Toggle SGML Header (+)


Section 1: 8-K (FORM 8-K)

Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 19, 2017

 

 

BLACKROCK, INC.

(Exact name of registrant as specified in its charter)

 

 

 

DELAWARE   001-33099   32-0174431
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   Identification No.)
55 East 52nd Street, New York, New York   10055
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (212) 810-5300

 

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.  ☐

 

 

 


Item 2.02. Results of Operations and Financial Condition

On April 19, 2017, BlackRock, Inc. (the “Company”) reported results of operations for the three months ended March 31, 2017. A copy of the earnings release issued by the Company is attached as Exhibit 99.1. In addition, a copy of the Company’s Earnings Release Supplement for the quarter ended March 31, 2017 is being furnished as Exhibit 99.2 to this Form 8-K.

Item 9.01. Financial Statements and Exhibits

 

  (d) Exhibits

 

  99.1 Earnings release dated April 19, 2017 issued by the Company

 

  99.2 First Quarter 2017 Earnings – Earnings Release Supplement


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

BlackRock, Inc.

(Registrant)

Date: April 19, 2017     By:   /s/ Gary S. Shedlin
      Gary S. Shedlin
     

Senior Managing Director and

Chief Financial Officer


EXHIBIT INDEX

 

99.1 Earnings release dated April 19, 2017 issued by the Company

 

99.2 First Quarter 2017 Earnings – Earnings Release Supplement
(Back To Top)

Section 2: EX-99.1 (EARNINGS RELEASE DATED APRIL 19, 2017)

Earnings Release dated April 19, 2017

Exhibit 99.1

 

LOGO

 

Tom Wojcik, Investor Relations               Brian Beades, Media Relations
212.810.8127               212.810.5596

 

 

BlackRock Reports First Quarter 2017 Diluted EPS of $5.23, or $5.25 as adjusted

 

    $80 billion of long-term net inflows, positive across product type, client type and region, reflect strength of diversified business model

 

    8% increase in revenue year-over-year driven by growth in base fees, performance fees and technology and risk management revenue

 

    19% increase in operating income (10% as adjusted) year-over-year reflects operating margin expansion and benefits of scale for clients and shareholders

 

    33% increase in diluted EPS (24% as adjusted) year-over-year also includes the impact of a discrete tax benefit associated with new accounting guidance for share-based payments

 

    9% increase in quarterly cash dividend to $2.50 per share and $275 million of share repurchases

FINANCIAL RESULTS

 

(in millions, except per share data)

   Q1
2017
    Q1
2016
    Change     Q4
2016
    Change  

AUM

   $ 5,420,477     $ 4,737,165       14   $ 5,147,852       5

Total net flows

   $ 64,599     $ 27,829       $ 98,050    

GAAP basis:

          

Revenue

   $ 2,824     $ 2,624       8   $ 2,890       (2 )% 

Operating income

   $ 1,147     $ 963       19   $ 1,225       (6 )% 

Operating margin

     40.6     36.7     390  bps      42.4     (180 ) bps 

Net income(1)

   $ 862     $ 657       31   $ 851       1

Diluted EPS

   $ 5.23     $ 3.92       33   $ 5.13       2

Weighted average diluted shares

     164.9       167.4       (1 )%      165.9       (1 )% 

As adjusted:

          

Operating income(2)

   $ 1,151     $ 1,047       10   $ 1,232       (7 )% 

Operating margin(2)

     42.6     41.6     100  bps      44.4     (180 ) bps 

Net income(1) (2)

   $ 865     $ 711       22   $ 852       2

Diluted EPS(2)

   $ 5.25     $ 4.25       24   $ 5.14       2

 

(1)  Net income represents net income attributable to BlackRock, Inc.
(2)  See notes (1) through (3) to the Condensed Consolidated Statements of Income and Supplemental Information on pages 11 and 12 for more information on as adjusted items and the reconciliation to GAAP.

New York, April 19, 2017 — BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months ended March 31, 2017.

“BlackRock’s first quarter results reflect the strategic decisions we have made to complement our investment capabilities with industry-leading technology,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “Over the last 29 years, we’ve kept our focus on the long-term, anticipating changes in the asset management ecosystem and consistently investing in our business, to meet the evolving needs of our clients.

“Alpha generation, risk management and technology have always been the cornerstone of BlackRock. As the world becomes increasingly complex and interconnected, technology is becoming even more essential to clients, transforming the way both institutions and wealth managers construct portfolios, manage asset allocation, understand risk and engage and connect with clients. The recent repositioning of our active equity platform is yet another example of our commitment to anticipate and embrace change to deliver sustainable alpha for clients.

“First quarter long-term net inflows of $80 billion, representing annualized organic asset growth of 7%, were positive across product type, client type and region. Our commitment to investing for future growth and leveraging the benefits of scale for clients and shareholders also resulted in a 12% increase in Aladdin® revenue and 100 basis points of margin expansion year-over-year.

 

-1-


“Both retail and institutional investors continued to utilize BlackRock’s iShares® ETFs as the building blocks for their portfolios and in combinations to drive active returns. iShares saw record quarterly inflows of $64 billion, again capturing the #1 share of industry flows globally, in the United States and in Europe, and in equity and fixed income.

“BlackRock’s retail business returned to positive organic growth generating long-term net inflows of $5 billion, reflecting strong inflows across our top-performing unconstrained fixed income and multi-asset income offerings, as client discussions increasingly focus on outcome-based goals.

“Institutions across the globe continue to look to BlackRock for customized, innovative solutions to help them solve their most complex investment challenges. BlackRock saw institutional net inflows of $11 billion, led by multi-asset and liability-driven fixed income solutions.

“Building on record total net inflows of $202 billion in 2016, we began 2017 by repositioning our active equity platform and investing in our business for future growth. Going forward, we will continue to transform change into opportunity, using our advantaged market position to create better financial futures for clients and drive long-term growth for shareholders.”

RESULTS BY CLIENT TYPE    

 

                         March 31, 2017     Q1 2017  
     Q1 2017     March 31, 2017      Q1 2017      AUM     Base fees(1)  

(in millions), (unaudited)

   Net flows     AUM      Base fees(1)      % of Total     % of Total  

Retail

   $ 4,624     $ 564,333      $ 784        11     31

iShares ETFs

     64,481       1,413,335        925        26     37

Institutional:

            

Active

     (1,010     1,037,233        454        19     18

Index

     12,246       2,013,905        240        37     9
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total institutional

     11,236       3,051,138        694        56     27
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Long-term

     80,341       5,028,806        2,403        93     95

Cash management

     (15,705     388,935        127        7     5

Advisory

     (37     2,736        —          —         —    
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 64,599     $ 5,420,477      $ 2,530        100     100
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

RESULTS BY PRODUCT TYPE    

 

                         March 31, 2017     Q1 2017  
     Q1 2017     March 31, 2017      Q1 2017      AUM     Base fees(1)  

(in millions), (unaudited)

   Net flows     AUM      Base fees(1)      % of Total     % of Total  

Equity

   $ 44,057     $ 2,865,515      $ 1,284        53     51

Fixed income

     33,374       1,630,569        681        30     27

Multi-asset

     1,549       411,565        272        8     11

Alternatives

     1,361       121,157        166        2     6
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Long-term

