Press Releases Details

• $96 billion of total net inflows in the third quarter reflects continued strength of diversified business model
• $76 billion of long-term net inflows, positive across client type, investment style and region
• 14% increase in revenue year-over-year driven by growth in base fees, performance fees and technology and risk management revenue
• 15% increase in operating income year-over-year reflects operating margin expansion
• 10% increase in diluted EPS (15% as adjusted) year-over-year
• Consistent capital management with $275 million of quarterly share repurchases

NEW YORK--(BUSINESS WIRE)-- BlackRock, Inc. (NYSE: BLK):

FINANCIAL RESULTS
			Q3				Q3							Q2							Nine Months Ended September 30,
(in millions, except per share data)			2017				2016				Change			2017				Change			2017			2016				Change
AUM			$	5,976,892			$	5,117,421			17	%		$	5,689,273			5	%		$	5,976,892		$	5,117,421			17	%
Total net flows			$	96,112			$	69,809						$	103,616						$	264,326		$	104,140
GAAP basis:
Revenue			$	3,233			$	2,837			14	%		$	2,965			9	%		$	9,022		$	8,265			9	%
Operating income			$	1,394			$	1,209			15	%		$	1,242			12	%		$	3,783		$	3,345			13	%
Operating margin				43.1	%			42.6	%		50	bps			41.9	%		120	bps			41.9	%		40.5	%		140	bps
Net income(1)			$	947			$	875			8	%		$	857			11	%		$	2,666		$	2,321			15	%
Diluted EPS			$	5.78			$	5.26			10	%		$	5.22			11	%		$	16.23		$	13.92			17	%
Weighted average diluted shares				163.8				166.3			(1	)%			164.1			-	%			164.3			166.8			(1	)%
As Adjusted:
Operating income(2)			$	1,398			$	1,216			15	%		$	1,246			12	%		$	3,795		$	3,442			10	%
Operating margin(2)				45.0	%			44.8	%		20	bps			43.9	%		110	bps			43.9	%		43.5	%		40	bps
Net income(1) (2)			$	969			$	854			13	%		$	860			13	%		$	2,694		$	2,362			14	%
Diluted EPS(2)			$	5.92			$	5.14			15	%		$	5.24			13	%		$	16.40		$	14.16			16	%

(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 and nine months ended September 30, 2017.

“BlackRock’s third quarter results reflect the continued growth of our global investment and technology platform and the trusted relationships we have built with our clients,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “Our ability to create investment solutions from a broad range of products – spanning index to illiquid alternatives – combined with industry leading technology and risk management, is resonating with clients and driving more impactful interactions than ever before. As we deepen and expand our relationships with clients and partners, we recognize and embrace the growing responsibility we have on a daily basis to help them achieve their goals.

“Strong organic asset and base fee growth are a direct result of the investments we are making in our platform. We saw $96 billion of total net inflows in the third quarter. This brings year-to-date total organic growth to $264 billion, already surpassing our total flows for the full year of 2016.

“iShares^® third quarter net inflows of $52 billion were diversified across both core and non-core strategies. Our continued investment in the iShares franchise, including product innovation, investor education and digital distribution, is driving accelerated growth and increased market share. During the third quarter, we again achieved the #1 market share of ETF flows globally, in both the United States and Europe, and in both equity and fixed income.

“In today’s markets, clients rely on both index and alpha-seeking building blocks to achieve their desired outcomes. Strong investment performance drove third quarter net inflows of $6 billion in our active platform, led by fixed income and multi-asset offerings, which contributed to our strong organic base fee growth during the quarter.

“Technology and risk management revenue, powered by Aladdin^®, increased 15% year-over-year as institutions turn to BlackRock for our risk management and analytics capabilities. As technology continues to enhance our alpha-generation and distribution capabilities, and continues to drive efficiencies in our operational infrastructure, it is becoming a larger focus of investment across the entire platform. Our technology investments are contributing significantly to both organic growth and revenue growth and will be critical to driving operating leverage over time.

“With regulation, technology and market forces transforming the ecosystem for asset and wealth managers globally, BlackRock is at the forefront of change in the industry. As our focus remains on the long-term, we continue to purposefully and prudently invest in the future of our business, reinforcing our differentiated ability to serve clients and generate long-term value for shareholders.”

