Full Year Diluted EPS of $16.87, or $16.58 as adjusted
$4.324 Trillion in assets under management at December 31, 2013,
up 14% year-over-year
BlackRock Board of Directors Approves 15% Increase in Quarterly
Dividend to $1.93
-
$40.5 billion of long-term net inflows for the fourth quarter and
$117.1 billion for 2013
-
13% operating income growth (10% as adjusted) from the fourth quarter
of 2012 and full year growth of 9% (13% as adjusted)
-
Improved operating margin to 40.8% (42.7% as adjusted) for the quarter
and to 37.9% (41.4% as adjusted) for the year
-
24% diluted EPS growth from the fourth quarter of 2012 and full year
growth of 22% (21% as adjusted)
-
Consistent capital management with $250 million of quarterly share
repurchases, aggregating $1 billion for the year
-
Board of Directors has declared a quarterly cash dividend of $1.93 per
share of common stock, payable March 24, 2014 to shareholders of
record at the close of business on March 7, 2014
NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK) today reported full year diluted EPS of
$16.87, up 22% from 2012. Fourth quarter 2013 diluted EPS of $4.86 was
up 24% from the fourth quarter of 2012. Revenue was up 9% from both the
full year 2012 and the fourth quarter of 2012, reflecting growth in
markets, long-term net inflows and strength in performance fees and BlackRock
Solutions®. Full year 2013 operating income of
$3.9 billion was up 9% from 2012. Fourth quarter 2013 operating income
of $1.1 billion was up 13% from the fourth quarter of 2012. Operating
margin of 37.9% was up 20 basis points for the full year 2013. Fourth
quarter operating margin of 40.8% was up 120 basis points from the
fourth quarter of 2012.
The BlackRock Board of Directors has declared a quarterly cash dividend
of $1.93 per share of common stock, payable March 24, 2014 to
shareholders of record at the close of business on March 7, 2014. Since
inception of its dividend, BlackRock’s per share dividend has increased
each year except 2009, when it was unchanged, and has grown at a
compounded annual rate of 24%.
As adjusted results(1):
Full year 2013 diluted EPS of $16.58 was up 21% from 2012. Fourth
quarter diluted EPS of $4.92 was up 24% from a year ago. Full year 2013
operating income of $4.0 billion was up 13% from 2012. Fourth quarter
2013 operating income of $1.1 billion was up 10% from the fourth quarter
of 2012. Operating margin of 41.4% was up 100 basis points for the full
year. Fourth quarter 2013 operating margin of 42.7% was up 10 basis
points from the fourth quarter of 2012.
“2013 was a strong year for BlackRock, with 21% growth in as adjusted
EPS and 13% growth in as adjusted operating income, fueled by long-term
net inflows of over $117 billion,” commented Laurence D. Fink, Chairman
and CEO of BlackRock. “Throughout the year we demonstrated the
collective strength and stability of our diversified, multi-client
platform. We saw growth across all of our businesses – Retail, iShares®,
Institutional and BlackRock Solutions.”
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(Amounts in millions, except
|
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Q4
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|
Q4
|
|
|
|
Q3
|
|
|
|
Full Year
|
|
|
|
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per share data)
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2013
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2012
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Change
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2013
|
|
Change
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2013
|
|
|
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2012
|
|
|
Change
|
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AUM
|
|
$
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4,324,088
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|
|
$
|
3,791,588
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|
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14
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%
|
|
$
|
4,096,356
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|
|
6
|
%
|
|
$
|
4,324,088
|
|
|
$
|
3,791,588
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|
|
14
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%
|
|
GAAP basis:
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|
|
|
|
|
|
|
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Revenue
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$
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2,777
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|
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$
|
2,539
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|
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9
|
%
|
|
$
|
2,472
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|
|
12
|
%
|
|
$
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10,180
|
|
|
$
|
9,337
|
|
|
9
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%
|
|
Operating income
|
|
$
|
1,133
|
|
|
$
|
1,005
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|
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13
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%
|
|
$
|
966
|
|
|
17
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%
|
|
$
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3,857
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|
|
$
|
3,524
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|
|
9
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%
|
|
Operating margin
|
|
|
40.8
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%
|
|
|
39.6
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%
|
|
120 bps
|
|
|
39.1
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%
|
|
170 bps
|
|
|
37.9
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%
|
|
|
37.7
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%
|
|
20 bps
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Net income(2)
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$
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841
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|
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$
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690
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|
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22
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%
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$
|
730
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|
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15
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%
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$
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2,932
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|
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$
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2,458
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|
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19
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%
|
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Diluted EPS
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|
$
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4.86
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|
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$
|
3.93
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|
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24
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%
|
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$
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4.21
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15
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%
|
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$
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16.87
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|
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$
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13.79
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22
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%
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Weighted average diluted shares
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|
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173.0
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|
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175.2
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(1
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%)
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173.4
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-
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%
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173.8
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178.0
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(2
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%)
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As Adjusted:
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Operating income(1)
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$
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1,143
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$
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1,041
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10
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%
|
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$
|
978
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|
|
17
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%
|
|
$
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4,024
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|
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$
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3,574
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|
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13
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%
|
|
Operating margin(1)
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|
|
42.7
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%
|
|
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42.6
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%
|
|
10 bps
|
|
|
41.2
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%
|
|
150 bps
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|
|
41.4
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%
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|
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40.4
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%
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100 bps
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Net income(1) (2)
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$
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851
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$
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695
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22
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%
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$
|
672
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|
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27
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%
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$
|
2,882
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|
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$
|
2,438
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18
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%
|
|
Diluted EPS(1)
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$
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4.92
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|
|
$
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3.96
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24
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%
|
|
$
|
3.88
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27
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%
|
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$
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16.58
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|
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$
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13.68
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21
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%
|
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|
|
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|
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(1) See notes (a) through (f) to the Condensed Consolidated
Statements of Income and Supplemental Information below for more
information on as adjusted items and the reconciliation to GAAP.
(2) Net
income represents net income attributable to BlackRock, Inc.
“Investment performance remains our highest priority, and BlackRock’s
strong five-year track record in fixed income positions us well for
growth in 2014. The changes we made to our U.S. Fundamental Active
Equity team are paying dividends, with the four largest funds under new
management all showing material performance improvement.
“Expanding our retail presence was a key strategic priority entering
2013. We continued to raise the profile of our BlackRock and iShares
brands, evolve our product set and deepen our distribution
relationships, driving results across our platform.
“We grew our Global Retail business organically by 10% with $38.8
billion of net inflows for the year, significantly outpacing our 3%
organic growth in 2012. U.S. Retail flows were driven by investors
seeking outcome-oriented solutions, including unconstrained fixed
income, bundled multi-asset and alternative products, led by our
high-performing flagship Strategic Income Opportunities fund, which
raised net inflows of $6.9 billion in 2013. International Retail organic
growth of 15% for the year showcased the progress we’ve made in
diversifying our global offering, contributing nearly half of Retail
flows in 2013.
“Increasing longevity and insufficient returns in traditional retirement
savings vehicles have created a duration gap between retirement savings
and actual needs. BlackRock continues to partner with clients to help
them prepare more effectively for retirement. This dialogue helped drive
$30 billion of defined contribution net inflows this year, increasing
our total AUM in this channel to more than $525 billion. LifePath®,
the industry’s first target-date product, was a critical driver of that
success, surpassing $100 billion in assets managed on behalf of more
than eight million individual investors.
“2013 marked BlackRock’s 25th anniversary, and though we have
grown substantially over that time, we remain faithful to our founding
principles and continue to challenge ourselves to meet the constantly
evolving needs of our clients. Our experience over these past 25 years
reinforces the critical importance of focusing on our role as a
fiduciary to our clients. Especially in today’s regulatory climate, it
is vital that every employee of BlackRock look to do the right thing in
every situation every day.
“Finally, I want to thank BlackRock’s employees for their dedication and
outstanding contribution to the success of the firm this past
year. Looking ahead to 2014, we are confident that we have positioned
BlackRock to meet investor needs in all market environments, and look
forward to continuing to deliver for our clients and shareholders.”
Fourth Quarter Business Highlights
The following table presents long-term net flows, AUM, base fees and
business mix by client and product type:
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(Dollar amounts in millions)
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Q4 2013
Long-term
Net flows
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|
December 31, 2013
AUM
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|
Q4 2013
Base Fees(1)
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|
December 31, 2013
AUM
% of Total
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|
Q4 2013
Base Fees(1)
% of Total
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Retail
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$
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16,587
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$
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487,777
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$
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753
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12
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%
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35
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%
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iShares
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19,089
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914,372
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780
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23
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%
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35
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%
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|
Institutional:
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|
|
|
|
|
|
|
|
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|
|
Active
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|
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8,002
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|
|
|
932,410
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|
|
462
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23
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%
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|
21
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%
|
|
Index
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|
|
(3,202
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)
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|
|
1,677,650
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|
|
208
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|
42
|
%
|
|
9
|
%
|
|
Total institutional
|
|
|
4,800
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|
|
|
2,610,060
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|
|
670
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|
65
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%
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|
30
|
%
|
|
Total long-term
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|
$
|
40,476
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|
|
$
|
4,012,209
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|
$
|
2,203
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|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
(Dollar amounts in millions)
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|
Q4 2013
Long-term
Net flows
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|
December 31, 2013
AUM
|
|
Q4 2013
Base Fees(1)
|
|
December 31, 2013
AUM
% of Total
|
|
Q4 2013
Base Fees(1)
% of Total
|
|
Equity
|
|
$
|
24,676
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|
|
$
|
2,317,695
|
|
$
|
1,245
|
|
57
|
%
|
|
57
|
%
|
|
Fixed income
|
|
|
1,497
|
|
|
|
1,242,186
|
|
|
495
|
|
31
|
%
|
|
22
|
%
|
|
Multi-asset
|
|
|
17,355
|
|
|
|
341,214
|
|
|
276
|
|
9
|
%
|
|
13
|
%
|
|
Alternatives
|
|
|
(3,052
|
)
|
|
|
111,114
|
|
|
187
|
|
3
|
%
|
|
8
|
%
|
|
Total long-term
|
|
$
|
40,476
|
|
|
$
|
4,012,209
|
|
$
|
2,203
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Base fees include investment advisory, administration
fees and securities lending revenue.
