Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2023 |
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, 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 | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
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 Common Stock, Shares Outstanding | 113,555,480 |
Entity Central Index Key | 0000825313 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Statements of Financi
Condensed Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Investment in AB | $ 2,043,974 | $ 2,074,626 |
Other assets | 213 | 0 |
Total assets | 2,044,187 | 2,074,626 |
Liabilities: | ||
Other liabilities | 352 | 1,623 |
Total liabilities | 352 | 1,623 |
Commitments and contingencies (See Note 8) | ||
Partners’ capital: | ||
General Partner: 100,000 general partnership units issued and outstanding | 1,332 | 1,355 |
Limited partners: 113,455,480 and 113,701,097 limited partnership units issued and outstanding | 2,124,142 | 2,160,207 |
AB Holding Units held by AB to fund long-term incentive compensation plans | (35,152) | (37,551) |
Accumulated other comprehensive loss | (46,487) | (51,008) |
Total partners’ capital | 2,043,835 | 2,073,003 |
Total liabilities and partners’ capital | $ 2,044,187 | $ 2,074,626 |
Condensed Statements of Finan_2
Condensed Statements of Financial Condition (Parenthetical) - shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
General partner units issued (in shares) | 100,000 | 100,000 |
General partner units outstanding (in units) | 100,000 | 100,000 |
Limited partners units issued (in shares) | 113,455,480 | 113,455,480 |
Limited partners units outstanding (in shares) | 113,701,097 | 113,701,097 |
Condensed Statements of Income
Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Equity in net income attributable to AB Unitholders | $ 69,121 | $ 75,358 | $ 145,503 | $ 169,711 |
Income taxes | 8,563 | 7,217 | 17,508 | 15,642 |
Net income | $ 60,558 | $ 68,141 | $ 127,995 | $ 154,069 |
Net income per unit: | ||||
Basic (in dollars per share) | $ 0.53 | $ 0.69 | $ 1.13 | $ 1.56 |
Diluted (in dollars per share) | $ 0.53 | $ 0.69 | $ 1.13 | $ 1.56 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 60,558 | $ 68,141 | $ 127,995 | $ 154,069 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, before tax | 1,767 | (11,984) | 4,236 | (16,301) |
Income tax benefit | 6 | 230 | 28 | 260 |
Foreign currency translation adjustments, net of tax | 1,773 | (11,754) | 4,264 | (16,041) |
Changes in employee benefit related items: | ||||
Amortization of prior service cost | 2 | 6 | 5 | 8 |
Recognized actuarial gain | 111 | 357 | 254 | 441 |
Changes in employee benefit related items | 113 | 363 | 259 | 449 |
Income tax (expense) | (1) | (4) | (2) | (7) |
Employee benefit related items, net of tax | 112 | 359 | 257 | 442 |
Other comprehensive income (loss) | 1,885 | (11,395) | 4,521 | (15,599) |
Comprehensive income | $ 62,443 | $ 56,746 | $ 132,516 | $ 138,470 |
Condensed Statements of Changes
Condensed 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) | General Partner’s Capital | Limited Partners’ Capital |
Balance, beginning of period at Dec. 31, 2021 | $ (43,309) | $ (32,705) | $ 1,439 | $ 1,696,199 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 154,069 | 156 | 153,913 | ||
Cash distributions to Unitholders | (219) | (217,429) | |||
AB Holding Units retired | (112,307) | ||||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 31,457 | ||||
Exercise of compensatory options to buy AB Holding Units | 178 | ||||
Decrease in AB Holding Units held by AB to fund long-term incentive compensation plans | 237 | ||||
Foreign currency translation adjustment, net of tax | (16,041) | (16,041) | |||
Changes in employee benefit related items, net of tax | 442 | 442 | |||
Balance, end of period at Jun. 30, 2022 | 1,461,537 | (43,546) | (48,304) | 1,376 | 1,552,011 |
Balance, beginning of period at Mar. 31, 2022 | (47,402) | (36,909) | 1,397 | 1,670,152 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 68,141 | 69 | 68,072 | ||
Cash distributions to Unitholders | (90) | (89,886) | |||
AB Holding Units retired | (100,600) | ||||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 4,095 | ||||
Exercise of compensatory options to buy AB Holding Units | 178 | ||||
Increase in AB Holding Units held by AB to fund long-term incentive compensation plans | 3,856 | ||||
Foreign currency translation adjustment, net of tax | (11,754) | (11,754) | |||
Changes in employee benefit related items, net of tax | 359 | 359 | |||
Balance, end of period at Jun. 30, 2022 | 1,461,537 | (43,546) | (48,304) | 1,376 | 1,552,011 |
