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

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.

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).

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.

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).

As of ~~October~~July 31, ~~2021,~~2022, there were ~~151,917,177~~150,768,739 shares of the registrant’s common stock outstanding.

	September 30,			December 31,			June 30,			December 31,
(in millions, except shares and per share data)	2021			2020			2022			2021
Assets
Cash and cash equivalents⁽¹⁾	$	7,361		$	8,664
Cash and cash equivalents⁽¹⁾							$	6,481		$	9,323
Accounts receivable		4,015			3,535			3,471			3,789
Investments⁽¹⁾		7,101			6,919
Investments⁽¹⁾								7,302			7,262
Separate account assets		96,755			104,663			61,269			86,226
Separate account collateral held under securities lending agreements		14,106			16,507			7,279			7,081
Property and equipment (net of accumulated depreciation and amortization of $1,257 and $1,098 at September 30, 2021 and December 31, 2020, respectively)		703			681
Intangible assets (net of accumulated amortization of $389 and $291 at September 30, 2021 and December 31, 2020, respectively)		18,476			18,263
Property and equipment (net of accumulated depreciation and amortization of $1,344 and $1,256 at June 30, 2022 and December 31, 2021, respectively)								900			762
Intangible assets (net of accumulated amortization of $447 and $399 at June 30, 2022 and December 31, 2021, respectively)								18,377			18,453
Goodwill		15,360			14,551			15,346			15,351
Operating lease right-of-use assets		1,798			649			1,543			1,621
Other assets⁽¹⁾		3,961			2,550
Other assets⁽¹⁾								3,998			2,780
Total assets	$	169,636		$	176,982		$	125,966		$	152,648
Liabilities
Accrued compensation and benefits	$	2,343		$	2,499		$	1,408		$	2,951
Accounts payable and accrued liabilities		1,402			1,028			1,324			1,397
Borrowings		6,474			7,264			6,635			7,446
Separate account liabilities		96,755			104,663			61,269			86,226
Separate account collateral liabilities under securities lending agreements		14,106			16,507			7,279			7,081
Deferred income tax liabilities		3,659			3,673			2,801			2,758
Operating lease liabilities		1,946			755			1,815			1,872
Other liabilities⁽¹⁾		4,585			2,937
Other liabilities⁽¹⁾								5,130			4,024
Total liabilities		131,270			139,326			87,661			113,755
Commitments and contingencies (Note 15)
Temporary equity
Redeemable noncontrolling interests		1,437			2,322			1,103			1,087
Permanent Equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;		2			2			2			2
Shares authorized: 500,000,000 at September 30, 2021 and December 31, 2020; Shares issued: 172,075,373 at both September 30, 2021 and December 31, 2020; Shares outstanding: 151,988,234 and 152,532,885 at September 30, 2021 and December 31, 2020, respectively
Shares authorized: 500,000,000 at June 30, 2022 and December 31, 2021; Shares issued: 172,075,373 at June 30, 2022 and December 31, 2021; Shares outstanding: 150,966,457 and 151,684,491 at June 30, 2022 and December 31, 2021, respectively
Additional paid-in capital		19,462			19,293			19,469			19,640
Retained earnings		26,672			24,334			28,678			27,688
Accumulated other comprehensive loss		(526	)		(337	)		(1,091	)		(550	)
Treasury stock, common, at cost (20,087,139 and 19,542,488 shares held at September 30, 2021 and December 31, 2020, respectively)		(8,793	)		(8,009	)
Treasury stock, common, at cost (21,108,916 and 20,390,882 shares held at June 30, 2022 and December 31, 2021, respectively)								(9,969	)		(9,087	)
Total BlackRock, Inc. stockholders’ equity		36,817			35,283			37,089			37,693
Nonredeemable noncontrolling interests		112			51			113			113
Total permanent equity		36,929			35,334			37,202			37,806
Total liabilities, temporary equity and permanent equity	$	169,636		$	176,982		$	125,966		$	152,648

	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
	September 30,						September 30,						June 30,						June 30,
(in millions, except shares and per share data)	2021			2020			2021			2020			2022			2021			2022			2021
Revenue
Investment advisory, administration fees and securities lending revenue:
Related parties	$	2,964		$	2,329		$	8,478		$	6,556		$	2,769		$	2,829		$	5,652		$	5,514
Other third parties		979			896			2,814			2,690			919			928			1,869			1,835
Total investment advisory, administration fees and securities lending revenue		3,943			3,225			11,292			9,246			3,688			3,757			7,521			7,349
Investment advisory performance fees		345			532			814			685			106			340			204			469
Technology services revenue		320			282			942			834			332			316			673			622
Distribution fees		401			288			1,110			817			361			369			742			709
Advisory and other revenue		41			42			110			145			39			38			85			69
Total revenue		5,050			4,369			14,268			11,727			4,526			4,820			9,225			9,218
Expense
Employee compensation and benefits		1,527			1,411			4,484			3,700			1,414			1,548			2,912			2,957
Distribution and servicing costs		585			456			1,613			1,330			572			523			1,146			1,028
Direct fund expense		354			257			994			780			304			320			633			640
General and administration expense		611			461			1,657			1,991			530			461			1,026			1,046
Amortization of intangible assets		38			27			109			79			38			37			76			71
Total expense		3,115			2,612			8,857			7,880			2,858			2,889			5,793			5,742
Operating income		1,935			1,757			5,411			3,847			1,668			1,931			3,432			3,476
Nonoperating income (expense)
Net gain (loss) on investments		370			269			766			627			(314	)		314			(416	)		396
Interest and dividend income		14			9			41			34			21			8			39			27
Interest expense		(48	)		(54	)		(155	)		(151	)		(54	)		(52	)		(108	)		(107	)
Total nonoperating income (expense)		336			224			652			510			(347	)		270			(485	)		316
Income before income taxes		2,271			1,981			6,063			4,357			1,321			2,201			2,947			3,792
Income tax expense		518			464			1,490			811			358			654			621			972
Net income		1,753			1,517			4,573			3,546			963			1,547			2,326			2,820
Less:
Net income (loss) attributable to noncontrolling interests		72			153			315			162			(114	)		169			(187	)		243
Net income attributable to BlackRock, Inc.	$	1,681		$	1,364		$	4,258		$	3,384		$	1,077		$	1,378		$	2,513		$	2,577
Earnings per share attributable to BlackRock, Inc. common stockholders:
Basic	$	11.05		$	8.94		$	27.94		$	22.00		$	7.12		$	9.04		$	16.59		$	16.90
Diluted	$	10.89		$	8.87		$	27.59		$	21.84		$	7.06		$	8.92		$	16.43		$	16.69
Weighted-average common shares outstanding:
Basic		152,120,927			152,488,073			152,375,504			153,816,544			151,292,580			152,443,039			151,511,496			152,504,902
Diluted		154,343,277			153,742,264			154,352,590			154,959,812			152,452,320			154,417,581			152,990,147			154,359,353

	Three Months Ended					Nine Months Ended						Three Months Ended					Six Months Ended
	September 30,					September 30,						June 30,					June 30,
(in millions)	2021			2020		2021			2020			2022			2021		2022			2021
Net income	$	1,753		$	1,517	$	4,573		$	3,546		$	963		$	1,547	$	2,326		$	2,820
Other comprehensive income (loss):
Foreign currency translation adjustments⁽¹⁾		(138	)		180		(189	)		(30	)
Foreign currency translation adjustments⁽¹⁾													(416	)		23		(541	)		(51	)
Comprehensive income (loss)		1,615			1,697		4,384			3,516			547			1,570		1,785			2,769
Less: Comprehensive income (loss) attributable to noncontrolling interests		72			153		315			162			(114	)		169		(187	)		243
Comprehensive income attributable to BlackRock, Inc.	$	1,543		$	1,544	$	4,069		$	3,354		$	661		$	1,401	$	1,972		$	2,526

(in millions)	Additional Paid-in Capital⁽¹⁾			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests⁽²⁾			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity⁽²⁾			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, 2020	$	19,295		$	24,334		$	(337	)	$	(8,009	)	$	35,283		$	51		$	35,334		$	2,322
December 31, 2021																									$	19,642			$	27,688			$	(550	)		$	(9,087	)		$	37,693		$	113		$	37,806		$	1,087
Net income		—			4,258			—			—			4,258			(4	)		4,254			319			—				2,513				—				—				2,513			(2	)		2,511			(185	)
Dividends declared ($12.39 per share)		—			(1,920	)		—			—			(1,920	)		—			(1,920	)		—
Dividends declared ($9.76 per share)																										—				(1,523	)			—				—				(1,523	)		—			(1,523	)		—
Stock-based compensation		551			—			—			—			551			—			551			—			376				—				—				—				376			—			376			—
Issuance of common shares related to employee stock transactions		(382	)		—			—			398			16			—			16			—			(547	)			—				—				561				14			—			14			—
Employee tax withholdings related to employee stock transactions		—			—			—			(282	)		(282	)		—			(282	)		—			—				—				—				(443	)			(443	)		—			(443	)		—
Shares repurchased		—			—			—			(900	)		(900	)		—			(900	)		—			—				—				—				(1,000	)			(1,000	)		—			(1,000	)		—
Contributions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			68			68			1,058			—				—				—				—				—			2			2			425
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			(3	)		(3	)		(2,262	)		—				—				—				—				—			—			—			(224	)
Other comprehensive income (loss)		—			—			(189	)		—			(189	)		—			(189	)		—			—				—				(541	)			—				(541	)		—			(541	)		—
September 30, 2021	$	19,464		$	26,672		$	(526	)	$	(8,793	)	$	36,817		$	112		$	36,929		$	1,437
June 30, 2022																									$	19,471			$	28,678			$	(1,091	)		$	(9,969	)		$	37,089		$	113		$	37,202		$	1,103

(in millions)	Additional Paid-in Capital⁽¹⁾			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests⁽²⁾			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity⁽²⁾			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
June 30, 2021	$	19,299		$	25,620		$	(388	)	$	(8,498	)	$	36,033		$	115		$	36,148		$	2,242
March 31, 2022																									$	19,304		$	28,338		$	(675	)	$	(9,478	)	$	37,489		$	107		$	37,596		$	1,263
Net income		—			1,681			—			—			1,681			(6	)		1,675			78			—			1,077			—			—			1,077			(2	)		1,075			(112	)
Dividends declared ($4.13 per share)		—			(629	)		—			—			(629	)		—			(629	)		—
Dividends declared ($4.88 per share)																										—			(737	)		—			—			(737	)		—			(737	)		—
Stock-based compensation		173			—			—			—			173			—			173			—			175			—			—			—			175			—			175			—
Issuance of common shares related to employee stock transactions		(8	)		—			—			14			6			—			6			—			(8	)		—			—			16			8			—			8			—
Employee tax withholdings related to employee stock transactions		—			—			—			(9	)		(9	)		—			(9	)		—			—			—			—			(7	)		(7	)		—			(7	)		—
Shares repurchased		—			—			—			(300	)		(300	)		—			(300	)		—			—			—			—			(500	)		(500	)		—			(500	)		—
Contributions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			7			7			282			—			—			—			—			—			8			8			53
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			(4	)		(4	)		(1,165	)		—			—			—			—			—			—			—			(101	)
Other comprehensive income (loss)		—			—			(138	)		—			(138	)		—			(138	)		—			—			—			(416	)		—			(416	)		—			(416	)		—
September 30, 2021	$	19,464		$	26,672		$	(526	)	$	(8,793	)	$	36,817		$	112		$	36,929		$	1,437
June 30, 2022																									$	19,471		$	28,678		$	(1,091	)	$	(9,969	)	$	37,089		$	113		$	37,202		$	1,103

(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			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, 2019	$	19,188		$	21,662		$	(571	)	$	(6,732	)	$	33,547		$	66		$	33,613		$	1,316
December 31, 2020																									$	19,295			$	24,334			$	(337	)		$	(8,009	)		$	35,283			$	51		$	35,334			$	2,322
Net income		—			3,384			—			—			3,384			(2	)		3,382			164			—				2,577				—				—				2,577				2			2,579				241
Dividends declared ($10.89 per share)		—			(1,706	)		—			—			(1,706	)		—			(1,706	)		—
Dividends declared ($8.26 per share)																										—				(1,291	)			—				—				(1,291	)			—			(1,291	)			—
Stock-based compensation		458			—			—			—			458			—			458			—			378				—				—				—				378				—			378				—
Issuance of common shares related to employee stock transactions		(494	)		—			—			506			12			—			12			—			(374	)			—				—				384				10				—			10				—
Employee tax withholdings related to employee stock transactions		—			—			—			(280	)		(280	)		—			(280	)		—			—				—				—				(273	)			(273	)			—			(273	)			—
Shares repurchased		—			—			—			(1,512	)		(1,512	)		—			(1,512	)		—			—				—				—				(600	)			(600	)			—			(600	)			—
Contributions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			(5	)		(5	)		1,363			—				—				—				—				—				61			61				776
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(759	)		—				—				—				—				—				1			1				(1,097	)
Other comprehensive income (loss)		—			—			(30	)		—			(30	)		—			(30	)		—			—				—				(51	)			—				(51	)			—			(51	)			—
September 30, 2020	$	19,152		$	23,340		$	(601	)	$	(8,018	)	$	33,873		$	59		$	33,932		$	2,084
June 30, 2021																									$	19,299			$	25,620			$	(388	)		$	(8,498	)		$	36,033			$	115		$	36,148			$	2,242

(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		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
June 30, 2020	$	19,009		$	22,532		$	(781	)	$	(8,030	)	$	32,730		$	56		$	32,786		$	1,248
March 31, 2021																								$	19,123		$	24,872		$	(411	)	$	(8,204	)	$	35,380		$	49	$	35,429		$	2,411
Net income		—			1,364			—			—			1,364			(2	)		1,362			155		—			1,378			—			—			1,378			2		1,380			167
Dividends declared ($3.63 per share)		—			(556	)		—			—			(556	)		—			(556	)		—
Dividends declared ($4.13 per share)																									—			(630	)		—			—			(630	)		—		(630	)		—
Stock-based compensation		160			—			—			—			160			—			160			—		182			—			—			—			182			—		182			—
Issuance of common shares related to employee stock transactions		(17	)		—			—			22			5			—			5			—		(6	)		—			—			11			5			—		5			—
Employee tax withholdings related to employee stock transactions		—			—			—			(10	)		(10	)		—			(10	)		—		—			—			—			(5	)		(5	)		—		(5	)		—
Shares repurchased		—			—			—			—			—			—			—			—		—			—			—			(300	)		(300	)		—		(300	)		—
Contributions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			5			5			548		—			—			—			—			—			63		63			154
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			133		—			—			—			—			—			1		1			(490	)
Other comprehensive income (loss)		—			—			180			—			180			—			180			—		—			—			23			—			23			—		23			—
September 30, 2020	$	19,152		$	23,340		$	(601	)	$	(8,018	)	$	33,873		$	59		$	33,932		$	2,084
June 30, 2021																								$	19,299		$	25,620		$	(388	)	$	(8,498	)	$	36,033		$	115	$	36,148		$	2,242

	Nine Months Ended						Six Months Ended
(in millions)	September 30,						June 30,
	2021			2020			2022			2021
Operating activities
Net income	$	4,573		$	3,546		$	2,326		$	2,820
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization		305			255			199			198
Noncash lease expense		101			87			82			63
Stock-based compensation		551			458			376			378
Deferred income tax expense (benefit)		(5	)		20			12			233
Charitable Contribution		—			589
Gain related to the Charitable Contribution		—			(122	)
Other investment gains		(153	)		(244	)
Net (gains) losses within CIPs		(350	)		(161	)		388			(310	)
Net (purchases) proceeds within CIPs		(1,047	)		(1,603	)		(590	)		(759	)
(Earnings) losses from equity method investees		(226	)		(75	)		57			(107	)
Distributions of earnings from equity method investees		54			25			32			25
Changes in operating assets and liabilities:
Accounts receivable		(527	)		(544	)		216			(264	)
Investments, trading		113			153			115			62
Other assets		(1,289	)		(864	)		(1,224	)		(1,330	)
Accrued compensation and benefits		(180	)		(206	)		(1,582	)		(801	)
Accounts payable and accrued liabilities		354			(183	)		(118	)		205
Other liabilities		753			633			934			840
Net cash provided by/(used in) operating activities		3,027			1,764			1,223			1,253
Investing activities
Purchases of investments		(579	)		(252	)		(383	)		(360	)
Proceeds from sales and maturities of investments		294			133			117			184
Distributions of capital from equity method investees		77			124			34			55
Net consolidations (deconsolidations) of sponsored investment funds		(59	)		(42	)		(5	)		(39	)
Acquisitions, net of cash acquired		(1,097	)		—			—			(1,097	)
Purchases of property and equipment		(215	)		(140	)		(263	)		(178	)
Net cash provided by/(used in) investing activities		(1,579	)		(177	)		(500	)		(1,435	)
Financing activities
Proceeds from long-term borrowings		—			2,245
Repayments of long-term borrowings		(750	)		—			(750	)		(750	)
Cash dividends paid		(1,920	)		(1,706	)		(1,523	)		(1,291	)
Repurchases of common stock		(1,182	)		(1,792	)		(1,443	)		(873	)
Net proceeds from (repayments of) borrowings by CIPs		32			38
Net contributions (redemptions/distributions) - noncontrolling interest holders		1,126			1,358			427			837
Other financing activities		(1	)		(37	)		17			11
Net cash provided by/(used in) financing activities		(2,695	)		106			(3,272	)		(2,066	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(56	)		(15	)		(293	)		—
Net increase/(decrease) in cash, cash equivalents and restricted cash		(1,303	)		1,678			(2,842	)		(2,248	)
Cash, cash equivalents and restricted cash, beginning of period		8,681			4,846			9,340			8,681
Cash, cash equivalents and restricted cash, end of period	$	7,378		$	6,524		$	6,498		$	6,433
Supplemental schedule of noncash investing and financing transactions:
Issuance of common stock	$	382		$	494		$	547		$	374
Charitable Contribution of an investment	$	—		$	(589	)
Increase (decrease) in noncontrolling interests due to net consolidation (deconsolidation) of sponsored investment funds	$	(2,265	)	$	(759	)	$	(224	)	$	(1,096	)

BlackRock’s diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes enables the Company to tailor investment outcomes 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 ~~(“CTFs”)~~ and other pooled investment vehicles. BlackRock also offers technology services, including the investment and risk management technology platform, Aladdin^®, Aladdin Wealth, eFront ~~Cachematrix~~ and ~~FutureAdvisor,~~Cachematrix, as well as advisory services and solutions to a broad base of institutional and wealth management clients.

