance will not have a material impact on our financial condition or results of operations.
In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20). The amendment modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The revised guidance is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The revised guidance will not have a material impact on our financial condition or results of operations.
In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements that currently exist in US GAAP for capitalizing implementation costs incurred to develop or obtain internal-use software. Implementation costs would either be capitalized or expensed as incurred depending on the project stage. All costs in the preliminary and post-implementation project stages are expensed as incurred, while certain costs within the application development stage are capitalized. The revised guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The revised guidance will be adopted prospectively and will not have a material impact on our financial condition or results of operations.
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify US GAAP for other areas of Topic 740 by clarifying and amending the existing guidance. The revised guidance is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. Management currently is evaluating the impact that adoption of this standard will have on our consolidated financial statements.
Revenue Recognition

Investment advisory and services fees
Investment Advisory and Services Fees
AB provides asset management services by managing customer assets and seeking to deliver investment returns to investors. Each investment management contract between AB and a customer creates a distinct, separately identifiable performance obligation for each day the customer’s assets are managed as the customer can benefit from each day of service. In accordance with ASC 606, a series of distinct goods and services that are substantially the same and have the same pattern of transfer to the customer are treated as a single performance obligation. Accordingly, we have determined that our investment and advisory services are performed over time and entitle us to variable consideration earned based on the value of the investors’ assets under management (“AUM”).

We calculate AUM using established market-based valuation methods and fair valuation (non-observable market) methods. Market-based valuation methods include: last sale/settle prices from an exchange for actively-traded listed equities, options and futures;

evaluated bid prices from recognized pricing vendors for fixed income, asset-backed or mortgage-backed issues; mid prices from recognized pricing vendors and brokers for credit default swaps; and quoted bids or spreads from pricing vendors and brokers for other derivative products. Fair valuation methods include: discounted cash flow models or any other
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methodology that is validated and approved by our Valuation Committee (see paragraph immediately below for additional information about our Valuation Committee). Fair valuation methods are used only where AUM cannot be valued using market-based valuation methods, such as in the case of private equity or illiquid securities.

The Valuation Committee, which consists of senior officers and employees, is responsible for overseeing the pricing and valuation of all investments held in client and AB portfolios. The Valuation Committee has adopted a Statement of Pricing Policies describing principles and policies that apply to pricing and valuing investments held in these portfolios. We also have a Pricing Group, which reports to the Valuation Committee and is responsible for overseeing the pricing process for all investments.

We record as revenue investment advisory and services base fees, which we generally calculate as a percentage of AUM. At month-end, all the components of the transaction price (i.e., the base fee calculation) are no longer variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. 

The transaction price for the asset management performance obligation for certain investment advisory contracts, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, which is calculated as either a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. The performance-based fees are forms of variable consideration and are therefore excluded from the transaction price until it becomes probable that there will not be significant reversal of the cumulative revenue recognized. At each reporting date, we evaluate the constraining factors, discussed below, surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized.

Constraining factors impacting the amount of variable consideration included in the transaction price include: the contractual claw-back provisions to which the variable consideration is subject, the length of time to which the uncertainty of the consideration is subject, the number and range of possible consideration amounts, the probability of significant fluctuations in the fund’s market value, the level at which the fund’s value exceeds the contractual threshold required to earn such a fee, and the materiality of the amount being evaluated.

Bernstein Research Services
Bernstein Research Services revenue consists principally of commissions received, and to a lesser but increasing extent, direct payments for trade execution services and providing equity research services provided to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the pointtime of each trade and is based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured and significant reversal of such revenue is not probable.

In the fourth quarter of 2022, AB and Société Générale (EURONEXT: SCGLY, “SocGen”), a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the Bernstein Research Services ("BRS") business has been classified as held for sale. For further discussion, see Note 24 Acquisitions and Divestitures.
Distribution Revenues
Two of our subsidiaries act as distributors and/or placement agents of company-sponsored mutual funds and receive distribution services fees from certain of those funds as full or partial reimbursement of the distribution expenses they incur. The variable consideration can be determined in different ways, as discussed below, as we satisfy the performance obligation depending on the contractual arrangements with the customer and the specific product sold.

Most open-end U.S. funds have adopted a plan under Rule 12b-1 of the Investment Company Act that allows the fund to pay, out of assets of the fund, distribution and service fees for the distribution and sale of its shares (“Rule 12b-1 Feesfees”). The open-end U.S. funds have such agreements with us, and we have selling and distribution agreements pursuant to which we pay sales commissions to the financial intermediaries that distribute our open-end U.S. funds. These agreements are terminable by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of fund shares.

We record 12b-1 fees monthly based upon a percentage of the net asset value (“NAV”) of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. We accrue the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. We are acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis.


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We offer back-end load shares in limited instances and charge the investor a contingent deferred sales charge (“CDSC”) if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent on the timing of the redemption by the investor and the value of the sale proceeds. Due to these constraining factors, we exclude the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements are recorded as reductions of unamortized deferred sales commissions.

Our Luxembourg subsidiary, the management company for most of our non-U.S. funds, earns a management fee that is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee may also contain a component that is paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an All-in-Fee). As we have concluded that asset management is distinct from distribution, we allocate a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices.

Other Revenues
Revenues from contracts with customers include a portion of other revenues, which consists primarily of shareholder servicing fees, as well as mutual fund reimbursements and other brokerage income.

We provide shareholder services, which include transfer agency, administrative and recordkeeping services provided to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-feefixed fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the number of shareholders’ accounts are resolved.

Non-Contractual Revenues
Dividend and interest income is accrued as earned. Investment gains and losses on the consolidated statements of income include unrealized gains and losses of trading and private equity investments stated at fair value, equity in earnings of our limited partnership hedge fund investments, and realized gains and losses on investments sold.
Contract Assets and Liabilities
We use the practical expedient for contracts that have an original duration of one year or less. Accordingly, we do not consider the time value of money and, instead, accrue the incremental costs of obtaining the contract when incurred. As of December 31, 2019,2022, the balances of contract assets and contract liabilities are not considered material and, accordingly, no further disclosures are necessary.
Consolidation of company-sponsored investment fundsCompany-Sponsored Investment Funds
For legal entities (company-sponsored investment funds) evaluated for consolidation, we first determine whether the fees we receive and the interests we hold qualify as a variable interest in the entity, including an evaluation of fees paid to us as a decision maker or service provider to the entity being evaluated. Fees received by us are not variable interests if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services, (ii) the service arrangement includes only terms, conditions or amounts that are customarily present in arrangements for similar services negotiated at arm’s length, and (iii) our other economic interests in the entity held directly and indirectly through our related parties, as well as economic interests held by related parties under common control, would not absorb more than an insignificant amount of the entity’s losses or receive more than an insignificant amount of the entity’s benefits.
For those entities in which we have a variable interest, we perform an analysis to determine whether the entity is a VIE by considering whether the entity’s equity investment at risk is insufficient, whether the investors lack decision making rights proportional to their ownership percentage of the entity, and whether the investors lack the obligation to absorb an entity’s expected losses or the right to receive an entity’s expected income.
A VIE must be consolidated by its primary beneficiary, which generally is defined as the party that has a controlling financial interest in the VIE. We are deemed to have a controlling financial interest in a VIE if we have (i) the power to direct the activities of the VIE that most significantly affect the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive income from the VIE that could potentially be significant to the VIE. For purposes of evaluating (ii) above, fees paid to us as a decision maker or service provider are excluded if the amount of fees is commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in
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arrangements for similar services negotiated at arm’s length. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, as well as quantitatively, as appropriate.
If we have a variable interest in an entity that is determined not to be a VIE, the entity is then evaluated for consolidation under the VOE model. For limited partnerships and similar entities, we are deemed to have a controlling financial interest in a VOE,

and would be required to consolidate the entity, if we own a majority of the entity’s kick-out rights through voting limited partnership interests and limited partners do not hold substantive participating rights (or other rights that would indicate that we do not control the entity). For entities other than limited partnerships, we are deemed to have a controlling financial interest in a VOE if we own a majority voting interest in the entity.
The analysis performed regarding the determination of variable interests held, whether entities are VIEs or VOEs, and whether we have a controlling financial interest in such entities, requires the exercise of judgment. The analysis is updated continuously as circumstances change or new entities are formed.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid investments with original maturities of three months or less. Due to the short-term nature of these instruments, the recorded value has been determined to approximate fair value (and considered Level 1 securities in the fair value hierarchy).
Fees Receivable, Net
Fees receivable are shown net of allowances. An allowance for doubtful accounts related to investment advisory and services fees is determined through an analysis of the aging of receivables, assessments of collectability based on historical trends and other qualitative and quantitative factors, including our relationship with the client, the financial health (or ability to pay) of the client, current economic conditions and whether the account is active or closed. The allowance for doubtful accounts is not material to fees receivable.
Brokerage Transactions
Customers’ securities transactions are recorded on a settlement date basis, with related commission income and expenses reported on a trade date basis. Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements. We have the ability by contract or custom to sell or re-pledge this collateral and have done so at various times. As of December 31, 2019, there were no2022 and 2021, we had $267.1 million and $23.4 million of re-pledged securities.securities, respectively. Principal securities transactions and related expenses are recorded on a trade date basis.
Securities borrowed and securities loaned by our broker-dealer subsidiaries are recorded at the amount of cash collateral advanced or received in connection with the transaction and are included in receivables from and payables to brokers and dealers in the consolidated statements of financial condition. Securities borrowed transactions require us to deposit cash collateral with the lender. With respect to securities loaned, we receive cash collateral from the borrower. See Note 8 for securities borrowed and loaned amounts recorded in our consolidated statements of financial condition as of December 31, 20192022 and 2018.2021. The initial collateral advanced or received approximates or is greater than the fair value of securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. As of December 31, 20192022 and 2018,2021, there is no allowance provision required for the collateral advanced. Income or expense is recognized over the life of the transaction.
As of December 31, 2019 and 2018, we had $204.0 million and $196.9 million, respectively, of cashCash on deposit with clearing organizations for trade facilitation purposes which areis reported in assets held for sale as of December 31, 2022 and other assets as of December 31, 2021, in our consolidated statements of financial condition. As of December 31, 2019,2021, we had $114.9 million of cash on deposit with clearing organizations. As of December 31, 2022 and 2021, we held no U.S. Treasury bills pledged as collateral. As of December 31, 2018, we held U.S. Treasury Bills with value totaling $392.4 million, which are reported in other investments in our consolidated statements of financial condition. These clearing organizations have the ability by contract or custom to sell or re-pledge this collateral.the collateral, if any.
Current Expected Credit Losses- Receivables from Brokerage clients
Receivables from clients primarily consists of margin loan balances. The value of the securities owned by clients and held as collateral for these receivables is not reflected in the consolidated financial statements and the collateral was not repledged or sold as of December 31, 2022 and 2021. We consider these financing receivables to be of good credit quality because these receivables are primarily collateralized by the related client investments.
To estimate expected credit losses on margin loans, we applied the collateral maintenance practical expedient by comparing the amortized cost basis of the margin loans with the fair value of the collateral at the reporting date. Margin loans are limited to a percentage of the total value of the securities held in the client's account against those loans. AB requires, in the event of a decline in the market value of the securities in a margin account, the client to deposit additional securities or cash so that, at all
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times, the value of the securities in the account, at a minimum, cover the loan to the client. As such, AB reasonably expects that the borrower will be able to continually replenish collateral securing the financial asset and does not expect the fair value of collateral to fall below the amortized cost basis of the margin loans and, as a result, we consider the credit risk associated with these receivables to be minimal. In circumstances when a loan becomes undercollateralized and the client fails to deposit additional securities or cash, AB reserves the right to liquidate the account.
Current Expected Credit Losses - Receivables from Revenue Contracts with Customers
The majority of our revenue receivables are from investment advisory and service fees, and distribution revenues, that are typically paid out of the client accounts or third-party products consisting of cash and securities. Due to the size of the fees in relation to the value of the cash and securities in account or funds, the account value always exceeds the amortized cost basis of the receivables, resulting in a remote risk of loss. These receivables have a short duration, generally due within 30-90 days and there is minimal historical evidence of non-payment or market declines that would cause the fair value of the underlying securities to decline below the amortized cost of the receivables. AB maintains an allowance for credit losses based upon an estimate of the amount of potential credit losses in existing accounts receivable, as determined from a review of aging schedules, past due balances, historical collection experience and other specific account data. Once determined uncollectible, aged balances are written off as credit loss expense. This determination is based on careful analysis of individual receivables and aging schedules, and generally occurs when the receivable becomes over 360 days past due. Our aged receivables and amounts written off related to credit losses in any year are not material.
Furniture, Equipment and Leasehold Improvements, Net
Furniture, equipment and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is recognized on a straight-line basis over the estimated useful lives of eight years for furniture and three to six years for equipment and software. Leasehold improvements are amortized on a straight-line basis over the lesser of their estimated useful lives or the terms of the related leases.
Goodwill
In 2000, AB acquired SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. (“Bernstein”). The Bernstein acquisition wasOur acquisitions are accounted for under the purchaseacquisition method andof accounting, where the cost of the acquisition wasis allocated on the basis of the estimated fair value of the assets acquired and the liabilities assumed. The excess of the purchase price over the fair value of identifiable assets acquired, net of liabilities assumed, resultedresults in the recognition of goodwillgoodwill.
On July 1, 2022, AB Holding acquired a 100% ownership interest in CarVal Investors L.P. (“CarVal”). Immediately following its acquisition of approximately $3.0 billion.CarVal (the "CarVal acquisition"), AB Holding contributed 100% of its equity interests in CarVal to AB in exchange for AB Units (see Note 24 Acquisitions and Divestitures).

On November 22, 2022, AB and SocGen, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the BRS business has been classified as held for sale and $159.8 million of goodwill recorded on the consolidated statement of financial condition has been allocated to the held for sale disposal group. As AB is a single reporting unit, we have allocated goodwill to the disposal group based on the relative fair values of (1) the disposal group and (2) the portion of the reporting unit that will be retained. For further discussion, see Note 24 Acquisitions and Divestitures.
As of December 31, 2019,2022, we had goodwill of $3.1$3.6 billion on the consolidated statement of financial condition which included $666.1 million as a result of the CarVal acquisition in the third quarter of 2022, $2.8 billion as a result of the Sanford C. Bernstein Inc. (“Bernstein”) acquisition in 2000 and $276$291.9 million in regard to various smaller acquisitions. We have determined that ABApproximately, $159.8 million of goodwill has only one reporting segment and reporting unit.been classified as assets held for sale on the consolidated statement of financial condition.
We test our goodwillGoodwill is tested annually, as of September 30, for impairment.impairment utilizing the market approach where the fair value of the reporting unit is based on its unadjusted market valuation (AB Units outstanding multiplied by AB Holding's Unit price) and adjusted market valuations assuming a control premium (when applicable). The price of a publicly traded AB Holding Unit serves as a reasonable starting point for valuing an AB Unit because each represents the same fractional interest in our underlying business. Throughout the year, the carrying value of goodwill is also reviewed for impairment if certain events or changes in circumstances occur and trigger whether an interim impairment test may be required. Such changes in circumstances may include, but are not limited to, significant transactions including acquisitions or divestitures; a sustained decrease in the price of an AB Holding Unit or declines in AB’s market capitalization that would suggest that the fair value of the reporting unit is less than the carrying amount; significant and unanticipated declines in AB’s assets under management or revenues; and/or lower than expected earnings per unit. Any of these changes in circumstances could suggest the possibility that goodwill is impaired, but none of these events or circumstances by itself would indicate that it is more likely than not that goodwill is impaired. Instead, they are merely recognized as triggering events for the consideration of impairment and must be viewed in combination with any mitigating or positive factors. A holistic evaluation of all events since the most recent quantitative impairment test must be done to determine whether it is more likely than not that the reporting unit is impaired. As
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of September 30, 2019,2022, the impairment test indicated that goodwill was not impaired. We also reviewThe announcement of the carrying valueplanned joint venture between AB and SocGen and classification of goodwill if facts and circumstances occur that suggest possible impairment, suchthe BRS business as significant declines in AUM, revenues, earnings orheld for sale on the priceconsolidated statement of an AB Holding Unit. There were no facts or circumstances occurring infinancial condition during the fourth quarter of 2019 suggesting possible impairment.2022 was a triggering event requiring an interim impairment test; as such, we tested our goodwill as of December 31, 2022. The impairment test indicated that goodwill was not impaired
Under ASU 2017-04, Simplifying the Test for Goodwill Impairment, a goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Under this guidance, the goodwill impairment test no longer includes a determination by management of whether a decline in fair value is temporary; however, it is important that management's determination of fair value reflect the impact of changing market conditions, including the severity and anticipated duration of any such changes.
Business Combinations
We account for business combinations using the acquisition method of accounting whereby the identifiable assets and liabilities of the acquired business, as well as any noncontrolling interest in the acquired business, are recorded at their estimated fair values as of the date that we obtain control of the acquired business. Any purchase consideration in excess of the estimated fair values of the net assets acquired is recorded as goodwill. Acquisition-related expenses are expensed as incurred.
Often, as part of the business combination, intangible assets are recorded based on their estimated fair value at the time of acquisition and primarily relate to acquired investment management contracts. We periodically review indefinite-lived intangible assets for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, we perform additional impairment tests to measure the amount of the impairment loss, if any. During 2022 and 2021, these expenses included an intangible asset impairment charge of $5.6 million and $1.0 million, respectively, related to various historical acquisitions.
We periodically enter into contingent payment arrangements in connection with our business combinations. In these arrangements, we agree to pay additional consideration to the sellers to the extent that certain performance targets are achieved. We estimate the fair value of these potential future obligations at the time a business combination is consummated and record a liability on a discounted basis on our consolidated statement of financial condition. We then accrete the obligation to its expected payment amount over the measurement period. If our expected payment amount subsequently changes, the obligation is modified in the current period resulting in a gain or loss. Both gains and losses resulting from changes to expected payments and the accretion of these obligations to their expected payment amounts are reflected within contingent payment arrangements in our consolidated statements of income. The CarVal acquisition resulted in the recording of a contingent consideration payable of $228.9 million if certain performance targets are achieved over a six-year period (see Note 9 Fair Value and Note 24 Acquisitions and Divestitures). During 2022, there were no impairments of contingent consideration payable recorded in the consolidated statements of income. During the fourth quarters of 2021 and 2020, we recorded an impairment of the contingent consideration payable of $0.6 million and $1.4 million, respectively. These impairments were related to our 2016 acquisition of Ramius Alternative Solutions LLC.
Several valuation methods may be used to determine the fair value of assets acquired and liabilities assumed. For intangible assets, we typically use a method that is a form of the income approach, whereby a forecast of future cash flows attributable to the asset are discounted to present value using a risk-adjusted discount rate. Similarly for contingent liabilities, we develop a forecast of future cash flows attributable to the performance objectives that are then discounted to present value using a risk-adjusted discount rate. Some of the more significant estimates and assumptions inherent in the income approach include the amount and timing of projected future cash flows and the discount rate selected to measure the risks inherent in the future cash flows. See Note 24 Acquisitions and Divestitures.
Intangible Assets, Net
Intangible assets consist primarily of costs assigned to acquired investment management contracts of Bernstein based on their estimated fair value at the time of acquisition, less accumulated amortization. Intangible assets are recognized at fair value and generally are amortized on a straight-line basis over their estimated useful life ranging from six years5 to 20 years.
The CarVal acquisition resulted in recording of $303.0 million of finite-lived intangible assets primarily relating to investment management contracts and investor relationships with useful lives ranging from 5 to 10 years (see Note 24 Acquisitions and Divestitures).
As of December 31, 2019,2022, intangible assets, net of accumulated amortization, of $55.4$310.2 million on the consolidated statement of financial condition consists of $41.9$295.0 million of finite-lived intangible assets subject to amortization and $15.2 million of which $15.5indefinite-lived intangible assets not subject to amortization.
As of December 31, 2021, intangible assets, net of accumulated amortization, of $41.5 million relateson the consolidated statement of financial condition consisted of $26.3 million of finite-lived intangible assets subject to the Bernstein acquisition,amortization and $13.5$15.2 million of indefinite-lived intangible assets not subject to amortization in regard to other acquisitions. As
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Table of December 31, 2018, intangible assets, net of accumulated amortization, of $79.4 million on the consolidated statement of financial condition consisted of $65.9 million of finite-lived intangible assets subject to amortization, of which $36.2 million related to the Bernstein acquisition, and $13.5 million of indefinite-lived intangible assets not subject to amortization in regard to other acquisitions. Contents
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The gross carrying amount of finite-lived intangible assets totaled $468.9$327.9 million as of December 31, 20192022 and $475.1$53.8 million as of December 31, 2018,2021, and accumulated amortization was $427.0$32.9 million as of December 31, 20192022 and $409.2$27.5 million as of December 31, 2018. 2021.
Amortization expense was $28.8$26.6 million for 2019, $27.82022, $5.7 million for 20182021 and $27.9$21.4 million for 2017.2020. Estimated annual amortization expense for 2020 is approximately $21$47 million $5annually in years one through three, $46 million in year two, thenfour and approximately $4$25 million in years three throughyear five.
We periodically review indefinite-lived intangible assets for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, we perform additional impairment tests to measure the amount of the impairment loss, if any. During the fourth quarter of 2019,2022 we performed an impairment assessment and recorded an impairment charge of $3.1$5.6 million relatingrelated to our 2014 acquisition of CPH Capital. During the fourth quarters of 2021 and 2020, we recorded impairments of $1.0 million and $1.5 million, respectively, related to our 2016 acquisition of Ramius Alternative Solutions LLC. Due to the loss of acquired investment management contracts during 2019,each respective year, the carrying value of the finite-lived intangible assets exceeded the fair value of the contracts. We determined the fair value of the contracts using a discounted cashflowcash flow model. The impairment charge was recorded in general and administrative expenses in the consolidated statements of income.
Deferred Sales Commissions, Net
We pay commissions to financial intermediaries in connection with the sale of shares of open-end company-sponsored mutual funds sold without a front-end sales charge (“back-end load shares”). These commissions are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half yearsone year for U.S. fund shares and four years for Non-U.S. Fund shares, the periods of time during which deferred sales commissions generally are recovered. We recover these commissions from distribution services fees received from those funds and from CDSC received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Since January 31, 2009, our U.S. mutual funds have not offered back-end load shares to new investors.
We periodically review the deferred sales commission asset for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If these factors indicate impairment in value, we compare the carrying value to the undiscounted cash flows expected to be generated by the asset over its remaining life. If we determine the deferred sales commission asset is not fully recoverable, the asset will be deemed impaired and a loss will be recorded in the amount by which the recorded amount of the asset exceeds its estimated fair value. There were no impairment charges recorded during 20192022 or 2018.2021.
Leases
We determine if an arrangement is a lease at inception. Both operating and finance leases are included in the right-of-use (“ROU”) assets and lease liabilities in our consolidated statement of financial condition.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use our consolidated incremental borrowing rate based on the information available as of the lease commencement date in determining the present value of lease payments. Our lease terms may include options to extend or

terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis, and the ROU assets and lease liabilities are adjusted when it is reasonably certain that an option will be exercised.

When calculating the measurement of ROU assets and lease liabilities, we utilize the fixed payments associated with the lease and do not include other variable contractual obligations, such as operating expenses, real estate taxes, cleaning and employee parking.utilities. These costs are accounted for as period costs and expensed as incurred.

Additionally, we exclude any intangible assets such as software licensing agreements as stated in ASC 842-10-15-1. These arrangements will continue to follow the guidance of ASC 350, Intangibles - Goodwill and Other.
Loss Contingencies
With respect to all significant litigation matters, we consider the likelihood of a negative outcome. If we determine the likelihood of a negative outcome is probable and the amount of the loss can be reasonably estimated, we record an estimated loss for the expected outcome of the litigation. If the likelihood of a negative outcome is reasonably possible and we are able to determine an estimate of the possible loss or range of loss in excess of amounts already accrued, if any, we disclose that fact together with the estimate of the possible loss or range of loss. However, it is often difficult to predict the outcome or estimate a possible loss or range of loss because litigation is subject to inherent uncertainties, particularly when plaintiffs allege substantial or indeterminate damages. Such is also the case when the litigation is in its early stages or when the litigation is
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highly complex or broad in scope. In these cases, we disclose that we are unable to predict the outcome or estimate a possible loss or range of loss.
Contingent Payment ArrangementsAssets and Liabilities Held for Sale
We periodically enter into contingent payment arrangementsThe Company classifies assets and liabilities to be sold (disposal group) as held for sale in connection with our business combinations. In these arrangements, we agreethe period when all of the applicable criteria are met, including: (i) management commits to pay additional considerationa plan to sell, (ii) the disposal group is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the disposal group is being actively marketed at a reasonable price in relation to its fair value, (v) significant changes to the sellersplan to sell are unlikely, and (vi) the extentsale of the disposal group is generally probable of being completed within one year. Management performs an assessment of held for sale at least quarterly or when events or changes in business circumstances indicate that certain performance targetsa change in classification may be necessary. Assets and liabilities held for sale are achieved. We estimatepresented separately within the fair value of these potential future obligations at the time a business combination is consummated and record a liability on our consolidated statements of financial condition. We then accretecondition with any adjustments necessary to measure the obligationdisposal group at the lower of its carrying value or fair value less costs to its expected payment amount oversell. Depreciation of property, plant and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each reporting period the measurement period. If our expected payment amount subsequentlydisposal group remains classified as held for sale, the carrying value of the disposal group is adjusted for subsequent changes the obligationin fair value less costs to sell. A loss is modifiedrecognized for any subsequent decrease in the current period resulting infair value less costs to sell, while a gain oris recognized in any subsequent period for any subsequent increase in fair value less cost to sell, but not in excess of the cumulative loss previously recognized. If, in any period, the carrying value of the disposal group exceeds the estimated fair value less costs to sell, a loss is recognized on sale rather than an impairment loss. Both gains
Assets and losses resulting from changes to expected paymentsliabilities classified as held for sale on the consolidated statement of financial condition as of December 31, 2022 were $551.4 million and the accretion$108.0 million, respectively. The 2021 consolidated statement of these obligations to their expected payment amounts are reflected within contingent payment arrangementsfinancial condition was not recast for assets and liabilities classified as held for sale in our consolidated statements of income.2022.
Mutual Fund Underwriting Activities
Purchases and sales of shares of company-sponsored mutual funds in connection with the underwriting activities of our subsidiaries, including related commission income, are recorded on the trade date. Receivables from brokers and dealers for sale of shares of company-sponsored mutual funds generally are realized within three business days from the trade date, in conjunction with the settlement of the related payables to company-sponsored mutual funds for share purchases. Distribution plan and other promotion and servicing payments are recognized as expense when incurred.
Long-term Incentive Compensation Plans
We maintain several unfunded, non-qualified long-term incentive compensation plans, under which we grant annual awards to employees, generally in the fourth quarter, and to members of the Board of Directors of the General Partner, who are not employed by our company or by any of our affiliates ("Eligible Directors").
Awards granted in December 2019, 20182022, 2021 and 20172020 allowed employee participantsemployees to allocate their awards between restricted AB Holding Units and deferred cash. Participants (except certain members of senior management) generally could allocate up to 50% of their awards to deferred cash, not to exceed a total of $250,000 per award. Each of our employees based outside of the United States (other than expatriates), who received an award of $100,000 or less, could have allocated up to 100% of his or hertheir award to deferred cash. Participants allocated their awards prior to the date on which the Compensation Committee granted awards in December 2019, 2018 and 2017. For these awards, the number of AB Holding Units awarded was based on the closing price of an AB Holding Unit on the grant date.date as of which the awards were approved by the Compensation and Workplace Practices Committee (the "Compensation Committee") of the Board of Directors (the "Board"). For awards granted in 2019, 20182022, 2021 and 2017:2020:
•We engageengaged in open-market purchases of AB Holding Units or purchase newly-issuednewly issued AB Holding Units from AB Holding that are awarded to participants and keep them in a consolidated rabbi trust.
•Quarterly distributions on vested and unvested AB Holding Units arewere paid currently to participants, regardless of whether or not a long-term deferral election has been made.
•Interest on deferred cash iswas accrued monthly based on our monthly weighted average cost of funds.

We recognize compensation expense related to equity compensation grants in the financial statements using the fair value method. Fair value of restricted AB Holding Unit awards is the closing price of an AB Holding Unit on the grant date; fair value of options is determined using the Black-Scholes option valuation model. Under the fair value method, compensatory expense is measured at the grant date based on the estimated fair value of the award and is recognized over the required service period. For year-end long-term incentive compensation awards, employees who resign or are terminated without cause may retain their awards, subject to compliance with certain agreements and restrictive covenants set forth in the applicable award agreement, including restrictionsthe imposition of forfeiture as a result of post-employment competition, prohibitions on competition and employee and client solicitation, and a potential claw-back for failing to follow existing risk management policies. Because there is no service requirement, we fully expense these awards on the grant date. Most equity replacement, sign-on or similar deferred compensation awards included in separate employment agreements or arrangements include a required service period. Regardless of whether or not the award
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agreement includes employee service requirements, AB Holding Units typically are delivered to employees ratably over three years to four years, unless the employee has made a long-term deferral election.
Grants of restricted AB Holding Units can be awarded to Eligible Directors. Generally, these restricted AB Holding Units vest ratably over fourthree years. These restricted AB Holding Units are not forfeitable (except if the Eligible Director is terminated for “Cause,” as that term is defined in the applicable award agreement). We fully expense these awards on grant date, as there is no service requirement.
We fund our restricted AB Holding Unit awards either by purchasing AB Holding Units on the open market or purchasing newly-issued AB Holding Units from AB Holding, and then keeping these AB Holding Units in a consolidated rabbi trust until delivering them or retiring them. In accordance with the Amended and Restated Agreement of Limited Partnership of AB (“AB Partnership Agreement”), when AB purchases newly-issued AB Holding Units from AB Holding, AB Holding is required to use the proceeds it receives from AB to purchase the equivalent number of newly-issuednewly issued AB Units, thus increasing its percentage ownership interest in AB. AB Holding Units held in the consolidated rabbi trust are corporate assets in the name of the trust and are available to the general creditors of AB.
During 2019 and 2018, we purchased 6.0 million and 9.3 millionRepurchases of AB Holding Units for $172.6 millionthe years ended December 31, 2022 and $268.0 million, respectively (on2021 consisted of the following:
Years Ended December 31
20222021
(in millions)
Total amount of AB Holding Units Purchased(1)
5.2 5.6 
Total Cash Paid for AB Holding Units Purchased(1)
$211.8 $262.3 
Open Market Purchases of AB Holding Units Purchased(1)
2.3 2.6 
Total Cash Paid for Open Market Purchases of AB Holding Units(1)
$92.7 $117.9 
(1)Purchased on a trade date basis). These amounts reflectbasis. The difference between open-market purchases of 2.9 million and 6.5 million AB Holding Units for $82.7 million and $183.2 million, respectively, withunits retained reflects the remainder relating to purchasesretention of AB Holding Units from employees to allow them to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. Purchases of AB Holding Units reflected on the consolidated statements of cash flows are net of AB Holding Units purchased by employees as part of a distribution reinvestment election.
Each quarter, we consider whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (“Exchange Act”). A plan of this type allows a company to repurchase its shares at times when it otherwise might be prevented from doing so because of self-imposed trading blackout periods or because it possesses material non-public information. Each broker we select has the authority to repurchase AB Holding Units on our behalf in accordance with the terms and limitations specified in the plan. Repurchases are subject to regulations promulgated by the SEC as well as certain price, market volume and timing constraints specified in the plan. TheThere was no plan adopted during the fourth quarter of 2019 expired at the close of business on February 11, 2020.2022. We may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under our incentive compensation award program and for other corporate purposes.
During 2019,2022, we granted to employees and Eligible Directors 7.74.7 million restricted AB Holding Units (including 5.43.8 million granted in December for 20192022 year-end awards to employees). During 2018,2021, we granted to employees and Eligible Directors 8.77.0 million restricted AB Holding Units (including 6.23.4 million granted in December for 20182021 year-end awards to employees). We used AB Holding Units repurchased during the periods and newly-issued AB Holding Units to fund these awards.
During 20192022 and 2018,2021, AB Holding issued 0.5 million5,774 and 0.90.1 million AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $11.5$0.2 million and $16.6$3.4 million, respectively, received from award recipients as payment in cash for the exercise price to purchase the equivalent number of newly-issuednewly issued AB Units.
Foreign Currency Translation and Transactions
Assets and liabilities of foreign subsidiaries are translated from functional currencies into United States dollars (“US$”) at exchange rates in effect at the balance sheet dates, and related revenues and expenses are translated into US$ at average exchange rates in effect during each period. Net foreign currency gains and losses resulting from the translation of assets and liabilities of foreign operations into US$ are reported as a separate component of other comprehensive income in the consolidated statements of comprehensive income. Net foreign currency transaction losses were $2.0$10.2 million, $0.1$8.5 million and $2.9$3.3 million for 2019, 20182022, 2021 and 2017,2020, respectively, and are reported in general and administrative expenses on the consolidated statements of income.


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Cash Distributions
AB is required to distribute all of its Available Cash Flow, as defined in the AB Partnership Agreement, to its Unitholders and to the General Partner. Available Cash Flow can be summarized as the cash flow received by AB from operations minus such amounts as the General Partner determines, in its sole discretion, should be retained by AB for use in its business, or plus such amounts as the General Partner determines, in its sole discretion, should be released from previously retained cash flow.
Typically, Available Cash Flow has been the adjusted diluted net income per unit for the quarter multiplied by the number of general and limited partnership interests at the end of the quarter. In future periods, management anticipates that Available Cash Flow will be based on adjusted diluted net income per unit, unless management determines, with the concurrence of the Board, of Directors, that one or more adjustments that are made for adjusted net income should not be made with respect to the Available Cash Flow calculation.
On February 12, 2020,8, 2023, the General Partner declared a distribution of $0.93$0.77 per AB Unit, representing a distribution of Available Cash Flow for the three months ended December 31, 2019.2022. The General Partner, as a result of its 1% general partnership interest, is entitled to receive 1% of each distribution. The distribution is payable on March 5, 202016, 2023 to holders of record on February 24, 2020.21, 2023.
Total cash distributions per Unit paid to the General Partner and Unitholders during 2019, 20182022, 2021 and 20172020 were $2.60, $3.16$3.87, $3.86 and $2.39,$3.08, respectively.
Comprehensive Income
We report all changes in comprehensive income in the consolidated statements of comprehensive income. Comprehensive income includes net income, as well as unrealized gains and losses on investments classified as available-for-sale (for 2017), foreign currency translation adjustments, actuarial gains (losses) and prior service cost. Deferred taxes were not recognized on foreign currency translation adjustments for foreign subsidiaries which had earnings that were considered permanently invested outside the United States.

Subsequent Events
We have evaluated subsequent events through the date that these financial statements were filed with the SEC and did not identify any subsequent events that would have required disclosure in these financial statements.
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3. Revenue Recognition

Revenues for the years ended December 31, 2019, 20182022, 2021 and 20172020 consisted of the following:

Years Ended December 31
202220212020
(in thousands)
Subject to contracts with customers:
Investment advisory and services fees
Base fees$2,825,791 $2,949,405 $2,462,810 
Performance-based fees145,247 245,119 132,626 
Bernstein research services416,273 452,017 459,744 
Distribution revenues
All-in-management fees290,740 350,674 331,268 
12b-1 fees69,041 83,920 75,973 
Other distribution fees247,414 217,646 122,540 
Other revenues
Shareholder servicing fees86,661 90,225 82,317 
Other18,120 16,034 21,240 
4,099,287 4,405,040 3,688,518 
Not subject to contracts with customers:
Dividend and interest income, net of interest expense56,653 35,048 35,273 
Investment (losses)(102,413)(636)(16,401)
Other revenues763 2,150 1,146 
(44,997)36,562 20,018 
Total net revenues$4,054,290 $4,441,602 $3,708,536 
  Year Ended December 31,
  2019 2018 2017
 (in thousands)
Subject to contracts with customers:      
    Investment advisory and services fees      
        Base fees $2,372,429
 $2,244,068
 $2,106,525
        Performance-based fees 99,615
 118,143
 94,780
    Bernstein research services 407,911
 439,432
 449,919
    Distribution revenues      
        All-in-management fees 291,999
 254,477
 245,367
        12b-1 fees 80,268
 87,166
 94,972
        Other 82,776
 76,919
 71,724
    Other revenues      
        Shareholder servicing fees 77,394
 75,974
 75,024
        Other 17,924
 19,211
 17,838
  3,430,316
 3,315,390
 3,156,149
Not subject to contracts with customers:      
    Dividend and interest income, net of interest expense 47,216
 45,827
 45,997
    Investment gains (losses) 38,659
 2,653
 92,102
    Other revenues 2,241
 3,491
 4,273
  88,116
 51,971
 142,372
Total net revenues $3,518,432
 $3,367,361
 $3,298,521

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4. Net Income Per Unit
Basic net income per unit is derived by reducing net income for the 1% general partnership interest and dividing the remaining 99% by the basic weighted average number of limited partnership units outstanding for each year. Diluted net income per unit is derived by reducing net income for the 1% general partnership interest and dividing the remaining 99% by the total of the diluted weighted average number of limited partnership units outstanding for each year.
Years Ended December 31
202220212020
(in thousands, except per unit amounts)
Net income attributable to AB Unitholders$831,813 $1,148,623 $865,952 
Weighted average units outstanding—basic273,943 271,729 269,058 
Dilutive effect of compensatory options to buy AB Holding Units1 11 27 
Weighted average units outstanding—diluted273,944 271,740 269,085 
Basic net income per AB Unit$3.01 $4.18 $3.19 
Diluted net income per AB Unit$3.01 $4.18 $3.19 
 Year Ended December 31,
 2019 2018 2017
 (in thousands, except per unit amounts)
Net income attributable to AB Unitholders$752,042
 $757,588
 $662,403
      
Weighted average units outstanding—basic268,075
 269,236
 266,955
Dilutive effect of compensatory options to buy AB Holding Units44
 251
 430
Weighted average units outstanding—diluted268,119
 269,487
 267,385
      
Basic net income per AB Unit$2.78
 $2.79
 $2.46
Diluted net income per AB Unit$2.78
 $2.78
 $2.45
Years Ended December 31
202220212020
(in thousands)
Anti-dilutive options excluded from diluted net income— — 29,056 
We excluded 29,056 options in 2019, 49,784 options in 2018 and 1,970,741 options in 2017, from the diluted net income per unit computation due to their anti-dilutive effect.


5. Cash and Securities Segregated Under Federal Regulations and Other Requirements
As of both December 31, 20192022 and 2018, $1.12021, $1.5 billion and $1.2 billion, respectively, of U.S. Treasury Bills were segregated in a special reserve bank custody account for the exclusive benefit of our brokerage customers under Rule 15c3-3 of the Exchange Act.
6. Investments
Investments consist of:
Years Ended December 31
20222021
(in thousands)
Equity securities:
Long-term incentive compensation-related$21,055 $32,237 
Seed capital138,012 133,992 
Other(1)
— 18,243 
Exchange-traded options(1)
— 1,893 
Investments in limited partnership hedge funds:
Long-term incentive compensation-related26,815 31,602 
Seed capital15,711 19,318 
Time deposits7,750 21,024 
Other8,175 15,109 
Total investments$217,518 $273,418 
(1)Amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, see Note 24 Acquisitions and Divestitures.
 December 31,
 2019 2018
 (in thousands)
    
U.S. Treasury Bills$—
 $392,424
Equity securities:   
Long-term incentive compensation-related36,665
 38,883
Seed capital70,464
 105,951
Other73,202
 73,409
Exchange-traded options6,931
 2,568
Investments in limited partnership hedge funds:   
Long-term incentive compensation-related14,237
 13,546
Seed capital33,124
 67,153
Time deposits18,281
 8,783
Other13,890
 11,627
Total investments$266,794
 $714,344
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Total investments related to long-term incentive compensation obligations of $50.9$47.9 million and $52.4$63.8 million as of December 31, 20192022 and 2018,2021, respectively, consist of company-sponsored mutual funds and hedge funds. For long-term incentive compensation awards granted before 2009, we typically made investments in company-sponsored mutual funds and hedge funds that were notionally elected by plan participants and maintained them (and continue to maintain them) in a consolidated rabbi trust or separate custodial account. The rabbi trust and custodial account enable us to hold such investments separate from our other assets for the purpose of settling our obligations to participants. The investments held in the rabbi trust and custodial account remain available to the general creditors of AB.
The underlying investments of hedge funds in which we invest include long and short positions in equity securities, fixed income securities (including various agency and non-agency asset-based securities), currencies, commodities and derivatives (including various swaps and forward contracts). These investments are valued at quoted market prices or, where quoted market prices are not available, are fair valued based on the pricing policies and procedures of the underlying funds.
We allocate seed capital to our investment teams to help develop new products and services for our clients. A portion of our seed capital trading investments are equity and fixed income products, primarily in the form of separately-managedseparately managed account portfolios, U.S. mutual funds, Luxembourg funds, Japanese investment trust management funds or Delaware business trusts. We also may allocate seed capital to investments in private equity funds. In regard toRegarding our seed capital investments, the amounts above reflect those funds in which we are not the primary beneficiary of a VIE or hold a controlling financial interest in a VOE. See Note 15, Consolidated Company-Sponsored Investment Funds, for a description of the seed capital investments that we consolidated. As of December 31, 20192022 and 2018,2021, our total seed capital investments were $358.1$309.6 million and $391.6$379.0 million, respectively. Seed capital investments in unconsolidated company-sponsored investment funds are valued using published net asset values or non-published net asset values if they are not listed on an active exchange but have net asset values that are comparable to funds with published net asset values and have no redemption restrictions.
In addition, we also have long positions in corporate equities and long exchange-traded options traded through our options desk.



The portion of unrealized gains (losses) related to equity securities, as defined by ASC 321-10, held as of December 31, 20192022 and 20182021 were as follows:
Years Ended December 31
20222021
(in thousands)
Net (losses) gains recognized during the period$(23,855)$19,240 
Less: net gains recognized during the period on equity securities sold during the period17,960 23,697 
Unrealized losses recognized during the period on equity securities held$(41,815)$(4,457)
 December 31,
 2019 2018
 (in thousands)
Net gain (losses) recognized during the period$31,890
 $(21,797)
Less: net gains recognized during the period on equity securities sold during the period18,138
 1,515
Unrealized gains (losses) recognized during the period on equity securities held$13,752
 $(23,312)
7. Derivative Instruments
See Note 15, Consolidated Company-Sponsored Investment Funds, for disclosure of derivative instruments held by our consolidated company-sponsored investment funds.
We enter into various futures, forwards, options and swaps to economically hedge certain seed capital investments. Also, we have currency forwards that help us to economically hedge certain balance sheet exposures. In addition, our options desk trades long and short exchange-traded equity options. We do not hold any derivatives designated in a formal hedge relationship under ASC 815-10, Derivatives and Hedging.
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The notional value, fair value and gains and losses recognized in investment gains (losses) as of December 31, 20192022 and 20182021 for derivative instruments (excluding derivative instruments relating to our options desk trading activities discussed below) not designated as hedging instruments were as follows:
Notional
Value		Derivative
Assets		Derivative
Liabilities		Gains
(Losses)
Notional
Value
 
Derivative
Assets
 
Derivative
Liabilities
 
Gains
(Losses)
(in thousands)
(in thousands)
December 31, 2019       
December 31, 2022December 31, 2022
Exchange-traded futures$171,112
 $939
 $871
 $(10,840)Exchange-traded futures$154,687 $1,768 $162 $19,994 
Currency forwards60,809
 8,545
 8,633
 738
Currency forwards34,597 4,446 5,047 1,965 
Interest rate swaps92,756
 1,746
 2,254
 (616)Interest rate swaps16,847 386 262 70 
Credit default swaps168,303
 2,151
 5,611
 (6,413)Credit default swaps225,671 17,507 7,302 (1,000)
Total return swaps91,201
 110
 1,764
 (21,164)Total return swaps28,742 605 933 14,828 
Option swaps354
 —
 126
 (126)Option swaps50,000 — 6 5,211 
Total derivatives$584,535
 $13,491
 $19,259
 $(38,421)Total derivatives$510,544 $24,712 $13,712 $41,068 
December 31, 2018       
December 31, 2021December 31, 2021
Exchange-traded futures$218,657
 $1,594
 $2,534
 $3,515
Exchange-traded futures$131,876 $392 $1,186 $(5,072)
Currency forwards87,019
 7,647
 7,582
 379
Currency forwards66,058 7,344 6,980 1,746 
Interest rate swaps112,658
 1,649
 1,959
 (125)Interest rate swaps13,483 497 833 (316)
Credit default swaps94,657
 2,888
 2,685
 335
Credit default swaps155,757 6,594 6,967 (2,914)
Total return swaps99,038
 3,301
 62
 8,246
Total return swaps63,817 595 527 (6,433)
Option swapsOption swaps50,000 — 430 (309)
Total derivatives$612,029
 $17,079
 $14,822
 $12,350
Total derivatives$480,991 $15,422 $16,923 $(13,298)
As of December 31, 20192022 and 2018,2021, the derivative assets and liabilities are included in both receivables and payables to brokers and dealers on our consolidated statements of financial condition. Gains and losses on derivative instruments are reported in investment gains (losses) on the consolidated statements of income.
We may be exposed to credit-related losses in the event of nonperformancenon-performance by counterparties to derivative financial instruments. We minimize our counterparty exposure through a credit review and approval process. In addition, we have executed various collateral arrangements with counterparties to the over-the-counter derivative transactions that require both pledging and accepting collateral in the form of cash. As of December 31, 20192022 and 2018,2021, we held $0.3$8.4 million and $4.8$2.9 million, respectively, of cash collateral payable to trade counterparties. This obligation to return cash is reported in payables to brokers and dealers in our consolidated statements of financial condition.

