Consolidated Company-Sponsored Investment Funds (Tables)

6 Months Ended

Jun. 30, 2017

Variable Interest Entity [Line Items]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of our financial instruments by pricing observability levels as of June 30, 2017 and December 31, 2016 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
June 30, 2017:
Money markets	$	173,176	$	—	$	—	$	—	$	—	$	173,176
Securities segregated (U.S. Treasury Bills)	—		1,007,079		—		—		—		1,007,079
Derivatives	813		7,063		—		—		—		7,876
Investments
Trading
U.S. Treasury Bills	—		27,764		—		—		—		27,764
Equity securities	204,418		4,006		114		65		—		208,603
Fixed income securities	78,328		11,365		—		13		—		89,706
Long exchange-traded options	8,348		—		—		—		—		8,348
Limited partnership hedge funds⁽²⁾	—		—		—		—		38,679		38,679
Private equity	—		—		4,914		39,938		—		44,852
Time deposits⁽³⁾	—		—		—		—		50,429		50,429
Other
Available-for-sale	102		—		—		—		—		102
Other investments⁽²⁾⁽⁴⁾	—		—		—		—		11,498		11,498
Total investments	291,196		43,135		5,028		40,016		100,606		479,981
Total assets measured at fair value	$	465,185	$	1,057,277	$	5,028	$	40,016	$	100,606	$	1,668,112

Securities sold not yet purchased
Short equities – corporate	$	15,042	$	—	$	—	$	—	$	—	$	15,042
Short exchange-traded options	7,510		—		—		—		—		7,510
Derivatives	916		7,260		—		—		—		8,176
Contingent payment arrangements	—		—		16,777		—		—		16,777
Total liabilities measured at fair value	$	23,468	$	7,260	$	16,777	$	—	$	—	$	47,505

December 31, 2016:
Money markets	$	107,250	$	—	$	—	$	—	$	—	$	107,250
Securities segregated (U.S. Treasury Bills)	—		893,189		—		—		—		893,189
Derivatives	1,224		7,189		—		—		—		8,413
Investments
Trading
U.S. Treasury Bills	—		28,937		—		—		—		28,937
Equity securities	148,128		5,724		110		36		—		153,998
Fixed income securities	80,473		11,107		—		12		—		91,592
Long exchange-traded options	3,106		—		—		—		—		3,106
Limited partnership hedge funds⁽²⁾	—		—		—		—		40,530		40,530
Private equity	—		—		4,913		40,365		—		45,278
Time deposits⁽³⁾	—		—		—		—		70,097		70,097



Other
Available-for-sale	45		—		—		—		—		45
Other investments⁽²⁾⁽⁴⁾	—		—		—		—		7,522		7,522
Total investments	231,752		45,768		5,023		40,413		118,149		441,105
Total assets measured at fair value	$	340,226	$	946,146	$	5,023	$	40,413	$	118,149	$	1,449,957

Securities sold not yet purchased
Short equities – corporate	$	40,252	$	—	$	—	$	—	$	—	$	40,252
Short exchange-traded options	692		—		—		—		—		692
Derivatives	1,092		7,557		—		—		—		8,649
Contingent payment arrangements	—		—		17,589		—		—		17,589
Total liabilities measured at fair value	$	42,036	$	7,557	$	17,589	$	—	$	—	$	67,182

⁽¹⁾Investments measured at fair value using NAV (or its equivalent) as a practical expedient.

⁽²⁾ Investments in equity method investees that are not measured at fair value in accordance with GAAP.

⁽³⁾ Investments carried at amortized cost that are not measured at fair value in accordance with GAAP.

⁽⁴⁾ Investments carried at cost that are not measured at fair value in accordance with GAAP.

Schedule of Change in Carrying Value Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as private equity and trading equity securities, is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
	(in thousands)

Balance as of beginning of period	$	5,026	$	6,605		$	5,023	$	16,148
Reclassification (see below)	—		—			—		(9,532		)
Purchases	—		—			—		—
Sales	—		—			—		—
Realized gains (losses), net	—		—			—		—
Unrealized gains (losses), net	2		(1,667		)	5		(1,678		)
Balance as of end of period	$	5,028	$	4,938		$	5,028	$	4,938

Schedule of Offsetting of Derivative Assets

Offsetting of assets as of June 30, 2017 and December 31, 2016 was as follows:



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received			Net Amount
	(in thousands)
June 30, 2017:
Securities borrowed	$	55,323	$	—	$	55,323	$	(52,150	)	$	—		$	3,173
Derivatives	$	7,876	$	—	$	7,876	$	—		$	—		$	7,876
Long exchange-traded options	$	8,348	$	—	$	8,348	$	—		$	—		$	8,348
December 31, 2016:
Securities borrowed	$	82,814	$	—	$	82,814	$	(80,277	)	$	—		$	2,537
Derivatives	$	8,413	$	—	$	8,413	$	—		$	(810	)	$	7,603
Long exchange-traded options	$	3,106	$	—	$	3,106	$	—		$	—		$	3,106

