Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2022shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 000-29961 |
Entity Registrant Name | ALLIANCEBERNSTEIN L.P. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-4064930 |
Entity Address, Address Line One | 501 Commerce Street |
Entity Address, City or Town | Nashville |
Entity Address, State or Province | TN |
Entity Address, Postal Zip Code | 37203 |
City Area Code | 615 |
Local Phone Number | 622-0000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 271,775,790 |
Entity Central Index Key | 0001109448 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q1 |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 1,113,223 | $ 1,285,700 |
Cash and securities segregated, at fair value (cost: $1,692,566 and $1,503,554) | 1,692,626 | 1,503,957 |
Receivables, net: | ||
Brokers and dealers | 317,293 | 65,897 |
Brokerage clients | 2,013,265 | 2,059,842 |
AB funds fees | 287,872 | 340,158 |
Other fees | 177,381 | 185,653 |
Investments: | ||
Long-term incentive compensation-related | 52,461 | 63,839 |
Other | 191,022 | 209,579 |
Assets of consolidated company-sponsored investment funds: | ||
Other assets | 373,718 | 262,303 |
Furniture, equipment and leasehold improvements, net | 165,101 | 169,175 |
Goodwill | 3,091,767 | 3,091,763 |
Intangible assets, net | 40,426 | 41,531 |
Deferred sales commissions, net | 69,078 | 74,899 |
Right-of-use assets | 408,508 | 421,980 |
Total assets | 10,535,406 | 10,510,088 |
Payables: | ||
Brokers and dealers | 363,669 | 265,957 |
Securities sold not yet purchased | 3,648 | 3,828 |
Brokerage clients | 3,671,032 | 3,603,558 |
AB mutual funds | 87,106 | 94,962 |
Accounts payable and accrued expenses | 260,665 | 257,307 |
Lease liabilities | 475,790 | 490,735 |
Accrued compensation and benefits | 412,002 | 369,649 |
Debt | 850,000 | 755,000 |
Total liabilities | 6,160,686 | 5,927,996 |
Commitments and contingencies | ||
Redeemable non-controlling interest of consolidated entities | 338,021 | 421,169 |
Capital: | ||
General Partner | 41,832 | 42,850 |
Limited partners: 271,775,790 and 271,453,043 units issued and outstanding | 4,235,643 | 4,336,211 |
Receivables from affiliates | (8,126) | (8,333) |
AB Holding Units held for long-term incentive compensation plans | (130,914) | (119,470) |
Accumulated other comprehensive loss | (101,736) | (90,335) |
Partners’ capital attributable to AB Unitholders | 4,036,699 | 4,160,923 |
Total liabilities, redeemable non-controlling interest and capital | 10,535,406 | 10,510,088 |
Company-sponsored investment funds | ||
Assets of consolidated company-sponsored investment funds: | ||
Cash and cash equivalents | 24,145 | 90,326 |
Investments | 486,926 | 613,025 |
Other assets | 30,594 | 30,461 |
Payables: | ||
Liabilities of consolidated company-sponsored investment funds | $ 36,774 | $ 87,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Cash and securities segregated, at cost | $ 1,692,566 | $ 1,503,554 |
Limited partners, units issued (in units) | 271,775,790 | 271,453,043 |
Limited partners, units outstanding (in shares) | 271,775,790 | 271,453,043 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Dividend and interest income | $ 11,475 | $ 8,684 |
Investment (losses) gains | (39,024) | 1,928 |
Other revenues | 26,155 | 27,711 |
Total revenues | 1,108,536 | 1,008,410 |
Less: Interest expense | 2,849 | 1,144 |
Net revenues | 1,105,687 | 1,007,266 |
Expenses: | ||
Employee compensation and benefits | 439,420 | 406,059 |
Promotion and servicing: | ||
Amortization of deferred sales commissions | 9,383 | 7,899 |
Trade execution, marketing, T&E and other | 51,227 | 46,678 |
General and administrative | 177,625 | 120,223 |
Contingent payment arrangements | 838 | 796 |
Interest on borrowings | 1,411 | 1,294 |
Amortization of intangible assets | 1,136 | 1,479 |
Total expenses | 857,284 | 746,682 |
Operating income | 248,403 | 260,584 |
Income taxes | 12,721 | 16,745 |
Net income | 235,682 | 243,839 |
Net (loss) of consolidated entities attributable to non-controlling interests | (25,045) | (292) |
Net income attributable to AB Unitholders | $ 260,727 | $ 244,131 |
Net income per AB Unit: | ||
Basic (in dollars per share) | $ 0.95 | $ 0.89 |
Diluted (in dollars per share) | $ 0.95 | $ 0.89 |
Investment advisory and services fees | ||
Revenues: | ||
Revenue subject to contracts with customers | $ 823,782 | $ 703,466 |
Bernstein research services | ||
Revenues: | ||
Revenue subject to contracts with customers | 117,807 | 119,021 |
Distribution related | ||
Revenues: | ||
Revenue subject to contracts with customers | 168,341 | 147,600 |
Promotion and servicing: | ||
Distribution-related payments | $ 176,244 | $ 162,254 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 235,682 | $ 243,839 |
Other comprehensive (loss): | ||
Foreign currency translation adjustments, before tax | (11,822) | (7,138) |
Income tax benefit | 101 | 22 |
Foreign currency translation adjustments, net of tax | (11,721) | (7,116) |
Changes in employee benefit related items: | ||
Amortization of prior service cost | 6 | 6 |
Recognized actuarial gain | 323 | 81 |
Changes in employee benefit related items | 329 | 87 |
Income tax (expense) | (9) | 0 |
Employee benefit related items, net of tax | 320 | 87 |
Other comprehensive (loss) | (11,401) | (7,029) |
Less: Comprehensive (loss) in consolidated entities attributable to non-controlling interests | (25,045) | (292) |
Comprehensive income attributable to AB Unitholders | $ 249,326 | $ 237,102 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Receivables from Affiliates | AB Holding Units held for Long-term Incentive Compensation Plans | Accumulated Other Comprehensive (Loss) | General Partner’s Capital | Limited Partners' Capital |
Partners' capital, beginning balance at Dec. 31, 2020 | $ (8,316) | $ (57,219) | $ (94,203) | $ 41,776 | $ 4,229,485 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 243,839 | 2,441 | 241,690 | |||
Cash distributions | (2,898) | (286,813) | ||||
Long-term incentive compensation plans activity | 142 | 18,002 | (7) | (708) | ||
Issuance of AB Units, net | (71,013) | 710 | 70,250 | |||
Capital contributions from AB Holding | 6,449 | |||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (35,854) | |||||
Re-valuation of AB Holding Units held in rabbi trust | 2,277 | |||||
Foreign currency translation adjustment, net of tax | (7,116) | (7,116) | ||||
Changes in employee benefit related items, net of tax | 87 | 87 | ||||
Partners' capital, ending balance at Mar. 31, 2021 | 4,049,162 | (1,725) | (143,807) | (101,232) | 42,022 | 4,253,904 |
Partners' capital, beginning balance at Dec. 31, 2021 | 4,160,923 | (8,333) | (119,470) | (90,335) | 42,850 | 4,336,211 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 235,682 | 2,607 | 258,120 | |||
Cash distributions | (3,781) | (374,029) | ||||
Long-term incentive compensation plans activity | 174 | 18,442 | (1) | (157) | ||
Issuance of AB Units, net | (15,655) | 157 | 15,498 | |||
Capital contributions from AB Holding | 33 | |||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (13,822) | |||||
Re-valuation of AB Holding Units held in rabbi trust | (409) | |||||
Foreign currency translation adjustment, net of tax | (11,721) | (11,721) | ||||
Changes in employee benefit related items, net of tax | 320 | 320 | ||||
Partners' capital, ending balance at Mar. 31, 2022 | $ 4,036,699 | $ (8,126) | $ (130,914) | $ (101,736) | $ 41,832 | $ 4,235,643 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 235,682 | $ 243,839 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred sales commissions | 9,383 | 7,899 |
Non-cash long-term incentive compensation expense | 18,616 | 18,144 |
Depreciation and other amortization | 11,124 | 10,967 |
Unrealized losses on investments | 21,024 | (175) |
Operating Lease, Expense | 26,557 | 23,907 |
Other, net | 4,395 | 10,977 |
Changes in assets and liabilities: | ||
(Increase) decrease in securities, segregated | (188,669) | 340,605 |
(Increase) in receivables | (193,178) | (117,622) |
Decrease (increase) in investments | 8,434 | 53,493 |
(Increase) in deferred sales commissions | (3,562) | (10,952) |
Increase (decrease) in other assets | (111,939) | (68,957) |
Increase (decrease) in payables | 199,166 | (218,887) |
Increase (decrease) in accounts payable and accrued expenses | 20,473 | (1,566) |
Increase in accrued compensation and benefits | 43,766 | 66,909 |
Cash payments to relieve operating lease liabilities | (26,828) | (28,007) |
Net cash provided by operating activities | 150,183 | 328,795 |
Cash flows from investing activities: | ||
Purchases of furniture, equipment and leasehold improvements | (6,237) | (15,584) |
Acquisition of business, net of cash acquired | 0 | (3,795) |
Net cash used in investing activities | (6,237) | (19,379) |
Cash flows from financing activities: | ||
Borrowings (repayments) of debt, net | 95,000 | (50,000) |
(Decrease) in overdrafts payable | (14,736) | (1,190) |
Distributions to General Partner and Unitholders | (377,810) | (289,711) |
Capital contributions (from) to affiliates | (529) | 6,096 |
Additional investments by AB Holding with proceeds from exercise of compensatory options to buy AB Holding Units | 0 | 1,914 |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net | (13,822) | (35,854) |
Other | (1,173) | (475) |
Net cash used in financing activities | (371,173) | (382,720) |
Effect of exchange rate changes on cash and cash equivalents | (11,431) | (1,589) |
Net decrease in cash and cash equivalents | (238,658) | (74,893) |
Cash and cash equivalents as of beginning of the period | 1,376,026 | 1,073,906 |
Cash and cash equivalents as of end of the period | 1,137,368 | 999,013 |
Non-cash investing activities: | ||
Fair value of assets acquired (less cash acquired of $2.8 million in the first quarter of 2021) | 0 | 12,962 |
Fair value of liabilities assumed | 0 | 1,642 |
Non-cash financing activities: | ||
Payables recorded under contingent payment arrangements | 0 | 7,525 |
Company-sponsored investment funds | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Unrealized losses on investments | 40,898 | 6,941 |
Changes in assets and liabilities: | ||
Decrease (increase) in investments | 85,201 | (12,401) |
Increase (decrease) in other assets | (50,360) | 3,681 |
Cash flows from financing activities: | ||
(Redemptions) of non-controlling interest in consolidated company-sponsored investment funds, net | $ (58,103) | $ (13,500) |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash acquired from acquisition | $ 2.8 |
Business Description Organizati
