10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from to .

Commission file number 001-33099

BlackRock, Inc.

(Exact name of registrant as specified in its charter)

    Delaware

    32-0174431

    (State or Other Jurisdiction of
Incorporation or Organization)

    (I.R.S. Employer Identification No.)

50 Hudson Yards, New York, NY 10001

(Address of Principal Executive Offices) (Zip Code)

(212) 810-5800

(Registrant’s Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	BLK	New York Stock Exchange
1.250% Notes due 2025	BLK25	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes		X		No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes		X		No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Yes				No		X

As of July 31, 2024, there were 148,128,478 shares of the registrant’s common stock outstanding.

BlackRock, Inc.

Index to Form 10-Q

PART I

FINANCIAL INFORMATION


		Page

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Statements of Financial Condition	1

	Condensed Consolidated Statements of Income	2

	Condensed Consolidated Statements of Comprehensive Income	3

	Condensed Consolidated Statements of Changes in Equity	4

	Condensed Consolidated Statements of Cash Flows	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	66

Item 4.	Controls and Procedures	67

PART II

OTHER INFORMATION


Item 1.	Legal Proceedings	68

Item 1A.	Risk Factors	69

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70

Item 5.	Other Information	71

Item 6.	Exhibits	72


	Signatures	73

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

BlackRock, Inc.

Condensed Consolidated Statements of Financial Condition

(unaudited)


	June 30,			December 31,
(in millions, except shares and per share data)	2024			2023
Assets
Cash and cash equivalents(1)	$	10,228		$	8,736
Accounts receivable		3,987			3,916
Investments(1)		10,216			9,740
Separate account assets		54,423			56,098
Separate account collateral held under securities lending agreements		5,030			4,558
Property and equipment (net of accumulated depreciation and amortization of $1,550 and $1,439 at June 30, 2024 and December 31, 2023, respectively)		1,052			1,112
Intangible assets (net of accumulated amortization of $629 and $618 at June 30, 2024 and December 31, 2023, respectively)		18,217			18,258
Goodwill		15,653			15,524
Operating lease right-of-use assets		1,459			1,421
Other assets(1)		5,006			3,848
Total assets	$	125,271		$	123,211
Liabilities
Accrued compensation and benefits	$	1,456		$	2,393
Accounts payable and accrued liabilities		1,351			1,240
Borrowings		9,857			7,918
Separate account liabilities		54,423			56,098
Separate account collateral liabilities under securities lending agreements		5,030			4,558
Deferred income tax liabilities		3,405			3,506
Operating lease liabilities		1,821			1,784
Other liabilities(1)		5,689			4,474
Total liabilities		83,032			81,971
Commitments and contingencies (Note 14)
Temporary equity
Redeemable noncontrolling interests		1,968			1,740
Permanent equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;		2			2
Shares authorized: 500,000,000 at June 30, 2024 and December 31, 2023; Shares issued: 172,075,373 at June 30, 2024 and December 31, 2023; Shares outstanding: 148,190,459 and 148,500,074 at June 30, 2024 and December 31, 2023, respectively
Additional paid-in capital		19,771			19,833
Retained earnings		33,858			32,343
Accumulated other comprehensive loss		(978	)		(840	)
Treasury stock, common, at cost (23,884,914 and 23,575,299 shares held at June 30, 2024 and December 31, 2023, respectively)		(12,551	)		(11,991	)
Total BlackRock, Inc. stockholders’ equity		40,102			39,347
Nonredeemable noncontrolling interests		169			153
Total permanent equity		40,271			39,500
Total liabilities, temporary equity and permanent equity	$	125,271		$	123,211

(1)

At June 30, 2024, cash and cash equivalents, investments, other assets and other liabilities include $185 million, $5.5 billion, $117 million, and $2.3 billion, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2023, cash and cash equivalents, investments, other assets and other liabilities include $234 million, $5.0 billion, $83 million, and $2.2 billion, respectively, related to consolidated VIEs.

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Condensed Consolidated Statements of Income

(unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions, except per share data)	2024			2023			2024			2023
Revenue
Investment advisory, administration fees and securities lending revenue:
Related parties	$	2,935		$	2,689		$	5,782		$	5,300
Other third parties		940			922			1,871			1,813
Total investment advisory, administration fees and securities lending revenue		3,875			3,611			7,653			7,113
Investment advisory performance fees		164			118			368			173
Technology services revenue		395			359			772			699
Distribution fees		318			319			628			638
Advisory and other revenue		53			56			112			83
Total revenue		4,805			4,463			9,533			8,706
Expense
Employee compensation and benefits		1,503			1,429			3,083			2,856
Sales, asset and account expense:
Distribution and servicing costs		539			518			1,057			1,023
Direct fund expense		358			344			696			659
Sub-advisory and other		32			27			64			53
Total sales, asset and account expense		929			889			1,817			1,735
General and administration expense		534			493			1,063			988
Amortization of intangible assets		39			37			77			74
Total expense		3,005			2,848			6,040			5,653
Operating income		1,800			1,615			3,493			3,053
Nonoperating income (expense)
Net gain (loss) on investments		162			231			333			320
Interest and dividend income		178			89			319			175
Interest expense		(126	)		(69	)		(218	)		(128	)
Total nonoperating income (expense)		214			251			434			367
Income before income taxes		2,014			1,866			3,927			3,420
Income tax expense		477			443			767			828
Net income		1,537			1,423			3,160			2,592
Less:
Net income (loss) attributable to noncontrolling interests		42			57			92			69
Net income attributable to BlackRock, Inc.	$	1,495		$	1,366		$	3,068		$	2,523
Earnings per share attributable to BlackRock, Inc. common stockholders:
Basic	$	10.07		$	9.13		$	20.65		$	16.85
Diluted	$	9.99		$	9.06		$	20.47		$	16.70
Weighted-average common shares outstanding:
Basic		148.4			149.6			148.6			149.8
Diluted		149.7			150.7			149.9			151.0

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


	Three Months Ended					Six Months Ended
	June 30,					June 30,
(in millions)	2024			2023		2024			2023
Net income	$	1,537		$	1,423	$	3,160		$	2,592
Other comprehensive income (loss):
Foreign currency translation adjustments(1)		(45	)		95		(138	)		221
Comprehensive income (loss)		1,492			1,518		3,022			2,813
Less: Comprehensive income (loss) attributable to noncontrolling interests		42			57		92			69
Comprehensive income attributable to BlackRock, Inc.	$	1,450		$	1,461	$	2,930		$	2,744

(1)

Amounts for the three months ended June 30, 2024 and 2023 include a gain from a net investment hedge of $4 million (net of tax expense of $1 million) and a loss from a net investment hedge of $2 million (net of tax benefit of $1 million), respectively. Amounts for the six months ended June 30, 2024 and 2023 include a gain from a net investment hedge of $18 million (net of tax expense of $5 million) and a loss from a net investment hedge of $13 million (net of tax benefit of $4 million), respectively.

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Condensed Consolidated Statements of Changes in Equity

(unaudited)

For the Six Months Ended June 30, 2024


(in millions)	Additional Paid-in Capital(1)			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity
December 31, 2023	$	19,835		$	32,343		$	(840	)	$	(11,991	)	$	39,347		$	153		$	39,500		$	1,740
Net income		—			3,068			—			—			3,068			(7	)		3,061			99
Dividends declared ($10.20 per share)		—			(1,553	)		—			—			(1,553	)		—			(1,553	)		—
Stock-based compensation		355			—			—			—			355			—			355			—
Issuance of common shares related to employee stock transactions		(417	)		—			—			593			176			—			176			—
Employee tax withholdings related to employee stock transactions		—			—			—			(278	)		(278	)		—			(278	)		—
Shares repurchased		—			—			—			(875	)		(875	)		—			(875	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			23			23			932
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(803	)
Other comprehensive income (loss)		—			—			(138	)		—			(138	)		—			(138	)		—
June 30, 2024	$	19,773		$	33,858		$	(978	)	$	(12,551	)	$	40,102		$	169		$	40,271		$	1,968

(1)

Amounts include $2 million of common stock at both June 30, 2024 and December 31, 2023.

For the Three Months Ended June 30, 2024


(in millions)	Additional Paid-in Capital(1)			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity
March 31, 2024	$	19,619		$	33,121		$	(933	)	$	(12,082	)	$	39,725		$	170		$	39,895		$	1,850
Net income		—			1,495			—			—			1,495			—			1,495			42
Dividends declared ($5.10 per share)		—			(758	)		—			—			(758	)		—			(758	)		—
Stock-based compensation		179			—			—			—			179			—			179			—
Issuance of common shares related to employee stock transactions		(25	)		—			—			50			25			—			25			—
Employee tax withholdings related to employee stock transactions		—			—			—			(19	)		(19	)		—			(19	)		—
Shares repurchased		—			—			—			(500	)		(500	)		—			(500	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			(1	)		(1	)		526
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(450	)
Other comprehensive income (loss)		—			—			(45	)		—			(45	)		—			(45	)		—
June 30, 2024	$	19,773		$	33,858		$	(978	)	$	(12,551	)	$	40,102		$	169		$	40,271		$	1,968

(1)

Amounts include $2 million of common stock at both June 30, 2024 and March 31, 2024.

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Condensed Consolidated Statements of Changes in Equity

(unaudited)

For the Six Months Ended June 30, 2023


(in millions)	Additional Paid-in Capital(1)			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity
December 31, 2022	$	19,774		$	29,876		$	(1,101	)	$	(10,805	)	$	37,744		$	132		$	37,876		$	909
Net income		—			2,523			—			—			2,523			20			2,543			49
Dividends declared ($10.00 per share)		—			(1,544	)		—			—			(1,544	)		—			(1,544	)		—
Stock-based compensation		323			—			—			—			323			—			323			—
Issuance of common shares related to employee stock transactions		(524	)		—			—			571			47			—			47			—
Employee tax withholdings related to employee stock transactions		—			—			—			(354	)		(354	)		—			(354	)		—
Shares repurchased		—			—			—			(752	)		(752	)		—			(752	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			(10	)		(10	)		650
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(62	)
Other comprehensive income (loss)		—			—			221			—			221			—			221			—
June 30, 2023	$	19,573		$	30,855		$	(880	)	$	(11,340	)	$	38,208		$	142		$	38,350		$	1,546

(1)

Amounts include $2 million of common stock at both June 30, 2023 and December 31, 2022.

For the Three Months Ended June 30, 2023


(in millions)	Additional Paid-in Capital(1)			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity
March 31, 2023	$	19,429		$	30,237		$	(975	)	$	(10,979	)	$	37,712		$	118		$	37,830		$	1,235
Net income		—			1,366			—			—			1,366			25			1,391			32
Dividends declared ($5.00 per share)		—			(748	)		—			—			(748	)		—			(748	)		—
Stock-based compensation		158			—			—			—			158			—			158			—
Issuance of common shares related to employee stock transactions		(14	)		—			—			24			10			—			10			—
Employee tax withholdings related to employee stock transactions		—			—			—			(8	)		(8	)		—			(8	)		—
Shares repurchased		—			—			—			(377	)		(377	)		—			(377	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			(1	)		(1	)		336
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(57	)
Other comprehensive income (loss)		—			—			95			—			95			—			95			—
June 30, 2023	$	19,573		$	30,855		$	(880	)	$	(11,340	)	$	38,208		$	142		$	38,350		$	1,546

(1)

Amounts include $2 million of common stock at both June 30, 2023 and March 31, 2023.