Balance, beginning of period at Dec. 31, 2022 | 2,073,003 | (37,551) | (51,008) | 1,355 | 2,160,207 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 127,995 | 112 | 127,883 | ||
Cash distributions to Unitholders | (135) | (154,211) | |||
AB Holding Units retired | (17,424) | (17,424) | |||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 7,687 | 7,687 | |||
Exercise of compensatory options to buy AB Holding Units | 0 | ||||
Increase in AB Holding Units held by AB to fund long-term incentive compensation plans | 2,399 | ||||
Foreign currency translation adjustment, net of tax | 4,264 | 4,264 | |||
Changes in employee benefit related items, net of tax | 257 | 257 | |||
Balance, end of period at Jun. 30, 2023 | 2,043,835 | (35,152) | (46,487) | 1,332 | 2,124,142 |
Balance, beginning of period at Mar. 31, 2023 | (37,053) | (48,372) | 1,345 | 2,135,834 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 60,558 | 52 | 60,506 | ||
Cash distributions to Unitholders | (65) | (74,971) | |||
AB Holding Units retired | (1,468) | ||||
Issuance of AB Holding Units to fund long-term incentive compensation plan awards | 4,241 | ||||
Exercise of compensatory options to buy AB Holding Units | 0 | ||||
Increase in AB Holding Units held by AB to fund long-term incentive compensation plans | 1,901 | ||||
Foreign currency translation adjustment, net of tax | 1,773 | 1,773 | |||
Changes in employee benefit related items, net of tax | 112 | 112 | |||
Balance, end of period at Jun. 30, 2023 | $ 2,043,835 | $ (35,152) | $ (46,487) | $ 1,332 | $ 2,124,142 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||||
Net income | $ 60,558 | $ 68,141 | $ 127,995 | $ 154,069 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in net income attributable to AB Unitholders | (69,121) | (75,358) | (145,503) | (169,711) |
Cash distributions received from AB | 171,308 | 235,075 | ||
Changes in assets and liabilities: | ||||
(Increase) in other assets | (213) | 0 | ||
(Decrease) in other liabilities | (1,271) | (1,412) | ||
Net cash provided by operating activities | 152,316 | 218,021 | ||
Cash flows from investing activities: | ||||
Investments in AB with proceeds from exercise of compensatory options to buy AB Holding Units | 0 | (178) | ||
Net cash used in investing activities | 0 | (178) | ||
Cash flows from financing activities: | ||||
Cash distributions to Unitholders | (154,346) | (217,648) | ||
Capital contributions from (to) AB | 2,030 | (373) | ||
Proceeds from exercise of compensatory options to buy AB Holding Units | 0 | 178 | ||
Net cash used in financing activities | (152,316) | (217,843) | ||
Change in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents as of beginning of period | 0 | 0 | ||
Cash and cash equivalents as of end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Business Description, Organizat
Business Description, Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description, Organization and Basis of Presentation | Business Description, Organization and Basis of Presentation Business Description AB Holding’s principal source of income and cash flow is attributable to its investment in AB limited partnership interests. The condensed financial statements and notes of AB Holding should be read in conjunction with the condensed consolidated financial statements and notes of AB included as an exhibit to this quarterly report on Form 10-Q and with AB Holding’s and AB’s audited financial statements included in AB Holding’s Form 10-K for the year ended December 31, 2022. 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 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 certain of the mutual funds it sponsors. AB’s high-quality, in-depth research is the foundation of its asset management and private wealth management businesses. 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; • Actively-managed alternative investments, including hedge funds, fund of funds and direct assets (e.g., direct lending, real estate and private equity); • Portfolios with Purpose, including actively managed, impact-focused and Responsible+ (climate-conscious, ESG leaders, change catalysts) equity, fixed income and multi-asset strategies that address the evolving objectives of our clients to invest their capital with purpose while pursuing strong investment returns; • Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds; and • Passive management, including index, ESG index and enhanced index strategies. Organization As of June 30, 2023, EQH owned approximately 3.5% of the issued and outstanding units representing assignments of beneficial ownership of limited partnership interests in AB Holding (“AB Holding Units”). AllianceBernstein Corporation (an indirect wholly-owned subsidiary of