Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-09818 | |
Entity Registrant Name | ALLIANCEBERNSTEIN HOLDING L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3434400 | |
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 | |
Title of 12(b) Security | Units Rep. Assignments of Beneficial Ownership of LP Interests in AB Holding ("Units") | |
Trading Symbol | AB | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 4.2 | |
Entity Common Stock, Shares Outstanding | 99,271,727 | |
Entity Central Index Key | 0000825313 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
ICFR Auditor Attestation Flag | true | |
Entity Address, Address Line One | 501 Commerce Street | |
Entity Filer Category | Large Accelerated Filer | |
Auditor Firm ID | 238 | |
General Partner’s Capital | ||
Entity Common Stock, Shares Outstanding | 100,000 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Location | Nashville, Tennessee |
Auditor Name | PricewaterhouseCoopers LLP |
Statements of Financial Conditi
Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Investment in AB | $ 1,623,764 | $ 1,605,941 |
Other assets | 0 | 92 |
Total assets | 1,623,764 | 1,606,033 |
Liabilities: | ||
Other liabilities | 2,140 | 1,876 |
Total liabilities | 2,140 | 1,876 |
Commitments and contingencies (See Note 7) | ||
Partners’ capital: | ||
General Partner: 100,000 general partnership units issued and outstanding | 1,439 | 1,410 |
Limited partners: 99,171,727 and 98,222,942 limited partnership units issued and outstanding | 1,696,199 | 1,656,816 |
AB Holding Units held by AB to fund long-term incentive compensation plans | (43,309) | (20,171) |
Accumulated other comprehensive loss | (32,705) | (33,898) |
Total partners’ capital | 1,621,624 | 1,604,157 |
Total liabilities and partners’ capital | $ 1,623,764 | $ 1,606,033 |
Statements of Financial Condi_2
Statements of Financial Condition (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
General partner: units issued (in units) | 100,000 | 100,000 |
General Partner: units outstanding (in units) | 100,000 | 100,000 |
Limited partners: units issued (in units) | 99,171,727 | 99,171,727 |
Limited partners: units outstanding (in units) | 98,222,942 | 98,222,942 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Equity in net income attributable to AB Unitholders | $ 416,326 | $ 308,404 | $ 266,292 |
Income taxes | 30,483 | 29,024 | 27,729 |
Net income | $ 385,843 | $ 279,380 | $ 238,563 |
Net income per unit: | |||
Basic (in dollars per share) | $ 3.88 | $ 2.88 | $ 2.49 |
Diluted (in dollars per share) | $ 3.88 | $ 2.88 | $ 2.49 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 385,843 | $ 279,380 | $ 238,563 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, before reclassification and tax | (2,894) | 8,579 | 1,900 |
Less: reclassification adjustment for gains (losses) included in net income upon liquidation | 1,613 | (77) | 0 |
Foreign currency translation adjustments, before tax | (4,507) | 8,656 | 1,900 |
Income tax benefit (expense) | 147 | (310) | (161) |
Foreign currency translation adjustments, net of tax | (4,360) | 8,346 | 1,739 |
Changes in employee benefit related items: | |||
Amortization of prior service cost | 7 | 8 | 6 |
Recognized actuarial gain (loss) | 5,566 | (1,557) | (3,011) |
Changes in employee benefit related items | 5,573 | (1,549) | (3,005) |
Income tax (expense) benefit | (20) | (67) | 99 |
Employee benefit related items, net of tax | 5,553 | (1,616) | (2,906) |
Other comprehensive income (loss) | 1,193 | 6,730 | (1,167) |
Comprehensive income | $ 387,036 | $ 286,110 | $ 237,396 |
Statements of Changes in Partne
Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | AB Holding Units held by AB to fund long-term incentive compensation plans | Accumulated Other Comprehensive (Loss) Income | General Partner’s Capital | Limited Partners’ Capital |
Balance, beginning of year at Dec. 31, 2018 | $ (27,759) | $ (39,461) | $ 1,385 | $ 1,555,892 | |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 238,563 | 249 | 238,314 | ||
Cash distributions to Unitholders | (232) | (222,253) | |||
Retirement of AB Holding Units | (110,752) | (110,752) | |||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 146,488 | 146,488 | |||
Exercise of compensatory options to buy AB Holding Units | 11,511 | ||||
Change in AB Holding Units held by AB to fund long-term incentive compensation plans | 323 | ||||
Foreign currency translation adjustment, net of tax | 1,739 | ||||
Changes in employee benefit related items, net of tax | (2,906) | ||||
Balance, end of year at Dec. 31, 2019 | 1,552,538 | (27,436) | (40,628) | 1,402 | 1,619,200 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 279,380 | 288 | 279,092 | ||
Cash distributions to Unitholders | (280) | (270,601) | |||
