Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

AB Holding is a publicly-traded partnership (“PTP”) for federal tax purposes and, accordingly, is not subject to federal or state corporate income taxes. However, AB Holding is subject to the 4.0% New York City unincorporated business tax (“UBT”), net of credits for UBT paid by AB, and to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. AB Holding’s partnership gross income is derived from its interest in AB.

AB Holding’s federal income tax is computed by multiplying certain AB qualifying revenues by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate. Certain AB qualifying revenues are primarily U.S. investment advisory fees, research payments and brokerage commissions. AB Holding Units in AB’s consolidated rabbi trust are not considered outstanding for purposes of calculating AB Holding’s ownership interest in AB.

	Three Months Ended September 30,								Nine Months Ended September 30,
	2024			2023			% Change		2024			2023			% Change
	(in thousands)								(in thousands)
Net income attributable to AB Unitholders	$	345,972		$	167,404		106.7	%	$	873,471		$	537,292		62.6	%
Multiplied by: weighted average equity ownership interest	39.4		%	39.3		%			39.5		%	39.3		%
Equity in net income attributable to AB Unitholders	$	136,374		$	65,761		107.4		$	345,360		$	211,264		63.5
AB qualifying revenues	$	713,242		$	689,323		3.5		$	2,099,807		$	2,059,866		1.9
Multiplied by: weighted average equity ownership interest for calculating tax	35.7		%	35.6		%			36.4		%	35.7		%
Multiplied by: federal tax	3.5		%	3.5		%			3.5		%	3.5		%
Federal income taxes	8,924			8,593					26,728			25,713
State income taxes	255			177					692			565
Total income taxes	$	9,179		$	8,770		4.7	%	$	27,420		$	26,278		4.3	%
Effective tax rate	6.7		%	13.3		%			7.9		%	12.4		%

In order to preserve AB Holding’s status as a PTP for federal income tax purposes, management ensures that AB Holding does not directly or indirectly (through AB) engage in a substantial new line of business. If AB Holding were to lose its status as a PTP, it would be subject to corporate income tax, which would reduce materially AB Holding’s net income and its quarterly distributions to AB Holding Unitholders.