Schedule of Offsetting of Derivative Liabilities

Offsetting of liabilities as of June 30, 2017 and December 31, 2016 was as follows:



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Pledged			Net Amount
	(in thousands)
June 30, 2017:
Securities loaned	$	28,750	$	—	$	28,750	$	(28,616	)	$	—		$	134
Derivatives	$	8,176	$	—	$	8,176	$	—		$	(5,564	)	$	2,612
Short exchange-traded options	$	7,510	$	—	$	7,510	$	—		$	—		$	7,510
December 31, 2016:
Securities loaned	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	$	8,649	$	—	$	8,649	$	—		$	(6,239	)	$	2,410
Short exchange-traded options	$	692	$	—	$	692	$	—		$	—		$	692

Company-sponsored investment funds

Variable Interest Entity [Line Items]

Balances of Consolidated VIEs and VOEs included in Statement of Financial Condition

The balances of consolidated VIEs and VOEs included in our condensed consolidated statements of financial condition were as follows:



	June 30, 2017						December 31, 2016
	(in thousands)

	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	364,738	$	39	$	364,777	$	337,525	$	—	$	337,525
Investments	629,680		29,656		659,336		550,850		23,226		574,076
Other assets	6,044		913		6,957		44,570		—		44,570
Total assets	$	1,000,462	$	30,608	$	1,031,070	$	932,945	$	23,226	$	956,171

Liabilities	$	416,194	$	9,853	$	426,047	$	292,800	$	—	$	292,800
Redeemable non-controlling interest	335,440		—		335,440		384,294		—		384,294
Partners' capital attributable to AB Unitholders	212,660		20,755		233,415		221,229		23,226		244,455
Non-redeemable non-controlling interests in consolidated entities	36,168		—		36,168		34,622		—		34,622
Total liabilities, redeemable non-controlling interest and partners' capital	$	1,000,462	$	30,608	$	1,031,070	$	932,945	$	23,226	$	956,171

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of June 30, 2017 and December 31, 2016 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient		Total
June 30, 2017:
Investments - VIEs	$	526,097	$	100,725	$	2,777	$	81	$	629,680
Investments - VOEs	12,757		16,879		20		—		29,656
Derivatives - VIEs	70		1,487		—		—		1,557
Derivatives - VOEs	1		9		—		—		10
Total assets measured at fair value	$	538,925	$	119,100	$	2,797	$	81	$	660,903

Short equities - VIEs	$	406,811	$	—	$	—	$	—	$	406,811
Derivatives - VIEs	30		2,823		—		—		2,853
Derivatives - VOEs	—		9		—		—		9
Total liabilities measured at fair value	$	406,841	$	2,832	$	—	$	—	$	409,673

December 31, 2016:
Investments - VIEs	$	341,830	$	203,197	$	5,741	$	82	$	550,850
Investments - VOEs	10,188		12,061		—		977		23,226
Derivatives - VIEs	58		1,739		—		—		1,797
Total assets measured at fair value	$	352,076	$	216,997	$	5,741	$	1,059	$	575,873

Short equities - VIEs	$	248,419	$	—	$	—	$	—	$	248,419
Derivatives - VIEs	48		2,033		—		—		2,081
Total liabilities measured at fair value	$	248,467	$	2,033	$	—	$	—	$	250,500

Schedule of Change in Carrying Value Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company-sponsored investment funds was as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in thousands)

Balance as of beginning of period	$	10,273		$	15,426		$	5,741		$	—
Impact of adoption of ASU 2015-02	—			—			—			14,740
Deconsolidated funds	(6,697		)	—			(6,697		)	—
Transfers in (out)	(336		)	(1,315		)	413			(1,315		)
Purchases	435			350			5,012			356
Sales	(824		)	(455		)	(1,897		)	(508		)
Realized (losses), net	8			(39		)	(4		)	(39		)
Unrealized gains (losses), net	(54		)	(838		)	217			(123		)
Accrued discounts	(8		)	(21		)	12			(3		)
Balance as of end of period	$	2,797		$	13,108		$	2,797		$	13,108

Schedule of Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of June 30, 2017 and December 31, 2016 was as follows:



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Financial Instruments		Collateral Received			Net Amount
	(in thousands)
June 30, 2017:
Derivatives - VIEs	$	14,422	$	—	$	14,422	$	—	$	(88	)	$	14,334
Derivatives - VOEs	$	10	$	—	$	10	$	—	$	—		$	10
December 31, 2016:
Derivatives - VIEs	$	4,997	$	—	$	4,997	$	—	$	(461	)	$	4,536

Schedule of Offsetting of Derivative Liabilities

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of June 30, 2017 and December 31, 2016 was as follows:



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Financial Instruments		Collateral Pledged			Net Amount
	(in thousands)
June 30, 2017:
Derivatives - VIEs	$	2,853	$	—	$	2,853	$	—	$	(2,853	)	$	—
Derivatives - VOEs	$	9	$	—	$	9	$	—	$	(1	)	$	8
December 31, 2016:
Derivatives - VIEs	$	2,081	$	—	$	2,081	$	—	$	(2,081	)	$	—