     80,341       5,028,806        2,403        93     95

Cash management

     (15,705     388,935        127        7     5

Advisory

     (37     2,736        —          —         —    
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 64,599     $ 5,420,477      $ 2,530        100     100
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

RESULTS BY INVESTMENT STYLE    

 

                         March 31, 2017     Q1 2017  
     Q1 2017     March 31, 2017      Q1 2017      AUM     Base fees(1)  

(in millions), (unaudited)

   Net flows     AUM      Base fees(1)      % of Total     % of Total  

Active

   $ (1,844   $ 1,543,519      $ 1,224        29     48

Index and iShares ETFs

     82,185       3,485,287        1,179        64     47
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Long-term

     80,341       5,028,806        2,403        93     95

Cash management

     (15,705     388,935        127        7     5

Advisory

     (37     2,736        —          —         —    
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 64,599     $ 5,420,477      $ 2,530        100     100
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

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

 

-2-


BUSINESS HIGHLIGHTS

Long-term net inflows were positive across all major regions, with net inflows of $55.8 billion, $18.1 billion and $6.4 billion from clients in the Americas, EMEA and Asia-Pacific, respectively. At March 31, 2017, BlackRock managed 63% of its long-term AUM for investors in the Americas and 37% for clients in EMEA and Asia-Pacific.

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

 

    Retail long-term net inflows of $4.6 billion reflected net inflows of $5.0 billion internationally, partially offset by net outflows of $0.4 billion from the United States. Fixed income net inflows of $4.8 billion were paced by inflows into unconstrained and emerging market categories. Equity net inflows of $1.8 billion reflected inflows into index mutual funds. Multi-asset net outflows of $1.7 billion were largely due to outflows from world allocation strategies.

 

    iShares ETFs long-term net inflows of $64.5 billion were led by equity net inflows of $44.6 billion, with strength in iShares Core, precision exposure and financial instrument ETFs. Fixed income net inflows of $20.3 billion reflected inflows into investment grade corporate, emerging markets debt and treasury bond funds.

 

    Institutional active long-term net outflows of $1.0 billion reflected equity and fixed income net outflows of $4.7 billion and $1.3 billion, respectively, partially offset by inflows into multi-asset and alternatives. Multi-asset net inflows of $3.8 billion were driven by ongoing demand for the LifePath® target-date series. Alternatives net inflows of $1.2 billion were led by inflows into infrastructure offerings.

 

    Institutional index long-term net inflows of $12.2 billion included fixed income and equity net inflows of $9.5 billion and $2.4 billion, respectively.

Cash management AUM decreased 4% to $388.9 billion.

INVESTMENT PERFORMANCE AT MARCH 31, 2017 (1)

 

    One-year period     Three-year period     Five-year period  

Fixed income:

     

Actively managed AUM above benchmark or peer median

     

Taxable

    66     78     88

Tax-exempt

    62     57     70

Index AUM within or above applicable tolerance

    93     99     99

Equity:

     

Actively managed AUM above benchmark or peer median

     

Fundamental

    64     65     49

Scientific

    82     85     90

Index AUM within or above applicable tolerance

    95     97     97

 

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

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Wednesday, April 19, 2017 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (800) 374-0176, or from outside the United States, (706) 679-8281, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 82927991). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by 12:30 p.m. (Eastern Time) on Wednesday, April 19, 2017 and ending at midnight on Wednesday, May 3, 2017. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 82927991. To access the webcast, please visit the investor relations section of www.blackrock.com.

 

-3-


About BlackRock

BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At March 31, 2017, BlackRock’s AUM was $5.4 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of March 31, 2017, the firm had approximately 13,000 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at www.blackrock.com | Twitter: @blackrock_news | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock

 

-4-


CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

 

                              Three Months            
     Three Months Ended                  Ended            
     March 31,                  December 31,            
     2017     2016     Change            2016     Change      

Revenue

               

Investment advisory, administration fees and securities lending revenue

   $ 2,530     $ 2,359     $ 171        $ 2,486     $ 44    

Investment advisory performance fees

     70       34       36          129       (59  

Technology and risk management revenue(a)

     158       141       17          157       1    

Distribution fees

     7       11       (4        9       (2  

Advisory and other revenue(a)

     59       79       (20        109       (50  
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Total revenue

     2,824       2,624       200          2,890       (66  
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Expense

               

Employee compensation and benefits

     1,021       947       74          987       34    

Distribution and servicing costs

     117       97       20          109       8    

Amortization of deferred sales commissions

     5       10       (5        7       (2  

Direct fund expense

     208       188       20          183       25    

General and administration

     301       318       (17        355       (54  

Restructuring charge

     —         76       (76        —         —      

Amortization of intangible assets

     25       25       —            24       1    
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Total expense

     1,677       1,661       16          1,665       12    
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Operating income

     1,147       963       184          1,225       (78  

Nonoperating income (expense)

               

Net gain (loss) on investments

     51       (2     53          6       45    

Interest and dividend income

     7       5       2          7       —      

Interest expense

     (65     (51     (14        (51     (14  
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Total nonoperating income (expense)

     (7     (48     41          (38     31    
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Income before income taxes

     1,140       915       225          1,187       (47  

Income tax expense

     269       268       1          336       (67  
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Net income

     871       647       224          851       20    
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Less:

               

Net income (loss) attributable to noncontrolling interests

     9       (10     19          —         9    
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Net income attributable to BlackRock, Inc.

   $ 862     $ 657     $ 205        $ 851     $ 11    
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

Weighted-average common shares outstanding

               

Basic

     163,016,599       165,388,130       (2,371,531        163,441,552       (424,953  

Diluted

     164,856,183       167,398,938       (2,542,755        165,854,167       (997,984  

Earnings per share attributable to BlackRock, Inc. common stockholders (3)

               

Basic

   $ 5.29     $ 3.97     $ 1.32        $ 5.21     $ 0.08    

Diluted

   $ 5.23     $ 3.92     $ 1.31        $ 5.13     $ 0.10    

Cash dividends declared and paid per share

   $ 2.50     $ 2.29     $ 0.21        $ 2.29     $ 0.21    

Supplemental information:

                                         

AUM (end of period)

   $ 5,420,477     $ 4,737,165     $ 683,312        $ 5,147,852     $ 272,625    

Shares outstanding (end of period)

     162,868,647       165,174,069       (2,305,422        163,121,291       (252,644  

GAAP:

               

Operating margin

     40.6     36.7     390      
bps
 
     42.4     (180   bps

Effective tax rate

     23.8     29.0     (520     bps        28.3     (450   bps

As adjusted:

               

Operating income (1)

   $ 1,151     $ 1,047     $ 104        $ 1,232     $ (81  

Operating margin (1)

     42.6     41.6     100       bps        44.4     (180   bps

Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests

   $ (16   $ (38   $ 22        $ (38   $ 22    

Net income attributable to BlackRock, Inc. (2)

   $ 865     $ 711     $ 154        $ 852     $ 13    

Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2) (3)

   $ 5.25     $ 4.25     $ 1.00        $ 5.14     $ 0.11    

Effective tax rate

     23.8     29.6     (580     bps        28.6     (480   bps

See pages 11-12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

 

(a)  Beginning with the first quarter of 2017, Aladdin revenue previously reported within “BlackRock Solutions® and advisory” is currently presented within “Technology and risk management revenue” on the condensed consolidated statements of income. The remaining “BlackRock Solutions and advisory” revenue is currently reported as part of “Advisory and other revenue.” Under the historical presentation, BlackRock Solutions and advisory revenue would have totaled $182 million for the three months ended March 31, 2017. Prior period amounts reported for BlackRock Solutions and advisory of $171 million and $197 million for the three months ended March 31, 2016 and December 31, 2016, respectively, have been reclassified to conform to the current presentation. See page 8 for further information.

