Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

Computation of Effective Income Tax Rate and Changes in Components of Income Tax

Holding's income tax is computed by multiplying certain AllianceBernstein qualifying revenues (primarily U.S. investment advisory fees and SCB commissions) by Holding's ownership interest in AllianceBernstein, multiplied by the 3.5% tax rate. Holding's effective tax rate increased during the three months and nine months ended September 30, 2012 compared to the corresponding periods in 2011 due to AllianceBernstein's net income decreasing at a greater rate than the decrease in its qualifying revenues, which resulted from AllianceBernstein's third quarter 2012 real estate charge.

	Three Months Ended September 30,									Nine Months Ended September 30,
	2012			2011			% Change			2012			2011			% Change
	(in thousands)

Net (loss) income attributable to AllianceBernstein Unitholders	$	(44,246	)	$	90,981			n/m		$	117,217		$	341,592			(65.7	)%
Multiplied by: weighted average equity ownership interest (see note)		37.5	%		37.5	%					37.5	%		37.4	%
Equity in net (loss) income attributable to AllianceBernstein Unitholders	$	(16,595	)	$	34,074			n/m		$	43,915		$	127,877			(65.7	)

AllianceBernstein qualifying revenues	$	492,996		$	533,542			(7.6	) %	$	1,428,600		$	1,633,584			(12.5	)
Multiplied by: weighted average equity ownership interest (see note)		37.5	%		37.5	%					37.5	%		37.4	%
Multiplied by: federal tax		3.5	%		3.5	%					3.5	%		3.5	%
Income taxes	$	6,547		$	7,071			(7.4	)	$	19,019		$	21,682			(12.3	)

Effective tax rate		39.5	%		20.8	%					43.3	%		17.0	%

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Note: Equity in net (loss) income attributable to AllianceBernstein Unitholders and income taxes are recorded monthly using equity ownership interest as of each month-end, whereas the weighted average ownership interest shown in the table represents our quarter-end ownership interest. Accordingly, the calculation above will not compute to actual amounts recorded.