Retirement of AB Holding Units | (78,388) | (78,388) | |||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 107,366 | 107,366 | |||
Exercise of compensatory options to buy AB Holding Units | 147 | ||||
Change in AB Holding Units held by AB to fund long-term incentive compensation plans | 7,265 | ||||
Foreign currency translation adjustment, net of tax | 8,346 | ||||
Changes in employee benefit related items, net of tax | (1,616) | ||||
Balance, end of year at Dec. 31, 2020 | 1,604,157 | (20,171) | (33,898) | 1,410 | 1,656,816 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 385,843 | 387 | 385,456 | ||
Cash distributions to Unitholders | (358) | (357,097) | |||
Retirement of AB Holding Units | (143,460) | (143,460) | |||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 151,082 | 151,082 | |||
Exercise of compensatory options to buy AB Holding Units | 3,402 | ||||
Change in AB Holding Units held by AB to fund long-term incentive compensation plans | (23,138) | ||||
Foreign currency translation adjustment, net of tax | (4,360) | ||||
Changes in employee benefit related items, net of tax | 5,553 | ||||
Balance, end of year at Dec. 31, 2021 | $ 1,621,624 | $ (43,309) | $ (32,705) | $ 1,439 | $ 1,696,199 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 385,843 | $ 279,380 | $ 238,563 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in net income attributable to AB Unitholders | (416,326) | (308,404) | (266,292) |
Cash distributions received from AB | 385,236 | 298,919 | 249,463 |
Changes in assets and liabilities: | |||
Decrease (increase) in other assets | 92 | (31) | (61) |
Increase in other liabilities | 264 | 150 | 1,082 |
Net cash provided by operating activities | 355,109 | 270,014 | 222,755 |
Cash flows from investing activities: | |||
Investments in AB with proceeds from exercises of compensatory options to buy AB Holding Units | (3,402) | (147) | (11,511) |
Net cash used in investing activities | (3,402) | (147) | (11,511) |
Cash flows from financing activities: | |||
Cash distributions to Unitholders | (357,455) | (270,881) | (222,485) |
Capital contributions from (to) AB | 2,346 | 867 | |
Capital contributions from (to) AB | (270) | ||
Proceeds from exercise of compensatory options to buy AB Holding Units | 3,402 | 147 | 11,511 |
Net cash used in financing activities | (351,707) | (269,867) | (211,244) |
Change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents as of beginning of the year | 0 | 0 | 0 |
Cash and cash equivalents as of end of the year | 0 | 0 | 0 |
Cash paid: | |||
Income taxes | 30,127 | 28,906 | 26,650 |
Non-cash investing activities: | |||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 151,082 | 107,366 | 146,488 |
Retirement of AB Holding Units | $ (143,460) | $ (78,388) | $ (110,752) |
Business Description and Organi
Business Description and Organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Organization | Business Description and Organization AB Holding’s principal source of income and cash flow is attributable to its investment in AB limited partnership interests. AB provides diversified investment management, research and related services globally to a broad range of clients. Its principal services include: • Institutional Services —servicing its institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as Equitable Holdings, Inc. (" EQH ") and its subsidiaries, by means of separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles. • Retail Services— servicing its retail clients, primarily by means of retail mutual funds sponsored by AB or an affiliated company, sub-advisory relationships with mutual funds sponsored by third parties, separately-managed account programs sponsored by financial intermediaries worldwide and other investment vehicles. • Private Wealth Management Services —servicing its private clients, including high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, by means of separately-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. AB also provides distribution, shareholder servicing, transfer agency services and administrative services to the mutual funds it sponsors. AB’s high-quality, in-depth research is the foundation of its business. AB’s research disciplines include economic, fundamental equity, fixed income and quantitative research. In addition, AB has expertise in multi-asset strategies, wealth management, environmental, social and corporate governance ( "ESG" ), and alternative investments. AB provides a broad range of investment services with expertise in: • Actively-managed equity strategies, with global and regional portfolios across capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities; • Actively-managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; • Alternative investments, including hedge funds, fund