DISCONTINUED OPERATIONS

Effective December 31, 2018, the Company and its subsidiaries transferred all economic interests in the business of AB to a newly created entity, Alpha Unit Holdings, LLC (“Alpha”). The Company distributed all equity interests in Alpha to AXA Equitable Financial Services, LLC, a wholly-owned subsidiary of Holdings. The AB transfer and subsequent distribution of Alpha equity interests (“the AB Business Transfer”) removed the authority to control the business of AB and as such, the results of AB are reflected in the Company’s consolidated financial statements as discontinued operations and are presented in Net income (loss) from discontinued operations, net of taxes. Intercompany transactions between the Company and AB prior to the AB Business Transfer have been eliminated. Ongoing service transactions with AB are reported as related party transactions as further described in Note 10.

The table below presents AB’s revenues recognized in three and six months ended June 30, 2018, disaggregated by category:



	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
	(in millions)
Investment management and service fees:
Base fees	$	561	$	1,129
Performance-based fees	35		41
Research services	107		221
Distribution services	105		213
Shareholder services	19		39
Other	5		11
Total investment management and service fees	$	832	$	1,654

The following table presents the amounts related to the Net income of AB that has been reflected in Discontinued Operations:



	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
	(in millions)
REVENUES
Net derivative gains (losses)	$	—		$	2
Net investment income (loss)	6			45
Investment management and service fees	817			1,620
Other income	1			3
Total revenues	824			1,670

BENEFITS AND OTHER DEDUCTIONS
Compensation and benefits	360			704
Distribution-related payments	106			216
Interest expense	2			4
Other operating costs and expenses	171			360
Total benefits and other deductions	639			1,284
Income from discontinued operations, before income taxes	185			386
Income tax expense	(8		)	(25		)
Net income from discontinued operations, net of taxes	177			361
Less: Net income attributable to the noncontrolling interest	(156		)	(311		)
Net income from discontinued operations, net of taxes and noncontrolling interest	$	21		$	50