Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
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 | 285,654,435 |
Entity Central Index Key | 0001109448 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 886,145 | $ 1,130,143 |
Cash and securities segregated, at fair value (cost: $1,041,813 and $1,511,916) | 1,054,643 | 1,522,431 |
Receivables, net: | ||
Brokers and dealers | 92,337 | 112,226 |
Brokerage clients | 1,729,210 | 1,881,496 |
AB funds fees | 345,016 | 314,247 |
Other fees | 139,695 | 127,040 |
Investments: | ||
Long-term incentive compensation-related | 43,984 | 47,870 |
Other | 167,954 | 169,648 |
Assets of consolidated company-sponsored investment funds: | ||
Furniture, equipment and leasehold improvements, net | 189,670 | 189,258 |
Goodwill | 3,598,591 | 3,598,591 |
Intangible assets, net | 298,754 | 310,203 |
Deferred sales commissions, net | 58,216 | 52,250 |
Right-of-use assets | 355,608 | 371,898 |
Assets held for sale | 671,069 | 551,351 |
Other assets | 165,422 | 179,568 |
Total assets | 10,390,865 | 11,138,931 |
Payables: | ||
Brokers and dealers | 408,878 | 389,828 |
Brokerage clients | 2,594,685 | 3,322,903 |
AB mutual funds | 89,238 | 162,291 |
Contingent consideration liability | 248,185 | 247,309 |
Accounts payable and accrued expenses | 147,327 | 173,466 |
Lease liabilities | 409,749 | 427,479 |
Accrued compensation and benefits | 436,747 | 415,878 |
Debt | 1,035,000 | 990,000 |
Liabilities held for sale | 157,761 | 107,952 |
Liabilities | 5,571,217 | 6,292,635 |
Commitments and contingencies (See Note 12) | ||
Redeemable non-controlling interest of consolidated entities | 376,290 | 368,656 |
Capital: | ||
General Partner | 45,595 | 45,985 |
Limited partners: 285,654,435 and 285,979,913 units issued and outstanding | 4,609,592 | 4,648,113 |
Receivables from affiliates | (5,097) | (4,270) |
AB Holding Units held for long-term incentive compensation plans | (96,077) | (95,318) |
Accumulated other comprehensive (loss) | (122,998) | (129,477) |
Partners' capital attributable to AB Unitholders | 4,431,015 | 4,465,033 |
Non-redeemable non-controlling interests in consolidated entities | 12,343 | 12,607 |
Total capital | 4,443,358 | 4,477,640 |
Total liabilities, redeemable non-controlling interest and capital | 10,390,865 | 11,138,931 |
Company-sponsored investment funds | ||
Assets of consolidated company-sponsored investment funds: | ||
Cash and cash equivalents | 20,417 | 19,751 |
Investments | 543,339 | 516,536 |
Other assets | 30,795 | 44,424 |
Total assets | 594,551 | 580,711 |
Payables: | ||
Liabilities of consolidated company-sponsored investment funds | 43,647 | 55,529 |
Liabilities | 43,647 | 55,529 |
Redeemable non-controlling interest of consolidated entities | 376,290 | 368,656 |
Capital: | ||
Total capital | 174,614 | 156,526 |
Total liabilities, redeemable non-controlling interest and capital | $ 594,551 | $ 580,711 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Cash and securities segregated, at cost | $ 1,041,813 | $ 1,511,916 |
Limited partners, units issued (in units) | 285,654,435 | 285,979,913 |
Limited partners, units outstanding (in shares) | 285,654,435 | 285,979,913 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Dividend and interest income | $ 50,679 | $ 11,475 |
Investment gains (losses) | 5,264 | (39,024) |
Other revenues | 26,146 | 26,155 |
Total revenues | 1,052,112 | 1,108,536 |
Less: Interest expense | 28,021 | 2,849 |
Net revenues | 1,024,091 | 1,105,687 |
Expenses: | ||
Employee compensation and benefits | 434,163 | 439,420 |
Promotion and servicing: | ||
Amortization of deferred sales commissions | 8,154 | 9,383 |
Trade execution, marketing, T&E and other | 50,630 | 51,227 |
General and administrative | 139,653 | 177,625 |
Contingent payment arrangements | 2,444 | 838 |
Interest on borrowings | 13,713 | 1,411 |
Amortization of intangible assets | 11,693 | 1,136 |
Total expenses | 808,831 | 857,284 |
Operating income | 215,260 | 248,403 |
Income taxes | 11,342 | 12,721 |
Net income | 203,918 | 235,682 |
Net income (loss) of consolidated entities attributable to non-controlling interests | 9,767 | (25,045) |
Net income attributable to AB Unitholders | $ 194,151 | $ 260,727 |
Net income per AB Unit: | ||
Basic (in dollars per share) | $ 0.67 | $ 0.95 |
Diluted (in dollars per share) | $ 0.67 | $ 0.95 |
Investment advisory and services fees | ||
Revenues: | ||
Revenue subject to contracts with customers | $ 728,907 | $ 823,782 |
Bernstein research services | ||
Revenues: | ||
Revenue subject to contracts with customers | 100,038 | 117,807 |
Distribution revenues | ||
Revenues: | ||
Revenue subject to contracts with customers | 141,078 | 168,341 |
Promotion and servicing: | ||
Distribution-related payments | $ 148,381 | $ 176,244 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 203,918 | $ 235,682 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, before tax | 6,131 | (11,822) |
Income tax benefit | 47 | 101 |
Foreign currency translation adjustments, net of tax | 6,178 | (11,721) |
Changes in employee benefit related items: | ||
Amortization of prior service cost | 6 | 6 |
Recognized actuarial gain | 298 | 323 |
Changes in employee benefit related items | 304 | 329 |
Income tax (expense) | (3) | (9) |
Employee benefit related items, net of tax | 301 | 320 |
Other comprehensive income (loss) | 6,479 | (11,401) |
Less: Comprehensive income (loss) in consolidated entities attributable to non-controlling interests | 9,767 | (25,045) |
Comprehensive income attributable to AB Unitholders | $ 200,630 | $ 249,326 |
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) | Non-redeemable Non-controlling Interests in Consolidated Entities | Retained Earnings | General Partner’s Capital | Limited Partners' Capital |
Partners' capital, beginning balance at Dec. 31, 2021 | $ (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 | 174 | 18,442 | (1) | (157) | ||||
Issuance of AB Units, net | 157 | 15,498 | ||||||
Retirement of AB Units, net | (15,655) | |||||||
Capital contributions (to) 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 | ||||||
Adjustment | $ 0 | |||||||
Partners' capital, ending balance at Mar. 31, 2022 | 4,036,699 | (8,126) | (130,914) | (101,736) | 41,832 | 4,235,643 | ||
Balance, beginning of period at Dec. 31, 2021 | $ 0 | |||||||
Balance, end of period at Mar. 31, 2022 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total capital | 4,036,699 | |||||||
Total capital | 4,477,640 | |||||||
Partners' capital, beginning balance at Dec. 31, 2022 | 4,465,033 | (4,270) | (95,318) | (129,477) | 45,985 | 4,648,113 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 203,918 | 1,941 | 192,210 | |||||
Cash distributions | (2,221) | (219,698) | ||||||
Long-term incentive compensation | 191 | 6,585 | 15 | 1,438 | ||||
Issuance of AB Units, net | 12,510 | |||||||
Retirement of AB Units, net | (125) | (12,471) | ||||||
Capital contributions (to) from AB Holding | (1,018) | |||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (18,090) | |||||||
Re-valuation of AB Holding Units held in rabbi trust | (1,764) | |||||||
Foreign currency translation adjustment, net of tax | 6,178 | 6,178 | ||||||
Changes in employee benefit related items, net of tax | 301 | 301 | ||||||
Adjustment | $ (264) | |||||||
Partners' capital, ending balance at Mar. 31, 2023 | 4,431,015 | $ (5,097) | $ (96,077) | $ (122,998) | $ 45,595 | $ 4,609,592 | ||
Balance, beginning of period at Dec. 31, 2022 | 12,607 | |||||||
Balance, end of period at Mar. 31, 2023 | $ 12,343 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total capital | $ 4,443,358 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 203,918 | $ 235,682 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Amortization of deferred sales commissions | 8,154 | 9,383 |
Non-cash long-term incentive compensation expense | 6,776 | 18,616 |
Depreciation and other amortization | 22,849 | 11,124 |
Unrealized losses (gains) on investments | (4,662) | 21,024 |
Non-cash lease expense | 26,426 | 26,557 |
Loss on assets held for sale | 2,500 | 0 |
Other, net | (3,523) | 4,395 |
Changes in assets and liabilities: | ||
Decrease (increase) in securities, segregated | 467,788 | (188,669) |
Decrease (increase) in receivables | 126,176 | (193,178) |
Decrease (increase) in investments | 18,571 | 8,434 |
(Increase) in deferred sales commissions | (14,120) | (3,562) |
(Increase) in other assets | (102,965) | (111,939) |
(Decrease) increase in payables | (764,090) | 199,166 |
(Decrease) increase in accounts payable and accrued expenses | (12,365) | 20,473 |
Increase in accrued compensation and benefits | 23,277 | 43,766 |
Cash payments to relieve operating lease liabilities | (26,566) | (26,828) |
Net cash (used in) provided by operating activities | (46,912) | 150,183 |
Cash flows from investing activities: | ||
Purchases of furniture, equipment and leasehold improvements | (10,572) | (6,237) |
Net cash used in investing activities | (10,572) | (6,237) |
Cash flows from financing activities: | ||
Proceeds from debt, net | 45,000 | 95,000 |
Increase (decrease) in overdrafts payable | 86 | (14,736) |
Distributions to General Partner and Unitholders | (221,919) | (377,810) |
Capital contributions (to) affiliates | (1,324) | (529) |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net | (18,090) | (13,822) |
Other, net | (2,339) | (1,173) |
Net cash used in financing activities | (200,719) | (371,173) |
Effect of exchange rate changes on cash and cash equivalents | 10,232 | (11,431) |
Net (decrease) in cash and cash equivalents | (247,971) | (238,658) |
Cash and cash equivalents as of beginning of the period | 1,309,017 | 1,376,026 |
Cash and cash equivalents as of end of the period | 1,061,046 | 1,137,368 |
Company-sponsored investment funds | ||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Unrealized losses (gains) on investments | (16,162) | 40,898 |
Changes in assets and liabilities: | ||
Decrease (increase) in investments | (10,641) | 85,201 |
Increase (decrease) in other assets and liabilities of consolidated company-sponsored investment funds, net | 1,747 | (50,360) |
Cash flows from financing activities: | ||
(Redemptions) of non-controlling interest in consolidated company-sponsored investment funds, net | $ (2,133) | $ (58,103) |
Business Description Organizati
Business Description Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
