Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
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 | 287,322,525 |
Entity Central Index Key | 0001109448 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 893,667 | $ 1,000,103 |
Cash and securities segregated, at fair value (cost: $856,569 and $859,448) | 865,586 | 867,680 |
Receivables, net: | ||
Brokers and dealers | 61,124 | 53,144 |
Brokerage clients | 1,330,045 | 1,314,656 |
Other fees | 129,257 | 125,500 |
Investments: | ||
Long-term incentive compensation-related | 36,741 | 40,033 |
Other | 183,527 | 203,521 |
Assets of consolidated company-sponsored investment funds: | ||
Furniture, equipment and leasehold improvements, net | 195,744 | 176,348 |
Goodwill | 3,598,591 | 3,598,591 |
Intangible assets, net | 253,460 | 264,555 |
Deferred sales commissions, net | 107,272 | 87,374 |
Right-of-use assets | 505,288 | 323,766 |
Assets held for sale | 745,471 | 564,776 |
Other assets | 216,311 | 216,213 |
Total assets | 9,796,380 | 9,609,806 |
Payables: | ||
Brokers and dealers | 221,672 | 259,175 |
Brokerage clients | 2,162,873 | 2,200,835 |
Contingent consideration liability | 254,108 | 252,690 |
Accounts payable and accrued expenses | 488,951 | 172,163 |
Lease liabilities | 570,163 | 369,017 |
Accrued compensation and benefits | 401,384 | 372,305 |
Debt | 900,000 | 1,154,316 |
Liabilities held for sale | 239,049 | 153,342 |
Total liabilities | 5,253,803 | 4,947,024 |
Commitments and contingencies (See Note 12) | ||
Redeemable non-controlling interest of consolidated entities | 124,894 | 209,420 |
Capital: | ||
General Partner | 45,325 | 45,388 |
Limited partners: 287,322,525 and 286,609,212 units issued and outstanding | 4,584,317 | 4,590,619 |
Receivables from affiliates | (4,686) | (4,490) |
AB Holding Units held for long-term incentive compensation plans | (95,859) | (76,363) |
Accumulated other comprehensive (loss) | (115,894) | (106,364) |
Partners’ capital attributable to AB Unitholders | 4,413,203 | 4,448,790 |
Non-redeemable non-controlling interests in consolidated entities | 4,480 | 4,572 |
Total capital | 4,417,683 | 4,453,362 |
Total liabilities, non-controlling interest and capital | 9,796,380 | 9,609,806 |
Company-Sponsored Investment Funds | ||
Assets of consolidated company-sponsored investment funds: | ||
Cash and cash equivalents | 7,536 | 7,739 |
Investments | 298,128 | 397,174 |
Other assets | 10,953 | 25,299 |
Total assets | 316,617 | 430,212 |
Payables: | ||
Liabilities of consolidated company-sponsored investment funds | 14,132 | 12,537 |
Total liabilities | 14,132 | 12,537 |
Redeemable non-controlling interest of consolidated entities | 124,894 | 209,420 |
Capital: | ||
Total capital | 177,591 | 208,255 |
Total liabilities, non-controlling interest and capital | 316,617 | 430,212 |
AllianceBernstein L.P. (AB) | ||
Receivables, net: | ||
AB funds fees | 357,679 | 343,334 |
Payables: | ||
AB mutual funds | $ 1,471 | $ 644 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Cash and securities segregated, at cost | $ 856,569 | $ 859,448 |
Limited partners, units issued (in units) | 287,322,525 | 286,609,212 |
Limited partners, units outstanding (in shares) | 287,322,525 | 286,609,212 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Dividend and interest income | $ 44,515 | $ 50,679 |
Investment gains | 11,743 | 5,264 |
Other revenues | 25,293 | 26,146 |
Total revenues | 1,127,868 | 1,052,112 |
Less: Broker-dealer related interest expense | 23,717 | 28,021 |
Net revenues | 1,104,151 | 1,024,091 |
Expenses: | ||
Employee compensation and benefits | 452,772 | 434,163 |
Promotion and servicing: | ||
Amortization of deferred sales commissions | 11,799 | 8,154 |
Trade execution, marketing, T&E and other | 54,991 | 50,630 |
General and administrative | 137,910 | 139,653 |
Contingent payment arrangements | 2,558 | 2,444 |
Interest on borrowings | 17,370 | 13,713 |
Amortization of intangible assets | 11,772 | 11,693 |
Total expenses | 862,154 | 808,831 |
Operating income | 241,997 | 215,260 |
Income taxes | 16,042 | 11,342 |
Net income | 225,955 | 203,918 |
Net income of consolidated entities attributable to non-controlling interests | 8,028 | 9,767 |
Net income attributable to AB Unitholders | $ 217,927 | $ 194,151 |
Net income per AB Unit: | ||
Basic (in dollars per share) | $ 0.75 | $ 0.67 |
Diluted (in dollars per share) | $ 0.75 | $ 0.67 |
Investment advisory and services fees | ||
Revenues: | ||
Revenue subject to contracts with customers | $ 784,405 | $ 728,907 |
Bernstein research services | ||
Revenues: | ||
Revenue subject to contracts with customers | 96,222 | 100,038 |
Distribution revenues | ||
Revenues: | ||
Revenue subject to contracts with customers | 165,690 | 141,078 |
Promotion and servicing: | ||
Distribution-related payments | $ 172,982 | $ 148,381 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 225,955 | $ 203,918 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments, before tax | (10,309) | 6,131 |
Income tax benefit | 109 | 47 |
Foreign currency translation adjustments, net of tax | (10,200) | 6,178 |
Changes in employee benefit related items: | ||
Amortization of prior service cost | 6 | 6 |
Recognized actuarial gain | 669 | 298 |
Changes in employee benefit related items | 675 | 304 |
Income tax (expense) | (5) | (3) |
Employee benefit related items, net of tax | 670 | 301 |
Other comprehensive (loss) income | (9,530) | 6,479 |
Less: Comprehensive income in consolidated entities attributable to non-controlling interests | 8,028 | 9,767 |
Comprehensive income attributable to AB Unitholders | $ 208,397 | $ 200,630 |
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 | General Partner’s Capital | Limited Partners' Capital |
Partners' capital, beginning balance at Dec. 31, 2022 | $ (4,270) | $ (95,318) | $ (129,477) | $ 45,985 | $ 4,648,113 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 203,918 | $ 0 | 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 | (125) | (12,471) | |||||
Capital contributions (to) AB Holding | (1,018) | ||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (18,090) | ||||||
(Issuance) Retirement of AB Units, net | 12,510 | ||||||
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 | |||||
Distributions to non-controlling interests, net | 0 | ||||||
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 | ||||||
Total capital | 4,453,362 | ||||||
Partners' capital, beginning balance at Dec. 31, 2023 | 4,448,790 | (4,490) | (76,363) | (106,364) | 45,388 | 4,590,619 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 225,955 | 118 | 2,179 | 215,748 | |||
Cash distributions | (2,465) | (243,579) | |||||
Long-term incentive compensation | 215 | 8,761 | 67 | 6,674 | |||
Issuance of AB Units, net | 156 | 14,855 | |||||
Capital contributions (to) AB Holding | (411) | ||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (5,552) | ||||||
(Issuance) Retirement of AB Units, net | (15,483) | ||||||
Re-valuation of AB Holding Units held in rabbi trust | (7,222) | ||||||
Foreign currency translation adjustment, net of tax | (10,200) | (10,200) | |||||
Changes in employee benefit related items, net of tax | 670 | 670 | |||||
Distributions to non-controlling interests, net | (210) | ||||||
Adjustment | 0 | ||||||
Partners' capital, ending balance at Mar. 31, 2024 | 4,413,203 | $ (4,686) | $ (95,859) | $ (115,894) | $ 45,325 | $ 4,584,317 | |
Balance, beginning of period at Dec. 31, 2023 | 4,572 | ||||||
Balance, end of period at Mar. 31, 2024 | $ 4,480 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total capital | $ 4,417,683 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities: | |||
Net income | $ 225,955 | $ 203,918 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred sales commissions | 11,799 | 8,154 | |
Non-cash long-term incentive compensation expense | 8,976 | 6,776 | |
Depreciation and other amortization | 23,244 | 22,849 | |
Non-cash lease expense | 29,123 | 26,426 | |
(Gain) loss on assets held for sale | (650) | 2,500 | |
Other, net | 7,795 | (3,523) | |
Changes in assets and liabilities: | |||
Decrease in securities, segregated | 2,094 | 467,788 | |
(Increase) decrease in receivables | (17,238) | 126,176 | |
(Increase) in deferred sales commissions | (31,697) | (14,120) | |
(Decrease) in payables | (71,542) | (764,090) | |
Increase (decrease) in accounts payable and accrued expenses | 50,615 | (12,365) | |
Increase in accrued compensation and benefits | 34,064 | 23,277 | |
Cash payments to relieve operating lease liabilities | (7,901) | (26,566) | |
Net cash provided by (used in) operating activities | 353,687 | (46,912) | |
Cash flows from investing activities: | |||
Purchases of furniture, equipment and leasehold improvements | (31,289) | (10,572) | |
Joint venture equalization payment | 303,980 | 0 | |
Net cash provided by (used in) investing activities | 272,691 | (10,572) | |
Cash flows from financing activities: | |||
Repayment of debt, net | (254,316) | ||
Proceeds from debt, net | 45,000 | ||
Increase in overdrafts payable | 45,688 | 86 | |
Distributions to General Partner and Unitholders | (246,044) | (221,919) | |
Capital contributions (to) affiliates | (891) | (1,324) | |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net | (5,552) | (18,090) | |
Other, net | (3,052) | (2,339) | |
Net cash (used in) financing activities | (556,721) | (200,719) | |
Effect of exchange rate changes on cash and cash equivalents | (10,156) | 10,232 | |
Net increase (decrease) in cash and cash equivalents | 59,501 | (247,971) | |
Cash and cash equivalents as of beginning of the period | 1,160,889 | 1,309,017 | $ 1,309,017 |
Cash and cash equivalents as of end of the period | 1,220,390 | 1,061,046 | $ 1,160,889 |
Excluding Company-Sponsored Investment Funds | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Unrealized (gains) on investments | (3,734) | (4,662) | |
Changes in assets and liabilities: | |||
Decrease in investments | 30,595 | 18,571 | |
(Increase) in other assets | (52,798) | (102,965) | |
Company-Sponsored Investment Funds | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Unrealized (gains) on investments | (7,481) | (16,162) | |
Changes in assets and liabilities: | |||
Decrease in investments | 106,527 | (10,641) | |
Increase in other assets and liabilities of consolidated company-sponsored investment funds, net | 15,941 | 1,747 | |
Cash flows from financing activities: | |||
(Redemptions) of non-controlling interest in consolidated company-sponsored investment funds, net | $ (92,554) | $ (2,133) |
Business Description Organizati