Long-term net inflows were positive across all regions, with net inflows
of $31.6 billion, $6.5 billion and $2.4 billion from clients in the
Americas (defined as the United States, Caribbean, Canada, Latin America
and Iberia), EMEA and Asia-Pacific, respectively. At December 31, 2013,
BlackRock managed 61% of long-term AUM for investors in the Americas and
39% for international clients.
A discussion of the Company’s net flows by client type for the fourth
quarter of 2013 is presented below.
-
Retail global long-term net inflows of $16.6 billion
included net inflows of $9.4 billion in the United States and $7.2
billion internationally. Long-term net inflows were diversified across
all asset classes, led by multi-asset class net inflows of $6.5
billion, with particular demand for our Multi-Asset Income fund.
Equity net inflows of $4.8 billion were driven by flows into our
European Equities suite. Fixed income net inflows of $3.9 billion
reflected strong interest in unconstrained fixed income offerings,
such as our Strategic Income Opportunities fund, which had net inflows
of $2.4 billion during the quarter. Alternative mutual funds generated
over $1 billion in net inflows for the third straight quarter, driven
by our Global Long/Short Credit fund.
-
iShares long-term net inflows of $19.1 billion included
U.S. and European iShares net inflows of $11.0 billion and $8.3
billion, respectively. Demand for European equity exposures, global
funds and Japanese equities drove equity net inflows of $24.1 billion,
which were partially offset by fixed income and commodities net
outflows of $3.5 billion and $1.6 billion, respectively. The Core
Series generated $10.9 billion of net inflows, concentrated in U.S.
equity.
-
Institutional active long-term net inflows of $8.0
billion reflected strong flows of $12.1 billion into multi-asset class
products, reflecting demand for our LifePath target-date suite,
including two large open-architecture glidepath assignments.
Multi-asset class net inflows were partially offset by alternatives
net outflows of $2.9 billion, driven by non-core active currency
redemptions and return of capital, and equity net outflows of $1.8
billion.
-
Institutional index long-term net outflows of $3.2
billion were driven by equity and multi-asset class net outflows,
which were partially offset by fixed income net inflows.
Cash management AUM increased 6% with $14.3 billion of net
inflows to $275.6 billion.
Advisory AUM decreased 6% to $36.3 billion due to planned
portfolio liquidations.
Investment performance at
December 31, 2013 is presented in the following table:
|
|
|
|
|
|
|
|
|
Investment performance(1)
|
|
|
|
One-year period
|
|
Three-year period
|
|
Five-year period
|
|
Fixed Income:
|
|
|
|
|
|
|
|
Actively managed products above benchmark or peer median
|
|
|
|
|
|
|
|
Taxable
|
|
77 %
|
|
87 %
|
|
88 %
|
|
Tax-exempt
|
|
53 %
|
|
66 %
|
|
67 %
|
|
Passively managed products within or above applicable tolerance
|
|
97 %
|
|
99 %
|
|
91 %
|
|
Equity:
|
|
|
|
|
|
|
|
Actively managed products above benchmark or peer median
|
|
|
|
|
|
|
|
Fundamental
|
|
51 %
|
|
50 %
|
|
48 %
|
|
Scientific
|
|
94 %
|
|
96 %
|
|
91 %
|
|
Passively managed products within or above applicable tolerance
|
|
94 %
|
|
98 %
|
|
94 %
|
(1) Past performance is not indicative of future results. The
performance information shown is based on preliminary available data.
Please refer to page 16 for performance disclosure detail.
Fourth Quarter Financial Highlights
Comparison of the Fourth Quarter 2013 with the
Fourth Quarter of 2012 GAAP Results
Operating income: Operating income
totaled $1.1 billion compared with $1.0 billion in the prior year.
Revenue of $2.8 billion increased $238 million from the prior year,
primarily due to the following:
-
Investment advisory, administration fees and securities lending
revenue of $2.3 billion increased $199 million from the prior
year due to growth in long-term average AUM. Securities lending fees
totaled $100 million in the current quarter and $113 million in the
prior year quarter. The decrease in securities lending fees primarily
reflected lower spreads consistent with industry trends, partially
offset by an increase in average balances of securities on loan.
-
Performance fees revenue totaled $268 million in the
current quarter compared with $239 million in the fourth quarter of
2012, primarily reflecting strong performance in alternative products.
Both quarters reflected significant fees from the liquidation of
opportunistic funds.
-
BlackRock Solutions and advisory revenue totaled $157
million in the current quarter compared with $136 million in the
fourth quarter of 2012. The current quarter reflected an $18 million
increase in Aladdin® business revenues to
$114 million.
-
Other revenue totaled $53 million in the current quarter
compared with $70 million in the fourth quarter of 2012. The decrease
largely reflected lower earnings from certain strategic investments.
Total operating expenses of $1.6 billion increased $110 million from the
prior year, primarily due to the following:
-
Employee compensation and benefits totaled $925 million
in the current quarter compared with $848 million in the fourth
quarter of 2012. The increase reflected higher headcount and higher
incentive compensation driven by higher operating income.
-
Direct fund expenses totaled $167 million compared with
$151 million in the fourth quarter of 2012. The increase reflected
higher average AUM where BlackRock pays certain nonadvisory expenses
of the funds.
-
General and administration expenses totaled $410 million
in the current quarter compared with $401 million in the fourth
quarter of 2012. The current quarter reflected various lease exit
costs and the fourth quarter of 2012 included a one-time $30 million
contribution to the Company’s bank-managed short-term investment funds
(“STIFs”).
Nonoperating income (expense):
Nonoperating income, net of noncontrolling interests, in the current
quarter of $15 million reflected higher net positive marks compared with
the prior year quarter.
Income tax expense: Income tax
expense totaled $307 million in the current quarter compared with $288
million in the fourth quarter of 2012. The GAAP effective income tax
rate was 26.7% compared with 29.4% for the prior year quarter. The
current quarter GAAP tax rate benefited from certain nonrecurring items.
The fourth quarter of 2012 GAAP tax rate included $20 million of noncash
benefits primarily associated with revaluation of certain deferred tax
liabilities, which have been excluded from the as adjusted results. The
as adjusted effective income tax rate was 26.5% for the current quarter
and 31.4% for the fourth quarter of 2012.
Comparison of the Fourth Quarter 2013 with the
Third Quarter of 2013 GAAP Results
Operating income: Operating income
totaled $1.1 billion compared with $966 million in the prior quarter.
Revenue of $2.8 billion increased $305 million from the prior quarter,
primarily due to the following:
-
Investment advisory, administration fees and securities lending
revenue of $2.3 billion increased $127 million from the prior
quarter due to growth in long-term average AUM. Securities lending
fees totaled $100 million and $99 million in the current quarter and
the third quarter of 2013, respectively. Securities lending fees were
primarily affected by higher average balances of securities on loan
and the overall decline in spreads.
-
Performance fees revenue totaled $268 million in the
current quarter compared with $96 million in the third quarter of
2013. The increase primarily reflected strong performance in
alternative products, a seasonally higher number of funds with
performance measurement locks and a significant fee associated with
the partial liquidation of a closed-end opportunistic mortgage fund.
Total operating expenses of $1.6 billion increased $138 million from the
prior quarter, primarily due to the following:
-
Employee compensation and benefits totaled $925 million
in the current quarter compared with $866 million in the third quarter
of 2013. The increase reflected higher incentive compensation driven
by higher operating income, including higher performance fees.
-
General and administration expenses totaled $410 million
in the current quarter compared with $334 million in the third quarter
of 2013. The increase primarily reflected higher marketing and
promotional costs, various lease exit costs, higher professional
services expenses and other general and administration expenses,
including foreign currency exchange movements.
Nonoperating income (expense):
Nonoperating income, net of noncontrolling interests, in the current
quarter of $15 million reflected higher net positive marks compared with
the third quarter of 2013.
Income tax expense: Income tax
expense totaled $307 million in the current quarter compared with $219
million in the third quarter of 2013. The GAAP effective income tax rate
was 26.7% compared with 23.1% for the third quarter. The current quarter
GAAP tax rate benefited from certain nonrecurring items. The third
quarter of 2013 GAAP tax rate included a $64 million net noncash benefit
primarily related to the revaluation of certain deferred income tax
liabilities, including the effect of legislation enacted in the United
Kingdom and domestic state and local income tax changes, which has been
excluded from the as adjusted results. The as adjusted effective income
tax rate was 26.5% for the current quarter and 29.9% for the third
quarter of 2013.
Teleconference, Webcast and Presentation
Information
Chairman and Chief Executive Officer, Laurence D. Fink, and Chief
Financial Officer, Gary Shedlin, will host a teleconference call for
investors and analysts on Thursday, January 16, 2014 at 8:30 a.m.
(Eastern Time). Members of the public who are interested in
participating in the teleconference should dial, from the United States,
(800) 374-0176, or from outside the United States, (706) 679-8281,
shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID
Number 27105019). A live, listen-only webcast will also be available via
the investor relations section of www.blackrock.com.