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 asset management and private wealth management businesses. 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; • Actively-managed alternative investments, including hedge funds, fund of funds and direct assets (e.g., direct lending, real estate and private equity); • Portfolios with Purpose, including actively managed, impact-focused and Responsible+ (climate-conscious, ESG leaders, change catalysts) equity, fixed income and multi-asset strategies that address our clients evolving need to invest their capital with purpose while pursuing strong investment returns; • Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds; and • Some passive management, including index, ESG index and enhanced index strategies. Organization As of March 31, 2023, EQH owned approximately 3.5% of the issued and outstanding units representing assignments of beneficial ownership of limited partnership interests in AllianceBernstein Holding L.P. (“AB Holding Units”). AllianceBernstein Corporation (an indirect wholly-owned subsidiary of EQH, “General Partner”) is the general partner of both AllianceBernstein Holding L.P. (“AB Holding”) and AB. AllianceBernstein Corporation owns 100,000 general partnership units in AB Holding and a 1.0% general partnership interest in AB. As of March 31, 2023, 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 60.0 % AB Holding 39.3 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 61.4% economic interest in AB as of March 31, 2023. 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, 2022 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. 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, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Recently Adopted Accounting Pronouncements or Accounting Pronouncements Not Yet Adopted During the first quarter of 2023, there have been no recently adopted accounting pronouncements or pronouncements not yet adopted that have or are expected to have a material impact on our consolidated results of operations. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenues for the three months ended March 31, 2023 and 2022 consisted of the following: Three Months Ended March 31, 2023 2022 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 692,327 $ 747,813 Performance-based fees 36,580 75,969 Bernstein research services 100,038 117,807 Distribution revenues All-in-management fees 68,788 81,221 12b-1 fees 15,155 19,517 Other distribution fees 57,135 67,603 Other revenues Shareholder servicing fees 20,293 22,414 Other 5,691 3,509 996,007 1,135,853 Not subject to contracts with customers: Dividend and interest income, net of interest expense 22,658 8,626 Investment gains (losses) 5,264 (39,024) Other revenues 162 232 28,084 (30,166) Total net revenues $ 1,024,091 $ 1,105,687 |
Long-term Incentive Compensatio
Long-term Incentive Compensation Plans | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022 consisted of the following: Three Months Ended March 31, 2023 2022 (in millions) Total amount of AB Holding Units Purchased/Retained (1) 0.5 0.3 Total Cash Paid for AB Holding Units Purchased/Retained (1) $ 18.8 $ 14.0 Open Market Purchases of AB Holding Units Purchased (1) — — Total Cash Paid for Open Market Purchases of AB Holding Units (1) $ — $ — (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 2023.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. |
Net Income per Unit
Net Income per Unit | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 2022 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 194,151 $ 260,727 Weighted average limited partnership units outstanding – basic 285,726 271,383 Dilutive effect of compensatory options to buy AB Holding Units — 3 Weighted average limited partnership units outstanding – diluted 285,726 271,386 Basic net income per AB Unit $ 0.67 $ 0.95 Diluted net income per AB Unit $ 0.67 $ 0.95 |
Cash Distributions
Cash Distributions | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 | |
Broker-Dealer [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, 2023 and December 31, 2022, $1.1 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, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of: March 31, December 31, (in thousands) Equity securities: Long-term incentive compensation-related $ 17,145 $ 21,055 Seed capital 134,775 138,012 Investments in limited partnership hedge funds: Long-term incentive compensation-related 26,839 26,815 Seed capital 15,731 15,711 Time deposits 7,528 7,750 Other 9,920 8,175 Total investments $ 211,938 $ 217,518 Total investments related to long-term incentive compensation obligations of $44.0 million and $47.9 million as of March 31, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, our total seed capital investments were $324.6 million and $309.6 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 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, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 (in thousands) Net gains (losses) recognized during the period $ 5,464 $ (16,550) Less: net gains recognized during the period on equity securities sold during the period 590 4,539 Unrealized gains (losses) recognized during the period on equity securities held $ 4,874 $ (21,089) |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and December 31, 2022 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, 2023: Exchange-traded futures $ 164,368 $ 4 $ 4,878 Currency forwards 35,796 4,456 5,019 Interest rate swaps 14,890 204 162 Credit default swaps 218,604 11,796 4,882 Total return swaps 52,247 227 1,178 Option swaps 50,000 — 292 Total derivatives $ 535,905 $ 16,687 $ 16,411 December 31, 2022: Exchange-traded futures $ 154,687 $ 1,768 $ 162 Currency forwards 34,597 4,446 5,047 Interest rate swaps 16,847 386 262 Credit default swaps 225,671 17,507 7,302 Total return swaps 28,742 605 933 Option swaps 50,000 — 6 Total derivatives $ 510,544 $ 24,712 $ 13,712 As of March 31, 2023 and December 31, 2022, 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, 2023 and 2022 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows: Three Months Ended March 31, 2023 2022 (in thousands) Exchange-traded futures $ (4,632) $ 7,513 Currency forwards (105) 544 Interest rate swaps (63) (73) Credit default swaps (2,228) 1,717 Total return swaps (2,056) 7,406 Option swaps (1,410) 2,625 Net (losses) gains on derivative instruments $ (10,494) $ 19,732 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, 2023 and December 31, 2022, we held $7.9 million and $8.4 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, 2023 and December 31, 2022, we delivered $10.0 million and $4.2 million, respectively, of cash collateral into brokerage accounts. We report this cash collateral in cash and cash equivalents in our condensed consolidated statement of financial condition. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and December 31, 2022 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, 2023: Securities borrowed $ 45,772 $ — $ 45,772 $ (45,772) $ — $ — Derivatives $ 16,687 $ — $ 16,687 $ — $ (7,871) $ 8,816 December 31, 2022: Securities borrowed $ 62,063 $ — $ 62,063 $ (62,058) $ — $ 5 Derivatives $ 24,712 $ — $ 24,712 $ — $ (8,361) $ 16,351 Offsetting of liabilities as of March 31, 2023 and December 31, 2022 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, 2023: Securities loaned $ 274,650 $ — $ 274,650 $ (271,957) $ — $ 2,693 Derivatives $ 16,411 $ — $ 16,411 $ — $ (9,987) $ 6,424 December 31, 2022: Securities loaned $ 272,580 $ — $ 272,580 $ (267,053) $ — $ 5,527 Derivatives $ 13,712 $ — $ 13,712 $ — $ (4,158) $ 9,554 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, 2023 | |
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, 2023 and December 31, 2022 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2023: Money markets $ 95,690 $ — $ — $ — $ — $ 95,690 Securities segregated (U.S. Treasury Bills) — 1,054,638 — — — 1,054,638 Derivatives 4 16,683 — — — 16,687 Investments: Equity securities 121,971 28,255 170 1,524 — 151,920 Limited partnership hedge funds (2) — — — — 42,570 42,570 Time deposits (3) — — — — 7,528 7,528 Other investments 6,894 — — — 3,026 9,920 Total investments 128,865 28,255 170 1,524 53,124 211,938 Total assets measured at fair value $ 224,559 $ 1,099,576 $ 170 $ 1,524 $ 53,124 $ 1,378,953 Derivatives 4,878 11,533 — — — 16,411 Contingent payment arrangements — — 248,185 — — 248,185 Total liabilities measured at fair value $ 4,878 $ 11,533 $ 248,185 $ — $ — $ 264,596 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2022: Money markets $ 95,521 $ — $ — $ — $ — $ 95,521 Securities segregated (U.S. Treasury Bills) — 1,521,705 — — — 1,521,705 Derivatives 1,768 22,944 — — — 24,712 Investments: Equity securities 129,655 27,799 129 1,484 — 159,067 Limited partnership hedge funds (2) — — — — 42,526 42,526 Time deposits (3) — — — — 7,750 7,750 Other investments 6,689 — — — 1,486 8,175 Total investments 136,344 27,799 129 1,484 51,762 217,518 Total assets measured at fair value $ 233,633 $ 1,572,448 $ 129 $ 1,484 $ 51,762 $ 1,859,456 Derivatives 162 13,550 — — — 13,712 Contingent payment arrangements — — 247,309 — — 247,309 Total liabilities measured at fair value $ 162 $ 13,550 $ 247,309 $ — $ — $ 261,021 (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 ($6.9 million and $6.7 million as of March 31, 2023 and December 31, 2022, respectively). Other investments not measured at fair value include (i) investment in a start-up company that does not have a readily available fair value (this investment was $0.3 million as of both March 31, 2023 and December 31, 2022) and (ii) broker dealer exchange memberships that are not measured at fair value in accordance with GAAP ($2.7 million and $1.2 million as of March 31, 2023 and December 31, 2022, respectively). We provide below a description of the fair value methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: • Money markets : We invest excess cash in various money market funds that are valued based on quoted prices in active markets; these are included in Level 1 of the valuation hierarchy. • Treasury Bills : We hold U.S. Treasury Bills, which are primarily segregated in a special reserve bank custody account as required by Rule 15c3-3 of the Exchange Act. These securities are valued based on quoted yields in secondary markets and are included in Level 2 of the valuation hierarchy. • Equity securities : Our equity securities consist principally of company-sponsored mutual funds with NAVs and various separately-managed portfolios consisting primarily of equity and fixed income mutual funds with quoted prices in active markets, which are included in Level 1 of the valuation hierarchy. In addition, some securities are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy. • Derivatives : We hold exchange-traded futures with counterparties that are included in Level 1 of the valuation hierarchy. In addition, we also hold currency forward contracts, interest rate swaps, credit default swaps, option swaps and total return swaps with counterparties that are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy. • 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, 2023 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, 2023 2022 (in thousands) Balance as of beginning of period $ 129 $ 126 Purchases — — Sales — — Realized gains (losses), net — — Unrealized gains (losses), net 41 (7) Balance as of end of period $ 170 $ 119 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. Our acquisitions may include contingent consideration arrangements as part of the purchase price. The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as contingent payment arrangements, is as follows: Three Months Ended March 31, 2023 2022 (in thousands) Balance as of beginning of period $ 247,309 $ 38,260 Accretion 2,443 838 Payments (792) — Held for sale reclassification (775) — Balance as of end of period $ 248,185 $ 39,098 As of March 31, 2023, the expected revenue growth rates ranged from 2.0% to 83.9%, with a weighted average of 10.3%, calculated using cumulative revenues and range of revenue growth rates. The discount rates range from 1.9% to 10.4%, with a weighted average of 4.6%, calculated using total contingent liabilities and range of discount rates. As of March 31, 2022, the expected revenue growth rates ranged from 2.0% to 83.9%, with a weighted average of 7.9%, 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 10.4%, with a weighted average of 7.0%, calculated using total contingent liabilities and range of discount rates. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 are able to determine an estimate of the possible loss or range of loss in excess of amounts already accrued, if any, we disclose that fact together with the estimate of the possible loss or range of loss. However, it is often difficult to predict the outcome or estimate a possible loss or range of loss because litigation is subject to inherent uncertainties, particularly when plaintiffs allege substantial or indeterminate damages. Such is also the case when the litigation is in its early stages or when the litigation is highly complex or broad in scope. In these cases, we disclose that we are unable to predict the outcome or estimate a possible loss or range of loss. On December 14, 2022, four individual participants in the Profit Sharing Plan for Employees of AllianceBernstein L.P., (the "Plan") filed a class action complaint (the “Complaint”) in the U.S. District Court for the Southern District of New York against AB, current and former members of the Compensation Committee, and the Investment and Administrative Committees under the Plan. Plaintiffs, who seek to represent a class of all participants in the Plan from December 14, 2016 to the present, allege that defendants violated their fiduciary duties and engaged in prohibited transactions under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), by including proprietary collective investment trusts as investment options offered under the Plan. The Complaint seeks unspecified damages, disgorgement and other equitable relief. AB is prepared to defend itself vigorously against these claims. While the ultimate outcome of this matter is currently not determinable given the matter remains in its early stages, we do not believe this litigation will have a material adverse effect on our results of operations, financial condition or liquidity. AB may be involved in various other matters, including regulatory inquiries, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that we could incur losses pertaining to these other matters, but we cannot currently estimate any such losses. Management, after consultation with legal counsel, currently believes that the outcome of any other individual matter that is pending or threatened, or all of them combined, will not have a material adverse effect on our results of operations, financial condition or liquidity. However, any inquiry, proceeding or litigation has an element of uncertainty; management cannot determine whether further developments relating to any other individual matter that is pending or threatened, or all of them combined, will have a material adverse effect on our results of operation, financial condition or liquidity in any future reporting period. Other AllianceBernstein L.P., in its capacity as a general partner, committed to funding $52.3 million in two Real Estate Funds. As of March 31, 2023, we had funded $44.1 million of these commitments. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and December 31, 2022 were as follows: Classification March 31, 2023 December 31, 2022 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 344,293 $ 360,092 Operating lease liabilities Lease liabilities 398,686 415,539 Finance Leases Property and equipment, gross Right-of-use assets 18,701 18,116 Amortization of right-of-use assets Right-of-use assets (7,386) (6,310) Property and equipment, net 11,315 11,806 Finance lease liabilities Lease liabilities 11,063 11,940 The components of lease expense included in the condensed consolidated statement of income as of March 31, 2023 and March 31, 2022 were as follows: Three Months Ended March 31, Classification 2023 2022 (in thousands) Operating lease cost General and administrative $ 23,164 $ 24,525 Financing lease cost: Amortization of right-of-use assets General and administrative 1,076 740 Interest on lease liabilities Interest expense 65 37 Total finance lease cost 1,141 777 Variable lease cost (1) General and administrative 8,867 10,687 Sublease income General and administrative (8,260) (8,561) Net lease cost $ 24,912 $ 27,428 (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. The vast majority of sub-tenant income is derived from our New York metro sub-tenant agreements. Sub-tenant income related to base rent is recorded on a straight-line basis. Maturities of lease liabilities were as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2023 (excluding the three months ended March 31, 2023) $ 74,188 $ 2,853 $ 77,041 2024 105,833 3,468 109,301 2025 38,128 3,039 41,167 2026 36,546 1,810 38,356 2027 33,578 324 33,902 Thereafter 147,132 — 147,132 Total lease payments 435,405 11,494 446,899 Less interest (36,719) (431) Present value of lease liabilities $ 398,686 $ 11,063 We have signed a lease that 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 7.28 Finance leases 3.23 Weighted average discount rate: Operating leases 2.70 % Finance leases 2.29 % Supplemental non-cash activity related to leases was as follows: Three Months Ended March 31, 2023 2022 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 3,390 7,719 Finance leases 585 2,569 (1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statement 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, 2023 and December 31, 2022 were as follows: Classification March 31, 2023 December 31, 2022 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 344,293 $ 360,092 Operating lease liabilities Lease liabilities 398,686 415,539 Finance Leases Property and equipment, gross Right-of-use assets 18,701 18,116 Amortization of right-of-use assets Right-of-use assets (7,386) (6,310) Property and equipment, net 11,315 11,806 Finance lease liabilities Lease liabilities 11,063 11,940 The components of lease expense included in the condensed consolidated statement of income as of March 31, 2023 and March 31, 2022 were as follows: Three Months Ended March 31, Classification 2023 2022 (in thousands) Operating lease cost General and administrative $ 23,164 $ 24,525 Financing lease cost: Amortization of right-of-use assets General and administrative 1,076 740 Interest on lease liabilities Interest expense 65 37 Total finance lease cost 1,141 777 Variable lease cost (1) General and administrative 8,867 10,687 Sublease income General and administrative (8,260) (8,561) Net lease cost $ 24,912 $ 27,428 (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. The vast majority of sub-tenant income is derived from our New York metro sub-tenant agreements. Sub-tenant income related to base rent is recorded on a straight-line basis. Maturities of lease liabilities were as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2023 (excluding the three months ended March 31, 2023) $ 74,188 $ 2,853 $ 77,041 2024 105,833 3,468 109,301 2025 38,128 3,039 41,167 2026 36,546 1,810 38,356 2027 33,578 324 33,902 Thereafter 147,132 — 147,132 Total lease payments 435,405 11,494 446,899 Less interest (36,719) (431) Present value of lease liabilities $ 398,686 $ 11,063 We have signed a lease that 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 7.28 Finance leases 3.23 Weighted average discount rate: Operating leases 2.70 % Finance leases 2.29 % Supplemental non-cash activity related to leases was as follows: Three Months Ended March 31, 2023 2022 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 3,390 7,719 Finance leases 585 2,569 (1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statement of cash flows. |
Consolidated Company-Sponsored
Consolidated Company-Sponsored Investment Funds | 3 Months Ended |
Mar. 31, 2023 | |
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 and VOEs included in our condensed consolidated statements of financial condition were as follows: March 31, 2023 December 31, 2022 (in thousands) VIEs VOEs Total VIEs VOEs Total Cash and cash equivalents $ 20,417 $ — $ 20,417 $ 19,751 $ — $ 19,751 Investments 526,530 16,809 543,339 516,536 — 516,536 Other assets 30,556 239 30,795 44,424 — 44,424 Total assets $ 577,503 $ 17,048 $ 594,551 $ 580,711 $ — $ 580,711 Liabilities $ 43,586 $ 61 $ 43,647 $ 55,529 $ — $ 55,529 Redeemable non-controlling interest 374,736 1,554 376,290 368,656 — 368,656 Partners' capital attributable to AB Unitholders 159,181 15,433 174,614 156,526 — 156,526 Total liabilities, redeemable non-controlling interest and partners' capital $ 577,503 $ 17,048 $ 594,551 $ 580,711 $ — $ 580,711 During three-month period ended March 31, 2023, we deconsolidated one fund in which we had a seed investment of approximately $1.7 million as of December 31, 2022, 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, 2023 and December 31, 2022 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2023: Investments - VIEs $ 125,788 $ 400,742 $ — $ 526,530 Investments - VOEs 16,809 — — 16,809 Derivatives - VIEs 1,211 2,459 — 3,670 Total assets measured at fair value $ 143,808 $ 403,201 $ — $ 547,009 Derivatives - VIEs 14,830 1,481 — 16,311 Total liabilities measured at fair value $ 14,830 $ 1,481 $ — $ 16,311 December 31, 2022: Investments - VIEs $ 129,706 $ 386,830 $ — $ 516,536 Derivatives - VIEs 1,529 6,023 — 7,552 Total assets measured at fair value $ 131,235 $ 392,853 $ — $ 524,088 Derivatives - VIEs $ 14,932 $ 6,608 $ — $ 21,540 Total liabilities measured at fair value $ 14,932 $ 6,608 $ — $ 21,540 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, 2023 2022 (in thousands) Balance as of beginning of period $ — $ 3,357 Deconsolidated funds — (3,351) Transfers (out) — (6) Purchases — 248 Balance as of end of period $ — $ 248 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, 2023 and December 31, 2022, the VIEs held $12.6 million and $14.0 million (net), respectively, of futures, forwards and swaps within their portfolios. For the three months ended March 31, 2023 and March 31, 2022, we recognized $1.7 million and $0.5 million of gains, 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, 2023 and December 31, 2022, the VIEs held $1.7 million and $2.7 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, 2023 and December 31, 2022, the VIEs delivered $4.6 million and $5.4 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. As of March 31, 2023, the VOEs held no futures, forwards, options or swaps within their portfolios. As of March 31, 2023, the VOEs held no cash collateral payable to trade counterparties. As of March 31, 2023, the VOEs delivered no cash collateral in brokerage accounts. Offsetting Assets and Liabilities Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2023 and December 31, 2022 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, 2023: Derivatives - VIEs $ 3,670 $ — $ 3,670 $ — $ (1,689) $ 1,981 December 31, 2022: Derivatives - VIEs $ 7,552 $ — $ 7,552 $ — $ (2,731) $ 4,821 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2023 and December 31, 2022 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, 2023: Derivatives - VIEs $ 16,311 $ — $ 16,311 $ — $ (4,634) $ 11,677 December 31, 2022: Derivatives - VIEs $ 21,540 $ — $ 21,540 $ — $ (5,444) $ 16,096 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, 2023, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $49.0 billion, and our maximum risk of loss is our investment of $8.8 million in these VIEs and our advisory fee receivables from these VIEs is $57.5 million. As of December 31, 2022, the net assets of company-sponsored investment products that were non-consolidated VIEs was approximately $46.4 billion; our maximum risk of loss was our investment of $5.7 million in these VIEs and our advisory fees receivable from these VIEs was $54.2 million. |