Business Description Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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. 1 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, across global and regional universes, as well as capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities; • Actively managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; • Actively managed alternative investments, including fundamental and systematically-driven hedge funds, fund of hedge funds and direct assets (e.g., direct lending, real estate and private equity); • Portfolios with Purpose, including Sustainable, Impact and Responsible+ (Climate-Conscious and ESG leaders) equity, fixed income and multi-asset strategies that address our clients' desire to invest their capital with a dedicated ESG focus, while pursuing strong investment returns; • Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds; and • Passively managed equity and fixed income strategies, including index, ESG index and enhanced index strategies. Organization As of March 31, 2024, 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, 2024, 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 59.6 % AB Holding 39.7 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 61.0% economic interest in AB as of March 31, 2024. 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, 2023 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. See Note 17 Divestiture for further discussion. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Recently Adopted Accounting Pronouncements During the three months ended March 31, 2024, there have been no recently adopted accounting pronouncements. Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This amendment is expected to enhance the transparency and decision usefulness of income tax disclosures by requiring public business entities, on an annual basis, to disclose specific categories in the rate reconciliation, additional information for reconciling items that meet a quantitative threshold and certain information about income taxes paid. This revised guidance is effective for financial statements issued for fiscal years beginning after December 15, 2024. The revised guidance will not have a material impact on our financial condition or results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which required disclosure of incremental segment information on an annual and interim basis. This ASU was effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impacts of the new standard. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenues for the three months ended March 31, 2024 and 2023 consisted of the following: Three Months Ended March 31, 2024 2023 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 754,239 $ 692,327 Performance-based fees 30,166 36,580 Bernstein research services 96,222 100,038 Distribution revenues All-in-management fees 78,424 68,788 12b-1 fees 16,605 15,155 Other distribution fees 70,661 57,135 Other revenues Shareholder servicing fees 21,663 20,293 Other 3,820 5,691 1,071,800 996,007 Not subject to contracts with customers: Dividend and interest income, net of broker-dealer related interest expense 20,798 22,658 Investment gains 11,743 5,264 Other revenues (190) 162 32,351 28,084 Total net revenues $ 1,104,151 $ 1,024,091 |
Long-term Incentive Compensatio
Long-term Incentive Compensation Plans | 3 Months Ended |
Mar. 31, 2024 | |
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 of AB Holding Units for the three months ended March 31, 2024 and 2023 consisted of the following: Three Months Ended March 31, 2024 2023 (in millions) Total amount of AB Holding Units Purchased (1) 0.1 0.5 Total Cash Paid for AB Holding Units Purchased (1) $ 4.3 $ 18.8 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 2024. We may adopt 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, 2024 | |
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 1.0% general partnership interest and dividing the remaining 99.0% 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 1.0% general partnership interest and dividing the remaining 99.0% by the total of the diluted weighted average number of limited partnership units outstanding for each period. Three Months Ended March 31, 2024 2023 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 217,927 $ 194,151 Weighted average limited partnership units outstanding – basic 286,876 285,726 Weighted average limited partnership units outstanding – diluted 286,876 285,726 Basic net income per AB Unit $ 0.75 $ 0.67 Diluted net income per AB Unit $ 0.75 $ 0.67 |
Cash Distributions
Cash Distributions | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 | |
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 both March 31, 2024 and December 31, 2023, $0.9 billion 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, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of: March 31, December 31, (in thousands) Equity securities: Long-term incentive compensation-related $ 25,029 $ 18,882 Seed capital 148,615 128,771 Investments in limited partnership hedge funds: Long-term incentive compensation-related 11,712 21,151 Seed capital 17,523 57,624 Time deposits 6,249 6,517 Other 11,140 10,609 Total investments $ 220,268 $ 243,554 Total investments related to long-term incentive compensation obligations of $36.7 million and $40.0 million as of March 31, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, our total seed capital investments were $343.4 million and $394.2 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 related to equity securities, as defined by ASC 321-10, held as of March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 (in thousands) Net gains recognized during the period $ 11,058 $ 5,464 Less: net gains recognized during the period on equity securities sold during the period 7,389 590 Unrealized gains recognized during the period on equity securities held $ 3,669 $ 4,874 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 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, 2024: Exchange-traded futures $ 121,735 $ 47 $ 751 Currency forwards 15,991 4,674 4,566 Interest rate swaps 44,545 519 519 Credit default swaps 83,507 8,436 3,240 Total return swaps 94,800 181 2,633 Option swaps 50,109 — 150 Total derivatives $ 410,687 $ 13,857 $ 11,859 December 31, 2023: Exchange-traded futures $ 116,344 $ 1 $ 3,511 Currency forwards 34,440 4,951 5,597 Interest rate swaps 11,345 294 349 Credit default swaps 139,607 9,265 4,197 Total return swaps 95,021 6 4,391 Option swaps 50,232 1 135 Total derivatives $ 446,989 $ 14,518 $ 18,180 As of March 31, 2024 and December 31, 2023, 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, 2024 and 2023 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows: Three Months Ended March 31, 2024 2023 (in thousands) Exchange-traded futures $ (1,579) $ (4,632) Currency forwards 364 (105) Interest rate swaps 143 (63) Credit default swaps (829) (2,228) Total return swaps (3,256) (2,056) Option swaps 207 (1,410) Net (losses) on derivative instruments $ (4,950) $ (10,494) 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, 2024 and December 31, 2023, we held $7.7 million and $5.7 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. Our standardized contracts for over-the-counter derivative transactions, known as ISDA master agreements, provide for collateralization. As of March 31, 2024 and December 31, 2023, we delivered $4.0 million and $7.8 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. As of March 31, 2024 and December 31, 2023, long and short exchange-traded equity options were classified as held for sale on our condensed consolidated statement of financial condition. For further discussion, see Note 17 Divestiture . |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 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, 2024: Securities borrowed $ 14,719 $ — $ 14,719 $ (14,719) $ — $ — Derivatives $ 13,857 $ — $ 13,857 $ — $ (7,665) $ 6,192 December 31, 2023: Securities borrowed $ 23,229 $ — $ 23,229 $ (23,229) $ — $ — Derivatives $ 14,518 $ — $ 14,518 $ — $ (5,691) $ 8,827 Offsetting of liabilities as of March 31, 2024 and December 31, 2023 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, 2024: Securities loaned $ 65,860 $ — $ 65,860 $ (65,860) $ — $ — Derivatives $ 11,859 $ — $ 11,859 $ — $ (4,031) $ 7,828 December 31, 2023: Securities loaned $ 125,101 $ — $ 125,101 $ (122,369) $ — $ 2,732 Derivatives $ 18,180 $ — $ 18,180 $ — $ (7,795) $ 10,385 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, 2024 | |
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, 2024 and December 31, 2023 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2024: Money markets $ 155,596 $ — $ — $ — $ — $ 155,596 Securities segregated (U.S. Treasury Bills) — 865,253 — — — 865,253 Derivatives 47 13,810 — — — 13,857 Investments: Equity securities 167,181 6,319 114 30 — 173,644 Limited partnership hedge funds (2) — — — — 29,235 29,235 Time deposits (3) — — — — 6,249 6,249 Other investments 8,436 — — — 2,704 11,140 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total Total investments 175,617 6,319 114 30 38,188 220,268 Total assets measured at fair value $ 331,260 $ 885,382 $ 114 $ 30 $ 38,188 $ 1,254,974 Derivatives $ 751 $ 11,108 $ — $ — $ — $ 11,859 Contingent payment arrangements — — 254,108 — — 254,108 Total liabilities measured at fair value $ 751 $ 11,108 $ 254,108 $ — $ — $ 265,967 December 31, 2023: Money markets $ 146,906 $ — $ — $ — $ — $ 146,906 Securities segregated (U.S. Treasury Bills) — 867,679 — — — 867,679 Derivatives 1 14,517 — — — 14,518 Investments: Equity securities 113,833 32,104 118 1,598 — 147,653 Limited partnership hedge funds (2) — — — — 78,775 78,775 Time deposits (3) — — — — 6,517 6,517 Other investments 7,870 — — — 2,739 10,609 Total investments 121,703 32,104 118 1,598 88,031 243,554 Total assets measured at fair value $ 268,610 $ 914,300 $ 118 $ 1,598 $ 88,031 $ 1,272,657 Derivatives $ 3,511 $ 14,669 $ — $ — $ — $ 18,180 Contingent payment arrangements — — 252,690 — — 252,690 Total liabilities measured at fair value $ 3,511 $ 14,669 $ 252,690 $ — $ — $ 270,870 (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 ($8.4 million and $7.9 million as of March 31, 2024 and December 31, 2023, 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, 2024 and December 31, 2023) and (ii) broker dealer exchange memberships that are not measured at fair value in accordance with GAAP ($2.4 million as of both March 31, 2024 and December 31, 2023). 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, 2024 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, 2024 2023 (in thousands) Balance as of beginning of period $ 118 $ 129 Purchases — — Sales — — Realized gains (losses), net — — Unrealized (losses) gains, net (4) 41 Balance as of end of period $ 114 $ 170 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, 2024 2023 (in thousands) Balance as of beginning of period $ 252,690 $ 247,309 Accretion 2,558 2,443 Payments (1,140) (792) Held for sale reclassification — (775) Balance as of end of period $ 254,108 $ 248,185 As of March 31, 2024, the expected revenue growth rates ranged from 2.0% to 29.3%, with a weighted average of 7.9%, 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, 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 a range of revenue growth rates. The discount rates ranged from 1.9% to 10.4%, with a weighted average of 4.6%, 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, 2024 | |
