HELD-FOR-SALE

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

HELD-FOR-SALEAssets and liabilities related to the business classified as HFS are separately reported in the Consolidated Balance Sheets beginning in the period in which the business is classified as HFS.

AB Bernstein Research Services

On November 22, 2022, AB and Société Générale, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. The consummation of the joint venture is subject to customary closing conditions, including regulatory clearances. The closing is expected to occur before the end of 2023. Upon closing, AB will own a 49% interest in the joint venture and Société Générale will own a 51% interest in the joint venture, with an option to reach 100% ownership after five years. The assets and liabilities of AB's research services business recorded at fair value, less cost to sell have been classified as held-for-sale in our Consolidated Financial Statements. As a result of classifying these assets as held-for-sale, AB recognized a non-cash valuation adjustment of $3 million and $7 million on the consolidated statement of income, to recognize the net carrying value at lower of cost or fair value, less costs to sell for the three months ended as of March 31, 2023 and as of December 31, 2022, respectively.

The following table summarizes the assets and liabilities classified as held-for-sale as of March 31, 2023 and December 31, 2022 on the Company’s consolidated balance sheet:


	March 31, 2023 (1)		December 31, 2022 (1)
	(in millions)
Cash and cash equivalents	$	154	$	159
Broker-dealer related receivables	94		74
Trading securities, at fair value	16		25
Goodwill and other intangible assets ,net	165		175
Other assets (2)	242		129
Total assets held-for-sale	$	671	$	562


Broker-dealer related payables	$	43	$	33
Customers related payables	32		10
Other liabilities	83		65
Total liabilities held-for-sale	$	158	$	108

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(1) The assets and liabilities classified as held-for-sale are reported within our Investment Management & Research segment.

(2) Other assets includes a valuation adjustment of $(10) million and $(7) million, as of March 31, 2023 and December 31, 2022, respectively.

These assets and liabilities are reported under the Investment Management & Research segment. The Company has determined that AB’s exit from the research business did not represent a strategic shift that had a major effect on AB’s or the Company’s consolidated results of operations, and therefore, are not classified as discontinued operations.