of funds, direct lending, real estate and private equity; • Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds; and • Some passive management, including index and enhanced index strategies. Organization As of December 31, 2021, EQH owns approximately 4.0% of the issued and outstanding units representing assignments of beneficial ownership of limited partnership interests in AB Holding (“ AB Holding Units ”). AllianceBernstein Corporation (an indirect wholly-owned subsidiary of EQH, “ General Partner ”) is the general partner of both AB Holding and AB. AllianceBernstein Corporation owns 100,000 general partnership units in AB Holding and a 1% general partnership interest in AB. As of December 31, 2021, the ownership structure of AB, expressed as a percentage of general and limited partnership interests, was as follows: EQH and its subsidiaries 63.0 % AB Holding 36.2 Unaffiliated holders 0.8 100.0 % Including both the general partnership and limited partnership interests in AB Holding and AB, EQH and its subsidiaries had an approximate 64.5% economic interest in AB as of December 31, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. AB Holding’s financial statements and notes should be read in conjunction with the consolidated financial statements and notes of AB, which are included in this Form 10-K. Investment in AB AB Holding records its investment in AB using the equity method of accounting. AB Holding’s investment is increased to reflect its proportionate share of income of AB and decreased to reflect its proportionate share of losses of AB and cash distributions made by AB to its Unitholders. In addition, AB Holding's investment is adjusted to reflect its proportionate share of certain capital transactions of AB. Cash Distributions AB Holding is required to distribute all of its Available Cash Flow, as defined in the Amended and Restated Agreement of Limited Partnership of AB Holding (“ AB Holding Partnership Agreement ”), to its Unitholders pro rata in accordance with their percentage interests in AB Holding. Available Cash Flow is defined as the cash distributions AB Holding receives from AB minus such amounts as the General Partner determines, in its sole discretion, should be retained by AB Holding for use in its business (such as the payment of taxes) or plus such amounts as the General Partner determines, in its sole discretion, should be released from previously retained cash flow. On February 11, 2022, the General Partner declared a distribution of $1.29 per unit, representing a distribution of Available Cash Flow for the three months ended December 31, 2021. Each general partnership unit in AB Holding is entitled to receive distributions equal to those received by each AB Holding Unit. The distribution is payable on March 17, 2022 to holders of record at the close of business on February 22, 2022. Total cash distributions per Unit paid to Unitholders during 2021, 2020 and 2019 were $3.58, $2.79 and $2.32, respectively. Long-term Incentive Compensation Plans AB maintains several unfunded, non-qualified long-term incentive compensation plans, under which the company grants awards of restricted AB Holding Units to its employees and members of the Board of Directors, who are not employed by AB or by any of AB’s affiliates (“ Eligible Directors ”). AB funds its restricted AB Holding Unit awards either by purchasing AB Holding Units on the open market or purchasing newly-issued AB Holding Units from AB Holding, and then keeping these AB Holding Units in a consolidated rabbi trust until delivering them or retiring them. In accordance with the AB Holding Partnership Agreement, when AB purchases newly-issued AB Holding Units from AB Holding, AB Holding is required to use the proceeds it receives from AB to purchase the equivalent number of newly-issued AB Units, thus increasing its percentage ownership interest in AB. AB Holding Units held in the consolidated rabbi trust are corporate assets in the name of the trust and are available to the general creditors of AB. Repurchases of AB Holding Units for the years ended December 31, 2021 and 2020 consisted of the following: Years Ended December 31 2021 2020 (in millions) Total amount of AB Holding Units Purchased (1) 5.6 5.4 Total Cash Paid for AB Holding Units Purchased (1) $262.3 $ 149.0 Open Market Purchases of AB Holding Units Purchased (2) 2.6 3.1 Total Cash Paid for Open Market Purchases of AB Holding Units (2) $117.9 $ 74.0 (1) Purchased on a trade date basis. (2) The remainder related to purchases of AB Holding Units from employees to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. Each quarter, AB considers whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (“ Exchange Act ”). A plan of this type allows a company to repurchase its shares at