Units Outstanding
Units Outstanding | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Units Outstanding | Units Outstanding Changes in AB Units outstanding during the three-month period ended March 31, 2023 were as follows: Outstanding as of December 31, 2022 285,979,913 Units issued 94,258 Units retired (1) (419,736) Outstanding as of March 31, 2023 285,654,435 (1) During the three-months ended March 31, 2023, we purchased 600 AB Units in private transactions and retired them. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility AB has an $800.0 million committed, unsecured senior revolving credit facility (the “Credit Facility”) with a group of commercial banks and other lenders, which matures on October 13, 2026. The Credit Facility was amended and restated on February 9, 2023, to reflect the transition from US LIBOR, which will be retired as of June 30, 2023, to the term Secured Overnight Financial Rate or "SOFR". Other than this immaterial change, there were no other significant changes included in the amendment. 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, 2023, 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: SOFR; a Prime rate; or the Federal Funds rate. As of March 31, 2023 and December 31, 2022, we had no amounts outstanding under the Credit Facility. Furthermore, during the first three months of 2023 and the full year 2022, we did not draw upon the Credit Facility. EQH 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. As of March 31, 2023, we were in compliance with these covenants. 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 both March 31, 2023 and December 31, 2022, AB had $900.0 million outstanding under the EQH Facility, with interest rates of approximately 4.7% and 4.3%, respectively. Average daily borrowings on the EQH Facility for the first three months of 2023 and the full year 2022 were $804.1 million and $655.2 million, respectively, with weighted average interest rates of approximately 4.4% and 1.7%, respectively. EQH Uncommitted Facility In addition to the EQH Facility, AB has a $300.0 million uncommitted, unsecured senior credit facility (“EQH Uncommitted Facility”) with EQH. The EQH Uncommitted Facility matures on September 1, 2024 and is available for AB's general business purposes. Borrowings under the EQH Uncommitted 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, 2023 and December 31, 2022, we had $135.0 million and $90.0 million outstanding under the EQH Uncommitted Facility, with interest rates of approximately 4.7% and 4.3%, respectively. Average daily borrowing on the EQH Uncommitted Facility for the first three months of 2023 and the full year 2022 were $7.0 million and $0.7 million, respectively, with weighted average interest rates of approximately 4.5% and 4.3%, respectively. Commercial Paper As of March 31, 2023 and December 31, 2022, 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 2023 and full year 2022 were $339.5 million and $189.9 million, respectively, with weighted average interest rates of approximately 4.7% and 1.5%, respectively. SCB Lines of Credit SCB LLC currently has five uncommitted lines of credit with five financial institutions. Four of these lines of credit permit us to borrow up to an aggregate of approximately $315.0 million, with AB named as an additional borrower, while the other line has no stated limit. AB has agreed to guarantee the obligations on SCB LLC under these lines of credit. As of March 31, 2023 and December 31, 2022, SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings during the first three months of 2023 and full year 2022 were $3.7 million and $1.4 million, respectively, with weighted average interest rates of approximately 7.7% and 3.7%, respectively. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On November 22, 2022, AB and SocGen, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. The consummation of the joint venture is subject to customary closing conditions, including regulatory clearances. The closing is expected to occur before the end of 2023. Upon closing, AB will own a 49% interest in the joint venture and SocGen will own a 51% interest, with an option to reach 100% ownership after five years. The assets and liabilities of AB's research services business (“the disposal group”) have been classified as held for sale on the condensed consolidated statement of financial condition and recorded at fair value, less cost to sell. As a result of classifying these assets as held for sale, we recognized a non-cash valuation adjustment of $2.5 million and $7.4 million on the condensed consolidated statement of income for the three months ended March 31, 2023 and December 31, 2022 , respectively , to recognize the net carrying value at lower of cost or fair value, less estimated costs to sell. The following table summarizes the assets and liabilities of the disposal group classified as held for sale on the condensed consolidated statement of financial condition as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Cash and cash equivalents $ 154,484 $ 159,123 Receivables, net: Brokers and dealers 64,547 44,717 Brokerage clients 29,709 29,243 Other fees 22,245 22,988 Investments 15,988 24,507 Furniture and equipment, net 4,008 4,128 Other assets 223,933 107,764 Right-of-use assets 1,537 1,552 Intangible assets 4,692 4,903 Goodwill 159,826 159,826 Valuation adjustment (allowance) on disposal group (9,900) (7,400) Total assets held for sale $ 671,069 $ 551,351 Payables: Brokers and dealers $ 43,001 $ 32,983 Brokerage clients 31,529 10,232 Other liabilities 66,407 50,884 Accrued compensation and benefits 16,824 13,853 Total liabilities held for sale $ 157,761 $ 107,952 As of March 31, 2023 and December 31, 2022, cash and cash equivalents classified as held for sale included in the condensed consolidated statement of cash flows was $154.5 million and $159.1 million, respectively. We have determined that the exit from the sell-side research business does not represent a strategic shift that has had, or is likely to have a major effect on our consolidated results of operations. Accordingly, we have not classified the disposal group as discontinued operations. The results of operations of the disposal group up to the respective dates of sale will be included in our consolidated results of operations for all periods presented. The lower of amortized cost or fair value adjustment upon transferring these assets to held for sale was not material. |
Business Description Organiza_2
Business Description Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 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. |
Subsequent Events | 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. |
Recently Adopted Accounting Pronouncements or Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements or Accounting Pronouncements Not Yet Adopted During the first quarter of 2023, there have been no recently adopted accounting pronouncements or pronouncements not yet adopted that have or are expected to have a material impact on our consolidated results of operations. |
Business Description Organiza_3
Business Description Organization and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023, 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 60.0 % AB Holding 39.3 Unaffiliated holders 0.7 100.0 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues | Revenues for the three months ended March 31, 2023 and 2022 consisted of the following: Three Months Ended March 31, 2023 2022 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 692,327 $ 747,813 Performance-based fees 36,580 75,969 Bernstein research services 100,038 117,807 Distribution revenues All-in-management fees 68,788 81,221 12b-1 fees 15,155 19,517 Other distribution fees 57,135 67,603 Other revenues Shareholder servicing fees 20,293 22,414 Other 5,691 3,509 996,007 1,135,853 Not subject to contracts with customers: Dividend and interest income, net of interest expense 22,658 8,626 Investment gains (losses) 5,264 (39,024) Other revenues 162 232 28,084 (30,166) Total net revenues $ 1,024,091 $ 1,105,687 |
Long-term Incentive Compensat_2
Long-term Incentive Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022 consisted of the following: Three Months Ended March 31, 2023 2022 (in millions) Total amount of AB Holding Units Purchased/Retained (1) 0.5 0.3 Total Cash Paid for AB Holding Units Purchased/Retained (1) $ 18.8 $ 14.0 Open Market Purchases of AB Holding Units Purchased (1) — — Total Cash Paid for Open Market Purchases of AB Holding Units (1) $ — $ — (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, 2023 | |
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, 2023 2022 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 194,151 $ 260,727 Weighted average limited partnership units outstanding – basic 285,726 271,383 Dilutive effect of compensatory options to buy AB Holding Units — 3 Weighted average limited partnership units outstanding – diluted 285,726 271,386 Basic net income per AB Unit $ 0.67 $ 0.95 Diluted net income per AB Unit $ 0.67 $ 0.95 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 $ 17,145 $ 21,055 Seed capital 134,775 138,012 Investments in limited partnership hedge funds: Long-term incentive compensation-related 26,839 26,815 Seed capital 15,731 15,711 Time deposits 7,528 7,750 Other 9,920 8,175 Total investments $ 211,938 $ 217,518 |