EQH, “General Partner”) is the general partner of both AB Holding and AB. AllianceBernstein Corporation owns 100,000 general partnership units in AB Holding and a 1.0% general partnership interest in AB. As of June 30, 2023, the ownership structure of AB, expressed as a percentage of general and limited partnership interests, was as follows: EQH and its subsidiaries 59.9 % AB Holding 39.3 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 61.4% economic interest in AB as of June 30, 2023. Basis of Presentation The interim condensed 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 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 financial statements and the reported amounts of revenues and expenses during the interim reporting periods. Actual results could differ from those estimates. The condensed statement of financial condition as of December 31, 2022 was derived from audited financial statements. Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements under principles generally accepted in the United States of America ("GAAP") and the rules of the SEC. 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. Subsequent Events We have evaluated subsequent events through the date that these financial statements were filed with the SEC and did not identify any subsequent events that would require disclosure in these financial statements. |
Cash Distributions
Cash Distributions | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
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 Compensatio
Long-term Incentive Compensation Plans | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
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. Repurchases and retention of AB Holding Units for the three and six months ended June 30, 2023 and 2022 consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in millions) Total amount of AB Holding Units Purchased/Retained (1) — 2.3 0.5 2.6 Total Cash Paid for AB Holding Units Purchased/Retained (1) $ — $ 92.7 $ 18.8 $ 106.7 Open Market Purchases of AB Holding Units Purchased (1) — 2.3 — 2.3 Total Cash Paid for Open Market Purchases of AB Holding Units (1) $ — $ 92.7 $ — $ 92.7 (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. 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 under the terms and limitations specified in the plan to repurchase AB Holding Units on AB’s 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 second quarter of 2023. AB may adopt 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 the first six months of 2023 and 2022, AB awarded to employees and Eligible Directors 0.4 million and 0.8 million restricted AB Holding Unit awards, respectively. AB used AB Holding Units repurchased during the applicable period and newly-issued AB Holding Units to fund these restricted AB Holding Unit awards. During the first six months of 2023 and 2022, AB Holding issued zero and 5,774 AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of zero 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. |
Net Income per Unit
Net Income per Unit | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Unit [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 period. 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 period. Three Months Ended June 30, Six Months Ended 2023 2022 2023 2022 (in thousands, except per unit amounts) Net income – basic $ 60,558 $ 68,141 $ 127,995 $ 154,069 Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options — — — 2 Net income – diluted $ 60,558 $ 68,141 $ 127,995 $ 154,071 Weighted average units outstanding – basic 113,494 98,802 113,520 99,001 Dilutive effect of compensatory options — — — 2 Weighted average units outstanding – diluted 113,494 98,802 113,520 99,003 Basic net income per unit $ 0.53 $ 0.69 $ 1.13 $ 1.56 Diluted net income per unit $ 0.53 $ 0.69 $ 1.13 $ 1.56 There were no anti-dilutive options excluded from diluted net income in the three and six months ended June 30, 2023 or 2022. |
Investment in AB
Investment in AB | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in AB | Investment in AB Changes in AB Holding’s investment in AB during the six-month period ended June 30, 2023 are as follows (in thousands): Investment in AB as of December 31, 2022 $ 2,074,626 Equity in net income attributable to AB Unitholders 145,503 Changes in accumulated other comprehensive income 4,521 Cash distributions received from AB (171,308) Capital contributions (from) AB (2,030) AB Holding Units retired (17,424) AB Holding Units issued to fund long-term incentive compensation plans 7,687 Change in AB Holding Units held by AB for long-term incentive compensation plans 2,399 Investment in AB as of June 30, 2023 $ 2,043,974 |