RESULTS BY CLIENT TYPE
											September 30, 2017					Q3 2017
		Q3 2017			September 30, 2017			Q3 2017			AUM					Base fees(1)
(in millions), (unaudited)		Net flows			AUM			Base fees(1)			% of Total					% of Total
Retail		$	7,367		$	608,521		$	843			10	%				30	%
iShares ETFs			52,306			1,640,437			1,067			27	%				38	%
Institutional:
Active			155			1,105,224			489			18	%				18	%
Index			15,976			2,194,701			249			38	%				9	%
Total institutional			16,131			3,299,925			738			56	%				27	%
Long-term			75,804			5,548,883			2,648			93	%				95	%
Cash management			20,381			425,423			144			7	%				5	%
Advisory			(73	)		2,586			-			-					-
Total		$	96,112		$	5,976,892		$	2,792			100	%				100	%
RESULTS BY PRODUCT TYPE
											September 30, 2017					Q3 2017
		Q3 2017			September 30, 2017			Q3 2017			AUM					Base fees(1)
(in millions), (unaudited)		Net flows			AUM			Base fees(1)			% of Total					% of Total
Equity		$	11,935		$	3,172,465		$	1,427			53	%				51	%
Fixed income			59,549			1,788,420			740			30	%				27	%
Multi-asset			4,334			457,027			289			8	%				10	%
Alternatives			(14	)		130,971			192			2	%				7	%
Long-term			75,804			5,548,883			2,648			93	%				95	%
Cash management			20,381			425,423			144			7	%				5	%
Advisory			(73	)		2,586			-			-					-
Total		$	96,112		$	5,976,892		$	2,792			100	%				100	%
RESULTS BY INVESTMENT STYLE
											September 30, 2017					Q3 2017
		Q3 2017			September 30, 2017			Q3 2017			AUM					Base fees(1)
(in millions), (unaudited)		Net flows			AUM			Base fees(1)			% of Total					% of Total
Active		$	5,796		$	1,645,352		$	1,318			28	%				47	%
Index and iShares ETFs			70,008			3,903,531			1,330			65	%				48	%
Long-term			75,804			5,548,883			2,648			93	%				95	%
Cash management			20,381			425,423			144			7	%				5	%
Advisory			(73	)		2,586			-			-					-
Total		$	96,112		$	5,976,892		$	2,792			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 $42.3 billion, $23.6 billion and $9.9 billion from clients in the Americas, EMEA and Asia-Pacific, respectively. At September 30, 2017, BlackRock managed 64% of its long-term AUM for clients in the Americas, 28% for clients in EMEA and 8% for clients in Asia-Pacific.

The Company’s net flows by client type for the third quarter of 2017 are presented below.

• Retail long-term net inflows of $7.4 billion reflected net inflows of $3.7 billion in the United States and $3.7 billion internationally. Fixed income net inflows of $4.6 billion were diversified across our top-performing active platform, led by net inflows into unconstrained, municipal and emerging market debt categories. Equity net inflows of $1.7 billion reflected inflows into index mutual funds. Multi-asset net inflows of $1.0 billion were largely due to inflows into the Multi-asset Income fund family, partially offset by outflows from world allocation strategies.
• iShares ETFs long-term net inflows of $52.3 billion reflected strength in iShares Core, precision exposure and financial instrument ETFs. Equity net inflows of $33.1 billion were driven by both U.S. and international equity market exposures. Fixed income net inflows of $17.5 billion reflected inflows into treasury, investment grade corporate and broad fixed income funds. Commodities iShares generated $1.5 billion of net inflows.
• Institutional active long-term net inflows of $0.2 billion were led by multi-asset net inflows of $3.5 billion, reflecting ongoing demand for the LifePath^® target-date series and factors strategies, and fixed income net inflows of $0.5 billion. Equity net outflows of $3.3 billion were driven by fundamental and scientific active equities. Alternatives had net outflows of $0.5 billion (including $0.6 billion return of capital).
• Institutional index long-term net inflows of $16.0 billion included fixed income net inflows of $36.9 billion, driven by demand for liability-driven solutions, partially offset by equity net outflows of $19.6 billion.

Cash management AUM increased 6% to $425.4 billion, driven by $20.4 billion of net inflows.

INVESTMENT PERFORMANCE AT SEPTEMBER 30, 2017 (1)
		One-year period				Three-year period				Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable			78%				78%				89%
Tax-exempt			55%				51%				53%
Index AUM within or above applicable tolerance			97%				94%				98%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental			59%				80%				69%
Scientific			86%				89%				91%
Index AUM within or above applicable tolerance			97%				98%				99%

⁽¹⁾ Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to the Performance Notes for 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, October 11, 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 92702706). 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, October 11, 2017 and ending at midnight on Wednesday, October 25, 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 92702706. To access the webcast, please visit the investor relations section of www.blackrock.com.