times when it otherwise might be prevented from doing so because of self-imposed trading blackout periods or because it possesses material non-public information. Each broker selected by AB has the authority to repurchase AB Holding Units on AB’s behalf in accordance with the terms and limitations specified in the plan. Repurchases are subject to regulations promulgated by the U.S. Securities and Exchange Commission (“ SEC ”) as well as certain price, market volume and timing constraints specified in the plan. We did not adopt a plan during the fourth quarter of 2021. AB may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under its incentive compensation award program and for other corporate purposes. During 2021, AB granted to employees and Eligible Directors 7.0 million restricted AB Holding Units (including 3.4 million granted in December for 2021 year-end awards). During 2020, AB granted to employees and Eligible Directors 5.7 million restricted AB Holding Units (including 5.0 million granted in December for 2020 year-end awards). AB used AB Holding Units repurchased during the periods and newly-issued AB Holding Units to fund these awards. During 2021 and 2020, AB Holding issued 0.1 million and 5,182 AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $3.4 million and $0.1 million, respectively, received from award recipients as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Units. Subsequent Events We have evaluated subsequent events through the date that these financial statements were filed with the Securities and Exchange Commission and did not identify any subsequent events that would have required disclosure in these financial statements. |
Net Income Per Unit
Net Income Per Unit | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Unit | Net Income Per Unit Basic net income per unit is derived by dividing net income by the basic weighted average number of units outstanding for each year. Diluted net income per unit is derived by adjusting net income for the assumed dilutive effect of compensatory options (“ Net income - diluted ”) and dividing by the diluted weighted average number of units outstanding for each year. Years Ended December 31 2021 2020 2019 (in thousands, except per unit amounts) Net income - basic $385,843 $ 279,380 $ 238,563 Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options 30 56 79 Net income - diluted $385,873 $ 279,436 $ 238,642 Weighted average units outstanding - basic 99,545 96,870 95,884 Dilutive effect of compensatory options 11 27 44 Weighted average units outstanding - diluted 99,556 96,897 95,928 Basic net income per unit $3.88 $ 2.88 $ 2.49 Diluted net income per unit $3.88 $ 2.88 $ 2.49 Years Ended December 31 2021 2020 2019 Anti-dilutive options excluded from diluted net income — 29,056 29,056 |
Investment in AB
Investment in AB | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in AB | Investment in AB Changes in AB Holding’s investment in AB for the years ended December 31, 2021 and 2020 are as follows: 2021 2020 (in thousands) Investment in AB as of January 1, $ 1,605,941 $ 1,554,203 Equity in net income attributable to AB Unitholders 416,326 308,404 Changes in accumulated other comprehensive income 1,193 6,730 Cash distributions received from AB (385,236) (298,919) Additional investments with proceeds from exercises of compensatory options to buy AB Holding Units 3,402 147 Capital contributions (from) AB (2,346) (867) AB Holding Units retired (143,460) (78,388) AB Holding Units issued to fund long-term incentive compensation plans 151,082 107,366 Change in AB Holding Units held by AB for long-term incentive compensation plans (23,138) 7,265 Investment in AB as of December 31, $ 1,623,764 $ 1,605,941 |
Units Outstanding
Units Outstanding | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Units Outstanding | Units Outstanding Changes in AB Holding Units outstanding for the years ended December 31, 2021 and 2020 are as follows: 2021 2020 Outstanding as of January 1, 98,322,942 98,192,098 Options exercised 143,211 5,182 Units issued 3,917,437 3,363,132 Units retired (3,111,863) (3,237,470) Outstanding as of December 31, 99,271,727 98,322,942 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes AB Holding is a publicly-traded partnership (" PTP ") for federal tax purposes and, accordingly, is not subject to federal or state corporate income taxes. However, AB Holding is subject to the 4.0% New York City unincorporated business tax (“ UBT ”), net of credits for UBT paid by AB, and to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. AB Holding’s partnership gross income is derived from its interest in AB. The principal reasons for the difference between AB Holding’s effective tax rates and the UBT statutory tax rate of 4.0% are as follows: Years