Both the teleconference and webcast will be available for replay by
12:30 p.m. (Eastern Time) on Thursday, January 16, 2014 and ending at
midnight on Thursday, January 30, 2014. To access the replay of the
teleconference, callers from the United States should dial
(800) 585-8367 and callers from outside the United States should dial
(404) 537-3406 and enter the Conference ID Number 27105019. To access
the webcast, please visit the investor relations section of www.blackrock.com.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
December 31, 2013, BlackRock’s AUM was $4.324 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of
December 31, 2013, the firm had approximately 11,400 employees in more
than 30 countries and a major presence in key global markets, including
North and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company’s website
at www.blackrock.com.
|
|
|
|
|
|
|
Condensed Consolidated Statements of Income and Supplemental
Information
|
|
|
|
|
|
(Dollar amounts in millions, except per share data), (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
Three Months Ended
|
|
|
|
Ended
|
|
|
|
|
December 31,
|
|
|
|
September 30,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Change
|
|
|
2013
|
|
|
Change
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory, administration fees and securities lending
revenue
|
|
$
|
2,280
|
|
|
$
|
2,081
|
|
|
$
|
199
|
|
|
$
|
2,153
|
|
|
$
|
127
|
|
|
Investment advisory performance fees
|
|
|
268
|
|
|
|
239
|
|
|
|
29
|
|
|
|
96
|
|
|
|
172
|
|
|
BlackRock Solutions and advisory
|
|
|
157
|
|
|
|
136
|
|
|
|
21
|
|
|
|
156
|
|
|
|
1
|
|
|
Distribution fees
|
|
|
19
|
|
|
|
13
|
|
|
|
6
|
|
|
|
19
|
|
|
|
-
|
|
|
Other revenue
|
|
|
53
|
|
|
|
70
|
|
|
|
(17
|
)
|
|
|
48
|
|
|
|
5
|
|
|
Total revenue
|
|
|
2,777
|
|
|
|
2,539
|
|
|
|
238
|
|
|
|
2,472
|
|
|
|
305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits
|
|
|
925
|
|
|
|
848
|
|
|
|
77
|
|
|
|
866
|
|
|
|
59
|
|
|
Distribution and servicing costs
|
|
|
87
|
|
|
|
82
|
|
|
|
5
|
|
|
|
85
|
|
|
|
2
|
|
|
Amortization of deferred sales commissions
|
|
|
14
|
|
|
|
12
|
|
|
|
2
|
|
|
|
14
|
|
|
|
-
|
|
|
Direct fund expenses
|
|
|
167
|
|
|
|
151
|
|
|
|
16
|
|
|
|
167
|
|
|
|
-
|
|
|
General and administration
|
|
|
410
|
|
|
|
401
|
|
|
|
9
|
|
|
|
334
|
|
|
|
76
|
|
|
Amortization of intangible assets
|
|
|
41
|
|
|
|
40
|
|
|
|
1
|
|
|
|
40
|
|
|
|
1
|
|
|
Total expenses
|
|
|
1,644
|
|
|
|
1,534
|
|
|
|
110
|
|
|
|
1,506
|
|
|
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
1,133
|
|
|
|
1,005
|
|
|
|
128
|
|
|
|
966
|
|
|
|
167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments
|
|
|
70
|
|
|
|
20
|
|
|
|
50
|
|
|
|
32
|
|
|
|
38
|
|
|
Net gain (loss) on consolidated variable interest entities
|
|
|
2
|
|
|
|
(39
|
)
|
|
|
41
|
|
|
|
(6
|
)
|
|
|
8
|
|
|
Interest and dividend income
|
|
|
4
|
|
|
|
9
|
|
|
|
(5
|
)
|
|
|
8
|
|
|
|
(4
|
)
|
|
Interest expense
|
|
|
(52
|
)
|
|
|
(57
|
)
|
|
|
5
|
|
|
|
(52
|
)
|
|
|
-
|
|
|
Total nonoperating income (expense)
|
|
|
24
|
|
|
|
(67
|
)
|
|
|
91
|
|
|
|
(18
|
)
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
1,157
|
|
|
|
938
|
|
|
|
219
|
|
|
|
948
|
|
|
|
209
|
|
|
Income tax expense
|
|
|
307
|
|
|
|
288
|
|
|
|
19
|
|
|
|
219
|
|
|
|
88
|
|
|
Net income
|
|
|
850
|
|
|
|
650
|
|
|
|
200
|
|
|
|
729
|
|
|
|
121
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
9
|
|
|
|
(40
|
)
|
|
|
49
|
|
|
|
(1
|
)
|
|
|
10
|
|
|
Net income attributable to BlackRock, Inc.
|
|
$
|
841
|
|
|
$
|
690
|
|
|
$
|
151
|
|
|
$
|
730
|
|
|
$
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (f)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
169,010,606
|
|
|
|
171,518,278
|
|
|
|
(2,507,672
|
)
|
|
|
169,811,633
|
|
|
|
(801,027
|
)
|
|
Diluted
|
|
|
172,999,529
|
|
|
|
175,176,037
|
|
|
|
(2,176,508
|
)
|
|
|
173,371,508
|
|
|
|
(371,979
|
)
|
|
Earnings per share attributable to BlackRock, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
common stockholders (e) (f)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
4.98
|
|
|
$
|
4.02
|
|
|
$
|
0.96
|
|
|
$
|
4.30
|
|
|
$
|
0.68
|
|
|
Diluted
|
|
$
|
4.86
|
|
|
$
|
3.93
|
|
|
$
|
0.93
|
|
|
$
|
4.21
|
|
|
$
|
0.65
|
|
|
Cash dividends declared and paid per share
|
|
$
|
1.68
|
|
|
$
|
1.50
|
|
|
$
|
0.18
|
|
|
$
|
1.68
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUM (end of period)
|
|
$
|
4,324,088
|
|
|
$
|
3,791,588
|
|
|
$
|
532,500
|
|
|
$
|
4,096,356
|
|
|
$
|
227,732
|
|
|
Shares outstanding (end of period)
|
|
|
168,724,763
|
|
|
|
171,215,729
|
|
|
|
(2,490,966
|
)
|
|
|
169,412,929
|
|
|
|
(688,166
|
)
|
|
GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
40.8
|
%
|
|
|
39.6
|
%
|
|
120 bps
|
|
|
39.1
|
%
|
|
170 bps
|
|
Effective tax rate
|
|
|
26.7
|
%
|
|
|
29.4
|
%
|
|
(270) bps
|
|
|
23.1
|
%
|
|
360 bps
|
|
As adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (a)
|
|
$
|
1,143
|
|
|
$
|
1,041
|
|
|
$
|
102
|
|
|
$
|
978
|
|
|
$
|
165
|
|
|
Operating margin (a)
|
|
|
42.7
|
%
|
|
|
42.6
|
%
|
|
10 bps
|
|
|
41.2
|
%
|
|
150 bps
|
|
Nonoperating income (expense), less net income (loss) attributable
to noncontrolling interests (b)
|
|
$
|
13
|
|
|
|
($27
|
)
|
|
$
|
40
|
|
|
|
($21
|
)
|
|
$
|
34
|
|
|
Net income attributable to BlackRock, Inc. (c) (d)
|
|
$
|
851
|
|
|
$
|
695
|
|
|
$
|
156
|
|
|
$
|
672
|
|
|
$
|
179
|
|
|
Diluted earnings attributable to BlackRock, Inc. common stockholders
per share (c) (d) (e) (f)
|
|
$
|
4.92
|
|
|
$
|
3.96
|
|
|
$
|
0.96
|
|
|
$
|
3.88
|
|
|
$
|
1.04
|
|
|
Effective tax rate
|
|
|
26.5
|
%
|
|
|
31.4
|
%
|
|
(490) bps
|
|
|
29.9
|
%
|
|
(340) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes (a) through (f) on pages 12-15 for more information on
as adjusted items and the reconciliation to GAAP.
|
|
|
|
Condensed Consolidated Statements of Income and Supplemental
Information
|
|
|
|
(Dollar amounts in millions, except per share data), (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Change
|
|
Revenue
|
|
|
|
|
|
|
|
Investment advisory, administration fees and securities lending
revenue
|
|
$
|
8,739
|
|
|
$
|
8,072
|
|
|
$
|
667
|
|
|
Investment advisory performance fees
|
|
|
561
|
|
|
|
463
|
|
|
|
98
|
|
|
BlackRock Solutions and advisory
|
|
|
577
|
|
|
|
518
|
|
|
|
59
|
|
|
Distribution fees
|
|
|
73
|
|
|
|
71
|
|
|
|
2
|
|
|
Other revenue
|
|
|
230
|
|
|
|
213
|
|
|
|
17
|
|
|
Total revenue
|
|
$
|
10,180
|
|
|
|
9,337
|
|
|
|
843
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
Employee compensation and benefits
|
|
|
3,560
|
|
|
|
3,287
|
|
|
|
273
|
|
|
Distribution and servicing costs
|
|
|
353
|
|
|
|
364
|
|
|
|
(11
|
)
|
|
Amortization of deferred sales commissions
|
|
|
52
|
|
|
|
55
|
|
|
|
(3
|
)
|
|
Direct fund expenses
|
|
|
657
|
|
|
|
591
|
|
|
|
66
|
|
|
General and administration
|
|
|
1,540
|
|
|
|
1,359
|
|
|
|
181
|
|
|
Amortization of intangible assets
|
|
|
161
|
|
|
|
157
|
|
|
|
4
|
|
|
Total expenses
|
|
|
6,323
|
|
|
|
5,813
|
|
|
|
510
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
3,857
|
|
|
|
3,524
|
|
|
|
333
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense)
|
|
|
|
|
|
|
|
Net gain (loss) on investments
|
|
|
305
|
|
|
|
163
|
|
|
|
142
|
|
|
Net gain (loss) on consolidated variable interest entities
|
|
|
-
|
|
|
|
(38
|
)
|
|
|
38
|
|
|
Interest and dividend income
|
|
|
22
|
|
|
|
36
|
|
|
|
(14
|
)
|
|
Interest expense
|
|
|
(211
|
)
|
|
|
(215
|
)
|
|
|
4
|
|
|
Total nonoperating income (expense)
|
|
|
116
|
|
|
|
(54
|
)
|
|
|
170
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
3,973
|
|
|
|
3,470
|
|
|
|
503
|
|
|
Income tax expense
|
|
|
1,022
|
|
|
|
1,030
|
|
|
|
(8
|
)
|
|
Net income
|
|
|
2,951
|
|
|
|
2,440
|
|
|
|
511
|
|
|
Less:
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
19
|
|
|
|
(18
|
)
|
|
|
37
|
|
|
Net income attributable to BlackRock, Inc.
|
|
$
|
2,932
|
|
|
$
|
2,458
|
|
|
$
|
474
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (f)
|
|
|
|
|
|
|
|
Basic
|
|
|
170,185,870
|
|
|
|
174,961,018
|
|
|
|
(4,775,148
|
)
|
|
Diluted
|
|
|
173,828,902
|
|
|
|
178,017,679
|
|
|
|
(4,188,777
|
)
|
|
Earnings per share attributable to BlackRock, Inc.
