Cover Page
Cover Page - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 000-29961 | |
Entity Registrant Name | ALLIANCEBERNSTEIN L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-4064930 | |
Entity Address, Address Line One | 501 Commerce Street | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37203 | |
City Area Code | 615 | |
Local Phone Number | 622-0000 | |
Title of 12(g) Security | Units of Limited Partnership Interest | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
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 | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 285,979,913 | |
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE This Form 10-K does not incorporate any document by reference. | |
Entity Central Index Key | 0001109448 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Public Float | $ 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Nashville, Tennessee |
Auditor Firm ID | 238 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 1,130,143 | $ 1,285,700 |
Cash and securities segregated, at fair value (cost $1,511,916 and $1,503,554) | 1,522,431 | 1,503,957 |
Receivables, net: | ||
Brokers and dealers | 112,226 | 65,897 |
Brokerage clients | 1,881,496 | 2,059,842 |
AB funds fees | 314,247 | 340,158 |
Other fees | 127,040 | 185,653 |
Investments: | ||
Long-term incentive compensation-related | 47,870 | 63,839 |
Other | 169,648 | 209,579 |
Assets of consolidated company-sponsored investment funds: | ||
Furniture, equipment and leasehold improvements, net | 189,258 | 169,175 |
Goodwill | 3,598,591 | 3,091,763 |
Intangible assets, net | 310,203 | 41,531 |
Deferred sales commissions, net | 52,250 | 74,899 |
Right-of-use assets | 371,898 | 421,980 |
Assets held for sale | 551,351 | 0 |
Other assets | 179,568 | 262,303 |
Total assets | 11,138,931 | 10,510,088 |
Payables: | ||
Brokers and dealers | 389,828 | 265,957 |
Securities sold not yet purchased | 0 | 3,828 |
Brokerage clients | 3,322,903 | 3,603,558 |
AB mutual funds | 162,291 | 94,962 |
Contingent payment arrangements | 247,309 | 38,260 |
Accounts payable and accrued expenses | 173,466 | 219,047 |
Lease liabilities | 427,479 | 490,735 |
Accrued compensation and benefits | 415,878 | 369,649 |
Debt | 990,000 | 755,000 |
Liabilities held for sale | 107,952 | 0 |
Total liabilities | 6,292,635 | 5,927,996 |
Commitments and contingencies (See Note 14) | ||
Redeemable non-controlling interest of consolidated entities | 368,656 | 421,169 |
Capital: | ||
General Partner | 45,985 | 42,850 |
Limited partners: 285,979,913 and 271,453,043 units issued and outstanding | 4,648,113 | 4,336,211 |
Receivables from affiliates | (4,270) | (8,333) |
AB Holding Units held for long-term incentive compensation plans | (95,318) | (119,470) |
Accumulated other comprehensive loss | (129,477) | (90,335) |
Partners’ capital attributable to AB Unitholders | 4,465,033 | 4,160,923 |
Non-redeemable non-controlling interests in consolidated entities | 12,607 | 0 |
Total capital | 4,477,640 | 4,160,923 |
Total liabilities, non-controlling interest and capital | 11,138,931 | 10,510,088 |
Consolidated company-sponsored investment funds | ||
Assets of consolidated company-sponsored investment funds: | ||
Cash and cash equivalents | 19,751 | 90,326 |
Investments | 516,536 | 613,025 |
Other assets | 44,424 | 30,461 |
Total assets | 580,711 | 733,812 |
Payables: | ||
Liabilities of consolidated company-sponsored investment funds | 55,529 | 87,000 |
Total liabilities | 55,529 | 87,000 |
Redeemable non-controlling interest of consolidated entities | 368,656 | 421,169 |
Capital: | ||
Total capital | 156,526 | 225,643 |
Total liabilities, non-controlling interest and capital | $ 580,711 | $ 733,812 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and securities segregated, at cost | $ 1,511,916 | $ 1,503,554 |
Capital: | ||
Limited partners units issued (in units) | 285,979,913 | 271,453,043 |
Limited partners, units outstanding (in units) | 285,979,913 | 271,453,043 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Dividend and interest income | $ 123,091 | $ 38,734 | $ 50,923 |
Investment (losses) | (102,413) | (636) | (16,401) |
Other revenues | 105,544 | 108,409 | 104,703 |
Total revenues | 4,120,728 | 4,445,288 | 3,724,186 |
Less: Interest expense | 66,438 | 3,686 | 15,650 |
Net revenues | 4,054,290 | 4,441,602 | 3,708,536 |
Expenses: | |||
Employee compensation and benefits | 1,666,636 | 1,716,013 | 1,494,198 |
Promotion and servicing: | |||
Amortization of deferred sales commissions | 34,762 | 34,364 | 27,355 |
Trade execution, marketing, T&E and other | 215,556 | 197,486 | 189,787 |
General and administrative | 641,635 | 555,608 | 491,070 |
Contingent payment arrangements | 6,563 | 2,710 | 1,855 |
Interest on borrowings | 17,906 | 5,145 | 6,180 |
Amortization of intangible assets | 26,564 | 5,697 | 21,372 |
Total expenses | 3,239,194 | 3,225,140 | 2,801,100 |
Operating income | 815,096 | 1,216,462 | 907,436 |
Income tax | 39,639 | 62,728 | 45,653 |
Net income | 775,457 | 1,153,734 | 861,783 |
Net (loss) income of consolidated entities attributable to non-controlling interests | (56,356) | 5,111 | (4,169) |
Net income attributable to AB Unitholders | $ 831,813 | $ 1,148,623 | $ 865,952 |
Net income per AB Unit: | |||
Basic (in dollars per share) | $ 3.01 | $ 4.18 | $ 3.19 |
Diluted (in dollars per share) | $ 3.01 | $ 4.18 | $ 3.19 |
Investment advisory and services fees | |||
Revenues: | |||
Revenue subject to contracts with customers | $ 2,971,038 | $ 3,194,524 | $ 2,595,436 |
Bernstein research services | |||
Revenues: | |||
Revenue subject to contracts with customers | 416,273 | 452,017 | 459,744 |
Distribution related | |||
Revenues: | |||
Revenue subject to contracts with customers | 607,195 | 652,240 | 529,781 |
Promotion and servicing: | |||
Distribution-related payments | $ 629,572 | $ 708,117 | $ 569,283 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 775,457 | $ 1,153,734 | $ 861,783 |
Other comprehensive income: | |||
Foreign currency translation adjustments, before reclassification and tax: | (47,208) | (7,839) | 23,882 |
Less: reclassification adjustment for gains (losses) included in net income upon liquidation | 0 | 4,458 | (216) |
Foreign currency translation adjustments, before tax | (47,208) | (12,297) | 24,098 |
Income tax benefit (expense) | 1,215 | 457 | (854) |
Foreign currency translation adjustments, net of tax | (45,993) | (11,840) | 23,244 |
Changes in employee benefit related items: | |||
Amortization of prior service cost | 24 | 24 | 24 |
Recognized actuarial gain (loss) | 6,922 | 15,743 | (4,280) |
Changes in employee benefit related items | 6,946 | 15,767 | (4,256) |
Income tax (expense) | (95) | (59) | (187) |
Employee benefit related items, net of tax | 6,851 | 15,708 | (4,443) |
Other comprehensive (loss) gain | (39,142) | 3,868 | 18,801 |
Less: Comprehensive (loss) income in consolidated entities attributable to non-controlling interests | (56,356) | 5,111 | (4,169) |
Comprehensive income attributable to AB Unitholders | $ 792,671 | $ 1,152,491 | $ 884,753 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Receivables from Affiliates | AB Holding Units held for Long-term Incentive Compensation Plans | Accumulated Other Comprehensive (Loss) | Total Partners' Capital attributable to AB Unitholders | Non-redeemable Non-controlling Interests in Consolidated Entities | General Partner’s Capital | General Partner’s Capital Cumulative Effect, Period of Adoption, Adjustment | Limited Partners' Capital | Limited Partners' Capital Cumulative Effect, Period of Adoption, Adjustment |
Balance, beginning of year at Dec. 31, 2019 | $ (9,011) | $ (76,310) | $ (113,004) | $ 0 | $ 41,225 | $ 0 | $ 4,174,201 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 861,783 | 8,660 | 857,292 | |||||||
Cash distributions | (8,376) | (828,503) | ||||||||
Long-term incentive compensation plans activity | 802 | (23) | (2,147) | |||||||
Retirement of AB Units, net | (28,696) | |||||||||
Issuance of AB Units, net | 290 | 28,642 | ||||||||
Capital contributions from (to) AB Holding | (107) | |||||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (148,624) | |||||||||
Long-term incentive compensation awards expense | 194,840 | |||||||||
Re-valuation of AB Holding Units held in rabbi trust | 1,556 | |||||||||
Foreign currency translation adjustment | 23,244 | 23,244 | ||||||||
Changes in employee benefit related items, net of tax | (4,443) | |||||||||
Other | 15 | |||||||||
CarVal acquisition | 0 | |||||||||
Balance, end of year at Dec. 31, 2020 | (8,316) | (57,219) | (94,203) | $ 4,111,523 | 0 | 41,776 | 0 | 4,229,485 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total capital | 4,111,523 | |||||||||
Net income | 1,153,734 | 11,486 | 1,137,137 | |||||||
Cash distributions | (10,605) | (1,049,287) | ||||||||
Long-term incentive compensation plans activity | 941 | 117 | 11,586 | |||||||
Retirement of AB Units, net | (7,348) | |||||||||
Issuance of AB Units, net | 76 | 7,290 | ||||||||
Capital contributions from (to) AB Holding | (958) | |||||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (261,825) | |||||||||
Long-term incentive compensation awards expense | 215,484 | |||||||||
Re-valuation of AB Holding Units held in rabbi trust | (9,690) | |||||||||
Foreign currency translation adjustment | (11,840) | (11,840) | ||||||||
Changes in employee benefit related items, net of tax | 15,708 | |||||||||
Other | 1,128 | |||||||||
CarVal acquisition | 0 | |||||||||
Balance, end of year at Dec. 31, 2021 | 4,160,923 | (8,333) | (119,470) | (90,335) | 4,160,923 | 0 | 42,850 | $ 5,892 | 4,336,211 | $ 583,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total capital | 4,160,923 | |||||||||
Net income | 775,457 | 8,318 | 823,495 | |||||||
Cash distributions | (10,715) | (1,059,105) | ||||||||
Long-term incentive compensation plans activity | 607 | 25 | 2,521 | |||||||
Retirement of AB Units, net | (385) | (38,286) | ||||||||
Issuance of AB Units, net | 40,346 | |||||||||
Capital contributions from (to) AB Holding | 3,456 | |||||||||
Purchases of AB Holding Units to fund long-term compensation plans, net | (210,568) | |||||||||
Long-term incentive compensation awards expense | 198,783 | |||||||||
Re-valuation of AB Holding Units held in rabbi trust | (4,240) | |||||||||
Foreign currency translation adjustment | (45,993) | (45,993) | ||||||||
Changes in employee benefit related items, net of tax | 6,851 | |||||||||
Other | (169) | |||||||||
CarVal acquisition | 12,607 | |||||||||
Balance, end of year at Dec. 31, 2022 | 4,465,033 | $ (4,270) | $ (95,318) | $ (129,477) | $ 4,465,033 | $ 12,607 | $ 45,985 | $ 4,648,113 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total capital | $ 4,477,640 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 775,457 | $ 1,153,734 | $ 861,783 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred sales commissions | 34,762 | 34,364 | 27,355 |
Non-cash long-term incentive compensation expense | 199,390 | 216,425 | 195,642 |
Depreciation and other amortization | 66,617 | 44,985 | 61,028 |
Unrealized losses on investments | 40,857 | 4,454 | 10,405 |
Non-cash lease expense | 99,861 | 98,773 | 98,798 |
Adjustments to Assets Held-For-Sale | 7,400 | 0 | 0 |
Other, net | 14,604 | 22,580 | (2,914) |
Changes in assets and liabilities: | |||
(Increase) decrease in securities, segregated | (18,474) | 249,521 | (658,612) |
Decrease (increase) in receivables | 35,410 | (360,789) | (182,684) |
(Increase) decrease in investments | (10,331) | (27,000) | 7,597 |
(Increase) in deferred sales commissions | (12,113) | (45,197) | (55,125) |
(Increase) decrease in other assets | (5,487) | (6,578) | 69,160 |
Increase in payables | 110,112 | 214,139 | 861,502 |
(Decrease) increase in accounts payable and accrued expenses | (8,424) | 35,877 | 10,666 |
(Decrease) increase in accrued compensation and benefits | (150,285) | 50,545 | 46,885 |
Cash payments to relieve operating lease liabilities | (109,182) | (114,769) | (115,656) |
Net cash provided by operating activities | 1,121,231 | 1,298,782 | 1,521,421 |
Cash flows from investing activities: | |||
Purchases of equity method investments | 0 | 0 | (4,079) |
Purchases of furniture, equipment and leasehold improvements | (62,308) | (61,931) | (41,504) |
Acquisition of businesses, net of cash acquired | 40,282 | (3,793) | (13,552) |
Net cash used in investing activities | (22,026) | (65,724) | (59,135) |
Cash flows from financing activities: | |||
Proceeds from debt, net | 235,000 | 80,000 | 115,000 |
(Decrease) increase in overdrafts payable | (25,411) | 16,192 | (12,633) |
Distributions to General Partner and Unitholders | (1,069,820) | (1,059,892) | (836,879) |
Proceeds from (Payments For) Contributions from (Distributions To) Affiliates | 1,590 | (2,346) | (867) |
Additional investments by AB Holding with proceeds from exercise of compensatory options to buy AB Holding Units | 178 | 3,402 | 147 |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards, net | (210,568) | (261,825) | (148,624) |
Payment of acquisition-related debt obligation | (42,661) | 0 | 0 |
Other, net | (2,131) | (2,186) | 306 |
Net cash used in financing activities | (1,109,980) | (912,956) | (1,102,583) |
Effect of exchange rate changes on cash and cash equivalents | (56,234) | (17,982) | 23,032 |
Net (decrease) increase in cash and cash equivalents | (67,009) | 302,120 | 382,735 |
Cash and cash equivalents as of beginning of the period | 1,376,026 | 1,073,906 | 691,171 |
Cash and cash equivalents as of end of the period | 1,309,017 | 1,376,026 | 1,073,906 |
Cash paid: | |||
Interest paid | 78,434 | 5,263 | 18,858 |
Income taxes paid | 55,473 | 55,656 | 59,791 |
Non-cash investing activities: | |||
Fair value of assets acquired (excluding cash acquired of $40.8 million, $2.8 million and $0.6 million, for 2022, 2021 and 2020, respectively) | 1,085,141 | 13,235 | 18,389 |
Fair value of deferred tax asset recorded | 5,072 | 0 | 0 |
Fair value of liabilities assumed | 296,750 | 1,642 | 437 |
Fair value of non-redeemable non-controlling interest recorded | 13,191 | 0 | 0 |
Non-cash financing activities: | |||
Payables recorded under contingent payment arrangements | 231,385 | 7,800 | 4,400 |
Equity consideration issued in connection with acquisition | 589,169 | 0 | 0 |
Consolidated company-sponsored investment funds | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Unrealized losses on investments | 73,194 | 1,882 | (854) |
Changes in assets and liabilities: | |||
(Increase) decrease in investments | 23,295 | (312,325) | 279,276 |
(Increase) decrease in other assets | (45,432) | 38,161 | 7,169 |
Cash flows from financing activities: | |||
Subscriptions (redemptions) of non-controlling interests of consolidated company-sponsored investment funds, net | $ 3,843 | $ 313,699 | $ (219,033) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | |||
Cash acquired from acquisition | $ 40.8 | $ 2.8 | $ 0.6 |
Business Description and Organi
Business Description and Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Organization | Business Description and Organization We provide diversified investment management, research and related services globally to a broad range of clients. Our principal services include: • Institutional Services —servicing our institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as Equitable Holdings, Inc. (" EQH ") and its subsidiaries, by means of separately managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles. • Retail Services —servicing our retail clients, primarily by means of retail mutual funds sponsored by AB or an affiliated company, sub-advisory relationships with mutual funds sponsored by third parties, separately managed account programs sponsored by financial intermediaries worldwide and other investment vehicles. • Private Wealth 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 asset management and private wealth management businesses. Our research disciplines include economic, fundamental equity, fixed income and quantitative research. In addition, we have expertise in multi-asset strategies, wealth management, environmental, social and corporate governance (" ESG "), and alternative investments. We provide a broad range of investment services with expertise in: • Actively managed equity strategies across global and regional universes, as well as capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities; • Actively managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; • Actively managed alternative investments, including hedge funds, fund of funds and direct assets (e.g., direct lending, real estate and private equity); • Portfolios with Purpose, including actively managed, impact-focused and Responsible+ (climate-conscious, ESG leaders, change catalysts) equity, fixed income and multi-asset strategies that address our clients evolving need to invest their capital with purpose while pursuing strong investment returns; • Multi-asset services and solutions, including dynamic asset allocation, customized target-date funds and target-risk funds; and • Some passive management, including index, ESG index and enhanced index strategies. Organization As of December 31, 2022, EQH owned approximately 3.5% of the issued and outstanding units representing assignments of beneficial ownership of limited partnership interests in AllianceBernstein Holding L.P. (“ AB Holding Units ”). AllianceBernstein Corporation (an indirect wholly-owned subsidiary of EQH, “ General Partner ”) is the general partner of both AllianceBernstein Holding L.P. (“ AB Holding ”) and AB. AllianceBernstein Corporation owns 100,000 general partnership units in AB Holding and a 1% general partnership interest in AB. As of December 31, 2022, 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 59.9 % AB Holding 39.4 Unaffiliated holders 0.7 100.0 % Including both the general partnership and limited partnership interests in AB Holding and AB, EQH and its subsidiaries had an approximate 61.3% economic interest in AB as of December 31, 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ( "US GAAP" ). The preparation of the 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Principles of Consolidation The 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 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. Recently Adopted Accounting Pronouncements or Accounting Pronouncements During 2022, there have been no recently adopted accounting pronouncements or pronouncements not yet adopted that have or are expected to have a material impact on our consolidated results of operations. Revenue Recognition Investment Advisory and Services Fees AB provides asset management services by managing customer assets and seeking to deliver investment returns to investors. Each investment management contract between AB and a customer creates a distinct, separately identifiable performance obligation for each day the customer’s assets are managed as the customer can benefit from each day of service. In accordance with ASC 606, a series of distinct goods and services that are substantially the same and have the same pattern of transfer to the customer are treated as a single performance obligation. Accordingly, we have determined that our investment and advisory services are performed over time and entitle us to variable consideration earned based on the value of the investors’ assets under management (“ AUM ”). We calculate AUM using established market-based valuation methods and fair valuation (non-observable market) methods. Market-based valuation methods include: last sale/settle prices from an exchange for actively-traded listed equities, options and futures; evaluated bid prices from recognized pricing vendors for fixed income, asset-backed or mortgage-backed issues; mid prices from recognized pricing vendors and brokers for credit default swaps; and quoted bids or spreads from pricing vendors and brokers for other derivative products. Fair valuation methods include: discounted cash flow models or any other methodology that is validated and approved by our Valuation Committee ( see paragraph immediately below for additional information about our Valuation Committee). Fair valuation methods are used only where AUM cannot be valued using market-based valuation methods, such as in the case of private equity or illiquid securities. The Valuation Committee, which consists of senior officers and employees, is responsible for overseeing the pricing and valuation of all investments held in client and AB portfolios. The Valuation Committee has adopted a Statement of Pricing Policies describing principles and policies that apply to pricing and valuing investments held in these portfolios. We also have a Pricing Group, which reports to the Valuation Committee and is responsible for overseeing the pricing process for all investments. We record as revenue investment advisory and services base fees, which we generally calculate as a percentage of AUM. At month-end, all the components of the transaction price ( i.e., the base fee calculation) are no longer variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. The transaction price for the asset management performance obligation for certain investment advisory contracts, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, which is calculated as either a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. The performance-based fees are forms of variable consideration and are therefore excluded from the transaction price until it becomes probable that there will not be significant reversal of the cumulative revenue recognized. At each reporting date, we evaluate the constraining factors, discussed below , surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include: the contractual claw-back provisions to which the variable consideration is subject, the length of time to which the uncertainty of the consideration is subject, the number and range of possible consideration amounts, the probability of significant fluctuations in the fund’s market value, the level at which the fund’s value exceeds the contractual threshold required to earn such a fee, and the materiality of the amount being evaluated. Bernstein Research Services Bernstein Research Services revenue consists principally of commissions received, and to a lesser but increasing extent, direct payments for trade execution services and equity research services provided to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the time of each trade and is based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured and significant reversal of such revenue is not probable. In the fourth quarter of 2022, AB and Société Générale (EURONEXT: SCGLY, “ SocGen ”), a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the Bernstein Research Services (" BRS ") business has been classified as held for sale. For further discussion, see Note 24 Acquisitions and Divestitures. Distribution Revenues Two of our subsidiaries act as distributors and/or placement agents of company-sponsored mutual funds and receive distribution services fees from certain of those funds as full or partial reimbursement of the distribution expenses they incur. The variable consideration can be determined in different ways, as discussed below , as we satisfy the performance obligation depending on the contractual arrangements with the customer and the specific product sold. Most open-end U.S. funds have adopted a plan under Rule 12b-1 of the Investment Company Act that allows the fund to pay, out of assets of the fund, distribution and service fees for the distribution and sale of its shares (“ 12b-1 fees ”). The open-end U.S. funds have such agreements with us, and we have selling and distribution agreements pursuant to which we pay sales commissions to the financial intermediaries that distribute our open-end U.S. funds. These agreements are terminable by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of fund shares. We record 12b-1 fees monthly based upon a percentage of the net asset value (“ NAV ”) of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. We accrue the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. We are acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis. We offer back-end load shares in limited instances and charge the investor a contingent deferred sales charge (“ CDSC ”) if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent on the timing of the redemption by the investor and the value of the sale proceeds. Due to these constraining factors, we exclude the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements are recorded as reductions of unamortized deferred sales commissions. Our Luxembourg subsidiary, the management company for most of our non-U.S. funds, earns a management fee that is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee may also contain a component that is paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an All-in-Fee). As we have concluded that asset management is distinct from distribution, we allocate a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices. Other Revenues Revenues from contracts with customers include a portion of other revenues, which consists primarily of shareholder servicing fees, as well as mutual fund reimbursements and other brokerage income. We provide shareholder services, which include transfer agency, administrative and recordkeeping services provided to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the number of shareholders’ accounts are resolved. Non-Contractual Revenues Dividend and interest income is accrued as earned. Investment gains and losses on the consolidated statements of income include unrealized gains and losses of trading and private equity investments stated at fair value, equity in earnings of our limited partnership hedge fund investments, and realized gains and losses on investments sold. Contract Assets and Liabilities We use the practical expedient for contracts that have an original duration of one year or less. Accordingly, we do not consider the time value of money and, instead, accrue the incremental costs of obtaining the contract when incurred. As of December 31, 2022, the balances of contract assets and contract liabilities are not considered material and, accordingly, no further disclosures are necessary. Consolidation of Company-Sponsored Investment Funds For legal entities (company-sponsored investment funds) evaluated for consolidation, we first determine whether the fees we receive and the interests we hold qualify as a variable interest in the entity, including an evaluation of fees paid to us as a decision maker or service provider to the entity being evaluated. Fees received by us are not variable interests if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services, (ii) the service arrangement includes only terms, conditions or amounts that are customarily present in arrangements for similar services negotiated at arm’s length, and (iii) our other economic interests in the entity held directly and indirectly through our related parties, as well as economic interests held by related parties under common control, would not absorb more than an insignificant amount of the entity’s losses or receive more than an insignificant amount of the entity’s benefits. For those entities in which we have a variable interest, we perform an analysis to determine whether the entity is a VIE by considering whether the entity’s equity investment at risk is insufficient, whether the investors lack decision making rights proportional to their ownership percentage of the entity, and whether the investors lack the obligation to absorb an entity’s expected losses or the right to receive an entity’s expected income. A VIE must be consolidated by its primary beneficiary, which generally is defined as the party that has a controlling financial interest in the VIE. We are deemed to have a controlling financial interest in a VIE if we have (i) the power to direct the activities of the VIE that most significantly affect the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive income from the VIE that could potentially be significant to the VIE. For purposes of evaluating (ii) above, fees paid to us as a decision maker or service provider are excluded if the amount of fees is commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, as well as quantitatively, as appropriate. If we have a variable interest in an entity that is determined not to be a VIE, the entity is then evaluated for consolidation under the VOE model. For limited partnerships and similar entities, we are deemed to have a controlling financial interest in a VOE, and would be required to consolidate the entity, if we own a majority of the entity’s kick-out rights through voting limited partnership interests and limited partners do not hold substantive participating rights (or other rights that would indicate that we do not control the entity). For entities other than limited partnerships, we are deemed to have a controlling financial interest in a VOE if we own a majority voting interest in the entity. The analysis performed regarding the determination of variable interests held, whether entities are VIEs or VOEs, and whether we have a controlling financial interest in such entities, requires the exercise of judgment. The analysis is updated continuously as circumstances change or new entities are formed. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits, money market accounts, 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 (and considered Level 1 securities in the fair value hierarchy). Fees Receivable, Net Fees receivable are shown net of allowances. An allowance for doubtful accounts related to investment advisory and services fees is determined through an analysis of the aging of receivables, assessments of collectability based on historical trends and other qualitative and quantitative factors, including our relationship with the client, the financial health (or ability to pay) of the client, current economic conditions and whether the account is active or closed. The allowance for doubtful accounts is not material to fees receivable. Brokerage Transactions Customers’ securities transactions are recorded on a settlement date basis, with related commission income and expenses reported on a trade date basis. Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements. We have the ability by contract or custom to sell or re-pledge this collateral and have done so at various times. As of December 31, 2022 and 2021, we had $267.1 million and $23.4 million of re-pledged securities, respectively. Principal securities transactions and related expenses are recorded on a trade date basis. Securities borrowed and securities loaned by our broker-dealer subsidiaries are recorded at the amount of cash collateral advanced or received in connection with the transaction and are included in receivables from and payables to brokers and dealers in the consolidated statements of financial condition. Securities borrowed transactions require us to deposit cash collateral with the lender. With respect to securities loaned, we receive cash collateral from the borrower. See Note 8 for securities borrowed and loaned amounts recorded in our consolidated statements of financial condition as of December 31, 2022 and 2021. The initial collateral advanced or received approximates or is greater than the fair value of securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. As of December 31, 2022 and 2021, there is no allowance provision required for the collateral advanced. Income or expense is recognized over the life of the transaction. Cash on deposit with clearing organizations for trade facilitation purposes is reported in assets held for sale as of December 31, 2022 and other assets as of December 31, 2021, in our consolidated statements of financial condition. As of December 31, 2021, we had $114.9 million of cash on deposit with clearing organizations. As of December 31, 2022 and 2021, we held no U.S. Treasury bills pledged as collateral. These clearing organizations have the ability by contract or custom to sell or re-pledge the collateral, if any. Current Expected Credit Losses- Receivables from Brokerage clients Receivables from clients primarily consists of margin loan balances. The value of the securities owned by clients and held as collateral for these receivables is not reflected in the consolidated financial statements and the collateral was not repledged or sold as of December 31, 2022 and 2021. We consider these financing receivables to be of good credit quality because these receivables are primarily collateralized by the related client investments. To estimate expected credit losses on margin loans, we applied the collateral maintenance practical expedient by comparing the amortized cost basis of the margin loans with the fair value of the collateral at the reporting date. Margin loans are limited to a percentage of the total value of the securities held in the client's account against those loans. AB requires, in the event of a decline in the market value of the securities in a margin account, the client to deposit additional securities or cash so that, at all times, the value of the securities in the account, at a minimum, cover the loan to the client. As such, AB reasonably expects that the borrower will be able to continually replenish collateral securing the financial asset and does not expect the fair value of collateral to fall below the amortized cost basis of the margin loans and, as a result, we consider the credit risk associated with these receivables to be minimal. In circumstances when a loan becomes undercollateralized and the client fails to deposit additional securities or cash, AB reserves the right to liquidate the account. Current Expected Credit Losses - Receivables from Revenue Contracts with Customers The majority of our revenue receivables are from investment advisory and service fees, and distribution revenues, that are typically paid out of the client accounts or third-party products consisting of cash and securities. Due to the size of the fees in relation to the value of the cash and securities in account or funds, the account value always exceeds the amortized cost basis of the receivables, resulting in a remote risk of loss. These receivables have a short duration, generally due within 30-90 days and there is minimal historical evidence of non-payment or market declines that would cause the fair value of the underlying securities to decline below the amortized cost of the receivables. AB maintains an allowance for credit losses based upon an estimate of the amount of potential credit losses in existing accounts receivable, as determined from a review of aging schedules, past due balances, historical collection experience and other specific account data. Once determined uncollectible, aged balances are written off as credit loss expense. This determination is based on careful analysis of individual receivables and aging schedules, and generally occurs when the receivable becomes over 360 days past due. Our aged receivables and amounts written off related to credit losses in any year are not material. Furniture, Equipment and Leasehold Improvements, Net Furniture, equipment and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is recognized on a straight-line basis over the estimated useful lives of eight years for furniture and three Goodwill Our acquisitions are accounted for under the acquisition method of accounting, where the cost of the acquisition is allocated on the basis of the estimated fair value of the assets acquired and the liabilities assumed. The excess of the purchase price over the fair value of identifiable assets acquired, net of liabilities assumed, results in the recognition of goodwill. On July 1, 2022, AB Holding acquired a 100% ownership interest in CarVal Investors L.P. (“ CarVal ”). Immediately following its acquisition of CarVal (the " CarVal acquisition "), AB Holding contributed 100% of its equity interests in CarVal to AB in exchange for AB Units (see Note 24 Acquisitions and Divestitures ). On November 22, 2022, AB and SocGen, a leading Eu ropean bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the BRS business has been classified as held for sale and $159.8 million of goodwill recorded on the consolidated statement of financial condition has been allocated to the held for sale disposal group. As AB is a single reporting unit, we have allocated goodwill to the disposal group based on the relative fair values of (1) the disposal group and (2) the portion of the reporting unit that will be retained. For further discussion, see Note 24 Acquisitions and Divestitures . As of December 31, 2022, we had goodwill of $3.6 billion on the consolidated statement of financial condition which included $666.1 million as a result of the CarVal acquisition in the third quarter of 2022, $2.8 billion as a result of the Sanford C. Bernstein Inc. (“ Bernstein ”) acquisition in 2000 and $291.9 million in regard to various smaller acquisitions. Approximately, $159.8 million of goodwill has been classified as assets held for sale on the consolidated statement of financial condition. Goodwill is tested annually, as of September 30, for impairment utilizing the market approach where the fair value of the reporting unit is based on its unadjusted market valuation (AB Units outstanding multiplied by AB Holding's Unit price) and adjusted market valuations assuming a control premium (when applicable). The price of a publicly traded AB Holding Unit serves as a reasonable starting point for valuing an AB Unit because each represents the same fractional interest in our underlying business. Throughout the year, the carrying value of goodwill is also reviewed for impairment if certain events or changes in circumstances occur and trigger whether an interim impairment test may be required. Such changes in circumstances may include, but are not limited to, significant transactions including acquisitions or divestitures; a sustained decrease in the price of an AB Holding Unit or declines in AB’s market capitalization that would suggest that the fair value of the reporting unit is less than the carrying amount; significant and unanticipated declines in AB’s assets under management or revenues; and/or lower than expected earnings per unit. Any of these changes in circumstances could suggest the possibility that goodwill is impaired, but none of these events or circumstances by itself would indicate that it is more likely than not that goodwill is impaired. Instead, they are merely recognized as triggering events for the consideration of impairment and must be viewed in combination with any mitigating or positive factors. A holistic evaluation of all events since the most recent quantitative impairment test must be done to determine whether it is more likely than not that the reporting unit is impaired. As of September 30, 2022, the impairment test indicated that goodwill was not impaired. The announcement of the planned joint venture between AB and SocGen and classification of the BRS business as held for sale on the consolidated statement of financial condition during the fourth quarter of 2022 was a triggering event requiring an interim impairment test; as such, we tested our goodwill as of December 31, 2022. The impairment test indicated that goodwill was not impaired. Under ASU 2017-04, Simplifying the Test for Goodwill Impairment, 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. Under this guidance, the goodwill impairment test no longer includes a determination by management of whether a decline in fair value is temporary; however, it is important that management's determination of fair value reflect the impact of changing market conditions, including the severity and anticipated duration of any such changes. Business Combinations We account for business combinations using the acquisition method of accounting whereby the identifiable assets and liabilities of the acquired business, as well as any noncontrolling interest in the acquired business, are recorded at their estimated fair values as of the date that we obtain control of the acquired business. Any purchase consideration in excess of the estimated fair values of the net assets acquired is recorded as goodwill. Acquisition-related expenses are expensed as incurred. Often, as part of the business combination, intangible assets are recorded based on their estimated fair value at the time of acquisition and primarily relate to acquired investment management contracts. We periodically review indefinite-lived intangible assets for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, we perform additional impairment tests to measure the amount of the impairment loss, if any. During 2022 and 2021, these expenses included an intangible asset impairment charge of $5.6 million and $1.0 million, respectively, related to various historical acquisitions. We periodically enter into contingent payment arrangements in connection with our business combinations. In these arrangements, we agree to pay additional consideration to the sellers to the extent that certain performance targets are achieved. We estimate the fair value of these potential future obligations at the time a business combination is consummated and record a liability on a discounted basis on our consolidated statement of financial condition. We then accrete the obligation to its expected payment amount over the measurement period. If our expected payment amount subsequently changes, the obligation is modified in the current period resulting in a gain or loss. Both gains and losses resulting from changes to expected payments and the accretion of these obligations to their expected payment amounts are reflected within contingent payment arrangements in our consolidated statements of income. The CarVal acquisition resulted in the recording of a contingent consideration payable of $228.9 million if certain performance targets are achieved over a six-year period (see Note 9 Fair Value and Note 24 Acquisitions and Divestitures ). During 2022, there were no impairments of contingent consideration payable recorded in the consolidated statements of income. During the fourth quarters of 2021 and 2020, we recorded an impairment of the contingent consideration payable of $0.6 million and $1.4 million, respectively. These impairments were related to our 2016 acquisition of Ramius Alternative Solutions LLC. Several valuation methods may be used to determine the fair value of assets acquired and liabilities assumed. For intangible assets, we typically use a method that is a form of the income approach, whereby a forecast of future cash flows attributable to the asset are discounted to present value using a risk-adjusted discount rate. Similarly for contingent liabilities, we develop a forecast of future cash flows attributable to the performance objectives that are then discounted to present value using a risk-adjusted discount rate. Some of the more significant estimates and assumptions inherent in the income approach include the amount and timing of projected future cash flows and the discount rate selected to measure the risks inherent in the future cash flows. See Note 24 Acquisitions and Divestitures . Intangible Assets, Net Intangible assets consist primarily of costs assigned to acquired investment management contracts based on their estimated fair value at the time of acquisition, less accumulated amortization. Intangible assets are recognized at fair value and generally are amortized on a straight-line basis over their estimated useful life ranging from 5 to 20 years. The CarVal acquisition resulted in recording of $303.0 million of finite-lived intangible assets primarily relating to investment management contracts and investor relationships with useful lives ranging from 5 to 10 years (see Note 24 Acquisitions and Divestitures ). As of December 31, 2022, intangible assets, net of accumulated amortization, of $310.2 million on the consolidated statement of financial condition consists of $295.0 million of finite-lived intangible assets subject to amortization and $15.2 million of indefinite-lived intangible assets not subject to amortization. As of December 31, 2021, intangible assets, net of accumulated amortization, of $41.5 million on the consolidated statement of financial condition consisted of $26.3 million of finite-lived intangible assets subject to amortization and $15.2 million of indefinite-lived intangible assets not subject to amortization in regard to other acquisitions. The gross carrying amount of finite-lived intangible assets totaled $327.9 million as of December 31, 2022 and $53.8 million as of December 31, 2021, and accumulated amortization was $32.9 million as of December 31, 2022 and $27.5 million as of December 31, 2021. Amortization expense was $26.6 million for 2022, $5.7 million for 2021 and $21.4 million for 2020. Estimated annual amortization expense is approximately $47 million annually in years one through three, $46 million in year four and approximately $25 million in year five. We periodically review indefinite-lived intangible assets for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, we perform additional impairment tests to measure the amount of the impairment loss, if any. During the fourth quarter of 2022 we performed an impairment assessment and recorded an impairment of $5.6 million related to our 2014 acquisition of CPH Capital. During the fourth quarters of 2021 and 2020, we recorded impairments of $1.0 million and $1.5 million, respectively, related to our 2016 acquisition of Ramius Alternative Solutions LLC. Due to the loss of acquired investment management contracts during each respective year, the carrying value of the finite-lived intangible assets exceeded the fair value of the contracts. We determined the fair value of the contracts using a discounted cash flow model. The impairment charge was recorded in general and administrative expenses Deferred Sales Commissions, Net We pay commissions to financial intermediaries in connection with the sale of shares of open-end company-sponsored mutual funds sold without a front-end sales ch |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenues for the years ended December 31, 2022, 2021 and 2020 consisted of the following: Years Ended December 31 2022 2021 2020 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 2,825,791 $ 2,949,405 $ 2,462,810 Performance-based fees 145,247 245,119 132,626 Bernstein research services 416,273 452,017 459,744 Distribution revenues All-in-management fees 290,740 350,674 331,268 12b-1 fees 69,041 83,920 75,973 Other distribution fees 247,414 217,646 122,540 Other revenues Shareholder servicing fees 86,661 90,225 82,317 Other 18,120 16,034 21,240 4,099,287 4,405,040 3,688,518 Not subject to contracts with customers: Dividend and interest income, net of interest expense 56,653 35,048 35,273 Investment (losses) (102,413) (636) (16,401) Other revenues 763 2,150 1,146 (44,997) 36,562 20,018 Total net revenues $ 4,054,290 $ 4,441,602 $ 3,708,536 |
Net Income Per Unit
Net Income Per Unit | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [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 year. 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 year. Years Ended December 31 2022 2021 2020 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 831,813 $ 1,148,623 $ 865,952 Weighted average units outstanding—basic 273,943 271,729 269,058 Dilutive effect of compensatory options to buy AB Holding Units 1 11 27 Weighted average units outstanding—diluted 273,944 271,740 269,085 Basic net income per AB Unit $ 3.01 $ 4.18 $ 3.19 Diluted net income per AB Unit $ 3.01 $ 4.18 $ 3.19 Years Ended December 31 2022 2021 2020 (in thousands) Anti-dilutive options excluded from diluted net income — — 29,056 |
Cash and Securities Segregated
Cash and Securities Segregated Under Federal Regulations and Other Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Cash and Securities Segregated Under Federal Regulations and Other Requirements | Cash and Securities Segregated Under Federal Regulations and Other RequirementsAs of both December 31, 2022 and 2021, $1.5 billion of U.S. Treasury Bills were segregated in a special reserve bank custody account for the exclusive benefit of our brokerage customers under Rule 15c3-3 of the Exchange Act. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of: Years Ended December 31 2022 2021 (in thousands) Equity securities: Long-term incentive compensation-related $ 21,055 $ 32,237 Seed capital 138,012 133,992 Other (1) — 18,243 Exchange-traded options (1) — 1,893 Investments in limited partnership hedge funds: Long-term incentive compensation-related 26,815 31,602 Seed capital 15,711 19,318 Time deposits 7,750 21,024 Other 8,175 15,109 Total investments $ 217,518 $ 273,418 (1) Amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, s ee Note 24 Acquisitions and Divestitures. Total investments related to long-term incentive compensation obligations of $47.9 million and $63.8 million as of December 31, 2022 and 2021, respectively, consist of company-sponsored mutual funds and hedge funds. For long-term incentive compensation awards granted before 2009, we typically made investments in company-sponsored mutual funds and hedge funds that were notionally elected by plan participants and maintained them (and continue to maintain them) in a consolidated rabbi trust or separate custodial account. The rabbi trust and custodial account enable us to hold such investments separate from our other assets for the purpose of settling our obligations to participants. The investments held in the rabbi trust and custodial account remain available to the general creditors of AB. The underlying investments of hedge funds in which we invest include long and short positions in equity securities, fixed income securities (including various agency and non-agency asset-based securities), currencies, commodities and derivatives (including various swaps and forward contracts). These investments are valued at quoted market prices or, where quoted market prices are not available, are fair valued based on the pricing policies and procedures of the underlying funds. We allocate seed capital to our investment teams to help develop new products and services for our clients. A portion of our seed capital trading investments are equity and fixed income products, primarily in the form of separately managed account portfolios, U.S. mutual funds, Luxembourg funds, Japanese investment trust management funds or Delaware business trusts. We also may allocate seed capital to investments in private equity funds. Regarding our seed capital investments, the amounts above reflect those funds in which we are not the primary beneficiary of a VIE or hold a controlling financial interest in a VOE. See Note 15, Consolidated Company-Sponsored Investment Funds , for a description of the seed capital investments that we consolidated. As of December 31, 2022 and 2021, our total seed capital investments were $309.6 million and $379.0 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 December 31, 2022 and 2021 were as follows: Years Ended December 31 2022 2021 (in thousands) Net (losses) gains recognized during the period $ (23,855) $ 19,240 Less: net gains recognized during the period on equity securities sold during the period 17,960 23,697 Unrealized losses recognized during the period on equity securities held $ (41,815) $ (4,457) |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments See Note 15, 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, fair value and gains and losses recognized in investment gains (losses) as of December 31, 2022 and 2021 for derivative instruments (excluding derivative instruments relating to our options desk trading activities discussed below ) not designated as hedging instruments were as follows: Notional Derivative Derivative Gains (in thousands) December 31, 2022 Exchange-traded futures $ 154,687 $ 1,768 $ 162 $ 19,994 Currency forwards 34,597 4,446 5,047 1,965 Interest rate swaps 16,847 386 262 70 Credit default swaps 225,671 17,507 7,302 (1,000) Total return swaps 28,742 605 933 14,828 Option swaps 50,000 — 6 5,211 Total derivatives $ 510,544 $ 24,712 $ 13,712 $ 41,068 December 31, 2021 Exchange-traded futures $ 131,876 $ 392 $ 1,186 $ (5,072) Currency forwards 66,058 7,344 6,980 1,746 Interest rate swaps 13,483 497 833 (316) Credit default swaps 155,757 6,594 6,967 (2,914) Total return swaps 63,817 595 527 (6,433) Option swaps 50,000 — 430 (309) Total derivatives $ 480,991 $ 15,422 $ 16,923 $ (13,298) As of December 31, 2022 and 2021, the derivative assets and liabilities are included in both receivables and payables to brokers and dealers on our consolidated statements of financial condition. Gains and losses on derivative instruments are reported in investment gains (losses) on the consolidated statements of income. We may be exposed to credit-related losses in the event of non-performance by counterparties to derivative financial instruments. We minimize our counterparty exposure through a credit review and approval process. In addition, we have executed various collateral arrangements with counterparties to the over-the-counter derivative transactions that require both pledging and accepting collateral in the form of cash. As of December 31, 2022 and 2021, we held $8.4 million and $2.9 million, respectively, of cash collateral payable to trade counterparties. This obligation to return cash is reported in payables to brokers and dealers in our consolidated statements of financial condition. Although notional amount is the typical measure of volume in the derivatives market, it is not used as a measure of credit risk. Generally, the current credit exposure of our derivative contracts is limited to the net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received. A derivative with positive value (a derivative asset) indicates existence of credit risk because the counterparty would owe us if the contract were closed. Alternatively, a derivative contract with negative value (a derivative liability) indicates we would owe money to the counterparty if the contract were closed. Generally, if there is more than one derivative transaction with a single counterparty, a master netting arrangement exists with respect to derivative transactions with that counterparty to provide for aggregate net settlement. Certain of our standardized contracts for over-the-counter derivative transactions (“ ISDA Master Agreements ”) contain credit risk related contingent provisions pertaining to each counterparty's credit rating. In some ISDA Master Agreements, if the counterparty’s credit rating, or in some agreements, our 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 December 31, 2022 and 2021, we delivered $4.2 million and $5.6 million, respectively, of cash collateral into brokerage accounts. We report this cash collateral in cash and cash equivalents in our consolidated statements of financial condition. As of December 31, 2022 long and short exchange-traded equity options were classified as held for sale on our consolidated statement of financial position. For further discussion, see Note 24 Acquisitions and Divestitures. As of December 31, 2021, we held $1.9 million, respectively, of long exchange-traded equity options, which are included in other investments on our consolidated statements of financial condition. In addition, as of December 31, 2021, we held $2.8 million, respectively, of |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Offsetting Assets and Liabilities See Note 15, Consolidated Company-Sponsored Investment Funds , for disclosure of offsetting assets and liabilities of our consolidated company-sponsored investment funds. Offsetting of assets as of December 31, 2022 and 2021 was as follows: Gross Gross Net Financial Cash Collateral Net (in thousands) December 31, 2022 Securities borrowed (1) $ 62,063 $ — $ 62,063 $ (62,058) $ — $ 5 Derivatives 24,712 — 24,712 — (8,361) 16,351 Long exchange-traded options (1) — — — — — — December 31, 2021 Securities borrowed $ 19,899 $ — $ 19,899 $ (18,327) $ — $ 1,572 Derivatives 15,422 — 15,422 — (2,872) 12,550 Long exchange-traded options 1,893 — 1,893 — — 1,893 Offsetting of liabilities as of December 31, 2022 and 2021 was as follows: Gross Gross Net Financial Cash Collateral Net (in thousands) December 31, 2022 Securities loaned (1) $ 272,580 $ — $ 272,580 $ (267,053) $ 5,527 Derivatives 13,712 — 13,712 — (4,158) 9,554 Short exchange-traded options (1) — — — — — — December 31, 2021 Securities loaned $ 23,911 $ — $ 23,911 $ (23,373) $ — $ 538 Derivatives 16,923 — 16,923 — (5,572) 11,351 Short exchange-traded options 2,774 — 2,774 — — 2,774 (1) Certain amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, s ee Note 24 Acquisitions and Divestitures . |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value See Note 15, 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 December 31, 2022 and 2021 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (2) Other Total December 31, 2022 (1) : Money markets $ 95,521 $ — $ — $ — $ — $ 95,521 Securities segregated (U.S. Treasury Bills) — 1,521,705 — — — 1,521,705 Derivatives 1,768 22,944 — — — 24,712 Investments: Equity securities 129,655 27,799 129 1,484 — 159,067 Limited partnership hedge funds (3) — — — — 42,526 42,526 Time deposits (4) — — — — 7,750 7,750 Other investments 6,689 — — — 1,486 8,175 Total investments 136,344 27,799 129 1,484 51,762 217,518 Total assets measured at fair value $ 233,633 $ 1,572,448 $ 129 $ 1,484 $ 51,762 $ 1,859,456 Derivatives 162 13,550 — — — 13,712 Contingent payment arrangements — — 247,309 — — 247,309 Total liabilities measured at fair value $ 162 $ 13,550 $ 247,309 $ — $ — $ 261,021 December 31, 2021: Money markets $ 151,156 $ — $ — $ — $ — $ 151,156 Securities segregated (U.S. Treasury Bills) — 1,503,828 — — — 1,503,828 Derivatives 392 15,030 — — — 15,422 Investments: Equity securities 144,917 39,284 126 145 — 184,472 Long exchange-traded options 1,893 — — — — 1,893 Limited partnership hedge funds (3) — — — — 50,920 50,920 Time deposits (4) — — — — 21,024 21,024 Other investments 9,094 — — — 6,015 15,109 Total investments 155,904 39,284 126 145 77,959 273,418 Total assets measured at fair value $ 307,452 $ 1,558,142 $ 126 $ 145 $ 77,959 $ 1,943,824 Securities sold not yet purchased: Short equities – corporate $ 1,054 $ — $ — $ — $ — $ 1,054 Short exchange-traded options 2,774 — — — — 2,774 Derivatives 1,186 15,737 — — — 16,923 Contingent payment arrangements — — 38,260 — — 38,260 Total liabilities measured at fair value $ 5,014 $ 15,737 $ 38,260 $ — $ — $ 59,011 (1) Certain amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, s ee Note 24 Acquisitions and Divestitures . (2) Investments measured at fair value using NAV (or its equivalent) as a practical expedient. (3) Investments in equity method investees that are not measured at fair value in accordance with GAAP. (4) Investments carried at amortized cost that are not measured at fair value in accordance with GAAP. Other investments included in Level 1 of the fair value hierarchy include our investment in a mutual fund measured at fair value ($6.7 million and $9.1 million as of December 31, 2022 and 2021, respectively). Other investments not measured at fair value include (i) investments in start-up companies that do not have a readily available fair value (these investments were $0.3 million as of December 31, 2022 and 2021), (ii) investments in equity method investees that are not measured at fair value in accordance with GAAP (during the third quarter of 2022, we sold this investment and the balance was reduced to zero, as compared to $2.9 million as of December 31, 2021), and (iii) broker-dealer exchange memberships that are not measured at fair value in accordance with GAAP ($1.2 million and $2.8 million as of December 31, 2022 and 2021, respectively). We provide below a description of the fair value methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: • Money markets: We invest excess cash in various money market funds that are valued based on quoted prices in active markets; these are included in Level 1 of the valuation hierarchy. • Treasury Bills: We hold U.S. Treasury Bills, which are primarily segregated in a special reserve bank custody account as required by Rule 15c3-3 of the Exchange Act. These securities are valued based on quoted yields in secondary markets and are included in Level 2 of the valuation hierarchy. • Equity securities: Our equity securities consist principally of company-sponsored mutual funds with NAVs and various separately managed portfolios consisting primarily of equity and fixed income mutual funds with quoted prices in active markets, which are included in Level 1 of the valuation hierarchy. In addition, some securities are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy. • Derivatives: We hold exchange-traded futures with counterparties that are included in Level 1 of the valuation hierarchy. In addition, we also hold currency forward contracts, interest rate swaps, credit default swaps, option swaps and total return swaps with counterparties that are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy. • Options: We hold 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. As of December 31, 2022 these securities have been classified as held for sale on the consolidated statement of financial position. • 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 upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. During the years ended December 31, 2022 and 2021, there were no transfers between Level 2 and Level 3 securities. The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as equity securities, is as follows: December 31 2022 2021 (in thousands) Balance as of beginning of period $ 126 $ 125 Purchases — — Sales — — Realized gains (losses), net — — Unrealized gains (losses), net 3 1 Balance as of end of period $ 129 $ 126 Realized and unrealized gains and losses on Level 3 financial instruments are recorded in investment gains and losses in the consolidated statements of income. Our acquisitions may include contingent consideration arrangements as part of the purchase price. The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as contingent payment arrangements, is as follows: December 31 2022 2021 (in thousands) Balance as of beginning of period $ 38,260 $ 27,750 Addition 231,385 7,800 Accretion 6,563 3,310 Changes in estimates — (600) Held for sale reclassification (28,899) — Balance as of end of period $ 247,309 $ 38,260 In the third quarter of 2022, we acquired CarVal and recorded a contingent consideration liability of $228.9 million (see Note 24 Acquisitions and Divestitures ). The liability, ranging from zero to $650.0 million, is based on CarVal achieving certain performance objectives over a six-year period ending December 31, 2027. The liability was valued using a forecast of future cash flows attributable to the performance objectives that are discounted to present value using a risk-adjusted discount rate. The expected revenue growth rates range from 3.9% to 31.5%, with a weighted average of 14.1%, calculated using cumulative revenues and range of revenue growth rates. The discount rates range from 4.1% to 4.6%, with a weighted average of 4.2%, calculated using total contingent liabilities and range of discount rates. As of December 31, 2022, including the CarVal acquisition, the expected revenue growth rates range from 2.0% to 83.9%, with a weighted average of 11.5%, calculated using cumulative revenues and range of revenue growth rates (excluding revenue growth from additional AUM contributed in year of acquisition). The discount rates ranged from 1.9% to 10.4%, with a weighted average of 4.5%, calculated using total contingent liabilities and range of discount rates. As of December 31, 2021, the expected revenue growth rates range from 2.0% to 83.9%, with a weighted average of 11.9%, calculated using cumulative revenues and range of revenue growth rates (excluding revenue growth from additional AUM contributed in year of acquisition). The discount rates ranged from 1.9% to 10.4%, with a weighted average of 7.0%, calculated using total contingent liabilities and range of discount rates. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We did not have any material assets or liabilities that were measured at fair value for impairment on a nonrecurring basis during the years ended December 31, 2022 or 2021. |
Furniture, Equipment and Leaseh
Furniture, Equipment and Leasehold Improvements, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Furniture, Equipment and Leasehold Improvements, Net | Furniture, Equipment and Leasehold Improvements, Net Furniture, equipment and leasehold improvements, net consist of: Years Ended December 31 2022 2021 (in thousands) Furniture and equipment $ 605,567 $ 584,161 Leasehold improvements 323,982 301,036 Total 929,549 885,197 Less: Accumulated depreciation and amortization (740,291) (716,022) Furniture, equipment and leasehold improvements, net $ 189,258 $ 169,175 Depreciation and amortization expense on furniture, equipment and leasehold improvements were $39.7 million, $38.8 million and $39.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Deferred Sales Commissions, Net
Deferred Sales Commissions, Net | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Sales Commissions, Net | Deferred Sales Commissions, Net The components of deferred sales commissions, net for the years ended December 31, 2022 and 2021 were as follows (excluding amounts related to fully amortized deferred sales commissions): Years Ended December 31 2022 2021 (in thousands) Carrying amount of deferred sales commissions $ 172,181 $ 177,233 Less: Accumulated amortization (66,184) (53,976) Cumulative CDSC received (53,747) (48,358) Deferred sales commissions, net $ 52,250 $ 74,899 Amortization expense was $34.8 million, $34.4 million and $27.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Estimated future amortization expense related to the December 31, 2022 net asset balance, assuming no additional CDSC is received in future periods, is as follows (in thousands): 2023 $ 28,683 2024 17,848 2025 5,309 2026 410 Total $ 52,250 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility AB has an $800.0 million committed, unsecured senior revolving credit facility (the " Credit Facility ") with a group of commercial banks and other lenders, which matures on October 13, 2026. The Credit Facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $200.0 million; any such increase is subject to the consent of the affected lenders. The Credit Facility is available for AB and Sanford C. Bernstein & Co., LLC (" SCB LLC ") business purposes, including the support of AB’s commercial paper program. Both AB and SCB LLC can draw directly under the Credit Facility and management may draw on the Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the Credit Facility. The Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2022, we were in compliance with these covenants. The Credit Facility also includes customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender’s commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the Credit Facility would automatically become immediately due and payable, and the lender’s commitments automatically would terminate. Amounts under the Credit Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. Voluntary prepayments and commitment reductions requested by us are permitted at any time without a fee (other than customary breakage costs relating to the prepayment of any drawn loans) upon proper notice and subject to a minimum dollar requirement. Borrowings under the Credit Facility bear interest at a rate per annum, which will be, at our option, a rate equal to an applicable margin, which is subject to adjustment based on the credit ratings of AB, plus one of the following indices: London Interbank Offered Rate; a floating base rate; or the Federal Funds rate. As of December 31, 2022 and 2021, we had no amounts outstanding under the Credit Facility. During 2022 and 2021, we did not draw upon the Credit Facility. EQH Facility AB also has a $900.0 million committed, unsecured senior credit facility (“ EQH Facility ”) with EQH. The EQH Facility matures on November 4, 2024 and is available for AB's general business purposes. Borrowings under the EQH Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates. The EQH Facility contains affirmative, negative and financial covenants which are substantially similar to those in AB’s committed bank facilities. The EQH Facility also includes customary events of default substantially similar to those in AB’s committed bank facilities, including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or the lender’s commitment may be terminated. Amounts under the EQH Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. AB or EQH may reduce or terminate the commitment at any time without penalty upon proper notice. EQH also may terminate the facility immediately upon a change of control of our general partner. As of December 31, 2022 and 2021, AB had $900.0 million and $755.0 million outstanding under the EQH Facility with interest rates of approximately 4.3% and 0.2%, respectively. Average daily borrowings on the EQH Facility during 2022 and 2021 were $655.2 million and $404.6 million, respectively, with weighted average interest rates of approximately 1.7% and 0.2%, respectively. EQH Uncommitted Facility In addition to the EQH Facility, AB has a $300.0 million uncommitted, unsecured senior credit facility (“ EQH Uncommitted Facility ”) with EQH. The EQH Uncommitted Facility matures on September 1, 2024 and is available for AB's general business purposes. Borrowings under the EQH Unsecured Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates. The EQH Uncommitted Facility contains affirmative, negative and financial covenants which are substantially similar to those in the EQH Facility. As of December 31, 2022, we had $90.0 million outstanding under the EQH Uncommitted Facility with an interest rate of approximately 4.3%. Average daily borrowings on the EQH Facility during 2022 were $0.7 million with a weighted average interest rate of approximately 4.3%. During 2021, we did not draw on the facility. Commercial Paper As of both December 31, 2022 and 2021, we had no commercial paper outstanding. The commercial paper is short term in nature, and as such, recorded value is estimated to approximate fair value (and considered a Level 2 security in the fair value hierarchy). Average daily borrowings of commercial paper during 2022 and 2021 were $189.9 million and $157.0 million, respectively, with weighted average interest rates of approximately 1.5% and 0.2%, respectively. Revolving Credit Facility AB had a $200.0 million committed, unsecured senior revolving credit facility (the " Revolver ") with a leading international bank, which matured on November 16, 2021. Average daily borrowings under the Revolver for 2021 were $13.3 million with a weighted average interest rate of approximately 1.1%. SCB Lines of Credit SCB LLC currently has five uncommitted lines of credit with five financial institutions. Four of these lines of credit permit us to borrow up to an aggregate of approximately $315.0 million, with AB named as an additional borrower, while the other line has no stated limit. AB has agreed to guarantee the obligations on SCB LLC under these lines of credit. As of December 31, 2022 and 2021, SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings on the lines of credit during 2022 and 2021 were $1.4 million and $47 thousand, respectively, with weighted average interest rates of approximately 3.7% and 0.9%, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LeasesWe lease office space, office equipment and technology under various operating and financing leases. Our current leases have remaining lease terms of one year to 15 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Since 2010, we have sub-leased over one million square feet of office space. Leases included in the consolidated statements of financial condition as of December 31, 2022 and 2021 were as follows: Classification December 31, 2022 December 31, 2021 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 360,092 $ 414,105 Operating lease liabilities Lease liabilities 415,539 482,781 Finance Leases Property and equipment, gross Right-of-use assets 18,116 10,947 Amortization of right-of-use assets Right-of-use assets (6,310) (3,072) Property and equipment, net 11,806 7,875 Finance lease liabilities Lease liabilities 11,940 7,954 The components of lease expense included in the consolidated statements of income for the years ended December 31, 2022 and 2021 were as follows: Years Ended December 31 Classification 2022 2021 (in thousands) Operating lease cost General and administrative $ 97,198 $ 97,466 Financing lease cost: Amortization of right-of-use assets General and administrative 3,860 2,355 Interest on lease liabilities Interest expense 200 107 Total finance lease cost 4,060 2,462 Variable lease cost (1) General and administrative 40,552 39,827 Sublease income General and administrative (34,420) (37,317) Net lease cost $ 107,390 $ 102,438 (1) Variable lease expense includes operating expenses, real estate taxes and employee parking. The sublease 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 are as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2023 $ 97,489 $ 4,169 $ 101,658 2024 104,596 3,258 107,854 2025 37,319 2,828 40,147 2026 35,808 1,810 37,618 2027 32,821 324 33,145 Thereafter 146,319 — 146,319 Total lease payments 454,352 12,389 $ 466,741 Less interest (38,813) (449) Present value of lease liabilities $ 415,539 $ 11,940 We have signed a lease that commences in 2024, relating to approximately 166,000 square feet of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20-year lease term is approximately $393.0 million. Lease term and discount rate: Weighted average remaining lease term (years): Operating leases 7.35 Finance leases 3.47 Weighted average discount rate: Operating leases 2.69 % Finance leases 2.10 % Supplemental non-cash activity related to leases are as follows: Years Ended December 31 2022 2021 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases $ 38,875 $ 82,379 Finance leases 7,791 7,782 |