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. As a result of these types of factors, we are unable, at this time, to estimate the losses that are reasonably possible to be incurred or ranges of such losses with respect to our significant litigation matters. 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 (the "Court") against AB, current and former members of the Compensation and Workplace Practices Committee of the Board, 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. On March 25, 2024, the Court granted AB's motion to dismiss the Complaint in its entirety. Plaintiffs were given 30 days to file a motion for leave to amend their Complaint or appeal the Court's decision. To date, we have not received notice of any subsequent Court filings made by the Plaintiffs. While the ultimate outcome of this matter is currently not determinable, 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. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have initial lease terms of one year to 20 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. Leases included in the condensed consolidated statement of financial condition as of March 31, 2024 and December 31, 2023 were as follows: Classification March 31, 2024 December 31, 2023 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 495,166 $ 312,588 Operating lease liabilities Lease liabilities 560,218 357,623 Finance Leases Property and equipment, gross Right-of-use assets 18,969 18,975 Amortization of right-of-use assets Right-of-use assets (8,847) (7,797) Property and equipment, net 10,122 11,178 Finance lease liabilities Lease liabilities 9,945 11,394 The components of lease expense included in the condensed consolidated statement of income as of March 31, 2024 and March 31, 2023 were as follows: Three Months Ended March 31, Classification 2024 2023 (in thousands) Operating lease cost General and administrative $ 27,936 $ 23,164 Financing lease cost: Amortization of right-of-use assets General and administrative 1,052 1,076 Interest on lease liabilities Interest expense 84 65 Total finance lease cost 1,136 1,141 Variable lease cost (1) General and administrative 9,610 8,867 Sublease income General and administrative (7,723) (8,260) Net lease cost $ 30,959 $ 24,912 (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) 2024 (excluding the three months ended March 31, 2024) $ 79,030 $ 2,884 $ 81,914 2025 61,398 3,984 65,382 2026 58,966 2,553 61,519 2027 56,376 881 57,257 2028 50,227 137 50,364 Thereafter 458,710 — 458,710 Total lease payments 764,707 10,439 775,146 Less interest (204,489) (494) Present value of lease liabilities $ 560,218 $ 9,945 We have signed a lease that commenced during the first quarter of 2024, relating to approximately 166,000 square feet of space in New York City. Lease term and discount rate: Weighted average remaining lease term (years): Operating leases 12.74 Finance leases 2.80 Weighted average discount rate: Operating leases 4.2 % Finance leases 3.3 % Supplemental non-cash activity related to leases was as follows: Three Months Ended March 31, 2024 2023 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 204,729 3,390 Finance leases — 585 (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 initial lease terms of one year to 20 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. Leases included in the condensed consolidated statement of financial condition as of March 31, 2024 and December 31, 2023 were as follows: Classification March 31, 2024 December 31, 2023 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 495,166 $ 312,588 Operating lease liabilities Lease liabilities 560,218 357,623 Finance Leases Property and equipment, gross Right-of-use assets 18,969 18,975 Amortization of right-of-use assets Right-of-use assets (8,847) (7,797) Property and equipment, net 10,122 11,178 Finance lease liabilities Lease liabilities 9,945 11,394 The components of lease expense included in the condensed consolidated statement of income as of March 31, 2024 and March 31, 2023 were as follows: Three Months Ended March 31, Classification 2024 2023 (in thousands) Operating lease cost General and administrative $ 27,936 $ 23,164 Financing lease cost: Amortization of right-of-use assets General and administrative 1,052 1,076 Interest on lease liabilities Interest expense 84 65 Total finance lease cost 1,136 1,141 Variable lease cost (1) General and administrative 9,610 8,867 Sublease income General and administrative (7,723) (8,260) Net lease cost $ 30,959 $ 24,912 (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) 2024 (excluding the three months ended March 31, 2024) $ 79,030 $ 2,884 $ 81,914 2025 61,398 3,984 65,382 2026 58,966 2,553 61,519 2027 56,376 881 57,257 2028 50,227 137 50,364 Thereafter 458,710 — 458,710 Total lease payments 764,707 10,439 775,146 Less interest (204,489) (494) Present value of lease liabilities $ 560,218 $ 9,945 We have signed a lease that commenced during the first quarter of 2024, relating to approximately 166,000 square feet of space in New York City. Lease term and discount rate: Weighted average remaining lease term (years): Operating leases 12.74 Finance leases 2.80 Weighted average discount rate: Operating leases 4.2 % Finance leases 3.3 % Supplemental non-cash activity related to leases was as follows: Three Months Ended March 31, 2024 2023 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 204,729 3,390 Finance leases — 585 (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, 2024 | |
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, 2024 December 31, 2023 (in thousands) VIEs VOEs Total VIEs VOEs Total Cash and cash equivalents $ 7,425 $ 111 $ 7,536 $ 7,572 $ 167 $ 7,739 Investments 171,088 127,040 298,128 286,619 110,555 397,174 Other assets 9,251 1,702 10,953 15,010 10,289 25,299 Total assets $ 187,764 $ 128,853 $ 316,617 $ 309,201 $ 121,011 $ 430,212 Liabilities $ 10,002 $ 4,130 $ 14,132 $ 9,699 $ 2,838 $ 12,537 Redeemable non-controlling interest 103,743 21,151 124,894 202,882 6,538 209,420 Partners' capital attributable to AB Unitholders 74,019 103,572 177,591 96,620 111,635 208,255 Total liabilities, redeemable non-controlling interest and partners' capital $ 187,764 $ 128,853 $ 316,617 $ 309,201 $ 121,011 $ 430,212 During the three-month period ended March 31, 2024, we deconsolidated two funds in which we had a seed investment of approximately $18.5 million as of December 31, 2023, due to no longer having a controlling financial interest. Changes in the redeemable non-controlling interest balance during the three-month period ended March 31, 2024 are as follows (in thousands): Redeemable non-controlling interest as of December 31, 2023 $ 209,420 Deconsolidated funds (107,153) Changes in third-party seed investments in consolidated funds 22,627 Redeemable non-controlling interest as of March 31, 2024 $ 124,894 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, 2024 and December 31, 2023 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2024: Investments - VIEs $ 46,870 $ 124,218 $ — $ 171,088 Investments - VOEs 16,540 110,500 — 127,040 Derivatives - VIEs 250 5,448 — 5,698 Total assets measured at fair value $ 63,660 $ 240,166 $ — $ 303,826 Derivatives - VIEs 88 5,278 — 5,366 Total liabilities measured at fair value $ 88 $ 5,278 $ — $ 5,366 December 31, 2023: Investments - VIEs $ 49,455 $ 237,164 $ — $ 286,619 Investments - VOEs 9,036 101,519 — 110,555 Derivatives - VIEs 2,139 2,763 — 4,902 Derivatives - VOEs — 8,775 — 8,775 Total assets measured at fair value $ 60,630 $ 350,221 $ — $ 410,851 Derivatives - VIEs $ 944 $ 1,587 $ — $ 2,531 Total liabilities measured at fair value $ 944 $ 1,587 $ — $ 2,531 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, 2024 2023 (in thousands) Balance as of beginning of period $ — $ — Deconsolidated funds — — Transfers — — Purchases — — Balance as of end of period $ — $ — 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, 2024 and December 31, 2023, the VIEs held $0.3 million and $2.4 million (net), respectively, of futures, forwards and swaps within their portfolios. For the three months ended March 31, 2024 and March 31, 2023, we recognized $0.5 million of losses and $1.7 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, 2024 and December 31, 2023, the VIEs held $0.7 million and $1.4 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, 2024 and December 31, 2023, the VIEs delivered $1.7 million and $1.4 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, 2024 and December 31, 2023, the VOEs held zero and $8.8 million futures, forwards, options or swaps within their portfolios. For the three months ended March 31, 2024 and March 31, 2023, we recognized no gains or losses on these derivatives. These gains and losses are recognized in investment gains (losses) in the condensed statements of income. As of March 31, 2024, the VOEs held no cash collateral payable to trade counterparties. As of March 31, 2024, 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, 2024 and December 31, 2023 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, 2024: Derivatives - VIEs $ 5,698 $ — $ 5,698 $ — $ (725) $ 4,973 December 31, 2023: Derivatives - VIEs $ 4,902 $ — $ 4,902 $ — $ (1,415) $ 3,487 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2024 and December 31, 2023 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, 2024: Derivatives - VIEs $ 5,366 $ — $ 5,366 $ — $ (1,679) $ 3,687 December 31, 2023: Derivatives - VIEs $ 2,531 $ — $ 2,531 $ — $ (1,408) $ 1,123 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, 2024, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $65.5 billion, and our maximum risk of loss is our investment of $22.2 million in these VIEs and our advisory fee receivables from these VIEs is $115.0 million. As of December 31, 2023, the net assets of company-sponsored investment products that were non-consolidated VIEs was approximately $54.6 billion; our maximum risk of loss was our investment of $10.3 million in these VIEs and our advisory fees receivable from these VIEs was $114.5 million. |
Units Outstanding
Units Outstanding | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Units Outstanding | Units Outstanding Changes in AB Units outstanding during the three-month period ended March 31, 2024 were as follows: Outstanding as of December 31, 2023 286,609,212 Units issued 743,098 Units retired (1) (29,785) Outstanding as of March 31, 2024 287,322,525 (1) During the three months ended March 31, 2024, we purchased 14,200 AB Units in private transactions and retired them. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