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 ~~CIPs~~consolidated sponsored investment products (“CIPs”) and a consolidated affiliate (collectively, “consolidated entities”) 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 ~~notes~~footnotes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, which was filed with the Securities and Exchange Commission on February 25, 2022 (“2021 ~~(“2020~~ Form 10-K”).

The interim financial information at ~~September~~June 30, ~~2021~~2022 and for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 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 and disclosures, while not required to be recast, were reclassified to ensure comparability with current period classifications.

~~Consolidated Affiliate~~. During the second quarter of 2021, the Company formed a majority-controlled asset management company in China - BlackRock CCB Wealth Management Company Ltd. (“WMC”). WMC is 50.1% owned by the Company. The Company consolidates WMC, which it deems to be a voting rights entity (“VRE”), because it can exert control over the financial and operating policies of the entity, based on the Company’s 50.1% ownership and voting rights.

~~Noncontrolling Interests.~~ NCI consist of third-party investments in the Company’s sponsored investment products and minority interests in WMC. The Company reports NCI as equity, separate from the parent’s equity, on the condensed consolidated statements of financial condition. NCI that are redeemable at the option of the holders are classified as temporary equity and nonredeemable NCI are classified as a component of permanent equity in the condensed consolidated statements of financial condition. In addition, the Company reports net income (loss) attributable to redeemable and nonredeemable NCI holders in net income (loss) attributable to NCI in the condensed consolidated statements of income.

~~Noncontrolling Interests – CIPs.~~ ~~NCI of CIPs represent third-party investments in the Company’s sponsored investment products.~~

~~Noncontrolling Interests – Consolidated Affiliate.~~ NCI of consolidated affiliate represent minority interests held in WMC, a consolidated affiliate. NCI of a consolidated affiliate that are classified as nonredeemable are included as a component of permanent equity in the condensed consolidated statements of financial condition. NCI of a consolidated affiliate that are classified as redeemable are included in temporary equity at estimated redemption value in the condensed consolidated statements of financial condition.

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:

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

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.

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.

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, investments in CLOs and bank loans is 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 Values. 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 generally 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 bank 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 exposures for certain seed investments. However, certain ~~consolidated sponsored investment funds may~~CIPs also utilize derivatives as a part of their investment strategy.

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 assets or liabilities or hedged investments, 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 whose functional currency is not 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. ~~Amounts excluded from the effectiveness assessment are reported in the condensed consolidated statements of income using a systematic and rational method.~~ 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 ~~receives~~obtains either a) the legal title, toor b) a first ranking priority security interest, in the collateral. The minimum collateral ~~with minimum~~ values generally ~~ranging~~range from approximately 102% to 112% of the value of the securities ~~lent~~ 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.

~~The~~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 ~~the cash and noncash collateral received under these BlackRock Life Limited securities lending arrangements as its own asset~~ in addition to an equal ~~and offsetting~~ 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, 2022 and December 31, 2021, the fair value of loaned securities held by separate accounts was approximately $12.6 billion and $13.2 billion, respectively, and the fair value of the collateral under these securities lending agreements was approximately $13.5 billion and $14.1 billion, respectively, of which approximately $7.3 billion as of June 30, 2022 and $7.1 billion as of December 31, 2021 was recognized on the condensed consolidated statements of financial condition. During the six months ended June 30, 2022 and 2021, the Company had 0t 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. During the nine months ended September 30, 2021 and 2020, the Company had 0t resold or repledged any of the collateral received under these arrangements. At September 30, 2021 and December 31, 2020, the fair value of loaned securities held by separate accounts was approximately $13 billion and $15.2 billion, respectively, and the fair value of the collateral held under these securities lending agreements was approximately $14.1 billion and $16.5 billion, respectively.income.

Money Market Fee Waivers. The Company may voluntarily waive a portion of its management fees on certain money market funds to ensure that they maintain a targeted level of daily net investment income (the “Yield Support waivers”). During the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, these waivers resulted in a reduction of management fees of approximately ~~$130~~$0 million and ~~$360~~$72 million, respectively, which was partially offset by a reduction of BlackRock’s distribution and servicing costs paid to financial intermediaries. ~~There were no Yield Support waivers for~~During the three and ~~nine~~six months ended ~~September~~June 30, ~~2020.~~2021, these waivers resulted in a reduction of management fees of approximately $160 million and $230 million, respectively, which also was partially offset by a reduction of BlackRock’s distribution and servicing costs paid to financial intermediaries. The Company may increase or decrease the level of Yield Support waivers in future periods.

On February 1, 2021, the Company acquired 100% of the equity interests of Aperio Group, LLC (the “Aperio Transaction” or “Aperio”), a pioneer in customizing tax-optimized index equity separately managed accounts (“SMAs”) for approximately $1.1 billion in cash, using existing cash resources. The acquisition of Aperio increased BlackRock’s SMA assets under management and expanded the breadth of the Company’s capabilities via tax-managed strategies across factors, broad market indexing, and investor Environmental, Social, and Governance preferences across all asset classes.

The purchase price for the Aperio Transaction was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the transaction. The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from the transaction. ~~The amount of goodwill expected to be deductible for tax purposes is approximately $0.6 billion.~~ A summary of the fair values of the assets acquired and liabilities assumed in this acquisition is as ~~follows~~⁽¹⁾:

Finite-lived intangible assets are amortized over their estimated useful lives, which range from three to 10 years. Amortization expense related to the finite-lived intangible assets was $10 million and $27 million, respectively, for the three and nine months ended September 30, 2021. The finite-lived intangible assets had a weighted-average remaining useful life of approximately nine years with remaining amortization expense as follows:

The financial results of Aperio have been included in BlackRock’s condensed consolidated financial statements from the closing of the Aperio Transaction. For the three and nine months ended September 30, 2021, Aperio contributed $22 million and $56 million, respectively, of revenue and did 0t have a material impact to net income attributable to BlackRock, Inc. Consequently, the Company has not presented pro forma combined results of operations for this acquisition.

In June 2021, the Company completed the acquisition of Baringa Partners’ Climate Change Scenario Model, which will be integrated into BlackRock’s Aladdin Climate technology, and will enhance Aladdin Climate’s capabilities and analytics.~~Total consideration, including contingent consideration, is not material to the Company’s condensed consolidated financial statements.~~

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.

	September 30,		December 31,		June 30,		December 31,
	2021		2020		2022		2021
(in millions)
Cash and cash equivalents	$	7,361	$	8,664	$	6,481	$	9,323
Restricted cash included in other assets		17		17		17		17
Total cash, cash equivalents and restricted cash	$	7,378	$	8,681	$	6,498	$	9,340

~~The carrying value of held-to-maturity investments was $386 million and $310 million at September 30, 2021 and December 31, 2020, respectively.~~ Held-to-maturity investments included certain investments in BlackRock sponsored CLOs and foreign government debt held primarily for regulatory purposes. The amortized cost (carrying value) of these investments approximated fair value (primarily a Level 2 input). At ~~September~~June 30, ~~2021, $36~~2022, $25 million of these investments mature between one to five years, ~~$96~~$129 million of these investments mature between five to 10ten years and ~~$254~~$337 million of these investments mature after 10 years.

A summary of the cost and carrying value of trading debt securities and equity securities at ~~FVTNI~~fair value recorded through net income (“FVTNI”) is as follows:


	September 30, 2021				December 31, 2020				June 30, 2022				December 31, 2021
(in millions)	Cost		Carrying Value		Cost		Carrying Value		Cost		Carrying Value		Cost		Carrying Value
Trading debt securities:
Corporate debt	$	961	$	970	$	1,591	$	1,641	$	629	$	620	$	703	$	701
Government debt		403		403		203		210		331		331		365		363
Asset/mortgage-backed debt		120		107		132		113		120		106		126		122
Total trading debt securities	$	1,484	$	1,480	$	1,926	$	1,964	$	1,080	$	1,057	$	1,194	$	1,186
Equity securities at FVTNI:
Equity securities/mutual funds	$	1,311	$	1,591	$	2,055	$	2,317	$	1,600	$	1,684	$	1,451	$	1,738
Total equity securities at FVTNI	$	1,311	$	1,591	$	2,055	$	2,317	$	1,600	$	1,684	$	1,451	$	1,738

The Company consolidates certain sponsored investment funds accounted for as ~~VREs~~voting rights entities (“VREs”) because it is deemed to control such funds.

In the normal course of business, the Company is the manager of various types of sponsored investment vehicles, which may be considered VIEs. The Company may from time to time own equity or debt securities or enter into derivatives 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 investments in the entity. The Company’s consolidated VIEs include certain sponsored investment products in which BlackRock has an investment 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:

	September 30, 2021									December 31, 2020									June 30, 2022									December 31, 2021
(in millions)	VIEs			VREs			Total			VIEs			VREs			Total			VIEs			VREs			Total			VIEs			VREs			Total
Cash and cash equivalents	$	204		$	61		$	265		$	155		$	51		$	206		$	274		$	44		$	318		$	251		$	57		$	308
Investments:
Trading debt securities		1,258			167			1,425			1,618			310			1,928			684			330			1,014			870			270			1,140
Equity securities at FVTNI		946			308			1,254			1,592			413			2,005			1,097			344			1,441			1,100			385			1,485
Bank loans		282			—			282			248			—			248			279			—			279			284			—			284
Other investments		207			—			207			191			—			191			228			—			228			210			—			210
Carried interest		1,406			—			1,406			604			—			604			1,592			—			1,592			1,504			—			1,504
Total investments		4,099			475			4,574			4,253			723			4,976			3,880			674			4,554			3,968			655			4,623
Other assets		83			10			93			90			9			99			62			24			86			50			32			82
Other liabilities⁽¹⁾		(1,799	)		(39	)		(1,838	)		(952	)		(70	)		(1,022	)
Other liabilities⁽¹⁾																				(2,059	)		(40	)		(2,099	)		(1,919	)		(82	)		(2,001	)
Noncontrolling interests - CIPs		(1,416	)		(59	)		(1,475	)		(2,193	)		(180	)		(2,373	)		(1,060	)		(89	)		(1,149	)		(1,046	)		(79	)		(1,125	)
BlackRock's net interests in CIPs	$	1,171		$	448		$	1,619		$	1,353		$	533		$	1,886		$	1,097		$	613		$	1,710		$	1,304		$	583		$	1,887

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

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

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

	Three Months Ended				Nine Months Ended				Three Months Ended					Six Months Ended
	September 30,				September 30,				June 30,					June 30,
(in millions)	2021		2020		2021		2020		2022			2021		2022			2021

Nonoperating net gain (loss) on consolidated VIEs	$	50	$	213	$	323	$	186	$	(183	)	$	190	$	(316	)	$	273

Net income (loss) attributable to NCI on consolidated VIEs	$	73	$	149	$	296	$	169	$	(108	)	$	168	$	(183	)	$	223

Nonconsolidated VIEs. At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, 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 (“PB”), was as follows:

(in millions)			Advisory Fee		Other Net Assets			Maximum				Advisory Fee		Other Net Assets			Maximum
At September 30, 2021	Investments		Receivables		(Liabilities)			Risk of Loss⁽¹⁾
At June 30, 2022										Investments		Receivables		(Liabilities)			Risk of Loss⁽¹⁾
Sponsored investment products	$	865	$	71	$	(12	)	$	953	$	976	$	92	$	(12	)	$	1,084
At December 31, 2020
At December 31, 2021
Sponsored investment products	$	662	$	71	$	(13	)	$	750	$	882	$	62	$	(12	)	$	961

The net assets of sponsored investment products that are nonconsolidated VIEs approximated ~~$23~~$20 billion and ~~$16~~$20 billion at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

September 30, 2021
(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⁾

September 30,
2021

Assets:

Investments

Debt securities:

Held-to-maturity investments
$
—

$
—

$
—

$
—

$
386

$
386

Trading securities

—

1,450

30

—

—

1,480

Total debt securities

—

1,450

30

—

386

1,866

Equity securities at FVTNI:

Equity securities/mutual funds

1,591

—

—

—

—

1,591

Equity method:

Equity and fixed income mutual funds

339

—

—

—

—

339

Hedge funds/funds of hedge funds

—

—

—

359

—

359

Private equity funds

—

—

—

633

—

633

Real assets funds

—

—

—

213

—

213

Total equity method

339

—

—

1,205

—

1,544

Bank loans

—

9

273

—

—

282

Federal Reserve Bank Stock

—

—

—

—

95

95

Carried interest

—

—

—

—

1,446

1,446

Other investments⁽³⁾

—

4

5

94

174

277

Total investments

1,930

1,463

308

1,299

2,101

7,101

Other assets⁽⁴⁾

197

23

—

—

—

220

Separate account assets

65,704

30,146

—

—

905

96,755

Separate account collateral held under
   securities lending agreements:

Equity securities

10,551

—

—

—

—

10,551

Debt securities

—

3,555

—

—

—

3,555

Total separate account collateral held under
   securities lending agreements

10,551

3,555

—

—

—

14,106

Total
$
78,382

$
35,187

$
308

$
1,299

$
3,006

$
118,182

Liabilities:

Separate account collateral liabilities under
   securities lending agreements
$
10,551

$
3,555

$
—

$
—

$
—

$
14,106

Other liabilities⁽⁵⁾

—

41

340

—

—

381

Total
$
10,551

$
3,596

$
340

$
—

$
—

$
14,487

December 31, 2020 (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, 2020
June 30, 2022 (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, 2022
Assets:
Investments
Debt securities:
Held-to-maturity investments	$	—	$	—	$	—	$	—	$	310	$	310	$	—	$	—	$	—	$	—	$	491	$	491
Trading securities		—		1,953		11		—		—		1,964		—		1,041		16		—		—		1,057
Total debt securities		—		1,953		11		—		310		2,274		—		1,041		16		—		491		1,548
Equity securities at FVTNI:
Equity securities/mutual funds		2,317		—		—		—		—		2,317		1,684		—		—		—		—		1,684
Equity method:
Equity and fixed income mutual funds		235		—		—		—		—		235		238		—		—		—		—		238
Hedge funds/funds of hedge funds		—		—		—		313		—		313
Hedge funds/funds of hedge funds/other														—		—		—		428		—		428
Private equity funds		—		—		—		315		—		315		—		—		—		853		—		853
Real assets funds		—		—		—		218		—		218		—		—		—		263		—		263
Total equity method		235		—		—		846		—		1,081		238		—		—		1,544		—		1,782
Bank loans		—		16		232		—		—		248		—		27		252		—		—		279
Federal Reserve Bank Stock		—		—		—		—		94		94		—		—		—		—		90		90
Carried interest		—		—		—		—		627		627		—		—		—		—		1,644		1,644
Other investments⁽³⁾		—		—		9		94		175		278		—		1		4		111		159		275
Total investments		2,552		1,969		252		940		1,206		6,919		1,922		1,069		272		1,655		2,384		7,302
Other assets⁽⁴⁾		205		13		—		—		—		218		126		33		—		—		—		159
Separate account assets		71,392		32,404		—		—		867		104,663		40,072		20,476		—		—		721		61,269
Separate account collateral held under securities lending agreements:
Equity securities		13,126		—		—		—		—		13,126		2,686		—		—		—		—		2,686
Debt securities		—		3,381		—		—		—		3,381		—		4,593		—		—		—		4,593
Total separate account collateral held under securities lending agreements		13,126		3,381		—		—		—		16,507		2,686		4,593		—		—		—		7,279
Total	$	87,275	$	37,767	$	252	$	940	$	2,073	$	128,307	$	44,806	$	26,171	$	272	$	1,655	$	3,105	$	76,009
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	13,126	$	3,381	$	—	$	—	$	—	$	16,507	$	2,686	$	4,593	$	—	$	—	$	—	$	7,279
Other liabilities⁽⁵⁾		—		68		272		—		—		340		—		36		314		—		—		350
Total	$	13,126	$	3,449	$	272	$	—	$	—	$	16,847	$	2,686	$	4,629	$	314	$	—	$	—	$	7,629