Ended December 31 2021 2020 2019 (in thousands) UBT statutory rate $16,653 4.0 % $ 12,336 4.0 % $ 10,652 4.0 % Federal tax on partnership gross business income 29,643 7.1 28,522 9.2 27,197 10.2 State income taxes 840 0.2 502 0.2 532 0.2 Credit for UBT paid by AB (16,653) (4.0) (12,336) (4.0) (10,652) (4.0) Income tax expense and effective tax rate $30,483 7.3 $ 29,024 9.4 $ 27,729 10.4 AB Holding’s federal income tax is computed by multiplying certain AB qualifying revenues (primarily U.S. investment advisory fees, research payments and brokerage commissions) by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate. AB Holding Units in AB’s consolidated rabbi trust are not considered outstanding for purposes of calculating AB Holding’s ownership interest in AB. Years Ended December 31 % Change 2021 2020 2019 2021-20 2020-19 (in thousands) Net income attributable to AB Unitholders $ 1,148,623 $ 865,952 $ 752,042 32.6 % 15.1 % Multiplied by: weighted average equity ownership interest 36.2 % 35.6 % 35.4 % Equity in net income attributable to AB Unitholders $ 416,326 $ 308,404 $ 266,292 35.0 15.8 AB qualifying revenues $ 2,779,281 $ 2,740,137 $ 2,640,169 1.4 2.4 Multiplied by: weighted average equity ownership interest for calculating tax 30.5 % 30.1 % 29.4 % Multiplied by: federal tax 3.5 % 3.5 % 3.5 % Federal income taxes 29,643 28,522 27,197 State income taxes 840 502 532 Total income taxes $ 30,483 $ 29,024 $ 27,729 5.0 4.7 In order to preserve AB Holding’s status as a PTP for federal income tax purposes, management ensures that AB Holding does not directly or indirectly (through AB) enter into a substantial new line of business. If AB Holding were to lose its status as a PTP, it would be subject to corporate income tax, which would reduce materially AB Holding’s net income and its quarterly distributions to AB Holding Unitholders. We recognize the effects of a tax position in the financial statements only if, as of the reporting date, it is “more likely than not” to be sustained based on its technical merits and their applicability to the facts and circumstances of the tax position. In making this assessment, we assume that the taxing authority will examine the tax position and have full knowledge of all relevant information. Accordingly, we have no liability for unrecognized tax benefits as of December 31, 2021 and 2020. A liability for unrecognized tax benefits, if required, would be recorded in income tax expense and affect the company’s effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and regulatory matters described below pertain to AB and are included here due to their potential significance to AB Holding’s investment in AB. With respect to all significant litigation matters, we consider the likelihood of a negative outcome. If we determine the likelihood of a negative outcome is probable and the amount of the loss can be reasonably estimated, we record an estimated loss for the expected outcome of the litigation. If the likelihood of a negative outcome is reasonably possible and we are able to determine an estimate of the possible loss or range of loss in excess of amounts already accrued, if any, we disclose that fact together with the estimate of the possible loss or range of loss. However, it is often difficult to predict the outcome or estimate a possible loss or range of loss because litigation is subject to inherent uncertainties, particularly when plaintiffs allege substantial or indeterminate damages. Such is also the case when the litigation is in its early stages or when the litigation is highly complex or broad in scope. In these cases, we disclose that we are unable to predict the outcome or estimate a possible loss or range of loss. AB may be involved in various matters, including regulatory inquiries, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that AB could incur losses pertaining to these matters, but management cannot currently estimate any such losses. Management, after consultation with legal counsel, currently believes that the outcome of any individual matter that is pending or threatened, or all of them combined, will not have a material adverse effect on our results of operations, financial condition or liquidity. However, any inquiry, proceeding or litigation has the element of uncertainty; management cannot determine whether further developments relating to any individual matter that is pending or threatened, or all of them combined, will have a material adverse effect on our results of operations, financial condition or liquidity in any future reporting period. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. AB Holding’s financial statements and notes should be read in conjunction with the consolidated financial statements and notes of AB, which are included in this Form 10-K. |