 

-5-


ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type

 

            Net                            
     December 31,      inflows     Market            March 31,         
     2016      (outflows)     change     FX impact (1)      2017      Average AUM (2)  

Retail:

               

Equity

   $ 196,221      $ 1,828     $ 9,259     $ 873      $ 208,181      $ 202,859  

Fixed income

     222,256        4,793       2,494       460        230,003        226,343  

Multi-asset

     107,997        (1,743     4,257       191        110,702        109,515  

Alternatives

     15,478        (254     162       61        15,447        15,433  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Retail subtotal

     541,952        4,624       16,172       1,585        564,333        554,150  

iShares ETFs:

               

Equity

     951,252        44,552       54,750       1,855        1,052,409        1,003,328  

Fixed income

     314,707        20,304       1,960       933        337,904        327,555  

Multi-asset

     3,149        (378     118       1        2,890        2,913  

Alternatives

     18,771        3       1,333       25        20,132        19,669  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

iShares ETFs subtotal

     1,287,879        64,481       58,161       2,814        1,413,335        1,353,465  

Institutional:

               

Active:

               

Equity

     120,699        (4,676     7,875       919        124,817        123,380  

Fixed income

     536,727        (1,246     5,103       3,198        543,782        543,732  

Multi-asset

     276,933        3,758       8,455       1,583        290,729        283,748  

Alternatives

     75,615        1,154       639       497        77,905        76,851  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Active subtotal

     1,009,974        (1,010     22,072       6,197        1,037,233        1,027,711  

Index:

               

Equity

     1,389,004        2,353       80,083       8,668        1,480,108        1,436,839  

Fixed income

     498,675        9,523       5,339       5,343        518,880        507,656  

Multi-asset

     6,928        (88     252       152        7,244        7,149  

Alternatives

     7,074        458       94       47        7,673        7,390  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Index subtotal

     1,901,681        12,246       85,768       14,210        2,013,905        1,959,034  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Institutional subtotal

     2,911,655        11,236       107,840       20,407        3,051,138        2,986,745  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Long-term

     4,741,486        80,341       182,173       24,806        5,028,806        4,894,360  

Cash management

     403,584        (15,705     219       837        388,935        397,621  

Advisory (3)

     2,782        (37     (29     20        2,736        2,762  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $ 5,147,852      $ 64,599     $ 182,363     $ 25,663      $ 5,420,477      $ 5,294,743  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 
Current Quarter Component Changes by Investment Style and Product Type (Long-term)     
     December 31,
2016
     Net
inflows
(outflows)
    Market
change
    FX impact (1)      March 31,
2017
     Average AUM (2)  

Active:

               

Equity

   $ 275,033      $ (6,820   $ 15,989     $ 1,514      $ 285,716      $ 281,691  

Fixed income

     749,996        2,061       7,405       3,558        763,020        760,128  

Multi-asset

     384,930        2,015       12,711       1,775        401,431        393,263  

Alternatives

     91,093        900       801       558        93,352        92,284  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Active subtotal

     1,501,052        (1,844     36,906       7,405        1,543,519        1,527,366  

Index and iShares ETFs:

               

iShares ETFs:

               

Equity

     951,252        44,552       54,750       1,855        1,052,409        1,003,328  

Fixed income

     314,707        20,304       1,960       933        337,904        327,555  

Multi-asset

     3,149        (378     118       1        2,890        2,913  

Alternatives

     18,771        3       1,333       25        20,132        19,669  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

iShares ETFs subtotal

     1,287,879        64,481       58,161       2,814        1,413,335        1,353,465  

Non-ETF Index:

               

Equity

     1,430,891        6,325       81,228       8,946        1,527,390        1,481,387  

Fixed income

     507,662        11,009       5,531       5,443        529,645        517,603  

Multi-asset

     6,928        (88     253       151        7,244        7,149  

Alternatives

     7,074        458       94       47        7,673        7,390  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Non-ETF Index subtotal

     1,952,555        17,704       87,106       14,587        2,071,952        2,013,529  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Index & iShares ETFs subtotal

     3,240,434        82,185       145,267       17,401        3,485,287        3,366,994  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Long-term

   $ 4,741,486      $ 80,341     $ 182,173     $ 24,806      $ 5,028,806      $ 4,894,360  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 
Current Quarter Component Changes by Product Type (Long-term)     
     December 31,
2016
     Net
inflows
(outflows)
    Market
change
    FX impact (1)      March 31,
2017
     Average AUM (2)  

Equity

   $ 2,657,176      $ 44,057     $ 151,967     $ 12,315      $ 2,865,515      $ 2,766,406  

Fixed income

     1,572,365        33,374       14,896       9,934        1,630,569        1,605,286  

Multi-asset

     395,007        1,549       13,082       1,927        411,565        403,325  

Alternatives:

               

Core

     88,630        1,003       810       471        90,914        89,865  

Currency and commodities(4)

     28,308        358       1,418       159        30,243        29,478  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Alternatives subtotal

     116,938        1,361       2,228       630        121,157        119,343  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Long-term

   $ 4,741,486      $ 80,341     $ 182,173     $ 24,806      $ 5,028,806      $ 4,894,360  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

(1) Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
(2) Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
(3) Advisory AUM represents long-term portfolio liquidation assignments.
(4) Amounts include commodity iShares ETFs.

 

-6-


ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type

 

     March 31,
2016
     Net
inflows
(outflows)
    Acquisition (1)      Market
change
    FX impact (2)     March 31,
2017
     Average AUM (3)  

Retail:

                 

Equity

   $ 193,436      $ (5,206   $ —        $ 25,425     $ (5,474   $ 208,181      $ 196,955  

Fixed income

     217,209        11,080       —          4,173       (2,459     230,003        225,373  

Multi-asset

     113,291        (9,476     —          7,848       (961     110,702        111,003  

Alternatives

     18,730        (2,739     —          (222     (322     15,447        16,565  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Retail subtotal

     542,666        (6,341     —          37,224       (9,216     564,333        549,896  

iShares ETFs:

                 

Equity

     818,104        124,153       —          116,759       (6,607     1,052,409        904,822  

Fixed income

     291,132        52,735       —          (1,058     (4,905     337,904        316,540  

Multi-asset

     2,166        562       —          166       (4     2,890        2,564  

Alternatives

     16,152        3,264       —          822       (106     20,132        20,026  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

iShares ETFs subtotal

     1,127,554        180,714       —          116,689       (11,622     1,413,335        1,243,952  

Institutional:

                 

Active:

                 

Equity

     118,833        (10,355     —          20,512       (4,173     124,817        121,823  

Fixed income

     544,244        (1,896     —          10,169       (8,735     543,782        548,196  

Multi-asset

     262,010        15,817       —          21,984       (9,082     290,729        274,205  

Alternatives

     75,104        2,543       —          1,801       (1,543     77,905        75,615  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Active subtotal