December 31, 2021 (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, 2021
Assets:
Investments
Debt securities:
Held-to-maturity investments	$	—	$	—	$	—	$	—	$	430	$	430
Trading securities		—		1,169		17		—		—		1,186
Total debt securities		—		1,169		17		—		430		1,616
Equity securities at FVTNI:
Equity securities/mutual funds		1,738		—		—		—		—		1,738
Equity method:
Equity and fixed income mutual funds		245		—		—		—		—		245
Hedge funds/funds of hedge funds/other		—		—		—		369		—		369
Private equity funds		—		—		—		846		—		846
Real assets funds		—		—		—		234		—		234
Total equity method		245		—		—		1,449		—		1,694
Bank loans		—		14		270		—		—		284
Federal Reserve Bank Stock		—		—		—		—		96		96
Carried interest		—		—		—		—		1,555		1,555
Other investments⁽³⁾		—		—		5		96		178		279
Total investments		1,983		1,183		292		1,545		2,259		7,262
Other assets⁽⁴⁾		195		39		—		—		—		234
Separate account assets		54,675		30,786		—		—		765		86,226
Separate account collateral held under securities lending agreements:
Equity securities		3,717		—		—		—		—		3,717
Debt securities		—		3,364		—		—		—		3,364
Total separate account collateral held under securities lending agreements		3,717		3,364		—		—		—		7,081
Total	$	60,570	$	35,372	$	292	$	1,545	$	3,024	$	100,803
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	3,717	$	3,364	$	—	$	—	$	—	$	7,081
Other liabilities⁽⁵⁾		—		26		342		—		—		368
Total	$	3,717	$	3,390	$	342	$	—	$	—	$	7,449

Level 3 Assets. Level 3 assets may include investments in CLOs and bank loans of consolidated CLOs, which were valued based on single-broker nonbinding quotes and direct private equity investments, which were valued using the market or income approach.

Level 3 investments of ~~$308~~$272 million and ~~$252~~$292 million at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, primarily included bank loans of a consolidated CLO.

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, and contingent liabilities related to certain acquisitions, which were valued based upon discounted cash flow analyses using unobservable market data inputs.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended ~~September~~June 30, ~~2021~~2022

(in millions)	June 30, 2021		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾		Transfers into Level 3		Transfers out of Level 3			September 30, 2021		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾			March 31, 2022		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and other Settlements		Transfers into Level 3		Transfers out of Level 3			June 30, 2022		Total Net Unrealized Gains (Losses) Included in Earnings⁽¹⁾
Assets:
Investments:
Debt securities:
Trading	$	21	$	2		$	12	$	(5	)	$	—	$	—	$	—		$	30	$	2		$	8	$	(3	)	$	13	$	(1	)	$	—	$	—	$	(1	)	$	16	$	(3	)
Total debt securities		21		2			12		(5	)		—		—		—			30		2			8		(3	)		13		(1	)		—		—		(1	)		16		(3	)
Private equity		5		1			—		—			—		—		(1	)		5		1			4		—			—		—			—		—		—			4		—
Bank loans		261		—			16		—			—		1		(5	)		273		—			264		(3	)		8		(18	)		—		4		(3	)		252		(3	)
Total investments	$	287	$	3		$	28	$	(5	)	$	—	$	1	$	(6	)	$	308	$	3			276		(6	)		21		(19	)		—		4		(4	)		272		(6	)
Total Level 3 assets																							$	276	$	(6	)	$	21	$	(19	)	$	—	$	4	$	(4	)	$	272	$	(6	)
Liabilities:
Other liabilities	$	298	$	(28	)	$	—	$	—		$	14	$	—	$	—		$	340	$	(28	)	$	312	$	—		$	—	$	—		$	2	$	—	$	—		$	314	$	—
Total Level 3 liabilities	$	298	$	(28	)	$	—	$	—		$	14	$	—	$	—		$	340	$	(28	)	$	312	$	—		$	—	$	—		$	2	$	—	$	—		$	314	$	—

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022

(in millions)	December 31, 2020		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾		Transfers into Level 3		Transfers out of Level 3			September 30, 2021		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾			December 31, 2021		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, 2022		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	11	$	2		$	24	$	(5	)	$	—	$	—	$	(2	)	$	30	$	2		$	17	$	(3	)	$	19	$	(13	)	$	—		$	—	$	(4	)	$	16	$	(3	)
Total debt securities		11		2			24		(5	)		—		—		(2	)		30		2			17		(3	)		19		(13	)		—			—		(4	)		16		(3	)
Private equity		9		1			—		—			—		—		(5	)		5		1			5		—			—		—			—			—		(1	)		4		—
Bank loans		232		—			45		—			—		11		(15	)		273		—			270		(3	)		16		(18	)		—			4		(17	)		252		(3	)
Total investments	$	252	$	3		$	69	$	(5	)	$	—	$	11	$	(22	)	$	308	$	3			292		(6	)		35		(31	)		—			4		(22	)		272		(6	)
Total Level 3 assets																							$	292	$	(6	)	$	35	$	(31	)	$	—		$	4	$	(22	)	$	272	$	(6	)
Liabilities:
Other liabilities	$	272	$	(32	)	$	—	$	—		$	36	$	—	$	—		$	340	$	(32	)	$	342	$	(1	)	$	—	$	—		$	(29	)	$	—	$	—		$	314	$	(1	)
Total Level 3 liabilities	$	272	$	(32	)	$	—	$	—		$	36	$	—	$	—		$	340	$	(32	)	$	342	$	(1	)	$	—	$	—		$	(29	)	$	—	$	—		$	314	$	(1	)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended ~~September~~June 30, ~~2020~~2021

(in millions)	June 30, 2020		Realized and Unrealized Gains (Losses)		Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3			September 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾		March 31, 2021		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, 2021		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	10	$	—	$	1	$	—		$	—		$	—	$	—		$	11	$	—	$	14	$	—		$	7	$	—	$	—	$	—	$	—		$	21	$	—
Total debt securities		10		—		1		—			—			—		—			11		—		14		—			7		—		—		—		—			21		—
Private equity		16		—		—		(6	)		—			—		—			10		—		9		—			—		—		—		—		(4	)		5		—
Bank loans		229		—		—		(9	)		—			—		(3	)		217		—		235		—			20		—		—		6		—			261		—
Total investments	$	255	$	—	$	1	$	(15	)	$	—		$	—	$	(3	)	$	238	$	—		258		—			27		—		—		6		(4	)		287		—
Total Level 3 assets																						$	258	$	—		$	27	$	—	$	—	$	6	$	(4	)	$	287	$	—
Liabilities:
Other liabilities	$	262	$	—	$	—	$	—		$	(1	)	$	—	$	—		$	261	$	—	$	280	$	(1	)	$	—	$	—	$	17	$	—	$	—		$	298	$	(1	)
Total Level 3 liabilities	$	262	$	—	$	—	$	—		$	(1	)	$	—	$	—		$	261	$	—	$	280	$	(1	)	$	—	$	—	$	17	$	—	$	—		$	298	$	(1	)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2020~~2021

(in millions)	December 31, 2019		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3			September 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽³⁾			December 31, 2020		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, 2021		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	8	$	—		$	3	$	—		$	—		$	—	$	—		$	11	$	—		$	11	$	—		$	12	$	—	$	—	$	—	$	(2	)	$	21	$	—
Total debt securities		8		—			3		—			—			—		—			11		—			11		—			12		—		—		—		(2	)		21		—
Private equity		9		—			8		(7	)		—			—		—			10		—			9		—			—		—		—		—		(4	)		5		—
Bank loans		177		—			36		(9	)		—			16		(3	)		217		—			232		—			29		—		—		10		(10	)		261		—
Total investments	$	194	$	—		$	47	$	(16	)	$	—		$	16	$	(3	)	$	238	$	—			252		—			41		—		—		10		(16	)		287		—
Total Level 3 assets																								$	252	$	—		$	41	$	—	$	—	$	10	$	(16	)	$	287	$	—
Liabilities:
Other liabilities	$	388	$	(23	)	$	—	$	—		$	(150	)	$	—	$	—		$	261	$	(5	)	$	272	$	(4	)	$	—	$	—	$	22	$	—	$	—		$	298	$	(4	)
Total Level 3 liabilities	$	388	$	(23	)	$	—	$	—		$	(150	)	$	—	$	—		$	261	$	(5	)	$	272	$	(4	)	$	—	$	—	$	22	$	—	$	—		$	298	$	(4	)

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) on the condensed consolidated statements of income. A portion of net income (loss) ~~for consolidated sponsored investment funds~~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, or when the carrying value of certain equity method investments no longer represents fair value as determined under valuation methodologies.

Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below:

	September 30, 2021				December 31, 2020						June 30, 2022				December 31, 2021
(in millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Financial Assets⁽¹⁾:
Cash and cash equivalents	$	7,361	$	7,361	$	8,664	$	8,664	Level 1	^{(2) (3)}	$	6,481	$	6,481	$	9,323	$	9,323	Level 1	^{(2) (3)}
Other assets	$	48	$	48	$	69	$	69	Level 1	⁽⁴⁾	$	44	$	44	$	22	$	22	Level 1	^{(2) (4)}

Financial Liabilities:
Long-term borrowings	$	6,474	$	6,836	$	7,264	$	7,883	Level 2	⁽⁵⁾	$	6,635	$	6,102	$	7,446	$	7,735	Level 2	⁽⁵⁾

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 ~~in entities~~ 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).

September 30, 2021

June 30, 2022

(in millions)

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Equity method:⁽¹⁾

Hedge funds/funds of hedge funds

(a)

359

123

Daily/Monthly (21%)

Quarterly (21%)

N/R (58%)

1 – 90 days

Hedge funds/funds of hedge funds/

other

(a)

428

103

Daily/Monthly (32%)

Quarterly (12%)

N/R (56%)

1 – 90 days

Private equity funds

(b)

633

302

N/R

(b)

853

215

N/R

Real assets funds

(c)

213

229

Quarterly (21%)

N/R (79%)

60 days

(c)

263

245

Quarterly (20%)

N/R (80%)

60 days

Consolidated sponsored investment

products:

Private equity funds of funds

(d)

N/R

Real assets funds

(c)

106

N/R

(d)

N/R

Funds of hedge funds

N/R

Other funds

(c)

N/R

Total

1,299

786

1,655

718

December 31, 2020

December 31, 2021

(in millions)

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Equity method:⁽¹⁾

Hedge funds/funds of hedge funds

(a)

313

101

Daily/Monthly (21%)

Quarterly (21%)

N/R (58%)

1 – 90 days

Hedge funds/funds of hedge funds/

other

(a)

369

141

Daily/Monthly (20%)

Quarterly (20%)

N/R (60%)

1 – 90 days

Private equity funds

(b)

315

372

N/R

(b)

846

153

N/R

Real assets funds

(c)

218

205

Quarterly (31%)

N/R (69%)

60 days

(c)

234

245

Quarterly (20%)

N/R (80%)

60 days

Consolidated sponsored investment

products:

Private equity funds of funds

(d)

N/R

Real assets funds

(c)

N/R

(d)

101

N/R

Other funds

(c)

N/R

Total

940

779

1,545

665

At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company elected the fair value option for certain investments in CLOs of approximately ~~$54~~$43 million and ~~$35~~$47 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 ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020:~~2021:

	September 30,			December 31,		June 30,		December 31,
(in millions)	2021			2020		2022		2021
CLO Bank loans:
Aggregate principal amounts outstanding	$	280		$	250	$	280	$	281
Fair value		282			248		279		284
Aggregate unpaid principal balance in excess of (less than) fair value	$	(2	)	$	2	$	1	$	(3	)

CLO Borrowings:
Aggregate principal amounts outstanding	$	275		$	244	$	293	$	275
Fair value	$	278		$	246	$	281	$	278

At ~~September~~June 30, ~~2021,~~2022, the principal amounts outstanding of the borrowings issued by the CLOs mature in 2030.

During the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, 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 ~~nonoperating (expense)~~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.

The Company maintains a program to enter into swaps to hedge against market price and interest rate exposures with respect to certain seed investments in sponsored investment products. At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had outstanding total return swaps with aggregate notional values of approximately ~~$801~~$651 million and ~~$833~~$720 million, ~~respectively.~~respectively.

The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange movements. At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had outstanding forward foreign currency exchange contracts with aggregate notional values of approximately ~~$2.2~~$1.7 billion and $~~2.8~~1.8 billion, respectively, and with expiration dates in ~~October 2021~~July 2022 and January ~~2021,~~2022, respectively.

At both ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, 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 ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020:~~2021:

(in millions)	Assets					Liabilities					Assets					Liabilities
	Statement of Financial Condition	September 30,		December 31,		Statement of Financial Condition	September 30,		December 31,
Derivative instruments	Classification	2021		2020		Classification	2021		2020		Statement of Financial Condition Classification	June 30, 2022			December 31, 2021	Statement of Financial Condition Classification	June 30, 2022		December 31, 2021
Total return swaps	Other assets	$	22	$	—	Other liabilities	$	1	$	50	Other assets	$	32	$	5	Other liabilities	$	5	$	14
Forward foreign currency exchange contracts	Other assets		1		13	Other liabilities		28		5	Other assets		1		34			19		—
Total		$	23	$	13		$	29	$	55		$	33	$	39		$	24		14

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

			Three Months Ended						Nine Months Ended								Three Months Ended						Six Months Ended
			September 30,						September 30,								June 30,						June 30,
(in millions)		Statement of Income	2021			2020			2021			2020				Statement of Income	2022			2021			2022			2021
Derivative Instruments		Classification	Gains (Losses)						Gains (Losses)							Classification	Gains (Losses)						Gains (Losses)
Total return swaps		Nonoperating income (expense)	$	14		$	(42	)	$	(70	)	$	9			Nonoperating income (expense)	$	62		$	(50	)	$	103		$	(84	)
Forward foreign currency exchange contracts		General and administration expense		(46	)		64			(36	)		(34	)		General and administration expense		(129	)		3			(171	)		10
Total gain (loss) from derivative instruments	Total gain (loss) from derivative instruments		$	(32	)	$	22		$	(106	)	$	(25	)	Total gain (loss) from derivative instruments		$	(67	)	$	(47	)	$	(68	)	$	(74	)

The Company consolidates certain sponsored investment funds, which may utilize derivative instruments as a part of the funds’ investment strategies. The ~~changes~~change in fair value of such derivatives, which ~~are~~is recorded in nonoperating income (expense), ~~were~~was not material for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021.

See Note 15, Borrowings, in the ~~2020~~2021 Form 10-K for more information on the Company’s net investment hedge.

Goodwill activity during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was as follows:

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

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

	Three Months Ended				Nine Months Ended				Three Months Ended				Six Months Ended
	September 30,				September 30,				June 30,				June 30,
(in millions)	2021		2020		2021		2020		2022		2021		2022		2021
Lease cost:
Operating lease cost⁽¹⁾	$	50	$	37	$	128	$	110
Variable lease cost⁽²⁾		10		10		30		29
Operating lease cost⁽¹⁾									$	54	$	39	$	105	$	78
Variable lease cost⁽²⁾										11		10		22		20
Total lease cost	$	60	$	47	$	158	$	139	$	65	$	49	$	127	$	98

	Nine Months Ended				Six Months Ended
	September 30,				June 30,
(in millions)	2021		2020		2022		2021
Supplemental cash flow information:
Operating cash flows from operating leases included in the measurement
of operating lease liabilities	$	108	$	114
Operating cash flows from operating leases included in the measurement of operating lease liabilities					$	82	$	81

Supplemental noncash information:
ROU assets in exchange for operating lease liabilities	$	1,297	$	77	$	37	$	28

	September 30,			December 31,			June 30,			December 31,
	2021			2020			2022			2021
Lease term and discount rate:
Weighted-average remaining lease term		16	years		8	years		16	years		16	years
Weighted-average discount rate		3	%		3	%		3	%		3	%

At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had ~~$582~~$553 million and ~~$399~~$583 million of equity method investments, respectively, recorded within other assets on the condensed consolidated statements of financial ~~condition.~~condition, since such investees are considered to be an extension of BlackRock’s core business. BlackRock’s share of these investees’ underlying net income or loss is based upon the most currently available information and is recorded within advisory and other revenue. In accordance with GAAP, certain equity method investees 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.

