Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | ALLIANCEBERNSTEIN HOLDING L.P. |
Entity Central Index Key | 825,313 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 98,028,820 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Condensed Statements of Financi
Condensed Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Investment in AB | $ 1,534,935 | $ 1,544,704 |
Total assets | 1,534,935 | 1,544,704 |
Liabilities: | ||
Other liabilities | 629 | 1,154 |
Total liabilities | 629 | 1,154 |
Commitments and contingencies (See Note 8) | ||
Partners’ capital: | ||
General Partner: 100,000 general partnership units issued and outstanding | 1,386 | 1,411 |
Limited partners: 97,928,820 and 96,361,989 limited partnership units issued and outstanding | 1,601,958 | 1,590,776 |
AB Holding Units held by AB to fund long-term incentive compensation plans | (31,718) | (15,174) |
Accumulated other comprehensive loss | (37,320) | (33,463) |
Total partners’ capital | 1,534,306 | 1,543,550 |
Total liabilities and partners’ capital | $ 1,534,935 | $ 1,544,704 |
Condensed Statements of Financ3
Condensed Statements of Financial Condition (Parenthetical) - shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
General Partner: units issued (in shares) | 100,000 | 100,000 |
General Partner: units outstanding (in shares) | 100,000 | 100,000 |
Limited partners: units issued (in shares) | 97,928,820 | 96,361,989 |
Limited partners: units outstanding (in shares) | 97,928,820 | 96,361,989 |
Condensed Statements of Income
Condensed Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Equity in net income attributable to AB Unitholders | $ 65,388 | $ 47,947 | $ 131,086 | $ 97,613 |
Income taxes | 6,931 | 6,206 | 14,469 | 11,962 |
Net income | $ 58,457 | $ 41,741 | $ 116,617 | $ 85,651 |
Net income per unit: | ||||
Basic (in dollars per unit) | $ 0.59 | $ 0.43 | $ 1.19 | $ 0.89 |
Diluted (in dollars per unit) | $ 0.59 | $ 0.43 | $ 1.19 | $ 0.89 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 58,457 | $ 41,741 | $ 116,617 | $ 85,651 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, before reclassification and tax | (7,429) | 2,643 | (3,981) | 5,842 |
Less: reclassification adjustment for (losses) included in net income upon liquidation | (36) | 0 | (36) | 0 |
Foreign currency translation adjustments, before tax | (7,393) | 2,643 | (3,945) | 5,842 |
Income tax (expense) benefit | (5) | 97 | (25) | 52 |
Foreign currency translation adjustments, net of tax | (7,398) | 2,740 | (3,970) | 5,894 |
Unrealized gains on investments: | ||||
Unrealized gains arising during period | 0 | 9 | 0 | 4 |
Less: reclassification adjustments for gains included in net income | 0 | 0 | 0 | 0 |
Changes in unrealized gains on investments | 0 | 9 | 0 | 4 |
Income tax benefit | 0 | 3 | 0 | 2 |
Unrealized gains on investments, net of tax | 0 | 12 | 0 | 6 |
Changes in employee benefit related items: | ||||
Amortization of prior service cost | 1 | 8 | 1 | 10 |
Recognized actuarial gain | 57 | 421 | 19 | 533 |
Changes in employee benefit related items | 58 | 429 | 20 | 543 |
Income tax benefit (expense) | 1 | (4) | (40) | (31) |
Employee benefit related items, net of tax | 59 | 425 | (20) | 512 |
Other | 134 | 0 | 133 | 0 |
Other comprehensive (loss) income | (7,205) | 3,177 | (3,857) | 6,412 |
Comprehensive income | $ 51,252 | $ 44,918 | $ 112,760 | $ 92,063 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||||
Net income | $ 58,457 | $ 41,741 | $ 116,617 | $ 85,651 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in net income attributable to AB Unitholders | (65,388) | (47,947) | (131,086) | (97,613) |
Cash distributions received from AB | 167,861 | 120,816 | ||
Changes in assets and liabilities: | ||||
Decrease in other liabilities | (525) | (72) | ||
Net cash provided by operating activities | 152,867 | 108,782 | ||
Cash flows from investing activities: | ||||
Investments in AB with proceeds from exercise of compensatory options to buy AB Holding Units | (8,314) | (9,246) | ||
Net cash used in investing activities | (8,314) | (9,246) | ||
Cash flows from financing activities: | ||||
Cash distributions to Unitholders | (154,064) | (109,371) | ||
Capital contributions from AB | 1,197 | 589 | ||
Proceeds from exercise of compensatory options to buy AB Holding Units | 8,314 | 9,246 | ||