Business Description Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description Organization and Basis of Presentation | Business Description Organization and Basis of Presentation Business Description We provide diversified investment management, research and related services globally to a broad range of clients. Our principal services include: • 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. • Retail 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-managed account programs sponsored by financial intermediaries worldwide and other investment vehicles. • Private Wealth 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-managed accounts, hedge funds, mutual funds and other investment vehicles. • Bernstein Research 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. Our research disciplines include economic, fundamental equity, fixed income and quantitative research. In addition, we have expertise 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 traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; • Alternative investments, including hedge funds, fund of funds, direct lending, real estate and private equity; • Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds; and • Some passive management, including index and enhanced index strategies. Organization As of March 31, 2022, EQH owned approximately 4.0% 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 1.0% general partnership interest in AB. As of March 31, 2022, the ownership structure of AB, including limited partnership units outstanding as well as the general partner's 1.0% interest, was as follows: EQH and its subsidiaries 63.0 % AB Holding 36.3 Unaffiliated holders 0.7 100.0 % Including both the general partnership and limited partnership interests in AB Holding and AB, EQH and its subsidiaries had an approximate 64.5% economic interest in AB as of March 31, 2022. Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the interim results, have been made. The preparation of the condensed 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the interim reporting periods. Actual results could differ from those estimates. The condensed consolidated statement of financial condition as of December 31, 2021 was derived from audited financial statements. Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements under principles generally accepted in the United States of America ("GAAP") and the rules of the SEC. Principles of Consolidation The condensed 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/or voting interest entities (“VOEs”) in which AB has a controlling financial interest. Non-controlling interests on the condensed 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. Reclassifications Certain prior period amounts have been reclassified to conform to the current period's presentation. Amounts previously presented on the Statement of Cash Flows as (increase) decrease in right-of-use assets and increase (decrease) in lease liabilities during 2021 are now presented net as "Cash payments to relieve operating lease liabilities". Non-cash lease expense under adjustments to reconcile net income to net cash provided by operating activities formerly classified as "Depreciation and other amortization" during 2021 are now classified separately on the Statement of Cash Flows as "Non-cash lease expense". Amounts previously classified under Financing "Other" related to non-cash accretion expense associated with our contingent payment arrangements during 2021 have been reclassified to non-cash "Other, net" under adjustments to reconcile net income to net cash provided by operating activities. 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 require disclosure in these financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies During the first quarter of 2022, there have been no recently adopted accounting pronouncements or pronouncements not yet adopted. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenues for the three months ended March 31, 2022 and 2021 consisted of the following: Three Months Ended March 31, 2022 2021 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 747,813 $ 687,691 Performance-based fees 75,969 15,775 Bernstein research services 117,807 119,021 Distribution revenues All-in-management fees 81,221 85,182 12b-1 fees 19,517 20,034 Other distribution fees 67,603 42,384 Other revenues Shareholder servicing fees 22,414 21,695 Other 3,509 5,683 1,135,853 997,465 Not subject to contracts with customers: Dividend and interest income, net of interest expense 8,626 7,540 Investment (losses) gains (39,024) 1,928 Other revenues 232 333 (30,166) 9,801 Total net revenues $ 1,105,687 $ 1,007,266 |
Long-term Incentive Compensatio
Long-term Incentive Compensation Plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Long-term Incentive Compensation Plans | 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”). 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-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. Repurchases and retention of AB Holding Units for the three months ended March 31, 2022 and 2021 consisted of the following: Three Months Ended March 31, 2022 2021 (in millions) Total amount of AB Holding Units Purchased/Retained (1) 0.3 1.0 Total Cash Paid for AB Holding Units Purchased/Retained (1) $ 14.0 $ 37.4 Open Market Purchases of AB Holding Units Purchased (1) — 0.6 Total Cash Paid for Open Market Purchases of AB Holding Units (1) $ — $ 24.2 (1) Purchased on a trade date basis. The difference between open-market purchases and units retained reflects the retention of AB Holding Units from employees 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 condensed consolidated statements of cash flows are net of AB Holding Unit purchases 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 under the terms and limitations specified in the plan to repurchase AB Holding Units on our behalf. Repurchases are subject to regulations promulgated by the SEC as well as certain price, market volume and timing constraints specified in the plan. We did not adopt a plan during the first 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. During the first three months of 2022 and 2021, we awarded to employees and Eligible Directors 0.7 million and 3.4 million restricted AB Holding Unit awards, respectively. We use any AB Holding Units repurchased during the applicable period and newly-issued AB Holding Units to fund these awards. |
Net Income per Unit
Net Income per Unit | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Unit [Abstract] | |
Net Income per Unit | 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 period. 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 period. Three Months Ended March 31, 2022 2021 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 260,727 $ 244,131 Weighted average limited partnership units outstanding – basic 271,383 272,332 Dilutive effect of compensatory options to buy AB Holding Units 3 32 Weighted average limited partnership units outstanding – diluted 271,386 272,364 Basic net income per AB Unit $ 0.95 $ 0.89 Diluted net income per AB Unit $ 0.95 $ 0.89 |
Cash Distributions
Cash Distributions | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Cash Distributions | 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. |
Cash and Securities Segregated
Cash and Securities Segregated Under Federal Regulations and Other Requirements | 3 Months Ended |
Mar. 31, 2022 | |
Brokers and Dealers [Abstract] | |
Cash and Securities Segregated Under Federal Regulations and Other Requirements | Cash and Securities Segregated Under Federal Regulations and Other Requirements As of March 31, 2022 and December 31, 2021, $1.7 billion and $1.5 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. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of: March 31, December 31, (in thousands) Equity securities: Long-term incentive compensation-related $ 24,128 $ 32,237 Seed capital 127,383 133,992 Other 2,232 18,243 Exchange-traded options 445 1,893 Investments in limited partnership hedge funds: Long-term incentive compensation-related 28,333 31,602 Seed capital 26,392 19,318 Time deposits 21,942 21,024 Other 12,628 15,109 Total investments $ 243,483 $ 273,418 Total investments related to long-term incentive compensation obligations of $52.5 million and $63.8 million as of March 31, 2022 and December 31, 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-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. Regarding 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 14, Consolidated Company-Sponsored Investment Funds , for a description of the seed capital investments that we consolidate. As of March 31, 2022 and December 31, 2021, our total seed capital investments were $320.5 million and $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 March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 (in thousands) Net (losses) gains recognized during the period $ (16,550) $ 4,887 Less: net gains recognized during the period on equity securities sold during the period 4,539 4,565 Unrealized (losses) gains recognized during the period on equity securities held $ (21,089) $ 322 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments See Note 14, Consolidated Company-Sponsored Investment Funds , for disclosure of derivative instruments held by our consolidated company-sponsored investment funds. We enter 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 . The notional value and fair value as of March 31, 2022 and December 31, 2021 for derivative instruments (excluding derivative instruments relating to our options desk trading activities discussed below ) not designated as hedging instruments were as follows: Fair Value Notional Value Derivative Assets Derivative Liabilities (in thousands) March 31, 2022: Exchange-traded futures $ 100,466 $ 1,564 $ 1,895 Currency forwards 66,216 7,647 7,133 Interest rate swaps 10,683 545 652 Credit default swaps 159,622 9,572 4,883 Total return swaps 61,597 2,754 1,060 Option swaps 50,000 — 524 Total derivatives $ 448,584 $ 22,082 $ 16,147 December 31, 2021: Exchange-traded futures $ 131,876 $ 392 $ 1,186 Currency forwards 66,058 7,344 6,980 Interest rate swaps 13,483 497 833 Credit default swaps 155,757 6,594 6,967 Total return swaps 63,817 595 527 Option swaps 50,000 — 430 Total derivatives $ 480,991 $ 15,422 $ 16,923 As of March 31, 2022 and December 31, 2021, the derivative assets and liabilities are included in both receivables and payables to brokers and dealers on our condensed consolidated statements of financial condition. The gains and losses for derivative instruments (excluding our options desk trading activities discussed below ) for the three months ended March 31, 2022 and 2021 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows: Three Months Ended March 31, 2022 2021 (in thousands) Exchange-traded futures $ 7,513 $ 1,135 Currency forwards 544 1,181 Interest rate swaps (73) 88 Credit default swaps 1,717 (522) Total return swaps 7,406 (907) Option swaps 2,625 1,361 Net gains on derivative instruments $ 19,732 $ 2,336 We may be exposed to credit-related losses in the event of non-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 March 31, 2022 and December 31, 2021, we held $7.8 million and $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 condensed consolidated statements of financial condition. Although notional amount typically is utilized as the 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 assets under management (“AUM”), falls below a specified threshold, either a default or a termination event permitting us or 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 March 31, 2022 and December 31, 2021, we delivered $6.5 million and $5.6 million, respectively, of cash collateral into brokerage accounts. We report this cash collateral in cash and cash equivalents in our condensed consolidated statements of financial condition. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Offsetting Assets and Liabilities See Note 14, Consolidated Company-Sponsored Investment Funds , for disclosure of offsetting assets and liabilities of our consolidated company-sponsored investment funds. Offsetting of assets as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net (in thousands) March 31, 2022: Securities borrowed $ 97,865 $ — $ 97,865 $ (93,012) $ — $ 4,853 Derivatives $ 22,082 $ — $ 22,082 $ — $ (7,782) $ 14,300 Long exchange-traded options $ 445 $ — $ 445 $ — $ — $ 445 December 31, 2021: Securities borrowed $ 19,899 $ — $ 19,899 $ (18,327) $ — $ 1,572 Derivatives $ 15,422 $ — $ 15,422 $ — $ (2,872) $ 12,550 Long exchange-traded options $ 1,893 $ — $ 1,893 $ — $ — $ 1,893 Offsetting of liabilities as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net Amount (in thousands) March 31, 2022: Securities loaned $ 81,049 $ — $ 81,049 $ (78,208) $ — $ 2,841 Derivatives $ 16,147 $ — $ 16,147 $ — $ (6,216) $ 9,931 Short exchange-traded options $ 221 $ — $ 221 $ — $ — $ 221 December 31, 2021: Securities loaned $ 23,911 $ — $ 23,911 $ (23,373) $ — $ 538 Derivatives $ 16,923 $ — $ 16,923 $ — $ (5,572) $ 11,351 Short exchange-traded options $ 2,774 $ — $ 2,774 $ — $ — $ 2,774 Cash collateral, whether pledged or received on derivative instruments, is not considered material and, accordingly, is not disclosed by counterparty. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value See Note 14, 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis Valuation of our financial instruments by pricing observability levels as of March 31, 2022 and December 31, 2021 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2022: Money markets $ 122,582 $ — $ — $ — $ — $ 122,582 Securities segregated (U.S. Treasury Bills) — 1,692,536 — — — 1,692,536 Derivatives 1,564 20,518 — — — 22,082 Investments: Equity securities 125,428 28,052 119 144 — 153,743 Long exchange-traded options 445 — — — — 445 Limited partnership hedge funds (2) — — — — 54,725 54,725 Time deposits (3) — — — — 21,942 21,942 Other investments 7,861 — — — 4,767 12,628 Total investments 133,734 28,052 119 144 81,434 243,483 Total assets measured at fair value $ 257,880 $ 1,741,106 $ 119 $ 144 $ 81,434 $ 2,080,683 Securities sold not yet purchased: Short equities – corporate $ 3,427 $ — $ — $ — $ — $ 3,427 Short exchange-traded options 221 — — — — 221 Derivatives 1,895 14,252 — — — 16,147 Contingent payment arrangements — — 39,098 — — 39,098 Total liabilities measured at fair value $ 5,543 $ 14,252 $ 39,098 $ — $ — $ 58,893 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2021: Money markets $ 151,156 $ — $ — $ — $ — $ 151,156 Securities segregated (U.S. Treasury Bills) — 1,503,828 — — — 1,503,828 Derivatives 392 15,030 — — — 15,422 Investments: Equity securities 144,917 39,284 126 145 — 184,472 Long exchange-traded options 1,893 — — — — 1,893 Limited partnership hedge funds (2) — — — — 50,920 50,920 Time deposits (3) — — — — 21,024 21,024 Other investments 9,094 — — — 6,015 15,109 Total investments 155,904 39,284 126 145 77,959 273,418 Total assets measured at fair value $ 307,452 $ 1,558,142 $ 126 $ 145 $ 77,959 $ 1,943,824 Securities sold not yet purchased: Short equities – corporate $ 1,054 $ — $ — $ — $ — $ 1,054 Short exchange-traded options 2,774 — — — — 2,774 Derivatives 1,186 15,737 — — — 16,923 Contingent payment arrangements — — 38,260 — — 38,260 Total liabilities measured at fair value $ 5,014 $ 15,737 $ 38,260 $ — $ — $ 59,011 (1) Investments measured at fair value using NAV (or its equivalent) as a practical expedient. (2) Investments in equity method investees that are not measured at fair value in accordance with GAAP. (3) Investments carried at amortized cost that are not measured at fair value in accordance with GAAP. Other investments included in Level 1 of the fair value hierarchy include our investment in a mutual fund measured at fair value ($7.9 million and $9.1 million as of March 31, 2022 and December 31, 2021, respectively). Other investments not measured at fair value include (i) investments in start-up companies that do not have a readily available fair value (these investments were $0.3 million as of March 31, 2022 and December 31, 2021), (ii) investments in equity method investees that are not measured at fair value in accordance with GAAP ($1.6 million and $2.9 million as of March 31, 2022 and December 31, 2021, respectively), and (iii) broker dealer exchange memberships that are not measured at fair value in accordance with GAAP ($2.8 million as of March 31, 2022 and December 31, 2021). 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 long 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 based upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. During the three months ended March 31, 2022 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: Three Months Ended March 31, 2022 2021 (in thousands) Balance as of beginning of period $ 126 $ 125 Purchases — — Sales — — Realized gains (losses), net — — Unrealized (losses), net (7) (1) Balance as of end of period $ 119 $ 124 Realized and unrealized gains and losses on Level 3 financial instruments are recorded in investment gains and losses in the condensed consolidated statements of income. As part of acquisitions made by the Company, we may enter into 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: Three Months Ended March 31, 2022 2021 (in thousands) Balance as of beginning of period $ 38,260 $ 27,750 Addition — 7,526 Accretion 838 797 Payments — — Balance as of end of period $ 39,098 $ 36,073 The liabilities were valued using expected revenue growth rates and discount rates. As of March 31, 2022, the expected revenue growth rates range from 2.0% to 83.9%, with a weighted average of 7.9%, 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. As of March 31, 2021 the expected revenue growth rates ranged from 2.0% to 135.6%, with a weighted average of 9.0%, calculated using cumulative revenues and a range of revenue growth rates (excluding revenue growth from additional AUM contributed from existing clients). The discount rates ranged from 1.9% to 20.0%, with a weighted average of 10.8%, calculated using total contingent liabilities and range of discount rates. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 can 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. AB may be involved in various 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. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have remaining lease terms of one year to 15 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. Leases included in the condensed consolidated statement of financial condition as of March 31, 2022 and December 31, 2021 were as follows: Classification March 31, 2022 December 31, 2021 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 398,804 $ 414,105 Operating lease liabilities Lease liabilities 466,439 482,781 Finance Leases Property and equipment, gross Right-of-use assets 13,284 10,947 Amortization of right-of-use assets Right-of-use assets (3,580) (3,072) Property and equipment, net 9,704 7,875 Finance lease liabilities Lease liabilities 9,351 7,954 The components of lease expense included in the condensed consolidated statement of income as of March 31, 2022 and March 31, 2021 were as follows: Three Months Ended March 31, Classification 2022 2021 (in thousands) Operating lease cost General and administrative $ 24,525 $ 24,418 Financing lease cost: Amortization of right-of-use assets General and administrative 740 501 Interest on lease liabilities Interest expense 37 22 Total finance lease cost 777 523 Variable lease cost (1) General and administrative 10,687 9,546 Sublease income General and administrative (8,561) (9,807) Net lease cost $ 27,428 $ 24,680 (1) Variable lease expense includes operating expenses, real estate taxes and employee parking. The sub-lease 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. We derive most of our sub-tenant income 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 were as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2022 (excluding the three months ended March 31, 2022) $ 75,061 $ 1,940 $ 77,001 2023 97,522 2,887 100,409 2024 100,148 2,043 102,191 2025 34,308 1,747 36,055 2026 32,868 1,011 33,879 Thereafter 172,179 — 172,179 Total lease payments 512,086 9,628 521,714 Less interest (45,647) (277) Present value of lease liabilities $ 466,439 $ 9,351 We have signed a lease which commences in 2024, relating to approximately 166,000 square feet 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 $393.0 million. Lease term and discount rate: Weighted average remaining lease term (years): Operating leases 7.51 Finance leases 3.73 Weighted average discount rate: Operating leases 2.74 % Finance leases 1.62 % Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 7,719 12,161 Finance leases 2,569 3,283 (1) Represents non-cash activity and, accordingly, is not reflected in the consolidated statements of cash flows. |
Leases | Leases We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have remaining lease terms of one year to 15 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. Leases included in the condensed consolidated statement of financial condition as of March 31, 2022 and December 31, 2021 were as follows: Classification March 31, 2022 December 31, 2021 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 398,804 $ 414,105 Operating lease liabilities Lease liabilities 466,439 482,781 Finance Leases Property and equipment, gross Right-of-use assets 13,284 10,947 Amortization of right-of-use assets Right-of-use assets (3,580) (3,072) Property and equipment, net 9,704 7,875 Finance lease liabilities Lease liabilities 9,351 7,954 The components of lease expense included in the condensed consolidated statement of income as of March 31, 2022 and March 31, 2021 were as follows: Three Months Ended March 31, Classification 2022 2021 (in thousands) Operating lease cost General and administrative $ 24,525 $ 24,418 Financing lease cost: Amortization of right-of-use assets General and administrative 740 501 Interest on lease liabilities Interest expense 37 22 Total finance lease cost 777 523 Variable lease cost (1) General and administrative 10,687 9,546 Sublease income General and administrative (8,561) (9,807) Net lease cost $ 27,428 $ 24,680 (1) Variable lease expense includes operating expenses, real estate taxes and employee parking. The sub-lease 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. We derive most of our sub-tenant income 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 were as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2022 (excluding the three months ended March 31, 2022) $ 75,061 $ 1,940 $ 77,001 2023 97,522 2,887 100,409 2024 100,148 2,043 102,191 2025 34,308 1,747 36,055 2026 32,868 1,011 33,879 Thereafter 172,179 — 172,179 Total lease payments 512,086 9,628 521,714 Less interest (45,647) (277) Present value of lease liabilities $ 466,439 $ 9,351 We have signed a lease which commences in 2024, relating to approximately 166,000 square feet 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 $393.0 million. Lease term and discount rate: Weighted average remaining lease term (years): Operating leases 7.51 Finance leases 3.73 Weighted average discount rate: Operating leases 2.74 % Finance leases 1.62 % Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 7,719 12,161 Finance leases 2,569 3,283 (1) Represents non-cash activity and, accordingly, is not reflected in the consolidated statements of cash flows. |
Consolidated Company-Sponsored
Consolidated Company-Sponsored Investment Funds | 3 Months Ended |
Mar. 31, 2022 | |
Consolidated Company-Sponsored Investment Funds [Abstract] | |