On March 10, 2020, in connection with a recapitalization of iCapital Network, Inc. (“iCapital”), BlackRock received additional stock in exchange for certain securities it held, which resulted in a nonoperating pre-tax gain of approximately $240 million in the condensed consolidated statement of income for the nine months ended SeptemberAt June 30, ~~2020. Following this transaction,~~2022 and December 31, 2021, the Company ~~accounts for its interest in iCapital as an equity~~had $304 million and $268 million of other nonequity method ~~investment, which is included in~~corporate minority investments recorded within other assets on the ~~condensed~~ consolidated statements of financial ~~condition. During~~condition, which included investments in equity securities, generally measured at fair value or under the ~~three and nine months ended September 30, 2021, BlackRock~~measurement alternative to fair value for nonmarketable securities. Changes in value of these securities are recorded ain nonoperating ~~noncash, pre-tax gain of $107 million in~~income (expense) on the ~~condensed~~ consolidated statements of ~~income~~income. See Note 2, Significant Accounting Policies, in ~~connection with iCapital’s most recent third-party equity financing. At September 30,~~the notes to the consolidated financial statements contained in the 2021 ~~and December 31, 2020, the carrying value of the Company’s interest in iCapital was approximately $401 million and $296 million, respectively.~~

~~2021~~2022 Revolving Credit Facility. Since 2011, the Company has maintained an unsecured revolving credit facility which is available for working capital and general corporate purposes (the “2022 credit facility”). In March ~~2021,~~2022, the ~~Company’s~~2022 credit facility was amended to, among other things, (i) increase the aggregate commitment amount by $300 million to ~~$4.4~~$4.7 billion, ~~and to~~(ii) extend the maturity date to March ~~2026 (the “2021 credit facility”).~~ ~~In addition,~~2027, (iii) change the ~~amendment incorporated certain sustainability-linked pricing metrics into the agreement. Specifically, the Company’s applicable interest~~ rate ~~and commitment fee are subject to upward or downward adjustments on an annual basis if the Company achieves, or fails to achieve, certain specified targets.~~ ~~Interest on~~for borrowings ~~outstanding accrues at~~denominated in US dollars from a rate based on the ~~applicable~~ London Interbank Offered Rate (“LIBOR”) to a rate based on the secured overnight financing rate (“SOFR”) subject to certain adjustments and (iv) raise and/or ~~an applicable replacement benchmark, plus a spread.~~add certain specified targets for the sustainability-linked pricing mechanics. The ~~2021~~2022 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, ~~increasing~~which could increase the overall size of the ~~2021~~2022 credit facility to an aggregate principal amount ~~not~~of up to ~~exceed $5.4~~$5.7 billion. The ~~2021~~2022 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 ~~September~~June 30, ~~2021. The 2021 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities.~~2022. At ~~September~~June 30, ~~2021,~~2022, the Company had 0 amount outstanding under the ~~2021~~2022 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 ~~2021~~2022 credit facility. At ~~September~~June 30, ~~2021,~~2022, BlackRock had 0 CP Notes outstanding.

The carrying value and fair value of long-term ~~borrowings~~notes determined using market prices and EUR/USD foreign exchange rate at ~~September~~June 30, ~~2021~~2022 included the following:

(in millions)	Maturity Amount		Unamortized Discount and Debt Issuance Costs			Carrying Value		Fair Value		Maturity Amount		Unamortized Discount and Debt Issuance Costs⁽¹⁾			Carrying Value		Fair Value
3.375% Notes due 2022	$	750	$	—		$	750	$	766
3.50% Notes due 2024		1,000		(2	)		998		1,071	$	1,000	$	(2	)	$	998	$	1,005
1.25% Notes due 2025		811		(3	)		808		851		732		(2	)		730		712
3.20% Notes due 2027		700		(4	)		696		767		700		(3	)		697		691
3.25% Notes due 2029		1,000		(11	)		989		1,097		1,000		(10	)		990		947
2.40% Notes due 2030		1,000		(6	)		994		1,034		1,000		(6	)		994		878
1.90% Notes due 2031		1,250		(11	)		1,239		1,250		1,250		(10	)		1,240		1,040
Total Long-term Borrowings	$	6,511	$	(37	)	$	6,474	$	6,836
2.10% Notes due 2032											1,000		(14	)		986		829
Total long-term notes										$	6,682	$	(47	)	$	6,635	$	6,102

Long-term notes at December 31, 2021 had a carrying value of $7.4 billion and a fair value of $7.7 billion, determined using market prices and EUR/USD foreign exchange rate at December 31, 2021.

In ~~May 2021,~~June 2022, the Company fully repaid $750 million of ~~4.25%~~3.375% notes at maturity.

~~Long-term borrowings at December 31, 2020 had a carrying value of $7.3 billion and a fair value of $7.9 billion, determined using market prices at the end of December 31, 2020.~~

See Note 15, Borrowings, in the ~~2020~~2021 Form 10-K for more information regarding the Company’s borrowings.

Investment Commitments. At ~~September~~June 30, ~~2021,~~2022, the Company had ~~$905~~$806 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.

~~Contingent Payments Related to Business Acquisitions~~. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to achieving specified performance targets, which may include revenue from acquired contracts. The fair value of the remaining aggregate contingent payments at September 30, 2021 totaled $62 million and is included in other liabilities on the condensed consolidated statements of financial condition.

~~Other Contingent Payments.~~ ~~The Company acts as the portfolio manager in a series of derivative transactions and has a maximum potential exposure of $17 million between the Company and counterparty. See Note 9,~~ ~~Derivatives and Hedging, for further discussion.~~

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. 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.

On April 5, 2017, BlackRock, Inc., BlackRock Institutional Trust Company, N.A. (“BTC”), the BlackRock, Inc. Retirement Committee and various sub-committees, and a BlackRock employee were named as defendants in a purported class action lawsuit brought in the US District Court for the Northern District of California by a former employee on behalf of all participants and beneficiaries in the BlackRock employee 401(k) Plan (the “Plan”) from April 5, 2011 to the present. The lawsuit generally alleges that the defendants breached their duties towards Plan participants in violation of the Employee Retirement Income Security Act of 1974 by, among other things, offering investment options that were overly expensive, underperformed unaffiliated peer funds, focused disproportionately on active versus passive strategies, and were unduly concentrated in investment options managed by BlackRock. On October 18, 2017, the plaintiffs filed an Amended Complaint, which, among other things, added as defendants certain current and former members of the BlackRock Retirement and Investment Committees. The Amended Complaint also included a new purported class claim on behalf of investors in certain CTFs managed by BTC. Specifically, the plaintiffs allege that BTC, as fiduciary to the CTFs, engaged in self-dealing by, most significantly, selecting itself as the securities lending agent on terms that the plaintiffs claim were excessive. The Amended Complaint also alleged that BlackRock took undue risks in its management of securities lending cash reinvestment vehicles during the financial crisis. On August 23, 2018, the court granted permission to the plaintiffs to file a Second Amended Complaint (“SAC”) which added as defendants the BlackRock, Inc. Management Development and Compensation Committee, the Plan’s independent investment consultant and the Plan’s Administrative Committee and its members. On October 22, 2018, BlackRock filed a motion to dismiss the SAC, and on June 3, 2019, the plaintiffs filed a motion seeking to certify both the Plan and the CTF classes. On September 3, 2019, the court granted BlackRock’s motion to dismiss part of the plaintiffs’ claim seeking to recover alleged losses in the securities lending vehicles but denied the motion to dismiss in all other respects. On February 11, 2020, the court denied the plaintiffs’ motion to certify the CTF class and granted their motion to certify the Plan class. On April 27, 2020, the Ninth Circuit denied the plaintiffs’ request to immediately appeal the class certification ruling. On September 24, 2020, the parties cross-moved for summary judgment, both of which were denied on January 12, 2021. On February 5, 2021, the parties reached a settlement in principle for $9.65 million to resolve the remaining claims in the lawsuit, and this settlement was presented to the court for approval on March 23, 2021. There were no class member objections to the settlement following notice, and the court granted final approval of the settlement on November 3, 2021. We expect a final judgment to be entered in the district court, and barring the filing of any appeals within the appeal period, the resolution of the case will be final.

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 ~~September~~June 30, ~~2021~~2022 and subject to this type of indemnification was ~~$279~~$268 billion. In the Company’s capacity as lending agent, cash and securities totaling ~~$299~~$284 billion were held as collateral for indemnified securities on loan at ~~September~~June 30, ~~2021.~~2022. The fair value of these indemnifications was not material at ~~September~~June 30, ~~2021.~~2022.

The table below presents detail of revenue for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 and includes the product mix of investment advisory, administration fees and securities lending revenue, and performance fees.

	Three Months Ended				Nine Months Ended				Three Months Ended				Six Months Ended
	September 30,				September 30,				June 30,				June 30,
(in millions)	2021		2020		2021		2020		2022		2021		2022		2021
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	674	$	457	$	1,891	$	1,236	$	550	$	641	$	1,166	$	1,217
ETFs		1,212		880		3,436		2,551		1,103		1,156		2,261		2,224
Non-ETF Index		207		164		581		505		186		198		373		374
Equity subtotal		2,093		1,501		5,908		4,292		1,839		1,995		3,800		3,815
Fixed income:
Active		561		498		1,631		1,443		503		545		1,037		1,070
ETFs		304		297		893		817		274		294		563		589
Non-ETF Index		121		113		350		354		102		116		220		229
Fixed income subtotal		986		908		2,874		2,614		879		955		1,820		1,888
Multi-asset		369		289		1,041		852		331		344		690		672
Alternatives:
Illiquid alternatives		166		140		501		416		184		167		363		335
Liquid alternatives		163		132		460		361		161		150		328		297
Currency and commodities⁽¹⁾		55		51		163		118
Currency and commodities⁽¹⁾										62		55		118		108
Alternatives subtotal		384		323		1,124		895		407		372		809		740
Long-term		3,832		3,021		10,947		8,653		3,456		3,666		7,119		7,115
Cash management		111		204		345		593		232		91		402		234
Total investment advisory, administration fees and securities lending revenue		3,943		3,225		11,292		9,246		3,688		3,757		7,521		7,349
Investment advisory performance fees:
Equity		8		4		70		29		3		36		15		62
Fixed income		2		9		31		13		13		15		22		29
Multi-asset		—		10		17		13		7		9		12		17
Alternatives:
Illiquid alternatives		50		6		147		55		65		90		102		97
Liquid alternatives		285		503		549		575		18		190		53		264
Alternatives subtotal		335		509		696		630		83		280		155		361
Total performance fees		345		532		814		685		106		340		204		469
Technology services revenue		320		282		942		834		332		316		673		622
Distribution fees:
Retrocessions		294		188		796		519		269		264		548		502
12b-1 fees (US mutual fund distribution fees)		91		85		263		254		80		87		168		172
Other		16		15		51		44		12		18		26		35
Total distribution fees		401		288		1,110		817		361		369		742		709
Advisory and other revenue:
Advisory		13		14		37		48		15		9		31		24
Other		28		28		73		97		24		29		54		45
Total advisory and other revenue		41		42		110		145		39		38		85		69
Total revenue	$	5,050	$	4,369	$	14,268	$	11,727	$	4,526	$	4,820	$	9,225	$	9,218

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

	Three Months Ended				Nine Months Ended				Three Months Ended				Six Months Ended
	September 30,				September 30,				June 30,				June 30,
(in millions)	2021		2020		2021		2020		2022		2021		2022		2021
By client type:
Retail	$	1,291	$	938	$	3,647	$	2,635	$	1,139	$	1,231	$	2,363	$	2,356
ETFs		1,571		1,228		4,493		3,487		1,436		1,505		2,937		2,922
Institutional:
Active		684		594		1,991		1,714		636		657		1,311		1,307
Index		286		261		816		817		245		273		508		530
Total institutional		970		855		2,807		2,531		881		930		1,819		1,837
Long-term		3,832		3,021		10,947		8,653		3,456		3,666		7,119		7,115
Cash management		111		204		345		593		232		91		402		234
Total	$	3,943	$	3,225	$	11,292	$	9,246	$	3,688	$	3,757	$	7,521	$	7,349

By investment style:
Active	$	1,928	$	1,511	$	5,509	$	4,292	$	1,727	$	1,842	$	3,578	$	3,581
Index and ETFs		1,904		1,510		5,438		4,361		1,729		1,824		3,541		3,534
Long-term		3,832		3,021		10,947		8,653		3,456		3,666		7,119		7,115
Cash management		111		204		345		593		232		91		402		234
Total	$	3,943	$	3,225	$	11,292	$	9,246	$	3,688	$	3,757	$	7,521	$	7,349

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 ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:

	Remainder of												Remainder of
(in millions)	2020			2021		2022		2023	Thereafter		Total		2021			2022		2023		2024	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	33	$	125	$	108	$	92	$	61	$	419
Alternatives⁽¹⁾⁽²⁾													$	86	$	168	$	137	$	82	$	51	$	524

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 ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:

	Three Months Ended					Nine Months Ended						Three Months Ended						Six Months Ended
	September 30,					September 30,						June 30,						June 30,
(in millions)	2021			2020		2021			2020			2022			2021			2022			2021
Beginning balance	$	1,132		$	418	$	584		$	483		$	1,699		$	748		$	1,508		$	584
Net increase (decrease) in unrealized allocations		277			29		904			4			(46	)		461			177			627
Performance fee revenue recognized		(43	)		—		(122	)		(40	)		(61	)		(77	)		(93	)		(79	)
Ending balance	$	1,366		$	447	$	1,366		$	447		$	1,592		$	1,132		$	1,592		$	1,132

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 ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:

	Remainder of												Remainder of
(in millions)	2020			2021		2022		2023	Thereafter		Total		2021			2022		2023		2024	Thereafter		Total
Technology services revenue⁽¹⁾⁽²⁾	$	37	$	95	$	47	$	22	$	18	$	219
Technology services revenue⁽¹⁾⁽²⁾													$	67	$	71	$	40	$	20	$	14	$	212

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 ~~September~~June 30, ~~2021,~~2022, the estimated fixed minimum fees for the remainder of the year approximated ~~$193~~$425 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 ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, which is included in other liabilities on the condensed consolidated statements of financial condition:

	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
	September 30,						September 30,						June 30,						June 30,
(in millions)	2021			2020			2021			2020			2022			2021			2022			2021
Beginning balance	$	107		$	108		$	123		$	116		$	113		$	111		$	122		$	123
Additions ⁽¹⁾		28			30			72			88
Additions⁽¹⁾														27			26			49			44
Revenue recognized that was included in the beginning balance		(31	)		(33	)		(91	)		(99	)		(32	)		(30	)		(63	)		(60	)
Ending balance	$	104		$	105		$	104		$	105		$	108		$	107		$	108		$	107

Restricted stock and restricted stock units (“RSUs”) activity for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 is summarized below.

Outstanding at	Restricted Stock and RSUs			Weighted- Average Grant Date Fair Value		Restricted Stock and RSUs			Weighted- Average Grant Date Fair Value
December 31, 2020		2,139,930		$	489.81
December 31, 2021							2,183,017		$	586.45
Granted		875,480		$	747.49		733,872		$	830.24
Converted		(745,474	)	$	506.78		(840,871	)	$	500.83
Forfeited		(54,874	)	$	571.05		(43,037	)	$	703.76
September 30, 2021		2,215,062		$	583.93
June 30, 2022							2,032,981		$	707.39

In January ~~2021,~~2022, the Company granted ~~470,253~~498,633 RSUs or shares of restricted stock to employees as part of ~~2020~~2021 annual incentive compensation that vest ratably over three years from the date of grant and ~~247,621~~197,817 RSUs or shares of restricted stock to employees that cliff vest 100% on January 31, ~~2024.~~2025. The Company values restricted stock and RSUs at their grant-date fair value as measured by BlackRock’s common stock price. The total fair market value of RSUs/restricted stock granted to employees during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~$654~~$609 million.

At ~~September~~June 30, ~~2021,~~2022, the intrinsic value of outstanding RSUs was ~~$1.9~~$1.2 billion, reflecting a closing stock price of ~~$838.66.~~$609.04.

At ~~September~~June 30, ~~2021,~~2022, total unrecognized stock-based compensation expense related to unvested RSUs was ~~$607~~$743 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~1.2~~1.4 years.

Performance-based RSU activity for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 is summarized below.