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)


	Six Months Ended
	June 30,
(in millions)	2024			2023
Operating activities
Net income	$	3,160		$	2,592
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization		219			208
Noncash lease expense		64			77
Stock-based compensation		355			323
Deferred income tax expense (benefit)		(80	)		58
Other investment (gains)		(59	)		—
Net (gains) losses within CIPs		(170	)		(167	)
Net (purchases) proceeds within CIPs		(1,452	)		(947	)
(Earnings) losses from equity method investees		(92	)		(191	)
Distributions of earnings from equity method investees		26			18
Changes in operating assets and liabilities:
Accounts receivable		(100	)		(472	)
Investments, trading		(40	)		12
Other assets		(1,064	)		(2,337	)
Accrued compensation and benefits		(948	)		(875	)
Accounts payable and accrued liabilities		96			(110	)
Other liabilities		1,042			2,402
Net cash provided by/(used in) operating activities		957			591
Investing activities
Purchases of investments		(517	)		(584	)
Proceeds from sales and maturities of investments		520			179
Distributions of capital from equity method investees		317			17
Net consolidations (deconsolidations) of sponsored investment funds		(34	)		27
Acquisition, net of cash acquired		(74	)		—
Purchases of property and equipment		(71	)		(142	)
Net cash provided by/(used in) investing activities		141			(503	)
Financing activities
Repayments of long-term borrowings		(1,000	)		—
Proceeds from long-term borrowings		2,979			1,238
Cash dividends paid		(1,553	)		(1,544	)
Proceeds from stock options exercised		163			27
Repurchases of common stock		(1,153	)		(1,104	)
Net proceeds from (repayments of) borrowings by CIPs		72			(23	)
Net subscriptions received/(redemptions/distributions paid) from noncontrolling interest holders		955			640
Other financing activities		(9	)		12
Net cash provided by/(used in) financing activities		454			(754	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(60	)		84
Net increase/(decrease) in cash, cash equivalents and restricted cash		1,492			(582	)
Cash, cash equivalents and restricted cash, beginning of period		8,753			7,433
Cash, cash equivalents and restricted cash, end of period	$	10,245		$	6,851
Supplemental schedule of noncash investing and financing transactions:
Issuance of common stock	$	417		$	524
Increase (decrease) in noncontrolling interests due to net consolidation (deconsolidation) of sponsored investment funds	$	(803	)	$	(62	)

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Notes to the Condensed Consolidated Financial Statements

(unaudited)

1. Business Overview

BlackRock’s diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes enables the Company to offer choice and tailor investment and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares® and BlackRock exchange-traded funds (“ETFs”), separate accounts, collective trust funds and other pooled investment vehicles. BlackRock also offers technology services, including the investment and risk management technology platform, Aladdin®, Aladdin WealthTM, eFront® and Cachematrix®, as well as advisory services and solutions to a broad base of institutional and wealth management clients.

2. Significant Accounting Policies

Basis of Presentation

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its controlled subsidiaries. Noncontrolling interests (“NCI”) on the condensed consolidated statements of financial condition represent the portion of consolidated sponsored investment products (“CIPs”) and a consolidated affiliate in which the Company does not have direct equity ownership. Intercompany balances and transactions have been eliminated upon consolidation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates.

Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, is not required for interim reporting purposes and has been condensed or omitted herein. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and footnotes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission (“SEC”) on February 23, 2024 (“2023 Form 10-K”).

The interim financial information at June 30, 2024 and for the three and six months ended June 30, 2024 and 2023 is unaudited. However, in the opinion of management, the interim information includes all normal recurring adjustments necessary for the fair presentation of the Company’s results for the periods presented. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year.

Certain prior period presentations were reclassified to ensure comparability with current period classifications.

Accounting Developments

Segment Reporting. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires incremental disclosures about reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker ("CODM") and (2) included in the reported measure of segment profit or loss. The new standard also requires companies to disclose the title and position of the individual (or the name of the committee) identified as the CODM, allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources, and is applicable to companies with a single reportable segment. The requirements are effective for annual reporting periods beginning on January 1, 2024, and are required to be applied retrospectively. Early adoption is permitted. The Company does not expect the additional disclosure requirements under ASU 2023-07 to have a material impact on the consolidated financial statements.

Income Tax Disclosure Requirements. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which enhances interim and annual income tax disclosures. The two primary enhancements disaggregate existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. The additional disclosure requirements under ASU 2023-09 are required to be applied prospectively and are effective for the Company on January 1, 2025. The Company does not expect the additional disclosure requirements under ASU 2023-09 to have a material impact on the consolidated financial statements.

Fair Value Measurements

Hierarchy of Fair Value Inputs. The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories:

Level 1 Inputs:

Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date.

•

Level 1 assets may include listed mutual funds, ETFs, listed equities, commodities and certain exchange-traded derivatives.

Level 2 Inputs:

Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies.

•

Level 2 assets may include debt securities, loans held within consolidated collateralized loan obligations (“CLOs”), short-term floating-rate notes, asset-backed securities, as well as over-the-counter derivatives, including interest rate swaps and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data.

Level 3 Inputs:

Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation.

•

Level 3 assets may include direct private equity investments, including those held within CIPs, investments in CLOs, and loans held within consolidated CLOs and CIPs.

•

Level 3 liabilities may include borrowings of consolidated CLOs and contingent liabilities related to acquisitions valued based upon discounted cash flow analyses, using unobservable market data, or other valuation techniques.

Significance of Inputs. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

Valuation Approaches. The fair values of certain Level 3 assets and liabilities were determined using various valuation approaches as appropriate, including third-party pricing vendors, broker quotes and market and income approaches.

A significant number of inputs used to value equity, debt securities, and loans held within CLOs and CIPs are sourced from third-party pricing vendors. Generally, prices obtained from pricing vendors are categorized as Level 1 inputs for identical securities traded in active markets and as Level 2 for other similar securities if the vendor uses observable inputs in determining the price.

In addition, quotes obtained from brokers generally are nonbinding and categorized as Level 3 inputs. However, if the Company is able to determine that market participants have transacted for the asset in an orderly manner near the quoted price or if the Company can determine that the inputs used by the broker are observable, the quote is classified as a Level 2 input.

Investments Measured at Net Asset Value. As a practical expedient, the Company uses net asset value (“NAV”) as the fair value for certain investments. The inputs to value these investments may include the Company’s capital accounts for its partnership interests in various alternative investments, including hedge funds, real assets and private equity funds, which may be adjusted by using the returns of certain market indices. The various partnerships are investment companies, which record their underlying investments at fair value based on fair value policies established by management of the underlying fund. Fair value policies at the underlying fund generally require the fund to utilize pricing/valuation information from third-party sources, including independent appraisals. However, in some instances, current valuation information for illiquid securities or securities in markets that are not active may not be available from any third-party source or fund management may conclude that the valuations that are available from third-party sources are not reliable. In these instances, fund management may perform model-based analytical valuations that could be used as an input to value these investments.

Fair Value Assets and Liabilities of Consolidated CLO. The Company applies the fair value option provisions for eligible assets, including loans, held by a consolidated CLO. As the fair value of the financial assets of the consolidated CLO is more observable than the fair value of the borrowings of the consolidated CLO, the Company measures the fair value of the borrowings of the consolidated CLO equal to the fair value of the assets of the consolidated CLO less the fair value of the Company’s economic interest in the CLO.

Derivatives and Hedging Activities. The Company does not use derivative financial instruments for trading or speculative purposes. The Company uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in foreign currency exchange rates of certain assets and liabilities, and market price and interest rate exposures with respect to its total portfolio of seed investments in sponsored investment products. Certain CIPs also utilize derivatives as a part of their investment strategies.

In addition, the Company uses derivatives and makes investments to economically hedge market valuation changes on certain deferred cash compensation plans, for which the final value of the deferred amount distributed to employees in cash upon vesting is determined based on the returns of specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense). See Note 4, Investments, and Note 8, Derivatives and Hedging, for further information on the Company’s investments and derivatives, respectively, used to economically hedge these deferred cash compensation plans.

The Company records all derivative financial instruments as either assets or liabilities at fair value on a gross basis in the condensed consolidated statements of financial condition. Credit risks are managed through master netting and collateral support agreements. The amounts related to the right to reclaim or the obligation to return cash collateral may not be used to offset amounts due under the derivative instruments in the normal course of settlement. Therefore, such amounts are not offset against fair value amounts recognized for derivative instruments with the same counterparty and are included in other assets and other liabilities. Changes in the fair value of the Company’s derivative financial instruments are recognized in earnings and, where applicable, are offset by the corresponding gain or loss on the related foreign-denominated or hedged assets or liabilities, on the condensed consolidated statements of income.

The Company may also use financial instruments designated as net investment hedges for accounting purposes to hedge net investments in international subsidiaries, the functional currency of which is not United States ("US") dollars. The gain or loss from revaluing net investment hedges at the spot rate is deferred and reported within accumulated other comprehensive income (loss) (“AOCI”) on the condensed consolidated statements of financial condition. The Company reassesses the effectiveness of its net investment hedge at least quarterly.

Separate Account Assets and Liabilities. Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company, which is a registered life insurance company in the United Kingdom (“UK”), and represent segregated assets held for purposes of funding individual and group pension contracts. The life insurance company does not underwrite any insurance contracts that involve any insurance risk transfer from the insured to the life insurance company. The separate account assets primarily include equity securities, debt securities, money market funds and derivatives. The separate account assets are not subject to general claims of the creditors of BlackRock. These separate account assets and the related equal and offsetting liabilities are recorded as separate account assets and separate account liabilities on the condensed consolidated statements of financial condition.

The net investment income attributable to separate account assets supporting individual and group pension contracts accrues directly to the contract owner and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these separate account assets and liabilities, BlackRock earns policy administration and management fees associated with these products, which are included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income.

Separate Account Collateral Assets Held and Liabilities Under Securities Lending Agreements. The Company facilitates securities lending arrangements whereby securities held by separate accounts maintained by BlackRock Life Limited are lent to third parties under global master securities lending agreements. In exchange, the Company obtains either (1) the legal title, or (2) a first ranking priority security interest, in the collateral. The minimum collateral values generally range from approximately 102% to 112% of the value of the securities in order to reduce counterparty risk. The required collateral value is calculated on a daily basis. The global master securities lending agreements provide the Company the right to request additional collateral or, in the event of borrower default, the right to liquidate collateral. The securities lending transactions entered into by the Company are accompanied by an agreement that entitles the Company to request the borrower to return the securities at any time; therefore, these transactions are not reported as sales.

In situations where the Company obtains the legal title to collateral under these securities lending arrangements, the Company records an asset on the condensed consolidated statements of financial condition in addition to an equal collateral liability for the obligation to return the collateral. Additionally, in situations where the Company obtains a first ranking priority security interest in the collateral, the Company does not have the ability to pledge or resell the collateral and therefore does not record the collateral on the condensed consolidated statements of financial condition. At June 30, 2024 and December 31, 2023, the fair value of loaned securities held by separate accounts was approximately $9.5 billion and $9.3 billion, respectively, and the fair value of the collateral under these securities lending agreements was approximately $10.2 billion and $10.1 billion, respectively, of which approximately $5.0 billion as of June 30, 2024 and $4.6 billion as of December 31, 2023 was recognized on the condensed consolidated statements of financial condition. During the six months ended June 30, 2024 and 2023, the Company had not resold or repledged any of the collateral obtained under these arrangements. The securities lending revenue earned from lending securities held by the separate accounts is included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income.

3. Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents reported within the condensed consolidated statements of financial condition to the cash, cash equivalents, and restricted cash reported within the condensed consolidated statements of cash flows.


	June 30,		December 31,
(in millions)	2024		2023
Cash and cash equivalents	$	10,228	$	8,736
Restricted cash included in other assets		17		17
Total cash, cash equivalents and restricted cash	$	10,245	$	8,753

4. Investments

A summary of the carrying value of total investments is as follows:


	June 30,		December 31,
(in millions)	2024		2023
Debt securities:
Trading securities (including $1,868 and $1,829 held by CIPs at June 30, 2024 and December 31, 2023, respectively)	$	1,951	$	1,871
Held-to-maturity investments		582		617
Total debt securities		2,533		2,488
Equity securities at FVTNI (including $2,120 and $1,429 held by CIPs at June 30, 2024 and December 31, 2023, respectively)(1)		2,310		1,585
Equity method investments:
Equity method investments(2)		2,498		2,515
Investments related to deferred cash compensation plans(1)		171		241
Total equity method investments		2,669		2,756
Loans held by CIPs		238		205
Federal Reserve Bank stock(3)		92		92
Carried interest(4)		1,917		1,975
Other investments(5)		457		639
Total investments	$	10,216	$	9,740

(1)

Amounts include investments held to economically hedge the impact of market valuation changes on certain deferred cash compensation plans of $171 million and $12 million included within equity method investments and equity securities at fair value recorded through net income ("FVTNI"), respectively, as of June 30, 2024. Amounts as of December 31, 2023 were $241 million and $14 million, respectively, and $9 million in other investments.

(2)

Equity method investments primarily include BlackRock’s direct investments in certain BlackRock sponsored investment funds.

(3)

Federal Reserve Bank stock is held for regulatory purposes and is restricted from sale.

(4)

Carried interest represents allocations to BlackRock’s general partner capital accounts from certain sponsored investment funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds.

(5)

Other investments include BlackRock’s investments in nonmarketable equity securities, which are measured at cost, adjusted for observable price changes, a loan held at amortized cost, and private equity, real asset, and commodity investments held by CIPs, which are measured at fair value.

Held-to-Maturity Investments

Held-to-maturity investments included certain investments in BlackRock sponsored CLOs. The amortized cost (carrying value) of these investments approximated fair value (primarily a Level 2 input). At June 30, 2024, $10 million of these investments mature in less than one year, $300 million of these investments mature between five to ten years and $272 million of these investments mature after ten years.