Portion of Unrealized (Losses) Gains 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, 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 (in thousands) Net gains (losses) recognized during the period $ 5,464 $ (16,550) Less: net gains recognized during the period on equity securities sold during the period 590 4,539 Unrealized gains (losses) recognized during the period on equity securities held $ 4,874 $ (21,089) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and December 31, 2022 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, 2023: Exchange-traded futures $ 164,368 $ 4 $ 4,878 Currency forwards 35,796 4,456 5,019 Interest rate swaps 14,890 204 162 Credit default swaps 218,604 11,796 4,882 Total return swaps 52,247 227 1,178 Option swaps 50,000 — 292 Total derivatives $ 535,905 $ 16,687 $ 16,411 December 31, 2022: Exchange-traded futures $ 154,687 $ 1,768 $ 162 Currency forwards 34,597 4,446 5,047 Interest rate swaps 16,847 386 262 Credit default swaps 225,671 17,507 7,302 Total return swaps 28,742 605 933 Option swaps 50,000 — 6 Total derivatives $ 510,544 $ 24,712 $ 13,712 |
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, 2023 and 2022 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows: Three Months Ended March 31, 2023 2022 (in thousands) Exchange-traded futures $ (4,632) $ 7,513 Currency forwards (105) 544 Interest rate swaps (63) (73) Credit default swaps (2,228) 1,717 Total return swaps (2,056) 7,406 Option swaps (1,410) 2,625 Net (losses) gains on derivative instruments $ (10,494) $ 19,732 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Offsetting [Abstract] | |
Schedule of Offsetting of Financial Assets | Offsetting of assets as of March 31, 2023 and December 31, 2022 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, 2023: Securities borrowed $ 45,772 $ — $ 45,772 $ (45,772) $ — $ — Derivatives $ 16,687 $ — $ 16,687 $ — $ (7,871) $ 8,816 December 31, 2022: Securities borrowed $ 62,063 $ — $ 62,063 $ (62,058) $ — $ 5 Derivatives $ 24,712 $ — $ 24,712 $ — $ (8,361) $ 16,351 Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2023 and December 31, 2022 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, 2023: Derivatives - VIEs $ 3,670 $ — $ 3,670 $ — $ (1,689) $ 1,981 December 31, 2022: Derivatives - VIEs $ 7,552 $ — $ 7,552 $ — $ (2,731) $ 4,821 |
Schedule of Offsetting of Financial Liabilities | Offsetting of liabilities as of March 31, 2023 and December 31, 2022 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, 2023: Securities loaned $ 274,650 $ — $ 274,650 $ (271,957) $ — $ 2,693 Derivatives $ 16,411 $ — $ 16,411 $ — $ (9,987) $ 6,424 December 31, 2022: Securities loaned $ 272,580 $ — $ 272,580 $ (267,053) $ — $ 5,527 Derivatives $ 13,712 $ — $ 13,712 $ — $ (4,158) $ 9,554 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2023 and December 31, 2022 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, 2023: Derivatives - VIEs $ 16,311 $ — $ 16,311 $ — $ (4,634) $ 11,677 December 31, 2022: Derivatives - VIEs $ 21,540 $ — $ 21,540 $ — $ (5,444) $ 16,096 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and December 31, 2022 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2023: Money markets $ 95,690 $ — $ — $ — $ — $ 95,690 Securities segregated (U.S. Treasury Bills) — 1,054,638 — — — 1,054,638 Derivatives 4 16,683 — — — 16,687 Investments: Equity securities 121,971 28,255 170 1,524 — 151,920 Limited partnership hedge funds (2) — — — — 42,570 42,570 Time deposits (3) — — — — 7,528 7,528 Other investments 6,894 — — — 3,026 9,920 Total investments 128,865 28,255 170 1,524 53,124 211,938 Total assets measured at fair value $ 224,559 $ 1,099,576 $ 170 $ 1,524 $ 53,124 $ 1,378,953 Derivatives 4,878 11,533 — — — 16,411 Contingent payment arrangements — — 248,185 — — 248,185 Total liabilities measured at fair value $ 4,878 $ 11,533 $ 248,185 $ — $ — $ 264,596 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2022: Money markets $ 95,521 $ — $ — $ — $ — $ 95,521 Securities segregated (U.S. Treasury Bills) — 1,521,705 — — — 1,521,705 Derivatives 1,768 22,944 — — — 24,712 Investments: Equity securities 129,655 27,799 129 1,484 — 159,067 Limited partnership hedge funds (2) — — — — 42,526 42,526 Time deposits (3) — — — — 7,750 7,750 Other investments 6,689 — — — 1,486 8,175 Total investments 136,344 27,799 129 1,484 51,762 217,518 Total assets measured at fair value $ 233,633 $ 1,572,448 $ 129 $ 1,484 $ 51,762 $ 1,859,456 Derivatives 162 13,550 — — — 13,712 Contingent payment arrangements — — 247,309 — — 247,309 Total liabilities measured at fair value $ 162 $ 13,550 $ 247,309 $ — $ — $ 261,021 (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, 2023 and December 31, 2022 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2023: Investments - VIEs $ 125,788 $ 400,742 $ — $ 526,530 Investments - VOEs 16,809 — — 16,809 Derivatives - VIEs 1,211 2,459 — 3,670 Total assets measured at fair value $ 143,808 $ 403,201 $ — $ 547,009 Derivatives - VIEs 14,830 1,481 — 16,311 Total liabilities measured at fair value $ 14,830 $ 1,481 $ — $ 16,311 December 31, 2022: Investments - VIEs $ 129,706 $ 386,830 $ — $ 516,536 Derivatives - VIEs 1,529 6,023 — 7,552 Total assets measured at fair value $ 131,235 $ 392,853 $ — $ 524,088 Derivatives - VIEs $ 14,932 $ 6,608 $ — $ 21,540 Total liabilities measured at fair value $ 14,932 $ 6,608 $ — $ 21,540 |
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, 2023 2022 (in thousands) Balance as of beginning of period $ 129 $ 126 Purchases — — Sales — — Realized gains (losses), net — — Unrealized gains (losses), net 41 (7) Balance as of end of period $ 170 $ 119 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, 2023 2022 (in thousands) Balance as of beginning of period $ — $ 3,357 Deconsolidated funds — (3,351) Transfers (out) — (6) Purchases — 248 Balance as of end of period $ — $ 248 |
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, 2023 2022 (in thousands) Balance as of beginning of period $ 247,309 $ 38,260 Accretion 2,443 838 Payments (792) — Held for sale reclassification (775) — Balance as of end of period $ 248,185 $ 39,098 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Leases | Leases included in the condensed consolidated statement of financial condition as of March 31, 2023 and December 31, 2022 were as follows: Classification March 31, 2023 December 31, 2022 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 344,293 $ 360,092 Operating lease liabilities Lease liabilities 398,686 415,539 Finance Leases Property and equipment, gross Right-of-use assets 18,701 18,116 Amortization of right-of-use assets Right-of-use assets (7,386) (6,310) Property and equipment, net 11,315 11,806 Finance lease liabilities Lease liabilities 11,063 11,940 |
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, 2023 and March 31, 2022 were as follows: Three Months Ended March 31, Classification 2023 2022 (in thousands) Operating lease cost General and administrative $ 23,164 $ 24,525 Financing lease cost: Amortization of right-of-use assets General and administrative 1,076 740 Interest on lease liabilities Interest expense 65 37 Total finance lease cost 1,141 777 Variable lease cost (1) General and administrative 8,867 10,687 Sublease income General and administrative (8,260) (8,561) Net lease cost $ 24,912 $ 27,428 (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 7.28 Finance leases 3.23 Weighted average discount rate: Operating leases 2.70 % Finance leases 2.29 % Supplemental non-cash activity related to leases was as follows: Three Months Ended March 31, 2023 2022 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 3,390 7,719 Finance leases 585 2,569 (1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statement 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) 2023 (excluding the three months ended March 31, 2023) $ 74,188 $ 2,853 $ 77,041 2024 105,833 3,468 109,301 2025 38,128 3,039 41,167 2026 36,546 1,810 38,356 2027 33,578 324 33,902 Thereafter 147,132 — 147,132 Total lease payments 435,405 11,494 446,899 Less interest (36,719) (431) Present value of lease liabilities $ 398,686 $ 11,063 |
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) 2023 (excluding the three months ended March 31, 2023) $ 74,188 $ 2,853 $ 77,041 2024 105,833 3,468 109,301 2025 38,128 3,039 41,167 2026 36,546 1,810 38,356 2027 33,578 324 33,902 Thereafter 147,132 — 147,132 Total lease payments 435,405 11,494 446,899 Less interest (36,719) (431) Present value of lease liabilities $ 398,686 $ 11,063 |
Consolidated Company-Sponsore_2
Consolidated Company-Sponsored Investment Funds (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Consolidated Company-Sponsored Investment Funds [Abstract] | |
Balances of Consolidated VIEs and VOEs included in Statement of Financial Condition | The balances of consolidated VIEs and VOEs included in our condensed consolidated statements of financial condition were as follows: March 31, 2023 December 31, 2022 (in thousands) VIEs VOEs Total VIEs VOEs Total Cash and cash equivalents $ 20,417 $ — $ 20,417 $ 19,751 $ — $ 19,751 Investments 526,530 16,809 543,339 516,536 — 516,536 Other assets 30,556 239 30,795 44,424 — 44,424 Total assets $ 577,503 $ 17,048 $ 594,551 $ 580,711 $ — $ 580,711 Liabilities $ 43,586 $ 61 $ 43,647 $ 55,529 $ — $ 55,529 Redeemable non-controlling interest 374,736 1,554 376,290 368,656 — 368,656 Partners' capital attributable to AB Unitholders 159,181 15,433 174,614 156,526 — 156,526 Total liabilities, redeemable non-controlling interest and partners' capital $ 577,503 $ 17,048 $ 594,551 $ 580,711 $ — $ 580,711 |
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, 2023 and December 31, 2022 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2023: Money markets $ 95,690 $ — $ — $ — $ — $ 95,690 Securities segregated (U.S. Treasury Bills) — 1,054,638 — — — 1,054,638 Derivatives 4 16,683 — — — 16,687 Investments: Equity securities 121,971 28,255 170 1,524 — 151,920 Limited partnership hedge funds (2) — — — — 42,570 42,570 Time deposits (3) — — — — 7,528 7,528 Other investments 6,894 — — — 3,026 9,920 Total investments 128,865 28,255 170 1,524 53,124 211,938 Total assets measured at fair value $ 224,559 $ 1,099,576 $ 170 $ 1,524 $ 53,124 $ 1,378,953 Derivatives 4,878 11,533 — — — 16,411 Contingent payment arrangements — — 248,185 — — 248,185 Total liabilities measured at fair value $ 4,878 $ 11,533 $ 248,185 $ — $ — $ 264,596 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2022: Money markets $ 95,521 $ — $ — $ — $ — $ 95,521 Securities segregated (U.S. Treasury Bills) — 1,521,705 — — — 1,521,705 Derivatives 1,768 22,944 — — — 24,712 Investments: Equity securities 129,655 27,799 129 1,484 — 159,067 Limited partnership hedge funds (2) — — — — 42,526 42,526 Time deposits (3) — — — — 7,750 7,750 Other investments 6,689 — — — 1,486 8,175 Total investments 136,344 27,799 129 1,484 51,762 217,518 Total assets measured at fair value $ 233,633 $ 1,572,448 $ 129 $ 1,484 $ 51,762 $ 1,859,456 Derivatives 162 13,550 — — — 13,712 Contingent payment arrangements — — 247,309 — — 247,309 Total liabilities measured at fair value $ 162 $ 13,550 $ 247,309 $ — $ — $ 261,021 (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, 2023 and December 31, 2022 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2023: Investments - VIEs $ 125,788 $ 400,742 $ — $ 526,530 Investments - VOEs 16,809 — — 16,809 Derivatives - VIEs 1,211 2,459 — 3,670 Total assets measured at fair value $ 143,808 $ 403,201 $ — $ 547,009 Derivatives - VIEs 14,830 1,481 — 16,311 Total liabilities measured at fair value $ 14,830 $ 1,481 $ — $ 16,311 December 31, 2022: Investments - VIEs $ 129,706 $ 386,830 $ — $ 516,536 Derivatives - VIEs 1,529 6,023 — 7,552 Total assets measured at fair value $ 131,235 $ 392,853 $ — $ 524,088 Derivatives - VIEs $ 14,932 $ 6,608 $ — $ 21,540 Total liabilities measured at fair value $ 14,932 $ 6,608 $ — $ 21,540 |