Outstanding at	Performance- Based RSUs			Weighted- Average Grant Date Fair Value		Performance- Based RSUs			Weighted- Average Grant Date Fair Value
December 31, 2020		700,217		$	494.51
December 31, 2021							668,805		$	533.48
Granted		162,029		$	739.22		143,846		$	820.28
Additional shares granted due to attainment of performance measures		4,545		$	566.44
Additional shares due to attainment of performance measures							111,991		$	410.32
Converted		(193,872	)	$	566.44		(385,134	)	$	410.32
Forfeited		(1,584	)	$	410.32		(8,454	)	$	662.34
September 30, 2021		671,335		$	533.48
June 30, 2022							531,054		$	672.47

In January ~~2021,~~2022, the Company granted ~~162,029~~143,846 performance-based RSUs ~~to certain employees~~ that cliff vest 100% on January 31, ~~2024.~~2025. 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 ~~2021,~~2022, the Company granted ~~4,545~~111,991 additional RSUs to certain employees based on the attainment of Company performance measures during the performance period.

The Company ~~initially~~ 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 to employees during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~$122~~$164 million.

At ~~September~~June 30, ~~2021,~~2022, the intrinsic value of outstanding performance-based RSUs was ~~$563~~$323 million, reflecting a closing stock price of ~~$838.66.~~$609.04.

At ~~September~~June 30, ~~2021,~~2022, total unrecognized stock-based compensation expense related to unvested performance-based awards was ~~$190~~$197 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~1.2~~1.4 years.

See Note 18, Stock-Based Compensation, in the ~~2020~~2021 Form 10-K for more information on performance-based RSUs.

Stock option activity for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 is summarized below.

Outstanding at	Shares Under Option			Weighted Average Exercise Price		Shares Under Option			Weighted Average Exercise Price
December 31, 2020		1,915,792		$	513.50
December 31, 2021							1,817,923		$	513.50
Forfeited		(28,742	)	$	513.50		(60,392	)	$	513.50
September 30, 2021		1,887,050		$	513.50
June 30, 2022							1,757,531		$	513.50

Vesting of the performance-based stock options is 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. If both hurdles are achieved, the award will vest in 3 equal installments at the end of 2022, 2023 and 2024, respectively. Both hurdles have been achieved. Vested options are exercisable for up to nine years following the grant date. The ~~stock price hurdle was achieved in December of 2020.~~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.

At ~~September~~June 30, ~~2021,~~2022, total unrecognized stock-based compensation expense related to unvested performance-based stock options was ~~$55~~$32 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~2.2~~1.4 years. At ~~September~~June 30, ~~2021,~~2022, the weighted-average remaining life of the awards is approximately ~~5.2~~4.4 years.

See Note 18, Stock-Based Compensation, in the ~~2020~~2021 Form 10-K for more information on performance-based stock options.

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 ~~September~~June 30, ~~2021,~~2022, the Company was required to maintain approximately ~~$2.4~~$2.2 billion in net capital in certain regulated subsidiaries, including ~~BTC~~BlackRock Institutional Trust Company, N.A. (a wholly owned subsidiary of the Company that 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.

The following table presents changes in AOCI for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:

	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
	September 30,						September 30,						June 30,						June 30,
(in millions)	2021			2020			2021			2020			2022			2021			2022			2021
Beginning balance	$	(388	)	$	(781	)	$	(337	)	$	(571	)	$	(675	)	$	(411	)	$	(550	)	$	(337	)
Foreign currency translation adjustments⁽¹⁾		(138	)		180			(189	)		(30	)
Foreign currency translation adjustments⁽¹⁾														(416	)		23			(541	)		(51	)
Ending balance	$	(526	)	$	(601	)	$	(526	)	$	(601	)	$	(1,091	)	$	(388	)	$	(1,091	)	$	(388	)

Share Repurchases. During the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, the Company repurchased ~~1.1~~1.4 million common shares under the Company’s existing share repurchase program for approximately ~~$900 million.~~$1 billion. At ~~September~~June 30, ~~2021,~~2022, there were ~~3.9~~approximately 2.2 million shares still authorized to be repurchased under the ~~program.~~program

Income tax expense for the ~~nine~~six months ended ~~September~~June 30, 2022 included $133 million of discrete tax benefits related to stock-based compensation awards and the resolution of certain outstanding tax matters. In addition, income tax expense for the six months ended June 30, 2022 included $18 million of net noncash tax benefits related to the revaluation of certain deferred income tax liabilities.

Income tax expense for the three and six months ended June 30, 2021 included $171 million of noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the UKUnited Kingdom increasing its corporate tax rate. Income tax expense for the ~~nine~~six months ended ~~September~~June 30, 2021 also ~~reflected $42~~included $39 million of discrete tax benefits ~~primarily~~ related to stock-based compensation ~~awards that vested in the first quarter of 2021.~~

Income tax expense for the nine months ended September 30, 2020, included a discrete tax benefit of $241 million recognized in connection with the previously reported charitable contribution of BlackRock’s remaining 20% stake in PennyMac Financial Services, Inc. (the “Charitable Contribution”) and $78 million of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of 2020.

~~The three and nine months ended September 30, 2020 income tax expense also included the previously disclosed $54 million noncash net expense related to legislation enacted in the United Kingdom.~~

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 under the treasury stock method:

	Three Months Ended				Nine Months Ended				Three Months Ended				Six Months Ended
	September 30,				September 30,				June 30,				June 30,
(in millions, except shares and per share data)	2021		2020		2021		2020		2022		2021		2022		2021
Net income attributable to BlackRock, Inc.	$	1,681	$	1,364	$	4,258	$	3,384	$	1,077	$	1,378	$	2,513	$	2,577
Basic weighted-average shares outstanding		152,120,927		152,488,073		152,375,504		153,816,544		151,292,580		152,443,039		151,511,496		152,504,902
Dilutive effect of:
Nonparticipating RSUs		1,474,725		1,254,191		1,354,405		1,143,268		835,374		1,304,463		1,032,540		1,294,242
Stock options		747,625		—		622,681		—		324,366		670,079		446,111		560,209
Total diluted weighted-average shares outstanding		154,343,277		153,742,264		154,352,590		154,959,812		152,452,320		154,417,581		152,990,147		154,359,353
Basic earnings per share	$	11.05	$	8.94	$	27.94	$	22.00	$	7.12	$	9.04	$	16.59	$	16.90
Diluted earnings per share	$	10.89	$	8.87	$	27.59	$	21.84	$	7.06	$	8.92	$	16.43	$	16.69

For the three and six months ended June 30, 2022, 560,841 and 492,045 RSUs, respectively, were excluded from the calculation of diluted EPS because to include them would have an anti-dilutive effect. The amount of anti-dilutive RSUs was immaterial for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021 and 2020.~~2021. Certain performance-based RSUs were excluded from the diluted EPS calculation because the designated contingency was not met for the three and ~~nine~~six months ended ~~September~~June 30, 2022 and 2021, ~~and 2020,~~ respectively. ~~In addition, performance-based stock options were excluded from the diluted EPS calculation for the three and nine months ended September 30, 2020 because the designated contingency was not met.~~

The Company’s management directs BlackRock’s operations as 1one business, the asset management business. The Company utilizes a consolidated approach to assess performance and allocate resources. As such, the Company operates in ~~one~~1 business segment.

The following table illustrates total revenue for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 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				Nine Months Ended				Three Months Ended				Six Months Ended
(in millions)	September 30,				September 30,				June 30,				June 30,
Revenue	2021		2020		2021		2020		2022		2021		2022		2021
Americas	$	3,127	$	2,631	$	9,095	$	7,581	$	3,014	$	3,158	$	6,103	$	5,968
Europe		1,706		1,574		4,533		3,661		1,307		1,440		2,703		2,827
Asia-Pacific		217		164		640		485		205		222		419		423
Total revenue	$	5,050	$	4,369	$	14,268	$	11,727	$	4,526	$	4,820	$	9,225	$	9,218

See Note 16, 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 ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located.

(in millions)	September 30,		December 31,		June 30,		December 31,
Long-lived Assets	2021		2020		2022		2021
Americas	$	14,623	$	13,784	$	14,828	$	14,675
Europe		1,344		1,360		1,324		1,341
Asia-Pacific		96		88		94		97
Total long-lived assets	$	16,063	$	15,232	$	16,246	$	16,113

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

The Company conducted a review for 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

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. 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) a pandemic or health crisis, including the COVID-19 pandemic, and its continued impact on financial institutions, the global economy or capital markets, as well as BlackRock’s products, clients, vendors and employees, and BlackRock’s results of operations, the full extent of which may be unknown; (2) the introduction, withdrawal, success and timing of business initiatives and strategies; (3) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management (“AUM”); (4) the relative and absolute investment performance of BlackRock’s investment products; (5) BlackRock’s ability to develop new products and services that address client preferences; (6) the impact of increased competition; (7) the impact of future acquisitions or divestitures; (8) BlackRock’s ability to integrate acquired businesses successfully; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and ~~cyber security~~cybersecurity protection; (12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) geopolitical unrest, terrorist activities, civil ~~unrest,~~or international hostilities, including the military conflict between Russia and Ukraine, and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (18) climate change-related risks to BlackRock's business, products, operations and clients; (19) the ability to attract and retain highly talented professionals; ~~(19)~~(20) fluctuations in the carrying value of BlackRock’s economic investments; ~~(20)~~(21) 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; ~~(21)~~(22) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; ~~(22)~~(23) the failure by a key ~~vendor~~third-party providers of BlackRock to fulfill ~~its~~their obligations to the Company; ~~(23)~~(24) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; ~~(24)~~(25) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds (“ETF”) platform; ~~(25)~~(26) 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 ~~(26)~~(27) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm with ~~$9.5~~$8.5 trillion of AUM at ~~September~~June 30, ~~2021.~~2022. With approximately ~~18,000~~18,900 employees in more than 30 countries who serve clients in over 100 countries across the globe, BlackRock provides a broad range of investment management and technology services to institutional and retail clients worldwide.

BlackRock’s diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes enables the Company to tailor investment outcomes 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, 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 Wealth, eFront, ~~Cachematrix~~ and ~~FutureAdvisor,~~Cachematrix, as well as advisory services and solutions to a broad base of institutional and wealth management 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 and disclosures, while not required to be recast, were reclassified to ensure comparability with current period classifications.

BlackRock continues to actively monitor COVID-19 developments and their potential impact on the Company’s employees, business and operations, particularly in jurisdictions where BlackRock has significant employee populations and/or business activity.

The aggregate extent to which COVID-19, ~~and~~including existing and new variants ~~of COVID-19, affect~~and its continued related impact on the global economy, affects BlackRock’s business, results of operations and financial condition, will depend on future developments that are highly uncertain and cannot be predicted, including the scope and further duration of the pandemic and ~~any~~ recovery period, the emergence and spread of additional variants of the COVID-19 virus, the continuing prevalence of severe, unconstrained and/or escalating rates of infection in certain countries and regions, and the availability, adoption and efficacy of treatments and ~~vaccines.~~vaccines and future actions taken by governmental authorities, central banks, and other third parties in response to the pandemic. See Part ~~II,~~I, Item 1A - Risk Factors, of ~~this filing~~the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission on February 25, 2022 (“2021 Form 10-K”), for further information on the possible future impact of the COVID-19 pandemic on BlackRock’s business, results of operations and financial condition.

On December 31, 2020, the United Kingdom (“UK”) and the European Union (“EU”) reverted to being distinct regulatory, legal and customs territories. The UK and the EU concluded a free trade agreement, known as the “EU-UK Trade and Cooperation Agreement.” The agreement does not include any substantive provisions governing cross-border trade in financial services between the UK and the EU. As a result, since January 1, 2021, cross-border financial services trade between the UK and the EU has been governed by their respective financial services regulations and market access regimes. BlackRock implemented a number of steps to prepare for this outcome. These steps, which may add complexity to BlackRock’s future European operations, include effecting organizational, governance and operational changes, applying for and receiving additional licenses and permissions in the EU, and engaging in client communications. In addition, depending on how the future relationship between the UK and the EU develops, BlackRock may experience further organizational and operational challenges and incur additional costs in connection with its European operations, particularly with regard to delegation and cross-border marketing of funds, which may impede the Company’s growth or impact its financial performance.

	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
	September 30,						September 30,						June 30,						June 30,
(in millions, except shares and per share data)	2021			2020			2021			2020			2022			2021			2022			2021
GAAP basis:
Total revenue	$	5,050		$	4,369		$	14,268		$	11,727		$	4,526		$	4,820		$	9,225		$	9,218
Total expense		3,115			2,612			8,857			7,880			2,858			2,889			5,793			5,742
Operating income	$	1,935		$	1,757		$	5,411		$	3,847		$	1,668		$	1,931		$	3,432		$	3,476
Operating margin		38.3	%		40.2	%		37.9	%		32.8	%		36.9	%		40.1	%		37.2	%		37.7	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests		264			71			337			348			(233	)		101			(298	)		73
Income tax expense		(518	)		(464	)		(1,490	)		(811	)		358			654			621			972
Net income attributable to BlackRock	$	1,681		$	1,364		$	4,258		$	3,384		$	1,077		$	1,378		$	2,513		$	2,577
Diluted earnings per common share	$	10.89		$	8.87		$	27.59		$	21.84		$	7.06		$	8.92		$	16.43		$	16.69
Effective tax rate		23.6	%		25.4	%		25.9	%		19.3	%		24.9	%		32.2	%		19.8	%		27.4	%
As adjusted⁽¹⁾:
Operating income	$	1,946		$	1,757		$	5,422		$	4,436		$	1,727		$	2,016		$	3,549		$	3,615
Operating margin		45.8	%		47.0	%		45.1	%		44.3	%		43.7	%		46.9	%		43.9	%		46.4	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests	$	264		$	71		$	337		$	226		$	(233	)	$	101		$	(298	)	$	73
Net income attributable to BlackRock	$	1,690		$	1,418		$	4,438		$	3,664		$	1,122		$	1,614		$	2,584		$	2,854
Diluted earnings per common share	$	10.95		$	9.22		$	28.75		$	23.64		$	7.36		$	10.45		$	16.89		$	18.49
Effective tax rate		23.6	%		22.5	%		22.9	%		21.4	%		24.9	%		23.8	%		20.5	%		22.6	%
Other:
AUM (end of period)	$	9,463,662		$	7,808,497		$	9,463,662		$	7,808,497
Assets under management (end of period)													$	8,487,410		$	9,495,993		$	8,487,410		$	9,495,993
Diluted weighted-average common shares outstanding		154,343,277			153,742,264			154,352,590			154,959,812			152,452,320			154,417,581			152,990,147			154,359,353
Shares outstanding (end of period)		151,988,234			152,496,403			151,988,234			152,496,403			150,966,457			152,298,784			150,966,457			152,298,784
Book value per share⁽²⁾	$	242.24		$	222.12		$	242.24		$	222.12		$	245.68		$	236.59		$	245.68		$	236.59
Cash dividends declared and paid per share	$	4.13		$	3.63		$	12.39		$	10.89		$	4.88		$	4.13		$	9.76		$	8.26

THREE MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2021~~2022 COMPARED WITH THREE MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021

GAAP. Operating income of ~~$1,935~~$1,668 million ~~increased $178~~decreased $263 million and operating margin of ~~38.3%~~36.9% decreased ~~190~~320 bps from the ~~third~~second quarter of ~~2020. Operating~~2021. Decreases in operating income and operating margin ~~reflected~~were driven by the impact of significantly lower markets, the negative impact of foreign exchange movements and lower performance fees, partially offset by organic base fee growth, the elimination of yield-related fee waivers on money market ~~gains as well as strong organic growth and~~funds, higher technology services revenue ~~offset by~~and lower performance fees and higher expense, driven by higher general and administration expense, including higher transaction-related expense and product launch costs in the current quarter, higher employee compensation and benefits expense, and higher direct fund expense~~. Product launch costs of $99 million in the third quarter of 2021 were primarily associated with the September 2021 close of the BlackRock ESG Capital Allocation Trust.~~ ~~Product launch costs of $83 million in the third quarter of 2020 were primarily associated with the BlackRock Capital Allocation Trust.~~ Operating income and operating margin also reflected $11 million of noncash occupancy expense related to the lease of office space for the Company’s future headquarters located at 50 Hudson Yards in New York (“Lease cost – Hudson Yards”), which it expects to begin to occupy in late 2022 (and begin lease payments in May 2023).

expense. Nonoperating income (expense) less net income (loss) attributable to noncontrolling interests (“NCI”) ~~increased $193~~decreased $334 million from the ~~third~~second quarter of ~~2020,~~2021, driven primarily ~~driven~~ by ~~non-cash gains related to our strategic minority investments in iCapital Network, Inc. (“iCapital”) and Scalable Capital Limited (“Scalable”) and higher~~ mark-to-market ~~gains~~losses on the Company’s ~~private equity~~un-hedged seed capital, co-investment ~~portfolio.~~portfolios and certain minority investments.