Although notional amount is the most commonly usedtypical measure of volume in the derivatives market, it is not used as a measure of credit risk. Generally, the current credit exposure of our derivative contracts is limited to the net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received. A derivative with positive value (a derivative asset) indicates existence of credit risk because the counterparty would owe us if the contract were closed. Alternatively, a derivative contract with negative value (a derivative liability) indicates we would owe money to the counterparty if the contract were closed. Generally, if there is more than one derivative transaction with a single counterparty, a master netting arrangement exists with respect to derivative transactions with that counterparty to provide for aggregate net settlement.
Certain of our standardized contracts for over-the-counter derivative transactions (“ISDA Master Agreements”) contain credit risk related contingent provisions pertaining to each counterparty's credit rating. In some ISDA Master Agreements, if the counterparty’s credit rating, or in some agreements, our AUM, falls below a specified threshold, either a default or a termination event permitting the counterparty to terminate the ISDA Master Agreement would be triggered. In all agreements that provide for collateralization, various levels of collateralization of net liability positions are applicable, depending on the credit rating of the counterparty. As of December 31, 20192022 and 2018,2021, we delivered $4.3$4.2 million and $4.5$5.6 million, respectively, of cash collateral into brokerage accounts. We report this cash collateral in cash and cash equivalents in our consolidated statements of financial condition.
As of December 31, 20192022 long and 2018,short exchange-traded equity options were classified as held for sale on our consolidated statement of financial position. For further discussion, see Note 24 Acquisitions and Divestitures. As of December 31, 2021, we held $6.9 million and $2.6$1.9 million, respectively, of long exchange-traded equity options, which are included in other investments on our consolidated statements of financial condition. In addition, as of December 31, 2019 and 2018,2021, we held $12.3 million and $3.8$2.8 million, respectively, of
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short exchange-traded equity options, which are included in securities sold not yet purchased on our consolidated statements of financial condition.
Our options desk provides our clients with equity derivative strategies and execution for exchange-traded options on single stocks, exchange-traded funds and indices. While predominately agency-based, the options desk may commit capital to facilitate a client's transaction. Our options desk hedges the risk associated with this activity by taking offsetting positions in equities. For the yearsyear ended December 31, 20192022 and 20182021, we recognized $22.2$22.1 million of losses and $7.9 million, respectively, ofzero gains or losses on equity options activity.activity, respectively. These losses are recognized in investment gains (losses) in the consolidated statements of income.
8. Offsetting Assets and Liabilities
See Note 15, Consolidated Company-Sponsored Investment Funds, for disclosure of offsetting assets and liabilities of our consolidated company-sponsored investment funds.
Offsetting of assets as of December 31, 20192022 and 20182021 was as follows:
Gross
Amounts of
Recognized
Assets		Gross
Amounts
Offset in the
Statement
of Financial
Condition		Net
Amounts of
Assets
Presented in
the
Statement of
Financial
Condition		Financial
Instruments Collateral		Cash Collateral
Received		Net
Amount
(in thousands)
December 31, 2022
Securities borrowed(1)
$62,063 $— $62,063 $(62,058)$— $5 
Derivatives24,712 — 24,712 — (8,361)16,351 
Long exchange-traded options(1)
— — — — — — 
December 31, 2021
Securities borrowed$19,899 $— $19,899 $(18,327)$— $1,572 
Derivatives15,422 — 15,422 — (2,872)12,550 
Long exchange-traded options1,893 — 1,893 — — 1,893 
 Gross
Amounts of
Recognized
Assets		 Gross
Amounts
Offset in the
Statement
of Financial
Condition		 Net
Amounts of
Assets
Presented in
the
Statement of
Financial
Condition		 Financial
Instruments		 Cash Collateral
Received		 Net
Amount
 (in thousands)
December 31, 2019           
Securities borrowed$38,993
 $—
 $38,993
 $(38,993) $—
 $—
Derivatives$13,491
 $—
 $13,491
 $—
 $(251) $13,240
Long exchange-traded options$6,931
 $—
 $6,931
 $—
 $—
 $6,931
December 31, 2018           
Securities borrowed$64,856
 $—
 $64,856
 $(64,217) $—
 $639
Derivatives$17,079
 $—
 $17,079
 $—
 $(4,831) $12,248
Long exchange-traded options$2,568
 $—
 $2,568
 $—
 $—
 $2,568

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Offsetting of liabilities as of December 31, 20192022 and 20182021 was as follows:
Gross
Amounts of
Recognized
Liabilities		Gross
Amounts
Offset in the
Statement
of
Financial
Condition		Net
Amounts
of Liabilities
Presented in
the
Statement
of Financial
Condition		Financial
Instruments Collateral		Cash Collateral
Pledged		Net
Amount
Gross
Amounts of
Recognized
Liabilities		 Gross
Amounts
Offset in the
Statement
of
Financial
Condition		 Net
Amounts
of Liabilities
Presented in
the
Statement
of Financial
Condition		 Financial
Instruments		 Cash Collateral
Pledged		 Net
Amount		(in thousands)
(in thousands)
December 31, 2019           
December 31, 2022December 31, 2022
Securities loaned(1)
Securities loaned(1)
$272,580 $— $272,580 $(267,053)$5,527 
DerivativesDerivatives13,712 — 13,712 — (4,158)9,554 
Short exchange-traded options(1)
Short exchange-traded options(1)
— — — — — — 
December 31, 2021December 31, 2021
Securities loaned$—
 $—
 $—
 $—
 $—
 $—
Securities loaned$23,911 $— $23,911 $(23,373)$— $538 
Derivatives$19,259
 $—
 $19,259
 $—
 $(4,276) $14,983
Derivatives16,923 — 16,923 — (5,572)11,351 
Short exchange-traded options$12,348
 $—
 $12,348
 $—
 $—
 $12,348
Short exchange-traded options2,774 — 2,774 — — 2,774 
December 31, 2018           
Securities loaned$59,526
 $—
 $59,526
 $(59,526) $—
 $—
Derivatives$14,822
 $—
 $14,822
 $—
 $(4,458) $10,364
Short exchange-traded options$3,782
 $—
 $3,782
 $—
 $—
 $3,782
(1)Certain amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, see Note 24 Acquisitions and Divestitures.
Cash collateral, whether pledged or received on derivative instruments, is not considered material and, accordingly, is not disclosed by counterparty.
9. Fair Value
See Note 15, Consolidated Company-Sponsored Investment Funds, for disclosure of fair value of our consolidated company-sponsored investment funds.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The three broad levels of fair value hierarchy are as follows:
•Level 1—Quoted prices in active markets are available for identical assets or liabilities as of the reported date.
•Level 2—Quoted prices in markets that are not active or other pricing inputs that are either directly or indirectly observable as of the reported date.
•Level 3—Prices or valuation techniques that are both significant to the fair value measurement and unobservable as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

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Assets and Liabilities Measured at Fair Value on a Recurring Basis
Valuation of our financial instruments by pricing observability levels as of December 31, 20192022 and 20182021 was as follows (in thousands):
 Level 1 Level 2 Level 3 
NAV Expedient(1)
 Other Total
December 31, 2019:           
Money markets$126,401
 $—
 $—
 $—
 $—
 $126,401
Securities segregated (U.S. Treasury Bills)—
 1,094,866
 —
 —
 —
 1,094,866
Derivatives939
 12,552
 —
 —
 —
 13,491
Investments           
      Equity securities170,946
 8,952
 119
 314
 —
 180,331
      Long exchange-traded options6,931
 —
 —
 —
 —
 6,931
      Limited partnership hedge
      funds(2)
—
 —
 —
 —
 47,361
 47,361
        Time deposits(3)
—
 —
 —
 —
 18,281
 18,281
        Other investments5,883
 —
 —
 —
 8,007
 13,890
Total investments183,760
 8,952
 119
 314
 73,649
 266,794
Total assets measured at fair value$311,100
 $1,116,370
 $119
 $314
 $73,649
 $1,501,552
            
Securities sold not yet purchased 
  
  
      
Short equities – corporate$17,809
 $—
 $—
 $—
 $—
 $17,809
Short exchange-traded options12,348
 —
 —
 —
 —
 12,348
Derivatives871
 18,388
 —
 —
 —
 19,259
Contingent payment arrangements—
 —
 22,911
 —
 —
 22,911
Total liabilities measured at fair value$31,028
 $18,388
 $22,911
 $—
 $—
 $72,327
            
            

Level 1Level 2Level 3
NAV Expedient(2)
OtherTotal
Level 1 Level 2 Level 3 
NAV Expedient(1)
 Other Total
December 31, 2018:           
December 31, 2022(1):
December 31, 2022(1):
Money markets$102,888
 $—
 $—
 $—
 $—
 $102,888
Money markets$95,521 $— $— $— $— $95,521 
Securities segregated (U.S. Treasury Bills)—
 1,169,554
 —
 —
 —
 1,169,554
Securities segregated (U.S. Treasury Bills)— 1,521,705 — — — 1,521,705 
Derivatives1,594
 15,485
 —
 —
 —
 17,079
Derivatives1,768 22,944 — — — 24,712 
Investments           
U.S. Treasury Bills—
 392,424
 —
 —
 —
 392,424
Investments:Investments:
Equity securities209,414
 8,372
 142
 315
 —
 218,243
Equity securities129,655 27,799 129 1,484 — 159,067 
Long exchange-traded options2,568
 —
 —
 —
 —
 2,568
Limited partnership hedge
funds(2)
—
 —
 —
 —
 80,699
 80,699
Limited partnership hedge funds(3)
Limited partnership hedge funds(3)
— — — — 42,526 42,526 
Time deposits(3)(4)
—
 —
 —
 —
 8,783
 8,783
— — — — 7,750 7,750 
Other investments4,269
 —
 —
 —
 7,358
 11,627
Other investments6,689 — — — 1,486 8,175 
Total investments216,251
 400,796
 142
 315
 96,840
 714,344
Total investments136,344 27,799 129 1,484 51,762 217,518 
Total assets measured at fair value$320,733
 $1,585,835
 $142
 $315
 $96,840
 $2,003,865
Total assets measured at fair value$233,633 $1,572,448 $129 $1,484 $51,762 $1,859,456 
           
Securities sold not yet purchased 
  
  
      
DerivativesDerivatives162 13,550 — — — 13,712 
Contingent payment arrangementsContingent payment arrangements— — 247,309 — — 247,309 
Total liabilities measured at fair valueTotal liabilities measured at fair value$162 $13,550 $247,309 $— $— $261,021 
December 31, 2021:December 31, 2021:
Money marketsMoney markets$151,156 $— $— $— $— $151,156 
Securities segregated (U.S. Treasury Bills)Securities segregated (U.S. Treasury Bills)— 1,503,828 — — — 1,503,828 
DerivativesDerivatives392 15,030 — — — 15,422 
Investments:Investments:
Equity securitiesEquity securities144,917 39,284 126 145 — 184,472 
Long exchange-traded optionsLong exchange-traded options1,893 — — — — 1,893 
Limited partnership hedge funds(3)
Limited partnership hedge funds(3)
— — — — 50,920 50,920 
Time deposits(4)
Time deposits(4)
— — — — 21,024 21,024 
Other investmentsOther investments9,094 — — — 6,015 15,109 
Total investmentsTotal investments155,904 39,284 126 145 77,959 273,418 
Total assets measured at fair valueTotal assets measured at fair value$307,452 $1,558,142 $126 $145 $77,959 $1,943,824 
Securities sold not yet purchased:Securities sold not yet purchased:    
Short equities – corporate$4,841
 $—
 $—
 $—
 $—
 $4,841
Short equities – corporate$1,054 $— $— $— $— $1,054 
Short exchange-traded options3,782
 —
 —
 —
 —
 3,782
Short exchange-traded options2,774 — — — — 2,774 
Derivatives2,534
 12,288
 —
 —
 —
 14,822
Derivatives1,186 15,737 — — — 16,923 
Contingent payment arrangements—
 —
 7,336
 —
 —
 7,336
Contingent payment arrangements— — 38,260 — — 38,260 
Total liabilities measured at fair value$11,157
 $12,288
 $7,336
 $—
 $—
 $30,781
Total liabilities measured at fair value$5,014 $15,737 $38,260 $— $— $59,011 
(1)Certain amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, see Note 24 Acquisitions and Divestitures.
(2)Investments measured at fair value using NAV (or its equivalent) as a practical expedient.
(2)(3)Investments in equity method investees that are not measured at fair value in accordance with GAAP.
(3)(4)Investments carried at amortized cost that are not measured at fair value in accordance with GAAP.

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Other investments included in Level 1 of the fair value hierarchy include (i) anour investment in a software publishing companymutual fund measured at fair value ($6.7 million and $9.1 million as of December 31, 2022 and 2021, respectively). Other investments not measured at fair value include (i) investments in start-up companies that doesdo not have a readily available fair value ($1.0(these investments were $0.3 million as of December 31, 2019)2022 and 2021), (ii) an investmentinvestments in a start-up company that does not have a readily available fair value ($0.9 million as of both December 31, 2019 and 2018), (iii) an investment in an equity method investeeinvestees that isare not measured at fair value in accordance with GAAP ($2.9 million(during the third quarter of 2022, we sold this investment and $3.4the balance was reduced to zero, as compared to $2.9 million as of December 31, 2019 and 2018, respectively)2021), and (iv) broker dealer(iii) broker-dealer exchange memberships that are not measured at fair value in accordance with GAAP ($3.21.2 million and $3.1$2.8 million as of December 31, 20192022 and 2018,2021, respectively).
We provide below a description of the fair value methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy:
•
•Money markets:We invest excess cash in various money market funds that are valued based on quoted prices in active markets; these are included in Level 1 of the valuation hierarchy.
•Treasury Bills: We hold U.S. Treasury Bills, which are primarily segregated in a special reserve bank custody account as required by Rule 15c3-3 of the Exchange Act. These securities are valued based on quoted yields in secondary markets and are included in Level 2 of the valuation hierarchy.
•Equity securities: Our equity securities consist principally of company-sponsored mutual funds with NAVs and various separately managed portfolios consisting primarily of equity and fixed income mutual funds with quoted prices in active markets, which are included in Level 1 of the valuation hierarchy. In addition, some securities are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy.
•Derivatives: We hold exchange-traded futures with counterparties that are included in Level 1 of the valuation hierarchy. In addition, we also hold currency forward contracts, interest rate swaps, credit default swaps, option swaps and total return swaps with counterparties that are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy.
•Options: We hold exchange-traded options that are included in Level 1 of the valuation hierarchy.
•Securities sold not yet purchased: Securities sold not yet purchased, primarily reflecting short positions in equities and exchange-traded options, are included in Level 1 of the valuation hierarchy. As of the valuation hierarchy.
•
Treasury Bills: We hold U.S. Treasury Bills, which are primarily segregated in a special reserve bank custody account as required by Rule 15c3-3 of the Exchange Act. These securities are valued based on quoted yields in secondary markets and are included in Level 2 of the valuation hierarchy.
•
Equity securities: Our equity securities consist principally of company-sponsored mutual funds with NAVs and various separately-managed portfolios consisting primarily of equity and fixed income mutual funds with quoted prices in active markets, which are included in Level 1 of the valuation hierarchy. In addition, some securities are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy.
•
Derivatives: We hold exchange-traded futures with counterparties that are included in Level 1 of the valuation hierarchy. In addition, we also hold currency forward contracts, interest rate swaps, credit default swaps, option swaps and total return swaps with counterparties that are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy.

•
Options: We hold exchange-traded options that are included in Level 1 of the valuation hierarchy.
•
Securities sold not yet purchased: Securities sold not yet purchased, primarily reflecting short positions in equities and exchange-traded options, are included in Level 1 of the valuation hierarchy.
•
Contingent payment arrangements: Contingent payment arrangements relate to contingent payment liabilities associated with various acquisitions. At each reporting date, we estimate the fair values of the contingent consideration expected to be paid upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy.
During the year ended December 31, 20192022 these securities have been classified as held for sale on the consolidated statement of financial position.
•Contingent payment arrangements: Contingent payment arrangements relate to contingent payment liabilities associated with various acquisitions. At each reporting date, we had transfersestimate the fair values of $3.2 million fromthe contingent consideration expected to be paid upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 2 to Level 1 securities. During3 of the year ended December 31, 2018, we had no transfers from Level 2 to Level 1 securities. valuation hierarchy.
During the years ended December 31, 20192022 and 2018,2021, there were no transfers between Level 2 and Level 3 securities.
The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as equity securities, is as follows:
December 31
20222021
(in thousands)
Balance as of beginning of period$126 $125 
Purchases— — 
Sales— — 
Realized gains (losses), net— — 
Unrealized gains (losses), net3 1 
Balance as of end of period$129 $126 
 December 31, 2019 December 31, 2018
 (in thousands)
Balance as of beginning of period$142
 $1,071
Purchases—
 —
Sales—
 —
Realized gains (losses), net—
 —
Unrealized (losses) gains, net(23) (929)
Balance as of end of period$119
 $142
Transfers into and out of all levels of the fair value hierarchy are reflected at end-of-period fair values. Realized and unrealized gains and losses on Level 3 financial instruments are recorded in investment gains and losses in the consolidated statements of income.
As
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Table of January 1, 2018 we had an investment in a private equity fund focused exclusively on the energy sector (fair value of $1.0 million) that was classified as Level 3 and written down during the second quarter of 2018. This investment’s valuation was based on a market approach, considering recent transactions in the fund and the industry.Contents

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We acquired Autonomous Research LLP ("Autonomous") in 2019 and Ramius Alternative Solutions LLC in 2016, both of which includedOur acquisitions may include contingent consideration arrangements as part of the purchase price. The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as contingent payment arrangements, is as follows:
December 31
20222021
(in thousands)
Balance as of beginning of period$38,260 $27,750 
Addition231,385 7,800 
Accretion6,563 3,310 
Changes in estimates— (600)
Held for sale reclassification(28,899)— 
Balance as of end of period$247,309 $38,260 
 December 31, 2019 December 31, 2018
 (in thousands)
Balance as of beginning of period$7,336
 $10,855
Addition17,384
 —
Accretion2,542
 210
Changes in estimates(3,051) (2,429)
Payments(1,300) (1,300)
Balance as of end of period$22,911
 $7,336
During 2019,In the third quarter of 2022, we acquired CarVal and recorded a $17.4 million contingent consideration payable for our 2019 acquisitionliability of $228.9 million (see Note 24 Acquisitions and Divestitures). The liability, ranging from zero to $650.0 million, is based on projected fee revenuesCarVal achieving certain performance objectives over a five-year measurement period.six-year period ending December 31, 2027. The liability was valued using a forecast of future cash flows attributable to the performance objectives that are discounted to present value using a risk-adjusted discount rate. The expected revenue growth rates rangingrange from 0.7%3.9% to 2.5%31.5%, with a weighted average of 14.1%, calculated using cumulative revenues and a discount raterange of 10.4%, reflecting a 3.5% risk-free rate, based on our cost of debt, and a 6.9% market price of risk adjustment rate. Additionally, we recorded a $3.1 million change in estimate for the contingent consideration payable relating to our 2016 acquisition. The liability relating to our 2016 acquisition was valued using a revised revenue growth raterates. The discount rates range from 4.1% to 4.6%, with a weighted average of 50% over the remaining measurement periods4.2%, calculated using total contingent liabilities and a 3.0%range of discount rate.

During 2018, we amended the contingent payment relating to our 2016 acquisition by modifying the earnout structure and extending it one year. As part of this amendment, we recorded a change in estimate of $2.4 million related to the contingent consideration.rates.
As of December 31, 20192022, including the CarVal acquisition, the expected revenue growth rates range from 2.0% to 83.9%, with a weighted average of 11.5%, calculated using cumulative revenues and 2018, acquisition-relatedrange of revenue growth rates (excluding revenue growth from additional AUM contributed in year of acquisition). The discount rates ranged from 1.9% to 10.4%, with a weighted average of 4.5%, calculated using total contingent consideration liabilities were $22.9 million and $7.3 million, respectively.range of discount rates. As of December 31, 2021, the expected revenue growth rates range from 2.0% to 83.9%, with a weighted average of 11.9%, calculated using cumulative revenues and range of revenue growth rates (excluding revenue growth from additional AUM contributed in year of acquisition). The discount rates ranged from 1.9% to 10.4%, with a weighted average of 7.0%, calculated using total contingent liabilities and range of discount rates.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
We did not have any material assets or liabilities that were measured at fair value for impairment on a nonrecurring basis during the years ended December 31, 20192022 or 2018.2021.
10. Furniture, Equipment and Leasehold Improvements, Net
Furniture, equipment and leasehold improvements, net consist of:
December 31,Years Ended December 31
2019 201820222021
(in thousands)(in thousands)
Furniture and equipment$575,378
 $561,816
Furniture and equipment$605,567 $584,161 
Leasehold improvements266,365
 253,439
Leasehold improvements323,982 301,036 
841,743
 815,255
TotalTotal929,549 885,197 
Less: Accumulated depreciation and amortization(696,492) (659,736)Less: Accumulated depreciation and amortization(740,291)(716,022)
Furniture, equipment and leasehold improvements, net$145,251
 $155,519
Furniture, equipment and leasehold improvements, net$189,258 $169,175 
Depreciation and amortization expense on furniture, equipment and leasehold improvements were $38.1$39.7 million, $34.2$38.8 million and $32.8$39.2 million for the years ended December 31, 2019, 20182022, 2021 and 2017,2020, respectively.
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11. Deferred Sales Commissions, Net

The components of deferred sales commissions, net for the years ended December 31, 20192022 and 20182021 were as follows (excluding amounts related to fully amortized deferred sales commissions):
 December 31,
 2019 
2018 (1)
 (in thousands)
Carrying amount of deferred sales commissions$68,371
 $78,971
Less: Accumulated amortization(19,348) (40,506)
Cumulative CDSC received(12,727) (21,317)
Deferred sales commissions, net$36,296
 $17,148

(1)Prior year amounts have been reclassified to conform to our 2019 presentation.

Years Ended December 31
20222021
(in thousands)
Carrying amount of deferred sales commissions$172,181 $177,233 
Less: Accumulated amortization(66,184)(53,976)
Cumulative CDSC received(53,747)(48,358)
Deferred sales commissions, net$52,250 $74,899 
Amortization expense was $15.0$34.8 million, $21.3$34.4 million and $31.9$27.4 million for the years ended December 31, 2019, 20182022, 2021 and 2017,2020, respectively. Estimated future amortization expense related to the December 31, 20192022 net asset balance, assuming no additional CDSC is received in future periods, is as follows (in thousands):
2023$28,683 
202417,848 
20255,309 
2026410 
Total$52,250 
2020$17,049
202111,666
20227,127
2023454
 $36,296

12. Debt
Credit Facility
AB has an $800.0 million committed, unsecured senior revolving credit facility (the "Credit Facility") with a group of commercial banks and other lenders, which matures on September 27, 2023.October 13, 2026. The Credit Facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $200.0 million; any such increase is subject to the consent of the affected lenders. The Credit Facility is available for AB and Sanford C. Bernstein & Co., LLC ("SCB LLC") business purposes, including the support of AB’s commercial paper program. Both AB and SCB LLC can draw directly under the Credit Facility and management may draw on the Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the Credit Facility.
The Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2019,2022, we were in compliance with these covenants. The Credit Facility also includes customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender’s commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the Credit Facility would automatically become immediately due and payable, and the lender’s commitments automatically would terminate.
Amounts under the Credit Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. Voluntary prepayments and commitment reductions requested by us are permitted at any time without a fee (other than customary breakage costs relating to the prepayment of any drawn loans) upon proper notice and subject to a minimum dollar requirement. Borrowings under the Credit Facility bear interest at a rate per annum, which will be, at our option, a rate equal to an applicable margin, which is subject to adjustment based on the credit ratings of AB, plus one of the following indices: London Interbank Offered Rate; a floating base rate; or the Federal Funds rate.
As of December 31, 20192022 and 2018,2021, we had no amounts outstanding under the Credit Facility. During 20192022 and 2018,2021, we did not draw upon the Credit Facility.
EQH Facility
In addition to the Credit Facility, on November 4, 2019, AB establishedalso has a $900.0 million committed, unsecured senior credit facility (“EQH Facility”) with EQH. The EQH Facility matures on November 4, 2024 and is available for AB's general business purposes. Borrowings under the EQH Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates.
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The EQH Facility contains affirmative, negative and financial covenants which are substantially similar to those in AB’s committed bank facilities. The EQH Facility also includes customary events of default substantially similar to those in AB’s committed bank facilities, including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or the lender’s commitment may be terminated.
Amounts under the EQH Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. AB or EQH may reduce or terminate the commitment at any time without penalty upon proper notice. EQH also may terminate the facility immediately upon a change of control of our general partner.
As of December 31, 2019,2022 and 2021, AB had $560.0$900.0 million and $755.0 million outstanding under the EQH Facility with interest rates of approximately 4.3% and 0.2%, respectively. Average daily borrowings on the EQH Facility during 2022 and 2021 were $655.2 million and $404.6 million, respectively, with weighted average interest rates of approximately 1.7% and 0.2%, respectively.
EQH Uncommitted Facility
In addition to the EQH Facility, AB has a $300.0 million uncommitted, unsecured senior credit facility (“EQH Uncommitted Facility”) with EQH. The EQH Uncommitted Facility matures on September 1, 2024 and is available for AB's general business purposes. Borrowings under the EQH Unsecured Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates. The EQH Uncommitted Facility contains affirmative, negative and financial covenants which are substantially similar to those in the EQH Facility. As of December 31, 2022, we had $90.0 million outstanding under the EQH Uncommitted Facility with an interest rate of approximately 1.6%4.3%. Average daily borrowings on the EQH Facility during 2019 for the 57 days it was available2022 were $358.6$0.7 million with a weighted average interest rate of approximately 1.6%4.3%. During 2021, we did not draw on the facility.
Commercial Paper
As of both December 31, 2019,2022 and 2021, we had no commercial paper outstanding. As of December 31, 2018, AB had $523.2 million in commercial paper outstanding with a weighted average interest rate of approximately 2.7%. The commercial paper is short term in nature, and as such, recorded value is estimated to approximate fair value (and considered a Level 2 security in the fair value hierarchy). Average daily borrowings of commercial paper for the 317 days commercial paper was outstanding in 2019 was $438.6

during 2022 and 2021 were $189.9 million and $157.0 million, respectively, with a weighted average interest rate of 2.6%. Average daily borrowings for 2018 were $350.3 million with a weighted average interest raterates of approximately 2.0%.1.5% and 0.2%, respectively.
Revolving Credit Facility
AB also hashad a $200.0 million committed, unsecured senior revolving credit facility (the "Revolver") with a leading international bank, which maturesmatured on November 16, 2021. The Revolver is available for AB's and SCB LLC's business purposes, including the provision of additional liquidity to meet funding requirements primarily related to SCB LLC's operations. Both AB and SCB LLC can draw directlyAverage daily borrowings under the Revolver and management expects to draw on the Revolver from time to time. AB has agreed to guarantee the obligations of SCB LLC under the Revolver. The Revolver contains affirmative, negative and financial covenants that are identical to those of the Credit Facility. As of December 31, 2019 we had no amounts outstanding under the Revolver. As of December 31, 2018, we had $25.0for 2021 were $13.3 million outstanding under the Revolver with ana weighted average interest rate of 3.4%approximately 1.1%. Average daily borrowings for 2019 and 2018 were $23.5 million and $19.4 million, respectively, with weighted average interest rates
SCB Lines of 3.2% and 2.8%, respectively.Credit
In addition, SCB LLC currently has threefive uncommitted lines of credit with threefive financial institutions. TwoFour of these lines of credit permit us to borrow up to an aggregate of approximately $175.0$315.0 million, with AB named as an additional borrower, while the other line has no stated limit. AB has agreed to guarantee the obligations on SCB LLC under these lines of credit. As of December 31, 20192022 and 2018,2021, SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings on the lines of credit during 20192022 and 20182021 were $1.9$1.4 million and $2.7 million,$47 thousand, respectively, with weighted average interest rates of approximately 1.9%3.7% and 1.6%0.9%, respectively.

13. Leases
We lease office space, office equipment and technology under various operating and financing leases. Our current leases have remaining lease terms of one year to 1115 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.
Since 2010, we have sub-leased over one million square feet of office space. The liability relating to our global space consolidation initiatives was $85.8 million as
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Table of December 31, 2018. Upon adoption of ASC 842 on January 1, 2019, we recorded this liability as a reduction to our operating right-of-use assets.Contents
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Leases included in the consolidated statements of financial condition as of December 31, 20192022 and 2021 were as follows:
Classification December 31, 2019ClassificationDecember 31, 2022December 31, 2021
 (in thousands)(in thousands)
Operating Leases  Operating Leases
Operating lease right-of-use assetsRight-of-use assets $360,185
Operating lease right-of-use assetsRight-of-use assets$360,092 $414,105 
Operating lease liabilitiesLease liabilities 465,907
Operating lease liabilitiesLease liabilities415,539 482,781 
  
Finance Leases  Finance Leases
Property and equipment, grossRight-of-use assets 3,825
Property and equipment, grossRight-of-use assets18,116 10,947 
Amortization of right-of-use assetsRight-of-use assets (1,317)Amortization of right-of-use assetsRight-of-use assets(6,310)(3,072)
Property and equipment, net 2,508
Property and equipment, net11,806 7,875 
Finance lease liabilitiesLease liabilities 2,544
Finance lease liabilitiesLease liabilities11,940 7,954 
The components of lease expense included in the consolidated statements of income as offor the years ended December 31, 20192022 and 2021 were as follows:
 Year Ended December 31,Years Ended December 31
Classification 2019Classification20222021
 (in thousands)(in thousands)
Operating lease costGeneral and administrative $106,085
Operating lease costGeneral and administrative$97,198 $97,466 
  
Financing lease cost:  Financing lease cost:
Amortization of right-of-use assetsGeneral and administrative 1,317
Amortization of right-of-use assetsGeneral and administrative3,860 2,355 
Interest on lease liabilitiesInterest expense 71
Interest on lease liabilitiesInterest expense200 107 
Total finance lease cost 1,388
Total finance lease cost4,060 2,462 
Variable lease cost (1)
General and administrative 40,786
Variable lease cost (1)
General and administrative40,552 39,827 
Sublease incomeGeneral and administrative (55,522)Sublease incomeGeneral and administrative(34,420)(37,317)
Net lease cost $92,737
Net lease cost$107,390 $102,438 
(1)Variable lease expense includes operating expenses, real estate taxes and employee parking.
The sublease income represents all revenues received from sub-tenants. It is primarily fixed base rental payments combined with variable reimbursements such as operating expenses, real estate taxes and employee parking.  The vast majority of sub-tenant income is derived from our New York metro sub-tenant agreements. Sub-tenant income related to base rent is recorded on a straight-line basis.
Maturities of lease liabilities are as follows:
Operating LeasesFinancing LeasesTotal
Year ending December 31,(in thousands)
2023$97,489 $4,169 $101,658 
2024104,596 3,258 107,854 
202537,319 2,828 40,147 
202635,808 1,810 37,618 
202732,821 324 33,145 
Thereafter146,319 — 146,319 
Total lease payments454,352 12,389 $466,741 
Less interest(38,813)(449)
Present value of lease liabilities$415,539 $11,940 
 Operating Leases Financing Leases Total
Year ending December 31,(in thousands)
2020$110,178
 $1,385
 $111,563
2021104,644
 741
 105,385
202290,363
 356
 90,719
202382,806
 126
 82,932
202479,625
 23
 79,648
Thereafter43,162
 —
 43,162
Total lease payments510,778
 2,631
 $513,409
Less interest(44,871) (87)  
Present value of lease liabilities$465,907
 $2,544
  
During October 2018, we
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We have signed a lease which commences in mid-2020, relating to 218,976 square feet of space at our new Nashville headquarters. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 15 year initial lease term is $134 million. During April 2019, we signed a lease, whichthat commences in 2024, relating to approximately 190,000166,000 square feet of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 year20-year lease term is approximately $448$393.0 million.
Lease term and discount raterate:
Weighted average remaining lease term (years):
Operating leases5.23
7.35
Finance leases2.37
3.47
Weighted average discount rate:
Operating leases3.512.69 %
Finance leases3.022.10 
%

Supplemental cash flow informationnon-cash activity related to leases are as follows:
 Year Ended December 31, 2019
 (in thousands)
Cash paid for amounts included in the measurement of lease liabilities: 
Operating cash flows from operating leases$132,669
Operating cash flows from financing leases71
Financing cash flows from finance leases1,281
Right-of-use assets obtained in exchange for lease obligations(1):
 
Operating leases11,108
Finance leases1,469
Years Ended December 31
20222021
(in thousands)
Right-of-use assets obtained in exchange for lease obligations(1):
Operating leases$38,875 $82,379 
Finance leases7,791 7,782 
(1)Represents non-cash activity and, accordingly, is not reflected in the consolidated statements of cash flows.
14. Commitments and Contingencies
Leases
WeAs indicated in Note 13, we lease office space, office equipment and technology under various leasing arrangements. The future minimum payments under non-cancelable leases, sublease commitments and related payments we are obligated to make, net of sublease commitments of third party lessees to make payments to us, as of December 31, 2019,2022, are as follows:
PaymentsSublease ReceiptsNet Payments
(in millions)
2023$107.6 $(31.9)$75.7 
2024108.9 (30.9)78.0 
202558.3 — 58.3 
202655.7 — 55.7 
202751.3 — 51.3 
2028 and thereafter487.7 — 487.7 
Total future minimum payments$869.5 $(62.8)$806.7 
 Payments Sublease Receipts Net Payments
 (in millions)
2020$117.1
 $33.8
 $83.3
2021115.1
 34.4
 80.7
2022102.0
 31.5
 70.5
202394.5
 31.0
 63.5
202491.2
 30.4
 60.8
2025 and thereafter619.2
 —
 619.2
Total future minimum payments$1,139.1
 $161.1
 $978.0
See Note 13 for material lease commitments.
Legal Proceedings
On December 14, 2022, four individual participants in the Profit Sharing Plan for Employees of AllianceBernstein L.P., (the "Plan") filed a class action complaint (the “Complaint”) in the U.S. District Court for the Southern District of New York against AB, current and former members of the Compensation Committee, and the Investment and Administrative Committees under the Plan. Plaintiffs, who seek to represent a class of all participants in the Plan from December 14, 2016 to the present, allege that defendants violated their fiduciary duties and engaged in prohibited transactions under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), by including proprietary collective investment trusts as investment options offered under the Plan. The Complaint seeks unspecified damages, disgorgement and other equitable relief. AB is prepared to defend itself vigorously against these claims. While the ultimate outcome of this matter is currently not determinable given the matter remains in its early stages, we do not believe this litigation will have a material adverse effect on our results of operations, financial condition or liquidity.
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AB may be involved in various other matters, including regulatory inquires, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that we could incur losses pertaining to these other matters, but we cannot currently estimate any such losses.
Management, after consultation with legal counsel, currently believes that the outcome of any other individual matter that is pending or threatened, or all of them combined, will not have a material adverse effect on our results of operations, financial condition or liquidity. However, any inquiry, proceeding or litigation has an element of uncertainty; management cannot determine whether further developments relating to any other individual matter that is pending or threatened, or all of them combined, will have a material adverse effect on our results of operation, financial condition or liquidity in any future reporting period.
Other
AsDuring 2010, as general partner of AllianceBernstein U.S. Real Estate L.P. (“Real Estate Fund”), we committed to invest $25.0 million in the Real Estate Fund. As of December 31, 2019,2022, we had funded $22.4 million of this commitment. AsDuring 2014, as general partner of AllianceBernstein U.S. Real Estate II L.P. (“Real Estate Fund II”), we committed to invest $28.0$27.3 million, as amended in 2020, in the Real Estate Fund II. As of December 31, 2019,2022, we had funded $19.9$21.6 million of this commitment.

15. Consolidated Company-Sponsored Investment Funds
We regularly provide seed capital to new company-sponsored investment funds. As such, we may consolidate or de-consolidate a variety of company-sponsored investment funds each quarter. Due to the similarity of risks related to our involvement with each company-sponsored investment fund, disclosures required under the VIE model are aggregated, such as disclosures regarding the carrying amount and classification of assets.

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We are not required to provide financial support to company-sponsored investment funds and only the assets of such funds are available to settle each fund's own liabilities. Our exposure to loss in regard toregarding consolidated company-sponsored investment funds is limited to our investment in, and our management fee earned from, such funds. Equity and debt holders of such funds have no recourse to AB’s assets or to the general credit of AB.
The balances of consolidated VIEs and VOEs included in our consolidated statements of financial condition were as follows:
December 31, 2022December 31, 2021
(in thousands)
Cash and cash equivalents$19,751 $90,326 
Investments516,536 613,025 
Other assets44,424 30,461 
Total assets$580,711 $733,812 
Liabilities$55,529 $87,000 
Redeemable non-controlling interest368,656 421,169 
Partners' capital attributable to AB Unitholders156,526 225,643 
Total liabilities, redeemable non-controlling interest and partners' capital$580,711 $733,812 
  December 31, 2019 December 31, 2018
  (in thousands)
  VIEs VOEs Total VIEs VOEs Total
Cash and cash equivalents $9,623
 $1,810
 $11,433
 $11,880
 $1,238
 $13,118
Investments 404,624
 176,380
 581,004
 217,840
 133,856
 351,696
Other assets 9,618
 10,192
 19,810
 6,024
 16,816
 22,840
Total assets $423,865
 $188,382
 $612,247
 $235,744
 $151,910
 $387,654
             
Liabilities $12,147
 $18,870
 $31,017
 $5,215
 $17,395
 $22,610
Redeemable non-controlling interest 273,219
 52,342
 325,561
 117,523
 28,398
 145,921
Partners' capital attributable to AB Unitholders 138,499
 117,170
 255,669
 113,006
 106,117
 219,123
Total liabilities, redeemable non-controlling interest and partners' capital $423,865
 $188,382
 $612,247
 $235,744
 $151,910
 $387,654
During 2022, we deconsolidated five funds in which we had seed investments totaling approximately $61.8 million as of December 31, 2021 due to no longer having a controlling financial interest.
Fair Value
Cash and cash equivalents include cash on hand, demand deposits, overnight commercial paper and highly liquid investments with original maturities of three months or less. Due to the short-term nature of these instruments, the recorded value has been determined to approximate fair value.


Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of December 31, 20192022 and 20182021 was as follows (in thousands):
 Level 1 Level 2 Level 3 Total
December 31, 2019:       
  Investments - VIEs$28,270
 $375,559
 $795
 $404,624
  Investments - VOEs104,069
 72,252
 59
 176,380
  Derivatives - VIEs139
 4,694
 —
 4,833
  Derivatives - VOEs76
 4,263
 —
 4,339
Total assets measured at fair value$132,554
 $456,768
 $854
 $590,176
        
Derivatives - VIEs$835
 $3,724
 $—
 $4,559
  Derivatives - VOEs101
 4,982
 —
 5,083
Total liabilities measured at fair value$936
 $8,706
 $—
 $9,642
        
December 31, 2018:       
  Investments - VIEs$22,149
 $187,626
 $8,065
 $217,840
  Investments - VOEs68,063
 65,485
 308
 133,856
  Derivatives - VIEs1,486
 1,924
 —
 3,410
  Derivatives - VOEs124
 3,692
 —
 3,816
Total assets measured at fair value$91,822
 $258,727
 $8,373
 $358,922
        
Derivatives - VIEs$72
 $3,819
 $—
 $3,891
  Derivatives - VOEs197
 3,633
 —
 3,830
Total liabilities measured at fair value$269
 $7,452
 $—
 $7,721

 Level 1Level 2Level 3Total
December 31, 2022:
Investments$129,706 $386,830 $— $516,536 
Derivatives1,529 6,023 — 7,552 
Total assets measured at fair value$131,235 $392,853 $— $524,088 
Derivatives$14,932 $6,608 $— $21,540 
Total liabilities measured at fair value$14,932 $6,608 $— $21,540 
December 31, 2021:
Investments$165,415 $444,253 $3,357 $613,025 
Derivatives622 5,265 — 5,887 
Total assets measured at fair value$166,037 $449,518 $3,357 $618,912 
Derivatives$16,291 $2,051 $— $18,342 
Total liabilities measured at fair value$16,291 $2,051 $— $18,342 
See Note 9 for a description of the fair value methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

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The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company-sponsored investment funds was as follows:
  December 31,
  2019 2018
  (in thousands)
     
Balance as of beginning of period $8,373
 $2,264
Transfers (out) in (9,445) 259
Purchases 9,213
 9,354
Sales (7,467) (3,086)
Realized gains (losses), net 14
 (100)
Unrealized gains (losses), net 143
 (331)
Accrued discounts 23
 13
Balance as of end of period $854
 $8,373

 December 31,
 20222021
 (in thousands)
Balance as of beginning of period$3,357 $619 
Deconsolidated funds(3,351)(717)
Transfers (out)(6)(205)
Purchases248 3,675 
Sales(248)(7)
Realized gains, net— 3 
Unrealized (losses), net— (11)
Balance as of end of period$— $3,357 
The Level 3 securities primarily consist of corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities.


Transfers into and out of all levels of the fair value hierarchy are reflected at end-of-period fair values. Realized and unrealized gains and losses on Level 3 financial instruments are recorded in investment gains and losses in the consolidated statements of income.

Derivative Instruments
As of December 31, 20192022 and 2018,2021, the VIEs held $0.3$14.0 million and $0.5$12.5 million (net), respectively, of futures, forwards, options and swaps within their portfolios. For the years ended December 31, 20192022 and 2018,2021, we recognized $3.3$9.4 million and $1.5$0.7 million of gains,losses, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the consolidated statements of income.
As of December 31, 20192022 and 2018,2021, the VIEs held $1.6$2.7 million and $0.9 million, respectively, of cash collateral payable to trade counterparties. This obligation to return cash is reported in the liabilities of consolidated company-sponsored investment funds in our consolidated statements of financial condition.
As of December 31, 20192022 and 2018,2021, the VIEs delivered $3.2$5.4 million and $0.8$1.8 million, respectively, of cash collateral into brokerage accounts. The VIEs report this cash collateral in the consolidated company-sponsored investment funds cash and cash equivalents in our consolidated statements of financial condition.
As of December 31, 2019 and 2018, the VOEs held $0.7 million and $0.1 million (net), respectively, of futures, forwards, options and swaps within their portfolios. For the years ended December 31, 2019 and 2018, we recognized $0.5 million and $1.9 million of gains, respectively, on these derivatives. These gains and losses are recognized in the investment gains (losses) in the consolidated statements of income. As of December 31, 2019 and 2018, the VOEs held $0.5 million and $0.2 million of cash collateral payable to trade counterparties. This obligation to return cash is reported in the liabilities of consolidated company-sponsored investment funds in our consolidated statements of financial condition. As of December 31, 2019 and 2018, the VOEs delivered $1.2 million and $0.5 million, respectively, of cash collateral into brokerage accounts. The VOEs report this cash collateral in the consolidated company-sponsored investment funds cash and cash equivalents in our consolidated statements of financial condition.
Offsetting Assets and Liabilities
Offsetting of derivative assets of consolidated company-sponsored investment funds as of December 31, 20192022 and 20182021 was as follows:
 Gross Amounts of Recognized AssetsGross Amounts Offset in the Statement of Financial ConditionNet Amounts of Assets Presented in the Statement of Financial ConditionFinancial
Instruments		Cash Collateral
Received		Net
Amount
 (in thousands)
December 31, 2022:
Derivatives$7,552 $— $7,552 $— $(2,731)$4,821 
December 31, 2021:
Derivatives$5,887 $— $5,887 $— $(904)$4,983 
 Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition 
Financial
Instruments
 
Cash Collateral
Received
 
Net
Amount
 (in thousands)
December 31, 2019:           
Derivatives - VIEs$4,833
 $—
 $4,833
 $—
 $(1,631) $3,202
Derivatives - VOEs$4,339
 $—
 $4,339
 $—
 $(534) $3,805
December 31, 2018:           
Derivatives - VIEs$3,410
 $—
 $3,410
 $—
 $(856) $2,554
Derivatives - VOEs$3,816
 $—
 $3,816
 $—
 $(225) $3,591

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Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of December 31, 20192022 and 20182021 was as follows:
 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities Presented in the Statement of Financial Condition 
Financial
Instruments
 
Cash Collateral
Pledged
 Net Amount
 (in thousands)
December 31, 2019:           
Derivatives - VIEs$4,559
 $—
 $4,559
 $—
 $(3,155) $1,404
Derivatives - VOEs$5,083
 $—
 $5,083
 $—
 $(1,201) $3,882
December 31, 2018:           
Derivatives - VIEs$3,891
 $—
 $3,891
 $—
 $(829) $3,062
Derivatives - VOEs$3,830
 $—
 $3,830
 $—
 $(547) $3,283

 Gross
 Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial ConditionNet Amounts
of Liabilities Presented in the Statement of Financial Condition		Financial
Instruments		Cash Collateral
Pledged		Net
Amount
 (in thousands)
December 31, 2022:
Derivatives$21,540 $— $21,540 $— $(5,444)$16,096 
December 31, 2021:
Derivatives$18,342 $— $18,342 $— $(1,824)$16,518 
Cash collateral, whether pledged or received on derivative instruments, is not considered material and, accordingly, is not disclosed by counterparty.
Non-Consolidated VIEs
As of December 31, 2019,2022, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $79.3 billion, and$46.4 billion; our maximum risk of loss is our investment of $8.4$5.7 million in these VIEs and our advisory fee receivablesfees receivable from these VIEs which are not material.$54.2 million. As of December 31, 2021, the net assets of company-sponsored investment products that were non-consolidated VIEs was approximately $68.9 billion; our maximum risk of loss was our investment of $8.8 million in these VIEs and our advisory fees receivable from these VIEs were $75.7 million.
16. Net Capital
SCB LLC is registered as a broker-dealer under the Exchange Act and is subject to the minimum net capital requirements imposed by the U.S. Securities and Exchange Commission ("SEC"). SCB LLC computes its net capital under the alternative method permitted by the applicable rule, which requires that minimum net capital, as defined, equals the greater of $1 million or two percent of aggregate debit items arising from customer transactions, as defined. As of December 31, 2019,2022, SCB LLC had net capital of $250.8$323.1 million, which was $219.6$284.9 million in excess of the minimum net capital requirement of $31.2$38.2 million. Advances, dividend payments and other equity withdrawals by SCB LLC are restricted by regulations imposed by the SEC, the Financial Industry Regulatory Authority, Inc., and other securities agencies.
Our U.K.-based broker-dealer is a member of the London Stock Exchange. As of December 31, 2019,2022, it was subject to financial resources requirements of $14.9$45.4 million imposed by the Financial Conduct Authority of the United Kingdom and had aggregate regulatory financial resources of $30.2$51.0 million, an excess of $15.3 million.$5.6 million over the required level.
AllianceBernstein Investments, Inc. ("ABI"), another one of our subsidiaries and the distributor and/or underwriter for certain company-sponsored mutual funds, is registered as a broker-dealer under the Exchange Act and is subject to the minimum net capital requirements imposed by the SEC. As of December 31, 2019, it2022, ABI had net capital of $22.1$53.5 million, which was $21.8$53.2 million in excess of its required net capital of $0.3 million.
Many of our subsidiaries around the world are subject to minimum net capital requirements by the local laws and regulations to which they are subject. As of December 31, 2019,2022, each of our subsidiaries subject to a minimum net capital requirement satisfied the applicable requirement.
17. Counterparty Risk
Customer Activities
In the normal course of business, brokerage activities involve the execution, settlement and financing of various customer securities trades, which may expose our broker-dealer operations to off-balance sheet risk by requiring us to purchase or sell securities at prevailing market prices in the event the customer is unable to fulfill its contractual obligations.
Our customer securities activities are transacted on either a cash or margin basis. In margin transactions, we extend credit to the customer, subject to various regulatory and internal margin requirements. These transactions are collateralized by cash or securities

in the customer’s account. In connection with these activities, we may execute and clear customer transactions involving the sale of securities not yet purchased. We seek to control the risks associated with margin transactions by requiring
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customers to maintain collateral in compliance with the aforementioned regulatory and internal guidelines. We monitor required margin levels daily and, pursuant to such guidelines, require customers to deposit additional collateral, or reduce positions, when necessary. A majority of our customer margin accounts are managed on a discretionary basis whereby we maintain control over the investment activity in the accounts. For these discretionary accounts, our margin deficiency exposure is minimized by our maintaining a diversified portfolio of securities in the accounts, our discretionary authority and our U.S-basedU.S.-based broker-dealer's role as custodian.
In accordance with industry practice, we record customer transactions on a settlement date basis, which generally is two business days after trade date for our U.K. and U.S. operations. We are exposed to risk of loss on these transactions in the event of the customer’s or broker’s inability to meet the terms of their contracts, in which case we may have to purchase or sell financial instruments at prevailing market prices. The risks we assume in connection with these transactions are not expected to have a material adverse effect on our financial condition or results of operations.
Other Counterparties
We are engaged in various brokerage, futures, forwards, options and swap activities on behalf of clients, in which counterparties primarily include broker-dealers, banks and other financial institutions. In the event these counterparties do not fulfill their obligations, our clients and we may be exposed to loss. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument.counterparty. It is our policy to review, as necessary, each counterparty’s creditworthiness.
In connection with security borrowing and lending arrangements, we enter into collateralized agreements, which may result in potential loss in the event the counterparty to a transaction is unable to fulfill its contractual obligations. Security borrowing arrangements require us to deposit cash collateral with the lender. With respect to security lending arrangements, we receive collateral in the form of cash in amounts generally in excess of the market value of the securities loaned. We attempt to mitigate credit risk associated with these activities by establishing credit limits for each broker and monitoring these limits on a daily basis. Additionally, security borrowing and lending collateral is marked to market on a daily basis, and additional collateral is deposited by or returned to us as necessary.
We enter into various futures, forwards, options and swaps primarily to economically hedge certain of our seed money investments. We may be exposed to credit losses in the event of nonperformance by counterparties to these derivative financial instruments. See Note 7, Derivative Instruments for further discussion.
18. Qualified Employee Benefit Plans
We maintain a qualified profit sharing plan covering U.S. employees and certain foreign employees. Employer contributions are discretionary and generally limited to the maximum amount deductible for federal income tax purposes. Aggregate contributions for 2019, 2018 and 2017 were $14.4$17.5 million, $15.0$16.5 million and $14.4$15.6 million for 2022, 2021 and 2020, respectively.
We maintain several defined contribution plans for foreign employees working for our subsidiaries in the United Kingdom, Australia, Japan and other locations outside the United States. Employer contributions generally are consistent with regulatory requirements and tax limits. Defined contribution expense for foreign entities was $7.7$10.2 million, $7.1$9.8 million and $6.8$8.4 million in 2019, 20182022, 2021 and 2017,2020, respectively.
We maintain a qualified, noncontributory, defined benefit retirement plan (“Retirement Plan”) covering current and former employees who were employed by AB in the United States prior to October 2, 2000. Benefits are based on years of credited service, average final base salary (as defined in the Retirement Plan) and primary Social Security benefits. Service and compensation after December 31, 2008 are not taken into account in determining participants’ retirement benefits.
Our policy is to satisfy our funding obligation for each year in an amount not less than the minimum required by the Employee Retirement Income Security Act of 1974, as amended,ERISA and not greater than the maximum amount we can deduct for federal income tax purposes. We contributed $4.0 milliondid not make a contribution to the Retirement Plan during 2019.2022. We do not currently anticipate that we will contribute to the Retirement Plan during 2020.2023. Contribution estimates, which are subject to change, are based on regulatory requirements, future market conditions and assumptions used for actuarial computations of the Retirement Plan’s obligations and assets. Management, at the present time, has not determined the amount, if any, of additional future contributions that may be required.