Consolidated Company-Sponsored Investment Funds | 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. 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 regarding 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 included in our condensed consolidated statements of financial condition were as follows: March 31, 2022 December 31, 2021 (in thousands) Cash and cash equivalents $ 24,145 $ 90,326 Investments 486,926 613,025 Other assets 30,594 30,461 Total assets $ 541,665 $ 733,812 Liabilities $ 36,774 $ 87,000 Redeemable non-controlling interest 338,021 421,169 Partners' capital attributable to AB Unitholders 166,870 225,643 Total liabilities, redeemable non-controlling interest and partners' capital $ 541,665 $ 733,812 During the first quarter of 2022, we deconsolidated three funds in which we had a seed investment of approximately $55.1 million 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 March 31, 2022 and December 31, 2021 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2022: Investments $ 84,737 $ 401,941 $ 248 $ 486,926 Derivatives 1,782 2,620 — 4,402 Total assets measured at fair value $ 86,519 $ 404,561 $ 248 $ 491,328 Derivatives 16,013 2,927 — 18,940 Total liabilities measured at fair value $ 16,013 $ 2,927 $ — $ 18,940 December 31, 2021: Investments $ 165,415 $ 444,253 $ 3,357 $ 613,025 Derivatives 622 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 11 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. The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company-sponsored investment funds was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Balance as of beginning of period $ 3,357 $ 619 Deconsolidated funds (3,351) — Transfers (out) (6) (10) Purchases 248 119 Sales — (3) Realized gains, net — 3 Unrealized (losses), net — (11) Balance as of end of period $ 248 $ 717 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 condensed consolidated statements of income. Derivative Instruments As of March 31, 2022 and December 31, 2021, the VIEs held $14.5 million and $12.5 million (net), respectively, of futures, forwards and swaps within their portfolios. For the three months ended March 31, 2022 and 2021, we recognized $0.5 million of gains and $1.1 million of losses, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the condensed consolidated statements of income. As of March 31, 2022 and December 31, 2021, the VIEs held $1.5 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 condensed consolidated statements of financial condition. As of March 31, 2022 and December 31, 2021, the VIEs delivered $2.5 million and $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 condensed consolidated statements of financial condition. Offsetting Assets and Liabilities Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net (in thousands) March 31, 2022: Derivatives $ 4,402 $ — $ 4,402 $ — $ (1,524) $ 2,878 December 31, 2021: Derivatives $ 5,887 $ — $ 5,887 $ — $ (904) $ 4,983 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net Amount (in thousands) March 31, 2022: Derivatives $ 18,940 $ — $ 18,940 $ — $ (2,486) $ 16,454 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 March 31, 2022, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $59.1 billion, and our maximum risk of loss is our investment of $15.1 million in these VIEs and our advisory fee receivables from these VIEs is $70.3 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 was $75.7 million. |
Units Outstanding
Units Outstanding | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Units Outstanding | Units Outstanding Changes in AB Units outstanding during the three-month period ended March 31, 2022 were as follows: Outstanding as of December 31, 2021 271,453,043 Units issued 582,992 Units retired (260,245) Outstanding as of March 31, 2022 271,775,790 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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 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 March 31, 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 March 31, 2022 and December 31, 2021, we had no amounts outstanding under the Credit Facility. Furthermore, during the first three months of 2022 and the full year 2021, we did not draw upon the Credit Facility. AB also 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. 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 March 31, 2022 and December 31, 2021, AB had $850.0 million and $755.0 million outstanding under the EQH Facility, with interest rates of approximately 0.3% and 0.2%, respectively. Average daily borrowings on the EQH Facility for the first three months of 2022 and the full year 2021 were $645.4 million and $404.6 million, respectively, with a weighted average interest rate of approximately 0.2%. 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 March 31, 2022 and December 31, 2021, we had no amounts outstanding under the EQH Uncommitted Facility and have not drawn upon the facility since its inception. As of March 31, 2022 and December 31, 2021, we had no commercial paper outstanding. 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 during the first three months of 2022 and full year 2021 were $257.0 million and $157.0 million, respectively, with weighted average interest rates of approximately 0.2% and 0.2%, respectively. AB had a $200.0 million committed, unsecured senior revolving credit facility (the "Revolver") with a leading international bank, which matured on November 16, 2021. Average daily borrowings under the Revolver for the full year 2021 were $13.3 million with a weighted average interest rate of approximately 1.1%. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | AcquisitionOn March 17, 2022, AB Holding and AB entered into a transaction agreement to acquire 100% of the equity interests of CarVal Investors, L.P. (“CarVal”) in exchange for (i) AB Holding Units to be delivered in 2022 (“Upfront Payment”), and (ii) the issuance of additional AB Holding Units at future dates that are contingent upon achievement of performance hurdles by CarVal during the six-year period beginning January 1, 2022 and ending on December 31, 2027. The Upfront Payment will total approximately $750,000,000 and consist of the AB Holding Units discussed above as well as cash to fund certain CarVal business expenses and other obligations. Immediately following the acquisition of CarVal by AB Holding, AB Holding will contribute all of the equity interests of CarVal to AB in exchange for AB Units. The transaction is expected to close in the third quarter of 2022. The transaction agreement has been filed as Exhibit 10.1 to this Form 10-Q. |
Business Description Organiza_2
Business Description Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the interim results, have been made. The preparation of the condensed 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the interim reporting periods. Actual results could differ from those estimates. The condensed consolidated statement of financial condition as of December 31, 2021 was derived from audited financial statements. Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements under principles generally accepted in the United States of America ("GAAP") and the rules of the SEC. |
Principles of Consolidation | Principles of Consolidation The condensed 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/or voting interest entities (“VOEs”) in which AB has a controlling financial interest. Non-controlling interests on the condensed 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. |
Reclassifications | ReclassificationsCertain prior period amounts have been reclassified to conform to the current period's presentation. Amounts previously presented on the Statement of Cash Flows as (increase) decrease in right-of-use assets and increase (decrease) in lease liabilities during 2021 are now presented net as "Cash payments to relieve operating lease liabilities". Non-cash lease expense under adjustments to reconcile net income to net cash provided by operating activities formerly classified as "Depreciation and other amortization" during 2021 are now classified separately on the Statement of Cash Flows as "Non-cash lease expense". Amounts previously classified under Financing "Other" related to non-cash accretion expense associated with our contingent payment arrangements during 2021 have been reclassified to non-cash "Other, net" under adjustments to reconcile net income to net cash provided by operating activities. |
Recently Adopted Accounting Pronouncements / Accounting Pronouncements Not Yet Adopted |
Business Description Organiza_3
Business Description Organization and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Ownership Structure of AB as a Percentage of General and Limited Partnership Interests | As of March 31, 2022, the ownership structure of AB, including limited partnership units outstanding as well as the general partner's 1.0% interest, was as follows: EQH and its subsidiaries 63.0 % AB Holding 36.3 Unaffiliated holders 0.7 100.0 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues for the three months ended March 31, 2022 and 2021 consisted of the following: Three Months Ended March 31, 2022 2021 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 747,813 $ 687,691 Performance-based fees 75,969 15,775 Bernstein research services 117,807 119,021 Distribution revenues All-in-management fees 81,221 85,182 12b-1 fees 19,517 20,034 Other distribution fees 67,603 42,384 Other revenues Shareholder servicing fees 22,414 21,695 Other 3,509 5,683 1,135,853 997,465 Not subject to contracts with customers: Dividend and interest income, net of interest expense 8,626 7,540 Investment (losses) gains (39,024) 1,928 Other revenues 232 333 (30,166) 9,801 Total net revenues $ 1,105,687 $ 1,007,266 |
Long-term Incentive Compensat_2
Long-term Incentive Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | Repurchases and retention of AB Holding Units for the three months ended March 31, 2022 and 2021 consisted of the following: Three Months Ended March 31, 2022 2021 (in millions) Total amount of AB Holding Units Purchased/Retained (1) 0.3 1.0 Total Cash Paid for AB Holding Units Purchased/Retained (1) $ 14.0 $ 37.4 Open Market Purchases of AB Holding Units Purchased (1) — 0.6 Total Cash Paid for Open Market Purchases of AB Holding Units (1) $ — $ 24.2 (1) Purchased on a trade date basis. The difference between open-market purchases and units retained reflects the retention of AB Holding Units from employees to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. |
Net Income per Unit (Tables)
Net Income per Unit (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Unit [Abstract] | |
Schedule of Earnings Per Unit, Basic and Diluted | 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 period. 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 period. Three Months Ended March 31, 2022 2021 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 260,727 $ 244,131 Weighted average limited partnership units outstanding – basic 271,383 272,332 Dilutive effect of compensatory options to buy AB Holding Units 3 32 Weighted average limited partnership units outstanding – diluted 271,386 272,364 Basic net income per AB Unit $ 0.95 $ 0.89 Diluted net income per AB Unit $ 0.95 $ 0.89 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consist of: March 31, December 31, (in thousands) Equity securities: Long-term incentive compensation-related $ 24,128 $ 32,237 Seed capital 127,383 133,992 Other 2,232 18,243 Exchange-traded options 445 1,893 Investments in limited partnership hedge funds: Long-term incentive compensation-related 28,333 31,602 Seed capital 26,392 19,318 Time deposits 21,942 21,024 Other 12,628 15,109 Total investments $ 243,483 $ 273,418 |