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, 2023 2022 (in thousands) Balance as of beginning of period $ 129 $ 126 Purchases — — Sales — — Realized gains (losses), net — — Unrealized gains (losses), net 41 (7) Balance as of end of period $ 170 $ 119 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, 2023 2022 (in thousands) Balance as of beginning of period $ — $ 3,357 Deconsolidated funds — (3,351) Transfers (out) — (6) Purchases — 248 Balance as of end of period $ — $ 248 |
Schedule of Offsetting of Derivative Assets | Offsetting of assets as of March 31, 2023 and December 31, 2022 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, 2023: Securities borrowed $ 45,772 $ — $ 45,772 $ (45,772) $ — $ — Derivatives $ 16,687 $ — $ 16,687 $ — $ (7,871) $ 8,816 December 31, 2022: Securities borrowed $ 62,063 $ — $ 62,063 $ (62,058) $ — $ 5 Derivatives $ 24,712 $ — $ 24,712 $ — $ (8,361) $ 16,351 Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2023 and December 31, 2022 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, 2023: Derivatives - VIEs $ 3,670 $ — $ 3,670 $ — $ (1,689) $ 1,981 December 31, 2022: Derivatives - VIEs $ 7,552 $ — $ 7,552 $ — $ (2,731) $ 4,821 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of liabilities as of March 31, 2023 and December 31, 2022 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, 2023: Securities loaned $ 274,650 $ — $ 274,650 $ (271,957) $ — $ 2,693 Derivatives $ 16,411 $ — $ 16,411 $ — $ (9,987) $ 6,424 December 31, 2022: Securities loaned $ 272,580 $ — $ 272,580 $ (267,053) $ — $ 5,527 Derivatives $ 13,712 $ — $ 13,712 $ — $ (4,158) $ 9,554 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2023 and December 31, 2022 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, 2023: Derivatives - VIEs $ 16,311 $ — $ 16,311 $ — $ (4,634) $ 11,677 December 31, 2022: Derivatives - VIEs $ 21,540 $ — $ 21,540 $ — $ (5,444) $ 16,096 |
Units Outstanding (Tables)
Units Outstanding (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Changes in AB Units Outstanding | Changes in AB Units outstanding during the three-month period ended March 31, 2023 were as follows: Outstanding as of December 31, 2022 285,979,913 Units issued 94,258 Units retired (1) (419,736) Outstanding as of March 31, 2023 285,654,435 (1) During the three-months ended March 31, 2023, we purchased 600 AB Units in private transactions and retired them. |
Divestitures (Tables)
Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the assets and liabilities of the disposal group classified as held for sale on the condensed consolidated statement of financial condition as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Cash and cash equivalents $ 154,484 $ 159,123 Receivables, net: Brokers and dealers 64,547 44,717 Brokerage clients 29,709 29,243 Other fees 22,245 22,988 Investments 15,988 24,507 Furniture and equipment, net 4,008 4,128 Other assets 223,933 107,764 Right-of-use assets 1,537 1,552 Intangible assets 4,692 4,903 Goodwill 159,826 159,826 Valuation adjustment (allowance) on disposal group (9,900) (7,400) Total assets held for sale $ 671,069 $ 551,351 Payables: Brokers and dealers $ 43,001 $ 32,983 Brokerage clients 31,529 10,232 Other liabilities 66,407 50,884 Accrued compensation and benefits 16,824 13,853 Total liabilities held for sale $ 157,761 $ 107,952 |
Business Description Organiza_4
Business Description Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2023 shares | |
General partnership information [Abstract] | |
General Partnership number of general partnership units owned in Holding Company (in shares) | 100,000 |
Limited Liability Company Llc Or Limited Partnership Lp Members Or Limited Partners Economic Interest In Company | 61.40% |
AB Holding | Equitable Holdings, Inc. And Subsidiaries | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 3.50% |
AB Holding | AB | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 1% |
Business Description and Organi
Business Description and Organization - Summary of Ownership Structure (Details) | 3 Months Ended |
Mar. 31, 2023 | |
AB | |
Ownership structure of AllianceBernstein expressed as a percentage of general and limited partnership interests [Abstract] | |
Limited partners or members ownership interest in company (percent) | 100% |
EQH and its subsidiaries | |
Ownership structure of AllianceBernstein expressed as a percentage of general and limited partnership interests [Abstract] | |
Limited partners or members ownership interest in company (percent) | 60% |
AB Holding | |
Ownership structure of AllianceBernstein expressed as a percentage of general and limited partnership interests [Abstract] | |
Limited partners or members ownership interest in company (percent) | 39.30% |
Unaffiliated holders | |
Ownership structure of AllianceBernstein expressed as a percentage of general and limited partnership interests [Abstract] | |
Limited partners or members ownership interest in company (percent) | 0.70% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | $ 996,007 | $ 1,135,853 |
Not subject to contracts with customers: | ||
Dividend and interest income, net of interest expense | 22,658 | 8,626 |
Investment gains (losses) | 5,264 | (39,024) |
Other revenues | 162 | 232 |
Total revenue not from contract with customer | 28,084 | (30,166) |
Net revenues | 1,024,091 | 1,105,687 |
Base fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 692,327 | 747,813 |
Performance-based fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 36,580 | 75,969 |
Bernstein research services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 100,038 | 117,807 |
All-in-management fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 68,788 | 81,221 |
12b-1 fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 15,155 | 19,517 |
Other distribution fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 57,135 | 67,603 |
Shareholder servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 20,293 | 22,414 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | $ 5,691 | $ 3,509 |
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, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Total amount of AB Holding Units Purchased/Retained (in shares) | 0.5 | 0.3 |
Total Cash Paid for AB Holding Units Purchased/Retained | $ 18.8 | $ 14 |
Open Market Purchases of AB Holding Units Purchased (in shares) | 0 | 0 |
Total Cash Paid for Open Market Purchases of AB Holding Units | $ 0 | $ 0 |
Long-term Incentive Compensat_4
Long-term Incentive Compensation Plans (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AB Holding Units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Units granted to employees and eligible directors (in shares) | 0.3 | 0.7 |
Net Income per Unit (Details)
Net Income per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Limited Partners interest in Company (as a percent) | 99% | |
Net income per unit, basic and diluted [Abstract] | ||
Net income attributable to AB Unitholders | $ 194,151 | $ 260,727 |
Weighted average limited partnership units outstanding – basic (in shares) | 285,726,000 | 271,383,000 |
Dilutive effect of compensatory options to buy AB Holding Units (in shares) | 0 | 3,000 |
Weighted average limited partnership units outstanding – diluted (in shares) | 285,726,000 | 271,386,000 |
Basic net income per AB Unit (in dollars per share) | $ 0.67 | $ 0.95 |
Diluted net income per AB Unit (in dollars per share) | $ 0.67 | $ 0.95 |
Anti-dilutive options excluded from diluted net income (in shares) | 0 | 0 |
AB Holding | AB | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
General partnership interest in Company (percent) | 1% |
Cash Distributions (Details)
Cash Distributions (Details) - $ / shares | 3 Months Ended | |
Apr. 26, 2023 | Mar. 31, 2023 | |
General Partner Interest | ||
Distribution Made to Limited Partner [Line Items] | ||
General partnership interest in Company (percent) | 1% | |
General Partner Interest | Cash Distribution | ||
Distribution Made to Limited Partner [Line Items] | ||
General partnership interest in Company (percent) | 1% | |
Subsequent Event | ||
Distribution Made to Limited Partner [Line Items] | ||
Distribution declared (in dollars per share) | $ 0.74 |
Cash and Securities Segregate_2
Cash and Securities Segregated Under Federal Regulations and Other Requirements (Details) - USD ($) $ in Billions | Mar. 31, 2023 | Dec. 31, 2022 |
Broker-Dealer [Abstract] | ||
United States Treasury Bills in special reserve bank custody account for exclusive benefit of brokerage customers | $ 1.1 | $ 1.5 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 211,938 | $ 217,518 |
Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 324,600 | 309,600 |
Equity securities | Long-term incentive compensation-related | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 17,145 | 21,055 |
Equity securities | Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 134,775 | 138,012 |
Investments in limited partnership hedge funds | Long-term incentive compensation-related | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 26,839 | 26,815 |
Investments in limited partnership hedge funds | Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 15,731 | 15,711 |
Time deposits | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 7,528 | 7,750 |
Other | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 9,920 | $ 8,175 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investment Holdings [Line Items] | ||
Long-term incentive compensation-related | $ 44,000 | $ 47,900 |
Investments owned | 211,938 | 217,518 |
Seed capital | ||
Investment Holdings [Line Items] | ||
Investments owned | $ 324,600 | $ 309,600 |
Investments - Gains (Losses) Re
Investments - Gains (Losses) Related to Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains (losses) recognized during the period | $ 5,464 | $ (16,550) |
Less: net gains recognized during the period on equity securities sold during the period | 590 | 4,539 |
Unrealized gains (losses) recognized during the period on equity securities held | $ 4,874 | $ (21,089) |
Derivative Instruments - Notion
Derivative Instruments - Notional Value and Fair Value of Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional Value | $ 535,905 | $ 510,544 |
Derivative Assets | 16,687 | 24,712 |
Derivative Liabilities | 16,411 | 13,712 |
Exchange-traded futures | ||
Derivative [Line Items] | ||
Notional Value | 164,368 | 154,687 |
Derivative Assets | 4 | 1,768 |
Derivative Liabilities | 4,878 | 162 |
Currency forwards | ||
Derivative [Line Items] | ||
Notional Value | 35,796 | 34,597 |
Derivative Assets | 4,456 | 4,446 |
Derivative Liabilities | 5,019 | 5,047 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Value | 14,890 | 16,847 |