About BlackRock

BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of September 30, 2017, the firm manages approximately $5.977 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | 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
		September 30,												June 30,
		2017				2016				Change				2017				Change
Revenue
Investment advisory, administration fees and securities lending revenue		$	2,792			$	2,546			$	246			$	2,675			$	117
Investment advisory performance fees			191				58				133				48				143
Technology and risk management revenue(a)			175				152				23				164				11
Distribution fees			5				10				(5	)			5				-
Advisory and other revenue(a)			70				71				(1	)			73				(3	)
Total revenue			3,233				2,837				396				2,965				268
Expense
Employee compensation and benefits			1,088				969				119				999				89
Distribution and servicing costs			123				114				9				121				2
Amortization of deferred sales commissions			4				8				(4	)			4				-
Direct fund expense			234				200				34				224				10
General and administration			363				312				51				350				13
Amortization of intangible assets			27				25			2					25				2
Total expense			1,839				1,628				211				1,723				116
Operating income			1,394				1,209				185				1,242				152
Nonoperating income (expense)
Net gain (loss) on investments			41				31				10				36				5
Interest and dividend income			15				22				(7	)			13				2
Interest expense			(46	)			(52	)			6				(48	)			2
Total nonoperating income (expense)			10				1				9				1				9
Income before income taxes			1,404				1,210				194				1,243				161
Income tax expense			445				333				112				376				69
Net income			959				877				82				867				92
Less:
Net income (loss) attributable to noncontrolling interests			12				2				10				10				2
Net income attributable to BlackRock, Inc.		$	947			$	875			$	72			$	857			$	90
Weighted-average common shares outstanding
Basic			161,872,716				164,129,214				(2,256,498	)			162,502,465				(629,749	)
Diluted			163,773,546				166,256,598				(2,483,052	)			164,149,861				(376,315	)
Earnings per share attributable to BlackRock, Inc. common stockholders (3)
Basic		$	5.85			$	5.33			$	0.52			$	5.27			$	0.58
Diluted		$	5.78			$	5.26			$	0.52			$	5.22			$	0.56
Cash dividends declared and paid per share		$	2.50			$	2.29			$	0.21			$	2.50			$	-
Supplemental information:
AUM (end of period)		$	5,976,892			$	5,117,421			$	859,471			$	5,689,273			$	287,619
Shares outstanding (end of period)			161,597,770				163,858,070				(2,260,300	)			162,207,216				(609,446	)
GAAP:
Operating margin			43.1	%			42.6	%			50	bps			41.9	%			120	bps
Effective tax rate			32.0	%			27.6	%			440	bps			30.5	%			150	bps
As adjusted:
Operating income (1)		$	1,398			$	1,216			$	182			$	1,246			$	152
Operating margin (1)			45.0	%			44.8	%			20	bps			43.9	%			110	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests		$	(2	)		$	(1	)		$	(1	)		$	(9	)		$	7
Net income attributable to BlackRock, Inc. (2)		$	969			$	854			$	115			$	860			$	109
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2) (3)		$	5.92			$	5.14			$	0.78			$	5.24			$	0.68
Effective tax rate			30.6	%			29.7	%			90	bps			30.5	%			10	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” has been presented within “Technology and risk management revenue” on the condensed consolidated statements of income. The remaining previously reported “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 $200 million for the three months ended September 30, 2017. The prior period amount reported for BlackRock Solutions and advisory of $174 million for the three months ended September 30, 2016 has been reclassified to conform to the current presentation. See the Summary of Revenue for further information.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except shares and per share data), (unaudited)
		Nine Months Ended
		September 30,
		2017				2016				Change
Revenue
Investment advisory, administration fees and securities lending revenue		$	7,997			$	7,394			$	603
Investment advisory performance fees			309				166				143
Technology and risk management revenue(a)			497				439				58
Distribution fees			17				32				(15	)
Advisory and other revenue(a)			202				234				(32	)
Total revenue			9,022				8,265				757
Expense
Employee compensation and benefits			3,108				2,893				215
Distribution and servicing costs			361				320				41
Amortization of deferred sales commissions			13				27				(14	)
Direct fund expense			666				583				83
General and administration			1,014				946				68
Restructuring charge			-				76				(76	)
Amortization of intangible assets			77				75				2
Total expense			5,239				4,920				319
Operating income			3,783				3,345				438
Nonoperating income (expense)
Net gain (loss) on investments			128				49				79
Interest and dividend income			35				33				2
Interest expense			(159	)			(154	)			(5	)
Total nonoperating income (expense)			4				(72	)			76
Income before income taxes			3,787				3,273				514
Income tax expense			1,090				954				136
Net income			2,697				2,319				378
Less:
Net income (loss) attributable to noncontrolling interests			31				(2	)			33
Net income attributable to BlackRock, Inc.		$	2,666			$	2,321			$	345
Weighted-average common shares outstanding
Basic			162,459,737				164,756,355				(2,296,618	)
Diluted			164,289,042				166,760,912				(2,471,870	)
Earnings per share attributable to BlackRock, Inc. common stockholders (3)
Basic		$	16.41			$	14.09			$	2.32
Diluted		$	16.23			$	13.92			$	2.31