|
|
|
|
|
|
|
|
common stockholders (e) (f)
|
|
|
|
|
|
|
|
Basic
|
|
$
|
17.23
|
|
|
$
|
14.03
|
|
|
$
|
3.20
|
|
|
Diluted
|
|
$
|
16.87
|
|
|
$
|
13.79
|
|
|
$
|
3.08
|
|
|
Cash dividends declared and paid per share
|
|
$
|
6.72
|
|
|
$
|
6.00
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
Supplemental information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUM (end of period)
|
|
$
|
4,324,088
|
|
|
$
|
3,791,588
|
|
|
$
|
532,500
|
|
|
Shares outstanding (end of period)
|
|
|
168,724,763
|
|
|
|
171,215,729
|
|
|
|
(2,490,966
|
)
|
|
GAAP:
|
|
|
|
|
|
|
|
Operating margin
|
|
|
37.9
|
%
|
|
|
37.7
|
%
|
|
20 bps
|
|
Effective tax rate
|
|
|
25.8
|
%
|
|
|
29.5
|
%
|
|
(370) bps
|
|
As adjusted:
|
|
|
|
|
|
|
|
Operating income (a)
|
|
$
|
4,024
|
|
|
$
|
3,574
|
|
|
$
|
450
|
|
|
Operating margin (a)
|
|
|
41.4
|
%
|
|
|
40.4
|
%
|
|
100 bps
|
|
Nonoperating income (expense), less net income (loss) attributable
to noncontrolling interests (b)
|
|
$
|
7
|
|
|
|
($42
|
)
|
|
$
|
49
|
|
|
Net income attributable to BlackRock, Inc. (c) (d)
|
|
$
|
2,882
|
|
|
$
|
2,438
|
|
|
$
|
444
|
|
|
Diluted earnings attributable to BlackRock, Inc. common stockholders
per share (c) (d) (e) (f)
|
|
$
|
16.58
|
|
|
$
|
13.68
|
|
|
$
|
2.90
|
|
|
Effective tax rate
|
|
|
28.5
|
%
|
|
|
31.0
|
%
|
|
(250) bps
|
|
|
|
|
|
|
|
|
|
See notes (a) through (f) on pages 12-15 for more information on
as adjusted items and the reconciliation to GAAP.
|
|
|
|
Assets Under Management
|
|
|
|
|
|
|
|
|
|
|
|
(Dollar amounts in millions), (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Quarter Component Changes by Client Type and Product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
subscriptions
|
|
|
|
|
appreciation
|
|
Foreign
|
|
December 31,
|
|
Q4 2013
|
|
|
|
|
2013
|
|
(redemptions)
|
|
Adjustments (1)
|
|
Acquisition (2)
|
|
(depreciation)
|
|
exchange (3)
|
|
|
2013
|
|
Average AUM (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
$
|
174,732
|
|
$
|
4,836
|
|
|
$
|
13,066
|
|
|
$
|
-
|
|
$
|
9,523
|
|
|
$
|
878
|
|
|
$
|
203,035
|
|
$
|
187,254
|
|
Fixed income
|
|
|
143,186
|
|
|
3,869
|
|
|
|
3,897
|
|
|
|
-
|
|
|
303
|
|
|
|
220
|
|
|
|
151,475
|
|
|
146,902
|
|
Multi-asset
|
|
|
106,017
|
|
|
6,544
|
|
|
|
2,662
|
|
|
|
-
|
|
|
1,786
|
|
|
|
45
|
|
|
|
117,054
|
|
|
112,121
|
|
Alternatives
|
|
|
14,514
|
|
|
1,338
|
|
|
|
-
|
|
|
|
136
|
|
|
154
|
|
|
|
71
|
|
|
|
16,213
|
|
|
15,378
|
|
Retail subtotal
|
|
|
438,449
|
|
|
16,587
|
|
|
|
19,625
|
|
|
|
136
|
|
|
11,766
|
|
|
|
1,214
|
|
|
|
487,777
|
|
|
461,655
|
|
iShares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
653,528
|
|
|
24,115
|
|
|
|
-
|
|
|
|
-
|
|
|
39,939
|
|
|
|
553
|
|
|
|
718,135
|
|
|
692,173
|
|
Fixed income
|
|
|
182,841
|
|
|
(3,533
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(816
|
)
|
|
|
343
|
|
|
|
178,835
|
|
|
181,439
|
|
Multi-asset
|
|
|
1,179
|
|
|
93
|
|
|
|
-
|
|
|
|
-
|
|
|
43
|
|
|
|
(5
|
)
|
|
|
1,310
|
|
|
1,244
|
|
Alternatives
|
|
|
19,361
|
|
|
(1,586
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(1,689
|
)
|
|
|
6
|
|
|
|
16,092
|
|
|
17,991
|
|
iShares subtotal
|
|
|
856,909
|
|
|
19,089
|
|
|
|
-
|
|
|
|
-
|
|
|
37,477
|
|
|
|
897
|
|
|
|
914,372
|
|
|
892,847
|
|
Institutional:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
130,864
|
|
|
(1,824
|
)
|
|
|
-
|
|
|
|
-
|
|
|
9,675
|
|
|
|
11
|
|
|
|
138,726
|
|
|
135,834
|
|
Fixed income
|
|
|
503,243
|
|
|
561
|
|
|
|
-
|
|
|
|
-
|
|
|
1,668
|
|
|
|
(363
|
)
|
|
|
505,109
|
|
|
505,593
|
|
Multi-asset
|
|
|
191,989
|
|
|
12,115
|
|
|
|
3,336
|
|
|
|
-
|
|
|
6,618
|
|
|
|
1,218
|
|
|
|
215,276
|
|
|
200,595
|
|
Alternatives
|
|
|
63,974
|
|
|
(2,850
|
)
|
|
|
-
|
|
|
|
10,836
|
|
|
1,579
|
|
|
|
(240
|
)
|
|
|
73,299
|
|
|
71,928
|
|
Active subtotal
|
|
|
890,070
|
|
|
8,002
|
|
|
|
3,336
|
|
|
|
10,836
|
|
|
19,540
|
|
|
|
626
|
|
|
|
932,410
|
|
|
913,950
|
|
Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
1,189,588
|
|
|
(2,451
|
)
|
|
|
(18,238
|
)
|
|
|
-
|
|
|
90,123
|
|
|
|
(1,223
|
)
|
|
|
1,257,799
|
|
|
1,232,908
|
|
Fixed income
|
|
|
408,289
|
|
|
600
|
|
|
|
(4,723
|
)
|
|
|
-
|
|
|
285
|
|
|
|
2,316
|
|
|
|
406,767
|
|
|
411,023
|
|
Multi-asset
|
|
|
8,932
|
|
|
(1,397
|
)
|
|
|
-
|
|
|
|
-
|
|
|
193
|
|
|
|
(154
|
)
|
|
|
7,574
|
|
|
8,099
|
|
Alternatives
|
|
|
5,528
|
|
|
46
|
|
|
|
-
|
|
|
|
-
|
|
|
(127
|
)
|
|
|
63
|
|
|
|
5,510
|
|
|
5,540
|
|
Index subtotal
|
|
|
1,612,337
|
|
|
(3,202
|
)
|
|
|
(22,961
|
)
|
|
|
-
|
|
|
90,474
|
|
|
|
1,002
|
|
|
|
1,677,650
|
|
|
1,657,570
|
|
Institutional subtotal
|
|
|
2,502,407
|
|
|
4,800
|
|
|
|
(19,625
|
)
|
|
|
10,836
|
|
|
110,014
|
|
|
|
1,628
|
|
|
|
2,610,060
|
|
|
2,571,520
|
|
Long-term
|
|
|
3,797,765
|
|
|
40,476
|
|
|
|
-
|
|
|
|
10,972
|
|
|
159,257
|
|
|
|
3,739
|
|
|
|
4,012,209
|
|
$
|
3,926,022
|
|
Cash management
|
|
|
260,077
|
|
|
14,251
|
|
|
|
-
|
|
|
|
-
|
|
|
159
|
|
|
|
1,067
|
|
|
|
275,554
|
|
|
|
Advisory (5)
|
|
|
38,514
|
|
|
(1,407
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(168
|
)
|
|
|
(614
|
)
|
|
|
36,325
|
|
|
|
Total
|
|
$
|
4,096,356
|
|
$
|
53,320
|
|
|
$
|
-
|
|
|
$
|
10,972
|
|
$
|
159,248
|
|
|
$
|
4,192
|
|
|
$
|
4,324,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Quarter Component Changes by Product
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
subscriptions
|
|
|
|
|
appreciation
|
|
Foreign
|
|
December 31,
|
|
Q4 2013
|
|
|
|
|
2013
|
|
(redemptions)
|
|
Adjustments (1)
|
|
Acquisition (2)
|
|
(depreciation)
|
|
exchange (3)
|
|
|
2013
|
|
Average AUM (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
$
|
297,484
|
|
$
|
892
|
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
18,251
|
|
|
$
|
635
|
|
|
$
|
317,262
|
|
$
|
309,564
|
|
iShares
|
|
|
653,528
|
|
|
24,115
|
|
|
|
-
|
|
|
|
-
|
|
|
39,939
|
|
|
|
553
|
|
|
|
718,135
|
|
|
692,173
|
|
Fixed income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
646,193
|
|
|
4,289
|
|
|
|
-
|
|
|
|
-
|
|
|
1,965
|
|
|
|
(238
|
)
|
|
|
652,209
|
|
|
651,200
|
|
iShares
|
|
|
182,841
|
|
|
(3,533
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(816
|
)
|
|
|
343
|
|
|
|
178,835
|
|
|
181,439
|
|
Multi-asset
|
|
|
308,117
|
|
|
17,355
|
|
|
|
5,998
|
|
|
|
-
|
|
|
8,640
|
|
|
|
1,104
|
|
|
|
341,214
|
|
|
322,059
|
|
Alternatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
72,758
|
|
|
(602
|
)
|
|
|
-
|
|
|
|
10,972
|
|
|
1,769
|
|
|
|
129
|
|
|
|
85,026
|
|
|
82,166
|
|
Currency and commodities (6)
|
|
|
30,619
|
|
|
(2,450
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(1,852
|
)
|
|
|
(229
|
)
|
|
|
26,088
|
|
|
28,671
|
|
Subtotal
|
|
|
2,191,540
|
|
|
40,066
|
|
|
|
5,998
|
|
|
|
10,972
|
|
|
67,896
|
|
|
|
2,297
|
|
|
|
2,318,769
|
|
|
2,267,272
|
|
Non-ETF Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
1,197,700
|
|
|
(331
|
)
|
|
|
(5,172
|
)
|
|
|
-
|
|
|
91,070
|
|
|
|
(969
|
)
|
|
|
1,282,298
|
|
|
1,246,432
|
|
Fixed income
|
|
|
408,525
|
|
|
741
|
|
|
|
(826
|
)
|
|
|
-
|
|
|
291
|
|
|
|
2,411
|
|
|
|
411,142
|
|
|
412,318
|
|
Subtotal Non-ETF Index
|
|
|
1,606,225
|
|
|
410
|
|
|
|
(5,998
|
)
|
|
|
-
|
|
|
91,361
|
|
|
|
1,442
|
|
|
|
1,693,440
|
|
|
1,658,750
|
|
Long-term
|
|
$
|
3,797,765
|
|
$
|
40,476
|
|
|
$
|
-
|
|
|
$
|
10,972
|
|
$
|
159,257
|
|
|
$
|
3,739
|
|
|
$
|
4,012,209
|
|
$
|
3,926,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include $19.6 billion of AUM related to
fund ranges reclassed from institutional to retail and $6.0
billion of AUM reclassed from non-ETF index equity and fixed
income to multi-asset.
