Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
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 | 1345 Avenue of the Americas |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10105 |
City Area Code | 212 |
Local Phone Number | 969-1000 |
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 | 268,182,957 |
Entity Central Index Key | 0001109448 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 705,021 | $ 640,206 |
Cash and securities segregated, at fair value (cost: $952,164 and $1,164,375) | 958,149 | 1,169,554 |
Receivables, net: | ||
Brokers and dealers | 119,256 | 197,048 |
Brokerage clients | 1,544,227 | 1,718,629 |
AB funds fees | 198,161 | 217,470 |
Other fees | 130,337 | 127,462 |
Investments: | ||
Long-term incentive compensation-related | 48,776 | 52,429 |
Other | 274,429 | 661,915 |
Other assets | 284,835 | 297,940 |
Furniture, equipment and leasehold improvements, net | 151,812 | 155,519 |
Goodwill | 3,076,926 | 3,066,700 |
Intangible assets, net | 65,705 | 79,424 |
Deferred sales commissions, net | 27,359 | 17,148 |
Right-of-use assets | 380,587 | |
Total assets | 8,555,271 | 8,789,098 |
Payables: | ||
Brokers and dealers | 199,752 | 290,960 |
Securities sold not yet purchased | 13,690 | 8,623 |
Brokerage clients | 2,380,661 | 3,095,458 |
AB mutual funds | 86,696 | 74,599 |
Accounts payable and accrued expenses | 198,269 | 412,313 |
Lease liabilities | 491,127 | |
Liabilities | 4,398,256 | 4,724,080 |
Accrued compensation and benefits | 606,881 | 273,250 |
Debt | 383,107 | 546,267 |
Commitments and contingencies (See Note 12) | ||
Redeemable non-controlling interest | 291,524 | 148,809 |
Capital: | ||
General Partner | 39,997 | 40,240 |
Limited partners: 268,182,957 and 268,850,276 units issued and outstanding | 4,052,581 | 4,075,306 |
Receivables from affiliates | (9,304) | (11,430) |
AB Holding Units held for long-term incentive compensation plans | (95,713) | (77,990) |
Accumulated other comprehensive loss | (122,070) | (110,866) |
Partners’ capital attributable to AB Unitholders | 3,865,491 | 3,915,260 |
Non-redeemable non-controlling interests in consolidated entities | 0 | 949 |
Total capital | 3,865,491 | 3,916,209 |
Total liabilities, redeemable non-controlling interest and capital | 8,555,271 | 8,789,098 |
Company-sponsored investment funds | ||
Investments: | ||
Cash and cash equivalents | 17,009 | 13,118 |
Investments | 536,282 | 351,696 |
Other assets | 36,400 | 22,840 |
Payables: | ||
Liabilities | 38,073 | 22,610 |
Redeemable non-controlling interest | 291,524 | 145,921 |
Capital: | ||
Non-redeemable non-controlling interests in consolidated entities | $ 0 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Cash and securities segregated, at cost | $ 952,164 | $ 1,164,375 |
Limited partners, units issued (in units) | 268,182,957 | 268,850,276 |
Limited partners, units outstanding (in units) | 268,182,957 | 268,850,276 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Revenue subject to contracts with customers | $ 861,148 | $ 841,442 | $ 2,465,095 | $ 2,497,449 |
Dividend and interest income | 24,882 | 21,942 | 79,882 | 71,351 |
Investment gains (losses) | 4,433 | 565 | 31,117 | 26,860 |
Other revenues | 24,497 | 24,012 | 71,499 | 76,548 |
Total revenues | 890,845 | 864,651 | 2,577,571 | 2,598,848 |
Less: Interest expense | 12,978 | 14,475 | 46,443 | 36,147 |
Net revenues | 877,867 | 850,176 | 2,531,128 | 2,562,701 |
Expenses: | ||||
Employee compensation and benefits | 361,822 | 357,442 | 1,064,833 | 1,059,515 |
Promotion and servicing: | ||||
Amortization of deferred sales commissions | 3,605 | 4,651 | 10,348 | 17,362 |
Trade execution, marketing, T&E and other | 53,814 | 50,793 | 161,012 | 164,095 |
General and administrative: | ||||
General and administrative | 117,056 | 107,526 | 355,084 | 337,596 |
Real estate charges (credits) | 153 | (155) | 701 | 6,490 |
Contingent payment arrangements | 829 | 52 | 1,712 | 157 |
Interest on borrowings | 2,802 | 2,711 | 10,775 | 7,952 |
Amortization of intangible assets | 7,277 | 6,965 | 21,536 | 20,753 |
Total expenses | 675,084 | 636,357 | 1,975,974 | 1,936,747 |
Operating income | 202,783 | 213,819 | 555,154 | 625,954 |
Income taxes | 10,827 | 9,419 | 29,959 | 32,782 |
Net income | 191,956 | 204,400 | 525,195 | 593,172 |
Net income of consolidated entities attributable to non-controlling interests | 4,145 | 726 | 22,018 | 23,637 |
Net income attributable to AB Unitholders | $ 187,811 | $ 203,674 | $ 503,177 | $ 569,535 |
Net income per AB Unit: | ||||
Basic (in dollars per unit) | $ 0.69 | $ 0.75 | $ 1.86 | $ 2.09 |
Diluted (in dollars per unit) | $ 0.69 | $ 0.75 | $ 1.86 | $ 2.09 |
Investment advisory and services fees | ||||
Revenues: | ||||
Revenue subject to contracts with customers | $ 616,384 | $ 610,063 | $ 1,769,342 | $ 1,782,287 |
Bernstein research services | ||||
Revenues: | ||||
Revenue subject to contracts with customers | 102,014 | 103,581 | 298,240 | 324,192 |
Distribution related | ||||
Revenues: | ||||
Revenue subject to contracts with customers | 118,635 | 104,488 | 327,491 | 317,610 |
Promotion and servicing: | ||||
Distribution-related payments | $ 127,726 | $ 106,372 | $ 349,973 | $ 322,827 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 191,956 | $ 204,400 | $ 525,195 | $ 593,172 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, before reclassification and tax | (12,694) | (4,154) | (12,242) | (14,889) |
Less: reclassification adjustment for (losses) included in net income upon liquidation | 0 | 0 | 0 | (100) |
Foreign currency translation adjustments, before tax | (12,694) | (4,154) | (12,242) | (14,789) |
Income tax benefit | 189 | 0 | 39 | 0 |
Foreign currency translation adjustments, net of tax | (12,505) | (4,154) | (12,203) | (14,789) |
Changes in employee benefit related items: | ||||
Amortization of prior service cost | 6 | 6 | 18 | 17 |
Recognized actuarial gain | 288 | 285 | 840 | 853 |
Changes in employee benefit related items | 294 | 291 | 858 | 870 |
Income tax benefit (expense) | 253 | (5) | 288 | (121) |
Employee benefit related items, net of tax | 547 | 286 | 1,146 | 749 |
Other | 0 | 0 | 0 | 374 |
Other comprehensive (loss) income | (11,958) | (3,868) | (11,057) | (13,666) |
Less: Comprehensive income in consolidated entities attributable to non-controlling interests | 4,295 | 721 | 22,165 | 23,608 |
Comprehensive income attributable to AB Unitholders | $ 175,703 | $ 199,811 | $ 491,973 | $ 555,898 |
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 Income (Loss) | Partners' Capital | Non-redeemable Non-controlling Interests in Consolidated Entities | General Partner’s Capital | Limited Partners' Capital |
Balance, beginning of period at Dec. 31, 2017 | $ (11,494) | $ (42,688) | $ (94,140) | $ 1,564 | $ 41,221 | $ 4,168,841 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 593,172 | 150 | 5,695 | 563,840 | ||||
Cash distributions | (6,551) | (646,440) | ||||||
Long-term incentive compensation plans activity | 0 | 13,051 | 96 | 9,526 | ||||
Issuance (retirement) of AB Units, net | 25,414 | (254) | (25,289) | |||||
Other | 0 | 374 | (3) | 803 | ||||
Capital contributions from General Partner | 19 | |||||||
Compensation plan accrual | 352 | |||||||
Capital contributions from AB Holding | (507) | |||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (82,710) | |||||||
Re-valuation of AB Holding Units held in rabbi trust | (28) | |||||||
Foreign currency translation adjustment, net of tax | (14,789) | (14,760) | (29) | |||||
Purchase of non-controlling interest | 0 | |||||||
Changes in employee benefit related items, net of tax | 749 | 749 | ||||||
Balance, end of period at Sep. 30, 2018 | 3,941,752 | (11,630) | (86,961) | (107,777) | $ 3,940,067 | 1,685 | 40,553 | 4,105,882 |
Balance, beginning of period at Jun. 30, 2018 | (11,705) | (88,317) | (103,915) | 1,659 | 40,886 | 4,135,950 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 204,400 | 32 | 2,037 | 201,637 | ||||
Cash distributions | (1,881) | (184,588) | ||||||
Long-term incentive compensation plans activity | 0 | (1,774) | 44 | 4,490 | ||||
Issuance (retirement) of AB Units, net | 53,289 | (533) | (52,780) | |||||
Other | 0 | 0 | 0 | 1,173 | ||||
Capital contributions from General Partner | 0 | |||||||
Compensation plan accrual | 0 | |||||||
Capital contributions from AB Holding | 75 | |||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (47,846) | |||||||
Re-valuation of AB Holding Units held in rabbi trust | (2,313) | |||||||
Foreign currency translation adjustment, net of tax | (4,154) | (4,148) | (6) | |||||
Purchase of non-controlling interest | 0 | |||||||
Changes in employee benefit related items, net of tax | 286 | 286 | ||||||
Balance, end of period at Sep. 30, 2018 | 3,941,752 | (11,630) | (86,961) | (107,777) | 3,940,067 | 1,685 | 40,553 | 4,105,882 |
Balance, beginning of period at Dec. 31, 2018 | (11,430) | (77,990) | (110,866) | 949 | 40,240 | 4,075,306 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 525,195 | 91 | 5,031 | 498,146 | ||||
Cash distributions | (5,148) | (509,151) | ||||||
Long-term incentive compensation plans activity | 908 | 35,829 | 189 | 18,652 | ||||
Issuance (retirement) of AB Units, net | 31,491 | (315) | (31,216) | |||||
Other | 6,692 | 0 | 0 | 844 | ||||
Capital contributions from General Partner | 0 | |||||||
Compensation plan accrual | 0 | |||||||
Capital contributions from AB Holding | 1,218 | |||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (81,790) | |||||||
Re-valuation of AB Holding Units held in rabbi trust | (9,945) | |||||||
Foreign currency translation adjustment, net of tax | (12,203) | (12,350) | 147 | |||||
Purchase of non-controlling interest | (1,187) | |||||||
Changes in employee benefit related items, net of tax | 1,146 | 1,146 | ||||||
Balance, end of period at Sep. 30, 2019 | 3,865,491 | (9,304) | (95,713) | (122,070) | 3,865,491 | 0 | 39,997 | 4,052,581 |
Balance, beginning of period at Jun. 30, 2019 | (9,839) | (100,453) | (109,963) | 1,020 | 40,016 | 4,053,360 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 191,956 | 17 | 1,877 | 185,934 | ||||
Cash distributions | (1,710) | (169,118) | ||||||
Long-term incentive compensation plans activity | 216 | 9,214 | 4 | 397 | ||||
Issuance (retirement) of AB Units, net | 19,011 | (190) | (18,836) | |||||
Other | 0 | 0 | 0 | 844 | ||||
Capital contributions from General Partner | 0 | |||||||
Compensation plan accrual | 0 | |||||||
Capital contributions from AB Holding | 319 | |||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (23,432) | |||||||
Re-valuation of AB Holding Units held in rabbi trust | (53) | |||||||
Foreign currency translation adjustment, net of tax | (12,505) | (12,654) | 150 | |||||
Purchase of non-controlling interest | (1,187) | |||||||
Changes in employee benefit related items, net of tax | 547 | 547 | ||||||
Balance, end of period at Sep. 30, 2019 | $ 3,865,491 | $ (9,304) | $ (95,713) | $ (122,070) | $ 3,865,491 | $ 0 | $ 39,997 | $ 4,052,581 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 525,195 | $ 593,172 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred sales commissions | 10,348 | 17,362 |
Non-cash long-term incentive compensation expense | 36,737 | 13,051 |
Depreciation and other amortization | 125,729 | 52,599 |
Unrealized (gains) losses on investments | (17,386) | (5,226) |
Other, net | 3,652 | 585 |
Changes in assets and liabilities: | ||
Decrease (increase) in segregated cash and securities | 211,405 | (446,556) |
Decrease (increase) in receivables | 214,522 | (190,660) |
Decrease (increase) in investments | 407,616 | (30,130) |
(Increase) in deferred sales commissions | (20,559) | (3,974) |
(Increase) in right-of-use assets | (8,336) | |
(Increase) decrease in other assets | 20,361 | (121,016) |
(Decrease) increase in payables | (733,097) | 584,282 |
Increase in lease liabilities | (83,161) | |
(Decrease) in accounts payable and accrued expenses | (39,225) | (24,511) |
Increase in accrued compensation and benefits | 334,900 | 395,643 |
Net cash provided by operating activities | 806,018 | 1,114,383 |
Cash flows from investing activities: | ||
Purchases of furniture, equipment and leasehold improvements | (24,311) | (26,993) |
Acquisition of business, net of cash acquired | 5,255 | 0 |
Net cash used in investing activities | (19,056) | (26,993) |
Cash flows from financing activities: | ||
(Repayment) of commercial paper, net | (227,528) | (97,303) |
Proceeds (repayment) of bank loans | 55,000 | (75,000) |
(Decrease) in overdrafts payable | (72,878) | (39,025) |
Distributions to General Partner and Unitholders | (514,299) | (652,991) |
Capital contributions from (to) affiliates | 470 | (1,344) |
Additional investments by AB Holding with proceeds from exercise of compensatory options to buy AB Holding Units | 9,642 | 10,802 |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net | (81,790) | (82,710) |
Other | (2,460) | (2,980) |
Net cash used in financing activities | (710,166) | (1,459,152) |
Effect of exchange rate changes on cash and cash equivalents | (8,090) | (9,139) |
Net increase (decrease) in cash and cash equivalents | 68,706 | (380,901) |
Cash and cash equivalents as of beginning of the period | 653,324 | 998,448 |
Cash and cash equivalents as of end of the period | 722,030 | 617,547 |
Non-cash investing activities: | ||
Fair value of assets acquired (excluding cash acquired of $11.8 million) | 28,966 | 0 |
Fair value of liabilities assumed | 16,837 | 0 |
Non-cash financing activities: | ||
Payables recorded under contingent payment arrangements | 17,384 | 0 |
Company-sponsored investment funds | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Unrealized (gains) losses on investments | (29,522) | (23,755) |
Changes in assets and liabilities: | ||
Decrease (increase) in investments | (155,064) | 966,737 |
(Increase) decrease in other assets | 1,903 | (663,220) |
Cash flows from financing activities: | ||
Subscriptions (redemptions) of investments in consolidated company-sponsored investment funds, net | $ 123,677 | $ (518,601) |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash acquired | $ 11.8 |
Business Description Organizati
