-
$80 billion of long-term net inflows, positive across product type,
client type and region, reflect strength of diversified business model
-
8% increase in revenue year-over-year driven by growth in base fees,
performance fees and technology and risk management revenue
-
19% increase in operating income (10% as adjusted) year-over-year
reflects operating margin expansion and benefits of scale for clients
and shareholders
-
33% increase in diluted EPS (24% as adjusted) year-over-year also
includes the impact of a discrete tax benefit associated with new
accounting guidance for share-based payments
-
9% increase in quarterly cash dividend to $2.50 per share and $275
million of share repurchases
NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE:BLK):
|
FINANCIAL RESULTS
|
|
|
|
|
Q1
|
|
|
|
Q1
|
|
|
|
|
|
|
Q4
|
|
|
|
|
|
|
(in millions, except per share data)
|
|
|
2017
|
|
|
|
2016
|
|
|
|
Change
|
|
|
2016
|
|
|
|
Change
|
|
AUM
|
|
|
$
|
|
5,420,477
|
|
|
|
$
|
|
4,737,165
|
|
|
|
14
|
%
|
|
|
$
|
|
5,147,852
|
|
|
|
5
|
%
|
|
Total net flows
|
|
|
$
|
|
64,599
|
|
|
|
$
|
|
27,829
|
|
|
|
|
|
|
|
$
|
|
98,050
|
|
|
|
|
|
|
GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
|
2,824
|
|
|
|
$
|
|
2,624
|
|
|
|
8
|
%
|
|
|
$
|
|
2,890
|
|
|
|
(2
|
)%
|
|
Operating income
|
|
|
$
|
|
1,147
|
|
|
|
$
|
|
963
|
|
|
|
19
|
%
|
|
|
$
|
|
1,225
|
|
|
|
(6
|
)%
|
|
Operating margin
|
|
|
|
|
40.6
|
%
|
|
|
|
|
36.7
|
%
|
|
|
390
|
bps
|
|
|
|
|
42.4
|
%
|
|
|
(180
|
) bps
|
|
Net income(1)
|
|
|
$
|
|
862
|
|
|
|
$
|
|
657
|
|
|
|
31
|
%
|
|
|
$
|
|
851
|
|
|
|
1
|
%
|
|
Diluted EPS
|
|
|
$
|
|
5.23
|
|
|
|
$
|
|
3.92
|
|
|
|
33
|
%
|
|
|
$
|
|
5.13
|
|
|
|
2
|
%
|
|
Weighted average diluted shares
|
|
|
|
|
164.9
|
|
|
|
|
|
167.4
|
|
|
|
(1
|
)%
|
|
|
|
|
165.9
|
|
|
|
(1
|
)%
|
|
As adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income(2)
|
|
|
$
|
|
1,151
|
|
|
|
$
|
|
1,047
|
|
|
|
10
|
%
|
|
|
$
|
|
1,232
|
|
|
|
(7
|
)%
|
|
Operating margin(2)
|
|
|
|
|
42.6
|
%
|
|
|
|
|
41.6
|
%
|
|
|
100
|
bps
|
|
|
|
|
44.4
|
%
|
|
|
(180
|
) bps
|
|
Net income(1) (2)
|
|
|
$
|
|
865
|
|
|
|
$
|
|
711
|
|
|
|
22
|
%
|
|
|
$
|
|
852
|
|
|
|
2
|
%
|
|
Diluted EPS(2)
|
|
|
$
|
|
5.25
|
|
|
|
$
|
|
4.25
|
|
|
|
24
|
%
|
|
|
$
|
|
5.14
|
|
|
|
2
|
%
|
|
(1)
|
|
Net income represents net income attributable to BlackRock, Inc.
|
|
(2)
|
|
See notes (1) through (3) to the Condensed Consolidated Statements
of Income and Supplemental Information for more information on as
adjusted items and the reconciliation to GAAP.
|
BlackRock, Inc. (NYSE:BLK) today reported financial results for the
three months ended March 31, 2017.
“BlackRock’s first quarter results reflect the strategic decisions we
have made to complement our investment capabilities with
industry-leading technology,” commented Laurence D. Fink, Chairman and
CEO of BlackRock. “Over the last 29 years, we’ve kept our focus on the
long-term, anticipating changes in the asset management ecosystem and
consistently investing in our business, to meet the evolving needs of
our clients.
“Alpha generation, risk management and technology have always been the
cornerstone of BlackRock. As the world becomes increasingly complex and
interconnected, technology is becoming even more essential to clients,
transforming the way both institutions and wealth managers construct
portfolios, manage asset allocation, understand risk and engage and
connect with clients. The recent repositioning of our active equity
platform is yet another example of our commitment to anticipate and
embrace change to deliver sustainable alpha for clients.
“First quarter long-term net inflows of $80 billion, representing
annualized organic asset growth of 7%, were positive across product
type, client type and region. Our commitment to investing for future
growth and leveraging the benefits of scale for clients and shareholders
also resulted in a 12% increase in Aladdin® revenue
and 100 basis points of margin expansion year-over-year.
“Both retail and institutional investors continued to utilize
BlackRock’s iShares® ETFs as the
building blocks for their portfolios and in combinations to drive active
returns. iShares saw record quarterly inflows of $64 billion,
again capturing the #1 share of industry flows globally, in the United
States and in Europe, and in equity and fixed income.
“BlackRock’s retail business returned to positive organic growth
generating long-term net inflows of $5 billion, reflecting strong
inflows across our top-performing unconstrained fixed income and
multi-asset income offerings, as client discussions increasingly focus
on outcome-based goals.
“Institutions across the globe continue to look to BlackRock for
customized, innovative solutions to help them solve their most complex
investment challenges. BlackRock saw institutional net inflows of $11
billion, led by multi-asset and liability-driven fixed income solutions.
“Building on record total net inflows of $202 billion in 2016, we began
2017 by repositioning our active equity platform and investing in our
business for future growth. Going forward, we will continue to transform
change into opportunity, using our advantaged market position to create
better financial futures for clients and drive long-term growth for
shareholders.”