Trading Debt Securities and Equity Securities at FVTNI

A summary of the cost and carrying value of trading debt securities and equity securities at FVTNI is as follows:



	June 30, 2024				December 31, 2023
(in millions)	Cost		Carrying Value		Cost		Carrying Value
Trading debt securities:
Corporate debt	$	919	$	926	$	1,225	$	1,218
Government debt		676		666		501		489
Asset/mortgage-backed debt		373		359		185		164
Total trading debt securities	$	1,968	$	1,951	$	1,911	$	1,871
Equity securities at FVTNI:
Equity securities/mutual funds	$	1,974	$	2,310	$	1,520	$	1,585

5. Consolidated Sponsored Investment Products

In the normal course of business, the Company is the manager of various types of sponsored investment products, which may be considered VIE or voting rights entities ("VREs"). The Company consolidates certain sponsored investment funds accounted for as VREs because it is deemed to control such funds. In addition, the Company may from time to time own equity or debt securities or enter into derivatives or loan arrangements with the vehicles, each of which are considered variable interests. The Company’s involvement in financing the operations of the VIEs is generally limited to its economic interest in the entity. The Company’s consolidated VIEs include certain sponsored investment products in which BlackRock has an economic interest and as the investment manager, is deemed to have both the power to direct the most significant activities of the products and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these sponsored investment products. The assets of these VIEs are not available to creditors of the Company. In addition, the investors in these VIEs have no recourse to the credit of the Company.

The following table presents the balances related to these CIPs accounted for as VIEs and VREs that were recorded on the condensed consolidated statements of financial condition, including BlackRock’s net interest in these products:


	June 30, 2024									December 31, 2023
(in millions)	VIEs			VREs			Total			VIEs			VREs			Total
Cash and cash equivalents(1)	$	185		$	41		$	226		$	234		$	54		$	288
Investments:
Trading debt securities		1,449			419			1,868			1,423			406			1,829
Equity securities at FVTNI		1,640			480			2,120			1,059			370			1,429
Loans		238			—			238			195			10			205
Other investments		349			40			389			427			171			598
Carried interest		1,855			—			1,855			1,916			—			1,916
Total investments		5,531			939			6,470			5,020			957			5,977
Other assets		117			20			137			83			39			122
Other liabilities(2)		(2,287	)		(70	)		(2,357	)		(2,233	)		(108	)		(2,341	)
Noncontrolling interest - CIPs		(1,911	)		(163	)		(2,074	)		(1,625	)		(226	)		(1,851	)
BlackRock's net interest in CIPs	$	1,635		$	767		$	2,402		$	1,479		$	716		$	2,195

(1)

The Company generally cannot readily access cash and cash equivalents held by CIPs to use in its operating activities.

(2)

At both June 30, 2024 and December 31, 2023, other liabilities of VIEs primarily include deferred carried interest liabilities and borrowings of a consolidated CLO.

BlackRock’s total exposure to CIPs represents the value of its economic interest in these CIPs. Valuation changes associated with financial instruments held at fair value by these CIPs are reflected in nonoperating income (expense) and partially offset in net income (loss) attributable to NCI for the portion not attributable to BlackRock.

Net gain (loss) related to consolidated VIEs is presented in the following table:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Nonoperating net gain (loss) on consolidated VIEs	$	66	$	80	$	137	$	139

Net income (loss) attributable to NCI on consolidated VIEs	$	46	$	61	$	85	$	73

6. Variable Interest Entities

Nonconsolidated VIEs. At June 30, 2024 and December 31, 2023, the Company’s carrying value of assets and liabilities included on the condensed consolidated statements of financial condition pertaining to nonconsolidated VIEs and its maximum risk of loss related to VIEs for which it held a variable interest, but for which it was not the primary beneficiary, was as follows:


			Advisory Fee		Other Net Assets			Maximum
(in millions)	Investments		Receivables		(Liabilities)			Risk of Loss(1)
June 30, 2024
Sponsored investment products	$	2,261	$	149	$	(9	)	$	2,427
December 31, 2023
Sponsored investment products	$	2,377	$	116	$	(11	)	$	2,510

(1)

At both June 30, 2024 and December 31, 2023, BlackRock’s maximum risk of loss associated with these VIEs primarily related to BlackRock’s investments and the collection of receivables.

The net assets of sponsored investment products that are nonconsolidated VIEs approximated $43 billion and $39 billion at June 30, 2024 and December 31, 2023, respectively.

7. Fair Value Disclosures

Fair Value Hierarchy

Assets and liabilities measured at fair value on a recurring basis


June 30, 2024 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV(1)		Other(2)		June 30, 2024
Assets:
Investments
Debt securities:
Trading securities	$	—	$	1,869	$	82	$	—	$	—	$	1,951
Held-to-maturity investments		—		—		—		—		582		582
Total debt securities		—		1,869		82		—		582		2,533
Equity securities at FVTNI:
Equity securities/mutual funds		2,310		—		—		—		—		2,310
Equity method:
Equity, fixed income, and multi-asset mutual funds		249		117		—		—		—		366
Hedge funds/funds of hedge funds/other		—		—		—		595		—		595
Private equity funds		—		—		—		1,096		—		1,096
Real assets funds		—		—		—		441		—		441
Investments related to deferred cash compensation plans		—		—		—		171		—		171
Total equity method		249		117		—		2,303		—		2,669
Loans held by CIPs		—		13		225		—		—		238
Federal Reserve Bank Stock		—		—		—		—		92		92
Carried interest		—		—		—		—		1,917		1,917
Other investments		29		—		—		250		178		457
Total investments		2,588		1,999		307		2,553		2,769		10,216
Other assets(3)		147		1		150		—		—		298
Separate account assets		33,898		20,146		—		—		379		54,423
Separate account collateral held under securities lending agreements:
Equity securities		1,523		—		—		—		—		1,523
Debt securities		—		3,507		—		—		—		3,507
Total separate account collateral held under securities lending agreements		1,523		3,507		—		—		—		5,030
Total	$	38,156	$	25,653	$	457	$	2,553	$	3,148	$	69,967
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	1,523	$	3,507	$	—	$	—	$	—	$	5,030
Other liabilities(4)		—		18		298		—		—		316
Total	$	1,523	$	3,525	$	298	$	—	$	—	$	5,346

(1)

Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.

(2)

Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, and carried interest.

(3)

Level 1 amount includes a minority investment in a publicly traded company. Level 3 amount includes corporate minority private debt investments with changes in fair value recorded in AOCI, net of tax.

(4)

Level 2 amount primarily includes fair value of derivatives (See Note 8, Derivatives and Hedging, for more information). Level 3 amount primarily includes borrowings of a consolidated CLO classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and contingent liabilities related to certain acquisitions.


December 31, 2023 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV(1)		Other(2)		December 31, 2023
Assets:
Investments
Debt securities:
Trading securities	$	—	$	1,829	$	42	$	—	$	—	$	1,871
Held-to-maturity investments		—		—		—		—		617		617
Total debt securities		—		1,829		42		—		617		2,488
Equity securities at FVTNI:
Equity securities/mutual funds		1,585		—		—		—		—		1,585
Equity method:
Equity, fixed income, and multi-asset mutual funds		246		—		—		—		—		246
Hedge funds/funds of hedge funds/other		—		—		—		588		—		588
Private equity funds		—		—		—		1,264		—		1,264
Real assets funds		—		—		—		417		—		417
Investments related to deferred cash compensation plans		—		—		—		241		—		241
Total equity method		246		—		—		2,510		—		2,756
Loans held by CIPs		—		30		175		—		—		205
Federal Reserve Bank Stock		—		—		—		—		92		92
Carried interest		—		—		—		—		1,975		1,975
Other investments		15		—		—		467		157		639
Total investments		1,846		1,859		217		2,977		2,841		9,740
Other assets(3)		117		19		120		—		—		256
Separate account assets		34,621		20,810		—		—		667		56,098
Separate account collateral held under securities lending agreements:
Equity securities		1,686		—		—		—		—		1,686
Debt securities		—		2,872		—		—		—		2,872
Total separate account collateral held under securities lending agreements		1,686		2,872		—		—		—		4,558
Total	$	38,270	$	25,560	$	337	$	2,977	$	3,508	$	70,652
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	1,686	$	2,872	$	—	$	—	$	—	$	4,558
Other liabilities(4)		—		17		279		—		—		296
Total	$	1,686	$	2,889	$	279	$	—	$	—	$	4,854

(1)

Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.

(2)

Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, and carried interest.

(3)

Level 1 amount includes a minority investment in a publicly traded company. Level 3 amount includes a corporate minority private debt investment with changes in fair value recorded in AOCI, net of tax.

(4)

Level 2 amount primarily includes fair value of derivatives (See Note 8, Derivatives and Hedging, for more information). Level 3 amount primarily includes borrowings of a consolidated CLO classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and a contingent liability related to certain acquisitions.

Level 3 Assets. Level 3 assets predominantly include investments in nonconsolidated CLOs, loans of consolidated CIPs, and corporate minority private debt investments. Investments in CLOs and loans were valued based on single-broker nonbinding quotes or quotes from pricing services which use significant unobservable inputs. BlackRock's corporate minority private debt investments were primarily valued using the income approach by discounting the expected cash flows to a single present value. For investments utilizing a discounted cashflow valuation technique, an increase (decrease) in the discount rate or risk premium in isolation could have resulted in a significantly lower (higher) fair value measurement as of June 30, 2024 and December 31, 2023.

Level 3 Liabilities. Level 3 liabilities primarily include borrowings of a consolidated CLO, which were valued based on the fair value of the assets of the consolidated CLO less the fair value of the Company’s economic interest in the CLO, as well as contingent liabilities related to certain acquisitions, which were valued based upon discounted cash flow analyses using unobservable market data inputs, or other valuation techniques.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended June 30, 2024


(in millions)	March 31, 2024		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and Other Settlements(1)		Transfers into Level 3		Transfers out of Level 3		June 30, 2024		Total Net Unrealized Gains (Losses) Included in Earnings(2)
Assets:
Investments:
Debt securities:
Trading	$	48	$	5		$	29	$	—		$	—	$	—	$	—	$	82	$	5
Total debt securities		48		5			29		—			—		—		—		82		5
Loans		525		(2	)		33		(337	)		—		6		—		225		(2	)
Total investments		573		3			62		(337	)		—		6		—		307		3
Other assets		138		—			12		—			—		—		—		150		—
Total assets	$	711	$	3		$	74	$	(337	)	$	—	$	6	$	—	$	457	$	3
Liabilities:
Other liabilities	$	258	$	(3	)	$	—	$	—		$	37	$	—	$	—	$	298	$	(3	)

(1)

Issuances and other settlements amount includes a contingent liability in connection with the acquisition of the remaining equity interest in SpiderRock Advisors ("SRA") in May 2024 (the "SpiderRock Transaction"), partially offset by repayments of borrowings of a consolidated CLO.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Six Months Ended June 30, 2024


(in millions)	December 31, 2023		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and Other Settlements(1)		Transfers into Level 3		Transfers out of Level 3			June 30, 2024		Total Net Unrealized Gains (Losses) Included in Earnings(2)
Assets:
Investments:
Debt securities:
Trading	$	42	$	4		$	36	$	—		$	—	$	—	$	—		$	82	$	4
Total debt securities		42		4			36		—			—		—		—			82		4
Loans		175		—			398		(354	)		—		9		(3	)		225		—
Total investments		217		4			434		(354	)		—		9		(3	)		307		4
Other assets		120		(7	)		37		—			—		—		—			150		(7	)
Total assets	$	337	$	(3	)	$	471	$	(354	)	$	—	$	9	$	(3	)	$	457	$	(3	)
Liabilities:
Other liabilities	$	279	$	3		$	—	$	—		$	22	$	—	$	—		$	298	$	3

(1)

Issuances and other settlements amount includes a contingent liability in connection with the SpiderRock Transaction partially offset by repayments of borrowings of a consolidated CLO.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended June 30, 2023


(in millions)	March 31, 2023		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and Other Settlements(1)			Transfers into Level 3		Transfers out of Level 3			June 30, 2023		Total Net Unrealized Gains (Losses) Included in Earnings(2)
Assets:
Investments:
Debt securities:
Trading	$	55	$	(1	)	$	4	$	(17	)	$	—		$	—	$	—		$	41	$	(1	)
Total debt securities		55		(1	)		4		(17	)		—			—		—			41		(1	)
Loans		247		17			—		(1	)		—			5		(2	)		266		17
Total investments		302		16			4		(18	)		—			5		(2	)		307		16
Other assets		—		—			109		—			—			—		—			109		—
Total assets	$	302	$	16		$	113	$	(18	)	$	—		$	5	$	(2	)	$	416	$	16
Liabilities:
Other liabilities	$	257	$	—		$	—	$	—		$	(3	)	$	—	$	—		$	254	$	—

(1)

Amounts include repayments of borrowings of a consolidated CLO.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Six Months Ended June 30, 2023


(in millions)	December 31, 2022		Realized and Unrealized Gains (Losses)		Purchases		Sales and Maturities			Issuances and Other Settlements(1)			Transfers into Level 3		Transfers out of Level 3			June 30, 2023		Total Net Unrealized Gains (Losses) Included in Earnings(2)
Assets:
Investments:
Debt securities:
Trading	$	52	$	—	$	6	$	(17	)	$	—		$	—	$	—		$	41	$	—
Total debt securities		52		—		6		(17	)		—			—		—			41		—
Loans		248		23		12		(21	)		—			10		(6	)		266		23
Total investments		300		23		18		(38	)		—			10		(6	)		307		23
Other assets		—		—		109		—			—			—		—			109		—
Total assets	$	300	$	23	$	127	$	(38	)	$	—		$	10	$	(6	)	$	416	$	23
Liabilities:
Other liabilities	$	280	$	4	$	—	$	—		$	(22	)	$	—	$	—		$	254	$	4

(1)

Amounts include repayments of borrowings of a consolidated CLO.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

Realized and Unrealized Gains (Losses) for Level 3 Assets and Liabilities. Realized and unrealized gains (losses) recorded for Level 3 assets and liabilities are reported in nonoperating income (expense) or AOCI for corporate minority private debt investments. A portion of net income (loss) related to securities held by CIPs is allocated to NCI to reflect net income (loss) not attributable to the Company.