     1,000,191        6,109       —          54,466       (23,533     1,037,233        1,019,839  

Index:

                 

Equity

     1,277,802        4,567       —          221,463       (23,724     1,480,108        1,358,634  

Fixed income

     472,568        39,237       —          41,203       (34,128     518,880        493,488  

Multi-asset

     7,776        (562     —          178       (148     7,244        7,591  

Alternatives

     6,003        1,100       —          963       (393     7,673        6,985  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Index subtotal

     1,764,149        44,342       —          263,807       (58,393     2,013,905        1,866,698  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Institutional subtotal

     2,764,340        50,451       —          318,273       (81,926     3,051,138        2,886,537  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Long-term

     4,434,560        224,824       —          472,186       (102,764     5,028,806        4,680,385  

Cash management

     291,986        21,678       80,635        671       (6,035     388,935        381,639  

Advisory (4)

     10,619        (7,540     —          23       (366     2,736        7,974  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

   $ 4,737,165      $ 238,962     $ 80,635      $ 472,880     $ (109,165   $ 5,420,477      $ 5,069,998  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 
Year-over-Year Component Changes by Investment Style and Product Type (Long-term)       
     March 31,
2016
     Net
inflows
(outflows)
    Acquisition      Market
change
    FX impact (2)     March 31,
2017
     Average AUM (3)  

Active:

                 

Equity

   $ 276,281      $ (23,080   $ —        $ 39,869     $ (7,354   $ 285,716      $ 279,440  

Fixed income

     753,711        5,771       —          13,839       (10,301     763,020        764,867  

Multi-asset

     375,300        6,342       —          29,832       (10,043     401,431        385,208  

Alternatives

     93,836        (196     —          1,577       (1,865     93,352        92,180  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Active subtotal

     1,499,128        (11,163     —          85,117       (29,563     1,543,519        1,521,695  

Index and iShares ETFs:

                 

iShares ETFs:

                 

Equity

     818,104        124,153       —          116,759       (6,607     1,052,409        904,822  

Fixed income

     291,132        52,735       —          (1,058     (4,905     337,904        316,540  

Multi-asset

     2,166        562       —          166       (4     2,890        2,564  

Alternatives

     16,152        3,264       —          822       (106     20,132        20,026  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

iShares ETFs subtotal

     1,127,554        180,714       —          116,689       (11,622     1,413,335        1,243,952  

Non-ETF Index:

                 

Equity

     1,313,790        12,086       —          227,531       (26,017     1,527,390        1,397,972  

Fixed income

     480,310        42,650       —          41,706       (35,021     529,645        502,190  

Multi-asset

     7,777        (563     —          178       (148     7,244        7,591  

Alternatives

     6,001        1,100       —          965       (393     7,673        6,985  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-ETF Index subtotal

     1,807,878        55,273       —          270,380       (61,579     2,071,952        1,914,738  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Index & iShares ETFs subtotal

     2,935,432        235,987       —          387,069       (73,201     3,485,287        3,158,690  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Long-term

   $ 4,434,560      $ 224,824     $ —        $ 472,186     $ (102,764   $ 5,028,806      $ 4,680,385  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 
Year-over-Year Component Changes by Product Type (Long-term)       
     March 31,
2016
     Net
inflows
(outflows)
    Acquisition      Market
change
    FX impact (2)     March 31,
2017
     Average AUM (3)  

Equity

   $ 2,408,175      $ 113,159     $ —        $ 384,159     $ (39,978   $ 2,865,515      $ 2,582,234  

Fixed income

     1,525,153        101,156       —          54,487       (50,227     1,630,569        1,583,597  

Multi-asset

     385,243        6,341       —          30,176       (10,195     411,565        395,363  

Alternatives:

                 

Core

     91,639        (342     —          1,515       (1,898     90,914        89,842  

Currency and commodities(5)

     24,350        4,510       —          1,849       (466     30,243        29,349  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Alternatives subtotal

     115,989        4,168       —          3,364       (2,364     121,157        119,191  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Long-term

   $ 4,434,560      $ 224,824     $ —        $ 472,186     $ (102,764   $ 5,028,806      $ 4,680,385  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(1)  Amount represents AUM acquired in the BofA® Global Capital Management transaction in April 2016.
(2) Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
(3) Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
(4) Advisory AUM represents long-term portfolio liquidation assignments.
(5) Amounts include commodity iShares ETFs.

 

-7-


SUMMARY OF REVENUE

 

                         Three Months         
     Three Months Ended            Ended         
     March 31,            December 31,         

(in millions), (unaudited)

   2017      2016      Change     2016      Change  

Investment advisory, administration fees and securities lending revenue:

             

Equity:

             

Active

   $ 402      $ 386      $ 16     $ 390      $ 12  

iShares ETFs

     721        623        98       681        40  

Non-ETF Index

     161        164        (3     166        (5
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Equity subtotal

     1,284        1,173        111       1,237        47  

Fixed income:

             

Active

     411        396        15       421        (10

iShares ETFs

     185        152        33       184        1  

Non-ETF Index

     85        70        15       80        5  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Fixed income subtotal

     681        618        63       685        (4

Multi-asset

     272        284        (12     278        (6

Alternatives:

             

Core

     144        164        (20     146        (2

Currency and commodities

     22        17        5       22        —    
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Alternatives subtotal

     166        181        (15     168        (2
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Long-term

     2,403        2,256        147       2,368        35  

Cash management

     127        103        24       118        9  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total base fees

     2,530        2,359        171       2,486        44  

Investment advisory performance fees:

             

Equity

     15        11        4       35        (20

Fixed income

     10        5        5       4        6  

Multi-asset

     5        3        2       13        (8

Alternatives

     40        15        25       77        (37
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total performance fees

     70        34        36       129        (59

Technology and risk management revenue(1)

     158        141        17       157        1  

Distribution fees

     7        11        (4     9        (2

Advisory and other revenue:

             

Advisory(1)

     24        30        (6     40        (16

Other

     35        49        (14     69        (34
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Advisory and other revenue

     59        79        (20     109        (50
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total revenue

   $ 2,824      $ 2,624      $ 200     $ 2,890      $ (66
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

(1)  Beginning with the first quarter of 2017, Aladdin revenue previously reported within “BlackRock Solutions and advisory” is currently presented within “Technology and risk management revenue” on the condensed consolidated statements of income. The remaining “BlackRock Solutions and advisory” revenue is currently reported as part of “Advisory and other revenue.” Under the historical presentation, BlackRock Solutions and advisory revenue would have totaled $182 million for the three months ended March 31, 2017. Prior period amounts reported for BlackRock Solutions and advisory of $171 million and $197 million for the three months ended March 31, 2016 and December 31, 2016, respectively, have been reclassified to conform to the current presentation.

Highlights

 

    Investment advisory, administration fees and securities lending revenue increased $171 million from the first quarter of 2016 reflecting the impact of higher markets and organic growth on average AUM, and the effect of AUM acquired in the BofA Global Capital Management transaction, partially offset by the impact of foreign exchange movements and the effect of one less day in the current quarter. Securities lending revenue of $141 million in the current quarter compared with $148 million in the first quarter of 2016.

Investment advisory, administration fees and securities lending revenue increased $44 million from the fourth quarter of 2016, driven by higher average AUM, partially offset by the effect of two less days in the current quarter. Securities lending revenue of $141 million in the current quarter compared with $138 million in the fourth quarter of 2016.