Earnings per diluted common share ~~increased $2.02,~~decreased $1.86, or ~~23%~~21%, from the ~~third~~second quarter of ~~2020,~~2021, primarily reflecting ~~higher~~lower operating and nonoperating income, ~~and~~partially offset by a lower effective tax rate in the current ~~quarter~~.

~~As Adjusted.~~ ~~Operating income of $1,946 million increased $189 million and operating margin of 45.8% decreased 120 bps from the third~~quarter. Second quarter ~~of 2020. Earnings perdiluted common share increased $1.73, or 19%, from the third quarter of 2020. The impact of the Lease cost – Hudson Yards described above has been excluded from as adjusted results for the third quarter of 2021. Income~~2021 income tax expense as adjusted, for the third quarter of 2020 excluded a $54 million noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the UK increasing its corporate tax rate.

~~NINE MONTHS ENDED SEPTEMBER 30, 2021 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, 2020~~

~~GAAP.~~Operating income of $5,411 million increased $1,564 million and operating margin of 37.9% increased 510 bps from the nine months ended September 30, 2020. Increases in operating income and operating margin reflected the impact of $589 million related to the previously reported charitable contribution of BlackRock’s remaining 20% stake in PennyMac Financial Services, Inc. (the “Charitable Contribution”) during the nine months ended September 30, 2020. Operating income and operating margin also reflected higher investment advisory and administration fees (collectively “base fees”), performance fees and technology services revenue, partially offset by higher employee compensation and benefits expense, higher volume-related expense and higher product launch costs in 2021.

Nonoperating income (expense) less net income (loss) attributable to NCI decreased $11 million from the nine months ended September 30, 2020, reflecting the impact of a pre-tax gain of approximately $240 million in connection with a recapitalization of iCapital and $122 million pre-tax gain related to the Charitable Contribution during the nine months ended September 30, 2020, partially offset by the impact of non-cash gains related to iCapital and Scalable and higher mark-to-market gains on the Company’s private equity co-investment portfolio during the nine months ended September 30, 2021.

~~Income tax expense for the nine months ended September 30, 2021 reflected the~~included $171 million of noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the UK increasing its corporate tax rate. See Income Tax Expense within Discussion of Financial Results for more information.

As Adjusted.Operating income of $1,727 million decreased $289 million and operating margin of 43.7% decreased 320 bps from the second quarter of 2021. Earnings per diluted common share decreased $3.09, or 30%, from the second quarter of 2021. Income tax expense, as adjusted, for the second quarter 2021 excluded $171 million of noncash net expense described above.

GAAP.Operating income of $3,432 million decreased $44 million and operating margin of 37.2% decreased 50 bps from the six months ended June 30, 2021. Decreases in operating income and operating margin reflected lower performance fees and higher volume related expense, partially offset by higher investment advisory and administration fees (collectively “base fees”), higher technology services revenue, lower employee compensation and benefits expense and lower general and administration expense, including the impact of $178 million of product launch costs incurred in 2021.

Nonoperating income (expense) less net income (loss) attributable to NCI decreased $371 million from the six months ended June 30, 2021, driven primarily by mark-to-market losses on the Company’s un-hedged seed capital, co-investment portfolios and certain minority investments during the six months ended June 30, 2022.

Income tax expense for the ~~nine~~six months ended ~~September~~June 30, ~~2020 included a discrete tax benefit of $241~~2022 reflected $133 million recognized in connection with the Charitable Contribution and a $54 million noncash net expense related to the revaluation of certain deferred tax assets and liabilities described above. Income tax expense for the nine months ended September 30, 2021 and 2020 also reflected $42 million and $78 million, respectively, of discrete tax ~~benefits, including~~ benefits related to stock-based compensation awards that vested in 2022 and the ~~first quarter~~resolution of ~~each year.~~certain outstanding tax matters, and $18 million of net noncash tax benefits related to the revaluation of certain deferred income tax liabilities. Income tax expense for the six months ended June 30, 2021 included $171 million of noncash net expense described above and $39 million of discrete tax benefits related to stock-based compensation awards that vested in 2021. See Income Tax Expense within Discussion of Financial Results for more information.

Earnings per diluted common share ~~increased $5.75,~~decreased $0.26 or ~~26%~~2%, from the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, reflecting the impact of the Charitable Contribution incurred in the nine months ended September 30, 2020. The increase in earnings per diluted common share also included higher revenue, partially offset by higher product launch costs, lower ~~nonoperating income, and a higher effective tax rate in the nine months ended September 30, 2021.~~

~~As Adjusted.~~ Operating income of $5,422 million increased $986 million and operating margin of 45.1% increased 80 bps from the nine months ended September 30, 2020. Earnings per diluted common share increased $5.11, or 22%, from the nine months ended September 30, 2020,~~primarily due to higher~~ operating and nonoperating income, partially offset by a ~~higher~~lower effective tax ~~rate in~~rate.

As Adjusted. Operating income of $3,549 million decreased $66 million and operating margin of 43.9% decreased 250 bps from the ~~nine~~six months ended ~~September~~June 30, 2021.~~Income tax expense for the nine months ended September 30, 2021 and 2020 excluded the $171 million and $54 million, respectively,~~ The impact of ~~noncash net expense described above.~~ ~~The~~ ~~financial impact related to the Lease cost – Hudson Yards and the Charitable Contribution~~product launch costs has been excluded from as adjusted ~~results~~operating margin for the ~~nine~~six months ended ~~September~~June 30, 2021.

Earnings per diluted common share decreased $1.60, or 9%, from the six months ended June 30, 2021, primarily driven by lower nonoperating income in the six months ended June 30, 2022.Income tax expense for the six months ended June 30, 2022 and ~~2020, respectively.~~2021 excluded the $18 million net noncash benefit and the $171 million net noncash expense, respectively, described above.

See Non-GAAP Financial Measures for further information on as adjusted items and the reconciliation to accounting principles generally accepted in the United States (“GAAP”). Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include new adjustments. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments. For further information, refer to the Current Report on Form 8-K furnished on April 13, 2022.

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

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 ~~the~~ comparability ~~of this information~~ for the reporting periods presented. Non-GAAP measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP measures may not be comparable to other similarly titled measures of other companies.

~~Management uses both GAAP~~Beginning in the first quarter of 2022, the Company updated its definition of operating income, as adjusted, operating margin, as adjusted, and ~~non-GAAP financial~~net income attributable to BlackRock, Inc., as adjusted, to include adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Such measures ~~in evaluating BlackRock’s financial performance. Adjustments~~have been recast for 2021 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.reflect the inclusion of such new adjustments. For further information, refer to the Current Report on Form 8-K furnished on April 13, 2022.

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

	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
	September 30,						September 30,						June 30,						June 30,
(in millions)	2021			2020			2021			2020			2022			2021			2022			2021
Operating income, GAAP basis	$	1,935		$	1,757		$	5,411		$	3,847		$	1,668		$	1,931		$	3,432		$	3,476
Non-GAAP expense adjustment:
Lease costs - Hudson Yards		11			—			11			—
Charitable Contribution		—			—			—			589
Non-GAAP expense adjustments:
Amortization of intangible assets														38		37			76			71
Acquisition-related compensation costs														6		47			13			64
Contingent consideration fair value adjustments														—		1			1			4
Lease cost - Hudson Yards														15			—			27			—
Operating income, as adjusted		1,946			1,757			5,422			4,436			1,727			2,016			3,549			3,615
Product launch costs and commissions		99			83			284			170			—			—			—			185
Operating income used for operating margin measurement	$	2,045		$	1,840		$	5,706		$	4,606		$	1,727		$	2,016		$	3,549		$	3,800
Revenue, GAAP basis	$	5,050		$	4,369		$	14,268		$	11,727		$	4,526		$	4,820		$	9,225		$	9,218
Non-GAAP adjustments:
Distribution fees		(401	)		(288	)		(1,110	)		(817	)		(361	)		(369	)		(742	)		(709	)
Investment advisory fees		(184	)		(168	)		(503	)		(513	)		(211	)		(154	)		(404	)		(319	)
Revenue used for operating margin measurement	$	4,465		$	3,913		$	12,655		$	10,397		$	3,954		$	4,297		$	8,079		$	8,190
Operating margin, GAAP basis		38.3	%		40.2	%		37.9	%		32.8	%		36.9	%		40.1	%		37.2	%		37.7	%
Operating margin, as adjusted		45.8	%		47.0	%		45.1	%		44.3	%		43.7	%		46.9	%		43.9	%		46.4	%

Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, ~~and~~ to determine the long-term and annual compensation of the Company’s senior-level ~~employees. Furthermore, this metric is used~~employees and to evaluate the Company’s relative performance against industry ~~peers, as it~~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.

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

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

	Three Months Ended				Nine Months Ended				Three Months Ended				Six Months Ended
	September 30,				September 30,				June 30,				June 30,
(in millions, except per share data)	2021		2020		2021		2020		2022		2021		2022			2021
Net income attributable to BlackRock, Inc., GAAP basis	$	1,681	$	1,364	$	4,258	$	3,384	$	1,077	$	1,378	$	2,513		$	2,577
Non-GAAP adjustments:
Lease costs - Hudson Yards, net of tax		9		—		9		—
Charitable Contribution, net of tax		—		—		—		226
Amortization of intangible assets, net of tax										29	28			58		54
Acquisition-related compensation costs, net of tax										5	36			10		49
Contingent consideration fair value adjustments, net of tax										—		1		1		3
Lease cost - Hudson Yards, net of tax										11		—		20			—
Income tax matters		—		54		171		54		—		171		(18	)		171
Net income attributable to BlackRock, Inc., as adjusted	$	1,690	$	1,418	$	4,438	$	3,664	$	1,122	$	1,614	$	2,584		$	2,854
Diluted weighted-average common shares outstanding		154.3		153.7		154.4		155.0		152.5		154.4		153.0			154.4
Diluted earnings per common share, GAAP basis	$	10.89	$	8.87	$	27.59	$	21.84	$	7.06	$	8.92	$	16.43		$	16.69
Diluted earnings per common share, as adjusted	$	10.95	$	9.22	$	28.75	$	23.64	$	7.36	$	10.45	$	16.89		$	18.49

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~~note (1) above regarding operating income, as adjusted, and operating margin, ~~as adjusted, and nonoperating income (expense), less net income (loss) attributable to NCI,~~ as adjusted, for information on the updated presentation of non-GAAP expense adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions, as well as previously reported Lease cost – Hudson ~~Yards and Charitable Contribution.~~

The nine months ended September 30, 2020 included a discrete tax benefit of $241 million that was recognized in connection with the Charitable Contribution. The discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the Charitable Contribution. Amounts for income tax matters represent net noncash (benefits) expense primarily associated with the revaluation of certain deferred tax liabilities related to intangible assets and goodwill as a result of tax rate changes. These amounts have been excluded from the as adjusted results as these items will not have a cash flow impact and to ensure comparability among periods presented.Yards.

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

AUM for reporting purposes generally is based upon how ~~base~~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 and Net Inflows (Outflows) by Client Type and Product Type																	AUM and Net Inflows (Outflows) by Client Type and Product Type
	AUM								Net inflows (outflows)
									Three Months			Nine Months			Twelve Months
									Ended			Ended			Ended			AUM								Net inflows (outflows)
	September 30,		June 30,		December 31,		September 30,		September 30,			September 30,			September 30,			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)	2021		2021		2020		2020		2021			2021			2021			2022		2022		2021		2021		2022			2022			2022
Retail	$	1,000,627	$	995,483	$	845,917	$	746,264	$	22,672		$	80,572		$	115,889		$	863,425	$	989,123	$	1,040,053	$	995,483	$	(9,973	)	$	191		$	44,386
ETFs		3,038,751		3,031,505		2,669,007		2,321,335		57,954			201,591			280,344			2,784,296		3,150,496		3,267,354		3,031,505		52,103			108,312			270,209
Institutional:
Active		1,638,545		1,624,049		1,524,462		1,427,122		25,558			85,558			86,913			1,510,862		1,676,167		1,756,717		1,624,049		5,275			21,673			130,738
Index		3,063,692		3,097,073		2,948,683		2,641,408		(8,212	)		(77,405	)		(76,633	)		2,580,603		3,019,764		3,181,652		3,097,073		21,208			52,182			3,549
Institutional subtotal		4,702,237		4,721,122		4,473,145		4,068,530		17,346			8,153			10,280			4,091,465		4,695,931		4,938,369		4,721,122		26,483			73,855			134,287
Long-term		8,741,615		8,748,110		7,988,069		7,136,129		97,972			290,316			406,513			7,739,186		8,835,550		9,245,776		8,748,110		68,613			182,358			448,882
Cash management		712,015		727,603		666,252		652,002		(12,398	)		50,132			59,076			739,457		724,939		755,057		727,603		21,218			(5,876	)		25,638
Advisory⁽¹⁾		10,032		20,280		22,359		20,366		(10,260	)		(12,530	)		(10,738	)		8,767		9,025		9,310		20,280		(258	)		(543	)		(11,530	)
Total	$	9,463,662	$	9,495,993	$	8,676,680	$	7,808,497	$	75,314		$	327,918		$	454,851		$	8,487,410	$	9,569,514	$	10,010,143	$	9,495,993	$	89,573		$	175,939		$	462,990

AUM and Net Inflows (Outflows) by Investment Style and Product Type	AUM and Net Inflows (Outflows) by Investment Style and Product Type																	AUM and Net Inflows (Outflows) by Investment Style and Product Type
	AUM								Net inflows (outflows)									AUM								Net inflows (outflows)
									Three Months			Nine Months			Twelve Months			June 30,		March 31,		December 31,		June 30,		Three Months Ended June 30,			Six Months Ended June 30,			Twelve Months Ended June 30,
									Ended			Ended			Ended
	September 30,		June 30,		December 31,		September 30,		September 30,			September 30,			September 30,
(in millions)	2021		2021		2020		2020		2021			2021			2021			2022		2022		2021		2021		2022			2022			2022
Active	$	2,463,867	$	2,446,632	$	2,250,887	$	2,072,673	$	44,528		$	166,233		$	197,293		$	2,210,648	$	2,479,140	$	2,606,325	$	2,446,632	$	(10,339	)	$	9,699		$	154,734
Index and ETFs		6,277,748		6,301,478		5,737,182		5,063,456		53,444			124,083			209,220			5,528,538		6,356,410		6,639,451		6,301,478		78,952			172,659			294,148
Long-term		8,741,615		8,748,110		7,988,069		7,136,129		97,972			290,316			406,513			7,739,186		8,835,550		9,245,776		8,748,110		68,613			182,358			448,882
Cash management		712,015		727,603		666,252		652,002		(12,398	)		50,132			59,076			739,457		724,939		755,057		727,603		21,218			(5,876	)		25,638
Advisory⁽¹⁾		10,032		20,280		22,359		20,366		(10,260	)		(12,530	)		(10,738	)		8,767		9,025		9,310		20,280		(258	)		(543	)		(11,530	)
Total	$	9,463,662	$	9,495,993	$	8,676,680	$	7,808,497	$	75,314		$	327,918		$	454,851		$	8,487,410	$	9,569,514	$	10,010,143	$	9,495,993	$	89,573		$	175,939		$	462,990

AUM and Net Inflows (Outflows) by Product Type	AUM and Net Inflows (Outflows) by Product Type																	AUM and Net Inflows (Outflows) by Product Type
	AUM								Net inflows (outflows)
									Three Months			Nine Months			Twelve Months
									Ended			Ended			Ended			AUM								Net inflows (outflows)
	September 30,		June 30,		December 31,		September 30,		September 30,			September 30,			September 30,			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)	2021		2021		2020		2020		2021			2021			2021			2022		2022		2021		2021		2022			2022			2022
Equity	$	4,998,410	$	5,034,391	$	4,419,806	$	3,784,118	$	33,168		$	56,576		$	104,653		$	4,345,120	$	5,119,044	$	5,342,360	$	5,034,391	$	28,642		$	104,666		$	182,940
Fixed income		2,713,899		2,712,165		2,674,488		2,531,465		27,315			129,445			192,149			2,439,844		2,645,871		2,822,041		2,712,165		36,126			43,649			171,856
Multi-asset		773,158		748,770		658,733		598,246		30,935			80,824			80,422			678,465		785,182		816,494		748,770		1,380			19,052			66,994
Alternatives:
Illiquid alternatives		98,321		95,961		85,770		79,723		2,743			12,315			16,844			112,039		109,141		102,579		95,961		5,414			9,286			15,835
Liquid alternatives		85,052		81,560		73,218		69,255		3,782			9,455			10,492			83,770		87,326		87,348		81,560		(932	)		976			6,629
Currency and commodities⁽²⁾		72,775		75,263		76,054		73,322		29			1,701			1,953			79,948		88,986		74,954		75,263		(2,017	)		4,729			4,628
Alternatives subtotal		256,148		252,784		235,042		222,300		6,554			23,471			29,289			275,757		285,453		264,881		252,784		2,465			14,991			27,092
Long-term		8,741,615		8,748,110		7,988,069		7,136,129		97,972			290,316			406,513			7,739,186		8,835,550		9,245,776		8,748,110		68,613			182,358			448,882
Cash management		712,015		727,603		666,252		652,002		(12,398	)		50,132			59,076			739,457		724,939		755,057		727,603		21,218			(5,876	)		25,638
Advisory		10,032		20,280		22,359		20,366		(10,260	)		(12,530	)		(10,738	)
Advisory⁽¹⁾																			8,767		9,025		9,310		20,280		(258	)		(543	)		(11,530	)
Total	$	9,463,662	$	9,495,993	$	8,676,680	$	7,808,497	$	75,314		$	327,918		$	454,851		$	8,487,410	$	9,569,514	$	10,010,143	$	9,495,993	$	89,573		$	175,939		$	462,990

Component Changes in AUM for the Three Months Ended ~~September~~June 30, ~~2021~~2022

The following table presents the component changes in AUM by client type and product type for the three months ended ~~September~~June 30, ~~2021.~~2022.