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 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, 2024, 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: a term Secured Overnight Financial Rate; a Prime rate; or the Federal Funds rate. As of March 31, 2024 and December 31, 2023, we had no amounts outstanding under the Credit Facility. Furthermore, during the first three months of 2024 and the full year 2023, 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, 2024, 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, 2024 and December 31, 2023, AB had $900.0 million outstanding under the EQH Facility, with an interest rate of approximately 5.3%. Average daily borrowings on the EQH Facility for the first three months of 2024 and the full year 2023 were $771.4 million and $743.1 million, respectively, with weighted average interest rates of approximately 5.3% and 4.9%, 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, 2024, we were in compliance with these covenants. As of March 31, 2024 and December 31, 2023 we had no amounts outstanding on the EQH Uncommitted Facility. During the first three months of 2024, we did not draw upon the EQH Uncommitted Facility. Average daily borrowing for the full year 2023 were $3.6 million with a weighted average interest rate of approximately 4.6%. Commercial Paper As of March 31, 2024 we had no commercial paper outstanding. As of December 31, 2023, we had $254.3 million of commercial paper outstanding with an interest rate of 5.4%. 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 2024 and full year 2023 were $455.0 million and $267.6 million, respectively, with weighted average interest rates of approximately 5.5% and 5.2%, respectively. SCB Lines of Credit SCB LLC 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, 2024 and December 31, 2023, SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings during the first three months of 2024 and full year 2023 were $0.5 million and $1.1 million, respectively, with weighted average interest rates of approximately 8.5% and 7.8%, respectively. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestiture On November 22, 2022, AB and Societe Generale (EURONEXT: GLE, “SocGen”), a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses (the “Initial Plan”). In the Initial Plan, AB would own a 49% interest in the joint venture and SocGen would own a 51% interest in the global joint venture, with an option to reach 100% ownership after five years. During the fourth quarter of 2023, AB and SocGen negotiated a revised plan (the “Revised Plan”) under which SocGen would own a majority of the joint venture outside of North America and AB would own a majority of the joint venture within North America (the “NA JV”, and together the “JVs”). Subsequently, on April 1, 2024, the transaction closed. As a result of the greater value of the business AB contributed to the JVs, SocGen paid AB $304.0 million in cash to equalize the value of the contributions by AB and SocGen to the JVs. The cash payment of $304.0 million included consideration for an option, exercisable by AB during the next five years, that would result in SocGen having a 51% ownership of the NA JV and bringing the transaction ownership terms back in line with the Initial Plan. AB's option may only be exercised upon receipt of appropriate regulatory approvals. Under the terms of the transaction and assuming AB exercises its option as noted above, SocGen would increase its ownership to a majority interest of the NA JV, without further consideration payable. AB has an additional option to sell its ownership interests in the JVs to SocGen after five years, at the fair market value of AB’s interests in the JVs, also assuming receipt of appropriate regulatory approvals. The ultimate objective of SocGen and AB is for SocGen to eventually own 100% of the JVs after five years. The $304.0 million cash payment was received on March 27, 2024 in advance of closing, due to certain banking holidays in the U.S. and internationally and was used to pay down debt under AB’s existing credit facilities. AB recorded a liability of $304.0 million in accounts payable and accrued expenses on its condensed consolidated statement of financial condition as of March 31, 2024. AB will deconsolidate the BRS business and retain the Bernstein Private Wealth Management business within its existing U.S. broker dealer Sanford C. Bernstein & Co., LLC. The structure of the Board of Directors of the NA JV, which includes two independent directors, precludes AB’s control of the Board thereby permitting deconsolidation of the BRS business. Going forward, AB will maintain an equity method investment in the JVs accounted for under ASC 323 Investments – Equity Method and Joint Ventures. The assets and liabilities of AB's research services business (“the disposal group”) continue to be classified as held for sale on the condensed consolidated statement of financial condition and recorded at fair value, less cost to sell as of March 31, 2024. As a result of classifying these assets as held for sale, we recognized a cumulative non-cash valuation adjustment of $6.0 million as of March 31, 2024 and $6.6 million as of December 31, 2023, respectively, to recognize the net carrying value at lower of cost or fair value, less estimated costs to sell. Cumulative costs to sell, which have been paid as of March 31, 2024, approximate $7.2 million. No costs to sell were paid during the three months ended March 31, 2024. 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, 2024 and December 31, 2023: (in thousands) March 31, 2024 December 31, 2023 Cash and cash equivalents $ 319,187 $ 153,047 Receivables, net: Brokers and dealers 55,394 32,669 Brokerage clients 13,256 74,351 Other fees 22,443 15,326 Investments 13,061 17,029 Furniture and equipment, net 5,517 5,807 Other assets 154,465 104,228 Right-of-use assets 4,422 5,032 Intangible assets 3,850 4,061 Goodwill 159,826 159,826 Valuation adjustment (allowance) on disposal group (5,950) (6,600) Total assets held for sale $ 745,471 $ 564,776 Payables: Brokers and dealers $ 38,012 $ 39,359 Brokerage clients 19,790 16,885 Other liabilities 147,911 67,938 Accrued compensation and benefits 33,336 29,160 Total liabilities held for sale $ 239,049 $ 153,342 As of March 31, 2024 and December 31, 2023, cash and cash equivalents classified as held for sale included in the condensed consolidated statement of cash flows was $319.2 million and $153.0 million, respectively. We have determined that the exit from the sell-side research business does not represent a strategic shift that has had, or is likely to have a major effect on our consolidated results of operations. Accordingly, we have not classified the disposal group as discontinued operations. The results of operations of the disposal group up to the respective dates of sale will be included in our consolidated results of operations for all periods presented. The lower of amortized cost or fair value adjustment upon transferring these assets to held for sale was not material. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 217,927 | $ 194,151 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business Description Organiza_2
Business Description Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the date that these financial statements were filed with the SEC. See Note 17 Divestiture for further discussion. |
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements During the three months ended March 31, 2024, there have been no recently adopted accounting pronouncements. Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This amendment is expected to enhance the transparency and decision usefulness of income tax disclosures by requiring public business entities, on an annual basis, to disclose specific categories in the rate reconciliation, additional information for reconciling items that meet a quantitative threshold and certain information about income taxes paid. This revised guidance is effective for financial statements issued for fiscal years beginning after December 15, 2024. The revised guidance will not have a material impact on our financial condition or results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which required disclosure of incremental segment information on an annual and interim basis. This ASU was effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impacts of the new standard. |
Business Description Organiza_3
Business Description Organization and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Ownership Interest, Including Limited Partners | As of March 31, 2024, 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 59.6 % AB Holding 39.7 Unaffiliated holders 0.7 100.0 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues | Revenues for the three months ended March 31, 2024 and 2023 consisted of the following: Three Months Ended March 31, 2024 2023 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 754,239 $ 692,327 Performance-based fees 30,166 36,580 Bernstein research services 96,222 100,038 Distribution revenues All-in-management fees 78,424 68,788 12b-1 fees 16,605 15,155 Other distribution fees 70,661 57,135 Other revenues Shareholder servicing fees 21,663 20,293 Other 3,820 5,691 1,071,800 996,007 Not subject to contracts with customers: Dividend and interest income, net of broker-dealer related interest expense 20,798 22,658 Investment gains 11,743 5,264 Other revenues (190) 162 32,351 28,084 Total net revenues $ 1,104,151 $ 1,024,091 |
Long-term Incentive Compensat_2
Long-term Incentive Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | Repurchases of AB Holding Units for the three months ended March 31, 2024 and 2023 consisted of the following: Three Months Ended March 31, 2024 2023 (in millions) Total amount of AB Holding Units Purchased (1) 0.1 0.5 Total Cash Paid for AB Holding Units Purchased (1) $ 4.3 $ 18.8 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, 2024 | |
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 1.0% general partnership interest and dividing the remaining 99.0% 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 1.0% general partnership interest and dividing the remaining 99.0% by the total of the diluted weighted average number of limited partnership units outstanding for each period. Three Months Ended March 31, 2024 2023 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 217,927 $ 194,151 Weighted average limited partnership units outstanding – basic 286,876 285,726 Weighted average limited partnership units outstanding – diluted 286,876 285,726 Basic net income per AB Unit $ 0.75 $ 0.67 Diluted net income per AB Unit $ 0.75 $ 0.67 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 25,029 $ 18,882 Seed capital 148,615 128,771 Investments in limited partnership hedge funds: Long-term incentive compensation-related 11,712 21,151 Seed capital 17,523 57,624 Time deposits 6,249 6,517 Other 11,140 10,609 Total investments $ 220,268 $ 243,554 |