 

    Performance fees increased $36 million from the first quarter of 2016, primarily reflecting higher revenue from alternative products.

Performance fees decreased $59 million from the fourth quarter of 2016, primarily due to seasonally higher revenue from funds with a performance measurement period that ended in the fourth quarter of 2016.

 

    Technology and risk management revenue increased $17 million from the first quarter of 2016 and $1 million from the fourth quarter of 2016 reflecting ongoing demand for Aladdin.

 

    Advisory and other revenue decreased $50 million from the fourth quarter of 2016 reflecting lower earnings from strategic minority investments, lower fees from advisory assignments and lower transition management service fees.

 

-8-


SUMMARY OF OPERATING EXPENSE

 

     Three
Months Ended
March 31,
          

Three

Months Ended

December 31,

        

(in millions), (unaudited)

   2017      2016      Change     2016      Change  

Operating expense

             

Employee compensation and benefits

   $ 1,021      $ 947      $ 74     $ 987      $ 34  

Distribution and servicing costs

     117        97        20       109        8  

Amortization of deferred sales commissions

     5        10        (5     7        (2

Direct fund expense

     208        188        20       183        25  

General and administration

     301        318        (17     355        (54

Restructuring charge

     —          76        (76     —          —    

Amortization of intangible assets

     25        25        —         24        1  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total operating expense

   $ 1,677      $ 1,661      $ 16     $ 1,665      $ 12  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Highlights

 

    Employee compensation and benefits expense increased $74 million from the first quarter of 2016, reflecting higher incentive compensation, primarily driven by higher performance fees and higher operating income, and approximately $20 million of severance and accelerated compensation expense associated with the repositioning of the active equity platform.

Employee compensation and benefits expense increased $34 million from the fourth quarter of 2016, reflecting the previously mentioned repositioning costs, higher seasonal employer payroll taxes, and an increase in stock-based compensation expense related to the effect of additional grants at the end of January 2017, partially offset by lower incentive compensation, driven primarily by lower performance fees and lower operating income.

 

    Direct fund expense increased $20 million from the first quarter of 2016 and $25 million from the fourth quarter of 2016, reflecting higher average AUM.

 

    General and administration expense decreased $17 million from the first quarter of 2016, reflecting lower discretionary marketing and promotional expense, and $54 million from the fourth quarter of 2016, reflecting lower marketing and promotional expense and the impact of foreign exchange remeasurement expense. General and administration expense in the first quarter of 2017 included $2 million of one-time costs related to the repositioning of the active equity platform.

INCOME TAX EXPENSE

 

     Three
Months Ended
March 31,
            Three
Months Ended
December 31,
        

(in millions), (unaudited)

   2017      2016      Change      2016      Change  

Income tax expense

   $ 269      $ 268      $ 1      $ 336      $ (67

Highlights

 

    First quarter 2017 income tax expense included an $81 million discrete tax benefit reflecting the adoption of new accounting guidance related to stock-based compensation awards that vested in the first quarter of 2017.

 

-9-


SUMMARY AND RECONCILIATION OF U.S. GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), AS ADJUSTED

 

     Three
Months Ended
March 31,
         

Three

Months Ended
December 31,

       

(in millions), (unaudited)

   2017     2016     Change     2016     Change  

Nonoperating income (expense), GAAP basis

   $ (7   $ (48   $ 41     $ (38   $ 31  

Less: Net income (loss) attributable to noncontrolling interests (“NCI”)

     9       (10     19       —         9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Nonoperating income (expense), as adjusted(1)(2)

   $ (16   $ (38   $ 22     $ (38   $ 22  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Three
Months Ended
March 31,
         

Three

Months Ended
December 31,

       

(in millions), (unaudited)

   2017     2016     Change     2016     Change  

Net gain (loss) on investments(1)(2)

          

Private equity

   $ 6     $ 2     $ 4     $ (5   $ 11  

Real assets

     1       2       (1     3       (2

Other alternatives(3)

     14       —         14       8       6  

Other investments(4)

     21       4       17       —         21  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net gain (loss) on investments(1)(2)

     42       8       34       6       36  

Interest and dividend income

     7       5       2       7       —    

Interest expense

     (65     (51     (14     (51     (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest expense

     (58     (46     (12     (44     (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Nonoperating income (expense), as adjusted(1)(2)

   $ (16   $ (38   $ 22     $ (38   $ 22  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Net of net income (loss) attributable to NCI.
(2) Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to results. For more information on other as adjusted items and the reconciliation to GAAP see notes (1) through (3) to the Condensed Consolidated Statements of Income and Supplemental Information on pages 11 and 12.
(3) Amounts primarily include net gains (losses) related to direct hedge fund strategies and hedge fund solutions.
(4) Amounts include net gains (losses) related to equity and fixed income investments, and BlackRock’s seed capital hedging program.

Highlights

 

    Net gain (loss) on investments increased from the first quarter of 2016 and the fourth quarter of 2016, primarily driven by higher marks.

 

    First quarter 2017 interest expense included a make-whole redemption premium of $14 million related to the current quarter’s refinancing of $700 million of 6.25% notes, which were called prior to their September 2017 maturity.

ECONOMIC TANGIBLE ASSETS

The Company presents economic tangible assets as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or noncontrolling interests that ultimately do not have an impact on stockholders’ equity or cash flows. In addition, goodwill and intangible assets are excluded from economic tangible assets.

Economic tangible assets include cash, receivables, seed and co-investments, regulatory investments and other assets.

 

     March 31,      December 31,  

(in billions), (unaudited)

   2017 (Est.)      2016  

Total balance sheet assets

   $ 231      $ 220  

Separate account assets and separate account collateral held under securities lending agreements

     (187      (177

Consolidated sponsored investment funds

     (1      (1

Goodwill and intangible assets, net

     (30      (30
  

 

 

    

 

 

 

Economic tangible assets

   $ 13      $ 12  
  

 

 

    

 

 

 

 

-10-


RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED

 

     Three Months Ended  
     March 31,     December 31,  

(in millions), (unaudited)

   2017     2016     2016  

Operating income, GAAP basis

   $ 1,147     $ 963     $ 1,225  

Non-GAAP expense adjustments:

      

Restructuring charge

     —         76       —    

PNC LTIP funding obligation

     4       8       7  
  

 

 

   

 

 

   

 

 

 

Operating income, as adjusted

   $ 1,151     $ 1,047     $ 1,232  
  

 

 

   

 

 

   

 

 

 

Revenue, GAAP basis

   $ 2,824     $ 2,624     $ 2,890  

Non-GAAP adjustments:

      

Distribution and servicing costs

     (117     (97     (109

Amortization of deferred sales commissions

     (5     (10     (7
  

 

 

   

 

 

   

 

 

 

Revenue used for operating margin measurement

   $ 2,702     $ 2,517     $ 2,774  
  

 

 

   

 

 

   

 

 

 

Operating margin, GAAP basis

     40.6     36.7     42.4
  

 

 

   

 

 

   

 

 

 

Operating margin, as adjusted

     42.6     41.6     44.4
  

 

 

   

 

 

   

 

 

 

See note (1) to the Condensed Consolidated Statements of Income and Supplemental Information on page 12 for more information on as adjusted items and the reconciliation to GAAP.