Units Outstanding
Units Outstanding | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Units Outstanding | Units Outstanding Changes in AB Holding Units outstanding during the six-month period ended June 30, 2023 are as follows: Outstanding as of December 31, 2022 113,801,097 Units issued 216,949 Units retired (462,566) Outstanding as of June 30, 2023 113,555,480 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
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. 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. Three Months Ended June 30, Six Months Ended 2023 2022 % Change 2023 2022 % Change (in thousands) Net income attributable to AB Unitholders $ 175,737 $ 208,769 (15.8) % $ 369,888 $ 469,496 (21.2) % Multiplied by: weighted average equity ownership interest 39.3 % 36.1 % 39.3 % 36.1 % Equity in net income attributable to AB Unitholders $ 69,121 $ 75,358 (8.3) $ 145,503 $ 169,711 (14.3) AB qualifying revenues $ 670,328 $ 665,807 0.7 $ 1,370,543 $ 1,410,524 (2.8) Multiplied by: weighted average equity ownership interest for calculating tax 35.7 % 30.6 % 35.7 % 31.0 % Multiplied by: federal tax 3.5 % 3.5 % 3.5 % 3.5 % Federal income taxes 8,371 7,120 17,120 15,306 State income taxes 192 97 388 336 Total income taxes $ 8,563 $ 7,217 18.7 $ 17,508 $ 15,642 11.9 Effective tax rate 12.4 % 9.6 % 12.0 % 9.2 % 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) engage in 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
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. On December 14, 2022, four individual participants in the Profit Sharing Plan for Employees of AllianceBernstein L.P., (the "Plan") filed a class action complaint (the “Complaint”) in the U.S. District Court for the Southern District of New York against AB, current and former members of the Compensation 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. AB is prepared to defend itself vigorously against these claims. While the ultimate outcome of this matter is currently not determinable given the matter remains in its early stages, we do not believe this litigation will have a material adverse effect on our results of operations, financial condition or liquidity. AB may be involved in various other matters, including regulatory inquiries, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that AB could incur losses pertaining to these other 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 60,558 | $ 68,141 | $ 127,995 | $ 154,069 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
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, Organiz_2
Business Description, Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed 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 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 financial statements and the reported amounts of revenues and expenses during the interim reporting periods. Actual results could differ from those estimates. The condensed statement of financial condition as of December 31, 2022 was derived from audited financial statements. Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements under principles generally accepted in the United States of America ("GAAP") and the rules of the SEC. 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. |
Subsequent Events | Subsequent Events We have evaluated subsequent events through the date that these financial statements were filed with the SEC and did not identify any subsequent events that would require disclosure in these financial statements. |
Business Description, Organiz_3
Business Description, Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Ownership Structure of AllianceBernstein | As of June 30, 2023, the ownership structure of AB, expressed as a percentage of general and limited partnership interests, was as follows: EQH and its subsidiaries 59.9 % AB Holding 39.3 Unaffiliated holders 0.8 100.0 % |
Long-term Incentive Compensat_2
Long-term Incentive Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Unit Award Repurchase Activity | Repurchases and retention of AB Holding Units for the three and six months ended June 30, 2023 and 2022 consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in millions) Total amount of AB Holding Units Purchased/Retained (1) — 2.3 0.5 2.6 Total Cash Paid for AB Holding Units Purchased/Retained (1) $ — $ 92.7 $ 18.8 $ 106.7 Open Market Purchases of AB Holding Units Purchased (1) — 2.3 — 2.3 Total Cash Paid for Open Market Purchases of AB Holding Units (1) $ — $ 92.7 $ — $ 92.7 (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) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Unit [Abstract] | |