|
RESULTS BY CLIENT TYPE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
Q1 2017
|
|
|
|
|
Q1 2017
|
|
|
March 31, 2017
|
|
|
Q1 2017
|
|
|
AUM
|
|
|
Base fees(1)
|
|
(in millions), (unaudited)
|
|
|
Net flows
|
|
|
AUM
|
|
|
Base fees(1)
|
|
|
% of Total
|
|
|
% of Total
|
|
Retail
|
|
|
$
|
4,624
|
|
|
|
$
|
564,333
|
|
|
$
|
784
|
|
|
11
|
%
|
|
|
31
|
%
|
|
iShares ETFs
|
|
|
|
64,481
|
|
|
|
|
1,413,335
|
|
|
|
925
|
|
|
26
|
%
|
|
|
37
|
%
|
|
Institutional:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
|
(1,010
|
)
|
|
|
|
1,037,233
|
|
|
|
454
|
|
|
19
|
%
|
|
|
18
|
%
|
|
Index
|
|
|
|
12,246
|
|
|
|
|
2,013,905
|
|
|
|
240
|
|
|
37
|
%
|
|
|
9
|
%
|
|
Total institutional
|
|
|
|
11,236
|
|
|
|
|
3,051,138
|
|
|
|
694
|
|
|
56
|
%
|
|
|
27
|
%
|
|
Long-term
|
|
|
|
80,341
|
|
|
|
|
5,028,806
|
|
|
|
2,403
|
|
|
93
|
%
|
|
|
95
|
%
|
|
Cash management
|
|
|
|
(15,705
|
)
|
|
|
|
388,935
|
|
|
|
127
|
|
|
7
|
%
|
|
|
5
|
%
|
|
Advisory
|
|
|
|
(37
|
)
|
|
|
|
2,736
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
|
$
|
64,599
|
|
|
|
$
|
5,420,477
|
|
|
$
|
2,530
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESULTS BY PRODUCT TYPE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
Q1 2017
|
|
|
|
|
Q1 2017
|
|
|
March 31, 2017
|
|
|
Q1 2017
|
|
|
AUM
|
|
|
Base fees(1)
|
|
(in millions), (unaudited)
|
|
|
Net flows
|
|
|
AUM
|
|
|
Base fees(1)
|
|
|
% of Total
|
|
|
% of Total
|
|
Equity
|
|
|
$
|
44,057
|
|
|
|
$
|
2,865,515
|
|
|
$
|
1,284
|
|
|
53
|
%
|
|
|
51
|
%
|
|
Fixed income
|
|
|
|
33,374
|
|
|
|
|
1,630,569
|
|
|
|
681
|
|
|
30
|
%
|
|
|
27
|
%
|
|
Multi-asset
|
|
|
|
1,549
|
|
|
|
|
411,565
|
|
|
|
272
|
|
|
8
|
%
|
|
|
11
|
%
|
|
Alternatives
|
|
|
|
1,361
|
|
|
|
|
121,157
|
|
|
|
166
|
|
|
2
|
%
|
|
|
6
|
%
|
|
Long-term
|
|
|
|
80,341
|
|
|
|
|
5,028,806
|
|
|
|
2,403
|
|
|
93
|
%
|
|
|
95
|
%
|
|
Cash management
|
|
|
|
(15,705
|
)
|
|
|
|
388,935
|
|
|
|
127
|
|
|
7
|
%
|
|
|
5
|
%
|
|
Advisory
|
|
|
|
(37
|
)
|
|
|
|
2,736
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
|
$
|
64,599
|
|
|
|
$
|
5,420,477
|
|
|
$
|
2,530
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESULTS BY INVESTMENT STYLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
Q1 2017
|
|
|
|
|
Q1 2017
|
|
|
March 31, 2017
|
|
|
Q1 2017
|
|
|
AUM
|
|
|
Base fees(1)
|
|
(in millions), (unaudited)
|
|
|
Net flows
|
|
|
AUM
|
|
|
Base fees(1)
|
|
|
% of Total
|
|
|
% of Total
|
|
Active
|
|
|
$
|
(1,844
|
)
|
|
|
$
|
1,543,519
|
|
|
$
|
1,224
|
|
|
29
|
%
|
|
|
48
|
%
|
|
Index and iShares ETFs
|
|
|
|
82,185
|
|
|
|
|
3,485,287
|
|
|
|
1,179
|
|
|
64
|
%
|
|
|
47
|
%
|
|
Long-term
|
|
|
|
80,341
|
|
|
|
|
5,028,806
|
|
|
|
2,403
|
|
|
93
|
%
|
|
|
95
|
%
|
|
Cash management
|
|
|
|
(15,705
|
)
|
|
|
|
388,935
|
|
|
|
127
|
|
|
7
|
%
|
|
|
5
|
%
|
|
Advisory
|
|
|
|
(37
|
)
|
|
|
|
2,736
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
Total
|
|
|
$
|
64,599
|
|
|
|
$
|
5,420,477
|
|
|
$
|
2,530
|
|
|
100
|
%
|
|
|
100
|
%
|
(1) Base fees include investment advisory, administration
fees and securities lending revenue.
BUSINESS HIGHLIGHTS
Long-term net inflows were positive across all major regions, with net
inflows of $55.8 billion, $18.1 billion and $6.4 billion from clients in
the Americas, EMEA and Asia-Pacific, respectively. At March 31, 2017,
BlackRock managed 63% of its long-term AUM for investors in the Americas
and 37% for clients in EMEA and Asia-Pacific.
The Company’s net flows by client type for the first quarter of 2017 are
presented below.
-
Retail long-term net inflows of $4.6 billion reflected
net inflows of $5.0 billion internationally, partially offset by net
outflows of $0.4 billion from the United States. Fixed income net
inflows of $4.8 billion were paced by inflows into unconstrained and
emerging market categories. Equity net inflows of $1.8 billion
reflected inflows into index mutual funds. Multi-asset net outflows of
$1.7 billion were largely due to outflows from world allocation
strategies.
-
iShares ETFs long-term net inflows of $64.5 billion were
led by equity net inflows of $44.6 billion, with strength in iShares
Core, precision exposure and financial instrument ETFs. Fixed income
net inflows of $20.3 billion reflected inflows into investment grade
corporate, emerging markets debt and treasury bond funds.
-
Institutional active long-term net outflows of $1.0
billion reflected equity and fixed income net outflows of $4.7 billion
and $1.3 billion, respectively, partially offset by inflows into
multi-asset and alternatives. Multi-asset net inflows of $3.8 billion
were driven by ongoing demand for the LifePath®
target-date series. Alternatives net inflows of $1.2 billion were led
by inflows into infrastructure offerings.
-
Institutional index long-term net inflows of $12.2
billion included fixed income and equity net inflows of $9.5 billion
and $2.4 billion, respectively.
Cash management AUM decreased 4% to $388.9 billion.
|
INVESTMENT PERFORMANCE AT MARCH 31, 2017 (1)
|
|
|
|
One-year period
|
|
Three-year period
|
|
Five-year period
|
|
Fixed income:
|
|
|
|
|
|
|
|
Actively managed AUM above benchmark or peer median
|
|
|
|
|
|
|
|
Taxable
|
|
66%
|
|
78%
|
|
88%
|
|
Tax-exempt
|
|
62%
|
|
57%
|
|
70%
|
|
Index AUM within or above applicable tolerance
|
|
93%
|
|
99%
|
|
99%
|
|
Equity:
|
|
|
|
|
|
|
|
Actively managed AUM above benchmark or peer median
|
|
|
|
|
|
|
|
Fundamental
|
|
64%
|
|
65%
|
|
49%
|
|
Scientific
|
|
82%
|
|
85%
|
|
90%
|
|
Index AUM within or above applicable tolerance
|
|
95%
|
|
97%
|
|
97%
|
(1) Past performance is not indicative of future results. The
performance information shown is based on preliminary available data.
Please refer to performance disclosure detail.
TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION
Chairman and Chief Executive Officer, Laurence D. Fink, and Chief
Financial Officer, Gary S. Shedlin, will host a teleconference call for
investors and analysts on Wednesday, April 19, 2017 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 82927991). 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 Wednesday, April 19, 2017 and ending at
midnight on Wednesday, May 3, 2017. To access the replay of the
teleconference, callers from the United States should dial
(855) 859-2056 and callers from outside the United States should dial
(404) 537-3406 and enter the Conference ID Number 82927991. To access
the webcast, please visit the investor relations section of www.blackrock.com.
About BlackRock
BlackRock is a global leader in investment management, risk management
and advisory services for institutional and retail clients. At March 31,
2017, BlackRock’s AUM was $5.4 trillion. BlackRock helps clients around
the world 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®. As of March 31, 2017, the firm had
approximately 13,000 employees in more than 30 countries and a major
presence in 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
| Twitter: @blackrock_news
| Blog: www.blackrockblog.com
| LinkedIn: www.linkedin.com/company/blackrock
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL
INFORMATION
|
|
(in millions, except shares and per share data), (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
2016
|
|
|
Change
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory, administration fees and securities lending
revenue
|
|
$
|
2,530
|
|
|
$
|
2,359
|
|
|
$
|
171
|
|
|
$
|
2,486
|
|
|
$
|
44
|
|
|
Investment advisory performance fees
|
|
|
70
|
|
|
|
34
|
|
|
|
36
|
|
|
|
129
|
|
|
|
(59
|
)
|
|
Technology and risk management revenue(a)
|
|
|
158
|
|
|
|
141
|
|
|
|
17
|
|
|
|
157
|
|
|
|
1
|
|
|
Distribution fees
|
|
|
7
|
|
|
|
11
|
|
|
|
(4
|
)
|
|
|
9
|
|
|
|
(2
|
)
|
|
Advisory and other revenue(a)
|
|
|
59
|
|
|
|
79
|
|
|
|
(20
|
)
|
|
|
109
|
|
|
|
(50
|
)
|
|
Total revenue
|
|
|
2,824
|
|
|
|
2,624
|
|
|
|
200
|
|
|
|
2,890
|
|
|
|
(66
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits
|
|
|
1,021
|
|
|
|
947
|
|
|
|
74
|
|
|
|
987
|
|
|
|
34
|
|
|
Distribution and servicing costs
|
|
|
117
|
|
|
|
97
|
|
|
|
20
|
|
|
|
109
|
|
|
|
8
|
|
|
Amortization of deferred sales commissions
|
|
|
5
|
|
|
|
10
|
|
|
|
(5
|
)
|
|
|
7
|
|
|
|
(2
|
)
|
|
Direct fund expense
|
|
|
208
|
|
|
|
188
|
|
|
|
20
|
|
|
|
183
|
|
|
|
25
|
|
|
General and administration
|
|
|
301
|
|
|
|
318
|
|
|
|
(17
|
)
|
|
|
355
|
|
|
|
(54
|
)
|
|
Restructuring charge
|
|
|
-
|
|
|
|
76
|
|
|
|
(76
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Amortization of intangible assets
|
|
|
25
|
|
|
|
25
|
|
|
|
-
|
|
|
|
24
|
|
|
|
1
|
|
|
Total expense
|
|
|
1,677
|
|
|
|
1,661
|
|
|
|
16
|
|
|
|
1,665
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
1,147
|
|
|
|
963
|
|
|
|
184
|
|
|
|
1,225
|
|
|
|
(78
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments
|
|
|
51
|
|
|
|
(2
|
)
|
|
|
53
|
|
|
|
6
|
|
|
|
45
|
|
|
Interest and dividend income
|
|
|
7
|
|
|
|
5
|
|
|
|
2
|
|
|
|
7
|
|
|
|
-
|
|
|
Interest expense
|
|
|
(65
|
)
|
|
|
(51
|
)
|
|
|
(14
|
)
|
|
|
(51
|
)
|
|
|
(14
|
)
|
|
Total nonoperating income (expense)
|
|
|
(7
|
)
|
|
|
(48
|
)
|
|
|
41
|
|
|
|
(38
|
)
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
1,140
|
|
|
|
915
|
|
|
|
225
|
|
|
|
1,187
|
|
|
|
(47
|
)
|
|
Income tax expense
|
|
|
269
|
|
|
|
268
|
|
|
|
1
|
|
|
|
336
|
|
|
|
(67
|
)
|
|
Net income
|
|
|
871
|
|
|
|
647
|
|
|
|
224
|
|
|
|
851
|
|
|
|
20
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
9
|
|
|
|
(10
|
)
|
|
|
19
|
|
|
-
|
|
|
|
9
|
|
|
Net income attributable to BlackRock, Inc.