Summary of the Cost and Fair Value of Available-For-Sale and Trading Investments | The portion of unrealized gains related to equity securities, as defined by ASC 321-10, held as of March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 (in thousands) Net gains recognized during the period $ 11,058 $ 5,464 Less: net gains recognized during the period on equity securities sold during the period 7,389 590 Unrealized gains recognized during the period on equity securities held $ 3,669 $ 4,874 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Value and Fair Value of Derivative Instruments | The notional value and fair value as of March 31, 2024 and December 31, 2023 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, 2024: Exchange-traded futures $ 121,735 $ 47 $ 751 Currency forwards 15,991 4,674 4,566 Interest rate swaps 44,545 519 519 Credit default swaps 83,507 8,436 3,240 Total return swaps 94,800 181 2,633 Option swaps 50,109 — 150 Total derivatives $ 410,687 $ 13,857 $ 11,859 December 31, 2023: Exchange-traded futures $ 116,344 $ 1 $ 3,511 Currency forwards 34,440 4,951 5,597 Interest rate swaps 11,345 294 349 Credit default swaps 139,607 9,265 4,197 Total return swaps 95,021 6 4,391 Option swaps 50,232 1 135 Total derivatives $ 446,989 $ 14,518 $ 18,180 |
Schedule of Gains and Losses for Derivative Instruments Recognized in Investment Gains (Losses) | The gains and losses for derivative instruments (excluding our options desk trading activities discussed below ) for the three months ended March 31, 2024 and 2023 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows: Three Months Ended March 31, 2024 2023 (in thousands) Exchange-traded futures $ (1,579) $ (4,632) Currency forwards 364 (105) Interest rate swaps 143 (63) Credit default swaps (829) (2,228) Total return swaps (3,256) (2,056) Option swaps 207 (1,410) Net (losses) on derivative instruments $ (4,950) $ (10,494) |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Offsetting [Abstract] | |
Schedule of Offsetting of Financial Assets | Offsetting of assets as of March 31, 2024 and December 31, 2023 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, 2024: Securities borrowed $ 14,719 $ — $ 14,719 $ (14,719) $ — $ — Derivatives $ 13,857 $ — $ 13,857 $ — $ (7,665) $ 6,192 December 31, 2023: Securities borrowed $ 23,229 $ — $ 23,229 $ (23,229) $ — $ — Derivatives $ 14,518 $ — $ 14,518 $ — $ (5,691) $ 8,827 Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2024 and December 31, 2023 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, 2024: Derivatives - VIEs $ 5,698 $ — $ 5,698 $ — $ (725) $ 4,973 December 31, 2023: Derivatives - VIEs $ 4,902 $ — $ 4,902 $ — $ (1,415) $ 3,487 |
Schedule of Offsetting of Financial Liabilities | Offsetting of liabilities as of March 31, 2024 and December 31, 2023 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, 2024: Securities loaned $ 65,860 $ — $ 65,860 $ (65,860) $ — $ — Derivatives $ 11,859 $ — $ 11,859 $ — $ (4,031) $ 7,828 December 31, 2023: Securities loaned $ 125,101 $ — $ 125,101 $ (122,369) $ — $ 2,732 Derivatives $ 18,180 $ — $ 18,180 $ — $ (7,795) $ 10,385 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2024 and December 31, 2023 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, 2024: Derivatives - VIEs $ 5,366 $ — $ 5,366 $ — $ (1,679) $ 3,687 December 31, 2023: Derivatives - VIEs $ 2,531 $ — $ 2,531 $ — $ (1,408) $ 1,123 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2024: Money markets $ 155,596 $ — $ — $ — $ — $ 155,596 Securities segregated (U.S. Treasury Bills) — 865,253 — — — 865,253 Derivatives 47 13,810 — — — 13,857 Investments: Equity securities 167,181 6,319 114 30 — 173,644 Limited partnership hedge funds (2) — — — — 29,235 29,235 Time deposits (3) — — — — 6,249 6,249 Other investments 8,436 — — — 2,704 11,140 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total Total investments 175,617 6,319 114 30 38,188 220,268 Total assets measured at fair value $ 331,260 $ 885,382 $ 114 $ 30 $ 38,188 $ 1,254,974 Derivatives $ 751 $ 11,108 $ — $ — $ — $ 11,859 Contingent payment arrangements — — 254,108 — — 254,108 Total liabilities measured at fair value $ 751 $ 11,108 $ 254,108 $ — $ — $ 265,967 December 31, 2023: Money markets $ 146,906 $ — $ — $ — $ — $ 146,906 Securities segregated (U.S. Treasury Bills) — 867,679 — — — 867,679 Derivatives 1 14,517 — — — 14,518 Investments: Equity securities 113,833 32,104 118 1,598 — 147,653 Limited partnership hedge funds (2) — — — — 78,775 78,775 Time deposits (3) — — — — 6,517 6,517 Other investments 7,870 — — — 2,739 10,609 Total investments 121,703 32,104 118 1,598 88,031 243,554 Total assets measured at fair value $ 268,610 $ 914,300 $ 118 $ 1,598 $ 88,031 $ 1,272,657 Derivatives $ 3,511 $ 14,669 $ — $ — $ — $ 18,180 Contingent payment arrangements — — 252,690 — — 252,690 Total liabilities measured at fair value $ 3,511 $ 14,669 $ 252,690 $ — $ — $ 270,870 (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, 2024 and December 31, 2023 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2024: Investments - VIEs $ 46,870 $ 124,218 $ — $ 171,088 Investments - VOEs 16,540 110,500 — 127,040 Derivatives - VIEs 250 5,448 — 5,698 Total assets measured at fair value $ 63,660 $ 240,166 $ — $ 303,826 Derivatives - VIEs 88 5,278 — 5,366 Total liabilities measured at fair value $ 88 $ 5,278 $ — $ 5,366 December 31, 2023: Investments - VIEs $ 49,455 $ 237,164 $ — $ 286,619 Investments - VOEs 9,036 101,519 — 110,555 Derivatives - VIEs 2,139 2,763 — 4,902 Derivatives - VOEs — 8,775 — 8,775 Total assets measured at fair value $ 60,630 $ 350,221 $ — $ 410,851 Derivatives - VIEs $ 944 $ 1,587 $ — $ 2,531 Total liabilities measured at fair value $ 944 $ 1,587 $ — $ 2,531 |
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, 2024 2023 (in thousands) Balance as of beginning of period $ 118 $ 129 Purchases — — Sales — — Realized gains (losses), net — — Unrealized (losses) gains, net (4) 41 Balance as of end of period $ 114 $ 170 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, 2024 2023 (in thousands) Balance as of beginning of period $ — $ — Deconsolidated funds — — Transfers — — Purchases — — Balance as of end of period $ — $ — |
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, 2024 2023 (in thousands) Balance as of beginning of period $ 252,690 $ 247,309 Accretion 2,558 2,443 Payments (1,140) (792) Held for sale reclassification — (775) Balance as of end of period $ 254,108 $ 248,185 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Leases | Leases included in the condensed consolidated statement of financial condition as of March 31, 2024 and December 31, 2023 were as follows: Classification March 31, 2024 December 31, 2023 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 495,166 $ 312,588 Operating lease liabilities Lease liabilities 560,218 357,623 Finance Leases Property and equipment, gross Right-of-use assets 18,969 18,975 Amortization of right-of-use assets Right-of-use assets (8,847) (7,797) Property and equipment, net 10,122 11,178 Finance lease liabilities Lease liabilities 9,945 11,394 |
Schedule of 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, 2024 and March 31, 2023 were as follows: Three Months Ended March 31, Classification 2024 2023 (in thousands) Operating lease cost General and administrative $ 27,936 $ 23,164 Financing lease cost: Amortization of right-of-use assets General and administrative 1,052 1,076 Interest on lease liabilities Interest expense 84 65 Total finance lease cost 1,136 1,141 Variable lease cost (1) General and administrative 9,610 8,867 Sublease income General and administrative (7,723) (8,260) Net lease cost $ 30,959 $ 24,912 (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 12.74 Finance leases 2.80 Weighted average discount rate: Operating leases 4.2 % Finance leases 3.3 % Supplemental non-cash activity related to leases was as follows: Three Months Ended March 31, 2024 2023 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 204,729 3,390 Finance leases — 585 (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) 2024 (excluding the three months ended March 31, 2024) $ 79,030 $ 2,884 $ 81,914 2025 61,398 3,984 65,382 2026 58,966 2,553 61,519 2027 56,376 881 57,257 2028 50,227 137 50,364 Thereafter 458,710 — 458,710 Total lease payments 764,707 10,439 775,146 Less interest (204,489) (494) Present value of lease liabilities $ 560,218 $ 9,945 |
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) 2024 (excluding the three months ended March 31, 2024) $ 79,030 $ 2,884 $ 81,914 2025 61,398 3,984 65,382 2026 58,966 2,553 61,519 2027 56,376 881 57,257 2028 50,227 137 50,364 Thereafter 458,710 — 458,710 Total lease payments 764,707 10,439 775,146 Less interest (204,489) (494) Present value of lease liabilities $ 560,218 $ 9,945 |
Consolidated Company-Sponsore_2
Consolidated Company-Sponsored Investment Funds (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 (in thousands) VIEs VOEs Total VIEs VOEs Total Cash and cash equivalents $ 7,425 $ 111 $ 7,536 $ 7,572 $ 167 $ 7,739 Investments 171,088 127,040 298,128 286,619 110,555 397,174 Other assets 9,251 1,702 10,953 15,010 10,289 25,299 Total assets $ 187,764 $ 128,853 $ 316,617 $ 309,201 $ 121,011 $ 430,212 Liabilities $ 10,002 $ 4,130 $ 14,132 $ 9,699 $ 2,838 $ 12,537 Redeemable non-controlling interest 103,743 21,151 124,894 202,882 6,538 209,420 Partners' capital attributable to AB Unitholders 74,019 103,572 177,591 96,620 111,635 208,255 Total liabilities, redeemable non-controlling interest and partners' capital $ 187,764 $ 128,853 $ 316,617 $ 309,201 $ 121,011 $ 430,212 |
Schedule of Redeemable Noncontrolling Interest | Changes in the redeemable non-controlling interest balance during the three-month period ended March 31, 2024 are as follows (in thousands): Redeemable non-controlling interest as of December 31, 2023 $ 209,420 Deconsolidated funds (107,153) Changes in third-party seed investments in consolidated funds 22,627 Redeemable non-controlling interest as of March 31, 2024 $ 124,894 |