Investment in AB | Investment in AB AB Holding records its investment in AB using the equity method of accounting. AB Holding’s investment is increased to reflect its proportionate share of income of AB and decreased to reflect its proportionate share of losses of AB and cash distributions made by AB to its Unitholders. In addition, AB Holding's investment is adjusted to reflect its proportionate share of certain capital transactions of AB. |
Cash Distributions | Cash Distributions AB Holding is required to distribute all of its Available Cash Flow, as defined in the Amended and Restated Agreement of Limited Partnership of AB Holding (“ AB Holding Partnership Agreement ”), to its Unitholders pro rata in accordance with their percentage interests in AB Holding. Available Cash Flow is defined as the cash distributions AB Holding receives from AB minus such amounts as the General Partner determines, in its sole discretion, should be retained by AB Holding for use in its business (such as the payment of taxes) or plus such amounts as the General Partner determines, in its sole discretion, should be released from previously retained cash flow. |
Long-term Incentive Compensation Plans | Long-term Incentive Compensation Plans AB maintains several unfunded, non-qualified long-term incentive compensation plans, under which the company grants awards of restricted AB Holding Units to its employees and members of the Board of Directors, who are not employed by AB or by any of AB’s affiliates (“ Eligible Directors ”). AB funds its restricted AB Holding Unit awards either by purchasing AB Holding Units on the open market or purchasing newly-issued AB Holding Units from AB Holding, and then keeping these AB Holding Units in a consolidated rabbi trust until delivering them or retiring them. In accordance with the AB Holding Partnership Agreement, when AB purchases newly-issued AB Holding Units from AB Holding, AB Holding is required to use the proceeds it receives from AB to purchase the equivalent number of newly-issued AB Units, thus increasing its percentage ownership interest in AB. AB Holding Units held in the consolidated rabbi trust are corporate assets in the name of the trust and are available to the general creditors of AB. |
Business Description and Orga_2
Business Description and Organization (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Ownership Interest by Limited Partners | As of December 31, 2021, the ownership structure of AB, expressed as a percentage of general and limited partnership interests, was as follows: EQH and its subsidiaries 63.0 % AB Holding 36.2 Unaffiliated holders 0.8 100.0 % |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | Repurchases of AB Holding Units for the years ended December 31, 2021 and 2020 consisted of the following: Years Ended December 31 2021 2020 (in millions) Total amount of AB Holding Units Purchased (1) 5.6 5.4 Total Cash Paid for AB Holding Units Purchased (1) $262.3 $ 149.0 Open Market Purchases of AB Holding Units Purchased (2) 2.6 3.1 Total Cash Paid for Open Market Purchases of AB Holding Units (2) $117.9 $ 74.0 (1) Purchased on a trade date basis. |
Net Income Per Unit (Tables)
Net Income Per Unit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Unit | Years Ended December 31 2021 2020 2019 (in thousands, except per unit amounts) Net income - basic $385,843 $ 279,380 $ 238,563 Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options 30 56 79 Net income - diluted $385,873 $ 279,436 $ 238,642 Weighted average units outstanding - basic 99,545 96,870 95,884 Dilutive effect of compensatory options 11 27 44 Weighted average units outstanding - diluted 99,556 96,897 95,928 Basic net income per unit $3.88 $ 2.88 $ 2.49 Diluted net income per unit $3.88 $ 2.88 $ 2.49 Years Ended December 31 2021 2020 2019 Anti-dilutive options excluded from diluted net income — 29,056 29,056 |
Investment in AB (Tables)
Investment in AB (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Changes in AB Holding's Investment in AB | Changes in AB Holding’s investment in AB for the years ended December 31, 2021 and 2020 are as follows: 2021 2020 (in thousands) Investment in AB as of January 1, $ 1,605,941 $ 1,554,203 Equity in net income attributable to AB Unitholders 416,326 308,404 Changes in accumulated other comprehensive income 1,193 6,730 Cash distributions received from AB (385,236) (298,919) Additional investments with proceeds from exercises of compensatory options to buy AB Holding Units 3,402 147 Capital contributions (from) AB (2,346) (867) AB Holding Units retired (143,460) (78,388) AB Holding Units issued to fund long-term incentive compensation plans 151,082 107,366 Change in AB Holding Units held by AB for long-term incentive compensation plans (23,138) 7,265 Investment in AB as of December 31, $ 1,623,764 $ 1,605,941 |