Transfers in and/or out of Levels. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable.

Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At June 30, 2024 and December 31, 2023, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below:


	June 30, 2024				December 31, 2023
(in millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Financial Assets(1):
Cash and cash equivalents	$	10,228	$	10,228	$	8,736	$	8,736	Level 1	(2)(3)
Other assets	$	80	$	80	$	80	$	80	Level 1	(2)(4)

Financial Liabilities:
Long-term borrowings	$	9,857	$	9,215	$	7,918	$	7,413	Level 2	(5)

(1)

See Note 4, Investments, for further information on investments not held at fair value.

(2)

Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities.

(3)

At June 30, 2024 and December 31, 2023, approximately $5.2 billion and $3.4 billion, respectively, of money market funds were recorded within cash and cash equivalents on the condensed consolidated statements of financial condition. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund.

(4)

At both June 30, 2024 and December 31, 2023, other assets included cash collateral of approximately $63 million. See Note 8, Derivatives and Hedging for further information on derivatives held by the Company. In addition, other assets included $17 million of restricted cash at both June 30, 2024 and December 31, 2023.

(5)

Long-term borrowings are recorded at amortized cost, net of debt issuance costs. The fair value of the long-term borrowings, including the current portion of long-term borrowings, is determined using market prices and the EUR/USD foreign exchange rate at the end of June 2024 and December 2023, respectively. See Note 13, Borrowings, for the fair value of each of the Company’s long-term borrowings.

Investments in Certain Entities that Calculate NAV Per Share

As a practical expedient to value certain investments that do not have a readily determinable fair value and have attributes of an investment company, the Company uses NAV as the fair value. The following tables list information regarding all investments that use a fair value measurement to account for both their financial assets and financial liabilities in their calculation of a NAV per share (or equivalent).

        June 30, 2024

        (in millions)

        Ref

        Fair Value

        Total
Unfunded
Commitments

        Redemption
Frequency

        Redemption
Notice Period

        Equity method(1):

Hedge funds/funds of hedge
  funds/other

(a)

595

133

Daily/Monthly (11%)
Quarterly (9%)
N/R (80%)

1 – 90 days

Private equity funds

(b)

1,096

233

N/R

N/R

Real assets funds

(c)

441

236

Quarterly (8%)
N/R (92%)

60 days

Investments related to deferred 
   cash compensation plan

(d)

171

—

Monthly

1 – 90 days

        Consolidated sponsored
   investment products:

Real assets funds

(c)

161

58

N/R

N/R

Private equity funds

(e)

6

19

N/R

N/R

Hedge funds/other

(a)

83

60

Quarterly (64%)
N/R (36%)

90 days

Total

2,553

739

        December 31, 2023

        (in millions)

        Ref

        Fair Value

        Total
Unfunded
Commitments

        Redemption
Frequency

        Redemption
Notice Period

        Equity method(1):

Hedge funds/funds of hedge
  funds/other

(a)

588

134

Daily/Monthly (4%)
Quarterly (8%)
N/R (88%)

1 – 90 days

Private equity funds

(b)

1,264

218

N/R

N/R

Real assets funds

(c)

417

210

Quarterly (10%)
N/R (90%)

60 days

Investments related to deferred 
   cash compensation plan

(d)

241

—

Monthly

1 – 90 days

        Consolidated sponsored
   investment products:

Real assets funds

(c)

154

62

N/R

N/R

Private equity funds

(e)

145

37

N/R

N/R

Hedge funds/other

(a)

168

64

Quarterly (83%)
N/R (17%)

90 days

Total

2,977

725

N/R – Not Redeemable

(1)

Comprised of equity method investments, which include investment companies that account for their financial assets and most financial liabilities under fair value measures; therefore, the Company’s investment in such equity method investees approximates fair value.

(a)

This category includes hedge funds, funds of hedge funds, and other funds that invest primarily in equities, fixed income securities, private credit, opportunistic and mortgage instruments and other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. The liquidation period for the investments in the funds that are not subject to redemption is unknown at both June 30, 2024 and December 31, 2023.

(b)

This category includes private equity funds that initially invest in nonmarketable securities of private companies, which ultimately may become public in the future. The fair values of these investments have been estimated using capital accounts representing the Company’s ownership interest in the funds and may also include other performance inputs. The Company’s investment in each fund is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying assets of the private equity funds. The liquidation period for the investments in these funds is unknown at both June 30, 2024 and December 31, 2023.

(c)

This category includes several real assets funds that invest directly and indirectly in real estate or infrastructure. The fair values of the investments have been estimated using capital accounts representing the Company’s ownership interest in the funds. The Company’s investments that are not subject to redemption or are not currently redeemable are normally returned through distributions and realizations of the underlying assets of the funds. The liquidation period for the investments in the funds that are not subject to redemptions is unknown at both June 30, 2024 and December 31, 2023. The total remaining unfunded commitments were $294 million and $272 million at June 30, 2024 and December 31, 2023, respectively. The Company’s portion of the total remaining unfunded commitments was $267 million and $248 million at June 30, 2024 and December 31, 2023, respectively.

(d)

This category includes hedge funds and funds of hedge funds that invest primarily in equities, fixed income securities, mortgage instruments and other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company's ownership interest in partners' capital. The investments in hedge funds will be redeemed upon settlement of certain deferred cash compensation liabilities.

(e)

This category includes the underlying third-party private equity funds within consolidated BlackRock sponsored private equity funds of funds. These investments are not subject to redemption or are not currently redeemable; however, for certain funds, the Company may sell or transfer its interest, which may need approval by the general partner of the underlying funds. Due to the nature of the investments in this category, the Company reduces its investment by distributions that are received through the realization of the underlying assets of the funds. The liquidation period for the underlying assets of these funds is unknown.

Fair Value Option

At June 30, 2024 and December 31, 2023, the Company elected the fair value option for certain investments in CLOs of approximately $75 million and $42 million, respectively, reported within investments.

In addition, the Company elected the fair value option for bank loans and borrowings of a consolidated CLO, recorded within investments and other liabilities, respectively. The following table summarizes the information related to these bank loans and borrowings at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(in millions)	2024		2023
CLO loans:
Aggregate principal amounts outstanding	$	190	$	203
Fair value		176		194
Aggregate unpaid principal balance in excess of (less than) fair value	$	14	$	9

CLO Borrowings:
Aggregate principal amounts outstanding	$	175	$	190
Fair value	$	162	$	180

At June 30, 2024, the principal amounts outstanding of the borrowings issued by the consolidated CLO mature in 2030, and may be repaid prior to maturity at any time.

During the three and six months ended June 30, 2024 and 2023, the net gains (losses) from the change in fair value of the bank loans and borrowings held by the consolidated CLO were not material and were recorded in net gain (loss) on the condensed consolidated statements of income. The change in fair value of the assets and liabilities included interest income and expense, respectively.

8. Derivatives and Hedging

The Company maintains a program to enter into exchange traded futures as a macro hedging strategy to hedge market price and interest rate exposures with respect to its total portfolio of seed investments in sponsored investment products. The Company had outstanding exchange traded futures related to this macro hedging strategy with aggregate notional values of approximately $1.7 billion and $1.8 billion at June 30, 2024 and December 31, 2023, with expiration dates during the third and first quarter of 2024, respectively.

In addition, the Company enters into futures to economically hedge the exposure to market movements on certain deferred cash compensation plans. At June 30, 2024 and December 31, 2023, the Company had outstanding exchange traded futures with aggregate notional values related to its deferred cash compensation hedging program of approximately $206 million and $204 million, with expiration dates during the third and first quarter of 2024, respectively.

Changes in the value of the futures contracts are recognized as gains or losses within nonoperating income (expense). Variation margin payments, which represent settlements of profit/loss, are generally received or made daily, and are reflected in other assets and other liabilities on the condensed consolidated statements of financial condition. These amounts were not material as of June 30, 2024 and December 31, 2023.

The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange movements. At June 30, 2024 and December 31, 2023, the Company had outstanding forward foreign currency exchange contracts with aggregate notional values of approximately $2.7 billion and $3.1 billion, with expiration dates in July 2024 and January 2024, respectively.

At both June 30, 2024 and December 31, 2023, the Company had a derivative providing credit protection with a notional amount of approximately $17 million to a counterparty, representing the Company’s maximum risk of loss with respect to the derivative. The Company carries the derivative at fair value based on the expected discounted future cash outflows under the arrangement.

The following table presents the fair values of derivative instruments recognized in the condensed consolidated statements of financial condition at June 30, 2024 and December 31, 2023:

         
        Assets

        Liabilities

        (in millions)

        Statement of
Financial 
Condition
Classification

        June 30, 2024

        December 31, 2023

        Statement of
Financial 
Condition
Classification

        June 30, 2024

        December 31, 2023

        Derivative Instruments

Forward foreign currency 
   exchange contracts

Other assets

1

19

Other liabilities

7

6

The following table presents realized and unrealized gains (losses) recognized in the condensed consolidated statements of income on derivative instruments:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
	Statement of Income	2024			2023			2024			2023
(in millions)	Classification	Gains (Losses)						Gains (Losses)
Derivative Instruments
Exchange traded futures(1)	Net gain (loss) on investments	$	(3	)	$	(13	)	$	(35	)	$	(58	)
Forward foreign currency exchange contracts	General and administration expense		9			55			4			95
Total gain (loss) from derivative instruments		$	6		$	42		$	(31	)	$	37

(1)

Amounts for the three months ended June 30, 2024 and 2023 include $6 million and $21 million of losses on futures used in a macro hedging strategy of seed investments, respectively, and $3 million and $8 million of gains on futures used to economically hedge certain deferred cash compensation plans, respectively. Amounts for the six months ended June 30, 2024 and 2023 include $49 million and $76 million of losses on futures used in a macro hedging strategy of seed investments, respectively, and $14 million and $17 million of gains on futures used to economically hedge certain deferred cash compensation plans, respectively.

The Company's CIPs may utilize derivative instruments as a part of the funds' investment strategies. The change in fair value of such derivatives, which is recorded in nonoperating income (expense), was not material for the three and six months ended June 30, 2024 and 2023.

See Note 14, Borrowings, in the 2023 Form 10-K for more information on the Company’s net investment hedge.

9. Goodwill

Goodwill activity during the six months ended June 30, 2024 was as follows:


(in millions)
December 31, 2023	$	15,524
Acquisition(1)		131
Other		(2	)
June 30, 2024	$	15,653

(1)

Amount represents goodwill in connection with the SpiderRock Transaction. This transaction expands on BlackRock’s minority investment in SRA made in 2021 and reinforces BlackRock’s commitment to personalized separately managed accounts.

10. Intangible Assets

The carrying amounts of identifiable intangible assets are summarized as follows:


(in millions)	Indefinite-lived		Finite-lived			Total
December 31, 2023	$	17,578	$	680		$	18,258
Acquisition(1)		—		37			37
Amortization expense		—		(77	)		(77	)
Other		—		(1	)		(1	)
June 30, 2024	$	17,578	$	639		$	18,217

(1)

In connection with the SpiderRock Transaction, the Company acquired approximately $29 million of finite-lived customer relationships and $8 million of finite-lived technology-related intangible assets with weighted-average estimated lives of approximately eleven and five years, respectively.