RECONCILIATION OF U.S. GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED

 

     Three Months Ended  
     March 31,      December 31,  

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

   2017      2016      2016  

Net income attributable to BlackRock, Inc., GAAP basis

   $ 862      $ 657      $ 851  

Non-GAAP adjustments:

        

Restructuring charge (including $23 tax benefit)

     —          53        —    

PNC LTIP funding obligation, net of tax

     3        5        5  

Income tax matters

     —          (4      (4
  

 

 

    

 

 

    

 

 

 

Net income attributable to BlackRock, Inc., as adjusted

   $ 865      $ 711      $ 852  
  

 

 

    

 

 

    

 

 

 

Diluted weighted-average common shares outstanding(3)

     164.9        167.4        165.9  

Diluted earnings per common share, GAAP basis(3)

   $ 5.23      $ 3.92      $ 5.13  

Diluted earnings per common share, as adjusted(3)

   $ 5.25      $ 4.25      $ 5.14  

See notes (2) and (3) to the Condensed Consolidated Statements of Income and Supplemental Information on page 12 for more information on as adjusted items and the reconciliation to GAAP.

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)

BlackRock reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”); however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance the comparability of this information for the reporting periods presented. Non-GAAP measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Management uses both GAAP and non-GAAP financial measures in evaluating BlackRock’s financial performance. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

 

-11-


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

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time and, therefore, provide useful disclosure to investors.

 

    Operating income, as adjusted, includes non-GAAP expense adjustments. The portion of compensation expense associated with certain long-term incentive plans (“LTIP”) funded, or to be funded, through share distributions to participants of BlackRock stock held by The PNC Financial Services Group, Inc. (“PNC”) has been excluded because it ultimately does not impact BlackRock’s book value. For the three months ended March 31, 2016, a restructuring charge comprised of severance and accelerated amortization expense of previously granted deferred compensation awards has been excluded to provide more meaningful analysis of BlackRock’s ongoing operations and to ensure comparability among periods presented.

 

    Revenue used for operating margin, as adjusted, excludes distribution and servicing costs paid to related parties and other third parties. Management believes such costs represent a benchmark for the amount of revenue passed through to external parties who distribute the Company’s products. In addition, management believes the exclusion of such costs is useful because it creates consistency in the treatment for certain contracts for similar services, which due to the terms of the contracts, are accounted for under GAAP on a net basis within investment advisory, administration fees and securities lending revenue. Amortization of deferred sales commissions is excluded from revenue used for operating margin measurement, as adjusted, because such costs, over time, substantially offset distribution fee revenue the Company earns. For each of these items, BlackRock excludes from revenue used for operating margin, as adjusted, the costs related to each of these items as a proxy for such offsetting revenue.

(2) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for significant nonrecurring items, charges that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

See aforementioned discussion regarding operating income, as adjusted, and operating margin, as adjusted, for information on the PNC LTIP funding obligation and the restructuring charge.

For each period presented, the non-GAAP adjustment related to the restructuring charge and PNC LTIP funding obligation was tax effected at the respective blended rates applicable to the adjustments. Amounts for income tax matters represent net noncash (benefits) expense primarily associated with the revaluation of certain deferred tax liabilities related to intangible assets and goodwill. Amounts have been excluded from the as adjusted results as these items will not have a cash flow impact and to ensure comparability among periods presented.

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

(3) Nonvoting participating preferred stock is considered to be a common stock equivalent for purposes of determining basic and diluted earnings per share calculations.

 

-12-


Forward-looking Statements

This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to risk factors previously disclosed in BlackRock’s Securities and Exchange Commission (“SEC”) reports and those identified elsewhere in this earnings release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) the impact of increased competition; (5) the impact of future acquisitions or divestitures; (6) the unfavorable resolution of legal proceedings; (7) the extent and timing of any share repurchases; (8) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (9) the potential for human error in connection with BlackRock’s operational systems; (10) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (11) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (12) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (13) the ability to attract and retain highly talented professionals; (14) fluctuations in the carrying value of BlackRock’s economic investments; (15) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products or transactions, which could affect the value proposition to clients and, generally, the tax position of the Company; (16) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (17) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (18) any disruption to the operations of third parties whose functions are integral to BlackRock’s ETF platform; (19) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (20) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.

Performance Notes

Past performance is not indicative of future results. Except as specified, the performance information shown is as of March 31, 2017 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including U.S. registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of February 28, 2017. The performance data does not include accounts terminated prior to March 31, 2017 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares funds globally using an index strategy. AUM information is based on AUM available as of March 31, 2017 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

 

-13-

(Back To Top)

Section 3: EX-99.2 (FIRST QUARTER 2017 EARNINGS - EARNINGS RELEASE SUPPLEMENT)

First Quarter 2017 Earnings - Earnings Release Supplement
Q1 2017 Earnings
Earnings Release Supplement
April 19, 2017
Exhibit 99.2


7%
5%
7%
5%
2%
6%
8%
11%
26%
37%
26%
37%
7%
7%
30%
27%
11%
32%
38%
10%
29%
28%
53%
51%
63%
31%
29%
48%
64%
65%
AUM
Base Fees
AUM
Base Fees
AUM
Base Fees
AUM
Base Fees
Product Type
Client Type
Style
Region
Equity
Fixed
Income
Fixed
Income
Multi-asset
Alternatives
Equity
Multi-asset
Alternatives
Institutional
Institutional
Retail
Retail
iShares
ETFs
iShares
ETFs
Active
Active
iShares
ETFs
iShares
ETFs
Index
Index
Americas
Americas
EMEA
EMEA
Asia-Pacific
Asia-Pacific
Cash
Cash
Cash
Cash
A broadly diversified business across clients, products and geographies
Q1 2017 Total Base Fees of $2.530 billion
Assets Under Management of $5.420 trillion at March 31, 2017
Note: Base Fees and AUM by region data is based on client domicile.
1


1%
4%
5%
$70
$(7)
$35
$54
$36
$2
$55
$88
$80
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
5%
4%
4%
4%
3%
Long-term net flows ($ in billions)
Total Long-Term
Retail
iShares ETFs
Institutional
$14
$11
$7
$7
$0
$(6)
$(2)
$(2)
$5
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
$35
$11
$23
$60
$24
$16
$51
$49
$64
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
$21
$(29)
$5
$(13)
$12
$(8)
$6
$41
$11
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
LTM organic asset growth rate (%)
LTM organic base fee growth rate (%)
3%
Note: LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets.
3%
7%
6%
6%
6%
4%
2%
3%
2%
2
11%
10%
10%
7%
1%
4%
0%
(2)%
(1)%
14%
11%
12%
13%
11%
11%
15%
13%
16%
2%
1%
1%
(1)%
0%
(1)%
0%
2%
2%


Profitability ($ in millions, except per share data)
Net Income and EPS, as adjusted
Operating Income and Margin, as adjusted
For further information and reconciliations between GAAP and as adjusted, see page 9 of this earnings release supplement, notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks,
10-Qs and 8-Ks.
Operating Income, as adjusted
Operating Margin, as adjusted
Net Income, as adjusted
EPS, as adjusted
$1,077
$1,248
$1,227
$1,143
$1,047
$1,179
$1,216
$1,232
$1,151
41.2%
44.9%
43.9%
41.6%
41.6%
43.9%
44.8%
44.4%
42.6%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
3
$830
$838
$844
$801
$711
$797
$854
$852
$865
$4.89
$4.96
$5.00
$4.75
$4.25
$4.78
$5.14
$5.14
$5.25
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017


