Consolidated Company-Sponsored Investment Funds (Tables)

12 Months Ended

Dec. 31, 2017

Variable Interest Entity [Line Items]

Fair Value of Assets and Liabilities Measured on a Recurring Basis

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



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
December 31, 2017:
Money markets	$	62,071	$	—	$	—	$	—	$	—	$	62,071
Securities segregated (U.S. Treasury Bills)			816,350		—		—		—		816,350
Derivatives	948		10,671		—		—		—		11,619
Investments
Trading
U.S. Treasury Bills	—		52,609		—		—		—		52,609
Equity securities	208,910		6		117		81		—		209,114
Fixed income securities	73,172		11,186		—		13		—		84,371
Long exchange-traded options	4,981		—		—		—		—		4,981
Limited partnership hedge funds⁽²⁾	—		—		—		—		37,199		37,199
Private equity	—		—		954		37,232		—		38,186
Time deposits⁽³⁾	—		—		—		—		5,138		5,138
Other
Available-for-sale	99		—		—		—		—		99
Other investments⁽²⁾⁽⁴⁾	—		—		—		—		11,892		11,892
Total investments	287,162		63,801		1,071		37,326		54,229		443,589
Total assets measured at fair value	$	350,181	$	890,822	$	1,071	$	37,326	$	54,229	$	1,333,629

Securities sold not yet purchased
Short equities – corporate	$	16,376	$	—	$	—	$	—	$	—	$	16,376
Short exchange-traded options	13,585		—		—		—		—		13,585
Derivatives	2,540		11,783		—		—		—		14,323
Contingent payment arrangements	—		—		10,855		—		—		10,855



Total liabilities measured at fair value	$	32,501	$	11,783	$	10,855	$	—	$	—	$	55,139

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.

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 private equity and trading equity securities, is as follows:



	December 31, 2017			December 31, 2016
	(in thousands)
Balance as of beginning of period	$	5,023		$	16,148
Reclassification (see below)	—			(9,532		)
Purchases	—			—
Sales	—			—
Realized gains, net	—			—
Unrealized (losses) gains, net	(3,952		)	(1,593		)
Balance as of end of period	$	1,071		$	5,023

Offsetting of Derivative Assets

Offsetting of assets as of December 31, 2017 and 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)
December 31, 2017
Securities borrowed	$	85,371	$	—	$	85,371	$	(82,353	)	$	—		$	3,018
Derivatives	$	11,619	$	—	$	11,619	$	—		$	(519	)	$	11,100
Long exchange-traded options	$	4,981	$	—	$	4,981	$	—		$	—		$	4,981
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

Offsetting of Derivative Liabilities

Offsetting of liabilities as of December 31, 2017 and 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)
December 31, 2017
Securities loaned	$	37,960	$	—	$	37,960	$	(37,922	)	$	—		$	38
Derivatives	$	14,323	$	—	$	14,323	$	—		$	(8,794	)	$	5,529
Short exchange-traded options	$	13,585	$	—	$	13,585	$	—		$	—		$	13,585
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 [Member]

Variable Interest Entity [Line Items]

Balances of Consolidated VIEs and VOEs Included In Condensed Consolidated Statements of Financial Condition

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



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

	VIEs		VOEs			Total		VIEs		VOEs		Total
Cash and cash equivalents	$	326,158	$	360		$	326,518	$	337,525	$	—	$	337,525
Investments	1,189,835		56,448			1,246,283		547,650		23,226		570,876
Other assets	33,931		1,466			35,397		48,480		—		48,480
Total assets	$	1,549,924	$	58,274		$	1,608,198	$	933,655	$	23,226	$	956,881

Liabilities	$	695,997	$	2,104		$	698,101	$	293,510	$	—	$	293,510
Redeemable non-controlling interest	596,241		(18		)	596,223		384,294		—		384,294
Partners' capital attributable to AB Unitholders	256,929		56,188			313,117		221,229		23,226		244,455
Non-redeemable non-controlling interests in consolidated entities	757		—			757		34,622		—		34,622
Total liabilities, redeemable non-controlling interest and partners' capital	$	1,549,924	$	58,274		$	1,608,198	$	933,655	$	23,226	$	956,881

Fair Value of Assets and Liabilities Measured on a Recurring Basis

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



	Level 1		Level 2		Level 3		NAV Expedient		Total
December 31, 2017:
Investments - VIEs	$	1,053,824	$	133,796	$	2,205	$	10	$	1,189,835
Investments - VOEs	5,491		50,898		59		—		56,448
Derivatives - VIEs	252		30,384		—		—		30,636
Derivatives - VOEs	49		251		—		—		300
Total assets measured at fair value	$	1,059,616	$	215,329	$	2,264	$	10	$	1,277,219

Short equities - VIEs	$	669,258	$	—	$	—	$	—	$	669,258
Derivatives - VIEs	421		21,820		—		—		22,241
Derivatives - VOEs	12		619		—		—		631
Total liabilities measured at fair value	$	669,691	$	22,439	$	—	$	—	$	692,130

December 31, 2016:
Investments - VIEs	$	341,849	$	199,978	$	5,741	$	82	$	547,650
Investments - VOEs	10,188		12,061		—		977		23,226
Derivatives - VIEs	58		5,649		—		—		5,707
Total assets measured at fair value	$	352,095	$	217,688	$	5,741	$	1,059	$	576,583

Short equities - VIEs	$	248,419	$	—	$	—	$	—	$	248,419
Derivatives - VIEs	67		2,724		—		—		2,791
Total liabilities measured at fair value	$	248,486	$	2,724	$	—	$	—	$	251,210

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 within consolidated company-sponsored investment funds was as follows:



	December 31,
	2017			2016
	(in thousands)

Balance as of beginning of period	$	5,741		$	—
Impact of adoption of ASU 2015-02	—			14,740
Deconsolidated funds	(7,267		)	(368		)
Transfers (out) in	480			(24,605		)
Purchases	6,127			3,032
Sales	(3,120		)	(5,007		)
Realized gains (losses), net	2			(3,391		)
Unrealized gains (losses), net	286			21,355
Accrued discounts	15			(15		)
Balance as of end of period	$	2,264		$	5,741

Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of December 31, 2017 and 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)
December 31, 2017:
Derivatives - VIEs	$	30,636	$	—	$	30,636	$	—	$	(194	)	$	30,442
Derivatives - VOEs	$	300	$	—	$	300	$	—	$	(37	)	$	263
December 31, 2016:
Derivatives - VIEs	$	5,707	$	—	$	5,707	$	—	$	(461	)	$	5,246

Offsetting of Derivative Liabilities

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of December 31, 2017 and 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)
December 31, 2017:
Derivatives - VIEs	$	22,241	$	—	$	22,241	$	—	$	(2,884	)	$	19,357
Derivatives - VOEs	$	631	$	—	$	631	$	—	$	(228	)	$	403
December 31, 2016:
Derivatives - VIEs	$	2,791	$	—	$	2,791	$	—	$	(2,791	)	$	—