Business Description Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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 research, diversified investment management 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 AXA S.A. ("AXA"), AXA Equitable Holdings, Inc. ("EQH") and their respective 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 Management Services – servicing our private clients, including high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, by means of separately-managed accounts, hedge funds, mutual funds and other investment vehicles. • Bernstein Research Services – servicing institutional investors, such as pension fund, hedge fund and mutual fund managers, seeking high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options. We also provide distribution, shareholder servicing, transfer agency services and administrative services to the mutual funds we sponsor. Our high-quality, in-depth research is the foundation of our business. Our research disciplines include economic, fundamental equity, fixed income and quantitative research. In addition, we have experts focused on multi-asset strategies, wealth management and alternative investments. We provide a broad range of investment services with expertise in: • Actively-managed equity strategies, with global and regional portfolios across capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities; • Actively-managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; • Passive management, including index and enhanced index strategies; • Alternative investments, including hedge funds, fund of funds, direct lending and private equity; and • Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds. Our services span various investment disciplines, including market capitalization ( e.g. , large-, mid- and small-cap equities), term ( e.g. , long-, intermediate- and short-duration debt securities), and geographic location ( e.g. , U.S., international, global, emerging markets, regional and local), in major markets around the world. Organization During the second quarter of 2018, AXA completed the sale of a minority stake in EQH through an initial public offering ("IPO"). Since then, AXA has completed additional offerings, most recently during the second quarter of 2019. As a result, AXA owned 39.1% of the outstanding common stock of EQH as of September 30, 2019 . AXA has announced its intention to sell its entire remaining interest in EQH over time, subject to market conditions and other factors. AXA is under no obligation to do so and retains the sole discretion to determine the timing of any future sales of shares of EQH common stock. As of September 30, 2019 , EQH owned approximately 4.2% 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% general partnership interest in AB. As of September 30, 2019 , the ownership structure of AB, including limited partnership units outstanding as well as the general partner's 1% interest, was as follows: EQH and its subsidiaries 63.8 % AB Holding 35.4 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 65.3% economic interest in AB as of September 30, 2019 . 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, 2018 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). 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 voting interest entities (“VOEs”) in which AB has a controlling financial interest. Non-controlling interests on the condensed consolidated statements of financial condition include the portion of consolidated company-sponsored investment funds in which we do not have direct equity ownership. All significant inter-company transactions and balances among the consolidated entities have been eliminated. Reclassifications During 2019, prior period amounts for research and miscellaneous fees related to our brokers dealers previously presented as changes in other assets are now presented as changes in receivables; and certain income taxes payable and receivable as well as deferred tax assets and liabilities previously presented as changes in payables are now presented as changes in other assets in the condensed consolidated statements of cash flows to conform to the current period's presentation. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases . This pronouncement, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-02 is now referred to as Accounting Standards Codification 842 ("ASC 842"). The standard requires a lessee to record most leases on its balance sheet while also disclosing key information about those lease arrangements. The classification criteria to distinguish between finance and operating leases are generally consistent with the classification criteria to distinguish between capital and operating leases under previous lease accounting guidance. We adopted this new standard on January 1, 2019 using the modified retrospective method. Prior comparable periods will not be adjusted under this method. We applied several practical expedients offered by ASC 842 upon adoption of this standard. These included continuing to account for existing leases based on judgments made under legacy GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used a practical expedient to use hindsight in determining the lease terms (using knowledge and expectations as of the standard's adoption date instead of the previous assumptions under legacy GAAP) and evaluating impairment of our right-of-use assets in the transition period (using our most up-to-date information). Adoption of this standard resulted in the recording of operating right-of-use assets and lease liabilities of $438.7 million and $574.5 million , respectively, and financing right-of-use assets and lease liabilities of $2.4 million as of January 1, 2019. The operating right-of-use assets recognized as of January 1, 2019 are net of deferred rent of $50.0 million and liabilities associated with previously recognized impairments of $85.8 million . See Note 13 , Leases , for additional disclosures. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits a company to reclassify the disproportionate income tax effects of the 2017 Tax Cuts and Job Act ("2017 Tax Act") on items within Accumulated Other Comprehensive Income ("AOCI") to retained earnings. The FASB refers to these amounts as "stranded tax effects." The ASU also requires certain new disclosures, some of which are applicable for all companies. We adopted this standard on January 1, 2019. The adoption of this standard had no impact on our financial condition or results of operations. Accounting Pronouncements Not Yet Adopted in 2019 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) . This new guidance relates to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The new guidance is not expected to have a material impact on our financial condition or results of operations. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. As a result of the revised guidance, a goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019 and will be applied prospectively. The revised guidance is not expected to have a material impact on our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The amendment modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The revised guidance is effective for all companies for fiscal years beginning after December 15, 2019, and interim periods within those years. Companies are permitted to early adopt any eliminated or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The revised guidance is not expected to have a material impact on our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20) . The amendment modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The revised guidance is effective for financial statements issued for fiscal years ending after December 15, 2020, with early adoption permitted. The revised guidance is not expected to have a material impact on our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements that currently exist in GAAP for capitalizing implementation costs incurred to develop or obtain internal-use software. Implementation costs would either be capitalized or expensed as incurred depending on the project stage. All costs in the preliminary and post-implementation project stages are expensed as incurred, while certain costs within the application development stage are capitalized. The revised guidance is effective for financial statements issued for fiscal years ending after December 15, 2019, with early adoption permitted. The revised guidance will be adopted prospectively and is not expected to have a material impact on our financial condition or results of operations. Leases We determine if an arrangement is a lease at inception. Both operating and finance leases are included in the right-of-use (“ROU”) assets and lease liabilities in our condensed consolidated statement of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use our incremental borrowing rate based on the information available as of the date we adopted ASC 842 in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis, and the ROU assets and lease liabilities are adjusted when it is reasonably certain that an option will be exercised. When calculating the measurement of ROU assets and lease liabilities, we utilize the fixed payments associated with the lease and do not include other variable contractual obligations, such as operating expenses, real estate taxes and employee parking. These costs are accounted for as period costs and expensed as incurred. Additionally, we exclude any intangible assets such as software licensing agreements as stated in ASC 842-10-15-1. These arrangements will continue to follow the guidance of ASC 350, Intangibles - Goodwill and Other |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenues for the three and nine months ended September 30, 2019 and 2018 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 608,765 $ 568,918 $ 1,746,072 $ 1,699,584 Performance-based fees 7,619 41,145 23,270 82,703 Bernstein research services 102,014 103,581 298,240 324,192 Distribution revenues All-in-management fees 77,110 62,807 207,377 193,884 12b-1 fees 20,287 22,136 60,055 66,746 Other 21,238 19,545 60,059 56,980 Other revenues Shareholder servicing fees 20,020 19,017 57,413 57,533 Other 4,095 4,293 12,609 15,827 861,148 841,442 2,465,095 2,497,449 Not subject to contracts with customers: Dividend and interest income, net of interest expense 11,904 7,467 33,439 35,204 Investment gains (losses) 4,433 565 31,117 26,860 Other revenues 382 702 1,477 3,188 16,719 8,734 66,033 65,252 Total net revenues $ 877,867 $ 850,176 $ 2,531,128 $ 2,562,701 |
Long-term Incentive Compensatio
Long-term Incentive Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
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. During the three and nine months ended September 30, 2019 , we purchased 0.9 million and 2.9 million AB Holding Units for $25.1 million and $83.7 million (on a trade date basis), respectively. These amounts reflect open-market purchases of 0.6 million and 2.5 million AB Holding Units for $15.3 million and $70.6 million , respectively, with the remainder relating to purchases of AB Holding Units from employees to allow them to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. During the three and nine months ended September 30, 2018 , AB purchased 1.6 million and 2.9 million AB Holding Units for $48.0 million and $83.2 million , respectively (on a trade date basis). These amounts reflect open-market purchases of 1.6 million and 2.8 million AB Holding Units for $48.0 million and $80.9 million , respectively, with the remainder relating to purchases of AB Holding Units from employees to allow them 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 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 in accordance with the terms of the plan. Repurchases are subject to regulations promulgated by the SEC as well as certain price, market volume and timing constraints specified in the plan. The plan adopted during the third quarter of 2019 expired at the close of business on October 23, 2019. We may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under our incentive compensation award program and for other corporate purposes. During the first nine months of 2019 and 2018 , we granted to employees and Eligible Directors 1.9 million and 2.5 million restricted AB Holding Unit awards, respectively. We used AB Holding Units repurchased during the periods and newly-issued AB Holding Units to fund these awards. During the first nine months of 2019 and 2018 , AB Holding issued 0.4 million and 0.6 million AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $9.6 million and $10.8 million |
Net Income per Unit
Net Income per Unit | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Unit [Abstract] | |
Net Income per Unit | Net Income per Unit Basic net income per unit is derived by reducing net income for the 1% general partnership interest and dividing the remaining 99% by the basic weighted average number of limited partnership units outstanding for each period. Diluted net income per unit is derived by reducing net income for the 1% general partnership interest and dividing the remaining 99% by the total of the diluted weighted average number of limited partnership units outstanding for each period. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 187,811 $ 203,674 $ 503,177 $ 569,535 Weighted average limited partnership units outstanding – basic 268,567 269,603 268,131 269,783 Dilutive effect of compensatory options to buy AB Holding Units 36 245 52 282 Weighted average limited partnership units outstanding – diluted 268,603 269,848 268,183 270,065 Basic net income per AB Unit $ 0.69 $ 0.75 $ 1.86 $ 2.09 Diluted net income per AB Unit $ 0.69 $ 0.75 $ 1.86 $ 2.09 For both the three and nine months ended September 30, 2019 , we excluded 29,056 options from the diluted net income computation due to their anti-dilutive effect. For the three and nine months ended September 30, 2018 , we excluded 824,245 options and 844,973 options, respectively, from the diluted net income computation due to their anti-dilutive effect. |
Cash Distributions
Cash Distributions | 9 Months Ended |
Sep. 30, 2019 | |
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. On October 24, 2019 , the General Partner declared a distribution of $0.70 per AB Unit, representing a distribution of Available Cash Flow for the three months ended September 30, 2019 . The General Partner, as a result of its 1% general partnership interest, is entitled to receive 1% of each distribution. The distribution is payable on November 14, 2019 to holders of record on November 4, 2019 |
Cash and Securities Segregated
Cash and Securities Segregated Under Federal Regulations and Other Requirements | 9 Months Ended |
Sep. 30, 2019 | |
Brokers and Dealers [Abstract] | |
Cash and Securities Segregated Under Federal Regulations and Other Requirements | Cash and Securities Segregated Under Federal Regulations and Other Requirements As of September 30, 2019 and December 31, 2018 , $1.0 billion and $1.2 billion |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of: September 30, December 31, (in thousands) U.S. Treasury Bills $ 74,342 $ 392,424 Equity securities: Long-term incentive compensation-related 35,130 38,883 Seed capital 73,677 105,951 Other 42,518 73,409 Exchange-traded options 5,803 2,568 Investments in limited partnership hedge funds: Long-term incentive compensation-related 13,646 13,546 Seed capital 46,927 67,153 Time deposits 18,070 8,783 Other 13,092 11,627 Total investments $ 323,205 $ 714,344 Total investments related to long-term incentive compensation obligations of $48.8 million and $52.4 million as of September 30, 2019 and December 31, 2018 , 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 the 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 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. In regard to 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 September 30, 2019 and December 31, 2018 , our total seed capital investments were $379.8 million and $391.6 million , respectively. Seed capital investments in unconsolidated company-sponsored investment funds are valued using published net asset values or non-published net asset values if they are not listed on an active exchange but have net asset values that are comparable to funds with published net asset values and have no redemption restrictions. In addition, we also have long positions in corporate equities and long exchange-traded options traded through our options desk. The portion of unrealized gains (losses) related to equity securities, as defined by ASC 321-10, held as of September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Net gains recognized during the period $ 2,382 $ 5,485 $ 23,962 $ 6,817 Less: net gains recognized during the period on equity securities sold during the period 1,716 3,424 6,257 1,645 Unrealized gains recognized during the period on equity securities held $ 666 $ 2,061 $ 17,705 $ 5,172 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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 into 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 September 30, 2019 and December 31, 2018 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 Asset Derivatives Liability Derivatives (in thousands) September 30, 2019: Exchange-traded futures $ 184,418 $ 1,282 $ 240 Currency forwards 64,489 8,388 7,716 Interest rate swaps 93,192 2,395 3,046 Credit default swaps 232,116 2,056 5,567 Total