Cash dividends declared and paid per share		$	7.50			$	6.87			$	0.63
Supplemental information:
AUM (end of period)		$	5,976,892			$	5,117,421			$	859,471
Shares outstanding (end of period)			161,597,770				163,858,070				(2,260,300	)
GAAP:
Operating margin			41.9	%			40.5	%			140		bps
Effective tax rate			29.0	%			29.1	%			(10	)	bps
As adjusted:
Operating income (1)		$	3,795			$	3,442			$	353
Operating margin (1)			43.9	%			43.5	%			40		bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests		$	(27	)		$	(70	)		$	43
Net income attributable to BlackRock, Inc. (2)		$	2,694			$	2,362			$	332
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2) (3)		$	16.40			$	14.16			$	2.24
Effective tax rate			28.5	%			30.0	%			(150	)	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” has been presented within “Technology and risk management revenue” on the condensed consolidated statements of income. The remaining previously reported “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 $571 million for the nine months ended September 30, 2017. The prior period amount reported for BlackRock Solutions and advisory of $517 million for the nine months ended September 30, 2016 has 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
		June 30, 2017				inflows (outflows)				Market change				FX impact (1)				September 30, 2017				Average AUM (2)
Retail:
Equity		$	215,808			$	1,734			$	6,110			$	2,016			$	225,668			$	220,944
Fixed income			240,932				4,613				1,569				1,234				248,348				245,193
Multi-asset			113,903				1,046				2,796				317				118,062				116,183
Alternatives			16,113				(26	)			224				132				16,443				17,198
Retail subtotal			586,756				7,367				10,699				3,699				608,521				599,518
iShares ETFs:
Equity			1,139,850				33,102				50,806				4,637				1,228,395				1,184,488
Fixed income			364,991				17,526				1,055				2,695				386,267				376,880
Multi-asset			3,240				169				77			5					3,491				3,359
Alternatives			20,155				1,509				576				44				22,284				21,283
iShares ETFs subtotal			1,528,236				52,306				52,514				7,381				1,640,437				1,586,010
Institutional:
Active:
Equity			126,446				(3,296	)			5,866				1,350				130,366				128,842
Fixed income			553,652				496				4,513				3,366				562,027				559,121
Multi-asset			311,921				3,477				7,827				4,508				327,733				320,619
Alternatives			83,836				(522	)			1,161				623				85,098				83,851
Active subtotal			1,075,855				155				19,367				9,847				1,105,224				1,092,433
Index:
Equity			1,532,592				(19,605	)			65,291				9,758				1,588,036				1,562,897
Fixed income			545,049				36,914				(1,451	)			11,266				591,778				572,049
Multi-asset			7,672				(358	)			389				38				7,741				7,824
Alternatives			7,880				(975	)			156				85				7,146				7,544
Index subtotal			2,093,193				15,976				64,385				21,147				2,194,701				2,150,314
Institutional subtotal			3,169,048				16,131				83,752				30,994				3,299,925				3,242,747
Long-term			5,284,040				75,804				146,965				42,074				5,548,883				5,428,275
Cash management			402,575				20,381				224				2,243				425,423				415,082
Advisory (3)			2,658				(73	)			(98	)			99				2,586				2,621
Total		$	5,689,273			$	96,112			$	147,091			$	44,416			$	5,976,892			$	5,845,978
Current Quarter Component Changes by Investment Style and Product Type (Long-term)
						Net
		June 30, 2017				inflows (outflows)				Market change				FX impact (1)				September 30, 2017				Average AUM (2)
Active:
Equity		$	290,196			$	(3,015	)		$	10,433			$	2,562			$	300,176			$	295,895
Fixed income			782,622				4,836				6,079				4,303				797,840				792,042
Multi-asset			425,824				4,523				10,623				4,825				445,795				436,802
Alternatives			99,949				(548	)			1,385				755				101,541				101,049
Active subtotal			1,598,591				5,796				28,520				12,445				1,645,352				1,625,788
Index and iShares ETFs:
iShares ETFs:
Equity			1,139,850				33,102				50,806				4,637				1,228,395				1,184,488
Fixed income			364,991				17,526				1,055				2,695				386,267				376,880
Multi-asset			3,240				169				77			5					3,491				3,359
Alternatives			20,155				1,509				576				44				22,284				21,283
iShares ETFs subtotal			1,528,236				52,306				52,514				7,381				1,640,437				1,586,010
Non-ETF Index:
Equity			1,584,650				(18,152	)			66,834				10,562				1,643,894				1,616,788
Fixed income			557,011				37,187				(1,448	)			11,563				604,313				584,321
Multi-asset			7,672				(358	)			389				38				7,741				7,824
Alternatives			7,880				(975	)			156				85				7,146				7,544
Non-ETF Index subtotal			2,157,213				17,702				65,931				22,248				2,263,094				2,216,477
Index & iShares ETFs subtotal			3,685,449				70,008				118,445				29,629				3,903,531				3,802,487
Long-term		$	5,284,040			$	75,804			$	146,965			$	42,074			$	5,548,883			$	5,428,275
Current Quarter Component Changes by Product Type (Long-term)
						Net
		June 30, 2017				inflows (outflows)				Market change				FX impact (1)				September 30, 2017				Average AUM (2)
Equity		$	3,014,696			$	11,935			$	128,073			$	17,761			$	3,172,465			$	3,097,171
Fixed income			1,704,624				59,549				5,686				18,561				1,788,420				1,753,243
Multi-asset			436,736				4,334				11,089				4,868				457,027				447,985
Alternatives:
Core			97,551				(504	)			1,355				766				99,168				98,746
Currency and commodities(4)			30,433				490				762				118				31,803				31,130
Alternatives subtotal			127,984				(14	)			2,117				884				130,971				129,876
Long-term		$	5,284,040			$	75,804			$	146,965			$	42,074			$	5,548,883			$	5,428,275

