Consolidated Company-Sponsored Investment Funds (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018 was as follows (in thousands):

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
December 31, 2019:
Money markets	$	126,401	$	—	$	—	$	—	$	—	$	126,401
Securities segregated (U.S. Treasury Bills)	—		1,094,866		—		—		—		1,094,866
Derivatives	939		12,552		—		—		—		13,491
Investments
Equity securities	170,946		8,952		119		314		—		180,331
Long exchange-traded options	6,931		—		—		—		—		6,931
Limited partnership hedge       funds(2)	—		—		—		—		47,361		47,361
Time deposits(3)	—		—		—		—		18,281		18,281
Other investments	5,883		—		—		—		8,007		13,890
Total investments	183,760		8,952		119		314		73,649		266,794
Total assets measured at fair value	$	311,100	$	1,116,370	$	119	$	314	$	73,649	$	1,501,552
Securities sold not yet purchased
Short equities – corporate	$	17,809	$	—	$	—	$	—	$	—	$	17,809
Short exchange-traded options	12,348		—		—		—		—		12,348
Derivatives	871		18,388		—		—		—		19,259
Contingent payment arrangements	—		—		22,911		—		—		22,911
Total liabilities measured at fair value	$	31,028	$	18,388	$	22,911	$	—	$	—	$	72,327

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
December 31, 2018:
Money markets	$	102,888	$	—	$	—	$	—	$	—	$	102,888
Securities segregated (U.S. Treasury Bills)	—		1,169,554		—		—		—		1,169,554
Derivatives	1,594		15,485		—		—		—		17,079
Investments
U.S. Treasury Bills	—		392,424		—		—		—		392,424
Equity securities	209,414		8,372		142		315		—		218,243
Long exchange-traded options	2,568		—		—		—		—		2,568
Limited partnership hedge       funds(2)	—		—		—		—		80,699		80,699
Time deposits(3)	—		—		—		—		8,783		8,783
Other investments	4,269		—		—		—		7,358		11,627
Total investments	216,251		400,796		142		315		96,840		714,344
Total assets measured at fair value	$	320,733	$	1,585,835	$	142	$	315	$	96,840	$	2,003,865
Securities sold not yet purchased
Short equities – corporate	$	4,841	$	—	$	—	$	—	$	—	$	4,841
Short exchange-traded options	3,782		—		—		—		—		3,782
Derivatives	2,534		12,288		—		—		—		14,822
Contingent payment arrangements	—		—		7,336		—		—		7,336
Total liabilities measured at fair value	$	11,157	$	12,288	$	7,336	$	—	$	—	$	30,781

⁽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.

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, 2019			December 31, 2018
	(in thousands)
Balance as of beginning of period	$	142		$	1,071
Purchases	—			—
Sales	—			—
Realized gains (losses), net	—			—
Unrealized (losses) gains, net	(23		)	(929		)
Balance as of end of period	$	119		$	142

Offsetting of Derivative Assets

Offsetting of assets as of December 31, 2019 and 2018 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, 2019
Securities borrowed	$	38,993	$	—	$	38,993	$	(38,993	)	$	—		$	—
Derivatives	$	13,491	$	—	$	13,491	$	—		$	(251	)	$	13,240
Long exchange-traded options	$	6,931	$	—	$	6,931	$	—		$	—		$	6,931
December 31, 2018
Securities borrowed	$	64,856	$	—	$	64,856	$	(64,217	)	$	—		$	639
Derivatives	$	17,079	$	—	$	17,079	$	—		$	(4,831	)	$	12,248
Long exchange-traded options	$	2,568	$	—	$	2,568	$	—		$	—		$	2,568

Offsetting of Derivative Liabilities

Offsetting of liabilities as of December 31, 2019 and 2018 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, 2019
Securities loaned	$	—	$	—	$	—	$	—		$	—		$	—
Derivatives	$	19,259	$	—	$	19,259	$	—		$	(4,276	)	$	14,983
Short exchange-traded options	$	12,348	$	—	$	12,348	$	—		$	—		$	12,348
December 31, 2018
Securities loaned	$	59,526	$	—	$	59,526	$	(59,526	)	$	—		$	—
Derivatives	$	14,822	$	—	$	14,822	$	—		$	(4,458	)	$	10,364
Short exchange-traded options	$	3,782	$	—	$	3,782	$	—		$	—		$	3,782