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The Retirement Plan’s projected benefit obligation, fair value of plan assets and funded status (amounts recognized in the consolidated statements of financial condition) were as follows:
Years Ended December 31,Years Ended December 31
2019 201820222021
(in thousands)(in thousands)
Change in projected benefit obligation:   Change in projected benefit obligation:
Projected benefit obligation at beginning of year$116,233
 $125,200
Projected benefit obligation at beginning of year$141,862 $151,124 
Interest cost4,944
 4,771
Interest cost3,958 3,794 
Actuarial loss (gain)20,411
 (9,918)
Plan settlementsPlan settlements(4,524)(5,803)
Actuarial (gain)Actuarial (gain)(37,839)(4,447)
Benefits paid(5,475) (3,820)Benefits paid(2,977)(2,806)
Projected benefit obligation at end of year136,113
 116,233
Projected benefit obligation at end of year100,480 141,862 
Change in plan assets:   Change in plan assets:
Plan assets at fair value at beginning of year98,584
 100,706
Plan assets at fair value at beginning of year130,939 125,022 
Actual return on plan assets16,971
 (3,302)Actual return on plan assets(27,448)14,526 
Employer contribution4,000
 5,000
Employer contribution— — 
Plan settlementsPlan settlements(4,524)(5,803)
Benefits paid(5,475) (3,820)Benefits paid(2,977)(2,806)
Plan assets at fair value at end of year114,080
 98,584
Plan assets at fair value at end of year95,990 130,939 
Funded status$(22,033) $(17,649)Funded status$(4,490)$(10,923)
Effective December 31, 2015, the Retirement Plan was amended to change the actuarial basis used for converting a life annuity benefit to optional forms of payment and converting benefits payable at age 65 to earlier commencement dates. This prior service cost will be amortized over future years.
The amounts recognized in other comprehensive income (loss) for the Retirement Plan for 2019, 20182022, 2021 and 20172020 were as follows:
202220212020
(in thousands)
Unrecognized net gain (loss) from experience different from that assumed and effects of changes and assumptions$6,519 $15,858 $(4,089)
Prior service cost24 24 24 
6,543 15,882 (4,065)
Income tax (expense)(33)(87)(216)
Other comprehensive income (loss)$6,510 $15,795 $(4,281)
 2019 2018 2017
 (in thousands)
Unrecognized net (loss) gain from experience different from that assumed and effects of changes and assumptions$(7,934) $1,870
 $(3,043)
Prior service cost24
 24
 24
 (7,910) 1,894
 (3,019)
Income tax benefit (expense)312
 (207) (49)
Other comprehensive (loss) income$(7,598) $1,687
 $(3,068)
The gain of $6.5 million recognized in 2022 was primarily due tochanges in the discount rate and lump sum interest rates of ($38.7 million), settlement loss recognized of ($1.7 million) and the recognized actuarial loss of ($1.0 million), offset by actual earnings less than expected earnings on plan assets ($34.0 million), changes in the census data ($0.5 million) and changes in adjustments for participants who received their pension as a lump sum ($0.4 million).
The gain of $15.8 million recognized in 2021 was primarily due to actual earnings exceeding expected earnings on plan assets ($8.2 million), changes in the discount rate and lump sum interest rates of ($5.6 million), settlement loss recognized of ($2.0 million) and the recognized actuarial loss of ($1.5 million), offset by changes in the census data ($1.0 million) and changes in the mortality assumption ($0.2 million).
The loss of $7.6$4.3 million recognized in 20192020 primarily was due to changes in the discount rate and lump sum interest rates ($21.716.7 million), offset by actual earnings exceeding expected earnings on plan assets ($11.310.4 million), changes in the mortality assumption ($1.21.0 million), the recognized actuarial loss ($1.11.4 million) and changes in the census data ($0.1 million). The gain of $1.7 million recognized in 2018 primarily was due to changes in the discount rate and lump sum interest rates ($9.7 million), the recognized actuarial loss ($1.1 million) and changes in the mortality assumption ($0.4 million), offset by actual earnings exceeding expected earnings on plan assets ($9.2 million) and changes in the census data ($0.2 million). The loss of $3.1 million recognized in 2017 primarily was due to changes in the discount rate and lump sum interest rates ($11.9 million) and changes in the census data ($1.4 million), offset by actual earnings exceeding expected earnings on plan assets ($8.5 million), the recognized actuarial loss ($1.1 million) and changes in the mortality assumption ($0.7 million).

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Foreign retirement plans and an individual's retirement plan maintained by AB are not material to AB's consolidated financial statements. As such, disclosure for these plans is not necessary. The reconciliation of the 20192022 amounts recognized in other comprehensive income for the Retirement Plan as compared to the consolidated statement of comprehensive income ("OCI Statement"Statement") is as follows:
Retirement
Plan		Retired Individual PlanForeign Retirement PlansOCI
Statement
Retirement Plan Retired Individual Plan Foreign Retirement Plans OCI Statement(in thousands)
(in thousands)
Recognized actuarial (loss) gain$(7,934) $(69) $112
 $(7,891)
Recognized actuarial gainRecognized actuarial gain$6,519 $107 $296 $6,922 
Amortization of prior service cost24
 —
 —
 24
Amortization of prior service cost24 — — 24 
Changes in employee benefit related items(7,910) (69) 112
 (7,867)Changes in employee benefit related items6,543 107 296 6,946 
Income tax benefit (expense)312
 3
 (41) 274
Income tax (expense)Income tax (expense)(33)— (62)(95)
Employee benefit related items, net of tax$(7,598) $(66) $71
 $(7,593)Employee benefit related items, net of tax$6,510 $107 $234 $6,851 
The amounts included in accumulated other comprehensive income (loss)loss for the Retirement Plan as of December 31, 20192022 and 20182021 were as follows:
2019 201820222021
(in thousands)(in thousands)
Unrecognized net loss from experience different from that assumed and effects of changes and assumptions$(55,537) $(47,603)Unrecognized net loss from experience different from that assumed and effects of changes and assumptions$(37,249)$(43,768)
Prior service cost(731) (755)Prior service cost(659)(683)
(56,268) (48,358)(37,908)(44,451)
Income tax benefit513
 201
Income tax benefit177 210 
Accumulated other comprehensive loss$(55,755) $(48,157)Accumulated other comprehensive loss$(37,731)$(44,241)
The amortization period over which we are amortizing the loss for the Retirement Plan from accumulated other comprehensive income is 30.927.9 years. The estimated prior service cost and amortization of loss for the Retirement Plan that will be amortized from accumulated other comprehensive income over the next year are $24 thousand$24,000 and $1.4$1.0 million, respectively.
The accumulated benefit obligation for the plan was $136.1$100.5 million and $116.2$141.9 million as of December 31, 20192022 and 2018,2021, respectively.
The discount rates used to determine benefit obligations as of December 31, 20192022 and 20182021 (measurement dates) were 3.35%5.50% and 4.40%2.90%, respectively.
Benefit payments are expected to be paid as follows (in thousands):
2023$10,121 
20246,767 
20258,058 
20267,865 
20278,743 
2028 - 203238,404 
2020$5,868
20217,113
20229,202
20237,451
20247,538
2025-202945,048

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Net expense under the Retirement Plan consisted of:
Year Ended December 31,Years Ended December 31
2019 2018 2017202220212020
(in thousands)(in thousands)
Interest cost on projected benefit obligations$4,944
 $4,771
 $4,999
Interest cost on projected benefit obligations$3,958 $3,794 $4,443 
Expected return on plan assets(5,639) (5,893) (5,261)Expected return on plan assets(6,591)(6,351)(6,084)
Amortization of prior service cost24
 24
 24
Amortization of prior service cost24 24 24 
Settlement loss recognizedSettlement loss recognized1,678 2,024 — 
Recognized actuarial loss1,146
 1,146
 1,097
Recognized actuarial loss1,042 1,447 1,386 
Net pension expense$475
 $48
 $859
Net pension expense$111 $938 $(231)
Actuarial computations used to determine net periodic costs were made utilizing the following weighted-average assumptions:
Years Ended December 31,Years Ended December 31
2019 2018 2017202220212020
Discount rate on benefit obligations4.40% 3.90% 4.55%Discount rate on benefit obligations2.90 %2.55 %3.35 %
Expected long-term rate of return on plan assets5.75% 5.75% 6.00%Expected long-term rate of return on plan assets5.25 %5.25 %5.50 %
In developing the expected long-term rate of return on plan assets of 5.75%5.25%, management considered the historical returns and future expectations for returns for each asset category, as well as the target asset allocation of the portfolio. The expected long-term rate of return on assets is based on weighted average expected returns for each asset class.
As of December 31, 2019,2022, the mortality projection assumption has been updated to useused the generational MP-2019MP-2021 improvement scale. Previously,scale, which is consistent with the improvement scale used in 2021. Prior to 2021, mortality was projected generationally using the MP-2018MP-2020 improvements scale. The base mortality assumption was updated toused is the Society of Actuaries Pri-2012 base mortality table for private sector plans, with a white-collar adjustment, using the contingent annuitant table for beneficiaries of deceased participants. Previously, the mortality assumption was the RP-2014 white-collar mortality table for males and females adjusted back to 2006 using the MP-2014 improvement scale.
The Internal Revenue Service (“IRS”) recently updated the mortality tables used to determine lump sums. For fiscal year-end 2019,2022, we reflected the most recently published IRS table for lump sums assumed to be paid in 2020.2023. We projected future mortality for lump sums assumed to be paid after 20202023 using the current base mortality tables (RP-2014 backed off to 2006) and projection scale of MP-2019.MP-2021.
The Retirement Plan’s asset allocation percentages consisted of:
December 31,Years Ended December 31
2019 201820222021
Equity47% 43%Equity46 %52 %
Debt securities41
 41
Debt securities42 38 
Other12
 16
Other12 10 
100% 100%
TotalTotal100 %100 %
The guidelines regarding allocation of assets are formalized in the Investment Policy Statement adopted by the Investment Committee for the Retirement Plan. The objective of the investment program is to enhance the portfolio of the Retirement Plan through total return (capital appreciation and income), thereby promoting the ongoing ability of the Retirement plan to meet future liabilities and obligations, while minimizing the need for additional contributions. The guidelines specify an allocation weighting of 10% to 35% for liability hedging investments (target of 20%24%), 15% to 40% for return seeking investments (target of 27%), 5% to 35% for risk mitigating investments (target of 14%10%), 10% to 35% for diversifying investments (target of 21%) and 5% to 35% for dynamic asset allocation (target of 18%). Investments in mutual funds, hedge funds (and other alternative investments), and other commingled investment vehicles are permitted under the guidelines.Investment Policy Statement. Investments are permitted in overlay portfolios (regulated mutual funds), which are designed to manage short-term portfolio risk and mitigate the effect of extreme outcomes by varying the asset allocation of a portfolio.
See Note 9, Fair Value for a description of how we measure the fair value of our plan assets.

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The valuation of our Retirement Plan assets by pricing observability levels as of December 31, 20192022 and 20182021 was as follows (in thousands):
Level 1Level 2Level 3Total
December 31, 2022
Cash$1,441 $— $— $1,441 
U.S. Treasury Strips— 15,634 — 15,634 
Fixed income mutual funds2,149 — — 2,149 
Fixed income securities— 22,478 — 22,478 
Equity mutual funds26,074 — — 26,074 
Equity securities10,928 219 — 11,147 
Total assets in the fair value hierarchy40,592 38,331 — 78,923 
Investments measured at net assets value— — — 17,067 
Investments at fair value$40,592 $38,331 $— $95,990 
 Level 1 Level 2 Level 3 Total
December 31, 2019       
Cash$230
 $—
 $—
 $230
U.S. Treasury Strips—
 27,318
 —
 27,318
Fixed income mutual funds19,518
 —
 —
 19,518
Equity mutual fund33,875
 —
 —
 33,875
Equity securities11,182
 —
 —
 11,182
Total assets in the fair value hierarchy64,805
 27,318
 —
 92,123
Investments measured at net assets value—
 —
 —
 21,957
Investments at fair value$64,805
 $27,318
 $—
 $114,080

Level 1Level 2Level 3Total
Level 1 Level 2 Level 3 Total
December 31, 2018       
December 31, 2021December 31, 2021
Cash$238
 $—
 $—
 $238
Cash$47 $— $— $47 
U.S. Treasury Strips—
 22,355
 —
 22,355
U.S. Treasury Strips— 32,355 — 32,355 
Fixed income mutual funds18,362
 —
 —
 18,362
Fixed income mutual funds17,477 — — 17,477 
Equity mutual fund26,508
 —
 —
 26,508
Equity mutual fundsEquity mutual funds43,786 — — 43,786 
Equity securities8,970
 —
 —
 8,970
Equity securities14,801 — — 14,801 
Total assets in the fair value hierarchy54,078
 22,355
 —
 76,433
Total assets in the fair value hierarchy76,111 32,355 — 108,466 
Investments measured at net assets value—
 —
 —
 22,151
Investments measured at net assets value— — — 22,473 
Investments at fair value$54,078
 $22,355
 $—
 $98,584
Investments at fair value$76,111 $32,355 $— $130,939 
During 20192022 and 2018,2021, the Retirement Plan's investments include the following:
•U.S. Treasury strips, (zero-coupon bonds);
•one fixed income mutual fund in 2022, as compared to two fixed income mutual funds which seekin 2021. The fund included in both 2022 and 2021 pursues an aggressive investment strategy involving a variety of asset classes. This fund seeks inflation protection from investments around the globe, both in developed and emerging market countries. The additional fund included in 2021 sought to generate income consistent with preservation of capital. One fund invests in a portfolio of investment-grade securities primarily in the U.S. with additional non-U.S. securities. The second fund invests in inflation-indexed fixed-income securities and similar bonds issued by non-U.S. governments and various commodities;capital;
seven•six equity mutual funds four ofin both 2022 and 2021, which focus on both U.S.-based and non-U.S.-based equity securities of various capitalization sizes ranging from small to large capitalizationscapitalization and diversified portfolios within those capitalization ranges;
•one asset allocation mutual fund, which seeks to moderate overall volatility and three funds thatlimit extreme outcomes in times of market stress, without sacrificing long-term growth potential. This fund continuously adjusts the mix of global equities, bonds and related “opportunistic” assets based on our view of prospective market conditions;
•one separately managed account, managed against the Bloomberg Long U.S. Corporate index. This portfolio invests in U.S. dollar denominated investment grade fixed income securities with at least 10 years to maturity; one alternative investment, securitized assets hedge fund with a focus on non-U.S. based equitymortgage credit, principally through investment in Credit Risk Transfer Securities, residential mortgage-backed securities, of various capitalization sizes ranging from small to large capitalizationscommercial mortgage-backed securities and diversified portfolios therein across non-U.S. regions;other asset-backed securities; and
separate equity and fixed income mutual funds, which seek to moderate the volatility of equity and fixed income oriented asset allocation over the long term, as part of the overall asset allocation managed by AB;
a multi-style, multi-cap integrated portfolio adding U.S. equity diversification to its value and growth equity selections, designed to deliver a long-term premium to the S&P 500 with greater consistency across a range of market environments; and
•investments measured at net asset value, including threetwo hedge funds that seekin both 2022 and 2021; one fund is a long/short equity-focused multi-manager hedge fund investing across industries and geographies. The second fund seeks to provide attractive risk-adjusted returns over full market cycles with less volatility than thethat of broad equity markets by allocating all or substantially all of their assets among portfolio managers through portfolio funds that employ a broad range of investment strategies; one private investment trust that invests primarily in equity securitiesstrategies.
116AllianceBernstein
Table of non-U.S. companies located in emerging market countries; and one collective investment trust that invests in U.S. and non-U.S. equities of various capitalization sizes.Contents

Part II
19. Long-term Incentive Compensation Plans
We maintain an unfunded, non-qualified incentive compensation program known as the AllianceBernstein Incentive Compensation Award Program (“Incentive Compensation Program”), under which annual awards may be granted to eligible employees. See Note 2, "Summary of Significant Accounting Policies – Long-Term Incentive Compensation Plans" for a discussion of the award provisions.
Under the Incentive Compensation Program, we made awards in 2019, 20182022, 2021 and 20172020 aggregating $175.5$164.3 million, $183.3$184.1 million and $168.2$177.4 million, respectively. The amounts charged to employee compensation and benefits expense for the years ended December 31, 2019, 20182022, 2021 and 20172020 were $177.2$160.1 million, $161.0$173.4 million and $172.8$176.8 million, respectively.
Effective as of September 30, 2017, we established the AB 2017 Long Term Incentive Plan (“2017 Plan”), which was adopted at a special meeting of AB Holding Unitholders held on September 29, 2017. The following forms of awards may be granted to employees and Eligible Directors (directors who satisfy applicable independence standards) under the 2017 Plan: (i) restricted AB Holding Units or phantom restricted AB Holding Units (a “phantom” award is a contractual right to receive AB Holding Units at a later date or upon a specified event); (ii) options to buy AB Holding Units; and (iii) other AB Holding Unit-based awards (including, without limitation, AB Holding Unit appreciation rights and performance awards). The purpose of the 2017 Plan is to promote the interest of AB by: (i) attracting and retaining talented officers, employees and directors, (ii) motivating such officers, employees and directors by means of performance-related incentives to achieve longer-range business and operational goals, (iii) enabling such officers, employees and directors to participate in the long-term growth and financial success of AB, and (iv) aligning the interests of such officers, employees and directors with those of AB Holding Unitholders. The 2017 Plan will expire on September 30, 2027, and no awards under the 2017 Plan will be made after that date. Under the 2017 Plan, the aggregate number of AB Holding Units with respect to which awards may be granted is 60 million, including no more than 30 million newly-issued AB Holding Units.
As of December 31, 2019,2022, no options to buy AB Holding Units had been grantedwere outstanding and 20,602,67429,795,964 AB Holding Units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or the AllianceBernstein 2010 Long Term Incentive Plan, as amended, an equity compensation plan with similar terms that was canceled on September 30, 2017. AB Holding Unit-based awards (including options) in respect of 39,397,32630,204,036 AB Holding Units were available for grant under the 2017 Plan as of December 31, 2019.2022.
As of December 31, 2021, no options to buy AB Holding Units had been granted and 28,109,084 AB Holding Units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or the AllianceBernstein 2010 Long Term Incentive Plan, as amended, an equity compensation plan with similar terms that was canceled on September 30, 2017. AB Holding Unit-based awards (including options) in respect of 31,890,916 AB Holding Units were available for grant under the 2017 Plan as of December 31, 2021.
Option Awards
We did not grant any options to buy AB Holding Units during 2019, 20182022, 2021 or 2017.2020. Historically, options granted to employees generally were exercisable at a rate of 20% of the AB Holding Units subject to such options on each of the first five anniversary dates of the date of grant; options granted to Eligible Directors generally were exercisable at a rate of 33.3% of the AB Holding Units subject to such options on each of the first three anniversary dates of the date of grant.
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The option-related activity in our equity compensation plans during 20192022 is as follows:
Options to Buy
AB Holding
Units		Weighted
Average
Exercise
Price
Per Option		Weighted
Average
Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value (in thousands)
Options to Buy
AB Holding
Units
 
Weighted
Average
Exercise 
Price
Per Option
 
Weighted
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic
Value
Outstanding as of December 31, 2018671,243
 $22.83
 1.6  
Outstanding as of December 31, 2021Outstanding as of December 31, 20215,774 $20.12 0.33
Granted—
 —
  Granted— — 
Exercised(511,894) 22.49
  Exercised(5,774)20.12 
Forfeited—
 —
  Forfeited— — 
Expired—
 —
  Expired— — 
Outstanding as of December 31, 2019159,349
 23.93
 2.1 $1.0
Exercisable as of December 31, 2019141,163
 24.09
 2.1 0.9
Vested or expected to vest as of December 31, 2019159,349
 23.93
 2.1 1.0
Outstanding as of December 31, 2022Outstanding as of December 31, 2022— $— — $— 
Exercisable as of December 31, 2022Exercisable as of December 31, 2022— $— — $— 
Vested or expected to vest as of December 31, 2022Vested or expected to vest as of December 31, 2022— $— — $— 
The total intrinsic value of options exercised during 2019, 2018 and 20172022, 2021 or 2020 was $3.7$0.2 million, $8.9$2.2 million and $8.3 million,$32,368, respectively.
Under the fair value method, compensation expense is measured at the grant date based on the estimated fair value of the options awarded (determined using the Black-Scholes option valuation model) and is recognized over the requiredrequisite service period. We recordedAs we did not grant any option awards in 2022, 2021 or 2020, no compensation expense related to option grants in 2019, 2018 or 2017 as no options were granted.was recorded. As of December 31,

2019, 2022, there was no compensation expense related to unvested option grants not yet recognized in the consolidated statement of income.
Restricted AB Holding Unit Awards
In 2019, 20182022, 2021 and 2017,2020, the Board granted restricted AB Holding Unit awards to Eligible Directors. These AB Holding Units give the Eligible Directors, in most instances, all the rights of other AB Holding Unitholders, subject to such restrictions on transfer as the Board may impose.
We awarded 45,420, 53,720 and 50,252award restricted AB Holding Units respectively, in 2019, 2018 and 2017 with grant date fair values per restricted AB Holding Unit of $29.26 and $29.90 in 2019, $26.90 in 2018, and $21.25 and $24.80 in 2017. All of the restricted AB Holding Unitsto Eligible Directors that vest ratably over three or four years.years (four years for awards granted in 2021 and previous years). We fully expensed these awards on each grant date, as there is no service requirement. We recorded compensation expense relatingGrant details related to these awards of $1.3 million, $1.4 million and $1.1 million, respectively, for the years ended December 31, 2019, 2018 and 2017.is as follows:
202220212020
Restricted Units Awarded30,870 35,358 50,232 
Weighted Average Grant Date Fair Value$38.55 $44.29 $23.69 
Compensation Expense (in millions)$1.2 $1.6 $1.2 
On April 28, 2017, the Board removed Peter S. Kraus from his position as Chairman of the Board and Chief Executive Officer ("CEO"). As a result of his removal, we accelerated the vesting on the remaining two tranches under his June 2012 employment agreement and delivered the AB Holding Units to him in June 2017. During 2017, we recorded $10.2 million of compensation expense relating to Mr. Kraus's restricted AB Holding Unit grant.
On April 28, 2017, Seth P. Bernstein was appointed President and CEO pursuant to an employment agreement, effective May 1, 2017. Chief Executive Officer. In connection with the commencement of his employment, Mr. Bernstein was granted restricted AB Holding Units; these Units with a grant date fair valuewere fully amortized as of $3.5 million (164,706 AB Holding Units based on the $21.25 grant date AB Holding Unit price on May 16, 2017) and a four-year service requirement. Mr. Bernstein's restricted AB Holding Units vest ratably on each of the first four anniversaries of his commencement date and will be delivered to Mr. Bernstein as soon as administratively feasible after May 1, 2021, subject to accelerated vesting clauses in his employment agreement. We recorded compensationDecember 31, 2021. Compensation expense relatingrelated to Mr. Bernstein's restricted AB Holding Unit grants of $0.9 million, $0.9grant was $0.3 million and $0.6$0.9 million for the years ended December 31, 2019, 20182021, and 2017,2020, respectively.
Under the Incentive Compensation Program, we awarded 5.84.2 million restricted AB Holding Units in 20192022 (which included 5.43.8 million restricted AB Holding Units in December for the 20192022 year-end awards as well as 0.4 million additional restricted AB Holding Units granted earlier during the year relating to the 20182021 year-end awards), 6.5with grant date fair values per restricted AB Holding Unit ranging between $38.84 to $50.94.
We awarded 3.5 million restricted AB Holding Units in 20182021 (which included 6.23.3 million restricted AB Holding Units in December for the 20182021 year-end awards as well as 0.2 million additional restricted AB Holding Units granted earlier during the year relating to the 2020 year-end awards), with grant date fair values per restricted AB Holding Unit ranging between $32.10 to $50.94.
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We awarded 5.3 million restricted AB Holding Units in 2020 (which included 5.0 million restricted AB Holding Units in December for the 2020 year-end awards as well as 0.3 million additional restricted AB Holding Units granted earlier during the year relating to the 2017 year-end awards), and 6.3 million restricted AB Holding Units in 2017 (which included 6.1 million restricted AB Holding Units in December for the 2017 year-end awards as well as 0.2 million additional restricted AB Holding Units granted earlier during the year related to the 20162019 year-end awards). The, with grant date fair values per restricted AB Holding Unit rangedranging between $26.69 and $30.01 in 2019, $24.95 and $26.69 in 2018, and $23.00 and $24.95 in 2017. $28.75 to $32.10.
Restricted AB Holding Units awarded under the Incentive Compensation Program in 2020 and years prior generally vestvested in 25% increments on December 1st1st of each of the four years immediately following the year in which the award was granted. Awards granted in 2021 and subsequent years generally vest in 33.3% increments on December 1st of each of the three years immediately following the year in which the award is granted.
We also award restricted AB Holding Units in connection with certain employment and separation agreements, as well as relocation-related performance awards, with vesting schedules generally ranging between two and fiveten years. Grant details related to these awards is as follows:
202220212020
(in millions excluding share prices)
Restricted Units Awarded0.5 3.4 0.4 
Grant Date Fair Value Range$34.86 - $49.90$29.06 - $53.86$18.80 - $35.42
Compensation Expense$35.0 $40.9 $32.1 
The fair value of the restricted AB Holding Units is amortized over the requiredrequisite service period as employee compensation expense. We awarded 1.9 million, 2.6 million and 1.8 million restricted AB Holding Units in 2019, 2018 and 2017, respectively, with grant date fair values per restricted AB Holding Unit ranging between $27.32 and $30.85 in 2019, $25.05 and $30.25 in 2018, and $21.25 and $25.65 in 2017. We recorded compensation expense relating to restricted AB Holding Unit grants in connection with certain employment and separation agreements of $36.7 million, $32.2 million and $21.6 million, respectively, for the years ended December 31, 2019, 2018 and 2017.
Changes in unvested restricted AB Holding Units during 20192022 are as follows:
AB Holding
Units		Weighted Average
Grant Date Fair
Value per AB Holding
Unit
AB Holding
Units
 
Weighted Average
Grant Date Fair
Value per AB Holding
Unit
Unvested as of December 31, 201820,214,389
 $25.12
Unvested as of December 31, 2021Unvested as of December 31, 202118,130,740 $33.98 
Granted7,739,318
 28.75
Granted4,709,600 40.31 
Vested(8,260,466) 24.38
Vested(7,671,109)32.10 
Forfeited(406,161) 25.86
Forfeited(396,995)36.15 
Unvested as of December 31, 201919,287,080
 26.88
Unvested as of December 31, 2022Unvested as of December 31, 202214,772,236 $36.92 
The total grant date fair value of restricted AB Holding Units that vested during 2019, 2018 and 2017 was $201.4$246.2 million, $169.1$199.0 million and $177.0$155.0 million during 2022, 2021 and 2020, respectively. As of December 31, 2019,2022, the 19,287,08014,772,236 unvested restricted AB Holding Units consist of 14,752,83110,148,408 restricted AB Holding Units that do not have a service requirement and have been fully expensed on the grant date and 4,534,2494,623,828 restricted AB Holding Units that have a service requirement and will be expensed over the required service period. As of December 31, 2019,2022, there was $101.5$114.0 million of compensation expense related to unvested restricted AB Holding Unit awards granted and not yet recognized in the consolidated statement of income. We expect to recognize the expense over a weighted average period of 3.66.1 years.
20. Units Outstanding
Changes in AB Units outstanding for the years ended December 31, 20192022 and 20182021 were as follows:
2019 201820222021
Outstanding as of January 1,268,850,276
 268,659,333
Outstanding as of January 1,271,453,043 270,509,658 
Options exercised511,894
 889,119
Options exercised5,774 143,211 
Units issued4,833,715
 6,153,320
Units retired(1)
(3,815,571) (6,851,496)
Units issued (1)
Units issued (1)
17,326,222 3,917,437 
Units retired(2)
Units retired(2)
(2,805,126)(3,117,263)
Outstanding as of December 31,270,380,314
 268,850,276
Outstanding as of December 31,285,979,913 271,453,043 
(1)Includes 15,321,535 Units issued as a result of the CarVal acquisition.
(2)During 20192022 and 2018,2021, we purchased 3,7822,500 and 5,3465,400 AB Units, respectively, in private transactions and retired them.
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21. Income Taxes
AB is a private partnership for federal income tax purposes and, accordingly, is not subject to federal or state corporate income taxes. However, AB is subject to a 4.0% New York City unincorporated business tax (“UBT”). Domestic corporate subsidiaries of AB, which are subject to federal, state and local income taxes, generally are included in the filing of a consolidated federal income tax return with separate state and local income tax returns being filed. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located.
In order to preserve AB’s status as a private partnership for federal income tax purposes, AB Units must not be considered publicly traded. The AB Partnership Agreement provides that all transfers of AB Units must be approved by EQH and the General Partner; EQH and the General Partner approve only those transfers permitted pursuant to one or more of the safe harbors contained in the relevant Treasury regulations. If AB Units were considered readily tradable, AB’s net income would be subject to federal and state corporate income tax, significantly reducing its quarterly distributions to AB Holding. Furthermore, should AB enter into a substantial new line of business, AB Holding, by virtue of its ownership of AB, would lose its status as a “grandfathered” publicly-tradedpublicly traded partnership and would become subject to corporate income tax, which would reduce materially AB Holding’s net income and its quarterly distributions to AB Holding Unitholders.

Earnings before income taxes and income tax expense consist of:
Years Ended December 31
202220212020
(in thousands)
Earnings before income taxes:
United States$689,278 $1,007,847 $743,687 
Foreign125,818 208,615 163,749 
Total$815,096 $1,216,462 $907,436 
Income tax expense:
Partnership UBT$5,996 $6,951 $3,356 
Corporate subsidiaries:
Federal1,457 750 1,495 
State and local931 956 904 
Foreign34,327 58,080 44,086 
Current tax expense42,711 66,737 49,841 
Deferred tax(3,072)(4,009)(4,188)
Income tax expense$39,639 $62,728 $45,653 
 Years Ended December 31,
 2019 2018 2017
 (in thousands)
Earnings before income taxes:     
United States$697,501
 $672,221
 $634,515
Foreign125,936
 153,093
 139,395
Total$823,437
 $825,314
 $773,910
Income tax expense:     
Partnership UBT$9,196
 $5,251
 $2,986
Corporate subsidiaries:     
Federal(943) (4,030) 18,079
State and local975
 2,888
 803
Foreign32,290
 36,529
 29,365
Current tax expense41,518
 40,638
 51,233
Deferred tax236
 5,178
 1,877
Income tax expense$41,754
 $45,816
 $53,110
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The principal reasons for the difference between the effective tax rates and the UBT statutory tax rate of 4.0% are as follows:
Years Ended December 31,Years Ended December 31
2019 2018 2017202220212020
(in thousands)(in thousands)
UBT statutory rate$32,937
 4.0 % $33,012
 4.0 % $30,956
 4.0 %UBT statutory rate$32,604 4.0 %$48,659 4.0 %$36,297 4.0 %
Corporate subsidiaries' federal, state, and local4,000
 0.5
 1,522
 0.2
 2,558
 0.3
Corporate subsidiaries' federal, state, and local1,460 0.2 1,322 0.2 2,025 0.2 
Foreign subsidiaries taxed at different rates26,719
 3.3
 30,689
 3.7
 25,406
 3.3
Foreign subsidiaries taxed at different rates32,664 4.0 43,019 3.5 33,969 3.7 
2017 Tax Act—
 —
 1,155
 0.1
 25,846
 3.3
FIN 48 reserve (release)2,765
 0.3
 (5,177) (0.6) (3,318) (0.4)FIN 48 reserve (release)— — — — (1,886)(0.2)
UBT business allocation percentage rate change(79) —
 2,657
 0.3
 —
 —
UBT business allocation percentage rate change(98)— 23 — 8 — 
Deferred tax and payable write-offs314
 —
 2,932
 0.4
 (9,542) (1.2)Deferred tax and payable write-offs1,089 0.1 1,003 0.1 (887)(0.1)
Foreign outside basis difference155
 —
 2,273
 0.3
 —
 —
Foreign outside basis difference(1,535)(0.2)1,492 0.1 3 — 
Amended 2017 return(3,853) (0.5) —
 —
 —
 —
Amended 2017 return— — — — (221)— 
Effect of ASC 740 adjustments, miscellaneous taxes, and other2,305
 0.3
 (2,521) (0.3) 1,903
 0.2
Effect of ASC 740 adjustments, miscellaneous taxes, and other5,366 0.7 1,799 0.1 2,654 0.3 
Tax CreditsTax Credits(5,275)(0.6)— — — — 
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge(23,509) (2.8) (20,726) (2.5) (20,699) (2.6)Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge(26,636)(3.3)(34,589)(2.8)(26,309)(2.9)
Income tax expense and effective tax rate$41,754
 5.1
 $45,816
 5.6
 $53,110
 6.9
Income tax expense and effective tax rate$39,639 4.9 %$62,728 5.2 %$45,653 5.0 %
We recognize the effects of a tax position in the financial statements only if, as of the reporting date, it is “more likely than not” to be sustained based on its technical merits and their applicability to the facts and circumstances of the tax position. In making this assessment, we assume that the taxing authority will examine the tax position and have full knowledge of all relevant information.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Years Ended December 31,Years Ended December 31
2019 2018 2017202220212020
(in thousands)(in thousands)
Balance as of beginning of period$3,893
 $8,478
 $12,596
Balance as of beginning of period$2,838 $2,838 $5,706 
Additions for prior year tax positions1,813
 —
 —
Additions for prior year tax positions— — — 
Reductions for prior year tax positions—
 —
 (1,849)Reductions for prior year tax positions— — — 
Additions for current year tax positions—
 —
 —
Additions for current year tax positions— — — 
Reductions for current year tax positions—
 —
 —
Reductions for current year tax positions— — — 
Reductions related to closed years/settlements with tax authorities—
 (4,585) (2,269)Reductions related to closed years/settlements with tax authorities— — (2,868)
Balance as of end of period$5,706
 $3,893
 $8,478
Balance as of end of period$2,838 $2,838 $2,838 
The amount of unrecognized tax benefits as of December 31, 2019, 20182022, 2021, and 2017,2020, when recognized, is recorded as a reduction to income tax expense and reduces the company’s effective tax rate.
Interest and penalties, if any, relating to tax positions are recorded in income tax expense on the consolidated statements of income. There was no interest expense recorded in 2022 or 2021. The total amount of interest expense recorded in income tax expense (credit) during 2019, 20182020 was $(0.4) million. As of December 31, 2022 and 2017 was $0.7 million, $0.1 million and $0.3 million, respectively. The total amount of2021, there is no accrued interest recorded on the consolidated statements of financial condition as of December 31, 2019, 2018 and 2017 was $1.1 million, $0.3 million and $0.7 million, respectively.condition. There were $0.2 million of penalties accrued as of December 31, 2019. There were no accrued penalties as of December 31, 2018 or 2017.2022, 2021 and 2020.
Generally, the company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for any year prior to 2015,2018, except as set forth below.
During the thirdfourth quarter of 2018,2020, the City of New York notified us of an examination of AB's UBT returns for the years 20132017 through 2016.2019. The examination is ongoing.ongoing and no provision with respect to this examination has been recorded.
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Currently, there are no income tax examinations at our significant non-U.S. subsidiaries. Years that remain open and may be subject to examination vary under local law and range from one to seven years.
AtAs of December 31, 2019,2022, it is reasonably possible that $4.2$2.8 million of our unrecognized tax benefits will change within the next twelve12 months due to completionthe expiration of tax authority exams.

the statute of limitations.
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effect of significant items comprising the net deferred tax asset (liability) is as follows:
December 31,Years Ended December 31
2019 201820222021
(in thousands)(in thousands)
Deferred tax asset:   Deferred tax asset:
Differences between book and tax basis:   Differences between book and tax basis:
Benefits from net operating loss carryforwards$5,551
 $2,518
Benefits from net operating loss carryforwards$4,918 $7,833 
Long-term incentive compensation plans20,907
 22,342
Long-term incentive compensation plans17,524 24,468 
Investment basis differences4,376
 3,606
Investment basis differences10,286 5,523 
Depreciation and amortization1,554
 1,248
Depreciation and amortization3,071 3,942 
Lease liability6,409
 —
Lease liability4,911 5,327 
Investment in foreign subsidiariesInvestment in foreign subsidiaries26,479 — 
Tax credit carryforwardTax credit carryforward6,171 — 
Other, primarily accrued expenses deductible when paid3,106
 3,903
Other, primarily accrued expenses deductible when paid6,860 4,917 
41,903
 33,617
80,220 52,010 
Less: valuation allowance(2,026) (490)Less: valuation allowance(38,110)(3,828)
Deferred tax asset39,877
 33,127
Deferred tax asset42,110 48,182 
Deferred tax liability: 
  
Deferred tax liability:  
Differences between book and tax basis: 
  
Differences between book and tax basis:  
Intangible assets8,013
 6,852
Intangible assets10,190 7,622 
Investment in foreign subsidiaries2,191
 1,653
Investment in foreign subsidiaries— 4,084 
Right-of-use asset5,191
 —
Right-of-use asset4,191 4,490 
Other1,672
 1,758
Other2,808 2,075 
Deferred tax liability17,067
 10,263
Deferred tax liability17,189 18,271 
Net deferred tax asset$22,810
 $22,864
Net deferred tax asset$24,921 $29,911 
Valuation allowancesThe valuation allowance of $2.0$38.1 million and $0.5 million werewas established as of December 31, 2019 and 2018, respectively,2022 primarily due to significant negative evidence that capital losses anticipated in the held for sale foreign subsidiaries will not be utilized, given the nature of income expected to be incurred by the applicable subsidiaries. The valuation allowance of $3.8 million was established as of December 31, 2021 primarily due to significant negative evidence that net operating loss ("NOL") carryforwards will not be utilized, given the future losses expected to be incurred by the applicable subsidiaries. We had NOL carryforwards at December 31, 20192022 and 20182021 of approximately $46.2$30.3 million and $32.4$55.1 million, respectively. The majority of ourrespectively, in certain foreign NOL carryforwards have an indefinitelocations with a five-year expiration period.
The deferred tax asset is included in other assets in our consolidated statement of financial condition. Management believes there will be sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets recognized that are not subject to valuation allowances.
The company provides income taxes on the unremitted earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are indefinitely reinvested outside the United States. As of December 31, 2019,2022, $29.6 million of undistributed earnings of non-U.S. corporate subsidiaries were indefinitely invested outside the U.S. At existing applicable income tax rates, additional taxes of approximately $6.2 million would need to be paid if such earnings are remitted.

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22. Business Segment Information
Management has assessed the requirements of ASC 280, Segment Reporting, and determined that, because we utilize a consolidated approach to assess performance and allocate resources, we have only one operating segment. Enterprise-wide disclosures as of and for the years ended December 31, 2019, 20182022, 2021 and 20172020 were as follows:
Services
Net revenues derived from our investment management, research and related services were as follows:
Years Ended December 31
202220212020
(in thousands)
Institutions$659,983 $587,017 $512,914 
Retail2,000,908 2,223,829 1,811,948 
Private Wealth Management1,004,003 1,126,142 882,672 
Bernstein Research Services416,273 452,017 459,744 
Other39,561 56,283 56,908 
Total revenues4,120,728 4,445,288 3,724,186 
Less: Interest expense66,438 3,686 15,650 
Net revenues$4,054,290 $4,441,602 $3,708,536 
 Years Ended December 31,
 2019 2018 2017
 (in thousands)
Institutions$480,144
 $479,068
 $477,140
Retail1,619,832
 1,494,445
 1,423,890
Private Wealth Management904,505
 883,234
 787,362
Bernstein Research Services407,911
 439,432
 449,919
Other163,245
 123,581
 185,375
Total revenues3,575,637
 3,419,760
 3,323,686
Less: Interest expense57,205
 52,399
 25,165
Net revenues$3,518,432
 $3,367,361
 $3,298,521
Our AllianceBernstein Global High Yield Portfolio, an open-endNo individual fund incorporated in Luxembourg (ACATEUH: LX), generated approximately 9%,accounted for more than 10% and 11% of our investment advisory and service fees and 9%, 10% and 12% of our net revenues during 2019, 20182022, 2021 and 2017, respectively.2020.
Geographic Information
Net revenues and long-lived assets, related to our U.S. and international operations, as of and for the years ended December 31, were as follows:
202220212020
(in thousands)
Net revenues:
United States$2,381,958 $2,558,592 $2,106,636 
International1,672,332 1,883,010 1,601,900 
Total (1)
$4,054,290 $4,441,602 $3,708,536 
Long-lived assets:   
United States$4,067,991 $3,331,572 
International72,466 45,796 
Total$4,140,457 $3,377,368 
 2019 2018 2017
 (in thousands)
Net revenues:     
United States$1,975,105
 $1,940,267
 $1,958,844
International1,543,327
 1,427,094
 1,339,677
Total$3,518,432
 $3,367,361
 $3,298,521
Long-lived assets: 
  
  
United States$3,259,490
 $3,262,722
  
International54,349
 56,069
  
Total$3,313,839
 $3,318,791
  
(1)We have recast prior period presentation of geographic revenues to align with current period presentation by legal entity domicile as compared to historical presentation method by client domicile.
Major Customers
Company-sponsored mutual funds are distributed to individual investors through broker-dealers, insurance sales representatives, banks, registered investment advisers, financial planners and other financial intermediaries. HSBC (not affiliated with AB) was responsible for approximately 14%, 7% and 9% of our open-end mutual fund sales in 2019, 2018 and 2017, respectively. HSBC is not under any obligation to sell a specific amount of AB Fund shares.
EQH and the general and separate accounts of Equitable Life (including investments by the separate accounts of Equitable Life in the funding vehicle EQ Advisors Trust) accounted for approximately 3% of our total revenues for each of the years ended December 31, 2019, 2018 and 2017. AXA and its subsidiaries accounted for approximately 2% of our total revenues for each of the years ended December 31, 2019, 2018 and 2017. No single institutionalcustomer or individual client other than EQH, AXA and their respective subsidiaries accounted for more than 1%10% of our total revenues for the years ended December 31, 2019, 20182022, 2021 and 2017.2020.

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23. Related Party Transactions
Mutual Funds
We provide investment management, distribution, shareholder, administrative and brokerage services to individual investors by means of retail mutual funds sponsored by our company, our subsidiaries and our affiliated joint venture companies. We provide substantially all of these services under contracts that specify the services to be provided and the fees to be charged. The contracts are subject to annual review and approval by each mutual fund’s board of directors or trustees and, in certain circumstances, by the mutual fund’s shareholders.
Revenues for services provided or related to the mutual funds are as follows:
Years Ended December 31,Years Ended December 31
2019 2018 2017202220212020
(in thousands)(in thousands)
Investment advisory and services fees$1,275,677
 $1,207,086
 $1,148,467
Investment advisory and services fees$1,452,885 $1,644,757 $1,368,484 
Distribution revenues441,437
 403,965
 397,674
Distribution revenues590,580 637,076 516,336 
Shareholder servicing fees75,122
 74,019
 73,310
Shareholder servicing fees79,167 85,745 79,394 
Other revenues7,303
 7,262
 6,942
Other revenues8,366 8,364 8,314 
Bernstein Research Services2
 33
 13
Bernstein Research Services— 2 3 
$2,130,998 $2,375,944 $1,972,531 
EQH AXA and their respectiveits Subsidiaries
We provide investment management and certain administration services to EQH AXA and their respectiveits subsidiaries. In addition, EQH AXA and their respectiveits subsidiaries distribute company-sponsored mutual funds, for which they receive commissions and distribution payments. Also, we are covered by various insurance policies maintained by EQH AXA and their respective subsidiaries and we pay fees for technology and other services provided by EQH AXA and their respectiveits subsidiaries. Additionally, see Note 12, Debt, for disclosures related to our credit facility with EQH.