|
|
(2) Amounts represent $11.0 billion of AUM acquired in
the MGPA acquisition in October 2013.
|
|
(3) Foreign exchange reflects the impact of converting
non-U.S. dollar denominated AUM into U.S. dollars for reporting
purposes.
|
|
(4) Average AUM is calculated as the average of the
month-end spot AUM amounts for the trailing four months.
|
|
(5) Advisory AUM represents long-term portfolio
liquidation assignments.
|
|
(6) Amounts include commodity iShares.
|
|
|
|
Assets Under Management
|
|
|
|
|
|
(Dollar amounts in millions), (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-Year Component Changes by Client Type and Product
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
subscriptions
|
|
|
|
|
|
appreciation
|
|
Foreign
|
|
December 31,
|
|
Full Year
|
|
|
|
|
2012
|
|
(redemptions)
|
|
Adjustments (1)
|
|
Acquisitions (2)
|
|
(depreciation)
|
|
exchange (3)
|
|
|
2013
|
|
Average AUM (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
$
|
164,748
|
|
$
|
3,641
|
|
|
$
|
13,066
|
|
|
$
|
-
|
|
$
|
20,743
|
|
|
$
|
837
|
|
|
$
|
203,035
|
|
$
|
173,886
|
|
Fixed income
|
|
|
138,425
|
|
|
14,197
|
|
|
|
3,897
|
|
|
|
-
|
|
|
(5,338
|
)
|
|
|
294
|
|
|
|
151,475
|
|
|
143,929
|
|
Multi-asset
|
|
|
90,626
|
|
|
14,821
|
|
|
|
2,663
|
|
|
|
-
|
|
|
9,039
|
|
|
|
(95
|
)
|
|
|
117,054
|
|
|
102,276
|
|
Alternatives
|
|
|
9,685
|
|
|
6,145
|
|
|
|
-
|
|
|
|
136
|
|
|
136
|
|
|
|
111
|
|
|
|
16,213
|
|
|
12,585
|
|
Retail subtotal
|
|
|
403,484
|
|
|
38,804
|
|
|
|
19,626
|
|
|
|
136
|
|
|
24,580
|
|
|
|
1,147
|
|
|
|
487,777
|
|
|
432,676
|
|
iShares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
534,648
|
|
|
74,119
|
|
|
|
-
|
|
|
|
13,021
|
|
|
95,335
|
|
|
|
1,012
|
|
|
|
718,135
|
|
|
620,113
|
|
Fixed income
|
|
|
192,852
|
|
|
(7,450
|
)
|
|
|
-
|
|
|
|
1,294
|
|
|
(8,477
|
)
|
|
|
616
|
|
|
|
178,835
|
|
|
186,264
|
|
Multi-asset
|
|
|
869
|
|
|
355
|
|
|
|
-
|
|
|
|
-
|
|
|
96
|
|
|
|
(10
|
)
|
|
|
1,310
|
|
|
1,115
|
|
Alternatives
|
|
|
24,337
|
|
|
(3,053
|
)
|
|
|
-
|
|
|
|
1,645
|
|
|
(6,863
|
)
|
|
|
26
|
|
|
|
16,092
|
|
|
20,084
|
|
iShares subtotal
|
|
|
752,706
|
|
|
63,971
|
|
|
|
-
|
|
|
|
15,960
|
|
|
80,091
|
|
|
|
1,644
|
|
|
|
914,372
|
|
|
827,576
|
|
Institutional:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
129,024
|
|
|
(16,504
|
)
|
|
|
-
|
|
|
|
-
|
|
|
27,930
|
|
|
|
(1,724
|
)
|
|
|
138,726
|
|
|
131,254
|
|
Fixed income
|
|
|
518,102
|
|
|
(3,560
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(6,247
|
)
|
|
|
(3,186
|
)
|
|
|
505,109
|
|
|
504,769
|
|
Multi-asset
|
|
|
166,708
|
|
|
28,955
|
|
|
|
3,335
|
|
|
|
-
|
|
|
14,193
|
|
|
|
2,085
|
|
|
|
215,276
|
|
|
184,958
|
|
Alternatives
|
|
|
70,861
|
|
|
(9,819
|
)
|
|
|
-
|
|
|
|
10,836
|
|
|
2,593
|
|
|
|
(1,172
|
)
|
|
|
73,299
|
|
|
68,364
|
|
Active subtotal
|
|
|
884,695
|
|
|
(928
|
)
|
|
|
3,335
|
|
|
|
10,836
|
|
|
38,469
|
|
|
|
(3,997
|
)
|
|
|
932,410
|
|
|
889,345
|
|
Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
1,017,081
|
|
|
8,001
|
|
|
|
(18,238
|
)
|
|
|
-
|
|
|
260,333
|
|
|
|
(9,378
|
)
|
|
|
1,257,799
|
|
|
1,145,499
|
|
Fixed income
|
|
|
409,943
|
|
|
8,321
|
|
|
|
(4,723
|
)
|
|
|
-
|
|
|
(4,840
|
)
|
|
|
(1,934
|
)
|
|
|
406,767
|
|
|
405,502
|
|
Multi-asset
|
|
|
9,545
|
|
|
(1,833
|
)
|
|
|
-
|
|
|
|
-
|
|
|
476
|
|
|
|
(614
|
)
|
|
|
7,574
|
|
|
8,913
|
|
Alternatives
|
|
|
4,912
|
|
|
777
|
|
|
|
-
|
|
|
|
-
|
|
|
(259
|
)
|
|
|
80
|
|
|
|
5,510
|
|
|
5,440
|
|
Index subtotal
|
|
|
1,441,481
|
|
|
15,266
|
|
|
|
(22,961
|
)
|
|
|
-
|
|
|
255,710
|
|
|
|
(11,846
|
)
|
|
|
1,677,650
|
|
|
1,565,354
|
|
Institutional subtotal
|
|
|
2,326,176
|
|
|
14,338
|
|
|
|
(19,626
|
)
|
|
|
10,836
|
|
|
294,179
|
|
|
|
(15,843
|
)
|
|
|
2,610,060
|
|
|
2,454,699
|
|
Long-term
|
|
|
3,482,366
|
|
|
117,113
|
|
|
|
-
|
|
|
|
26,932
|
|
|
398,850
|
|
|
|
(13,052
|
)
|
|
|
4,012,209
|
|
$
|
3,714,951
|
|
Cash management
|
|
|
263,743
|
|
|
10,056
|
|
|
|
-
|
|
|
|
-
|
|
|
395
|
|
|
|
1,360
|
|
|
|
275,554
|
|
|
|
Advisory (5)
|
|
|
45,479
|
|
|
(7,442
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(538
|
)
|
|
|
(1,174
|
)
|
|
|
36,325
|
|
|
|
Total
|
|
$
|
3,791,588
|
|
$
|
119,727
|
|
|
$
|
-
|
|
|
$
|
26,932
|
|
$
|
398,707
|
|
|
$
|
(12,866
|
)
|
|
$
|
4,324,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-Year Component Changes by Product
|
|
|
|
|
|
Net
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
subscriptions
|
|
|
|
|
|
appreciation
|
|
Foreign
|
|
December 31,
|
|
Full Year
|
|
|
|
|
2012
|
|
(redemptions)
|
|
Adjustments (1)
|
|
Acquisitions (2)
|
|
(depreciation)
|
|
exchange (3)
|
|
|
2013
|
|
Average AUM (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
$
|
287,215
|
|
$
|
(15,377
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
46,530
|
|
|
$
|
(1,106
|
)
|
|
$
|
317,262
|
|
$
|
295,776
|
|
iShares
|
|
|
534,648
|
|
|
74,119
|
|
|
|
-
|
|
|
|
13,021
|
|
|
95,335
|
|
|
|
1,012
|
|
|
|
718,135
|
|
|
620,113
|
|
Fixed income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
656,331
|
|
|
10,443
|
|
|
|
-
|
|
|
|
-
|
|
|
(11,584
|
)
|
|
|
(2,981
|
)
|
|
|
652,209
|
|
|
648,143
|
|
iShares
|
|
|
192,852
|
|
|
(7,450
|
)
|
|
|
-
|
|
|
|
1,294
|
|
|
(8,477
|
)
|
|
|
616
|
|
|
|
178,835
|
|
|
186,264
|
|
Multi-asset
|
|
|
267,748
|
|
|
42,298
|
|
|
|
5,998
|
|
|
|
-
|
|
|
23,804
|
|
|
|
1,366
|
|
|
|
341,214
|
|
|
297,262
|
|
Alternatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
68,367
|
|
|
2,703
|
|
|
|
-
|
|
|
|
10,972
|
|
|
3,012
|
|
|
|
(28
|
)
|
|
|
85,026
|
|
|
73,827
|
|
Currency and commodities (6)
|
|
|
41,428
|
|
|
(8,653
|
)
|
|
|
-
|
|
|
|
1,645
|
|
|
(7,405
|
)
|
|
|
(927
|
)
|
|
|
26,088
|
|
|
32,646
|
|
Subtotal
|
|
|
2,048,589
|
|
|
98,083
|
|
|
|
5,998
|
|
|
|
26,932
|
|
|
141,215
|
|
|
|
(2,048
|
)
|
|
|
2,318,769
|
|
|
2,154,031
|
|
Non-ETF Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
1,023,638
|
|
|
10,515
|
|
|
|
(5,172
|
)
|
|
|
-
|
|
|
262,476
|
|
|
|
(9,159
|
)
|
|
|
1,282,298
|
|
|
1,154,863
|
|
Fixed income
|
|
|
410,139
|
|
|
8,515
|
|
|
|
(826
|
)
|
|
|
-
|
|
|
(4,841
|
)
|
|
|
(1,845
|
)
|
|
|
411,142
|
|
|
406,057
|
|
Subtotal Non-ETF Index
|
|
|
1,433,777
|
|
|
19,030
|
|
|
|
(5,998
|
)
|
|
|
-
|
|
|
257,635
|
|
|
|
(11,004
|
)
|
|
|
1,693,440
|
|
|
1,560,920
|
|
Long-term
|
|
$
|
3,482,366
|
|
$
|
117,113
|
|
|
$
|
-
|
|
|
$
|
26,932
|
|
$
|
398,850
|
|
|
$
|
(13,052
|
)
|
|
$
|
4,012,209
|
|
$
|
3,714,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include $19.6 billion of AUM related to
fund ranges reclassed from institutional to retail and $6.0
billion of AUM reclassed from non-ETF index equity and fixed
income to multi-asset.