|
|
$
|
862
|
|
|
$
|
657
|
|
|
$
|
205
|
|
|
$
|
851
|
|
|
$
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
163,016,599
|
|
|
|
165,388,130
|
|
|
|
(2,371,531
|
)
|
|
|
163,441,552
|
|
|
|
(424,953
|
)
|
|
Diluted
|
|
|
164,856,183
|
|
|
|
167,398,938
|
|
|
|
(2,542,755
|
)
|
|
|
165,854,167
|
|
|
|
(997,984
|
)
|
|
Earnings per share attributable to BlackRock, Inc.
common stockholders (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
5.29
|
|
|
$
|
3.97
|
|
|
$
|
1.32
|
|
|
$
|
5.21
|
|
|
$
|
0.08
|
|
|
Diluted
|
|
$
|
5.23
|
|
|
$
|
3.92
|
|
|
$
|
1.31
|
|
|
$
|
5.13
|
|
|
$
|
0.10
|
|
|
Cash dividends declared and paid per share
|
|
$
|
2.50
|
|
|
$
|
2.29
|
|
|
$
|
0.21
|
|
|
$
|
2.29
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUM (end of period)
|
|
$
|
5,420,477
|
|
|
$
|
4,737,165
|
|
|
$
|
683,312
|
|
|
$
|
5,147,852
|
|
|
$
|
272,625
|
|
|
Shares outstanding (end of period)
|
|
|
162,868,647
|
|
|
|
165,174,069
|
|
|
|
(2,305,422
|
)
|
|
|
163,121,291
|
|
|
|
(252,644
|
)
|
|
GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
40.6
|
%
|
|
|
36.7
|
%
|
|
|
390
|
bps
|
|
|
42.4
|
%
|
|
|
(180
|
) bps
|
|
Effective tax rate
|
|
|
23.8
|
%
|
|
|
29.0
|
%
|
|
|
(520
|
) bps
|
|
|
28.3
|
%
|
|
|
(450
|
) bps
|
|
As adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (1)
|
|
$
|
1,151
|
|
|
$
|
1,047
|
|
|
$
|
104
|
|
|
$
|
1,232
|
|
|
$
|
(81
|
)
|
|
Operating margin (1)
|
|
|
42.6
|
%
|
|
|
41.6
|
%
|
|
|
100
|
bps
|
|
|
44.4
|
%
|
|
|
(180
|
) bps
|
|
Nonoperating income (expense), less net income (loss)
attributable to noncontrolling interests
|
|
$
|
(16
|
)
|
|
$
|
(38
|
)
|
|
$
|
22
|
|
|
$
|
(38
|
)
|
|
$
|
22
|
|
|
Net income attributable to BlackRock, Inc. (2)
|
|
$
|
865
|
|
|
$
|
711
|
|
|
$
|
154
|
|
|
$
|
852
|
|
|
$
|
13
|
|
|
Diluted earnings attributable to BlackRock, Inc.
common stockholders per share (2) (3)
|
|
$
|
5.25
|
|
|
$
|
4.25
|
|
|
$
|
1.00
|
|
|
$
|
5.14
|
|
|
$
|
0.11
|
|
|
Effective tax rate
|
|
|
23.8
|
%
|
|
|
29.6
|
%
|
|
|
(580
|
) bps
|
|
|
28.6
|
%
|
|
|
(480
|
) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the reconciliation to GAAP and notes (1) through (3) for
more information on as adjusted items.
|
|
|
|
(a)
|
|
Beginning with the first quarter of 2017, Aladdin revenue
previously reported within “BlackRock Solutions®
and advisory” is currently presented within “Technology and risk
management revenue” on the condensed consolidated statements of
income. The remaining “BlackRock Solutions and advisory”
revenue is currently reported as part of “Advisory and other
revenue.” Under the historical presentation, BlackRock Solutions
and advisory revenue would have totaled $182 million for the three
months ended March 31, 2017. Prior period amounts reported for BlackRock
Solutions and advisory of $171 million and $197 million for
the three months ended March 31, 2016 and December 31, 2016,
respectively, have been reclassified to conform to the current
presentation. See the Summary of Revenue for further information.
|
|
|
|
ASSETS UNDER MANAGEMENT
|
|
(in millions), (unaudited)
|
|
Current Quarter Component Changes by Client Type and Product
Type
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
inflows
|
|
|
Market
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
(outflows)
|
|
|
change
|
|
|
FX impact (1)
|
|
|
2017
|
|
|
Average AUM (2)
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
$
|
196,221
|
|
|
$
|
1,828
|
|
|
$
|
9,259
|
|
|
$
|
873
|
|
|
$
|
208,181
|
|
|
$
|
202,859
|
|
Fixed income
|
|
|
222,256
|
|
|
|
4,793
|
|
|
|
2,494
|
|
|
|
460
|
|
|
|
230,003
|
|
|
|
226,343
|
|
Multi-asset
|
|
|
107,997
|
|
|
|
(1,743
|
)
|
|
|
4,257
|
|
|
|
191
|
|
|
|
110,702
|
|
|
|
109,515
|
|
Alternatives
|
|
|
15,478
|
|
|
|
(254
|
)
|
|
|
162
|
|
|
|
61
|
|
|
|
15,447
|
|
|
|
15,433
|
|
Retail subtotal
|
|
|
541,952
|
|
|
|
4,624
|
|
|
|
16,172
|
|
|
|
1,585
|
|
|
|
564,333
|
|
|
|
554,150
|
|
iShares ETFs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
951,252
|
|
|
|
44,552
|
|
|
|
54,750
|
|
|
|
1,855
|
|
|
|
1,052,409
|
|
|
|
1,003,328
|
|
Fixed income
|
|
|
314,707
|
|
|
|
20,304
|
|
|
|
1,960
|
|
|
|
933
|
|
|
|
337,904
|
|
|
|
327,555
|
|
Multi-asset
|
|
|
3,149
|
|
|
|
(378
|
)
|
|
|
118
|
|
|
|
1
|
|
|
|
2,890
|
|
|
|
2,913
|
|
Alternatives
|
|
|
18,771
|
|
|
|
3
|
|
|
|
1,333
|
|
|
|
25
|
|
|
|
20,132
|
|
|
|
19,669
|
|
iShares ETFs subtotal
|
|
|
1,287,879
|
|
|
|
64,481
|
|
|
|
58,161
|
|
|
|
2,814
|
|
|
|
1,413,335
|
|
|
|
1,353,465
|
|
Institutional:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
120,699
|
|
|
|
(4,676
|
)
|
|
|
7,875
|
|
|
|
919
|
|
|
|
124,817
|
|
|
|
123,380
|
|
Fixed income
|
|
|
536,727
|
|
|
|
(1,246
|
)
|
|
|
5,103
|
|
|
|
3,198
|
|
|
|
543,782
|
|
|
|
543,732
|
|
Multi-asset
|
|
|
276,933
|
|
|
|
3,758
|
|
|
|
8,455
|
|
|
|
1,583
|
|
|
|
290,729
|
|
|
|
283,748
|
|
Alternatives
|
|
|
75,615
|
|
|
|
1,154
|
|
|
|
639
|
|
|
|
497
|
|
|
|
77,905
|
|
|
|
76,851
|
|
Active subtotal
|
|
|
1,009,974