Leases | LeasesWe lease office space, office equipment and technology under various operating and financing leases. Our current leases have remaining lease terms of one year to 15 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Since 2010, we have sub-leased over one million square feet of office space. Leases included in the consolidated statements of financial condition as of December 31, 2022 and 2021 were as follows: Classification December 31, 2022 December 31, 2021 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 360,092 $ 414,105 Operating lease liabilities Lease liabilities 415,539 482,781 Finance Leases Property and equipment, gross Right-of-use assets 18,116 10,947 Amortization of right-of-use assets Right-of-use assets (6,310) (3,072) Property and equipment, net 11,806 7,875 Finance lease liabilities Lease liabilities 11,940 7,954 The components of lease expense included in the consolidated statements of income for the years ended December 31, 2022 and 2021 were as follows: Years Ended December 31 Classification 2022 2021 (in thousands) Operating lease cost General and administrative $ 97,198 $ 97,466 Financing lease cost: Amortization of right-of-use assets General and administrative 3,860 2,355 Interest on lease liabilities Interest expense 200 107 Total finance lease cost 4,060 2,462 Variable lease cost (1) General and administrative 40,552 39,827 Sublease income General and administrative (34,420) (37,317) Net lease cost $ 107,390 $ 102,438 (1) Variable lease expense includes operating expenses, real estate taxes and employee parking. The sublease 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 are as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2023 $ 97,489 $ 4,169 $ 101,658 2024 104,596 3,258 107,854 2025 37,319 2,828 40,147 2026 35,808 1,810 37,618 2027 32,821 324 33,145 Thereafter 146,319 — 146,319 Total lease payments 454,352 12,389 $ 466,741 Less interest (38,813) (449) Present value of lease liabilities $ 415,539 $ 11,940 We have signed a lease that commences in 2024, relating to approximately 166,000 square feet of space in New York City. Our estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20-year lease term is approximately $393.0 million. Lease term and discount rate: Weighted average remaining lease term (years): Operating leases 7.35 Finance leases 3.47 Weighted average discount rate: Operating leases 2.69 % Finance leases 2.10 % Supplemental non-cash activity related to leases are as follows: Years Ended December 31 2022 2021 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases $ 38,875 $ 82,379 Finance leases 7,791 7,782 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases As indicated in Note 13 , we lease office space, office equipment and technology under various leasing arrangements. The future minimum payments under non-cancelable leases, sublease commitments and related payments we are obligated to make, net of sublease commitments of third party lessees to make payments to us, as of December 31, 2022, are as follows: Payments Sublease Receipts Net Payments (in millions) 2023 $ 107.6 $ (31.9) $ 75.7 2024 108.9 (30.9) 78.0 2025 58.3 — 58.3 2026 55.7 — 55.7 2027 51.3 — 51.3 2028 and thereafter 487.7 — 487.7 Total future minimum payments $ 869.5 $ (62.8) $ 806.7 See Note 13 for material lease commitments. Legal Proceedings On December 14, 2022, four individual participants in the Profit Sharing Plan for Employees of AllianceBernstein L.P., (the " Plan ") filed a class action complaint (the “ Complaint ”) in the U.S. District Court for the Southern District of New York against AB, current and former members of the Compensation Committee, and the Investment and Administrative Committees under the Plan. Plaintiffs, who seek to represent a class of all participants in the Plan from December 14, 2016 to the present, allege that defendants violated their fiduciary duties and engaged in prohibited transactions under the Employee Retirement Income Security Act of 1974, as amended (" ERISA "), by including proprietary collective investment trusts as investment options offered under the Plan. The Complaint seeks unspecified damages, disgorgement and other equitable relief. AB is prepared to defend itself vigorously against these claims. While the ultimate outcome of this matter is currently not determinable given the matter remains in its early stages, we do not believe this litigation will have a material adverse effect on our results of operations, financial condition or liquidity. AB may be involved in various other matters, including regulatory inquires, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that we could incur losses pertaining to these other matters, but we cannot currently estimate any such losses. Management, after consultation with legal counsel, currently believes that the outcome of any other individual matter that is pending or threatened, or all of them combined, will not have a material adverse effect on our results of operations, financial condition or liquidity. However, any inquiry, proceeding or litigation has an element of uncertainty; management cannot determine whether further developments relating to any other individual matter that is pending or threatened, or all of them combined, will have a material adverse effect on our results of operation, financial condition or liquidity in any future reporting period. Other During 2010, as general partner of AllianceBernstein U.S. Real Estate L.P. (“ Real Estate Fund ”), we committed to invest $25.0 million in the Real Estate Fund. As of December 31, 2022, we had funded $22.4 million of this commitment. During 2014, as general partner of AllianceBernstein U.S. Real Estate II L.P. (“ Real Estate Fund II ”), we committed to invest $27.3 million, as amended in 2020, in the Real Estate Fund II. As of December 31, 2022, we had funded $21.6 million of this commitment. |
Consolidated Company-Sponsored
Consolidated Company-Sponsored Investment Funds | 12 Months Ended |
Dec. 31, 2022 | |
Consolidated Company-Sponsored Investment Funds [Abstract] | |
Consolidated Company-Sponsored Investment Funds | Consolidated Company-Sponsored Investment Funds We regularly provide seed capital to new company-sponsored investment funds. As such, we may consolidate or de-consolidate a variety of company-sponsored investment funds each quarter. Due to the similarity of risks related to our involvement with each company-sponsored investment fund, disclosures required under the VIE model are aggregated, such as disclosures regarding the carrying amount and classification of assets. We are not required to provide financial support to company-sponsored investment funds and only the assets of such funds are available to settle each fund's own liabilities. Our exposure to loss regarding consolidated company-sponsored investment funds is limited to our investment in, and our management fee earned from, such funds. Equity and debt holders of such funds have no recourse to AB’s assets or to the general credit of AB. The balances of consolidated VIEs included in our consolidated statements of financial condition were as follows: December 31, 2022 December 31, 2021 (in thousands) Cash and cash equivalents $ 19,751 $ 90,326 Investments 516,536 613,025 Other assets 44,424 30,461 Total assets $ 580,711 $ 733,812 Liabilities $ 55,529 $ 87,000 Redeemable non-controlling interest 368,656 421,169 Partners' capital attributable to AB Unitholders 156,526 225,643 Total liabilities, redeemable non-controlling interest and partners' capital $ 580,711 $ 733,812 During 2022, we deconsolidated five funds in which we had seed investments totaling approximately $61.8 million as of December 31, 2021 due to no longer having a controlling financial interest. Fair Value Cash and cash equivalents include cash on hand, demand deposits, overnight commercial paper and highly liquid investments with original maturities of three months or less. Due to the short-term nature of these instruments, the recorded value has been determined to approximate fair value. Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of December 31, 2022 and 2021 was as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2022: Investments $ 129,706 $ 386,830 $ — $ 516,536 Derivatives 1,529 6,023 — 7,552 Total assets measured at fair value $ 131,235 $ 392,853 $ — $ 524,088 Derivatives $ 14,932 $ 6,608 $ — $ 21,540 Total liabilities measured at fair value $ 14,932 $ 6,608 $ — $ 21,540 December 31, 2021: Investments $ 165,415 $ 444,253 $ 3,357 $ 613,025 Derivatives 622 5,265 — 5,887 Total assets measured at fair value $ 166,037 $ 449,518 $ 3,357 $ 618,912 Derivatives $ 16,291 $ 2,051 $ — $ 18,342 Total liabilities measured at fair value $ 16,291 $ 2,051 $ — $ 18,342 See Note 9 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: December 31, 2022 2021 (in thousands) Balance as of beginning of period $ 3,357 $ 619 Deconsolidated funds (3,351) (717) Transfers (out) (6) (205) Purchases 248 3,675 Sales (248) (7) Realized gains, net — 3 Unrealized (losses), net — (11) Balance as of end of period $ — $ 3,357 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 consolidated statements of income. Derivative Instruments As of December 31, 2022 and 2021, the VIEs held $14.0 million and $12.5 million (net), respectively, of futures, forwards, options and swaps within their portfolios. For the years ended December 31, 2022 and 2021, we recognized $9.4 million and $0.7 million of losses, respectively, on these derivatives. These gains and losses are recognized in investment gains (losses) in the consolidated statements of income. As of December 31, 2022 and 2021, the VIEs held $2.7 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 consolidated statements of financial condition. As of December 31, 2022 and 2021, the VIEs delivered $5.4 million and $1.8 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 consolidated statements of financial condition. Offsetting Assets and Liabilities Offsetting of derivative assets of consolidated company-sponsored investment funds as of December 31, 2022 and 2021 was as follows: Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Cash Collateral Net (in thousands) December 31, 2022: Derivatives $ 7,552 $ — $ 7,552 $ — $ (2,731) $ 4,821 December 31, 2021: Derivatives $ 5,887 $ — $ 5,887 $ — $ (904) $ 4,983 Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of December 31, 2022 and 2021 was as follows: Gross Gross Amounts Offset in the Statement of Financial Condition Net Amounts Financial Cash Collateral Net (in thousands) December 31, 2022: Derivatives $ 21,540 $ — $ 21,540 $ — $ (5,444) $ 16,096 December 31, 2021: Derivatives $ 18,342 $ — $ 18,342 $ — $ (1,824) $ 16,518 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 December 31, 2022, the net assets of company-sponsored investment products that are non-consolidated VIEs are approximately $46.4 billion; our maximum risk of loss is our investment of $5.7 million in these VIEs and our advisory fees receivable from these VIEs are $54.2 million. As of December 31, 2021, the net assets of company-sponsored investment products that were non-consolidated VIEs was approximately $68.9 billion; our maximum risk of loss was our investment of $8.8 million in these VIEs and our advisory fees receivable from these VIEs were $75.7 million. |
Net Capital
Net Capital | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Net Capital | Net Capital SCB LLC is registered as a broker-dealer under the Exchange Act and is subject to the minimum net capital requirements imposed by the U.S. Securities and Exchange Commission (" SEC "). SCB LLC computes its net capital under the alternative method permitted by the applicable rule, which requires that minimum net capital, as defined, equals the greater of $1 million or two percent of aggregate debit items arising from customer transactions, as defined. As of December 31, 2022, SCB LLC had net capital of $323.1 million, which was $284.9 million in excess of the minimum net capital requirement of $38.2 million. Advances, dividend payments and other equity withdrawals by SCB LLC are restricted by regulations imposed by the SEC, the Financial Industry Regulatory Authority, Inc., and other securities agencies. Our U.K.-based broker-dealer is a member of the London Stock Exchange. As of December 31, 2022, it was subject to financial resources requirements of $45.4 million imposed by the Financial Conduct Authority of the United Kingdom and had aggregate regulatory financial resources of $51.0 million, an excess of $5.6 million over the required level. AllianceBernstein Investments, Inc. ("ABI"), another one of our subsidiaries and the distributor and/or underwriter for certain company-sponsored mutual funds, is registered as a broker-dealer under the Exchange Act and is subject to the minimum net capital requirements imposed by the SEC. As of December 31, 2022, ABI had net capital of $53.5 million, which was $53.2 million in excess of its required net capital of $0.3 million. Many of our subsidiaries around the world are subject to minimum net capital requirements by the local laws and regulations to which they are subject. As of December 31, 2022, each of our subsidiaries subject to a minimum net capital requirement satisfied the applicable requirement. |
Counterparty Risk
Counterparty Risk | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Counterparty Risk | Counterparty Risk Customer Activities In the normal course of business, brokerage activities involve the execution, settlement and financing of various customer securities trades, which may expose our broker-dealer operations to off-balance sheet risk by requiring us to purchase or sell securities at prevailing market prices in the event the customer is unable to fulfill its contractual obligations. Our customer securities activities are transacted on either a cash or margin basis. In margin transactions, we extend credit to the customer, subject to various regulatory and internal margin requirements. These transactions are collateralized by cash or securities in the customer’s account. In connection with these activities, we may execute and clear customer transactions involving the sale of securities not yet purchased. We seek to control the risks associated with margin transactions by requiring customers to maintain collateral in compliance with the aforementioned regulatory and internal guidelines. We monitor required margin levels daily and, pursuant to such guidelines, require customers to deposit additional collateral, or reduce positions, when necessary. A majority of our customer margin accounts are managed on a discretionary basis whereby we maintain control over the investment activity in the accounts. For these discretionary accounts, our margin deficiency exposure is minimized by our maintaining a diversified portfolio of securities in the accounts, our discretionary authority and our U.S.-based broker-dealer's role as custodian. In accordance with industry practice, we record customer transactions on a settlement date basis, which generally is two business days after trade date for our U.K. and U.S. operations. We are exposed to risk of loss on these transactions in the event of the customer’s inability to meet the terms of their contracts, in which case we may have to purchase or sell financial instruments at prevailing market prices. The risks we assume in connection with these transactions are not expected to have a material adverse effect on our financial condition or results of operations. Other Counterparties We are engaged in various brokerage, futures, forwards, options and swap activities on behalf of clients, in which counterparties primarily include broker-dealers, banks and other financial institutions. In the event these counterparties do not fulfill their obligations, our clients and we may be exposed to loss. The risk of default depends on the creditworthiness of the counterparty. It is our policy to review, as necessary, each counterparty’s creditworthiness. In connection with security borrowing and lending arrangements, we enter into collateralized agreements, which may result in potential loss in the event the counterparty to a transaction is unable to fulfill its contractual obligations. Security borrowing arrangements require us to deposit cash collateral with the lender. With respect to security lending arrangements, we receive collateral in the form of cash in amounts generally in excess of the market value of the securities loaned. We attempt to mitigate credit risk associated with these activities by establishing credit limits for each broker and monitoring these limits on a daily basis. Additionally, security borrowing and lending collateral is marked to market on a daily basis, and additional collateral is deposited by or returned to us as necessary. We enter into various futures, forwards, options and swaps primarily to economically hedge certain of our seed money investments. We may be exposed to credit losses in the event of nonperformance by counterparties to these derivative financial instruments. See Note 7, Derivative Instruments for further discussion. |
Qualified Employee Benefit Plan
Qualified Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Qualified Employee Benefit Plans | Qualified Employee Benefit Plans We maintain a qualified profit sharing plan covering U.S. employees and certain foreign employees. Employer contributions are discretionary and generally limited to the maximum amount deductible for federal income tax purposes. Aggregate contributions were $17.5 million, $16.5 million and $15.6 million for 2022, 2021 and 2020, respectively. We maintain several defined contribution plans for foreign employees working for our subsidiaries in the United Kingdom, Australia, Japan and other locations outside the United States. Employer contributions generally are consistent with regulatory requirements and tax limits. Defined contribution expense for foreign entities was $10.2 million, $9.8 million and $8.4 million in 2022, 2021 and 2020, respectively. We maintain a qualified, noncontributory, defined benefit retirement plan (“ Retirement Plan ”) covering current and former employees who were employed by AB in the United States prior to October 2, 2000. Benefits are based on years of credited service, average final base salary (as defined in the Retirement Plan) and primary Social Security benefits. Service and compensation after December 31, 2008 are not taken into account in determining participants’ retirement benefits. Our policy is to satisfy our funding obligation for each year in an amount not less than the minimum required by ERISA and not greater than the maximum amount we can deduct for federal income tax purposes. We did not make a contribution to the Retirement Plan during 2022. We do not currently anticipate that we will contribute to the Retirement Plan during 2023. Contribution estimates, which are subject to change, are based on regulatory requirements, future market conditions and assumptions used for actuarial computations of the Retirement Plan’s obligations and assets. Management, at the present time, has not determined the amount, if any, of additional future contributions that may be required. The Retirement Plan’s projected benefit obligation, fair value of plan assets and funded status (amounts recognized in the consolidated statements of financial condition) were as follows: Years Ended December 31 2022 2021 (in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 141,862 $ 151,124 Interest cost 3,958 3,794 Plan settlements (4,524) (5,803) Actuarial (gain) (37,839) (4,447) Benefits paid (2,977) (2,806) Projected benefit obligation at end of year 100,480 141,862 Change in plan assets: Plan assets at fair value at beginning of year 130,939 125,022 Actual return on plan assets (27,448) 14,526 Employer contribution — — Plan settlements (4,524) (5,803) Benefits paid (2,977) (2,806) Plan assets at fair value at end of year 95,990 130,939 Funded status $ (4,490) $ (10,923) Effective December 31, 2015, the Retirement Plan was amended to change the actuarial basis used for converting a life annuity benefit to optional forms of payment and converting benefits payable at age 65 to earlier commencement dates. This prior service cost will be amortized over future years. The amounts recognized in other comprehensive income (loss) for the Retirement Plan for 2022, 2021 and 2020 were as follows: 2022 2021 2020 (in thousands) Unrecognized net gain (loss) from experience different from that assumed and effects of changes and assumptions $ 6,519 $ 15,858 $ (4,089) Prior service cost 24 24 24 6,543 15,882 (4,065) Income tax (expense) (33) (87) (216) Other comprehensive income (loss) $ 6,510 $ 15,795 $ (4,281) The gain of $6.5 million recognized in 2022 was primarily due to changes in the discount rate and lump sum interest rates of ($38.7 million) , settlement loss recognized of ($1.7 million) and the recognized actuarial loss of ($1.0 million), offset by actual earnings less than expected earnings on plan assets ($34.0 million), changes in the census data ($0.5 million) and changes in adjustments for participants who received their pension as a lump sum ($0.4 million). The gain of $15.8 million recognized in 2021 was primarily due to actual earnings exceeding expected earnings on plan assets ($8.2 million), changes in the discount rate and lump sum interest rates of ($5.6 million), settlement loss recognized of ($2.0 million) and the recognized actuarial loss of ($1.5 million), offset by changes in the census data ($1.0 million) and changes in the mortality assumption ($0.2 million). The loss of $4.3 million recognized in 2020 primarily was due to changes in the discount rate and lump sum interest rates ($16.7 million), offset by actual earnings exceeding expected earnings on plan assets ($10.4 million), changes in the mortality assumption ($1.0 million), the recognized actuarial loss ($1.4 million) and changes in census data ($0.4 million). Foreign retirement plans and an individual's retirement plan maintained by AB are not material to AB's consolidated financial statements. As such, disclosure for these plans is not necessary. The reconciliation of the 2022 amounts recognized in other comprehensive income for the Retirement Plan as compared to the consolidated statement of comprehensive income ( " OCI Statement " ) is as follows: Retirement Retired Individual Plan Foreign Retirement Plans OCI (in thousands) Recognized actuarial gain $ 6,519 $ 107 $ 296 $ 6,922 Amortization of prior service cost 24 — — 24 Changes in employee benefit related items 6,543 107 296 6,946 Income tax (expense) (33) — (62) (95) Employee benefit related items, net of tax $ 6,510 $ 107 $ 234 $ 6,851 The amounts included in accumulated other comprehensive loss for the Retirement Plan as of December 31, 2022 and 2021 were as follows: 2022 2021 (in thousands) Unrecognized net loss from experience different from that assumed and effects of changes and assumptions $ (37,249) $ (43,768) Prior service cost (659) (683) (37,908) (44,451) Income tax benefit 177 210 Accumulated other comprehensive loss $ (37,731) $ (44,241) The amortization period over which we are amortizing the loss for the Retirement Plan from accumulated other comprehensive income is 27.9 years. The estimated prior service cost and amortization of loss for the Retirement Plan that will be amortized from accumulated other comprehensive income over the next year are $24,000 and $1.0 million, respectively. The accumulated benefit obligation for the plan was $100.5 million and $141.9 million as of December 31, 2022 and 2021, respectively. The discount rates used to determine benefit obligations as of December 31, 2022 and 2021 (measurement dates) were 5.50% and 2.90%, respectively. Benefit payments are expected to be paid as follows (in thousands): 2023 $ 10,121 2024 6,767 2025 8,058 2026 7,865 2027 8,743 2028 - 2032 38,404 Net expense under the Retirement Plan consisted of: Years Ended December 31 2022 2021 2020 (in thousands) Interest cost on projected benefit obligations $ 3,958 $ 3,794 $ 4,443 Expected return on plan assets (6,591) (6,351) (6,084) Amortization of prior service cost 24 24 24 Settlement loss recognized 1,678 2,024 — Recognized actuarial loss 1,042 1,447 1,386 Net pension expense $ 111 $ 938 $ (231) Actuarial computations used to determine net periodic costs were made utilizing the following weighted-average assumptions: Years Ended December 31 2022 2021 2020 Discount rate on benefit obligations 2.90 % 2.55 % 3.35 % Expected long-term rate of return on plan assets 5.25 % 5.25 % 5.50 % In developing the expected long-term rate of return on plan assets of 5.25%, management considered the historical returns and future expectations for returns for each asset category, as well as the target asset allocation of the portfolio. The expected long-term rate of return on assets is based on weighted average expected returns for each asset class. As of December 31, 2022, the mortality projection assumption used the generational MP-2021 improvement scale, which is consistent with the improvement scale used in 2021. Prior to 2021, mortality was projected generationally using the MP-2020 improvements scale. The base mortality assumption used is the Society of Actuaries Pri-2012 base mortality table for private sector plans, with a white-collar adjustment, using the contingent annuitant table for beneficiaries of deceased participants. The Internal Revenue Service (“ IRS ”) recently updated the mortality tables used to determine lump sums. For fiscal year-end 2022, we reflected the most recently published IRS table for lump sums assumed to be paid in 2023. We projected future mortality for lump sums assumed to be paid after 2023 using the current base mortality tables (RP-2014 backed off to 2006) and projection scale of MP-2021. The Retirement Plan’s asset allocation percentages consisted of: Years Ended December 31 2022 2021 Equity 46 % 52 % Debt securities 42 38 Other 12 10 Total 100 % 100 % The guidelines regarding allocation of assets are formalized in the Investment Policy Statement adopted by the Investment Committee for the Retirement Plan. The objective of the investment program is to enhance the portfolio of the Retirement Plan through total return (capital appreciation and income), thereby promoting the ongoing ability of the Retirement plan to meet future liabilities and obligations, while minimizing the need for additional contributions. The guidelines specify an allocation weighting of 10% to 35% for liability hedging investments (target of 24%), 15% to 40% for return seeking investments (target of 27%), 5% to 35% for risk mitigating investments (target of 10%), 10% to 35% for diversifying investments (target of 21%) and 5% to 35% for dynamic asset allocation (target of 18%). Investments in mutual funds, hedge funds (and other alternative investments), and other commingled investment vehicles are permitted Investment Policy Statement. Investments are permitted in overlay portfolios (regulated mutual funds), which are designed to manage short-term portfolio risk and mitigate the effect of extreme outcomes by varying the asset allocation of a portfolio. See Note 9, Fair Value for a description of how we measure the fair value of our plan assets. The valuation of our Retirement Plan assets by pricing observability levels as of December 31, 2022 and 2021 was as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2022 Cash $ 1,441 $ — $ — $ 1,441 U.S. Treasury Strips — 15,634 — 15,634 Fixed income mutual funds 2,149 — — 2,149 Fixed income securities — 22,478 — 22,478 Equity mutual funds 26,074 — — 26,074 Equity securities 10,928 219 — 11,147 Total assets in the fair value hierarchy 40,592 38,331 — 78,923 Investments measured at net assets value — — — 17,067 Investments at fair value $ 40,592 $ 38,331 $ — $ 95,990 Level 1 Level 2 Level 3 Total December 31, 2021 Cash $ 47 $ — $ — $ 47 U.S. Treasury Strips — 32,355 — 32,355 Fixed income mutual funds 17,477 — — 17,477 Equity mutual funds 43,786 — — 43,786 Equity securities 14,801 — — 14,801 Total assets in the fair value hierarchy 76,111 32,355 — 108,466 Investments measured at net assets value — — — 22,473 Investments at fair value $ 76,111 $ 32,355 $ — $ 130,939 During 2022 and 2021, the Retirement Plan's investments include the following: • U.S. Treasury strips, (zero-coupon bonds); • one fixed income mutual fund in 2022, as compared to two fixed income mutual funds in 2021. The fund included in both 2022 and 2021 pursues an aggressive investment strategy involving a variety of asset classes. This fund seeks inflation protection from investments around the globe, both in developed and emerging market countries. The additional fund included in 2021 sought to generate income consistent with preservation of capital; • six equity mutual funds in both 2022 and 2021, which focus on both U.S.-based and non-U.S.-based equity securities of various capitalization sizes ranging from small to large capitalization and diversified portfolios within those capitalization ranges; • one asset allocation mutual fund, which seeks to moderate overall volatility and limit extreme outcomes in times of market stress, without sacrificing long-term growth potential. This fund continuously adjusts the mix of global equities, bonds and related “opportunistic” assets based on our view of prospective market conditions; • one separately managed account, managed against the Bloomberg Long U.S. Corporate index. This portfolio invests in U.S. dollar denominated investment grade fixed income securities with at least 10 years to maturity; • one alternative investment, securitized assets hedge fund with a focus on mortgage credit, principally through investment in Credit Risk Transfer Securities, residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities; and |
Long-term Incentive Compensatio
Long-term Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Compensation Related Costs [Abstract] | |
