BlackRock Inc. - FORM 8-K - EX-99.1 - EARNINGS RELEASE DATED OCTOBER 13, 2020

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EX-99.2 - THIRD QUARTER 2020 EARNINGS - EARNINGS RELEASE SUPPLEMENT - BlackRock Inc.	blk-ex992_6.htm
8-K - 8-K - BlackRock Inc.	blk-8k_20201013.htm

Exhibit 99.1

INVESTOR RELATIONS:

Samantha Tortora 212.810.5397

MEDIA RELATIONS:

Brian Beades 212.810.5596

BlackRock Reports Third Quarter 2020 Diluted EPS of $8.87, or $9.22 as adjusted

New York, October 13, 2020 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and nine months ended September 30, 2020.

$129 billion of quarterly total net inflows, led by continued momentum in fixed income and cash management, with positive flows across all regions, investment styles and product types

7% annualized organic asset growth in the quarter and higher organic base fee growth reflect strength of diversified investment management platform, especially active equities, illiquid alternatives and strategic focus areas of iShares®

18% increase in revenue year-over-year reflects higher performance fees and continued organic growth

17% increase in operating income year-over-year includes the impact of $83 million of product launch costs in the current quarter

24% increase in diluted EPS (29% as adjusted) also reflects higher year-over-year nonoperating income and a lower diluted share count in the current quarter

Laurence D. Fink, Chairman and CEO:

“As investors around the world navigate current uncertainty, including the pandemic and uneven economic recovery, BlackRock is serving clients’ needs with global insights, strategic advice and whole-portfolio solutions. We purposefully built the most comprehensive, fully-integrated, investment and risk management technology platform in the industry to deepen partnerships with clients as we help them achieve their long-term goals.

“BlackRock generated $129 billion of total net inflows in the third quarter, representing 9% annualized organic base fee growth. Our diverse platform saw inflows across all asset classes, investment styles and regions. Notably, more than 50% of long-term flows were driven by clients in Europe and Asia.

“Our results are a validation of our globally integrated asset management and technology business model, which allows us to consistently invest and evolve ahead of client needs. Each of our strategic investment areas, including iShares ETFs, alternatives and technology, continue to grow, while strong investment performance has driven positive active flows over the last year. And as clients look to integrate ESG into their portfolios, BlackRock is uniquely positioned with industry-leading sustainability research, investment strategies and technology.

“We are humbled by the trust our clients place in us, grateful for the dedication of our employees and committed to operating at the highest standards for all of our stakeholders.”

FINANCIAL RESULTS

	Q3			Q3
(in millions, except per share data)	2020			2019
AUM	$	7,808,497		$	6,963,932
% change		12	%
Average AUM	$	7,678,147		$	6,894,873
% change		11	%
Total net flows	$	128,701		$	84,246

GAAP basis:
Revenue	$	4,369		$	3,692
% change		18	%
Operating income	$	1,757		$	1,502
% change		17	%
Operating margin		40.2	%		40.7	%
Net income⁽¹⁾	$	1,364		$	1,119
% change		22	%
Diluted EPS	$	8.87		$	7.15
% change		24	%
Weighted average diluted shares		153.7			156.4
% change		(2	)%

As Adjusted:
Operating income⁽²⁾	$	1,757		$	1,502
% change		17	%
Operating margin⁽²⁾		47.0	%		46.0	%
Net income^{(1) (2)}	$	1,418		$	1,119
% change		27	%
Diluted EPS⁽²⁾	$	9.22		$	7.15
% change		29	%

⁽¹⁾	Net income represents net income attributable to BlackRock, Inc.

⁽²⁾	See notes (1) through (4) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items and the reconciliation to GAAP.

NET FLOW HIGHLIGHTS

			Q3		YTD
(in billions)			2020		2020
Long-term net flows:			$	98	$	141

By region:

	Americas		$	41	$	58
	EMEA			25		43
	APAC			32		40

By client type:

	Retail:		$	20	$	34
		US		8		15
		International		12		19

	iShares:		$	41	$	106
		Core		14		22
		Non-Core		27		84

	Institutional:		$	37	$	1
		Active		30		30
		Index		7		(29	)

Cash management net flows			$	28	$	104

Advisory net flows			$	3	$	18

Total net flows			$	129	$	264

BUSINESS RESULTS

							September 30, 2020			Q3 2020
	Q3 2020		September 30, 2020		Q3 2020		AUM			Base fees⁽¹⁾
(in millions), (unaudited)	Net flows		AUM		Base fees⁽¹⁾		% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	19,552	$	746,264	$	938		10	%		30	%
iShares ETFs		41,332		2,321,335		1,228		30	%		38	%
Institutional:
Active		29,619		1,427,122		594		18	%		18	%
Index		7,101		2,641,408		261		34	%		8	%
Total institutional		36,720		4,068,530		855		52	%		26	%
Long-term		97,604		7,136,129		3,021		92	%		94	%
Cash management		27,766		652,002		204		8	%		6	%
Advisory⁽²⁾		3,331		20,366		-		-			-
Total	$	128,701	$	7,808,497	$	3,225		100	%		100	%

RESULTS BY INVESTMENT STYLE
Active	$	47,059	$	2,072,673	$	1,511		27	%		47	%
Index and iShares ETFs		50,545		5,063,456		1,510		65	%		47	%
Long-term		97,604		7,136,129		3,021		92	%		94	%
Cash management		27,766		652,002		204		8	%		6	%
Advisory⁽²⁾		3,331		20,366		-		-			-
Total	$	128,701	$	7,808,497	$	3,225		100	%		100	%

RESULTS BY PRODUCT TYPE
Equity	$	2,168	$	3,784,118	$	1,501		48	%		47	%
Fixed income		70,362		2,531,465		908		33	%		28	%
Multi-asset		13,980		598,246		289		8	%		9	%
Alternatives		11,094		222,300		323		3	%		10	%
Long-term		97,604		7,136,129		3,021		92	%		94	%
Cash management		27,766		652,002		204		8	%		6	%
Advisory⁽²⁾		3,331		20,366		-		-			-
Total	$	128,701	$	7,808,497	$	3,225		100	%		100	%

⁽¹⁾	Base fees include investment advisory, administration fees and securities lending revenue.