(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-to-Date Component Changes by Client Type and Product Type
						Net
		December 31, 2016				inflows (outflows)				Acquisition(1)				Market change				FX impact (2)				September 30, 2017				Average AUM (3)
Retail:
Equity		$	196,221			$	3,009			$	-			$	20,892			$	5,546			$	225,668			$	212,224
Fixed income			222,256				16,497				-				6,003				3,592				248,348				236,065
Multi-asset			107,997				(847	)			-				10,005				907				118,062				112,831
Alternatives			15,478				(158	)			-				725				398				16,443				16,522
Retail subtotal			541,952				18,501				-				37,625				10,443				608,521				577,642
iShares ETFs:
Equity			951,252				129,488				-				134,562				13,093				1,228,395				1,095,500
Fixed income			314,707				58,779				-				5,105				7,676				386,267				351,985
Multi-asset			3,149				61				-				272			9					3,491				3,122
Alternatives			18,771				2,213				-				1,138				162				22,284				20,470
iShares ETFs subtotal			1,287,879				190,541				-				141,077				20,940				1,640,437				1,471,077
Institutional:
Active:
Equity			120,699				(12,357	)			-				18,023				4,001				130,366				126,223
Fixed income			536,727				(2,967	)			-				17,705				10,562				562,027				551,117
Multi-asset			276,933				16,692				-				21,531				12,577				327,733				301,793
Alternatives			75,615				2,367				3,264				2,021				1,831				85,098				79,818
Active subtotal			1,009,974				3,735				3,264				59,280				28,971				1,105,224				1,058,951
Index:
Equity			1,389,004				(25,778	)			-				193,874				30,936				1,588,036				1,504,119
Fixed income			498,675				63,528				-				97				29,478				591,778				540,163
Multi-asset			6,928				(500	)			-				1,098				215				7,741				7,518
Alternatives			7,074				(367	)			-				194				245				7,146				7,538
Index subtotal			1,901,681				36,883				-				195,263				60,874				2,194,701				2,059,338
Institutional subtotal			2,911,655				40,618				3,264				254,543				89,845				3,299,925				3,118,289
Long-term			4,741,486				249,660				3,264				433,245				121,228				5,548,883				5,167,008
Cash management			403,584				14,854				-				850				6,135				425,423				406,729
Advisory (4)			2,782				(188	)			-				(189	)			181				2,586				2,691
Total		$	5,147,852			$	264,326			$	3,264			$	433,906			$	127,544			$	5,976,892			$	5,576,428
Year-to-Date Component Changes by Investment Style and Product Type (Long-term)
						Net
		December 31, 2016				inflows (outflows)				Acquisition(1)				Market change				FX impact (2)				September 30, 2017				Average AUM (3)
Active:
Equity		$	275,033			$	(17,475	)		$	-			$	34,966			$	7,652			$	300,176			$	289,036
Fixed income			749,996				10,910				-				23,502				13,432				797,840				775,996
Multi-asset			384,930				15,845				-				31,536				13,484				445,795				414,624
Alternatives			91,093				2,209				3,264				2,746				2,229				101,541				96,339
Active subtotal			1,501,052				11,489				3,264				92,750				36,797				1,645,352				1,575,995
Index and iShares ETFs:
iShares ETFs:
Equity			951,252				129,488				-				134,562				13,093				1,228,395				1,095,500
Fixed income			314,707				58,779				-				5,105				7,676				386,267				351,985
Multi-asset			3,149				61				-				272			9					3,491				3,122
Alternatives			18,771				2,213				-				1,138				162				22,284				20,470
iShares ETFs subtotal			1,287,879				190,541				-				141,077				20,940				1,640,437				1,471,077
Non-ETF Index:
Equity			1,430,891				(17,651	)			-				197,823				32,831				1,643,894				1,553,530
Fixed income			507,662				66,148				-				303				30,200				604,313				551,349
Multi-asset			6,928				(500	)			-				1,098				215				7,741				7,518
Alternatives			7,074				(367	)			-				194				245				7,146				7,539
Non-ETF Index subtotal			1,952,555				47,630				-				199,418				63,491				2,263,094				2,119,936
Index & iShares ETFs subtotal			3,240,434				238,171				-				340,495				84,431				3,903,531				3,591,013
Long-term		$	4,741,486			$	249,660			$	3,264			$	433,245			$	121,228			$	5,548,883			$	5,167,008
Year-to-Date Component Changes by Product Type (Long-term)
						Net
		December 31, 2016				inflows (outflows)				Acquisition(1)				September 30, change				FX impact (2)				September 30, 2017				Average AUM (3)
Equity		$	2,657,176			$	94,362			$	-			$	367,351			$	53,576			$	3,172,465			$	2,938,066
Fixed income			1,572,365				135,837				-				28,910				51,308				1,788,420				1,679,330
Multi-asset			395,007				15,406				-				32,906				13,708				457,027				425,264
Alternatives:
Core			88,630				2,353				3,264				2,753				2,168				99,168				93,963
Currency and commodities(5)			28,308				1,702				-				1,325				468				31,803				30,385
Alternatives subtotal			116,938				4,055				3,264				4,078				2,636				130,971				124,348
Long-term		$	4,741,486			$	249,660			$	3,264			$	433,245			$	121,228			$	5,548,883			$	5,167,008