Schedule of Earnings Per Unit, Basic and Diluted | Basic net income per unit is derived by dividing net income by the basic weighted average number of units outstanding for each period. 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 period. Three Months Ended June 30, Six Months Ended 2023 2022 2023 2022 (in thousands, except per unit amounts) Net income – basic $ 60,558 $ 68,141 $ 127,995 $ 154,069 Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options — — — 2 Net income – diluted $ 60,558 $ 68,141 $ 127,995 $ 154,071 Weighted average units outstanding – basic 113,494 98,802 113,520 99,001 Dilutive effect of compensatory options — — — 2 Weighted average units outstanding – diluted 113,494 98,802 113,520 99,003 Basic net income per unit $ 0.53 $ 0.69 $ 1.13 $ 1.56 Diluted net income per unit $ 0.53 $ 0.69 $ 1.13 $ 1.56 |
Investment in AB (Tables)
Investment in AB (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Changes in Investment in AB | Changes in AB Holding’s investment in AB during the six-month period ended June 30, 2023 are as follows (in thousands): Investment in AB as of December 31, 2022 $ 2,074,626 Equity in net income attributable to AB Unitholders 145,503 Changes in accumulated other comprehensive income 4,521 Cash distributions received from AB (171,308) Capital contributions (from) AB (2,030) AB Holding Units retired (17,424) AB Holding Units issued to fund long-term incentive compensation plans 7,687 Change in AB Holding Units held by AB for long-term incentive compensation plans 2,399 Investment in AB as of June 30, 2023 $ 2,043,974 |
Units Outstanding (Tables)
Units Outstanding (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Changes in Holding Units Outstanding | Changes in AB Holding Units outstanding during the six-month period ended June 30, 2023 are as follows: Outstanding as of December 31, 2022 113,801,097 Units issued 216,949 Units retired (462,566) Outstanding as of June 30, 2023 113,555,480 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Computation of Effective Income Tax Rate and Changes in Components of Income Tax | Three Months Ended June 30, Six Months Ended 2023 2022 % Change 2023 2022 % Change (in thousands) Net income attributable to AB Unitholders $ 175,737 $ 208,769 (15.8) % $ 369,888 $ 469,496 (21.2) % Multiplied by: weighted average equity ownership interest 39.3 % 36.1 % 39.3 % 36.1 % Equity in net income attributable to AB Unitholders $ 69,121 $ 75,358 (8.3) $ 145,503 $ 169,711 (14.3) AB qualifying revenues $ 670,328 $ 665,807 0.7 $ 1,370,543 $ 1,410,524 (2.8) Multiplied by: weighted average equity ownership interest for calculating tax 35.7 % 30.6 % 35.7 % 31.0 % Multiplied by: federal tax 3.5 % 3.5 % 3.5 % 3.5 % Federal income taxes 8,371 7,120 17,120 15,306 State income taxes 192 97 388 336 Total income taxes $ 8,563 $ 7,217 18.7 $ 17,508 $ 15,642 11.9 Effective tax rate 12.4 % 9.6 % 12.0 % 9.2 % |
Business Description, Organiz_4
Business Description, Organization and Basis of Presentation (Details) - shares | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Ownership structure of AB Holding | ||
Units outstanding (in shares) | 100,000 | 100,000 |
AB Holding | EQH | ||
Ownership structure of AB Holding | ||
General partnership interest (percent) | 3.50% | |
AB Holding | AllianceBernstein Corporation | ||
Ownership structure of AB Holding | ||
General partnership interest (percent) | 1% | |
Units outstanding (in shares) | 100,000 | |
AB | EQH and its subsidiaries | ||
Ownership structure of AB Holding | ||
General partnership interest (percent) | 61.40% |
Business Description, Organiz_5
Business Description, Organization and Basis of Presentation - Limited Partnership Interests in AB Holdings (Details) - AllianceBernstein Corporation | 6 Months Ended |
Jun. 30, 2023 | |
EQH and its subsidiaries | |
Distribution Made to Limited Partner [Line Items] | |
Limited partners or members ownership interest in Company (percent) | 59.90% |
AB Holding | |
Distribution Made to Limited Partner [Line Items] | |
Limited partners or members ownership interest in Company (percent) | 39.30% |
Unaffiliated holders | |
Distribution Made to Limited Partner [Line Items] | |
Limited partners or members ownership interest in Company (percent) | 0.80% |
AB | |
Distribution Made to Limited Partner [Line Items] | |
Limited partners or members ownership interest in Company (percent) | 100% |
Cash Distributions (Details)
Cash Distributions (Details) | Jul. 27, 2023 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Subsequent cash distribution, distribution declared (in dollars per unit) | $ 0.61 |
Long-term Incentive Compensat_3