return swaps 89,023 589 89 Total derivatives $ 663,238 $ 14,710 $ 16,658 December 31, 2018: Exchange-traded futures $ 218,657 $ 1,594 $ 2,534 Currency forwards 87,019 7,647 7,582 Interest rate swaps 112,658 1,649 1,959 Credit default swaps 94,657 2,888 2,685 Total return swaps 99,038 3,301 62 Total derivatives $ 612,029 $ 17,079 $ 14,822 As of September 30, 2019 and December 31, 2018 , 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 and nine months ended September 30, 2019 and 2018 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Exchange-traded futures $ (1,352 ) $ 157 $ (9,903 ) $ 1,699 Currency forwards 1,453 673 1,338 947 Interest rate swaps (81 ) 157 (726 ) 424 Credit default swaps (449 ) (1,117 ) (4,254 ) (1,212 ) Total return swaps 314 (5,625 ) (15,452 ) (5,665 ) Net (losses) gains on derivative instruments $ (115 ) $ (5,755 ) $ (28,997 ) $ (3,807 ) We may be exposed to credit-related losses in the event of nonperformance 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 September 30, 2019 and December 31, 2018 , we held $0.3 million and $4.8 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 is the most commonly used measure of volume in the derivative market, it is not used as a measure of credit risk. Generally, the current credit exposure of our derivative contracts is limited to the net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received. A derivative with positive value (a derivative asset) indicates existence of credit risk because the counterparty would owe us if the contract were closed. Alternatively, a derivative contract with negative value (a derivative liability) indicates we would owe money to the counterparty if the contract were closed. Generally, if there is more than one derivative transaction with a single counterparty, a master netting arrangement exists with respect to derivative transactions with that counterparty to provide for aggregate net settlement. Certain of our standardized contracts for over-the-counter derivative transactions (“ISDA Master Agreements”) contain credit risk related contingent provisions pertaining to each counterparty’s credit rating. In some ISDA Master Agreements, if the counterparty’s credit rating, or in some agreements, our assets under management (“AUM”), falls below a specified threshold, either a default or a termination event permitting the counterparty to terminate the ISDA Master Agreement would be triggered. In all agreements that provide for collateralization, various levels of collateralization of net liability positions are applicable, depending on the credit rating of the counterparty. As of September 30, 2019 and December 31, 2018 , we delivered $1.9 million and $4.5 million , respectively, of cash collateral into brokerage accounts. We report this cash collateral in cash and cash equivalents in our condensed consolidated statements of financial condition. As of September 30, 2019 and December 31, 2018 , we held $5.8 million and $2.6 million , respectively, of long exchange-traded equity options, which are included in other investments on our condensed consolidated statements of financial condition. In addition, as of September 30, 2019 and December 31, 2018 , we held $5.2 million and $3.8 million , respectively, of short exchange-traded equity options, which are included in securities sold not yet purchased on our condensed consolidated statements of financial condition. Our options desk provides our clients with equity derivative strategies and execution for exchange-traded options on single stocks, exchange-traded funds and indices. While predominately agency-based, the options desk may commit capital to facilitate a client’s transaction. Our options desk hedges the risks associated with this activity by taking offsetting positions in equities. For the three and nine months ended September 30, 2019 , we recognized $3.6 million and $14.7 million , respectively, of losses on equity option activity. For the three and nine months ended September 30, 2018 , we recognized a $5.7 million gain and a $3.2 million |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Received Net Amount (in thousands) September 30, 2019: Securities borrowed $ 22,596 $ — $ 22,596 $ (22,596 ) $ — $ — Derivatives $ 14,710 $ — $ 14,710 $ — $ (251 ) $ 14,459 Long exchange-traded options $ 5,803 $ — $ 5,803 $ — $ — $ 5,803 December 31, 2018: Securities borrowed $ 64,856 $ — $ 64,856 $ (64,217 ) $ — $ 639 Derivatives $ 17,079 $ — $ 17,079 $ — $ (4,831 ) $ 12,248 Long exchange-traded options $ 2,568 $ — $ 2,568 $ — $ — $ 2,568 Offsetting of liabilities as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Pledged Net Amount (in thousands) September 30, 2019: Securities loaned $ — $ — $ — $ — $ — $ — Derivatives $ 16,658 $ — $ 16,658 $ — $ (1,867 ) $ 14,791 Short exchange-traded options $ 5,152 $ — $ 5,152 $ — $ — $ 5,152 December 31, 2018: Securities loaned $ 59,526 $ — $ 59,526 $ (59,526 ) $ — $ — Derivatives $ 14,822 $ — $ 14,822 $ — $ (4,458 ) $ 10,364 Short exchange-traded options $ 3,782 $ — $ 3,782 $ — $ — $ 3,782 Cash collateral, whether pledged or received on derivative instruments, is not considered material and, accordingly, is not disclosed by counterparty. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total September 30, 2019: Money markets $ 115,022 $ — $ — $ — $ — $ 115,022 Securities segregated (U.S. Treasury Bills) — 958,149 — — — 958,149 Derivatives 1,282 13,428 — — — 14,710 Investments U.S. Treasury Bills — 74,342 — — — 74,342 Equity securities 137,921 12,977 118 309 — 151,325 Long exchange-traded options 5,803 — — — — 5,803 Limited partnership hedge funds (2) — — — — 60,573 60,573 Time deposits (3) — — — — 18,070 18,070 Other investments 5,418 — — — 7,674 13,092 Total investments 149,142 87,319 118 309 86,317 323,205 Total assets measured at fair value $ 265,446 $ 1,058,896 $ 118 $ 309 $ 86,317 $ 1,411,086 Securities sold not yet purchased Short equities – corporate $ 8,538 $ — $ — $ — $ — $ 8,538 Short exchange-traded options 5,152 — — — — 5,152 Derivatives 240 16,418 — — — 16,658 Contingent payment arrangements — — 26,432 — — 26,432 Total liabilities measured at fair value $ 13,930 $ 16,418 $ 26,432 $ — $ — $ 56,780 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2018: Money markets $ 102,888 $ — $ — $ — $ — $ 102,888 Securities segregated (U.S. Treasury Bills) — 1,169,554 — — — 1,169,554 Derivatives 1,594 15,485 — — — 17,079 Investments U.S. Treasury Bills — 392,424 — — — 392,424 Equity securities 209,414 8,372 142 315 — 218,243 Long exchange-traded options 2,568 — — — — 2,568 Limited partnership hedge funds (2) — — — — 80,699 80,699 Time deposits (3) — — — — 8,783 8,783 Other investments 4,269 — — — 7,358 11,627 Total investments 216,251 400,796 142 315 96,840 714,344 Total assets measured at fair value $ 320,733 $ 1,585,835 $ 142 $ 315 $ 96,840 $ 2,003,865 Securities sold not yet purchased Short equities – corporate $ 4,841 $ — $ — $ — $ — $ 4,841 Short exchange-traded options 3,782 — — — — 3,782 Derivatives 2,534 12,288 — — — 14,822 Contingent payment arrangements — — 7,336 — — 7,336 Total liabilities measured at fair value $ 11,157 $ 12,288 $ 7,336 $ — $ — $ 30,781 (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 include (i) an investment in a software publishing company that does not have a readily available fair value ( $1.0 million as of September 30, 2019 ), (ii) an investment in a start-up company that does not have a readily available fair value ( $0.9 million as of both September 30, 2019 and December 31, 2018 ), (iii) an investment in an equity method investee that is not measured at fair value in accordance with GAAP ( $2.5 million as of September 30, 2019 and $3.4 million as of December 31, 2018 ), and (iv) broker dealer exchange memberships that are not measured at fair value in accordance with GAAP ( $3.3 million as of September 30, 2019 and $3.1 million as of December 31, 2018 ). We provide below a description of the fair value methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: • Money markets : We invest excess cash in various money market funds that are valued based on quoted prices in active markets; these are included in Level 1 of the valuation hierarchy. • Treasury Bills : We hold U.S. Treasury Bills, which are primarily segregated in a special reserve bank custody account as required by Rule 15c3-3 of the Exchange Act. These securities are valued based on quoted yields in secondary markets and are included in Level 2 of the valuation hierarchy. • Equity securities : Our equity securities consist principally of company-sponsored mutual funds with NAVs and various separately-managed portfolios consisting primarily of equity and fixed income mutual funds with quoted prices in active markets, which are included in Level 1 of the valuation hierarchy. In addition, some securities are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy. • Derivatives : We hold exchange-traded futures with counterparties that are included in Level 1 of the valuation hierarchy. In addition, we also hold currency forward contracts, interest rate swaps, credit default swaps, option swaps and total return swaps with counterparties that are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy. • Options : We hold long exchange-traded options that are included in Level 1 of the valuation hierarchy. • Securities sold not yet purchased : Securities sold not yet purchased, primarily reflecting short positions in equities and exchange-traded options, are included in Level 1 of the valuation hierarchy. • Contingent payment arrangements : Contingent payment arrangements relate to contingent payment liabilities associated with various acquisitions. At each reporting date, we estimate the fair values of the contingent consideration expected to be paid based upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. During the nine months ended September 30, 2019 , we had a transfer of $3.2 million from Level 2 to Level 1; 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 private equity and equity securities, is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance as of beginning of period $ 117 $ 117 $ 142 $ 1,071 Purchases — — — — Sales — — — — Realized gains (losses), net — — — — Unrealized gains (losses), net 1 — (24 ) (954 ) Balance as of end of period $ 118 $ 117 $ 118 $ 117 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. As of December 31, 2017, we had an investment in a private equity fund focused exclusively on the energy sector (fair value of $1.0 million ) that was classified as Level 3 and written down during the second quarter of 2018.This investment's valuation was based on a market approach, considering recent transactions in the fund and the industry. We acquired Autonomous Research LLP ("Autonomous") in 2019 and Ramius Alternative Solutions LLC in 2016, both of which included 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance as of beginning of period $ 25,603 $ 10,960 $ 7,336 $ 10,855 Addition — — 17,384 — Accretion 829 53 1,712 158 Payments — — — — Balance as of end of period $ 26,432 $ 11,013 $ 26,432 $ 11,013 During 2018, we amended the contingent payment relating to our 2016 acquisition by modifying the earnout structure and extending it one year. As part of this amendment, we recorded a change in estimate and wrote off $2.4 million related to the contingent consideration in the fourth quarter of 2018. As of September 30, 2019 and December 31, 2018 , acquisition-related contingent liabilities with a fair value of $26.4 million and $7.3 million , respectively, remain relating to our 2019 and 2016 acquisitions. For our 2019 acquisition the contingent consideration liability, payable in five years , was valued using expected revenue growth rates ranging from 0.7% to 2.5% per year and a discount rate of 10.4% , reflecting a 3.5% risk-free rate, based on our cost of debt, and a 6.9% market price of risk adjustment rate. The 2016 acquisition was valued using a revenue growth rate of 26% and a discount rate ranging from 3.2% to 3.7% . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We did not have any material assets or liabilities that were measured at fair value for impairment on a nonrecurring basis during the nine months ended September 30, 2019 or during the year ended December 31, 2018 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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. AB may be involved in various matters, including regulatory inquiries, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that we could incur losses pertaining to these matters, but we cannot currently estimate any such losses. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. Since 2010, we have sub-leased over one million square feet of office space. The liability relating to our global space consolidation initiatives was $85.8 million as of December 31, 2018 ("Liability"). Upon adoption of ASC 842 on January 1, 2019, we recorded the Liability as a reduction to our operating right-of-use assets. Leases included in the condensed consolidated statement of financial condition as of September 30, 2019 were as follows: Classification September 30, 2019 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 378,083 Operating lease liabilities Lease liabilities 488,592 Finance Leases Property and equipment, gross Right-of-use assets 3,436 Accumulated depreciation Right-of-use assets (932 ) Property and equipment, net 2,504 Finance lease liabilities Lease liabilities 2,535 The components of lease expense included in the condensed consolidated statement of income as of September 30, 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Classification 2019 2019 (in thousands) Operating lease cost General and administrative $ 26,181 $ 79,829 Financing lease cost: Amortization of right-of-use assets General and administrative 355 932 Interest on lease liabilities Interest expense 20 52 Total finance lease cost 375 984 Variable lease cost (1) General and administrative 10,588 30,337 Sublease income General and administrative (14,021 ) (42,472 ) Net lease cost $ 23,123 $ 68,678 (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) 2019 (excluding the nine months ended September 30, 2019) $ 28,748 $ 377 $ 29,125 2020 112,678 1,251 113,929 2021 102,964 607 103,571 2022 89,187 245 89,432 2023 81,972 126 82,098 Thereafter 121,626 23 121,649 Total lease payments 537,175 2,629 539,804 Less interest (48,583 ) (94 ) Present value of lease liabilities $ 488,592 $ 2,535 During October 2018, we signed a lease, which commences in mid-2020, relating to 205,000 square feet of space at our new Nashville headquarters. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 15 year initial lease term is $126 million . During April 2019, we signed a lease, which commences in 2024, relating to approximately 190,000 square feet of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 year lease term is approximately $448 million . Lease term and discount rate: Weighted average remaining lease term (years) Operating leases 5.38 Finance leases 2.43 Weighted average discount rate Operating leases 3.51 % Finance leases 3.14 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 99,490 Operating cash flows from financing leases 52 Financing cash flows from finance leases 901 Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 10,565 Finance leases 1,080 (1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statements of cash flows. |