11. Leases

The following table presents components of lease cost included in general and administration expense on the condensed consolidated statements of income:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Lease cost:
Operating lease cost(1)	$	46	$	46	$	91	$	101
Variable lease cost(2)		13		9		27		20
Total lease cost	$	59	$	55	$	118	$	121

(1)

Amounts include short-term leases, which are immaterial for the three and six months ended June 30, 2024 and 2023.

(2)

Amounts include operating lease payments, which may be adjusted based on usage, changes in an index or market rate, as well as common area maintenance charges and other variable costs not included in the measurement of right-of-use (“ROU”) assets and operating lease liabilities.

Supplemental information related to operating leases is summarized below:


	Six Months Ended
	June 30,
(in millions)	2024		2023
Supplemental cash flow information:
Operating cash flows from operating leases included in the measurement of operating lease liabilities	$	89	$	69

Supplemental noncash information:
ROU assets in exchange for operating lease liabilities	$	110	$	15


	June 30,			December 31,
	2024			2023
Lease term and discount rate:
Weighted-average remaining lease term		15	years		15	years
Weighted-average discount rate		3	%		3	%

12. Other Assets

The Company records certain corporate minority investments, which exclude seed and co-investments in the Company's sponsored investment products, within other assets on the condensed consolidated statements of financial condition.

At both June 30, 2024 and December 31, 2023, the Company had $773 million of certain corporate minority equity method investments, recorded within other assets. BlackRock’s share of these investees’ underlying net income or loss is presented within nonoperating income (expense) beginning in the first quarter of 2024 and within advisory and other revenue in 2023. At June 30, 2024 and December 31, 2023, the Company's ownership interest in its minority investment in iCapital Network Inc. ("iCapital") was approximately 24%, and the carrying value of the Company's interest was $662 million and $641 million, respectively. In accordance with GAAP, certain equity method investees, including iCapital, do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value.

At June 30, 2024 and December 31, 2023, the Company had $562 million and $484 million, respectively, of other nonequity method corporate minority investments recorded within other assets. These investments include equity securities, generally measured at fair value or under the measurement alternative to fair value for nonmarketable securities, and corporate minority private debt investments measured at fair value. Changes in value of the equity securities are recorded in nonoperating income (expense) and changes in value of the debt securities are recorded in AOCI, net of tax. See Note 2, Significant Accounting Policies, in the notes to the consolidated financial statements contained in the 2023 Form 10-K for further information.

13. Borrowings

Short-Term Borrowings

2024 Revolving Credit Facility. The Company maintains an unsecured revolving credit facility, which is available for working capital and general corporate purposes (the “2024 credit facility”). In March 2024, the 2024 credit facility was amended to, among other things, (1) permit the proposed acquisition of Global Infrastructure Management, LLC (referred to herein as Global Infrastructure Partners (“GIP”) or the "GIP Transaction") and the transactions contemplated in connection with the GIP Transaction, (2) add BlackRock Funding, Inc., a Delaware corporation and currently a wholly owned subsidiary of BlackRock (“BlackRock Funding”), as a borrower under the existing credit agreement, (3) add BlackRock Funding as a guarantor of the payment and performance of the obligations, liabilities and indebtedness of BlackRock and certain of its other subsidiaries and (4) update the sustainability-linked pricing mechanics to allow metrics to be set following the consummation of the GIP Transaction. In May 2024, the 2024 credit facility was further amended to, among other things, (1) increase the aggregate commitment amount by $400 million to $5.4 billion and (2) extend the maturity date to March 2029 for lenders (other than one non-extending lender) pursuant to the Company’s option to request extensions of the maturity date available under the 2024 credit facility (with the commitment of the non-extending lender maturing in March 2028). The 2024 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, which could increase the overall size of the 2024 credit facility to an aggregate principal amount of up to $6.4 billion. Interest on outstanding borrowings accrues at an applicable benchmark rate for the denominated currency of the loan, plus a spread. The 2024 credit facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at June 30, 2024. At June 30, 2024, the Company had no amount outstanding under the 2024 credit facility.

Commercial Paper Program. The Company can issue unsecured commercial paper notes (the “CP Notes”) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $4 billion. The commercial paper program is currently supported by the 2024 credit facility. At June 30, 2024, BlackRock had no CP Notes outstanding.

Subsidiary Credit Facility. In January 2024, BlackRock Investment Management (UK) Limited ("BIM UK"), a wholly owned subsidiary of the Company, entered into a revolving credit facility (the “Subsidiary Credit Facility”) in the amount of £25 million (or approximately $32 million based on the GBP/USD foreign exchange rate at June 30, 2024) with a rolling 364-day term structure. The Subsidiary Credit Facility is available for BIM UK's general corporate and working capital purposes. At June 30, 2024, there was no amount outstanding under the Subsidiary Credit Facility.

Long-Term Borrowings

March 2024 Notes. In March 2024, BlackRock Funding issued $3.0 billion in aggregate principal amount of senior unsecured and unsubordinated notes. These notes were issued as three separate series of senior debt securities including $500 million of 4.70% notes maturing on March 14, 2029 (the "2029 Notes"), $1.0 billion of 5.00% notes maturing on March 14, 2034 (the "2034 Notes") and $1.5 billion of 5.25% notes maturing on March 14, 2054 (the "2054 Notes") (collectively, the "March 2024 Notes"). Net proceeds are intended to be used to fund a portion of the cash consideration for the GIP Transaction, which is expected to close in third quarter of 2024. Interest on the March 2024 Notes of approximately $152 million per year is payable semi-annually on March 14 and September 14 of each year, beginning September 14, 2024. The March 2024 Notes are fully and unconditionally guaranteed (the “March 2024 Notes Guarantee”) on a senior unsecured basis by BlackRock. The March 2024 Notes and the March 2024 Notes Guarantee rank equally in right of payment with all of BlackRock Funding and BlackRock’s other unsubordinated indebtedness, respectively. The March 2024 Notes may be redeemed prior to maturity at any time in whole or in part at the option of BlackRock Funding at the redemption prices set forth in the applicable series of March 2024 Notes. In addition, if the GIP Transaction is not consummated, BlackRock Funding will be required to redeem all outstanding 2029 Notes and 2034 Notes (the “Special Mandatory Redemption”) at a Special Mandatory Redemption price equal to 101% of the aggregate principal amount of the applicable series of March 2024 Notes, plus accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption date. Upon completion of a Special Mandatory Redemption, either (a) BlackRock may assume the obligations of BlackRock Funding under the 2054 Notes or (b) BlackRock Funding may merge with and into BlackRock as a result of which transaction the separate legal existence of BlackRock Funding would cease, and, in either case, BlackRock Funding will be released under the indenture governing the 2054 Notes and BlackRock will be released from the March 2024 Notes Guarantees, but will instead become the primary (and sole) obligor under the 2054 Notes and the related indenture provisions. In the event of a Special Mandatory Redemption, the proceeds of the 2054 Notes will be used for general corporate purposes, which may include repayment of outstanding indebtedness.

The carrying value and fair value of long-term borrowings determined using market prices and EUR/USD foreign exchange rate at June 30, 2024 included the following:


(in millions)	Maturity Amount		Unamortized Discount and Debt Issuance Costs(1)			Carrying Value		Fair Value
1.25% Notes due 2025	$	750	$	-		$	750	$	735
3.20% Notes due 2027		700		(2	)		698		672
3.25% Notes due 2029		1,000		(7	)		993		931
4.70% Notes due 2029(2)		500		(4	)		496		497
2.40% Notes due 2030		1,000		(3	)		997		871
1.90% Notes due 2031		1,250		(7	)		1,243		1,033
2.10% Notes due 2032		1,000		(12	)		988		814
4.75% Notes due 2033		1,250		(18	)		1,232		1,224
5.00% Notes due 2034(2)		1,000		(8	)		992		989
5.25% Notes due 2054(2)		1,500		(32	)		1,468		1,449
Total long-term borrowings	$	9,950	$	(93	)	$	9,857	$	9,215

(1)

The unamortized discount and debt issuance costs are amortized over the term of the notes.

(2)

Issued by BlackRock Funding and guaranteed by BlackRock.

Long-term borrowings at December 31, 2023 had a carrying value of $7.9 billion and a fair value of $7.4 billion, determined using market prices at the end of December 31, 2023.

In March 2024, the Company fully repaid $1.0 billion of 3.50% Notes at maturity.

See Note 14, Borrowings, in the 2023 Form 10-K for more information regarding the Company’s borrowings.

14. Commitments and Contingencies

Investment Commitments. At June 30, 2024, the Company had $770 million of various capital commitments to fund sponsored investment products, including CIPs. These products include private equity funds, real assets funds and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the condensed consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients.

Contingencies

Legal Proceedings. From time to time, BlackRock receives subpoenas or other requests for information from various US federal and state governmental and regulatory authorities and international governmental and regulatory authorities in connection with industry-wide or other investigations or proceedings. It is BlackRock’s policy to cooperate fully with such matters. BlackRock has been responding to requests from the SEC in connection with a publicly reported, industry-wide investigation of investment advisers’ compliance with record retention requirements relating to certain types of electronic communications. BlackRock is cooperating with the SEC’s investigation.

The Company, certain of its subsidiaries and employees have been named as defendants in various legal actions, including arbitrations and other litigation arising in connection with BlackRock’s activities. Additionally, BlackRock-advised investment portfolios may be subject to lawsuits, any of which potentially could harm the investment returns of the applicable portfolio or result in the Company being liable to the portfolios for any resulting damages.

Management, after consultation with legal counsel, currently does not anticipate that the aggregate liability arising out of regulatory matters or lawsuits will have a material effect on BlackRock’s results of operations, financial position, or cash flows. However, there is no assurance as to whether any such pending or threatened matters will have a material effect on BlackRock’s results of operations, financial position or cash flows in any future reporting period. Due to uncertainties surrounding the outcome of these matters, management cannot reasonably estimate the possible loss or range of loss that may arise from these matters.

Indemnifications. In the ordinary course of business or in connection with certain acquisition agreements, BlackRock enters into contracts pursuant to which it may agree to indemnify third parties in certain circumstances. The terms of these indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined or the likelihood of any liability is considered remote. Consequently, no liability has been recorded on the condensed consolidated statements of financial condition.

In connection with securities lending transactions, BlackRock has agreed to indemnify certain securities lending clients against potential loss resulting from a borrower’s failure to fulfill its obligations under the securities lending agreement should the value of the collateral pledged by the borrower at the time of default be insufficient to cover the borrower’s obligation under the securities lending agreement. The amount of securities on loan as of June 30, 2024 and subject to this type of indemnification was approximately $274 billion. In the Company’s capacity as lending agent, cash and securities totaling approximately $293 billion were held as collateral for indemnified securities on loan at June 30, 2024. The fair value of these indemnifications was not material at June 30, 2024.

15. Revenue

The table below presents detail of revenue for the three and six months ended June 30, 2024 and 2023 and includes the product mix of investment advisory, administration fees and securities lending revenue, and performance fees.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Revenue
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	539	$	506	$	1,055	$	1,006
ETFs		1,250		1,102		2,440		2,180
Non-ETF index		190		197		377		374
Equity subtotal		1,979		1,805		3,872		3,560
Fixed income:
Active		481		482		965		950
ETFs		326		309		653		604
Non-ETF index		88		88		180		175
Fixed income subtotal		895		879		1,798		1,729
Multi-asset		313		300		627		596
Alternatives:
Illiquid alternatives		241		206		481		407
Liquid alternatives		141		146		279		291
Currency and commodities(1)		59		49		104		95
Alternatives subtotal		441		401		864		793
Long-term		3,628		3,385		7,161		6,678
Cash management		247		226		492		435
Total investment advisory, administration fees and securities lending revenue		3,875		3,611		7,653		7,113
Investment advisory performance fees:
Equity		28		15		36		21
Fixed income		5		—		9		1
Multi-asset		11		3		13		18
Alternatives:
Illiquid alternatives		68		79		193		100
Liquid alternatives		52		21		117		33
Alternatives subtotal		120		100		310		133
Total investment advisory performance fees		164		118		368		173
Technology services revenue		395		359		772		699
Distribution fees		318		319		628		638
Advisory and other revenue:
Advisory		11		31		24		45
Other		42		25		88		38
Total advisory and other revenue		53		56		112		83
Total revenue	$	4,805	$	4,463	$	9,533	$	8,706

(1)

Amounts include commodity ETFs.