Long-term Incentive Compensation Plans | Long-term Incentive Compensation Plans We maintain an unfunded, non-qualified incentive compensation program known as the AllianceBernstein Incentive Compensation Award Program (“ Incentive Compensation Program ”), under which annual awards may be granted to eligible employees. See Note 2, "Summary of Significant Accounting Policies – Long-Term Incentive Compensation Plans" for a discussion of the award provisions. Under the Incentive Compensation Program, we made awards in 2022, 2021 and 2020 aggregating $164.3 million, $184.1 million and $177.4 million, respectively. The amounts charged to employee compensation and benefits expense for the years ended December 31, 2022, 2021 and 2020 were $160.1 million, $173.4 million and $176.8 million, respectively. Effective as of September 30, 2017, we established the AB 2017 Long Term Incentive Plan (“ 2017 Plan ”), which was adopted at a special meeting of AB Holding Unitholders held on September 29, 2017. The following forms of awards may be granted to employees and Eligible Directors (directors who satisfy applicable independence standards) under the 2017 Plan: (i) restricted AB Holding Units or phantom restricted AB Holding Units (a “phantom” award is a contractual right to receive AB Holding Units at a later date or upon a specified event); (ii) options to buy AB Holding Units; and (iii) other AB Holding Unit-based awards (including, without limitation, AB Holding Unit appreciation rights and performance awards). The purpose of the 2017 Plan is to promote the interest of AB by: (i) attracting and retaining talented officers, employees and directors, (ii) motivating such officers, employees and directors by means of performance-related incentives to achieve longer-range business and operational goals, (iii) enabling such officers, employees and directors to participate in the long-term growth and financial success of AB, and (iv) aligning the interests of such officers, employees and directors with those of AB Holding Unitholders. The 2017 Plan will expire on September 30, 2027, and no awards under the 2017 Plan will be made after that date. Under the 2017 Plan, the aggregate number of AB Holding Units with respect to which awards may be granted is 60 million, including no more than 30 million newly-issued AB Holding Units. As of December 31, 2022, no options to buy AB Holding Units were outstanding and 29,795,964 AB Holding Units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or the AllianceBernstein 2010 Long Term Incentive Plan, as amended, an equity compensation plan with similar terms that was canceled on September 30, 2017. AB Holding Unit-based awards (including options) in respect of 30,204,036 AB Holding Units were available for grant under the 2017 Plan as of December 31, 2022. As of December 31, 2021, no options to buy AB Holding Units had been granted and 28,109,084 AB Holding Units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or the AllianceBernstein 2010 Long Term Incentive Plan, as amended, an equity compensation plan with similar terms that was canceled on September 30, 2017. AB Holding Unit-based awards (including options) in respect of 31,890,916 AB Holding Units were available for grant under the 2017 Plan as of December 31, 2021. Option Awards We did not grant any options to buy AB Holding Units during 2022, 2021 or 2020. Historically, options granted to employees generally were exercisable at a rate of 20% of the AB Holding Units subject to such options on each of the first five anniversary dates of the date of grant; options granted to Eligible Directors generally were exercisable at a rate of 33.3% of the AB Holding Units subject to such options on each of the first three anniversary dates of the date of grant. The option-related activity in our equity compensation plans during 2022 is as follows: Options to Buy Weighted Weighted Aggregate Outstanding as of December 31, 2021 5,774 $ 20.12 0.33 Granted — — Exercised (5,774) 20.12 Forfeited — — Expired — — Outstanding as of December 31, 2022 — $ — — $ — Exercisable as of December 31, 2022 — $ — — $ — Vested or expected to vest as of December 31, 2022 — $ — — $ — The total intrinsic value of options exercised during 2022, 2021 or 2020 was $0.2 million, $2.2 million and $32,368, respectively. Under the fair value method, compensation expense is measured at the grant date based on the estimated fair value of the options awarded (determined using the Black-Scholes option valuation model) and is recognized over the requisite service period. As we did not grant any option awards in 2022, 2021 or 2020, no compensation expense was recorded. As of December 31, 2022, there was no compensation expense related to unvested option grants not yet recognized in the consolidated statement of income. Restricted AB Holding Unit Awards In 2022, 2021 and 2020, the Board granted restricted AB Holding Unit awards to Eligible Directors. These AB Holding Units give the Eligible Directors, in most instances, all the rights of other AB Holding Unitholders, subject to such restrictions on transfer as the Board may impose. We award restricted AB Holding Units to Eligible Directors that vest ratably over three 2022 2021 2020 Restricted Units Awarded 30,870 35,358 50,232 Weighted Average Grant Date Fair Value $ 38.55 $ 44.29 $ 23.69 Compensation Expense (in millions) $ 1.2 $ 1.6 $ 1.2 On April 28, 2017, Seth Bernstein was appointed President and Chief Executive Officer . In connection with the commencement of his employment, Mr. Bernstein was granted restricted AB Holding Units; these Units were fully amortized as of December 31, 2021. Compensation expense related to Mr. Bernstein's restricted AB Holding Unit grant was $0.3 million and $0.9 million for the years ended December 31, 2021, and 2020, respectively. Under the Incentive Compensation Program, we awarded 4.2 million restricted AB Holding Units in 2022 (which included 3.8 million restricted AB Holding Units in December for the 2022 year-end awards as well as 0.4 million additional restricted AB Holding Units granted earlier during the year relating to the 2021 year-end awards), with grant date fair values per restricted AB Holding Unit ranging between $38.84 to $50.94. We awarded 3.5 million restricted AB Holding Units in 2021 (which included 3.3 million restricted AB Holding Units in December for the 2021 year-end awards as well as 0.2 million additional restricted AB Holding Units granted earlier during the year relating to the 2020 year-end awards), with grant date fair values per restricted AB Holding Unit ranging between $32.10 to $50.94. We awarded 5.3 million restricted AB Holding Units in 2020 (which included 5.0 million restricted AB Holding Units in December for the 2020 year-end awards as well as 0.3 million additional restricted AB Holding Units granted earlier during the year related to the 2019 year-end awards), with grant date fair values per restricted AB Holding Unit ranging between $28.75 to $32.10. Restricted AB Holding Units awarded under the Incentive Compensation Program in 2020 and years prior generally vested in 25% increments on December 1 st of each of the four years immediately following the year in which the award was granted. Awards granted in 2021 and subsequent years generally vest in 33.3% increments on December 1 st of each of the three years immediately following the year in which the award is granted. We also award restricted AB Holding Units in connection with certain employment and separation agreements, as well as relocation-related performance awards, with vesting schedules generally ranging between two 2022 2021 2020 (in millions excluding share prices) Restricted Units Awarded 0.5 3.4 0.4 Grant Date Fair Value Range $34.86 - $49.90 $29.06 - $53.86 $18.80 - $35.42 Compensation Expense $ 35.0 $ 40.9 $ 32.1 The fair value of the restricted AB Holding Units is amortized over the requisite service period as compensation expense. Changes in unvested restricted AB Holding Units during 2022 are as follows: AB Holding Weighted Average Unvested as of December 31, 2021 18,130,740 $ 33.98 Granted 4,709,600 40.31 Vested (7,671,109) 32.10 Forfeited (396,995) 36.15 Unvested as of December 31, 2022 14,772,236 $ 36.92 The total grant date fair value of restricted AB Holding Units that vested was $246.2 million, $199.0 million and $155.0 million during 2022, 2021 and 2020, respectively. As of December 31, 2022, the 14,772,236 unvested restricted AB Holding Units consist of 10,148,408 restricted AB Holding Units that do not have a service requirement and have been fully expensed on the grant date and 4,623,828 restricted AB Holding Units that have a service requirement and will be expensed over the required service period. As of December 31, 2022, there was $114.0 million of compensation expense related to unvested restricted AB Holding Unit awards granted and not yet recognized in the consolidated statement of income. We expect to recognize the expense over a weighted average period of 6.1 years. |
Units Outstanding
Units Outstanding | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Units Outstanding | Units Outstanding Changes in AB Units outstanding for the years ended December 31, 2022 and 2021 were as follows: 2022 2021 Outstanding as of January 1, 271,453,043 270,509,658 Options exercised 5,774 143,211 Units issued (1) 17,326,222 3,917,437 Units retired (2) (2,805,126) (3,117,263) Outstanding as of December 31, 285,979,913 271,453,043 (1) Includes 15,321,535 Units issued as a result of the CarVal acquisition. (2) During 2022 and 2021, we purchased 2,500 and 5,400 AB Units, respectively, in private transactions and retired them. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes AB is a private partnership for federal income tax purposes and, accordingly, is not subject to federal or state corporate income taxes. However, AB is subject to a 4.0% New York City unincorporated business tax ( “UBT” ). Domestic corporate subsidiaries of AB, which are subject to federal, state and local income taxes, generally are included in the filing of a consolidated federal income tax return with separate state and local income tax returns being filed. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located. In order to preserve AB’s status as a private partnership for federal income tax purposes, AB Units must not be considered publicly traded. The AB Partnership Agreement provides that all transfers of AB Units must be approved by EQH and the General Partner; EQH and the General Partner approve only those transfers permitted pursuant to one or more of the safe harbors contained in the relevant Treasury regulations. If AB Units were considered readily tradable, AB’s net income would be subject to federal and state corporate income tax, significantly reducing its quarterly distributions to AB Holding. Furthermore, should AB enter into a substantial new line of business, AB Holding, by virtue of its ownership of AB, would lose its status as a publicly traded partnership and would become subject to corporate income tax, which would reduce materially AB Holding’s net income and its quarterly distributions to AB Holding Unitholders. Earnings before income taxes and income tax expense consist of: Years Ended December 31 2022 2021 2020 (in thousands) Earnings before income taxes: United States $ 689,278 $ 1,007,847 $ 743,687 Foreign 125,818 208,615 163,749 Total $ 815,096 $ 1,216,462 $ 907,436 Income tax expense: Partnership UBT $ 5,996 $ 6,951 $ 3,356 Corporate subsidiaries: Federal 1,457 750 1,495 State and local 931 956 904 Foreign 34,327 58,080 44,086 Current tax expense 42,711 66,737 49,841 Deferred tax (3,072) (4,009) (4,188) Income tax expense $ 39,639 $ 62,728 $ 45,653 The principal reasons for the difference between the effective tax rates and the UBT statutory tax rate of 4.0% are as follows: Years Ended December 31 2022 2021 2020 (in thousands) UBT statutory rate $ 32,604 4.0 % $ 48,659 4.0 % $ 36,297 4.0 % Corporate subsidiaries' federal, state, and local 1,460 0.2 1,322 0.2 2,025 0.2 Foreign subsidiaries taxed at different rates 32,664 4.0 43,019 3.5 33,969 3.7 FIN 48 reserve (release) — — — — (1,886) (0.2) UBT business allocation percentage rate change (98) — 23 — 8 — Deferred tax and payable write-offs 1,089 0.1 1,003 0.1 (887) (0.1) Foreign outside basis difference (1,535) (0.2) 1,492 0.1 3 — Amended 2017 return — — — — (221) — Effect of ASC 740 adjustments, miscellaneous taxes, and other 5,366 0.7 1,799 0.1 2,654 0.3 Tax Credits (5,275) (0.6) — — — — Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge (26,636) (3.3) (34,589) (2.8) (26,309) (2.9) Income tax expense and effective tax rate $ 39,639 4.9 % $ 62,728 5.2 % $ 45,653 5.0 % We recognize the effects of a tax position in the financial statements only if, as of the reporting date, it is “more likely than not” to be sustained based on its technical merits and their applicability to the facts and circumstances of the tax position. In making this assessment, we assume that the taxing authority will examine the tax position and have full knowledge of all relevant information. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31 2022 2021 2020 (in thousands) Balance as of beginning of period $ 2,838 $ 2,838 $ 5,706 Additions for prior year tax positions — — — Reductions for prior year tax positions — — — Additions for current year tax positions — — — Reductions for current year tax positions — — — Reductions related to closed years/settlements with tax authorities — — (2,868) Balance as of end of period $ 2,838 $ 2,838 $ 2,838 The amount of unrecognized tax benefits as of December 31, 2022, 2021, and 2020, when recognized, is recorded as a reduction to income tax expense and reduces the company’s effective tax rate. Interest and penalties, if any, relating to tax positions are recorded in income tax expense on the consolidated statements of income. There was no interest expense recorded in 2022 or 2021. The total amount of interest expense recorded in income tax expense (credit) during 2020 was $(0.4) million. As of December 31, 2022 and 2021, there is no accrued interest recorded on the consolidated statements of financial condition. There were no penalties as of December 31, 2022, 2021 and 2020. Generally, the company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for any year prior to 2018, except as set forth below. During the fourth quarter of 2020, the City of New York notified us of an examination of AB's UBT returns for the years 2017 through 2019. The examination is ongoing and no provision with respect to this examination has been recorded. Currently, there are no income tax examinations at our significant non-U.S. subsidiaries. Years that remain open and may be subject to examination vary under local law and range from one As of December 31, 2022, it is reasonably possible that $2.8 million of our unrecognized tax benefits will change within the next 12 months due to the expiration of the statute of limitations. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effect of significant items comprising the net deferred tax asset (liability) is as follows: Years Ended December 31 2022 2021 (in thousands) Deferred tax asset: Differences between book and tax basis: Benefits from net operating loss carryforwards $ 4,918 $ 7,833 Long-term incentive compensation plans 17,524 24,468 Investment basis differences 10,286 5,523 Depreciation and amortization 3,071 3,942 Lease liability 4,911 5,327 Investment in foreign subsidiaries 26,479 — Tax credit carryforward 6,171 — Other, primarily accrued expenses deductible when paid 6,860 4,917 80,220 52,010 Less: valuation allowance (38,110) (3,828) Deferred tax asset 42,110 48,182 Deferred tax liability: Differences between book and tax basis: Intangible assets 10,190 7,622 Investment in foreign subsidiaries — 4,084 Right-of-use asset 4,191 4,490 Other 2,808 2,075 Deferred tax liability 17,189 18,271 Net deferred tax asset $ 24,921 $ 29,911 The valuation allowance of $38.1 million was established as of December 31, 2022 primarily due to significant negative evidence that capital losses anticipated in the held for sale foreign subsidiaries will not be utilized, given the nature of income expected to be incurred by the applicable subsidiaries. The valuation allowance of $3.8 million was established as of December 31, 2021 primarily due to significant negative evidence that net operating loss ( "NOL" ) carryforwards will not be utilized, given the future losses expected to be incurred by the applicable subsidiaries. We had NOL carryforwards at December 31, 2022 and 2021 of approximately $30.3 million and $55.1 million, respectively, in certain foreign locations with a five-year expiration period. The deferred tax asset is included in other assets in our consolidated statement of financial condition. Management believes there will be sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets recognized that are not subject to valuation allowances. The company provides income taxes on the unremitted earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are indefinitely reinvested outside the United States. As of December 31, 2022, $29.6 million of undistributed earnings of non-U.S. corporate subsidiaries were indefinitely invested outside the U.S. At existing applicable income tax rates, additional taxes of approximately $6.2 million would need to be paid if such earnings are remitted. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Management has assessed the requirements of ASC 280, Segment Reporting , and determined that, because we utilize a consolidated approach to assess performance and allocate resources, we have only one operating segment. Enterprise-wide disclosures as of and for the years ended December 31, 2022, 2021 and 2020 were as follows: Services Net revenues derived from our investment management, research and related services were as follows: Years Ended December 31 2022 2021 2020 (in thousands) Institutions $ 659,983 $ 587,017 $ 512,914 Retail 2,000,908 2,223,829 1,811,948 Private Wealth Management 1,004,003 1,126,142 882,672 Bernstein Research Services 416,273 452,017 459,744 Other 39,561 56,283 56,908 Total revenues 4,120,728 4,445,288 3,724,186 Less: Interest expense 66,438 3,686 15,650 Net revenues $ 4,054,290 $ 4,441,602 $ 3,708,536 No individual fund accounted for more than 10% of our investment advisory and service fees and our net revenues during 2022, 2021 and 2020. Geographic Information Net revenues and long-lived assets, related to our U.S. and international operations, as of and for the years ended December 31, were as follows: 2022 2021 2020 (in thousands) Net revenues: United States $ 2,381,958 $ 2,558,592 $ 2,106,636 International 1,672,332 1,883,010 1,601,900 Total (1) $ 4,054,290 $ 4,441,602 $ 3,708,536 Long-lived assets: United States $ 4,067,991 $ 3,331,572 International 72,466 45,796 Total $ 4,140,457 $ 3,377,368 (1) We have recast prior period presentation of geographic revenues to align with current period presentation by legal entity domicile as compared to historical presentation method by client domicile. Major Customers No single customer or individual client accounted for more than 10% of our total revenues for the years ended December 31, 2022, 2021 and 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Mutual Funds We provide investment management, distribution, shareholder, administrative and brokerage services to individual investors by means of retail mutual funds sponsored by our company, our subsidiaries and our affiliated joint venture companies. We provide substantially all of these services under contracts that specify the services to be provided and the fees to be charged. The contracts are subject to annual review and approval by each mutual fund’s board of directors or trustees and, in certain circumstances, by the mutual fund’s shareholders. Revenues for services provided or related to the mutual funds are as follows: Years Ended December 31 2022 2021 2020 (in thousands) Investment advisory and services fees $ 1,452,885 $ 1,644,757 $ 1,368,484 Distribution revenues 590,580 637,076 516,336 Shareholder servicing fees 79,167 85,745 79,394 Other revenues 8,366 8,364 8,314 Bernstein Research Services — 2 3 $ 2,130,998 $ 2,375,944 $ 1,972,531 EQH and its Subsidiaries We provide investment management and certain administration services to EQH and its subsidiaries. In addition, EQH and its subsidiaries distribute company-sponsored mutual funds, for which they receive commissions and distribution payments. Also, we are covered by various insurance policies maintained by EQH and we pay fees for technology and other services provided by EQH and its subsidiaries. Additionally, see Note 12, Debt , for disclosures related to our credit facility with EQH. Aggregate amounts included in the consolidated financial statements for transactions with EQH and its subsidiaries, as of and for the years ended December 31, are as follows: EQH 2022 2021 2020 (in thousands) Revenues: Investment advisory and services fees $ 148,377 $ 133,074 $ 115,901 Other revenues 688 675 1,330 $ 149,065 $ 133,749 $ 117,231 Expenses: Commissions and distribution payments to financial intermediaries $ 3,897 $ 4,550 $ 3,952 General and administrative 2,882 2,373 2,281 Other 14,069 3,953 5,463 $ 20,848 $ 10,876 $ 11,696 Balance Sheet: Institutional investment advisory and services fees receivable $ 7,732 $ 8,607 Prepaid expenses 385 545 Other due to EQH and its subsidiaries (4,206) (1,534) EQH Facility (990,000) (755,000) $ (986,089) $ (747,382) Other Related Parties The consolidated statements of financial condition include a net receivable from AB Holding as a result of cash transactions for fees and expense reimbursements. The net receivable balance included in the consolidated statements of financial condition as of December 31, 2022 and 2021 was $7.7 million and $11.2 million, respectively. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures A cquisitions On July 1, 2022, AB Holding acquired a 100% ownership interest in CarVal, a global private alternatives investment manager primarily focused on opportunistic and distressed credit, renewable energy, infrastructure, specialty finance and transportation investments that, as of the acquisition date, constituted approximately $12.2 billion in AUM. Also, on July 1, 2022, immediately following the acquisition of CarVal, AB Holding contributed 100% of its equity interests in CarVal to AB in exchange for AB Units. Post-acquisition, CarVal was rebranded AB CarVal Investors (“ AB CarVal ”). On the acquisition date, AB Holding issued approximately 3.2 million AB Holding Units (with a fair value of $132.8 million) with the remaining 12.1 million Units (with a fair value of $456.4 million) issued on November 1, 2022. The fair value of the units issued on November 1, 2022 reflect final adjustments to the estimated unit issuance recorded as of acquisition close on July 1, 2022 and as disclosed in the third quarter 2022 Form 10-Q. AB received a 100% equity interest in CarVal from AB Holding and issued approximately 15.3 million AB Units (with a fair value of $589.2 million). AB also recorded a contingent consideration payable of $228.9 million (to be paid predominantly in AB Units) based on AB CarVal achieving certain performance objectives over a six-year period ending December 31, 2027. The AB Units, as discussed above , were issued to AB Holding; AB Holding then issued the equal amount of AB Holding Units to CarVal. The excess of the purchase price over the current fair value of identifiable net liabilities acquired of $156.1 million (net of cash acquired of $40.8 million), and the recording of a net deferred tax asset of $5.1 million resulted in the recognition of $666.1 million of goodwill and the recording of $303.0 million of finite-lived intangible assets primarily relating to investment management contracts and investor relationships with useful lives ranging from 5 to 10 years. The goodwill recorded is not deductible for tax purposes as the CarVal acquisition was an investment in a partnership. The following table summarizes the amounts of identified assets acquired and liabilities assumed at the acquisition date (reflecting acquisition adjustments recorded in the fourth quarter of 2022), as well as the consideration transferred to acquire CarVal (in thousands): Summary of purchase consideration: Fair value of AB Holding units issued $ 589,169 Fair value of contingent consideration 228,885 Total purchase consideration $ 818,054 Purchase price allocation: Assets acquired: Cash and cash equivalents $ 40,777 Receivables, net 82,523 Investments - other 947 Furniture, equipment, and leasehold improvements, net 2,464 Right-of-use assets 16,482 Other assets 10,600 Deferred tax asset 5,073 Intangible assets 303,000 Goodwill 666,130 Total assets acquired 1,127,996 Liabilities assumed: Accounts payable and accrued expenses (17,793) Accrued compensation and benefits (219,726) Debt (42,661) Lease liabilities (16,571) Non-redeemable non-controlling interests in consolidated entities (13,191) Total liabilities assumed (309,942) Net assets acquired $ 818,054 The CarVal acquisition did not have a significant impact on our 2022 revenues and earnings. As a result, we have not provided supplemental pro forma financial information. Divestitures On November 22, 2022, AB and SocGen, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. The consummation of the joint venture is subject to customary closing conditions, including regulatory clearances. The closing is expected to occur before the end of 2023. Upon closing, AB will own a 49% interest in the joint venture and SocGen will own a 51% interest in the joint venture, with an option to reach 100% ownership after five years. The assets and liabilities of AB's research services business (“ the disposal group ”) have been classified as held for sale on the consolidated statement of financial condition and recorded at fair value, less cost to sell. As a result of classifying these assets as held for sale, we recognized a non-cash valuation adjustment of $7.4 million on the consolidated statement of income , to recognize the net carrying value at lower of cost or fair value, less estimated costs to sell. The following table summarizes the assets and liabilities of the disposal group classified as held for sale on the consolidated statement of financial condition as of December 31, 2022: Cash and cash equivalents $ 159,123 Receivables, net: Brokers and dealers 44,717 Brokerage clients 29,243 Other fees 22,988 Investments 24,507 Furniture and equipment, net 4,128 Other assets 107,764 Right-of-use assets 1,552 Intangible assets 4,903 Goodwill 159,826 Valuation adjustment (allowance) on disposal group (7,400) Total assets held for sale $ 551,351 Payables: Brokers and dealers $ 32,983 Brokerage clients 10,232 Other liabilities 50,884 Accrued compensation and benefits 13,853 Total liabilities held for sale $ 107,952 As of December 31, 2022, cash and cash equivalents classified as held for sale included in the consolidated statement of cash flows was $159.1 million. We have determined that the exit from the sell-side research business does not represent a strategic shift that had a major effect on our consolidated results of operations. Accordingly, we have not classified the disposal group as discontinued operations. The results of operations of the disposal group up to the respective dates of sale will be included in our consolidated results of operations for all periods presented. The lower of amortized cost or fair value adjustment upon transferring these assets to held for sale was not material. |
Valuation and Qualifying Accoun
Valuation and Qualifying Account - Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts - Allowance for Doubtful Accounts | Valuation and Qualifying Account - Allowance for Doubtful Accounts For the Three Years Ending December 31, 2022, 2021 and 2020 Description Balance at Beginning Credited to Deductions Balance at End (in thousands) For the year ended December 31, 2022 $ 328 $ — $ 96 (a) $ 232 For the year ended December 31, 2021 $ 311 $ — $ (17) (b) $ 328 For the year ended December 31, 2020 $ 309 $ 100 $ 98 (c) $ 311 (a) Includes accounts written-off as uncollectible of $96. . (b) Includes a net addition to the allowance balance of $28 and accounts written-off as uncollectible of $11. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ( "US GAAP" ). The preparation of the 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The 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 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. |
Recently Adopted Accounting Pronouncements/Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements or Accounting Pronouncements During 2022, there have been no recently adopted accounting pronouncements or pronouncements not yet adopted that have or are expected to have a material impact on our consolidated results of operations. |
Revenue Recognition | Revenue Recognition Investment Advisory and Services Fees AB provides asset management services by managing customer assets and seeking to deliver investment returns to investors. Each investment management contract between AB and a customer creates a distinct, separately identifiable performance obligation for each day the customer’s assets are managed as the customer can benefit from each day of service. In accordance with ASC 606, a series of distinct goods and services that are substantially the same and have the same pattern of transfer to the customer are treated as a single performance obligation. Accordingly, we have determined that our investment and advisory services are performed over time and entitle us to variable consideration earned based on the value of the investors’ assets under management (“ AUM ”). We calculate AUM using established market-based valuation methods and fair valuation (non-observable market) methods. Market-based valuation methods include: last sale/settle prices from an exchange for actively-traded listed equities, options and futures; evaluated bid prices from recognized pricing vendors for fixed income, asset-backed or mortgage-backed issues; mid prices from recognized pricing vendors and brokers for credit default swaps; and quoted bids or spreads from pricing vendors and brokers for other derivative products. Fair valuation methods include: discounted cash flow models or any other methodology that is validated and approved by our Valuation Committee ( see paragraph immediately below for additional information about our Valuation Committee). Fair valuation methods are used only where AUM cannot be valued using market-based valuation methods, such as in the case of private equity or illiquid securities. The Valuation Committee, which consists of senior officers and employees, is responsible for overseeing the pricing and valuation of all investments held in client and AB portfolios. The Valuation Committee has adopted a Statement of Pricing Policies describing principles and policies that apply to pricing and valuing investments held in these portfolios. We also have a Pricing Group, which reports to the Valuation Committee and is responsible for overseeing the pricing process for all investments. We record as revenue investment advisory and services base fees, which we generally calculate as a percentage of AUM. At month-end, all the components of the transaction price ( i.e., the base fee calculation) are no longer variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. The transaction price for the asset management performance obligation for certain investment advisory contracts, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, which is calculated as either a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. The performance-based fees are forms of variable consideration and are therefore excluded from the transaction price until it becomes probable that there will not be significant reversal of the cumulative revenue recognized. At each reporting date, we evaluate the constraining factors, discussed below , surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include: the contractual claw-back provisions to which the variable consideration is subject, the length of time to which the uncertainty of the consideration is subject, the number and range of possible consideration amounts, the probability of significant fluctuations in the fund’s market value, the level at which the fund’s value exceeds the contractual threshold required to earn such a fee, and the materiality of the amount being evaluated. Bernstein Research Services Bernstein Research Services revenue consists principally of commissions received, and to a lesser but increasing extent, direct payments for trade execution services and equity research services provided to institutional clients. Brokerage commissions for trade execution services and related expenses are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the time of each trade and is based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured and significant reversal of such revenue is not probable. In the fourth quarter of 2022, AB and Société Générale (EURONEXT: SCGLY, “ SocGen ”), a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the Bernstein Research Services (" BRS ") business has been classified as held for sale. For further discussion, see Note 24 Acquisitions and Divestitures. Distribution Revenues Two of our subsidiaries act as distributors and/or placement agents of company-sponsored mutual funds and receive distribution services fees from certain of those funds as full or partial reimbursement of the distribution expenses they incur. The variable consideration can be determined in different ways, as discussed below , as we satisfy the performance obligation depending on the contractual arrangements with the customer and the specific product sold. Most open-end U.S. funds have adopted a plan under Rule 12b-1 of the Investment Company Act that allows the fund to pay, out of assets of the fund, distribution and service fees for the distribution and sale of its shares (“ 12b-1 fees ”). The open-end U.S. funds have such agreements with us, and we have selling and distribution agreements pursuant to which we pay sales commissions to the financial intermediaries that distribute our open-end U.S. funds. These agreements are terminable by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of fund shares. We record 12b-1 fees monthly based upon a percentage of the net asset value (“ NAV ”) of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. We accrue the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. We are acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis. We offer back-end load shares in limited instances and charge the investor a contingent deferred sales charge (“ CDSC ”) if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent on the timing of the redemption by the investor and the value of the sale proceeds. Due to these constraining factors, we exclude the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements are recorded as reductions of unamortized deferred sales commissions. Our Luxembourg subsidiary, the management company for most of our non-U.S. funds, earns a management fee that is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee may also contain a component that is paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an All-in-Fee). As we have concluded that asset management is distinct from distribution, we allocate a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices. Other Revenues Revenues from contracts with customers include a portion of other revenues, which consists primarily of shareholder servicing fees, as well as mutual fund reimbursements and other brokerage income. We provide shareholder services, which include transfer agency, administrative and recordkeeping services provided to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the number of shareholders’ accounts are resolved. Contract Assets and Liabilities We use the practical expedient for contracts that have an original duration of one year or less. Accordingly, we do not consider the time value of money and, instead, accrue the incremental costs of obtaining the contract when incurred. As of December 31, 2022, the balances of contract assets and contract liabilities are not considered material and, accordingly, no further disclosures are necessary. |
Non-Contractual Revenues | Non-Contractual Revenues Dividend and interest income is accrued as earned. Investment gains and losses on the consolidated statements of income include unrealized gains and losses of trading and private equity investments stated at fair value, equity in earnings of our limited partnership hedge fund investments, and realized gains and losses on investments sold. |
Non-Contractual Revenues | Non-Contractual Revenues Dividend and interest income is accrued as earned. Investment gains and losses on the consolidated statements of income include unrealized gains and losses of trading and private equity investments stated at fair value, equity in earnings of our limited partnership hedge fund investments, and realized gains and losses on investments sold. |