|
|
|
|
(1,010
|
)
|
|
|
22,072
|
|
|
|
6,197
|
|
|
|
1,037,233
|
|
|
|
1,027,711
|
|
Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
1,389,004
|
|
|
|
2,353
|
|
|
|
80,083
|
|
|
|
8,668
|
|
|
|
1,480,108
|
|
|
|
1,436,839
|
|
Fixed income
|
|
|
498,675
|
|
|
|
9,523
|
|
|
|
5,339
|
|
|
|
5,343
|
|
|
|
518,880
|
|
|
|
507,656
|
|
Multi-asset
|
|
|
6,928
|
|
|
|
(88
|
)
|
|
|
252
|
|
|
|
152
|
|
|
|
7,244
|
|
|
|
7,149
|
|
Alternatives
|
|
|
7,074
|
|
|
|
458
|
|
|
|
94
|
|
|
|
47
|
|
|
|
7,673
|
|
|
|
7,390
|
|
Index subtotal
|
|
|
1,901,681
|
|
|
|
12,246
|
|
|
|
85,768
|
|
|
|
14,210
|
|
|
|
2,013,905
|
|
|
|
1,959,034
|
|
Institutional subtotal
|
|
|
2,911,655
|
|
|
|
11,236
|
|
|
|
107,840
|
|
|
|
20,407
|
|
|
|
3,051,138
|
|
|
|
2,986,745
|
|
Long-term
|
|
|
4,741,486
|
|
|
|
80,341
|
|
|
|
182,173
|
|
|
|
24,806
|
|
|
|
5,028,806
|
|
|
|
4,894,360
|
|
Cash management
|
|
|
403,584
|
|
|
|
(15,705
|
)
|
|
|
219
|
|
|
|
837
|
|
|
|
388,935
|
|
|
|
397,621
|
|
Advisory (3)
|
|
|
2,782
|
|
|
|
(37
|
)
|
|
|
(29
|
)
|
|
|
20
|
|
|
|
2,736
|
|
|
|
2,762
|
|
Total
|
|
$
|
5,147,852
|
|
|
$
|
64,599
|
|
|
$
|
182,363
|
|
|
$
|
25,663
|
|
|
$
|
5,420,477
|
|
|
$
|
5,294,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Quarter Component Changes by Investment Style and Product
Type (Long-term)
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
inflows
|
|
|
Market
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
(outflows)
|
|
|
change
|
|
|
FX impact (1)
|
|
|
2017
|
|
|
Average AUM (2)
|
|
Active:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
$
|
275,033
|
|
|
$
|
(6,820
|
)
|
|
$
|
15,989
|
|
|
$
|
1,514
|
|
|
$
|
285,716
|
|
|
$
|
281,691
|
|
Fixed income
|
|
|
749,996
|
|
|
|
2,061
|
|
|
|
7,405
|
|
|
|
3,558
|
|
|
|
763,020
|
|
|
|
760,128
|
|
Multi-asset
|
|
|
384,930
|
|
|
|
2,015
|
|
|
|
12,711
|
|
|
|
1,775
|
|
|
|
401,431
|
|
|
|
393,263
|
|
Alternatives
|
|
|
91,093
|
|
|
|
900
|
|
|
|
801
|
|
|
|
558
|
|
|
|
93,352
|
|
|
|
92,284
|
|
Active subtotal
|
|
|
1,501,052
|
|
|
|
(1,844
|
)
|
|
|
36,906
|
|
|
|
7,405
|
|
|
|
1,543,519
|
|
|
|
1,527,366
|
|
Index and iShares ETFs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iShares ETFs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
951,252
|
|
|
|
44,552
|
|
|
|
54,750
|
|
|
|
1,855
|
|
|
|
1,052,409
|
|
|
|
1,003,328
|
|
Fixed income
|
|
|
314,707
|
|
|
|
20,304
|
|
|
|
1,960
|
|
|
|
933
|
|
|
|
337,904
|
|
|
|
327,555
|
|
Multi-asset
|
|
|
3,149
|
|
|
|
(378
|
)
|
|
|
118
|
|
|
|
1
|
|
|
|
2,890
|
|
|
|
2,913
|
|
Alternatives
|
|
|
18,771
|
|
|
|
3
|
|
|
|
1,333
|
|
|
|
25
|
|
|
|
20,132
|
|
|
|
19,669
|
|
iShares ETFs subtotal
|
|
|
1,287,879
|
|
|
|
64,481
|
|
|
|
58,161
|
|
|
|
2,814
|
|
|
|
1,413,335
|
|
|
|
1,353,465
|
|
Non-ETF Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
1,430,891
|
|
|
|
6,325
|
|
|
|
81,228
|
|
|
|
8,946
|
|
|
|
1,527,390
|
|
|
|
1,481,387
|
|
Fixed income
|
|
|
507,662
|
|
|
|
11,009
|
|
|
|
5,531
|
|
|
|
5,443
|
|
|
|
529,645
|
|
|
|
517,603
|
|
Multi-asset
|
|
|
6,928
|
|
|
|
(88
|
)
|
|
|
253
|
|
|
|
151
|
|
|
|
7,244
|
|
|
|
7,149
|
|
Alternatives
|
|
|
7,074
|
|
|
|
458
|
|
|
|
94
|
|
|
|
47
|
|
|
|
7,673
|
|
|
|
7,390
|
|
Non-ETF Index subtotal
|
|
|
1,952,555
|
|
|
|
17,704
|
|
|
|
87,106
|
|
|
|
14,587
|
|
|
|
2,071,952
|
|
|
|
2,013,529
|
|
Index & iShares ETFs subtotal
|
|
|
3,240,434
|
|
|
|
82,185
|
|
|
|
145,267
|
|
|
|
17,401
|
|
|
|
3,485,287
|
|
|
|
3,366,994
|
|
Long-term
|
|
$
|
4,741,486
|
|
|
$
|
80,341
|
|
|
$
|
182,173
|
|
|
$
|
24,806
|
|
|
$
|
5,028,806
|
|
|
$
|
4,894,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Quarter Component Changes by Product Type (Long-term)
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
inflows
|
|
|
Market
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
(outflows)
|
|
|
change
|
|
|
FX impact (1)
|
|
|
2017
|
|
|
Average AUM (2)
|
|
Equity
|
|
$
|
2,657,176
|
|
|
$
|
44,057
|
|
|
$
|
151,967
|
|
|
$
|
12,315
|
|
|
$
|
2,865,515
|
|
|
$
|
2,766,406
|
|
Fixed income
|
|
|
1,572,365
|
|
|
|
33,374
|
|
|
|
14,896
|
|
|
|
9,934
|
|
|
|
1,630,569
|
|
|
|
1,605,286
|
|
Multi-asset
|
|
|
395,007
|
|
|
|
1,549
|
|
|
|
13,082
|
|
|
|
1,927
|
|
|
|
411,565
|
|
|
|
403,325
|
|
Alternatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
88,630
|
|
|
|
1,003
|
|
|
|
810
|
|
|
|
471
|
|
|
|
90,914
|
|
|
|
89,865
|
|
Currency and commodities(4)
|
|
|
28,308
|
|
|
|
358
|
|
|
|
1,418
|
|
|
|
159
|
|
|
|
30,243
|
|
|
|
29,478
|
|
Alternatives subtotal
|
|
|
116,938
|
|
|
|
1,361
|
|
|
|
2,228
|
|
|
|
630
|
|
|
|
121,157
|
|
|
|
119,343
|
|
Long-term
|
|
$
|
4,741,486
|
|
|
$
|
80,341
|
|
|
$
|
182,173
|
|
|
$
|
24,806
|
|
|
$
|
5,028,806
|
|
|
$
|
4,894,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Foreign exchange reflects the impact of translating non-U.S.
dollar denominated AUM into U.S. dollars for reporting purposes.
|
|
(2)
|
|
Average AUM is calculated as the average of the month-end spot AUM
amounts for the trailing four months.