Consolidated company-sponsored investment funds

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 consolidated statements of financial condition were as follows:

	December 31, 2019						December 31, 2018
	(in thousands)
	VIEs		VOEs		Total		VIEs		VOEs		Total
Cash and cash equivalents	$	9,623	$	1,810	$	11,433	$	11,880	$	1,238	$	13,118
Investments	404,624		176,380		581,004		217,840		133,856		351,696
Other assets	9,618		10,192		19,810		6,024		16,816		22,840
Total assets	$	423,865	$	188,382	$	612,247	$	235,744	$	151,910	$	387,654
Liabilities	$	12,147	$	18,870	$	31,017	$	5,215	$	17,395	$	22,610
Redeemable non-controlling interest	273,219		52,342		325,561		117,523		28,398		145,921
Partners' capital attributable to AB Unitholders	138,499		117,170		255,669		113,006		106,117		219,123
Total liabilities, redeemable non-controlling interest and partners' capital	$	423,865	$	188,382	$	612,247	$	235,744	$	151,910	$	387,654

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, 2019 and 2018 was as follows (in thousands):

	Level 1		Level 2		Level 3		Total
December 31, 2019:
Investments - VIEs	$	28,270	$	375,559	$	795	$	404,624
Investments - VOEs	104,069		72,252		59		176,380
Derivatives - VIEs	139		4,694		—		4,833
Derivatives - VOEs	76		4,263		—		4,339
Total assets measured at fair value	$	132,554	$	456,768	$	854	$	590,176
Derivatives - VIEs	$	835	$	3,724	$	—	$	4,559
Derivatives - VOEs	101		4,982		—		5,083
Total liabilities measured at fair value	$	936	$	8,706	$	—	$	9,642
December 31, 2018:
Investments - VIEs	$	22,149	$	187,626	$	8,065	$	217,840
Investments - VOEs	68,063		65,485		308		133,856
Derivatives - VIEs	1,486		1,924		—		3,410
Derivatives - VOEs	124		3,692		—		3,816
Total assets measured at fair value	$	91,822	$	258,727	$	8,373	$	358,922
Derivatives - VIEs	$	72	$	3,819	$	—	$	3,891
Derivatives - VOEs	197		3,633		—		3,830
Total liabilities measured at fair value	$	269	$	7,452	$	—	$	7,721

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,
	2019			2018
	(in thousands)
Balance as of beginning of period	$	8,373		$	2,264
Transfers (out) in	(9,445		)	259
Purchases	9,213			9,354
Sales	(7,467		)	(3,086		)
Realized gains (losses), net	14			(100		)
Unrealized gains (losses), net	143			(331		)
Accrued discounts	23			13
Balance as of end of period	$	854		$	8,373

Offsetting of Derivative Assets

Offsetting of derivative assets of consolidated company-sponsored investment funds as of December 31, 2019 and 2018 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, 2019:
Derivatives - VIEs	$	4,833	$	—	$	4,833	$	—	$	(1,631	)	$	3,202
Derivatives - VOEs	$	4,339	$	—	$	4,339	$	—	$	(534	)	$	3,805
December 31, 2018:
Derivatives - VIEs	$	3,410	$	—	$	3,410	$	—	$	(856	)	$	2,554
Derivatives - VOEs	$	3,816	$	—	$	3,816	$	—	$	(225	)	$	3,591

Offsetting of Derivative Liabilities

Offsetting of derivative liabilities of consolidated company-sponsored investment funds as of December 31, 2019 and 2018 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, 2019:
Derivatives - VIEs	$	4,559	$	—	$	4,559	$	—	$	(3,155	)	$	1,404
Derivatives - VOEs	$	5,083	$	—	$	5,083	$	—	$	(1,201	)	$	3,882
December 31, 2018:
Derivatives - VIEs	$	3,891	$	—	$	3,891	$	—	$	(829	)	$	3,062
Derivatives - VOEs	$	3,830	$	—	$	3,830	$	—	$	(547	)	$	3,283