Capital management (amounts in millions, except per share data)
Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions.
GAAP Dividend Payout Ratio = Dividends declared / GAAP net income.
Total GAAP Payout Ratio = (Dividends declared + share repurchases) / GAAP net income.
Dividends and Payout Ratios
4
(1)
GAAP Dividend Payout Ratio and Total GAAP Payout Ratio include the pre-tax restructuring charge of $76
million.
$2.18
$2.18
$2.18
$2.18
$2.29
$2.29
$2.29
$2.29
$2.50
47%
44%
43%
42%
64%
48%
43%
44%
52%
81%
78%
76%
74%
109%
83%
74%
76%
84%
-30%
-10%
10%
30%
50%
70%
90%
110%
130%
150%
$6.00
$6.50
$7.00
$7.50
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Dividends
GAAP Dividend Payout Ratio
Total GAAP Payout Ratio
(1)
(1)
Share repurchases and weighted average diluted shares
$275
$275
$275
$275
$300
$275
$275
$275
$275
165.9
166.3
166.6
167.4
168.6
168.7
169.1
169.7
Q1
2017
Q4
2016
Q3
2016
Q2
2016
Q1
2016
Q4
2015
Q3
2015
Q2
2015
Q1
2015
Share Repurchases
Weighted average diluted shares
164.9


Major market indices and exchange rates
5
Source: Bloomberg
(1) Revenue weighted composite index calculated by BlackRock to approximate the impact of market fluctuations on BlackRock’s equity base fees . The index is derived from publicly available market indices that
represent applicable AUM benchmarks for each equity portfolio, as selected by BlackRock. The market impact information for each equity portfolio used to calculate the index may be substantially different from that
shown. Index does not include portfolios that do not have an applicable market index. Index does not reflect BlackRock’s investment performance, and is not indicative of past or future results.
3/31/2016
12/31/2016
3/31/2017
12/31/2016
3/31/2016
Q1 2016
Q4 2016
Q1 2017
Q4 2016
Q1 2016
Equity Indices:
    Domestic
S&P 500
      2,060
        2,239
      2,363
6%
15%
1,952
2,186
      2,324
6%
19%
    Global
MSCI Barra World Index
      1,648
        1,751
      1,854
6%
13%
1,569
1,718
      1,819
6%
16%
MSCI Europe Index
         114
           123
         129
5%
13%
113
117
         125
7%
11%
MSCI AC Asia Pacific Index
         129
           135
         147
9%
14%
123
137
         143
4%
16%
MSCI Emerging Markets Index
         837
           862
         958
11%
14%
757
877
         927
6%
22%
S&P Global Natural Resources
      2,592
        3,123
      3,210
3%
24%
2,342
3,010
      3,233
7%
38%
BLK Equity Index
(1)
7%
13%
6%
16%
Fixed Income Index:
Barclays U.S. Aggregate Bond Index
      1,984
        1,976
      1,993
1%
-%
1,956
1,994
      1,982
(1)%
1%
Foreign Exchange Rates:
GBP to USD
        1.44
          1.23
        1.26
2%
(13)%
1.43
1.24
        1.24
-%
(13)%
EUR to USD
        1.14
          1.05
        1.07
2%
(6)%
      1.10
1.08
        1.07
(1)%
(3)%
Average
% Change
Q1 2017 vs.
Spot
% Change
3/31/2017 vs.


Quarterly revenue
Q1 2017 Compared to Q1 2016
$200 million
Total Revenue
Q1 2017 Compared to Q4 2016
$(66) million
Percentage Change
Year-over-Year
Sequential
Base Fees ex. SL
8%
2%
Securities lending
(5)%
2%
Performance fees
106%
(46)%
Technology
and risk
management revenue
12%
1%
Distribution fees
(36)%
(22)%
Advisory and other revenue
(25)%
(46)%
Total
8%
(2)%
Q1 2017
$2,824 million
6
85%
5%
2%
6%
2%
Base Fees ex. securities lending
Securities lending
Performance fees
Technology and risk management revenue
Advisory and other revenue
$2,624
$2,824
$178
$36
$17
$(4)
$(7)
$(20)
Q1 2016
Base fees ex
sec lending
Performance
fees
Technology
and risk
management
revenue
Distribution fees
Securities
lending
Advisory and
other revenue
Q1 2017
$2,890
$2,824
$41
$3
$1
$(2)
$(50)
$(59)
Q4 2016
Base fees ex
sec lending
Securities
lending
Technology
and risk
management
revenue
Distribution
fees
Advisory and
other revenue
Performance
fees
Q1 2017


Quarterly investment advisory, administration fees and securities lending
revenue
Q1 2017 Compared to Q1 2016
Investment advisory, administration fees and securities lending revenue
$171 million
Q1 2017 Compared to Q4 2016
$44 million
Q1 2017: $2,530 million
Q1 2016 $2,359 million
Q4 2016: $2,486 million
7
16%
27%
7%
17%
7%
3%
11%
7%
5%
16%
29%
6%
16%
7%
3%
11%
7%
5%
17%
26%
7%
17%
6%
3%
12%
8%
4%
Active Equity
iShares
ETFs Equity
Non-
ETF Index Equity
Active Fixed Income
iShares ETFs Fixed Income
Non-ETF Index Fixed Income
Multi-Asset
Alternatives
Cash
$2,359
$2,530
$98
$33
$24
$16
$15
$15
$(3)
$(12)
$(15)
Q1 2016
iShares
ETFs
EQ
iShares
ETFs
FI
Cash
Active
EQ
Active
FI
Non-ETF
FI
Non-ETF
EQ
Multi-
Asset
Alts
Q1 2017
$2,486
$2,530
$40
$12
$9
$5
$1
$(2)
$(5)
$(6)
$(10)
Q4 2016
iShares
ETFs
EQ
Active
EQ
Cash
Non-ETF
FI
iShares
ETFs
FI
Alts
Non-ETF
EQ
Multi-
Asset
Active
FI
Q1 2017


Quarterly expense
Expense, as adjusted, by category
Q1 2017 Compared to Q1 2016, as adjusted
Expense,
as
adjusted,
includes
non-GAAP
adjustments
related
to
PNC
LTIP
funding
obligation
of
$4
million
in
the
first
quarter
of
2017,
$8
million
in
first
quarter
of
2016
and
$7
million
in
the
fourth
quarter
of
2016.
Expense,
as
adjusted,
also
includes
a
non-GAAP
adjustment
for
a
restructuring
charge
of
$76
million
in
the
first
quarter
of
2016.
For
further
information,
see
notes
(1)
through
(3)
in
the
current
earnings
release.
$96 million
Q1 2017 Compared to Q4 2016, as adjusted
$15 million
Percentage Change
Year-over-Year
Sequential
Employee comp. & benefits
8%
4%
Distribution & servicing costs
21%
7%
Amort. of deferred sales commissions
(50)%
(29)%
Direct fund expense
11%
14%
General & administration
(5)%
(15)%
Amortization of intangibles
-%
4%
Total
6%
1%
Q1 2017
$1,673 million
8
61%
7%
12%
18%
2%
Employee comp. & benefits
Distribution & servicing costs
Direct fund expense
General & administration
Amortization of intangibles
$1,577
$1,673
$20
$20
$78
$(17)
$(5)
Q1 2016
G&A
Amort -
def
sales comm
Direct
fund
Distribution &
servicing
Comp &
benefits
Q1 2017
$1,658
$1,673
$1
$8
$25
$37
$(54)
$(2)
Q4 2016
G&A
Amort -
def
sales comm
Amort -
intang
assets
Distribution
& servicing
Direct
fund
Comp &
benefits
Q1 2017