Net cash used in financing activities | (144,553) | (99,536) | ||
Change in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents as of beginning of period | 0 | 0 | ||
Cash and cash equivalents as of end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Business Description, Organizat
Business Description, Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description, Organization and Basis of Presentation | Business Description, Organization and Basis of Presentation Business Description AB Holding’s principal source of income and cash flow is attributable to its investment in AB limited partnership interests. The condensed financial statements and notes of AB Holding should be read in conjunction with the condensed consolidated financial statements and notes of AB included as an exhibit to this quarterly report on Form 10-Q and with AB Holding’s and AB’s audited financial statements included in AB Holding’s Form 10-K for the year ended December 31, 2017 . AB provides research, diversified investment management and related services globally to a broad range of clients. Its principal services include: • Institutional Services – servicing its institutional clients, including private and public pension plans, foundations and endowments, insurance companies, central banks and governments worldwide, and affiliates such as AXA S.A. (“AXA”), AXA Equitable Holdings, Inc. ("EQH") and their respective subsidiaries, by means of separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles. • Retail Services – servicing its retail clients, primarily by means of retail mutual funds sponsored by AB or an affiliated company, sub-advisory relationships with mutual funds sponsored by third parties, separately-managed account programs sponsored by financial intermediaries worldwide and other investment vehicles. • Private Wealth Management Services – servicing its private clients, including high-net-worth individuals and families, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, by means of separately-managed accounts, hedge funds, mutual funds and other investment vehicles. • Bernstein Research Services – servicing institutional investors, such as pension fund, hedge fund and mutual fund managers, seeking high-quality fundamental research, quantitative services and brokerage-related services in equities and listed options. AB also provides distribution, shareholder servicing, transfer agency services and administrative services to the mutual funds it sponsors. AB’s high-quality, in-depth research is the foundation of its business. AB’s research disciplines include economic, fundamental equity, fixed income and quantitative research. In addition, AB has experts focused on multi-asset strategies, wealth management and alternative investments. AB provides a broad range of investment services with expertise in: • Actively-managed equity strategies, with global and regional portfolios across capitalization ranges, concentration ranges and investment strategies, including value, growth and core equities; • Actively-managed traditional and unconstrained fixed income strategies, including taxable and tax-exempt strategies; • Passive management, including index and enhanced index strategies; • Alternative investments, including hedge funds, fund of funds and private equity ( e.g. , direct real estate investing and direct lending); and • Multi-asset solutions and services, including dynamic asset allocation, customized target-date funds and target-risk funds. AB’s services span various investment disciplines, including market capitalization ( e.g. , large-, mid- and small-cap equities), term ( e.g. , long-, intermediate- and short-duration debt securities), and geographic location ( e.g. , U.S., international, global, emerging markets, regional and local), in major markets around the world. Organization During 2017, AXA, a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, announced its intention to pursue the sale of a minority stake in EQH, the holding company for a diversified financial services organization, through an initial public offering ("IPO"). During the second quarter of 2018, EQH completed the IPO, and as a result AXA owns approximately 71.9% of the outstanding common stock of EQH as of June 30, 2018 . AXA has announced its intention to sell its entire interest in EQH over time, subject to market conditions