			Net
	June 30,		inflows			Market			FX			September 30,		Average		March 31,		Net inflows			Market			FX			June 30,		Average
(in millions)	2021		(outflows)			change			impact⁽¹⁾			2021		AUM⁽²⁾		2022		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Retail:
Equity	$	446,327	$	9,952		$	(7,823	)	$	(2,719	)	$	445,737	$	452,433	$	446,043	$	(872	)	$	(66,388	)	$	(7,557	)	$	371,226	$	409,171
Fixed income		359,480		4,524			(3,156	)		(1,687	)		359,161		361,730		343,712		(7,563	)		(18,397	)		(3,892	)		313,860		328,816
Multi-asset		147,228		5,395			(1,332	)		(338	)		150,953		150,409		149,480		(3,000	)		(16,394	)		(944	)		129,142		139,662
Alternatives		42,448		2,801			(318	)		(155	)		44,776		43,690		49,888		1,462			(1,681	)		(472	)		49,197		49,900
Retail subtotal		995,483		22,672			(12,629	)		(4,899	)		1,000,627		1,008,262		989,123		(9,973	)		(102,860	)		(12,865	)		863,425		927,549
ETFs:
Equity		2,257,828		34,987			(36,247	)		(5,719	)		2,250,849		2,279,480		2,350,421		23,328			(348,798	)		(14,608	)		2,010,343		2,178,149
Fixed income		700,009		22,489			(3,494	)		(2,408	)		716,596		711,729		712,767		30,739			(41,926	)		(5,692	)		695,888		702,485
Multi-asset		7,663		593			(70	)		(36	)		8,150		7,954		8,716		161			(942	)		(67	)		7,868		8,246
Alternatives		66,005		(115	)		(2,688	)		(46	)		63,156		65,863		78,592		(2,125	)		(6,159	)		(111	)		70,197		75,187
ETFs subtotal		3,031,505		57,954			(42,499	)		(8,209	)		3,038,751		3,065,026		3,150,496		52,103			(397,825	)		(20,478	)		2,784,296		2,964,067
Institutional:
Active:
Equity		184,174		1,930			(2,410	)		(1,462	)		182,232		185,208		188,822		3,885			(23,962	)		(5,048	)		163,697		176,618
Fixed income		716,671		(5,716	)		806			(3,063	)		708,698		718,139		718,225		(6,774	)		(40,123	)		(9,476	)		661,852		687,561
Multi-asset		584,582		25,477			920			(5,682	)		605,297		604,848		617,843		4,866			(72,880	)		(15,670	)		534,159		575,970
Alternatives		138,622		3,867			560			(731	)		142,318		140,894		151,277		3,298			(805	)		(2,616	)		151,154		150,957
Active subtotal		1,624,049		25,558			(124	)		(10,938	)		1,638,545		1,649,089		1,676,167		5,275			(137,770	)		(32,810	)		1,510,862		1,591,106
Index:
Equity		2,146,062		(13,701	)		(114	)		(12,655	)		2,119,592		2,158,274		2,133,758		2,301			(287,363	)		(48,842	)		1,799,854		1,969,660
Fixed income		936,005		6,018			139			(12,718	)		929,444		947,359		871,167		19,724			(73,665	)		(48,982	)		768,244		813,260
Multi-asset		9,297		(530	)		19			(28	)		8,758		9,095		9,143		(647	)		(937	)		(263	)		7,296		7,863
Alternatives		5,709		1			222			(34	)		5,898		5,796		5,696		(170	)		(99	)		(218	)		5,209		5,600
Index subtotal		3,097,073		(8,212	)		266			(25,435	)		3,063,692		3,120,524		3,019,764		21,208			(362,064	)		(98,305	)		2,580,603		2,796,383
Institutional subtotal		4,721,122		17,346			142			(36,373	)		4,702,237		4,769,613		4,695,931		26,483			(499,834	)		(131,115	)		4,091,465		4,387,489
Long-term		8,748,110		97,972			(54,986	)		(49,481	)		8,741,615		8,842,901		8,835,550		68,613			(1,000,519	)		(164,458	)		7,739,186		8,279,105
Cash management		727,603		(12,398	)		(784	)		(2,406	)		712,015		722,103		724,939		21,218			(130	)		(6,570	)		739,457		734,270
Advisory⁽³⁾		20,280		(10,260	)		23			(11	)		10,032		13,749		9,025		(258	)		-			-			8,767		8,903
Total	$	9,495,993	$	75,314		$	(55,747	)	$	(51,898	)	$	9,463,662	$	9,578,753	$	9,569,514	$	89,573		$	(1,000,649	)	$	(171,028	)	$	8,487,410	$	9,022,278

The following table presents the component changes in AUM by investment style and product type for the three months ended ~~September~~June 30, ~~2021.~~2022.

			Net
	June 30,		inflows			Market			FX			September 30,		Average		March 31,		Net inflows			Market			FX			June 30,		Average
(in millions)	2021		(outflows)			change			impact⁽¹⁾			2021		AUM⁽²⁾		2022		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Active:
Equity	$	479,240	$	9,651		$	(10,660	)	$	(2,999	)	$	475,232	$	483,441	$	472,849	$	(1,825	)	$	(69,076	)	$	(8,900	)	$	393,048	$	434,212
Fixed income		1,054,517		(2,662	)		(2,217	)		(4,341	)		1,045,297		1,057,426		1,037,813		(15,139	)		(56,717	)		(12,000	)		953,957		993,668
Multi-asset		731,806		30,870			(411	)		(6,020	)		756,245		755,251		767,316		1,865			(89,273	)		(16,613	)		663,295		715,624
Alternatives		181,069		6,669			241			(886	)		187,093		184,583		201,162		4,760			(2,486	)		(3,088	)		200,348		200,855
Active subtotal		2,446,632		44,528			(13,047	)		(14,246	)		2,463,867		2,480,701		2,479,140		(10,339	)		(217,552	)		(40,601	)		2,210,648		2,344,359
Index and ETFs:
ETFs:
Equity		2,257,828		34,987			(36,247	)		(5,719	)		2,250,849		2,279,480		2,350,421		23,328			(348,798	)		(14,608	)		2,010,343		2,178,149
Fixed income		700,009		22,489			(3,494	)		(2,408	)		716,596		711,729		712,767		30,739			(41,926	)		(5,692	)		695,888		702,485
Multi-asset		7,663		593			(70	)		(36	)		8,150		7,954		8,716		161			(942	)		(67	)		7,868		8,246
Alternatives		66,005		(115	)		(2,688	)		(46	)		63,156		65,863		78,592		(2,125	)		(6,159	)		(111	)		70,197		75,187
ETFs subtotal		3,031,505		57,954			(42,499	)		(8,209	)		3,038,751		3,065,026		3,150,496		52,103			(397,825	)		(20,478	)		2,784,296		2,964,067
Non-ETF Index:
Equity		2,297,323		(11,470	)		313			(13,837	)		2,272,329		2,312,474		2,295,774		7,139			(308,637	)		(52,547	)		1,941,729		2,121,237
Fixed income		957,639		7,488			6			(13,127	)		952,006		969,802		895,291		20,526			(75,468	)		(50,350	)		789,999		835,969
Multi-asset		9,301		(528	)		18			(28	)		8,763		9,101		9,150		(646	)		(938	)		(264	)		7,302		7,871
Alternatives		5,710		-			223			(34	)		5,899		5,797		5,699		(170	)		(99	)		(218	)		5,212		5,602
Non-ETF Index subtotal		3,269,973		(4,510	)		560			(27,026	)		3,238,997		3,297,174		3,205,914		26,849			(385,142	)		(103,379	)		2,744,242		2,970,679
Index & ETFs subtotal		6,301,478		53,444			(41,939	)		(35,235	)		6,277,748		6,362,200		6,356,410		78,952			(782,967	)		(123,857	)		5,528,538		5,934,746
Long-term		8,748,110		97,972			(54,986	)		(49,481	)		8,741,615		8,842,901		8,835,550		68,613			(1,000,519	)		(164,458	)		7,739,186		8,279,105
Cash management		727,603		(12,398	)		(784	)		(2,406	)		712,015		722,103		724,939		21,218			(130	)		(6,570	)		739,457		734,270
Advisory⁽³⁾		20,280		(10,260	)		23			(11	)		10,032		13,749		9,025	��	(258	)		-			-			8,767		8,903
Total	$	9,495,993	$	75,314		$	(55,747	)	$	(51,898	)	$	9,463,662	$	9,578,753	$	9,569,514	$	89,573		$	(1,000,649	)	$	(171,028	)	$	8,487,410	$	9,022,278

The following table presents the component changes in AUM by product type for the three months ended ~~September~~June 30, ~~2021.~~2022.

			Net
	June 30,		inflows			Market			FX			September 30,		Average		March 31,		Net inflows			Market			FX			June 30,		Average
(in millions)	2021		(outflows)			change			impact⁽¹⁾			2021		AUM⁽²⁾		2022		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Equity	$	5,034,391	$	33,168		$	(46,594	)	$	(22,555	)	$	4,998,410	$	5,075,395	$	5,119,044	$	28,642		$	(726,511	)	$	(76,055	)	$	4,345,120	$	4,733,598
Fixed income		2,712,165		27,315			(5,705	)		(19,876	)		2,713,899		2,738,957		2,645,871		36,126			(174,111	)		(68,042	)		2,439,844		2,532,122
Multi-asset		748,770		30,935			(463	)		(6,084	)		773,158		772,306		785,182		1,380			(91,153	)		(16,944	)		678,465		731,741
Alternatives:
Illiquid alternatives		95,961		2,743			195			(578	)		98,321		97,516		109,141		5,414			(682	)		(1,834	)		112,039		110,501
Liquid alternatives		81,560		3,782			9			(299	)		85,052		83,431		87,326		(932	)		(1,518	)		(1,106	)		83,770		85,574
Currency and commodities⁽⁴⁾		75,263		29			(2,428	)		(89	)		72,775		75,296		88,986		(2,017	)		(6,544	)		(477	)		79,948		85,569
Alternatives subtotal		252,784		6,554			(2,224	)		(966	)		256,148		256,243		285,453		2,465			(8,744	)		(3,417	)		275,757		281,644
Long-term		8,748,110		97,972			(54,986	)		(49,481	)		8,741,615		8,842,901		8,835,550		68,613			(1,000,519	)		(164,458	)		7,739,186		8,279,105
Cash management		727,603		(12,398	)		(784	)		(2,406	)		712,015		722,103		724,939		21,218			(130	)		(6,570	)		739,457		734,270
Advisory⁽³⁾		20,280		(10,260	)		23			(11	)		10,032		13,749		9,025		(258	)		-			-			8,767		8,903
Total	$	9,495,993	$	75,314		$	(55,747	)	$	(51,898	)	$	9,463,662	$	9,578,753	$	9,569,514	$	89,573		$	(1,000,649	)	$	(171,028	)	$	8,487,410	$	9,022,278

AUM ~~remained flat at $9.5~~decreased $1.08 trillion to $8.49 trillion at ~~September~~June 30, ~~2021, as~~ ~~positive net inflows were more than offset~~2022, driven by net market depreciation and the negative impact of foreign exchange ~~movements.~~movements, partially offset by net inflows.

Long-term net inflows of ~~$98~~$69 billion were comprised of net inflows of ~~$58 billion, $23~~$52 billion and ~~$17~~$26 billion into ETFs ~~retail~~ and institutional, ~~respectively.~~respectively, partially offset by $10 billion of retail outflows. Net flows in long-term products are described below.

Cash management AUM ~~decreased~~increased to ~~$712~~$739 billion, driven by ~~net outflows~~US government mandates and included inflows from Circle Internet Financial as the Company became the primary manager of ~~$12 billion.~~their USD Coin cash reserves.

Net market depreciation of ~~$56 billion~~$1 trillion was primarily driven by global equity and fixed income market depreciation.

AUM decreased ~~$52~~$171 billion due to the negative impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the British pound, the Japanese yen and the Euro.

Component Changes in AUM for the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022

The following table presents the component changes in AUM by client type and product type for the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~

	December 31,		Net inflows					Market			FX			September 30,		Average		December 31,		Net inflows			Market			FX			June 30,		Average
(in millions)	2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾		2021		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Retail:
Equity	$	338,434	$	34,153		$	41,324	$	35,459		$	(3,633	)	$	445,737	$	417,230	$	471,937	$	5,329		$	(95,767	)	$	(10,273	)	$	371,226	$	426,530
Fixed income		340,468		26,011			—		(4,457	)		(2,861	)		359,161		354,337		365,306		(9,458	)		(37,149	)		(4,839	)		313,860		341,015
Multi-asset		132,624		10,269			—		8,505			(445	)		150,953		143,345		155,461		(22	)		(25,078	)		(1,219	)		129,142		144,767
Alternatives		34,391		10,139			—		468			(222	)		44,776		39,976		47,349		4,342			(1,879	)		(615	)		49,197		49,151
Retail subtotal		845,917		80,572			41,324		39,975			(7,161	)		1,000,627		954,888		1,040,053		191			(159,873	)		(16,946	)		863,425	��	961,463
ETFs:
Equity		1,905,101		152,785			—		202,397			(9,434	)		2,250,849		2,142,649		2,447,248		64,499			(484,632	)		(16,772	)		2,010,343		2,255,471
Fixed income		690,033		45,804			—		(14,826	)		(4,415	)		716,596		694,541		745,373		38,889			(81,054	)		(7,320	)		695,888		713,181
Multi-asset		6,268		1,539			—		349			(6	)		8,150		7,279		9,119		231			(1,433	)		(49	)		7,868		8,466
Alternatives		67,605		1,463			—		(5,837	)		(75	)		63,156		66,272		65,614		4,693			14			(124	)		70,197		72,087
ETFs subtotal		2,669,007		201,591			—		182,083			(13,930	)		3,038,751		2,910,741		3,267,354		108,312			(567,105	)		(24,265	)		2,784,296		3,049,205
Institutional:
Active:
Equity		169,522		(1,561	)		—		16,555			(2,284	)		182,232		179,247		199,980		5,716			(35,704	)		(6,295	)		163,697		183,162
Fixed income		716,269		5,606			—		(7,030	)		(6,147	)		708,698		710,668		767,402		(9,667	)		(83,354	)		(12,529	)		661,852		715,059
Multi-asset		511,242		69,106			—		33,655			(8,706	)		605,297		556,569		642,951		18,997			(108,576	)		(19,213	)		534,159		598,329
Alternatives		127,429		12,407			—		3,682			(1,200	)		142,318		135,656		146,384		6,627			1,285			(3,142	)		151,154		150,223
Active subtotal		1,524,462		85,558			—		46,862			(18,337	)		1,638,545		1,582,140		1,756,717		21,673			(226,349	)		(41,179	)		1,510,862		1,646,773
Index:
Equity		2,006,749		(128,801	)		—		264,183			(22,539	)		2,119,592		2,101,940		2,223,195		29,122			(388,908	)		(63,555	)		1,799,854		2,036,631
Fixed income		927,718		52,024			—		(25,447	)		(24,851	)		929,444		933,212		943,960		23,885			(130,877	)		(68,724	)		768,244		861,222
Multi-asset		8,599		(90	)		—		517			(268	)		8,758		8,919		8,963		(154	)		(1,135	)		(378	)		7,296		8,173
Alternatives		5,617		(538	)		—		908			(89	)		5,898		5,680		5,534		(671	)		657			(311	)		5,209		5,540
Index subtotal		2,948,683		(77,405	)		—		240,161			(47,747	)		3,063,692		3,049,751		3,181,652		52,182			(520,263	)		(132,968	)		2,580,603		2,911,566
Institutional subtotal		4,473,145		8,153			—		287,023			(66,084	)		4,702,237		4,631,891		4,938,369		73,855			(746,612	)		(174,147	)		4,091,465		4,558,339
Long-term		7,988,069		290,316			41,324		509,081			(87,175	)	��	8,741,615		8,497,520		9,245,776		182,358			(1,473,590	)		(215,358	)		7,739,186		8,569,007
Cash management		666,252		50,132			—		(996	)		(3,373	)		712,015		704,580		755,057		(5,876	)		(759	)		(8,965	)		739,457		735,753
Advisory⁽⁴⁾⁽³⁾		22,359		(12,530	)		—		200			3			10,032		18,838		9,310		(543	)		-			-			8,767		9,012
Total	$	8,676,680	$	327,918		$	41,324	$	508,285		$	(90,545	)	$	9,463,662	$	9,220,938	$	10,010,143	$	175,939		$	(1,474,349	)	$	(224,323	)	$	8,487,410	$	9,313,772

The following table presents the component changes in AUM by investment style and product type for the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~2022.