Leases | Leases We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. Since 2010, we have sub-leased over one million square feet of office space. The liability relating to our global space consolidation initiatives was $85.8 million as of December 31, 2018 ("Liability"). Upon adoption of ASC 842 on January 1, 2019, we recorded the Liability as a reduction to our operating right-of-use assets. Leases included in the condensed consolidated statement of financial condition as of September 30, 2019 were as follows: Classification September 30, 2019 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 378,083 Operating lease liabilities Lease liabilities 488,592 Finance Leases Property and equipment, gross Right-of-use assets 3,436 Accumulated depreciation Right-of-use assets (932 ) Property and equipment, net 2,504 Finance lease liabilities Lease liabilities 2,535 The components of lease expense included in the condensed consolidated statement of income as of September 30, 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Classification 2019 2019 (in thousands) Operating lease cost General and administrative $ 26,181 $ 79,829 Financing lease cost: Amortization of right-of-use assets General and administrative 355 932 Interest on lease liabilities Interest expense 20 52 Total finance lease cost 375 984 Variable lease cost (1) General and administrative 10,588 30,337 Sublease income General and administrative (14,021 ) (42,472 ) Net lease cost $ 23,123 $ 68,678 (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) 2019 (excluding the nine months ended September 30, 2019) $ 28,748 $ 377 $ 29,125 2020 112,678 1,251 113,929 2021 102,964 607 103,571 2022 89,187 245 89,432 2023 81,972 126 82,098 Thereafter 121,626 23 121,649 Total lease payments 537,175 2,629 539,804 Less interest (48,583 ) (94 ) Present value of lease liabilities $ 488,592 $ 2,535 During October 2018, we signed a lease, which commences in mid-2020, relating to 205,000 square feet of space at our new Nashville headquarters. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 15 year initial lease term is $126 million . During April 2019, we signed a lease, which commences in 2024, relating to approximately 190,000 square feet of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 year lease term is approximately $448 million . Lease term and discount rate: Weighted average remaining lease term (years) Operating leases 5.38 Finance leases 2.43 Weighted average discount rate Operating leases 3.51 % Finance leases 3.14 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 99,490 Operating cash flows from financing leases 52 Financing cash flows from finance leases 901 Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 10,565 Finance leases 1,080 (1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statements of cash flows. |
Leases | Leases We lease office space, furniture and office equipment under various operating and financing leases. Our current leases have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. Since 2010, we have sub-leased over one million square feet of office space. The liability relating to our global space consolidation initiatives was $85.8 million as of December 31, 2018 ("Liability"). Upon adoption of ASC 842 on January 1, 2019, we recorded the Liability as a reduction to our operating right-of-use assets. Leases included in the condensed consolidated statement of financial condition as of September 30, 2019 were as follows: Classification September 30, 2019 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 378,083 Operating lease liabilities Lease liabilities 488,592 Finance Leases Property and equipment, gross Right-of-use assets 3,436 Accumulated depreciation Right-of-use assets (932 ) Property and equipment, net 2,504 Finance lease liabilities Lease liabilities 2,535 The components of lease expense included in the condensed consolidated statement of income as of September 30, 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Classification 2019 2019 (in thousands) Operating lease cost General and administrative $ 26,181 $ 79,829 Financing lease cost: Amortization of right-of-use assets General and administrative 355 932 Interest on lease liabilities Interest expense 20 52 Total finance lease cost 375 984 Variable lease cost (1) General and administrative 10,588 30,337 Sublease income General and administrative (14,021 ) (42,472 ) Net lease cost $ 23,123 $ 68,678 (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) 2019 (excluding the nine months ended September 30, 2019) $ 28,748 $ 377 $ 29,125 2020 112,678 1,251 113,929 2021 102,964 607 103,571 2022 89,187 245 89,432 2023 81,972 126 82,098 Thereafter 121,626 23 121,649 Total lease payments 537,175 2,629 539,804 Less interest (48,583 ) (94 ) Present value of lease liabilities $ 488,592 $ 2,535 During October 2018, we signed a lease, which commences in mid-2020, relating to 205,000 square feet of space at our new Nashville headquarters. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 15 year initial lease term is $126 million . During April 2019, we signed a lease, which commences in 2024, relating to approximately 190,000 square feet of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 year lease term is approximately $448 million . Lease term and discount rate: Weighted average remaining lease term (years) Operating leases 5.38 Finance leases 2.43 Weighted average discount rate Operating leases 3.51 % Finance leases 3.14 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 99,490 Operating cash flows from financing leases 52 Financing cash flows from finance leases 901 Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 10,565 Finance leases 1,080 (1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statements of cash flows. |
Consolidated Company-Sponsored
Consolidated Company-Sponsored Investment Funds | 9 Months Ended |
Sep. 30, 2019 | |
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 in regard to 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: September 30, 2019 December 31, 2018 (in thousands) VIEs VOEs Total VIEs VOEs Total Cash and cash equivalents $ 14,647 $ 2,362 $ 17,009 $ 11,880 $ 1,238 $ 13,118 Investments 372,668 163,614 536,282 217,840 133,856 351,696 Other assets 20,418 15,982 36,400 6,024 16,816 22,840 Total assets $ 407,733 $ 181,958 $ 589,691 $ 235,744 $ 151,910 $ 387,654 Liabilities $ 17,892 $ 20,181 $ 38,073 $ 5,215 $ 17,395 $ 22,610 Redeemable non-controlling interest 244,327 47,197 291,524 117,523 28,398 145,921 Partners' capital attributable to AB Unitholders 145,515 114,579 260,094 113,006 106,117 219,123 Total liabilities, redeemable non-controlling interest and partners' capital $ 407,734 $ 181,957 $ 589,691 $ 235,744 $ 151,910 $ 387,654 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 September 30, 2019 and December 31, 2018 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient Total September 30, 2019: Investments - VIEs $ 27,424 $ 339,350 $ 5,894 $ — $ 372,668 Investments - VOEs 94,725 68,382 507 — 163,614 Derivatives - VIEs 164 4,520 — — 4,684 Derivatives - VOEs 38 8,089 — — 8,127 Total assets measured at fair value $ 122,351 $ 420,341 $ 6,401 $ — $ 549,093 Derivatives - VIEs 521 4,299 — — 4,820 Derivatives - VOEs 57 5,447 — — 5,504 Total liabilities measured at fair value $ 578 $ 9,746 $ — $ — $ 10,324 December 31, 2018: Investments - VIEs $ 22,149 $ 187,626 $ 8,065 $ — $ 217,840 Investments - VOEs 68,063 65,485 308 — 133,856 Derivatives - VIEs 1,486 1,924 — — 3,410 Derivatives - VOEs 124 3,692 — — 3,816 Total assets measured at fair value $ 91,822 $ 258,727 $ 8,373 $ — $ 358,922 Derivatives - VIEs $ 72 $ 3,819 $ — $ — $ 3,891 Derivatives - VOEs 197 3,633 — — 3,830 Total liabilities measured at fair value $ 269 $ 7,452 $ — $ — $ 7,721 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance as of beginning of period $ 11,834 $ 5,871 $ 8,373 $ 2,264 Transfers (out) in (3,602 ) (406 ) (3,788 ) (82 ) Purchases 1,187 1,247 8,978 7,381 Sales (2,996 ) (197 ) (7,345 ) (2,820 ) Realized gains (losses), net 12 2 35 (97 ) Unrealized gains (losses), net (40 ) (25 ) 129 (158 ) Accrued discounts 6 2 19 6 Balance as of end of period $ 6,401 $ 6,494 $ 6,401 $ 6,494 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 September 30, 2019 and December 31, 2018 , the VIEs held $0.1 million and $0.5 million (net), respectively, of futures, forwards and swaps within their portfolios. For the three and nine months ended September 30, 2019 , we recognized $0.6 million and $3.3 million of gains, respectively, on these derivatives. For the three and nine months ended September 30, 2018 we recognized $0.5 million of losses and $0.4 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 September 30, 2019 and December 31, 2018 , the VIEs held $1.4 million and $0.9 million , respectively, of cash collateral payable to trade counterparties. This obligation to return cash is reported in the liabilities of consolidated company-sponsored investment funds in our condensed consolidated statements of financial condition. As of September 30, 2019 and December 31, 2018 , the VIEs delivered $3.4 million and $0.8 million , respectively, of cash collateral into brokerage accounts. The VIEs report this cash collateral in the consolidated company-sponsored investment funds cash and cash equivalents in our condensed consolidated statements of financial condition. As of September 30, 2019 and December 31, 2018 , the VOEs held $2.6 million and $0.1 million , respectively, (net) of futures, forwards, options and swaps within their portfolios. For the three and nine months ended September 30, 2019 , we recognized $1.0 million and $0.5 million of gains, respectively, on these derivatives. For the three and nine months ended September 30, 2018 we recognized $0.2 million and $1.5 million of gains, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the condensed consolidated statements of income. As of September 30, 2019 and December 31, 2018 , the VOEs held $0.6 million and $0.2 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 September 30, 2019 and December 31, 2018 , the VOEs delivered $1.3 million and $0.5 million , respectively, of cash collateral in brokerage accounts. The VOEs report this cash collateral in the consolidated company-sponsored investment funds cash and cash equivalents in our condensed consolidated statements of financial condition. Offsetting Assets and Liabilities Offsetting of derivative assets of consolidated company-sponsored investment funds as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Received Net Amount (in thousands) September 30, 2019: Derivatives - VIEs $ 4,684 $ — $ 4,684 $ — $ (1,351 ) $ 3,333 Derivatives - VOEs $ 8,127 $ — $ 8,127 $ — $ (597 ) $ 7,530 December 31, 2018: Derivatives - VIEs $ 3,410 $ — $ 3,410 $ — $ (856 ) $ 2,554 Derivatives - VOEs $ 3,816 $ — $ 3,816 $ — $ (225 ) $ 3,591 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Pledged Net Amount (in thousands) September 30, 2019: Derivatives - VIEs $ 4,820 $ — $ 4,820 $ — $ (3,368 ) $ 1,452 Derivatives - VOEs $ 5,504 $ — $ 5,504 $ — $ (1,291 ) $ 4,213 December 31, 2018: Derivatives - VIEs $ 3,891 $ — $ 3,891 $ — $ (829 ) $ 3,062 Derivatives - VOEs $ 3,830 $ — $ 3,830 $ — $ (547 ) $ 3,283 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 September 30, 2019 , the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $72.0 billion , and our maximum risk of loss is our investment of $11.0 million in these VIEs and our advisory fee receivables from these VIEs, which are not material. |
Units Outstanding
Units Outstanding | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Units Outstanding | Units Outstanding Changes in AB Units outstanding during the nine -month period ended September 30, 2019 were as follows: Outstanding as of December 31, 2018 268,850,276 Options exercised 443,800 Units issued 2,073,854 Units retired (1) (3,184,973 ) Balance as of September 30, 2019 268,182,957 (1) Includes 982 AB Units purchased in private transactions and retired during the first nine months of 2019 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2019 and December 31, 2018 , AB had $304.7 million and $523.2 million , respectively, in commercial paper outstanding with weighted average interest rates of approximately 2.2% and 2.7% , respectively. Debt included in the statement of financial condition is presented net of issuance costs of $1.6 million and $1.9 million as of September 30, 2019 and December 31, 2018 , respectively. 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 nine months of 2019 and the full year 2018 were $464.5 million and $350.3 million , respectively, with weighted average interest rates of approximately 2.6% and 2.0% , respectively. AB has a $200.0 million committed, unsecured senior revolving credit facility (the "Revolver") with a leading international bank, which matures on November 16, 2021. The Revolver is available for AB's and SCB LLC's business purposes, including the provision of additional liquidity to meet funding requirements primarily related to SCB LLC's operations. Both AB and SCB LLC can draw directly under the Revolver and management expects to draw on the Revolver from time to time. AB has agreed to guarantee the obligations of SCB LLC under the Revolver. The Revolver contains affirmative, negative and financial covenants which are identical to those of AB's $800.0 million committed, unsecured senior revolving credit facility. As of September 30, 2019 and December 31, 2018 , we had $80.0 million and $25.0 million outstanding under the Revolver, respectively, with interest rates of 2.9% and 3.4% , respectively. Average daily borrowing under the Revolver during the first nine months of 2019 and full year 2018 were $28.0 million and $19.4 million , respectively, with weighted average interest rates of approximately 3.4% and 2.8% , respectively. |
Non-controlling Interests
Non-controlling Interests | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | Non-controlling Interests Non-controlling interest in net income for the three and nine months ended September 30, 2019 and 2018 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Non-redeemable non-controlling interests: Consolidated company-sponsored investment funds $ — $ (46 ) $ — $ (99 ) Other 18 78 92 249 Total non-redeemable non-controlling interests 18 32 92 150 Redeemable non-controlling interests: Consolidated company-sponsored investment funds 4,127 694 21,926 23,487 Total non-controlling interest in net income $ 4,145 $ 726 $ 22,018 $ 23,637 Non-redeemable non-controlling interest as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Consolidated company-sponsored investment funds $ — $ — CPH — 949 Total non-redeemable non-controlling interest $ — $ 949 Redeemable non-controlling interest as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Consolidated company-sponsored investment funds $ 291,524 $ 145,921 CPH — 2,888 Total redeemable non-controlling interest $ 291,524 $ 148,809 During the third quarter of 2019, we purchased additional shares of CPH, bringing our ownership interest to 100% as of September 30, 2019 . |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Acquisitions are accounted for under ASC 805, Business Combinations. On April 1, 2019, we acquired a 100% interest in Autonomous, an institutional research firm. On the acquisition date, we made a cash payment of $6.5 million and recorded a contingent consideration payable of $17.4 million based on projected fee revenues over a five year measurement period. The excess of the purchase price over the current fair value of identifiable net assets acquired of $5.6 million resulted in the recognition of $10.2 million of goodwill and $8.1 million of intangible assets relating to customer relationships and trademarks. Also, in accordance with GAAP, additional cash payments and contingent consideration payable to the owners of Autonomous on the acquisition date are considered compensation expense to be amortized over two -year and five |
Business Description Organiza_2