|
|
(3)
|
|
Advisory AUM represents long-term portfolio liquidation assignments.
|
|
(4)
|
|
Amounts include commodity iShares ETFs.
|
|
|
|
ASSETS UNDER MANAGEMENT
|
|
(in millions), (unaudited)
|
|
Year-over-Year Component Changes by Client Type and Product Type
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
inflows
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
(outflows)
|
|
|
Acquisition(1)
|
|
|
change
|
|
|
FX impact (2)
|
|
|
2017
|
|
|
Average AUM (3)
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
$
|
193,436
|
|
|
$
|
(5,206
|
)
|
|
$
|
-
|
|
|
$
|
25,425
|
|
|
$
|
(5,474
|
)
|
|
$
|
208,181
|
|
|
$
|
196,955
|
|
Fixed income
|
|
|
217,209
|
|
|
|
11,080
|
|
|
|
-
|
|
|
|
4,173
|
|
|
|
(2,459
|
)
|
|
|
230,003
|
|
|
|
225,373
|
|
Multi-asset
|
|
|
113,291
|
|
|
|
(9,476
|
)
|
|
|
-
|
|
|
|
7,848
|
|
|
|
(961
|
)
|
|
|
110,702
|
|
|
|
111,003
|
|
Alternatives
|
|
|
18,730
|
|
|
|
(2,739
|
)
|
|
|
-
|
|
|
|
(222
|
)
|
|
|
(322
|
)
|
|
|
15,447
|
|
|
|
16,565
|
|
Retail subtotal
|
|
|
542,666
|
|
|
|
(6,341
|
)
|
|
|
-
|
|
|
|
37,224
|
|
|
|
(9,216
|
)
|
|
|
564,333
|
|
|
|
549,896
|
|
iShares ETFs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
818,104
|
|
|
|
124,153
|
|
|
|
-
|
|
|
|
116,759
|
|
|
|
(6,607
|
)
|
|
|
1,052,409
|
|
|
|
904,822
|
|
Fixed income
|
|
|
291,132
|
|
|
|
52,735
|
|
|
|
-
|
|
|
|
(1,058
|
)
|
|
|
(4,905
|
)
|
|
|
337,904
|
|
|
|
316,540
|
|
Multi-asset
|
|
|
2,166
|
|
|
|
562
|
|
|
|
-
|
|
|
|
166
|
|
|
|
(4
|
)
|
|
|
2,890
|
|
|
|
2,564
|
|
Alternatives
|
|
|
16,152
|
|
|
|
3,264
|
|
|
|
-
|
|
|
|
822
|
|
|
|
(106
|
)
|
|
|
20,132
|
|
|
|
20,026
|
|
iShares ETFs subtotal
|
|
|
1,127,554
|
|
|
|
180,714
|
|
|
|
-
|
|
|
|
116,689
|
|
|
|
(11,622
|
)
|
|
|
1,413,335
|
|
|
|
1,243,952
|
|
Institutional:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
118,833
|
|
|
|
(10,355
|
)
|
|
|
-
|
|
|
|
20,512
|
|
|
|
(4,173
|
)
|
|
|
124,817
|
|
|
|
121,823
|
|
Fixed income
|
|
|
544,244
|
|
|
|
(1,896
|
)
|
|
|
-
|
|
|
|
10,169
|
|
|
|
(8,735
|
)
|
|
|
543,782
|
|
|
|
548,196
|
|
Multi-asset
|
|
|
262,010
|
|
|
|
15,817
|
|
|
|
-
|
|
|
|
21,984
|
|
|
|
(9,082
|
)
|
|
|
290,729
|
|
|
|
274,205
|
|
Alternatives
|
|
|
75,104
|
|
|
|
2,543
|
|
|
|
-
|
|
|
|
1,801
|
|
|
|
(1,543
|
)
|
|
|
77,905
|
|
|
|
75,615
|
|
Active subtotal
|
|
|
1,000,191
|
|
|
|
6,109
|
|
|
|
-
|
|
|
|
54,466
|
|
|
|
(23,533
|
)
|
|
|
1,037,233
|
|
|
|
1,019,839
|
|
Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
1,277,802
|
|
|
|
4,567
|
|
|
|
-
|
|
|
|
221,463
|
|
|
|
(23,724
|
)
|
|
|
1,480,108
|
|
|
|
1,358,634
|
|
Fixed income
|
|
|
472,568
|
|
|
|
39,237
|
|
|
|
-
|
|
|
|
41,203
|
|
|
|
(34,128
|
)
|
|
|
518,880
|
|
|
|
493,488
|
|
Multi-asset
|
|
|
7,776
|
|
|
|
(562
|
)
|
|
|
-
|
|
|
|
178
|
|
|
|
(148
|
)
|
|
|
7,244
|
|
|
|
7,591
|
|
Alternatives
|
|
|
6,003
|
|
|
|
1,100
|
|
|
|
-
|
|
|
|
963
|
|
|
|
(393
|
)
|
|
|
7,673
|
|
|
|
6,985
|
|
Index subtotal
|
|
|
1,764,149
|
|
|
|
44,342
|
|
|
|
-
|
|
|
|
263,807
|
|
|
|
(58,393
|
)
|
|
|
2,013,905
|
|
|
|
1,866,698
|
|
Institutional subtotal
|
|
|
2,764,340
|
|
|
|
50,451
|
|
|
|
-
|
|
|
|
318,273
|
|
|
|
(81,926
|
)
|
|
|
3,051,138
|
|
|
|
2,886,537
|
|
Long-term
|
|
|
4,434,560
|
|
|
|
224,824
|
|
|
|
-
|
|
|
|
472,186
|
|
|
|
(102,764
|
)
|
|
|
5,028,806
|
|
|
|
4,680,385
|
|
Cash management
|
|
|
291,986
|
|
|
|
21,678
|
|
|
|
80,635
|
|
|
|
671
|
|
|
|
(6,035
|
)
|
|
|
388,935
|
|
|
|
381,639
|
|
Advisory (4)
|
|
|
10,619
|
|
|
|
(7,540
|
)
|
|
|
-
|
|
|
|
23
|
|
|
|
(366
|
)
|
|
|
2,736
|
|
|
|
7,974
|
|
Total
|
|
$
|
4,737,165
|
|
|
$
|
238,962
|
|
|
$
|
80,635
|
|
|
$
|
472,880
|
|
|
$
|
(109,165
|
)
|
|
$
|
5,420,477
|
|
|
$
|
5,069,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-Year Component Changes by Investment Style and Product
Type (Long-term)
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
inflows
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
(outflows)
|
|
|
Acquisition
|
|
|
change
|
|
|
FX impact (2)
|
|
|
2017
|
|
|
Average AUM (3)
|
|
Active:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
$
|
276,281
|
|
|
$
|
(23,080
|
)
|
|
$
|
-
|
|
|
$
|
39,869
|
|
|
$
|
(7,354
|
)
|
|
$
|
285,716
|
|
|
$
|
279,440
|
|
Fixed income
|
|
|
753,711
|
|
|
|
5,771
|
|
|
|
-
|
|
|
|
13,839
|
|
|
|
(10,301
|
)
|
|
|
763,020
|
|
|
|
764,867
|
|
Multi-asset
|
|
|
375,300
|
|
|
|
6,342
|
|
|
|
-
|
|
|
|
29,832
|
|
|
|
(10,043
|
)
|
|
|
401,431
|
|
|
|
385,208
|
|
Alternatives
|
|
|
93,836
|
|
|
|
(196
|
)
|
|
|
-
|
|
|
|
1,577
|
|
|
|
(1,865
|
)
|
|
|
93,352
|
|
|
|
92,180
|
|
Active subtotal
|
|
|
1,499,128
|
|
|
|
(11,163
|
)
|
|
|
-
|
|
|
|
85,117
|
|
|
|
(29,563
|
)
|
|
|
1,543,519
|
|
|
|
1,521,695
|
|
Index and iShares ETFs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iShares ETFs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
818,104
|
|
|
|
124,153
|
|
|
|
-
|
|
|
|
116,759
|
|
|
|
(6,607
|
)
|
|
|
1,052,409
|
|
|
|
904,822
|
|
Fixed income
|
|
|
291,132
|
|
|
|
52,735
|
|
|
|
-
|
|
|
|
(1,058
|
)
|
|
|
(4,905
|
)
|
|
|
337,904
|
|
|
|
316,540
|
|
Multi-asset
|
|
|
2,166
|
|
|
|
562
|
|
|
|
-
|
|
|
|
166
|
|
|
|
(4
|
)
|
|
|
2,890
|
|
|
|
2,564
|
|
Alternatives
|
|
|
16,152
|
|
|
|
3,264
|
|
|
|
-
|
|
|
|
822
|
|
|
|
(106
|
)
|
|
|
20,132
|
|
|
|
20,026
|
|
iShares ETFs subtotal
|
|
|
1,127,554
|
|
|
|
180,714
|
|
|
|
-
|
|
|
|
116,689
|
|
|
|
(11,622
|
)
|
|
|
1,413,335
|
|
|
|
1,243,952
|
|
Non-ETF Index:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
1,313,790
|
|
|
|
12,086
|
|
|
|
-
|
|
|
|
227,531
|
|
|
|
(26,017
|
)
|
|
|
1,527,390
|
|
|
|
1,397,972
|
|
Fixed income
|
|
|
480,310
|
|
|
|
42,650
|
|
|
|
-
|
|
|
|
41,706
|
|
|
|
(35,021
|
)
|
|
|
529,645
|
|
|
|
502,190
|
|
Multi-asset
|
|
|
7,777
|
|
|
|
(563
|
)
|
|
|
-
|
|
|
|
178
|
|
|
|
(148
|
)