⁽²⁾

Approximately $4.2 billion of iShares ETFs AUM held in advisory accounts associated with the Federal Reserve Bank of New York (“FRBNY”) assignment as of September 30, 2020 (disclosed via FRBNY reporting as of October 8, 2020) are included within iShares ETFs AUM or Fixed Income AUM above. These holdings are excluded from Advisory AUM.

INVESTMENT PERFORMANCE AT September 30, 2020⁽¹⁾

	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	83%	87%	86%
Tax-exempt	31%	57%	79%
Index AUM within or above applicable tolerance	82%	97%	92%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	76%	80%	82%
Systematic	79%	68%	84%
Index AUM within or above applicable tolerance	94%	98%	98%

⁽¹⁾	Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 13 for performance disclosure detail.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Tuesday, October 13, 2020 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, (833) 793-7231, or from outside the United States, (469) 795-5206, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 2437498). 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 11:30 a.m. (Eastern Time) on Tuesday, October 13, 2020 and ending at midnight on Tuesday, October 27, 2020. 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 2437498. To access the webcast, please visit the investor relations section of www.blackrock.com.

ABOUT BLACKROCK

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of September 30, 2020, the firm managed approximately $7.81 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,
	2020			2019			Change			2020			Change
Revenue
Investment advisory, administration fees and securities lending revenue	$	3,225		$	2,980		$	245		$	2,966		$	259
Investment advisory performance fees		532			121			411			112			420
Technology services revenue		282			259			23			278			4
Distribution fees		288			270			18			253			35
Advisory and other revenue		42			62			(20	)		39			3
Total revenue		4,369			3,692			677			3,648			721

Expense
Employee compensation and benefits		1,411			1,111			300			1,152			259
Distribution and servicing costs		456			427			29			429			27
Direct fund expense		257			239			18			246			11
General and administration		461			385			76			388			73
Amortization of intangible assets		27			28			(1	)		27			-
Total expense		2,612			2,190			422			2,242			370

Operating income		1,757			1,502			255			1,406			351

Nonoperating income (expense)
Net gain (loss) on investments		269			(7	)		276			398			(129	)
Interest and dividend income		9			19			(10	)		10			(1	)
Interest expense		(54	)		(54	)		-			(51	)		(3	)
Total nonoperating income (expense)		224			(42	)		266			357			(133	)

Income before income taxes		1,981			1,460			521			1,763			218
Income tax expense (benefit)		464			341			123			361			103
Net income		1,517			1,119			398			1,402			115
Less:
Net income (loss) attributable to noncontrolling interests		153			-			153			188			(35	)
Net income attributable to BlackRock, Inc.	$	1,364		$	1,119		$	245		$	1,214		$	150

Weighted-average common shares outstanding
Basic		152,488,073			155,280,877			(2,792,804	)		153,732,878			(1,244,805	)
Diluted		153,742,264			156,447,387			(2,705,123	)		154,712,032			(969,768	)
Earnings per share attributable to BlackRock, Inc. common stockholders (4)
Basic	$	8.94		$	7.21		$	1.73		$	7.90		$	1.04
Diluted	$	8.87		$	7.15		$	1.72		$	7.85		$	1.02
Cash dividends declared and paid per share	$	3.63		$	3.30		$	0.33		$	3.63		$	-

Supplemental information:

AUM (end of period)	$	7,808,497		$	6,963,932		$	844,565		$	7,317,949		$	490,548
Shares outstanding (end of period)		152,496,403			155,173,103			(2,676,700	)		152,460,239			36,164
GAAP:
Operating margin		40.2	%		40.7	%		(50	) bps		38.5	%		170	bps
Effective tax rate		25.4	%		23.3	%		210	bps		22.9	%		250	bps
As adjusted:
Operating income (1)	$	1,757		$	1,502		$	255		$	1,406		$	351
Operating margin (1)		47.0	%		46.0	%		100	bps		43.7	%		330	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	71		$	(42	)	$	113		$	169		$	(98	)
Net income attributable to BlackRock, Inc. (3)	$	1,418		$	1,119		$	299		$	1,214		$	204
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) (4)	$	9.22		$	7.15		$	2.07		$	7.85		$	1.37
Effective tax rate		22.5	%		23.3	%		(80	) bps		22.9	%		(40	) bps

See pages 11-12 for the reconciliation to GAAP and notes (1) through (4) for more information on as adjusted items.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)


	Nine Months Ended
	September 30,
	2020			2019			Change
Revenue
Investment advisory, administration fees and securities lending revenue	$	9,246		$	8,688		$	558
Investment advisory performance fees		685			211			474
Technology services revenue		834			700			134
Distribution fees		817			799			18
Advisory and other revenue		145			164			(19	)
Total revenue		11,727			10,562			1,165