Business Description Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the interim results, have been made. The preparation of the condensed consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the interim reporting periods. Actual results could differ from those estimates. The condensed consolidated statement of financial condition as of December 31, 2018 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include AB and its majority-owned and/or controlled subsidiaries, and the consolidated entities that are considered to be variable interest entities (“VIEs”) and voting interest entities (“VOEs”) in which AB has a controlling financial interest. Non-controlling interests on the condensed consolidated statements of financial condition include the portion of consolidated company-sponsored investment funds in which we do not have direct equity ownership. All significant inter-company transactions and balances among the consolidated entities have been eliminated. |
Reclassifications | Reclassifications During 2019, prior period amounts for research and miscellaneous fees related to our brokers dealers previously presented as changes in other assets are now presented as changes in receivables; and certain income taxes payable and receivable as well as deferred tax assets and liabilities previously presented as changes in payables are now presented as changes in other assets in the condensed consolidated statements of cash flows to conform to the current period's presentation. |
Recently Adopted Accounting Pronouncements / Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases . This pronouncement, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-02 is now referred to as Accounting Standards Codification 842 ("ASC 842"). The standard requires a lessee to record most leases on its balance sheet while also disclosing key information about those lease arrangements. The classification criteria to distinguish between finance and operating leases are generally consistent with the classification criteria to distinguish between capital and operating leases under previous lease accounting guidance. We adopted this new standard on January 1, 2019 using the modified retrospective method. Prior comparable periods will not be adjusted under this method. We applied several practical expedients offered by ASC 842 upon adoption of this standard. These included continuing to account for existing leases based on judgments made under legacy GAAP as it relates to determining classification of leases, unamortized initial direct costs and whether contracts are leases or contain leases. We also used a practical expedient to use hindsight in determining the lease terms (using knowledge and expectations as of the standard's adoption date instead of the previous assumptions under legacy GAAP) and evaluating impairment of our right-of-use assets in the transition period (using our most up-to-date information). Adoption of this standard resulted in the recording of operating right-of-use assets and lease liabilities of $438.7 million and $574.5 million , respectively, and financing right-of-use assets and lease liabilities of $2.4 million as of January 1, 2019. The operating right-of-use assets recognized as of January 1, 2019 are net of deferred rent of $50.0 million and liabilities associated with previously recognized impairments of $85.8 million . See Note 13 , Leases , for additional disclosures. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits a company to reclassify the disproportionate income tax effects of the 2017 Tax Cuts and Job Act ("2017 Tax Act") on items within Accumulated Other Comprehensive Income ("AOCI") to retained earnings. The FASB refers to these amounts as "stranded tax effects." The ASU also requires certain new disclosures, some of which are applicable for all companies. We adopted this standard on January 1, 2019. The adoption of this standard had no impact on our financial condition or results of operations. Accounting Pronouncements Not Yet Adopted in 2019 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) . This new guidance relates to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The new guidance is not expected to have a material impact on our financial condition or results of operations. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. As a result of the revised guidance, a goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019 and will be applied prospectively. The revised guidance is not expected to have a material impact on our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The amendment modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The revised guidance is effective for all companies for fiscal years beginning after December 15, 2019, and interim periods within those years. Companies are permitted to early adopt any eliminated or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The revised guidance is not expected to have a material impact on our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20) . The amendment modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The revised guidance is effective for financial statements issued for fiscal years ending after December 15, 2020, with early adoption permitted. The revised guidance is not expected to have a material impact on our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements that currently exist in GAAP for capitalizing implementation costs incurred to develop or obtain internal-use software. Implementation costs would either be capitalized or expensed as incurred depending on the project stage. All costs in the preliminary and post-implementation project stages are expensed as incurred, while certain costs within the application development stage are capitalized. The revised guidance is effective for financial statements issued for fiscal years ending after December 15, 2019, with early adoption permitted. The revised guidance will be adopted prospectively and is not expected to have a material impact on our financial condition or results of operations. Leases We determine if an arrangement is a lease at inception. Both operating and finance leases are included in the right-of-use (“ROU”) assets and lease liabilities in our condensed consolidated statement of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use our incremental borrowing rate based on the information available as of the date we adopted ASC 842 in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis, and the ROU assets and lease liabilities are adjusted when it is reasonably certain that an option will be exercised. When calculating the measurement of ROU assets and lease liabilities, we utilize the fixed payments associated with the lease and do not include other variable contractual obligations, such as operating expenses, real estate taxes and employee parking. These costs are accounted for as period costs and expensed as incurred. Additionally, we exclude any intangible assets such as software licensing agreements as stated in ASC 842-10-15-1. These arrangements will continue to follow the guidance of ASC 350, Intangibles - Goodwill and Other |
Business Description Organiza_3
Business Description Organization and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Ownership Structure of AB as a Percentage of General and Limited Partnership Interests | As of September 30, 2019 , the ownership structure of AB, including limited partnership units outstanding as well as the general partner's 1% interest, was as follows: EQH and its subsidiaries 63.8 % AB Holding 35.4 Unaffiliated holders 0.8 100.0 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues for the three and nine months ended September 30, 2019 and 2018 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 608,765 $ 568,918 $ 1,746,072 $ 1,699,584 Performance-based fees 7,619 41,145 23,270 82,703 Bernstein research services 102,014 103,581 298,240 324,192 Distribution revenues All-in-management fees 77,110 62,807 207,377 193,884 12b-1 fees 20,287 22,136 60,055 66,746 Other 21,238 19,545 60,059 56,980 Other revenues Shareholder servicing fees 20,020 19,017 57,413 57,533 Other 4,095 4,293 12,609 15,827 861,148 841,442 2,465,095 2,497,449 Not subject to contracts with customers: Dividend and interest income, net of interest expense 11,904 7,467 33,439 35,204 Investment gains (losses) 4,433 565 31,117 26,860 Other revenues 382 702 1,477 3,188 16,719 8,734 66,033 65,252 Total net revenues $ 877,867 $ 850,176 $ 2,531,128 $ 2,562,701 |
Net Income per Unit (Tables)
Net Income per Unit (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Unit [Abstract] | |
Schedule of Earnings Per Unit, Basic and Diluted | Basic net income per unit is derived by reducing net income for the 1% general partnership interest and dividing the remaining 99% by the basic weighted average number of limited partnership units outstanding for each period. Diluted net income per unit is derived by reducing net income for the 1% general partnership interest and dividing the remaining 99% by the total of the diluted weighted average number of limited partnership units outstanding for each period. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 187,811 $ 203,674 $ 503,177 $ 569,535 Weighted average limited partnership units outstanding – basic 268,567 269,603 268,131 269,783 Dilutive effect of compensatory options to buy AB Holding Units 36 245 52 282 Weighted average limited partnership units outstanding – diluted 268,603 269,848 268,183 270,065 Basic net income per AB Unit $ 0.69 $ 0.75 $ 1.86 $ 2.09 Diluted net income per AB Unit $ 0.69 $ 0.75 $ 1.86 $ 2.09 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consist of: September 30, December 31, (in thousands) U.S. Treasury Bills $ 74,342 $ 392,424 Equity securities: Long-term incentive compensation-related 35,130 38,883 Seed capital 73,677 105,951 Other 42,518 73,409 Exchange-traded options 5,803 2,568 Investments in limited partnership hedge funds: Long-term incentive compensation-related 13,646 13,546 Seed capital 46,927 67,153 Time deposits 18,070 8,783 Other 13,092 11,627 Total investments $ 323,205 $ 714,344 |
Portion of Unrealized Gains (Losses) Related to Equity Securities | The portion of unrealized gains (losses) related to equity securities, as defined by ASC 321-10, held as of September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Net gains recognized during the period $ 2,382 $ 5,485 $ 23,962 $ 6,817 Less: net gains recognized during the period on equity securities sold during the period 1,716 3,424 6,257 1,645 Unrealized gains recognized during the period on equity securities held $ 666 $ 2,061 $ 17,705 $ 5,172 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional and Fair Value for Derivative Instruments Not Designated as Hedging Instruments | The notional value and fair value as of September 30, 2019 and December 31, 2018 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 Asset Derivatives Liability Derivatives (in thousands) September 30, 2019: Exchange-traded futures $ 184,418 $ 1,282 $ 240 Currency forwards 64,489 8,388 7,716 Interest rate swaps 93,192 2,395 3,046 Credit default swaps 232,116 2,056 5,567 Total return swaps 89,023 589 89 Total derivatives $ 663,238 $ 14,710 $ 16,658 December 31, 2018: Exchange-traded futures $ 218,657 $ 1,594 $ 2,534 Currency forwards 87,019 7,647 7,582 Interest rate swaps 112,658 1,649 1,959 Credit default swaps 94,657 2,888 2,685 Total return swaps 99,038 3,301 62 Total derivatives $ 612,029 $ 17,079 $ 14,822 |
Gains and Losses for Derivative Instruments Recognized in Investment Gains (Losses) in the Condensed Consolidated Statements of Income | The gains and losses for derivative instruments (excluding our options desk trading activities discussed below ) for the three and nine months ended September 30, 2019 and 2018 recognized in investment gains (losses) in the condensed consolidated statements of income were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Exchange-traded futures $ (1,352 ) $ 157 $ (9,903 ) $ 1,699 Currency forwards 1,453 673 1,338 947 Interest rate swaps (81 ) 157 (726 ) 424 Credit default swaps (449 ) (1,117 ) (4,254 ) (1,212 ) Total return swaps 314 (5,625 ) (15,452 ) (5,665 ) Net (losses) gains on derivative instruments $ (115 ) $ (5,755 ) $ (28,997 ) $ (3,807 ) |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
Schedule of Offsetting of Financial Assets | Offsetting of assets as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Received Net Amount (in thousands) September 30, 2019: Securities borrowed $ 22,596 $ — $ 22,596 $ (22,596 ) $ — $ — Derivatives $ 14,710 $ — $ 14,710 $ — $ (251 ) $ 14,459 Long exchange-traded options $ 5,803 $ — $ 5,803 $ — $ — $ 5,803 December 31, 2018: Securities borrowed $ 64,856 $ — $ 64,856 $ (64,217 ) $ — $ 639 Derivatives $ 17,079 $ — $ 17,079 $ — $ (4,831 ) $ 12,248 Long exchange-traded options $ 2,568 $ — $ 2,568 $ — $ — $ 2,568 |
Schedule of Offsetting of Financial Liabilities | Offsetting of liabilities as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Pledged Net Amount (in thousands) September 30, 2019: Securities loaned $ — $ — $ — $ — $ — $ — Derivatives $ 16,658 $ — $ 16,658 $ — $ (1,867 ) $ 14,791 Short exchange-traded options $ 5,152 $ — $ 5,152 $ — $ — $ 5,152 December 31, 2018: Securities loaned $ 59,526 $ — $ 59,526 $ (59,526 ) $ — $ — Derivatives $ 14,822 $ — $ 14,822 $ — $ (4,458 ) $ 10,364 Short exchange-traded options $ 3,782 $ — $ 3,782 $ — $ — $ 3,782 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total September 30, 2019: Money markets $ 115,022 $ — $ — $ — $ — $ 115,022 Securities segregated (U.S. Treasury Bills) — 958,149 — — — 958,149 Derivatives 1,282 13,428 — — — 14,710 Investments U.S. Treasury Bills — 74,342 — — — 74,342 Equity securities 137,921 12,977 118 309 — 151,325 Long exchange-traded options 5,803 — — — — 5,803 Limited partnership hedge funds (2) — — — — 60,573 60,573 Time deposits (3) — — — — 18,070 18,070 Other investments 5,418 — — — 7,674 13,092 Total investments 149,142 87,319 118 309 86,317 323,205 Total assets measured at fair value $ 265,446 $ 1,058,896 $ 118 $ 309 $ 86,317 $ 1,411,086 Securities sold not yet purchased Short equities – corporate $ 8,538 $ — $ — $ — $ — $ 8,538 Short exchange-traded options 5,152 — — — — 5,152 Derivatives 240 16,418 — — — 16,658 Contingent payment arrangements — — 26,432 — — 26,432 Total liabilities measured at fair value $ 13,930 $ 16,418 $ 26,432 $ — $ — $ 56,780 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2018: Money markets $ 102,888 $ — $ — $ — $ — $ 102,888 Securities segregated (U.S. Treasury Bills) — 1,169,554 — — — 1,169,554 Derivatives 1,594 15,485 — — — 17,079 Investments U.S. Treasury Bills — 392,424 — — — 392,424 Equity securities 209,414 8,372 142 315 — 218,243 Long exchange-traded options 2,568 — — — — 2,568 Limited partnership hedge funds (2) — — — — 80,699 80,699 Time deposits (3) — — — — 8,783 8,783 Other investments 4,269 — — — 7,358 11,627 Total investments 216,251 400,796 142 315 96,840 714,344 Total assets measured at fair value $ 320,733 $ 1,585,835 $ 142 $ 315 $ 96,840 $ 2,003,865 Securities sold not yet purchased Short equities – corporate $ 4,841 $ — $ — $ — $ — $ 4,841 Short exchange-traded options 3,782 — — — — 3,782 Derivatives 2,534 12,288 — — — 14,822 Contingent payment arrangements — — 7,336 — — 7,336 Total liabilities measured at fair value $ 11,157 $ 12,288 $ 7,336 $ — $ — $ 30,781 (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. |