Aggregate amounts included in the consolidated financial statements for transactions with EQH AXA and their respectiveits subsidiaries, as of and for the years ended December 31, are as follows:
EQH
202220212020
(in thousands)
Revenues:
Investment advisory and services fees$148,377 $133,074 $115,901 
Other revenues688 675 1,330 
$149,065 $133,749 $117,231 
Expenses:   
Commissions and distribution payments to financial intermediaries$3,897 $4,550 $3,952 
General and administrative2,882 2,373 2,281 
Other14,069 3,953 5,463 
$20,848 $10,876 $11,696 
Balance Sheet:  
Institutional investment advisory and services fees receivable$7,732 $8,607 
Prepaid expenses385 545 
Other due to EQH and its subsidiaries(4,206)(1,534)
EQH Facility(990,000)(755,000)
$(986,089)$(747,382)
 EQH AXA
 2019 2018 2017 2019 2018 2017
 (in thousands)
Revenues:           
Investment advisory and services fees$109,316
 $104,810
 $98,450
 $65,086
 $64,347
 $58,980
Bernstein Research Services—
 —
 —
 45
 134
 403
Distribution revenues—
 —
 —
 12,968
 13,897
 13,387
Other revenues1,013
 1,104
 864
 482
 625
 266
 $110,329
 $105,914
 $99,314
 $78,581
 $79,003
 $73,036
Expenses: 
  
  
      
Commissions and distribution payments to financial intermediaries$3,956
 $3,964
 $3,828
 $16,693
 $17,603
 $15,374
General and administrative2,466
 2,615
 2,610
 11,501
 12,391
 9,818
Other2,759
 1,485
 1,696
 —
 —
 —
 $9,181
 $8,064
 $8,134
 $28,194
 $29,994
 $25,192
Balance Sheet: 
  
        
Institutional investment advisory and services fees receivable$8,716
 $9,751
   $10,842
 $7,861
  
Prepaid expenses238
 364
   —
 —
  
Other due to EQH, AXA and their respective subsidiaries(2,111) (1,842)   (5,234) (5,417)  
EQH Facility(560,000) —
   —
 —
  
 $(553,157) $8,273
   $5,608
 $2,444
  
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Other Related Parties
The consolidated statements of financial condition include a net receivable from AB Holding as a result of cash transactions for fees and expense reimbursements. The net receivable balance included in the consolidated statements of financial condition as of December 31, 20192022 and 20182021 was $10.1$7.7 million and $11.4$11.2 million, respectively.
24. Acquisitions and Divestitures
Acquisitions
Acquisitions are accounted for under ASC 805, Business Combinations.
On AprilJuly 1, 2019, we2022, AB Holding acquired a 100% ownership interest in Autonomous, an institutional research firm. CarVal, a global private alternatives investment manager primarily focused on opportunistic and distressed credit, renewable energy, infrastructure, specialty finance and transportation investments that, as of the acquisition date, constituted approximately $12.2 billion in AUM. Also, on July 1, 2022, immediately following the acquisition of CarVal, AB Holding contributed 100% of its equity interests in CarVal to AB in exchange for AB Units. Post-acquisition, CarVal was rebranded AB CarVal Investors (“AB CarVal”).
On the acquisition date, we madeAB Holding issued approximately 3.2 million AB Holding Units (with a cash paymentfair value of $6.5$132.8 million) with the remaining 12.1 million Units (with a fair value of $456.4 million) issued on November 1, 2022. The fair value of the units issued on November 1, 2022 reflect final adjustments to the estimated unit issuance recorded as of acquisition close on July 1, 2022 and as disclosed in the third quarter 2022 Form 10-Q.
AB received a 100% equity interest in CarVal from AB Holding and issued approximately 15.3 million AB Units (with a fair value of $589.2 million). AB also recorded a contingent consideration payable of $17.4$228.9 million (to be paid predominantly in AB Units) based on projected fee revenuesAB CarVal achieving certain performance objectives over a five-year measurement period.six-year period ending December 31, 2027. The AB Units, as discussed above, were issued to AB Holding; AB Holding then issued the equal amount of AB Holding Units to CarVal. The excess of the purchase price over the current fair value of identifiable net assetsliabilities acquired of $5.6$156.1 million (net of cash acquired of $40.8 million), and the recording of a net deferred tax asset of $5.1 million resulted in the recognition of $10.2$666.1 million of goodwill and $8.1the recording of $303.0 million of finite-lived intangible assets primarily relating to customerinvestment management contracts and investor relationships with useful lives ranging from 5 to 10 years. The goodwill recorded is not deductible for tax purposes as the CarVal acquisition was an investment in a partnership.
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The following table summarizes the amounts of identified assets acquired and trademarks. Also, in accordance with US GAAP, additional cash payments and contingent consideration payable to the owners of Autonomous onliabilities assumed at the acquisition date are considered compensation expense(reflecting acquisition adjustments recorded in the fourth quarter of 2022), as well as the consideration transferred to be amortized over two-year and five-year periods, respectively, not purchase price consideration, due to service conditions at the time of acquisition. acquire CarVal (in thousands):
Summary of purchase consideration:
Fair value of AB Holding units issued$589,169 
Fair value of contingent consideration228,885 
Total purchase consideration$818,054
Purchase price allocation:
Assets acquired:
Cash and cash equivalents$40,777 
Receivables, net82,523 
Investments - other947 
Furniture, equipment, and leasehold improvements, net2,464 
Right-of-use assets16,482 
Other assets10,600 
Deferred tax asset5,073 
Intangible assets303,000 
 Goodwill666,130 
Total assets acquired1,127,996 
Liabilities assumed:
Accounts payable and accrued expenses(17,793)
Accrued compensation and benefits(219,726)
Debt(42,661)
Lease liabilities(16,571)
Non-redeemable non-controlling interests in consolidated entities(13,191)
Total liabilities assumed(309,942)
Net assets acquired$818,054
The AutonomousCarVal acquisition did not have a materialsignificant impact on our financial condition or results of operations.2022 revenues and earnings. As a result, we have not provided supplemental pro forma financial information.

Divestitures

25. Non-controlling Interests
Non-controllingOn November 22, 2022, AB and SocGen, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. The consummation of the joint venture is subject to customary closing conditions, including regulatory clearances. The closing is expected to occur before the end of 2023. Upon closing, AB will own a 49% interest in net income for the years ended December 31, 2019, 2018joint venture and 2017 consisted of the following:
 2019 2018 2017
 (in thousands)
      
Non-redeemable non-controlling interests:     
    Consolidated company-sponsored investment funds$—
 $(119) $9,353
    Other92
 188
 279
Total non-redeemable non-controlling interest92
 69
 9,632
Redeemable non-controlling interests:     
    Consolidated company-sponsored investment funds29,549
 21,841
 48,765
Total non-controlling interest in net income (loss)$29,641
 $21,910
 $58,397

On June 20, 2014, we acquired an 81.7% ownershipSocGen will own a 51% interest in CPH Capital Fondsmaeglerselskab A/Sthe joint venture, with an option to reach 100% ownership after five years. The assets and liabilities of AB's research services business (“CPHthe disposal group”), a Danish asset management firm that manages global core equity assets have been classified as held for institutional investors. sale on the consolidated statement of financial condition and recorded at fair value, less cost to sell.As a result of additional share purchases made in each year since 2015,classifying these assets as held for sale, we haverecognized a 100% ownership interest in CPHnon-cash valuation adjustment of $7.4 million on the consolidated statement of income, to recognize the net carrying value at lower of cost or fair value, less estimated costs to sell.
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The following table summarizes the assets and liabilities of the disposal group classified as held for sale on the consolidated statement of financial condition as of December 31, 2019.

Non-redeemable non-controlling interest as of December 31, 2019 and 2018 consisted of the following:
 2019 2018
 (in thousands)
    
Consolidated company-sponsored investment funds$—
 $—
CPH—
 949
Total non-redeemable non-controlling interest$—
 $949

Redeemable non-controlling interest as of December 31, 2019 and 2018 consisted of the following:
 2019 2018
 (in thousands)
    
Consolidated company-sponsored investment funds$325,561
 $145,921
CPH—
 2,888
Total redeemable non-controlling interest$325,561
 $148,809


26. Quarterly Financial Data (Unaudited)
 Quarters Ended 2019
 December 31 September 30 June 30 March 31
 (in thousands, except per unit amounts)
Net revenues$987,304
 $877,867
 $857,799
 $795,462
Net income attributable to AB Unitholders$248,865
 $187,811
 $166,252
 $149,114
Basic net income per AB Unit(1)
$0.92
 $0.69
 $0.61
 $0.55
Diluted net income per AB Unit(1)
$0.92
 $0.69
 $0.61
 $0.55
Cash distributions per AB Unit(2)(3)
$0.93
 $0.70
 $0.63
 $0.56
 Quarters Ended 2018
 December 31 September 30 June 30 March 31
 (in thousands, except per unit amounts)
Net revenues$804,660
 $850,176
 $844,738
 $867,787
Net income attributable to AB Unitholders$188,053
 $203,674
 $181,665
 $184,196
Basic net income per AB Unit(1)
$0.70
 $0.75
 $0.66
 $0.68
Diluted net income per AB Unit(1)
$0.70
 $0.75
 $0.66
 $0.68
Cash distributions per AB Unit(2)(3)
$0.71
 $0.76
 $0.69
 $0.80
2022:
Cash and cash equivalents$159,123 
Receivables, net:
Brokers and dealers44,717 
Brokerage clients29,243 
Other fees22,988 
Investments24,507 
Furniture and equipment, net4,128 
Other assets107,764 
Right-of-use assets1,552 
Intangible assets4,903 
Goodwill159,826 
Valuation adjustment (allowance) on disposal group(7,400)
Total assets held for sale$551,351
(1)Payables:
Basic and diluted net income per unit are computed independently for each of the periods presented. Accordingly, the sum of the quarterly net income per unit amounts may not agree to the total for the year.
(2)Brokers and dealers
Declared and paid during the following quarter.$
32,983 
(3)Brokerage clients
Cash distributions reflect the impact of our non-GAAP adjustments.10,232 
Other liabilities50,884 
Accrued compensation and benefits13,853 
Total liabilities held for sale$107,952


As of December 31, 2022, cash and cash equivalents classified as held for sale included in the consolidated statement of cash flows was $159.1 million.
We have determined that the exit from the sell-side research business does not represent a strategic shift that had a major effect on our consolidated results of operations. Accordingly, we have not classified the disposal group as discontinued operations. The results of operations of the disposal group up to the respective dates of sale will be included in our consolidated results of operations for all periods presented. The lower of amortized cost or fair value adjustment upon transferring these assets to held for sale was not material.
Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Neither AB nor AB Holding had any changes in or disagreements with accountants in respect of accounting or financial disclosure.

Item 9A.Controls and Procedures

Disclosure Controls and Procedures

Each of AB Holding and AB maintains a system of disclosure controls and procedures that is designed to ensure that information required to be disclosed in our reports under the Exchange Act is (i) recorded, processed, summarized and reported in a timely manner, and (ii) accumulated and communicated to management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), to permit timely decisions regarding our disclosure.

As of the end of the period covered by this report, management carried out an evaluation, under the supervision and with the participation of the CEO and the CFO, of the effectiveness of the design and operation of disclosure controls and procedures. Based on this evaluation, the CEO and the CFO concluded that the disclosure controls and procedures are effective.

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Management’s Report on Internal Control Over Financial Reporting

Management acknowledges its responsibility for establishing and maintaining adequate internal control over financial reporting for each of AB Holding and AB.

Internal control over financial reporting is a process designed by, or under the supervision of, a company’s CEO and CFO, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America (“(“US GAAP”GAAP”) and includes those policies and procedures that:

•Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

•Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP and receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

•Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those internal control systems determined to be effective can provide only reasonable assurance with respect to the reliability of financial statement preparation and presentation. Because of these inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness of internal control to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
On July 1, 2022, AllianceBernstein L.P. completed its acquisition of CarVal Investors L.P. (“CarVal”). Consistent with guidance issued by the Securities and Exchange Commission that an assessment of a recently acquired business may be omitted from management’s report on internal control over financial reporting in the year of acquisition, management excluded an assessment of the effectiveness of the Company’s internal control over financial reporting related to CarVal. Total assets and total revenues of CarVal that were excluded from management’s assessment each constitute approximately 2% for the year ended December 31, 2022.

Management assessed the effectiveness of AB Holding’s and AB’s internal control over financial reporting as of December 31, 2019.2022. In making its assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework(2013) (“(the “COSO criteriacriteria””).

Based on its assessment, management concluded that, as of December 31, 2019,2022, each of AB Holding and AB maintained effective internal control over financial reporting based on the COSO criteria.

PricewaterhouseCoopers LLP (PCAOB ID No. 238), the independent registered public accounting firm that audited the 20192022 financial statements included in this Form 10-K, has issued an attestation report on the effectiveness of each of AB Holding’s and AB’s internal control over financial reporting as of December 31, 2019. These2022. The reports pertaining to AB Holding and AB each can be found in Item 8. of this Form 10-K.

Changes in Internal Control Over Financial Reporting

No changes in our internal control over financial reporting occurred during the fourth quarter of 20192022 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B.Other Information
Both AB and AB Holding reported all information required to be disclosed on Form 8-K during the fourth quarter of 2019.2022.


Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.
PART III

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Item 10. 10. Directors, Executive Officers and Corporate Governance

We use ““Internet SiteSite”” in Items 10 and 11 to refer to our company’s internet site,public website, www.alliancebernstein.com.

To contact our company’s Corporate Secretary, you may send an email to corporate_secretary@alliancebernstein.com or write to Corporate Secretary, AllianceBernstein L.P., 1345 Avenue of the Americas, New York, New York 10105.

General Partner

The Partnerships’ activities are managed and controlled by the General Partner. The Board of the General Partner acts as the Board of each of the Partnerships. Neither AB Unitholders nor AB Holding Unitholders have any rights to manage or control the Partnerships or to elect directors of the General Partner. The General Partner is a wholly-ownedwholly owned subsidiary of EQH.

The General Partner does not receive any compensation from the Partnerships for services rendered to them as their general partner. The General Partner holds a 1% general partnership interest in AB and 100,000 units of general partnership interest in AB Holding. Each general partnership unit in AB Holding is entitled to receive distributions equal to those received by each AB Holding Unit.

 Similarly, the 1% general partnership interest in AB is entitled to receive distributions equal to those received by each AB Unit.
The General Partner is entitled to reimbursement by AB for any expenses it incurs in carrying out its activities as general partner of the Partnerships, including compensation paid by the General Partner to its directors and officers (to the extent such persons are not compensated directly by AB).

Board of Directors

Our Board currently consists of 11 directors, including seven independent directors (including our ChairmanChair of the Board), our President and CEO, and three senior executives of EQH. While we do not have a formal, written diversity policy in place, we believe that an effective board consists of a diverse group of individuals who collectively possess a variety of complementary skills, personal experiences and perspectives and who will work together to provide a board with the needed leadership and experience to successfully guide our company. As set forth in its charter, the Corporate Governance Committee of the Board (“(the “Governance CommitteeCommittee””) assists the Board in identifying and evaluating such candidates, determining Board composition, developing and monitoring a process to assess Board effectiveness, developing and implementing corporate governance guidelines, and reviewing programs relating to matters of corporate responsibility.

As we indicate below, our directors have a combined wealth of leadership experience derived from extensive service leading large, complex organizations in their roles as either senior executives or board members, as well as in government and academia. Each of our directors has the integrity, business judgment, collegiality and commitment that are among the essential characteristics for a member of our Board. Collectively, they have substantive knowledge and skills applicable to our business, including expertise in areas such as asset management; regulation; public accounting and financial reporting; finance; risk management; business development; operations; information technology;technology and security; strategic planning; management development, succession planning and compensation; corporate governance; public policy; and international matters.

As
2022 Annual Report129
Table of February 12, 2020, our directors are as follows:

Ramon de Oliveira
Mr. de Oliveira, age 65, was appointed a director of AB in April 2017 and, since April 1, 2019, has served as Chairman of the Board of AB. Since March 2019, he has served as Chairman of the Board of EQH, Equitable Life and Equitable America. Mr. de Oliveira served as director of EQH from April 2018 until being appointed Chairman in 2019 and, similarly, served as director of each of Equitable Life and Equitable America until being appointed Chairman. He has been a director of AXA since 2010. Additionally, he serves as Managing Partner of the consulting firm Investment Audit Practice, LLC. Previously, Mr. de Oliveira held several executive positions at J.P. Morgan & Co. over the course of a 24-year tenure, including five years as chairman and Chief Executive Officer of J.P. Morgan Investment Management. He was also a member of J.P. Morgan’s Management Committee from its inception in 1995.

Mr. de Oliveira brings to the Board the extensive buy-side and sell-side financial services experience, key leadership skills and sharp analytical skills he has developed through his executive leadership roles at JPMorgan Chase and Investment Audit Practice.



Seth P. Bernstein
Mr. Bernstein, age 58, was appointed President and Chief Executive Officer in April 2017 and began serving in this role on May 1, 2017. Prior to his appointment, he had a distinguished 32 year career at JPMorgan Chase, most recently as managing director and global head of Managed Solutions and Strategy at J.P. Morgan Asset Management. In this role, Mr. Bernstein was responsible for the management of all discretionary assets within the Private Banking client segment. Among other roles, he served as managing director and global head of Fixed Income and Currency for 10 years, concluding in 2012. Prior to that, Mr. Bernstein held the position of Chief Financial Officer at JPMorgan Chase’s Investment Management and Private Banking division. Mr. Bernstein is a member of the Management Committee of EQH and the Board of Managers of Haverford College, Pennsylvania.

Mr. Bernstein brings to the Board the diverse financial services experience he developed through his extensive service at JPMorgan Chase.
Paul L. Audet
Mr. Audet, age 66, was appointed a director of AB in November 2017. He is the Co-Founder and Managing Member of Symmetrical Ventures LLC, a venture capital firm organized in 2015 and specializing in capital investments in start-ups and development stage companies. The firm evaluates investment opportunities in enterprises that aim to transform traditional business models through disruptive technologies. Previously, Mr. Audet served as a senior managing director at BlackRock, retiring in 2014 after a 35-year career in the financial services industry. During his BlackRock tenure, he held a number of executive leadership roles, including Chief Financial Officer for nine years and head of the company’s U.S. active mutual funds, global real estate and global cash-management businesses. Mr. Audet’s affiliation with BlackRock started in 1994 when, as director of mergers and acquisitions for PNC Financial Services, he led the acquisition of BlackRock. He began his professional career in 1977 at PricewaterhouseCoopers and worked at PaineWebber and First Fidelity Bancorporation before moving on to BlackRock and PNC.

Mr. Audet brings to the Board the extensive financial services experience he has developed through his executive leadership roles at BlackRock.
Nella L. Domenici
Ms. Domenici, age 59, was appointed a director of AB in January 2020. Most recently, she served as Chief Financial Officer and member of the Operating Committee at Bridgewater Associates (“Bridgewater”), a hedge fund with more than $160 billion in AUM, from 2015 to 2018. In this role, Ms. Domenici was responsible for, among other things, financial planning and analysis, revenue management, corporate finance, strategic initiatives and technology investment. From 2012 to 2015, Ms. Domenici was a strategic advisor to Bridgewater’s Management Committee, in which role she led the evolution of the firm’s senior leadership organization structure. Prior thereto, Ms. Domenici held various senior strategic positions with Citadel Investment Group, from 2004 to 2005, Credit Suisse, from 1998 to 2004, and The Monitor Consulting Group, from 1996 to 1998. In addition, she is a proven entrepreneur, having founded a successful consulting firm that advises many family-owned, private equity, venture-backed and real estate companies.Contents

Part III
Ms. Domenici serves on the
Board Committees
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Executive
Committee		Audit and Risk
Committee		Corporate Governance
Committee		Compensation and
Workplace Practices
Committee
Joan Lamm-Tennant
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Seth BernsteinMM
Nella DomeniciM
Jeffrey Hurd
Daniel KayeM
Nick Lane
Kristi Matus
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Das NarayandasM
Mark PearsonMMM
Charles Stonehill
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Todd WalthallM
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Chairperson
MMember
Board Diversity Matrix
FemaleMaleNon-BinaryDid Not Disclose Gender
Gender Diversity
Directors38— — 
Racial/Ethnic/Nationality/Other Forms of Diversity
African American/Black— 1— — 
Alaskan Native/Native American— — — — 
Asian/South Asian— 1— — 
Hispanic/Latinx— — — — 
Native Hawaiian/Pacific Islander— — — — 
White/Caucasian36— — 
LGBTQ+— — — — 
Directors Born Outside of the US— 1— — 
Did Not Disclose Demographics— — — — 
130AllianceBernstein
Table of Regis High School and is the founder of Excellent Schools of New Mexico, a non-profit that supports charter schools in underserved communities. She also serves on the Board of One World Surgery, which provides access to quality surgical care globally and has been involved in major national efforts to support research and legislation related to mental illness. Additionally, Ms. Domenici serves on the Board of International Folk Art Market, which focuses on economic opportunities for folk artists worldwide, particularly women in developing countries.

Ms. Domenici brings to the Board her seasoned business acumen and her extensive global experience in strategic financial management, corporate strategy and operations.
Jeffrey J. Hurd
Mr. Hurd, age 53, was appointed a director of AB in April 2019. He has served as Senior Executive Vice President and Chief Operating Officer of EQH, and as a member of the EQH Management Committee, since May 2018. In this role, Mr. Hurd has strategic oversight for EQH's Human Resources, Information Technology and Communications departments. He also is responsible for EQH's Transformation Office, which encompasses key functional areas, including operations, data and analytics, procurement and corporate real estate. Mr. Hurd also has served as Senior Executive Director and Chief Operating Officer of Equitable Life since January 2018.

Prior to joining Equitable Life, Mr. Hurd served as Executive Vice President and Chief Operating Officer at American International Group, Inc. ("AIG"), where he amassed deep financial services industry experience during his 20-year tenure. While at AIG, Mr. Hurd served as as Chief Human Resources Officer, Chief Administrative Officer, Deputy General Counsel and Head of Asset Management Restructuring.Contents

Part III

Board of Directors
Mr. Hurd brings to the Board his extensive experience in financial services and strategic insights as a senior executive at EQH and, formerly, at AIG.

Daniel G. Kaye
Mr. Kaye, age 65, was appointed a director of AB in April 2017. He has been a director of EQH since May 2018 and a director of Equitable Life and Equitable America since September 2015. Also, since May 2019, Mr. Kaye has been is a director of CME Group, Inc., where he serves as a member of the Audit Committee. From January 2013 to May 2014, Mr. Kaye served as interim Chief Financial Officer and Treasurer of HealthEast Care System. He held this post after retiring in 2012 from a 35-year career at Ernst & Young LLP, including 25 years as an audit partner. During his tenure at EY, Mr. Kaye served as the New England Area Managing Partner and the Midwest Area Managing Partner of Assurance. Mr. Kaye is a Certified Public Accountant and a National Association of Corporate Directors Board Leadership Fellow.

Mr. Kaye brings to the Board the extensive financial expertise he developed through his career at EY and his directorships at EQH and certain of its subsidiaries.
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Joan Lamm-Tennant
Chair of the Board, Equitable Holdings
Committees:
Executive (Chair)
Age: 70
Director Since: 2021
Seth Bernstein
President and Chief Executive Officer, AllianceBernstein
Committees:
Executive
Governance
Age: 61
Director Since: 2017
Nella Domenici
C-Suite executive, board member and philanthropist
Committees:
Audit
Age: 62
Director Since: 2020
Jeffrey Hurd
Chief Operating Officer, Equitable Holdings
Committees:
None
Age: 56
Director Since: 2019
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Daniel Kaye
Director, CME Group (NASDAQ: CME), and Equitable Holdings
Committees:
Compensation
Age: 68
Director Since: 2017
Nick Lane
President, Equitable Financial Life Insurance Company
Committees:
None
Age: 49
Director Since: 2019
Kristi Matus
Director, Cerence (NASDAQ: CRNC), and Equitable Holdings
Committees:
Governance (Chair)
Compensation (Chair)
Age: 55
Director Since: 2019
Das Narayandas
Edsel Bryant Ford Professor of Business Administration, Harvard Business School
Committees:
Governance
Age: 62
Director Since: 2017
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Mark Pearson
President and Chief Executive Officer, Equitable Holdings
Committees:
Executive
Governance
Compensation
Age: 64
Director Since: 2011
Charles Stonehill
Founding Partner, Green & Blue Advisors; Director, Equitable Holdings
Committees:
Audit (Chair)
Age: 64
Director Since: 2019
Todd Walthall
Chief Executive for Optum Insight (Payer Market), UnitedHealth Group
Committees:
Audit
Age: 52
Director Since: 2021
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As of February 10, 2023, our directors are as follows:
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Background
•Ms. Lamm-Tennant was appointed Chair of AB in October 2021.
•She has served as Chair of the Board of EQH, Equitable Financial and Equitable America since October 2021, after having joined these boards in January 2020.
•She also serves on the Executive Committee, the Audit Committee, and the Finance and Risk Committee of EQH.
•Ms. Lamm-Tennant founded Blue Marble Microinsurance and served as its CEO from 2015 to 2020.
•She currently is executive advisor of Brewer Lane Ventures, having joined in 2021; she also serves on the boards of Ambac Financial Group and Element Fleet Financial Corp.
•Previously, Ms. Lamm-Tennant was Adjunct Professor, International Business at The Wharton School of the University of Pennsylvania from 2005 to 2016. Prior to or concurrently with her service at The Wharton School, Ms. Lamm-Tennant held various senior positions in the insurance industry, including with Marsh & McLennan Companies, Guy Carpenter and General Reinsurance Corporation.
Director Qualifications
Ms. Lamm-Tennant brings to the Board significant industry and academic experience, having held global business leadership roles and developed a distinguished career as a professor of finance and economics.
Joan Lamm-Tennant
Committees: Executive (Chair)
Age: 70
Director Since: 2021
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Background
•Mr. Lane, age 46,Bernstein was appointed President and Chief Executive Officer in April 2017 and began serving in this role on May 1, 2017.
•He has served as Senior Executive Vice President and Head of Investment Management and Research of EQH since April 2018.
•Previously, Mr. Bernstein had a distinguished 32-year career at JPMorgan Chase, most recently as Managing Director and Global Head of Managed Solutions and Strategy at J.P. Morgan Asset Management. In this role, Mr. Bernstein was responsible for the management of all discretionary assets within the Private Banking client segment.
•Among other roles, he served as Managing Director and Global Head of Fixed Income and Currency for 10 years, concluding in 2012.
•Mr. Bernstein held the position of Chief Financial Officer at JPMorgan Chase’s Investment Management and Private Banking division.
•Mr. Bernstein is a member of the Management Committee of EQH and the Investment Committee of the Board of Managers of Haverford College, Pennsylvania.
Director Qualifications
Mr. Bernstein brings to the Board the diverse financial services experience he developed through his extensive service at JPMorgan Chase and more recent career at AB.
Seth Bernstein
Committees: Executive, Governance
Age: 61
Director Since: 2017
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Background
•Ms. Domenici was appointed a director of AB in January 2020.
•During 2020 and 2021, she served as Chief Financial Officer and member of the Executive Committee at Dataminr, a leading high-growth AI company that is late-stage venture backed. In her senior executive role, Ms. Domenici was responsible for various strategic, operational and administrative functions.
•From 2015 to 2018, she served as Chief Financial Officer and member of the Operating Committee at Bridgewater Associates, a premier asset management firm.
•Prior thereto, she held various senior managerial, investment banking and strategic positions with firms including Citadel Investment Group, Credit Suisse and The Monitor Consulting Group. In addition, she is a proven entrepreneur, having founded a successful financial consulting firm that advised many family-owned, private equity, venture-backed and real estate companies.
•Ms. Domenici is a dedicated advocate and champion in the areas of education, healthcare and economic development. She co-founded the Excellent Schools of New Mexico, a leading non-profit organization that supports charter schools in underserved communities, and she serves on the board of Regis High School in New York City.
•She also serves on the advisory board of the International Folk-Art Market, which generates economic opportunities for folk artists worldwide, particularly women in developing countries.
•Ms. Domenici is a former member of the Bipartisan Policy Center Behavioral Health Integration Task Force, where she championed initiatives focused on mental illness, and of the board of One World Surgery, which provides access to quality surgical care globally.
Director Qualifications
Ms. Domenici brings to the Board her seasoned business acumen and her extensive global experience in strategic financial management, corporate strategy and operations.
Nella Domenici
Committees: Audit
Age: 62
Director Since: 2020
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Background
•Mr. Hurd was appointed a director of AB in April 2019.
•He has served as SeniorChief Operating Officer of EQH, and as a member of the EQH Management Committee, since 2018.
•In this role, Mr. Hurd has strategic oversight for EQH’s Human Resources, Information Technology, Insurance Operations and Communications departments.
•He also is responsible for other key functional areas, including procurement and corporate real estate.
•Mr. Hurd also has served as Chief Operating Officer of Equitable Financial since 2018.
•Prior to joining Equitable, Mr. Hurd served as Executive Vice President and Chief Operating Officer at American International Group, Inc. (“AIG”), where he amassed deep financial services industry experience during his 20-year tenure.
•While at AIG, Mr. Hurd served as Chief Human Resources Officer, Chief Administrative Officer, Deputy General Counsel and Head of Asset Management Restructuring.
Director Qualifications
Mr. Hurd brings to the Board his extensive experience in financial services and strategic insights as a senior executive at EQH and, formerly, at AIG.
Jeffrey Hurd
Committees: None
Age: 56
Director Since: 2019
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Background
•Mr. Kaye was appointed a director of AB in April 2017.
•He has been a director of EQH since May 2018 and a director of Equitable Financial and Equitable America since September 2015.
•Also, since May 2019, Mr. Kaye has been a director of CME Group, Inc. (NASDAQ: CME), where he serves as Chair of the Audit Committee.
•From January 2013 to May 2014, Mr. Kaye served as interim Chief Financial Officer and Treasurer of HealthEast Care System. He held this post after retiring in 2012 from his career at Ernst & Young LLP (“E&Y”).
•He served for 35 years at E&Y, including 25 years as an audit partner.
•During his tenure at E&Y, Mr. Kaye served as the New England Area Managing Partner and the Midwest Area Managing Partner of Assurance.
•Mr. Kaye is a Certified Public Accountant and a National Association of Corporate Directors Board Leadership Fellow.
Director Qualifications
Mr. Kaye brings to the Board the extensive financial and regulatory expertise he developed through his career at E&Y and his directorships at CME, EQH and certain of EQH’s subsidiaries.
Daniel Kaye
Committees: Compensation
Age: 68
Director Since: 2017
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Background
•Mr. Lane was appointed a director of AB in April 2019.
•He has served as Head of Retirement, Wealth Management & Protection Solutions of EQH, and as a member of the EQH Management Committee, since May 2018.
•Also, since February 2019, Mr. Lane has served as President of Equitable Life,Financial, leading that company'scompany’s Retirement, Wealth Management & Protection Solutions businesses and also leading its Marketing and Digital functions.
•Mr. Lane held various leadership roles with AXA and Equitable LifeFinancial since joining Equitable LifeFinancial (then a subsidiary of AXA) in 2005 as Senior Vice President of the Strategic Initiatives Group.
•He has served as President and CEO of AXA Japan, Senior Executive Director at Equitable LifeFinancial with responsibilities across commercial divisions, and Head of AXA Global Strategy overseeing AXA'sAXA’s five-year strategic plan across 60 countries.
•Prior to joining Equitable Life,Financial, Mr. Lane was a consultant for McKinsey & Company and a Captain in the United States Marine Corps.
Director Qualifications
Mr. Lane brings to the Board the outstanding experience and leadership qualities he has developed in various senior roles at AXA S.A., EQH and various subsidiaries, and as an officer in the United States Marine Corps.
Kristi A. MatusNick Lane
Committees: None
Age: 49
Director Since: 2019
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Background
•Ms. Matus age 52, was appointed a director of AB in July 2019.
•She has been a director and member of various board committees at EQH and Equitable America since March 2019 and at Equitable LifeFinancial since September 2015.
•Ms. Matus has served as director and Audit Committee Chair of Cerence, Inc. (NASDAQ: CRNC), a leading provider of automotive technology, since October 2019.
•Formerly, Ms. Matus had been Chief Financial Officer and Chief Operating Officer of Buckle, Inc., a tech-enabled financial services company, from 2020 to 2022, Chair of the Compensation Committee at Tru Optik Data Corp., a digital media intelligence company, sincefrom September 2016. She also has served as2016 to October 2020, an executive advisor to Thomas H. Lee Partners L.P., a private equity firm, sincefrom October 2017 to October 2020, and since October 2019, asa director and Chair of the Audit Committee at Cerence, Inc., a provider of immersive experiences that seek to increase happiness and knowledge for people traveling in motor vehicles. Further, Ms. Matus has served as director and Chair of the Audit Committee at Nextech Systems, a provider of healthcare technology solutions, sincefrom June 2019.2019 to October 2020.

•Ms. Matus served as Executive Vice President and Chief Financial & Administrative Officer at Athenahealth,athenahealth, Inc. ("(“Athenaathena"”) from July 2014 to May 2016.
•Before joining Athena,athena, Ms. Matus served as Executive Vice President of Governance servicesServices at Aetna, Inc. from February 2012 to July 2013.
•Previously, she held several leadership roles at United Services Automobile Association and USAA.Association.

Director Qualifications
Ms. Matus brings to the Board her extensive experience in finance, risk management, compliance and audit functions, investor relations, human capital, real estate and IT, gained through her numerous leadership roles at technology, healthcare and insurance companies.

Kristi Matus
Das NarayandasCommittees: Governance (Chair), Compensation (Chair)
Age: 55
Director Since: 2019
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Background
•Mr. Narayandas age 59, was appointed a director of AB in November 2017.
•He is the Edsel Bryant Ford Professor of Business Administration at Harvard Business School ((“"HBS"HBS”), where he has been a faculty member since 1994.
•Mr. Narayandas also currently serves as the Senior Associate Dean and Chairman of Harvard Business School Publishing, and as the Senior Associate Dean of HBS External Relations.
•He previously served as the senior associate dean of HBS Executive Education, and as chair of the HBS Executive Education Advanced Management Program and the Program for Leadership Development, as well as course head of the required first-year marketing course in the MBA program.
•Mr. Narayandas has received the award for teaching excellence from the graduating HBS MBA class on several occasions. Other awards he has received include the Robert F. Greenhill Award for Outstanding Service to the HBS Community, the Charles M. Williams Award for Excellence in Teaching and the Apgar Award for Innovation in Teaching.
•His scholarship has focused on market-facing issues in traditional business-to-business marketing and professional service firms, including client management strategies, delivering service excellence, product-line management and channel design.


Director Qualifications
Mr. Narayandas brings to the Board his wealth of experience at the highest level of academia in the U.S.
Mark PearsonDas Narayandas
Committees: Governance
Age: 62
Director Since: 2017
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Background
•Mr. Pearson age 61, was appointed a director of AB in February 2011.
•He has served as director and as President and CEO of EQH since May 2018.
•Mr. Pearson also serves as a member of EQH'sEQH’s Management Committee. In January 2011, he became director
•Additionally, Mr. Pearson serves as CEO of Equitable LifeFinancial and currently serves as PresidentEquitable America, and Chief Executive Officer. Additionally, he has been a director of Equitable Americaboth companies since January 2011.

•Mr. Pearson joined AXA S.A. in 1995 when AXAit acquired National Mutual Funds Management Limited (presently AXA Asia Pacific Holdings Limited) and was appointed Regional Chief Executive of AXA Asia Life in 2001.
•From 2008 to 2011, Mr. Pearson was President and Chief Executive Officer of AXA Japan Holding Co., Ltd. (“AXA Japan”).
•Prior to joining AXA S.A., Mr. Pearson spent approximately 20 years in the insurance sector, holding several senior management positions at Hill Samuel, Schroders, National Mutual Holdings and Friends Provident.
•Mr. Pearson is a Fellow of the Chartered Public Association of Certified Public Accountants and is a director of the American Council of Life Insurers.Accountants.

Director Qualifications
Mr. Pearson brings to the Board the diverse financial services experience he has developed through his service as an executive, including as Chief Executive Officer, with EQH, AXA Japan and other affiliates of AXA affiliates.S.A.
Mark Pearson

Committees: Executive, Governance, Compensation
Charles G.T. StonehillAge: 64
Director Since: 2011
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Background
•Mr. Stonehill age 61, was appointed a director of AB in April 2019.
•He has been a director and member of various board committees at EQH and Equitable America since March 2019, and at Equitable LifeFinancial since November 2017.
•Mr. Stonehill has served as a member of the supervisory board of Deutsche Boerse AG, a capital market infrastructure provider, since 2019. Additionally, Mr. Stonehill is a director of Constellation Acquisition Corp. I, a blank check company that targets disruptive innovation across various segments of the global economy, from 2021 to January 2023.
•In addition, Mr. Stonehill is the Founding Partner of Green & Blue Advisors LLC, having started this advisory firm that provides financial advice to cleantechclean-tech and other environmentally-minded companies in 2011.
•He also has served as director and member of the supervisory board of Deutsche Boerse AG,formerly was a capital market company, since 2019, director of Play Magnus AS, a chess app company, sincefrom 2016 non-executive director of CommonBond LLC, an originator of student loans, since 2015, governor at Harrow School, a U.K. boarding school, since 2011,to 2021, and non-executive vice chairman of Julius Baer Group Ltd., a global private banking company based in Switzerland, since 2009.from 2009 to 2021.

•Mr. Stonehill has over 30 years' experience in energy markets, investment banking and capital markets, including leadership positions at Lazard Freres & Co. LLC, Credit Suisse and Morgan Stanley & Co.
•He also served as Chief Financial Officer at Better Place Inc., an electric vehicle start-up, from 2009 to 2011, where he oversaw global financial strategy and capital raising.

Director Qualifications
Mr. Stonehill brings to the Board his extensive expertise and distinguished track record in the financial services industry.industry and over 30 years' experience in energy markets, investment banking and capital markets.
Charles Stonehill

Committees: Audit (Chair)
Executive Officers (other than Age: 64
Director Since: 2019
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Background
•Mr. Bernstein)

Kate C. Burke, Chief Administrative Officer
Ms. Burke, age 48,Walthall was appointed Chief Administrative Officera director of AB in May 2019. September 2021.
•He is a senior executive with UnitedHealth Group, an American multinational managed healthcare and insurance company, currently serving as chief executive officer for Optum Insight (Payer Market) and formerly serving as Executive Vice President of Enterprise Growth.
•Previously, shehe served as Head of Human Capital and Chief Talent Officer from February 2016 to May 2019. She joined our firm in 2004 as an institutional equity salesperson with Bernstein Research Services and has held various managerial roles since that time. Prior to joining AB, Ms. Burke was a consultant at A.T. Kearney, where she focused on strategy, organizational design and change management.

Laurence E. Cranch, General Counsel
Mr. Cranch, age 73, has been our General Counsel since he joined our firm in 2004. Prior to joining AB, Mr. Cranch was a Partner of Clifford Chance, an international law firm. Mr. Cranch joined Clifford Chance in 2000 when Rogers & Wells, a New York law firm of which he was Managing Partner, merged with Clifford Chance.

James A. Gingrich, COO
Mr. Gingrich, age 61, joined our firm in 1999 as a senior research analyst with Bernstein Research Services and has been our firm’s COO since December 2011. Prior to becoming Chief Operating Officer, Mr. Gingrich held senior managerial positions in Bernstein Research Services, including Chairman and Chief Executive Officer from February 2007 to November 2011 and Global Director of Research from December 2002 to January 2007.

John C. Weisenseel, CFO
Mr. Weisenseel, age 60, joined our firm in May 2012 as Senior Vice President and Chief Financial Officer.  From 2004Operating Officer at Blue Shield of California.
•Prior to April 2012, he worked at The McGraw Hill Companies (“McGraw Hill”), whereBlue Shield, he served initially as Senior Vice President and Corporate Treasurer and, from 2007General Manager of Digital Service Integration at American Express. Before joining AMEX, Mr. Walthall held numerous senior roles with USAA Insurance, having contributed to April 2012, as Chief Financial Officerthe development of the firm’s Standard & Poor’s subsidiary.  Prior to joining McGraw Hill, Mr. Weisenseel was Vice President and Corporate Treasurer for Barnes & Noble, Inc.  Prior to joiningindustry's first mobile check-deposit service.

•He was the recipient of the 2016 Multicultural Leaders of California award from the National Diversity Council, and in 2020 was named one of the Most Influential Black Executives in Corporate America by Savoy Magazine.
Barnes & Noble, he spent ten yearsDirector Qualifications
Mr. Walthall brings over two decades of leadership experience with growth strategy, operations, product development, and customer service and retention programs through his extensive experience in various derivatives trading and financial positions at Citigroup.  A Certified Public Accountant, Mr. Weisenseel also has worked at KPMG LLP.numerous leadership roles throughout his career.
Todd Walthall

Committees: Audit
Age: 52
Director Since: 2021
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Executive Officers (other than Mr. Bernstein)
Kate Burke,COO and CFO
Ms. Burke, age 51, was named Chief Financial Officer in July 2022 while retaining her role as Chief Operating Officer, which she became in July 2020. Ms. Burke served as Head of our firm's Private Wealth channel from February 2021 to June 2022; she was appointed Chief Administrative Officer in May 2019. Previously, she served as Head of Human Capital and Chief Talent Officer from February 2016 to May 2019. Ms. Burke joined our firm in 2004 as an institutional equity salesperson with Bernstein Research Services and has held various managerial roles since that time. Prior to joining AB, Ms. Burke was a consultant at A.T. Kearney, where she focused on strategy, organizational design and change management.
Onur Erzan,Head of Global Client Group and Private Wealth
Mr. Erzan, age 47, joined our firm in 2021 as Head of Global Client Group and was named Head of Private Wealth in July 2022. In this role, he oversees AB's entire private wealth management business and third-party institutional and retail franchise, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Prior to joining AB, Mr. Erzan spent over 19 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, Mr. Erzan co-led McKinsey's Banking & Securities Solutions (a portfolio of data, analytics and digital assets and capabilities) globally. He has been active in nonprofit organizations for the last several years and has served on the boards of Graham Windham and Turkish Philanthropy Funds.
Karl Sprules,Head of Global Technology and Operations
Mr. Sprules, age 49, was appointed Head of Global Technology & Operations in 2018. He joined AB's technology department in 1998 as a senior systems engineer in the firm's London office. From 2012 to 2020, Mr. Sprules served as AB's chief technology officer, and since 2018 he has led the relocation of AB's Technology & Operations department to the firm's new Nashville headquarters. In 2012, Mr. Sprules became head of Infrastructure Services for Equities, managing investment operations, operational risk and technology teams. From 2005 to 2012, Mr. Sprules led technology for AB's Private Wealth, Institutional and Client groups. Before joining AB, Mr. Sprules held research analyst positions in cellular and defense product development.
Mark Manley,Global Head of Compliance and General Counsel
Mr. Manley, age 60, joined the firm in 1984 and currently serves as Senior Vice President, General Counsel and Global Head of Compliance. He served a Deputy General Counsel from June 2004 to December 2021. Mr. Manley has been the firm’s Global Head of Compliance since 1988. He chairs AB’s Code of Ethics Oversight Committee and is a member of AB’s Internal Compliance Controls Committee and nearly all of the firm’s senior operating, risk and compliance committees.
Bill Siemers,Controller and Chief Accounting Officer (and Former Interim CFO)
Mr. Siemers, age 62, joined the firm in 2004 as Director of Financial Reporting and currently serves as Senior Vice President, Controller and Chief Accounting Officer of AB. He briefly assumed the position of Interim Chief Financial Officer in March 2022, serving in that capacity until July. Prior to joining AB, Mr. Siemers held various finance positions at Altria and as an auditor at Deloitte.
Ali Dibadj,Former CFO and Head of Strategy
Mr. Dibadj, age 47, resigned as our firm's CFO and Head of Strategy in March 2022. He had been appointed Head of Finance (and later CFO-designate) and Head of Strategy in April 2020, and he had served as our firm's CFO since February 2021. He co-led the firm's Strategy Committee in 2019, was designated a portfolio manager focusing on improving operations, ESG and capital allocation of companies in 2017, and served as a senior research analyst with Bernstein Research Services from 2006 to 2020.
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Changes in Directors and Executive Officers

The following changes in our directors and executive officers occurred since we filed our Form 10-K for the year ended December 31, 2018:

2021:
Directors

Nella Domenici joined the Board, effective January 1, 2020.
Kristi Matus joined the Board, effective July 1, 2019.
Barbara Fallon-Walsh and Shelley Leibowitz each•Bertram Scott departed the Board, effective June 30, 2019.
Jeff Hurd, Nick Lane and Charles Stonehill each joined the Board, effective April 1, 2019.
Denis Duverne, Anders Malmstrom and Robert Zoellick each departed the Board, effective April 1, 2019.

March 22, 2022.
Executive Officers

•Mr. Manley assumed management of AB's Legal & Compliance Department, effective as of January 1, 2022, after our former Chief Legal Officer retired.
On January 13, 2020, we filed Form 8-K indicating that Jim Gingrich will retire from AB,•Mr. Dibadj resigned as CFO and Head of Strategy, effective December 31, 2020,March 22, 2022.
•Mr. Siemers, our firm's Controller and KateChief Accounting Officer, was appointed as Interim CFO, effective March 23, 2022; his service as Interim CFO ended on July 6, 2022.
•Ms. Burke, will assume the roleour firm's COO, was appointed CFO on July 6, 2022.
•Mr. Erzan, our firm's Head of Chief Operating Officer, effectiveGlobal Client Group, was appointed Head of Private Wealth on July 1, 2020.6, 2022.

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Board Meetings

In 2019,2022, the Board held regular meetings in February, April, May, September and November.

 In addition, the Board convened a special meeting in March 2022.
During 2019, theThe Board has established a calendar consisting of four regular meetings, which typically are held in February, May, September and November. In addition, the Board holds special meetings or takes action by unanimous written consent as circumstances warrant. The Board has standing Executive, Audit and Risk, Compensation and Workplace Practices, and Governance Committees, each of which is is described in further detail below. Each member of the Board attended 75% or more of the aggregate of all Board and committee meetings that he or she was entitled to attend in 2019.2022.

Committees of the Board

The Executive Committee of the Board (“Executive Committee”) consists of Messrs. de Oliveira (Chair), Bernstein and Pearson.

The Executive Committee exercises all of the powers and authority of the Board (with limited exceptions) when the Board is not in session, or when it is impractical to assemble the full Board. Typically, the Executive Committee determines quarterly unitholder distributions, as applicable. The Executive Committee held four meetings in 2019.

The Audit and Risk Committee of the Board (“Audit Committee”) consists of Mr. Stonehill (Chair), Mr. Audet and Ms. Domenici. The primary purposes of the Audit Committee are to:
•assist
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Responsibilities:
•Exercises all of the powers and authority of the Board (with limited exceptions) when the Board is not in session, or when it is impractical to assemble the full Board.
•Typically, determines quarterly unitholder distributions, as applicable.
Executive Committee
Committee Members:
Joan Lamm-Tennant (Chair)
Seth Bernstein
Mark Pearson
Meetings in 2022: 4
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Responsibilities:
•Assist the Board in its oversight of:
•
the integrity of the financial statements of the Partnerships;
•
the effectiveness of the Partnerships' internal control over financial reporting and the Partnerships' risk management framework and risk mitigation processes;
•
the Partnerships’ status and system of compliance with legal and regulatory requirements and business conduct;
•
the independent registered public accounting firm’s qualification and independence; and
•
the performance of the Partnerships’ internal audit function; and
function.
•
overseeOversee the appointment, retention, compensation, evaluation and termination of the Partnerships’ independent registered public accounting firm.
•Oversee management’s development of a comprehensive set of metrics for evaluating the firm’s ESG objectives and monitor management’s progress in pursing those objectives.
•Encourages continuous improvement of, and fosters adherence to, the Partnerships’ policies, procedures and practices at all levels.
•Provides an open avenue of communication among the independent registered public accounting firm, senior management, the Internal Audit Department, the Global Head of Compliance, the Chief Risk Officer and the Board.

Consistent with these functions, the Audit and Risk Committee encourages continuous improvement of, and fosters adherence to, the Partnerships’ policies, procedures and practices at all levels. With respect to these matters, the Audit Committee provides an open avenue of communication among the independent registered public accounting firm, senior management, the Internal Audit Department, the Chief Compliance Officer, the Chief Risk Officer and the Board. The Audit Committee held six regular meetings in 2019.

The Compensation and Workplace Practices Committee ("Compensation Committee") consists of Ms. Matus (Chair) and Messrs. Audet, de Oliveira, Kaye and Pearson. The Compensation Committee held five regular meetings in 2019.  For additional information about the Compensation Committee, see “Compensation Discussion and Analysis—Compensation Committee; Process for Determining Executive Compensation” in Item 11.