Portion of Unrealized Gains (Losses) Related to Equity Securities | The portion of unrealized gains (losses) related to equity securities, as defined by ASC 321-10, held as of March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 (in thousands) Net (losses) gains recognized during the period $ (16,550) $ 4,887 Less: net gains recognized during the period on equity securities sold during the period 4,539 4,565 Unrealized (losses) gains recognized during the period on equity securities held $ (21,089) $ 322 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional and Fair Value for Derivative Instruments Not Designated as Hedging Instruments | The notional value and fair value as of March 31, 2022 and December 31, 2021 for derivative instruments (excluding derivative instruments relating to our options desk trading activities discussed below ) not designated as hedging instruments were as follows: Fair Value Notional Value Derivative Assets Derivative Liabilities (in thousands) March 31, 2022: Exchange-traded futures $ 100,466 $ 1,564 $ 1,895 Currency forwards 66,216 7,647 7,133 Interest rate swaps 10,683 545 652 Credit default swaps 159,622 9,572 4,883 Total return swaps 61,597 2,754 1,060 Option swaps 50,000 — 524 Total derivatives $ 448,584 $ 22,082 $ 16,147 December 31, 2021: Exchange-traded futures $ 131,876 $ 392 $ 1,186 Currency forwards 66,058 7,344 6,980 Interest rate swaps 13,483 497 833 Credit default swaps 155,757 6,594 6,967 Total return swaps 63,817 595 527 Option swaps 50,000 — 430 Total derivatives $ 480,991 $ 15,422 $ 16,923 |
Gains and Losses for Derivative Instruments Recognized in Investment Gains (Losses) in the Condensed Consolidated Statements of Income | The gains and losses for derivative instruments (excluding our options desk trading activities discussed below ) for the three months ended March 31, 2022 and 2021 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows: Three Months Ended March 31, 2022 2021 (in thousands) Exchange-traded futures $ 7,513 $ 1,135 Currency forwards 544 1,181 Interest rate swaps (73) 88 Credit default swaps 1,717 (522) Total return swaps 7,406 (907) Option swaps 2,625 1,361 Net gains on derivative instruments $ 19,732 $ 2,336 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Offsetting [Abstract] | |
Schedule of Offsetting of Financial Assets | Offsetting of assets as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net (in thousands) March 31, 2022: Securities borrowed $ 97,865 $ — $ 97,865 $ (93,012) $ — $ 4,853 Derivatives $ 22,082 $ — $ 22,082 $ — $ (7,782) $ 14,300 Long exchange-traded options $ 445 $ — $ 445 $ — $ — $ 445 December 31, 2021: Securities borrowed $ 19,899 $ — $ 19,899 $ (18,327) $ — $ 1,572 Derivatives $ 15,422 $ — $ 15,422 $ — $ (2,872) $ 12,550 Long exchange-traded options $ 1,893 $ — $ 1,893 $ — $ — $ 1,893 Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net (in thousands) March 31, 2022: Derivatives $ 4,402 $ — $ 4,402 $ — $ (1,524) $ 2,878 December 31, 2021: Derivatives $ 5,887 $ — $ 5,887 $ — $ (904) $ 4,983 |
Schedule of Offsetting of Financial Liabilities | Offsetting of liabilities as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net Amount (in thousands) March 31, 2022: Securities loaned $ 81,049 $ — $ 81,049 $ (78,208) $ — $ 2,841 Derivatives $ 16,147 $ — $ 16,147 $ — $ (6,216) $ 9,931 Short exchange-traded options $ 221 $ — $ 221 $ — $ — $ 221 December 31, 2021: Securities loaned $ 23,911 $ — $ 23,911 $ (23,373) $ — $ 538 Derivatives $ 16,923 $ — $ 16,923 $ — $ (5,572) $ 11,351 Short exchange-traded options $ 2,774 $ — $ 2,774 $ — $ — $ 2,774 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net Amount (in thousands) March 31, 2022: Derivatives $ 18,940 $ — $ 18,940 $ — $ (2,486) $ 16,454 December 31, 2021: Derivatives $ 18,342 $ — $ 18,342 $ — $ (1,824) $ 16,518 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Valuation of our financial instruments by pricing observability levels as of March 31, 2022 and December 31, 2021 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2022: Money markets $ 122,582 $ — $ — $ — $ — $ 122,582 Securities segregated (U.S. Treasury Bills) — 1,692,536 — — — 1,692,536 Derivatives 1,564 20,518 — — — 22,082 Investments: Equity securities 125,428 28,052 119 144 — 153,743 Long exchange-traded options 445 — — — — 445 Limited partnership hedge funds (2) — — — — 54,725 54,725 Time deposits (3) — — — — 21,942 21,942 Other investments 7,861 — — — 4,767 12,628 Total investments 133,734 28,052 119 144 81,434 243,483 Total assets measured at fair value $ 257,880 $ 1,741,106 $ 119 $ 144 $ 81,434 $ 2,080,683 Securities sold not yet purchased: Short equities – corporate $ 3,427 $ — $ — $ — $ — $ 3,427 Short exchange-traded options 221 — — — — 221 Derivatives 1,895 14,252 — — — 16,147 Contingent payment arrangements — — 39,098 — — 39,098 Total liabilities measured at fair value $ 5,543 $ 14,252 $ 39,098 $ — $ — $ 58,893 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2021: Money markets $ 151,156 $ — $ — $ — $ — $ 151,156 Securities segregated (U.S. Treasury Bills) — 1,503,828 — — — 1,503,828 Derivatives 392 15,030 — — — 15,422 Investments: Equity securities 144,917 39,284 126 145 — 184,472 Long exchange-traded options 1,893 — — — — 1,893 Limited partnership hedge funds (2) — — — — 50,920 50,920 Time deposits (3) — — — — 21,024 21,024 Other investments 9,094 — — — 6,015 15,109 Total investments 155,904 39,284 126 145 77,959 273,418 Total assets measured at fair value $ 307,452 $ 1,558,142 $ 126 $ 145 $ 77,959 $ 1,943,824 Securities sold not yet purchased: Short equities – corporate $ 1,054 $ — $ — $ — $ — $ 1,054 Short exchange-traded options 2,774 — — — — 2,774 Derivatives 1,186 15,737 — — — 16,923 Contingent payment arrangements — — 38,260 — — 38,260 Total liabilities measured at fair value $ 5,014 $ 15,737 $ 38,260 $ — $ — $ 59,011 (1) Investments measured at fair value using NAV (or its equivalent) as a practical expedient. (2) Investments in equity method investees that are not measured at fair value in accordance with GAAP. (3) Investments carried at amortized cost that are not measured at fair value in accordance with GAAP. Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of March 31, 2022 and December 31, 2021 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2022: Investments $ 84,737 $ 401,941 $ 248 $ 486,926 Derivatives 1,782 2,620 — 4,402 Total assets measured at fair value $ 86,519 $ 404,561 $ 248 $ 491,328 Derivatives 16,013 2,927 — 18,940 Total liabilities measured at fair value $ 16,013 $ 2,927 $ — $ 18,940 December 31, 2021: Investments $ 165,415 $ 444,253 $ 3,357 $ 613,025 Derivatives 622 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 |
Schedule of Change in Carrying Value Level 3 Financial Instruments | The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as equity securities, is as follows: Three Months Ended March 31, 2022 2021 (in thousands) Balance as of beginning of period $ 126 $ 125 Purchases — — Sales — — Realized gains (losses), net — — Unrealized (losses), net (7) (1) Balance as of end of period $ 119 $ 124 The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company-sponsored investment funds was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Balance as of beginning of period $ 3,357 $ 619 Deconsolidated funds (3,351) — Transfers (out) (6) (10) Purchases 248 119 Sales — (3) Realized gains, net — 3 Unrealized (losses), net — (11) Balance as of end of period $ 248 $ 717 |
Schedule of Contingent Payment Arrangements Level 3 Financial Instruments | The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as contingent payment arrangements, is as follows: Three Months Ended March 31, 2022 2021 (in thousands) Balance as of beginning of period $ 38,260 $ 27,750 Addition — 7,526 Accretion 838 797 Payments — — Balance as of end of period $ 39,098 $ 36,073 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Leases | Leases included in the condensed consolidated statement of financial condition as of March 31, 2022 and December 31, 2021 were as follows: Classification March 31, 2022 December 31, 2021 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 398,804 $ 414,105 Operating lease liabilities Lease liabilities 466,439 482,781 Finance Leases Property and equipment, gross Right-of-use assets 13,284 10,947 Amortization of right-of-use assets Right-of-use assets (3,580) (3,072) Property and equipment, net 9,704 7,875 Finance lease liabilities Lease liabilities 9,351 7,954 |
Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense included in the condensed consolidated statement of income as of March 31, 2022 and March 31, 2021 were as follows: Three Months Ended March 31, Classification 2022 2021 (in thousands) Operating lease cost General and administrative $ 24,525 $ 24,418 Financing lease cost: Amortization of right-of-use assets General and administrative 740 501 Interest on lease liabilities Interest expense 37 22 Total finance lease cost 777 523 Variable lease cost (1) General and administrative 10,687 9,546 Sublease income General and administrative (8,561) (9,807) Net lease cost $ 27,428 $ 24,680 (1) Variable lease expense includes operating expenses, real estate taxes and employee parking. Lease term and discount rate: Weighted average remaining lease term (years): Operating leases 7.51 Finance leases 3.73 Weighted average discount rate: Operating leases 2.74 % Finance leases 1.62 % Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 7,719 12,161 Finance leases 2,569 3,283 (1) Represents non-cash activity and, accordingly, is not reflected in the consolidated statements of cash flows. |
Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2022 (excluding the three months ended March 31, 2022) $ 75,061 $ 1,940 $ 77,001 2023 97,522 2,887 100,409 2024 100,148 2,043 102,191 2025 34,308 1,747 36,055 2026 32,868 1,011 33,879 Thereafter 172,179 — 172,179 Total lease payments 512,086 9,628 521,714 Less interest (45,647) (277) Present value of lease liabilities $ 466,439 $ 9,351 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2022 (excluding the three months ended March 31, 2022) $ 75,061 $ 1,940 $ 77,001 2023 97,522 2,887 100,409 2024 100,148 2,043 102,191 2025 34,308 1,747 36,055 2026 32,868 1,011 33,879 Thereafter 172,179 — 172,179 Total lease payments 512,086 9,628 521,714 Less interest (45,647) (277) Present value of lease liabilities $ 466,439 $ 9,351 |
Consolidated Company-Sponsore_2
Consolidated Company-Sponsored Investment Funds (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Consolidated Company-Sponsored Investment Funds [Abstract] | |