|
|
|
7,244
|
|
|
|
7,591
|
|
Alternatives
|
|
|
6,001
|
|
|
|
1,100
|
|
|
|
-
|
|
|
|
965
|
|
|
|
(393
|
)
|
|
|
7,673
|
|
|
|
6,985
|
|
Non-ETF Index subtotal
|
|
|
1,807,878
|
|
|
|
55,273
|
|
|
|
-
|
|
|
|
270,380
|
|
|
|
(61,579
|
)
|
|
|
2,071,952
|
|
|
|
1,914,738
|
|
Index & iShares ETFs subtotal
|
|
|
2,935,432
|
|
|
|
235,987
|
|
|
|
-
|
|
|
|
387,069
|
|
|
|
(73,201
|
)
|
|
|
3,485,287
|
|
|
|
3,158,690
|
|
Long-term
|
|
$
|
4,434,560
|
|
|
$
|
224,824
|
|
|
$
|
-
|
|
|
$
|
472,186
|
|
|
$
|
(102,764
|
)
|
|
$
|
5,028,806
|
|
|
$
|
4,680,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Quarter Component Changes by Product Type (Long-term)
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
inflows
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
(outflows)
|
|
|
Acquisition
|
|
|
change
|
|
|
FX impact (2)
|
|
|
2017
|
|
|
Average AUM (3)
|
|
Equity
|
|
$
|
2,408,175
|
|
|
$
|
113,159
|
|
|
$
|
-
|
|
|
$
|
384,159
|
|
|
$
|
(39,978
|
)
|
|
$
|
2,865,515
|
|
|
$
|
2,582,234
|
|
Fixed income
|
|
|
1,525,153
|
|
|
|
101,156
|
|
|
|
-
|
|
|
|
54,487
|
|
|
|
(50,227
|
)
|
|
|
1,630,569
|
|
|
|
1,583,597
|
|
Multi-asset
|
|
|
385,243
|
|
|
|
6,341
|
|
|
|
-
|
|
|
|
30,176
|
|
|
|
(10,195
|
)
|
|
|
411,565
|
|
|
|
395,363
|
|
Alternatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
91,639
|
|
|
|
(342
|
)
|
|
|
-
|
|
|
|
1,515
|
|
|
|
(1,898
|
)
|
|
|
90,914
|
|
|
|
89,842
|
|
Currency and commodities(5)
|
|
|
24,350
|
|
|
|
4,510
|
|
|
|
-
|
|
|
|
1,849
|
|
|
|
(466
|
)
|
|
|
30,243
|
|
|
|
29,349
|
|
Alternatives subtotal
|
|
|
115,989
|
|
|
|
4,168
|
|
|
|
-
|
|
|
|
3,364
|
|
|
|
(2,364
|
)
|
|
|
121,157
|
|
|
|
119,191
|
|
Long-term
|
|
$
|
4,434,560
|
|
|
$
|
224,824
|
|
|
$
|
-
|
|
|
$
|
472,186
|
|
|
$
|
(102,764
|
)
|
|
$
|
5,028,806
|
|
|
$
|
4,680,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Amount represents AUM acquired in the BofA® Global
Capital Management transaction in April 2016.
|
|
(2)
|
|
Foreign exchange reflects the impact of translating non-U.S. dollar
denominated AUM into U.S. dollars for reporting purposes.
|
|
(3)
|
|
Average AUM is calculated as the average of the month-end spot AUM
amounts for the trailing thirteen months.
|
|
(4)
|
|
Advisory AUM represents long-term portfolio liquidation assignments.
|
|
(5)
|
|
Amounts include commodity iShares ETFs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY OF REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
(in millions), (unaudited)
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2016
|
|
|
Change
|
|
|
Investment advisory, administration fees
and securities lending revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
$
|
402
|
|
|
$
|
386
|
|
|
$
|
16
|
|
|
$
|
390
|
|
|
$
|
12
|
|
|
iShares ETFs
|
|
|
721
|
|
|
|
623
|
|
|
|
98
|
|
|
|
681
|
|
|
|
40
|
|
|
Non-ETF Index
|
|
|
161
|
|
|
|
164
|
|
|
|
(3
|
)
|
|
|
166
|
|
|
|
(5
|
)
|
|
Equity subtotal
|
|
|
1,284
|
|
|
|
1,173
|
|
|
|
111
|
|
|
|
1,237
|
|
|
|
47
|
|
|
Fixed income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
|
|
|
411
|
|
|
|
396
|
|
|
|
15
|
|
|
|
421
|
|
|
|
(10
|
)
|
|
iShares ETFs
|
|
|
185
|
|
|
|
152
|
|
|
|
33
|
|
|
|
184
|
|
|
|
1
|
|
|
Non-ETF Index
|
|
|
85
|
|
|
|
70
|
|
|
|
15
|
|
|
|
80
|
|
|
|
5
|
|
|
Fixed income subtotal
|
|
|
681
|
|
|
|
618
|
|
|
|
63
|
|
|
|
685
|
|
|
|
(4
|
)
|
|
Multi-asset
|
|
|
272
|
|
|
|
284
|
|
|
|
(12
|
)
|
|
|
278
|
|
|
|
(6
|
)
|
|
Alternatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
144
|
|
|
|
164
|
|
|
|
(20
|
)
|
|
|
146
|
|
|
|
(2
|
)
|
|
Currency and commodities
|
|
|
22
|
|
|
|
17
|
|
|
|
5
|
|
|
|
22
|
|
|
|
-
|
|
|
Alternatives subtotal
|
|
|
166
|
|
|
|
181
|
|
|
|
(15
|
)
|
|
|
168
|
|
|
|
(2
|
)
|
|
Long-term
|
|
|
2,403
|
|
|
|
2,256
|
|
|
|
147
|
|
|
|
2,368
|
|
|
|
35
|
|
|
Cash management
|
|
|
127
|
|
|
|
103
|
|
|
|
24
|
|
|
|
118
|
|
|
|
9
|
|
|
Total base fees
|
|
|
2,530
|
|
|
|
2,359
|
|
|
|
171
|
|
|
|
2,486
|
|
|
|
44
|
|
|
Investment advisory performance fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
15
|
|
|
|
11
|
|
|
|
4
|
|
|
|
35
|
|
|
|
(20
|
)
|
|
Fixed income
|
|
|
10
|
|
|
|
5
|
|
|
|
5
|
|
|
|
4
|
|
|
|
6
|
|
|
Multi-asset
|
|
|
5
|
|
|
|
3
|
|
|
|
2
|
|
|
|
13
|
|
|
|
(8
|
)
|
|
Alternatives
|
|
|
40
|
|
|
|
15
|
|
|
|
25
|
|
|
|
77
|
|
|
|
(37
|
)
|
|
Total performance fees
|
|
|
70
|
|
|
|
34
|
|
|
|
36
|
|
|
|
129
|
|
|
|
(59
|
)
|
|
Technology and risk management revenue(1)
|
|
|
158
|
|
|
|
141
|
|
|
|
17
|
|
|
|
157
|
|
|
|
1
|
|
|
Distribution fees
|
|
|
7
|
|
|
|
11
|
|
|
|
(4
|
)
|
|
|
9
|
|
|
|
(2
|
)
|
|
Advisory and other revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory(1)
|
|
|
24
|
|
|
|
30
|
|
|
|
(6
|
)
|
|
|
40
|
|
|
|
(16
|
)
|
|
Other
|
|
|
35
|
|
|
|
49
|
|
|
|
(14
|
)
|
|
|
69
|
|
|
|
(34
|
)
|
|
Advisory and other revenue
|
|
|
59
|
|
|
|
79
|
|
|
|
(20
|
)
|
|
|
109
|
|
|
|
(50
|
)
|
|
Total revenue
|
|
$
|
2,824
|
|
|
$
|
2,624
|
|
|
$
|
200
|
|
|
$
|
2,890
|
|
|
$
|
(66
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Beginning with the first quarter of 2017, Aladdin revenue
previously reported within “BlackRock Solutions and
advisory” is currently presented within “Technology and risk
management revenue” on the condensed consolidated statements of
income. The remaining “BlackRock Solutions and advisory”
revenue is currently reported as part of “Advisory and other
revenue.” Under the historical presentation, BlackRock Solutions
and advisory revenue would have totaled $182 million for the three
months ended March 31, 2017. Prior period amounts reported for BlackRock
Solutions and advisory of $171 million and $197 million for
the three months ended March 31, 2016 and December 31, 2016,
respectively, have been reclassified to conform to the current
presentation.