and other factors. AXA is under no obligation to do so and retains the sole discretion to determine the timing of any future sales of shares of EQH common stock. As of June 30, 2018 , EQH owns approximately 3.8% of the issued and outstanding units representing assignments of beneficial ownership of limited partnership interests in AB Holding (“AB Holding Units”). AllianceBernstein Corporation (an indirect wholly-owned subsidiary of EQH, “General Partner”) is the general partner of both AB Holding and AB. AllianceBernstein Corporation owns 100,000 general partnership units in AB Holding and a 1% general partnership interest in AB. As of June 30, 2018 , the ownership structure of AB, expressed as a percentage of general and limited partnership interests, is as follows: EQH and its subsidiaries 63.3 % AB Holding 35.9 Unaffiliated holders 0.8 100.0 % Including both the general partnership and limited partnership interests in AB Holding and AB, EQH and its subsidiaries have an approximate 64.7% economic interest in AB as of June 30, 2018 . Basis of Presentation The interim condensed financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the interim results, have been made. The preparation of the condensed financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the condensed financial statements and the reported amounts of revenues and expenses during the interim reporting periods. Actual results could differ from those estimates. The condensed statement of financial condition as of December 31, 2017 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). AB Holding records its investment in AB using the equity method of accounting. AB Holding’s investment is increased to reflect its proportionate share of income of AB and decreased to reflect its proportionate share of losses of AB and cash distributions made by AB to its Unitholders. In addition, AB Holding's investment is adjusted to reflect its proportionate share of certain capital transactions of AB. AB's ASC 606 Implementation In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which outlines a single comprehensive revenue recognition model for all contracts with customers and supersedes most of the existing revenue recognition requirements. This standard had no impact on AB Holding’s statement of income. AB adopted this new standard on January 1, 2018 on a modified retrospective basis for contracts that were not completed as of the date of adoption. On January 1, 2018, AB recorded a cumulative effect adjustment, net of tax, of a $35.0 million increase to partners’ capital in its condensed consolidated statement of financial condition. Accordingly, AB Holding , as a result of its 35.5% ownership interest in AB as of January 1, 2018, recorded a cumulative effect adjustment, net of tax, of $12.5 million to partners’ capital in its condensed statement of financial condition. |
Cash Distributions
Cash Distributions | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Cash Distributions | Cash Distributions AB Holding is required to distribute all of its Available Cash Flow, as defined in the Amended and Restated Agreement of Limited Partnership of AB Holding (“AB Holding Partnership Agreement”), to its Unitholders pro rata in accordance with their percentage interests in AB Holding. Available Cash Flow is defined as the cash distributions AB Holding receives from AB minus such amounts as the General Partner determines, in its sole discretion, should be retained by AB Holding for use in its business (such as the payment of taxes) or plus such amounts as the General Partner determines, in its sole discretion, should be released from previously retained cash flow. On July 26, 2018 , the General Partner declared a distribution of $0.62 per unit, representing a distribution of Available Cash Flow for the three months ended June 30, 2018 . Each general partnership unit in AB Holding is entitled to receive distributions equal to those received by each AB Holding Unit. The distribution is payable on August 23, 2018 to holders of record at the close of business on August 6, 2018 . |
Long-term Incentive Compensatio