Expense
Employee compensation and benefits		3,700			3,258			442
Distribution and servicing costs		1,330			1,247			83
Direct fund expense		780			733			47
General and administration		1,991			1,243			748
Amortization of intangible assets		79			68			11
Total expense		7,880			6,549			1,331

Operating income		3,847			4,013			(166	)

Nonoperating income (expense)
Net gain (loss) on investments		627			224			403
Interest and dividend income		34			68			(34	)
Interest expense		(151	)		(152	)		1
Total nonoperating income (expense)		510			140			370

Income before income taxes		4,357			4,153			204
Income tax expense (benefit)		811			961			(150	)
Net income		3,546			3,192			354
Less:
Net income (loss) attributable to noncontrolling interests		162			17			145
Net income attributable to BlackRock, Inc.	$	3,384		$	3,175		$	209

Weighted-average common shares outstanding
Basic		153,816,544			156,290,212			(2,473,668	)
Diluted		154,959,812			157,385,956			(2,426,144	)
Earnings per share attributable to BlackRock, Inc. common stockholders (4)
Basic	$	22.00		$	20.31		$	1.69
Diluted	$	21.84		$	20.17		$	1.67
Cash dividends declared and paid per share	$	10.89		$	9.90		$	0.99

Supplemental information:

AUM (end of period)	$	7,808,497		$	6,963,932		$	844,565
Shares outstanding (end of period)		152,496,403			155,173,103			(2,676,700	)
GAAP:
Operating margin		32.8	%		38.0	%		(520	) bps
Effective tax rate		19.3	%		23.2	%		(390	) bps
As adjusted:
Operating income (1)	$	4,436		$	4,013		$	423
Operating margin (1)		44.3	%		43.7	%		60	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	226		$	123		$	103
Net income attributable to BlackRock, Inc. (3)	$	3,664		$	3,175		$	489
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) (4)	$	23.64		$	20.17		$	3.47
Effective tax rate		21.4	%		23.2	%		(180	) bps

See pages 11-12 for the reconciliation to GAAP and notes (1) through (4) for more information on as adjusted items.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
			Net
	June 30,		inflows			Market					September 30,
	2020		(outflows)			change			FX impact⁽¹⁾		2020		Average AUM ⁽²⁾
Retail:
Equity	$	254,104	$	7,007		$	15,217		$	3,099	$	279,427	$	272,429
Fixed income		301,160		8,321			4,185			2,342		316,008		311,193
Multi-asset		111,934		1,777			5,618			379		119,708		117,376
Alternatives		27,956		2,447			523			195		31,121		29,759
Retail subtotal		695,154		19,552			25,543			6,015		746,264		730,757
iShares ETFs:
Equity		1,470,314		14,851			96,101			5,583		1,586,849		1,560,887
Fixed income		634,098		19,690			5,206			4,005		662,999		657,594
Multi-asset		5,074		154			192			10		5,430		5,297
Alternatives		53,111		6,637			6,254			55		66,057		63,687
iShares ETFs subtotal		2,162,597		41,332			107,753			9,653		2,321,335		2,287,465
Institutional:
Active:
Equity		133,932		4,001			9,709			1,618		149,260		145,197
Fixed income		666,693		12,011			9,122			5,235		693,061		684,720
Multi-asset		426,553		11,354			20,017			6,318		464,242		451,984
Alternatives		114,432		2,253			2,481			1,393		120,559		118,016
Active subtotal		1,341,610		29,619			41,329			14,564		1,427,122		1,399,917
Index:
Equity		1,660,875		(23,691	)		115,515			15,883		1,768,582		1,748,988
Fixed income		809,141		30,340			(2,967	)		22,883		859,397		846,244
Multi-asset		7,801		695			285			85		8,866		8,245
Alternatives		4,519		(243	)		211			76		4,563		4,637
Index subtotal		2,482,336		7,101			113,044			38,927		2,641,408		2,608,114
Institutional subtotal		3,823,946		36,720			154,373			53,491		4,068,530		4,008,031
Long-term		6,681,697		97,604			287,669			69,159		7,136,129		7,026,253
Cash management		619,351		27,766			274			4,611		652,002		632,869
Advisory ⁽³⁾		16,901		3,331			124			10		20,366		19,025
Total	$	7,317,949	$	128,701		$	288,067		$	73,780	$	7,808,497	$	7,678,147
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)
			Net
	June 30,		inflows			Market					September 30,
	2020		(outflows)			change			FX impact⁽¹⁾		2020		Average AUM ⁽²⁾
Active:
Equity	$	312,809	$	10,063		$	21,603		$	3,156	$	347,631	$	338,125
Fixed income		950,143		19,166			13,135			6,968		989,412		976,832
Multi-asset		538,489		13,131			25,635			6,697		583,952		569,360
Alternatives		142,387		4,699			3,003			1,589		151,678		147,775
Active subtotal		1,943,828		47,059			63,376			18,410		2,072,673		2,032,092
Index and iShares ETFs:
iShares ETFs:
Equity		1,470,314		14,851			96,101			5,583		1,586,849		1,560,887
Fixed income		634,098		19,690			5,206			4,005		662,999		657,594
Multi-asset		5,074		154			192			10		5,430		5,297
Alternatives		53,111		6,637			6,254			55		66,057		63,687
iShares ETFs subtotal		2,162,597		41,332			107,753			9,653		2,321,335		2,287,465
Non-ETF Index:
Equity		1,736,102		(22,746	)		118,838			17,444		1,849,638		1,828,489
Fixed income		826,851		31,506			(2,795	)		23,492		879,054		865,325
Multi-asset		7,799		695			285			85		8,864		8,245
Alternatives		4,520		(242	)		212			75		4,565		4,637
Non-ETF Index subtotal		2,575,272		9,213			116,540			41,096		2,742,121		2,706,696
Index and iShares ETFs subtotal		4,737,869		50,545			224,293			50,749		5,063,456		4,994,161
Long-Term	$	6,681,697	$	97,604		$	287,669		$	69,159	$	7,136,129	$	7,026,253
Current Quarter Component Changes by Product Type (Long-Term)
			Net
	June 30,		inflows			Market					September 30,
	2020		(outflows)			change			FX impact⁽¹⁾		2020		Average AUM ⁽²⁾
Equity	$	3,519,225	$	2,168		$	236,542		$	26,183	$	3,784,118	$	3,727,501
Fixed income		2,411,092		70,362			15,546			34,465		2,531,465		2,499,751
Multi-asset		551,362		13,980			26,112			6,792		598,246		582,902
Alternatives:
Illiquid alternatives		76,607		2,202			104			810		79,723		78,413
Liquid alternatives		63,120		2,553			2,851			731		69,255		66,642
Currency and commodities⁽⁴⁾		60,291		6,339			6,514			178		73,322		71,044
Alternatives subtotal		200,018		11,094			9,469			1,719		222,300		216,099
Long-Term	$	6,681,697	$	97,604		$	287,669		$	69,159	$	7,136,129	$	7,026,253