Also, the Compensation Committee has established the Section 16 Subcommittee to ensure we can utilize the short-swing trading exemption set forth in Section 16b-3 under the Exchange Act. Under this exemption, equity grants to our firm's executive officers are exempt from short-swing trading rules if each such grant is approved by the full Board or a committee of the Board consisting entirely of “non-employee” directors (generally, directors who are not officers of the company or an affiliate). The Section 16 Subcommittee consists of Ms. Matus (Chair) and Messrs. Audet, de Oliveira and Kaye.

The Governance Committee consists of Ms. Matus (Chair) and Messrs. Bernstein, Narayandas and Pearson. The Governance Committee:
Committee Members:
Charles Stonehill (Chair)
Nella Domenici
Todd Walthall
Meetings in 2022: 9 (8 regular mtgs. and 1 special mtg.)
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Responsibilities:
•Assists the Board and the sole stockholder of the General Partner in:
•
identifying and evaluating qualified individuals to become Board members; and
•
determining the composition of the Board and its committees, and
committees.
•
assistsAssists the Board in:
•
developing and monitoring a process to assess Board effectiveness;
•
developing and implementing our Corporate Governance Guidelines; and
•
reviewing our policies and programs that relate to matters of corporate responsibility of the General Partner and the Partnerships.
Governance Committee
Committee Members:
Kristi Matus (Chair)
Seth Bernstein
Das Narayandas
Mark Pearson
Meetings in 2022: 2

The Governance Committee held two meetings in 2019.

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For a discussion of the Compensation Committee's responsibilities, please see “Compensation Discussion and Analysis - Compensation Committee; Process for Determining Executive Compensation” in Item 11.
Compensation and Workplace Practices Committee
Committee Members:
Kristi Matus (Chair)
Daniel Kaye
Mark Pearson
Meetings in 2022: 6 (5 regular mtgs. and 1 special mtg.)
The functions of each of the Board committees discussed above are more fully described in each committee’s charter. The charters are available onin the "Responsibility - Corporate Governance" section of our Internet Site.

Audit Committee Financial Experts; Financial Literacy

Audit Committee Financial Expertise

In January 2019,February 2022, the Governance Committee, after reviewing materials prepared by management, recommended that the Board determine that each of Messrs. AudetMs. Domenici and Kaye is an “audit committee financial expert” within the meaning of Item 407(d) of Regulation S-K.  The Board so determined at its regular meeting held in February 2019.

In March 2019, the Governance Committee, after reviewing materials prepared by management, recommended that the Board determine that Mr. Stonehill is an “audit committee financial expert” within the meaning of Item 407(d) of Regulation S-K. The Board so determined at its regular meeting held in April 2019.February 2022.

Financial Literacy
In November 2019,February 2022, the Governance Committee, after reviewing materials prepared by management, recommended that the Board determine that Ms. Domenici, is an “audit committee financial expert” within the meaning of Item 407(d) of Regulation S-K.  The Board so determined at its regular meeting held in November 2019.

Financial Literacy

In January 2019, the Governance Committee, after reviewing materials prepared by management, recommended that the Board determine that Mr. AudetStonehill and Mr. KayeWalthall each is financially literate and possesses accounting or related financial management expertise, as contemplated by Section 303A.07(a) of the NYSE Listed Company Manual (“Financially Literate”). The Board so determined at its regular meeting held in February 2019.2022.

In April 2019, the Governance Committee, after reviewing materials prepared by management, recommended that the Board determine that Mr. Stonehill is Financially Literate.  The Board so determined at its regular meeting held in April 2019.

In June 2019, the Governance Committee, after reviewing materials prepared by management, recommended that the Board determine that Ms. Matus is Financially Literate.  The Board so determined by unanimous written consent dated as of July 1, 2019.

In November 2019, the Governance Committee, after reviewing materials prepared by management, recommended that the Board determine that Ms. Domenici is Financially Literate.  The Board so determined at its regular meeting held in November 2019.

Independence of Certain Directors

In January 2019,February 2022, the Governance Committee, after reviewing materialmaterials prepared by management, recommended that the Board determine that each of Mses. Domenici, Lamm-Tennant and Matus and Messrs. Audet, de Oliveira, Kaye, Narayandas, Stonehill and NarayandasWalthall is independent. The Board determined, at its February 20192022 regular meeting, that each of these directors is independent within the meaning of the relevant rules.

In April 2019, the Governance Committee, after reviewing material prepared by management, recommended that the Board determine that Mr. Stonehill is independent. The Board determined, at its April 2019 regular meeting, that Mr. Stonehill is independent within the meaning
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In June 2019, the Governance Committee, after reviewing material prepared by management, recommended that the Board determine that Ms. Matus is independent. The Board determined, by unanimous written consent dated as of July 1, 2019, that Ms. Matus is independent within the meaning of the relevant rules.

In November 2019, the Governance Committee, after reviewing material prepared by management, recommended that the Board determine that Ms. Domenici is independent. The Board determined, at its November 2019 regular meeting, that Ms. Domenici is independent within the meaning of the relevant rules.

Board Leadership Structure and Role in Risk Oversight

Leadership

The Board, together with the Governance Committee, is responsible for reviewing the Board’s leadership structure. In determining the appropriate individuals to serve as our ChairmanChair and our CEO, the Board and the Governance Committee consider, among other things, the composition of the Board, our company’s strong corporate governance practices, and the challenges and opportunities specific to AB.

Contacting our Board

Interested parties wishing to communicate directly with our ChairmanChair or the other members of our Board may send an e-mail, with “confidential” in the subject line, to our Corporate Secretary or address mail to Mr. de OliveiraMs. Lamm-Tennant in care of our Corporate Secretary. Our Corporate Secretary will promptly forward such e-mail or mail to Mr. de Oliveira.Ms. Lamm-Tennant. We have posted this information in the “Management“Responsibility - Committees of the Board - Management &Corporate Governance” section of our Internet Site.

Risk Oversight

Board of Directors
The Board, together with the Audit Committee, has oversight for our company’s risk management framework, which includes investment risk, credit and counterparty risk, and operational risk (includes legal/regulatory risk, cyber security risk and climate risk), and is responsible for helping to ensure that these risks are managed in a sound manner.
The Board, together with the Audit Committee, has oversight for our company’s risk management framework, which includes investment risk, credit and counterparty risk, and operational risk (includes legal/regulatory risk, cyber security risk and climate risk), and is responsible for helping to ensure that these risks are managed in a sound manner. The Board has delegated to the Audit Committee, which consists entirely of independent directors, the responsibility to consider our company’s policies and practices with respect to investment, credit and counterparty, and operational risk assessment and risk management, including discussing with management the major financial, operational and reputational risk exposures and the steps taken to monitor and control such exposures. Members of the company's risk management team (including our Chief Information Security Officer), who are responsible for identifying, managing and controlling the array of risks inherent in our company’s business and operations, make quarterly reports to the Audit Committee, which address investment, credit and counterparty, and operational risk identification, assessment and monitoring. The Chief Risk Officer, whose expertise encompasses both quantitative research and associated investment risks, makes quarterly presentations to the Audit Committee. He reports directly to our CEO and, since 2013, has had a reporting line to the Audit Committee.
q
Audit Committee
The Board has delegated to the Audit Committee, which consists entirely of independent directors, the responsibility to consider our company’s policies and practices with respect to investment, credit and counterparty, and operational risk assessment and risk management, including discussing with management the major financial, operational and reputational risk exposures and the steps taken to monitor and control such exposures.

p
Risk Management TeamChief Risk Officer
Members of the company's risk management team (including our Chief Security Officer), who are responsible for identifying, managing and controlling the array of risks inherent in our company’s business and operations, make quarterly reports to the Audit Committee, which address investment, credit and counterparty, and operational risk identification, assessment and monitoring.uThe Chief Risk Officer makes quarterly presentations to the Audit Committee and has reporting lines to the CEO and the Audit Committee.
The Board has determined that its leadership and risk oversight are appropriate for our company. Mr. Bernstein’s in-depth knowledge of financial services and extensive executive experience in the investment management industry make him suitedwell-suited to serve as our President and CEO, while Mr. de Oliveira’sMs. Lamm-Tennant’s in-depth knowledge of investment management, investment bankingindustry and insurance have provedacademic experience are invaluable at enhancing the overall functioning of the Board. The Board believes that the combination of a separate ChairmanChair and CEO, the Audit Committee, a specialized risk management team and significant involvement from our largest Unitholder (EQH) provide the appropriate leadership to help ensure effective risk oversight.

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Code of Ethics and Related Policies

Our directors, officers and employees are subject to our Code of Business Conduct and Ethics.Ethics (the "Code of Ethics"). The codeCode of Ethics is intended to comply with Section 303A.10 of the NYSE Listed Company Manual, Rule 204A-1 under the Investment Advisers Act and Rule 17j-1 under the Investment Company Act, as well as with recommendations issued by the Investment Company Institute regarding, among other things, practices and standards with respect to securities transactions of investment professionals. The Code of Business Conduct and Ethics establishes certain guiding principles for all of our employees, including sensitivity to our fiduciary obligations and ensuring that we meet those obligations. In addition, the Code of Ethics, together with our firm's insider trading policy, restricts employees from trading when in possession of material non-public information of any kind, which can include the existence of a significant cybersecurity incident at our firm. Our Code of Business Conduct and Ethics may be found in the “Corporate Responsibility“Responsibility - Corporate Governance” section of our Internet Site.

We have adopted a Code of Ethics for the CEO and Senior Financial Officers, which is intended to comply with Section 406 of the Sarbanes-Oxley Act of 2002 (“(the “Item 406 Code”). The Item 406 Code which may be found in the “Corporate Responsibility“Responsibility - Corporate Governance” section of our Internet Site, was adopted in October 2004 by the Executive Committee.Site. We intend to satisfy the disclosure requirements under Item 5.05 of Form 8-K regarding certain amendments to, or waivers from, provisions of the Item 406 Code that apply to the CEO, the CFO and the Chief Accounting Officer by posting such information on our Internet Site. To date, there have been no such amendments or waivers.

NYSE Governance Matters

Section 303A.00 of the NYSE Listed Company Manual exempts limited partnerships from compliance with the following sections of the Manual, some of which we comply with voluntarily: Section 303A.01 (board must have a majority of independent directors), 303A.04 (corporate governance committee must have only independent directors as its members and must have a charter that addresses, among other things, the committee’s purpose and responsibilities), and 303A.05 (compensation committee must have only independent directors as its members and must have a charter that addresses, among other things, the committee’s purpose and responsibilities).

AB Holding is a limited partnership (as is AB). In addition, because the General Partner is a wholly owned subsidiary of EQH, and the General Partner controls AB Holding (and AB), we believe we also would qualify for the “controlled company” exemption. However, we comply voluntarily with the charter requirements set forth in Sections 303A.04 and 303A.05.

Our Corporate Governance Guidelines (“(the “GuidelinesGuidelines””) promote the effective functioning of the Board and its committees, promote the interests of the Partnerships’ respective Unitholders (with appropriate regard to the Board’s duties to the sole stockholder of the General Partner), and set forth a common set of expectations as to how the Board, its various committees, individual directors and management should perform their functions. The Guidelines may be found in the “Corporate Responsibility“Responsibility - Corporate Governance” section of our Internet Site.

The Governance Committee is responsible for considering any request for a waiver under the Code of Business Conduct and Ethics, the Item 406 Code and the EQH Policy Statement on Ethics from any director or executive officer of the General Partner. No such waiver has been granted to date and, if a waiver is granted in the future, such waiver would be described in the “Corporate Responsibility“Responsibility - Corporate Governance” section of our Internet Site.

OurWe include in the “Responsibility - Corporate Governance,” section of our Internet Site, under the heading “Management - Committees of the Board - Contact our Directors,” providessite an e-mail address for any interested party, including Unitholders, to communicate with the Board. Our Corporate Secretary reviews e-mails sent to that address and has some discretion in determining how or whether to respond, and in determining to whom such e-mails should be forwarded. In our experience, substantially all of the e-mails received are ordinary client requests for administrative assistance that are best addressed by management, or solicitations of various kinds.

Certifications by our CEO and CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 have been furnished as exhibits to this Form 10-K.

AB Holding Unitholders and AB Unitholders may request a copy of any committee charter, the Guidelines, the Code of Business Conduct and Ethics, and the Item 406 Code by contacting our Corporate Secretary. The charters and memberships of the Executive, Audit, Governance and Compensation Committees may be found in the “Management“Responsibility - Committees of the Board”Corporate Governance” section of our Internet Site.


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Fiduciary Culture

We maintain a robust fiduciary culture and, as a fiduciary, we place the interests of our clients first and foremost. We are committed to the fair and equitable treatment of all our clients, and to compliance with all applicable rules and regulations and internal policies to which our business is subject. We pursue these goals through education of our employees to promote awareness of our fiduciary obligations, incentives that align employees’ interests with those of our clients, and a range of measures, including active monitoring, to ensure regulatory compliance. Our compliance framework includes:
•the Code of Ethics Oversight Committee (the “Ethics Committee”) and the Internal Compliance Controls Committee (the “Compliance Committee”), each of which consists of our executive officers and other senior executives;
•
the Code of Ethics Oversight Committee (“•an ombudsman office, where employees and others can voice concerns on a confidential basis;Ethics Committee”) and the Internal Compliance Controls Committee (“Compliance Committee”), each of which consists of our executive officers and other senior executives;
•an ombudsman office, where employees and others can voice concerns on a confidential basis;
•firm-wide compliance and ethics training programs; and
•a Conflicts Officer and a Conflicts Committee, which help to identify and mitigate conflicts of interest.

•firm-wide compliance and ethics training programs; and
•a Conflicts Officer and a Conflicts Committee, which help to identify and mitigate conflicts of interest.
The Ethics Committee oversees all matters relating to issues arising under our Code of Business Conduct and Ethics and meets on a quarterly basis and at such other times as circumstances warrant. The Ethics Committee and its subcommittee, the Personal Trading Subcommittee, have oversight of personal trading by our employees.

The Compliance Committee reviews compliance issues throughout our firm, endeavors to develop solutions to those issues as they may arise from time to time and oversees implementation of those solutions. The Compliance Committee meets on a quarterly basis and at such other times as circumstances warrant.

Section 16(a) Beneficial Ownership Reporting Compliance
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Section 16(a) of the Exchange Act requires directors of the General Partner and executive officers of the Partnerships, and persons who own more than 10% of the AB Holding Units or AB Units, to file with the SEC initial reports of ownership and reports of changes in ownership of AB Holding Units or AB Units. To the best of our knowledge, during 2019, we complied with all Section 16(a) filing requirements. Our Section 16 filings can be found under “Investor & Media Relations - Reports & SEC Filings” on our Internet Site.Part III

Item 11.Executive Compensation

Compensation Discussion and Analysis (“CD&A”)
In this CD&A, we provide an overview and analysis of our executive compensation philosophy, address the principal elements used to compensate our executive officers and explain how our executive compensation program aligns with AB’s strategic objectives. Additionally, we discuss 20192022 incentive compensation recommendations and decisions made by our Compensation Committee for our named executive officers (“(“NEOs”). This CD&A should be read together with the compensation tables that follow this section. Our NEOs for 20192022(1) are:
ab-20221231_g44.jpg
ab-20221231_g45.jpg
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Seth P. Bernstein
President and Chief Executive Officer ("CEO"(“CEO“)
John C. Weisenseel Kate Burke
Chief Financial Operating
Officer ("(“COO“) and CFO")
Onur Erzan
Head of Global Client Group and Private Wealth
James A. Gingrich(1)                                                      Chief Operating Officer ("COO")ab-20221231_g47.jpg
Kate C. Burke (1) Chief Administrative Officerab-20221231_g48.jpg
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Laurence E. Cranch General Counsel
____________________________
(1)Karl Sprules
Head of Global Technology and Operations
As announced in a Form 8-K we filed on January 13, 2020, Mr. Gingrich will retire from AB, effective December 31, 2020,
Mark Manley
General Counsel and Ms. Burke will assume the roleGlobal Head of COO, effective as of July 1, 2020.Compliance
Bill Siemers
Controller and Chief Accounting Officer (and Former Interim CFO)
(1)Ali Dibadj resigned from his position as CFO and Head of Strategy in March 2022. We have included information concerning Mr. Dibadj in this CD&A and the compensatory tables that follow in accordance with applicable SEC rules and regulations.
Compensation Philosophy and Goals

The intellectual capital of our employees is collectively the most important asset of our firm. We invest in people – we hire qualified people, train them, encourage them to give their best thinking to the firm and our clients, and compensate them in a manner designed to motivate, reward and retain them while aligning their interests with the interests of our Unitholders and clients.
Furthermore, our compensation practices are structured to help the firm realize its long-term growth strategy (“to Deliver, Diversify and Expand, Responsibly, with Equitable (the “Growth Strategy”), which includes firm-wide initiatives to:

•Deliver differentiated return streamssuperior investment solutions to our clients;

Continue to commercialize and scale our suite of investment•Develop high-quality differentiated services; and

Continuously and rigorously focus on expense management.

•Maintain strong incremental margins.
We also are focused on ensuring that our compensation practices are competitive with industry peers and provide sufficient potential for wealth creation for our NEOs and our employees generally, which we believe will enable us to meet the following key compensation goals:

•attract, motivate and retain highly-qualified executive talent;

•reward prior-year performance;
reward prior year performance;

•incentivize future performance;

•recognize and support outstanding individual performance and behaviors that demonstrate and foster our firm’s cultureprimary objective of "Relentless Ingenuity," which includes the core competencies of relentlessness, ingeniousness, collaborationhelping our clients reach their financial goals; and accountability; and

•align our executives’ long-term interests with those of our Unitholders and clients.


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Progress in Advancing our Growth Strategy in 20192022

In 2019, the firm’s results demonstrated meaningfulDespite a challenging investing and operating environment in 2022, we continued to make progress in executing on our Growth Strategy. Below are key metrics related to the three pillars of the Growth Strategy: Deliver, Diversify, and Expand, Responsibly, with Equitable.
Deliver differentiated return streamsSuperior Investment Solutions to clients:our Clients:
Investment Performance
The firm’s investment teams continue to focus on consistently delivering differentiated return streams to our clients. We believe that, over time, the ability to produce idiosyncratic returns that cannot be easily replicated will be central to sustaining our competitive advantage. In 2019,2022, our fixed income performance in our Fixed Income suitelagged, with 20% of products exhibited continued strength, with 86%assets outperforming for the one-year period ended December 31, 2022, while the majority, or 53%, outperformed over the three-year period and 70% outperformed for the five-year period. In active equities, 59% of assets were in outperforming services for the one-year period, 81%59% for the three-year period and 92%77% for the five-year period ended December 31, 2019.Our U.S. retail fixed income mutual funds with AUM greater than $1 billion that placed in the top quartile of performance for the three-year period ended December 31, 2019 are: AB Income, AB Intermediate Diversified Muni, AB Municipal Income National, AB High Income Municipal, AB Intermediate California Municipal and AB Municipal Bond Inflation Strategies. Our Non-U.S. fixed income funds with AUM greater than $1 billion that placed in the top quartile over the same three-year period are: AB American Income, AB European Income and AB Mortgage Income (this2022. (This performance data reflects the percentage of active fixed income and equity assets in institutional services that outperformed their benchmark,respective benchmarks, gross of fees, and percentage of active fixed income and equity assets in retail advisor and I share class funds ranked in the top half of their Morningstar category; if no advisor class exists, we used A share class).

In active equity, 43% Additionally, at year-end 2022, 62% of U.S. Fund assets and 38% of Non-U.S. Fund assets were in outperforming services for the one-year period, 62% for the three-year periodrated 4- or 5-stars by Morningstar.
The following retail fixed income and 84% for the five-year period ended December 31, 2019. Our U.S. retail equity mutual funds with AUM greater than $1 billion that placed in the top quartile of performance for the three-year period ended December 31, 2019 are: AB Large Cap Growth, AB Discovery Growth, AB Growth, AB Small Cap Growth, AB Relative Value, 2022:
AB U.S. retail fixed income mutual funds that placed in the top quartile (3-yrs):
•AB Bond
Inflation Strategy
•AB Municipal Bond Inflation Strategy
AB Non‑U.S. fixed income funds that placed in the top quartile (3-yrs):
•AB Short Duration High Yield
AB U.S. retail equity mutual funds that placed in the top quartile (3-yrs):
•AB Sustainable Global Thematic
AB Non‑U.S. equity funds that placed in the top quartile (3-yrs):
•AB Select US Equity
•AB International
Healthcare
•AB American Growth
•AB Sustainable Global Thematic
•AB Sustainable US Thematic
Net Flows
Scaling our proven investment services remains a key focus of our firm. Despite negative returns for both equity and AB Global Core Equity.fixed income markets in 2022, which drove industry-wide active net outflows, we generated our fourth consecutive year of positive active organic growth, or $0.9 billion, primarily due to 22% organic growth in alternatives/multi-asset. In our Retail channel, gross sales were $65.9 billion, down 34% compared with a record 2021. The retail redemption rate declined to 24% in 2022 from 30% in 2021, and full-year net outflows were $11.6 billion, driven by taxable fixed income. In our Institutional channel, gross sales were $32.2 billion, the highest since 2008, driven by $16 billion in funding related to two institutional custom target date mandates. The firm generated institutional net inflows of $6.3 billion, or a 2% organic growth rate, for a fourth consecutive year of organic growth. Our Non-U.S. equity fundspipeline of $13.2 billion in AUM decreased by 39% as compared with AUM greater than $1$21.5 billion that placeda year ago, reflecting strong fourth quarter funding; alternatives represented over 80% of the pipeline fee base at year-end. In Private Wealth, gross sales in 2022 of $17.5 billion were strong, decreasing just 4% year-over-year, and this channel generated its fifth year of net inflows in the top quartile over the same period are: AB Global Core Equity, AB American Growth and AB SICAV I Low Volatility Equity (information sourced from Morningstar).last seven, or 1.4% organic growth.

Additionally, at year-end 2019, 69%
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Continue to commercialize and scale our suite of services:Diversify Through Developing High-Quality Differentiated Services:
Growing both the diversity of our offerings to meet the needs of an evolving, complex global client base and scaling these services remains a key focusfocus. In 2022, new investment strategy launches across our global platform included: Diversity Champions Equity, SMA Custom Muni, AB Ultra Short Income ETF, AB Tax-Aware Short Duration Municipal ETF and Fixed Maturity Portfolio 2025. Additionally, we launched multiple new vehicles for existing investment strategies in response to customer demand, across a diverse set of geographies.
Expand:
In 2022, we focused on expanding our firm. In 2019,Private Alternatives business, both organically (by scaling existing investment platforms) and inorganically. The acquisition of CarVal Investors, which closed on July 1, 2022, added complementary services including: opportunistic/distressed credit, renewable energy, infrastructure, specialty finance and transportation. AB’s Private Markets platform is now $56 billion, up 57% year over year, reflecting a diverse and relevant offering for institutional, retail and private wealth clients. We remain focused on expanding opportunistically, both inside and outside the U.S., to support long-term growth. We have efforts underway to expand our range of services and capabilities in China, other Asian nations and select European markets. We are also investing in our Insurance asset management business to grow third party clients. And, we generated an active organic growth rate of 6.5%, supported by successhave redesigned the Muni investment platform to enable customization and tax optimization at scale in fixed income and equities. In our Retail channel, we had record gross sales of $75 billion in 2019, up 39% year-over-year,custom Muni SMAs.
Responsibly:
We continue to launch new Portfolios with net flows positive across all regions. Also, we experienced record Retail net inflows ofPurpose, which now represent $24 billion in 2019, resulting inAUM; while down from $32 billion the prior year due to lower market levels, these portfolios continued to grow organically. In 2022, we were recognized as a 13% organic growth rate, driven by our Globalthought leader, winning numerous awards, including: Best Sustainable Fund Management Group of the Year (Investment Week), and Environmental Finance’s IMPACT Award for Fixed Income service. Furthermore, our Equity products have generated 11 straight quartersFund of positive net flows. In our Institutional channel, the firm generated $2.9Year (Muni Impact).
With Equitable:
Equitable has allocated and is currently deploying $10 billion of active equity netpermanent capital3 to AB’s illiquid platform to reposition and thereby further improve the risk adjusted return of its General Account, through seeding new alternative business at AB. Included in this $10 billion commitment is $750 million to be deployed in AB CarVal strategies.
In addition to funding record inflows or a 9% organic growth rate,to our US and Europe Commercial Real Estate Debt strategies in 2022, Equitable supported the launch of our pipelineUltra Short Income ETF.
As of $15.1year-end 2022, more than 50% of the $10 billion of committed capital has been deployed in AUM grew by 56% year-over-year, with a record annualized fee base greater than $40 million.both Private Alternative and Private Placement strategies.
Maintain Strong Incremental Margins:
We remain focused on managing costs to help ensure that we generate targeted incremental adjusted operating margins in the range of 45-50%, over time. In Private Wealth, while our gross sales in 2019 of $11.3 billion decreased year-over-year,2022, we continued to make progress on improving our mix of ultra-high-net-worth accounts, with a 5% annual increase in new relationships with AUM of at least $20 million. Also, for a fifth consecutive year we experienced organic growth in client relationships with asset allocations that include Alternative offerings.

Additionally, we continued to successfully develop and raise capital for new Alternatives offerings, which we are offering across our buy-side distribution channels. Launches in 2019 included a fund of funds joint venture with Abbott Capital Management, LLC, our third U.S. real estate fund and three real estate co-investment funds.

Continuous and rigorous focus on expense management:
Expense management remains a key focus for us. In 2019 we made substantial progress onexecute a key pillar of this strategy, which we initially announced in 2018: the relocation of our corporate headquarters from New York NYCity to Nashville. In 2022, we continued to relocate positions to our recently constructed Nashville TN.headquarters. We expecthave relocated over 85% of our targeted 1,250 positions. We continue to seek efficiencies and manage various operating expenses to help ensure that the Nashville office will house approximately 1,250 employees over time.

we drive operating leverage on incremental revenues.
We remain focused on other key financial metricsDeclines in equity and fixed income markets in 2022 negatively impacted our revenues, resulting in a rolling three-year incremental adjusted operating margin of 35%, below our targeted range of 45% to 50%. Our adjusted operating margin decreased to 28.4% in 2022, down 520 basis points as well. In 2019, totalcompared to 33.6% in 2021. The decrease resulted from an 8% decline in adjusted net revenues, driven by lower base fees, lower performance-based fees, and a decline in Bernstein Research Services revenues. Total adjusted compensation and benefits increased 0.6% comparedexpense declined by 3% and total adjusted operating expenses were flat year over year. We provide additional information regarding our adjusted compensation ratio below in this CD&A; see our discussion of “Management Operating Metrics” above in Item 7 for a reconciliation between our results pursuant to 2018, as higher base compensationUS GAAP and fringes were partially offset by lower incentive compensation and commissions. our adjusted results.
3 Permanent capital means investment capital of indefinite duration, which may be withdrawn under certain conditions. Although Equitable Financial has indicated its intention over time to provide this investment capital to AB, which is mutually beneficial to both firms, it has no binding commitment to do so.
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Our Compensation Practices are Structured to Help the Firm Realize its Growth Strategy
Deliver superior investment solutions to clients
Develop, commercialize
and scale our suite
of services
Launched
5 Services: Diversity Champions Equity, SMA Custom Muni, AB Ultra Short Income ETF, AB Tax-Aware Short Duration Municipal ETF, Fixed Maturity Bond Portfolio 2025

$13.2 billion
Institutional pipeline with strong funding activity, >$27B, throughout FY22 and pipeline active fee rate ~3x the institutional channel fee rate

$23.8 billion
ESG Portfolios with Purpose

$10 billion
Committed by Equitable Financial to expand AB’s Private Alternative and Private Placement Platforms
  Fixed Income and Equity Performance
ab-20221231_g50.jpg
Maintain strong incremental margins(1)
AB Adjusted Operating Margin
ab-20221231_g51.jpg
Total Unitholder Return
(2018 - 2022; assumes dividend reinvestment)
Private Markets
Rapidly Growing Private Markets Platform
$56B Private Markets AUM, up 57%, driven by the CarVal acquisition and strong organic growth
ab-20221231_g52.jpg
Overview
Gross SalesAlts/MASOrganic GrowthBeneficial Pipeline Mix
AB’s Institutional channel achievedAlternatives/Multi-Asset organic growth4th consecutive year of Active organic gains (ex-AXA), averagingAlternatives represented over
$32.2B22.3%3.5%80%
in gross sales in 2022, highest annual sales since 2008in 2022of annual organic growth per year, over the last 4 yearsof institutional pipeline fee base at year-end
(1)AB generated a rolling three-year (2022 vs 2019) incremental adjusted operating margin was 27.5%of 35% in 2019 compared to 29.1%2022, below the long-term targeted range of 45-50%. We provide additional information regarding our adjusted operating margin in 2018. The decline reflects the impact of non-recurring performance-based fee revenues in 2018, lower Bernstein Research Services revenues and the timing of expenses associated with our Nashville Relocation,MD&A which we describe in greater detail above in Item 7.


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Part III

Overview of 20192022 Incentive Compensation Program

In respect of 2019When reflecting on 2022 performance and pay, each of our NEOs (other than Mr. Gingrich)Dibadj, who resigned in March 2022) received a portion of his or her year-end incentive compensation in the form of an annual cash bonus and a portion in the form of long-term incentive compensation awards. The split between the annual cash bonus and long-term incentive compensation varied depending on the NEO's total compensation, with lower-paid executives receiving a greater percentage of their incentive compensation as cash bonuses than more highly-paid executives. (For additional information about these compensatory elements, see “see “CompensationCompensation Elements for NEOs” NEOs” below.) For Mr. Bernstein, his 2019 incentive compensation components were based generally on
In 2022, we utilized performance scorecards for senior leaders of the terms set forthfirm, including our NEOs. These scorecards require our senior leaders to develop and maintain a broad leadership mindset with priorities, such as accelerating ESG initiatives and our firm's alternatives platform, that are aligned with firm-wide goals of creating long-term value for all of our stakeholders. The scorecard for each NEO reflected our Growth Strategy and included actual results relative to target metrics across the following measures:
•Financial performance, including peer results, adjusted operating margin, adjusted net revenue growth and operating efficiency targets (see our discussion of “Management Operating Metrics” in Item 7 for a reconciliation between our results pursuant to US GAAP and our adjusted results);
•Investment performance, by delivering competitive returns across services and time periods;
•Strategic, aligned with our strategy of delivering core investment solutions, while developing high-quality differentiated services, in faster-growing geographies, responsibly, in partnership with Equitable;
•Organizational, including organizational effectiveness and efficiency, leadership impact, succession planning, developing talent, innovating and automating, and real estate utilization; and
•Cultural, including purpose, employee engagement, diversity, retention and safety.
The scorecards support management and the Compensation Committee in assessing each executive's performance relative to business, operational and cultural goals established at the beginning of the year and reviewed in the CEO Employment Agreement (as defined below) and reviewcontext of histhe current-year financial performance during 2019 byof the Compensation Committee.
Although estimates are developed for budgeting and strategic planning purposes, our NEOs' incentive compensation is not correlated with meeting any specific targets. Instead, the aggregatefirm. The amount of incentive compensation paid to our NEOs other than Mr. Gingrich for 2019, generally iscontinues to be determined on a discretionary basis and primarily is a function of our firm’s current year financial performance and progressby the Compensation Committee. (For additional information, please see "Compensation Committee; Process for Determining Executive Compensation" below in advancing our Growth Strategy. Additionally, incentive compensation reflects an executive's achievements throughout the year, as described belowthis CD&A. Amounts are awarded to help us achieve our goal of attracting, motivating and retaining top talent while also helping to ensure that our NEOs' goals are appropriately aligned with the goal of increasing our Unitholders’ return on their investment.)
Mr. Bernstein and Ms. Burke, together with the approval of the Compensation Committee, confirmedcontinue to believe that the appropriate metric to consider in determining the amount of incentive compensation paid to all employees, including our NEOs, in respect of 20192022 performance is the ratio of adjusted employee compensation and benefits expense to adjusted net revenues, which terms are described immediately below:below:
•Adjusted employee compensation and benefits expense is our total employee compensation and benefits expense minus other employment costs such as recruitment, training, temporary help and meals, and excludes the impact of mark-to-market vesting expense, as well as dividends and interest expense, associated with employee long-term incentive compensation-related investments. Also, we adjust for certain performance-based fees passed through to our investment professionals.
•Adjusted net revenues (see our discussion of “Management Operating Metrics” in Item 7 for a reconciliation between our results pursuant to US GAAP and our adjusted results) exclude investment gains and losses and dividends and interest on employee long-term incentive compensation-related investments. In addition, adjusted net revenues offset distribution-related payments to third parties as well as amortization of deferred sales commissions against distribution revenues. We also exclude additional pass-through expenses we incur (primarily through our transfer agent) that are reimbursed and recorded as fees in revenues. Additionally, we adjust for the revenue impact of consolidating company-sponsored investment funds by eliminating the consolidated company-sponsored investment funds’ revenues and including AB’s fees from such funds, and AB’s investment gains and losses on its investment in such funds, that were eliminated in consolidation. We also adjust for certain acquisition-related pass-through performance-based fees and certain other performance-based fees passed through to our investment professionals.
•2022 Annual Report
Adjusted employee compensation and benefits expense is our total employee compensation and benefits expense minus other employment costs such as recruitment, training, temporary help and meals, and excludes the impact of mark-to-market vesting expense, as well as dividends and interest expense, associated with employee long-term incentive compensation-related investments.
•
Adjusted net revenues (see our discussion of “Management Operating Metrics” in Item 7 for a reconciliation between our results pursuant to US GAAP and our adjusted results)exclude investment gains and losses and dividends and interest on employee long-term incentive compensation-related investments. In addition, adjusted net revenues offset distribution-related payments to third parties as well as amortization of deferred sales commissions against distribution revenues. We also exclude additional pass-through expenses we incur (primarily through our transfer agent) that are reimbursed and recorded as fees in revenues. Additionally, we adjust for the revenue impact of consolidating company-sponsored investment funds by eliminating the consolidated company-sponsored investment funds' revenues and including AB's fees from such funds, and AB's investment gains and losses on its investment in such funds, that were eliminated in consolidation.
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In addition, Mr. Bernstein and Ms. Burke, together with the approval of the Compensation Committee, determinedcontinue to believe that the firm’s adjusted employee compensation and benefits expense, excluding the impact of performance-based fees, generally should not exceed 50.0% of our adjusted net revenues annually, except in unexpected or unusual circumstances. As the table below indicates, in 2019,2022, adjusted employee compensation and benefits expense amounted to approximately 47.9%48.4% of our adjusted net revenues (in thousands):
Net Revenues$3,518,432
Adjustments (see above)
(601,817)
Adjusted Net Revenues$2,916,615
  
Employee Compensation & Benefits Expense$1,442,783
Adjustments (see above)
(44,835)
Adjusted Employee Compensation & Benefits Expense$1,397,948
Adjusted Compensation Ratio47.9%

Net Revenues$4,054,290 
Adjustments (see above)
(718,056)
Adjusted Net Revenues$3,336,234
Employee Compensation & Benefits Expense$1,666,636 
Adjustments (see above)
(53,354)
Adjusted Employee Compensation & Benefits Expense$1,613,282
Adjusted Compensation Ratio48.4%
Our 20192022 adjusted compensation ratio of approximately 47.9%48.4% reflects a balancing of the need to keep compensation levels competitive with industry peers in order to attract, motivate and retain highly-qualified talent.

Compensation Committee; Process for Determining Executive Compensation

talent with the need to maintain strong operating leverage in our business. The Compensation Committee consists of Ms. Matus (Chair) and Messrs. Audet, de Oliveira, Kaye and Pearson. The Compensation Committee held five regular meetings in 2019.

As discussed in “NYSE Governance Matters” in Item 10, AB Holding, as a limited partnership, is exempt from NYSE rules that require public companiesworks with management to have a compensation committee consisting solely of independent directors. EQH owns, directly and through various subsidiaries, an approximate 64.8% economic interest in AB (as of December 31, 2019), and compensation expense is a significant component of our financial results. For these reasons, Mr. Pearson, director and President and CEO of EQH, is a member of the Compensation Committee, and any action taken by the Compensation Committee requires his affirmative vote or consent. Given this structure, the Compensation Committee has established a sub-committee consisting entirely of non-management directors (i.e., Ms. Matus and Messrs. Audet, de Oliveira and Kaye). This “Section 16 Sub-Committee” approves awards of restricted AB Holding Units to NEOs.

The Compensation Committee has general oversight of compensation and compensation-related matters, including:help ensure both needs are sufficiently addressed.
•determining cash bonuses;
•determining contributions and awards under incentive plans or other compensation arrangements (whether qualified or non-qualified) for employees of AB and its subsidiaries, and amending or terminating such plans or arrangements or any welfare benefit plan or arrangement or making recommendations to the Board with respect to adopting any new incentive compensation plan, including equity-based plans;
•reviewing and approving the compensation of our CEO, evaluating his performance, and determining and approving his compensation level based on this evaluation; and
•reviewing and discussing the CD&A and recommending to the Board its inclusion in each of AB’s and AB Holding’s Form 10-K and, when applicable, proxy statements.

The Compensation Committee has developed a comprehensive process for:
reviewing our executive compensation program to ensure it is aligned with our firm’s philosophy and strategic objectives;
evaluating performance by our NEOs against goals and objectives established at the beginning of the year; and
setting compensation for the NEOs and other senior executives.

The Compensation Committee’s year-end process generally focuses on the cash bonuses and long-term incentive compensation awards granted to NEOs and other senior executives. Mr. Bernstein, working with Ms. Burke and other senior executives, provides recommendations for individual executive awards to the Compensation Committee for its consideration. As part of this process, Ms. Burke provides the Committee with compensation benchmarking data from one or more compensation consultants. For 2019, we paid $13,910 to McLagan Partners (“McLagan”) for executive compensation benchmarking data and an additional $315,142 for survey and consulting services relating to the amount and form of compensation paid to employees other than executives.

The Compensation Committee provided its final approval of year-end compensation recommendations during its regularly-scheduled meeting held on December 10, 2019. Additionally, management periodically reviewed with the Compensation Committee the firm’s expected adjusted financial and operating results, the firm’s actual results and management’s year-end compensation expectations, as they evolved throughout the year. Management accomplished these reviews during regular meetings of the Compensation Committee held in January, February, September and November 2019.

The Compensation Committee did not retain its own consultants in 2019.

Additional information regarding the Compensation Committee’s functions can be found in the Committee's charter, which is available on-line in the “Corporate Responsibility - Corporate Governance” section of our Internet Site.

Benchmarking Data

In 2019, we engaged McLagan to provide compensation benchmarking data for our NEOs (“2019 Benchmarking Data”). The 2019 Benchmarking Data summarized 2018 compensation levels and 2019 salaries at selected asset management companies comparable to ours in terms of size and business mix (“Comparable Companies”), to assist us in determining the appropriate level of compensation for our NEOs.
The 2019 Benchmarking Data provided ranges of compensation levels at the Comparable Companies for executive positions like those held by each of our NEOs, including base salary and total compensation.

The Comparable Companies, which management selected with input from McLagan, included:
Eaton Vance Corp.150Franklin Templeton InvestmentsGoldman Sachs Asset Management
Invesco Ltd.JP Morgan Asset ManagementLegg Mason, Inc.
MFS Investment ManagementMorgan Stanley Investment ManagementNeuberger Berman LLC
Nuveen Investments / TIAAOppenheimer FundsPIMCO LLC
Prudential InvestmentsT. Rowe Price, Inc.The Vanguard Group, Inc.AllianceBernstein
The 2019 Benchmarking Data indicated that the total compensation paid to each
Table of our NEOs in 2019 fell within the ranges of total compensation paid to executives at the Comparable Companies.
The Compensation Committee considered this information in concluding that the compensation levels paid in 2019 to our NEOs (other than Mr. Gingrich) were appropriate and reasonable.
Other Factors Considered When Determining NEO Compensation

For 2019, Mr. Bernstein and Ms. Burke, and the Compensation Committee, based decisions about the incentive compensation of our NEOs primarily on an assessment of each executive’s leadership, operational performance and potential to enhance investment returns and service for clients, all of which contribute to long-term Unitholder value. Quantitative formulas are not utilized when determining the incentive compensation of our NEOs. Instead, Mr. Bernstein and Ms. Burke, and the Compensation Committee, rely on judgment about each executive’s performance in light of business and operational goals established at the beginning of the year and reviewed in the context of the current-year financial performance of the firm and the firm's progress in advancing its Growth Strategy. Mr. Bernstein and Ms. Burke begin the award determination process, working with other members of senior management, by determining the total incentive compensation amounts available for a particular year (as more fully explained above in “Overview of 2019 Incentive Compensation Program”).Contents
Mr. Bernstein and Ms. Burke, and the Compensation Committee, then consider many key factors for each of the NEOs. Specific factors will vary among business units, among individuals and during different business cycles, so we do not adopt any specific weighting or formula under which these metrics are applied. Key factors are:Part III
•the firm’s financial performance in the current year and the executive's contribution to such financial performance;
•the firm's progress in advancing its Growth Strategy;
•the NEO's performance compared to individual business and operational goals established at the beginning of the year;
•total compensation awarded to the NEO in the prior year;
•
the increase or decrease in the current year’s total incentive compensation amounts available;

•the nature, scope and level of responsibilities of the NEO;
•the NEO’s execution of our firm’s culture of Relentless Ingenuity; and
•the NEO’s management effectiveness, talent development, focus on diversity and inclusion initiatives, and adherence to risk management and regulatory compliance.
Mr. Bernstein and Ms. Burke then provided specific incentive compensation recommendations to the Compensation Committee, which recommendations were supported by the factors listed above and each NEO's individual achievements, as listed below. They also provided the Compensation Committee with the 2019 Benchmarking Data, which was not used in a formulaic or mechanical way to determine NEO compensation levels, but rather, as noted above, provided the Compensation Committee with a reference point for the compensation levels paid to executives at the Comparable Companies. The Compensation Committee then made the final incentive compensation decisions for each NEO (other than Mr. Gingrich, whose cash payment of $1,100,000 in December 2019 was stipulated in his retirement agreement, as discussed below in “Mr. Gingrich’s Compensation”).

We have described below each NEO’s individual achievements in 20192022 given each officer’s role, the contents of their respective performance scorecards and the firm's business and operational goals:
Seth P. Bernstein
Role
Leadership, responsibility and performance as President and CEO.

Individual Achievements

Led the firm’s efforts in achieving an approximate 5% year-over-year increase in net base fee adjusted revenues, firm-wide client net inflows of $25.2 billion, resulting in an active organic growth rate of 6.5%, and an adjusted operating margin of 27.5% (including Nashville Relocation costs).

Led the firm’s efforts in achieving competitive investment performance, with fixed income services, as a percentage of assets outperforming applicable benchmarks for the one-, three- and five-year periods ended December 31, 2019, of 86%, 81% and 92%, respectively; with regard to equities services, 43%, 62% and 84%, respectively.

Directed a firm-wide strategic review and ongoing execution of the firm’s Growth Strategy.

Improved engagement metrics in AB’s employee survey and supported the firm’s diversity and inclusion initiatives through the introduction of a career catalyst program.

Conducted meetings globally with current and prospective clients to enhance AB’s relationships and appreciation of evolving client priorities.

Established a management operating committee to drive transparency and collaboration across business units.

Helped lead the firm’s significant progress in its first full year of operations in Nashville.

James A. Gingrich
Role
Leadership, responsibility and performance as COO, including working in partnership with Ms. Burke in accordance with Mr. Gingrich’s retirement agreement.

Individual Achievements
Successfully led first year of operations in Nashville.
Contributed to the firm’s strong year of client inflows and successful acquisition of Autonomous Research LLP.
Contributed to the firm’s strategic initiatives by helping to establish an SBU dedicated to private alternatives.
Successfully transitioned many responsibilities to Ms. Burke.

Kate C. Burke

Role
Leadership, responsibility and performance as Chief Administrative Officer.

Individual Achievements

Embraced new role as Chief Administrative Officer, increased familiarity with SBUs newly under her supervision and successfully transitioned former responsibilities as Head of Human Capital and Chief Talent Officer.

Established strategic quarterly business reviews to manage investment, talent and cost-savings programs.

Aligned resources to support key strategic initiatives and advance the firm’s Growth Strategy.

Coordinated activities of the firm’s newly-formed management operating committee to drive transparency and collaboration across business units.

Supported successful completion of the initial phases of Nashville Relocation for corporate functions.

Laurence E. Cranch
Role
Leadership, responsibility and performance as General Counsel.

Individual Achievements
Successfully implemented compliance solutions in response to each new compliance requirement that became effective in 2019.

Received uniformly positive feedback from AB business leaders relating to the quality of service of the Legal and Compliance Department.

No regulatory examination resulted in a significant adverse finding or enforcement proceeding.

Ensured the firm remained free of significant litigation, reflecting our pragmatic and aggressive program to avoid situations that are likely to produce disputes and, where disputes do arise, resolve them on favorable terms.

Successfully completed the initial phases of Nashville Relocation, continued work on the selection and retention process for employees relocating, and focused on recruitment of qualified individuals to fill open staff positions in Nashville.

Overall, with respect to ongoing and routine legal matters, successfully maintained outside counsel expenses within the aggressive budget adopted at the start of 2019.
John C. Weisenseel
Role
Leadership, responsibility and performance as CFO.
President and Chief Executive Officer
Summary of Achievements: As President and CEO, Mr. Bernstein led AB to achieve modestly positive active organic growth despite a very challenging year. Disciplined expense management allowed the firm to continue to invest in strategic growth areas, including the acquisition of CarVal Investors ("CarVal") and the expansion of services for key client segments. Mr. Bernstein drove a focus on leadership development, organizational stability, and culture as we successfully returned to the office globally adopting a new hybrid working model.
Individual Achievements
LimitedFinancial and Investment Performance
•Led the firm’s efforts in achieving modestly positive active organic growth for the year, in contrast with industry-wide aggregate net active outflows. AB’s total active net flows were positive in 2022, with two of the firm’s three distribution channels growing organically. The firm’s average effective fee rate increased by 3% year-over-year, combined increasereflecting a repositioning of the business mix towards higher-value services, including the CarVal acquisition.
•Adjusted Earnings per Unit (“EPU”) of $2.95 in promotion & servicing and general administrative expenses2022 declined 24% compared to approximately 2%, excluding headquarters relocation and non-recurring expenses.2021, reflecting adverse financial markets.

•The majority of equity assets outperformed peers or benchmarks in equities despite the challenging market environment, while fixed income underperformed (as measured by the percentage of assets outperforming). Longer term, five-year returns for both asset classes remain competitive.
Implemented a five-year, $900,000,000 funding facility with EQH, providing AB with an additional, resilient funding source at a marginally lower funding cost than commercial paper.Strategic

•Successfully completed the initial phases of Nashville Relocation, achieving expense savings and improved diversity.