Long-term Incentive Compensation Plans | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-term Incentive Compensation Plans | Long-term Incentive Compensation Plans AB maintains several unfunded, non-qualified long-term incentive compensation plans, under which the company grants awards of restricted AB Holding Units to its employees and members of the Board of Directors, who are not employed by AB or by any of AB’s affiliates (“Eligible Directors”). AB funds its restricted AB Holding Unit awards either by purchasing AB Holding Units on the open market or purchasing newly-issued AB Holding Units from AB Holding, and then keeping all of these AB Holding Units in a consolidated rabbi trust until delivering them or retiring them. In accordance with the AB Holding Partnership Agreement, when AB purchases newly-issued AB Holding Units from AB Holding, AB Holding is required to use the proceeds it receives from AB to purchase the equivalent number of newly-issued AB Units, thus increasing its percentage ownership interest in AB. AB Holding Units held in the consolidated rabbi trust are corporate assets in the name of the trust and are available to the general creditors of AB. During the three and six months ended June 30, 2018 , AB purchased approximately 1.2 million and 1.2 million AB Holding Units for $32.9 million and $35.2 million , respectively (on a trade date basis). These amounts reflect open-market purchases of 1.2 million AB Holding Units for $32.9 million during the second quarter of 2018 with the remainder relating to purchases of AB Holding Units from employees to allow them to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. During the three and six months ended June 30, 2017 , AB purchased 4.3 million and 5.7 million AB Holding Units for $96.7 million and $127.8 million , respectively (on a trade date basis). These amounts reflect open-market purchases of 3.7 million and 4.9 million AB Holding Units for $82.4 million and $110.3 million , respectively, with the remainder relating to purchases of AB Holding Units from employees to allow them to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards. Each quarter, AB considers whether to implement a plan to repurchase AB Holding Units pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (“Exchange Act”). A plan of this type allows a company to repurchase its shares at times when it otherwise might be prevented from doing so because of self-imposed trading blackout periods or because it possesses material non-public information. Each broker selected by AB has the authority under the terms and limitations specified in the plan to repurchase AB Holding Units on AB’s behalf in accordance with the terms of the plan. Repurchases are subject to regulations promulgated by the SEC as well as certain price, market volume and timing constraints specified in the plan. The plan adopted during the second quarter of 2018 expired at the close of business on July 25, 2018. AB may adopt additional plans in the future to engage in open-market purchases of AB Holding Units to help fund anticipated obligations under its incentive compensation award program and for other corporate purposes. During the first six months of 2018 and 2017 , AB granted to employees and Eligible Directors 2.4 million and 2.0 million restricted AB Holding Unit awards, respectively. AB used AB Holding Units repurchased during the periods and newly-issued AB Holding Units to fund these restricted AB Holding Unit awards. During each of the first six months of 2018 and 2017 , AB Holding issued 0.5 million AB Holding Units upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $8.3 million and $9.2 million , respectively, received as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Units. |
Net Income per Unit
Net Income per Unit | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Unit [Abstract] | |
Net Income per Unit | Net Income per Unit Basic net income per unit is derived by dividing net income by the basic weighted average number of units outstanding for each period. Diluted net income per unit is derived by adjusting net income for the assumed dilutive effect of compensatory options (“Net income – diluted”) and dividing by the diluted weighted average number of units outstanding for each period. Three Months Ended June 30, Six Months Ended 2018 2017 2018 2017 (in thousands, except per unit amounts) Net income – basic $ 58,457 $ 41,741 $ 116,617 $ 85,651 Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options 115 137 259 313 Net income – diluted $ 58,572 $ 41,878 $ 116,876 $ 85,964 Weighted average units outstanding – basic 98,368 96,061 97,673 96,150 Dilutive effect of compensatory options 272 430 303 482 Weighted average units outstanding – diluted 98,640 96,491 97,976 96,632 Basic net income per unit $ 0.59 $ 0.43 $ 1.19 $ 0.89 Diluted net income per unit $ 0.59 $ 0.43 $ 1.19 $ 0.89 For the three and six months ended June 30, 2018 , we excluded 850,155 options and 1,211,906 options, respectively, from the diluted net income computation due to their anti-dilutive effect. For the three and six months ended June 30, 2017 , we excluded 2,507,179 options and 2,452,633 options, respectively, from the diluted net income computation due to their anti-dilutive effect. |
Investment in AB
Investment in AB | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in AB | Investment in AB Changes in AB Holding’s investment in AB during the six -month period ended June 30, 2018 are as follows (in thousands): Investment in AB as of December 31, 2017 $ 1,544,704 Equity in net income attributable to AB Unitholders 131,086 Changes in accumulated other comprehensive income (loss) (3,857 ) Additional investments with proceeds from exercise of compensatory options to buy AB Holding Units 8,314 Cash distributions received from AB (167,861 ) Capital contributions from AB (1,197 ) AB Holding Units retired (39,704 ) AB Holding Units issued to fund long-term incentive compensation plans 67,579 Change in AB Holding Units held by AB for long-term incentive compensation plans (16,545 ) Impact of ABLP's adoption of revenue recognition standard ASC 606 12,549 Other (133 ) Investment in AB as of June 30, 2018 $ 1,534,935 |
Units Outstanding
Units Outstanding | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Units Outstanding | Units Outstanding Changes in AB Holding Units outstanding during the six -month period ended June 30, 2018 are as follows: Outstanding as of December 31, 2017 96,461,989 Options exercised 488,513 Units issued 2,471,307 Units retired (1,392,989 ) Outstanding as of June 30, 2018 98,028,820 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes AB Holding is a “grandfathered” publicly-traded partnership (“PTP”) for federal tax purposes and, accordingly, is not subject to federal or state corporate income taxes. However, AB Holding is subject to the 4.0% New York City unincorporated business tax (“UBT”), net of credits for UBT paid by AB, and to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. AB Holding’s partnership gross income is derived from its interest in AB. AB Holding’s federal income tax is computed by multiplying certain AB qualifying revenues (primarily U.S. investment advisory fees and brokerage commissions) by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate. AB Holding Units in AB’s consolidated rabbi trust are not considered outstanding for purposes of calculating AB Holding’s ownership interest in AB. Three Months Ended June 30, Six Months Ended 2018 2017 % Change 2018 2017 % Change (in thousands) Net income attributable to AB Unitholders $ 181,665 $ 135,103 34.5 % $ 365,861 $ 275,040 33.0 % Multiplied by: weighted average equity ownership interest 36.0 % 35.5 % 35.8 % 35.5 % Equity in net income attributable to AB Unitholders $ 65,388 $ 47,947 36.4 $ 131,086 $ 97,613 34.3 AB qualifying revenues $ 643,009 $ 586,478 9.6 $ 1,345,927 $ 1,132,655 18.8 Multiplied by: weighted average equity ownership interest for calculating tax 30.2 % 29.7 % 30.2 % 29.6 % Multiplied by: federal tax 3.5 % 3.5 % 3.5 % 3.5 % Federal income taxes 6,794 6,099 14,204 11,750 State income taxes 137 107 265 212 Total income taxes $ 6,931 $ 6,206 11.7 $ 14,469 $ 11,962 21.0 Effective tax rate 10.6 % 12.9 % 11.0 % 12.3 % In order to preserve AB Holding’s status as a “grandfathered” PTP for federal income tax purposes, management ensures that AB Holding does not directly or indirectly (through AB) enter into a substantial new line of business. If AB Holding were to lose its status as a “grandfathered” PTP, it would be subject to corporate income tax, which would reduce materially AB Holding’s net income and its quarterly distributions to AB Holding Unitholders. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and regulatory matters described below pertain to AB and are included here due to their potential significance to AB Holding's investment in AB. With respect to all significant litigation matters, we consider the likelihood of a negative outcome. If we determine the likelihood of a negative outcome is probable and the amount of the loss can be reasonably estimated, we record an estimated loss for the expected outcome of the litigation. If the likelihood of a negative outcome is reasonably possible and we are able to determine an estimate of the possible loss or range of loss in excess of amounts already accrued, if any, we disclose that fact together with the estimate of the possible loss or range of loss. However, it is often difficult to predict the outcome or estimate a possible loss or range of loss because litigation is subject to inherent uncertainties, particularly when plaintiffs allege substantial or indeterminate damages. Such is also the case when the litigation is in its early stages or when the litigation is highly complex or broad in scope. In these cases, we disclose that we are unable to predict the outcome or estimate a possible loss or range of loss. AB may be involved in various matters, including regulatory inquiries, administrative proceedings and litigation, some of which may allege significant damages. It is reasonably possible that AB could incur losses pertaining to these matters, but management cannot currently estimate any such losses. Management, after consultation with legal counsel, currently believes that the outcome of any individual matter that is pending or threatened, or all of them combined, will not have a material adverse effect on our results of operations, financial condition or liquidity. However, any inquiry, proceeding or litigation has an element of uncertainty; management cannot determine whether further developments relating to any individual matter that is pending or threatened, or all of them combined, will have a material adverse effect on our results of operations, financial condition or liquidity in any future reporting period. |
Business Description, Organiz15
Business Description, Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Ownership Structure of AllianceBernstein | As of June 30, 2018 , the ownership structure of AB, expressed as a percentage of general and limited partnership interests, is as follows: EQH and its subsidiaries 63.3 % AB Holding 35.9 Unaffiliated holders 0.8 100.0 % |
Net Income per Unit (Tables)
Net Income per Unit (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Unit [Abstract] | |
Schedule of Earnings Per Unit, Basic and Diluted | Basic net income per unit is derived by dividing net income by the basic weighted average number of units outstanding for each period. Diluted net income per unit is derived by adjusting net income for the assumed dilutive effect of compensatory options (“Net income – diluted”) and dividing by the diluted weighted average number of units outstanding for each period. Three Months Ended June 30, Six Months Ended 2018 2017 2018 2017 (in thousands, except per unit amounts) Net income – basic $ 58,457 $ 41,741 $ 116,617 $ 85,651 Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options 115 137 259 313 Net income – diluted $ 58,572 $ 41,878 $ 116,876 $ 85,964 Weighted average units outstanding – basic 98,368 96,061 97,673 96,150 Dilutive effect of compensatory options 272 430 303 482 Weighted average units outstanding – diluted 98,640 96,491 97,976 96,632 Basic net income per unit $ 0.59 $ 0.43 $ 1.19 $ 0.89 Diluted net income per unit $ 0.59 $ 0.43 $ 1.19 $ 0.89 |
Investment in AB (Tables)
Investment in AB (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Changes in Investment in AB | Changes in AB Holding’s investment in AB during the six -month period ended June 30, 2018 are as follows (in thousands): Investment in AB as of December 31, 2017 $ 1,544,704 Equity in net income attributable to AB Unitholders 131,086 Changes in accumulated other comprehensive income (loss) (3,857 ) Additional investments with proceeds from exercise of compensatory options to buy AB Holding Units 8,314 Cash distributions received from AB (167,861 ) Capital contributions from AB (1,197 ) AB Holding Units retired (39,704 ) AB Holding Units issued to fund long-term incentive compensation plans 67,579 Change in AB Holding Units held by AB for long-term incentive compensation plans (16,545 ) Impact of ABLP's adoption of revenue recognition standard ASC 606 12,549 Other (133 ) Investment in AB as of June 30, 2018 $ 1,534,935 |