⁽¹⁾	Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US 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 mandates linked to purchases and disposition of assets and portfolios on behalf of official institutions and long-term portfolio liquidation assignments. Approximately $4.2 billion of iShares ETFs AUM held in advisory accounts associated with the FRBNY assignment as of September 30, 2020 (disclosed via FRBNY reporting as of October 8, 2020) are included within Fixed Income iShares ETFs AUM or Fixed Income AUM above. These holdings are excluded from Advisory AUM in the first table above.

⁽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,		inflows			Market						September 30,
	2019		(outflows)			change			FX impact⁽¹⁾			2020		Average AUM ⁽²⁾
Retail:
Equity	$	252,413	$	23,244		$	4,038		$	(268	)	$	279,427	$	252,221
Fixed income		305,265		8,564			3,208			(1,029	)		316,008		303,363
Multi-asset		120,439		(3,126	)		2,569			(174	)		119,708		114,401
Alternatives		25,180		5,554			317			70			31,121		27,502
Retail subtotal		703,297		34,236			10,132			(1,401	)		746,264		697,487
iShares ETFs:
Equity		1,632,972		11,050			(57,319	)		146			1,586,849		1,504,589
Fixed income		565,790		75,359			19,246			2,604			662,999		611,117
Multi-asset		5,210		230			1			(11	)		5,430		5,104
Alternatives		36,093		19,494			10,428			42			66,057		50,403
iShares ETFs subtotal		2,240,065		106,133			(27,644	)		2,781			2,321,335		2,171,213
Institutional:
Active:
Equity		141,118		4,708			3,369			65			149,260		135,354
Fixed income		651,368		3,082			36,857			1,754			693,061		663,749
Multi-asset		434,233		16,211			11,737			2,061			464,242		431,055
Alternatives		111,951		6,269			1,989			350			120,559		114,414
Active subtotal		1,338,670		30,270			53,952			4,230			1,427,122		1,344,572
Index:
Equity		1,793,826		(38,086	)		10,629			2,213			1,768,582		1,674,238
Fixed income		792,969		8,252			58,782			(606	)		859,397		819,510
Multi-asset		8,239		301			237			89			8,866		8,104
Alternatives		4,848		45			(330	)		-			4,563		4,487
Index subtotal		2,599,882		(29,488	)		69,318			1,696			2,641,408		2,506,339
Institutional subtotal		3,938,552		782			123,270			5,926			4,068,530		3,850,911
Long-term		6,881,914		141,151			105,758			7,306			7,136,129		6,719,611
Cash management		545,949		104,405			156			1,492			652,002		602,703
Advisory ⁽³⁾		1,770		18,350			266			(20	)		20,366		10,679
Total	$	7,429,633	$	263,906		$	106,180		$	8,778		$	7,808,497	$	7,332,993
Year-to-Date Component Changes by Investment Style and Product Type (Long-Term)
			Net
	December 31,		inflows			Market						September 30,
	2019		(outflows)			change			FX impact⁽¹⁾			2020		Average AUM ⁽²⁾
Active:
Equity	$	316,145	$	21,616		$	9,531		$	339		$	347,631	$	311,834
Fixed income		939,275		10,151			39,061			925			989,412		949,178
Multi-asset		554,672		13,086			14,307			1,887			583,952		545,455
Alternatives		137,130		11,822			2,306			420			151,678		141,915
Active subtotal		1,947,222		56,675			65,205			3,571			2,072,673		1,948,382
Index and iShares ETFs:
iShares ETFs:
Equity		1,632,972		11,050			(57,319	)		146			1,586,849		1,504,589
Fixed income		565,790		75,359			19,246			2,604			662,999		611,117
Multi-asset		5,210		230			1			(11	)		5,430		5,104
Alternatives		36,093		19,494			10,428			42			66,057		50,403
iShares ETFs subtotal		2,240,065		106,133			(27,644	)		2,781			2,321,335		2,171,213
Non-ETF Index:
Equity		1,871,212		(31,750	)		8,505			1,671			1,849,638		1,749,979
Fixed income		810,327		9,747			59,786			(806	)		879,054		837,444
Multi-asset		8,239		300			236			89			8,864		8,105
Alternatives		4,849		46			(330	)		-			4,565		4,488
Non-ETF Index subtotal		2,694,627		(21,657	)		68,197			954			2,742,121		2,600,016
Index and iShares ETFs subtotal		4,934,692		84,476			40,553			3,735			5,063,456		4,771,229
Long-Term	$	6,881,914	$	141,151		$	105,758		$	7,306		$	7,136,129	$	6,719,611
Year-to-Date Component Changes by Product Type (Long-Term)
			Net
	December 31,		inflows			Market						September 30,
	2019		(outflows)			change			FX impact⁽¹⁾			2020		Average AUM ⁽²⁾
Equity	$	3,820,329	$	916		$	(39,283	)	$	2,156		$	3,784,118	$	3,566,402
Fixed income		2,315,392		95,257			118,093			2,723			2,531,465		2,397,739
Multi-asset		568,121		13,616			14,544			1,965			598,246		558,664
Alternatives:
Illiquid alternatives		75,349		6,354			(2,025	)		45			79,723		76,697
Liquid alternatives		59,048		5,509			4,387			311			69,255		62,528
Currency and commodities⁽⁴⁾		43,675		19,499			10,042			106			73,322		57,581
Alternatives subtotal		178,072		31,362			12,404			462			222,300		196,806
Long-Term	$	6,881,914	$	141,151		$	105,758		$	7,306		$	7,136,129	$	6,719,611