|
|
|
|
|
Highlights
-
Investment advisory, administration fees and securities lending
revenue increased $171 million from the first quarter of 2016
reflecting the impact of higher markets and organic growth on average
AUM, and the effect of AUM acquired in the BofA Global Capital
Management transaction, partially offset by the impact of foreign
exchange movements and the effect of one less day in the current
quarter. Securities lending revenue of $141 million in the current
quarter compared with $148 million in the first quarter of 2016.
Investment
advisory, administration fees and securities lending revenue increased
$44 million from the fourth quarter of 2016, driven by higher average
AUM, partially offset by the effect of two less days in the current
quarter. Securities lending revenue of $141 million in the current
quarter compared with $138 million in the fourth quarter of 2016.
-
Performance fees increased $36 million from the first quarter of 2016,
primarily reflecting higher revenue from alternative products.
Performance
fees decreased $59 million from the fourth quarter of 2016, primarily
due to seasonally higher revenue from funds with a performance
measurement period that ended in the fourth quarter of 2016.
-
Technology and risk management revenue increased $17 million from the
first quarter of 2016 and $1 million from the fourth quarter of 2016
reflecting ongoing demand for Aladdin.
-
Advisory and other revenue decreased $50 million from the fourth
quarter of 2016 reflecting lower earnings from strategic minority
investments, lower fees from advisory assignments and lower transition
management service fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY OF OPERATING EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
|
|
|
Three
|
|
|
|
|
|
|
|
|
Months Ended
|
|
|
|
|
|
|
Months Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
(in millions), (unaudited)
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2016
|
|
|
Change
|
|
|
Operating expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits
|
|
$
|
1,021
|
|
|
$
|
947
|
|
|
$
|
74
|
|
|
$
|
987
|
|
|
$
|
34
|
|
|
Distribution and servicing costs
|
|
|
117
|
|
|
|
97
|
|
|
|
20
|
|
|
|
109
|
|
|
|
8
|
|
|
Amortization of deferred sales commissions
|
|
|
5
|
|
|
|
10
|
|
|
|
(5
|
)
|
|
|
7
|
|
|
|
(2
|
)
|
|
Direct fund expense
|
|
|
208
|
|
|
|
188
|
|
|
|
20
|
|
|
|
183
|
|
|
|
25
|
|
|
General and administration
|
|
|
301
|
|
|
|
318
|
|
|
|
(17
|
)
|
|
|
355
|
|
|
|
(54
|
)
|
|
Restructuring charge
|
|
|
-
|
|
|
|
76
|
|
|
|
(76
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Amortization of intangible assets
|
|
|
25
|
|
|
|
25
|
|
|
|
-
|
|
|
|
24
|
|
|
|
1
|
|
|
Total operating expense
|
|
$
|
1,677
|
|
|
$
|
1,661
|
|
|
$
|
16
|
|
|
$
|
1,665
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights
-
Employee compensation and benefits expense increased $74 million from
the first quarter of 2016, reflecting higher incentive compensation,
primarily driven by higher performance fees and higher operating
income, and approximately $20 million of severance and accelerated
compensation expense associated with the repositioning of the active
equity platform.
Employee compensation and benefits expense
increased $34 million from the fourth quarter of 2016, reflecting the
previously mentioned repositioning costs, higher seasonal employer
payroll taxes, and an increase in stock-based compensation expense
related to the effect of additional grants at the end of January 2017,
partially offset by lower incentive compensation, driven primarily by
lower performance fees and lower operating income.
-
Direct fund expense increased $20 million from the first quarter of
2016 and $25 million from the fourth quarter of 2016, reflecting
higher average AUM.
-
General and administration expense decreased $17 million from the
first quarter of 2016, reflecting lower discretionary marketing and
promotional expense, and $54 million from the fourth quarter of 2016,
reflecting lower marketing and promotional expense and the impact of
foreign exchange remeasurement expense. General and administration
expense in the first quarter of 2017 included $2 million of one-time
costs related to the repositioning of the active equity platform.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
|
|
Three
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Months Ended
|
|
|
|
|
|
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
(in millions), (unaudited)
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Change
|
|
|
2016
|
|
Change
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
$
|
|
269
|
|
|
$
|
|
268
|
|
|
|
$
|
1
|
|
|
$ 336
|
|
|
$
|
(67
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights
-
First quarter 2017 income tax expense included an $81 million discrete
tax benefit reflecting the adoption of new accounting guidance related
to stock-based compensation awards that vested in the first quarter of
2017.
|
|
|
SUMMARY AND RECONCILIATION OF U.S. GAAP NONOPERATING INCOME
(EXPENSE) TO
NONOPERATING INCOME (EXPENSE), AS
ADJUSTED
|
|
|
|
Three Months
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
Ended
|
|
|
|
|
|
|
Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
(in millions), (unaudited)
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2016
|
|
|
Change
|
|
|
Nonoperating income (expense), GAAP basis
|
|
$
|
(7
|
)
|
|
$
|
(48
|
)
|
|
$
|
41
|
|
|
$
|
(38
|
)
|
|
$
|
31
|
|
|
Less: Net income (loss) attributable to
noncontrolling interests ("NCI")
|
|
|
9
|
|
|
|
(10
|
)
|
|
|
19
|
|
|
-
|
|
|
|
9
|
|
|
Nonoperating income (expense), as adjusted(1)(2)
|
|
$
|
(16
|
)
|
|
$
|
(38
|
)
|
|
$
|
22
|
|
|
$
|
(38
|
)
|
|
$
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
Ended
|
|
|
|
|
|
|
Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
(in millions), (unaudited)
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2016
|
|
|
Change
|
|
|
Net gain (loss) on investments(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
(5
|
)
|
|
$
|
11
|
|
|
Real assets
|
|
|
1
|
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
3
|
|
|
|
(2
|
)
|
|
Other alternatives(3)
|
|
|
14
|
|
|
|
-
|
|
|
|
14
|
|
|
|
8
|
|
|
|
6
|
|
|
Other investments(4)
|
|
|
21
|
|
|
|
4
|
|
|
|
17
|
|
|
-
|
|
|
|
21
|
|
|
Total net gain (loss) on investments(1)(2)
|
|
|
42
|
|
|
|
8
|
|
|
|
34
|
|
|
|
6
|
|
|
|
36
|
|
|
Interest and dividend income
|
|
|
7
|
|
|
|
5
|
|
|
|
2
|
|
|
|
7
|
|
|
|
-
|
|
|
Interest expense
|
|
|
(65
|
)
|
|
|
(51
|
)
|
|
|
(14
|
)
|
|
|
(51
|
)
|
|
|
(14
|
)
|
|
Net interest expense
|
|
|
(58
|
)
|
|
|
(46
|
)
|
|
|
(12
|
)
|
|
|
(44
|
)
|
|
|
(14
|
)
|
|
Nonoperating income (expense), as adjusted(1)(2)
|
|
$
|
(16
|
)
|
|
$
|
(38
|
)
|
|
$
|
22
|
|
|
$
|
(38
|
)
|
|
$
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Net of net income (loss) attributable to NCI.
|
|
(2)
|
|
Management believes nonoperating income (expense), as adjusted, is
an effective measure for reviewing BlackRock’s nonoperating
contribution to results. For more information on other as adjusted
items and the reconciliation to GAAP see notes (1) through (3) to
the Condensed Consolidated Statements of Income and Supplemental
Information.
|
|
(3)
|
|
Amounts primarily include net gains (losses) related to direct hedge
fund strategies and hedge fund solutions.
|
|
(4)
|
|
Amounts include net gains (losses) related to equity and fixed
income investments, and BlackRock’s seed capital hedging program.
|
|
|
|
|
Highlights
-
Net gain (loss) on investments increased from the first quarter of
2016 and the fourth quarter of 2016, primarily driven by higher marks.