Consolidation of Company-Sponsored Investment Funds | Consolidation of Company-Sponsored Investment Funds For legal entities (company-sponsored investment funds) evaluated for consolidation, we first determine whether the fees we receive and the interests we hold qualify as a variable interest in the entity, including an evaluation of fees paid to us as a decision maker or service provider to the entity being evaluated. Fees received by us are not variable interests if (i) the fees are compensation for services provided and are commensurate with the level of effort required to provide those services, (ii) the service arrangement includes only terms, conditions or amounts that are customarily present in arrangements for similar services negotiated at arm’s length, and (iii) our other economic interests in the entity held directly and indirectly through our related parties, as well as economic interests held by related parties under common control, would not absorb more than an insignificant amount of the entity’s losses or receive more than an insignificant amount of the entity’s benefits. For those entities in which we have a variable interest, we perform an analysis to determine whether the entity is a VIE by considering whether the entity’s equity investment at risk is insufficient, whether the investors lack decision making rights proportional to their ownership percentage of the entity, and whether the investors lack the obligation to absorb an entity’s expected losses or the right to receive an entity’s expected income. A VIE must be consolidated by its primary beneficiary, which generally is defined as the party that has a controlling financial interest in the VIE. We are deemed to have a controlling financial interest in a VIE if we have (i) the power to direct the activities of the VIE that most significantly affect the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive income from the VIE that could potentially be significant to the VIE. For purposes of evaluating (ii) above, fees paid to us as a decision maker or service provider are excluded if the amount of fees is commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, as well as quantitatively, as appropriate. If we have a variable interest in an entity that is determined not to be a VIE, the entity is then evaluated for consolidation under the VOE model. For limited partnerships and similar entities, we are deemed to have a controlling financial interest in a VOE, and would be required to consolidate the entity, if we own a majority of the entity’s kick-out rights through voting limited partnership interests and limited partners do not hold substantive participating rights (or other rights that would indicate that we do not control the entity). For entities other than limited partnerships, we are deemed to have a controlling financial interest in a VOE if we own a majority voting interest in the entity. The analysis performed regarding the determination of variable interests held, whether entities are VIEs or VOEs, and whether we have a controlling financial interest in such entities, requires the exercise of judgment. The analysis is updated continuously as circumstances change or new entities are formed. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include cash on hand, demand deposits, money market accounts, 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 (and considered Level 1 securities in the fair value hierarchy). |
Fees Receivable, Net | Fees Receivable, Net Fees receivable are shown net of allowances. An allowance for doubtful accounts related to investment advisory and services fees is determined through an analysis of the aging of receivables, assessments of collectability based on historical trends and other qualitative and quantitative factors, including our relationship with the client, the financial health (or ability to pay) of the client, current economic conditions and whether the account is active or closed. The allowance for doubtful accounts is not material to fees receivable. |
Brokerage Transactions | Brokerage Transactions Customers’ securities transactions are recorded on a settlement date basis, with related commission income and expenses reported on a trade date basis. Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements. We have the ability by contract or custom to sell or re-pledge this collateral and have done so at various times. As of December 31, 2022 and 2021, we had $267.1 million and $23.4 million of re-pledged securities, respectively. Principal securities transactions and related expenses are recorded on a trade date basis. Securities borrowed and securities loaned by our broker-dealer subsidiaries are recorded at the amount of cash collateral advanced or received in connection with the transaction and are included in receivables from and payables to brokers and dealers in the consolidated statements of financial condition. Securities borrowed transactions require us to deposit cash collateral with the lender. With respect to securities loaned, we receive cash collateral from the borrower. See Note 8 for securities borrowed and loaned amounts recorded in our consolidated statements of financial condition as of December 31, 2022 and 2021. The initial collateral advanced or received approximates or is greater than the fair value of securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. As of December 31, 2022 and 2021, there is no allowance provision required for the collateral advanced. Income or expense is recognized over the life of the transaction. |
Current Expected Credit Losses- Receivables from Brokerage clients and Receivables from Revenue Contracts with Customers | Current Expected Credit Losses- Receivables from Brokerage clients Receivables from clients primarily consists of margin loan balances. The value of the securities owned by clients and held as collateral for these receivables is not reflected in the consolidated financial statements and the collateral was not repledged or sold as of December 31, 2022 and 2021. We consider these financing receivables to be of good credit quality because these receivables are primarily collateralized by the related client investments. To estimate expected credit losses on margin loans, we applied the collateral maintenance practical expedient by comparing the amortized cost basis of the margin loans with the fair value of the collateral at the reporting date. Margin loans are limited to a percentage of the total value of the securities held in the client's account against those loans. AB requires, in the event of a decline in the market value of the securities in a margin account, the client to deposit additional securities or cash so that, at all times, the value of the securities in the account, at a minimum, cover the loan to the client. As such, AB reasonably expects that the borrower will be able to continually replenish collateral securing the financial asset and does not expect the fair value of collateral to fall below the amortized cost basis of the margin loans and, as a result, we consider the credit risk associated with these receivables to be minimal. In circumstances when a loan becomes undercollateralized and the client fails to deposit additional securities or cash, AB reserves the right to liquidate the account. Current Expected Credit Losses - Receivables from Revenue Contracts with Customers The majority of our revenue receivables are from investment advisory and service fees, and distribution revenues, that are typically paid out of the client accounts or third-party products consisting of cash and securities. Due to the size of the fees in relation to the value of the cash and securities in account or funds, the account value always exceeds the amortized cost basis of the receivables, resulting in a remote risk of loss. These receivables have a short duration, generally due within 30-90 days and there is minimal historical evidence of non-payment or market declines that would cause the fair value of the underlying securities to decline below the amortized cost of the receivables. AB maintains an allowance for credit losses based upon an estimate of the amount of potential credit losses in existing accounts receivable, as determined from a review of aging schedules, past due balances, historical collection experience and other specific account data. Once determined uncollectible, aged balances are written off as credit loss expense. This determination is based on careful analysis of individual receivables and aging schedules, and generally occurs when the receivable becomes over 360 days past due. Our aged receivables and amounts written off related to credit losses in any year are not material. |
Furniture, Equipment and Leasehold Improvements, Net | Furniture, Equipment and Leasehold Improvements, Net Furniture, equipment and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is recognized on a straight-line basis over the estimated useful lives of eight years for furniture and three |
Goodwill | Goodwill Our acquisitions are accounted for under the acquisition method of accounting, where the cost of the acquisition is allocated on the basis of the estimated fair value of the assets acquired and the liabilities assumed. The excess of the purchase price over the fair value of identifiable assets acquired, net of liabilities assumed, results in the recognition of goodwill. On July 1, 2022, AB Holding acquired a 100% ownership interest in CarVal Investors L.P. (“ CarVal ”). Immediately following its acquisition of CarVal (the " CarVal acquisition "), AB Holding contributed 100% of its equity interests in CarVal to AB in exchange for AB Units (see Note 24 Acquisitions and Divestitures ). On November 22, 2022, AB and SocGen, a leading Eu ropean bank, announced plans to form a joint venture combining their respective cash equities and research businesses. As a result, the BRS business has been classified as held for sale and $159.8 million of goodwill recorded on the consolidated statement of financial condition has been allocated to the held for sale disposal group. As AB is a single reporting unit, we have allocated goodwill to the disposal group based on the relative fair values of (1) the disposal group and (2) the portion of the reporting unit that will be retained. For further discussion, see Note 24 Acquisitions and Divestitures . As of December 31, 2022, we had goodwill of $3.6 billion on the consolidated statement of financial condition which included $666.1 million as a result of the CarVal acquisition in the third quarter of 2022, $2.8 billion as a result of the Sanford C. Bernstein Inc. (“ Bernstein ”) acquisition in 2000 and $291.9 million in regard to various smaller acquisitions. Approximately, $159.8 million of goodwill has been classified as assets held for sale on the consolidated statement of financial condition. Goodwill is tested annually, as of September 30, for impairment utilizing the market approach where the fair value of the reporting unit is based on its unadjusted market valuation (AB Units outstanding multiplied by AB Holding's Unit price) and adjusted market valuations assuming a control premium (when applicable). The price of a publicly traded AB Holding Unit serves as a reasonable starting point for valuing an AB Unit because each represents the same fractional interest in our underlying business. Throughout the year, the carrying value of goodwill is also reviewed for impairment if certain events or changes in circumstances occur and trigger whether an interim impairment test may be required. Such changes in circumstances may include, but are not limited to, significant transactions including acquisitions or divestitures; a sustained decrease in the price of an AB Holding Unit or declines in AB’s market capitalization that would suggest that the fair value of the reporting unit is less than the carrying amount; significant and unanticipated declines in AB’s assets under management or revenues; and/or lower than expected earnings per unit. Any of these changes in circumstances could suggest the possibility that goodwill is impaired, but none of these events or circumstances by itself would indicate that it is more likely than not that goodwill is impaired. Instead, they are merely recognized as triggering events for the consideration of impairment and must be viewed in combination with any mitigating or positive factors. A holistic evaluation of all events since the most recent quantitative impairment test must be done to determine whether it is more likely than not that the reporting unit is impaired. As of September 30, 2022, the impairment test indicated that goodwill was not impaired. The announcement of the planned joint venture between AB and SocGen and classification of the BRS business as held for sale on the consolidated statement of financial condition during the fourth quarter of 2022 was a triggering event requiring an interim impairment test; as such, we tested our goodwill as of December 31, 2022. The impairment test indicated that goodwill was not impaired. Under ASU 2017-04, Simplifying the Test for Goodwill Impairment, 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. Under this guidance, the goodwill impairment test no longer includes a determination by management of whether a decline in fair value is temporary; however, it is important that management's determination of fair value reflect the impact of changing market conditions, including the severity and anticipated duration of any such changes. |
Business Combinations | Business Combinations We account for business combinations using the acquisition method of accounting whereby the identifiable assets and liabilities of the acquired business, as well as any noncontrolling interest in the acquired business, are recorded at their estimated fair values as of the date that we obtain control of the acquired business. Any purchase consideration in excess of the estimated fair values of the net assets acquired is recorded as goodwill. Acquisition-related expenses are expensed as incurred. Often, as part of the business combination, intangible assets are recorded based on their estimated fair value at the time of acquisition and primarily relate to acquired investment management contracts. We periodically review indefinite-lived intangible assets for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, we perform additional impairment tests to measure the amount of the impairment loss, if any. During 2022 and 2021, these expenses included an intangible asset impairment charge of $5.6 million and $1.0 million, respectively, related to various historical acquisitions. We periodically enter into contingent payment arrangements in connection with our business combinations. In these arrangements, we agree to pay additional consideration to the sellers to the extent that certain performance targets are achieved. We estimate the fair value of these potential future obligations at the time a business combination is consummated and record a liability on a discounted basis on our consolidated statement of financial condition. We then accrete the obligation to its expected payment amount over the measurement period. If our expected payment amount subsequently changes, the obligation is modified in the current period resulting in a gain or loss. Both gains and losses resulting from changes to expected payments and the accretion of these obligations to their expected payment amounts are reflected within contingent payment arrangements in our consolidated statements of income. The CarVal acquisition resulted in the recording of a contingent consideration payable of $228.9 million if certain performance targets are achieved over a six-year period (see Note 9 Fair Value and Note 24 Acquisitions and Divestitures ). During 2022, there were no impairments of contingent consideration payable recorded in the consolidated statements of income. During the fourth quarters of 2021 and 2020, we recorded an impairment of the contingent consideration payable of $0.6 million and $1.4 million, respectively. These impairments were related to our 2016 acquisition of Ramius Alternative Solutions LLC. Several valuation methods may be used to determine the fair value of assets acquired and liabilities assumed. For intangible assets, we typically use a method that is a form of the income approach, whereby a forecast of future cash flows attributable to the asset are discounted to present value using a risk-adjusted discount rate. Similarly for contingent liabilities, we develop a forecast of future cash flows attributable to the performance objectives that are then discounted to present value using a risk-adjusted discount rate. Some of the more significant estimates and assumptions inherent in the income approach include the amount and timing of projected future cash flows and the discount rate selected to measure the risks inherent in the future cash flows. See Note 24 Acquisitions and Divestitures . |
Intangible Assets, Net | Intangible Assets, Net Intangible assets consist primarily of costs assigned to acquired investment management contracts based on their estimated fair value at the time of acquisition, less accumulated amortization. Intangible assets are recognized at fair value and generally are amortized on a straight-line basis over their estimated useful life ranging from 5 to 20 years. The CarVal acquisition resulted in recording of $303.0 million of finite-lived intangible assets primarily relating to investment management contracts and investor relationships with useful lives ranging from 5 to 10 years (see Note 24 Acquisitions and Divestitures ). As of December 31, 2022, intangible assets, net of accumulated amortization, of $310.2 million on the consolidated statement of financial condition consists of $295.0 million of finite-lived intangible assets subject to amortization and $15.2 million of indefinite-lived intangible assets not subject to amortization. As of December 31, 2021, intangible assets, net of accumulated amortization, of $41.5 million on the consolidated statement of financial condition consisted of $26.3 million of finite-lived intangible assets subject to amortization and $15.2 million of indefinite-lived intangible assets not subject to amortization in regard to other acquisitions. The gross carrying amount of finite-lived intangible assets totaled $327.9 million as of December 31, 2022 and $53.8 million as of December 31, 2021, and accumulated amortization was $32.9 million as of December 31, 2022 and $27.5 million as of December 31, 2021. Amortization expense was $26.6 million for 2022, $5.7 million for 2021 and $21.4 million for 2020. Estimated annual amortization expense is approximately $47 million annually in years one through three, $46 million in year four and approximately $25 million in year five. We periodically review indefinite-lived intangible assets for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, we perform additional impairment tests to measure the amount of the impairment loss, if any. During the fourth quarter of 2022 we performed an impairment assessment and recorded an impairment of $5.6 million related to our 2014 acquisition of CPH Capital. During the fourth quarters of 2021 and 2020, we recorded impairments of $1.0 million and $1.5 million, respectively, related to our 2016 acquisition of Ramius Alternative Solutions LLC. Due to the loss of acquired investment management contracts during each respective year, the carrying value of the finite-lived intangible assets exceeded the fair value of the contracts. We determined the fair value of the contracts using a discounted cash flow model. The impairment charge was recorded in general and administrative expenses |
Deferred Sales Commissions, Net | Deferred Sales Commissions, Net We pay commissions to financial intermediaries in connection with the sale of shares of open-end company-sponsored mutual funds sold without a front-end sales charge (“ back-end load shares ”). These commissions are capitalized as deferred sales commissions and amortized over periods not exceeding one year for U.S. fund shares and four years for Non-U.S. Fund shares, the periods of time during which deferred sales commissions generally are recovered. We recover these commissions from distribution services fees received from those funds and from CDSC received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Since January 31, 2009, our U.S. mutual funds have not offered back-end load shares to new investors. |
Leases | 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 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 consolidated incremental borrowing rate based on the information available as of the lease commencement date 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, cleaning and utilities. 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 |
Loss Contingencies | Loss Contingencies 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. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies assets and liabilities to be sold (disposal group) as held for sale in the period when all of the applicable criteria are met, including: (i) management commits to a plan to sell, (ii) the disposal group is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the disposal group is being actively marketed at a reasonable price in relation to its fair value, (v) significant changes to the plan to sell are unlikely, and (vi) the sale of the disposal group is generally probable of being completed within one year. Management performs an assessment of held for sale at least quarterly or when events or changes in business circumstances indicate that a change in classification may be necessary. Assets and liabilities held for sale are presented separately within the consolidated statements of financial condition with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell. Depreciation of property, plant and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each reporting period the disposal group remains classified as held for sale, the carrying value of the disposal group is adjusted for subsequent changes in fair value less costs to sell. A loss is recognized for any subsequent decrease in fair value less costs to sell, while a gain is recognized in any subsequent period for any subsequent increase in fair value less cost to sell, but not in excess of the cumulative loss previously recognized. If, in any period, the carrying value of the disposal group exceeds the estimated fair value less costs to sell, a loss is recognized on sale rather than an impairment loss. Assets and liabilities classified as held for sale on the consolidated statement of financial condition as of December 31, 2022 were $551.4 million and $108.0 million, respectively. The 2021 consolidated statement of financial condition was not recast for assets and liabilities classified as held for sale in 2022. |
Mutual Fund Underwriting Activities | Mutual Fund Underwriting Activities Purchases and sales of shares of company-sponsored mutual funds in connection with the underwriting activities of our subsidiaries, including related commission income, are recorded on the trade date. Receivables from brokers and dealers for sale of shares of company-sponsored mutual funds generally are realized within three |
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 "). Awards granted in December 2022, 2021 and 2020 allowed employees to allocate their awards between restricted AB Holding Units and deferred cash. Participants (except certain members of senior management) generally could allocate up to 50% of their awards to deferred cash, not to exceed a total of $250,000 per award. Each of our employees based outside of the United States (other than expatriates), who received an award of $100,000 or less, could have allocated 100% of their award to deferred cash. For these awards, the number of AB Holding Units awarded was based on the closing price of an AB Holding Unit on the date as of which the awards were approved by the Compensation and Workplace Practices Committee (the " Compensation Committe e") of the Board of Directors (the " Board "). For awards granted in 2022, 2021 and 2020: • We engaged in open-market purchases of AB Holding Units or purchase newly issued AB Holding Units from AB Holding that are awarded to participants and keep them in a consolidated rabbi trust. • Quarterly distributions on vested and unvested AB Holding Units were paid to participants, regardless of whether or not a long-term deferral election has been made. • Interest on deferred cash was accrued monthly based on our monthly weighted average cost of funds. We recognize compensation expense related to equity compensation grants in the financial statements using the fair value method. Fair value of restricted AB Holding Unit awards is the closing price of an AB Holding Unit on the grant date; fair value of options is determined using the Black-Scholes option valuation model. Under the fair value method, compensatory expense is measured at the grant date based on the estimated fair value of the award and is recognized over the required service period. For year-end long-term incentive compensation awards, employees who resign or are terminated without cause may retain their awards, subject to compliance with certain agreements and covenants set forth in the applicable award agreement, including the imposition of forfeiture as a result of post-employment competition, prohibitions on employee and client solicitation, and a potential claw-back for failing to follow existing risk management policies. Because there is no service requirement, we fully expense these awards on the grant date. Most equity replacement, sign-on or similar deferred compensation awards included in separate employment agreements or arrangements include a required service period. Regardless of whether the award agreement includes employee service requirements, AB Holding Units typically are delivered to employees ratably over three years to four years, unless the employee has made a long-term deferral election. Grants of restricted AB Holding Units can be awarded to Eligible Directors. Generally, these restricted AB Holding Units vest ratably over three years. These restricted AB Holding Units are not forfeitable (except if the Eligible Director is terminated for “Cause,” as that term is defined in the applicable award agreement). We fully expense these awards on grant date, as there is no service requirement. 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 ”), when AB purchases newly-issued AB Holding Units from AB Holding, AB Holding is required to use the proceeds it receives from AB to purchase the equivalent number of newly issued AB Units, thus increasing its percentage ownership interest in AB. AB Holding Units held in the consolidated rabbi trust are corporate assets in the name of the trust and are available to the general creditors of AB. Repurchases of AB Holding Units for the years ended December 31, 2022 and 2021 consisted of the following: Years Ended December 31 2022 2021 (in millions) Total amount of AB Holding Units Purchased (1) 5.2 5.6 Total Cash Paid for AB Holding Units Purchased (1) $ 211.8 $ 262.3 Open Market Purchases of AB Holding Units Purchased (1) 2.3 2.6 Total Cash Paid for Open Market Purchases of AB Holding Units (1) $ 92.7 $ 117.9 (1) Purchased on a trade date basis. The difference between open-market purchases and units retained reflects the retention of AB Holding Units from employees to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. Each quarter, we consider whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (“ Exchange Act ”). A plan of this type allows a company to repurchase its shares at times when it otherwise might be prevented from doing so because of self-imposed trading blackout periods or because it possesses material non-public information. Each broker we select has the authority to repurchase AB Holding Units on our behalf in accordance with the terms and limitations specified in 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. There was no plan adopted during the fourth quarter of 2022. 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. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities of foreign subsidiaries are translated from functional currencies into United States dollars (“ US$ |
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. |
Comprehensive Income | Comprehensive IncomeWe report all changes in comprehensive income in the consolidated statements of comprehensive income. Comprehensive income includes net income, as well as foreign currency translation adjustments, actuarial gains (losses) and prior service cost. Deferred taxes were not recognized on foreign currency translation adjustments for foreign subsidiaries which had earnings that were considered permanently invested outside the United States. |
Business Description and Orga_2
Business Description and Organization (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Ownership Interest By Limited Partners | As of December 31, 2022, 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 59.9 % AB Holding 39.4 Unaffiliated holders 0.7 100.0 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | Repurchases of AB Holding Units for the years ended December 31, 2022 and 2021 consisted of the following: Years Ended December 31 2022 2021 (in millions) Total amount of AB Holding Units Purchased (1) 5.2 5.6 Total Cash Paid for AB Holding Units Purchased (1) $ 211.8 $ 262.3 Open Market Purchases of AB Holding Units Purchased (1) 2.3 2.6 Total Cash Paid for Open Market Purchases of AB Holding Units (1) $ 92.7 $ 117.9 (1) Purchased on a trade date basis. The difference between open-market purchases and units retained reflects the retention of AB Holding Units from employees to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues for the years ended December 31, 2022, 2021 and 2020 consisted of the following: Years Ended December 31 2022 2021 2020 (in thousands) Subject to contracts with customers: Investment advisory and services fees Base fees $ 2,825,791 $ 2,949,405 $ 2,462,810 Performance-based fees 145,247 245,119 132,626 Bernstein research services 416,273 452,017 459,744 Distribution revenues All-in-management fees 290,740 350,674 331,268 12b-1 fees 69,041 83,920 75,973 Other distribution fees 247,414 217,646 122,540 Other revenues Shareholder servicing fees 86,661 90,225 82,317 Other 18,120 16,034 21,240 4,099,287 4,405,040 3,688,518 Not subject to contracts with customers: Dividend and interest income, net of interest expense 56,653 35,048 35,273 Investment (losses) (102,413) (636) (16,401) Other revenues 763 2,150 1,146 (44,997) 36,562 20,018 Total net revenues $ 4,054,290 $ 4,441,602 $ 3,708,536 |
Net Income Per Unit (Tables)
Net Income Per Unit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
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 year. 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 year. Years Ended December 31 2022 2021 2020 (in thousands, except per unit amounts) Net income attributable to AB Unitholders $ 831,813 $ 1,148,623 $ 865,952 Weighted average units outstanding—basic 273,943 271,729 269,058 Dilutive effect of compensatory options to buy AB Holding Units 1 11 27 Weighted average units outstanding—diluted 273,944 271,740 269,085 Basic net income per AB Unit $ 3.01 $ 4.18 $ 3.19 Diluted net income per AB Unit $ 3.01 $ 4.18 $ 3.19 Years Ended December 31 2022 2021 2020 (in thousands) Anti-dilutive options excluded from diluted net income — — 29,056 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consist of: Years Ended December 31 2022 2021 (in thousands) Equity securities: Long-term incentive compensation-related $ 21,055 $ 32,237 Seed capital 138,012 133,992 Other (1) — 18,243 Exchange-traded options (1) — 1,893 Investments in limited partnership hedge funds: Long-term incentive compensation-related 26,815 31,602 Seed capital 15,711 19,318 Time deposits 7,750 21,024 Other 8,175 15,109 Total investments $ 217,518 $ 273,418 (1) Amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, s ee Note 24 Acquisitions and Divestitures. |
Summary of the Cost and Fair Value of Available-For-Sale and Trading Investments | The portion of unrealized gains (losses) related to equity securities, as defined by ASC 321-10, held as of December 31, 2022 and 2021 were as follows: Years Ended December 31 2022 2021 (in thousands) Net (losses) gains recognized during the period $ (23,855) $ 19,240 Less: net gains recognized during the period on equity securities sold during the period 17,960 23,697 Unrealized losses recognized during the period on equity securities held $ (41,815) $ (4,457) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Instruments | The notional value, fair value and gains and losses recognized in investment gains (losses) as of December 31, 2022 and 2021 for derivative instruments (excluding derivative instruments relating to our options desk trading activities discussed below ) not designated as hedging instruments were as follows: Notional Derivative Derivative Gains (in thousands) December 31, 2022 Exchange-traded futures $ 154,687 $ 1,768 $ 162 $ 19,994 Currency forwards 34,597 4,446 5,047 1,965 Interest rate swaps 16,847 386 262 70 Credit default swaps 225,671 17,507 7,302 (1,000) Total return swaps 28,742 605 933 14,828 Option swaps 50,000 — 6 5,211 Total derivatives $ 510,544 $ 24,712 $ 13,712 $ 41,068 December 31, 2021 Exchange-traded futures $ 131,876 $ 392 $ 1,186 $ (5,072) Currency forwards 66,058 7,344 6,980 1,746 Interest rate swaps 13,483 497 833 (316) Credit default swaps 155,757 6,594 6,967 (2,914) Total return swaps 63,817 595 527 (6,433) Option swaps 50,000 — 430 (309) Total derivatives $ 480,991 $ 15,422 $ 16,923 $ (13,298) |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
Offsetting of Financial Assets | Offsetting of assets as of December 31, 2022 and 2021 was as follows: Gross Gross Net Financial Cash Collateral Net (in thousands) December 31, 2022 Securities borrowed (1) $ 62,063 $ — $ 62,063 $ (62,058) $ — $ 5 Derivatives 24,712 — 24,712 — (8,361) 16,351 Long exchange-traded options (1) — — — — — — December 31, 2021 Securities borrowed $ 19,899 $ — $ 19,899 $ (18,327) $ — $ 1,572 Derivatives 15,422 — 15,422 — (2,872) 12,550 Long exchange-traded options 1,893 — 1,893 — — 1,893 Offsetting of derivative assets of consolidated company-sponsored investment funds as of December 31, 2022 and 2021 was as follows: Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Cash Collateral Net (in thousands) December 31, 2022: Derivatives $ 7,552 $ — $ 7,552 $ — $ (2,731) $ 4,821 December 31, 2021: Derivatives $ 5,887 $ — $ 5,887 $ — $ (904) $ 4,983 |