Balances of Consolidated VIEs and VOEs included in Statement of Financial Condition | The balances of consolidated VIEs included in our condensed consolidated statements of financial condition were as follows: March 31, 2022 December 31, 2021 (in thousands) Cash and cash equivalents $ 24,145 $ 90,326 Investments 486,926 613,025 Other assets 30,594 30,461 Total assets $ 541,665 $ 733,812 Liabilities $ 36,774 $ 87,000 Redeemable non-controlling interest 338,021 421,169 Partners' capital attributable to AB Unitholders 166,870 225,643 Total liabilities, redeemable non-controlling interest and partners' capital $ 541,665 $ 733,812 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Valuation of our financial instruments by pricing observability levels as of March 31, 2022 and December 31, 2021 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2022: Money markets $ 122,582 $ — $ — $ — $ — $ 122,582 Securities segregated (U.S. Treasury Bills) — 1,692,536 — — — 1,692,536 Derivatives 1,564 20,518 — — — 22,082 Investments: Equity securities 125,428 28,052 119 144 — 153,743 Long exchange-traded options 445 — — — — 445 Limited partnership hedge funds (2) — — — — 54,725 54,725 Time deposits (3) — — — — 21,942 21,942 Other investments 7,861 — — — 4,767 12,628 Total investments 133,734 28,052 119 144 81,434 243,483 Total assets measured at fair value $ 257,880 $ 1,741,106 $ 119 $ 144 $ 81,434 $ 2,080,683 Securities sold not yet purchased: Short equities – corporate $ 3,427 $ — $ — $ — $ — $ 3,427 Short exchange-traded options 221 — — — — 221 Derivatives 1,895 14,252 — — — 16,147 Contingent payment arrangements — — 39,098 — — 39,098 Total liabilities measured at fair value $ 5,543 $ 14,252 $ 39,098 $ — $ — $ 58,893 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2021: Money markets $ 151,156 $ — $ — $ — $ — $ 151,156 Securities segregated (U.S. Treasury Bills) — 1,503,828 — — — 1,503,828 Derivatives 392 15,030 — — — 15,422 Investments: Equity securities 144,917 39,284 126 145 — 184,472 Long exchange-traded options 1,893 — — — — 1,893 Limited partnership hedge funds (2) — — — — 50,920 50,920 Time deposits (3) — — — — 21,024 21,024 Other investments 9,094 — — — 6,015 15,109 Total investments 155,904 39,284 126 145 77,959 273,418 Total assets measured at fair value $ 307,452 $ 1,558,142 $ 126 $ 145 $ 77,959 $ 1,943,824 Securities sold not yet purchased: Short equities – corporate $ 1,054 $ — $ — $ — $ — $ 1,054 Short exchange-traded options 2,774 — — — — 2,774 Derivatives 1,186 15,737 — — — 16,923 Contingent payment arrangements — — 38,260 — — 38,260 Total liabilities measured at fair value $ 5,014 $ 15,737 $ 38,260 $ — $ — $ 59,011 (1) Investments measured at fair value using NAV (or its equivalent) as a practical expedient. (2) Investments in equity method investees that are not measured at fair value in accordance with GAAP. (3) Investments carried at amortized cost that are not measured at fair value in accordance with GAAP. Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of March 31, 2022 and December 31, 2021 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2022: Investments $ 84,737 $ 401,941 $ 248 $ 486,926 Derivatives 1,782 2,620 — 4,402 Total assets measured at fair value $ 86,519 $ 404,561 $ 248 $ 491,328 Derivatives 16,013 2,927 — 18,940 Total liabilities measured at fair value $ 16,013 $ 2,927 $ — $ 18,940 December 31, 2021: Investments $ 165,415 $ 444,253 $ 3,357 $ 613,025 Derivatives 622 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 |
Schedule of Change in Carrying Value Level 3 Financial Instruments | The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as equity securities, is as follows: Three Months Ended March 31, 2022 2021 (in thousands) Balance as of beginning of period $ 126 $ 125 Purchases — — Sales — — Realized gains (losses), net — — Unrealized (losses), net (7) (1) Balance as of end of period $ 119 $ 124 The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company-sponsored investment funds was as follows: Three Months Ended March 31, 2022 2021 (in thousands) Balance as of beginning of period $ 3,357 $ 619 Deconsolidated funds (3,351) — Transfers (out) (6) (10) Purchases 248 119 Sales — (3) Realized gains, net — 3 Unrealized (losses), net — (11) Balance as of end of period $ 248 $ 717 |
Schedule of Offsetting of Derivative Assets | Offsetting of assets as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net (in thousands) March 31, 2022: Securities borrowed $ 97,865 $ — $ 97,865 $ (93,012) $ — $ 4,853 Derivatives $ 22,082 $ — $ 22,082 $ — $ (7,782) $ 14,300 Long exchange-traded options $ 445 $ — $ 445 $ — $ — $ 445 December 31, 2021: Securities borrowed $ 19,899 $ — $ 19,899 $ (18,327) $ — $ 1,572 Derivatives $ 15,422 $ — $ 15,422 $ — $ (2,872) $ 12,550 Long exchange-traded options $ 1,893 $ — $ 1,893 $ — $ — $ 1,893 Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net (in thousands) March 31, 2022: Derivatives $ 4,402 $ — $ 4,402 $ — $ (1,524) $ 2,878 December 31, 2021: Derivatives $ 5,887 $ — $ 5,887 $ — $ (904) $ 4,983 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of liabilities as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net Amount (in thousands) March 31, 2022: Securities loaned $ 81,049 $ — $ 81,049 $ (78,208) $ — $ 2,841 Derivatives $ 16,147 $ — $ 16,147 $ — $ (6,216) $ 9,931 Short exchange-traded options $ 221 $ — $ 221 $ — $ — $ 221 December 31, 2021: Securities loaned $ 23,911 $ — $ 23,911 $ (23,373) $ — $ 538 Derivatives $ 16,923 $ — $ 16,923 $ — $ (5,572) $ 11,351 Short exchange-traded options $ 2,774 $ — $ 2,774 $ — $ — $ 2,774 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2022 and December 31, 2021 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 Cash Collateral Net Amount (in thousands) March 31, 2022: Derivatives $ 18,940 $ — $ 18,940 $ — $ (2,486) $ 16,454 December 31, 2021: Derivatives $ 18,342 $ — $ 18,342 $ — $ (1,824) $ 16,518 |
Units Outstanding (Tables)
Units Outstanding (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Changes in AB Units Outstanding | Changes in AB Units outstanding during the three-month period ended March 31, 2022 were as follows: Outstanding as of December 31, 2021 271,453,043 Units issued 582,992 Units retired (260,245) Outstanding as of March 31, 2022 271,775,790 |
Business Description Organiza_4
Business Description Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
AB Holding | EQH | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 4.00% |
AB Holding | AB | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 1.00% |
General Partnership number of general partnership units owned in Holding Company (in shares) | 100,000 |
Limited partners or members ownership interest in company (percent) | 36.30% |
EQH and its subsidiaries | AB | |
General partnership information [Abstract] | |
Limited partners or members ownership interest in company (percent) | 63.00% |
Unaffiliated holders | AB | |
General partnership information [Abstract] | |
Limited partners or members ownership interest in company (percent) | 0.70% |
AB | AB | |
General partnership information [Abstract] | |
Limited partners or members ownership interest in company (percent) | 100.00% |
AB | EQH and its subsidiaries | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 64.50% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | $ 1,135,853 | $ 997,465 |
Not subject to contracts with customers: | ||
Dividend and interest income, net of interest expense | 8,626 | 7,540 |
Investment (losses) gains | (39,024) | 1,928 |
Other revenues | 232 | 333 |
Total revenue not from contract with customer | (30,166) | 9,801 |
Net revenues | 1,105,687 | 1,007,266 |
Base fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 747,813 | 687,691 |
Performance-based fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 75,969 | 15,775 |
Bernstein research services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 117,807 | 119,021 |
All-in-management fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 81,221 | 85,182 |
12b-1 fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 19,517 | 20,034 |
Other distribution fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 67,603 | 42,384 |
Shareholder servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 22,414 | 21,695 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | $ 3,509 | $ 5,683 |
Long-term Incentive Compensat_3
Long-term Incentive Compensation Plans - Unit Purchase Activity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Total amount of AB Holding Units Purchased (in shares) | 0.3 | 1 |
Total Cash Paid for AB Holding Units Purchased | $ 14 | $ 37.4 |
Open Market Purchases of AB Holding Units Purchased (in shares) | 0 | 0.6 |
Total Cash Paid for Open Market Purchases of AB Holding Units | $ 0 | $ 24.2 |
Long-term Incentive Compensat_4
Long-term Incentive Compensation Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Units granted to employees and eligible directors (in shares) | 700,000 | 3,400,000 |
Units issued upon exercise of options (in shares) | 0 | 100,000 |
Proceeds from stock options exercised | $ 0 | $ 1,914 |
Net Income per Unit (Details)
Net Income per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Limited Partners interest in Company (as a percent) | 99.00% | |
Net income per unit, basic and diluted [Abstract] | ||
Net income attributable to AB Unitholders | $ 260,727 | $ 244,131 |
Weighted average limited partnership units outstanding – basic (in shares) | 271,383,000 | 272,332,000 |
Dilutive effect of compensatory options to buy AB Holding Units (in shares) | 3,000 | 32,000 |
Weighted average limited partnership units outstanding – diluted (in shares) | 271,386,000 | 272,364,000 |
Basic net income per AB Unit (in dollars per share) | $ 0.95 | $ 0.89 |
Diluted net income per AB Unit (in dollars per share) | $ 0.95 | $ 0.89 |
Anti-dilutive options excluded from diluted net income (in shares) | 0 | 0 |
General Partner Interest | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
General partnership interest in Company (percent) | 1.00% |
Cash Distributions (Details)
Cash Distributions (Details) - $ / shares | Apr. 29, 2022 | Mar. 31, 2022 |
Subsequent Event | ||
Distribution Made to Limited Partner [Line Items] | ||
Distribution declared (in dollars per share) | $ 0.99 | |
General Partner Interest | ||
Distribution Made to Limited Partner [Line Items] | ||
General partnership interest in Company (percent) | 1.00% | |
General Partner Interest | Cash Distribution | ||
Distribution Made to Limited Partner [Line Items] | ||
General partnership interest in Company (percent) | 1.00% |
Cash and Securities Segregate_2
Cash and Securities Segregated Under Federal Regulations and Other Requirements (Details) - USD ($) $ in Billions | Mar. 31, 2022 | Dec. 31, 2021 |
Brokers and Dealers [Abstract] | ||
United States Treasury Bills in special reserve bank custody account for exclusive benefit of brokerage customers | $ 1.7 | $ 1.5 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 243,483 | $ 273,418 |
Long-term incentive compensation obligations | 52,500 | 63,800 |
Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 320,500 | 379,000 |
Equity securities | Long-term incentive compensation-related | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 24,128 | 32,237 |
Equity securities | Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 127,383 | 133,992 |
Equity securities | Other | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 2,232 | 18,243 |
Exchange-traded options | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 445 | 1,893 |
Investments in limited partnership hedge funds | Long-term incentive compensation-related | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 28,333 | 31,602 |
Investments in limited partnership hedge funds | Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 26,392 | 19,318 |
Time deposits | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 21,942 | 21,024 |
Other | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 12,628 | $ 15,109 |
Investments - Gains (Losses) Re