Derivative Assets | 204 | 386 |
Derivative Liabilities | 162 | 262 |
Credit default swaps | ||
Derivative [Line Items] | ||
Notional Value | 218,604 | 225,671 |
Derivative Assets | 11,796 | 17,507 |
Derivative Liabilities | 4,882 | 7,302 |
Total return swaps | ||
Derivative [Line Items] | ||
Notional Value | 52,247 | 28,742 |
Derivative Assets | 227 | 605 |
Derivative Liabilities | 1,178 | 933 |
Option swaps | ||
Derivative [Line Items] | ||
Notional Value | 50,000 | 50,000 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 292 | $ 6 |
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, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Net (losses) gains on derivative instruments | $ (10,494) | $ 19,732 |
Exchange-traded futures | ||
Derivative [Line Items] | ||
Net (losses) gains on derivative instruments | (4,632) | 7,513 |
Currency forwards | ||
Derivative [Line Items] | ||
Net (losses) gains on derivative instruments | (105) | 544 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Net (losses) gains on derivative instruments | (63) | (73) |
Credit default swaps | ||
Derivative [Line Items] | ||
Net (losses) gains on derivative instruments | (2,228) | 1,717 |
Total return swaps | ||
Derivative [Line Items] | ||
Net (losses) gains on derivative instruments | (2,056) | 7,406 |
Option swaps | ||
Derivative [Line Items] | ||
Net (losses) gains on derivative instruments | $ (1,410) | $ 2,625 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Cash collateral payable to trade counterparties | $ 7.9 | $ 8.4 | |
Cash collateral received | 10 | $ 4.2 | |
Gains (losses) on equity options activity | $ 2.9 | $ 2 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Offsetting Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Securities borrowed | ||
Gross Amounts of Recognized Assets | $ 45,772 | $ 62,063 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 45,772 | 62,063 |
Financial Instruments Collateral | (45,772) | (62,058) |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 5 |
Derivatives | ||
Cash Collateral Received | (7,900) | (8,400) |
Derivatives | ||
Derivatives | ||
Gross Amounts of Recognized Assets | 16,687 | 24,712 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 16,687 | 24,712 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | (7,871) | (8,361) |
Net Amount | $ 8,816 | $ 16,351 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Securities loaned | ||
Gross Amounts of Recognized Liabilities | $ 272,580 | |
Gross Amounts Offset in the Statement of Financial Condition | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 272,580 | |
Financial Instruments Collateral | (267,053) | |
Cash Collateral Pledged | 0 | |
Net Amount | 5,527 | |
Derivatives | ||
Cash Collateral Pledged | $ (10,000) | (4,200) |
Derivatives | ||
Derivatives | ||
Gross Amounts of Recognized Liabilities | 16,411 | 13,712 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 16,411 | 13,712 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | (9,987) | (4,158) |
Net Amount | 6,424 | $ 9,554 |
Securities loaned | ||
Securities loaned | ||
Gross Amounts of Recognized Liabilities | 274,650 | |
Gross Amounts Offset in the Statement of Financial Condition | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 274,650 | |
Financial Instruments Collateral | (271,957) | |
Cash Collateral Pledged | 0 | |
Net Amount | $ 2,693 |
Fair Value - Valuation of Finan
Fair Value - Valuation of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | $ 53,124 | $ 51,762 |
Contingent payment arrangements | $ 248,185 | $ 247,309 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Brokers and dealers | Brokers and dealers |
Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | $ 7,528 | $ 7,750 |
Limited partnership hedge funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 42,570 | 42,526 |
Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 3,026 | 1,486 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets | 95,690 | 95,521 |
Securities segregated (U.S. Treasury Bills) | 1,054,638 | 1,521,705 |
Derivatives | 16,687 | 24,712 |
Total investments measured at fair value and other measurements | 211,938 | 217,518 |
Total assets measured at fair value and other measurements | 1,378,953 | 1,859,456 |
Derivatives | 16,411 | 13,712 |
Contingent payment arrangements | 248,185 | 247,309 |
Total liabilities measured at fair value | 264,596 | 261,021 |
Recurring | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 7,528 | 7,750 |
Recurring | Limited partnership hedge funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 42,570 | 42,526 |
Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 151,920 | 159,067 |
Recurring | Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments measured at fair value and other measurements | 9,920 | 8,175 |
Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets | 95,690 | 95,521 |
Securities segregated (U.S. Treasury Bills) | 0 | 0 |
Derivatives | 4 | 1,768 |
Total investments | 128,865 | 136,344 |
Total assets measured at fair value | 224,559 | 233,633 |
Derivatives | 4,878 | 162 |
Contingent payment arrangements | 0 | 0 |
Total liabilities measured at fair value | 4,878 | 162 |
Level 1 | Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 121,971 | 129,655 |
Level 1 | Recurring | Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 6,894 | 6,689 |
Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets | 0 | 0 |
Securities segregated (U.S. Treasury Bills) | 1,054,638 | 1,521,705 |
Derivatives | 16,683 | 22,944 |
Total investments | 28,255 | 27,799 |
Total assets measured at fair value | 1,099,576 | 1,572,448 |
Derivatives | 11,533 | 13,550 |
Contingent payment arrangements | 0 | 0 |
Total liabilities measured at fair value | 11,533 | 13,550 |
Level 2 | Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 28,255 | 27,799 |
Level 3 | Recurring | ||
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 | 170 | 129 |
Total assets measured at fair value | 170 | 129 |
Derivatives | 0 | 0 |
Contingent payment arrangements | 248,185 | 247,309 |
Total liabilities measured at fair value | 248,185 | 247,309 |
Level 3 | Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 170 | 129 |
NAV Expedient | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 1,524 | 1,484 |
Total assets measured at fair value | 1,524 | 1,484 |
NAV Expedient | Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 1,524 | $ 1,484 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 53,124,000 | $ 51,762,000 | |
Fair value assets level 2 to level 3 transfers amount | $ 0 | ||
Revenue growth rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.020 | 0.020 | |
Revenue growth rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.839 | 0.839 | |
Revenue growth rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.103 | 0.079 | |
Discount rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.019 | 0.019 | |
Discount rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.104 | 0.104 | |
Discount rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.046 | 0.070 | |
Other | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 3,026,000 | 1,486,000 | |
Mutual Fund | Other | Level 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Investments, fair value disclosure | 6,900,000 | 6,700,000 | |
Start-up company | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | 300,000 | ||
Broker dealer exchange memberships | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 2,700,000 | $ 1,200,000 |
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, 2023 | Mar. 31, 2022 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | $ 129 | $ 126 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Realized gains (losses), net | 0 | 0 |
Unrealized gains (losses), net | 41 | (7) |
Balance as of end of period | $ 170 | $ 119 |
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, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measurement Level 3 reconciliation | ||
Balance as of beginning of period | $ 247,309 | $ 38,260 |
Accretion | 2,443 | 838 |
Payments | (792) | 0 |
Held for sale reclassification | (775) | 0 |
Balance as of end of period | $ 248,185 | $ 39,098 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | |
Dec. 14, 2022 plaintiff | Mar. 31, 2023 USD ($) fund | |
Other [Abstract] | ||
Number of participants that filed a class action complaint | plaintiff | 4 | |
Committed total required invest funding | $ 52.3 | |
Number of real estate funds | fund | 2 | |
Real Estate Fund I & II | ||
Other [Abstract] | ||
Commitment agreement fundings | $ 44.1 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) 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) | 1,000,000 |
New York City | |
Lessee, Lease, Description [Line Items] | |
Area of space leased (in square feet) | 166,000 |
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, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 344,293 | $ 360,092 |
Operating lease liabilities | $ 398,686 | $ 415,539 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Right-of-use assets | Right-of-use assets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Lease liabilities | Lease liabilities |
Finance Leases | ||
Property and equipment, gross | $ 18,701 | $ 18,116 |
Amortization of right-of-use assets | (7,386) | (6,310) |
Property and equipment, net | 11,315 | 11,806 |
Finance lease liabilities | $ 11,063 | $ 11,940 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Right-of-use assets | Right-of-use assets |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Lease liabilities | Lease liabilities |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 23,164 | $ 24,525 |
Financing lease cost: | ||
Amortization of right-of-use assets | 1,076 | 740 |
Interest on lease liabilities | 65 | 37 |
Total finance lease cost | 1,141 | 777 |
Variable lease cost | 8,867 | 10,687 |
Sublease income | (8,260) | (8,561) |
Net lease cost | $ 24,912 | $ 27,428 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2023 (excluding the three months ended March 31, 2023) | $ 74,188 | |
2024 | 105,833 | |
2025 | 38,128 | |
2026 | 36,546 | |
2027 | 33,578 | |
Thereafter | 147,132 | |
Total lease payments | 435,405 | |
Less interest | (36,719) | |
Present value of lease liabilities | 398,686 | $ 415,539 |
Financing Leases | ||
2023 (excluding the three months ended March 31, 2023) | 2,853 | |
2024 | 3,468 | |
2025 | 3,039 | |
2026 | 1,810 | |
2027 | 324 | |
Thereafter | 0 | |
Total lease payments | 11,494 | |
Less interest | (431) | |
Present value of lease liabilities | 11,063 | $ 11,940 |
Total | ||
2023 (excluding the three months ended March 31, 2023) | 77,041 | |
2024 | 109,301 | |
2025 | 41,167 | |
2026 | 38,356 | |
2027 | 33,902 | |
Thereafter | 147,132 | |
Total lease payments | $ 446,899 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Mar. 31, 2023 |
Weighted average remaining lease term (years): | |
Operating leases | 7 years 3 months 10 days |
Finance leases | 3 years 2 months 23 days |
Weighted average discount rate: | |
Operating leases (as percent) | 2.70% |