Provided accounting, tax and structuring guidance on several business development opportunities, includingclosed the acquisition of AutonomousCarVal, a global alternatives manager with complementary capabilities, expanding AB’s private markets platform to $56B in assets under management.
•Announced plans to form a joint venture partnership with Société Générale ("SG") for our Bernstein Research Services business, identifying a strategic partner committed to strengthening and growing the cash equities and research business, while allowing AB to continue to invest in key strategic priorities.
•Expanded capabilities in key target client segments, including launching an Active ETF platform and expanding custom municipal separately managed accounts for US Retail, while investing in our insurance business to grow third party clients.
•Advanced responsibility goals in our operations and continued to elevate AB’s brand and credentials through thought leadership and the launch of additional Portfolios with Purpose. Recognized as Investment Week’s Best Sustainable Fund Management Group of the Year.
•Continued to strengthen the partnership with Equitable Holdings, including working jointly to improve yield on their General Account while seeding new private alternatives strategies.
Organizational
•Prioritized leadership development for our senior staff and launched new manager training programs that reflect our new hybrid work model.
•Bolstered the stability of the firm in the face of uncertainty, including cyberattack preparedness, prudent expense management, and a reevaluation of our real estate strategy.
Culture
•Diversity, Equity & Inclusion continues to be a firm-wide priority, and we saw modest improvements in our underrepresented populations against our goals to increase diverse employees at the firm.
•Maintained strong engagement metrics in AB’s collateral loan obligation business.employee survey. Launched our new firm-wide purpose and values statements and embedded those principles into talent management processes, corporate messaging, and business unit activities.
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Maintained active discussions
Kate Burke
Chief Operating Officer and Chief Financial Officer
Summary of Achievements: As COO, Ms. Burke continued to progress AB’s headquarters transition to Nashville and led the firm’s return to office. In July, Ms. Burke successfully transitioned the role of Head of Private Wealth to Mr. Erzan and took on a new role as CFO, now overseeing all corporate functions of the firm. As CFO, Ms. Burke was a key advisor on the acquisition of CarVal, the planned joint venture with Bernstein Research and Société Générale, and led cost-saving efforts firm-wide.
Individual Achievements
Financial
•Balanced the firm's revenues, expenses, and financial resources through a disciplined process to manage AB's adjusted margin to 28.4% for the year, which exceeded consensus expectations in a period of weakened financial markets and lower revenues.
•Led the firm’s compensation process. Disciplined and continuous management of compensation as the year progressed through volatile financial markets enabled the appropriate balance of talent retention, investment in key growth initiatives, and healthy operating margins. The process resulted in the firm’s compensation ratio of 48.4%, a ratio better than consensus expectations, continuing the firm’s 10-year track record of a compensation ratio below 50%.
•Prudent expense management in the face of lower revenues led to a rolling 3-year incremental adjusted operating margin (2022 vs 2019) of 35%, as compared with the targeted long-term range of 45-50%.
•Ensured a smooth transition of leadership overseeing AB’s Private Wealth business as well as AB’s financial processes, including accounting, financial planning & analysis, tax, and treasury. Established relationships with the analyst community.
Strategic
•Helped execute AB’s milestone M&A priorities: the $750 million CarVal acquisition and the planned joint venture with SG. Ms. Burke led critical efforts to integrate the CarVal team across people, culture, benefits, technology, operations and financials. Additionally, Ms. Burke strategized with corporate functions to assess entering into the SG joint venture and implications thereof.
•Launched an extensive review, in partnership with the Responsibility team, to identify where ESG is impacting various parts of our operations to enhance governance and broaden accountability.
•Led the firm’s Private Wealth business during first half 2022, focused on management accountability, advisor retention, improving digital capabilities and investment advice.
Organizational
•Implemented enhancements to the firm’s compensation processes, which resulted in increased transparency and improved efficiencies. Enhanced partnership with Equitable Holdings led to improved outcomes with AB’s investorCompensation Committee.
•Increased collaboration across all corporate functions by providing a platform for business leaders to discuss initiatives, emerging issues, resourcing, diversity efforts, and broader topics that impact the firm.
•Drove momentum in Nashville with the official unveiling of our headquarters and ongoing meaningful engagement with community and credit rating agenciesbusiness leaders. Advanced progress toward the firm’s goal of 1,250 employees in Nashville by 2024 by adding 105 employees in 2022.
Culture
•Led the firm’s efforts to successfully return to the office globally, adopting a new hybrid working model. Ensured organizational and talent management processes supported new ways of working.
•Launched AB’s purpose and values while also participatingengaging in small group meetings and town halls to reinforce the importance of culture, diverse thinking and corporate responsibility.

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Onur Erzan
Head of Global Client Group and Head of Private Wealth
Summary of Achievements: As Head of Global Client Group (CG) and Head of Private Wealth (PW), Mr. Erzan oversaw strong sales across both groups despite challenging markets. Under Mr. Erzan’s leadership, the CG launched an active ETF platform, expanded capabilities for the insurance segment, and launched new sales enablement tools. Additionally, Mr. Erzan successfully transitioned to Head of PW in July focusing on a strategy refresh and realignment of roles and responsibilities. As a member of the executive leadership team, Mr. Erzan collaborated with senior leadership across AB and Equitable Holdings on overall business and sales strategy.
Individual Achievements
Financial
•Achieved solid results in CG with 2022 gross sales of $98B, including institutional sales of $32B and retail sales of $66B. The institutional pipeline reached a record high in 3Q 2022 surpassing $100M in revenue and $25B in AUM; ended the year with a $13B pipeline. Client retention rates improved across channels.
•Generated another year of positive PW net flows at +$1.7B. Advisor productivity remains at historically high levels and the client retention rate improved. PW’s fee rate remained relatively stable as continued growth in private alternatives partially offset the impact of deteriorating equity markets.
Strategic
•Led CG to make significant progress toward its long-term strategy. Built out the ETF team and launched the firm’s first two active ETFs in short duration fixed income. Launched Oculus, a new US Retail sales enablement platform with a goal to maximize productivity, leveraging data science to drive engagement and deepen client relationships. Successfully launched the CarVal Clean Energy strategy in the US Retail channel.
•Focused on growing third party insurance clients by expanding the global sales/specialist team, creating new thought leadership, and holding our inaugural insurance executive seminar “Navigating Disruption and the Future of Insurance.” Grew the customized Defined Contribution franchise with $16B in positive net flows, bolstered by the addition of two new clients.
•Developed a four-part vision and strategy for PW focused on meeting client complexity through customized solutions, advisor and client excellence, investment and wealth advice, and scalable advice and services. Select strategic achievements include establishing external partnership with two banking institutions on lending capabilities and continued modernization of technology and operations platform.
•Enhanced PW investment oversight through the creation of a formal Manager Research Group responsible for due diligence of new and existing investment services. Implemented modifications to cash program, which enhanced simplicity for clients and improved operational efficiency.
Organizational
•Focused on attracting and onboarding several senior leadership roles within the CG globally across sales, business development, and product strategy.
•Redesigned PW’s organizational structure to focus on new business growth within targeted client segments. (UHNW, Global Families, Family Offices, Women and Diverse Markets).
Culture
•Fostered a positive, results-driven culture of continuous learning and development across CG and PW. Improved teamwork and collaboration across both organizations, including cross-department partnerships in business management and marketing.
•Promoted a customer-centric approach across the organization via segmented client playbooks and client engagement surveys.



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Karl Sprules
Head of Global Technology and Operations
Summary of Achievements: As Head of Global Technology & Operations, Mr. Sprules led a team of ~1,100+ employees and ~900+ consultants to provide technology infrastructure, software development, portfolio operations, investment operations, transfer agent, fund accounting and real estate services, globally.
Individual Achievements
Financial
•Delivered on a three-year project to migrate the accounting platform used within our Private Wealth business to our in-house, strategic platform, increasing integration and reducing risk and technology expense.
Strategic
•Opened our office in Pune, India, focused on supplying talent to business units across AB. Onboarded the first 300 staff (effective January 1, 2023) and designed the office, technology, people, and management infrastructure to support expansion.
•Drove the adoption of blockchain-based technology in our fund transfer agent business with the goal of building operational, security and infrastructure expertise.
•Advised on the development of a segregated, end-to-end asset management industry investor conferences.infrastructure covering all operations and systems to support the build-out of an onshore fund management company in China.

•Provided technology and operations thought leadership in the development of new services, including ETFs, municipal bond separately managed accounts, and the integration of CarVal Investors.
Named finalistOrganizational
•Led the team responsible for Nashville CFOreturning to the office with our hybrid working model. Brought together a multidisciplinary team from people, legal, security, technology and operations to ensure our global offices welcomed staff back safely and in accordance with local regulations.
•Led the effort to consolidate collaboration platforms across AB, moving from four disparate systems to a single, firm-wide tool for office, remote work and mobile collaboration.
•Completed a two-year platform investment to deliver a cybersecurity response infrastructure. Developed day zero and day one response plans.
Culture
•Led the team responsible for opening our new office in London, delivering a collaborative, equitable and state-of-the-art work environment.



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Mark Manley
General Counsel and Global Head of Compliance
Summary of Achievements: Upon the Year award.retirement of Larry Cranch, AB’s former Chief Legal Officer, on December 31, 2021, Mr. Manley, who had already been serving as General Counsel and Global Head of Compliance, assumed management of AB’s Legal and Compliance department, overseeing all legal and regulatory affairs for the firm. He also joined both the Executive Team and Operating Committee.
Individual Achievements

Financial
The compensation of each of these NEOs reflected the Compensation Committee’s judgment (and Mr. Bernstein’s judgment,•Continued to control outside counsel expenses with respect to each executive other than himself)ongoing and routine legal matters.
Strategic
•Successfully completed the leadership transition of the Legal and Compliance Department.
•Ensured no regulatory examination resulted in assessinga material adverse finding or enforcement proceeding.
•Provided legal and regulatory guidance in the CarVal and SG transactions; helped lead steering committees on both transactions, focusing on execution and integration.
•Enhanced the partnership with Equitable through strong collaboration with its legal leadership and improved AB Board governance and communication.
•Oversaw all legal and regulatory matters relating to new product development and strategic initiatives; established ESG risk assessment and compliance programs globally.
Organizational
•Recruited, developed and retained high-quality talent.
•Drove innovation and savings through technology and process improvements.
Culture
•Emphasized the importance of our fiduciary culture through compliance and workplace practices training; lead departmental initiatives around purpose, values and corporate responsibility.
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Bill Siemers
Controller and Chief Accounting Officer (served as Interim Chief Financial Officer from March 23, 2022 – July 5, 2022)
Summary of Achievements: As Controller and Chief Accounting Officer, as well as Interim Chief Financial Officer (CFO), Mr. Siemers oversaw the executive's achievements in the contextdelivery of our firm’s adjustedcomplete, accurate and timely financial results both internally and progress in advancing our Growth Strategy.externally (in SEC periodic reports and Earnings Releases) and ensured continuity and continuous improvement of a strong Finance function.
Individual Achievements

Compensation Elements for NEOs

Financial
We utilize•Contributed to cost optimization initiatives implemented in response to a varietyvolatile market environment.
•Improved AB’s financial processes through enhanced accounting, accounts payable, and payroll procedures.
Strategic
•Supported the execution of compensation elements to achieve the goals described above, consisting of base salary, annual short-term incentive compensation awards (cash bonuses), a long-term incentive compensation award program, a defined contribution planCarVal acquisition and certain other benefits, each of which we discuss in detail below:the planned joint venture with SG.

Base Salaries•Supported the financial tracking and disclosures related to ESG initiatives.
Base salaries comprise•Increased collaboration of share repurchases, debt levels, and strategic initiatives with Equitable.
Organizational
•Led the Finance function and executed all CFO responsibilities for approximately three months; supported and helped transition the new CFO.
•Coordinated and documented the Finance procedures for cyberattack readiness planning.
Culture
•Established a relativelyFinance Purpose Council and engaged in various Town Halls and small meeting groups to encourage employees to connect with AB’s purpose and values.
•Maintained strong Finance employee engagement and retention; grew diversity within our workforce.



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Ali Dibadj
Former CFO and Head of Strategy
Mr. Dibadj served as CFO and Head of Strategy until March 2022 when he notified AB of his resignation from his position to become the chief executive officer of another publicly traded company. Up until his resignation, Mr. Dibadj was responsible for AB's financial functions, including accounting, tax, treasury, financial planning & analysis, investor relations and corporate strategy. Mr. Dibadj's only compensation in 2022 consisted of a pro-rata portion of our NEOs’ total compensation. We consider individual experience, responsibilitieshis $400,000 salary (through his termination date) and tenure with the firmequity awards he received from EQH (which he forfeited when determining the narrow range of base salaries paid to our NEOs (please refer to “Overview of Mr. Bernstein's Employment Agreement” below for information relating to Mr. Bernstein’s base salary and other compensation elements)he resigned).
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The compensation of each of these NEOs (other than Mr. Dibadj) reflected the Compensation Committee’s judgment (and Mr. Bernstein’s judgment, with respect to each executive other than himself) in assessing the importance of the executive's achievements in the context of our firm’s adjusted financial results and progress in advancing our Growth Strategy.
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Compensation Committee; Process for Determining Executive Compensation
The Compensation Committee consists of Ms. Matus (Chair), Mr. Kaye and Mr. Pearson. The Compensation Committee held five regular meetings and one special meeting in 2022.
As discussed in “NYSE Governance Matters” in Item 10, AB Holding, as a limited partnership, is exempt from NYSE rules that require public companies to have a compensation committee consisting solely of independent directors. EQH owns, directly and through various subsidiaries, an approximate 61.3% economic interest in AB (as of December 31, 2022), and compensation expense is a significant component of our financial results. For these reasons, Mr. Pearson, director and President and CEO of EQH, is a member of the Compensation Committee, and any action taken by the Compensation Committee requires his affirmative vote or consent. Given this structure, the Compensation Committee has established a sub-committee consisting entirely of non-management directors (i.e., Ms. Matus and Mr. Kaye). This “Section 16 Sub-Committee” approves awards of restricted AB Holding Units to NEOs to ensure we can utilize the short-swing trading exemption set forth in Section 16b-3 under the Exchange Act. Under this exemption, equity grants to our firm's executive officers are exempt from short-swing trading rules if each such grant is approved by the full Board or a committee of the Board consisting entirely of “non-employee” directors (generally, directors who are not officers of the company or an affiliate).
The Compensation Committee has general oversight of compensation and compensation-related matters, including:
•determining cash bonuses;
•determining contributions and awards under incentive plans or other compensation arrangements (whether qualified or non-qualified) for employees of AB and its subsidiaries, and amending or terminating such plans or arrangements or any welfare benefit plan or arrangement or making recommendations to the Board with respect to adopting any new incentive compensation plan, including equity-based plans;
•reviewing and approving the compensation of our CEO, evaluating his performance, and determining and approving his compensation level based on this evaluation; and
•reviewing and discussing the CD&A and recommending to the Board its inclusion in each of AB’s and AB Holding’s Form 10-K and, when applicable, proxy statements.
The Compensation Committee has developed a comprehensive process for:
•reviewing our executive compensation program to ensure it is aligned with our firm’s philosophy and strategic objectives;
•evaluating performance by our NEOs against goals and objectives established in each executive's performance scorecard at the beginning of the year; and
•setting compensation for the NEOs and other senior executives.
The Compensation Committee’s year-end process generally focuses on the cash bonuses and long-term incentive compensation awards granted to NEOs and other senior executives. Mr. Bernstein, working with Ms. Burke and other senior executives, provides recommendations for individual executive awards to the Compensation Committee for its consideration. As part of this process, and as we discuss more fully below in "Compensation Consultant; Benchmarking Data," Ms. Burke provides the Committee with competitive market data from one or more compensation consultants.
Management periodically reviews with the Compensation Committee the firm’s expected adjusted financial and operating results, the firm’s actual results and management’s year-end compensation expectations, as they evolve throughout the year. Management accomplished these reviews during regular meetings of the Compensation Committee held in February, May, September, October and November 2022, as well as one special meeting held in July 2022. The Compensation Committee approved the firm's final year-end compensation recommendations during its regular meeting held in November 2022.
Additional information regarding the Compensation Committee’s functions can be found in the Committee's charter, which is available online in the “Responsibility - Corporate Governance” section of our Internet Site.
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Compensation Consultant; Benchmarking Data
In 2022, we retained McLagan Partners (“McLagan”) as an independent consultant to provide competitive market data and trend forecasting for our NEOs and other senior executives, for which we paid McLagan $53,500 (the "2022 Benchmarking Data"). McLagan has an extensive database on compensation for most investment management companies, including private companies for which information is not otherwise available.
The 2022 Benchmarking Data summarized 2021 compensation levels and 2022 salaries, which helps form a reasonable estimation of compensation levels in the industry for executive positions like those held by our NEOs at selected asset management companies comparable to ours in terms of size and business mix (the “Comparable Companies”) and, in so doing, assists in determining the appropriate level of compensation for our NEOs.
The Comparable Companies, which management selected with input from McLagan, included:
BaringsColumbia ThreadneedleFranklin Templeton Investments
Goldman Sachs Asset ManagementInvescoJanus Henderson Investors
Loomis, Sayles & CompanyMFS Investment ManagementMorgan Stanley Investment Management
Neuberger Berman GroupNuveen InvestmentsPacific Investment Management
Prudential Global Investment Mgmt.Schroder Investment ManagementT. Rowe Price
The 2022 Benchmarking Data indicated that, as a group, our NEOs fall within market range. Please note that we excluded Mr. Dibadj from this analysis as he left AB in March 2022 and, accordingly, did not receive year-end incentive compensation.
The Compensation Committee considered this information in concluding that the compensation levels paid in 2022 to our NEOs (other than Mr. Dibadj, who was not considered in this process) were appropriate and reasonable.
Compensation Elements for NEOs
We utilize a variety of compensation elements to achieve the goals described above, consisting of base salary, annual short-term incentive compensation awards (cash bonuses), a long-term incentive compensation award program, a defined contribution plan, a defined benefit plan and certain other benefits, each of which we discuss below:
Base Salaries
Base salaries comprise a relatively small portion of our NEOs’ total compensation. We consider individual experience, responsibilities and tenure with the firm when determining the narrow range of base salaries paid to our NEOs (please refer to “Overview of Mr. Bernstein's Employment Agreement” below for information relating to Mr. Bernstein’s base salary and other compensation elements).
Annual Short-Term Incentive Compensation Awards (Cash Bonuses)
We provide our NEOs with annual short-term incentive compensation awards in the form of cash bonuses.
We believe that annual cash bonuses, which generally reflect individual performance and the firm’s current year financial performance, provide a short-term retention mechanism for our NEOs because such bonuses typically are paid during the last week of the year.
Annual cash bonuses in respect of 2022 performance for each NEO were determined in November 2022 and paid in December 2022. These bonuses, and the 2022 long-term incentive compensation awards described immediately below, were based on management’s evaluation, subject to the Compensation Committee’s review and approval, of each NEO’s performance during the year, the firm's progress in advancing its Growth Strategy during the year, the performance of the NEO’s business unit or function compared to business and operational goals established in each NEO's performance scorecard at the beginning of the year, and the firm’s current-year financial performance.
In respect of 2022, Mr. Bernstein received a cash bonus of $4,925,000 in accordance with the terms of the employment agreement into which he entered with the General Partner, AB and AB Holding as of May 1, 2017 (the “CEO Employment Agreement”) and after review of Mr. Bernstein's performance during 2022 by the Compensation Committee. Please refer to “Overview of Mr. Bernstein's Employment Agreement” below for additional information relating to Mr. Bernstein’s cash bonus and other compensation elements.
We believe that annual cash bonuses, which generally reflect individual performance and the firm’s current year financial performance, provide a short-term retention mechanism for our NEOs because such bonuses typically are paid during the last week of the year.
158Annual cash bonuses in respect of 2019 performance for each NEO were determined and paid in December 2019 (other than for Mr. Gingrich, whose cash payment of $1,100,000 in December 2019 was established in his retirement agreement). These bonuses, and the 2019 long-term incentive compensation awards AllianceBernsteindescribed immediately below, were based on management’s evaluation, subject to the Compensation Committee’s review and approval, of each NEO’s performance during the year, the firm's progress in advancing its Growth Strategy during the year, the performance of the NEO’s business unit or function compared to business and operational goals established at the beginning of the year (and, with respect to Ms. Burke, goals established when, during the second quarter of 2019, she assumed the role of Chief Administrative Officer), and the firm’s current-year financial performance. For more information regarding the factors considered when determining cash bonuses for NEOs, see “Other Factors Considered When Determining NEO Compensation” above.
In respect of 2019, Mr. Bernstein received a cash bonus of $3,850,000 in accordance with the terms of the employment agreement into which he entered with the General Partner, AB and AB Holding as of May 1, 2017 (“CEO Employment Agreement”) and after review of Mr. Bernstein's performance during 2019 by the Compensation Committee. Please refer to “Overview of Mr. Bernstein's Employment Agreement” below for additional information relating to Mr. Bernstein’s cash bonus and other compensation elements.
Long-Term Incentive Compensation Awards
Long-term incentive compensation awards generally are denominated in restricted AB Holding Units. We utilize this structure to align our NEOs’ long-term interests directly with the interests of our Unitholders and indirectly with the interests of our clients, as strong performance for our clients generally contributes directly to increases in AUM and improved financial performance for the firm.
We believe that annual long-term incentive compensation awards provide a long-term retention mechanism for our NEOs because such awards generally vest ratably over four years. For 2019 performance, these awards were granted in December 2019 to each of Ms. Burke and Messrs. Bernstein, Cranch and Weisenseel pursuant to the AB 2019 Incentive Compensation Award Program ("ICAP"), an unfunded, non-qualified incentive compensation plan, and the AB 2017 Long Term Incentive Plan, our equity compensation plan (“2017 Plan”). Mr. Gingrich did not receive a year-end award in December 2019. For additional information regarding Mr. Gingrich's compensation, please see "Mr. Gingrich's Compensation" below.
Prior to the date on which an award vests, the AB Holding Units underlying an award are restricted and are not permitted to be transferred. Upon vesting, the AB Holding Units underlying an award generally are delivered, unless the award recipient has, in advance, voluntarily elected to defer receipt to future periods or the award is structured with a delayed delivery date. Quarterly cash distributions on vested and unvested restricted AB Holding Units are delivered to award recipients when cash distributions are paid generally to Unitholders.
An award recipient who resigns or is terminated without cause prior to the vesting date is eligible to continue to vest in his or her long-term incentive compensation award subject to compliance with the restrictive covenants set forth in the applicable award agreement, including restrictions on competition, and restrictions on employee and client solicitation. Commencing in 2018, the award agreement also provides for continued vesting in the event of an award recipient's retirement, subject to applicable restrictive covenants. To be eligible for retirement, an award recipient must provide notice of retirement, enter into a retirement agreement

and satisfy a "Rule of 70," whereby the sum of the recipient's age and years of service must equal at least 70. The award agreement provided to each recipient of restricted AB Holding Units as part of year-end incentive compensation in 2018 amended the recipient's prior awards granted under ICAP to provide for this vesting treatment in the event of retirement.
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Long-Term Incentive Compensation Awards
Long-term incentive compensation awards generally are denominated in restricted AB Holding Units. We utilize this structure to align our NEOs’ long-term interests directly with the interests of our Unitholders and indirectly with the interests of our clients, as strong performance for our clients generally contributes directly to increases in AUM and improved financial performance for the firm.
We believe that annual long-term incentive compensation awards provide a long-term retention mechanism for our NEOs because such awards generally vest ratably over time; awards granted in 2022 generally vest in equal portions over three years, while awards granted prior to 2021 generally vest over four years. We reduced the vesting period to three years for awards in 2021 to help ensure our compensation framework remains highly competitive.
For 2022 performance, awards were granted in December 2022 to each of Ms. Burke and Messrs. Bernstein, Erzan, Sprules, Manley and Siemers pursuant to the AB 2022 Incentive Compensation Award Program (the "ICAP"), an unfunded, non-qualified incentive compensation plan, and the AB 2017 Long Term Incentive Plan, our equity compensation plan (the “2017 Plan”). Mr. Dibadj, who resigned in March 2022, did not receive an award.
Prior to the date on which an award vests, the AB Holding Units underlying an award are restricted and are not permitted to be transferred. Upon vesting, the AB Holding Units underlying an award generally are delivered, unless the award recipient has, in advance, voluntarily elected to defer receipt to future periods or the award is structured with a delayed delivery date. Quarterly cash distributions on vested and unvested restricted AB Holding Units are delivered to award recipients when cash distributions are paid generally to Unitholders.
An award recipient who resigns or is terminated without cause prior to the vesting date is eligible to continue to vest in his or her long-term incentive compensation award subject to compliance with the restrictive covenants set forth in the applicable award agreement, including restrictions on competition, and restrictions on employee and client solicitation. Additionally, the award agreement provides for continued vesting in the event of an award recipient's retirement, subject to applicable restrictive covenants. To be eligible for retirement, an award recipient must provide notice of retirement, enter into a retirement agreement and satisfy a "Rule of 70," whereby the sum of the recipient's age and full years of service must equal at least 70.
Clawbacks
The award agreement permits AB to claw-back the unvested portion of an award if the recipient fails to adhere to our risk management policies. As such, for accounting purposes, there is no employee service requirement and awards are fully expensed when granted. As used in this Item 11, “vest” refers to the time at which the awards are no longer subject to forfeiture for breach of these restrictions or risk management policies, which we discuss further below in “Consideration of Risk Matters in Determining Compensation.”
Mr. Gingrich's Compensation
Mr. Gingrich received a cash payment of $1,100,000 in December 2019 and is entitled to a cash payment of $2,850,000 in December 2020 in accordance with the retirement agreement he signed in May 2019. This agreement contemplated that Mr. Gingrich would retire from AB no earlier than December 31, 2020 and no later than December 31, 2022. Under the agreement, until Mr. Gingrich's retirement date and for a period of 26 weeks thereafter, Mr. Gingrich is entitled to a base salary of $400,000 and group medical coverage. It has been determined that Mr. Gingrich will retire from AB as of December 31, 2020.

In April 2018, Mr. Gingrich was granted a special restricted AB Holding Unit award with a grant date fair value of $14,000,000 in recognition of Mr. Gingrich’s efforts to manage AB’s operations in a cost-effective manner, including his leadership role in relocating our firm’s headquarters to Nashville. The award agreement indicates that Mr. Gingrich's special award vests in four equal installments on December 1 of each of 2019, 2020, 2021 and 2022 based on Mr. Gingrich's continued service to AB and his moving to, and establishing his principal residence in Nashville, TN (subject to certain exceptions set forth in his award agreement), but no AB Holding Units are delivered until after December 1, 2022.

As noted above, Mr. Gingrich will retire from AB effective as of December 31, 2020. As a result, Mr. Gingrich will receive the portion of the restricted AB Holding Unit award that vested on December 1, 2019 and the portion scheduled to vest on December 1, 2020, subject to applicable withholdings, as promptly as possible after December 1, 2020. Mr. Gingrich will forfeit the portions of the special restricted AB Holding Unit award that had been scheduled to vest on each of December 1, 2021 and 2022.

In February 2017, Mr. Gingrich was granted a special restricted AB Holding Unit award with a grant date fair value of approximately $21,000,000, in lieu of cash bonus and year-end long-term incentive compensation awards for 2017, 2018 and 2019 for which Mr. Gingrich otherwise would have been eligible under our ICAP; provided, Mr. Gingrich was eligible to receive at the end of each such year an additional cash bonus, but only to the extent approved by the Compensation Committee. The Compensation Committee did not award a special cash bonus to Mr. Gingrich in 2019. The AB Holding Units subject to Mr. Gingrich’s 2017 award were delivered to Mr. Gingrich, after deducting applicable withholdings, in December 2019.

Relocation-related Performance Awards

In April 2018, Ms. Burke Mr. Cranch and Mr. WeisenseelSprules each was granted a special restricted AB Holding Unit award with a grant date fair value of $4,000,000. Each award vestsvested on December 1, 2022, and the underlying AB Holding Units arewere delivered promptly thereafter provided(net of AB Holding Units withheld to cover applicable taxes) given each executive continuescontinued to be employed by AB and each executive moves to and establisheshad established his or her principal residence in Nashville, TN. Vesting of each executive’s AB Holding Units also is contingent on an assessment byAdditionally, the Compensation Committee, with appropriate input from Mr. Bernstein, as to whether, and the extent to which:determined during its regular meeting held in September 2022 that:
•our firm’s headquarters relocation initiative ishas been executed without significant disruption or reputational damage to AB;
•AB’s targets for cost savings and implementation costs for the relocation have been achieved; and

•the level of workplace talent and diversity in Nashville is satisfactory.

With respect to the above-referenced criteria, the Compensation Committee, with appropriate input from Mr. Bernstein, assessesassessed achievement of the criteria both within the executive's business unit and with respect to our firm overall. In December 2019,
Former CFO and Head of Strategy Resignation
As announced in a Form 8-K we filed on March 23, 2022, Mr. Bernstein,Dibadj resigned from AB on behalfMarch 22, 2022. His responsibilities as CFO promptly were transitioned to Mr. Siemers on an interim basis and then to Ms. Burke, effective July 6, 2022.
The compensatory benefits Mr. Dibadj forfeited by resigning included (i) unvested portions of prior-year long-term incentive compensation awards, aggregating to approximately $1.8 million in value (based on the Compensationclosing price of an AB Holding Unit as of June 17, 2022, his official termination date taking into account the garden leave obligation provided in the ICAP award agreement); and (ii) the unvested portions of restricted stock unit awards and performance share awards granted to him by EQH in connection with his membership on and service to EQH's Management Committee, advised each executive that his or her performance generally was progressing well with respectaggregating to eachapproximately $150,000 (based on the closing price of the above-referenced criteria. A similar process is expected to be followed in December 2020 and 2021.an EQH share as of June 17, 2022).


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Defined Contribution Plan

U.S. employees of AB, including each of our NEOs, are eligible to participate in the Profit Sharing Plan for Employees of AB (as amended and restated as of January 1, 2015, and as further amended as of January 1, 2017, and as further amended as of April 1, 2018, and as of June 28, 2022, the “AB Profit Sharing Plan”), a tax-qualified defined contribution retirement plan. The Compensation Committee determines the amount of company contributions (both the level of annual matching by the firm of an employee’s pre-tax salary deferral contributions and the annual company profit sharing contribution, if any).

With respect to 2019,2022, the Compensation Committee determined during its regularly-scheduled meeting held on December 10, 2019,in November 2022 that employee deferral contributions would be matched on a dollar-for-dollar basis up to 5% of eligible compensation and that there would be no profit sharing contribution.contribution paid by AB.

Defined Benefit Plan
We maintain a qualified, noncontributory, defined benefit retirement plan (the “AB Retirement Plan”) covering current and former employees who were employed by AB in the United States prior to October 2, 2000. Benefits are based on years of credited service, average final base salary (as defined in the AB Retirement Plan) and primary Social Security benefits. Service and compensation after December 31, 2008 are not taken into account in determining participants’ retirement benefits. Of our named executive officers, only Messrs. Sprules and Manley are eligible participants in the AB Retirement Plan.
The maximum annual benefit payable under the AB Retirement Plan may not exceed the lesser of $100,000 or 100% of a participant’s average aggregate compensation for the three consecutive years in which he or she received the highest aggregate compensation from us or such lower limit as may be imposed by the Internal Revenue Code of 1986, as amended (the "Code"), on certain participants by reason of their coverage under another qualified retirement plan we maintain. The AB Retirement Plan generally provides for payments to, or on behalf of, each vested employee upon such employee’s retirement at the normal retirement age provided under the plan or later, although provision is made for payment of early retirement benefits on an "actuarially" reduced basis. Normal retirement age under the AB Retirement Plan is 65. Death benefits are payable to the surviving spouse of an employee who dies with a vested benefit under the AB Retirement Plan. For additional information regarding interest rates and actuarial assumptions, see Note 18 to AB’s consolidated financial statements in Item 8.
A participant in the AB Retirement Plan is eligible for early retirement upon termination of employment if the participant is at least age 55 and the sum of the participant’s age and years of vesting service equals at least 80. As of December 31, 2022, Mr. Sprules has attained age 49 and earned 25 years of vesting service. (For purposes of determining early retirement eligibility, years of service after benefits under the AB Retirement Plan ceased accruing are included.) Because Mr. Sprules is younger than age 55 and the sum of his age and service is less than 80, he is not eligible for early retirement. As of December 31, 2022, Mr. Manley has attained age 60 and earned 39 years of vesting service. Because the total of Mr. Manly’s age and years of service exceeded 80, he is eligible for early retirement.
The early retirement benefit is “actuarially” reduced for each month that payments begin before age 65. The reduction to the pension is made because it costs more money to provide payments over a longer period of time. In other words, the monthly benefit commencing at the early retirement date has the same value as a monthly benefit beginning at age 65. The actuarial adjustment factors are based on the mortality assumptions specified under Section 417(e) of the Code and a 6.0% interest rate, as specified in the AB Retirement Plan. For example, a 60 year old participant (like Mr. Manley) would receive approximately 66% of the accrued benefit that would have been payable at age 65.
Other Benefits
Change in Control Plan
In December 2020, the Compensation Committee approved the AllianceBernstein Change in Control Plan for Executive Officers (the "CIC Plan"). The purpose of the CiC Plan is to provide certain benefits for each individual designated by our CEO as an executive officer (an "Executive Officer") in the event of a change in control ("CIC") of AB. The CIC Plan contains a change in control provision substantially similar to the change in control provision included in Mr. Bernstein's employment agreement (as described below in "Overview of Mr. Bernstein's Employment Agreement"). The provisions under the CIC Plan also are described in a compensatory table below entitled, “Potential Payments upon Termination or Change in Control.”
The CIC Plan provides that, in the event of a CIC, unless prior to the CIC, any unvested restricted unit awards (including ICAP awards) then held by an Executive Officer are honored or assumed, or new rights are substituted therefore, so that the Executive Officer's rights and entitlements after the CIC are substantially equivalent to or better than the Executives Officer's rights and entitlements under the award, each award will, prior to the CIC, immediately and fully vest and no longer be subject to forfeiture.
In addition, (i) if the Executive Officer's employment is terminated by AB, other than for cause, (ii) the Executive Officer resigns with good reason (as defined in the CIC Plan), or (iii) the Executive Officer dies or becomes disabled, within 12 months following a CIC, the Executive Officer will be entitled to receive the sum of (a) the Executives Officer's annual base salary at the time of his or her termination, and (b) the Executive Officer's most recent annual cash incentive compensation award, multiplied by two.
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The CIC Plan defines CIC to include any transaction as a result of which EQH ceases to control AB, or a successor entity that conducts the business of AB. However, there would not be a CIC unless, as a result of the transaction, an entity other than EQH controls AB (or a successor to its business).
Life Insurance
Our firm pays the premiums associated with life insurance policies purchased on behalf of our NEOs.

Consideration of Risk Matters in Determining Compensation

In 2019,2022, we considered whether our compensation practices for employees, including our NEOs, encourage unnecessary or excessive risk-taking and whether any risks arising from our compensation practices are reasonably likely to have a material adverse effect on our firm. For the reasons set forth below, we have determined that our current compensation practices do not create risks that are reasonably likely to have a material adverse effect on our firm.

As described above in “Compensation Elements for NEOs – Long-Term“Long-Term Incentive Compensation Awards,” long-term incentive compensation awards generally are denominated in AB Holding Units that are not distributed until subsequent years, so the ultimate value that the employee derives from the award depends on the long-term performance of the firm. Denominating the award in restricted AB Holding Units and deferring their delivery is intended to sensitize employees to risk outcomes and discourage them from taking excessive risks, whether relating to investments, operations, regulatory compliance and/or cyber security, that could lead to a decrease in the value of the AB Holding Units and/or an adverse effect on the firm's long-term prospects. Furthermore, and as noted above in “Compensation Elements for NEOs – Long-Term“Long-Term Incentive Compensation Awards,” generally all outstanding long-term incentive compensation awards include a provision permitting us to “claw-back” the unvested portion of an employee’s long-term incentive compensation award if the Compensation Committee determines that (i) the employee failed to adhere to existing risk management policies and (ii) as a result of the employee’s failure, there has been or reasonably could be expected to be a material adverse impact on our firm or the employee’s business unit.

Overview of Mr. Bernstein's Employment Agreement

Pursuant to the CEO Employment Agreement, Mr. Bernstein is servingserved as our President and CEO for an initial term that commenced on May 1, 2017 and endsended on May 1, 2020, provided that the2020. The initial term will automatically extendwas extended for one additional year on May 1, 2020 and automatically extends each anniversaryMay thereafter, unless the CEO Employment Agreement is terminated in accordance with its terms (“(the “Employment Term”).

The terms of the CEO Employment Agreement were the result of arm’s length negotiations between Mr. Bernstein and senior executives at AXA S.A., formerly AB's ultimate parent company ("AXA"), and EQH. The Board then approved the CEO Employment Agreement after having considered, among other things, the compensation package provided to Mr. Bernstein’s predecessor, the 2016 compensation and 2017 expected compensation of AB’s other executive officers and Mr. Bernstein’s compensation at his former employer.

The Compensation Committee, during its regular meeting held onin December 11, 2018, amended the CEO Employment Agreement such that any annual equity award granted to Mr. Bernstein in 2018 and subsequent years during the Employment Term will be granted in all respects in accordance with AB's compensation practices and policies generally applicable to AB's executive officers as in effect from time to time ("(the "SPB First Amendment").

Additionally, the Compensation Committee, during its regular meeting held onin December 10, 2019, further amended the CEO Employment Agreement by:

•increasing Mr. Bernstein’s severance payments if his employment is terminated involuntarily, without cause, from one year’s base salary and bonus to one and a half year’s base salary and bonus;

•excluding from the definition of change in control AB Holding ceasing to be publicly traded;

•removing from the circumstances that give rise to Mr. Bernstein’s ability to terminate the agreement for “good reason” his ceasing to be the CEO of a publicly traded entity; and

•eliminating Mr. Bernstein’s entitlement to a gross-up for any excise tax on his parachute payments, which would have been pertinent only if Mr. Bernstein had been terminated involuntarily prior to December 31, 2019.

Elements of Mr. Bernstein’sBernstein’s Compensation

Base Salary
Mr. Bernstein’s annual base salary under the CEO Employment Agreement has been, and continues to be, $500,000. This amount is consistent with our firm’s policy to keep base salaries of executives and other highly-compensated employees low in relation to total compensation. Any future increase to Mr. Bernstein's base salary is entirely at the discretion of the Compensation Committee.

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Cash Bonus
Under the CEO Employment Agreement, Mr. Bernstein wasis entitled to be paid a cash bonus at a target level of $3,000,000 in 2019,each year during the Employment Term, subject to review and increase from time to time by the Compensation Committee, in its sole discretion. As a result of a review of Mr. Bernstein's performance during 20192022 by the Compensation Committee, Mr. Bernstein was paid a cash bonus of $3,850,000.$4,925,000. In determining Mr. Bernstein's cash bonus, the Compensation Committee considered the progress AB made in advancing its Growth Strategy, Mr. Bernstein's performance in light of the target metrics included in his performance scorecard and Mr. Bernstein's individual achievements during 2019,2022, as described above.

Restricted AB Holding Units
Commencing in 2018 and during the remainder of the Employment Term, Mr. Bernstein is eligible to receive annual equity awards with a grant date fair value equal to $3,500,000, subject to review and increase by the Compensation Committee, in its sole discretion, in accordance with AB’s compensation practices and policies generally applicable to the firm’s executive officers as in effect from time to time. The Compensation Committee approved an equity award to Mr. Bernstein with a grant date fair value equal to $4,000,000$4,575,000 during its regular meeting held on December 10, 2019.November 2022. The Compensation Committee determined Mr. Bernstein's equity award based on the review process described above. As a result of the SPB First Amendment, the equity award granted to Mr. Bernstein in December 20192022 is subject to the same ICAP-related terms and conditions as awards granted to other executive officers at that time, which terms and conditions are described above in "Compensation Elements for NEOs - Long-Term Incentive Compensation Awards."

Perquisites and Benefits

Under the CEO Employment Agreement, Mr. Bernstein is eligible to participate in all benefit plans available to executive officers and, for his safety and accessibility, a company car and driver for business and personal use.

Severance and Change in Control Benefits

The CEO Employment Agreement includes severance and change-in-control provisions, which are highlighted below. These provisions also are described in a compensatory table below entitled, “Potential Payments upon Termination or Change in Control.” We believe that these severance and change-in-control provisions assist in retaining our CEO and, in the event of a change in control, provide protection to Mr. Bernstein so he is not distracted by personal or financial situations at a time when AB needs him to remain focused on his responsibilities.

If Mr. Bernstein is terminated without “cause” or resigns for “good reason” (as such terms are defined in the CEO Employment Agreement), and he signs and does not revoke a waiver and release of claims, he will receive the following:

•A cash payment equal to (a) the sum of his current base salary and his bonus opportunity amount, multiplied by one (1), if Mr. Bernstein resigns for "good reason," or (b) the sum of his current base salary and his bonus opportunity amount, multiplied by one and a half (1.5), if Mr. Bernstein's employment is terminated other than for "cause," or because of his death or disability;
•a pro rata bonus based on actual performance for the fiscal year in which the termination occurs;
Ÿif Mr. Bernstein resigns for "good reason," a cash payment equal to the sum of (a) his current base salary and (b) his bonus opportunity amount;
Ÿif Mr. Bernstein's employment is terminated other than for "cause," or because of his death or disability, a cash payment equal to the sum of (a) his current base salary and (b) his bonus opportunity amount, multiplied by 1.5;
Ÿa pro rata bonus based on actual performance for the fiscal year in which the termination occurs;
Ÿimmediate vesting of the outstanding portion of the equity award he was granted in May 2017;
Ÿdelivery of AB Holding Units in respect of the equity award he was granted in May 2017 (subject to any withholding requirements);
Ÿmonthly payments equal to the cost of COBRA coverage for the COBRA coverage period; and
Ÿfollowing the COBRA coverage period, access to participation in AB’s medical plans as in effect from time to time at Mr. Bernstein’s (or his spouse’s) sole expense.
•monthly payments equal to the cost of COBRA coverage for the COBRA coverage period; and

•following the COBRA coverage period, access to participation in AB’s medical plans as in effect from time to time at Mr. Bernstein’s (or his spouse’s) sole expense.
If, during the 12 months following a change in control, Mr. Bernstein is terminated without cause or resigns for good reason, he will receive the amounts described above, except that he will receive a cash payment equal to two (2) times the sum of (a) his current base salary and (b) his bonus opportunity amount.

In the event of a change in control or in the event that Mr. Bernstein’s employment is terminated because the CEO Employment Agreement is not renewed (other than for cause), the equity award he was granted in May 2017 will immediately vest and AB Holding Units in respect of any such award will be delivered by AB to him (subject to any withholding obligations).

In the event any payments constitute “golden parachute payments” within the meaning of Section 280G of the Code and would be subject to an excise tax imposed by Section 4999 of the Code, such payments will be reduced to the maximum amount that does not result in the imposition of such excise tax, but only if such reduction results in Mr. Bernstein receiving a higher net-after tax amount than he would receive absent such reduction.

Mr. Bernstein is subject to a confidentiality provision, in addition to covenants with respect to non-competition during his employment and six months thereafter and non-solicitation of customers and employees for 12 months following his termination of employment.

A change in control is defined as, among other things, EQH and its majority-owned subsidiaries ceasing to control the election of a majority of the Board.

Mr. Bernstein negotiated the severance and change-in-control provisions described immediately above to have the security and flexibility to focus on the business and preserve the value of his long-term incentive compensation. The Board, AXA and EQH
162AllianceBernstein
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determined that these provisions were reasonable and appropriate because they were necessary to recruit and retain Mr. Bernstein and provided Mr. Bernstein with effective incentives for future performance.

The Board, AXA and EQH also concluded that the change-in-control and termination provisions in the CEO Employment Agreement fit within AB’s overall compensation objectives because these provisions, which align with AB’s goal of providing its executives with effective incentives for future performance, also:
•permitted AB to recruit and retain a highly-qualified CEO;
•permitted AB to recruit and retain a highly-qualified CEO;
•aligned Mr. Bernstein’s long-term interests with those of AB’s Unitholders and clients;
•were consistent with AXA’s, EQH's and the Board’s expectations with respect to the manner in which AB and AB Holding would be operated during Mr. Bernstein’s tenure; and
•were consistent with the Board’s expectations that Mr. Bernstein would not be terminated without cause and that no steps would be taken that would provide him with the ability to terminate the agreement for good reason.
•aligned Mr. Bernstein’s long-term interests with those of AB’s Unitholders and clients;

•were consistent with AXA’s, EQH's and the Board’s expectations with respect to the manner in which AB and AB Holding would be operated during Mr. Bernstein’s tenure; and





•were consistent with the Board’s expectations that Mr. Bernstein would not be terminated without cause and that no steps would be taken that would provide him with the ability to terminate the agreement for good reason.
Compensation awarded by EQH to Mr. Bernstein,

 Ms. Burke, Mr. Erzan and Mr. Dibadj
In 2019, the board of directors ofFebruary 2022, EQH granted to Mr. Bernstein, in connection with his membership on and service to the EQH Management Committee:

•a restricted stock unit award (for EQH common stock) with a grant date fair value of $250,010;$400,033; and

•a performance share award (for EQH common stock) with a grant date fair value of $500,016, approximately half of which can be earned subject to EQH’s performance against specified non-GAAP financial targets and half of$600,029, which can be earned subject to EQH’s total shareholder return relative to its peer group;group.
Additionally, in February 2022, EQH granted to each of Ms. Burke, Mr. Erzan and Mr. Dibadj, in connection with their membership on and service to the EQH Management Committee:

•a restricted stock optionsunit award (for EQH common stock) with a grant date fair value of $250,004.$40,021; and

•a performance share award (for EQH common stock) with a grant date fair value of $60,014, which can be earned subject to EQH’s total shareholder return relative to its peer group.
Assumptions made in determining the EQH restricted stock unit and performance share figures discussed above are described in footnotes to the compensatory tables below entitled "Summary Compensation Table for 2022" and "Grants of Plan-Based Awards in 2022."
Mr. Bernstein, Ms. Burke and Mr. Erzan may receive additional equity or cash compensation from EQH in the future related to histheir continued membership on and service onto the EQH Management Committee.

 Mr. Dibadj, who resigned as our firm's CFO and Head of Strategy in March 2022 (and from the EQH Management Committee), forfeited his awards and is ineligible for additional awards.
CEO Pay Ratio

In 2019,2022, the compensation of Mr. Bernstein, our President and CEO, was approximately 6371 times the median pay of our employees, resulting in a 63:71:1 CEO Pay Ratio.

We identified our median employee by examining 20192022 total compensation for all individuals, excluding Mr. Bernstein, who were employed by our firm as of December 31, 2019,2022, the last day of our payroll year. We included all of our employees in this process, whether employed on a full-time or part-time basis. We did not make any assumptions or estimates with respect to total compensation, but we did adjust compensation paid to our non-U.S. employees during our 20192022 fiscal year based on the average monthly exchange rates for the 12-monththree-month period ending September 30, 20192022 (data compiled in fourth quarter) between the local currencies in which such employees are paid and U.SU.S. dollars. We define “total compensation” as the aggregate of base salary (plus overtime, as applicable), commissions (as applicable), cash bonus and the grant date fair value of long-term incentive compensation awards.

After identifying the median employee based on total compensation, we calculated total compensation in 20192022 for such employee using the same methodology we use for our NEOs as set forth below in the Summary Compensation Table for 20192022.

As illustrated in the table below, our 20192022 CEO Pay Ratio is 63:1:71:1:
 Seth BernsteinMedian Employee
Base salary ($)500,000
127,300
Cash bonus ($)3,850,000
22,914
Stock awards ($) (1)
5,000,030
—
All other compensation ($) (2)
94,859
—
   
Total ($)9,444,889
150,214
   
2019 CEO Pay Ratio63:1
 
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Seth BernsteinMedian Employee
Base salary ($)500,000 137,500 
Cash bonus ($)4,925,000 17,500 
Stock awards ($)(1)
5,575,062 — 
All other compensation ($)(2)
277,777 3,438 
Total ($)11,277,839 158,438 
2022 CEO Pay Ratio71:1
(1)Includes (i) an award granted by AB of restricted AB Holding Units with a grant date fair value of $4,000,000$4,575,000 and (ii) awards granted by EQH with an aggregate grant date fair value of $1,000,030,$1,000,062, as more fully described above in “Compensation awarded by EQH to Mr. Bernstein.”For additional information, please refer to the compensatory tables below in this Item 11.