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, 2024 and December 31, 2023 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total March 31, 2024: Money markets $ 155,596 $ — $ — $ — $ — $ 155,596 Securities segregated (U.S. Treasury Bills) — 865,253 — — — 865,253 Derivatives 47 13,810 — — — 13,857 Investments: Equity securities 167,181 6,319 114 30 — 173,644 Limited partnership hedge funds (2) — — — — 29,235 29,235 Time deposits (3) — — — — 6,249 6,249 Other investments 8,436 — — — 2,704 11,140 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total Total investments 175,617 6,319 114 30 38,188 220,268 Total assets measured at fair value $ 331,260 $ 885,382 $ 114 $ 30 $ 38,188 $ 1,254,974 Derivatives $ 751 $ 11,108 $ — $ — $ — $ 11,859 Contingent payment arrangements — — 254,108 — — 254,108 Total liabilities measured at fair value $ 751 $ 11,108 $ 254,108 $ — $ — $ 265,967 December 31, 2023: Money markets $ 146,906 $ — $ — $ — $ — $ 146,906 Securities segregated (U.S. Treasury Bills) — 867,679 — — — 867,679 Derivatives 1 14,517 — — — 14,518 Investments: Equity securities 113,833 32,104 118 1,598 — 147,653 Limited partnership hedge funds (2) — — — — 78,775 78,775 Time deposits (3) — — — — 6,517 6,517 Other investments 7,870 — — — 2,739 10,609 Total investments 121,703 32,104 118 1,598 88,031 243,554 Total assets measured at fair value $ 268,610 $ 914,300 $ 118 $ 1,598 $ 88,031 $ 1,272,657 Derivatives $ 3,511 $ 14,669 $ — $ — $ — $ 18,180 Contingent payment arrangements — — 252,690 — — 252,690 Total liabilities measured at fair value $ 3,511 $ 14,669 $ 252,690 $ — $ — $ 270,870 (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, 2024 and December 31, 2023 was as follows (in thousands): Level 1 Level 2 Level 3 Total March 31, 2024: Investments - VIEs $ 46,870 $ 124,218 $ — $ 171,088 Investments - VOEs 16,540 110,500 — 127,040 Derivatives - VIEs 250 5,448 — 5,698 Total assets measured at fair value $ 63,660 $ 240,166 $ — $ 303,826 Derivatives - VIEs 88 5,278 — 5,366 Total liabilities measured at fair value $ 88 $ 5,278 $ — $ 5,366 December 31, 2023: Investments - VIEs $ 49,455 $ 237,164 $ — $ 286,619 Investments - VOEs 9,036 101,519 — 110,555 Derivatives - VIEs 2,139 2,763 — 4,902 Derivatives - VOEs — 8,775 — 8,775 Total assets measured at fair value $ 60,630 $ 350,221 $ — $ 410,851 Derivatives - VIEs $ 944 $ 1,587 $ — $ 2,531 Total liabilities measured at fair value $ 944 $ 1,587 $ — $ 2,531 |
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, 2024 2023 (in thousands) Balance as of beginning of period $ 118 $ 129 Purchases — — Sales — — Realized gains (losses), net — — Unrealized (losses) gains, net (4) 41 Balance as of end of period $ 114 $ 170 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, 2024 2023 (in thousands) Balance as of beginning of period $ — $ — Deconsolidated funds — — Transfers — — Purchases — — Balance as of end of period $ — $ — |
Schedule of Offsetting of Derivative Assets | Offsetting of assets as of March 31, 2024 and December 31, 2023 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, 2024: Securities borrowed $ 14,719 $ — $ 14,719 $ (14,719) $ — $ — Derivatives $ 13,857 $ — $ 13,857 $ — $ (7,665) $ 6,192 December 31, 2023: Securities borrowed $ 23,229 $ — $ 23,229 $ (23,229) $ — $ — Derivatives $ 14,518 $ — $ 14,518 $ — $ (5,691) $ 8,827 Offsetting of derivative assets of consolidated company-sponsored investment funds as of March 31, 2024 and December 31, 2023 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, 2024: Derivatives - VIEs $ 5,698 $ — $ 5,698 $ — $ (725) $ 4,973 December 31, 2023: Derivatives - VIEs $ 4,902 $ — $ 4,902 $ — $ (1,415) $ 3,487 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of liabilities as of March 31, 2024 and December 31, 2023 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, 2024: Securities loaned $ 65,860 $ — $ 65,860 $ (65,860) $ — $ — Derivatives $ 11,859 $ — $ 11,859 $ — $ (4,031) $ 7,828 December 31, 2023: Securities loaned $ 125,101 $ — $ 125,101 $ (122,369) $ — $ 2,732 Derivatives $ 18,180 $ — $ 18,180 $ — $ (7,795) $ 10,385 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of March 31, 2024 and December 31, 2023 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, 2024: Derivatives - VIEs $ 5,366 $ — $ 5,366 $ — $ (1,679) $ 3,687 December 31, 2023: Derivatives - VIEs $ 2,531 $ — $ 2,531 $ — $ (1,408) $ 1,123 |
Units Outstanding (Tables)
Units Outstanding (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Units Outstanding | Changes in AB Units outstanding during the three-month period ended March 31, 2024 were as follows: Outstanding as of December 31, 2023 286,609,212 Units issued 743,098 Units retired (1) (29,785) Outstanding as of March 31, 2024 287,322,525 (1) During the three months ended March 31, 2024, we purchased 14,200 AB Units in private transactions and retired them. |
Divestitures (Tables)
Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023: (in thousands) March 31, 2024 December 31, 2023 Cash and cash equivalents $ 319,187 $ 153,047 Receivables, net: Brokers and dealers 55,394 32,669 Brokerage clients 13,256 74,351 Other fees 22,443 15,326 Investments 13,061 17,029 Furniture and equipment, net 5,517 5,807 Other assets 154,465 104,228 Right-of-use assets 4,422 5,032 Intangible assets 3,850 4,061 Goodwill 159,826 159,826 Valuation adjustment (allowance) on disposal group (5,950) (6,600) Total assets held for sale $ 745,471 $ 564,776 Payables: Brokers and dealers $ 38,012 $ 39,359 Brokerage clients 19,790 16,885 Other liabilities 147,911 67,938 Accrued compensation and benefits 33,336 29,160 Total liabilities held for sale $ 239,049 $ 153,342 |
Business Description Organiza_4
Business Description Organization and Basis of Presentation - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
General partnership information [Abstract] | |
General Partnership number of general partnership units owned in Holding Company (in shares) | 100,000 |
AXA and its subsidiaries economic interest in Company | 61% |
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, 2024 | |
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) | 59.60% |
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) | 39.70% |
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, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | $ 1,071,800 | $ 996,007 |
Not subject to contracts with customers: | ||
Dividend and interest income, net of broker-dealer related interest expense | 20,798 | 22,658 |
Investment gains | 11,743 | 5,264 |
Other revenues | (190) | 162 |
Total revenue not from contract with customer | 32,351 | 28,084 |
Net revenues | 1,104,151 | 1,024,091 |
Base fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 754,239 | 692,327 |
Performance-based fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 30,166 | 36,580 |
Bernstein research services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 96,222 | 100,038 |
All-in-management fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 78,424 | 68,788 |
12b-1 fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 16,605 | 15,155 |
Other distribution fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 70,661 | 57,135 |
Shareholder servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | 21,663 | 20,293 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue subject to contracts with customers | $ 3,820 | $ 5,691 |
Long-term Incentive Compensat_3
Long-term Incentive Compensation Plans - Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Total amount of AB Holding Units Purchased (in shares) | 0.1 | 0.5 |
Total Cash Paid for AB Holding Units Purchased | $ 4.3 | $ 18.8 |
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 - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AB Holding Units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Units granted to employees and eligible directors (in shares) | 0.9 | 0.3 |
Net Income per Unit (Details)
Net Income per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | $ 217,927 | $ 194,151 |
Weighted average limited partnership units outstanding – basic (in shares) | 286,876,000 | 285,726,000 |
Weighted average limited partnership units outstanding – diluted (in shares) | 286,876,000 | 285,726,000 |
Basic net income per AB Unit (in dollars per share) | $ 0.75 | $ 0.67 |
Diluted net income per AB Unit (in dollars per share) | $ 0.75 | $ 0.67 |
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. 25, 2024 | Mar. 31, 2024 | |
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) | $ 0.81 |
Cash and Securities Segregate_2
Cash and Securities Segregated Under Federal Regulations and Other Requirements (Details) - USD ($) $ in Billions | Mar. 31, 2024 | Dec. 31, 2023 |
Broker-Dealer [Abstract] | ||
United states treasury bills in special reserve bank custody account for exclusive benefit of brokerage customers | $ 0.9 | $ 0.9 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 220,268 | $ 243,554 |
Time deposits | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 6,249 | 6,517 |
Other | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 11,140 | 10,609 |
Long-term incentive compensation-related | Equity securities | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 25,029 | 18,882 |
Long-term incentive compensation-related | Investments in limited partnership hedge funds | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 11,712 | 21,151 |
Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 343,400 | 394,200 |
Seed capital | Equity securities | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 148,615 | 128,771 |
Seed capital | Investments in limited partnership hedge funds | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 17,523 | $ 57,624 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Summary of Investment Holdings [Line Items] | ||
Long-term incentive compensation-related | $ 36,700 | $ 40,000 |
Investments owned | 220,268 | 243,554 |
Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 343,400 | $ 394,200 |
Investments - Unrealized Gains
Investments - Unrealized Gains Related to Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains recognized during the period | $ 11,058 | $ 5,464 |
Less: net gains recognized during the period on equity securities sold during the period | 7,389 | 590 |
Unrealized gains recognized during the period on equity securities held | $ 3,669 | $ 4,874 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Value and Fair Value of Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Notional Value | $ 410,687 | $ 446,989 |
Derivative Assets | 13,857 | 14,518 |
Derivative Liabilities | 11,859 | 18,180 |
Exchange-traded futures | ||
Derivative [Line Items] | ||
Notional Value | 121,735 | 116,344 |
Derivative Assets | 47 | 1 |
Derivative Liabilities | 751 | 3,511 |
Currency forwards | ||
Derivative [Line Items] | ||
Notional Value | 15,991 | 34,440 |
Derivative Assets | 4,674 | 4,951 |
Derivative Liabilities | 4,566 | 5,597 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Value | 44,545 | 11,345 |
Derivative Assets | 519 | 294 |
Derivative Liabilities | 519 | 349 |
Credit default swaps | ||
Derivative [Line Items] | ||
Notional Value | 83,507 | 139,607 |
Derivative Assets | 8,436 | 9,265 |
Derivative Liabilities | 3,240 | 4,197 |
Total return swaps | ||
Derivative [Line Items] | ||
Notional Value | 94,800 | 95,021 |
Derivative Assets | 181 | 6 |
Derivative Liabilities | 2,633 | 4,391 |
Option swaps | ||
Derivative [Line Items] | ||
Notional Value | 50,109 | 50,232 |
Derivative Assets | 0 | 1 |
Derivative Liabilities | $ 150 | $ 135 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Gains and Losses for Derivative Instruments Recognized in Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative [Line Items] | ||
Gains (losses) on derivative instruments | $ (4,950) | $ (10,494) |
Exchange-traded futures | ||
Derivative [Line Items] | ||
Gains (losses) on derivative instruments | (1,579) | (4,632) |