|
|
(2) Amounts represent $16.0 billion of AUM acquired in
the Credit Suisse ETF acquisition in July 2013 and $11.0 billion
of AUM acquired in the MGPA acquisition in October 2013.
|
|
(3) Foreign exchange reflects the impact of converting
non-U.S. dollar denominated AUM into U.S. dollars for reporting
purposes.
|
|
(4) Average AUM is calculated as the average of the
month-end spot AUM amounts for the trailing thirteen months.
|
|
(5) Advisory AUM represents long-term portfolio
liquidation assignments.
|
|
(6) Amounts include commodity iShares.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE: Certain prior period information has been reclassified to
conform to current period presentation.
|
|
|
|
Summary of Revenues
|
|
(Dollar amounts in millions), (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Ended
|
|
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
2012
|
|
$
|
Change
|
|
|
2013
|
|
$
|
Change
|
|
|
2013
|
|
|
2012
|
|
$
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory, administration fees and securities lending
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
$
|
451
|
|
$
|
440
|
|
$
|
11
|
|
|
$
|
425
|
|
$
|
26
|
|
|
$
|
1,741
|
|
$
|
1,753
|
|
|
($12
|
)
|
|
iShares
|
|
|
646
|
|
|
515
|
|
|
131
|
|
|
|
589
|
|
|
57
|
|
|
|
2,390
|
|
|
1,941
|
|
|
449
|
|
|
Fixed income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
321
|
|
|
317
|
|
|
4
|
|
|
|
314
|
|
|
7
|
|
|
|
1,269
|
|
|
1,182
|
|
|
87
|
|
|
iShares
|
|
|
115
|
|
|
120
|
|
|
(5
|
)
|
|
|
113
|
|
|
2
|
|
|
|
464
|
|
|
441
|
|
|
23
|
|
|
Multi-asset
|
|
|
276
|
|
|
239
|
|
|
37
|
|
|
|
262
|
|
|
14
|
|
|
|
1,039
|
|
|
957
|
|
|
82
|
|
|
Alternatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
162
|
|
|
130
|
|
|
32
|
|
|
|
142
|
|
|
20
|
|
|
|
576
|
|
|
525
|
|
|
51
|
|
|
Currency and commodities
|
|
|
25
|
|
|
34
|
|
|
(9
|
)
|
|
|
27
|
|
|
(2
|
)
|
|
|
107
|
|
|
131
|
|
|
(24
|
)
|
|
Subtotal
|
|
|
1,996
|
|
|
1,795
|
|
|
201
|
|
|
|
1,872
|
|
|
124
|
|
|
|
7,586
|
|
|
6,930
|
|
|
656
|
|
|
Non-ETF Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
148
|
|
|
134
|
|
|
14
|
|
|
|
145
|
|
|
3
|
|
|
|
594
|
|
|
552
|
|
|
42
|
|
|
Fixed income
|
|
|
59
|
|
|
58
|
|
|
1
|
|
|
|
61
|
|
|
(2
|
)
|
|
|
238
|
|
|
229
|
|
|
9
|
|
|
Subtotal Non-ETF Index
|
|
|
207
|
|
|
192
|
|
|
15
|
|
|
|
206
|
|
|
1
|
|
|
|
832
|
|
|
781
|
|
|
51
|
|
|
Long-term
|
|
|
2,203
|
|
|
1,987
|
|
|
216
|
|
|
|
2,078
|
|
|
125
|
|
|
|
8,418
|
|
|
7,711
|
|
|
707
|
|
|
Cash management
|
|
|
77
|
|
|
94
|
|
|
(17
|
)
|
|
|
75
|
|
|
2
|
|
|
|
321
|
|
|
361
|
|
|
(40
|
)
|
|
Total base fees
|
|
|
2,280
|
|
|
2,081
|
|
|
199
|
|
|
|
2,153
|
|
|
127
|
|
|
|
8,739
|
|
|
8,072
|
|
|
667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory performance fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
46
|
|
|
49
|
|
|
(3
|
)
|
|
|
11
|
|
|
35
|
|
|
|
91
|
|
|
88
|
|
|
3
|
|
|
Fixed income
|
|
|
13
|
|
|
19
|
|
|
(6
|
)
|
|
|
2
|
|
|
11
|
|
|
|
25
|
|
|
48
|
|
|
(23
|
)
|
|
Multi-asset
|
|
|
10
|
|
|
9
|
|
|
1
|
|
|
|
4
|
|
|
6
|
|
|
|
24
|
|
|
15
|
|
|
9
|
|
|
Alternatives
|
|
|
199
|
|
|
162
|
|
|
37
|
|
|
|
79
|
|
|
120
|
|
|
|
421
|
|
|
312
|
|
|
109
|
|
|
Total
|
|
|
268
|
|
|
239
|
|
|
29
|
|
|
|
96
|
|
|
172
|
|
|
|
561
|
|
|
463
|
|
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BlackRock Solutions and advisory
|
|
|
157
|
|
|
136
|
|
|
21
|
|
|
|
156
|
|
|
1
|
|
|
|
577
|
|
|
518
|
|
|
59
|
|
|
Distribution fees
|
|
|
19
|
|
|
13
|
|
|
6
|
|
|
|
19
|
|
|
-
|
|
|
|
73
|
|
|
71
|
|
|
2
|
|
|
Other revenue
|
|
|
53
|
|
|
70
|
|
|
(17
|
)
|
|
|
48
|
|
|
5
|
|
|
|
230
|
|
|
213
|
|
|
17
|
|
|
Total revenue
|
|
$
|
2,777
|
|
$
|
2,539
|
|
$
|
238
|
|
|
$
|
2,472
|
|
$
|
305
|
|
|
$
|
10,180
|
|
$
|
9,337
|
|
$
|
843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Nonoperating Income (Expense)
|
|
|
|
|
|
|
|
|
|
(Dollar amounts in millions), (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Ended
|
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
$
|
Change
|
|
|
2013
|
|
|
$
|
Change
|
|
|
2013
|
|
|
|
2012
|
|
|
$
|
Change
|
|
Nonoperating income (expense), GAAP basis
|
|
|
|
|
$
|
24
|
|
|
($67
|
)
|
|
$
|
91
|
|
|
|
($18
|
)
|
|
$
|
42
|
|
|
$
|
116
|
|
|
|
($54
|
)
|
|
$
|
170
|
|
|
Less: Net income (loss) attributable to NCI
|
|
|
|
|
|
9
|
|
|
(40
|
)
|
|
|
49
|
|
|
|
(1
|
)
|
|
|
10
|
|
|
|
19
|
|
|
|
(18
|
)
|
|
|
37
|
|
|
Nonoperating income (expense)(1)
|
|
|
|
|
$
|
15
|
|
|
($27
|
)
|
|
$
|
42
|
|
|
|
($17
|
)
|
|
$
|
32
|
|
|
$
|
97
|
|
|
|
($36
|
)
|
|
$
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
economic
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
|
investments at
|
|
Three Months Ended
|
|
|
|
Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2013(2)
|
|
|
2013
|
|
|
2012
|
|
|
$
|
Change
|
|
|
2013
|
|
|
$
|
Change
|
|
|
2013
|
|
|
|
2012
|
|
|
$
|
Change
|
|
Net gain (loss) on investments(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity
|
15-20
|
%
|
|
|
|
$
|
17
|
|
|
($1
|
)
|
|
$
|
18
|
|
|
$
|
12
|
|
|
$
|
5
|
|
|
$
|
52
|
|
|
$
|
36
|
|
|
$
|
16
|
|
|
Real estate
|
5-10
|
%
|
|
|
|
|
7
|
|
|
5
|
|
|
|
2
|
|
|
|
7
|
|
|
|
-
|
|
|
|
24
|
|
|
|
14
|
|
|
|
10
|
|
|
Distressed credit/mortgage funds
|
5-10
|
%
|
|
|
|
|
12
|
|
|
15
|
|
|
|
(3
|
)
|
|
|
5
|
|
|
|
7
|
|
|
|
40
|
|
|
|
69
|
|
|
|
(29
|
)
|
|
Hedge funds/funds of hedge funds
|
20-25
|
%
|
|
|
|
|
20
|
|
|
3
|
|
|
|
17
|
|
|
|
(3
|
)
|
|
|
23
|
|
|
|
25
|
|
|
|
20
|
|
|
|
5
|
|
|
Other investments(3)
|
40-45
|
%
|
|
|
|
|
5
|
|
|
(1
|
)
|
|
|
6
|
|
|
|
2
|
|
|
|
3
|
|
|
|
16
|
|
|
|
(2
|
)
|
|
|
18
|
|
|
Subtotal
|
|
|
|
|
|
61
|
|
|
21
|
|
|
|
40
|
|
|
|
23
|
|
|
|
38
|
|
|
|
157
|
|
|
|
137
|
|
|
|
20
|
|
|
Gain related to PennyMac IPO
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
39
|
|
|
|
-
|
|
|
|
39
|
|
|
Gain related to the Charitable Contribution
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
80
|
|
|
|
-
|
|
|
|
80
|
|
|
Investments related to deferred compensation plans
|
|
|
|
|
|
2
|
|
|
-
|
|
|
|
2
|
|
|
|
4
|
|
|
|
(2
|
)
|
|
|
10
|
|
|
|
6
|
|
|
|
4
|
|
|
Total net gain (loss) on investments(1)
|
|
|
|
|
|
63
|
|
|
21
|
|
|
|
42
|
|
|
|
27
|
|
|
|
36
|
|
|
|
286
|
|
|
|
143
|
|
|
|
143
|
|
|
Interest and dividend income
|
|
|
|
|
|
4
|
|
|
9
|
|
|
|
(5
|
)
|
|
|
8
|
|
|
|
(4
|
)
|
|
|
22
|
|
|
|
36
|
|
|
|
(14
|
)
|
|
Interest expense
|
|
|
|
|
|
(52
|
)
|
|
(57
|
)
|
|
|
5
|
|
|
|
(52
|
)
|
|
|
-
|
|
|
|
(211
|
)
|
|
|
(215
|
)
|
|
|
4
|
|
|
Net interest expense
|
|
|
|
|
|
(48
|
)
|
|
(48
|
)
|
|
|
-
|
|
|
|
(44
|
)
|
|
|
(4
|
)
|
|
|
(189
|
)
|
|
|
(179
|
)
|
|
|
(10
|
)
|
|
Total nonoperating income (expense)(1)
|
|
|
|
|
|
15
|
|
|
(27
|
)
|
|
|
42
|
|
|
|
(17
|
)
|
|
|
32
|
|
|
|
97
|
|
|
|
(36
|
)
|
|
|
133
|
|
|
Gain related to the Charitable Contribution
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(80
|
)
|
|
|
-
|
|
|
|
(80
|
)
|
|
Compensation expense related to (appreciation) depreciation on
deferred compensation plans
|
|
|
|
|
|
(2
|
)
|
|
-
|
|
|
|
(2
|
)
|
|
|
(4
|
)
|
|
|
2
|
|
|
|
(10
|
)
|
|
|
(6
|
)
|
|
|
(4
|
)
|
|
Nonoperating income (expense), as adjusted(1)
|
|
|
|
|
$
|
13
|
|
|
($27
|
)
|
|
$
|
40
|
|
|
|
($21
|
)
|
|
$
|
34
|
|
|
$
|
7
|
|
|
|
($42
|
)
|
|
$
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of net income (loss) attributable to
noncontrolling interests ("NCI").