Reconciliation between GAAP and as adjusted ($ in millions)
Non-GAAP
adjustments
include
amounts
related
to
a
restructuring
charge,
PNC
LTIP
funding
obligation,
compensation
related
to
appreciation
(depreciation)
on
certain
deferred
compensation
plans
and
noncash
income
tax
matters,
as
applicable.
For further information and reconciliation between GAAP and as adjusted, see notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.
9
2017
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Operating Income
GAAP
1,067
$      
1,238
$      
1,222
$      
1,137
$      
963
$         
1,173
$      
1,209
$      
1,225
$      
1,147
$      
Non-GAAP adjustments
10
              
10
              
5
                 
6
                 
84
              
6
                 
7
                 
7
                 
4
                 
As Adjusted
1,077
$      
1,248
$      
1,227
$      
1,143
$      
1,047
$      
1,179
$      
1,216
$      
1,232
$      
1,151
$      
Nonoperating Income (Expense)
GAAP
16
$            
(41)
$           
(48)
$           
11
$            
(48)
$          
(25)
$           
1
$              
(38)
$           
(7)
$             
Non-GAAP adjustments
(5)
               
(9)
               
16
              
(10)
             
10
              
(6)
               
(2)
               
-
(9)
               
As Adjusted
11
$            
(50)
$           
(32)
$           
1
$              
(38)
$          
(31)
$           
(1)
$             
(38)
$           
(16)
$           
Net Income
GAAP
822
$          
819
$          
843
$          
861
$          
657
$         
789
$          
875
$          
851
$          
862
$          
Non-GAAP adjustments
8
                 
19
              
1
                 
(60)
             
54
              
8
                 
(21)
             
1
                 
3
                 
As Adjusted
830
$          
838
$          
844
$          
801
$          
711
$         
797
$          
854
$          
852
$          
865
$          
2015
2016


Important Notes
This
presentation,
and
other
statements
that
BlackRock
may
make,
may
contain
forward-looking
statements
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act,
with
respect
to
BlackRock’s
future
financial
or
business
performance,
strategies
or
expectations.
Forward-looking
statements
are
typically
identified
by
words
or
phrases
such
as
“trend,”
“potential,”
“opportunity,”
“pipeline,”
“believe,”
“comfortable,”
“expect,”
“anticipate,”
“current,”
“intention,”
“estimate,”
“position,”
“assume,”
“outlook,”
“continue,”
“remain,”
“maintain,”
“sustain,”
“seek,”
“achieve,”
and
similar
expressions,
or
future
or
conditional
verbs
such
as
“will,”
“would,”
“should,”
“could,”
“may”
and
similar
expressions.
BlackRock
cautions
that
forward-looking
statements
are
subject
to
numerous
assumptions,
risks
and
uncertainties,
which
change
over
time.
Forward-
looking
statements
speak
only
as
of
the
date
they
are
made,
and
BlackRock
assumes
no
duty
to
and
does
not
undertake
to
update
forward-looking
statements.
Actual
results
could
differ
materially
from
those
anticipated
in
forward-looking
statements
and
future
results
could
differ
materially
from
historical
performance.
In
addition
to
risk
factors
previously
disclosed
in
BlackRock’s
Securities
and
Exchange
Commission
(“SEC”)
reports
and
those
identified
elsewhere
in
this
earnings
release,
the
following
factors,
among
others,
could
cause
actual
results
to
differ
materially
from
forward-looking
statements
or
historical
performance:
(1)
the
introduction,
withdrawal,
success
and
timing
of
business
initiatives
and
strategies;
(2)
changes
and
volatility
in
political,
economic
or
industry
conditions,
the
interest
rate
environment,
foreign
exchange
rates
or
financial
and
capital
markets,
which
could
result
in
changes
in
demand
for
products
or
services
or
in
the
value
of
assets
under
management;
(3)
the
relative
and
absolute
investment
performance
of
BlackRock’s
investment
products;
(4)
the
impact
of
increased
competition;
(5)
the
impact
of
future
acquisitions
or
divestitures;
(6)
the
unfavorable
resolution
of
legal
proceedings;
(7)
the
extent
and
timing
of
any
share
repurchases;
(8)
the
impact,
extent
and
timing
of
technological
changes
and
the
adequacy
of
intellectual
property,
information
and
cyber
security
protection;
(9)
the
potential
for
human
error
in
connection
with
BlackRock’s
operational
systems;
(10)
the
impact
of
legislative
and
regulatory
actions
and
reforms,
including
the
Dodd-Frank
Wall
Street
Reform
and
Consumer
Protection
Act,
and
regulatory,
supervisory
or
enforcement
actions
of
government
agencies
relating
to
BlackRock
or
The
PNC
Financial
Services
Group,
Inc.;
(11)
changes
in
law
and
policy
accompanying
the
new
administration
and
uncertainty
pending
any
such
changes;
(12)
terrorist
activities,
international
hostilities
and
natural
disasters,
which
may
adversely
affect
the
general
economy,
domestic
and
local
financial
and
capital
markets,
specific
industries
or
BlackRock;
(13)
the
ability
to
attract
and
retain
highly
talented
professionals;
(14)
fluctuations
in
the
carrying
value
of
BlackRock’s
economic
investments;
(15)
the
impact
of
changes
to
tax
legislation,
including
income,
payroll
and
transaction
taxes,
and
taxation
on
products
or
transactions,
which
could
affect
the
value
proposition
to
clients
and,
generally,
the
tax
position
of
the
Company;
(16)
BlackRock’s
success
in
negotiating
distribution
arrangements
and
maintaining
distribution
channels
for
its
products;
(17)
the
failure
by
a
key
vendor
of
BlackRock
to
fulfill
its
obligations
to
the
Company;
(18)
any
disruption
to
the
operations
of
third
parties
whose
functions
are
integral
to
BlackRock’s
ETF
platform;
(19)
the
impact
of
BlackRock
electing
to
provide
support
to
its
products
from
time
to
time
and
any
potential
liabilities
related
to
securities
lending
or
other
indemnification
obligations;
and
(20)
the
impact
of
problems
at
other
financial
institutions
or
the
failure
or
negative
performance
of
products
at
other
financial
institutions.
This
presentation
also
includes
non-GAAP
financial
measures.
You
can
find
our
presentations
on
the
most
directly
comparable
GAAP
financial
measures
calculated
in
accordance
with
GAAP
and
our
reconciliations
on
page
9
of
this
earnings
release
supplement,
our
current
earnings
release
dated
April
19,
2017,
and
BlackRock’s
other
periodic
reports,
which
are
available
on
BlackRock’s
website
at
www.blackrock.com.
10
(Back To Top)