Consolidated Company-Sponsored Investment Funds (Tables)

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
September 30, 2017:
Money markets	$	152,893	$	—	$	—	$	—	$	—	$	152,893
Securities segregated (U.S. Treasury Bills)	—		723,029		—		—		—		723,029
Derivatives	1,111		4,735		—		—		—		5,846
Investments
Trading
U.S. Treasury Bills	—		52,605		—		—		—		52,605
Equity securities	231,897		4,108		116		98		—		236,219
Fixed income securities	68,328		10,986		—		13		—		79,327
Long exchange-traded options	9,368		—		—		—		—		9,368
Limited partnership hedge funds⁽²⁾	—		—		—		—		39,490		39,490
Private equity	—		—		954		37,599		—		38,553
Time deposits⁽³⁾	—		—		—		—		52,090		52,090
Other
Available-for-sale	98		—		—		—		—		98
Other investments⁽²⁾⁽⁴⁾	—		—		—		—		12,003		12,003
Total investments	309,691		67,699		1,070		37,710		103,583		519,753
Total assets measured at fair value	$	463,695	$	795,463	$	1,070	$	37,710	$	103,583	$	1,401,521

Securities sold not yet purchased
Short equities – corporate	$	20,539	$	—	$	—	$	—	$	—	$	20,539
Short exchange-traded options	13,272		—		—		—		—		13,272
Derivatives	962		5,638		—		—		—		6,600
Contingent payment arrangements	—		—		12,103		—		—		12,103
Total liabilities measured at fair value	$	34,773	$	5,638	$	12,103	$	—	$	—	$	52,514

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 September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
	(in thousands)

Balance as of beginning of period	$	5,028		$	4,938	$	5,023		$	16,148
Reclassification (see below)	—			—		—			(9,532		)
Purchases	—			—		—			—
Sales	—			—		—			—
Realized gains (losses), net	—			—		—			—
Unrealized gains (losses), net	(3,958		)	2		(3,953		)	(1,676		)
Balance as of end of period	$	1,070		$	4,940	$	1,070		$	4,940

Schedule of Offsetting of Derivative Assets

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



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Assets Presented in the Statement of Financial Condition		Financial Instruments			Cash Collateral Received			Net Amount
	(in thousands)
September 30, 2017:
Securities borrowed	$	75,609	$	—	$	75,609	$	(73,600	)	$	—		$	2,009
Derivatives	$	5,846	$	—	$	5,846	$	—		$	—		$	5,846
Long exchange-traded options	$	9,368	$	—	$	9,368	$	—		$	—		$	9,368
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 September 30, 2017 and December 31, 2016 was as follows:



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Liabilities Presented in the Statement of Financial Condition		Financial Instruments			Cash Collateral Pledged			Net Amount
	(in thousands)
September 30, 2017:
Securities loaned	$	61,719	$	—	$	61,719	$	(61,719	)	$	—		$	—
Derivatives	$	6,600	$	—	$	6,600	$	—		$	(6,367	)	$	233
Short exchange-traded options	$	13,272	$	—	$	13,272	$	—		$	—		$	13,272
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:



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

	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	445,176	$	74	$	445,250	$	337,525	$	—	$	337,525
Investments	770,953		28,982		799,935		550,850		23,226		574,076
Other assets	5,850		605		6,455		44,570		—		44,570
Total assets	$	1,221,979	$	29,661	$	1,251,640	$	932,945	$	23,226	$	956,171

Liabilities	$	591,231	$	2,569	$	593,800	$	292,800	$	—	$	292,800
Redeemable non-controlling interest	415,761		493		416,254		384,294		—		384,294
Partners' capital attributable to AB Unitholders	214,146		26,599		240,745		221,229		23,226		244,455
Non-redeemable non-controlling interests in consolidated entities	841		—		841		34,622		—		34,622
Total liabilities, redeemable non-controlling interest and partners' capital	$	1,221,979	$	29,661	$	1,251,640	$	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 September 30, 2017 and December 31, 2016 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient		Total
September 30, 2017:
Investments - VIEs	$	663,348	$	105,627	$	1,897	$	81	$	770,953
Investments - VOEs	6,830		22,031		121		—		28,982
Derivatives - VIEs	68		1,668		—		—		1,736
Derivatives - VOEs	17		63		—		—		80
Total assets measured at fair value	$	670,263	$	129,389	$	2,018	$	81	$	801,751

Short equities - VIEs	$	583,491	$	—	$	—	$	—	$	583,491
Derivatives - VIEs	104		2,564		—		—		2,668
Derivatives - VOEs	7		128		—		—		135
Total liabilities measured at fair value	$	583,602	$	2,692	$	—	$	—	$	586,294

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 September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(in thousands)

Balance as of beginning of period	$	2,797		$	13,108		$	5,741		$	—
Impact of adoption of ASU 2015-02	—			—			—			14,740
Deconsolidated funds	—			(1,403		)	(6,697		)	(1,403		)
Transfers (out) in	(35		)	(23,566		)	378			(24,881		)
Purchases	346			640			5,358			996
Sales	(1,148		)	(278		)	(3,045		)	(786		)
Realized gains (losses), net	5			15			1			(24		)
Unrealized gains (losses), net	52			14,243			269			14,120
Accrued discounts	1			—			13			(3		)
Balance as of end of period	$	2,018		$	2,759		$	2,018		$	2,759

Schedule of Offsetting of Derivative Assets

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



	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Assets Presented in the Statement of Financial Condition		Financial Instruments		Cash Collateral Received			Net Amount
	(in thousands)
September 30, 2017:
Derivatives - VIEs	$	16,767	$	—	$	16,767	$	—	$	(186	)	$	16,581
Derivatives - VOEs	$	80	$	—	$	80	$	—	$	(12	)	$	68
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 September 30, 2017 and December 31, 2016 was as follows:



	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Condition		Net Amounts of Liabilities Presented in the Statement of Financial Condition		Financial Instruments		Cash Collateral Pledged			Net Amount
	(in thousands)
September 30, 2017:
Derivatives - VIEs	$	2,668	$	—	$	2,668	$	—	$	(2,668	)	$	—
Derivatives - VOEs	$	135	$	—	$	135	$	—	$	(34	)	$	101
December 31, 2016:
Derivatives - VIEs	$	2,081	$	—	$	2,081	$	—	$	(2,081	)	$	—