(1)		Amount represents AUM acquired in the First Reserve Infrastructure business transaction in June 2017 (“First Reserve Transaction”).
(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 ten months.
(4)		Advisory AUM represents long-term portfolio liquidation assignments.
(5)		Amounts include commodity iShares ETFs.

ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Client Type and Product Type
						Net
		September 30, 2016				inflows (outflows)				Acquisition(1)				Market change				FX impact (2)				September 30, 2017				Average AUM (3)
Retail:
Equity		$	196,131			$	4,751			$	-			$	22,417			$	2,369			$	225,668			$	207,806
Fixed income			230,842				14,666				-				1,204				1,636				248,348				234,080
Multi-asset			111,369				(2,548	)			-				8,891				350				118,062				111,957
Alternatives			16,436				(814	)			-				693				128				16,443				16,435
Retail subtotal			554,778				16,055				-				33,205				4,483				608,521				570,278
iShares ETFs:
Equity			891,010				180,138				-				150,283				6,964				1,228,395				1,049,435
Fixed income			329,462				58,453				-				(5,239	)			3,591				386,267				345,114
Multi-asset			2,506				755				-				223				7				3,491				2,999
Alternatives			23,188				495				-				(1,448	)			49				22,284				20,724
iShares ETFs subtotal			1,246,166				239,841				-				143,819				10,611				1,640,437				1,418,272
Institutional:
Active:
Equity			123,770				(15,161	)			-				20,675				1,082				130,366				124,915
Fixed income			560,799				(1,700	)			-				3,168				(240	)			562,027				550,908
Multi-asset			280,406				22,351				-				19,126				5,850				327,733				295,524
Alternatives			74,678				4,553				3,264				2,092				511				85,098				78,678
Active subtotal			1,039,653				10,043				3,264				45,061				7,203				1,105,224				1,050,025
Index:
Equity			1,355,128				(17,400	)			-				246,625				3,683				1,588,036				1,468,656
Fixed income			507,165				89,725				-				(15,805	)			10,693				591,778				528,790
Multi-asset			7,980				(296	)			-				371				(314	)			7,741				7,603
Alternatives			7,228				(543	)			-				408				53				7,146				7,440
Index subtotal			1,877,501				71,486				-				231,599				14,115				2,194,701				2,012,489
Institutional subtotal			2,917,154				81,529				3,264				276,660				21,318				3,299,925				3,062,514
Long-term			4,718,098				337,425				3,264				453,684				36,412				5,548,883				5,051,064
Cash management			388,982				32,526				-				1,074				2,841				425,423				404,180
Advisory (4)			10,341				(7,573	)			-				(137	)			(45	)			2,586				4,323
Total		$	5,117,421			$	362,378			$	3,264			$	454,621			$	39,208			$	5,976,892			$	5,459,567
Year-over-Year Component Changes by Investment Style and Product Type (Long-term)
						Net
		September 30, 2016				inflows (outflows)				Acquisition(1)				Market change				FX impact (2)				September 30, 2017				Average AUM (3)
Active:
Equity		$	281,726			$	(22,023	)		$	-			$	38,028			$	2,445			$	300,176			$	285,819
Fixed income			782,858				9,427				-				4,516				1,039				797,840				774,433
Multi-asset			391,775				19,803				-				28,017				6,200				445,795				407,481
Alternatives			91,114				3,739				3,264				2,785				639				101,541				95,113
Active subtotal			1,547,473				10,946				3,264				73,346				10,323				1,645,352				1,562,846
Index and iShares ETFs:
iShares ETFs
Equity			891,010				180,138				-				150,283				6,964				1,228,395				1,049,435
Fixed income			329,462				58,453				-				(5,239	)			3,591				386,267				345,114
Multi-asset			2,506				755				-				223				7				3,491				2,999
Alternatives			23,188				495				-				(1,448	)			49				22,284				20,724
iShares ETFs subtotal			1,246,166				239,841				-				143,819				10,611				1,640,437				1,418,272
Non-ETF Index
Equity			1,393,303				(5,787	)			-				251,689				4,689				1,643,894				1,515,558
Fixed income			515,948				93,264				-				(15,949	)			11,050				604,313				539,345
Multi-asset			7,980				(296	)			-				371				(314	)			7,741				7,603
Alternatives			7,228				(543	)			-				408				53				7,146				7,440
Non-ETF Index subtotal			1,924,459				86,638				-				236,519				15,478				2,263,094				2,069,946
Index & iShares ETFs subtotal			3,170,625				326,479				-				380,338				26,089				3,903,531				3,488,218
Long-term		$	4,718,098			$	337,425			$	3,264			$	453,684			$	36,412			$	5,548,883			$	5,051,064
Year-over-Year Component Changes by Product Type (Long-term)
						Net
		September 30, 2016				inflows (outflows)				Acquisition(1)				Market change				FX impact (2)				September 30, 2017				Average AUM (3)
Equity		$	2,566,039			$	152,328			$	-			$	440,000			$	14,098			$	3,172,465			$	2,850,812
Fixed income			1,628,268				161,144				-				(16,672	)			15,680				1,788,420				1,658,892
Multi-asset			402,261				20,262				-				28,611				5,893				457,027				418,083
Alternatives:
Core			88,731				3,569				3,264				2,773				831				99,168				92,758
Currency and commodities(5)			32,799				122				-				(1,028	)			(90	)			31,803				30,519
Alternatives subtotal			121,530				3,691				3,264				1,745				741				130,971				123,277
Long-term		$	4,718,098			$	337,425				3,264			$	453,684			$	36,412			$	5,548,883			$	5,051,064