(2)(2)For a description of Mr. Bernstein’s other compensation, please refer to the Summary Compensation Table for 2022 below. The median employee's other compensation consists of a $3,438 match under the AB Profit Sharing Plan.
For a description of Mr. Bernstein’s other compensation, please refer to the Summary Compensation Table for 2019 below.

Other Compensation-Related Matters

AB and AB Holding are, respectively, private and public limited partnerships. They are subject to taxes other than federal and state corporate income tax ((see see “Structure-related“Structure-related Risks” in Item 1A and Note 21 to AB’s consolidated financial statements in Item 8). Accordingly, Section 162(m) of the Code, which limits tax deductions relating to executive compensation otherwise available to an entity taxed as a corporation, is not applicable to either AB or AB Holding for 2019.2022.

Compensation Committee Interlocks and Insider Participation

Mr. Pearson is a director and the President and CEO of EQH, the parent company of the General Partner.

No executive officer of AB serves as (i) a member of a compensation committee or (ii) a director of another entity, an executive officer of which serves as a member of AB’s Compensation Committee.

Compensation Committee Report

The members of the Compensation Committee reviewed and discussed with management the Compensation Discussion and Analysis set forth above and, based on such review and discussion, recommended to the Board its inclusion in this Form 10-K.

Kristi Matus (Chair)Daniel Kaye
Mark Pearson
Kristi A. Matus (Chair)164Paul L. AudetAllianceBernstein
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Ramon de OliveiraDaniel G. KayeSummary Compensation Table for 2022
Mark Pearson












Summary Compensation Table for 2019

Total compensation of our NEOs for 2019, 20182022, 2021 and 2017,2020, as applicable, is as follows:
Name and Principal PositionYearSalary
($)		Bonus
($)
Stock Awards(1)(2)
($)
Option Awards(3) ($)
Pension
($)		All Other
Compensation
($)		Total
($)
Seth Bernstein(4)(5)
President and CEO
2022500,000 4,925,000 5,575,062 — — 277,777 11,277,839 
2021500,000 5,575,000 6,075,000 — — 142,813 12,292,813 
2020500,000 4,015,000 4,585,051 250,003 — 52,509 9,402,563 
Kate Burke(6)
COO and CFO
2022400,000 2,050,000 1,700,035 — — 16,216 4,166,251 
2021400,000 2,275,000 1,925,000 — — 15,455 4,615,455 
2020300,000 1,665,000 1,285,000 — — 19,517 3,269,517 
Onur Erzan(6)(7)
Head of Global Client Group and Private Wealth
2022400,000 1,955,851 1,605,886 — — 11,017 3,972,754 
Karl Sprules(8)
Head of Global Technology and Operations
2022 400,000 1,555,0001,105,000 — 122,835 17,860 3,200,695 
2021400,000 1,725,000 1,275,000 — 42,040 3,442,040 
Mark Manley(7)
Global Head of Compliance and General Counsel
2022300,000 780,000 345,000 — 482,194 26,898 1,934,092 
Bill Siemers(7)
Controller and Chief Accounting Officer (and Former Interim CFO)
2022 300,000 525,000 1,175,034 — — 17,340 2,017,374 
Ali Dibadj(6)(9)
Former CFO & Head of Strategy
2022195,385 — 100,035 — — 291 295,711 
2021400,000 2,025,000 1,675,000 — — 15,130 4,115,130 
2020400,000 945,000 665,000 — — 14,880 2,024,880 
(1)The figures in the “Stock Awards” column provide the aggregate grant date fair value of the awards calculated in accordance with FASB ASC Topic 718. For the assumptions made in determining the AB Holding Unit award values, see Note 19 to AB’s consolidated financial statements in Item 8. Assumptions made in determining the EQH restricted stock unit and performance share figures in the "Stock Awards" column are set forth in the EQH 2022 Long-Term Incentive Compensation Program and described in a footnote to the "Grants of Plan-Based Awards in 2022" table below.
(2)See “Grants of Plan-Based Awards in 2022” below.
(3)The figures in the "Option Awards" column provides the grant date fair values of Mr. Bernstein's award (which was issued by EQH) calculated in accordance with FASB ASC Topic 718. The fair value of EQH stock options is calculated by EQH using the Black-Scholes option pricing model. The expected EQH dividend rate is based on market consensus. EQH share price volatility is estimated on the basis of implied volatility, which is checked by EQH against an analysis of historical volatility to ensure consistency. The effect of expected early exercise is accounted for through the use of an expected life assumption based on historical data.
(4)See "Overview of Mr. Bernstein's Employment Agreement" and "Compensation Awarded by EQH to Mr. Bernstein, Ms. Burke, Mr. Erzan and Mr. Dibadj" above in CD&A for a description of Mr. Bernstein's compensatory elements. Please be advised that Mr. Bernstein's compensation also is disclosed by EQH.
(5)The "Stock Awards" column for 2022 includes the grant date fair value of the restricted stock award (grant date fair value of $400,033) and the performance share award (grant date fair value of $600,029) Mr. Bernstein received from EQH in February 2022. For 2021, this column includes the grant date fair value of the restricted stock unit award (grant date fair value of $340,000) and the performance share award (grant date fair value of $510,000) Mr. Bernstein received from EQH in February 2021. For 2020, this column includes the grant date fair value of the restricted stock unit award (grant date fair value of $250,019) and the performance share award (grant date fair value of $500,031) Mr. Bernstein received from EQH in February 2020.
(6)The "Stock Awards" column for 2022 includes the grant date fair value of the restricted stock unit award (grant date fair value of $40,021) and the performance share award (grant date fair value of $60,014) Ms. Burke, Mr. Erzan and Mr. Dibadj each received from EQH in February 2022. For 2021, this column includes the grant date fair value of the restricted stock unit award (grant date fair value of $40,000) and the performance share award (grant date fair value of $60,000) Ms. Burke and Mr. Dibadj each received from EQH in February 2021.
Name and
Principal  Position
 Year Salary($) Bonus($) 
Stock Awards(1)(2)
($)
 
Option Awards(2)(3) ($)
 
All Other
Compensation ($)
 Total($)
Seth P. Bernstein(4)(5)
 2019 500,000
 3,850,000
 4,750,026
 250,004
 94,859
 9,444,889
President and CEO 2018 500,000
 3,500,000
 4,740,000
 —
 71,623
 8,811,623
  2017 334,615
 3,000,000
 3,500,003
 —
 24,631
 6,859,249
               
James A. Gingrich(6)
 2019 400,000
 1,100,000
 —
 —
 140,025
 1,640,025
Chief Operating Officer 2018 400,000
 1,000,000
 14,000,019
 —
 39,912
 15,439,931
  2017 400,000
 1,000,000
 20,986,759
 —
 37,801
 22,424,560
               
Kate C. Burke(7)
 2019 300,000
 1,415,000
 1,035,000
 —
 60,716
 2,810,716
Chief Administrative Officer 2018 300,000
 785,000
 4,440,009
 —
 14,200
 5,539,209
  2017 300,000
 740,000
 410,000
 —
 14,266
 1,464,266
               
Laurence E. Cranch(7)
 2019 400,000
 940,000
 660,000
 —
 17,708
 2,017,708
General Counsel 2018 400,000
 940,000
 4,660,009
 —
 92,276
 6,092,285
  2017 400,000
 940,000
 660,000
 —
 17,208
 2,017,208
               
John C. Weisenseel(7)
 2019 375,000
 1,147,500
 842,500
 —
 15,677
 2,380,677
CFO 2018 375,000
 1,147,500
 4,842,509
 —
 68,433
 6,433,442
  2017 375,000
 1,090,000
 785,000
 —
 15,177
 2,265,177

(1)2022 Annual Report
The figures in the “Stock Awards” column provide the aggregate grant date fair value of the awards calculated in accordance with FASB ASC Topic 718. For the assumptions made in determining these values, see Note 19 to AB’s consolidated financial statements in Item 8.
165
(2)
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See “Grants of Plan-based Awards in 2019” below for information regarding the 2019 option award granted by EQH to Mr. Bernstein.
(3)
The figure in the "Option Awards" column provides the grant date fair value of Mr. Bernstein's award (which was issued by EQH) calculated in accordance with FASB ASC Topic 718. The fair value of EQH stock options is calculated by EQH using the Black-Scholes option pricing model. The expected EQH dividend rate is based on market consensus. EQH share price volatility is estimated on the basis of implied volatility, which is checked by EQH against an analysis of historical volatility to ensure consistency. The effect of expected early exercise is accounted for through the use of an expected life assumption based on historical data.
(4)
See "Overview of Mr. Bernstein's Employment Agreement" and "Compensation Awarded by EQH to Mr. Bernstein" above for a description of Mr. Bernstein's compensatory elements. Mr. Bernstein's compensation also is disclosed by EQH.
(5)
The "Stock Awards" column for 2019 includes the grant date fair value of the restricted stock unit award (grant date fair value of $250,010) and the performance share award (grant date fair value of $500,016) Mr. Bernstein received from EQH in February 2019. The "Stock Awards" column for 2018 includes the grant date fair value of the transaction incentive award Mr. Bernstein received from EQH in May 2018, which had a grant date fair value of $740,000.
(6)
See "Long-Term Incentive Compensation Awards - Mr. Gingrich's Compensation" above for a description of Mr. Gingrich's compensatory elements.
(7)
See "Relocation-related Performance Awards" above for a description of the restricted AB Holding Unit awards granted to Ms. Burke, Mr. Cranch and Mr. Weisenseel in April 2018.


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(7)We have not provided 2021 or 2020 compensation for Messrs. Erzan, Manley or Siemers; they were not deemed NEOs in those years.

(8)We have not provided 2020 compensation for Mr. Sprules as he was not deemed to be a NEO in that year.







(9)Mr. Dibadj resigned as our firm's CFO and Head of Strategy in March 2022 to become the CEO at another publicly traded company. As a result, he forfeited the EQH awards granted to him in 2022 and the unvested portions of the EQH awards granted to him in 2021.
The “All Other Compensation” column includes the aggregate incremental cost to our company of certain other expenses and perquisites. For 2019,2022, this column includes the following:
NamePersonal
Use of Car
and Driver
($)		Contributions
to Profit
Sharing Plan
($)		Life
Insurance
Premiums
($)
Other(2)
($)
Seth Bernstein258,939 (1)15,250 3,564 24 
Kate Burke— 15,250 966 — 
Onur Erzan— 10,000 630387
Karl Sprules— 15,250 2,610 — 
Mark Manley— 15,000 11,484 414
Bill Siemers— 15,000 1,980 360 
Ali Dibadj— — 291 — 
(1)The amount reflects the incremental cost to us attributable to commuting and other non-business use. We made available to Mr. Bernstein a car and driver for security and business purposes. Car and driver services were contracted through a third party. The cost of providing a car is determined annually and includes, as applicable, driver compensation, annual car lease, insurance cost and various miscellaneous expenses such as fuel and car maintenance.
(2)These amounts represent stipends paid to NEOs to help cover the cost of a mobile phone; these stipends are paid to employees generally as well.
Name 
Personal Use of Car and Driver
($)
 Contributions to Profit Sharing Plan ($) 
Life Insurance Premiums
($)
 
Relocation and/or Financial Planning Assistance
($)
 Other ($)
Seth P. Bernstein 54,791
(1) 
14,000
 2,322
 23,747
 —
James A. Gingrich —
 14,000
 2,772
 123,253
 —
Kate C. Burke —
 14,000
 450
 46,266
 —
Laurence E. Cranch —
 14,000
 3,708
 —
 —
John C. Weisenseel —
 14,000
 1,677
 —
 —

(1)
166		The amount reflects the incremental cost to us attributable to commuting and other non-business use. We made available to Mr. Bernstein in 2019 a car and driver for security and business purposes. Car and driver services were contracted through a third party. The cost of providing a car is determined annually and includes, as applicable, driver compensation, annual car lease, insurance cost and various miscellaneous expenses such as fuel and car maintenance.AllianceBernstein

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Grants of Plan-basedPlan-Based Awards in 2019

2022
Grants of awards under the 2017 Plan, our equity compensation plan, during 20192022 made to our NEO are as follows (we also discuss awards issued by EQH to Mr. Bernstein)Bernstein, Ms. Burke, Mr. Erzan and Mr. Dibadj):
Grant DateAll Other
Stock Awards:
Number of Shares
of Stock
or Units
(#)
Grant Date
Fair Value
of Stock
Awards(1)
($)
Performance Based EQH Awards(3)
NameThreshold (#)Target
(#)		Maximum (#)
Seth Bernstein(2)(3)
12/12/2022117,791 4,575,000 
2/16/202211,565 400,033 
2/16/202216,217 600,029 4,054 16,217 32,434 
Kate Burke(2)(3)
12/12/202241,195 1,600,000 
2/16/20221,157 40,021 
2/16/20221,622 60,014 406 1,622 3,244 
Onur Erzan(2)(3)
12/12/202238,771 1,505,851 
2/16/20221,157 40,021 
2/16/20221,622 60,014 406 1,622 3,244 
Karl Sprules(2)
12/12/202228,450 1,105,000 
Mark Manley(2)
12/12/20228,883 345,000 
Bill Siemers(2)(5)
12/12/20224,506 175,000 
3/24/202221,873 1,000,034 
Ali Dibadj(3)(4)
2/16/20221,157 40,021 
2/16/20221,622 60,014 
Name Grant Date 
All Other Stock Awards:
Number of Shares of Stock
or Units (#)
 
Grant Date Fair Value
of Stock Awards(1) ($)
Seth P. Bernstein(2)(3)
 12/10/2019 139,131
 4,000,000
  2/14/2019 13,341
 250,010
  2/14/2019 12,710
 250,006
  2/14/2019 13,341
 250,010
James A. Gingrich(2)
 12/10/2019 —
 —
Kate C. Burke(2)
 12/10/2019 36,000
 1,035,000
Laurence E. Cranch(2)
 12/10/2019 22,957
 660,000
John C. Weisenseel(2)
 12/10/2019 29,305
 842,500
(1)This column provides the aggregate grant date fair value of the awards calculated in accordance with FASB ASC Topic 718. For the assumptions made in determining the AB Holding Unit values, see Note 19 to AB's consolidated financial statements in Item 8.

(1)
(2)As discussed above in “Overview of 2022 Incentive Compensation Program” and “Compensation Elements for NEOs—Long-Term Incentive Compensation Awards,” long-term incentive compensation awards granted in December 2022 to our NEOs were denominated in restricted AB Holding Units. These awards vest in equal annual increments on each of December 1, 2023, 2024 and 2025. These awards are shown in the “All Other Stock Awards” column of this table, the “Stock Awards” column of the Summary Compensation Table for 2022 and the “AB Holding Unit Awards” columns of the Outstanding Equity Awards at 2022 Fiscal Year-End Table.
(3)In February 2022, EQH granted to each of Mr. Bernstein, Ms. Burke, Mr. Erzan and Mr. Dibadj (i) a restricted stock unit award with a grant date fair value of $400,033, $40,021, $40,021, and $40,021, respectively, and (ii) a performance share award with a grant date fair value of $600,029, $60,014, $60,014 and $60,014, respectively, which can be earned subject to EQH's total shareholder return ("TSR") relative to its peer group. TSR is the total amount a company returns to investors during a designated period, including both capital gains and dividends. The number of performance shares that are earned will be determined at the end of the performance period (December 2024) by multiplying the number of unearned performance shares by one of the following performance factors: 200% if EQH's TSR relative to its peers is in the 87.5th percentile or greater; 100% if in the 50th percentile; 25% if in the 30th percentile; and nothing if falls below the 30th percentile. EQH performance shares receive dividend equivalents subject to the same vesting schedule and performance conditions as the performance shares themselves. The restricted stock unit awards, which vest in equal annual increments on each of February 28, 2023, 2024 and 2025, subject to continued service, increase or decrease in value depending on the price of an EQH common share. EQH restricted stock units receive dividend equivalents subject to the same vesting schedule and other requirements.
(4)Mr. Dibadj forfeited these awards.
(5)The award granted to Mr. Siemers in March 2022 cliff vests in February 2024 subject to Mr. Siemers's continued employment.
This column provides the aggregate grant date fair value of the awards calculated in accordance with FASB ASC Topic 718. For the assumptions made in determining these values, see Note 19 to AB's consolidated financial statements in Item 8.
(2)
As discussed above in “Overview of 2019 Incentive Compensation Program” and “Compensation Elements for NEOs—Long-Term Incentive Compensation Awards,” long-term incentive compensation awards granted in 2019 to our NEOs were denominated in restricted AB Holding Units. These awards are shown in the “All Other Stock Awards” column of this table, the “Stock Awards” column of the Summary Compensation Table for 2019 and the “AB Holding Unit Awards” columns of the Outstanding Equity Awards at 2019 Fiscal Year-End Table.
(3)
In February 2019, EQH granted to Mr. Bernstein (i) a restricted stock award with a grant date fair value of $250,010 and (ii) a performance share award with a grant date fair value of $500,016, approximately half of which can be earned subject to EQH's performance against specified non-GAAP financial targets and half of which can be earned subject to EQH's total shareholder return relative to its peer group.

In 2019,2022, the number of restricted AB Holding Units comprising year-end long-term incentive compensation awards granted to each NEO was determined based on the closing price of an AB Holding Unit as reported for NYSE composite transactions on December 10, 2019,12, 2022, the date onas of which the Compensation Committee approved the awards. At the time of these awards, the Compensation Committee consisted of Ms. Matus (Chair) and Messrs. Audet, de Oliveira, Kaye and Pearson; the Section 16 Subcommittee, which approved awards to our NEOs, consisted of Ms. Matus (Chair) and Messrs. Audet, de Oliveira andMr. Kaye. For further information regarding the material terms of such awards, including the vesting terms and the formulas or criteria to be applied in determining the amounts payable, please refer to "Overview of 20192022 Incentive Compensation Program," "Other Factors Considered When Determining NEO Compensation,"Program" and "Compensation Elements for NEOs" above.

2022 Annual Report167
Table of Contents
Part III
Outstanding Equity Awards at 20192022 Fiscal Year-End

Outstanding equity awards held by our NEOs as of December 31, 20192022 are as follows:
 Option AwardsAB Holding Unit and/or EQH Awards
NameNumber of
Securities
Underlying
Unexercised
Options
Exercisable
(#)		Number of
Securities
Underlying
Unexercised
Options
Unexercisable
(#)		Option
Exercise
Price
($)		Option
Expiration
Date		Number of
 Shares
or Units of
Stock That
Have Not
 Vested
 (#)
Market 
Value of
 Shares or
Units of
Stock That
 Have Not
Vested(12)
($)
Seth Bernstein(1)(2)(3)(5)
65,446 — $18.74 2/14/2029280,690 9,647,310 
38,140 19,069 23.18 2/26/203024,308 697,634 
— — — — 35,427 1,016,755 
Kate Burke(4)(5)(6)
— — — — 94,095 3,234,029 
— — — — 2,192 62,909 
— — — — 923 26,490 
Onur Erzan(4)(5)(7)
— — — — 137,265 4,717,805 
— — — — 2,192 62,909 
— — — — 923 26,490 
Karl Sprules(8)
— — — — 72,205 2,481,682 
Mark Manley(9)
— — — — 21,800 749,269 
Bill Siemers(10)
— — — — 31,760 1,091,585 
Ali Dibadj(11)
— — — — — — 
(1)Mr. Bernstein was awarded: (i) 117,791 restricted AB Holding Units in December 2022 that are scheduled to vest in equal increments on each December 1, 2023, 2024 and 2025; (ii) 102,572 restricted AB Holding Units in December 2021, one-third of which vested on December 1, 2022, and the remainder of which is scheduled to vest in equal increments on each of December 1, 2023 and 2024; (iii) 119,471 restricted AB Holding Units in December 2020, of which 25% vested on each of December 1, 2021 and 2022, and the remainder of which is scheduled to vest in equal increments on each of December 1, 2023 and 2024; and (iv) 139,131 restricted AB Holding Units in December 2019, of which 25% vested on each of December 1, 2020, 2021 and 2022, and the remainder of which is scheduled to vest on December 1, 2023. For further information, see “Overview of Mr. Bernstein's Employment Agreement” above.
(2)EQH restricted stock unit awards, which are described for Mr. Bernstein in the second line of data in the above table, will vest ratably over their three-year vesting period subject to continued employment during the vesting period. EQH performance share awards, which are described in the third line of data in the above table, cliff vest on the third anniversary of grant date subject to meeting the applicable performance criteria. In February 2022, 2021 and 2020, EQH granted to Mr. Bernstein (i) a restricted stock unit award with a grant date fair value of $400,033, $340,000 and $250,019, respectively, and (ii) a performance share award with a grant date fair value of $600,029, $510,000 and $500,031, respectively. The performance share awards granted in 2022 and 2021 can be earned subject to EQH's TSR relative to its peer group. Approximately half of the performance share award granted in 2020 can be earned subject to EQH's performance against specified non-GAAP financial targets (specifically, non-GAAP return-on-equity targets), while the other half has been earned subject to EQH's TSR relative to its peer group. Please see the table above entitled "Grants of Plan-Based Awards in 2022" for additional information regarding the EQH awards.
(3)The option awards described in the table were issued by EQH and calculated in accordance with FASB ASC Topic 718. The fair value of EQH stock options is calculated by EQH using the Black-Scholes option pricing model. The expected EQH dividend rate is based on market consensus. EQH share price volatility is estimated on the basis of implied volatility, which is checked by EQH against an analysis of historical volatility to ensure consistency. The effect of expected early exercise is accounted for through the use of an expected life assumption based on historical data.
(4)EQH restricted stock unit awards, which are described for each of Ms. Burke and Mr. Erzan in their respective second lines of data in the above table, will vest ratably over their three-year vesting period subject to continued employment during the vesting period. EQH performance share awards, which are described in the third line of data in the above table, cliff vest on the third anniversary of grant date subject to meeting the applicable performance criteria. In February 2022 and 2021, respectively, EQH granted to each of Ms. Burke and Mr. Erzan (i) a restricted stock unit award with a grant date fair value of $40,021 and $40,000, respectively and (ii) a performance share award with a grant date fair value of $60,014 and $60,000, respectively, which can be earned subject to EQH's total shareholder return relative to its peer group. Please see the table above entitled "Grants of Plan-Based Awards in 2022" for additional information regarding the EQH awards.
(5)For further information regarding the equity awards granted to Mr. Bernstein, Ms. Burke and/or Mr. Erzan by EQH, please see "Compensation awarded by EQH to Mr. Bernstein, Ms. Burke, Mr. Erzan and Mr. Dibadj" above in CD&A.
  Option Awards AB Holding Unit and/or EQH Awards
Name 
Number of Securities
Underlying Unexercised
Options Exercisable (#)
 Number of Securities Underlying Unexercised Options Unexercisable (#) Option Exercise Price ($) Option Expiration Date 
Number of Shares
or Units of Stock That
Have Not Vested (#)
 
Market 
Value of Shares or
Units of
Stock That Have Not Vested(8) ($)
Seth P. Bernstein(1)(2)(3)
 —
 65,446
 $18.74 2/14/2029
 333,885
 10,103,360
  —
 —
 —
 —
 39,392
 750,026
James A. Gingrich(4)
 —
 —
 —
 —
 433,612
 13,121,099
Kate C. Burke(5)
 —
 —
 —
 —
 211,940
 6,413,304
Laurence E. Cranch(6)
 —
 —
 —
 —
 213,106
 6,448,588
John C. Weisenseel(7)
 —
 —
 —
 —
 227,760
 6,892,018

(1)
168
Subject to accelerated vesting clauses in the CEO Employment Agreement (AllianceBernsteine.g., immediate vesting upon a “change in control” of our firm), the award granted to Mr. Bernstein in May 2017 vests ratably on each of the first four anniversaries of May 1, 2017, commencing May 1, 2018, provided, with respect to each installment, Mr. Bernstein continues to be employed by AB on the vesting date. However, Mr. Bernstein elected to delay delivery of all of the restricted AB Holding Units until May 1, 2021, the final vesting date, subject to acceleration upon a “change in control” of our firm and certain qualifying events of termination of employment. Additionally, Mr. Bernstein was awarded (i) 139,131 restricted AB Holding Units in December 2019, which are scheduled to vest in equal increments on each of December 1, 2020, 2021, 2022 and 2023 and (ii)149,868 restricted AB Holding Units in December 2018, of which 25% vested on December 1, 2019 and the remainder of which is scheduled to vest in equal increments on each of December 1, 2020, 2021 and 2022. For further information, see “Overview of Mr. Bernstein's Employment Agreement” above.
(2)
Table of Contents
Part III
(6)Ms. Burke was awarded: (i) 41,195 restricted AB Holding Units in December 2022 that are scheduled to vest in equal increments on each of December 1, 2023, 2024 and 2025; (ii) 35,827 restricted AB Holding Units in December 2021, one-third of which vested on December 1, 2022, and the remainder of which is scheduled to vest in equal increments on each of December 1, 2023 and 2024; (iii) 40,032 restricted AB Holding Units in December 2020, of which 25% vested on each of December 1, 2021 and 2022, and the remainder of which is scheduled to vest in equal increments on each of December 1, 2023 and 2024; and (iv) 36,000 restricted AB Holding Units in December 2019, of which 25% vested on each of December 1, 2020, 2021 and 2022, and the remainder of which is scheduled to vest on December 1, 2023.
(7)Mr. Erzan was awarded 38,771 restricted AB Holding Units in December 2022 that are scheduled to vest in equal increments on each of December 1, 2023, 2024 and 2025. The total AB Holding Unit figure set forth in the table includes AB Holding Units granted in a year prior to when Mr. Erzan was deemed to be a NEO.
(8)Mr. Sprules was awarded (i) 28,450 restricted AB Holding Units in December 2022 that are scheduled to vest in equal increments on each of December 1, 2023, 2024 and 2025; and (ii) 25,030 restricted AB Holding Units in December 2021, of which one-third vested on December 1, 2022, and the remainder of which is scheduled to vest in equal increments on each of December 1, 2023 and 2024. The total AB Holding Unit figure set forth in the table includes AB Holding Units granted in years prior to when Mr. Sprules was deemed to be a NEO.
(9)Mr. Manley was awarded 8,883 restricted AB Holding Units in December 2022 that are scheduled to vest in equal increments on each of December 1, 2023, 2024 and 2025. The total AB Holding Unit figure set forth in the table includes AB Holding Units granted in years prior to when Mr. Manley was deemed to be a NEO.
(10)Mr. Siemers was awarded: (i) 4,506 restricted AB Holding Units in December 2022 that are scheduled to vest in equal increments on each of December 1, 2023, 2024 and 2025; and (ii) 21,873 restricted AB Holding Units in March 2022 that are scheduled to cliff vest in February 2024. The total AB Holding Unit figure set forth in the table includes AB Holding Units granted in years prior to when Mr. Siemers was deemed to be a NEO.
(11)Mr. Dibadj had no outstanding awards as of December 31, 2022, because he forfeited his unvested AB Holding Unit and EQH share awards as a result of his resignation in March 2022.
(12)The market values of restricted AB Holding Units set forth in this column were calculated assuming a price per AB Holding Unit of $34.37, which was the closing price on the NYSE of an AB Holding Unit on December 30, 2022, the last trading day of AB's last completed fiscal year. The market values of EQH shares set forth in this column were calculated assuming a price per share of $28.70, which was the closing price on the NYSE of an EQH share on December 30, 2022.
EQH awarded to Mr. Bernstein options to buy 65,446 EQH shares, which are scheduled to vest in equal increments on each of February 14, 2020, 2021 and 2022.
(3)
For further information regarding the equity awards granted to Mr. Bernstein by EQH, please see "Compensation awarded by EQH to Mr. Bernstein" above.
(4)
Mr. Gingrich was awarded (i) 531,310 restricted AB Holding Units in April 2018, of which 25% vested on December 1, 2019 and the remainder of which is scheduled to vest in equal increments on each of December 1, 2020, 2021 and 2022, and (ii) 140,517 restricted AB Holding Units in December 2016, of which 25% vested on each of December 1, 2017, 2018 and 2019, and the remainder of which is scheduled to vest on December 1, 2020. See "Long-Term Incentive Compensation Awards - Mr. Gingrich's Compensation" above.
(5)
Ms. Burke was awarded (i) 36,000 restricted AB Holding Units in December 2019, which are scheduled to vest in equal increments on each of December 1, 2020, 2021, 2022 and 2023, (ii) 16,486 restricted AB Holding Units in December 2018, of which 25% vested on December 1, 2019 and the remainder of which is scheduled to vest in equal increments on each of December 1, 2020, 2021 and 2022, (iii) 151,803 restricted AB Holding Units in April 2018, which are scheduled to cliff vest on December 1, 2022, (iv) 16,433 restricted AB Holding Units in December 2017, of which 25% vested on each of December 1, 2018 and 2019 and the remainder of which is scheduled to vest in equal increments on each of December 1, 2020 and 2021, and (v) 14,224 restricted AB Holding Units in December 2016, of which 25% vested on each of December 1, 2017, 2018 and 2019 and the remainder of which is scheduled to vest on December 1, 2020.
(6)
Mr. Cranch was awarded (i) 22,957 restricted AB Holding Units in December 2019, which are scheduled to vest in equal increments on each of December 1, 2020, 2021, 2022 and 2023, (ii) 24,728 restricted AB Holding Units in December 2018, of which 25% vested on December 1, 2019 and the remainder is scheduled to vest in equal increments on each of December 1, 2020, 2021 and 2022, (iii) 151,803 restricted AB Holding Units in April 2018, which are scheduled to cliff vest on December 1, 2022, (iv) 26,453 restricted AB Holding Units in December 2017, of which 25% vested on each of December 1, 2018 and 2019, and the remainder is scheduled to vest in equal increments on each of December 1, 2020 and 2021, and (v) 26,293 restricted AB Holding Units in December 2016, of which 25% vested on each of December 1, 2017, 2018 and 2019, and the remainder of which is scheduled to vest on December 1, 2020.
(7)
Mr. Weisenseel was awarded (i) 29,305 restricted AB Holding Units in December 2019, which are scheduled to vest in equal increments on each of December 1, 2020, 2021, 2022 and 2023, (ii) 31,566 restricted AB Holding Units in December 2018, of which 25% vested on December 1, 2019 and the remainder is scheduled to vest in equal increments on each of December 1, 2020, 2021 and 2022, (iii) 151,803 restricted AB Holding Units in April 2018, which are scheduled to cliff vest on December 1, 2022, (iv) 31,463 restricted AB Holding Units in December 2017, 25% of which vested on each of December 1, 2018 and 2019, and the remainder of which is scheduled to vest in equal increments on each of December 1, 2020 and 2021, and (v) 28,987 restricted AB Holding Units in December 2016, of which 25% vested on each of December 1, 2017, 2018 and 2019 and the remainder of which is scheduled to vest on December 1, 2020.
(8)
The market values of restricted AB Holding Units set forth in this column were calculated assuming a price per AB Holding Unit of $30.26, which was the closing price on the NYSE of an AB Holding Unit on December 31, 2019, the last trading day of AB's last completed fiscal year.

Option Exercises and AB Holding Units (and EQH Shares) Vested in 2019

2022
AB Holding Units and EQH shares held by our NEOs that vested during 20192022 are as follows:
 AB Holding and EQH Option AwardsAB Holding Unit and EQH Share Awards
NameNumber of AB Holding Units or EQH Shares Acquired on Exercise
(#)		Value Realized
on Exercise
($)		Number of AB
Holding Units or EQH Shares
Acquired on
Vesting
(#)		Value Realized
on Vesting
 ($)
Seth Bernstein(1)
— — 199,915 7,698,133 
Kate Burke(2)
— — 187,363 7,621,786 
Onur Erzan(2)
— — 12,142 490,290 
Karl Sprules— — 184,363 7,503,554 
Mark Manley— — 46,384 1,887,811 
Bill Siemers— — 21,291 866,562 
Ali Dibadj(2)
— — 489 16,001 
(1)Includes 63,607 EQH shares with a value of $2,150,398 that vested during 2022.
(2)Includes 489 EQH shares with a value of $16,001 that vested during 2022.

  AB Holding Option Awards AB Holding Unit Awards
Name Number of AB Holding Units Acquired on Exercise (#) Value Realized on Exercise ($) 
Number of AB
Holding
Units Acquired on
Vesting (#)
 
Value Realized on
Vesting ($)
Seth P. Bernstein —
 —
 37,467
 2,301,779
James A. Gingrich —
 —
 502,256
 14,550,356
Kate C. Burke —
 —
 13,806
 399,960
Laurence E. Cranch —
 —
 26,265
 760,897
John C. Weisenseel —
 —
 29,629
 858,352

2022 Annual Report169
Table of Contents
Non-Qualified Deferred CompensationPart III
Pension Benefits
NamePlan Name
Number of Years of Credited Service(2)
Present Value of Accumulated Benefit(3)
Payments During Last Fiscal Year
Karl Sprules (1)
AB Retirement Plan11122,835 — 
Mark Manley(1)
AB Retirement Plan25482,194 — 
(1)We have provided information for 2019

VestedMessrs. Sprules and unvested non-qualified deferred compensation contributions, earnings and distributionsManley; they are the only of our NEOs during 2019who participate in the AB Retirement Plan. For additional information regarding the AB Retirement Plan, including actuarial assumptions and their non-qualified deferred compensation plan balancespotential early retirement benefits, see "Defined Benefit Plan" above in CD&A and Note 18 to AB's consolidated financial statements in Item 8 of this Form 10-K.
(2)Effective December 31, 2008, benefit accruals were frozen under the AB Retirement Plan.
(3)Actuarial present value of accumulated benefits as of December 31, 2019 are as follows:

Name 
Executive
Contributions in Last FY ($)
 
Aggregate
Earnings in Last FY ($)
 
Aggregate
Withdrawals/
Distributions ($)
 
Aggregate
Balance at
Last FYE ($)
Seth P. Bernstein —
 —
 —
 —
James A. Gingrich(1)
 —
 99,291
 (221,427) 726,610
Kate C. Burke —
 —
 —
 —
Laurence E. Cranch —
 —
 —
 —
John C. Weisenseel —
 —
 —
 —


(1)2022 using assumptions consistent with ASC 715 calculations, with the following exceptions: (i) retirement age assumed to be the Nominal Retirement Age (as defined in the AB Retirement Plan); and (ii) no pre-retirement mortality, disability or termination assumed.
Amounts shown reflect Mr. Gingrich's interests from pre-2009 awards under the predecessor plan to the Incentive Compensation Program, under which plan participants were permitted to allocate their awards (i) among notional investments in AB Holding Units, certain of the investment services we provided to clients and a money market fund, or (ii) under limited circumstances, in options to buy AB Holding Units. For additional information about the Incentive Compensation Program, see Notes 2 and 19 to AB’s consolidated financial statements in Item 8.













Potential Payments upon Termination or Change in Control

Estimated payments and benefits to which our NEOs would have been entitled upon a change in control of AB or the specified qualifying events of termination of employment as of December 31, 20192022 are as follows:
Name and Trigger Event
Cash
Payments(1)
($)
Acceleration of
Restricted
AB Holding Unit
Awards(2)
($)
Other
Benefits(3)
($)
Seth Bernstein
Change in control— 9,647,310 — 
Termination by Mr. Bernstein for good reason(4)
3,500,000 9,647,310 19,279 
Termination of Mr. Bernstein's employment by AB other than for Cause or due to Death or Disability(5)(6)(7)
5,250,000 9,647,310 19,279 
Change in control + termination by Mr. Bernstein for good reason or termination of Mr. Bernstein's employment without cause(4)
7,000,000 9,647,310 19,279 
Resignation (complies with applicable agreements and restrictive covenants) under ICAP(8)
— 9,647,310 — 
Death or disability(7)
— 9,647,310 19,279 
Kate Burke
Change in control— 3,234,029 — 
Change in control + employment terminated by AB other than for cause, termination by Ms. Burke for good reason, or termination due to death or disability4,900,000 3,234,029 — 
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP)(7)(8)
— 3,234,029 — 
Onur Erzan
Change in control— 4,717,805 — 
Change in control + employment terminated by AB other than for cause, termination by Mr. Erzan for good reason, or termination due to death or disability4,711,702 4,717,805 — 
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP; excludes 2021 RSU award)(7)(8)
— 2,133,593 — 
Termination by AB without cause; death or disability (2021 RSU award)— 1,029,850 — 
Name and Reason for Employment Termination 
Cash
Payments(1) ($)
 
Acceleration of Restricted
AB Holding Unit
Awards(2)($)
 
Other Benefits (3)($)
Seth P. Bernstein      
Change in control (2017 Award) —
 2,492,002
 21,263
Termination by Mr. Bernstein for good reason or by AB without cause and within 12 months of change in control (including 2017 Award)(4)
 7,000,000
 2,492,002
 21,263
Termination by Mr. Bernstein for good reason (including 2017 Award)(4)
 3,500,000
 2,492,002
 21,263
Termination of Mr. Bernstein's employment by AB other than for Cause or due to Death or Disability (including 2017 Award)(4)(5)(6)
 5,250,000
 2,492,002
 21,263
Termination by reason of non-extension of initial 3-year employment term (2017 Award)(4)
 —
 2,492,002
 21,263
Resignation (complies with applicable agreements and restrictive covenants) under ICAP (2018 and 2019 Awards)(2)
 —
 7,611,361
 21,263
Death or disability under ICAP (2018 and 2019 Awards)(7)
 —
 7,611,361
 21,263
James A. Gingrich      
Termination by AB without cause; death or disability (2018 RSU award)(8)
 —
 330,359
 —
Resignation or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP (2016 award)(2)
 —
 1,063,013
 —
Death or disability under ICAP (2016 award)(7)
 —
 1,063,013
 —
Kate C. Burke      
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP(2)
 —
 1,819,735
 —
Death or disability under ICAP(7)
 —
 1,819,735
 —
Termination by AB without cause; death or disability (2018 RSU award)(9)
 —
 1,682,302
 —
Laurence E. Cranch      
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP(2)
 —
 1,855,014
 —
Death or disability under ICAP(7)
 —
 1,855,014
 —
Termination by AB without cause; death or disability (2018 RSU award)(9)
 —
 1,682,302
 —
John C. Weisenseel      
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP(2)
 —
 2,298,464
 —
Death or disability under ICAP(7)
 —
 2,298,464
 —
Termination by AB without cause; death or disability (2018 RSU award)(9)
 —
 1,682,302
 —

(1)
170		It is possible that each NEO could receive a cash severance payment on the termination of his or her employment. The amounts of any such cash severance payments would be determined at the time of such termination (other than for Mr. Bernstein), so we are unable to estimate such amounts. The amounts shown for Mr. Bernstein are described in the CEO Employment Agreement.AllianceBernstein

Table of Contents
Part III
Name and Trigger Event
Cash
Payments(1)
($)
Acceleration of
Restricted
AB Holding Unit
Awards(2)
($)
Other
Benefits(3)
($)
Karl Sprules
Change in control— 2,481,682 — 
Change in control + employment terminated by AB other than for cause, termination by Mr. Sprules for good reason, or termination due to death or disability3,910,000 2,481,682 — 
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP(7)(8)
— 2,481,682 — 
Mark Manley
Change in control— 749,269 — 
Change in control + employment terminated by AB other than for cause, termination by Mr. Manley for good reason, or termination due to death or disability2,160,000 749,269 — 
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP)(7)(8)
— 749,269 — 
Bill Siemers(9)
Change in control— — — 
Change in control + employment terminated by AB other than for cause, termination by Mr. Siemers for good reason, or termination due to death or disability— — — 
Resignation, retirement or termination by AB without cause (complies with applicable agreements and restrictive covenants) under ICAP; death or disability under ICAP; excludes 2022 RSU award)(7)(8)
— 339,810 — 
Termination by AB without cause; death or disability (2022 RSU award)— 300,284 — 
Ali Dibadj(10)
— — — 
(2)2022 Annual Report
See Notes 2 and 19 in AB’s consolidated financial statements in Item 8 and “Compensation Elements for NEO – Long-Term Incentive Compensation Awards” above for a discussion of the terms set forth in long-term incentive compensation award agreements relating to termination of employment.
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(1)It is possible that each NEO could receive a cash severance payment on the termination of his or her employment that is not contemplated in the CIC Plan. The amounts of any such cash severance payments would be determined at the time of such termination (other than for Mr. Bernstein), so we are unable to estimate such amounts. The amounts shown for Mr. Bernstein are described in the CEO Employment Agreement. The amounts shown for Ms. Burke, Mr. Erzan, Mr. Sprules and Mr. Manley in the event of a change in control coupled with termination of employment are described in the CIC Plan.
(2)See Notes 2 and 19 in AB’s consolidated financial statements in Item 8 and “Long-Term Incentive Compensation Awards” above in CD&A for a discussion of the terms set forth in long-term incentive compensation award agreements relating to termination of employment.
(3)Reflects the value of group medical coverage to which Mr. Bernstein would be entitled.
(4)See "Overview of Mr. Bernstein's Employment Agreement" above for a discussion of the terms set forth in the CEO Employment Agreement relating to termination of employment.
(5)The CEO Employment Agreement defines “Disability” as a good faith determination by AB that Mr. Bernstein is physically or mentally incapacitated and has been unable for a period of 180 days in the aggregate during any 12-month period to perform substantially all of the duties for which he is responsible immediately before the commencement of the incapacity.
(6)Under the CEO Employment Agreement, upon termination of Mr. Bernstein’s employment due to death or disability, and after the COBRA period, AB will provide Mr. Bernstein and his spouse with access to participation in AB’s medical plans at Mr. Bernstein’s (or his spouse’s) sole expense based on a reasonably determined fair market value premium rate.
(7)“Disability” is defined in the ICAP award agreements of each NEO as the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to last for a continuous period of not less than 12 months, as determined by the carrier of the long-term disability insurance program maintained by AB or its affiliate that covers the NEO.
(8)Applicable agreements and restrictive covenants in the ICAP award agreement include restrictions on competition and restrictions on employee and client solicitation.
(9)Mr. Siemers, who served as our firm's Interim CFO from March 2022 to July 2022, ceased being deemed an executive officer of AB when his service as Interim CFO concluded. Accordingly, Mr. Siemers was not eligible for potential payments or benefits under the CIC Plan as of December 31, 2022.
(10)Mr. Dibadj resigned as our firm's CFO and Head of Strategy in March 2022, so he was ineligible for any potential payment or benefit upon a change in control of AB as of December 31, 2022.
Reflects the value of group medical coverage to which Mr. Bernstein would be entitled.
(4)
See "Overview of Mr. Bernstein's Employment Agreement" above for a discussion of the terms set forth in the CEO Employment Agreement relating to termination of employment.
(5)
The CEO Employment Agreement defines “Disability” as a good faith determination by AB that Mr. Bernstein is physically or mentally incapacitated and has been unable for a period of 180 days in the aggregate during any 12-month period to perform substantially all of the duties for which he is responsible immediately before the commencement of the incapacity.
(6)
Under the CEO Employment Agreement, upon termination of Mr. Bernstein’s employment due to death or disability, and after the COBRA period, AB will provide Mr. Bernstein and his spouse with access to participation in AB’s medical plans at Mr. Bernstein’s (or his spouse’s) sole expense based on a reasonably determined fair market value premium rate.
(7)
“Disability” is defined in the ICAP award agreements of each NEO as the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to last for a continuous period of not less than 12 months, as determined by the carrier of the long-term disability insurance program maintained by AB or its affiliate that covers the NEO.
(8)
For additional information relating to the restricted AB Holding Unit awards issued to Mr. Gingrich, please refer to "Long-Term Incentive Compensation Awards - Mr. Gingrich's Compensation" above.
(9)
For additional information relating to the restricted AB Holding Unit award issued to each of Ms. Burke, Mr. Cranch and Mr. Weisenseel in April 2018, please refer to "Relocation-related Performance Awards" above.

Additionally, estimated payments and benefits to which Mr. Bernstein, Ms. Burke or Mr. Erzan would have been entitled upon a change in control of EQH or the specified qualifying events of termination of employment as of December 31, 20192022 are as follows (these amounts would be payable by EQH):

Reason for Employment Termination
Acceleration of EQH Option
and Share Awards(5)
($)
Seth Bernstein
Retirement(1)
737,795 
Death(1)(2)
1,993,3872,434,876 
Disability(1)(2)
1,993,3872,434,876 
Involuntary termination (no change in control)(2)(3)
150,9051,468,354 
Change in control (without termination of employment) (3)(4)
1,188,9711,666,667 
Kate Burke
Death(2)
168,676 
Disability(2)
168,676 
Involuntary termination of employment or termination by Mr. Bernstein for good reason (no change in control)(3)
1,188,971

53,059 
(1)Change in control (without termination of employment)(4)
Reflects the combined value, as of December 31, 2019, associated with Mr. Bernstein's transaction incentive award in 2018 and, in 2019, his restricted stock unit award, performance share award and option award. For additional information regarding these awards,76,180 please see the Summary Compensation Table in 2019, the Grant of Plan-based Awards table in 2019 and the Outstanding Equity at 2019 Fiscal Year End table above in this Item 11.
Onur Erzan
Death(2)
Reflects the value, as of December 31, 2019, associated with Mr. Bernstein's transaction incentive award in 2018168,676 .
(3)Disability(2)
Reflects, as168,676 
Involuntary termination (no change in control)(3)
53,059 
Change in control (without termination of December 31, 2019, the full value associated with Mr. Bernstein's option award in 2019 and pro-rated portions of Mr. Bernstein's transaction incentive award in 2018 and, in 2019, his restricted stock unit award and performance share award based on the terms and conditions of these awards.employment)(4)
76,180 

(1)Reflects, as of December 31, 2022, the full value of the restricted stock unit award and performance share award granted to Mr. Bernstein in 2021. Excludes (i) restricted stock unit awards and performance share awards granted to Mr. Bernstein in 2020 due to prior retirement eligibility requirements in effect for awards granted prior to 2021, and (ii) awards granted in 2022 due to minimum vesting requirements.
(2)Reflects, as of December 31, 2022, the full value associated with awards granted by EQH to Mr. Bernstein (since 2020), Ms. Burke (since 2021) and Mr. Erzan (since 2021), including option awards (Mr. Bernstein only); restricted stock unit awards (to each officer); and performance share awards (to each officer). For additional information regarding these awards, please see the Summary Compensation Table for 2022, Grants of Plan-based Awards in 2022 and Outstanding Equity at 2022 Fiscal Year End above in this Item 11.
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(3)Reflects, as of December 31, 2022, (i) the prorated value of the restricted stock unit awards and performance share awards granted by EQH to Mr. Bernstein (in 2020), to Ms. Burke (in 2021) and to Mr. Erzan (in 2021), and (ii) the full value of the restricted stock unit award and performance share award granted to Mr. Bernstein in 2021. Restricted stock unit awards and performance share awards granted to Mr. Bernstein, Ms. Burke and Mr. Erzan in 2022 are excluded until a minimum of one year of vesting is reached.
(4)Reflects, as of December 31, 2022, (i) the full value associated with Mr. Bernstein's option awards in 2020, (ii) the full value of the restricted stock unit awards granted to Mr. Bernstein (in 2022, 2021 and 2020), to Ms. Burke (in 2022 and 2021) and to Mr. Erzan (in 2022 and 2021), and (iii) the full value of the performance share awards granted to Mr. Bernstein (in 2022, 2021 and 2020), to Ms. Burke (in 2022 and 2021) and to Mr. Erzan (in 2022 and 2021), with performance factors applied for 2020 and 2021 grants.
(5)Acceleration of EQH awards is contingent on the award recipient's compliance with various agreements and restrictive covenants set forth in the applicable award agreement under the EQH 2022 Long-Term Incentive Compensation Program, including protection of confidential information, non-competition, non-solicitation of employees and non-solicitation of customers.
Director Compensation in 2019

2022
During 2019,2022, we compensated our directors, who were serving as of December 31, 2019 and satisfied applicable NYSE and SEC standards relating to independence (“Independent Directors”), as follows:
NameFees Earned or Paid in Cash
($)
Stock
Awards(1)(2)
($)
Total
($)
Joan Lamm-Tennant140,000 170,000 310,000 
Nella Domenici102,500 170,000 272,500 
Daniel Kaye99,000 170,000 269,000 
Kristi Matus123,500 170,000 293,500 
Das Narayandas93,000 170,000 263,000 
Charles Stonehill127,500 170,000 297,500 
Todd Walthall102,500 170,000 272,500 
Name Fees Earned or Paid in Cash($) 
Stock
Awards(1)(2)
($)
 Total($)
Ramon de Oliveira 149,375
 170,000
 319,375
Paul L. Audet 108,500
 170,000
 278,500
Daniel G. Kaye 119,876
 170,000
 289,876
Kristi Matus 61,000
 142,000
 203,000
Das Narayandas 91,000
 170,000
 261,000
Charles Stonehill 83,542
 170,000
 253,542
(1)The aggregate number of restricted AB Holding Units underlying awards outstanding but not yet distributed at December 31, 2022, was: for Ms. Lamm-Tennant, 5,765 AB Holding Units; for Ms. Domenici, 8,521 AB Holding Units; for Mr. Kaye, 12,390 AB Holding Units; for Ms. Matus, 12,125 AB Holding Units; for Mr. Narayandas, 12,390 AB Holding Units; for Mr. Stonehill, 12,390 AB Holding Units; and for Mr. Walthall, 6,066 AB Holding Units.