Currency forwards | ||
Derivative [Line Items] | ||
Gains (losses) on derivative instruments | 364 | (105) |
Interest rate swaps | ||
Derivative [Line Items] | ||
Gains (losses) on derivative instruments | 143 | (63) |
Credit default swaps | ||
Derivative [Line Items] | ||
Gains (losses) on derivative instruments | (829) | (2,228) |
Total return swaps | ||
Derivative [Line Items] | ||
Gains (losses) on derivative instruments | (3,256) | (2,056) |
Option swaps | ||
Derivative [Line Items] | ||
Gains (losses) on derivative instruments | $ 207 | $ (1,410) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Cash collateral payable to trade counterparties | $ 7.7 | $ 5.7 | |
Cash collateral received | 4 | $ 7.8 | |
Losses on equity options activity | $ 2 | $ 2.9 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Offsetting Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities borrowed | ||
Gross Amounts of Recognized Assets | $ 14,719 | $ 23,229 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 14,719 | 23,229 |
Financial Instruments Collateral | (14,719) | (23,229) |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Derivatives | ||
Cash Collateral Received | (7,700) | (5,700) |
Derivatives | ||
Derivatives | ||
Gross Amounts of Recognized Assets | 13,857 | 14,518 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 13,857 | 14,518 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | (7,665) | (5,691) |
Net Amount | $ 6,192 | $ 8,827 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities loaned | ||
Gross Amounts of Recognized Liabilities | $ 65,860 | $ 125,101 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 65,860 | 125,101 |
Financial Instruments Collateral | (65,860) | (122,369) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 2,732 |
Derivatives | ||
Cash Collateral Pledged | (4,000) | (7,800) |
Derivatives | ||
Derivatives | ||
Gross Amounts of Recognized Liabilities | 11,859 | 18,180 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 11,859 | 18,180 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | (4,031) | (7,795) |
Net Amount | $ 7,828 | $ 10,385 |
Fair Value - Valuation of Finan
Fair Value - Valuation of Financial Instruments by Pricing Observability Levels (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Brokers and dealers | Brokers and dealers |
Investments: | ||
Investment, Type [Extensible Enumeration] | Limited partnership hedge funds | Limited partnership hedge funds |
Other | $ 38,188 | $ 88,031 |
Contingent consideration liability | 254,108 | 252,690 |
Time deposits | ||
Investments: | ||
Other | 6,249 | 6,517 |
Limited partnership hedge funds | ||
Investments: | ||
Other | 29,235 | 78,775 |
Other investments | ||
Investments: | ||
Other | 2,704 | 2,739 |
Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money markets | 155,596 | 146,906 |
Securities segregated (U.S. Treasury Bills) | 865,253 | 867,679 |
Derivatives | 13,857 | 14,518 |
Investments: | ||
Other | 29,235 | 78,775 |
Total investments measured at fair value and other measurements | 220,268 | 243,554 |
Total assets measured at fair value and other measurements | 1,254,974 | 1,272,657 |
Derivatives | 11,859 | 18,180 |
Contingent consideration liability | 254,108 | 252,690 |
Total liabilities measured at fair value | 265,967 | 270,870 |
Recurring | Time deposits | ||
Investments: | ||
Other | 6,249 | 6,517 |
Recurring | Equity securities | ||
Investments: | ||
Equity securities | 173,644 | 147,653 |
Recurring | Other investments | ||
Investments: | ||
Total investments measured at fair value and other measurements | 11,140 | 10,609 |
Level 1 | Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money markets | 155,596 | 146,906 |
Derivatives | 47 | 1 |
Investments: | ||
Total investments | 175,617 | 121,703 |
Total assets measured at fair value | 331,260 | 268,610 |
Derivatives | 751 | 3,511 |
Total liabilities measured at fair value | 751 | 3,511 |
Level 1 | Recurring | Equity securities | ||
Investments: | ||
Equity securities | 167,181 | 113,833 |
Level 1 | Recurring | Other investments | ||
Investments: | ||
Total investments | 8,436 | 7,870 |
Level 2 | Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Securities segregated (U.S. Treasury Bills) | 865,253 | 867,679 |
Derivatives | 13,810 | 14,517 |
Investments: | ||
Total investments | 6,319 | 32,104 |
Total assets measured at fair value | 885,382 | 914,300 |
Derivatives | 11,108 | 14,669 |
Total liabilities measured at fair value | 11,108 | 14,669 |
Level 2 | Recurring | Equity securities | ||
Investments: | ||
Equity securities | 6,319 | 32,104 |
Level 3 | Recurring | ||
Investments: | ||
Total investments | 114 | 118 |
Total assets measured at fair value | 114 | 118 |
Contingent consideration liability | 254,108 | 252,690 |
Total liabilities measured at fair value | 254,108 | 252,690 |
Level 3 | Recurring | Equity securities | ||
Investments: | ||
Equity securities | 114 | 118 |
NAV Expedient | Recurring | ||
Investments: | ||
Total investments | 30 | 1,598 |
Total assets measured at fair value | 30 | 1,598 |
NAV Expedient | Recurring | Equity securities | ||
Investments: | ||
Equity securities | $ 30 | $ 1,598 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 38,188,000 | $ 88,031,000 | |
Fair value assets level 2 to level 3 transfers amount | $ 0 | ||
Revenue growth rate | Minimum | CarVal | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.020 | 0.020 | |
Revenue growth rate | Maximum | CarVal | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.293 | 0.839 | |
Revenue growth rate | Weighted Average | CarVal | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.079 | 0.103 | |
Discount rate | Minimum | CarVal | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.019 | 0.019 | |
Discount rate | Maximum | CarVal | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.104 | 0.104 | |
Discount rate | Weighted Average | CarVal | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Acquisition-related contingent liability (as percent) | 0.046 | 0.046 | |
Other | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 2,704,000 | 2,739,000 | |
Mutual Fund | Level 1 | Other | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Total investments | 8,400,000 | 7,900,000 | |
Start-up company | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | 300,000 | 300,000 | |
Broker dealer exchange memberships | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other investments | $ 2,400,000 | $ 2,400,000 |
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, 2024 | Mar. 31, 2023 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | $ 118 | $ 129 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Realized gains (losses), net | 0 | 0 |
Unrealized (losses) gains, net | (4) | 41 |
Balance as of end of period | $ 114 | $ 170 |
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, 2024 | Mar. 31, 2023 | |
Fair Value, Liabilities Measurement Level 3 reconciliation | ||
Balance as of beginning of period | $ 252,690 | $ 247,309 |
Accretion | 2,558 | 2,443 |
Payments | (1,140) | (792) |
Held for sale reclassification | 0 | (775) |
Balance as of end of period | $ 254,108 | $ 248,185 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Dec. 14, 2022 plaintiff |
Commitments and Contingencies Disclosure [Abstract] | |
Number of participants that filed a class action complaint | 4 |
Leases - Additional Information
Leases - Additional Information (Details) ft² in Thousands | 3 Months Ended |
Mar. 31, 2024 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 |
New York City | |
Lessee, Lease, Description [Line Items] | |
Area of space leased (in square feet) | 166 |
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 | 20 years |
Leases - Schedule of Leases (De
Leases - Schedule of Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Operating lease right-of-use assets | $ 495,166 | $ 312,588 |
Operating lease liabilities | $ 560,218 | $ 357,623 |
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 | $ 18,969 | $ 18,975 |
Amortization of right-of-use assets | (8,847) | (7,797) |
Property and equipment, net | 10,122 | 11,178 |
Finance lease liabilities | $ 9,945 | $ 11,394 |
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 - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 27,936 | $ 23,164 |
Financing lease cost: | ||
Amortization of right-of-use assets | 1,052 | 1,076 |
Interest on lease liabilities | 84 | 65 |
Total finance lease cost | 1,136 | 1,141 |
Variable lease cost | 9,610 | 8,867 |
Sublease income | (7,723) | (8,260) |
Net lease cost | $ 30,959 | $ 24,912 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
2024 (excluding the three months ended March 31, 2024) | $ 79,030 | |
2025 | 61,398 | |
2026 | 58,966 | |
2027 | 56,376 | |
2028 | 50,227 | |
Thereafter | 458,710 | |
Total lease payments | 764,707 | |
Less interest | (204,489) | |
Present value of lease liabilities | 560,218 | $ 357,623 |
Financing Leases | ||
2024 (excluding the three months ended March 31, 2024) | 2,884 | |
2025 | 3,984 | |
2026 | 2,553 | |
2027 | 881 | |
2028 | 137 | |
Thereafter | 0 | |
Total lease payments | 10,439 | |
Less interest | (494) | |
Present value of lease liabilities | 9,945 | $ 11,394 |
Total | ||
2024 (excluding the three months ended March 31, 2024) | 81,914 | |
2025 | 65,382 | |
2026 | 61,519 | |
2027 | 57,257 | |
2028 | 50,364 | |
Thereafter | 458,710 | |
Total lease payments | $ 775,146 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Mar. 31, 2024 |
Weighted average remaining lease term (years): | |
Operating leases | 12 years 8 months 26 days |
Finance leases | 2 years 9 months 18 days |
Weighted average discount rate: | |
Operating leases (as percent) | 4.20% |
Finance leases (as percent) | 3.30% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 204,729 | $ 3,390 |
Finance leases | $ 0 | $ 585 |
Consolidated Company-Sponsore_3
Consolidated Company-Sponsored Investment Funds - Summary of Balance Sheet Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Total assets | $ 9,796,380 | $ 9,609,806 | |
Liabilities | 5,253,803 | 4,947,024 | |
Redeemable non-controlling interest | 124,894 | 209,420 | |
Partners' capital attributable to AB Unitholders | 4,417,683 | 4,453,362 | $ 4,443,358 |
Total liabilities, redeemable non-controlling interest and partners' capital | 9,796,380 | 9,609,806 | |
Company-Sponsored Investment Funds | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 7,536 | 7,739 | |
Investments | 298,128 | 397,174 | |
Other assets | 10,953 | 25,299 | |
Total assets | 316,617 | 430,212 | |
Liabilities | 14,132 | 12,537 | |
Redeemable non-controlling interest | 124,894 | 209,420 | |
Partners' capital attributable to AB Unitholders | 177,591 | 208,255 | |
Total liabilities, redeemable non-controlling interest and partners' capital | 316,617 | 430,212 | |
VIEs | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 7,425 | 7,572 | |
Investments | 171,088 | 286,619 | |
Other assets | 9,251 | 15,010 | |