(1)		Amount represents AUM acquired in the First Reserve Transaction.
(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								Nine Months Ended
		September 30,												June 30,								September 30,
(in millions), (unaudited)		2017				2016				Change				2017				Change				2017				2016				Change
Investment advisory, administration fees and securities lending revenue:
Equity:
Active		$	421			$	409			$	12			$	412			$	9			$	1,235			$	1,201			$	34
iShares ETFs			836				691				145				776				60				2,333				1,970				363
Non-ETF Index			170				170				-				178				(8	)			509				508				1
Equity subtotal			1,427				1,270				157				1,366				61				4,077				3,679				398
Fixed income:
Active			442				427				15				428				14				1,281				1,237				44
iShares ETFs			210				188				22				200				10				595				512				83
Non-ETF Index			88				78				10				84				4				257				217				40
Fixed income subtotal			740				693				47				712				28				2,133				1,966				167
Multi-asset			289				285				4				282				7				843				860				(17	)
Alternatives:
Core			169				156				13				156				13				469				488				(19	)
Currency and commodities			23				24				(1	)			22				1				67				61				6
Alternatives subtotal			192				180				12				178				14				536				549				(13	)
Long-term			2,648				2,428				220				2,538				110				7,589				7,054				535
Cash management			144				118				26				137				7				408				340				68
Total base fees			2,792				2,546				246				2,675				117				7,997				7,394				603
Investment advisory performance fees:
Equity			30				14				16				12				18				57				67				(10	)
Fixed income			9				2				7				1				8				20				9				11
Multi-asset			2				1				1				7				(5	)			14				6				8
Alternatives			150				41				109				28				122				218				84				134
Total performance fees			191				58				133				48				143				309				166				143
Technology and risk management revenue(1)			175				152				23				164				11				497				439				58
Distribution fees			5				10				(5	)			5				-				17				32				(15	)
Advisory and other revenue:
Advisory(1)			25				22				3				25				-				74				78				(4	)
Other			45				49				(4	)			48				(3	)			128				156				(28	)
Advisory and other revenue			70				71				(1	)			73				(3	)			202				234				(32	)
Total revenue		$	3,233			$	2,837			$	396			$	2,965			$	268			$	9,022			$	8,265			$	757

(1)		Beginning with the first quarter of 2017, Aladdin revenue previously reported within “BlackRock Solutions and advisory” has been presented within “Technology and risk management revenue” on the condensed consolidated statements of income. The remaining previously reported “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 $200 million and $571 million for the three and nine months ended September 30, 2017, respectively. The prior period amounts reported for BlackRock Solutions and advisory of $174 million and $517 million for the three and nine months ended September 30, 2016, respectively, have been reclassified to conform to the current presentation.

Highlights

• Investment advisory, administration fees and securities lending revenue increased $246 million from the third quarter of 2016, reflecting the impact of higher markets and organic growth on average AUM, partially offset by previously announced pricing changes to select investment products. Securities lending revenue of $150 million in the current quarter compared with $142 million in the third quarter of 2016.
  
  Investment advisory, administration fees and securities lending revenue increased $117 million from the second quarter of 2017, driven by higher average AUM and the effect of one additional day in the current quarter. Securities lending revenue of $150 million in the current quarter compared with $156 million in the second quarter of 2017.

• Performance fees increased $133 million from the third quarter of 2016 and $143 million from the second quarter of 2017, reflecting improved performance in a broad range of hedge and long-only funds, including strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.
• Technology and risk management revenue increased $23 million from the third quarter of 2016 and $11 million from the second quarter of 2017, reflecting ongoing demand for Aladdin and other technology offerings.

SUMMARY OF OPERATING EXPENSE
		Three												Three
		Months Ended												Months Ended								Nine Months Ended
		September 30,												June 30,								September 30,
(in millions), (unaudited)		2017				2016				Change				2017				Change				2017				2016				Change
Operating expense
Employee compensation and benefits		$	1,088			$	969			$	119			$	999			$	89			$	3,108			$	2,893			$	215
Distribution and servicing costs			123				114				9				121				2				361				320				41
Amortization of deferred sales commissions			4				8				(4	)			4				-				13				27				(14	)
Direct fund expense			234				200				34				224				10				666				583				83
General and administration			363				312				51				350				13				1,014				946				68
Restructuring charge			-				-				-				-				-				-				76				(76	)
Amortization of intangible assets			27				25				2				25				2				77				75				2
Total operating expense		$	1,839			$	1,628			$	211			$	1,723			$	116			$	5,239			$	4,920			$	319

Highlights

• Employee compensation and benefits expense increased $119 million from the third quarter of 2016, primarily reflecting higher incentive compensation, driven primarily by higher performance fees and operating income, and higher headcount.
  
  Employee compensation and benefits expense increased $89 million from the second quarter of 2017, primarily reflecting higher incentive compensation, driven primarily by performance fees and operating income.

• Direct fund expense increased $34 million from the third quarter of 2016 and $10 million from the second quarter of 2017, reflecting higher average AUM.
• General and administration expense increased $51 million from the third quarter of 2016, reflecting higher portfolio services, technology, and professional services, as well as increased foreign exchange remeasurement expense and contingent consideration fair value adjustments.
  
  General and administration expense increased $13 million from the second quarter of 2017, reflecting increased professional service fees and contingent consideration fair value adjustments, partially offset by lower marketing and promotional expense.

INCOME TAX EXPENSE
		Three														Three
		Months Ended														Months Ended							Nine Months Ended
		September 30,														June 30,							September 30,
(in millions), (unaudited)		2017				2016				Change						2017			Change				2017				2016				Change
Income tax expense		$	445			$	333			$	112				$	376			$	69			$	1,090			$	954			$	136
Effective tax rate			32.0	%			27.6	%			440	bps				30.5%				150	bps			29.0	%			29.1	%			(10	)	bps

Highlights

• Third quarter 2017 income tax expense included a $19 million net noncash tax expense related to the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes.
• Third quarter 2016 income tax expense included a $26 million net noncash tax benefit, primarily related to the revaluation of certain deferred income tax liabilities as a result of legislation enacted in the United Kingdom, and domestic state and local tax changes.