Units Outstanding (Tables)
Units Outstanding (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Changes in AB Holding Units Outstanding | Changes in AB Holding Units outstanding for the years ended December 31, 2021 and 2020 are as follows: 2021 2020 Outstanding as of January 1, 98,322,942 98,192,098 Options exercised 143,211 5,182 Units issued 3,917,437 3,363,132 Units retired (3,111,863) (3,237,470) Outstanding as of December 31, 99,271,727 98,322,942 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Difference Between AB Holding's Effective Tax Rates and the UBT Statutory Tax Rate | The principal reasons for the difference between AB Holding’s effective tax rates and the UBT statutory tax rate of 4.0% are as follows: Years Ended December 31 2021 2020 2019 (in thousands) UBT statutory rate $16,653 4.0 % $ 12,336 4.0 % $ 10,652 4.0 % Federal tax on partnership gross business income 29,643 7.1 28,522 9.2 27,197 10.2 State income taxes 840 0.2 502 0.2 532 0.2 Credit for UBT paid by AB (16,653) (4.0) (12,336) (4.0) (10,652) (4.0) Income tax expense and effective tax rate $30,483 7.3 $ 29,024 9.4 $ 27,729 10.4 |
Computation of Effective Income Tax Rate and Changes in Components of Income Tax | AB Holding Units in AB’s consolidated rabbi trust are not considered outstanding for purposes of calculating AB Holding’s ownership interest in AB. Years Ended December 31 % Change 2021 2020 2019 2021-20 2020-19 (in thousands) Net income attributable to AB Unitholders $ 1,148,623 $ 865,952 $ 752,042 32.6 % 15.1 % Multiplied by: weighted average equity ownership interest 36.2 % 35.6 % 35.4 % Equity in net income attributable to AB Unitholders $ 416,326 $ 308,404 $ 266,292 35.0 15.8 AB qualifying revenues $ 2,779,281 $ 2,740,137 $ 2,640,169 1.4 2.4 Multiplied by: weighted average equity ownership interest for calculating tax 30.5 % 30.1 % 29.4 % Multiplied by: federal tax 3.5 % 3.5 % 3.5 % Federal income taxes 29,643 28,522 27,197 State income taxes 840 502 532 Total income taxes $ 30,483 $ 29,024 $ 27,729 5.0 4.7 |
Business Description and Orga_3
Business Description and Organization - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Ownership structure of AB expressed as percentage of general and limited partnership interests | ||
General partnership units (in units) | 100,000 | 100,000 |
AB Holding | EQH | ||
Ownership structure of AB expressed as percentage of general and limited partnership interests | ||
General partnership interest (percent) | 4.00% | |
AB Holding | AllianceBernstein Corporation | ||
Ownership structure of AB expressed as percentage of general and limited partnership interests | ||
General partnership interest (percent) | 1.00% | |
General partnership units (in units) | 100,000 | |
AllianceBernstein L.P. | EQH and its subsidiaries | ||
Ownership structure of AB expressed as percentage of general and limited partnership interests | ||
General partnership interest (percent) | 64.50% |
Business Description and Orga_4
Business Description and Organization - Limited Partnership Interests in AB Holdings (Details) - AllianceBernstein Corporation | 12 Months Ended |
Dec. 31, 2021 | |
EQH and its subsidiaries | |
Ownership structure of AB Holding | |
Limited partners or members ownership interest in Company (percent) | 63.00% |
AB Holding | |
Ownership structure of AB Holding | |
Limited partners or members ownership interest in Company (percent) | 36.20% |
Unaffiliated holders | |
Ownership structure of AB Holding | |
Limited partners or members ownership interest in Company (percent) | 0.80% |
AllianceBernstein L.P. | |
Ownership structure of AB Holding | |
Limited partners or members ownership interest in Company (percent) | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 11, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Total cash distributions per unit paid to unitholders (in dollars per unit) | $ 3.58 | $ 2.79 | $ 2.32 | |||
Long-Term Incentive Compensation Plans [Abstract] | ||||||
AB Holding units purchased in period (in units) | 5,600,000 | 5,400,000 | ||||
Dollar amount paid for AB holding units acquired | $ 262,300 | $ 149,000 | ||||
Open-market purchases of AB holding units (in units) | 2,600,000 | 3,100,000 | ||||
Dollar amount paid for open-market purchases of AB holding units | $ 117,900 | $ 74,000 | ||||
Restricted AB holding unit awards to employees (in units) | 3,400,000 | 5,000,000 | ||||
Options to buy AB holding units outstanding, number (in units) | 100,000 | 5,182 | ||||
Proceeds from exercise of compensatory options to buy AB holding units | $ 3,402 | $ 147 | $ 11,511 | |||
Employees and Eligible Directors | ||||||
Long-Term Incentive Compensation Plans [Abstract] | ||||||