⁽¹⁾	Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

⁽²⁾	Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing ten months.

⁽³⁾

⁽⁴⁾	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,		inflows			Market						September 30,
	2019		(outflows)			change			FX impact⁽¹⁾			2020		Average AUM ⁽²⁾
Retail:
Equity	$	231,645	$	25,180		$	19,098		$	3,504		$	279,427	$	248,948
Fixed income		297,186		13,556			3,959			1,307			316,008		302,419
Multi-asset		116,040		(3,714	)		7,030			352			119,708		115,092
Alternatives		23,247		7,224			405			245			31,121		26,667
Retail subtotal		668,118		42,246			30,492			5,408			746,264		693,126
iShares ETFs:
Equity		1,468,711		60,122			52,720			5,296			1,586,849		1,507,986
Fixed income		539,260		100,322			17,597			5,820			662,999		596,496
Multi-asset		4,659		610			165			(4	)		5,430		5,038
Alternatives		34,188		20,281			11,510			78			66,057		46,774
iShares ETFs subtotal		2,046,818		181,335			81,992			11,190			2,321,335		2,156,294
Institutional:
Active:
Equity		128,723		5,232			13,331			1,974			149,260		134,610
Fixed income		649,883		(2,066	)		38,293			6,951			693,061		660,994
Multi-asset		398,937		31,429			26,224			7,652			464,242		425,765
Alternatives		105,521		10,972			2,293			1,773			120,559		112,942
Active subtotal		1,283,064		45,567			80,141			18,350			1,427,122		1,334,311
Index:
Equity		1,659,424		(51,017	)		140,271			19,904			1,768,582		1,681,295
Fixed income		781,102		21,719			30,216			26,360			859,397		812,141
Multi-asset		8,085		247			441			93			8,866		8,095
Alternatives		4,570		90			(179	)		82			4,563		4,526
Index subtotal		2,453,181		(28,961	)		170,749			46,439			2,641,408		2,506,057
Institutional subtotal		3,736,245		16,606			250,890			64,789			4,068,530		3,840,368
Long-term		6,451,181		240,187			363,374			81,387			7,136,129		6,689,788
Cash management		510,984		134,204			1,164			5,650			652,002		583,512
Advisory ⁽³⁾		1,767		18,353			252			(6	)		20,366		8,618
Total	$	6,963,932	$	392,744		$	364,790		$	87,031		$	7,808,497	$	7,281,918
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)
			Net
	September 30,		inflows			Market						September 30,
	2019		(outflows)			change			FX impact⁽¹⁾			2020		Average AUM ⁽²⁾
Active:
Equity	$	290,519	$	22,302		$	30,974		$	3,836		$	347,631	$	308,605
Fixed income		931,179		9,025			41,606			7,602			989,412		945,830
Multi-asset		514,973		27,720			33,255			8,004			583,952		540,857
Alternatives		128,766		18,195			2,699			2,018			151,678		139,608
Active subtotal		1,865,437		77,242			108,534			21,460			2,072,673		1,934,900
Index and iShares ETFs:
iShares ETFs
Equity		1,468,711		60,122			52,720			5,296			1,586,849		1,507,986
Fixed income		539,260		100,322			17,597			5,820			662,999		596,496
Multi-asset		4,659		610			165			(4	)		5,430		5,038
Alternatives		34,188		20,281			11,510			78			66,057		46,774
iShares ETFs subtotal		2,046,818		181,335			81,992			11,190			2,321,335		2,156,294
Non-ETF Index
Equity		1,729,273		(42,907	)		141,726			21,546			1,849,638		1,756,248
Fixed income		796,992		24,184			30,862			27,016			879,054		829,724
Multi-asset		8,089		242			440			93			8,864		8,095
Alternatives		4,572		91			(180	)		82			4,565		4,527
Non-ETF Index subtotal		2,538,926		(18,390	)		172,848			48,737			2,742,121		2,598,594
Index and iShares ETFs subtotal		4,585,744		162,945			254,840			59,927			5,063,456		4,754,888
Long-Term	$	6,451,181	$	240,187		$	363,374		$	81,387		$	7,136,129	$	6,689,788
Year-over-Year Component Changes by Product Type (Long-Term)
			Net
	September 30,		inflows			Market						September 30,
	2019		(outflows)			change			FX impact⁽¹⁾			2020		Average AUM ⁽²⁾
Equity	$	3,488,503	$	39,517		$	225,420		$	30,678		$	3,784,118	$	3,572,839
Fixed income		2,267,431		133,531			90,065			40,438			2,531,465		2,372,050
Multi-asset		527,721		28,572			33,860			8,093			598,246		553,990
Alternatives:
Illiquid alternatives		70,516		10,420			(2,177	)		964			79,723		75,583
Liquid alternatives		55,544		7,804			4,904			1,003			69,255		61,331
Currency and commodities⁽⁴⁾		41,466		20,343			11,302			211			73,322		53,995
Alternatives subtotal		167,526		38,567			14,029			2,178			222,300		190,909
Long-Term	$	6,451,181	$	240,187		$	363,374		$	81,387		$	7,136,129	$	6,689,788