|
|
(2) Percentages represent estimated percentages of
BlackRock's corporate economic investment portfolio at December
31, 2013. Economic investment amounts at September 30, 2013 for
private equity, real estate, distressed credit/mortgage funds,
hedge funds/funds of hedge funds and other investments were $279
million, $130 million, $186 million, $157 million and $564
million, respectively. See the 2013 third quarter Form 10-Q for
more information.
|
|
(3) Amounts include net gains (losses) related to
equity, fixed income and commodity investments, and BlackRock's
seed capital hedging program.
|
|
|
|
|
|
|
|
Economic Tangible Assets
|
|
(Dollar amounts in billions), (unaudited)
|
|
|
|
The Company presents economic tangible assets as additional
information to enable investors to eliminate gross presentation of
certain assets that have equal and offsetting liabilities or
noncontrolling interests that ultimately do not have an impact on
stockholders’ equity (excluding appropriated retained earnings
related to consolidated collateralized loan obligations) or cash
flows. In addition, goodwill and intangible assets are excluded from
economic tangible assets.
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
2013 (Est.)
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Total balance sheet assets
|
|
|
|
|
|
$
|
220
|
|
|
$
|
200
|
|
|
Separate account assets and separate account
|
|
|
|
|
|
|
|
|
|
collateral held under securities lending agreements
|
|
|
|
|
|
|
(177
|
)
|
|
|
(158
|
)
|
|
Consolidated VIEs/sponsored investment funds
|
|
|
|
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
Goodwill and intangible assets, net
|
|
|
|
|
|
|
(30
|
)
|
|
|
(30
|
)
|
|
Economic tangible assets
|
|
|
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Economic tangible assets include cash, receivables, seed and
co-investments, regulatory investments and other assets.
Notes to Condensed Consolidated Statements
of Income and Supplemental Information (unaudited)
BlackRock reports its financial results in accordance with accounting
principles generally accepted in the United States ("GAAP"); however,
management believes evaluating the Company’s ongoing operating results
may be enhanced if investors have additional non-GAAP basis financial
measures. Management reviews non-GAAP financial measures to assess
ongoing operations and, for the reasons described below, considers them
to be effective indicators, for both management and investors, of
BlackRock's financial performance over time. BlackRock's management does
not advocate that investors consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information prepared
in accordance with GAAP.
Computations for all periods are derived from the condensed consolidated
statements of income as follows:
(a) Operating income, as adjusted, and operating margin, as adjusted:
Operating income, as adjusted, equals operating income, GAAP basis,
excluding certain items management deems nonrecurring, recurring
infrequently or transactions that ultimately will not impact BlackRock’s
book value, as indicated in the table below. Management believes
operating income, as adjusted, and operating margin, as adjusted, are
effective indicators of BlackRock’s financial performance over time and,
therefore, provide useful disclosure to investors.
|
Operating income, as adjusted and operating margin, as adjusted
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
(Dollar amounts in millions)
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Operating income, GAAP basis
|
|
$
|
1,133
|
|
|
$
|
1,005
|
|
|
$
|
966
|
|
|
$
|
3,857
|
|
|
$
|
3,524
|
|
|
Non-GAAP expense adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
PNC LTIP funding obligation
|
|
|
8
|
|
|
|
6
|
|
|
|
8
|
|
|
|
33
|
|
|
|
22
|
|
|
Charitable Contribution
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
124
|
|
|
|
-
|
|
|
U.K. lease exit costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8
|
)
|
|
Contribution to STIFs
|
|
|
-
|
|
|
|
30
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30
|
|
|
Compensation expense related to appreciation (depreciation) on
deferred compensation plans
|
|
|
2
|
|
|
|
-
|
|
|
|
4
|
|
|
|
10
|
|
|
|
6
|
|
|
Operating income, as adjusted
|
|
|
1,143
|
|
|
|
1,041
|
|
|
|
978
|
|
|
|
4,024
|
|
|
|
3,574
|
|
|
Closed-end fund launch costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16
|
|
|
|
22
|
|
|
Closed-end fund launch commissions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2
|
|
|
|
3
|
|
|
Operating income used for operating margin measurement
|
|
$
|
1,143
|
|
|
$
|
1,041
|
|
|
$
|
978
|
|
|
$
|
4,042
|
|
|
$
|
3,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, GAAP basis
|
|
$
|
2,777
|
|
|
$
|
2,539
|
|
|
$
|
2,472
|
|
|
$
|
10,180
|
|
|
$
|
9,337
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Distribution and servicing costs
|
|
|
(87
|
)
|
|
|
(82
|
)
|
|
|
(85
|
)
|
|
|
(353
|
)
|
|
|
(364
|
)
|
|
Amortization of deferred sales commissions
|
|
|
(14
|
)
|
|
|
(12
|
)
|
|
|
(14
|
)
|
|
|
(52
|
)
|
|
|
(55
|
)
|
|
Revenue used for operating margin measurement
|
|
$
|
2,676
|
|
|
$
|
2,445
|
|
|
$
|
2,373
|
|
|
$
|
9,775
|
|
|
$
|
8,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin, GAAP basis
|
|
|
40.8
|
%
|
|
|
39.6
|
%
|
|
|
39.1
|
%
|
|
|
37.9
|
%
|
|
|
37.7
|
%
|
|
Operating margin, as adjusted
|
|
|
42.7
|
%
|
|
|
42.6
|
%
|
|
|
41.2
|
%
|
|
|
41.4
|
%
|
|
|
40.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Condensed Consolidated Statements
of Income and Supplemental Information (unaudited)
(a) (continued)
-
Operating income, as adjusted, includes non-GAAP
expense adjustments. The portion of compensation expense associated
with certain long-term incentive plans (“LTIP”) funded, or to be
funded, through share distributions to participants of BlackRock stock
held by PNC has been excluded because it ultimately does not impact
BlackRock’s book value. In 2013, the Charitable Contribution has been
excluded from operating income, as adjusted, due to its nonrecurring
nature and because the noncash, nonoperating pre-tax gain of $80
million related to the contributed PennyMac investment is reported in
nonoperating income (expense). The U.K. lease exit costs incurred in
2012 represent an adjustment related to the costs initially recorded
in 2011 associated with costs to exit two London locations.
Contribution to STIFs represents a contribution to certain of the
Company’s bank-managed STIFs. Compensation expense associated with
appreciation (depreciation) on investments related to certain
BlackRock deferred compensation plans has been excluded as returns on
investments set aside for these plans, which substantially offset this
expense, are reported in nonoperating income (expense).
Management
believes operating income exclusive of these items is a useful measure
in evaluating BlackRock’s operating performance and helps enhance the
comparability of this information for the reporting periods presented.
-
Operating margin, as adjusted, allows BlackRock
to compare performance from period to period by adjusting for items
that may not recur, recur infrequently or may have an economic offset
in nonoperating income (expense). BlackRock also uses operating
margin, as adjusted, to monitor corporate performance and efficiency
and as a benchmark to compare its performance with other companies.
Management uses both GAAP and non-GAAP financial measures in
evaluating BlackRock’s financial performance. The non-GAAP measure by
itself may pose limitations because it does not include all of
BlackRock’s revenues and expenses.
Operating income used
for measuring operating margin, as adjusted, is equal to operating
income, as adjusted, excluding the impact of closed-end fund launch
costs and related commissions. Management believes the exclusion of
such costs and related commissions is useful because these costs can
fluctuate considerably and revenues associated with the expenditure of
these costs will not fully impact BlackRock’s results until future
periods.
Revenue used for operating margin, as adjusted,
excludes distribution and servicing costs paid to related parties and
other third parties. Management believes the exclusion of such costs
is useful because it creates consistency in the treatment for certain
contracts for similar services, which due to the terms of the
contracts, are accounted for under GAAP on a net basis within
investment advisory, administration fees and securities lending
revenue. Amortization of deferred sales commissions is excluded from
revenue used for operating margin measurement, as adjusted, because
such costs, over time, substantially offset distribution fee revenue
the Company earns. For each of these items, BlackRock excludes from
revenue used for operating margin, as adjusted, the costs related to
each of these items as a proxy for such offsetting revenues.
Notes to Condensed Consolidated Statements
of Income and Supplemental Information (unaudited)
(b) Nonoperating income (expense), less net income (loss)
attributable to noncontrolling interests, as adjusted, is presented
below. The compensation expense offset is recorded in operating income.
This compensation expense has been included in nonoperating income
(expense), less net income (loss) attributable to NCI, as adjusted, to
offset returns on investments set aside for these plans, which are
reported in nonoperating income (expense), GAAP basis.