Total assets | 187,764 | 309,201 | |
Liabilities | 10,002 | 9,699 | |
Redeemable non-controlling interest | 103,743 | 202,882 | |
Partners' capital attributable to AB Unitholders | 74,019 | 96,620 | |
Total liabilities, redeemable non-controlling interest and partners' capital | 187,764 | 309,201 | |
VOEs | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 111 | 167 | |
Investments | 127,040 | 110,555 | |
Other assets | 1,702 | 10,289 | |
Total assets | 128,853 | 121,011 | |
Liabilities | 4,130 | 2,838 | |
Redeemable non-controlling interest | 21,151 | 6,538 | |
Partners' capital attributable to AB Unitholders | 103,572 | 111,635 | |
Total liabilities, redeemable non-controlling interest and partners' capital | $ 128,853 | $ 121,011 |
Consolidated Company-Sponsore_4
Consolidated Company-Sponsored Investment Funds - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) fund | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Derivative [Line Items] | |||
Gains (losses) on derivative instruments | $ (4,950,000) | $ (10,494,000) | |
Cash collateral payable to trade counterparties | 7,700,000 | $ 5,700,000 | |
Cash collateral received | 4,000,000 | 7,800,000 | |
Maximum risk of loss in investment in VIEs | 10,300,000 | ||
Advisory fee receivables | 129,257,000 | 125,500,000 | |
VIEs | |||
Derivative [Line Items] | |||
Futures, forwards and swaps held | 300,000 | 2,400,000 | |
Gains (losses) on derivative instruments | (500,000) | 1,700,000 | |
Cash collateral payable to trade counterparties | 725,000 | 1,415,000 | |
Cash collateral received | 1,679,000 | 1,408,000 | |
VOEs | |||
Derivative [Line Items] | |||
Futures, forwards and swaps held | 0 | 8,800,000 | |
Gains (losses) on derivative instruments | 0 | $ 0 | |
Cash collateral payable to trade counterparties | 0 | ||
Cash collateral received | 0 | ||
Non-consolidated VIEs | |||
Derivative [Line Items] | |||
Net assets | 65,500,000,000 | 54,600,000,000 | |
Maximum risk of loss in investment in VIEs | 22,200,000 | ||
Advisory fee receivables | $ 115,000,000 | 114,500,000 | |
Seed capital | |||
Derivative [Line Items] | |||
Number of deconsolidated funds | fund | 2 | ||
Seed investment, deconsolidated amount | $ 18,500,000 |
Consolidated Company-Sponsore_5
Consolidated Company-Sponsored Investment Funds - Redeemable Noncontrolling Interest (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Redeemable Noncontrolling Interest [Roll Forward] | |
Redeemable non-controlling interest as of December 31, 2023 | $ 209,420 |
Deconsolidated funds | (107,153) |
Changes in third-party seed investments in consolidated funds | 22,627 |
Redeemable non-controlling interest as of March 31, 2024 | $ 124,894 |
Consolidated Company-Sponsore_6
Consolidated Company-Sponsored Investment Funds - Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - VIEs | $ 13,857 | $ 14,518 |
Derivatives | 11,859 | 18,180 |
Total liabilities measured at fair value | 265,967 | 270,870 |
Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 175,617 | 121,703 |
Derivatives - VIEs | 47 | 1 |
Total assets measured at fair value | 331,260 | 268,610 |
Derivatives | 751 | 3,511 |
Total liabilities measured at fair value | 751 | 3,511 |
Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 6,319 | 32,104 |
Derivatives - VIEs | 13,810 | 14,517 |
Total assets measured at fair value | 885,382 | 914,300 |
Derivatives | 11,108 | 14,669 |
Total liabilities measured at fair value | 11,108 | 14,669 |
Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 114 | 118 |
Total assets measured at fair value | 114 | 118 |
Total liabilities measured at fair value | 254,108 | 252,690 |
Company-Sponsored Investment Funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 303,826 | 410,851 |
Total liabilities measured at fair value | 5,366 | 2,531 |
Company-Sponsored Investment Funds | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 63,660 | 60,630 |
Total liabilities measured at fair value | 88 | 944 |
Company-Sponsored Investment Funds | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 240,166 | 350,221 |
Total liabilities measured at fair value | 5,278 | 1,587 |
Company-Sponsored Investment Funds | Level 3 | Recurring | ||
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 |
VIEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - VIEs | 5,698 | 4,902 |
Derivatives | 5,366 | 2,531 |
VIEs | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 171,088 | 286,619 |
Derivatives - VIEs | 5,698 | 4,902 |
Derivatives | 5,366 | 2,531 |
VIEs | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 46,870 | 49,455 |
Derivatives - VIEs | 250 | 2,139 |
Derivatives | 88 | 944 |
VIEs | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 124,218 | 237,164 |
Derivatives - VIEs | 5,448 | 2,763 |
Derivatives | 5,278 | 1,587 |
VIEs | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 0 | 0 |
Derivatives - VIEs | 0 | 0 |
Derivatives | 0 | 0 |
VOEs | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 127,040 | 110,555 |
Derivatives - VIEs | 8,775 | |
VOEs | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 16,540 | 9,036 |
Derivatives - VIEs | 0 | |
VOEs | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | 110,500 | 101,519 |
Derivatives - VIEs | 8,775 | |
VOEs | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments - VIEs | $ 0 | 0 |
Derivatives - VIEs | $ 0 |
Consolidated Company-Sponsore_7
Consolidated Company-Sponsored Investment Funds - Change in Carrying Value Associated with Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | $ 118 | $ 129 |
Purchases | 0 | 0 |
Balance as of end of period | 114 | 170 |
Company-Sponsored Investment Funds | ||
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | 0 | 0 |
Deconsolidated funds | 0 | 0 |
Transfers | 0 | 0 |
Purchases | 0 | 0 |
Balance as of end of period | $ 0 | $ 0 |
Consolidated Company-Sponsore_8
Consolidated Company-Sponsored Investment Funds - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives | ||
Cash Collateral Received | $ (7,700) | $ (5,700) |
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 | $ (4,000) | $ (7,800) |
VIEs | ||
Derivatives | ||
Gross Amounts of Recognized Assets | 5,698 | 4,902 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 5,698 | 4,902 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | (725) | (1,415) |
Net Amount | 4,973 | 3,487 |
Derivatives | ||
Gross Amounts of Recognized Liabilities | 5,366 | 2,531 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 5,366 | 2,531 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | (1,679) | (1,408) |
Net Amount | $ 3,687 | $ 1,123 |
Units Outstanding (Details)
Units Outstanding (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
Units Outstanding | |
Beginning balance (in shares) | 286,609,212 |
Units issued (in shares) | 743,098 |
Units retired (in shares) | (29,785) |
Ending balance (in shares) | 287,322,525 |
AB units purchased and retired in private transactions (in shares) | 14,200 |
Debt (Details)
Debt (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) lineOfCredit financialInstitution | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Short-term Debt [Line Items] | ||||
Proceeds from debt, net | $ 45,000,000 | |||
Line of Credit | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |||
Maximum incremental increase | 200,000,000 | |||
Amount outstanding | 0 | $ 0 | ||
Proceeds from debt, net | 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 | |||
Equitable Holdings, Inc. And Subsidiaries | ||||
Short-term Debt [Line Items] | ||||
Weighted average interest rates on average daily borrowings (as percent) | 4.60% | |||
Short-term debt, average outstanding amount | $ 0 | $ 3,600,000 | ||
Commercial Paper | ||||
Short-term Debt [Line Items] | ||||
Weighted average interest rates on average daily borrowings (as percent) | 5.50% | 5.20% | ||
Short-term debt, average outstanding amount | $ 455,000,000 | $ 267,600,000 | ||
Short-term debt | $ 0 | $ 254,300,000 | ||
Interest rate on commercial paper outstanding (as percent) | 5.40% | |||
Uncommited Lines of Credit | ||||
Short-term Debt [Line Items] | ||||
Weighted average interest rates (as percent) | 8.50% | 7.80% | ||
Short-term debt, average outstanding amount | $ 500,000 | $ 1,100,000 | ||
Short-term debt | 0 | 0 | ||
EQH | ||||
Short-term Debt [Line Items] | ||||
Amount outstanding | $ 900,000,000 | $ 900,000,000 | ||
Weighted average interest rates (as percent) | 5.30% | 5.30% | ||
Average daily borrowings | $ 771,400,000 | $ 743,100,000 | ||
Weighted average interest rates on average daily borrowings (as percent) | 5.30% | 4.90% | ||
EQH | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 900,000,000 | |||
EQH Uncommitted Facility | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 300,000,000 | |||
Amount outstanding | $ 0 | $ 0 |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 27, 2024 | Nov. 22, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Apr. 01, 2024 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Joint venture equalization payment | $ 303,980 | $ 0 | ||||
Accounts payable and accrued expenses | 488,951 | $ 172,163 | ||||
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 | 6,000 | |||||
Costs to sell | 7,200 | |||||
Cash and cash equivalents | 319,187 | $ 153,047 | ||||
Joint Venture | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Interest in the joint venture hold | 49% | |||||
Joint venture equalization payment | $ 304,000 | |||||
Accounts payable and accrued expenses | $ 304,000 | |||||
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% | |||||
Interest in the joint venture, with an option | 100% | 100% | ||||
Option to acquire controlling interest in joint venture, term | 5 years | 5 years | ||||
Societe Generale | Joint Venture | Subsequent Event | ||||||
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, 2024 | Dec. 31, 2023 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | $ 745,471 | $ 564,776 |
Total liabilities held for sale | 239,049 | 153,342 |
Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 319,187 | 153,047 |
Investments | 13,061 | 17,029 |
Furniture and equipment, net | 5,517 | 5,807 |
Other assets | 154,465 | 104,228 |
Right-of-use assets | 4,422 | 5,032 |
Intangible assets | 3,850 | 4,061 |
Goodwill | 159,826 | 159,826 |
Valuation adjustment (allowance) on disposal group | (5,950) | (6,600) |
Total assets held for sale | 745,471 | 564,776 |
Brokers and dealers | 38,012 | 39,359 |
Brokerage clients | 19,790 | 16,885 |
Other liabilities | 147,911 | 67,938 |
Accrued compensation and benefits | 33,336 | 29,160 |
Total liabilities held for sale | 239,049 | 153,342 |
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: | 55,394 | 32,669 |
Discontinued Operations, Held-for-sale | Brokerage clients | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net: | 13,256 | 74,351 |
Discontinued Operations, Held-for-sale | Other fees | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net: | $ 22,443 | $ 15,326 |