HELD-FOR-SALE

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Assets 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 “Initial Plan”). In the Initial Plan, AB would own a 49% interest in the joint venture and Société Générale would own a 51% interest in the joint venture, with an option to reach 100% ownership after five years.

During the fourth quarter of 2023, AB and Société Générale negotiated a revised plan (the “Revised Plan”) to form a North American joint venture (the “NA JV”) and an International joint venture (the “International JV”). Under the Revised plan, AB would own a majority economic and voting interest in the NA JV and a 49% economic and voting interest in the International JV. The Revised Plan, as compared to the Initial Plan, will not have a significant impact on results of operations or financial condition.

Société Générale will continue to have an option to reach 100% ownership in the International JV after five years and AB would have an option to sell its share in both joint ventures to Société Générale, subject to regulatory approval. The consummation of the joint ventures is subject to customary closing conditions, including regulatory clearances. The closings are expected to occur in the first half of 2024. The structure of the Board of Directors of the NA JV Holding Company, which will include two independent directors, precludes AB from controlling the Board and therefore from having a controlling financial interest in the entity. Upon review of the consolidation guidance under U.S. GAAP, AB has concluded they will not consolidate the NA JV Holding Company and will maintain an equity method investment in both the NA JV and the International JV Holding companies.

Accordingly, 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 $7 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 years ended December 31, 2023 and as of December 31, 2022, respectively. Approximately $7 million in costs to sell have been paid as of December 31, 2023.

The following table summarizes the assets and liabilities classified as held-for-sale on the Company’s consolidated balance sheets:


	December 31,
	2023 (1)		2022 (1)
	(in millions)
Cash and cash equivalents	$	153	$	159
Broker-dealer related receivables	107		74
Trading securities, at fair value	17		25
Goodwill and other intangible assets ,net	164		175
Other assets (2)	124		129
Total assets held-for-sale	$	565	$	562


Broker-dealer related payables	$	39	$	33
Customers related payables	17		10
Other liabilities	97		65
Total liabilities held-for-sale	$	153	$	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 decrease of $7 million and $7 million, as of December 31, 2023 and 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.