Management believes nonoperating income (expense), less net income
(loss) attributable to NCI, as adjusted, provides comparability of
information among reporting periods and is an effective measure for
reviewing BlackRock’s nonoperating contribution to results. As
compensation expense associated with (appreciation) depreciation on
investments related to certain deferred compensation plans, which is
included in operating income, substantially offsets the gain (loss) on
the investments set aside for these plans, management believes
nonoperating income (expense), less net income (loss) attributable to
NCI, as adjusted, provides a useful measure, for both management and
investors, of BlackRock’s nonoperating results that impact book value.
During the year ended December 31, 2013, the noncash, nonoperating
pre-tax gain of $80 million related to the contributed PennyMac
investment has been excluded from nonoperating income (expense), less
net income (loss) attributable to NCI, as adjusted due to its
nonrecurring nature and because the more than offsetting associated
Charitable Contribution expense of $124 million is reported in operating
income.
|
Nonoperating income (expense), less net income (loss)
attributable to NCI, as adjusted
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
|
2013
|
|
|
2012
|
|
|
(Dollar amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense), GAAP basis
|
|
$
|
24
|
|
|
($67
|
)
|
|
($18
|
)
|
|
$
|
116
|
|
|
($54
|
)
|
|
Less: Net income (loss) attributable to NCI
|
|
|
9
|
|
|
(40
|
)
|
|
(1
|
)
|
|
|
19
|
|
|
(18
|
)
|
|
Nonoperating income (expense), net of NCI
|
|
|
15
|
|
|
(27
|
)
|
|
(17
|
)
|
|
|
97
|
|
|
(36
|
)
|
|
Gain related to Charitable Contribution
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(80
|
)
|
|
-
|
|
|
Compensation expense related to (appreciation) depreciation on
deferred compensation plans
|
|
|
(2
|
)
|
|
-
|
|
|
(4
|
)
|
|
|
(10
|
)
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense), less net income (loss) attributable
to NCI, as adjusted
|
|
$
|
13
|
|
|
($27
|
)
|
|
($21
|
)
|
|
$
|
7
|
|
|
($42
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Net income attributable to BlackRock, Inc., as adjusted: Management
believes net income attributable to BlackRock, Inc., as adjusted, and
diluted earnings per common share, as adjusted, are useful measures of
BlackRock’s profitability and financial performance. Net income
attributable to BlackRock, Inc., as adjusted, equals net income
attributable to BlackRock, Inc., GAAP basis, adjusted for significant
nonrecurring items, charges that ultimately will not impact BlackRock’s
book value or certain tax items that do not impact cash flow.
See note (a) Operating income, as adjusted, and operating margin, as
adjusted, for information on the PNC LTIP funding obligation, Charitable
Contribution, U.K. lease exit costs and contribution to STIFs.
Notes to Condensed Consolidated Statements
of Income and Supplemental Information (unaudited)
The year ended December 31, 2013 included a tax benefit of approximately
$48 million recognized in connection with the Charitable Contribution,
including the $57 million recorded in the second quarter of 2013. The
tax benefit has been excluded from net income attributable to BlackRock,
Inc., as adjusted due to the nonrecurring nature of the Charitable
Contribution. The year ended December 31, 2013 and 2012 reflected
adjustments related to the revaluation of certain deferred income tax
liabilities, including the effect of legislation enacted in the United
Kingdom and domestic state and local income tax changes. The resulting
decrease in income taxes has been excluded from net income attributable
to BlackRock, Inc., as adjusted, as these items will not have a cash
flow impact and to ensure comparability among periods presented.
|
Net income attributable to BlackRock, Inc., as adjusted
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
(Amounts in millions, except per share data)
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Net income attributable to BlackRock, Inc., GAAP basis
|
|
$
|
841
|
|
|
$
|
690
|
|
|
$
|
730
|
|
|
$
|
2,932
|
|
|
$
|
2,458
|
|
|
Non-GAAP adjustments, net of tax:(d)
|
|
|
|
|
|
|
|
|
|
|
|
PNC LTIP funding obligation
|
|
|
6
|
|
|
|
4
|
|
|
|
6
|
|
|
|
23
|
|
|
|
14
|
|
|
Amount related to the Charitable Contribution
|
|
|
9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
U.K. lease exit costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
Contribution to STIFs
|
|
|
-
|
|
|
|
21
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21
|
|
|
Income tax changes
|
|
|
(5
|
)
|
|
|
(20
|
)
|
|
|
(64
|
)
|
|
|
(69
|
)
|
|
|
(50
|
)
|
|
Net income attributable to BlackRock, Inc., as adjusted
|
|
$
|
851
|
|
|
$
|
695
|
|
|
$
|
672
|
|
|
$
|
2,882
|
|
|
$
|
2,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of net income, as adjusted, to common shares(e)
|
|
$
|
851
|
|
|
$
|
694
|
|
|
$
|
672
|
|
|
$
|
2,882
|
|
|
$
|
2,435
|
|
|
Diluted weighted-average common shares outstanding(f)
|
|
|
173.0
|
|
|
|
175.2
|
|
|
|
173.4
|
|
|
|
173.8
|
|
|
|
178.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share, GAAP basis(f)
|
|
$
|
4.86
|
|
|
$
|
3.93
|
|
|
$
|
4.21
|
|
|
$
|
16.87
|
|
|
$
|
13.79
|
|
|
Diluted earnings per common share, as adjusted(f)
|
|
$
|
4.92
|
|
|
$
|
3.96
|
|
|
$
|
3.88
|
|
|
$
|
16.58
|
|
|
$
|
13.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) For each period presented, the non-GAAP adjustments,
including the PNC LTIP funding obligation, U.K. lease exit costs and
contribution to STIFs, were tax effected at the respective blended rates
applicable to the adjustments. The year ended December 31, 2013 also
included the tax benefit of approximately $48 million related to the
Charitable Contribution.
(e) For the three and twelve months ended December 31, 2013,
amounts exclude net income attributable to participating securities.
(f) Nonvoting participating preferred stock is considered to be a
common stock equivalent for purposes of determining basic and diluted
earnings per share calculations.
Forward-looking Statements
This earnings release, and other statements that BlackRock may make, may
contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act, with respect to BlackRock’s future
financial or business performance, strategies or expectations.
Forward-looking statements are typically identified by words or phrases
such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,”
“comfortable,” “expect,” “anticipate,” “current,” “intention,”
“estimate,” “position,” “assume,” “outlook,” “continue,” “remain,”
“maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or
future or conditional verbs such as “will,” “would,” “should,” “could,”
“may” and similar expressions.
BlackRock cautions that forward-looking statements are subject to
numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made, and
BlackRock assumes no duty to and does not undertake to update
forward-looking statements. Actual results could differ materially from
those anticipated in forward-looking statements and future results could
differ materially from historical performance.
In addition to risk factors previously disclosed in BlackRock’s
Securities and Exchange Commission (“SEC”) reports and those identified
elsewhere in this earnings release, the following factors, among others,
could cause actual results to differ materially from forward-looking
statements or historical performance: (1) the introduction, withdrawal,
success and timing of business initiatives and strategies; (2) changes
and volatility in political, economic or industry conditions, the
interest rate environment, foreign exchange rates or financial and
capital markets, which could result in changes in demand for products or
services or in the value of assets under management; (3) the relative
and absolute investment performance of BlackRock’s investment products;
(4) the impact of increased competition; (5) the impact of future
acquisitions or divestitures; (6) the unfavorable resolution of legal
proceedings; (7) the extent and timing of any share repurchases; (8) the
impact, extent and timing of technological changes and the adequacy of
intellectual property, information and cyber security protection;
(9) the impact of legislative and regulatory actions and reforms,
including the Dodd-Frank Wall Street Reform and Consumer Protection Act,
and regulatory, supervisory or enforcement actions of government
agencies relating to BlackRock or The PNC Financial Services Group, Inc.
(“PNC”); (10) terrorist activities, international hostilities and
natural disasters, which may adversely affect the general economy,
domestic and local financial and capital markets, specific industries or
BlackRock; (11) the ability to attract and retain highly talented
professionals; (12) fluctuations in the carrying value of BlackRock’s
economic investments; (13) the impact of changes to tax legislation,
including income, payroll and transaction taxes, and taxation on
products or transactions, which could affect the value proposition to
clients and, generally, the tax position of the Company;
(14) BlackRock’s success in maintaining the distribution of its
products; (15) the impact of BlackRock electing to provide support to
its products from time to time and any potential liabilities related to
securities lending or other indemnification obligations; and (16) the
impact of problems at other financial institutions or the failure or
negative performance of products at other financial institutions.
BlackRock's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and BlackRock's subsequent filings with the SEC, accessible on the SEC's
website at www.sec.gov
and on BlackRock’s website at www.blackrock.com,
discuss these factors in more detail and identify additional factors
that can affect forward-looking statements. The information contained on
the Company’s website is not a part of this earnings release.
Performance Notes
Past performance is not indicative of future results. Except as
specified, the performance information shown is as of December 31, 2013
and is based on preliminarily data available at that time. The
performance data shown reflects information for all actively and
passively managed equity and fixed income accounts, including U.S.
registered investment companies, European-domiciled retail funds and
separate accounts for which performance data is available, including
performance data for high net worth accounts available as of November
30, 2013. The performance data does not include accounts terminated
prior to December 31, 2013 and accounts for which data has not yet been
verified. If such accounts had been included, the performance data
provided may have substantially differed from that shown.
Performance comparisons shown are gross-of-fees for U.S. retail,
institutional and high net worth separate accounts as well as EMEA
institutional separate accounts, and net of fee for European domiciled
retail funds. The performance tracking shown for institutional index
accounts is based on gross-of-fee performance and includes all
institutional accounts and all iShares funds globally using an
index strategy. AUM information is based on AUM available as of December
31, 2013 for each account or fund in the asset class shown without
adjustment for overlapping management of the same account or fund. Fund
performance reflects the reinvestment of dividends and distributions.
Source of performance information and peer medians is BlackRock, Inc.
and is based in part on data from Lipper Inc. for U.S. funds and
Morningstar, Inc. for non-U.S. funds.
BlackRock, Inc.
Media Relations:
Brian Beades, 212-810-5596
or
Investor
Relations:
Tom Wojcik, 212-810-81277
Source: BlackRock, Inc.