Offsetting of Financial Liabilities | Offsetting of liabilities as of December 31, 2022 and 2021 was as follows: Gross Gross Net Financial Cash Collateral Net (in thousands) December 31, 2022 Securities loaned (1) $ 272,580 $ — $ 272,580 $ (267,053) $ 5,527 Derivatives 13,712 — 13,712 — (4,158) 9,554 Short exchange-traded options (1) — — — — — — December 31, 2021 Securities loaned $ 23,911 $ — $ 23,911 $ (23,373) $ — $ 538 Derivatives 16,923 — 16,923 — (5,572) 11,351 Short exchange-traded options 2,774 — 2,774 — — 2,774 (1) Certain amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, s ee Note 24 Acquisitions and Divestitures . Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of December 31, 2022 and 2021 was as follows: Gross Gross Amounts Offset in the Statement of Financial Condition Net Amounts Financial Cash Collateral Net (in thousands) December 31, 2022: Derivatives $ 21,540 $ — $ 21,540 $ — $ (5,444) $ 16,096 December 31, 2021: Derivatives $ 18,342 $ — $ 18,342 $ — $ (1,824) $ 16,518 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | Valuation of our financial instruments by pricing observability levels as of December 31, 2022 and 2021 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (2) Other Total December 31, 2022 (1) : Money markets $ 95,521 $ — $ — $ — $ — $ 95,521 Securities segregated (U.S. Treasury Bills) — 1,521,705 — — — 1,521,705 Derivatives 1,768 22,944 — — — 24,712 Investments: Equity securities 129,655 27,799 129 1,484 — 159,067 Limited partnership hedge funds (3) — — — — 42,526 42,526 Time deposits (4) — — — — 7,750 7,750 Other investments 6,689 — — — 1,486 8,175 Total investments 136,344 27,799 129 1,484 51,762 217,518 Total assets measured at fair value $ 233,633 $ 1,572,448 $ 129 $ 1,484 $ 51,762 $ 1,859,456 Derivatives 162 13,550 — — — 13,712 Contingent payment arrangements — — 247,309 — — 247,309 Total liabilities measured at fair value $ 162 $ 13,550 $ 247,309 $ — $ — $ 261,021 December 31, 2021: Money markets $ 151,156 $ — $ — $ — $ — $ 151,156 Securities segregated (U.S. Treasury Bills) — 1,503,828 — — — 1,503,828 Derivatives 392 15,030 — — — 15,422 Investments: Equity securities 144,917 39,284 126 145 — 184,472 Long exchange-traded options 1,893 — — — — 1,893 Limited partnership hedge funds (3) — — — — 50,920 50,920 Time deposits (4) — — — — 21,024 21,024 Other investments 9,094 — — — 6,015 15,109 Total investments 155,904 39,284 126 145 77,959 273,418 Total assets measured at fair value $ 307,452 $ 1,558,142 $ 126 $ 145 $ 77,959 $ 1,943,824 Securities sold not yet purchased: Short equities – corporate $ 1,054 $ — $ — $ — $ — $ 1,054 Short exchange-traded options 2,774 — — — — 2,774 Derivatives 1,186 15,737 — — — 16,923 Contingent payment arrangements — — 38,260 — — 38,260 Total liabilities measured at fair value $ 5,014 $ 15,737 $ 38,260 $ — $ — $ 59,011 (1) Certain amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, s ee Note 24 Acquisitions and Divestitures . (2) Investments measured at fair value using NAV (or its equivalent) as a practical expedient. (3) Investments in equity method investees that are not measured at fair value in accordance with GAAP. (4) Investments carried at amortized cost that are not measured at fair value in accordance with GAAP. Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of December 31, 2022 and 2021 was as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2022: Investments $ 129,706 $ 386,830 $ — $ 516,536 Derivatives 1,529 6,023 — 7,552 Total assets measured at fair value $ 131,235 $ 392,853 $ — $ 524,088 Derivatives $ 14,932 $ 6,608 $ — $ 21,540 Total liabilities measured at fair value $ 14,932 $ 6,608 $ — $ 21,540 December 31, 2021: Investments $ 165,415 $ 444,253 $ 3,357 $ 613,025 Derivatives 622 5,265 — 5,887 Total assets measured at fair value $ 166,037 $ 449,518 $ 3,357 $ 618,912 Derivatives $ 16,291 $ 2,051 $ — $ 18,342 Total liabilities measured at fair value $ 16,291 $ 2,051 $ — $ 18,342 |
Fair Value Measurement Level 3 Reconciliation | The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as equity securities, is as follows: December 31 2022 2021 (in thousands) Balance as of beginning of period $ 126 $ 125 Purchases — — Sales — — Realized gains (losses), net — — Unrealized gains (losses), net 3 1 Balance as of end of period $ 129 $ 126 The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company- sponsored investment funds was as follows: December 31, 2022 2021 (in thousands) Balance as of beginning of period $ 3,357 $ 619 Deconsolidated funds (3,351) (717) Transfers (out) (6) (205) Purchases 248 3,675 Sales (248) (7) Realized gains, net — 3 Unrealized (losses), net — (11) Balance as of end of period $ — $ 3,357 |
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: December 31 2022 2021 (in thousands) Balance as of beginning of period $ 38,260 $ 27,750 Addition 231,385 7,800 Accretion 6,563 3,310 Changes in estimates — (600) Held for sale reclassification (28,899) — Balance as of end of period $ 247,309 $ 38,260 |
Furniture, Equipment and Leas_2
Furniture, Equipment and Leasehold Improvements, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Furniture, Equipment and Leasehold Improvement, Net | Furniture, equipment and leasehold improvements, net consist of: Years Ended December 31 2022 2021 (in thousands) Furniture and equipment $ 605,567 $ 584,161 Leasehold improvements 323,982 301,036 Total 929,549 885,197 Less: Accumulated depreciation and amortization (740,291) (716,022) Furniture, equipment and leasehold improvements, net $ 189,258 $ 169,175 |
Deferred Sales Commissions, N_2
Deferred Sales Commissions, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Deferred Sales Commissions | The components of deferred sales commissions, net for the years ended December 31, 2022 and 2021 were as follows (excluding amounts related to fully amortized deferred sales commissions): Years Ended December 31 2022 2021 (in thousands) Carrying amount of deferred sales commissions $ 172,181 $ 177,233 Less: Accumulated amortization (66,184) (53,976) Cumulative CDSC received (53,747) (48,358) Deferred sales commissions, net $ 52,250 $ 74,899 |
Expected Amortization of Deferred Sales Commissions | Estimated future amortization expense related to the December 31, 2022 net asset balance, assuming no additional CDSC is received in future periods, is as follows (in thousands): 2023 $ 28,683 2024 17,848 2025 5,309 2026 410 Total $ 52,250 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Leases | Leases included in the consolidated statements of financial condition as of December 31, 2022 and 2021 were as follows: Classification December 31, 2022 December 31, 2021 (in thousands) Operating Leases Operating lease right-of-use assets Right-of-use assets $ 360,092 $ 414,105 Operating lease liabilities Lease liabilities 415,539 482,781 Finance Leases Property and equipment, gross Right-of-use assets 18,116 10,947 Amortization of right-of-use assets Right-of-use assets (6,310) (3,072) Property and equipment, net 11,806 7,875 Finance lease liabilities Lease liabilities 11,940 7,954 |
Components of Lease Expense and Supplemental Cash Flow Information | he components of lease expense included in the consolidated statements of income for the years ended December 31, 2022 and 2021 were as follows: Years Ended December 31 Classification 2022 2021 (in thousands) Operating lease cost General and administrative $ 97,198 $ 97,466 Financing lease cost: Amortization of right-of-use assets General and administrative 3,860 2,355 Interest on lease liabilities Interest expense 200 107 Total finance lease cost 4,060 2,462 Variable lease cost (1) General and administrative 40,552 39,827 Sublease income General and administrative (34,420) (37,317) Net lease cost $ 107,390 $ 102,438 (1) Variable lease expense includes operating expenses, real estate taxes and employee parking. Lease term and discount rate: Weighted average remaining lease term (years): Operating leases 7.35 Finance leases 3.47 Weighted average discount rate: Operating leases 2.69 % Finance leases 2.10 % Supplemental non-cash activity related to leases are as follows: Years Ended December 31 2022 2021 (in thousands) Right-of-use assets obtained in exchange for lease obligations (1) : Operating leases $ 38,875 $ 82,379 Finance leases 7,791 7,782 (1) Represents non-cash activity and, accordingly, is not reflected in the consolidated statements of cash flows. |
Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities are as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2023 $ 97,489 $ 4,169 $ 101,658 2024 104,596 3,258 107,854 2025 37,319 2,828 40,147 2026 35,808 1,810 37,618 2027 32,821 324 33,145 Thereafter 146,319 — 146,319 Total lease payments 454,352 12,389 $ 466,741 Less interest (38,813) (449) Present value of lease liabilities $ 415,539 $ 11,940 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities are as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2023 $ 97,489 $ 4,169 $ 101,658 2024 104,596 3,258 107,854 2025 37,319 2,828 40,147 2026 35,808 1,810 37,618 2027 32,821 324 33,145 Thereafter 146,319 — 146,319 Total lease payments 454,352 12,389 $ 466,741 Less interest (38,813) (449) Present value of lease liabilities $ 415,539 $ 11,940 Payments Sublease Receipts Net Payments (in millions) 2023 $ 107.6 $ (31.9) $ 75.7 2024 108.9 (30.9) 78.0 2025 58.3 — 58.3 2026 55.7 — 55.7 2027 51.3 — 51.3 2028 and thereafter 487.7 — 487.7 Total future minimum payments $ 869.5 $ (62.8) $ 806.7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities are as follows: Operating Leases Financing Leases Total Year ending December 31, (in thousands) 2023 $ 97,489 $ 4,169 $ 101,658 2024 104,596 3,258 107,854 2025 37,319 2,828 40,147 2026 35,808 1,810 37,618 2027 32,821 324 33,145 Thereafter 146,319 — 146,319 Total lease payments 454,352 12,389 $ 466,741 Less interest (38,813) (449) Present value of lease liabilities $ 415,539 $ 11,940 Payments Sublease Receipts Net Payments (in millions) 2023 $ 107.6 $ (31.9) $ 75.7 2024 108.9 (30.9) 78.0 2025 58.3 — 58.3 2026 55.7 — 55.7 2027 51.3 — 51.3 2028 and thereafter 487.7 — 487.7 Total future minimum payments $ 869.5 $ (62.8) $ 806.7 |
Sub Lease, Lease Income | The future minimum payments under non-cancelable leases, sublease commitments and related payments we are obligated to make, net of sublease commitments of third party lessees to make payments to us, as of December 31, 2022, are as follows: Payments Sublease Receipts Net Payments (in millions) 2023 $ 107.6 $ (31.9) $ 75.7 2024 108.9 (30.9) 78.0 2025 58.3 — 58.3 2026 55.7 — 55.7 2027 51.3 — 51.3 2028 and thereafter 487.7 — 487.7 Total future minimum payments $ 869.5 $ (62.8) $ 806.7 |
Consolidated Company-Sponsore_2
Consolidated Company-Sponsored Investment Funds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Consolidated Company-Sponsored Investment Funds [Abstract] | |
Balances of Consolidated VIEs and VOEs Included In Condensed Consolidated Statements of Financial Condition | The balances of consolidated VIEs included in our consolidated statements of financial condition were as follows: December 31, 2022 December 31, 2021 (in thousands) Cash and cash equivalents $ 19,751 $ 90,326 Investments 516,536 613,025 Other assets 44,424 30,461 Total assets $ 580,711 $ 733,812 Liabilities $ 55,529 $ 87,000 Redeemable non-controlling interest 368,656 421,169 Partners' capital attributable to AB Unitholders 156,526 225,643 Total liabilities, redeemable non-controlling interest and partners' capital $ 580,711 $ 733,812 |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | Valuation of our financial instruments by pricing observability levels as of December 31, 2022 and 2021 was as follows (in thousands): Level 1 Level 2 Level 3 NAV Expedient (2) Other Total December 31, 2022 (1) : Money markets $ 95,521 $ — $ — $ — $ — $ 95,521 Securities segregated (U.S. Treasury Bills) — 1,521,705 — — — 1,521,705 Derivatives 1,768 22,944 — — — 24,712 Investments: Equity securities 129,655 27,799 129 1,484 — 159,067 Limited partnership hedge funds (3) — — — — 42,526 42,526 Time deposits (4) — — — — 7,750 7,750 Other investments 6,689 — — — 1,486 8,175 Total investments 136,344 27,799 129 1,484 51,762 217,518 Total assets measured at fair value $ 233,633 $ 1,572,448 $ 129 $ 1,484 $ 51,762 $ 1,859,456 Derivatives 162 13,550 — — — 13,712 Contingent payment arrangements — — 247,309 — — 247,309 Total liabilities measured at fair value $ 162 $ 13,550 $ 247,309 $ — $ — $ 261,021 December 31, 2021: Money markets $ 151,156 $ — $ — $ — $ — $ 151,156 Securities segregated (U.S. Treasury Bills) — 1,503,828 — — — 1,503,828 Derivatives 392 15,030 — — — 15,422 Investments: Equity securities 144,917 39,284 126 145 — 184,472 Long exchange-traded options 1,893 — — — — 1,893 Limited partnership hedge funds (3) — — — — 50,920 50,920 Time deposits (4) — — — — 21,024 21,024 Other investments 9,094 — — — 6,015 15,109 Total investments 155,904 39,284 126 145 77,959 273,418 Total assets measured at fair value $ 307,452 $ 1,558,142 $ 126 $ 145 $ 77,959 $ 1,943,824 Securities sold not yet purchased: Short equities – corporate $ 1,054 $ — $ — $ — $ — $ 1,054 Short exchange-traded options 2,774 — — — — 2,774 Derivatives 1,186 15,737 — — — 16,923 Contingent payment arrangements — — 38,260 — — 38,260 Total liabilities measured at fair value $ 5,014 $ 15,737 $ 38,260 $ — $ — $ 59,011 (1) Certain amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, s ee Note 24 Acquisitions and Divestitures . (2) Investments measured at fair value using NAV (or its equivalent) as a practical expedient. (3) Investments in equity method investees that are not measured at fair value in accordance with GAAP. (4) Investments carried at amortized cost that are not measured at fair value in accordance with GAAP. Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of December 31, 2022 and 2021 was as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2022: Investments $ 129,706 $ 386,830 $ — $ 516,536 Derivatives 1,529 6,023 — 7,552 Total assets measured at fair value $ 131,235 $ 392,853 $ — $ 524,088 Derivatives $ 14,932 $ 6,608 $ — $ 21,540 Total liabilities measured at fair value $ 14,932 $ 6,608 $ — $ 21,540 December 31, 2021: Investments $ 165,415 $ 444,253 $ 3,357 $ 613,025 Derivatives 622 5,265 — 5,887 Total assets measured at fair value $ 166,037 $ 449,518 $ 3,357 $ 618,912 Derivatives $ 16,291 $ 2,051 $ — $ 18,342 Total liabilities measured at fair value $ 16,291 $ 2,051 $ — $ 18,342 |
Change in Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value | The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as equity securities, is as follows: December 31 2022 2021 (in thousands) Balance as of beginning of period $ 126 $ 125 Purchases — — Sales — — Realized gains (losses), net — — Unrealized gains (losses), net 3 1 Balance as of end of period $ 129 $ 126 The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company- sponsored investment funds was as follows: December 31, 2022 2021 (in thousands) Balance as of beginning of period $ 3,357 $ 619 Deconsolidated funds (3,351) (717) Transfers (out) (6) (205) Purchases 248 3,675 Sales (248) (7) Realized gains, net — 3 Unrealized (losses), net — (11) Balance as of end of period $ — $ 3,357 |
Offsetting of Derivative Assets | Offsetting of assets as of December 31, 2022 and 2021 was as follows: Gross Gross Net Financial Cash Collateral Net (in thousands) December 31, 2022 Securities borrowed (1) $ 62,063 $ — $ 62,063 $ (62,058) $ — $ 5 Derivatives 24,712 — 24,712 — (8,361) 16,351 Long exchange-traded options (1) — — — — — — December 31, 2021 Securities borrowed $ 19,899 $ — $ 19,899 $ (18,327) $ — $ 1,572 Derivatives 15,422 — 15,422 — (2,872) 12,550 Long exchange-traded options 1,893 — 1,893 — — 1,893 Offsetting of derivative assets of consolidated company-sponsored investment funds as of December 31, 2022 and 2021 was as follows: Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Cash Collateral Net (in thousands) December 31, 2022: Derivatives $ 7,552 $ — $ 7,552 $ — $ (2,731) $ 4,821 December 31, 2021: Derivatives $ 5,887 $ — $ 5,887 $ — $ (904) $ 4,983 |
Offsetting of Derivative Liabilities | Offsetting of liabilities as of December 31, 2022 and 2021 was as follows: Gross Gross Net Financial Cash Collateral Net (in thousands) December 31, 2022 Securities loaned (1) $ 272,580 $ — $ 272,580 $ (267,053) $ 5,527 Derivatives 13,712 — 13,712 — (4,158) 9,554 Short exchange-traded options (1) — — — — — — December 31, 2021 Securities loaned $ 23,911 $ — $ 23,911 $ (23,373) $ — $ 538 Derivatives 16,923 — 16,923 — (5,572) 11,351 Short exchange-traded options 2,774 — 2,774 — — 2,774 (1) Certain amounts have been classified as held for sale on the consolidated statement of financial position as of December 31, 2022. For further discussion, s ee Note 24 Acquisitions and Divestitures . Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of December 31, 2022 and 2021 was as follows: Gross Gross Amounts Offset in the Statement of Financial Condition Net Amounts Financial Cash Collateral Net (in thousands) December 31, 2022: Derivatives $ 21,540 $ — $ 21,540 $ — $ (5,444) $ 16,096 December 31, 2021: Derivatives $ 18,342 $ — $ 18,342 $ — $ (1,824) $ 16,518 |
Qualified Employee Benefit Pl_2
Qualified Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Change in Projected Benefit Obligation, Fair Value of Plan Assets and Funded Status of Plan | The Retirement Plan’s projected benefit obligation, fair value of plan assets and funded status (amounts recognized in the consolidated statements of financial condition) were as follows: Years Ended December 31 2022 2021 (in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 141,862 $ 151,124 Interest cost 3,958 3,794 Plan settlements (4,524) (5,803) Actuarial (gain) (37,839) (4,447) Benefits paid (2,977) (2,806) Projected benefit obligation at end of year 100,480 141,862 Change in plan assets: Plan assets at fair value at beginning of year 130,939 125,022 Actual return on plan assets (27,448) 14,526 Employer contribution — — Plan settlements (4,524) (5,803) Benefits paid (2,977) (2,806) Plan assets at fair value at end of year 95,990 130,939 Funded status $ (4,490) $ (10,923) |
Reconciliation of Amounts Recognized in Other Comprehensive Income for the Retirement Plan | The amounts recognized in other comprehensive income (loss) for the Retirement Plan for 2022, 2021 and 2020 were as follows: 2022 2021 2020 (in thousands) Unrecognized net gain (loss) from experience different from that assumed and effects of changes and assumptions $ 6,519 $ 15,858 $ (4,089) Prior service cost 24 24 24 6,543 15,882 (4,065) Income tax (expense) (33) (87) (216) Other comprehensive income (loss) $ 6,510 $ 15,795 $ (4,281) " OCI Statement " ) is as follows: Retirement Retired Individual Plan Foreign Retirement Plans OCI (in thousands) Recognized actuarial gain $ 6,519 $ 107 $ 296 $ 6,922 Amortization of prior service cost 24 — — 24 Changes in employee benefit related items 6,543 107 296 6,946 Income tax (expense) (33) — (62) (95) Employee benefit related items, net of tax $ 6,510 $ 107 $ 234 $ 6,851 |
Amounts Included in Accumulated Other Comprehensive Income (Loss) for the Retirement Plan | The amounts included in accumulated other comprehensive loss for the Retirement Plan as of December 31, 2022 and 2021 were as follows: 2022 2021 (in thousands) Unrecognized net loss from experience different from that assumed and effects of changes and assumptions $ (37,249) $ (43,768) Prior service cost (659) (683) (37,908) (44,451) Income tax benefit 177 210 Accumulated other comprehensive loss $ (37,731) $ (44,241) |
Expected Future Benefit Payments | Benefit payments are expected to be paid as follows (in thousands): 2023 $ 10,121 2024 6,767 2025 8,058 2026 7,865 2027 8,743 2028 - 2032 38,404 |
Net (Benefit) Expense Under the Retirement Plan | Net expense under the Retirement Plan consisted of: Years Ended December 31 2022 2021 2020 (in thousands) Interest cost on projected benefit obligations $ 3,958 $ 3,794 $ 4,443 Expected return on plan assets (6,591) (6,351) (6,084) Amortization of prior service cost 24 24 24 Settlement loss recognized 1,678 2,024 — Recognized actuarial loss 1,042 1,447 1,386 Net pension expense $ 111 $ 938 $ (231) |
Actuarial Computations Used to Determine Net Periodic Benefit Costs | Actuarial computations used to determine net periodic costs were made utilizing the following weighted-average assumptions: Years Ended December 31 2022 2021 2020 Discount rate on benefit obligations 2.90 % 2.55 % 3.35 % Expected long-term rate of return on plan assets 5.25 % 5.25 % 5.50 % |
Retirement Plan Asset Allocation | The Retirement Plan’s asset allocation percentages consisted of: Years Ended December 31 2022 2021 Equity 46 % 52 % Debt securities 42 38 Other 12 10 Total 100 % 100 % |
Valuation of Retirement Plan Assets by Pricing Observability Levels | The valuation of our Retirement Plan assets by pricing observability levels as of December 31, 2022 and 2021 was as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2022 Cash $ 1,441 $ — $ — $ 1,441 U.S. Treasury Strips — 15,634 — 15,634 Fixed income mutual funds 2,149 — — 2,149 Fixed income securities — 22,478 — 22,478 Equity mutual funds 26,074 — — 26,074 Equity securities 10,928 219 — 11,147 Total assets in the fair value hierarchy 40,592 38,331 — 78,923 Investments measured at net assets value — — — 17,067 Investments at fair value $ 40,592 $ 38,331 $ — $ 95,990 Level 1 Level 2 Level 3 Total December 31, 2021 Cash $ 47 $ — $ — $ 47 U.S. Treasury Strips — 32,355 — 32,355 Fixed income mutual funds 17,477 — — 17,477 Equity mutual funds 43,786 — — 43,786 Equity securities 14,801 — — 14,801 Total assets in the fair value hierarchy 76,111 32,355 — 108,466 Investments measured at net assets value — — — 22,473 Investments at fair value $ 76,111 $ 32,355 $ — $ 130,939 |
Long-term Incentive Compensat_2
Long-term Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Compensation Related Costs [Abstract] | |
Summary of Option Awards Activity | The option-related activity in our equity compensation plans during 2022 is as follows: Options to Buy Weighted Weighted Aggregate Outstanding as of December 31, 2021 5,774 $ 20.12 0.33 Granted — — Exercised (5,774) 20.12 Forfeited — — Expired — — Outstanding as of December 31, 2022 — $ — — $ — Exercisable as of December 31, 2022 — $ — — $ — Vested or expected to vest as of December 31, 2022 — $ — — $ — |
Summary of Activity of Unvested Restricted Holding Units | Grant details related to these awards is as follows: 2022 2021 2020 Restricted Units Awarded 30,870 35,358 50,232 Weighted Average Grant Date Fair Value $ 38.55 $ 44.29 $ 23.69 Compensation Expense (in millions) $ 1.2 $ 1.6 $ 1.2 2022 2021 2020 (in millions excluding share prices) Restricted Units Awarded 0.5 3.4 0.4 Grant Date Fair Value Range $34.86 - $49.90 $29.06 - $53.86 $18.80 - $35.42 Compensation Expense $ 35.0 $ 40.9 $ 32.1 AB Holding Weighted Average Unvested as of December 31, 2021 18,130,740 $ 33.98 Granted 4,709,600 40.31 Vested (7,671,109) 32.10 Forfeited (396,995) 36.15 Unvested as of December 31, 2022 14,772,236 $ 36.92 |
Units Outstanding (Tables)
Units Outstanding (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Changes in Units Outstanding | Changes in AB Units outstanding for the years ended December 31, 2022 and 2021 were as follows: 2022 2021 Outstanding as of January 1, 271,453,043 270,509,658 Options exercised 5,774 143,211 Units issued (1) 17,326,222 3,917,437 Units retired (2) (2,805,126) (3,117,263) Outstanding as of December 31, 285,979,913 271,453,043 (1) Includes 15,321,535 Units issued as a result of the CarVal acquisition. (2) During 2022 and 2021, we purchased 2,500 and 5,400 AB Units, respectively, in private transactions and retired them. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Taxes and Income Tax Expense | Earnings before income taxes and income tax expense consist of: Years Ended December 31 2022 2021 2020 (in thousands) Earnings before income taxes: United States $ 689,278 $ 1,007,847 $ 743,687 Foreign 125,818 208,615 163,749 Total $ 815,096 $ 1,216,462 $ 907,436 Income tax expense: Partnership UBT $ 5,996 $ 6,951 $ 3,356 Corporate subsidiaries: Federal 1,457 750 1,495 State and local 931 956 904 Foreign 34,327 58,080 44,086 Current tax expense 42,711 66,737 49,841 Deferred tax (3,072) (4,009) (4,188) Income tax expense $ 39,639 $ 62,728 $ 45,653 |
Difference Between the Effective Tax Rates and UBT Statutory Tax Rate | The principal reasons for the difference between the effective tax rates and the UBT statutory tax rate of 4.0% are as follows: Years Ended December 31 2022 2021 2020 (in thousands) UBT statutory rate $ 32,604 4.0 % $ 48,659 4.0 % $ 36,297 4.0 % Corporate subsidiaries' federal, state, and local 1,460 0.2 1,322 0.2 2,025 0.2 Foreign subsidiaries taxed at different rates 32,664 4.0 43,019 3.5 33,969 3.7 FIN 48 reserve (release) — — — — (1,886) (0.2) UBT business allocation percentage rate change (98) — 23 — 8 — Deferred tax and payable write-offs 1,089 0.1 1,003 0.1 (887) (0.1) Foreign outside basis difference (1,535) (0.2) 1,492 0.1 3 — Amended 2017 return — — — — (221) — Effect of ASC 740 adjustments, miscellaneous taxes, and other 5,366 0.7 1,799 0.1 2,654 0.3 Tax Credits (5,275) (0.6) — — — — Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge (26,636) (3.3) (34,589) (2.8) (26,309) (2.9) Income tax expense and effective tax rate $ 39,639 4.9 % $ 62,728 5.2 % $ 45,653 5.0 % |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31 2022 2021 2020 (in thousands) Balance as of beginning of period $ 2,838 $ 2,838 $ 5,706 Additions for prior year tax positions — — — Reductions for prior year tax positions — — — Additions for current year tax positions — — — Reductions for current year tax positions — — — Reductions related to closed years/settlements with tax authorities — — (2,868) Balance as of end of period $ 2,838 $ 2,838 $ 2,838 |
Tax Effect of Significant Items Comprising the Net Deferred Tax Asset (Liability) | The tax effect of significant items comprising the net deferred tax asset (liability) is as follows: Years Ended December 31 2022 2021 (in thousands) Deferred tax asset: Differences between book and tax basis: Benefits from net operating loss carryforwards $ 4,918 $ 7,833 Long-term incentive compensation plans 17,524 24,468 Investment basis differences 10,286 5,523 Depreciation and amortization 3,071 3,942 Lease liability 4,911 5,327 Investment in foreign subsidiaries 26,479 — Tax credit carryforward 6,171 — Other, primarily accrued expenses deductible when paid 6,860 4,917 80,220 52,010 Less: valuation allowance (38,110) (3,828) Deferred tax asset 42,110 48,182 Deferred tax liability: Differences between book and tax basis: Intangible assets 10,190 7,622 Investment in foreign subsidiaries — 4,084 Right-of-use asset 4,191 4,490 Other 2,808 2,075 Deferred tax liability 17,189 18,271 Net deferred tax asset $ 24,921 $ 29,911 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Net Revenues From Investment Management, Research and Related Services | Net revenues derived from our investment management, research and related services were as follows: Years Ended December 31 2022 2021 2020 (in thousands) Institutions $ 659,983 $ 587,017 $ 512,914 Retail 2,000,908 2,223,829 1,811,948 Private Wealth Management 1,004,003 1,126,142 882,672 Bernstein Research Services 416,273 452,017 459,744 Other 39,561 56,283 56,908 Total revenues 4,120,728 4,445,288 3,724,186 Less: Interest expense 66,438 3,686 15,650 Net revenues $ 4,054,290 $ 4,441,602 $ 3,708,536 |
Net Revenues and Long-Lived Assets, Related to Geographic Areas | Net revenues and long-lived assets, related to our U.S. and international operations, as of and for the years ended December 31, were as follows: 2022 2021 2020 (in thousands) Net revenues: United States $ 2,381,958 $ 2,558,592 $ 2,106,636 International 1,672,332 1,883,010 1,601,900 Total (1) $ 4,054,290 $ 4,441,602 $ 3,708,536 Long-lived assets: United States $ 4,067,991 $ 3,331,572 International 72,466 45,796 Total $ 4,140,457 $ 3,377,368 (1) We have recast prior period presentation of geographic revenues to align with current period presentation by legal entity domicile as compared to historical presentation method by client domicile. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Revenues for Services Provided or Related to the Mutual Funds | Revenues for services provided or related to the mutual funds are as follows: Years Ended December 31 2022 2021 2020 (in thousands) Investment advisory and services fees $ 1,452,885 $ 1,644,757 $ 1,368,484 Distribution revenues 590,580 637,076 516,336 Shareholder servicing fees 79,167 85,745 79,394 Other revenues 8,366 8,364 8,314 Bernstein Research Services — 2 3 $ 2,130,998 $ 2,375,944 $ 1,972,531 |
Consolidated Financial Statements for Transactions with Related Parties | Aggregate amounts included in the consolidated financial statements for transactions with EQH and its subsidiaries, as of and for the years ended December 31, are as follows: EQH 2022 2021 2020 (in thousands) Revenues: Investment advisory and services fees $ 148,377 $ 133,074 $ 115,901 Other revenues 688 675 1,330 $ 149,065 $ 133,749 $ 117,231 Expenses: Commissions and distribution payments to financial intermediaries $ 3,897 $ 4,550 $ 3,952 General and administrative 2,882 2,373 2,281 Other 14,069 3,953 5,463 $ 20,848 $ 10,876 $ 11,696 Balance Sheet: Institutional investment advisory and services fees receivable $ 7,732 $ 8,607 Prepaid expenses 385 545 Other due to EQH and its subsidiaries (4,206) (1,534) EQH Facility (990,000) (755,000) $ (986,089) $ (747,382) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the amounts of identified assets acquired and liabilities assumed at the acquisition date (reflecting acquisition adjustments recorded in the fourth quarter of 2022), as well as the consideration transferred to acquire CarVal (in thousands): Summary of purchase consideration: Fair value of AB Holding units issued $ 589,169 Fair value of contingent consideration 228,885 Total purchase consideration $ 818,054 Purchase price allocation: Assets acquired: Cash and cash equivalents $ 40,777 Receivables, net 82,523 Investments - other 947 Furniture, equipment, and leasehold improvements, net 2,464 Right-of-use assets 16,482 Other assets 10,600 Deferred tax asset 5,073 Intangible assets 303,000 Goodwill 666,130 Total assets acquired 1,127,996 Liabilities assumed: Accounts payable and accrued expenses (17,793) Accrued compensation and benefits (219,726) Debt (42,661) Lease liabilities (16,571) Non-redeemable non-controlling interests in consolidated entities (13,191) Total liabilities assumed (309,942) Net assets acquired $ 818,054 |
Disposal Groups, Including Discontinued Operations | The following table summarizes the assets and liabilities of the disposal group classified as held for sale on the consolidated statement of financial condition as of December 31, 2022: Cash and cash equivalents $ 159,123 Receivables, net: Brokers and dealers 44,717 Brokerage clients 29,243 Other fees 22,988 Investments 24,507 Furniture and equipment, net 4,128 Other assets 107,764 Right-of-use assets 1,552 Intangible assets 4,903 Goodwill 159,826 Valuation adjustment (allowance) on disposal group (7,400) Total assets held for sale $ 551,351 Payables: Brokers and dealers $ 32,983 Brokerage clients 10,232 Other liabilities 50,884 Accrued compensation and benefits 13,853 Total liabilities held for sale $ 107,952 |
Business Description and Orga_3
Business Description and Organization - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Ownership structure of AB expressed as percentage of general and limited partnership interests | |
General Partnership number of general partnership units owned in Holding Company (in units) | 100,000 |
AXA and its subsidiaries economic interest in Company | 61.30% |
EQH | AB Holding | |
Ownership structure of AB expressed as percentage of general and limited partnership interests | |
Percentage of General Partnership interest in company | 3.50% |
AllianceBernstein Corporation | AB Holding | |
Ownership structure of AB expressed as percentage of general and limited partnership interests | |
Percentage of General Partnership interest in company | 1% |
Business Description and Orga_4
Business Description and Organization - Summary of Ownership Structure (Details) | 12 Months Ended |
Dec. 31, 2022 | |
AllianceBernstein Corporation | |
Ownership structure of AB Holding | |
Limited partners or members ownership interest in company (percent) | 100% |
EQH and its subsidiaries | |
Ownership structure of AB Holding | |
Limited partners or members ownership interest in company (percent) | 59.90% |
AB Holding | |
Ownership structure of AB Holding | |
Limited partners or members ownership interest in company (percent) | 39.40% |
Unaffiliated holders | |
Ownership structure of AB Holding | |
Limited partners or members ownership interest in company (percent) | 0.70% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Feb. 08, 2023 $ / shares | Jul. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) reportingUnit $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares | |
Business Acquisition [Line Items] | ||||||||||
Repledged securities | $ 267,100,000 | $ 23,400,000 | $ 267,100,000 | $ 23,400,000 | $ 267,100,000 | $ 23,400,000 | ||||
Collateral advances, allowance | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Margin deposit assets | 114,900,000 | 114,900,000 | 114,900,000 | |||||||
U.S. Treasury bills pledged as collateral | 0 | 0 | 0 | 0 | $ 0 | 0 | ||||
Number of reporting units | reportingUnit | 1 | |||||||||
Goodwill | 3,598,591,000 | 3,091,763,000 | 3,598,591,000 | 3,091,763,000 | $ 3,598,591,000 | 3,091,763,000 | ||||
Held for sale asset disposal group | 159,800,000 | 159,800,000 | 159,800,000 | |||||||
Intangible assets, net of accumulated amortization | 310,203,000 | 41,531,000 | 310,203,000 | 41,531,000 | 310,203,000 | 41,531,000 | ||||
Finite-lived intangible assets subject to amortization, net | 295,000,000 | 26,300,000 | 295,000,000 | 26,300,000 | 295,000,000 | 26,300,000 | ||||
Indefinite-lived intangible assets not subject to amortization | 15,200,000 | 15,200,000 | 15,200,000 | 15,200,000 | 15,200,000 | 15,200,000 | ||||
Finite-lived intangible assets | 327,900,000 | 53,800,000 | 327,900,000 | 53,800,000 | 327,900,000 | 53,800,000 | ||||
Accumulated amortization of intangible assets | 32,900,000 | 27,500,000 | 32,900,000 | $ 27,500,000 | 32,900,000 | 27,500,000 | ||||
Amortization of intangible assets | 26,564,000 | 5,697,000 | $ 21,372,000 | |||||||
2023 | 47,000,000 | 47,000,000 | 47,000,000 | |||||||
2024 | 47,000,000 | 47,000,000 | 47,000,000 | |||||||
2025 | 47,000,000 | 47,000,000 | 47,000,000 | |||||||
2026 | 46,000,000 | 46,000,000 | 46,000,000 | |||||||
2027 | 25,000,000 | $ 25,000,000 | $ 25,000,000 | |||||||
Deferred sales commission amortization period US fund (in years) | 1 year | |||||||||
Deferred sales commission amortization period non US funds (in years) | 4 years | |||||||||
Impairment of finite-lived intangible assets | $ 0 | 0 | ||||||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | General and administrative | General and administrative | General and administrative | |||||||
Contingent payment arrangements | 247,309,000 | 38,260,000 | $ 247,309,000 | $ 38,260,000 | 247,309,000 | 38,260,000 | ||||
Impairment of contingent consideration payable | 0 | |||||||||
Assets held for sale | 551,351,000 | 0 | 551,351,000 | 0 | 551,351,000 | 0 | ||||
Liabilities held for sale | $ 107,952,000 | $ 0 | $ 107,952,000 | 0 | $ 107,952,000 | $ 0 | ||||
Period over which receivables from brokers and dealers for sale of shares of company-sponsored mutual funds generally are realized | 3 days | |||||||||
Maximum percentage of award an employee can elect to allocate to deferred cash | 50% | 50% | 50% | |||||||
Maximum amount of deferred cash | $ 250,000 | $ 250,000 | $ 250,000 | |||||||
Granted to employees and Eligible Directors | shares | 3,800,000 | 3,400,000 | 4,700,000 | 7,000,000 | ||||||
Options exercised (in units) | shares | 5,774 | 143,211 | ||||||||
Proceeds from stock options exercised | $ 178,000 | $ 3,402,000 | 147,000 | |||||||
Net foreign currency transaction gains (losses) | $ 10,200,000 | $ 8,500,000 | $ (3,300,000) | |||||||
Cash distributions per unit paid to the General Partner and Unitholders (in dollars per unit) | $ / shares | $ 3.87 | $ 3.86 | $ 3.08 | |||||||
Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash distribution, distribution declared (in dollars per unit) | $ / shares | $ 0.77 | |||||||||
AB Holding | AllianceBernstein Corporation | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of General Partnership interest in company | 1% | |||||||||
Director | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Long-term incentive awards vesting periods | 3 years | |||||||||
Employees based outside of the United States | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum percentage of award an employee can elect to allocate to deferred cash | 100% | 100% | 100% | |||||||