(1)(2)
The aggregate number of restricted AB Holding Units underlying awards outstanding but not yet distributed at December 31, 2019 was: for Ms. Matus, 4,750 AB Holding Units; for each of Messrs. de Oliveira and Kaye, 12,315 AB Holding Units; for each of Messrs. Audet and Narayandas, 12,063 AB Holding Units; and for Mr. Stonehill, 5,810 AB Holding Units.
(2)
Reflects the aggregate grant date fair value of the awards calculated in accordance with FASB ASC Topic 718. For the assumptions made in determining these values, see Note 19 to AB’s consolidated financial statements in Item 8.

Independent Director Compensation

 Elements
The Board has approved the compensation elements described immediately below for Independent Directors during its regular meeting held in May 2021 and has agreed to re-consider such compensation elements periodically:bi-annually:

•
an annual retainer of $85,000•an annual retainer of $90,000 (paid quarterly after any quarter during which an Independent Director serves on the Board; annual retainers relating to Committee service, as described below, are paid quarterly in arrears as well);
•as described below, are paid quarterly in arrears as well);
a fee of $5,000 for participating in any meeting of the Board, whether in person or by telephone, in excess of the four regularly-scheduled Board meetings each year;
•
a fee of $2,000 for participating in any meeting of any duly constituted committee of the Board, whether in person or by telephone, in excess of the number of regularly-scheduled committee meetings each year (i.e., in excess of eight meetings of the Audit Committee and four meetings of each of the Executive Committee, the Compensation Committee and the Governance Committee);
an annual retainer of $50,000 for acting as Independent ChairmanChair of the Board;
•an annual retainer of $25,000$37,500 for acting as Chair of the Audit Committee;
•an annual retainer of $12,500$20,000 for acting as Chair of the Compensation Committee;
•an annual retainer of $12,500$13,500 for acting as Chair of the Governance Committee;
•an annual retainer of $12,500 for serving as a member of the Audit Committee;
•an annual retainer of $6,000 for serving as a member of the Executive Committee;
an annual retainer of $6,000$9,000 for serving as a member of the Compensation Committee;
•an annual retainer of $6,000$3,000 for serving as a member of the Governance Committee; and
•
an annual equity-based grantunder an equity compensation plan consisting of restricted AB Holding Units with a grant date fair value of $170,000.

At the regular meeting•an annual equity-based grant under an equity compensation plan consisting of the Board held in May 2019,restricted AB Holding Units with a grant date fair value of $170,000.
In 2022, the Board granted to each Independent Director then serving (which included Barbara Fallon-WalshMses. Domenici, Lamm-Tennant and Shelley Leibowitz, each of whom departed the Board in June 2019,Matus and Messrs. Audet, de Oliveira, Kaye, Narayandas, Stonehill and Stonehill) 5,810Walthall) 4,410 restricted AB Holding Units. The number of AB Holding Units granted was determined by dividing the $170,000 grant date fair value noted above by the closing price of an AB Holding Unit on the date of the May 20192022 Board Meeting, or $29.26$38.55 per unit. These awards vest ratably on each of the first fourthree anniversaries of the grant date, which generally is consistent with AB employee equity awards.date.

Additionally, by unanimous written consent dated as
2022 Annual Report173
Table of July 1, 2019, the Board granted to Ms. Matus, who joined the Board as of July 1, 2019, 4,750 restricted AB Holding Units. The number of AB Holding Units granted was determined by dividing the $142,000 grant date fair value (a pro-rated version of the $170,000 typically awarded based on the date as of which Ms. Matus joined the Board) by the closing price of an AB Holding Unit on July 1, 2019, or $29.90 per unit. This award vests ratably on each of the first four anniversaries of the grant date.Contents

Part III
Also, at the regular meeting of the Board held in November 2019, the Board granted to Nella Domenici, who joined the Board as of January 1, 2020, 2,344 restricted AB Holding Units. The number of AB Holding Units granted was determined by dividing the $70,834 grant date fair value (a pro-rated version of the $170,000 typically awarded based on the date as of which Ms. Domenici joined the Board) by the closing price of an AB Holding Unit on January 2, 2020, or $30.23 per unit. This award also vests ratably on each of the first four anniversaries of the grant date.

Further, in order to avoid any perception that our directors’ exercise of their fiduciary duties might be impaired, restricted AB Holding Unit grants to Independent Directors are not forfeitable, except if the director is terminated for “Cause,” as that term is defined in the 2017 Plan or the applicable award agreement. Accordingly, restricted AB Holding Units generally are delivered as soon as administratively feasible following an Independent Director’s resignation from the Board.

Equity grants to Independent Directors generally are made at the May meeting of the Board. The date of the May meeting is set by the Board the previous year.

at least a year in advance.
The General Partner may reimburse any director for reasonable expenses incurred in connection with attendance at Board meetings as well as additional Board responsibilities. AB Holding and AB, in turn, reimburse the General Partner for expenses incurred by

the General Partner on their behalf, including amounts in respect of directors’ fees and expenses. These reimbursements are subject to any relevant provisions of the AB Holding Partnership Agreement and the AB Partnership Agreement.

Independent Director AB Holding Unit Ownership Guidelines

Each Independent Director, by the later of five years from the initial implementation date of these guidelines (February 2018) and the date as of which the director's tenure on the Board begins, shall accumulate, either through accumulating AB Holding Units awarded by the Board or purchasing Units on the open market, AB Holding Units with a market value equal to five (5) times the director's annual retainer. Each Independent Director must maintain this ownership level for the duration of the director's tenure on the Board.
As of December 31, 2022, each Independent Director then serving either complied with this policy or was on track to do so within the allotted time.
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Item 12.     12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Securities Authorized for Issuance under Equity Compensation Plans

AB Holding Units to be issued pursuant to our equity compensation plans as of December 31, 20192022 are as follows:

Equity Compensation Plan Information
Plan Category Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted average exercise price of outstanding options, warrants and rights 
Number of securities remaining available for future issuance(1)
Equity compensation plans approved by security holders 159,349
 $23.93
 39,397,326
Equity compensation plans not approved by security holders —
 —
 —
Total 159,349
 $23.93
 39,397,326

(1)
Equity Compensation Plan Information
All AB Holding Units remaining available for future issuance will
Plan CategoryNumber of
securities to
be issued pursuant to the 2017 Plan, which wasupon
exercise of
outstanding
options, warrants
and rights		Weighted average
exercise price
of outstanding
options, warrants
and rights
Number of
securities
remaining
available
for future
issuance(1)
Equity compensation plans approved during a Special Meeting of AB Holding Unitholders held on September 29, 2017.by security holders— $— 30,204,036 
Equity compensation plans not approved by security holders— — — 
Total—$—30,204,036

(1)All AB Holding Units remaining available for future issuance will be issued pursuant to the 2017 Plan, which was approved during a Special Meeting of AB Holding Unitholders held on September 29, 2017.
There are no AB Units to be issued pursuant to an equity compensation plan.

For information about our equity compensation plans, see Note 19 to AB’s consolidated financial statements in Item 8.

Principal Security Holders

As of December 31, 2019, we had no information that any person beneficially owned more than 5% of the outstanding AB Holding Units.

As of December 31, 2019,2022, we had no information that any person beneficially owned more than 5% of the outstanding AB Units, except as reported by EQH and certain of its subsidiaries on Schedule 13D/A with the SEC on March 25, 2019 pursuant to the Exchange Act.subsidiaries. We have prepared the following table, and the note that follows, in reliance on such filing:information supplied by EQH:

Name and Address of Beneficial OwnerAmount and Nature of
Beneficial Ownership
Reported on Schedule		Percent of
Class
Equitable Holdings(1)
1290 Avenue of the Americas
New York, NY 10104
177,121,625 (1)61.3 %(1)
Name and Address of  Beneficial Owner 
Amount and Nature of
Beneficial Ownership
Reported on Schedule
 Percent of Class
Equitable Holdings(1)
1290 Avenue of the Americas
New York, NY 10104
 170,121,745
(1) 
 63.3
(1) 


(1)By reason of their relationships, EQH, AXA Equitable Financial Services, LLC (a subsidiary of EQH), AXA-IM Holding U.S. (a subsidiary of EQH), Alpha Units Holdings, Inc. (a subsidiary of EQH) and Equitable America may be deemed to share the power to vote or to direct the vote and to dispose or direct the disposition of all or a portion of the 170,121,745 issued and outstanding AB Units. The 63.3% includes the 1% GP interest held by EQH.

(1)By reason of their relationships, EQH and its subsidiaries that hold AB Units may be deemed to share the power to vote or to direct the vote and to dispose or direct the disposition of all or a portion of these AB Units. The 61.3% includes the 1% general partnership interest held by EQH.
As of December 31, 2019,2022, AB Holding was the record owner of 98,192,098,113,801,097, or 36.3%39.8%, of the issued and outstanding AB Units.Units (or 39.4% including the 1% general partnership interest held by EQH).


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Management

As of December 31, 2019,2022, the beneficial ownership of AB Holding Units by each director and NEO of the General Partner and by all directors and executive officers as a group is as follows:
Name of Beneficial OwnerNumber of AB
Holding Units and
Nature of Beneficial
Ownership		Percent of Class
Joan Lamm-Tennant(1)
6,216 *
Seth Bernstein(1)(2)
657,593 *
Nella Domenici17,848 *
Jeffrey Hurd(1)
— *
Daniel Kaye(1)
34,693 *
Nick Lane(1)
— *
Kristi Matus(1)
20,254 *
Das Narayandas30,659 *
Mark Pearson(1)
— *
Charles Stonehill(1)
19,914 *
Todd Walthall6,618 *
Kate Burke(1)(3)
234,300 *
Onur Erzan(1)(4)
144,221 *
Karl Sprules(1)(5)
140,514 *
Mark Manley(1)(6)
89,369 *
Bill Siemers(1)(7)
68,140 *
All directors and executive officers as a group (16 persons)(8)
1,470,339 1.3%
Name of Beneficial  Owner 
Number of AB
Holding Units and
Nature of
Beneficial
Ownership
 Percent of Class
Ramon de Oliveira(1)
 19,189
 *
Seth P. Bernstein(1)(2)
 453,704
 *
Paul L. Audet 15,155
 *
Nella L. Domenici —
 *
Jeffrey J. Hurd(1)
 —
 *
Daniel G. Kaye(1)
 19,189
 *
Nick Lane(1)
 —
 *
Kristi A. Matus(1)
 4,750
 *
Das Narayandas 15,155
 *
Mark Pearson(1)
 —
 *
Charles G.T. Stonehill(1)
 5,810
 *
James A. Gingrich(1)(3)
 1,195,885
 1.2%
Kate C. Burke(1)(4)
 221,184
 *
Laurence E. Cranch(1)(5)
 230,165
 *
John C. Weisenseel(1)(6)
 299,622
 *
All directors and executive officers as a group (16 persons)(7)
 2,494,451
 2.5%

**    Number of AB Holding Units listed represents less than 1% of the Units outstanding.
(1)Excludes AB Holding Units beneficially owned by EQH and its subsidiaries. Ms. Matus and Messrs. Bernstein, de Oliveira, Hurd, Kaye, Lane, Pearson and Stonehill each is a director and/or officer of EQH, Equitable Life and/or Equitable America. Ms. Burke and Messrs. Bernstein, Gingrich, Cranch and Weisenseel each is a director and/or officer of the General Partner.
(2)
Represents 453,704 restricted AB Holding Units that have not yet vested or with respect to which Mr. Bernstein has deferred delivery. See “Overview of Mr. Bernstein's Employment Agreement – Compensation Elements – Restricted AB Holding Units,” “Grants of Plan-based Awards in 2019” and “Outstanding Equity Awards at 2019 Fiscal Year-End” in Item 11 for additional information.
(3)
Includes 698,629 restricted AB Holding Units awarded to Mr. Gingrich as long-term incentive compensation that have not yet vested or with respect to which he has deferred delivery. For information regarding Mr. Gingrich’s long-term incentive compensation awards, see “Long-Term Incentive Compensation Awards - Mr. Gingrich's Compensation,” “Grants of Plan-based Awards in 2019” and “Outstanding Equity Awards at 2019 Fiscal Year-End” in Item 11.
(4)
Includes 211,940 restricted AB Holding Units awarded to Ms. Burke as long-term incentive compensation that have not yet vested.  For information regarding Ms. Burke’s long-term incentive compensation awards, see “Relocation-related Performance Awards,” “Grants of Plan-based Awards in 2019” and “Outstanding Equity Awards at 2019 Fiscal Year-End” in Item 11.
(5)
Includes 219,289 restricted AB Holding Units awarded to Mr. Cranch as long-term incentive compensation that have not yet vested or with respect to which he has deferred delivery. For information regarding Mr. Cranch's long-term incentive compensation awards, see “Relocation-related Performance Awards,” “Grants of Plan-based Awards in 2019” and “Outstanding Equity Awards at 2019 Fiscal Year-End” in Item 11.
(6)
Represents 299,622 restricted AB Holding Units awarded to Mr. Weisenseel as long-term incentive compensation that have not yet vested or with respect to which he has deferred delivery.  For information regarding Mr. Weisenseel’s long-term incentive compensation awards, see “Relocation-related Performance Awards,” “Grants of Plan-based Awards in 2019” and “Outstanding Equity Awards at 2019 Fiscal Year-End” in Item 11.
(7)Includes 1,910,190 restricted AB Holding Units awarded to the executive officers as a group as long-term incentive compensation that have not yet vested and/or with respect to which the executive officer has deferred delivery (includes 14,643

AB Holding Units listed represents less than 1% of the Units outstanding.
(1)Excludes AB Holding Units beneficially owned outright by William R.EQH and its subsidiaries. Mses. Lamm-Tennant and Matus, and Messrs. Bernstein, Hurd, Kaye, Lane, Pearson and Stonehill, each is a director and/or officer of EQH, Equitable Financial and/or Equitable America. Ms. Burke and Messrs. Bernstein, Erzan, Sprules, Manley and Siemers our Chief Accounting Officer, and 27,006each is a director and/or officer of the General Partner.
(2)Includes 507,389 restricted AB Holding Units that have not yet vested or with respect to which Mr. Bernstein has deferred delivery. See “Overview of Mr. Bernstein's Employment Agreement – Compensation Elements – Restricted AB Holding Units,” “Grants of Plan-based Awards in 2022” and “Outstanding Equity Awards at 2022 Fiscal Year-End” in Item 11for additional information.
(3)Includes 94,095 restricted AB Holding Units granted to Ms. Burke that have not yet vested. For information regarding Ms. Burke's long-term incentive compensation awards, see “Grants of Plan-based Awards in 2022” and “Outstanding Equity Awards at 2022 Fiscal Year-End” in Item 11.
(4)Includes 137,265 restricted AB Holding Units granted to Mr. Siemers)Erzan that have not yet vested. For information regarding Mr. Erzan's long-term incentive compensation awards, see "Grants of Plan-based Awards in 2022” and “Outstanding Equity Awards at 2022 Fiscal Year-End” in Item 11.

(5)Includes 72,205 restricted AB Holding Units granted to Mr. Sprules that have not yet vested. For information regarding Mr. Sprules's long-term incentive compensation awards, see “Grants of Plan-based Awards in 2022" and “Outstanding Equity Awards at 2022 Fiscal Year-End” in Item 11.
(6)Includes 21,800 restricted AB Holding Units granted to Mr. Manley that have not yet vested. For information regarding Mr. Manley's long-term incentive compensation awards, see “Grants of Plan-based Awards in 2022” and “Outstanding Equity Awards at 2022 Fiscal Year-End” in Item 11.
(7)Includes 31,760 restricted AB Holding Units granted to Mr. Siemers that have not yet vested. For information regarding Mr. Siemers's long-term incentive compensation awards, see “Grants of Plan-based Awards in 2022” and “Outstanding Equity Awards at 2022 Fiscal Year-End” in Item 11.
(8)Includes 864,514 restricted AB Holding Units awarded to the executive officers as a group as long-term incentive compensation that have not yet vested and/or with respect to which the executive officer has deferred delivery.
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As of December 31, 2019,2022, our directors and executive officers did not beneficially own any AB Units.

As of December 31, 2019,2022, the beneficial ownership of the common stock of EQH by each director and named executive officer of the General Partner and by all directors and executive officers as a group is as follows:

EQH Common Stock

EQH Common Stock
Name of Beneficial Owner
Number of Shares and

Nature of Beneficial

Ownership
Percent of Class
Ramon de OliveiraJoan Lamm-Tennant25,056 21,243
*
Seth P. Bernstein(1)
189,714 32,936
*
Paul L. AudetNella Domenici— —
*
Nella L. Domenici—
*
Jeffrey J. Hurd(2)
272,590 93,209
*
Daniel G. Kaye52,129 12,474
*
Nick Lane(3)
200,933 60,383
*
Kristi A. Matus19,297 12,474
*
Das Narayandas2,000 2,000
*
Mark Pearson(4)
1,187,290 305,724
*
Charles G.T. Stonehill28,285 12,474
*
James A. GingrichTodd Walthall— —
*
Kate C. Burke(5)
2,535 —
*
Laurence E. Cranch
Onur Erzan(5)
2,457 —
*
John C. WeisenseelKarl Sprules— —
*
Mark Manley— *
Bill Siemers— *
All directors and executive officers as a group (16 persons)(5)(6)
1,982,286 552,917
*

*Number of shares listed represents less than 1% of the outstanding EQH common stock.
(1)Includes (i) 103,586 options Mr. Bernstein has the right to exercise within 60 days and (ii) 24,307 restricted stock units that will vest within 60 days and settle in EQH shares.
(2)Includes (i) 171,694 options Mr. Hurd has the right to exercise within 60 days and (ii) 51,627 restricted stock units that will vest within 60 days and settle in EQH shares.
(3)Includes (i) 76,278 options Mr. Lane has the right to exercise within 60 days and (ii) 58,565 restricted stock units that will vest within 60 days and settle in EQH shares.
(4)Includes (i) 653,845 options Mr. Pearson has the right to exercise within 60 days and (ii) 237,363 restricted stock units that will vest within 60 days and settle in EQH shares.
(5)Includes 2,191 restricted stock units that will vest within 60 days and settle in EQH shares.
(6)Includes 1,005,403 options that may be exercised and 376,244 restricted stock units that will vest within 60 days and settle in EQH shares for the directors and executive officers as a group.
(1)2022 Annual ReportIncludes (i) 21,816 options Mr. Bernstein has the right to exercise within 60 days, and (ii) 4,566 restricted stock units that will vest within 60 days and settle in EQH shares.177
(2)Includes (i) 71,806 options Mr. Hurd has the right to exercise within 60 days, and (ii) 8,220 restricted stock units that will vest within 60 days and settle in EQH shares,
(3)Includes (i) 41,449 options Mr. Lane has the right to exercise within 60 days, and (ii) 18,934 restricted stock units that will vest within 60 days and settle in EQH shares.
(4)Includes (i) 189,579 options Mr. Pearson has the right to exercise within 60 days, and (ii) 25,116 restricted stock units that will vest within 60 days and settle in EQH shares.
(5)Includes 324,650 options that may be exercised and 56,836 restricted stock units that will vest within 60 days for the directors and executive officers as a group.

Table of Contents
Part III
Partnership Matters

The General Partner makes all decisions relating to the management of AB and AB Holding. The General Partner has agreed that it will conduct no business other than managing AB and AB Holding, although it may make certain investments for its own account. Conflicts of interest, however, could arise between AB and AB Holding, the General Partner and the Unitholdersof both Partnerships.

Section 17-403(b) of the Delaware Revised Uniform Limited Partnership Act (“(“Delaware Act”) states in substance that, except as provided in the Delaware Act or the applicable partnership agreement, a general partner of a limited partnership has the liabilities of a general partner in a general partnership governed by the Delaware Uniform Partnership Law (as in effect on July 11, 1999) to the partnership and to the other partners. In addition, as discussed below, Sections 17-1101(d) and 17-1101(f) of the Delaware Act generally provide that a partnership agreement may limit or eliminate fiduciary duties a partner may be deemed to owe to the

limited partnership or to another partner, and any related liability, provided that the partnership agreement may not limit or eliminate the implied contractual covenant of good faith and fair dealing. Accordingly, while under Delaware law a general partner of a limited partnership is liable as a fiduciary to the other partners, those fiduciary obligations may be altered by the terms of the applicable partnership agreement. Each of the AB Partnership Agreement and AB Holding Partnership Agreement (each, a “Partnership Agreement” and, together, the “Partnership Agreements”) sets forth limitations on the duties and liabilities of the General Partner. Each Partnership Agreement provides that the General Partner is not liable for monetary damages for errors in judgment or for breach of fiduciary duty (including breach of any duty of care or loyalty), unless it is established (the person asserting such liability having the burden of proof) that the General Partner’s action or failure to act involved an act or omission undertaken with deliberate intent to cause injury, with reckless disregard for the best interests of the Partnerships or with actual bad faith on the part of the General Partner, or constituted actual fraud. Whenever the Partnership Agreements provide that the General Partner is permitted or required to make a decision (i) in its “discretion” or under a grant of similar authority or latitude, the General Partner is entitled to consider only such interests and factors as it desires and has no duty or obligation to consider any interest of or other factors affecting the Partnerships or any Unitholder of AB or AB Holding or (ii) in its “good faith” or under another express standard, the General Partner will act under that express standard and will not be subject to any other or different standard imposed by either Partnership Agreement or applicable law or in equity or otherwise. Each Partnership Agreement further provides that to the extent that, at law or in equity, the General Partner has duties (including fiduciary duties) and liabilities relating thereto to either Partnership or any partner, the General Partner acting under either Partnership Agreement, as applicable, will not be liable to the Partnerships or any partner for its good faith reliance on the provisions of the Partnership Agreement.

In addition, each Partnership Agreement grants broad rights of indemnification to the General Partner and its directors, officers and affiliates and authorizes AB and AB Holding to enter into indemnification agreements with the directors, officers, partners, employees and agents of AB and its affiliates and AB Holding and its affiliates. The Partnerships have granted broad rights of indemnification to officers and employees of AB and AB Holding. The foregoing indemnification provisions are not exclusive, and the Partnerships are authorized to enter into additional indemnification arrangements. AB and AB Holding have obtained directors and officers/errors and omissions liability insurance.

Each Partnership Agreement also allows transactions between AB and AB Holding and the General Partner or its affiliates,as we describe in “Policies and Procedures Regarding Transactions with Related Persons” in Item 13,, so long as such transactions are on an arms-length basis. The Delaware courts have held that provisions in partnership or limited liability company agreements that permit affiliate transactions so long as they are on an arms-length basis operate to establish a contractually-agreed-to fiduciary duty standard of entire fairness on the part of the general partner or manager in connection with the approval of affiliate transactions. Also, each Partnership Agreement expressly permits all affiliates of the General Partner to compete, directly or indirectly, with AB and AB Holding, as we discuss in “Competition” in Item 1.1. The Partnership Agreements further provide that, except to the extent that a decision or action by the General Partner is taken with the specific intent of providing an improper benefit to an affiliate of the General Partner to the detriment of AB or AB Holding, there is no liability or obligation with respect to, and no challenge of, decisions or actions of the General Partner that would otherwise be subject to claims or other challenges as improperly benefiting affiliates of the General Partner to the detriment of the Partnerships or otherwise involving any conflict of interest or breach of a duty of loyalty or similar fiduciary obligation.

178AllianceBernstein
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Section 17-1101(c) of the Delaware Act provides that it is the policy of the Delaware Act to give maximum effect to the principle of freedom of contract and to the enforceability of partnership agreements. Further, Section 17-1101(d) of the Delaware Act provides in part that to the extent that, at law or in equity, a partner has duties (including fiduciary duties) to a limited partnership or to another partner, those duties may be expanded, restricted, or eliminated by provisions in a partnership agreement (provided that a partnership agreement may not eliminate the implied contractual covenant of good faith and fair dealing). In addition, Section 17-1101(f) of the Delaware Act provides that a partnership agreement may limit or eliminate any or all liability of a partner to a limited partnership or another partner for breach of contract or breach of duties (including fiduciary duties); provided, however, that a partnership agreement may not limit or eliminate liability for any act or omission that constitutes a bad faith violation of the implied contractual covenant of good faith and fair dealing. Decisions of the Delaware courts have recognized the right of parties, under the above provisions of the Delaware Act, to alter by the terms of a partnership agreement otherwise applicable fiduciary duties and liability for breach of duties. However, the Delaware courts have required that a partnership agreement make clear the intent of the parties to displace otherwise applicable fiduciary duties (the otherwise applicable fiduciary duties often being referred to as “default” fiduciary duties). Judicial inquiry into whether a partnership agreement is sufficiently clear to displace default fiduciary duties is necessarily fact driven and is made on a case by case basis. Accordingly, the effectiveness of displacing default fiduciary obligations and liabilities of general partners continues to be a developing area of the law and it is not certain to what extent the foregoing provisions of the Partnership Agreements are enforceable under Delaware law.


Item 13.Certain Relationships and Related Transactions, and Director Independence

Policies and Procedures Regarding Transactions with Related Persons

Each Partnership Agreement expressly permits EQH and its affiliatessubsidiaries (collectively, “EQH Affiliates”“EQH Affiliates”), to provide services to AB and AB Holding if the terms of the transaction are approved by the General Partner in good faith as being comparable to (or more favorable to each such Partnership than) those that would prevail in a transaction with an unaffiliated party. This requirement is conclusively presumed to be satisfied as to any transaction or arrangement that (i) in the reasonable and good faith judgment of the General Partner meets that unaffiliated party standard, or (ii) has been approved by a majority of those directors of the General Partner who are not also directors, officers or employees of an affiliate of the General Partner. These principles also applied to transactions with AXA and its subsidiaries during 2019. AXA, which reduced its ownership of EQH to less than 10% as of December 31, 2019, previously was AB's ultimate parent company.

In practice, our management pricing committees review investment advisory agreements with EQH Affiliates, which is the manner in which the General Partner reaches a judgment regarding the appropriateness of the fees. Other transactions with EQH Affiliates are submitted to the Audit Committee for their review and approval. (See “Committees of the Board” in Item 10 for details regarding the Audit Committee.) We are not aware of any transaction during 20192022 between our company and any related person with respect to which these procedures were not followed.

Our relationships with EQH Affiliates also are subject to applicable provisions of the insurance laws and regulations of New York and other states. Under such laws and regulations, the terms of certain investment advisory and other agreements we enter into with EQH Affiliates are required to be fair and equitable and charges or fees for services performed must be reasonable. Also, in some cases, the agreements are subject to regulatory approval.

We have written policies regarding the employment of immediate family members of any of our related persons. Compensation and benefits for all of our employees is established in accordance with our human resourcespeople practices, taking into consideration the defined qualifications, responsibilities and nature of the role.

Financial Arrangements with EQH Affiliates

The General Partner has, in its reasonable and good faith judgment (based on its knowledge of, and inquiry with respect to, comparable arrangements with or between unaffiliated parties), approved the following arrangements with EQH Affiliates as being comparable to, or more favorable to AB than, those that would prevail in a transaction with an unaffiliated party.

2022 Annual Report179
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See Note 12 to AB’s consolidated financial statements in Item 8 for disclosures related to our credit facility with EQH. TransactionsSignificant transactions between AB and related persons during 20192022 are as follows (the first table summarizes services we provide to related persons and the second table summarizes services our related persons provide to us):

Parties(1)
General Description of Relationship(2)
Amounts Received
or Accrued for in 2019
   
Equitable LifeWe provide investment management services and ancillary accounting, valuation, reporting, treasury and other services to the general and separate accounts of Equitable Life and its insurance company subsidiaries.$78,984,000
EQAT and Equitable Premier VIP TrustWe serve as sub-adviser to these open-end mutual funds, each of which is sponsored by a subsidiary of Equitable Holdings.$27,682,000
AXA Life Invest(3)
We provide investment management, distribution and shareholder servicing-related services.$16,404,000
AXA Life Japan Limited(3)
 $14,470,000
AXA France(3)
 $11,160,000
AXA Rosenberg Asia Pacific(3)
 $8,123,000
AXA Germany(3)
 $6,626,000
AXA Switzerland Life(3)
 $4,812,000

AXA Winterthur(3)
 $3,915,000
AXA Belgium(3)
 $2,579,000
AXA Insurance UK Non Direct Regulated(3)
 $1,852,000
Equitable America $1,822,000
AXA Hong Kong Life(3)
 $1,455,000
XL Group Investments Ltd(3)
 $1,157,000
Architas Multi-Manager UK(3)
 $1,064,000
AXA Mediterranean(3)
 $809,000
AXA Insurance Ltd(3)
 $756,000
AXA U.K. Group Pension Scheme(3)
 $740,000
Equitable Holdings $672,000
AXA Switzerland Property and Casualty(3)
 $560,000
AXA Corporate Solutions $496,000
AXA General Insurance Hong Kong Ltd(3)
 $487,000
U.S. Financial Life Insurance Company $354,000
AXA Spain Property and Casualty(3)
 $348,000
AXA General Insurance Hong Kong Ltd.(3)
 $301,000
AXA Insurance Company(3)
 $247,000
AXA Life Singapore (3)
 $151,000
   
Parties(1)
General Description of RelationshipAmounts Paid
or Accrued for in 2019
AXADistributes certain of our Retail Products and provides Private Wealth Management referrals.$16,693,000
Equitable AdvisorsDistributes certain of our Retail Products and provides Private Wealth Management referrals.$3,956,000
AXA Business Services Pvt. Ltd.(3)
Provides data processing services and support for certain investment operations functions.$6,610,000
AXA Technology Services India Pvt.(3)
Provides certain data processing services and functions.$3,093,000
Equitable AdvisorsSells shares of our mutual funds under Distribution Service and educational Support agreements.$2,759,000
Equitable HoldingsWe are covered by various insurance policies maintained by Equitable Holdings.$2,466,000
AXA XL Insurance(3)
We are covered by various E&O insurance policies maintained by AXA XL.$1,914,000
GIE Informatique AXA(3)
Provides cooperative technology development and procurement services to us and to various other subsidiaries of AXA.$113,000

Parties(1)
AB
General Description of Relationship(2)
Amounts Received or one of its subsidiaries is a party to each transaction.
Accrued for in 2022
(in thousands)
(2)Equitable Financial
We provide investment management services unless otherwise indicated.and ancillary accounting, valuation, reporting, treasury and other services to the general and separate accounts of Equitable Financial and its insurance company subsidiaries.$118,781 
EQAT and Equitable Premier VIP TrustWe serve as sub-adviser to these open-end mutual funds, each of which is sponsored by a subsidiary of Equitable Holdings.23,711 
Equitable Holdings6,573 
(3)Parties(1)
This entity is a subsidiaryGeneral Description of AXA.Relationship
Amounts Paid or
Accrued for in 2022
(in thousands)
Equitable HoldingsDistributes certain of our Retail Products; provides Private Wealth Management referrals; sells shares of our mutual funds under Distribution Service and Educational Support agreements; includes us as insured under various insurance policies.$20,848 

(1)AB or one of its subsidiaries is a party to each transaction.
(2)We provide investment management services unless otherwise indicated.
Arrangements with Immediate Family Members of Related Persons

During 2019,2022, we did not have arrangements with immediate family members of our directors and executive officers.

Director Independence

See “Independence of Certain Directors” in Item 10.

Item 14.Principal Accounting Fees and Services

Fees for professional audit services rendered by PricewaterhouseCoopers LLP (“("PwC”") for the audit of AB’s and AB Holding’s annual financial statements for 20192022 and 2018,2021, respectively, and fees for other services rendered by PwC are as follows:
20222021
(in thousands)
Audit fees(1)
$7,373 $6,956 
Audit-related fees(2)
3,355 3,580 
Tax fees(3)
1,556 2,221 
All other fees(4)
2,512 6 
Total$14,796 $12,763 
 2019 2018
 (in thousands)
Audit fees(1)
$6,263
 $6,244
Audit-related fees(2)
3,130
 3,259
Tax fees(3)
1,320
 2,001
All other fees(4)
6
 6
Total$10,719
 $11,510
(1)Includes $66,383 and $63,222 paid for audit services to AB Holding in 2022 and 2021, respectively.

(1)Includes $59,313 and $58,447 paid for audit services to AB Holding in 2019 and 2018, respectively.
(2)Audit-related fees consist principally of fees for audits of financial statements of certain employee benefit plans, internal control reviews and accounting consultation.
(3)Tax fees consist of fees for tax consultation and tax compliance services.
(4)All other fees in 2019 and 2018 consisted of miscellaneous non-audit services.

(2)Audit-related fees consist principally of fees for audits of financial statements of certain employee benefit plans, internal control reviews and accounting consultation.
(3)Tax fees consist of fees for tax consultation and tax compliance services.
(4)All other fees consisted primarily of due diligence tax and audit services in 2022 and miscellaneous non-audit services in 2021.
The Audit Committee has a policy to pre-approve audit and non-audit service engagements with the independent registered public accounting firm. The independent registered public accounting firm must provide annually a comprehensive and detailed schedule of each proposed audit and non-audit service to be performed. The Audit Committee then affirmatively indicates its approval of the listed engagements. Engagements that are not listed but that are of similar scope and size to those listed and approved may be deemed to be approved, if the fee for such service is less than $100,000. In addition, the Audit Committee has delegated to its chairman the ability to approve any permissible non-audit engagement where the fees are expected to be less than $100,000.

PART IV
180AllianceBernstein

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Part IV
Item 15.Exhibits, Financial Statement Schedules

(a)There is no document filed as part of this Form 10-K.

(a)There is no document filed as part of this Form 10-K.
Financial Statement Schedule.

Attached to this Form 10-K is a schedule describing Valuation and Qualifying Account-Allowance for Doubtful Accounts for the three years ended December 31, 2019, 20182022, 2021 and 2017.2020.

(b)Exhibits.

(b)Exhibits.
The following exhibits required to be filed by Item 601 of Regulation S-K are filed herewith or incorporated by reference herein, as indicated:
ExhibitDescription
3.01
AllianceBernstein Corporation By-Laws with amendments through July 25, 2018 (incorporated by reference to Ex. 3.01 to Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019)September 21, 2022.
3.02
Amended and Restated Certificate of Limited Partnership dated February 24, 2006 of AB Holding (incorporated by reference to Ex. 99.06 to Form 8-K, as filed February 24, 2006).
3.03
Amendment No. 1 dated February 24, 2006 to Amended and Restated Agreement of Limited Partnership of AB Holding (incorporated by reference to Ex. 3.1 to Form 10-Q for the fiscal quarter ended September 30, 2006, as filed November 8, 2006).
3.04
Amended and Restated Agreement of Limited Partnership dated October 29, 1999 of AB Holding (incorporated by reference to Ex. 3.2 to Form 10-K for the fiscal year ended December 31, 2003, as filed March 10, 2004).
3.05
Amended and Restated Certificate of Limited Partnership dated February 24, 2006 of AB (incorporated by reference to Ex. 99.07 to Form 8-K, as filed February 24, 2006).
3.06
Amendment No. 1 dated February 24, 2006 to Amended and Restated Agreement of Limited Partnership of AB (incorporated by reference to Ex. 3.2 to Form 10-Q for the fiscal quarter ended September 30, 2006, as filed November 8, 2006).
3.07
Amended and Restated Agreement of Limited Partnership dated October 29, 1999 of AB (incorporated by reference to Ex. 3.3 to Form 10-K for the fiscal year ended December 31, 2003, as filed March 10, 2004).
3.08
Certificate of Amendment to the Certificate of Incorporation of AllianceBernstein Corporation (incorporated by reference to Ex. 99.08 to Form 8-K, as filed February 24, 2006).
4.01
Description of AB Holding Units and AB Units.
10.01
AllianceBernstein 20192022 Incentive Compensation Award Program.*
10.02
AllianceBernstein 20192022 Deferred Cash Compensation Program.*
10.03
Form of Award Agreement, dated as of December 31, 2019,2022, under Incentive Compensation Award Program, Deferred Cash Compensation Program and AB 2017 Long Term Incentive Plan.*
10.04
Form of Award Agreement under AB 2017 Long Term Incentive Plan relating to equity compensation awards to Independent Directors.*
10.05
Summary of AB's Lease at 1345 Avenue of the Americas, New York, New York.
10.06
Summary of AB's Lease at 501 Commerce Street, Nashville, Tennessee.
10.072022 Annual Report
181
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Part IV
ExhibitDescription
10.07
10.08
Transaction Agreement, dated as of March 17, 2022, by and among CarVal Investors, AB Holding and AB (incorporated by reference to Exhibit 10.1 to Form 10-Q for the quarter ended March 31, 2022, as filed April 29, 2022).
10.09
Amendment No.2to the Profit Sharing Plan for Employees of AllianceBernstein L.P., dated as of June 28, 2022.*
10.10
Amended and Restated Revolving Credit Agreement, dated as of October 13, 2021 (incorporated by reference to Ex. 99.01 to Form 8-K, as filed October 19, 2021)
10.11
AllianceBernstein Change in Control Plan for Executive Officers (incorporated by reference to Exhibit 99.01 to Form 8-K, as filed December 14, 2020).*
10.12
Amendment No. 2 to Seth P. Bernstein's Employment Agreement (incorporated by reference to Ex. 10.1 to Form 8-K, as filed December 19, 2019).*
10.09
10.13
Credit Agreement dated as of November 4, 2019 between AllianceBernstein L.P., as borrower, and Equitable Holdings, Inc., as lender (incorporated by reference to Ex. 10.01 to Form 8-K, as filed November 4, 2019).
10.10
10.14
Letter Agreement dated as of May 31, 2019 among James A. Gingrich, AllianceBernstein L.P. and AllianceBernstein Corporation (incorporated by reference to Ex. 99.01 to Form 8-K, as filed June 5, 2019).*
10.11
Amendment to Seth P. Bernstein's Employment Agreement (incorporated by reference to Ex. 10.01 to Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).*

ExhibitDescription
10.12
James A. Gingrich Award Letter dated as of April 24, 2018 (incorporated by reference to Ex. 10.07 to Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).*
10.13
10.15
Kate C. Burke Award Letter dated as of April 24, 2018 (incorporated by reference to Ex. 10.08 to Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).*
10.14
10.16
Laurence E. Cranch Award Letter dated as of April 24, 2018 (incorporated by reference to Ex. 10.09 to Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).*
10.15
John C. Weisenseel Award Letter dated as of April 24, 2018 (incorporated by reference to Ex. 10.10 to Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).*
10.16
Amendment to the Retirement Plan for Employees of AllianceBernstein L.P., dated as of April 1, 2018 (incorporated by reference to Ex. 10.11 to Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).*
10.17
Amendment to the Profit Sharing Plan for Employees of AllianceBernstein L.P., dated as of April 1, 2018 (incorporated by reference to Ex. 10.12 to Form 10-K for the fiscal year ended December 31, 2018, as filed February 13, 2019).*
10.18
Amended and Restated Revolving Credit Agreement, dated as of September 27, 2018 (incorporated by reference to Ex. 10.01 to Form 8-K, as filed October 3, 2018).
10.19
AB 2017 Long Term Incentive Plan (incorporated by reference to Ex. 10.06 to Form 10-K for the fiscal year ended December 31, 2017, as filed February 13, 2018).*
10.20
10.19
Employment Agreement among Seth P. Bernstein, AB, AB Holding and AllianceBernstein Corporation (incorporated by reference to Ex. 10.3 to Form 8-K, as filed May 1, 2017).*
10.21
10.20
Amendment to the Profit Sharing Plan for Employees of AllianceBernstein L.P., dated as of October 20, 2016 and effective as of January 1, 2017 (incorporated by reference to Ex. 10.06 to Form 10-K for the fiscal year ended December 31, 2017, as filed February 13, 2018).*
10.22
10.21
Profit Sharing Plan for Employees of AB, as amended and restated as of January 1, 2015 and as further amended as of January 1, 2017 (incorporated by reference to Ex. 10.05 to Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).*
10.23
10.22
Amendment and Restatement of the Retirement Plan for Employees of AB, as of January 1, 2015 (incorporated by reference to Ex. 10.06 to Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).*
10.24
10.23
Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Citigroup Global Markets Inc., as Dealer (incorporated by reference to Ex. 10.08 to Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).
10.25
10.24
Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Credit Suisse Securities (USA) LLC, as Dealer (incorporated by reference to Ex. 10.09 to Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).
10.26
10.25
Commercial Paper Dealer Agreement 4(a)(2) Program, dated as of June 1, 2015, between AllianceBernstein L.P., as Issuer, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer (incorporated by reference to Ex. 10.10 to Form 10-K for the fiscal year ended December 31, 2015, as filed February 11, 2016).
10.27182
AllianceBernstein
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Part IV
ExhibitDescription
10.26
Investment Advisory and Management Agreement for the General Account of AXA Equitable Financial Life Insurance Company (incorporated by reference to Ex. 10.5 to Form 10-K for the fiscal year ended December 31, 2004, as filed March 15, 2005).
10.28
10.27
Amended and Restated Investment Advisory and Management Agreement dated January 1, 1999 among AB Holding, Alliance Corporate Finance Group Incorporated, and AXA Equitable Financial Life Insurance Company (incorporated by reference to Ex. (a)(6) to Form 10-Q/A for the fiscal quarter ended September 30, 1999, as filed September 28, 2000).
21.01
Subsidiaries of AB.
23.01
Consents of PricewaterhouseCoopers LLP.
31.01
Certification of Mr.Seth Bernstein furnished pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02
Certification of Mr. WeisenseelKate Burke furnished pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01
Certification of Mr.Seth Bernstein furnished for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.02
Certification of Mr. WeisenseelKate Burke furnished for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH
ExhibitDescription
101.SCH
XBRL Taxonomy Extension Schema.
101.CAL
XBRL Taxonomy Extension Calculation Linkbase.
101.LAB
XBRL Taxonomy Extension Label Linkbase.
101.PRE
XBRL Taxonomy Extension Presentation Linkbase.
101.DEF
XBRL Taxonomy Extension Definition Linkbase.
104
The cover page from the Company's Annual Report on Form 10-K for the year ended December 31, 2019,2022, formatted in Inline XBRL (included in Exhibit 101).
*
Denotes a compensatory plan or arrangement


Item 16.Form 10-K Summary

None.

2022 Annual Report183
Signatures
Table of Contents
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AllianceBernstein Holding L.P.
AllianceBernstein Holding L.P.
Date: February 12, 202010, 2023By:/s/ Seth P. Bernstein
Seth P. Bernstein
President & Chief Executive Officer
Pursuant to the requirements of the Exchange Act, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Date: February 10, 2023/s/ Kate Burke
Kate Burke
Chief Operating Officer & Chief Financial Officer
Date: February 10, 2023/s/ Bill Siemers
Bill Siemers
Controller & Chief Accounting Officer
184AllianceBernstein
Table of Contents
Directors
/s/ Seth Bernstein/s/ Joan Lamm-Tennant
Seth BernsteinJoan Lamm-Tennant
President & Chief Executive OfficerChair of the Board
/s/ Nella Domenici/s/ Jeffrey Hurd
Nella DomeniciJeffrey Hurd
DirectorDirector
Date: February 12, 2020/s/ John C. WeisenseelDaniel Kaye/s/ Nick Lane
Daniel KayeJohn C. WeisenseelNick Lane
DirectorChief Financial OfficerDirector
/s/ Kristi Matus/s/ Das Narayandas
Kristi MatusDas Narayandas
DirectorDirector
/s/ Mark Pearson/s/ Charles Stonehill
Mark PearsonCharles Stonehill
DirectorDirector
/s/ Todd Walthall
Todd Walthall
Director
Date: February 12, 20202022 Annual Report/s/ William R. Siemers
William R. Siemers
Controller and Chief Accounting Officer185

Directors
Table of Contents
/s/ Seth P. Bernstein/s/ Ramon de Oliveira
Seth P. BernsteinRamon de Oliveira
President and Chief Executive OfficerChairman of the Board
/s/ Paul L. Audet/s/ Nella L. Domenici
Paul L. AudetNella L. Domenici
DirectorDirector
/s/ Jeffrey J. Hurd/s/ Daniel G. Kaye
Jeffrey J. HurdDaniel G. Kaye
DirectorDirector
/s/ Nick Lane/s/ Kristi A. Matus
Nick LaneKristi A. Matus
DirectorDirector
/s/ Das Narayandas/s/ Mark Pearson
Das NarayandasMark Pearson
DirectorDirector
/s/ Charles G.T. Stonehill
Charles G. T. Stonehill
Director

SCHEDULE II

AllianceBernstein L.P.
Valuation and Qualifying Account - Allowance for Doubtful Accounts
For the Three Years Ending December 31, 2019, 20182022, 2021 and 20172020

DescriptionBalance at
Beginning
of Period		Credited to
Costs and
Expenses		DeductionsBalance at
End
of Period
 (in thousands)
For the year ended December 31, 2022$328 $— $96 (a)$232 
For the year ended December 31, 2021$311 $— $(17)(b)$328 
For the year ended December 31, 2020$309 $100 $98 (c)$311 
(a)Includes accounts written-off as uncollectible of $96.
(b)Includes a net addition to the allowance balance of $28 and accounts written-off as uncollectible of $11.
(c)Includes accounts written-off as uncollectible of $98.
Description 
Balance at Beginning
of Period
 
Credited to
Costs and
Expenses
 Deductions   
Balance at End
of Period
  (in thousands)
For the year ended December 31, 2017 $513
 $150
 $252
 (a) $411
           
For the year ended December 31, 2018 $411
 $—
 $16
 (b) $395
           
For the year ended December 31, 2019 $395
 $132
 $218
 (c) $309

(a)186Includes accounts written-off as uncollectible of $252.AllianceBernstein
(b)
Includes accounts written-off as uncollectible of $16.
(c)Includes accounts written-off as uncollectible of $218.


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