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 private equity and equity securities, is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance as of beginning of period $ 117 $ 117 $ 142 $ 1,071 Purchases — — — — Sales — — — — Realized gains (losses), net — — — — Unrealized gains (losses), net 1 — (24 ) (954 ) Balance as of end of period $ 118 $ 117 $ 118 $ 117 |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance as of beginning of period $ 25,603 $ 10,960 $ 7,336 $ 10,855 Addition — — 17,384 — Accretion 829 53 1,712 158 Payments — — — — Balance as of end of period $ 26,432 $ 11,013 $ 26,432 $ 11,013 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Leases | Leases included in the condensed consolidated statement of financial condition as of September 30, 2019 were as follows: Classification September 30, 2019 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 378,083 Operating lease liabilities Lease liabilities 488,592 Finance Leases Property and equipment, gross Right-of-use assets 3,436 Accumulated depreciation Right-of-use assets (932 ) Property and equipment, net 2,504 Finance lease liabilities Lease liabilities 2,535 |
Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense included in the condensed consolidated statement of income as of September 30, 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, Classification 2019 2019 (in thousands) Operating lease cost General and administrative $ 26,181 $ 79,829 Financing lease cost: Amortization of right-of-use assets General and administrative 355 932 Interest on lease liabilities Interest expense 20 52 Total finance lease cost 375 984 Variable lease cost (1) General and administrative 10,588 30,337 Sublease income General and administrative (14,021 ) (42,472 ) Net lease cost $ 23,123 $ 68,678 (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 5.38 Finance leases 2.43 Weighted average discount rate Operating leases 3.51 % Finance leases 3.14 % Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 99,490 Operating cash flows from financing leases 52 Financing cash flows from finance leases 901 Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases 10,565 Finance leases 1,080 (1) Represents non-cash activity and, accordingly, is not reflected in the condensed consolidated statements of cash flows. |
Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2019 (excluding the nine months ended September 30, 2019) $ 28,748 $ 377 $ 29,125 2020 112,678 1,251 113,929 2021 102,964 607 103,571 2022 89,187 245 89,432 2023 81,972 126 82,098 Thereafter 121,626 23 121,649 Total lease payments 537,175 2,629 539,804 Less interest (48,583 ) (94 ) Present value of lease liabilities $ 488,592 $ 2,535 |
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) 2019 (excluding the nine months ended September 30, 2019) $ 28,748 $ 377 $ 29,125 2020 112,678 1,251 113,929 2021 102,964 607 103,571 2022 89,187 245 89,432 2023 81,972 126 82,098 Thereafter 121,626 23 121,649 Total lease payments 537,175 2,629 539,804 Less interest (48,583 ) (94 ) Present value of lease liabilities $ 488,592 $ 2,535 |
Consolidated Company-Sponsore_2
Consolidated Company-Sponsored Investment Funds (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity [Line Items] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Valuation of our financial instruments by pricing observability levels as of September 30, 2019 and December 31, 2018 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (1) Other Total September 30, 2019: Money markets $ 115,022 $ — $ — $ — $ — $ 115,022 Securities segregated (U.S. Treasury Bills) — 958,149 — — — 958,149 Derivatives 1,282 13,428 — — — 14,710 Investments U.S. Treasury Bills — 74,342 — — — 74,342 Equity securities 137,921 12,977 118 309 — 151,325 Long exchange-traded options 5,803 — — — — 5,803 Limited partnership hedge funds (2) — — — — 60,573 60,573 Time deposits (3) — — — — 18,070 18,070 Other investments 5,418 — — — 7,674 13,092 Total investments 149,142 87,319 118 309 86,317 323,205 Total assets measured at fair value $ 265,446 $ 1,058,896 $ 118 $ 309 $ 86,317 $ 1,411,086 Securities sold not yet purchased Short equities – corporate $ 8,538 $ — $ — $ — $ — $ 8,538 Short exchange-traded options 5,152 — — — — 5,152 Derivatives 240 16,418 — — — 16,658 Contingent payment arrangements — — 26,432 — — 26,432 Total liabilities measured at fair value $ 13,930 $ 16,418 $ 26,432 $ — $ — $ 56,780 Level 1 Level 2 Level 3 NAV Expedient (1) Other Total December 31, 2018: Money markets $ 102,888 $ — $ — $ — $ — $ 102,888 Securities segregated (U.S. Treasury Bills) — 1,169,554 — — — 1,169,554 Derivatives 1,594 15,485 — — — 17,079 Investments U.S. Treasury Bills — 392,424 — — — 392,424 Equity securities 209,414 8,372 142 315 — 218,243 Long exchange-traded options 2,568 — — — — 2,568 Limited partnership hedge funds (2) — — — — 80,699 80,699 Time deposits (3) — — — — 8,783 8,783 Other investments 4,269 — — — 7,358 11,627 Total investments 216,251 400,796 142 315 96,840 714,344 Total assets measured at fair value $ 320,733 $ 1,585,835 $ 142 $ 315 $ 96,840 $ 2,003,865 Securities sold not yet purchased Short equities – corporate $ 4,841 $ — $ — $ — $ — $ 4,841 Short exchange-traded options 3,782 — — — — 3,782 Derivatives 2,534 12,288 — — — 14,822 Contingent payment arrangements — — 7,336 — — 7,336 Total liabilities measured at fair value $ 11,157 $ 12,288 $ 7,336 $ — $ — $ 30,781 (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. |
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 private equity and equity securities, is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance as of beginning of period $ 117 $ 117 $ 142 $ 1,071 Purchases — — — — Sales — — — — Realized gains (losses), net — — — — Unrealized gains (losses), net 1 — (24 ) (954 ) Balance as of end of period $ 118 $ 117 $ 118 $ 117 |
Schedule of Offsetting of Derivative Assets | Offsetting of assets as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Received Net Amount (in thousands) September 30, 2019: Securities borrowed $ 22,596 $ — $ 22,596 $ (22,596 ) $ — $ — Derivatives $ 14,710 $ — $ 14,710 $ — $ (251 ) $ 14,459 Long exchange-traded options $ 5,803 $ — $ 5,803 $ — $ — $ 5,803 December 31, 2018: Securities borrowed $ 64,856 $ — $ 64,856 $ (64,217 ) $ — $ 639 Derivatives $ 17,079 $ — $ 17,079 $ — $ (4,831 ) $ 12,248 Long exchange-traded options $ 2,568 $ — $ 2,568 $ — $ — $ 2,568 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of liabilities as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Pledged Net Amount (in thousands) September 30, 2019: Securities loaned $ — $ — $ — $ — $ — $ — Derivatives $ 16,658 $ — $ 16,658 $ — $ (1,867 ) $ 14,791 Short exchange-traded options $ 5,152 $ — $ 5,152 $ — $ — $ 5,152 December 31, 2018: Securities loaned $ 59,526 $ — $ 59,526 $ (59,526 ) $ — $ — Derivatives $ 14,822 $ — $ 14,822 $ — $ (4,458 ) $ 10,364 Short exchange-traded options $ 3,782 $ — $ 3,782 $ — $ — $ 3,782 |
Company-sponsored investment funds | |
Variable Interest Entity [Line Items] | |
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: September 30, 2019 December 31, 2018 (in thousands) VIEs VOEs Total VIEs VOEs Total Cash and cash equivalents $ 14,647 $ 2,362 $ 17,009 $ 11,880 $ 1,238 $ 13,118 Investments 372,668 163,614 536,282 217,840 133,856 351,696 Other assets 20,418 15,982 36,400 6,024 16,816 22,840 Total assets $ 407,733 $ 181,958 $ 589,691 $ 235,744 $ 151,910 $ 387,654 Liabilities $ 17,892 $ 20,181 $ 38,073 $ 5,215 $ 17,395 $ 22,610 Redeemable non-controlling interest 244,327 47,197 291,524 117,523 28,398 145,921 Partners' capital attributable to AB Unitholders 145,515 114,579 260,094 113,006 106,117 219,123 Total liabilities, redeemable non-controlling interest and partners' capital $ 407,734 $ 181,957 $ 589,691 $ 235,744 $ 151,910 $ 387,654 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of September 30, 2019 and December 31, 2018 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient Total September 30, 2019: Investments - VIEs $ 27,424 $ 339,350 $ 5,894 $ — $ 372,668 Investments - VOEs 94,725 68,382 507 — 163,614 Derivatives - VIEs 164 4,520 — — 4,684 Derivatives - VOEs 38 8,089 — — 8,127 Total assets measured at fair value $ 122,351 $ 420,341 $ 6,401 $ — $ 549,093 Derivatives - VIEs 521 4,299 — — 4,820 Derivatives - VOEs 57 5,447 — — 5,504 Total liabilities measured at fair value $ 578 $ 9,746 $ — $ — $ 10,324 December 31, 2018: Investments - VIEs $ 22,149 $ 187,626 $ 8,065 $ — $ 217,840 Investments - VOEs 68,063 65,485 308 — 133,856 Derivatives - VIEs 1,486 1,924 — — 3,410 Derivatives - VOEs 124 3,692 — — 3,816 Total assets measured at fair value $ 91,822 $ 258,727 $ 8,373 $ — $ 358,922 Derivatives - VIEs $ 72 $ 3,819 $ — $ — $ 3,891 Derivatives - VOEs 197 3,633 — — 3,830 Total liabilities measured at fair value $ 269 $ 7,452 $ — $ — $ 7,721 |
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 within consolidated company-sponsored investment funds was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance as of beginning of period $ 11,834 $ 5,871 $ 8,373 $ 2,264 Transfers (out) in (3,602 ) (406 ) (3,788 ) (82 ) Purchases 1,187 1,247 8,978 7,381 Sales (2,996 ) (197 ) (7,345 ) (2,820 ) Realized gains (losses), net 12 2 35 (97 ) Unrealized gains (losses), net (40 ) (25 ) 129 (158 ) Accrued discounts 6 2 19 6 Balance as of end of period $ 6,401 $ 6,494 $ 6,401 $ 6,494 |
Schedule of Offsetting of Derivative Assets | Offsetting of derivative assets of consolidated company-sponsored investment funds as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Received Net Amount (in thousands) September 30, 2019: Derivatives - VIEs $ 4,684 $ — $ 4,684 $ — $ (1,351 ) $ 3,333 Derivatives - VOEs $ 8,127 $ — $ 8,127 $ — $ (597 ) $ 7,530 December 31, 2018: Derivatives - VIEs $ 3,410 $ — $ 3,410 $ — $ (856 ) $ 2,554 Derivatives - VOEs $ 3,816 $ — $ 3,816 $ — $ (225 ) $ 3,591 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of September 30, 2019 and December 31, 2018 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 Instruments Cash Collateral Pledged Net Amount (in thousands) September 30, 2019: Derivatives - VIEs $ 4,820 $ — $ 4,820 $ — $ (3,368 ) $ 1,452 Derivatives - VOEs $ 5,504 $ — $ 5,504 $ — $ (1,291 ) $ 4,213 December 31, 2018: Derivatives - VIEs $ 3,891 $ — $ 3,891 $ — $ (829 ) $ 3,062 Derivatives - VOEs $ 3,830 $ — $ 3,830 $ — $ (547 ) $ 3,283 |
Units Outstanding (Tables)
Units Outstanding (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Changes in AB Units Outstanding | Changes in AB Units outstanding during the nine -month period ended September 30, 2019 were as follows: Outstanding as of December 31, 2018 268,850,276 Options exercised 443,800 Units issued 2,073,854 Units retired (1) (3,184,973 ) Balance as of September 30, 2019 268,182,957 (1) Includes 982 AB Units purchased in private transactions and retired during the first nine months of 2019 . |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interest in Net Income | Non-controlling interest in net income for the three and nine months ended September 30, 2019 and 2018 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Non-redeemable non-controlling interests: Consolidated company-sponsored investment funds $ — $ (46 ) $ — $ (99 ) Other 18 78 92 249 Total non-redeemable non-controlling interests 18 32 92 150 Redeemable non-controlling interests: Consolidated company-sponsored investment funds 4,127 694 21,926 23,487 Total non-controlling interest in net income $ 4,145 $ 726 $ 22,018 $ 23,637 |
Non-redeemable Noncontrolling Interest | Non-redeemable non-controlling interest as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Consolidated company-sponsored investment funds $ — $ — CPH — 949 Total non-redeemable non-controlling interest $ — $ 949 |
Redeemable Noncontrolling Interest | Redeemable non-controlling interest as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Consolidated company-sponsored investment funds $ 291,524 $ 145,921 CPH — 2,888 Total redeemable non-controlling interest $ 291,524 $ 148,809 |
Business Description Organiza_4
Business Description Organization and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2019shares | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 1.00% |
AB | |
General partnership information [Abstract] | |
Limited partners or members ownership interest in company (percent) | 100.00% |
EQH | AXA | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 39.10% |
AB Holding | EQH | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 4.20% |
AB Holding | AB | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 1.00% |
General Partnership number of general partnership units owned in Holding Company (in units) | 100,000 |
Limited partners or members ownership interest in company (percent) | 35.40% |
EQH and its subsidiaries | AB | |
General partnership information [Abstract] | |
Limited partners or members ownership interest in company (percent) | 63.80% |
Unaffiliated holders | AB | |
General partnership information [Abstract] | |
Limited partners or members ownership interest in company (percent) | 0.80% |
AB | EQH and its subsidiaries | |
General partnership information [Abstract] | |
General partnership interest in Company (percent) | 65.30% |
Significant Accounting Polici_2
Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Operating lease right-of-use assets | $ 378,083 | $ 438,700 | |
Operating lease liabilities | 488,592 | 574,500 | |
Financing right-of-use assets | 2,504 | 2,400 | |
Finance lease liabilities | $ 2,535 | 2,400 | |
Deferred rent | 50,000 | ||
Restructuring reserve | $ 85,800 | $ 85,800 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | $ 861,148 | $ 841,442 | $ 2,465,095 | $ 2,497,449 |
Dividend and interest income, net of interest expense | 11,904 | 7,467 | 33,439 | 35,204 |
Investment gains (losses) | 4,433 | 565 | 31,117 | 26,860 |
Other revenues | 382 | 702 | 1,477 | 3,188 |
Revenue not subject to contract with customer | 16,719 | 8,734 | 66,033 | 65,252 |
Net revenues | 877,867 | 850,176 | 2,531,128 | 2,562,701 |
Base fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | 608,765 | 568,918 | 1,746,072 | 1,699,584 |
Performance-based fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | 7,619 | 41,145 | 23,270 | 82,703 |
Bernstein research services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | 102,014 | 103,581 | 298,240 | 324,192 |
All-in-management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | 77,110 | 62,807 | 207,377 | 193,884 |
12b-1 fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | 20,287 | 22,136 | 60,055 | 66,746 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | 21,238 | 19,545 | 60,059 | 56,980 |
Shareholder servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | 20,020 | 19,017 | 57,413 | 57,533 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue subject to contracts with customers | $ 4,095 | $ 4,293 | $ 12,609 | $ 15,827 |
Long-term Incentive Compensat_2
Long-term Incentive Compensation Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
AB Holding Units purchased (in units) | 900,000 | 1,600,000 | 2,900,000 | 2,900,000 |
Amount paid for AB Holding Units acquired | $ 25,100 | $ 48,000 | $ 83,700 | $ 83,200 |
Open-market purchases of AB Holding Units (in units) | 600,000 | 1,600,000 | 2,500,000 | 2,800,000 |
Amount paid for open-market purchases of AB Holding Units | $ 15,300 | $ 48,000 | $ 70,600 | $ 80,900 |
Units granted to employees and Eligible Directors (in units) | 1,900,000 | 2,500,000 | ||
Units issued upon exercise of options (in units) | 443,800 | 600,000 | ||
Proceeds from stock options exercised | $ 9,642 | $ 10,802 |
Net Income per Unit (Details)
Net Income per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Unit [Abstract] | ||||
General partnership interest in Company (percent) | 1.00% | |||
Limited Partners interest in Company (as a percent) | 99.00% | |||
Net income per unit, basic and diluted [Abstract] | ||||
Net income attributable to AB Unitholders | $ 187,811 | $ 203,674 | $ 503,177 | $ 569,535 |
Weighted average limited partnership units outstanding – basic (in units) | 268,567,000 | 269,603,000 | 268,131,000 | 269,783,000 |
Dilutive effect of compensatory options to buy AB Holding Units (in units) | 36,000 | 245,000 | 52,000 | 282,000 |