Maximum amount of deferred cash | $ 100,000 | $ 100,000 | $ 100,000 | |||||||
Sanford C Bernstein Inc Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 2,800,000,000 | 2,800,000,000 | 2,800,000,000 | |||||||
Various smaller acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 291,900,000 | 291,900,000 | 291,900,000 | |||||||
Ramius Alternative Solutions LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Impairment of finite-lived intangible assets | 1,000,000 | $ 1,500,000 | ||||||||
Impairment of contingent consideration payable | $ (600,000) | $ (1,400,000) | ||||||||
CarVal | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage | 100% | |||||||||
Equity interest contributed to affiliate | 100% | |||||||||
Goodwill | $ 666,130,000 | $ 666,100,000 | 666,100,000 | $ 666,100,000 | ||||||
Contingent payment arrangements | $ 228,900,000 | |||||||||
Business combination, contingent consideration, performance term | 6 years | |||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | $ 303,000,000 | |||||||||
CPH Capital Fondsmaeglerselskab A/S | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Impairment of finite-lived intangible assets | $ 5,600,000 | |||||||||
Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets acquired, estimated useful life | 5 years | |||||||||
Minimum | Employee | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Long-term incentive awards vesting periods | 3 years | |||||||||
Minimum | CarVal | Investment Management Contracts and Investor Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | |||||||||
Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets acquired, estimated useful life | 20 years | |||||||||
Maximum | Employee | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Long-term incentive awards vesting periods | 4 years | |||||||||
Maximum | CarVal | Investment Management Contracts and Investor Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | |||||||||
Furniture | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life (in years) | 8 years | |||||||||
Equipment | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life (in years) | 3 years | |||||||||
Equipment | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life (in years) | 6 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Repurchase Activity (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Total amount of AB Holding Units Purchased (in units) | 5.2 | 5.6 |
Total Cash Paid for AB Holding Units Purchased | $ 211.8 | $ 262.3 |
Open-market purchases of AB Holding Units Purchased (in units) | 2.3 | 2.6 |
Total Cash Paid for Open Market Purchases of AB Holding Units | $ 92.7 | $ 117.9 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | $ 4,099,287 | $ 4,405,040 | $ 3,688,518 |
Dividend and interest income, net of interest expense | 56,653 | 35,048 | 35,273 |
Investment (losses) | (102,413) | (636) | (16,401) |
Other revenues | 763 | 2,150 | 1,146 |
Revenue not subject to contract with customer | (44,997) | 36,562 | 20,018 |
Net revenues | 4,054,290 | 4,441,602 | 3,708,536 |
Base fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | 2,825,791 | 2,949,405 | 2,462,810 |
Performance-based fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | 145,247 | 245,119 | 132,626 |
Bernstein research services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | 416,273 | 452,017 | 459,744 |
All-in-management fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | 290,740 | 350,674 | 331,268 |
12b-1 fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | 69,041 | 83,920 | 75,973 |
Other distribution fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | 247,414 | 217,646 | 122,540 |
Shareholder servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | 86,661 | 90,225 | 82,317 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue subject to contracts with customers | $ 18,120 | $ 16,034 | $ 21,240 |
Net Income Per Unit (Details)
Net Income Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Percentage of Limited Partners interest in Company | 99% | ||
Net income per unit, basic and diluted [Abstract] | |||
Net income attributable to AB Unitholders | $ 831,813 | $ 1,148,623 | $ 865,952 |
Weighted average units outstanding—basic (in units) | 273,943,000 | 271,729,000 | 269,058,000 |
Dilutive effect of compensatory options to buy AB Holding Units (in units) | 1,000 | 11,000 | 27,000 |
Weighted average units outstanding - diluted (in units) | 273,944,000 | 271,740,000 | 269,085,000 |
Basic net income per AB Unit (in dollars per unit) | $ 3.01 | $ 4.18 | $ 3.19 |
Diluted net income per AB Unit (in dollars per unit) | $ 3.01 | $ 4.18 | $ 3.19 |
Anti-dilutive options excluded from diluted net income (in units) | 0 | 0 | 29,056,000 |
AB Holding | AllianceBernstein Corporation | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Percentage of General Partnership interest in company | 1% |
Cash and Securities Segregate_2
Cash and Securities Segregated Under Federal Regulations and Other Requirements (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Broker-Dealer [Abstract] | ||
United States Treasury Bills in special reserve bank custody account for exclusive benefit of brokerage customers | $ 1.5 | $ 1.5 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 217,518 | $ 273,418 |
Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 309,600 | 379,000 |
Equity securities: | Long-term incentive compensation-related | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 21,055 | 32,237 |
Equity securities: | Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 138,012 | 133,992 |
Equity securities: | Other | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 0 | 18,243 |
Exchange-traded options | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 0 | 1,893 |
Investments in limited partnership hedge funds: | Long-term incentive compensation-related | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 26,815 | 31,602 |
Investments in limited partnership hedge funds: | Seed capital | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 15,711 | 19,318 |
Time deposits | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | 7,750 | 21,024 |
Other | ||
Summary of Investment Holdings [Line Items] | ||
Investments owned | $ 8,175 | $ 15,109 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment Holdings [Line Items] | ||
Long-term incentive compensation-related | $ 47,900 | $ 63,800 |
Investments owned | 217,518 | 273,418 |
Seed capital | ||
Investment Holdings [Line Items] | ||
Investments owned | $ 309,600 | $ 379,000 |
Investments - Unrealized Gains
Investments - Unrealized Gains (Losses) Related to Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net (losses) gains recognized during the period | $ (23,855) | $ 19,240 |
Less: net gains recognized during the period on equity securities sold during the period | 17,960 | 23,697 |
Unrealized losses recognized during the period on equity securities held | $ (41,815) | $ (4,457) |
Derivative Instruments - Notion
Derivative Instruments - Notional Value, Fair Value and Gains and Losses Recognized in Investment Gains (Losses) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Notional Value | $ 510,544 | $ 480,991 |
Derivatives | 24,712 | 15,422 |
Derivatives | 13,712 | 16,923 |
Gains (Losses) | 41,068 | (13,298) |
Exchange-traded futures | ||
Derivative [Line Items] | ||
Notional Value | 154,687 | 131,876 |
Derivatives | 1,768 | 392 |
Derivatives | 162 | 1,186 |
Gains (Losses) | 19,994 | (5,072) |
Currency forwards | ||
Derivative [Line Items] | ||
Notional Value | 34,597 | 66,058 |
Derivatives | 4,446 | 7,344 |
Derivatives | 5,047 | 6,980 |
Gains (Losses) | 1,965 | 1,746 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Value | 16,847 | 13,483 |
Derivatives | 386 | 497 |
Derivatives | 262 | 833 |
Gains (Losses) | 70 | (316) |
Credit default swaps | ||
Derivative [Line Items] | ||
Notional Value | 225,671 | 155,757 |
Derivatives | 17,507 | 6,594 |
Derivatives | 7,302 | 6,967 |
Gains (Losses) | (1,000) | (2,914) |
Total return swaps | ||
Derivative [Line Items] | ||
Notional Value | 50,000 | 63,817 |
Derivatives | 0 | 595 |
Derivatives | 6 | 527 |
Gains (Losses) | 5,211 | (6,433) |
Option swaps | ||
Derivative [Line Items] | ||
Notional Value | 28,742 | 50,000 |
Derivatives | 605 | 0 |
Derivatives | 933 | 430 |
Gains (Losses) | $ 14,828 | $ (309) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Cash collateral received | $ 8,400 | $ 2,900 |
Return of cash collateral into brokerage accounts | 4,200 | 5,600 |
Losses on equity options activity | 22,100 | 0 |
Exchange-traded options | Long exchange-traded options(1) | ||
Derivative [Line Items] | ||
Cash collateral received | 0 | 0 |
Long exchange-trade equity options at fair value | 1,900 | |
Exchange-traded options | Short exchange-traded options(1) | ||
Derivative [Line Items] | ||
Return of cash collateral into brokerage accounts | $ 0 | 0 |
Short exchange-traded equity options at fair value | $ 2,800 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Offsetting Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities Borrowed [Abstract] | ||
Gross Amounts of Recognized Assets | $ 62,063 | $ 19,899 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 62,063 | 19,899 |
Financial Instruments Collateral | (62,058) | (18,327) |
Cash Collateral Received | 0 | 0 |
Net Amount | 5 | 1,572 |
Derivative Asset [Abstract] | ||
Cash Collateral Received | (8,400) | (2,900) |
Derivatives | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 24,712 | 15,422 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 24,712 | 15,422 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | (8,361) | (2,872) |
Net Amount | 16,351 | 12,550 |
Exchange-traded options | Long exchange-traded options(1) | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | 0 | 1,893 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 0 | 1,893 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 0 | $ 1,893 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities Loaned [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 272,580 | $ 23,911 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 272,580 | 23,911 |
Financial Instruments Collateral | (267,053) | (23,373) |
Cash Collateral Pledged | 0 | |
Net Amount | 5,527 | 538 |
Derivative Liability [Abstract] | ||
Cash Collateral Pledged | (4,200) | (5,600) |
Derivatives | ||
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 13,712 | 16,923 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 13,712 | 16,923 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | (4,158) | (5,572) |
Net Amount | 9,554 | 11,351 |
Exchange-traded options | Short exchange-traded options(1) | ||
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 0 | 2,774 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 0 | 2,774 |
Financial Instruments Collateral | 0 | 0 |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 0 | $ 2,774 |
Fair Value - Valuation of Finan
Fair Value - Valuation of Financial Instruments by Pricing Observability Levels (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Brokers and dealers | |
Investments: | ||
Investments, other measurements | $ 51,762 | $ 77,959 |
Securities sold not yet purchased: | ||
Contingent payment arrangements | 247,309 | 38,260 |
Other investments | ||
Investments: | ||
Investments, other measurements | 1,486 | 6,015 |
Time deposits | ||
Investments: | ||
Investments, other measurements | 7,750 | 21,024 |
Hedge funds | ||
Investments: | ||
Investments, other measurements | 42,526 | 50,920 |
Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money markets | 95,521 | 151,156 |
Securities segregated (U.S. Treasury Bills) | 1,521,705 | 1,503,828 |
Derivatives | 24,712 | 15,422 |
Investments: | ||
Total investments measured at fair value and other measurements | 217,518 | 273,418 |
Total assets measured at fair value and other measurements | 1,859,456 | 1,943,824 |
Securities sold not yet purchased: | ||
Short equities – corporate | 1,054 | |
Short exchange-traded options | 2,774 | |
Derivatives | 13,712 | 16,923 |
Contingent payment arrangements | 247,309 | 38,260 |
Total liabilities measured at fair value | 261,021 | 59,011 |
Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money markets | 95,521 | 151,156 |
Securities segregated (U.S. Treasury Bills) | 0 | 0 |
Derivatives | 1,768 | 392 |
Investments: | ||
Total investments | 136,344 | 155,904 |
Total assets measured at fair value | 233,633 | 307,452 |
Securities sold not yet purchased: | ||
Short equities – corporate | 1,054 | |
Short exchange-traded options | 2,774 | |
Derivatives | 162 | 1,186 |
Contingent payment arrangements | 0 | 0 |
Total liabilities measured at fair value | 162 | 5,014 |
Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money markets | 0 | 0 |
Securities segregated (U.S. Treasury Bills) | 1,521,705 | 1,503,828 |
Derivatives | 22,944 | 15,030 |
Investments: | ||
Total investments | 27,799 | 39,284 |
Total assets measured at fair value | 1,572,448 | 1,558,142 |
Securities sold not yet purchased: | ||
Short equities – corporate | 0 | |
Short exchange-traded options | 0 | |
Derivatives | 13,550 | 15,737 |
Contingent payment arrangements | 0 | 0 |
Total liabilities measured at fair value | 13,550 | 15,737 |
Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money markets | 0 | 0 |
Securities segregated (U.S. Treasury Bills) | 0 | 0 |
Derivatives | 0 | 0 |
Investments: | ||
Total investments | 129 | 126 |
Total assets measured at fair value | 129 | 126 |
Securities sold not yet purchased: | ||
Short equities – corporate | 0 | |
Short exchange-traded options | 0 | |
Derivatives | 0 | 0 |
Contingent payment arrangements | 247,309 | 38,260 |
Total liabilities measured at fair value | 247,309 | 38,260 |
Recurring | NAV Expedient | ||
Investments: | ||
Total investments | 1,484 | 145 |
Total assets measured at fair value | 1,484 | 145 |
Recurring | Equity securities | ||
Investments: | ||
Investments | 159,067 | 184,472 |
Recurring | Equity securities | Level 1 | ||
Investments: | ||
Investments | 129,655 | 144,917 |
Recurring | Equity securities | Level 2 | ||
Investments: | ||
Investments | 27,799 | 39,284 |
Recurring | Equity securities | Level 3 | ||
Investments: | ||
Investments | 129 | 126 |
Recurring | Equity securities | NAV Expedient | ||
Investments: | ||
Investments | 1,484 | 145 |
Recurring | Other investments | ||
Investments: | ||
Investments, other measurements | 15,109 | |
Total investments measured at fair value and other measurements | 8,175 | |
Recurring | Other investments | Level 1 | ||
Investments: | ||
Total investments | 6,689 | 9,094 |
Recurring | Other investments | Level 2 | ||
Investments: | ||
Total investments | 0 | 0 |
Recurring | Other investments | Level 3 | ||
Investments: | ||
Total investments | 0 | 0 |
Recurring | Time deposits | ||
Investments: | ||
Investments, other measurements | 7,750 | 21,024 |
Recurring | Hedge funds | ||
Investments: | ||
Investments, other measurements | $ 42,526 | 50,920 |
Recurring | Hedge funds | Level 1 | ||
Investments: | ||
Investments | 0 | |
Recurring | Long exchange-traded options(1) | Exchange-traded options | ||
Investments: | ||
Investments | 1,893 | |
Recurring | Long exchange-traded options(1) | Exchange-traded options | Level 1 | ||
Investments: | ||
Investments | 1,893 | |
Recurring | Long exchange-traded options(1) | Exchange-traded options | Level 2 | ||
Investments: | ||
Investments | 0 | |
Recurring | Long exchange-traded options(1) | Exchange-traded options | Level 3 | ||
Investments: | ||
Investments | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) | 3 Months Ended | |||
Jul. 01, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | $ 51,762,000 | $ 77,959,000 | ||
Fair value, assets, level 2 to level 3 transfers, amount | 0 | 0 | ||
Contingent payment arrangements | $ 247,309,000 | $ 38,260,000 | ||
CarVal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent payment arrangements | $ 228,900,000 | |||
Business combination, contingent consideration arrangements, contingent consideration, liability, value, low | $ 0 | |||
Business combination, contingent consideration arrangements, contingent consideration, liability, value, high | 650,000,000 | |||
Business combination, contingent consideration, performance term | 6 years | |||
CarVal | CarVal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent payment arrangements | $ 228,900,000 | |||
Business combination, contingent consideration, performance term | 6 years | |||
Revenue growth rate | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability, measurement input | 0.039 | 0.020 | 0.020 | |
Revenue growth rate | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability, measurement input | 0.315 | 0.839 | 0.839 | |
Revenue growth rate | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability, measurement input | 0.141 | 0.115 | 0.119 | |
Discount rate | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability, measurement input | 0.041 | 0.019 | 0.019 | |
Discount rate | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability, measurement input | 0.046 | 0.104 | 0.104 | |
Discount rate | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability, measurement input | 0.042 | 0.045 | 0.070 | |
Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | $ 1,486,000 | $ 6,015,000 | ||
Mutual Funds | Level 1 | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments | 6,700,000 | 9,100,000 | ||
Start-up company | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 300,000 | 300,000 | ||
Equity method investee | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | $ 0 | 2,900,000 | ||
Broker dealer exchange memberships | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | $ 1,200,000 | $ 2,800,000 |
Fair Value - Change in Carrying
Fair Value - Change in Carrying Value of Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | $ 126 | $ 125 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Realized gains (losses), net | 0 | 0 |
Unrealized gains (losses), net | 3 | 1 |
Balance as of end of period | $ 129 | $ 126 |
Fair Value - Change in Carryi_2
Fair Value - Change in Carrying Value Associated with Contingent Payment Arrangements Level 3 Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of beginning of period | $ 38,260 | $ 27,750 |
Addition | 231,385 | 7,800 |
Accretion | 6,563 | 3,310 |
Changes in estimates | 0 | (600) |
Held for sale reclassification | (28,899) | 0 |
Balance as of end of period | $ 247,309 | $ 38,260 |
Furniture, Equipment and Leas_3
Furniture, Equipment and Leasehold Improvements, Net - Schedule of Furniture, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Furniture, equipment and leasehold improvements [Abstract] | ||
Furniture, equipment and leasehold improvements, gross | $ 929,549 | $ 885,197 |
Less: Accumulated depreciation and amortization | (740,291) | (716,022) |
Furniture, equipment and leasehold improvements, net | 189,258 | 169,175 |
Furniture and equipment | ||
Furniture, equipment and leasehold improvements [Abstract] | ||
Furniture, equipment and leasehold improvements, gross | 605,567 | 584,161 |
Leasehold improvements | ||
Furniture, equipment and leasehold improvements [Abstract] | ||
Furniture, equipment and leasehold improvements, gross | $ 323,982 | $ 301,036 |
Furniture, Equipment and Leas_4
Furniture, Equipment and Leasehold Improvements, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 39.7 | $ 38.8 | $ 39.2 |
Deferred Sales Commissions, N_3
Deferred Sales Commissions, Net - Components of Deferred Sales Commissions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gross to net deferred sales commissions [Abstract] | |||
Carrying amount of deferred sales commissions | $ 172,181 | $ 177,233 | |
Less: Accumulated amortization | (66,184) | (53,976) | |
Cumulative CDSC received | (53,747) | (48,358) | |
Deferred sales commissions, net | 52,250 | 74,899 | |
Amortization expense | $ 34,762 | $ 34,364 | $ 27,355 |
Deferred Sales Commissions, N_4
Deferred Sales Commissions, Net - Schedule of Future Amortization Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2023 | $ 28,683 |
2024 | 17,848 |
2025 | 5,309 |
2026 | 410 |
Total | $ 52,250 |
Debt (Details)
Debt (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) lineOfCredit financialInstitution | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 01, 2020 USD ($) | |
Short-term Debt [Line Items] | ||||
Proceeds from debt, net | $ 235,000,000 | $ 80,000,000 | $ 115,000,000 | |
Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Credit facility, maximum borrowing capacity | 800,000,000 | |||
Credit facility, possible aggregate incremental limit increase | 200,000,000 | |||
Amounts outstanding under credit facility | 0 | 0 | ||
Proceeds from debt, net | 0 | $ 0 | ||
Credit Facility | SCB LLC | ||||
Short-term Debt [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 315,000,000 | |||
Number of uncommitted lines of credit | lineOfCredit | 5 | |||
Number of financial institutions offering lines of credit | financialInstitution | 5 | |||
Number of financial institutions with stated limits | lineOfCredit | 4 | |||
Commercial Paper | ||||
Short-term Debt [Line Items] | ||||
Weighted average interest rates on average daily borrowings | 1.50% | 0.20% | ||
Short-term debt outstanding | $ 0 | $ 0 | ||
Average daily borrowings | $ 189,900,000 | $ 157,000,000 | ||
Uncommitted Lines of Credit | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility interest rate | 3.70% | 0.90% | ||
Short-term debt outstanding | $ 0 | $ 0 | ||
Average daily borrowings | $ 1,400,000 | $ 47,000 | ||
EQH | ||||
Short-term Debt [Line Items] | ||||
Weighted average interest rates on average daily borrowings | 4.30% | |||
Average daily borrowings | $ 700,000 | |||
Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Credit facility, maximum borrowing capacity | 200,000,000 | |||
Credit Facility | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility interest rate | 1.10% | |||
Average daily borrowings | $ 13,300,000 | |||
EQH | ||||
Short-term Debt [Line Items] | ||||
Amounts outstanding under credit facility | $ 900,000,000 | $ 755,000,000 | ||
Line of credit facility interest rate | 4.30% | 0.20% | ||
Average daily borrowings | $ 655,200,000 | $ 404,600,000 | ||
Weighted average interest rates on average daily borrowings | 1.70% | 0.20% | ||
EQH | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 900,000,000 | |||
EQH Uncommitted Facility | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility interest rate | 4.30% | |||
EQH Uncommitted Facility | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |||
Amounts outstanding under credit facility | $ 90,000,000 | |||
Proceeds from debt, net | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) ft² in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) ft² | |
Lessee, Lease, Description [Line Items] | |
Operating and finance lease, maximum term of extension option | 5 years |
Operating and finance lease, term of termination option | 1 year |
Area of space leased (in square feet) | 1,000 |
New York City | |
Lessee, Lease, Description [Line Items] | |
Area of space leased (in square feet) | 166 |
Operating lease, lease not yet commenced, term of contract | 20 years |
Lease not yet commenced, liability | $ | $ 393 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating and finance lease, remaining contract term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating and finance lease, remaining contract term | 15 years |
Leases - Leases included in the
Leases - Leases included in the Condensed Consolidated Statement of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Right-of-use assets | Right-of-use assets |
Operating lease right-of-use assets | $ 360,092 | $ 414,105 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Lease liabilities | Lease liabilities |
Operating lease liabilities | $ 415,539 | $ 482,781 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Right-of-use assets | Right-of-use assets |
Property and equipment, gross | $ 18,116 | $ 10,947 |
Amortization of right-of-use assets | (6,310) | (3,072) |
Property and equipment, net | $ 11,806 | $ 7,875 |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Lease liabilities | Lease liabilities |
Finance lease liabilities | $ 11,940 | $ 7,954 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 97,198 | $ 97,466 |
Financing lease cost: | ||
Amortization of right-of-use assets | 3,860 | 2,355 |
Interest on lease liabilities | 200 | 107 |
Total finance lease cost | 4,060 | 2,462 |
Variable lease cost | 40,552 | 39,827 |
Sublease income | (34,420) | (37,317) |
Net lease cost | $ 107,390 | $ 102,438 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 97,489 | |
2024 | 104,596 | |
2025 | 37,319 | |
2026 | 35,808 | |
2027 | 32,821 | |
Thereafter | 146,319 | |
Total lease payments | 454,352 | |
Less interest | (38,813) | |
Present value of lease liabilities | 415,539 | $ 482,781 |
Financing Leases | ||
2023 | 4,169 | |
2024 | 3,258 | |
2025 | 2,828 | |
2026 | 1,810 | |
2027 | 324 | |
Thereafter | 0 | |
Total lease payments | 12,389 | |
Less interest | (449) | |
Present value of lease liabilities | 11,940 | $ 7,954 |
Total | ||
2023 | 101,658 | |
2024 | 107,854 | |
2025 | 40,147 | |
2026 | 37,618 | |
2027 | 33,145 | |
Thereafter | 146,319 | |
Total lease payments | $ 466,741 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2022 |
Weighted average remaining lease term (years): | |
Operating leases | 7 years 4 months 6 days |
Finance leases | 3 years 5 months 19 days |
Weighted average discount rate: | |
Operating leases | 2.69% |
Finance leases | 2.10% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating leases | $ 38,875 | $ 82,379 |
Finance leases | $ 7,791 | $ 7,782 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Payments Under Non-Cancelable Leases, Sublease Commitments and Related Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Payments | |
2023 | $ 97,489 |
2024 | 104,596 |
2025 | 37,319 |
2026 | 35,808 |
2027 | 32,821 |
2028 and thereafter | 146,319 |
Total lease payments | 454,352 |
Real Estate | |
Payments | |
2023 | 107,600 |
2024 | 108,900 |
2025 | 58,300 |
2026 | 55,700 |
2027 | 51,300 |
2028 and thereafter | 487,700 |
Total lease payments | 869,500 |
Sublease Receipts | |
2023 | (31,900) |
2024 | (30,900) |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 and thereafter | 0 |
Total future minimum payments | (62,800) |
Net Payments | |
2023 | 75,700 |
2024 | 78,000 |
2025 | 58,300 |
2026 | 55,700 |
2027 | 51,300 |
2028 and thereafter | 487,700 |
Total future minimum payments | $ 806,700 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended | |
Dec. 14, 2022 plaintiff | Dec. 31, 2022 USD ($) | |
Other [Abstract] | ||
Number of participants that filed a class action complaint | plaintiff | 4 | |
Real Estate Fund | ||
Other [Abstract] | ||
Committed total required invest funding | $ 25,000,000 | |
Commitment agreement fundings | 22,400,000 | |
Real Estate Fund II | ||
Other [Abstract] | ||
Committed total required invest funding | 27,300,000 | |
Commitment agreement fundings | $ 21,600,000 |
Consolidated Company-Sponsore_3
Consolidated Company-Sponsored Investment Funds - Summary of Balance Sheet Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | |||
Total assets | $ 11,138,931 | $ 10,510,088 | |
Liabilities | 6,292,635 | 5,927,996 | |
Redeemable non-controlling interest of consolidated entities | 368,656 | 421,169 | |
Partners' capital attributable to AB Unitholders | 4,477,640 | 4,160,923 | $ 4,111,523 |
Total liabilities, non-controlling interest and capital | 11,138,931 | 10,510,088 | |
Consolidated company-sponsored investment funds | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 19,751 | 90,326 | |
Investments | 516,536 | 613,025 | |
Other assets | 44,424 | 30,461 | |
Total assets | 580,711 | 733,812 | |
Liabilities | 55,529 | 87,000 | |
Redeemable non-controlling interest of consolidated entities | 368,656 | 421,169 | |
Partners' capital attributable to AB Unitholders | 156,526 | 225,643 | |
Total liabilities, non-controlling interest and capital | $ 580,711 | $ 733,812 |
Consolidated Company-Sponsore_4
Consolidated Company-Sponsored Investment Funds - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Derivative [Line Items] | |||
Cash collateral payable to trade counterparties | $ 8,400 | $ 2,900 | |
Cash collateral received | 4,200 | 5,600 | |
Net assets | $ 68,900,000 | ||
Maximum risk of loss in investment in VIEs | 5,700 | 8,800 | |
Institutional investment advisory and services fees receivable | $ 127,040 | 185,653 | |
Seed capital | |||
Derivative [Line Items] | |||
Number of deconsolidated funds | investment | 5 | ||
Investment owned at fair value, deconsolidated amount | 61,800 | ||
Variable Interest Entity, Primary Beneficiary | |||
Derivative [Line Items] | |||
Futures, forwards and swaps held | $ 14,000 | 12,500 | |
Gains (losses) on derivatives | (9,400) | (700) | |
Cash collateral payable to trade counterparties | 2,731 | 904 | |
Cash collateral received | 5,400 | $ 1,800 | |
Variable Interest Entity, Not Primary Beneficiary | |||
Derivative [Line Items] | |||
Net assets | 46,400,000 | ||
Institutional investment advisory and services fees receivable | $ 54,200 | $ 75,700 |
Consolidated Company-Sponsore_5
Consolidated Company-Sponsored Investment Funds - Fair Value (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Derivatives | $ 24,712 | $ 15,422 |
Derivatives | 13,712 | 16,923 |
Total liabilities measured at fair value | 261,021 | 59,011 |
Consolidated company-sponsored investment funds | ||
Variable Interest Entity [Line Items] | ||
Investments | 516,536 | 613,025 |
Derivatives | 7,552 | 5,887 |
Total assets measured at fair value | 524,088 | 618,912 |
Derivatives | 21,540 | 18,342 |
Total liabilities measured at fair value | 21,540 | 18,342 |
Level 1 | ||
Variable Interest Entity [Line Items] | ||
Investments | 136,344 | 155,904 |
Derivatives | 1,768 | 392 |
Total assets measured at fair value | 233,633 | 307,452 |
Derivatives | 162 | 1,186 |
Total liabilities measured at fair value | 162 | 5,014 |
Level 1 | Consolidated company-sponsored investment funds | ||
Variable Interest Entity [Line Items] | ||
Investments | 129,706 | 165,415 |
Derivatives | 1,529 | 622 |
Total assets measured at fair value | 131,235 | 166,037 |
Derivatives | 14,932 | 16,291 |
Total liabilities measured at fair value | 14,932 | 16,291 |
Level 2 | ||
Variable Interest Entity [Line Items] | ||
Investments | 27,799 | 39,284 |
Derivatives | 22,944 | 15,030 |
Total assets measured at fair value | 1,572,448 | 1,558,142 |
Derivatives | 13,550 | 15,737 |
Total liabilities measured at fair value | 13,550 | 15,737 |
Level 2 | Consolidated company-sponsored investment funds | ||
Variable Interest Entity [Line Items] | ||
Investments | 386,830 | 444,253 |
Derivatives | 6,023 | 5,265 |
Total assets measured at fair value | 392,853 | 449,518 |
Derivatives | 6,608 | 2,051 |
Total liabilities measured at fair value | 6,608 | 2,051 |
Level 3 | ||
Variable Interest Entity [Line Items] | ||
Investments | 129 | 126 |
Derivatives | 0 | 0 |
Total assets measured at fair value | 129 | 126 |
Derivatives | 0 | 0 |
Total liabilities measured at fair value | 247,309 | 38,260 |
Level 3 | Consolidated company-sponsored investment funds | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | 3,357 |
Derivatives | 0 | 0 |
Total assets measured at fair value | 0 | 3,357 |
Derivatives | 0 | 0 |
Total liabilities measured at fair value | $ 0 | $ 0 |
Consolidated Company-Sponsore_6
Consolidated Company-Sponsored Investment Funds - Change in Carrying Value Associated with Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | $ 126 | $ 125 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Realized gains, net | $ 0 | $ 0 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax | Other Comprehensive Income (Loss), Net of Tax |
Unrealized (losses), net | $ 3 | $ 1 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax | Other Comprehensive Income (Loss), Net of Tax |
Balance as of end of period | $ 129 | $ 126 |
Consolidated company-sponsored investment funds | ||
Fair value measurement Level 3 reconciliation [Abstract] | ||
Balance as of beginning of period | 3,357 | 619 |
Deconsolidated funds | (3,351) | (717) |
Transfers (out) | (6) | (205) |
Purchases | 248 | 3,675 |
Sales | (248) | (7) |
Realized gains, net | 0 | 3 |
Unrealized (losses), net | 0 | (11) |
Balance as of end of period | $ 0 | $ 3,357 |
Consolidated Company-Sponsore_7
Consolidated Company-Sponsored Investment Funds - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Asset [Abstract] | ||
Cash Collateral Received | $ (8,400) | $ (2,900) |
Derivative Liability [Abstract] | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Broker-Dealer, Payable to Other Broker-Dealer and Clearing Organization | Broker-Dealer, Payable to Other Broker-Dealer and Clearing Organization |
Variable Interest Entity, Primary Beneficiary | ||
Derivative Asset [Abstract] | ||
Gross Amounts of Recognized Assets | $ 7,552 | $ 5,887 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statement of Financial Condition | 7,552 | 5,887 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | (2,731) | (904) |
Net Amount | 4,821 | 4,983 |
Derivative Liability [Abstract] | ||
Gross Amounts of Recognized Liabilities | 21,540 | 18,342 |
Gross Amounts Offset in the Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 21,540 | 18,342 |
Financial Instruments | 0 | 0 |
Cash Collateral Pledged | (5,444) | (1,824) |
Net Amount | $ 16,096 | $ 16,518 |
Net Capital (Details)
Net Capital (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Stanford C. Bernstein & Co.,LLC | |
Schedule Of Regulatory Capital Agencies And Requirements [Line Items] | |
Minimum net capital required per stock exchange and SEC rules | $ 1 |
Alternative method of calculating aggregate debit items arising from customer transactions permitted by rule, percent | 2% |
Alternative excess net capital | $ 284.9 |
Alternative net capital requirement | 38.2 |
Stanford C. Bernstein & Co.,LLC | US SEC | |
Schedule Of Regulatory Capital Agencies And Requirements [Line Items] | |
Net capital | 323.1 |
Stanford C. Bernstein Limited | |
Schedule Of Regulatory Capital Agencies And Requirements [Line Items] | |
Net capital | 51 |
Minimum financial resources/net capital required | 45.4 |
Actual net capital in excess of the minimum net capital required | 5.6 |
AB Investments | US SEC | |
Schedule Of Regulatory Capital Agencies And Requirements [Line Items] | |
Net capital | 53.5 |
Minimum financial resources/net capital required | 0.3 |
Actual net capital in excess of the minimum net capital required | $ 53.2 |
Qualified Employee Benefit Pl_3
Qualified Employee Benefit Plans - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) investment | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to qualified profit sharing plan | $ 17,500,000 | $ 16,500,000 | $ 15,600,000 |
Defined contribution expense for foreign entities | $ 10,200,000 | $ 9,800,000 | 8,400,000 |
Loss to be amortized over next fiscal year | (1,400,000) | ||
Liability Hedging Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 24% | ||
Retirement plan, number of investments | investment | 2 | ||
Return Seeking Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 27% | ||
Risk Mitigating Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 10% | ||
Diversifying Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 21% | ||
Dynamic Asset Allocation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 18% | ||