Units Outstanding (Tables)
Units Outstanding (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Holding Units Outstanding | Changes in AB Holding Units outstanding during the six -month period ended June 30, 2018 are as follows: Outstanding as of December 31, 2017 96,461,989 Options exercised 488,513 Units issued 2,471,307 Units retired (1,392,989 ) Outstanding as of June 30, 2018 98,028,820 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Computation of Effective Income Tax Rate and Changes in Components of Income Tax | Three Months Ended June 30, Six Months Ended 2018 2017 % Change 2018 2017 % Change (in thousands) Net income attributable to AB Unitholders $ 181,665 $ 135,103 34.5 % $ 365,861 $ 275,040 33.0 % Multiplied by: weighted average equity ownership interest 36.0 % 35.5 % 35.8 % 35.5 % Equity in net income attributable to AB Unitholders $ 65,388 $ 47,947 36.4 $ 131,086 $ 97,613 34.3 AB qualifying revenues $ 643,009 $ 586,478 9.6 $ 1,345,927 $ 1,132,655 18.8 Multiplied by: weighted average equity ownership interest for calculating tax 30.2 % 29.7 % 30.2 % 29.6 % Multiplied by: federal tax 3.5 % 3.5 % 3.5 % 3.5 % Federal income taxes 6,794 6,099 14,204 11,750 State income taxes 137 107 265 212 Total income taxes $ 6,931 $ 6,206 11.7 $ 14,469 $ 11,962 21.0 Effective tax rate 10.6 % 12.9 % 11.0 % 12.3 % |
Business Description, Organiz20
Business Description, Organization and Basis of Presentation (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Ownership structure of AB Holding | ||||
Units outstanding (in shares) | 100,000 | 100,000 | 100,000 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Ownership structure of AB Holding | ||||
Cumulative effect adjustment, net of tax, to partner's capital | $ 12,500 | $ 12,549 | $ 12,549 | |
AllianceBernstein Corporation | ||||
Ownership structure of AB Holding | ||||
Limited partners or members ownership interest in Company (percent) | 100.00% | |||
AB | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Ownership structure of AB Holding | ||||
Cumulative effect adjustment, net of tax, to partner's capital | $ 35,000 | |||
EQH | AXA | ||||
Ownership structure of AB Holding | ||||
General partnership interest (percent) | 71.90% | |||
AB Holding | EQH | ||||
Ownership structure of AB Holding | ||||
General partnership interest (percent) | 3.80% | |||
AB Holding | AllianceBernstein Corporation | ||||
Ownership structure of AB Holding | ||||
General partnership interest (percent) | 1.00% | |||
Units outstanding (in shares) | 100,000 | 100,000 | ||
Limited partners or members ownership interest in Company (percent) | 35.90% | |||
EQH and its subsidiaries | AllianceBernstein Corporation | ||||
Ownership structure of AB Holding | ||||
Limited partners or members ownership interest in Company (percent) | 63.30% | |||
Unaffiliated holders | AllianceBernstein Corporation | ||||
Ownership structure of AB Holding | ||||
Limited partners or members ownership interest in Company (percent) | 0.80% | |||
AB | EQH and its subsidiaries | ||||
Ownership structure of AB Holding | ||||
General partnership interest (percent) | 64.70% | |||
AB | AB Holding | ||||
Ownership structure of AB Holding | ||||
Limited partners or members ownership interest in Company (percent) | 35.50% |
Cash Distributions (Details)
Cash Distributions (Details) - Cash Distribution - $ / shares | Jul. 26, 2018 | Jun. 30, 2018 |
Distribution Made to Limited Partner [Line Items] | ||
Declaration date | Jul. 26, 2018 | |
Distribution date | Aug. 23, 2018 | |
Record date | Aug. 6, 2018 | |
Subsequent Event | ||
Distribution Made to Limited Partner [Line Items] | ||
Cash distribution declared (in dollars per unit) | $ 0.62 |
Long-term Incentive Compensat22
Long-term Incentive Compensation Plans (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Holding units purchased in period | 1.2 | 4.3 | 1.2 | 5.7 |
Dollar amount paid for holding units acquired | $ 32,900 | $ 96,700 | $ 35,200 | $ 127,800 |
Open-market purchases of holding units | 1.2 | 3.7 | 4.9 | |
Dollar amount paid for open-market purchases of holding units | $ 32,900 | $ 82,400 | $ 110,300 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units issued upon options exercised (in units) | 0.5 | 0.5 | ||