Weighted average limited partnership units outstanding – diluted (in units) | 268,603,000 | 269,848,000 | 268,183,000 | 270,065,000 |
Basic net income per AB Unit (in dollars per unit) | $ 0.69 | $ 0.75 | $ 1.86 | $ 2.09 |
Diluted net income per AB Unit (in dollars per unit) | $ 0.69 | $ 0.75 | $ 1.86 | $ 2.09 |
Options excluded from diluted net income per unit computation due to their anti-dilutive effect (in units) | 29,056 | 824,245 | 29,056 | 844,973 |
Cash Distributions (Details)
Cash Distributions (Details) - $ / shares | Oct. 24, 2019 | Sep. 30, 2019 |
Distribution Made to Limited Partner [Line Items] | ||
General partnership interest in Company (percent) | 1.00% | |
Subsequent Event | ||
Distribution Made to Limited Partner [Line Items] | ||
Distribution declared (in dollars per unit) | $ 0.70 | |
Cash Distribution | ||
Distribution Made to Limited Partner [Line Items] | ||
Declaration date | Oct. 24, 2019 | |
General partnership interest in Company (percent) | 1.00% | |
Distribution date | Nov. 14, 2019 | |
Date of record | Nov. 4, 2019 |
Cash and Securities Segregate_2
Cash and Securities Segregated Under Federal Regulations and Other Requirements (Details) - USD ($) $ in Billions | Sep. 30, 2019 | Dec. 31, 2018 |
Brokers and Dealers [Abstract] | ||
United States Treasury Bills in special reserve bank custody account for exclusive benefit of brokerage customers of SCB LLC | $ 1 | $ 1.2 |
Investments (Summary of Investm
Investments (Summary of Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 323,205 | $ 714,344 |
Long-term incentive compensation obligations | 48,776 | 52,429 |
Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 379,800 | 391,600 |
U.S. Treasury Bills | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 74,342 | 392,424 |
Equity securities | Long-term incentive compensation-related | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 35,130 | 38,883 |
Equity securities | Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 73,677 | 105,951 |
Equity securities | Other | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 42,518 | 73,409 |
Exchange-traded options | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 5,803 | 2,568 |
Investments in limited partnership hedge funds | Long-term incentive compensation-related | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 13,646 | 13,546 |
Investments in limited partnership hedge funds | Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 46,927 | 67,153 |
Time deposits | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 18,070 | 8,783 |
Other | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 13,092 | $ 11,627 |
Investments (Gains (Losses) Rel
Investments (Gains (Losses) Related to Equity Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains recognized during the period | $ 2,382 | $ 5,485 | $ 23,962 | $ 6,817 |
Less: net gains recognized during the period on equity securities sold during the period | 1,716 | 3,424 | 6,257 | 1,645 |
Unrealized gains recognized during the period on equity securities held | $ 666 | $ 2,061 | $ 17,705 | $ 5,172 |
Derivative Instruments (Notiona
Derivative Instruments (Notional Value and Fair Value of Derivative Instruments) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Asset Derivatives | $ 14,710 | $ 17,079 |
Liability Derivatives | 16,658 | 14,822 |
Derivative, Notional Amount | 663,238 | 612,029 |
Exchange-traded futures | ||
Derivative [Line Items] | ||
Asset Derivatives | 1,282 | 1,594 |
Liability Derivatives | 240 | 2,534 |
Derivative, Notional Amount | 184,418 | 218,657 |
Currency forwards | ||
Derivative [Line Items] | ||
Asset Derivatives | 8,388 | 7,647 |
Liability Derivatives | 7,716 | 7,582 |
Derivative, Notional Amount | 64,489 | 87,019 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Asset Derivatives | 2,395 | 1,649 |
Liability Derivatives | 3,046 | 1,959 |
Derivative, Notional Amount | 93,192 | 112,658 |
Credit default swaps | ||
Derivative [Line Items] | ||
Asset Derivatives | 2,056 | 2,888 |
Liability Derivatives | 5,567 | 2,685 |
Derivative, Notional Amount | 232,116 | 94,657 |
Total return swaps | ||
Derivative [Line Items] | ||
Asset Derivatives | 589 | 3,301 |
Liability Derivatives | 89 | 62 |
Derivative, Notional Amount | $ 89,023 | $ 99,038 |
Derivative Instruments (Gains a
Derivative Instruments (Gains and Losses for Derivative Instruments Recognized in Investment Gains (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Net (losses) gains on derivative instruments | $ (115) | $ (5,755) | $ (28,997) | $ (3,807) |
Exchange-traded futures | ||||
Derivative [Line Items] | ||||
Net (losses) gains on derivative instruments | (1,352) | 157 | (9,903) | 1,699 |
Currency forwards | ||||
Derivative [Line Items] | ||||
Net (losses) gains on derivative instruments | 1,453 | 673 | 1,338 | 947 |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Net (losses) gains on derivative instruments | (81) | 157 | (726) | 424 |
Credit default swaps | ||||
Derivative [Line Items] | ||||
Net (losses) gains on derivative instruments | (449) | (1,117) | (4,254) | (1,212) |
Total return swaps | ||||
Derivative [Line Items] | ||||
Net (losses) gains on derivative instruments | $ 314 | $ (5,625) | $ (15,452) | $ (5,665) |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Cash collateral payable to trade counterparties | $ 300 | $ 300 | $ 4,800 | ||
Cash collateral received | 1,900 | 1,900 | 4,500 | ||
Gain (loss) on equity options activity | (3,600) | $ 5,700 | (14,700) | $ (3,200) | |
Exchange-traded options | Long | |||||
Derivative [Line Items] | |||||
Cash collateral payable to trade counterparties | 0 | 0 | 0 | ||
Long exchange-traded equity options | 5,800 | 5,800 | 2,600 | ||
Exchange-traded options | Short | |||||
Derivative [Line Items] | |||||
Cash collateral received | 0 | 0 | 0 | ||
Short exchange-traded equity options, included in securities sold not yet purchased | $ 5,200 | $ 5,200 | $ 3,800 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Offsetting Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Asset [Abstract] | ||
Cash Collateral Received | $ (300) | $ (4,800) |
Securities borrowed | ||
Securities Borrowed [Abstract] | ||
Gross Amounts of Recognized Assets | 22,596 | 64,856 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Position | 22,596 | 64,856 |
Financial Instruments | (22,596) | (64,217) |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 639 |
Derivatives | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 14,710 | 17,079 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Position | 14,710 | 17,079 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | (251) | (4,831) |
Net Amount | 14,459 | 12,248 |
Exchange-traded options | Long | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 5,803 | 2,568 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Position | 5,803 | 2,568 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 5,803 | $ 2,568 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities (Offsetting Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Liability [Abstract] | ||
Cash Collateral Pledged | $ (1,900) | $ (4,500) |
Securities loaned | ||
Securities Loaned [Abstract] | ||
Gross Amounts of Recognized Liabilities | 0 | 59,526 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 0 | 59,526 |
Financial Instruments | 0 | (59,526) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Derivatives | ||
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 16,658 | 14,822 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 16,658 | 14,822 |
Financial Instruments | 0 | 0 |
Cash Collateral Pledged | (1,867) | (4,458) |
Net Amount | 14,791 | 10,364 |
Exchange-traded options | Short | ||
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 5,152 | 3,782 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 5,152 | 3,782 |
Financial Instruments | 0 | 0 |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 5,152 | $ 3,782 |
Fair Value (Valuation of Financ
Fair Value (Valuation of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | $ 86,317 | $ 96,840 | |
Securities sold not yet purchased | |||
Contingent payment arrangements | 17,384 | $ 0 | |
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money markets | 115,022 | 102,888 | |
Securities segregated (U.S. Treasury Bills) | 958,149 | 1,169,554 | |
Derivatives | 14,710 | 17,079 | |
Total investments measured at fair value and other measurements | 323,205 | 714,344 | |
Total assets measured at fair value and other measurements | 1,411,086 | 2,003,865 | |
Securities sold not yet purchased | |||
Short equities – corporate | 8,538 | 4,841 | |
Short exchange-traded options | 5,152 | 3,782 | |
Derivatives | 16,658 | 14,822 | |
Contingent payment arrangements | 26,432 | 7,336 | |
Total liabilities measured at fair value | 56,780 | 30,781 | |
Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money markets | 115,022 | 102,888 | |
Securities segregated (U.S. Treasury Bills) | 0 | 0 | |
Derivatives | 1,282 | 1,594 | |
Total investments | 149,142 | 216,251 | |
Total assets measured at fair value | 265,446 | 320,733 | |
Securities sold not yet purchased | |||
Short equities – corporate | 8,538 | 4,841 | |
Short exchange-traded options | 5,152 | 3,782 | |
Derivatives | 240 | 2,534 | |
Contingent payment arrangements | 0 | 0 | |
Total liabilities measured at fair value | 13,930 | 11,157 | |
Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money markets | 0 | 0 | |
Securities segregated (U.S. Treasury Bills) | 958,149 | 1,169,554 | |
Derivatives | 13,428 | 15,485 | |
Total investments | 87,319 | 400,796 | |
Total assets measured at fair value | 1,058,896 | 1,585,835 | |
Securities sold not yet purchased | |||
Short equities – corporate | 0 | 0 | |
Short exchange-traded options | 0 | 0 | |
Derivatives | 16,418 | 12,288 | |
Contingent payment arrangements | 0 | 0 | |
Total liabilities measured at fair value | 16,418 | 12,288 | |
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money markets | 0 | 0 | |
Securities segregated (U.S. Treasury Bills) | 0 | 0 | |
Derivatives | 0 | 0 | |
Total investments | 118 | 142 | |
Total assets measured at fair value | 118 | 142 | |
Securities sold not yet purchased | |||
Short equities – corporate | 0 | 0 | |
Short exchange-traded options | 0 | 0 | |
Derivatives | 0 | 0 | |
Contingent payment arrangements | 26,432 | 7,336 | |
Total liabilities measured at fair value | 26,432 | 7,336 | |
Recurring | NAV Expedient | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
NAV Expedient | 309 | 315 | |
U.S. Treasury Bills | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 74,342 | 392,424 | |
U.S. Treasury Bills | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
U.S. Treasury Bills | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 74,342 | 392,424 | |
U.S. Treasury Bills | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Equity securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 151,325 | 218,243 | |
Equity securities | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 137,921 | 209,414 | |
Equity securities | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 12,977 | 8,372 | |
Equity securities | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 118 | 142 | |
Equity securities | Recurring | NAV Expedient | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
NAV Expedient | 309 | 315 | |
Other investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 7,674 | 7,358 | |
Other investments | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 13,092 | ||
Total investments measured at fair value and other measurements | 11,627 | ||
Other investments | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments | 5,418 | 4,269 | |
Time deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 18,070 | 8,783 | |
Time deposits | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 18,070 | 8,783 | |
Long | Exchange-traded options | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 5,803 | 2,568 | |
Long | Exchange-traded options | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 5,803 | 2,568 | |
Long | Exchange-traded options | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Long | Exchange-traded options | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Limited partnership hedge funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | 60,573 | 80,699 | |
Limited partnership hedge funds | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other | $ 60,573 | $ 80,699 |
Fair Value (Details)
Fair Value (Details) $ in Thousands | Apr. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Other investments | $ 96,840 | $ 86,317 | |||
Transfer of securities from level 2 to level 1 | 3,200 | ||||
Contingent payment arrangements | 17,384 | $ 0 | |||
Private Equity Investment Energy Fund | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Investments | $ 1,000 | ||||
Recurring | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent payment arrangements | 7,336 | 26,432 | |||
Liabilities measured at fair value for impairment on a nonrecurring basis | 30,781 | 56,780 | |||
Recurring | Contingent Payment Arrangements | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent payment arrangements | 7,300 | 26,400 | |||
Software publishing company | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Other investments | 1,000 | ||||
Start-up company | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Other investments | 900 | 900 | |||
Equity method investee | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Other investments | 3,400 | 2,500 | |||
Broker dealer exchange memberships | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Other investments | 3,100 | $ 3,300 | |||
2016 Acquisition | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration written off | $ 2,400 | ||||
2016 Acquisition | Revenue growth rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Acquisition-related contingent liability | 0.26 | ||||
2016 Acquisition | Discount rate | Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Acquisition-related contingent liability | 0.032 | ||||
2016 Acquisition | Discount rate | Maximum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Acquisition-related contingent liability | 0.037 | ||||
Autonomous | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent payment arrangements | $ 17,400 | ||||
Contingent consideration payable, term | 5 years | 5 years | |||
Autonomous | Revenue growth rate | Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Acquisition-related contingent liability | 0.007 | ||||
Autonomous | Revenue growth rate | Maximum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Acquisition-related contingent liability | 0.025 | ||||
Autonomous | Risk-free rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Acquisition-related contingent liability | 0.035 | ||||
Autonomous | Discount rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Acquisition-related contingent liability | 0.104 | ||||
Autonomous | Market price of risk adjustment rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Acquisition-related contingent liability | 0.069 |
Fair Value (Change in Carrying
Fair Value (Change in Carrying Value of Level 3 Financial Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||||
Balance as of beginning of period | $ 117 | $ 117 | $ 142 | $ 1,071 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Realized gains (losses), net | 0 | 0 | 0 | 0 |
Unrealized gains (losses), net | 1 | 0 | (24) | (954) |
Balance as of end of period | $ 118 | $ 117 | $ 118 | $ 117 |
Fair Value (Change in Carryin_2
Fair Value (Change in Carrying Value Associated with Contingent Payment Arrangements Level 3 Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Liabilities Measurement Level 3 reconciliation | ||||
Balance as of beginning of period | $ 25,603 | $ 10,960 | $ 7,336 | $ 10,855 |
Addition | 0 | 0 | 17,384 | 0 |