Equity mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement plan, number of investments | investment | 6 | ||
Equity Income Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement plan, number of investments | investment | 1 | ||
Minimum | Liability Hedging Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 10% | ||
Minimum | Return Seeking Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 15% | ||
Minimum | Risk Mitigating Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 5% | ||
Minimum | Diversifying Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 10% | ||
Minimum | Dynamic Asset Allocation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 5% | ||
Maximum | Liability Hedging Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 35% | ||
Maximum | Return Seeking Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 40% | ||
Maximum | Risk Mitigating Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 35% | ||
Maximum | Diversifying Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 35% | ||
Maximum | Dynamic Asset Allocation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations, percent | 35% | ||
Fixed Income Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement plan, number of investments | investment | 1 | 2 | |
Fixed Income Mutual Funds | Non-U.S. Based Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement plan, number of investments | investment | 1 | ||
Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | $ 0 | $ 0 | |
Other comprehensive (gain) loss | (6,500,000) | 15,800,000 | (4,300,000) |
Earnings of plan assets exceeding expectations | 34,000,000 | 8,200,000 | 10,400,000 |
Discount rate and lump sum interest rates | 38,700,000 | (5,600,000) | 16,700,000 |
Settlement loss recognized | (1,678,000) | (2,024,000) | 0 |
Mortality assumption | $ 400,000 | 200,000 | (1,000,000) |
Defined benefit plan, amortization period | 27 years 10 months 24 days | ||
Loss to be amortized over next fiscal year | $ (1,000,000) | 1,500,000 | |
Changes in census data | 500,000 | 1,000,000 | $ 400,000 |
Future amortization of prior service cost | 24,000 | ||
Accumulated benefit obligation | $ 100,500,000 | $ 141,900,000 | |
Assumptions used calculating benefit obligation, discount rate, percent | 5.50% | 2.90% | |
Expected long-term rate of return on plan assets | 5.25% | 5.25% | 5.50% |
Qualified Employee Benefit Pl_4
Qualified Employee Benefit Plans - The Retirement Plan's Projected Benefit Obligation, Fair Value of Plan Assets and Funded Status (Details) - Retirement Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | $ 141,862,000 | $ 151,124,000 | |
Interest cost | 3,958,000 | 3,794,000 | $ 4,443,000 |
Plan settlements | (4,524,000) | (5,803,000) | |
Actuarial (gain) | (37,839,000) | (4,447,000) | |
Benefits paid | (2,977,000) | (2,806,000) | |
Projected benefit obligation at end of year | 100,480,000 | 141,862,000 | 151,124,000 |
Change in plan assets: | |||
Plan assets at fair value at beginning of year | 130,939,000 | 125,022,000 | |
Actual return on plan assets | (27,448,000) | 14,526,000 | |
Employer contribution | 0 | 0 | |
Plan settlements | (4,524,000) | (5,803,000) | |
Benefits paid | (2,977,000) | (2,806,000) | |
Plan assets at fair value at end of year | 95,990,000 | 130,939,000 | $ 125,022,000 |
Funded status | $ (4,490,000) | $ (10,923,000) |
Qualified Employee Benefit Pl_5
Qualified Employee Benefit Plans - Amounts Recognized in Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Changes in employee benefit related items | $ 6,946 | $ 15,767 | $ (4,256) |
Income tax (expense) | (95) | (59) | (187) |
Employee benefit related items, net of tax | 6,851 | 15,708 | (4,443) |
Retirement Plan | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Unrecognized net gain (loss) from experience different from that assumed and effects of changes and assumptions | 6,519 | 15,858 | (4,089) |
Prior service cost | 24 | 24 | 24 |
Changes in employee benefit related items | 6,543 | 15,882 | (4,065) |
Income tax (expense) | (33) | (87) | (216) |
Employee benefit related items, net of tax | $ 6,510 | $ 15,795 | $ (4,281) |
Qualified Employee Benefit Pl_6
Qualified Employee Benefit Plans - Reconciliation of Amounts Recognized in Other Comprehensive Income for the Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Recognized actuarial gain (loss) | $ 6,922 | ||
Amortization of prior service cost | 24 | ||
Changes in employee benefit related items | 6,946 | $ 15,767 | $ (4,256) |
Income tax (expense) | (95) | (59) | (187) |
Employee benefit related items, net of tax | 6,851 | 15,708 | (4,443) |
Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Recognized actuarial gain (loss) | 6,519 | ||
Amortization of prior service cost | 24 | ||
Changes in employee benefit related items | 6,543 | 15,882 | (4,065) |
Income tax (expense) | (33) | (87) | (216) |
Employee benefit related items, net of tax | 6,510 | $ 15,795 | $ (4,281) |
Retired Individual Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Recognized actuarial gain (loss) | 107 | ||
Amortization of prior service cost | 0 | ||
Changes in employee benefit related items | 107 | ||
Income tax (expense) | 0 | ||
Employee benefit related items, net of tax | 107 | ||
Foreign Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Recognized actuarial gain (loss) | 296 | ||
Amortization of prior service cost | 0 | ||
Changes in employee benefit related items | 296 | ||
Income tax (expense) | (62) | ||
Employee benefit related items, net of tax | $ 234 |
Qualified Employee Benefit Pl_7
Qualified Employee Benefit Plans - Amounts Included in Accumulated Other Comprehensive Income (Loss) (Details) - Retirement Plan - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net loss from experience different from that assumed and effects of changes and assumptions | $ (37,249) | $ (43,768) |
Prior service cost | (659) | (683) |
Pension and other postretirement benefit plans, accumulated other comprehensive loss, before tax | (37,908) | (44,451) |
Income tax benefit | 177 | 210 |
Accumulated other comprehensive loss | $ (37,731) | $ (44,241) |
Qualified Employee Benefit Pl_8
Qualified Employee Benefit Plans - Future Benefit Payments to be Paid (Details) - Retirement Plan $ in Thousands | Dec. 31, 2022 USD ($) |
Expected future benefit payments [Abstract] | |
2023 | $ 10,121 |
2024 | 6,767 |
2025 | 8,058 |
2026 | 7,865 |
2027 | 8,743 |
2028 - 2032 | $ 38,404 |
Qualified Employee Benefit Pl_9
Qualified Employee Benefit Plans - Net (Benefit) Expense Under the Retirement Plan (Details) - Retirement Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost on projected benefit obligations | $ 3,958 | $ 3,794 | $ 4,443 |
Expected return on plan assets | (6,591) | (6,351) | (6,084) |
Amortization of prior service cost | 24 | 24 | 24 |
Settlement loss recognized | 1,678 | 2,024 | 0 |
Recognized actuarial loss | 1,042 | 1,447 | 1,386 |
Net pension expense | $ 111 | $ 938 | $ (231) |
Qualified Employee Benefit P_10
Qualified Employee Benefit Plans - Actuarial Computations Used to Determine Net Periodic Costs (Details) - Retirement Plan | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assumptions used to determine net periodic benefit costs [Abstract] | |||
Discount rate on benefit obligations | 2.90% | 2.55% | 3.35% |
Expected long-term rate of return on plan assets | 5.25% | 5.25% | 5.50% |
Qualified Employee Benefit P_11
Qualified Employee Benefit Plans - The Retirement Plan's Asset Allocation Percentages (Details) - Retirement Plan | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations, percent | 100% | 100% |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations, percent | 46% | 52% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations, percent | 42% | 38% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations, percent | 12% | 10% |
Qualified Employee Benefit P_12
Qualified Employee Benefit Plans - Valuation of our Retirement Plan Assets by Pricing Observability Levels (Details) - Retirement Plan - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | $ 95,990 | $ 130,939 | $ 125,022 |
Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 78,923 | 108,466 | |
Level 1 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 40,592 | 76,111 | |
Level 2 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 38,331 | 32,355 | |
Level 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
NAV Expedient | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 17,067 | 22,473 | |
Cash | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 1,441 | 47 | |
Cash | Level 1 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 1,441 | 47 | |
Cash | Level 2 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
Cash | Level 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
U.S. Treasury Strips | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 15,634 | 32,355 | |
U.S. Treasury Strips | Level 1 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
U.S. Treasury Strips | Level 2 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 15,634 | 32,355 | |
U.S. Treasury Strips | Level 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
Fixed income mutual funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 2,149 | 17,477 | |
Fixed income mutual funds | Level 1 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 2,149 | 17,477 | |
Fixed income mutual funds | Level 2 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
Fixed income mutual funds | Level 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
Fixed income securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 22,478 | ||
Fixed income securities | Level 1 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | ||
Fixed income securities | Level 2 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 22,478 | ||
Fixed income securities | Level 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | ||
Equity mutual funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 26,074 | 43,786 | |
Equity mutual funds | Level 1 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 26,074 | 43,786 | |
Equity mutual funds | Level 2 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
Equity mutual funds | Level 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 0 | 0 | |
Equity securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 11,147 | 14,801 | |
Equity securities | Level 1 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 10,928 | 14,801 | |
Equity securities | Level 2 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | 219 | 0 | |
Equity securities | Level 3 | |||
Defined Benefit Plan, Assets [Abstract] | |||
Total assets measured at fair value | $ 0 | $ 0 |
Long-term Incentive Compensat_3
Long-term Incentive Compensation Plans - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation costs not yet recognized | $ 0 | |||||
Incentive Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate value awards under combined incentive plans | 164,300,000 | $ 184,100,000 | $ 177,400,000 | |||
Long-term incentive compensation charge | 160,100,000 | $ 173,400,000 | 176,800,000 | |||
Unrecognized compensation cost | $ 114,000,000 | |||||
Period of recognition (in years) | 6 years 1 month 6 days | |||||
2017 Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of awards authorized for issuance (in units) | 60,000,000 | |||||
Number of newly-issued units (in units) | 30,000,000 | |||||
Shares outstanding (in units) | 0 | |||||
Granted (in units) | 0 | |||||
Granted AB holding unit net of forfeitures (in units) | 28,109,084 | 29,795,964 | 28,109,084 | |||
AB Holding units available for future grant (in units) | 31,890,916 | 30,204,036 | 31,890,916 | |||
Employee Stock Option | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, First Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 20% | |||||
Employee Stock Option | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, Second Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 20% | |||||
Employee Stock Option | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, Third Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 20% | |||||
Employee Stock Option | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, Fourth Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 20% | |||||
Employee Stock Option | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, Fifth Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 20% | |||||
Stock Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive compensation charge | $ 0 | $ 0 | 0 | |||
Stock Compensation Plan | Director | 33.3% of Options and 25% of Restricted AB Holding Units, First Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 33.30% | |||||
Stock Compensation Plan | Director | 33.3% of Options and 25% of Restricted AB Holding Units, Second Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 33.30% | |||||
Stock Compensation Plan | Director | 33.3% of Options and 25% of Restricted AB Holding Units, Third Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 33.30% | |||||
Option Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares outstanding (in units) | 5,774 | 0 | 5,774 | |||
Granted (in units) | 0 | |||||
Total intrinsic value of options exercised | $ 200,000 | $ 2,200,000 | 32,368 | |||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in units) | 4,709,600 | |||||
Weighted average grant date fair value (in dollars per unit) | $ 40.31 | |||||
Grant date fair value of vested shares | $ 246,200,000 | $ 199,000,000 | $ 155,000,000 | |||
Number of unvested restricted AB Holding Units (in units) | 18,130,740 | 14,772,236 | 18,130,740 | |||
Number of restricted AB Units without a service requirement (in units) | 10,148,408 | |||||
Number of restricted AB Units with a service requirement (in units) | 4,623,828 | |||||
Restricted Stock Units (RSUs) | Incentive Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in units) | 3,800,000 | 3,300,000 | 5,000,000 | 4,200,000 | 3,500,000 | 5,300,000 |
Additional AB restricted units granted (in units) | 200,000 | 400,000 | 300,000 | |||
Restricted Stock Units (RSUs) | Employment and Separation Agreements | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive compensation charge | $ 35,000,000 | $ 40,900,000 | $ 32,100,000 | |||
Granted (in units) | 500,000 | 3,400,000 | 400,000 | |||
Restricted Stock Units (RSUs) | Minimum | Incentive Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per unit) | $ 38.84 | $ 32.10 | $ 28.75 | |||
Restricted Stock Units (RSUs) | Minimum | Employment and Separation Agreements | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive awards vesting periods | 2 years | |||||
Weighted average grant date fair value (in dollars per unit) | $ 34.86 | 29.06 | 18.80 | |||
Restricted Stock Units (RSUs) | Maximum | Incentive Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per unit) | $ 50.94 | 50.94 | 32.10 | |||
Restricted Stock Units (RSUs) | Maximum | Employment and Separation Agreements | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive awards vesting periods | 10 years | |||||
Weighted average grant date fair value (in dollars per unit) | $ 49.90 | $ 53.86 | $ 35.42 | |||
Restricted Stock Units (RSUs) | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, First Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 33.30% | 25% | ||||
Long-term incentive awards vesting periods | 4 years | |||||
Restricted Stock Units (RSUs) | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, Second Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 33.30% | 25% | ||||
Restricted Stock Units (RSUs) | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, Third Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 33.30% | 25% | ||||
Restricted Stock Units (RSUs) | Employee | 33.3% of Options and 25% of Restricted AB Holding Units, Fourth Anniversary Vesting Period | Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual vesting percentage for the term of award | 25% | |||||
Restricted Stock Units (RSUs) | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive compensation charge | $ 1,200,000 | $ 1,600,000 | $ 1,200,000 | |||
Granted (in units) | 30,870 | 35,358 | 50,232 | |||
Weighted average grant date fair value (in dollars per unit) | $ 38.55 | $ 44.29 | $ 23.69 | |||
Restricted Stock Units (RSUs) | President and CEO | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive compensation charge | $ 300,000 | $ 900,000 | $ 900,000 | |||
Restricted Stock Units (RSUs) | 2017 Grant 1 | Director | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive awards vesting periods | 3 years | |||||
Restricted Stock Units (RSUs) | 2017 Grant 1 | Director | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive awards vesting periods | 4 years |
Long-Term Incentive Compensat_4
Long-Term Incentive Compensation Plans - Option Plan Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Options to Buy AB Holding Units | ||
Exercised (in units) | (5,774) | (143,211) |
Option Awards | ||
Options to Buy AB Holding Units | ||
Beginning balance (in units) | 5,774 | |
Granted (in units) | 0 | |
Exercised (in units) | (5,774) | |
Forfeited (in units) | 0 | |
Expired (in units) | 0 | |
Ending balance (in units) | 0 | 5,774 |
Exercisable (in units) | 0 | |
Vested or expected to vest (in units) | 0 | |
Weighted Average Exercise Price Per Option | ||
Beginning balance (in dollars per unit) | $ 20.12 | |
Granted, Weighted Average Exercise Price Per Option (in dollars per unit) | 0 | |
Exercised, Weighted Average Exercise Price Per Option (in dollars per unit) | 20.12 | |
Forfeited, Weighted Average Exercise Price Per Option (in dollars per unit) | 0 | |
Expired, Weighted Average Exercise Price Per Option (in dollars per unit) | 0 | |
Ending balance (in dollars per unit) | 0 | $ 20.12 |
Exercisable, Weighted Average Exercise Price Per Option (in dollars per unit) | 0 | |
Vested or expected to vest, Weighted Average Exercise Price Per Option (in dollars per unit) | $ 0 | |
Weighted Average Remaining Contractual Term (Years) | ||
Outstanding, Weighted Average Remaining Contractual Term | 0 years | 3 months 29 days |
Exercisable, Weighted Average Remaining Contractual Term | 0 years | |
Vested or expected to vest, Weighted Average Remaining Contractual Term | 0 years | |
Outstanding, Aggregate Intrinsic Value | $ 0 | |
Exercisable, Aggregate Intrinsic Value | 0 | |
Vested or expected to vest, Aggregate Intrinsic Value | $ 0 |
Long-Term Incentive Compensat_5
Long-Term Incentive Compensation Plans - Schedule of Grant Details of Restricted AB Holding Units (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in units) | 4,709,600 | ||
Weighted average grant date fair value (in dollars per unit) | $ 40.31 | ||
Employment and Separation Agreements | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in units) | 500,000 | 3,400,000 | 400,000 |
Compensation Expense | $ 35 | $ 40.9 | $ 32.1 |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in units) | 30,870 | 35,358 | 50,232 |
Weighted average grant date fair value (in dollars per unit) | $ 38.55 | $ 44.29 | $ 23.69 |
Compensation Expense | $ 1.2 | $ 1.6 | $ 1.2 |
Minimum | Employment and Separation Agreements | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per unit) | $ 34.86 | $ 29.06 | $ 18.80 |
Maximum | Employment and Separation Agreements | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per unit) | $ 49.90 | $ 53.86 | $ 35.42 |
Long-Term Incentive Compensat_6
Long-Term Incentive Compensation Plans - Summary of Changes in Unvested Restricted AB Holding Units (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
AB Holding Units | |
Unvested, beginning balance (in units) | shares | 18,130,740 |
Granted (in units) | shares | 4,709,600 |
Vested (in units) | shares | (7,671,109) |
Forfeited (in units) | shares | (396,995) |
Unvested, ending balance (in units) | shares | 14,772,236 |
Weighted Average Grant Date Fair Value per AB Holding Unit | |
Unvested, Beginning Weighted Average Grant Date Fair Value per AB Holding Unit (in dollars per unit) | $ / shares | $ 33.98 |
Granted, Weighted Average Grant Date Fair Value per AB Holding Unit (in dollars per unit) | $ / shares | 40.31 |
Vested, Weighted Average Grant Date Fair Value per AB Holding Unit (in dollars per unit) | $ / shares | 32.10 |
Forfeited, Weighted Average Grant Date Fair Value per AB Holding Unit (in dollars per unit) | $ / shares | 36.15 |
Unvested, Ending Weighted Average Grant Date Fair Value per AB Holding Unit (in dollars per unit) | $ / shares | $ 36.92 |
Units Outstanding (Details)
Units Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Limited Partnership Units Outstanding | ||
Outstanding, beginning balance (in units) | 271,453,043 | 270,509,658 |
Options exercised (in units) | 5,774 | 143,211 |
Units issued (in units) | 17,326,222 | 3,917,437 |
Units retired (in units) | (2,805,126) | (3,117,263) |
Outstanding, ending balance (in units) | 285,979,913 | 271,453,043 |
AB Units | ||
Changes in Limited Partnership Units Outstanding | ||
Units retired (in units) | (2,500) | (5,400) |
CarVal | ||
Changes in Limited Partnership Units Outstanding | ||
Stock issued during period, acquisitions (in shares) | 15,321,535 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | ||||
New York City unincorporated business tax rate | 4% | |||
UBT statutory rate | 4% | 4% | 4% | |
Interest expense (credit) recorded in income tax expense | $ 0 | $ 0 | $ (400,000) | |
Accrued interest payable recorded on the consolidated statements of financial condition | 0 | 0 | ||
Accrued penalties recorded on the consolidated statements of financial condition | $ 0 | 0 | 0 | |
Minimum years that remain open and may be subject to examination vary under local law | 1 year | |||
Maximum years that remain open and may be subject to examination vary under local law | 7 years | |||
Unrecognized Tax Benefits | $ 2,838,000 | 2,838,000 | $ 2,838,000 | $ 5,706,000 |
Valuation allowance | 38,110,000 | 3,828,000 | ||
Undistributed earnings of non-U.S. corporate subsidiaries | 29,600,000 | |||
Foreign Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Valuation allowance | 38,100,000 | 3,800,000 | ||
NOL carryforwards | 30,300,000 | $ 55,100,000 | ||
Pro forma | ||||
Income Tax Examination [Line Items] | ||||
Repatriation of foreign earnings | $ 6,200,000 |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Taxes and Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings before income taxes: | |||
United States | $ 689,278 | $ 1,007,847 | $ 743,687 |
Foreign | 125,818 | 208,615 | 163,749 |
Operating income | 815,096 | 1,216,462 | 907,436 |
Income tax expense: | |||
Partnership UBT | 5,996 | 6,951 | 3,356 |
Corporate subsidiaries: | |||
Federal | 1,457 | 750 | 1,495 |
State and local | 931 | 956 | 904 |
Foreign | 34,327 | 58,080 | 44,086 |
Current tax expense | 42,711 | 66,737 | 49,841 |
Deferred tax | (3,072) | (4,009) | (4,188) |
Income tax expense | $ 39,639 | $ 62,728 | $ 45,653 |
Income Taxes - Principal Reason
Income Taxes - Principal Reasons for the Difference Between the Effective Tax Rate and UBT Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
UBT statutory rate | $ 32,604 | $ 48,659 | $ 36,297 |
Corporate subsidiaries' federal, state, and local | 1,460 | 1,322 | 2,025 |
Foreign subsidiaries taxed at different rates | 32,664 | 43,019 | 33,969 |
FIN 48 reserve (release) | 0 | 0 | (1,886) |
UBT business allocation percentage rate change | (98) | 23 | 8 |
Deferred tax and payable write-offs | 1,089 | 1,003 | (887) |
Foreign outside basis difference | (1,535) | 1,492 | 3 |
Amended 2017 return | 0 | 0 | (221) |
Effect of ASC 740 adjustments, miscellaneous taxes, and other | 5,366 | 1,799 | 2,654 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | (5,275) | 0 | 0 |
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge | (26,636) | (34,589) | (26,309) |
Income tax expense | $ 39,639 | $ 62,728 | $ 45,653 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
UBT statutory rate, percent | 4% | 4% | 4% |
Corporate subsidiaries' federal, state, and local, percent | 0.20% | 0.20% | 0.20% |
Foreign subsidiaries taxed at different rates, percent | 4% | 3.50% | 3.70% |
FIN 48 release, percent | 0% | 0% | (0.20%) |
UBT Bap Rate Change, percent | 0% | 0% | 0% |
Deferred tax and payable write-offs, percent | 0.10% | 0.10% | (0.10%) |
Foreign outside basis difference, percent | (0.20%) | 0.10% | 0% |
Amended 2017 return, percent | 0% | 0% | 0% |
Effect of ASC 740 adjustments, miscellaneous taxes, and other, percent | 0.70% | 0.10% | 0.30% |
Tax Credits, Percent | (0.60%) | 0% | 0% |
Income not taxable resulting from use of UBT business apportionment factors and effect of compensation charge, percent | (3.30%) | (2.80%) | (2.90%) |
Effective tax rate, percent | 4.90% | 5.20% | 5% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of beginning of period | $ 2,838 | $ 2,838 | $ 5,706 |
Additions for prior year tax positions | 0 | 0 | 0 |
Reductions for prior year tax positions | 0 | 0 | 0 |
Additions for current year tax positions | 0 | 0 | 0 |
Reductions for current year tax positions | 0 | 0 | 0 |
Reductions related to closed years/settlements with tax authorities | 0 | 0 | (2,868) |
Balance as of end of period | $ 2,838 | $ 2,838 | $ 2,838 |
Income Taxes - Tax Effect of Si
Income Taxes - Tax Effect of Significant Items Comprising the Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax asset: | ||
Benefits from net operating loss carryforwards | $ 4,918 | $ 7,833 |
Long-term incentive compensation plans | 17,524 | 24,468 |
Investment basis differences | 10,286 | 5,523 |
Depreciation and amortization | 3,071 | 3,942 |
Lease liability | 4,911 | 5,327 |
Investment in foreign subsidiaries | 26,479 | 0 |
Tax credit carryforward | 6,171 | 0 |
Other, primarily accrued expenses deductible when paid | 6,860 | 4,917 |
Deferred tax assets, gross | 80,220 | 52,010 |
Less: valuation allowance | (38,110) | (3,828) |
Deferred tax asset | 42,110 | 48,182 |
Deferred tax liability: | ||
Intangible assets | 10,190 | 7,622 |
Investment in foreign subsidiaries | 0 | 4,084 |
Right-of-use asset | 4,191 | 4,490 |
Other | 2,808 | 2,075 |
Deferred tax liability | 17,189 | 18,271 |
Net deferred tax asset | $ 24,921 | $ 29,911 |
Business Segment Information -
Business Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Business Segment Information _2
Business Segment Information - Net Revenues Derived From Investment Management, Research and Related Services (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | $ 4,120,728 | $ 4,445,288 | $ 3,724,186 |
Less: Interest expense | 66,438 | 3,686 | 15,650 |
Net revenues | 4,054,290 | 4,441,602 | 3,708,536 |
Institutions | |||
Revenues: | |||
Total revenues | 659,983 | 587,017 | 512,914 |
Retail | |||
Revenues: | |||
Total revenues | 2,000,908 | 2,223,829 | 1,811,948 |
Private Wealth Management | |||
Revenues: | |||
Total revenues | 1,004,003 | 1,126,142 | 882,672 |
Bernstein Research Services | |||
Revenues: | |||
Total revenues | 416,273 | 452,017 | 459,744 |
Other | |||
Revenues: | |||
Total revenues | $ 39,561 | $ 56,283 | $ 56,908 |
Business Segment Information _3
Business Segment Information - Net Revenues and Long-Lived Assets, Related To Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Geographic Information [Abstract] | |||
Net revenues | $ 4,054,290 | $ 4,441,602 | $ 3,708,536 |
Long-lived assets: | 4,140,457 | 3,377,368 | |
United States | |||
Geographic Information [Abstract] | |||
Net revenues | 2,381,958 | 2,558,592 | 2,106,636 |
Long-lived assets: | 4,067,991 | 3,331,572 | |
International | |||
Geographic Information [Abstract] | |||
Net revenues | 1,672,332 | 1,883,010 | $ 1,601,900 |
Long-lived assets: | $ 72,466 | $ 45,796 |
Related Party Transactions - Re
Related Party Transactions - Revenues for Services Provided (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Other revenues | $ 105,544 | $ 108,409 | $ 104,703 |
Mutual Funds | |||
Related Party Transaction [Line Items] | |||
Revenue subject to contracts with customers | 2,130,998 | 2,375,944 | 1,972,531 |
Other revenues | 8,366 | 8,364 | 8,314 |
Investment advisory and services fees | |||
Related Party Transaction [Line Items] | |||
Revenue subject to contracts with customers | 2,971,038 | 3,194,524 | 2,595,436 |
Investment advisory and services fees | Mutual Funds | |||
Related Party Transaction [Line Items] | |||
Revenue subject to contracts with customers | 1,452,885 | 1,644,757 | 1,368,484 |
Distribution revenues | Mutual Funds | |||
Related Party Transaction [Line Items] | |||
Revenue subject to contracts with customers | 590,580 | 637,076 | 516,336 |
Shareholder servicing fees | Mutual Funds | |||
Related Party Transaction [Line Items] | |||
Revenue subject to contracts with customers | 79,167 | 85,745 | 79,394 |
Bernstein research services | |||
Related Party Transaction [Line Items] | |||
Revenue subject to contracts with customers | 416,273 | 452,017 | 459,744 |
Bernstein research services | Mutual Funds | |||
Related Party Transaction [Line Items] | |||
Revenue subject to contracts with customers | $ 0 | $ 2 | $ 3 |
Related Party Transactions - Su
Related Party Transactions - Summary of Revenues, Expenses and Balance Sheet Items for EQH and Subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Other revenues | $ 105,544 | $ 108,409 | $ 104,703 |
Total revenues | 4,120,728 | 4,445,288 | 3,724,186 |
Expenses: | |||
General and administrative | 641,635 | 555,608 | 491,070 |
Other | 215,556 | 197,486 | 189,787 |
Total expenses | 3,239,194 | 3,225,140 | 2,801,100 |
Balance Sheet: | |||
Institutional investment advisory and services fees receivable | 127,040 | 185,653 | |
EQH | |||
Revenues: | |||
Other revenues | 688 | 675 | 1,330 |
Total revenues | 149,065 | 133,749 | 117,231 |
Expenses: | |||
General and administrative | 2,882 | 2,373 | 2,281 |
Other | 14,069 | 3,953 | 5,463 |
Total expenses | 20,848 | 10,876 | 11,696 |
Balance Sheet: | |||
Institutional investment advisory and services fees receivable | 7,732 | 8,607 | |
Prepaid expenses | 385 | 545 | |
Other due to EQH and its subsidiaries | (4,206) | (1,534) | |
EQH Facility | (990,000) | (755,000) | |
Total | (986,089) | (747,382) | |
Investment advisory and services fees | |||
Revenues: | |||
Revenue subject to contracts with customers | 2,971,038 | 3,194,524 | 2,595,436 |
Investment advisory and services fees | EQH | |||
Revenues: | |||
Revenue subject to contracts with customers | 148,377 | 133,074 | 115,901 |
Distribution related | |||
Revenues: | |||
Revenue subject to contracts with customers | 607,195 | 652,240 | 529,781 |
Expenses: | |||
Commissions and distribution payments to financial intermediaries | 629,572 | 708,117 | 569,283 |
Distribution related | EQH | |||
Expenses: | |||
Commissions and distribution payments to financial intermediaries | $ 3,897 | $ 4,550 | $ 3,952 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Net receivable balance | $ 7.7 | $ 11.2 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 4 Months Ended | 12 Months Ended | ||||||
Nov. 22, 2022 | Nov. 01, 2022 | Jul. 01, 2022 | Nov. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||||||
Payables recorded under contingent payment arrangements | $ 247,309 | $ 38,260 | ||||||
Cash acquired from acquisition | 40,800 | 2,800 | $ 600 | |||||
Business combination, deferred tax assets | $ 5,073 | |||||||
Goodwill | 3,598,591 | $ 3,091,763 | ||||||
Interest in the joint venture, with an option | 100% | |||||||
Option to acquire controlling interest in joint venture, term | 5 years | |||||||
Discontinued Operations, Held-for-sale | ||||||||
Business Acquisition [Line Items] | ||||||||
Valuation adjustment (allowance) on disposal group | (7,400) | |||||||
Cash and cash equivalents | 159,123 | |||||||
Forecast | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest in the joint venture hold | 49% | |||||||
Societe Generale | Forecast | Joint Venture | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest in the joint venture | 51% | |||||||
CarVal | ||||||||
Business Acquisition [Line Items] | ||||||||
Transaction agreement to acquire (as percent) | 100% | |||||||
Assets under management | $ 12,200,000 | |||||||
Equity interest contributed to affiliate | 100% | |||||||
Business acquisition, equity interest issued (in shares) | 12.1 | 3.2 | 15.3 | |||||
Fair value of AB Holding Units issued | $ 456,400 | $ 132,800 | $ 589,200 | |||||
Payables recorded under contingent payment arrangements | $ 228,900 | |||||||
Business combination, contingent consideration, performance term | 6 years | |||||||
Business combination, excess purchase price over fair value | $ 156,100 | |||||||
Cash acquired from acquisition | 40,800 | |||||||
Business combination, deferred tax assets | 5,100 | |||||||
Goodwill | 666,130 | $ 666,100 | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | $ 303,000 | |||||||
CarVal | Minimum | Investment Management Contracts and Investor Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | |||||||
CarVal | Maximum | Investment Management Contracts and Investor Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets acquired: | |||
Deferred tax asset | $ 5,073 | ||
Goodwill | $ 3,598,591 | $ 3,091,763 | |
CarVal | |||
Business Acquisition [Line Items] | |||
Fair value of AB Holding units issued | 589,169 | ||
Fair value of contingent consideration | 228,885 | ||
Total purchase consideration | 818,054 | ||
Assets acquired: | |||
Cash and cash equivalents | 40,777 | ||
Receivables, net | 82,523 | ||
Investments - other | 947 | ||
Furniture, equipment, and leasehold improvements, net | 2,464 | ||
Right-of-use assets | 16,482 | ||
Other assets | 10,600 | ||
Deferred tax asset | 5,100 | ||
Intangible assets | 303,000 | ||
Goodwill | 666,130 | $ 666,100 | |
Total assets acquired | 1,127,996 | ||
Liabilities assumed: | |||
Accounts payable and accrued expenses | (17,793) | ||
Accrued compensation and benefits | (219,726) | ||
Debt | (42,661) | ||
Lease liabilities | (16,571) | ||
Non-redeemable non-controlling interests in consolidated entities | (13,191) | ||
Total liabilities assumed | (309,942) | ||
Net assets acquired | $ 818,054 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Summarizes the Assets and Liabilities of the Disposal Group Classified (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Goodwill | $ 159,800 | |
Assets held for sale | 551,351 | $ 0 |
Liabilities held for sale | 107,952 | $ 0 |
Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 159,123 | |
Investments | 24,507 | |
Furniture and equipment, net | 4,128 | |
Other assets | 107,764 | |
Right-of-use assets | 1,552 | |
Intangible assets | 4,903 | |
Goodwill | 159,826 | |
Valuation adjustment (allowance) on disposal group | (7,400) | |
Assets held for sale | 551,351 | |
Payables: Brokers and dealers | 32,983 | |
Payables: Brokerage clients | 10,232 | |
Other liabilities | 50,884 | |
Accrued compensation and benefits | 13,853 | |
Liabilities held for sale | 107,952 | |
Discontinued Operations, Held-for-sale | Brokers and Dealers | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net: | 44,717 | |
Discontinued Operations, Held-for-sale | Brokerage Clients | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net: | 29,243 | |
Discontinued Operations, Held-for-sale | Other Fees | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net: | $ 22,988 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Account - Allowance for Doubtful Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | $ 328 | $ 311 | $ 309 |
Credited to Costs and Expenses | 0 | 0 | 100 |
Deductions | 96 | (17) | 98 |
Balance at End of Period | 232 | 328 | 311 |
Net allowance increase during period | 28 | ||
Amounts written-off as uncollectible | $ 96 | $ 11 | $ 98 |