Long-term Incentive Compensation Plans - Unit Purchase Activity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Total amount of AB Holding Units Purchased/Retained (in shares) | 0 | 2.3 | 0.5 | 2.6 |
Total Cash Paid for AB Holding Units Purchased/Retained | $ 0 | $ 92.7 | $ 18.8 | $ 106.7 |
Open Market Purchases of AB Holding Units Purchased (in shares) | 0 | 2.3 | 0 | 2.3 |
Total Cash Paid for Open Market Purchases of AB Holding Units | $ 0 | $ 92.7 | $ 0 | $ 92.7 |
Long-term Incentive Compensat_4
Long-term Incentive Compensation Plans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from exercise of compensatory options to buy AB Holding Units | $ 0 | $ 178 |
AB Holding Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units issued upon options exercised (in shares) | 0 | 5,774 |
Proceeds from exercise of compensatory options to buy AB Holding Units | $ 0 | $ 100 |
Employees and Eligible Directors | AB Holding Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted AB Holding Unit awards granted to employees and Eligible Directors (in shares) | 400,000 | 800,000 |
Net Income per Unit (Details)
Net Income per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Unit [Abstract] | ||||
Net income – basic | $ 60,558 | $ 68,141 | $ 127,995 | $ 154,069 |
Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options | 0 | 0 | 0 | 2 |
Net income – diluted | $ 60,558 | $ 68,141 | $ 127,995 | $ 154,071 |
Weighted average units outstanding – basic (in shares) | 113,494,000 | 98,802,000 | 113,520,000 | 99,001,000 |
Dilutive effect of compensatory options (in shares) | 0 | 0 | 0 | 2,000 |
Weighted average units outstanding – diluted (in shares) | 113,494,000 | 98,802,000 | 113,520,000 | 99,003,000 |
Basic net income per unit (in dollars per share) | $ 0.53 | $ 0.69 | $ 1.13 | $ 1.56 |
Diluted net income per unit (in dollars per share) | $ 0.53 | $ 0.69 | $ 1.13 | $ 1.56 |
Anti-dilutive units excluded from diluted net income (in shares) | 0 | 0 | 0 | 0 |
Investment in AB (Details)
Investment in AB (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Change in Equity Method Investment [Roll Forward] | ||||
Beginning balance | $ 2,074,626 | |||
Equity in net income attributable to AB Unitholders | $ 69,121 | $ 75,358 | 145,503 | $ 169,711 |
Changes in accumulated other comprehensive income | 1,885 | $ (11,395) | 4,521 | (15,599) |
Cash distributions received from AB | (171,308) | $ (235,075) | ||
Capital contributions (from) AB | (2,030) | |||
AB Holding Units retired | (17,424) | |||
AB Holding Units issued to fund long-term incentive compensation plans | 7,687 | |||
Change in AB Holding Units held by AB for long-term incentive compensation plans | 2,399 | |||
Ending balance | $ 2,043,974 | $ 2,043,974 |
Units Outstanding (Details)
Units Outstanding (Details) | 6 Months Ended |
Jun. 30, 2023 shares | |
Units Outstanding | |
Outstanding, beginning balance (in shares) | 113,801,097 |
Units issued (in shares) | 216,949 |
Units retired (in shares) | (462,566) |
Outstanding, ending balance (in shares) | 113,555,480 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
New York City unincorporated business tax (percent) | 4% | |||
Federal tax rate on partnership gross income (percent) | 3.50% | |||
Income Tax Contingency [Line Items] | ||||
Multiplied by: weighted average equity ownership interest (percent) | 39.30% | 36.10% | 39.30% | 36.10% |
Equity in net income attributable to AB Unitholders | $ 69,121 | $ 75,358 | $ 145,503 | $ 169,711 |
Computation of income tax [Abstract] | ||||
AB qualifying revenues | $ 670,328 | $ 665,807 | $ 1,370,543 | $ 1,410,524 |
Multiplied by: weighted average equity ownership interest for calculating tax (percent) | 35.70% | 30.60% | 35.70% | 31% |
Multiplied by: federal tax (percent) | 3.50% | 3.50% | 3.50% | 3.50% |
Federal income taxes | $ 8,371 | $ 7,120 | $ 17,120 | $ 15,306 |
State income taxes | 192 | 97 | 388 | 336 |
Total income taxes | $ 8,563 | $ 7,217 | $ 17,508 | $ 15,642 |
Effective tax rate (percent) | 12.40% | 9.60% | 12% | 9.20% |
Changes in components for calculation of income tax [Abstract] | ||||
Change in net income attributable to AB Unitholders (percent) | (15.80%) | (21.20%) | ||
Change in equity in net income attributable to AB Unitholders (percent) | (8.30%) | (14.30%) | ||
Change in AB qualifying revenues (percent) | 0.70% | (2.80%) | ||
Change in income taxes (percent) | 18.70% | 11.90% | ||
Variable Interest Entity, Primary Beneficiary | ||||
Income Tax Contingency [Line Items] | ||||
Net income attributable to AB Unitholders | $ 175,737 | $ 208,769 | $ 369,888 | $ 469,496 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Dec. 14, 2022 plaintiff |
Commitments and Contingencies Disclosure [Abstract] | |
Number of participants that filed a class action complaint | 4 |