Investments - Gains (Losses) Related to Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net (losses) gains recognized during the period | $ (16,550) | $ 4,887 |
Less: net gains recognized during the period on equity securities sold during the period | 4,539 | 4,565 |
Unrealized (losses) gains recognized during the period on equity securities held | $ (21,089) | $ 322 |
Derivative Instruments - Notion
Derivative Instruments - Notional Value and Fair Value of Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional Value | $ 448,584 | $ 480,991 |
Derivative Assets | 22,082 | 15,422 |
Derivative Liabilities | 16,147 | 16,923 |
Exchange-traded futures | ||
Derivative [Line Items] | ||
Notional Value | 100,466 | 131,876 |
Derivative Assets | 1,564 | 392 |
Derivative Liabilities | 1,895 | 1,186 |
Currency forwards | ||
Derivative [Line Items] | ||
Notional Value | 66,216 | 66,058 |
Derivative Assets | 7,647 | 7,344 |
Derivative Liabilities | 7,133 | 6,980 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Value | 10,683 | 13,483 |
Derivative Assets | 545 | 497 |
Derivative Liabilities | 652 | 833 |
Credit default swaps | ||
Derivative [Line Items] | ||
Notional Value | 159,622 | 155,757 |
Derivative Assets | 9,572 | 6,594 |
Derivative Liabilities | 4,883 | 6,967 |
Total return swaps | ||
Derivative [Line Items] | ||
Notional Value | 61,597 | 63,817 |
Derivative Assets | 2,754 | 595 |
Derivative Liabilities | 1,060 | 527 |
Option swaps | ||
Derivative [Line Items] | ||
Notional Value | 50,000 | 50,000 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 524 | $ 430 |
Derivative Instruments - Gains
Derivative Instruments - Gains and Losses for Derivative Instruments Recognized in Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Net gains on derivative instruments | $ 19,732 | $ 2,336 |
Exchange-traded futures | ||
Derivative [Line Items] | ||
Net gains on derivative instruments | 7,513 | 1,135 |
Currency forwards | ||
Derivative [Line Items] | ||
Net gains on derivative instruments | 544 | 1,181 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Net gains on derivative instruments | (73) | 88 |
Credit default swaps | ||
Derivative [Line Items] | ||
Net gains on derivative instruments | 1,717 | (522) |
Total return swaps | ||
Derivative [Line Items] | ||
Net gains on derivative instruments | 7,406 | (907) |
Option swaps | ||
Derivative [Line Items] | ||
Net gains on derivative instruments | $ 2,625 | $ 1,361 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Cash collateral payable to trade counterparties | $ 7,800 | $ 2,900 | |
Cash collateral received | 6,500 | 5,600 | |
Gains (losses) on equity options activity | (2,000) | $ 4,800 | |
Exchange-traded options | Long | |||
Derivative [Line Items] | |||
Cash collateral payable to trade counterparties | 0 | 0 | |
Long exchange-traded equity options | 400 | 1,900 | |
Exchange-traded options | Short | |||
Derivative [Line Items] | |||
Cash collateral received | 0 | 0 | |
Short exchange-traded equity options, included in securities sold not yet purchased | $ 200 | $ 2,800 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Offsetting Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Securities Borrowed [Abstract] | ||
Gross Amounts of Recognized Assets | $ 97,865 | $ 19,899 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 97,865 | 19,899 |
Financial Instruments Collateral | (93,012) | (18,327) |
Cash Collateral Received | 0 | 0 |
Net Amount | 4,853 | 1,572 |
Derivative Asset [Abstract] | ||
Cash Collateral Received | (7,800) | (2,900) |
Derivatives | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 22,082 | 15,422 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 22,082 | 15,422 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | (7,782) | (2,872) |
Net Amount | 14,300 | 12,550 |
Exchange-traded options | Long | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 445 | 1,893 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 445 | 1,893 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 445 | $ 1,893 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 23,911 | |
Gross Amounts Offset in the Statement of Financial Condition | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 23,911 | |
Financial Instruments Collateral | (23,373) | |
Cash Collateral Pledged | 0 | |
Net Amount | 538 | |
Cash Collateral Pledged | $ (6,500) | (5,600) |
Securities loaned | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 81,049 | |
Gross Amounts Offset in the Statement of Financial Condition | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 81,049 | |
Financial Instruments Collateral | (78,208) | |
Cash Collateral Pledged | 0 | |
Net Amount | 2,841 | |
Derivatives | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 16,147 | 16,923 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 16,147 | 16,923 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | (6,216) | (5,572) |
Net Amount | 9,931 | 11,351 |
Exchange-traded options | Short | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 221 | 2,774 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 221 | 2,774 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 221 | $ 2,774 |
Fair Value - Valuation of Finan
Fair Value - Valuation of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | $ 81,434 | $ 77,959 | |
Securities sold not yet purchased: | |||
Contingent payment arrangements | 0 | $ 7,525 | |
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money markets | 122,582 | 151,156 | |
Securities segregated (U.S. Treasury Bills) | 1,692,536 | 1,503,828 | |
Derivatives | 22,082 | 15,422 | |
Total investments measured at fair value and other measurements | 243,483 | 273,418 | |
Total assets measured at fair value and other measurements | 2,080,683 | 1,943,824 | |
Securities sold not yet purchased: | |||
Short equities – corporate | 3,427 | 1,054 | |
Short exchange-traded options | 221 | 2,774 | |
Derivatives | 16,147 | 16,923 | |
Contingent payment arrangements | 39,098 | 38,260 | |
Total liabilities measured at fair value | 58,893 | 59,011 | |
Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money markets | 122,582 | 151,156 | |
Securities segregated (U.S. Treasury Bills) | 0 | 0 | |
Derivatives | 1,564 | 392 | |
Total investments | 133,734 | 155,904 | |
Total assets measured at fair value | 257,880 | 307,452 | |
Securities sold not yet purchased: | |||
Short equities – corporate | 3,427 | 1,054 | |
Short exchange-traded options | 221 | 2,774 | |
Derivatives | 1,895 | 1,186 | |
Contingent payment arrangements | 0 | 0 | |
Total liabilities measured at fair value | 5,543 | 5,014 | |
Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money markets | 0 | 0 | |
Securities segregated (U.S. Treasury Bills) | 1,692,536 | 1,503,828 | |
Derivatives | 20,518 | 15,030 | |
Total investments | 28,052 | 39,284 | |
Total assets measured at fair value | 1,741,106 | 1,558,142 | |
Securities sold not yet purchased: | |||
Short equities – corporate | 0 | 0 | |
Short exchange-traded options | 0 | 0 | |
Derivatives | 14,252 | 15,737 | |
Contingent payment arrangements | 0 | 0 | |
Total liabilities measured at fair value | 14,252 | 15,737 | |
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money markets | 0 | 0 | |
Securities segregated (U.S. Treasury Bills) | 0 | 0 | |
Derivatives | 0 | 0 | |
Total investments | 119 | 126 | |
Total assets measured at fair value | 119 | 126 | |
Securities sold not yet purchased: | |||
Short equities – corporate | 0 | 0 | |
Short exchange-traded options | 0 | 0 | |
Derivatives | 0 | 0 | |
Contingent payment arrangements | 39,098 | 38,260 | |
Total liabilities measured at fair value | 39,098 | 38,260 | |
Recurring | NAV Expedient | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments | 144 | 145 | |
Total assets measured at fair value | 144 | 145 | |
Equity securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 153,743 | 184,472 | |
Equity securities | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 125,428 | 144,917 | |
Equity securities | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 28,052 | 39,284 | |
Equity securities | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 119 | 126 | |
Equity securities | Recurring | NAV Expedient | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 144 | 145 | |
Other investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 4,767 | 6,015 | |
Other investments | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value and other measurements | 12,628 | 15,109 | |
Other investments | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments | 7,861 | 9,094 | |
Time deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 21,942 | 21,024 | |
Time deposits | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 21,942 | 21,024 | |
Long | Exchange-traded options | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 445 | 1,893 | |
Long | Exchange-traded options | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 445 | 1,893 | |
Long | Exchange-traded options | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Long | Exchange-traded options | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Limited partnership hedge funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 54,725 | 50,920 | |
Limited partnership hedge funds | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | $ 54,725 | $ 50,920 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 81,434,000 | $ 77,959,000 | |
Fair value assets level 2 to level 3 transfers amount | 0 | ||
Other | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 4,767,000 | 6,015,000 | |
Revenue growth rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability | 0.020 | 0.020 | |
Revenue growth rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability | 0.839 | 1.356 | |
Revenue growth rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability | 0.079 | 0.090 | |
Discount rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability | 0.019 | 0.019 | |
Discount rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability | 0.104 | 0.200 | |
Discount rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability | 0.070 | 0.108 | |
Start-up company | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | 300,000 | ||
Equity method investee | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 1,600,000 | 2,900,000 | |
Broker dealer exchange memberships | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | 2,800,000 | ||
Mutual Fund | Other | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Investments, fair value disclosure | $ 7,900,000 | $ 9,100,000 |
Fair Value - Change in Carrying
Fair Value - Change in Carrying Value of Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | $ 126 | $ 125 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Realized gains (losses), net | 0 | 0 |
Unrealized (losses), net | (7) | (1) |
Balance as of end of period | $ 119 | $ 124 |
Fair Value - Change in Carryi_2
Fair Value - Change in Carrying Value Associated with Contingent Payment Arrangements Level 3 Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Liabilities Measurement Level 3 reconciliation | ||
Balance as of beginning of period | $ 38,260 | $ 27,750 |
Addition | 0 | 7,526 |
Accretion | 838 | 797 |
Payments | 0 | 0 |
Balance as of end of period | $ 39,098 | $ 36,073 |
Leases - Additional Information
Leases - Additional Information (Details) ft² in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)ft² | |
Lessee, Lease, Description [Line Items] | |
Operating and finance lease, maximum term of extension option | 5 years |