The tables below present the investment advisory, administration fees and securities lending revenue by client type and investment style:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
By client type:
Retail	$	1,053	$	1,044	$	2,094	$	2,076
ETFs		1,635		1,460		3,202		2,878
Institutional:
Active		710		640		1,407		1,262
Index		230		241		458		462
Total institutional		940		881		1,865		1,724
Long-term		3,628		3,385		7,161		6,678
Cash management		247		226		492		435
Total	$	3,875	$	3,611	$	7,653	$	7,113

By investment style:
Active	$	1,706	$	1,635	$	3,387	$	3,241
Index and ETFs		1,922		1,750		3,774		3,437
Long-term		3,628		3,385		7,161		6,678
Cash management		247		226		492		435
Total	$	3,875	$	3,611	$	7,653	$	7,113

Investment Advisory and Administration Fees – Remaining Performance Obligation

The tables below present estimated investment advisory and administration fees expected to be recognized in the future related to the unsatisfied portion of the performance obligations at June 30, 2024 and 2023:

June 30, 2024


	Remainder of
(in millions)	2024		2025		2026		2027		Thereafter		Total
Investment advisory and administration fees:
Alternatives(1)(2)	$	100	$	182	$	163	$	124	$	50	$	619

June 30, 2023


	Remainder of
(in millions)	2023		2024		2025		2026		Thereafter		Total
Investment advisory and administration fees:
Alternatives(1)(2)	$	87	$	131	$	100	$	84	$	62	$	464

(1)

Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at June 30, 2024 and 2023. Actual management fees could be higher to the extent additional committed capital is raised. These fees are generally billed on a quarterly basis in arrears.

(2)

The Company elected the following practical expedients and therefore does not include amounts related to (a) performance obligations with an original duration of one year or less, and (b) variable consideration related to future service periods.

Change in Deferred Carried Interest Liability

The table below presents changes in the deferred carried interest liability, which is included in other liabilities on the condensed consolidated statements of financial condition, for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions)	2024			2023			2024			2023
Beginning balance	$	1,814		$	1,458		$	1,783		$	1,420
Net increase (decrease) in unrealized allocations		130			265			272			319
Performance fee revenue recognized		(58	)		(72	)		(169	)		(88	)
Ending balance	$	1,886		$	1,651		$	1,886		$	1,651

Technology Services Revenue – Remaining Performance Obligation

The tables below present estimated technology services revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligations at June 30, 2024 and 2023:

June 30, 2024


	Remainder of
(in millions)	2024		2025		2026		2027		Thereafter		Total
Technology services revenue(1)(2)	$	78	$	88	$	64	$	36	$	35	$	301

June 30, 2023


	Remainder of
(in millions)	2023		2024		2025		2026		Thereafter		Total
Technology services revenue(1)(2)	$	69	$	73	$	46	$	33	$	25	$	246

(1)

Technology services revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed.

(2)

In addition to amounts disclosed in the tables above, certain technology services contracts require fixed minimum fees, which are billed on a monthly or quarterly basis in arrears. The Company recognizes such revenue as services are performed. As of June 30, 2024, the estimated fixed minimum fees for the remainder of the year approximated $560 million. The term for these contracts, which are either in their initial or renewal period, ranges from one to five years.

The table below presents changes in the technology services deferred revenue liability for the three and six months ended June 30, 2024 and 2023, which is included in other liabilities on the condensed consolidated statements of financial condition:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions)	2024			2023			2024			2023
Beginning balance	$	130		$	120		$	133		$	125
Additions(1)		21			27			42			48
Revenue recognized that was included in the beginning balance		(31	)		(25	)		(55	)		(51	)
Ending balance	$	120		$	122		$	120		$	122

(1)

Amounts are net of revenue recognized.

16. Stock-Based Compensation

Prior to May 15, 2024, the Company maintained the BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan. On May 15, 2024, the Company adopted, pursuant to shareholder approval, the BlackRock, Inc. Third Amended and Restated 1999 Stock Award and Incentive Plan. Any awards granted on or after May 15, 2024 are granted pursuant to such plan.

Restricted Stock Units ("RSUs")

RSU activity for the six months ended June 30, 2024 is summarized below.


Outstanding at	RSUs			Weighted- Average Grant Date Fair Value
December 31, 2023		1,772,639		$	757.49
Granted		848,476		$	801.41
Converted		(720,401	)	$	758.94
Forfeited		(50,793	)	$	723.19
June 30, 2024		1,849,921		$	778.00

In January 2024, the Company granted as part of the 2023 annual incentive compensation approximately 347,000 RSUs to employees that vest ratably over three years from the grant date and approximately 344,000 RSUs to employees that cliff vest 100% on January 31, 2027. In addition, during the first quarter of 2024, in connection with the GIP Transaction, the Company granted incentive retention awards of approximately 106,000 RSUs to certain employees that vest between two to five years from the grant date. The Company values RSUs at their grant-date fair value as measured by BlackRock’s common stock price. The grant-date fair market value of RSUs granted to employees during the six months ended June 30, 2024 was $680 million.

At June 30, 2024, the intrinsic value of outstanding RSUs was $1.5 billion, reflecting a closing stock price of $787.32.

At June 30, 2024, total unrecognized stock-based compensation expense related to unvested RSUs was $766 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.7 years.

Performance-Based RSUs.

Performance-based RSU activity for the six months ended June 30, 2024 is summarized below.


Outstanding at	Performance- Based RSUs			Weighted- Average Grant Date Fair Value
December 31, 2023		456,384		$	767.69
Granted		165,631		$	798.83
Reduction of shares due to performance measures		(42,341	)	$	739.22
Converted		(115,631	)	$	739.22
June 30, 2024		464,043		$	788.49

In January 2024, the Company granted 165,631 performance-based RSUs to certain employees that cliff vest 100% on January 31, 2027. These awards are amortized over a service period of three years. The number of shares distributed at vesting could be higher or lower than the original grant based on the level of attainment of predetermined Company performance measures. In January 2024, the Company reduced the number of original shares granted in 2021 by 42,341 RSUs based on the level of attainment of Company performance measures during the performance period.

The Company values performance-based RSUs at their grant-date fair value as measured by BlackRock’s common stock price. The total grant-date fair market value of performance-based RSUs granted (including impact due to performance measures) to employees during the six months ended June 30, 2024 was $101 million.

At June 30, 2024, the intrinsic value of outstanding performance-based RSUs was $365 million, reflecting a closing stock price of $787.32.

At June 30, 2024, total unrecognized stock-based compensation expense related to unvested performance-based awards was $168 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.7 years.

Stock Options

Stock option activity and ending balance for the six months ended June 30, 2024 is summarized below.


	2017 Performance-based Options					2023 Performance-based Options					2023 Time-based Options
	Shares Under Option			Weighted Average Exercise Price		Shares Under Option			Weighted Average Exercise Price		Shares Under Option			Weighted Average Exercise Price
Outstanding at December 31, 2023		1,549,080		$	513.50		807,695		$	673.58		326,391		$	673.58
Exercised		(315,916	)	$	513.50		—		$	—		—		$	—
Forfeited		—		$	—		(40,725	)	$	673.58		(26,705	)	$	673.58
Outstanding at June 30, 2024		1,233,164		$	513.50		766,970		$	673.58		299,686		$	673.58


	Options Outstanding								Options Exercisable
Option Type	Exercise Prices		Options Outstanding		Weighted Average Remaining Life (years)		Aggregate Intrinsic Value (in millions)		Exercise Prices		Options Exercisable		Weighted Average Remaining Life (years)		Aggregate Intrinsic Value (in millions)
2017 Performance-based	$	513.50		1,233,164		2.4	$	338	$	513.50		684,258		2.4	$	187
2023 Performance-based	$	673.58		766,970		7.9		87	$	673.58		—		—		—
2023 Time-based	$	673.58		299,686		7.9		34	$	673.58		—		—		—
				2,299,820		5.0	$	459				684,258		2.4	$	187

At June 30, 2024, total unrecognized stock-based compensation expense related to unvested performance-based stock options was $131 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 2.9 years.

Performance-Based Stock Options

In 2017, the Company awarded performance-based stock option grants to certain employees ("2017 Performance-based Options"). Vesting of 2017 Performance-based Options was contingent upon the achievement of obtaining 125% of BlackRock's grant-date stock price within five years from the grant date and the attainment of Company performance measures during the four-year performance period. Both hurdles have been achieved, and the first two tranches of the awards vested at the end of 2022 and 2023, respectively, with the final equal installment vesting at the end of 2024. Vested 2017 Performance-based Options are exercisable for up to nine years following the grant date. The awards are generally forfeited if the employee leaves the Company before the respective vesting date. The expense for each tranche is amortized over the respective requisite service period. The aggregate intrinsic value of 2017 Performance-based Options exercised during the six months ended June 30, 2024 was $92 million.

On May 30, 2023, the Company awarded performance-based options to purchase 814,482 shares of BlackRock common stock to certain employees as long-term incentive compensation ("2023 Performance-based Options"). Vesting of 2023 Performance-based Options is contingent upon the achievement of obtaining 130% of grant-date stock price over 60 calendar days within four years from the grant date and attainment of Company performance measures during the three-year performance period. If both hurdles are achieved, the award will vest in three tranches of 25%, 25% and 50% in May of 2027, 2028 and 2029, respectively. Vested 2023 Performance-based Options are exercisable for up to nine years following the grant date, and the awards are forfeited if the employee resigns before the respective vesting date. The expense for each tranche is amortized over the respective requisite service period.

Time-Based Stock Options

On May 30, 2023, the Company awarded time-based stock options to purchase 326,391 shares of BlackRock common stock to certain employees as long-term incentive compensation ("2023 Time-based Options"). These awards will vest in three tranches of 25%, 25% and 50% in May 2027, 2028 and 2029, respectively. Vested 2023 Time-based Options can be exercised up to nine years following the grant date, and the awards are forfeited if the employee resigns before the respective vesting date.

See Note 17, Stock-Based Compensation, in the 2023 Form 10-K for more information on RSUs, performance-based RSUs and stock options.

17. Net Capital Requirements

The Company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions, which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions. As a result, such subsidiaries of the Company may be restricted in their ability to transfer cash between different jurisdictions and to their parents. Additionally, transfers of cash between international jurisdictions may have adverse tax consequences that could discourage such transfers.

At June 30, 2024, the Company was required to maintain approximately $1.9 billion in net capital in certain regulated subsidiaries, including BlackRock Institutional Trust Company, N.A. (a wholly owned subsidiary of the Company, which is chartered as a national bank whose powers are limited to trust and other fiduciary activities and which is subject to regulatory capital requirements administered by the US Office of the Comptroller of the Currency), entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the UK, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.

18. Accumulated Other Comprehensive Income (Loss)

The following table presents changes in AOCI for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions)	2024			2023			2024			2023
Beginning balance	$	(933	)	$	(975	)	$	(840	)	$	(1,101	)
Foreign currency translation adjustments(1)		(45	)		95			(138	)		221
Ending balance	$	(978	)	$	(880	)	$	(978	)	$	(880	)

(1)

19. Capital Stock

Share Repurchases. During the six months ended June 30, 2024, the Company repurchased 1.1 million common shares under the Company’s existing share repurchase program for approximately $875 million. At June 30, 2024, there were approximately 4.6 million shares still authorized to be repurchased under the program. The timing and actual number of shares repurchased will depend on a variety of factors, including legal limitations, price and market conditions.

20. Restructuring Charge

In the fourth quarter of 2023, a restructuring charge of $61 million ($46 million after-tax), comprised of $47 million of severance and $14 million of compensation expense for accelerated vesting of previously granted deferred compensation awards, was recorded in connection with initiatives to reorganize specific platforms, primarily Aladdin and illiquid alternative investments.

In the fourth quarter of 2022, a restructuring charge of $91 million ($69 million after-tax), comprised of $58 million of severance and $33 million of expense related to the accelerated amortization of previously granted stock-based compensation awards, was recorded in connection with an initiative to modify the size and shape of the workforce to align more closely with strategic priorities.

The table below presents a rollforward of the Company's restructuring liability for the three and six months ended June 30, 2024, and 2023 which is included in other liabilities on the condensed consolidated statements of financial condition.


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions)	2024			2023			2024			2023
Beginning liability	$	14		$	24		$	47		$	58
Cash payments		(12	)		(19	)		(45	)		(53	)
Ending liability	$	2		$	5		$	2		$	5

21. Income Taxes

Income tax expense for the six months ended June 30, 2024 included a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. In addition, for the six months ended June 30, 2024 income tax expense included $37 million of discrete tax benefits primarily related to stock-based compensation awards that vested in 2024.

Income tax expense for the six months ended June 30, 2023 included $40 million of discrete tax benefits primarily related to stock-based compensation awards that vested in the first quarter of 2023, offset by a $38 million discrete tax expense related to the resolution of certain outstanding tax matters.

22. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and six months ended June 30, 2024 and 2023 under the treasury stock method:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions, except shares and per share data)	2024		2023		2024		2023
Net income attributable to BlackRock, Inc.	$	1,495	$	1,366	$	3,068	$	2,523
Basic weighted-average shares outstanding		148,442,950		149,604,642		148,566,061		149,756,151
Dilutive effect of:
Nonparticipating RSUs		794,413		764,079		869,374		885,861
Stock options		420,526		370,492		456,100		401,751
Total diluted weighted-average shares outstanding		149,657,889		150,739,213		149,891,535		151,043,763
Basic earnings per share	$	10.07	$	9.13	$	20.65	$	16.85
Diluted earnings per share	$	9.99	$	9.06	$	20.47	$	16.70

For the three and six months ended June 30, 2024, 409,298 and 372,282 shares, primarily related to stock options, respectively, were excluded from the calculation of diluted EPS because to include them would have an anti-dilutive effect. For the three and six months ended June 30, 2023, 116,559 and 60,850 shares, primarily related to stock options, respectively, were excluded from the calculation of diluted EPS because to include them would have an anti-dilutive effect. Certain performance-based RSUs and options were excluded from diluted EPS calculation because the designated contingencies were not met for the three and six months ended June 30, 2024 and 2023, respectively.

23. Segment Information

The Company’s management directs BlackRock’s operations as one business, the asset management business. The Company utilizes a consolidated approach to assess performance and allocate resources. As such, the Company operates in one business segment.

The following table illustrates total revenue for the three and six months ended June 30, 2024 and 2023 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the customer resides, or affiliated services are provided.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Revenue
Americas	$	3,215	$	2,982	$	6,353	$	5,813
Europe		1,364		1,291		2,767		2,515
Asia-Pacific		226		190		413		378
Total revenue	$	4,805	$	4,463	$	9,533	$	8,706

See Note 15, Revenue, for further information on the Company’s sources of revenue.

The following table illustrates long-lived assets that consist of goodwill and property and equipment at June 30, 2024 and December 31, 2023 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located.


	June 30,		December 31,
(in millions)	2024		2023
Long-lived Assets
Americas	$	15,215	$	15,017
Europe		1,396		1,521
Asia-Pacific		94		98
Total long-lived assets	$	16,705	$	16,636

Americas is primarily comprised of the US, Latin America and Canada. Europe is primarily comprised of the UK, the Netherlands, Switzerland, France, Ireland and Luxembourg. Asia-Pacific is primarily comprised of Hong Kong, Australia, Japan and Singapore.

24. Subsequent Events

In January 2024, BlackRock announced that it had entered into a definitive agreement to acquire 100% of the business and assets of GIP, a leading independent infrastructure fund manager, for $3 billion in cash and approximately 12 million shares of BlackRock common stock. Approximately 30% of the total consideration, all in stock, will be deferred and will be issued subject to the satisfaction of certain post-closing events. The Company believes the combination of GIP with BlackRock’s complementary infrastructure offerings will create a broad global infrastructure franchise with differentiated origination and asset management capabilities. The GIP Transaction is expected to close around the end of the third quarter of 2024 subject to regulatory approvals and other customary closing conditions.

In June 2024, BlackRock announced that it had entered into a definitive agreement to acquire 100% of the business and assets of Preqin, a leading independent provider of private markets data, for £2.55 billion (or approximately $3.2 billion based on the GBP/USD foreign exchange rate at June 30, 2024) in cash (the "Preqin Transaction"). The Company believes bringing together Preqin's data and research tools with the complementary workflows of Aladdin and eFront in a unified platform will create a preeminent private markets technology and data provider. The Preqin Transaction is expected to close before year-end 2024, subject to regulatory approvals and other customary closing conditions.

In July 2024, BlackRock Funding issued $2.5 billion in aggregate principal amount of senior unsecured and unsubordinated notes. These notes were issued as three separate series of senior debt securities including $800 million of 4.60% notes maturing on July 26, 2027 (the "2027 Notes"), $500 million of 4.90% notes maturing on January 8, 2035 (the "2035 Notes") and $1.2 billion of 5.35% notes maturing on January 8, 2055 (the "2055 Notes") (collectively, the "July 2024 Notes"). Net proceeds are intended to be used to fund a portion of the cash consideration for the Preqin Transaction. Interest on the 2027 Notes of approximately $37 million per year is payable semi-annually on January 26 and July 26 of each year, beginning January 26, 2025. Interest on the 2035 Notes and 2055 Notes of approximately $25 million and $64 million per year, respectively, is payable semi-annually on January 8 and July 8 of each year, beginning January 8, 2025. The July 2024 Notes are fully and unconditionally guaranteed (the “July 2024 Notes Guarantee”) on a senior unsecured basis by BlackRock. The July 2024 Notes and the July 2024 Notes Guarantee rank equally in right of payment with all of BlackRock Funding and BlackRock’s other unsubordinated indebtedness, respectively. The July 2024 Notes may be redeemed prior to maturity at any time in whole or in part at the option of BlackRock Funding at the redemption prices set forth in the applicable series of July 2024 Notes. In addition, if the Preqin Transaction is not consummated, BlackRock Funding will be required to redeem all outstanding 2027 Notes (the “Special Mandatory Redemption”) at a Special Mandatory Redemption price equal to 101% of the aggregate principal amount of the 2027 Notes, plus accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption date.

The Company conducted a review for additional subsequent events and determined that no subsequent events had occurred that would require accrual or additional disclosures.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

This report, 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 and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. 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 reports. These risk factors and those identified elsewhere in this report, 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 AUM; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of future acquisitions or divestitures, including the acquisitions of Preqin ("Preqin" or the "Preqin Transaction") and Global Infrastructure Management, LLC ("GIP" or the "GIP Transaction" and together with the Preqin Transaction, the "Transactions"); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the Transactions, including the possibility that the Transactions do not close, the failure to satisfy the closing conditions, the possibility that expected synergies and value creation from either of the Transactions will not be realized, or will not be realized within the expected time period, and impacts to business and operational relationships related to disruptions from the Transactions; (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, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding environmental, social and governance matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock's business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of the Company; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to the Company; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded fund (“ETF”) platform; (28) 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 (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.

OVERVIEW

BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm with $10.6 trillion of AUM at June 30, 2024. With approximately 19,300 employees in more than 30 countries, BlackRock provides a broad range of investment management and technology services to institutional and retail clients in more than 100 countries across the globe.

BlackRock’s diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes enables the Company to offer choice and tailor investment and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares® and BlackRock ETFs, separate accounts, collective trust funds and other pooled investment vehicles. BlackRock also offers technology services, including the investment and risk management technology platform, Aladdin®, Aladdin WealthTM, eFront®, and Cachematrix®, as well as advisory services and solutions to a broad base of institutional and wealth management clients. The Company is highly regulated and manages its clients’ assets as a fiduciary. The Company does not engage in proprietary trading activities that could conflict with the interests of its clients.

BlackRock serves a diverse mix of institutional and retail clients across the globe. Clients include tax-exempt institutions, such as defined benefit and defined contribution pension plans, charities, foundations and endowments; official institutions, such as central banks, sovereign wealth funds, supranationals and other government entities; taxable institutions, including insurance companies, financial institutions, corporations and third-party fund sponsors, and retail intermediaries.

BlackRock maintains a significant global sales and marketing presence that is focused on establishing and maintaining retail and institutional investment management and technology service relationships by marketing its services to investors directly and through third-party distribution relationships, including financial professionals and pension consultants.

Certain prior period presentations were reclassified to ensure comparability with current period classifications.

Acquisitions

In May 2024, BlackRock completed the acquisition of the remaining equity interest in SpiderRock Advisors (“SRA”), a leading provider of customized option overlay strategies in the United States (“US”) wealth market (the "SpiderRock Transaction"). This transaction expands on BlackRock’s minority investment in SRA made in 2021 and reinforces BlackRock’s commitment to personalized separately managed accounts.

In June 2024, BlackRock announced that it had entered into a definitive agreement to acquire 100% of the business and assets of Preqin, a leading independent provider of private markets data, for £2.55 billion (or approximately $3.2 billion based on the GBP/USD foreign exchange rate at June 30, 2024) in cash. The Company believes bringing together Preqin's data and research tools with the complementary workflows of Aladdin and eFront in a unified platform will create a preeminent private markets technology and data provider. The Preqin Transaction is expected to close before year-end 2024, subject to regulatory approvals and other customary closing conditions.

EXECUTIVE SUMMARY


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions, except per share data)	2024			2023			2024			2023
GAAP basis(1):
Total revenue	$	4,805		$	4,463		$	9,533		$	8,706
Total expense		3,005			2,848			6,040			5,653
Operating income	$	1,800		$	1,615		$	3,493		$	3,053
Operating margin		37.5	%		36.2	%		36.6	%		35.1	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests		172			194			342			298
Income tax expense		477			443			767			828
Net income attributable to BlackRock	$	1,495		$	1,366		$	3,068		$	2,523
Diluted earnings per common share	$	9.99		$	9.06		$	20.47		$	16.70
Effective tax rate		24.2	%		24.5	%		20.0	%		24.7	%
As adjusted(2):
Operating income	$	1,881		$	1,675		$	3,656		$	3,186
Operating margin		44.1	%		42.5	%		43.1	%		41.5	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests	$	165		$	178		$	304		$	265
Net income attributable to BlackRock	$	1,550		$	1,399		$	3,023		$	2,599
Diluted earnings per common share	$	10.36		$	9.28		$	20.17		$	17.21
Effective tax rate		24.2	%		24.5	%		23.7	%		24.7	%
Other:
Assets under management (end of period)	$	10,645,721		$	9,425,212		$	10,645,721		$	9,425,212
Diluted weighted-average common shares outstanding		149.7			150.7			149.9			151.0
Shares outstanding (end of period)		148.2			149.4			148.2			149.4
Book value per share(3)	$	270.61		$	255.79		$	270.61		$	255.79
Cash dividends declared and paid per share	$	5.10		$	5.00		$	10.20		$	10.00

(1)

Accounting principles generally accepted in the US (“GAAP”).

(2)

As adjusted items are described in more detail in Non-GAAP Financial Measures.

(3)

Total BlackRock stockholders’ equity divided by total shares outstanding at June 30 of the respective period-end.

Three Months Ended June 30, 2024 Compared with Three Months Ended June 30, 2023

GAAP. Operating income of $1.8 billion increased $185 million and operating margin of 37.5% increased 130 bps from the three months ended June 30, 2023. Increases in operating income and operating margin reflected higher investment advisory and administration fees (collectively "base fees"), driven by positive organic base fee growth, the impact of higher markets on average AUM, and higher performance fees and technology services revenue, partially offset by higher expenses, reflecting higher employee compensation and benefits expense, general and administration expense, and higher sales, asset and account expense.

Nonoperating income (expense) less net income (loss) attributable to noncontrolling interests (“NCI”) decreased $22 million from the three months ended June 30, 2023, driven primarily by lower mark-to-market gains on the revaluation of private equity co-investments and higher interest expense, partially offset by higher interest and dividend income, mark-to-market revaluation of un-hedged seed capital investments, and higher mark-to-market gains on certain minority investments. In addition, amount for the three months ended June 30, 2024 included a $19 million pre-tax gain in connection with the SpiderRock Transaction.

Earnings per diluted common share increased $0.93, or 10%, from the three months ended June 30, 2023, primarily reflecting higher operating income in the current quarter.

As Adjusted. Operating income of $1.9 billion increased $206 million and operating margin of 44.1% increased 160 bps from the three months ended June 30, 2023. Earnings per diluted common share increased $1.08, or 12%, from the three months ended June 30, 2023, primarily reflecting higher operating income.

Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023

GAAP. Operating income of $3.5 billion increased $440 million and operating margin of 36.6% increased 150 bps from the six months ended June 30, 2023. Increases in operating income and operating margin reflected higher base fees, driven by organic base fee growth, the impact of higher markets on average AUM, and higher performance fees and technology services revenue, partially offset by higher expenses, reflecting higher employee compensation and benefits expense, sales, asset and account expense, and general and administration expense.

Nonoperating income (expense) less net income (loss) attributable to NCI increased $44 million from the six months ended June 30, 2023, driven primarily by higher interest and dividend income, mark-to-market revaluation of un-hedged seed capital investments, and higher mark-to-market gains on certain minority investments, partially offset by lower mark-to-market gains on the revaluation of private equity co-investments and higher interest expense.

Income tax expense for the six months ended June 30, 2024 included a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization.

Earnings per diluted common share increased $3.77 or 23%, from the six months ended June 30, 2023, primarily reflecting higher operating and nonoperating income and a lower effective tax rate.