⁽¹⁾	Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

⁽²⁾	Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

⁽³⁾

⁽⁴⁾	Amounts include commodity iShares ETFs.

SUMMARY OF REVENUE

	Three Months							Three Months					Nine Months
	Ended							Ended					Ended
	September 30,							June 30,					September 30,
(in millions), (unaudited)	2020		2019		Change			2020		Change			2020		2019		Change
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	457	$	391	$	66		$	381	$	76		$	1,236	$	1,151	$	85
iShares ETFs		880		872		8			792		88			2,551		2,589		(38	)
Non-ETF Index		164		168		(4	)		178		(14	)		505		495		10
Equity subtotal		1,501		1,431		70			1,351		150			4,292		4,235		57
Fixed income:
Active		498		496		2			464		34			1,443		1,427		16
iShares ETFs		297		251		46			261		36			817		705		112
Non-ETF Index		113		98		15			129		(16	)		354		293		61
Fixed income subtotal		908		845		63			854		54			2,614		2,425		189
Multi-asset		289		288		1			270		19			852		852		-
Alternatives:
Illiquid alternatives		140		122		18			128		12			416		350		66
Liquid alternatives		132		105		27			117		15			361		301		60
Currency and commodities		51		30		21			35		16			118		78		40
Alternatives subtotal		323		257		66			280		43			895		729		166
Long-term		3,021		2,821		200			2,755		266			8,653		8,241		412
Cash management		204		159		45			211		(7	)		593		447		146
Total base fees		3,225		2,980		245			2,966		259			9,246		8,688		558
Investment advisory performance fees:
Equity		4		1		3			23		(19	)		29		5		24
Fixed income		9		-		9			2		7			13		2		11
Multi-asset		10		1		9			2		8			13		7		6
Alternatives:
Illiquid alternatives		6		5		1			32		(26	)		55		40		15
Liquid alternatives		503		114		389			53		450			575		157		418
Alternatives subtotal		509		119		390			85		424			630		197		433
Total performance fees		532		121		411			112		420			685		211		474
Technology services revenue		282		259		23			278		4			834		700		134
Distribution fees:
Retrocessions		188		166		22			162		26			519		491		28
12b-1 fees (US mutual fund distribution fees)		85		90		(5	)		78		7			254		267		(13	)
Other		15		14		1			13		2			44		41		3
Total distribution fees		288		270		18			253		35			817		799		18
Advisory and other revenue:
Advisory		14		21		(7	)		17		(3	)		48		62		(14	)
Other		28		41		(13	)		22		6			97		102		(5	)
Total advisory and other revenue		42		62		(20	)		39		3			145		164		(19	)
Total revenue	$	4,369	$	3,692	$	677		$	3,648	$	721		$	11,727	$	10,562	$	1,165

Highlights

•

Investment advisory, administration fees and securities lending revenue increased $245 million from the third quarter of 2019, primarily driven by organic growth and the positive impact of market beta and foreign exchange movements on average AUM, partially offset by the impact of strategic pricing changes to certain products. Securities lending revenue of $153 million in the current quarter increased from $150 million in the third quarter of 2019.

Investment advisory, administration fees and securities lending revenue increased $259 million from the second quarter of 2020, primarily driven by the positive impact of market beta and foreign exchange movements on average AUM and organic growth, and the effect of one additional day in the quarter, partially offset by lower securities lending revenue. Securities lending revenue of $153 million in the current quarter decreased from $210 million in the second quarter of 2020, primarily reflecting lower assets spreads.

•	Performance fees increased $411 million from the third quarter of 2019 and $420 million from the second quarter of 2020, primarily reflecting strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.

•	Technology services revenue increased $23 million from the third quarter of 2019, primarily reflecting higher revenue from Aladdin^®.

•

Advisory and other revenue decreased $20 million from the from the third quarter of 2019, primarily reflecting the impact of the previously announced charitable contribution of BlackRock’s remaining 20% stake in PennyMac Financial Services, Inc. (the “Charitable Contribution”) in the first quarter of 2020.