Operating and finance lease, term of termination option | 1 year |
Area of space leased (in square feet) | 1,000 |
New York City | |
Lessee, Lease, Description [Line Items] | |
Area of space leased (in square feet) | 166 |
Operating lease, lease not yet commenced, term of contract | 20 years |
Total base rent obligation | $ | $ 393 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating and finance lease, remaining contract term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating and finance lease, remaining contract term | 15 years |
Leases - Leases included in the
Leases - Leases included in the Condensed Consolidated Statement of Financial Condition (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Right-of-use assets | Right-of-use assets |
Operating lease right-of-use assets | $ 398,804 | $ 414,105 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Lease liabilities | Lease liabilities |
Operating lease liabilities | $ 466,439 | $ 482,781 |
Finance Leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Right-of-use assets | Right-of-use assets |
Property and equipment, gross | $ 13,284 | $ 10,947 |
Amortization of right-of-use assets | (3,580) | (3,072) |
Property and equipment, net | $ 9,704 | $ 7,875 |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Lease liabilities | Lease liabilities |
Finance lease liabilities | $ 9,351 | $ 7,954 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 24,525 | $ 24,418 |
Financing lease cost: | ||
Amortization of right-of-use assets | 740 | 501 |
Interest on lease liabilities | 37 | 22 |
Total finance lease cost | 777 | 523 |
Variable lease cost | 10,687 | 9,546 |
Sublease income | (8,561) | (9,807) |
Net lease cost | $ 27,428 | $ 24,680 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 (excluding the three months ended March 31, 2022) | $ 75,061 | |
2023 | 97,522 | |
2024 | 100,148 | |
2025 | 34,308 | |
2026 | 32,868 | |
Thereafter | 172,179 | |
Total lease payments | 512,086 | |
Less interest | (45,647) | |
Present value of lease liabilities | 466,439 | $ 482,781 |
Financing Leases | ||
2022 (excluding the three months ended March 31, 2022) | 1,940 | |
2023 | 2,887 | |
2024 | 2,043 | |
2025 | 1,747 | |
2026 | 1,011 | |
Thereafter | 0 | |
Total lease payments | 9,628 | |
Less interest | (277) | |
Present value of lease liabilities | 9,351 | $ 7,954 |
Total | ||
2022 (excluding the three months ended March 31, 2022) | 77,001 | |
2023 | 100,409 | |
2024 | 102,191 | |
2025 | 36,055 | |
2026 | 33,879 | |
Thereafter | 172,179 | |
Total lease payments | $ 521,714 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Mar. 31, 2022 |
Weighted average remaining lease term (years): | |
Operating leases | 7 years 6 months 3 days |
Finance leases | 3 years 8 months 23 days |
Weighted average discount rate: | |
Operating leases | 2.74% |
Finance leases | 1.62% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 7,719 | $ 12,161 |
Finance leases | $ 2,569 | $ 3,283 |
Consolidated Company-Sponsore_3
Consolidated Company-Sponsored Investment Funds - Summary of Balance Sheet Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Other assets | $ 373,718 | $ 262,303 | |
Total assets | 10,535,406 | 10,510,088 | |
Liabilities | 6,160,686 | 5,927,996 | |
Redeemable non-controlling interest | 338,021 | 421,169 | |
Partners' capital attributable to AB Unitholders | 4,036,699 | 4,160,923 | $ 4,049,162 |
Total liabilities, redeemable non-controlling interest and capital | 10,535,406 | 10,510,088 | |
Company-sponsored investment funds | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 24,145 | 90,326 | |
Investments | 486,926 | 613,025 | |
Other assets | 30,594 | 30,461 | |
VIEs | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 24,145 | 90,326 | |
Investments | 486,926 | 613,025 | |
Other assets | 30,594 | 30,461 | |
Total assets | 541,665 | 733,812 | |
Liabilities | 36,774 | 87,000 | |
Redeemable non-controlling interest | 338,021 | 421,169 | |
Partners' capital attributable to AB Unitholders | 166,870 | 225,643 | |
Total liabilities, redeemable non-controlling interest and capital | $ 541,665 | $ 733,812 |
Consolidated Company-Sponsore_4
Consolidated Company-Sponsored Investment Funds - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)fund | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Derivative [Line Items] | |||
Gains (losses) on derivative instruments | $ 19,732 | $ 2,336 | |
Cash collateral payable to trade counterparties | 7,800 | $ 2,900 | |
Cash collateral received | 6,500 | 5,600 | |
Advisory fee receivables | 177,381 | 185,653 | |
VIEs | |||
Derivative [Line Items] | |||
Futures, forwards and swaps held | 14,500 | 12,500 | |
Gains (losses) on derivative instruments | 500 | $ (1,100) | |
Cash collateral payable to trade counterparties | 1,524 | 904 | |
Cash collateral received | 2,486 | 1,824 | |
Variable Interest Entity, Not Primary Beneficiary | |||
Derivative [Line Items] | |||
Net assets | 59,100,000 | 68,900,000 | |
Maximum risk of loss in investment in VIEs | 15,100 | 8,800 | |
Advisory fee receivables | $ 70,300 | $ 75,700 | |
Seed capital | |||
Derivative [Line Items] | |||
Number of deconsolidated funds | fund | 3 | ||
Seed investment, deconsolidated amount | $ 55,100 |
Consolidated Company-Sponsore_5
Consolidated Company-Sponsored Investment Funds - Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
VIEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | $ 4,402 | $ 5,887 |
Derivatives | 18,940 | 18,342 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 22,082 | 15,422 |
Derivatives | 16,147 | 16,923 |
Total liabilities measured at fair value | 58,893 | 59,011 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 133,734 | 155,904 |
Derivative Assets | 1,564 | 392 |
Total assets measured at fair value | 257,880 | 307,452 |
Derivatives | 1,895 | 1,186 |
Total liabilities measured at fair value | 5,543 | 5,014 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 28,052 | 39,284 |
Derivative Assets | 20,518 | 15,030 |
Total assets measured at fair value | 1,741,106 | 1,558,142 |
Derivatives | 14,252 | 15,737 |
Total liabilities measured at fair value | 14,252 | 15,737 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 119 | 126 |
Derivative Assets | 0 | 0 |
Total assets measured at fair value | 119 | 126 |
Derivatives | 0 | 0 |
Total liabilities measured at fair value | 39,098 | 38,260 |
Recurring | Company-sponsored investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 491,328 | 618,912 |
Total liabilities measured at fair value | 18,940 | 18,342 |
Recurring | Company-sponsored investment funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 86,519 | 166,037 |
Total liabilities measured at fair value | 16,013 | 16,291 |
Recurring | Company-sponsored investment funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 404,561 | 449,518 |
Total liabilities measured at fair value | 2,927 | 2,051 |
Recurring | Company-sponsored investment funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 248 | 3,357 |
Total liabilities measured at fair value | 0 | 0 |
Recurring | VIEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 486,926 | 613,025 |
Derivative Assets | 4,402 | 5,887 |
Derivatives | 18,940 | 18,342 |
Recurring | VIEs | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 84,737 | 165,415 |
Derivative Assets | 1,782 | 622 |
Derivatives | 16,013 | 16,291 |
Recurring | VIEs | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 401,941 | 444,253 |
Derivative Assets | 2,620 | 5,265 |
Derivatives | 2,927 | 2,051 |
Recurring | VIEs | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 248 | 3,357 |
Derivative Assets | 0 | 0 |
Derivatives | $ 0 | $ 0 |
Consolidated Company-Sponsore_6
Consolidated Company-Sponsored Investment Funds - Change in Carrying Value Associated with Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | $ 126 | $ 125 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Realized gains, net | 0 | 0 |
Unrealized (losses), net | (7) | (1) |
Balance as of end of period | 119 | 124 |
Company-sponsored investment funds | ||
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | 3,357 | 619 |
Deconsolidated funds | (3,351) | 0 |
Transfers (out) | (6) | (10) |
Purchases | 248 | 119 |
Sales | 0 | (3) |
Realized gains, net | 0 | 3 |
Unrealized (losses), net | 0 | (11) |
Balance as of end of period | $ 248 | $ 717 |
Consolidated Company-Sponsore_7
Consolidated Company-Sponsored Investment Funds - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Asset [Abstract] | ||
Cash Collateral Received | $ (7,800) | $ (2,900) |
Derivative Liability [Abstract] | ||
Cash Collateral Pledged | (6,500) | (5,600) |
VIEs | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 4,402 | 5,887 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 4,402 | 5,887 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | (1,524) | (904) |
Net Amount | 2,878 | 4,983 |
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 18,940 | 18,342 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 18,940 | 18,342 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | (2,486) | (1,824) |
Net Amount | $ 16,454 | $ 16,518 |
Units Outstanding (Details)
Units Outstanding (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
Units Outstanding | |
Beginning balance (in shares) | 271,453,043 |
Units issued (in shares) | 582,992 |
Units retired (in shares) | (260,245) |
Ending balance (in shares) | 271,775,790 |
Debt (Details)
Debt (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)financialInstitutionlineOfCredit | Dec. 31, 2021USD ($) | Sep. 01, 2020USD ($) | |
Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||
Line of Credit | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 800,000,000 | ||
Maximum incremental increase | 200,000,000 | ||
Amount outstanding | 0 | $ 0 | |
Line of Credit | Subsidiaries | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 315,000,000 | ||
Number of uncommitted lines of credit | lineOfCredit | 5 | ||
Number of financial institutions offering lines of credit | financialInstitution | 5 | ||
Number of financial institutions with stated limits | lineOfCredit | 4 | ||
Commercial Paper | |||
Short-term Debt [Line Items] | |||
Weighted average interest rates on average daily borrowings | 0.20% | 0.20% | |
Short-term debt | $ 0 | $ 0 | |
Short-term debt, average outstanding amount | $ 257,000,000 | $ 157,000,000 | |
Uncommited Lines of Credit | |||
Short-term Debt [Line Items] | |||
Weighted average interest rates | 0.80% | 0.90% | |
Short-term debt | $ 0 | $ 0 | |
Short-term debt, average outstanding amount | 2,900,000 | $ 47,000,000 | |
Line of Credit | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Weighted average interest rates | 1.10% | ||
Average daily borrowings | $ 13,300,000 | ||
EQH | |||
Short-term Debt [Line Items] | |||
Amount outstanding | $ 850,000,000 | $ 755,000,000 | |
Weighted average interest rates | 0.30% | 0.20% | |
Average daily borrowings | $ 645,400,000 | $ 404,600,000 | |
Weighted average interest rates on average daily borrowings | 0.20% | ||
EQH | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 900,000,000 | ||
EQH Uncommitted Facility | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | ||
Amount outstanding | $ 0 | $ 0 |
Acquisition (Details)
Acquisition (Details) - CarVal $ in Millions | Mar. 17, 2022USD ($) |
Business Acquisition [Line Items] | |
Percentage of interests acquired | 100.00% |
Upfront payment | $ 750 |