-
First quarter 2017 interest expense included a make-whole redemption
premium of $14 million related to the current quarter’s refinancing of
$700 million of 6.25% notes, which were called prior to their
September 2017 maturity.
ECONOMIC TANGIBLE ASSETS
The Company presents economic tangible assets as additional information
to enable investors to exclude certain assets that have equal and
offsetting liabilities or noncontrolling interests that ultimately do
not have an impact on stockholders’ equity or cash flows. In addition,
goodwill and intangible assets are excluded from economic tangible
assets.
Economic tangible assets include cash, receivables, seed and
co-investments, regulatory investments and other assets.
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
(in billions), (unaudited)
|
|
2017 (Est.)
|
|
|
2016
|
|
|
Total balance sheet assets
|
|
$
|
231
|
|
|
$
|
220
|
|
|
Separate account assets and separate account collateral held under
securities lending agreements
|
|
|
(187
|
)
|
|
|
(177
|
)
|
|
Consolidated sponsored investment funds
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
Goodwill and intangible assets, net
|
|
|
(30
|
)
|
|
|
(30
|
)
|
|
Economic tangible assets
|
|
$
|
13
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING
MARGIN TO OPERATING
INCOME AND OPERATING MARGIN, AS
ADJUSTED
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
(in millions), (unaudited)
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
Operating income, GAAP basis
|
|
$
|
1,147
|
|
|
$
|
963
|
|
|
$
|
1,225
|
|
|
Non-GAAP expense adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge
|
|
|
-
|
|
|
|
76
|
|
|
-
|
|
|
PNC LTIP funding obligation
|
|
|
4
|
|
|
|
8
|
|
|
|
7
|
|
|
Operating income, as adjusted
|
|
$
|
1,151
|
|
|
$
|
1,047
|
|
|
$
|
1,232
|
|
|
Revenue, GAAP basis
|
|
$
|
2,824
|
|
|
$
|
2,624
|
|
|
$
|
2,890
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution and servicing costs
|
|
|
(117
|
)
|
|
|
(97
|
)
|
|
|
(109
|
)
|
|
Amortization of deferred sales commissions
|
|
|
(5
|
)
|
|
|
(10
|
)
|
|
|
(7
|
)
|
|
Revenue used for operating margin measurement
|
|
$
|
2,702
|
|
|
$
|
2,517
|
|
|
$
|
2,774
|
|
|
Operating margin, GAAP basis
|
|
|
40.6
|
%
|
|
|
36.7
|
%
|
|
|
42.4
|
%
|
|
Operating margin, as adjusted
|
|
|
42.6
|
%
|
|
|
41.6
|
%
|
|
|
44.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See note (1) to the Condensed Consolidated Statements of Income
and Supplemental Information for more information on as adjusted
items and the reconciliation to GAAP.
|
|
|
|
|
RECONCILIATION OF U.S. GAAP NET INCOME ATTRIBUTABLE TO
BLACKROCK TO NET INCOME
ATTRIBUTABLE TO BLACKROCK, AS
ADJUSTED
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
(in millions, except per share data), (unaudited)
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
Net income attributable to BlackRock, Inc., GAAP basis
|
|
$
|
862
|
|
|
$
|
657
|
|
|
$
|
851
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge (including $23 tax benefit)
|
|
|
-
|
|
|
|
53
|
|
|
|
-
|
|
|
PNC LTIP funding obligation, net of tax
|
|
|
3
|
|
|
|
5
|
|
|
|
5
|
|
|
Income tax matters
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
Net income attributable to BlackRock, Inc., as adjusted
|
|
$
|
865
|
|
|
$
|
711
|
|
|
$
|
852
|
|
|
Diluted weighted-average common shares outstanding(3)
|
|
|
164.9
|
|
|
|
167.4
|
|
|
|
165.9
|
|
|
Diluted earnings per common share, GAAP basis(3)
|
|
$
|
5.23
|
|
|
$
|
3.92
|
|
|
$
|
5.13
|
|
|
Diluted earnings per common share, as adjusted(3)
|
|
$
|
5.25
|
|
|
$
|
4.25
|
|
|
$
|
5.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes (2) and (3) to the Condensed Consolidated Statements of
Income and Supplemental Information for more information on as
adjusted items and the reconciliation to GAAP.
|
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 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. Management also uses
non-GAAP financial measures as a benchmark to compare its performance
with other companies and to enhance the comparability of this
information for the reporting periods presented. Non-GAAP measures may
pose limitations because they do not include all of BlackRock’s revenue
and expense. 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.
Management uses both GAAP and non-GAAP financial measures in evaluating
BlackRock’s financial performance. Adjustments to GAAP financial
measures (“non-GAAP adjustments”) include certain items management deems
nonrecurring or that occur infrequently, transactions that ultimately
will not impact BlackRock’s book value or certain tax items that do not
impact cash flow.
Computations for all periods are derived from the condensed consolidated
statements of income as follows:
(1) Operating income, as adjusted, and operating margin, as adjusted:
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, 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 The PNC
Financial Services Group, Inc. (“PNC”) has been excluded because it
ultimately does not impact BlackRock’s book value. For the three
months ended March 31, 2016, a restructuring charge comprised of
severance and accelerated amortization expense of previously granted
deferred compensation awards has been excluded to provide more
meaningful analysis of BlackRock’s ongoing operations and to ensure
comparability among periods presented.
-
Revenue used for operating margin, as adjusted, excludes distribution
and servicing costs paid to related parties and other third parties.
Management believes such costs represent a benchmark for the amount of
revenue passed through to external parties who distribute the
Company’s products. In addition, 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 revenue.
(2) 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 aforementioned discussion regarding operating income, as adjusted,
and operating margin, as adjusted, for information on the PNC LTIP
funding obligation and the restructuring charge.
For each period presented, the non-GAAP adjustment related to the
restructuring charge and PNC LTIP funding obligation was tax effected at
the respective blended rates applicable to the adjustments. Amounts for
income tax matters represent net noncash (benefits) expense primarily
associated with the revaluation of certain deferred tax liabilities
related to intangible assets and goodwill. Amounts have been excluded
from the as adjusted results as these items will not have a cash flow
impact and to ensure comparability among periods presented.
Per share amounts reflect net income attributable to BlackRock, as
adjusted divided by diluted weighted average common shares outstanding.
(3) 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 potential for human error in connection with BlackRock’s operational
systems; (10) 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 PNC; (11) changes in law
and policy accompanying the new administration and uncertainty pending
any such changes; (12) 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; (13) the ability to attract and retain highly talented
professionals; (14) fluctuations in the carrying value of BlackRock’s
economic investments; (15) 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; (16)
BlackRock’s success in negotiating distribution arrangements and
maintaining distribution channels for its products; (17) the failure by
a key vendor of BlackRock to fulfill its obligations to the Company;
(18) any disruption to the operations of third parties whose functions
are integral to BlackRock’s ETF platform; (19) 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 (20) 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 March 31, 2017 and
is based on preliminary 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 February 28, 2017. The performance
data does not include accounts terminated prior to March 31, 2017 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 institutional and
high net worth separate accounts, and net-of-fees for retail funds. The
performance tracking shown for index accounts is based on gross-of-fees
performance and includes all institutional accounts and all iShares
funds globally using an index strategy. AUM information is based on AUM
available as of March 31, 2017 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.
Performance shown is derived from applicable benchmarks or peer median
information, as selected by BlackRock, Inc. Peer medians are based in
part on data either from Lipper, Inc. or Morningstar, Inc. for each
included product.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170419005326/en/
BlackRock, Inc.
Investor Relations:
Tom Wojcik, 212.810.8127
or
Media
Relations:
Brian Beades, 212.810.5596
Source: BlackRock, Inc.