SUMMARY OF OPERATING EXPENSE

	Three Months								Three Months						Nine Months
	Ended								Ended						Ended
	September 30,								June 30,						September 30,
(in millions), (unaudited)	2020		2019			Change			2020			Change			2020		2019		Change
Operating expense
Employee compensation and benefits	$	1,411	$	1,111		$	300		$	1,152		$	259		$	3,700	$	3,258	$	442
Distribution and servicing costs:
Retrocessions		188		166			22			162			26			519		491		28
12b-1 costs		83		89			(6	)		75			8			247		265		(18	)
Other		185		172			13			192			(7	)		564		491		73
Total distribution and servicing costs		456		427			29			429			27			1,330		1,247		83
Direct fund expense		257		239			18			246			11			780		733		47
General and administration:
Marketing and promotional		48		79			(31	)		39			9			156		241		(85	)
Occupancy and office related		81		75			6			80			1			239		224		15
Portfolio services		73		64			9			65			8			203		191		12
Technology		93		70			23			92			1			273		206		67
Professional services		36		38			(2	)		41			(5	)		121		115		6
Communications		14		10			4			14			-			40		29		11
Foreign exchange remeasurement		1		(2	)		3			1			-			7		18		(11	)
Contingent consideration fair value adjustments		-		(1	)		1			(2	)		2			23		18		5
Product launch costs		80		-			80			-			80			164		59		105
Charitable Contribution		-		-			-			-			-			589		-		589
Other general and administration		35		52			(17	)		58			(23	)		176		142		34
Total general and administration expense		461		385			76			388			73			1,991		1,243		748
Amortization of intangible assets		27		28			(1	)		27			-			79		68		11
Total operating expense	$	2,612	$	2,190		$	422		$	2,242		$	370		$	7,880	$	6,549	$	1,331

Highlights

•	Employee compensation and benefits expense increased $300 million from the third quarter of 2019 and $259 million from the second quarter of 2020, driven in part by higher incentive compensation associated with higher performance fees and operating income.

•

General and administration expense increased $76 million from the third quarter of 2019, reflecting $80 million of product launch costs associated with the September 2020 close of the $2 billion BlackRock Capital Allocation Trust. The increase also reflected higher technology expense, including certain costs related to COVID-19, and lower marketing and promotional expense.

General and administration expense increased $73 million from the second quarter of 2020, primarily reflecting $80 million of product launch costs, partially offset by the impact of a $12 million impairment of a fixed asset incurred in the second quarter of 2020.

SUMMARY OF NONOPERATING INCOME (expense), less net income (loss) attributable TO noncontrolling interests

	Three Months									Three Months						Nine Months
	Ended									Ended						Ended
	September 30,									June 30,						September 30,
(in millions), (unaudited)	2020			2019			Change			2020			Change			2020			2019			Change
Nonoperating income (expense), GAAP basis	$	224		$	(42	)	$	266		$	357		$	(133	)	$	510		$	140		$	370
Less: Net income (loss) attributable to noncontrolling interests ("NCI")		153			-			153			188			(35	)		162			17			145
Nonoperating income (expense)⁽¹⁾	$	71		$	(42	)	$	113		$	169		$	(98	)	$	348		$	123		$	225

	Three Months									Three Months						Nine Months
	Ended									Ended						Ended
	September 30,									June 30,						September 30,
(in millions), (unaudited)	2020			2019			Change			2020			Change			2020			2019			Change
Net gain (loss) on investments⁽¹⁾
Private equity	$	18		$	6		$	12		$	8		$	10		$	8		$	38		$	(30	)
Real assets		6			12			(6	)		-			6			11			22			(11	)
Other alternatives⁽²⁾		14			3			11			21			(7	)		10			18			(8	)
Other investments⁽³⁾		55			-			55			130			(75	)		35			104			(69	)
Subtotal		93			21			72			159			(66	)		64			182			(118	)
Gain related to the Charitable Contribution		-			-			-			-			-			122			-			122
Other gains (losses)⁽⁴⁾		23			(28	)		51			51			(28	)		279			25			254
Total net gain (loss) on investments⁽¹⁾		116			(7	)		123			210			(94	)		465			207			258
Interest and dividend income		9			19			(10	)		10			(1	)		34			68			(34	)
Interest expense		(54	)		(54	)		-			(51	)		(3	)		(151	)		(152	)		1
Net interest expense		(45	)		(35	)		(10	)		(41	)		(4	)		(117	)		(84	)		(33	)
Nonoperating income (expense)⁽¹⁾	$	71		$	(42	)	$	113		$	169		$	(98	)	$	348		$	123		$	225

⁽¹⁾

Net of net income (loss) attributable to NCI. Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP see note (2) to the condensed consolidated statements of income and supplemental information on pages 11 and 12.

⁽²⁾	Amounts primarily include net gains (losses) related to direct hedge fund strategies and hedge fund solutions.

⁽³⁾	Amounts primarily include net gains (losses) related to unhedged equity, fixed income and multi-asset investments.

⁽⁴⁾

The amount for nine months ended September 30, 2020 include a nonoperating pre-tax gain of approximately $240 million in connection with a recapitalization of iCapital Network, Inc. Additional amounts primarily include noncash pre-tax gains (losses) related to the revaluation of a corporate minority investment.