SUMMARY AND RECONCILIATION OF U.S. GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), AS ADJUSTED
			Three Months												Three Months
			Ended												Ended								Nine Months Ended
			September 30,												June 30,								September 30,
(in millions), (unaudited)			2017				2016				Change				2017				Change				2017				2016				Change
Nonoperating income (expense), GAAP basis			$	10			$	1			$	9			$	1			$	9			$	4			$	(72	)		$	76
Less: Net income (loss) attributable to noncontrolling interests ("NCI")				12				2				10				10				2				31				(2	)			33
Nonoperating income (expense), as adjusted(1)(2)			$	(2	)		$	(1	)		$	(1	)		$	(9	)		$	7			$	(27	)		$	(70	)		$	43
			Three Months												Three Months
			Ended												Ended								Nine Months Ended
			September 30,												June 30,								September 30,
(in millions), (unaudited)			2017				2016				Change				2017				Change				2017				2016				Change
Net gain (loss) on investments(1)(2)
Private equity			$	7			$	2			$	5			$	8			$	(1	)		$	21			$	11			$	10
Real assets				1				2				(1	)			-				1				2				5				(3	)
Other alternatives(3)				11				9				2				9				2				34				13				21
Other investments(4)				10				16				(6	)			4				6				35				22				13
Subtotal				29				29				-				21				8				92				51				41
Other gains				-				-				-				5				(5	)			5				-				5
Total net gain (loss) on investments(1)(2)				29				29				-				26				3				97				51				46
Interest and dividend income				15				22				(7	)			13				2				35				33				2
Interest expense				(46	)			(52	)			6				(48	)			2				(159	)			(154	)			(5	)
Net interest expense				(31	)			(30	)			(1	)			(35	)			4				(124	)			(121	)			(3	)
Nonoperating income (expense), as adjusted(1)(2)			$	(2	)		$	(1	)		$	(1	)		$	(9	)		$	7			$	(27	)		$	(70	)		$	43

(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 primarily include net gains (losses) related to equity and fixed income investments.

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.

		September 30,				December 31,
(in billions), (unaudited)		2017 (Est.)				2016
Total balance sheet assets		$	221			$	220
Separate account assets and separate account collateral held under securities lending agreements			(176	)			(177	)
Consolidated sponsored investment funds			-				(1	)
Goodwill and intangible assets, net			(31	)			(30	)
Economic tangible assets		$	14			$	12

RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
		Three Months Ended												Nine Months Ended
		September 30,								June 30,				September 30,
(in millions), (unaudited)		2017				2016				2017				2017				2016
Operating income, GAAP basis		$	1,394			$	1,209			$	1,242			$	3,783			$	3,345
Non-GAAP expense adjustments:
Restructuring charge			-				-				-				-				76
PNC LTIP funding obligation			4				7				4				12				21
Operating income, as adjusted		$	1,398			$	1,216			$	1,246			$	3,795			$	3,442
Revenue, GAAP basis		$	3,233			$	2,837			$	2,965			$	9,022			$	8,265
Non-GAAP adjustments:
Distribution and servicing costs			(123	)			(114	)			(121	)			(361	)			(320	)
Amortization of deferred sales commissions			(4	)			(8	)			(4	)			(13	)			(27	)
Revenue used for operating margin measurement		$	3,106			$	2,715			$	2,840			$	8,648			$	7,918
Operating margin, GAAP basis			43.1	%			42.6	%			41.9	%			41.9	%			40.5	%
Operating margin, as adjusted			45.0	%			44.8	%			43.9	%			43.9	%			43.5	%
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												Nine Months Ended
		September 30,								June 30,				September 30,
(in millions, except per share data), (unaudited)		2017				2016				2017				2017				2016
Net income attributable to BlackRock, Inc., GAAP basis		$	947			$	875			$	857			$	2,666			$	2,321
Non-GAAP adjustments:
Restructuring charge (including $23 tax benefit)			-				-				-				-				53
PNC LTIP funding obligation, net of tax			3				5				3				9				14
Income tax matters			19				(26	)			-				19				(26	)
Net income attributable to BlackRock, Inc., as adjusted		$	969			$	854			$	860			$	2,694			$	2,362
Diluted weighted-average common shares outstanding(3)			163.8				166.3				164.1				164.3				166.8
Diluted earnings per common share, GAAP basis(3)		$	5.78			$	5.26			$	5.22			$	16.23			$	13.92
Diluted earnings per common share, as adjusted(3)		$	5.92			$	5.14			$	5.24			$	16.40			$	14.16
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 considers them to be helpful, for both management and investors, in evaluating 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. Non-GAAP measures may not be comparable to other similarly titled measures of other companies.

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 nine months ended September 30, 2016, a restructuring charge comprised of severance and accelerated amortization expense of previously granted deferred compensation awards has been excluded to provide an 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, Inc., 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.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (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 and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (11) changes in law and policy 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 September 30, 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 August 31, 2017. The performance data does not include accounts terminated prior to September 30, 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 September 30, 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.

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BlackRock, Inc.
Investor Relations:
Tom Wojcik, 212.810.8127
or
Media Relations:
Brian Beades, 212.810.5596

Source: BlackRock, Inc.