Finance leases (as percent) | 2.29% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 3,390 | $ 7,719 |
Finance leases | $ 585 | $ 2,569 |
Consolidated Company-Sponsore_3
Consolidated Company-Sponsored Investment Funds - Summary of Balance Sheet Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Total assets | $ 10,390,865 | $ 11,138,931 | |
Liabilities | 5,571,217 | 6,292,635 | |
Redeemable non-controlling interest | 376,290 | 368,656 | |
Partners' capital attributable to AB Unitholders | 4,443,358 | 4,477,640 | $ 4,036,699 |
Total liabilities, redeemable non-controlling interest and capital | 10,390,865 | 11,138,931 | |
Company-sponsored investment funds | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 20,417 | 19,751 | |
Investments | 543,339 | 516,536 | |
Other assets | 30,795 | 44,424 | |
Total assets | 594,551 | 580,711 | |
Liabilities | 43,647 | 55,529 | |
Redeemable non-controlling interest | 376,290 | 368,656 | |
Partners' capital attributable to AB Unitholders | 174,614 | 156,526 | |
Total liabilities, redeemable non-controlling interest and capital | 594,551 | 580,711 | |
VIEs | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 20,417 | 19,751 | |
Investments | 526,530 | 516,536 | |
Other assets | 30,556 | 44,424 | |
Total assets | 577,503 | 580,711 | |
Liabilities | 43,586 | 55,529 | |
Redeemable non-controlling interest | 374,736 | 368,656 | |
Partners' capital attributable to AB Unitholders | 159,181 | 156,526 | |
Total liabilities, redeemable non-controlling interest and capital | 577,503 | 580,711 | |
VOEs | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Investments | 16,809 | 0 | |
Other assets | 239 | 0 | |
Total assets | 17,048 | 0 | |
Liabilities | 61 | 0 | |
Redeemable non-controlling interest | 1,554 | 0 | |
Partners' capital attributable to AB Unitholders | 15,433 | 0 | |
Total liabilities, redeemable non-controlling interest and capital | $ 17,048 | $ 0 |
Consolidated Company-Sponsore_4
Consolidated Company-Sponsored Investment Funds - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) fund | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | |||
Gains (losses) on derivative instruments | $ (10,494,000) | $ 19,732,000 | |
Cash collateral payable to trade counterparties | 7,900,000 | $ 8,400,000 | |
Cash collateral received | 10,000,000 | 4,200,000 | |
Advisory fee receivables | 139,695,000 | 127,040,000 | |
VIEs | |||
Derivative [Line Items] | |||
Futures, forwards and swaps held | 12,600,000 | 14,000,000 | |
Gains (losses) on derivative instruments | 1,700,000 | $ 500,000 | |
Cash collateral payable to trade counterparties | 1,689,000 | 2,731,000 | |
Cash collateral received | 4,634,000 | 5,444,000 | |
Non-consolidated VIEs | |||
Derivative [Line Items] | |||
Net assets | 49,000,000,000 | 46,400,000,000 | |
Maximum risk of loss in investment in VIEs | 8,800,000 | 5,700,000 | |
Advisory fee receivables | 57,500,000 | 54,200,000 | |
VOEs | |||
Derivative [Line Items] | |||
Futures, forwards and swaps held | 0 | ||
Cash collateral payable to trade counterparties | 0 | ||
Cash collateral received | $ 0 | ||
Seed capital | |||
Derivative [Line Items] | |||
Number of deconsolidated funds | fund | 1 | ||
Seed investment, deconsolidated amount | $ 1,700,000 |
Consolidated Company-Sponsore_5
Consolidated Company-Sponsored Investment Funds - Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
VIEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - VIEs | $ 3,670 | $ 7,552 |
Derivatives | 16,311 | 21,540 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - VIEs | 16,687 | 24,712 |
Derivatives | 16,411 | 13,712 |
Total liabilities measured at fair value | 264,596 | 261,021 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 128,865 | 136,344 |
Derivatives - VIEs | 4 | 1,768 |
Total assets measured at fair value | 224,559 | 233,633 |
Derivatives | 4,878 | 162 |
Total liabilities measured at fair value | 4,878 | 162 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 28,255 | 27,799 |
Derivatives - VIEs | 16,683 | 22,944 |
Total assets measured at fair value | 1,099,576 | 1,572,448 |
Derivatives | 11,533 | 13,550 |
Total liabilities measured at fair value | 11,533 | 13,550 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 170 | 129 |
Derivatives - VIEs | 0 | 0 |
Total assets measured at fair value | 170 | 129 |
Derivatives | 0 | 0 |
Total liabilities measured at fair value | 248,185 | 247,309 |
Recurring | Company-sponsored investment funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 547,009 | 524,088 |
Total liabilities measured at fair value | 16,311 | 21,540 |
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 | 143,808 | 131,235 |
Total liabilities measured at fair value | 14,830 | 14,932 |
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 | 403,201 | 392,853 |
Total liabilities measured at fair value | 1,481 | 6,608 |
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 | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Recurring | VIEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 526,530 | 516,536 |
Derivatives - VIEs | 3,670 | 7,552 |
Derivatives | 16,311 | 21,540 |
Recurring | VIEs | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 125,788 | 129,706 |
Derivatives - VIEs | 1,211 | 1,529 |
Derivatives | 14,830 | 14,932 |
Recurring | VIEs | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 400,742 | 386,830 |
Derivatives - VIEs | 2,459 | 6,023 |
Derivatives | 1,481 | 6,608 |
Recurring | VIEs | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 0 | 0 |
Derivatives - VIEs | 0 | 0 |
Derivatives | 0 | $ 0 |
Recurring | VOEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 16,809 | |
Recurring | VOEs | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 16,809 | |
Recurring | VOEs | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 0 | |
Recurring | VOEs | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | $ 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, 2023 | Mar. 31, 2022 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | $ 129 | $ 126 |
Purchases | 0 | 0 |
Balance as of end of period | 170 | 119 |
Company-sponsored investment funds | ||
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | 0 | 3,357 |
Deconsolidated funds | 0 | (3,351) |
Transfers (out) | 0 | (6) |
Purchases | 0 | 248 |
Balance as of end of period | $ 0 | $ 248 |
Consolidated Company-Sponsore_7
Consolidated Company-Sponsored Investment Funds - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives | ||
Cash Collateral Received | $ (7,900) | $ (8,400) |
Derivatives | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Broker-Dealer, Payable to Other Broker-Dealer and Clearing Organization | Broker-Dealer, Payable to Other Broker-Dealer and Clearing Organization |
Cash Collateral Pledged | $ (10,000) | $ (4,200) |
VIEs | ||
Derivatives | ||
Gross Amounts of Recognized Assets | 3,670 | 7,552 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 3,670 | 7,552 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | (1,689) | (2,731) |
Net Amount | 1,981 | 4,821 |
Derivatives | ||
Gross Amounts of Recognized Liabilities | 16,311 | 21,540 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 16,311 | 21,540 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | (4,634) | (5,444) |
Net Amount | $ 11,677 | $ 16,096 |
Units Outstanding (Details)
Units Outstanding (Details) | 3 Months Ended |
Mar. 31, 2023 shares | |
Units Outstanding | |
Beginning balance (in shares) | 285,979,913 |
Units issued (in shares) | 94,258 |
Units retired (in shares) | (419,736) |
Ending balance (in shares) | 285,654,435 |
AB units purchased and retired in private transactions (in shares) | 600 |
Debt (Details)
Debt (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) lineOfCredit financialInstitution | Dec. 31, 2022 USD ($) | Sep. 01, 2020 USD ($) | |
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 (as percent) | 4.70% | 1.50% | |
Short-term debt | $ 0 | $ 0 | |
Short-term debt, average outstanding amount | $ 339,500,000 | $ 189,900,000 | |
Uncommited Lines of Credit | |||
Short-term Debt [Line Items] | |||
Weighted average interest rates (as percent) | 7.70% | 3.70% | |
Short-term debt | $ 0 | $ 0 | |
Short-term debt, average outstanding amount | $ 3,700,000 | $ 1,400,000 | |
Equitable Holdings, Inc. And Subsidiaries | |||
Short-term Debt [Line Items] | |||
Weighted average interest rates on average daily borrowings (as percent) | 4.50% | 4.30% | |
Short-term debt, average outstanding amount | $ 7,000,000 | $ 700,000 | |
EQH | |||
Short-term Debt [Line Items] | |||
Amount outstanding | $ 900,000,000 | $ 900,000,000 | |
Weighted average interest rates (as percent) | 4.70% | 4.30% | |
Average daily borrowings | $ 804,100,000 | $ 655,200,000 | |
Weighted average interest rates on average daily borrowings (as percent) | 4.40% | 1.70% | |
EQH | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 900,000,000 | ||
EQH Uncommitted Facility | |||
Short-term Debt [Line Items] | |||
Weighted average interest rates (as percent) | 4.70% | 4.30% | |
EQH Uncommitted Facility | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | ||
Amount outstanding | $ 135,000,000 | $ 90,000,000 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Nov. 22, 2022 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in the joint venture, with an option | 100% | |||
Option to acquire controlling interest in joint venture, term | 5 years | |||
Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Valuation adjustment, expense on disposal group | $ 2,500 | $ 7,400 | ||
Cash and cash equivalents | $ 154,484 | $ 159,123 | ||
Forecast | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in the joint venture hold | 49% | |||
Forecast | Societe Generale | Joint Venture | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in the joint venture | 51% |
Divestitures - Summarizes the A
Divestitures - Summarizes the Assets and Liabilities of the Disposal Group Classified (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 671,069 | $ 551,351 |
Total liabilities held for sale | 157,761 | 107,952 |
Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 154,484 | 159,123 |
Investments | 15,988 | 24,507 |
Furniture and equipment, net | 4,008 | 4,128 |
Other assets | 223,933 | 107,764 |
Right-of-use assets | 1,537 | 1,552 |
Intangible assets | 4,692 | 4,903 |
Goodwill | 159,826 | 159,826 |
Valuation adjustment (allowance) on disposal group | (9,900) | (7,400) |
Assets held for sale | 671,069 | 551,351 |
Payables: Brokers and dealers | 43,001 | 32,983 |
Payables: Brokerage clients | 31,529 | 10,232 |
Other liabilities | 66,407 | 50,884 |
Accrued compensation and benefits | 16,824 | 13,853 |
Total liabilities held for sale | 157,761 | 107,952 |
Discontinued Operations, Held-for-sale | Brokers and Dealers | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net: | 64,547 | 44,717 |
Discontinued Operations, Held-for-sale | Brokerage Clients | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net: | 29,709 | 29,243 |
Discontinued Operations, Held-for-sale | Other Fees | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net: | $ 22,245 | $ 22,988 |