Proceeds from stock options exercised | $ 8,314 | $ 9,246 | ||
Employees and Eligible Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted AB Holding Unit awards granted to employees and Eligible Directors | 2.4 | 2 |
Net Income per Unit (Details)
Net Income per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Unit [Abstract] | ||||
Net income – basic | $ 58,457 | $ 41,741 | $ 116,617 | $ 85,651 |
Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options | 115 | 137 | 259 | 313 |
Net income – diluted | $ 58,572 | $ 41,878 | $ 116,876 | $ 85,964 |
Weighted average units outstanding – basic (in units) | 98,368,000 | 96,061,000 | 97,673,000 | 96,150,000 |
Dilutive effect of compensatory options (in units) | 272,000 | 430,000 | 303,000 | 482,000 |
Weighted average units outstanding – diluted (in units) | 98,640,000 | 96,491,000 | 97,976,000 | 96,632,000 |
Basic net income per unit (in dollars per unit) | $ 0.59 | $ 0.43 | $ 1.19 | $ 0.89 |
Diluted net income per unit (in dollars per unit) | $ 0.59 | $ 0.43 | $ 1.19 | $ 0.89 |
Anti-dilutive units excluded from diluted net income computation (in units) | 850,155 | 2,507,179 | 1,211,906 | 2,452,633 |
Investment in AB (Details)
Investment in AB (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | |
Change in Equity Method Investment [Roll Forward] | |||||
Investment in AB as of December 31, 2017 | $ 1,544,704 | ||||
Equity in net income attributable to AB Unitholders | $ 65,388 | $ 47,947 | 131,086 | $ 97,613 | |
Changes in accumulated other comprehensive income (loss) | (7,205) | $ 3,177 | (3,857) | 6,412 | |
Additional investments with proceeds from exercise of compensatory options to buy AB Holding Units | 8,314 | 9,246 | |||
Cash distributions received from AB | (167,861) | (120,816) | |||
Capital contributions from AB | (1,197) | $ (589) | |||
AB Holding Units retired | (39,704) | ||||
AB Holding Units issued to fund long-term incentive compensation plans | 67,579 | ||||
Change in AB Holding Units held by AB for long-term incentive compensation plans | (16,545) | ||||
Investment in AB as of June 30, 2018 | 1,534,935 | 1,534,935 | |||
Accounting Standards Update 2016-01 | |||||
Change in Equity Method Investment [Roll Forward] | |||||
Impact of ABLP's adoption of ASU | (133) | (133) | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Change in Equity Method Investment [Roll Forward] | |||||
Impact of ABLP's adoption of ASU | $ 12,549 | $ 12,549 | $ 12,500 |
Units Outstanding (Details)
Units Outstanding (Details) | 6 Months Ended |
Jun. 30, 2018shares | |
Units Outstanding | |
Outstanding as of December 31, 2017 (in units) | 96,461,989 |
Options exercised (in units) | 488,513 |
Units issued (in units) | 2,471,307 |
Units retired (in units) | (1,392,989) |
Outstanding as of June 30, 2018 (in units) | 98,028,820 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
New York City unincorporated business tax (percent) | 4.00% | |||
Federal tax rate on partnership gross income (percent) | 3.50% | |||
Computation of equity in net income attributable to AllianceBernstein Unitholders [Abstract] | ||||
Net income attributable to AB Unitholders | $ 181,665 | $ 135,103 | $ 365,861 | $ 275,040 |
Multiplied by: weighted average equity ownership interest (percent) | 36.00% | 35.50% | 35.80% | 35.50% |
Equity in net income attributable to AB Unitholders | $ 65,388 | $ 47,947 | $ 131,086 | $ 97,613 |
Computation of income tax [Abstract] | ||||
AB qualifying revenues | $ 643,009 | $ 586,478 | $ 1,345,927 | $ 1,132,655 |
Multiplied by: weighted average equity ownership interest for calculating tax (percent) | 30.20% | 29.70% | 30.20% | 29.60% |
Multiplied by: federal tax (percent) | 3.50% | 3.50% | 3.50% | 3.50% |
Federal income taxes | $ 6,794 | $ 6,099 | $ 14,204 | $ 11,750 |
State income taxes | 137 | 107 | 265 | 212 |
Total income taxes | $ 6,931 | $ 6,206 | $ 14,469 | $ 11,962 |
Effective tax rate (percent) | 10.60% | 12.90% | 11.00% | 12.30% |
Changes in components for calculation of income tax [Abstract] | ||||
Change in net income attributable to AllianceBernstein Unitholders (percent) | 34.50% | 33.00% | ||
Change in equity in net income attributable to AllianceBernstein Unitholders (percent) | 36.40% | 34.30% | ||
Change in AllianceBernstein qualifying revenues (percent) | 9.60% | 18.80% | ||
Change in income taxes (percent) | 11.70% | 21.00% |