Restricted AB holding unit awards to employees (in units) | 7,000,000 | 5,700,000 | ||||
Subsequent Event | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Subsequent cash distribution, distribution declared (in dollars per unit) | $ 1.29 |
Net Income Per Unit (Details)
Net Income Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income - basic | $ 385,843 | $ 279,380 | $ 238,563 |
Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options | 30 | 56 | 79 |
Net income - diluted | $ 385,873 | $ 279,436 | $ 238,642 |
Weighted average units outstanding - basic (in units) | 99,545,000 | 96,870,000 | 95,884,000 |
Dilutive effect of compensatory options (in units) | 11,000 | 27,000 | 44,000 |
Weighted average units outstanding - diluted (in units) | 99,556,000 | 96,897,000 | 95,928,000 |
Basic net income per unit (in dollars per unit) | $ 3.88 | $ 2.88 | $ 2.49 |
Diluted net income per unit (in dollars per unit) | $ 3.88 | $ 2.88 | $ 2.49 |
Anti-dilutive options excluded from diluted net income (in units) | 0 | 29,056 | 29,056 |
Investment in AB (Details)
Investment in AB (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Equity Method Investment | |||
Beginning balance | $ 1,605,941 | $ 1,554,203 | |
Equity in net income attributable to AB Unitholders | 416,326 | 308,404 | $ 266,292 |
Changes in accumulated other comprehensive income | 1,193 | 6,730 | (1,167) |
Cash distributions received from AB | (385,236) | (298,919) | (249,463) |
Additional investments with proceeds from exercises of compensatory options to buy AB Holding Units | 3,402 | 147 | 11,511 |
Capital contributions from AB | (2,346) | (867) | |
AB Holding Units retired | (143,460) | (78,388) | (110,752) |
AB Holding Units issued to fund long-term incentive compensation plans | 151,082 | 107,366 | 146,488 |
Change in AB Holding Units held by AB for long-term incentive compensation plans | (23,138) | 7,265 | |
Ending balance | $ 1,623,764 | $ 1,605,941 | $ 1,554,203 |
Units Outstanding (Details)
Units Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Units Outstanding | ||
Outstanding, beginning balance (in units) | 98,322,942 | 98,192,098 |
Options exercised (in units) | 143,211 | 5,182 |
Units issued (in units) | 3,917,437 | 3,363,132 |
Units retired (in units) | (3,111,863) | (3,237,470) |
Outstanding, ending balance (in units) | 99,271,727 | 98,322,942 |
Income Taxes - Principal Reason
Income Taxes - Principal Reasons for the Difference Between the Effective Tax Rate and Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Credit for UBT | 4.00% | 4.00% | 4.00% |
Federal tax rate | 3.50% | 3.50% | 3.50% |
UBT statutory rate, percent | 4.00% | 4.00% | 4.00% |
AB Holding's effective tax expense [Abstract] | |||
UBT statutory rate | $ 16,653 | $ 12,336 | $ 10,652 |
Federal tax on partnership gross business income | 29,643 | 28,522 | 27,197 |
State income taxes | 840 | 502 | 532 |
Credit for UBT paid by AB | (16,653) | (12,336) | (10,652) |
Total income taxes | $ 30,483 | $ 29,024 | $ 27,729 |
AB Holding' effective tax rate [Abstract] | |||
UBT statutory rate, percent | 4.00% | 4.00% | 4.00% |
Federal tax on partnership gross business income, percent | 7.10% | 9.20% | 10.20% |
State income taxes, percent | 0.20% | 0.20% | 0.20% |
Credit for UBT paid by AB, percent | (4.00%) | (4.00%) | (4.00%) |
Income tax effective tax rate, percent | 7.30% | 9.40% | 10.40% |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Computation of equity in net income attributable to AB Unitholders [Abstract] | |||
Multiplied by: weighted average equity ownership interest | 36.20% | 35.60% | 35.40% |
Equity in net income attributable to AB Unitholders | $ 416,326,000 | $ 308,404,000 | $ 266,292,000 |
Computation of income tax [Abstract] | |||
AB qualifying revenues | $ 2,779,281,000 | $ 2,740,137,000 | $ 2,640,169,000 |
Multiplied by: weighted average equity ownership interest for calculating tax | 30.50% | 30.10% | 29.40% |
Multiplied by: federal tax | 3.50% | 3.50% | 3.50% |
Federal income taxes | $ 29,643,000 | $ 28,522,000 | $ 27,197,000 |
State income taxes | 840,000 | 502,000 | 532,000 |
Total income taxes | $ 30,483,000 | $ 29,024,000 | 27,729,000 |
Changes in components for calculation of income tax [Abstract] | |||
Increase in net income attributable to AB Unitholders (percent) | 32.60% | 15.10% | |
Increase in equity in net income attributable to AB Unitholders (percent) | 35.00% | 15.80% | |
Increase (decrease) in AB qualifying revenue (percent) | 1.40% | 2.40% | |
Increase (decrease) in income taxes (percent) | 5.00% | 4.70% | |
Unrecognized tax benefits | $ 0 | $ 0 | |
Variable Interest Entity, Primary Beneficiary | |||
Computation of equity in net income attributable to AB Unitholders [Abstract] | |||
Net income attributable to AB Unitholders | $ 1,148,623,000 | $ 865,952,000 | $ 752,042,000 |