INCOME TAX EXPENSE (Benefit)

	Three Months									Three Months							Nine Months
	Ended									Ended							Ended
	September 30,									June 30,							September 30,
(in millions), (unaudited)	2020			2019			Change			2020				Change			2020			2019			Change
Income tax expense (benefit)	$	464		$	341		$	123			$	361		$	103		$	811		$	961		$	(150	)
Effective tax rate		25.4	%		23.3	%		210	bps			22.9	%		250	bps		19.3	%		23.2	%		(390	) bps

Highlights

•	Third quarter 2020 income tax expense included a $54 million net noncash net income tax expense, related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the United Kingdom increasing its corporate tax rate.

RECONCILIATION OF US 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)	2020			2019			2020			2020			2019
Operating income, GAAP basis	$	1,757		$	1,502		$	1,406		$	3,847		$	4,013
Non-GAAP expense adjustment:
Charitable Contribution		-			-			-			589			-
Operating income, as adjusted (1)		1,757			1,502			1,406			4,436			4,013
Product launch costs and commissions		83			-			-			170			61
Operating income used for operating margin measurement	$	1,840		$	1,502		$	1,406		$	4,606		$	4,074
Revenue, GAAP basis	$	4,369		$	3,692		$	3,648		$	11,727		$	10,562
Non-GAAP adjustments:
Distribution fees		(288	)		(270	)		(253	)		(817	)		(799	)
Investment advisory fees		(168	)		(157	)		(176	)		(513	)		(448	)
Revenue used for operating margin measurement	$	3,913		$	3,265		$	3,219		$	10,397		$	9,315
Operating margin, GAAP basis		40.2	%		40.7	%		38.5	%		32.8	%		38.0	%
Operating margin, as adjusted (1)		47.0	%		46.0	%		43.7	%		44.3	%		43.7	%

See note (1) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items and the reconciliation to GAAP.

RECONCILIATION OF US GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED
	Three Months Ended							Nine Months Ended
	September 30,					June 30,		September 30,
(in millions), (unaudited)	2020		2019			2020		2020		2019
Nonoperating income (expense), GAAP basis	$	224	$	(42	)	$	357	$	510	$	140
Less: Net income (loss) attributable to NCI		153		-			188		162		17
Nonoperating income (expense), net of NCI		71		(42	)		169		348		123
Less: Gain related to the Charitable Contribution		-		-			-		122		-
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted (2)	$	71	$	(42	)	$	169	$	226	$	123

See note (2) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items and the reconciliation to GAAP.

RECONCILIATION OF US 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)	2020		2019		2020		2020		2019
Net income attributable to BlackRock, Inc., GAAP basis	$	1,364	$	1,119	$	1,214	$	3,384	$	3,175
Non-GAAP adjustments:
Charitable Contribution, net of tax		-		-		-		226		-
Income tax matters		54		-		-		54		-
Net income attributable to BlackRock, Inc., as adjusted (3)	$	1,418	$	1,119	$	1,214	$	3,664	$	3,175
Diluted weighted-average common shares outstanding (4)		153.7		156.4		154.7		155.0		157.4
Diluted earnings per common share, GAAP basis (4)	$	8.87	$	7.15	$	7.85	$	21.84	$	20.17
Diluted earnings per common share, as adjusted (3) (4)	$	9.22	$	7.15	$	7.85	$	23.64	$	20.17

See notes (3) and (4) to the condensed consolidated statements of income and supplemental information on page 12 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. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance and to determine the long-term and annual compensation of the Company’s senior-level employees. Furthermore, this metric is used to evaluate the Company’s relative performance against industry peers, as it eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.

•	Operating income, as adjusted, included a non-GAAP expense adjustment during the nine months ended September 30, 2020. The Charitable Contribution expense of $589 million has been excluded from operating income, as adjusted, due to its nonrecurring nature.

•

Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of product launch costs (e.g. closed-end fund launch costs) and related commissions. Management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenue associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods.

•

Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure, for both management and investors, of BlackRock’s nonoperating results, which ultimately impact BlackRock’s book value. During the nine months ended September 30, 2020, the noncash, nonoperating pre-tax gain of $122 million related to the Charitable Contribution has been excluded from nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, due to its nonrecurring nature.

(3) 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, operating margin, as adjusted, and nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, for information on the Charitable Contribution.

During the nine months ended September 30, 2020, a discrete tax benefit of $241 million was recognized in connection with the Charitable Contribution. The discrete tax benefit has been excluded from as adjusted results due to the non-recurring nature of the Charitable Contribution. 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 as a result of tax rate changes. These 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.

(4) 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) a pandemic or health crisis, including the COVID-19 pandemic, and its impact on financial institutions, the global economy or capital markets, as well as BlackRock’s products, clients, vendors and employees, and BlackRock’s results of operations, the full extent of which may be unknown; (2) the introduction, withdrawal, success and timing of business initiatives and strategies; (3) 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 (“AUM”); (4) the relative and absolute investment performance of BlackRock’s investment products; (5) BlackRock’s ability to develop new products and services that address client preferences; (6) the impact of increased competition; (7) the impact of future acquisitions or divestitures; (8) BlackRock’s ability to integrate acquired businesses successfully; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) 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; (16) the ability to attract and retain highly talented professionals; (17) fluctuations in the carrying value of BlackRock’s economic investments; (18) 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; (19) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (20) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (21) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds (“ETF”) platform; (22) 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 (23) 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, 2020 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 US 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, 2020. The performance data does not include accounts terminated prior to September 30, 2020 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, 2020 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.

BlackRock Inc. - FORM 8-K - EX-99.1 - EARNINGS RELEASE DATED OCTOBER 13, 2020 - October 13, 2020

Attached files

BlackRock Inc. Reports