Accretion | 829 | 53 | 1,712 | 158 |
Payments | 0 | 0 | 0 | 0 |
Balance as of end of period | $ 26,432 | $ 11,013 | $ 26,432 | $ 11,013 |
Leases - Additional Information
Leases - Additional Information (Details) ft² in Thousands, $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2019USD ($)ft² | Apr. 30, 2019USD ($)ft² | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2018USD ($)ft² | |
Lessee, Lease, Description [Line Items] | |||||
Operating and finance lease, maximum term of extension option | 5 years | ||||
Operating and finance lease, term of termination option | 1 year | ||||
Area of space leased (in square feet) | ft² | 1,000,000,000 | ||||
Restructuring reserve | $ 85,800 | $ 85,800 | |||
Total base rent obligation | $ 537,175 | ||||
Nashville | |||||
Lessee, Lease, Description [Line Items] | |||||
Area of space leased (in square feet) | ft² | 205 | ||||
Operating lease, lease not yet commenced, term of contract | 15 years | ||||
Total base rent obligation | $ 126,000 | ||||
New York City | |||||
Lessee, Lease, Description [Line Items] | |||||
Area of space leased (in square feet) | ft² | 190 | ||||
Operating lease, lease not yet commenced, term of contract | 20 years | ||||
Total base rent obligation | $ 448,000 | ||||
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 | 11 years |
Leases - Leases included in the
Leases - Leases included in the Condensed Consolidated Statement of Financial Condition (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 378,083 | $ 438,700 |
Operating lease liabilities | 488,592 | 574,500 |
Property and equipment, gross | 3,436 | |
Accumulated depreciation | (932) | |
Property and equipment, net | 2,504 | 2,400 |
Finance lease liabilities | $ 2,535 | $ 2,400 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 26,181 | $ 79,829 |
Financing lease cost: | ||
Amortization of right-of-use assets | 355 | 932 |
Interest on lease liabilities | 20 | 52 |
Total finance lease cost | 375 | 984 |
Variable lease cost | 10,588 | 30,337 |
Sublease income | (14,021) | (42,472) |
Net lease cost | $ 23,123 | $ 68,678 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Operating Leases | ||
2019 (excluding the nine months ended September 30, 2019) | $ 28,748 | |
2020 | 112,678 | |
2021 | 102,964 | |
2022 | 89,187 | |
2023 | 81,972 | |
Thereafter | 121,626 | |
Total lease payments | 537,175 | |
Less interest | (48,583) | |
Present value of lease liabilities | 488,592 | $ 574,500 |
Financing Leases | ||
2019 (excluding the nine months ended September 30, 2019) | 377 | |
2020 | 1,251 | |
2021 | 607 | |
2022 | 245 | |
2023 | 126 | |
Thereafter | 23 | |
Total lease payments | 2,629 | |
Less interest | (94) | |
Present value of lease liabilities | 2,535 | $ 2,400 |
Total | ||
2019 (excluding the nine months ended September 30, 2019) | 29,125 | |
2020 | 113,929 | |
2021 | 103,571 | |
2022 | 89,432 | |
2023 | 82,098 | |
Thereafter | 121,649 | |
Total lease payments | $ 539,804 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term, operating leases | 5 years 4 months 17 days |
Weighted average remaining lease term, finance leases | 2 years 5 months 4 days |
Weighted average discount rate, operating leases | 3.51% |
Weighted average discount rate, finance leases | 3.14% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 99,490 |
Operating cash flows from financing leases | 52 |
Financing cash flows from finance leases | 901 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | 10,565 |
Right-of-use assets obtained in exchange for lease obligations, finance leases | $ 1,080 |
Consolidated Company-Sponsore_3
Consolidated Company-Sponsored Investment Funds (Summary of Balance Sheet Amounts) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Other assets | $ 284,835 | $ 297,940 |
Total assets | 8,555,271 | 8,789,098 |
Liabilities | 4,398,256 | 4,724,080 |
Redeemable non-controlling interest | 291,524 | 148,809 |
Partners' capital attributable to AB Unitholders | 3,865,491 | 3,915,260 |
Total liabilities, redeemable non-controlling interest and capital | 8,555,271 | 8,789,098 |
Company-sponsored investment funds | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 17,009 | 13,118 |
Investments | 536,282 | 351,696 |
Other assets | 36,400 | 22,840 |
Liabilities | 38,073 | 22,610 |
Redeemable non-controlling interest | 291,524 | 145,921 |
Reportable entities | Company-sponsored investment funds | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 17,009 | 13,118 |
Investments | 536,282 | 351,696 |
Other assets | 36,400 | 22,840 |
Total assets | 589,691 | 387,654 |
Liabilities | 38,073 | 22,610 |
Redeemable non-controlling interest | 291,524 | 145,921 |
Partners' capital attributable to AB Unitholders | 260,094 | 219,123 |
Total liabilities, redeemable non-controlling interest and capital | 589,691 | 387,654 |
Reportable entities | VIEs | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 14,647 | 11,880 |
Investments | 372,668 | 217,840 |
Other assets | 20,418 | 6,024 |
Total assets | 407,733 | 235,744 |
Liabilities | 17,892 | 5,215 |
Redeemable non-controlling interest | 244,327 | 117,523 |
Partners' capital attributable to AB Unitholders | 145,515 | 113,006 |
Total liabilities, redeemable non-controlling interest and capital | 407,734 | 235,744 |
Reportable entities | VOEs | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 2,362 | 1,238 |
Investments | 163,614 | 133,856 |
Other assets | 15,982 | 16,816 |
Total assets | 181,958 | 151,910 |
Liabilities | 20,181 | 17,395 |
Redeemable non-controlling interest | 47,197 | 28,398 |
Partners' capital attributable to AB Unitholders | 114,579 | 106,117 |
Total liabilities, redeemable non-controlling interest and capital | $ 181,957 | $ 151,910 |
Consolidated Company-Sponsore_4
Consolidated Company-Sponsored Investment Funds (Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ 14,710 | $ 17,079 |
Derivatives | 16,658 | 14,822 |
Total liabilities measured at fair value | 56,780 | 30,781 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 149,142 | 216,251 |
Derivatives | 1,282 | 1,594 |
Total assets measured at fair value | 265,446 | 320,733 |
Derivatives | 240 | 2,534 |
Total liabilities measured at fair value | 13,930 | 11,157 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 87,319 | 400,796 |
Derivatives | 13,428 | 15,485 |
Total assets measured at fair value | 1,058,896 | 1,585,835 |
Derivatives | 16,418 | 12,288 |
Total liabilities measured at fair value | 16,418 | 12,288 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 118 | 142 |
Derivatives | 0 | 0 |
Total assets measured at fair value | 118 | 142 |
Derivatives | 0 | 0 |
Total liabilities measured at fair value | 26,432 | 7,336 |
Company-sponsored investment funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 549,093 | 358,922 |
Total liabilities measured at fair value | 10,324 | 7,721 |
Company-sponsored investment funds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 122,351 | 91,822 |
Total liabilities measured at fair value | 578 | 269 |
Company-sponsored investment funds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 420,341 | 258,727 |
Total liabilities measured at fair value | 9,746 | 7,452 |
Company-sponsored investment funds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 6,401 | 8,373 |
Total liabilities measured at fair value | 0 | 0 |
VIEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 4,684 | 3,410 |
Derivatives | 4,820 | 3,891 |
VIEs | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 372,668 | 217,840 |
Derivatives | 4,684 | 3,410 |
Derivatives | 4,820 | 3,891 |
VIEs | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 27,424 | 22,149 |
Derivatives | 164 | 1,486 |
Derivatives | 521 | 72 |
VIEs | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 339,350 | 187,626 |
Derivatives | 4,520 | 1,924 |
Derivatives | 4,299 | 3,819 |
VIEs | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,894 | 8,065 |
Derivatives | 0 | 0 |
Derivatives | 0 | 0 |
VOEs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 8,127 | 3,816 |
Derivatives | 5,504 | 3,830 |
VOEs | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 163,614 | 133,856 |
Derivatives | 8,127 | 3,816 |
Derivatives | 5,504 | 3,830 |
VOEs | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 94,725 | 68,063 |
Derivatives | 38 | 124 |
Derivatives | 57 | 197 |
VOEs | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 68,382 | 65,485 |
Derivatives | 8,089 | 3,692 |
Derivatives | 5,447 | 3,633 |
VOEs | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 507 | 308 |
Derivatives | 0 | 0 |
Derivatives | $ 0 | $ 0 |
Consolidated Company-Sponsore_5
Consolidated Company-Sponsored Investment Funds (Change in Carrying Value Associated with Level 3 Financial Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||||
Balance as of beginning of period | $ 117 | $ 117 | $ 142 | $ 1,071 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Realized gains (losses), net | 0 | 0 | 0 | 0 |
Unrealized gains (losses), net | 1 | 0 | (24) | (954) |
Balance as of end of period | 118 | 117 | 118 | 117 |
Company-sponsored investment funds | ||||
Fair value measurement Level 3 reconciliation [Abstract] | ||||
Balance as of beginning of period | 11,834 | 5,871 | 8,373 | 2,264 |
Transfers (out) in | (3,602) | (406) | (3,788) | (82) |
Purchases | 1,187 | 1,247 | 8,978 | 7,381 |
Sales | (2,996) | (197) | (7,345) | (2,820) |
Realized gains (losses), net | 12 | 2 | 35 | (97) |
Unrealized gains (losses), net | (40) | (25) | 129 | (158) |
Accrued discounts | 6 | 2 | 19 | 6 |
Balance as of end of period | $ 6,401 | $ 6,494 | $ 6,401 | $ 6,494 |
Consolidated Company-Sponsore_6
Consolidated Company-Sponsored Investment Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Gains (losses) on derivative instruments | $ (115) | $ (5,755) | $ (28,997) | $ (3,807) | |
Cash collateral payable to trade counterparties | 300 | 300 | $ 4,800 | ||
Cash collateral received | 1,900 | 1,900 | 4,500 | ||
Net assets of investment products that are non-consolidated VIEs | 72,000,000 | 72,000,000 | |||
Maximum risk of loss in investment in VIEs | 11,000 | 11,000 | |||
VIEs | |||||
Derivative [Line Items] | |||||
Futures, forwards and swaps held | 100 | 100 | 500 | ||
Gains (losses) on derivative instruments | 600 | (500) | 3,300 | 400 | |
Cash collateral payable to trade counterparties | 1,351 | 1,351 | 856 | ||
Cash collateral received | 3,400 | 3,400 | 800 | ||
VOEs | |||||
Derivative [Line Items] | |||||
Futures, forwards and swaps held | 2,600 | 2,600 | 100 | ||
Gains (losses) on derivative instruments | 1,000 | $ 200 | 500 | $ 1,500 | |
Cash collateral payable to trade counterparties | 597 | 597 | 225 | ||
Cash collateral received | $ 1,300 | $ 1,300 | $ 500 |
Consolidated Company-Sponsore_7
Consolidated Company-Sponsored Investment Funds (Offsetting of Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Asset [Abstract] | ||
Cash Collateral Received | $ (300) | $ (4,800) |
VIEs | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 4,684 | 3,410 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Position | 4,684 | 3,410 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | (1,351) | (856) |
Net Amount | 3,333 | 2,554 |
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 4,820 | 3,891 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 4,820 | 3,891 |
Financial Instruments | 0 | 0 |
Cash Collateral Pledged | (3,368) | (829) |
Net Amount | 1,452 | 3,062 |
VOEs | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 8,127 | 3,816 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Position | 8,127 | 3,816 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | (597) | (225) |
Net Amount | 7,530 | 3,591 |
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 5,504 | 3,830 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 5,504 | 3,830 |
Financial Instruments | 0 | 0 |
Cash Collateral Pledged | (1,291) | (547) |
Net Amount | $ 4,213 | $ 3,283 |
Units Outstanding (Details)
Units Outstanding (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Units Outstanding | ||
Outstanding as of December 31, 2018 (in units) | 268,850,276 | |
Options exercised (in units) | 443,800 | 600,000 |
Units issued (in units) | 2,073,854 | |
Units retired (in units) | (3,184,973) | |
Balance as of September 30, 2019 (in units) | 268,182,957 | |
Limited Partners' Capital Account [Line Items] | ||
Units purchased and retired (in units) | 3,184,973 | |
AB Units | ||
Units Outstanding | ||
Units retired (in units) | (982) | |
Limited Partners' Capital Account [Line Items] | ||
Units purchased and retired (in units) | 982 |
Debt (Details)
Debt (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Short-term debt outstanding | $ 383,107,000 | $ 546,267,000 |
Debt issuance costs | 1,600,000 | 1,900,000 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term debt outstanding | $ 304,700,000 | $ 523,200,000 |
Weighted average interest rate | 2.20% | 2.70% |
Average daily borrowings | $ 464,500,000 | $ 350,300,000 |
Weighted average interest rates on average daily borrowings | 2.60% | 2.00% |
Line of Credit | ||
Short-term Debt [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |
Revolving Credit Facility | Line of Credit | ||
Short-term Debt [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 200,000,000 | |
Amount outstanding | $ 80,000,000 | $ 25,000,000 |
Interest rate | 2.90% | 3.40% |
Average daily borrowings | $ 28,000,000 | $ 19,400,000 |
Weighted average interest rates | 3.40% | 2.80% |
Non-controlling Interests (Deta
Non-controlling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Noncontrolling Interest [Line Items] | |||||
Non-redeemable non-controlling interests | $ 18 | $ 32 | $ 92 | $ 150 | |
Total non-controlling interest in net income | 4,145 | 726 | 22,018 | 23,637 | |
Non-redeemable non-controlling interest | 0 | 0 | $ 949 | ||
Redeemable non-controlling interest | 291,524 | 291,524 | 148,809 | ||
CPH acquisition | |||||
Noncontrolling Interest [Line Items] | |||||
Non-redeemable non-controlling interest | 0 | 0 | 949 | ||
Redeemable non-controlling interest | $ 0 | $ 0 | 2,888 | ||
Ownership percentage | 100.00% | 100.00% | |||
Other | |||||
Noncontrolling Interest [Line Items] | |||||
Non-redeemable non-controlling interests | $ 18 | 78 | $ 92 | 249 | |
Company-sponsored investment funds | |||||
Noncontrolling Interest [Line Items] | |||||
Non-redeemable non-controlling interests | 0 | (46) | 0 | (99) | |
Redeemable non-controlling interests | 4,127 | $ 694 | 21,926 | $ 23,487 | |
Non-redeemable non-controlling interest | 0 | 0 | 0 | ||
Redeemable non-controlling interest | $ 291,524 | $ 291,524 | $ 145,921 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Business Acquisition [Line Items] | ||||
Payables recorded under contingent payment arrangements | $ 17,384 | $ 0 | ||
Goodwill | $ 3,076,926 | $ 3,066,700 | ||
Autonomous | ||||
Business Acquisition [Line Items] | ||||
Percentage of interests acquired | 100.00% | |||
Initial cash purchase price consideration | $ 6,500 | |||
Payables recorded under contingent payment arrangements | $ 17,400 | |||
Contingent consideration payable, term | 5 years | 5 years | ||
Excess of purchase price over the current fair value of identifiable net assets acquired | $ 5,600 | |||
Goodwill | $ 10,200 | |||
Compensation expense, additional cash payments, amortization term | 2 years | |||
Compensation expense, contingent consideration payable, amortization term | 5 years | |||
Customer relationships and trademarks | Autonomous | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 8,100 |
Uncategorized Items - ablp20190
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | General Partner [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 349,000 |
Accounting Standards Update 2014-09 [Member] | Limited Partner [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 34,601,000 |