As Adjusted. Operating income of $3.7 billion increased $470 million and operating margin of 43.1% increased 160 bps from the six months ended June 30, 2023. Earnings per diluted common share increased $2.96, or 17%, from the six months ended June 30, 2023, reflecting higher operating and nonoperating income and a lower effective tax rate. Income tax expense, as adjusted, for the six months ended June 30, 2024 excluded the $137 million of benefit described above.

See Non-GAAP Financial Measures for further information on as adjusted items and the reconciliation to GAAP.

For further discussion of BlackRock’s revenue, expense, nonoperating results and income tax expense, see Discussion of Financial Results herein.

NON-GAAP FINANCIAL MEASURES

BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. 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. Management reviews non-GAAP financial measures, in addition to 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 comparability for the reporting periods presented. Non-GAAP financial 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 financial measures may not be comparable to other similarly titled measures of other companies.

Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions)	2024			2023			2024			2023
Operating income, GAAP basis	$	1,800		$	1,615		$	3,493		$	3,053
Non-GAAP expense adjustments:
Compensation expense related to appreciation (depreciation) on deferred cash compensation plans (a)		9			12			36			32
Amortization of intangible assets (b)		39			37			77			74
Acquisition-related compensation costs (b)		19			4			21			9
Acquisition-related transaction costs (b)(1)		13			3			35			3
Contingent consideration fair value adjustments (b)		1			1			(6	)		1
Lease costs - New York (c)		—			3			—			14
Operating income, as adjusted	$	1,881		$	1,675		$	3,656		$	3,186
Revenue, GAAP basis	$	4,805		$	4,463		$	9,533		$	8,706
Non-GAAP adjustments:
Distribution fees		(318	)		(319	)		(628	)		(638	)
Investment advisory fees		(221	)		(199	)		(429	)		(385	)
Revenue used for operating margin measurement	$	4,266		$	3,945		$	8,476		$	7,683
Operating margin, GAAP basis		37.5	%		36.2	%		36.6	%		35.1	%
Operating margin, as adjusted		44.1	%		42.5	%		43.1	%		41.5	%

(1)

Amount included within general and administration expense.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Nonoperating income (expense), GAAP basis	$	214	$	251	$	434	$	367
Less: Net income (loss) attributable to NCI		42		57		92		69
Nonoperating income (expense), net of NCI		172		194		342		298
Less: Hedge gain (loss) on deferred cash compensation plans (a)		7		16		38		33
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted	$	165	$	178	$	304	$	265

(3) Net income attributable to BlackRock, Inc., as adjusted:


	Three Months Ended					Six Months Ended
	June 30,					June 30,
(in millions, except per share data)	2024		2023			2024			2023
Net income attributable to BlackRock, Inc., GAAP basis	$	1,495	$	1,366		$	3,068		$	2,523
Non-GAAP adjustments(1):
Net impact of hedged deferred cash compensation plans (a)		2		(3	)		(1	)		(1	)
Amortization of intangible assets (b)		29		28			57			56
Acquisition-related compensation costs (b)		13		3			15			7
Acquisition-related transaction costs (b)		10		2			25			2
Contingent consideration fair value adjustments (b)		1		1			(4	)		1
Lease costs - New York (c)		—		2			—			11
Income tax matters		—		—			(137	)		—
Net income attributable to BlackRock, Inc., as adjusted	$	1,550	$	1,399		$	3,023		$	2,599
Diluted weighted-average common shares outstanding		149.7		150.7			149.9			151.0
Diluted earnings per common share, GAAP basis	$	9.99	$	9.06		$	20.47		$	16.70
Diluted earnings per common share, as adjusted	$	10.36	$	9.28		$	20.17		$	17.21

(1)

Non-GAAP adjustments, excluding income tax matters, are net of tax.

(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, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric 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, includes the following non-GAAP expense adjustments:

(a)

Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.

(b)

Acquisition related costs. Acquisition related costs include adjustments related to amortization of intangible assets, other acquisition-related costs, including professional services expense and compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.

(c)

Lease costs – New York. In 2023, the Company continued to recognize lease expense within general and administration expense for both its current headquarters located at 50 Hudson Yards in New York and prior headquarters until the Company's lease on its prior headquarters expired in April 2023. The Company began lease payments related to its current headquarters in May 2023, but began recording lease expense in August 2021 when it obtained access to the building to begin its tenant improvements. Prior to the Company’s move to its current headquarters in February 2023, the impact of lease costs related to 50 Hudson Yards was excluded from operating income, as adjusted. In February 2023, the Company completed the majority of its move to 50 Hudson Yards and no longer excluded the impact of these lease costs. Subsequently, from February 2023 through April 2023, the Company excluded the impact of lease costs related to the Company's prior headquarters. Management believes excluding the impact of these respective New York lease costs (“Lease costs – New York”) when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.

•

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. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.

(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 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.

For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amounts for income tax matters in 2024 include a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization.

Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.

ASSETS UNDER MANAGEMENT

AUM for reporting purposes generally is based upon how investment advisory and administration fees are calculated for each portfolio. Net asset values, total assets, committed assets or other measures may be used to determine portfolio AUM.


AUM and Net Inflows (Outflows) by Client Type and Product Type
	AUM								Net inflows (outflows)
	June 30,		March 31,		December 31,		June 30,		Three Months Ended June 30,			Six Months Ended June 30,			Twelve Months Ended June 30,
(in millions)	2024		2024		2023		2023		2024			2024			2024
Retail	$	992,152	$	973,985	$	929,697	$	903,630	$	5,695		$	12,855		$	311
ETFs		3,855,774		3,745,642		3,499,299		3,215,932		83,141			150,382			266,624
Institutional:
Active		1,968,232		1,961,376		1,912,673		1,812,719		(2,059	)		12,626			18,806
Index		3,051,521		3,045,715		2,902,489		2,782,790		(35,411	)		(48,084	)		(107,902	)
Institutional subtotal		5,019,753		5,007,091		4,815,162		4,595,509		(37,470	)		(35,458	)		(89,096	)
Long-term		9,867,679		9,726,718		9,244,158		8,715,071		51,366			127,779			177,839
Cash management		778,042		745,782		764,837		710,141		30,199			10,975			59,130
Total	$	10,645,721	$	10,472,500	$	10,008,995	$	9,425,212	$	81,565		$	138,754		$	236,969

AUM and Net Inflows (Outflows) by Investment Style and Product Type
	AUM								Net inflows (outflows)
	June 30,		March 31,		December 31,		June 30,		Three Months Ended June 30,			Six Months Ended June 30,			Twelve Months Ended June 30,
(in millions)	2024		2024		2023		2023		2024			2024			2024
Active	$	2,703,506	$	2,691,933	$	2,621,178	$	2,516,396	$	(3,606	)	$	11,288		$	(2,214	)
Index and ETFs		7,164,173		7,034,785		6,622,980		6,198,675		54,972			116,491			180,053
Long-term		9,867,679		9,726,718		9,244,158		8,715,071		51,366			127,779			177,839
Cash management		778,042		745,782		764,837		710,141		30,199			10,975			59,130
Total	$	10,645,721	$	10,472,500	$	10,008,995	$	9,425,212	$	81,565		$	138,754		$	236,969

AUM and Net Inflows (Outflows) by Product Type
	AUM								Net inflows (outflows)
	June 30,		March 31,		December 31,		June 30,		Three Months Ended June 30,			Six Months Ended June 30,			Twelve Months Ended June 30,
(in millions)	2024		2024		2023		2023		2024			2024			2024
Equity	$	5,827,135	$	5,717,852	$	5,293,344	$	4,961,344	$	6,438		$	24,859		$	24,477
Fixed income		2,815,884		2,805,745		2,804,026		2,668,851		35,409			77,144			122,535
Multi-asset		921,412		906,597		870,804		811,927		4,460			9,557			21,303
Alternatives:
Illiquid alternatives		137,868		137,254		136,909		127,678		1,987			3,200			9,384
Liquid alternatives		75,483		75,365		74,233		78,056		(1,009	)		(2,923	)		(9,684	)
Currency and commodities(1)		89,897		83,905		64,842		67,215		4,081			15,942			9,824
Alternatives subtotal		303,248		296,524		275,984		272,949		5,059			16,219			9,524
Long-term		9,867,679		9,726,718		9,244,158		8,715,071		51,366			127,779			177,839
Cash management		778,042		745,782		764,837		710,141		30,199			10,975			59,130
Total	$	10,645,721	$	10,472,500	$	10,008,995	$	9,425,212	$	81,565		$	138,754		$	236,969

(1)

Amounts include commodity ETFs.

Component Changes in AUM for the Three Months Ended June 30, 2024

The following table presents the component changes in AUM by client type and product type for the three months ended June 30, 2024.


	March 31,		Net inflows					Market			FX			June 30,		Average
(in millions)	2024		(outflows)			Acquisition(1)		change			impact(2)			2024		AUM(3)
Retail:
Equity	$	471,438	$	6,089		$	4,074	$	9,206		$	(380	)	$	490,427	$	475,607
Fixed income		315,004		1,932			—		(669	)		(2,635	)		313,632		313,550
Multi-asset		146,182		(1,443	)		—		3,123			(143	)		147,719		145,525
Alternatives		41,361		(883	)		—		(68	)		(36	)		40,374		40,847
Retail subtotal		973,985		5,695			4,074		11,592			(3,194	)		992,152		975,529
ETFs:
Equity		2,752,776		44,453			—		37,009			(3,970	)		2,830,268		2,749,800
Fixed income		904,755		34,488			—		(7,060	)		(966	)		931,217		910,137
Multi-asset		9,043		86			—		107			(32	)		9,204		9,006
Alternatives		79,068		4,114			—		1,913			(10	)		85,085		82,768
ETFs subtotal		3,745,642		83,141			—		31,969			(4,978	)		3,855,774		3,751,711
Institutional:
Active:
Equity		203,042		382			—		5,349			(596	)		208,177		203,525
Fixed income		836,798		(10,133	)		—		(437	)		(2,512	)		823,716		831,926
Multi-asset		748,017		5,889			—		8,389			(1,101	)		761,194		746,394
Alternatives		173,519		1,803			—		(13	)		(164	)		175,145		173,709
Active subtotal		1,961,376		(2,059	)		—		13,288			(4,373	)		1,968,232		1,955,554
Index:
Equity		2,290,596		(44,486	)		—		63,173			(11,020	)		2,298,263		2,265,395
Fixed income		749,188		9,122			—		395			(11,386	)		747,319		740,968
Multi-asset		3,355		(72	)		—		32			(20	)		3,295		3,647
Alternatives		2,576		25			—		65			(22	)		2,644		2,677
Index subtotal		3,045,715		(35,411	)		—		63,665			(22,448	)		3,051,521		3,012,687
Institutional subtotal		5,007,091		(37,470	)		—		76,953			(26,821	)		5,019,753		4,968,241
Long-term		9,726,718		51,366			4,074		120,514			(34,993	)		9,867,679		9,695,481
Cash management		745,782		30,199			—		2,513			(452	)		778,042		762,370
Total	$	10,472,500	$	81,565		$	4,074	$	123,027		$	(35,445	)	$	10,645,721	$	10,457,851

(1)

Amounts include AUM attributable to the SpiderRock Transaction.

(2)

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

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

The following table presents the component changes in AUM by investment style and product type for the three months ended June 30, 2024.


	March 31,		Net inflows					Market			FX			June 30,		Average
(in millions)	2024		(outflows)			Acquisition(1)		change			impact(2)			2024		AUM(3)
Active:
Equity	$	455,665	$	(421	)	$	4,074	$	8,160		$	(960	)	$	466,518	$	456,842
Fixed income		1,127,206		(8,543	)		—		(948	)		(5,137	)		1,112,578		1,120,880
Multi-asset		894,186		4,440			—		11,515			(1,244	)		908,897		891,905
Alternatives		214,876		918			—		(81	)		(200	)		215,513		214,554
Active subtotal		2,691,933		(3,606	)		4,074		18,646			(7,541	)		2,703,506		2,684,181
Index and ETFs:
ETFs:
Equity		2,752,776		44,453			—		37,009			(3,970	)		2,830,268		2,749,800
Fixed income		904,755		34,488			—		(7,060	)		(966	)		931,217		910,137
Multi-asset		9,043		86			—		107			(32	)		9,204		9,006
Alternatives		79,068		4,114			—		1,913			(10	)		85,085		82,768
ETFs subtotal		3,745,642		83,141			—		31,969			(4,978	)		3,855,774		3,751,711
Non-ETF index:
Equity		2,509,411		(37,594	)		—		69,568			(11,036	)		2,530,349		2,487,685
Fixed income		773,784		9,464			—		237			(11,396	)		772,089		765,564
Multi-asset		3,368		(66	)		—		29