	December 31,		Net inflows					Market			FX			September 30,		Average		December 31,		Net inflows			Market			FX			June 30,		Average
(in millions)	2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾		2021		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Active:
Equity	$	410,189	$	34,854		$	—	$	34,944		$	(4,755	)	$	475,232	$	457,458	$	507,103	$	172		$	(102,604	)	$	(11,623	)	$	393,048	$	454,645
Fixed income		1,035,015		29,461			—		(10,534	)		(8,645	)		1,045,297		1,043,135		1,107,085		(20,416	)		(117,195	)		(15,517	)		953,957		1,032,671
Multi-asset		643,864		79,374			—		42,158			(9,151	)		756,245		699,909		798,404		18,974			(133,653	)		(20,430	)		663,295		743,088
Alternatives		161,819		22,544			—		4,153			(1,423	)		187,093		175,631		193,733		10,969			(596	)		(3,758	)		200,348		199,373
Active subtotal		2,250,887		166,233			—		70,721			(23,974	)		2,463,867		2,376,133		2,606,325		9,699			(354,048	)		(51,328	)		2,210,648		2,429,777
Index and ETFs:
ETFs:
Equity		1,905,101		152,785			—		202,397			(9,434	)		2,250,849		2,142,649		2,447,248		64,499			(484,632	)		(16,772	)		2,010,343		2,255,471
Fixed income		690,033		45,804			—		(14,826	)		(4,415	)		716,596		694,541		745,373		38,889			(81,054	)		(7,320	)		695,888		713,181
Multi-asset		6,268		1,539			—		349			(6	)		8,150		7,279		9,119		231			(1,433	)		(49	)		7,868		8,466
Alternatives		67,605		1,463			—		(5,837	)		(75	)		63,156		66,272		65,614		4,693			14			(124	)		70,197		72,087
ETFs subtotal		2,669,007		201,591			—		182,083			(13,930	)		3,038,751		2,910,741		3,267,354		108,312			(567,105	)		(24,265	)		2,784,296		3,049,205
Non-ETF Index:
Equity		2,104,516		(131,063	)		41,324		281,253			(23,701	)		2,272,329		2,240,959		2,388,009		39,995			(417,775	)		(68,500	)		1,941,729		2,191,678
Fixed income		949,440		54,180			—		(26,400	)		(25,214	)		952,006		955,082		969,583		25,176			(134,185	)		(70,575	)		789,999		884,625
Multi-asset		8,601		(89	)		—		519			(268	)		8,763		8,924		8,971		(153	)		(1,136	)		(380	)		7,302		8,181
Alternatives		5,618		(536	)		—		905			(88	)		5,899		5,681		5,534		(671	)		659			(310	)		5,212		5,541
Non-ETF Index subtotal		3,068,175		(77,508	)		41,324		256,277			(49,271	)		3,238,997		3,210,646		3,372,097		64,347			(552,437	)		(139,765	)		2,744,242		3,090,025
Index & ETFs subtotal		5,737,182		124,083			41,324		438,360			(63,201	)		6,277,748		6,121,387		6,639,451		172,659			(1,119,542	)		(164,030	)		5,528,538		6,139,230
Long-term		7,988,069		290,316			41,324		509,081			(87,175	)		8,741,615		8,497,520		9,245,776		182,358			(1,473,590	)		(215,358	)		7,739,186		8,569,007
Cash management		666,252		50,132			—		(996	)		(3,373	)		712,015		704,580		755,057		(5,876	)		(759	)		(8,965	)		739,457		735,753
Advisory⁽⁴⁾		22,359		(12,530	)		—		200			3			10,032		18,838
Advisory⁽³⁾																			9,310		(543	)		-			-			8,767		9,012
Total	$	8,676,680	$	327,918		$	41,324	$	508,285		$	(90,545	)	$	9,463,662	$	9,220,938	$	10,010,143	$	175,939		$	(1,474,349	)	$	(224,323	)	$	8,487,410	$	9,313,772

The following table presents the component changes in AUM by product type for the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~2022.

	December 31,		Net inflows					Market			FX			September 30,		Average		December 31,		Net inflows			Market			FX			June 30,		Average
(in millions)	2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾		2021		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Equity	$	4,419,806	$	56,576		$	41,324	$	518,594		$	(37,890	)	$	4,998,410	$	4,841,066	$	5,342,360	$	104,666		$	(1,005,011	)	$	(96,895	)	$	4,345,120	$	4,901,794
Fixed income		2,674,488		129,445			—		(51,760	)		(38,274	)		2,713,899		2,692,758		2,822,041		43,649			(332,434	)		(93,412	)		2,439,844		2,630,477
Multi-asset		658,733		80,824			—		43,026			(9,425	)		773,158		716,112		816,494		19,052			(136,222	)		(20,859	)		678,465		759,735
Alternatives:
Illiquid alternatives		85,770		12,315			—		1,148			(912	)		98,321		93,102		102,579		9,286			2,525			(2,351	)		112,039		108,652
Liquid alternatives		73,218		9,455			—		2,745			(366	)		85,052		79,234		87,348		976			(3,377	)		(1,177	)		83,770		86,251
Currency and commodities⁽⁵⁾⁽⁴⁾		76,054		1,701			—		(4,672	)		(308	)		72,775		75,248		74,954		4,729			929			(664	)		79,948		82,098
Alternatives subtotal		235,042		23,471			—		(779	)		(1,586	)		256,148		247,584		264,881		14,991			77			(4,192	)		275,757		277,001
Long-term		7,988,069		290,316			41,324		509,081			(87,175	)		8,741,615		8,497,520		9,245,776		182,358			(1,473,590	)		(215,358	)		7,739,186		8,569,007
Cash management		666,252		50,132			—		(996	)		(3,373	)		712,015		704,580		755,057		(5,876	)		(759	)		(8,965	)		739,457		735,753
Advisory⁽⁴⁾⁽³⁾		22,359		(12,530	)		—		200			3			10,032		18,838		9,310		(543	)		-			-			8,767		9,012
Total	$	8,676,680	$	327,918		$	41,324	$	508,285		$	(90,545	)	$	9,463,662	$	9,220,938	$	10,010,143	$	175,939		$	(1,474,349	)	$	(224,323	)	$	8,487,410	$	9,313,772

AUM ~~increased $787 billion~~decreased $1.52 trillion to ~~$9.5~~$8.49 trillion at ~~September~~June 30, ~~2021,~~ 2022, driven by net market ~~appreciation, positive net inflows,~~depreciation and ~~AUM acquired in~~ the ~~Aperio Transaction, partially offset by the~~negative impact of foreign exchange ~~movements.~~movements, partially offset by net inflows.

Long-term net inflows of ~~$290~~$182 billion were comprised of net inflows of ~~$202 billion, $81~~$108 billion and $8$74 billion into ETFs ~~retail~~ and institutional, respectively. Net flows in long-term products are described below.

Cash management AUM ~~increased~~decreased to ~~$712~~$739 billion, ~~driven by~~due to net ~~inflows~~outflows of ~~$50~~$6 billion and the negative impact of foreign exchange movements of $9 billion.

Net market ~~appreciation~~depreciation of ~~$508 billion~~$1.5 trillion was primarily driven ~~primarily~~ by global equity and fixed income market ~~appreciation.~~depreciation.

AUM decreased ~~$91~~$224 billion due to the negative impact of foreign exchange movements, primarily ~~resulting from~~due to the strengthening of the US dollar, largely against the ~~Euro~~British pound, the Japanese yen and the ~~Japanese yen.~~Euro.

Component Changes in AUM for the Twelve Months Ended ~~September~~June 30, ~~2021~~2022

The following table presents the component changes in AUM by client type and product type for the twelve months ended ~~September~~June 30, ~~2021.~~2022.

	September 30,		Net inflows					Market			FX			September 30,		Average		June 30,		Net inflows			Market			FX			June 30,		Average
(in millions)	2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾		2021		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Retail:
Equity	$	279,427	$	50,248		$	41,324	$	73,968		$	770		$	445,737	$	387,825	$	446,327	$	23,190		$	(84,740	)	$	(13,551	)	$	371,226	$	439,849
Fixed income		316,008		40,231			—		2,060			862			359,161		347,052		359,480		3,925			(42,563	)		(6,982	)		313,860		350,333
Multi-asset		119,708		12,914			—		18,198			133			150,953		138,466		147,228		7,683			(24,120	)		(1,649	)		129,142		147,910
Alternatives		31,121		12,496			—		1,081			78			44,776		38,183		42,448		9,588			(2,023	)		(816	)		49,197		46,930
Retail subtotal		746,264		115,889			41,324		95,307			1,843			1,000,627		911,526		995,483		44,386			(153,446	)		(22,998	)		863,425		985,022
ETFs:
Equity		1,586,849		218,042			—		446,634			(676	)		2,250,849		2,028,304		2,257,828		169,555			(392,003	)		(25,037	)		2,010,343		2,279,120
Fixed income		662,999		59,339			—		(6,063	)		321			716,596		689,132		700,009		94,433			(87,618	)		(10,936	)		695,888		714,420
Multi-asset		5,430		1,955			—		736			29			8,150		6,895		7,663		1,551			(1,265	)		(81	)		7,868		8,312
Alternatives		66,057		1,008			—		(3,935	)		26			63,156		65,933		66,005		4,670			(311	)		(167	)		70,197		69,079
ETFs subtotal		2,321,335		280,344			—		437,372			(300	)		3,038,751		2,790,264		3,031,505		270,209			(481,197	)		(36,221	)		2,784,296		3,070,931
Institutional:
Active:
Equity		149,260		(4,379	)		—		37,231			120			182,232		173,263		184,174		15,311			(27,814	)		(7,974	)		163,697		184,401
Fixed income		693,061		9,122			—		5,825			690			708,698		707,349		716,671		43,210			(80,946	)		(17,083	)		661,852		720,305
Multi-asset		464,242		66,535			—		74,282			238			605,297		536,848		584,582		58,347			(81,391	)		(27,379	)		534,159		603,840
Alternatives		120,559		15,635			—		5,555			569			142,318		132,368		138,622		13,870			2,652			(3,990	)		151,154		146,260
Active subtotal		1,427,122		86,913			—		122,893			1,617			1,638,545		1,549,828		1,624,049		130,738			(187,499	)		(56,426	)		1,510,862		1,654,806
Index:
Equity		1,768,582		(159,258	)		—		508,028			2,240			2,119,592		2,034,356		2,146,062		(25,116	)		(239,291	)		(81,801	)		1,799,854		2,096,323
Fixed income		859,397		83,457			—		(16,605	)		3,195			929,444		919,677		936,005		30,288			(111,182	)		(86,867	)		768,244		902,546
Multi-asset		8,866		(982	)		—		1,029			(155	)		8,758		8,804		9,297		(587	)		(925	)		(489	)		7,296		9,074
Alternatives		4,563		150			—		1,186			(1	)		5,898		5,512		5,709		(1,036	)		906			(370	)		5,209		5,604
Index subtotal		2,641,408		(76,633	)		—		493,638			5,279			3,063,692		2,968,349		3,097,073		3,549			(350,492	)		(169,527	)		2,580,603		3,013,547
Institutional subtotal		4,068,530		10,280			—		616,531			6,896			4,702,237		4,518,177		4,721,122		134,287			(537,991	)		(225,953	)		4,091,465		4,668,353
Long-term		7,136,129		406,513			41,324		1,149,210			8,439			8,741,615		8,219,967		8,748,110		448,882			(1,172,634	)		(285,172	)		7,739,186		8,724,306
Cash management		652,002		59,076			—		(1,215	)		2,152			712,015		695,260		727,603		25,638			(1,687	)		(12,097	)		739,457		729,454
Advisory⁽⁴⁾⁽³⁾		20,366		(10,738	)		—		377			27			10,032		19,358		20,280		(11,530	)		18			(1	)		8,767		10,566
Total	$	7,808,497	$	454,851		$	41,324	$	1,148,372		$	10,618		$	9,463,662	$	8,934,585	$	9,495,993	$	462,990		$	(1,174,303	)	$	(297,270	)	$	8,487,410	$	9,464,326

The following table presents the component changes in AUM by investment style and product type for the twelve months ended ~~September~~June 30, ~~2021.~~2022.

	September 30,		Net inflows					Market			FX			September 30,		Average		June 30,		Net inflows			Market			FX			June 30,		Average
(in millions)	2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾		2021		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Active:
Equity	$	347,631	$	43,476		$	—	$	84,336		$	(211	)	$	475,232	$	434,610	$	479,240	$	23,744		$	(94,518	)	$	(15,418	)	$	393,048	$	468,953
Fixed income		989,412		46,244			—		8,559			1,082			1,045,297		1,032,919		1,054,517		41,507			(120,201	)		(21,866	)		953,957		1,047,608
Multi-asset		583,952		79,443			—		92,479			371			756,245		675,310		731,806		66,025			(105,509	)		(29,027	)		663,295		751,743
Alternatives		151,678		28,130			—		6,638			647			187,093		170,550		181,069		23,458			627			(4,806	)		200,348		193,189
Active subtotal		2,072,673		197,293			—		192,012			1,889			2,463,867		2,313,389		2,446,632		154,734			(319,601	)		(71,117	)		2,210,648		2,461,493
Index and ETFs:
ETFs:
Equity		1,586,849		218,042			—		446,634			(676	)		2,250,849		2,028,304		2,257,828		169,555			(392,003	)		(25,037	)		2,010,343		2,279,120
Fixed income		662,999		59,339			—		(6,063	)		321			716,596		689,132		700,009		94,433			(87,618	)		(10,936	)		695,888		714,420
Multi-asset		5,430		1,955			—		736			29			8,150		6,895		7,663		1,551			(1,265	)		(81	)		7,868		8,312
Alternatives		66,057		1,008			—		(3,935	)		26			63,156		65,933		66,005		4,670			(311	)		(167	)		70,197		69,079
ETFs subtotal		2,321,335		280,344			—		437,372			(300	)		3,038,751		2,790,264		3,031,505		270,209			(481,197	)		(36,221	)		2,784,296		3,070,931
Non-ETF Index:
Equity		1,849,638		(156,865	)		41,324		534,891			3,341			2,272,329		2,160,834		2,297,323		(10,359	)		(257,327	)		(87,908	)		1,941,729		2,251,620
Fixed income		879,054		86,566			—		(17,279	)		3,665			952,006		941,159		957,639		35,916			(114,490	)		(89,066	)		789,999		925,576
Multi-asset		8,864		(976	)		—		1,030			(155	)		8,763		8,808		9,301		(582	)		(927	)		(490	)		7,302		9,081
Alternatives		4,565		151			—		1,184			(1	)		5,899		5,513		5,710		(1,036	)		908			(370	)		5,212		5,605
Non-ETF Index subtotal		2,742,121		(71,124	)		41,324		519,826			6,850			3,238,997		3,116,314		3,269,973		23,939			(371,836	)		(177,834	)		2,744,242		3,191,882
Index & ETFs subtotal		5,063,456		209,220			41,324		957,198			6,550			6,277,748		5,906,578		6,301,478		294,148			(853,033	)		(214,055	)		5,528,538		6,262,813
Long-term		7,136,129		406,513			41,324		1,149,210			8,439			8,741,615		8,219,967		8,748,110		448,882			(1,172,634	)		(285,172	)		7,739,186		8,724,306
Cash management		652,002		59,076			—		(1,215	)		2,152			712,015		695,260		727,603		25,638			(1,687	)		(12,097	)		739,457		729,454
Advisory⁽⁴⁾⁽³⁾		20,366		(10,738	)		—		377			27			10,032		19,358		20,280		(11,530	)		18			(1	)		8,767		10,566
Total	$	7,808,497	$	454,851		$	41,324	$	1,148,372		$	10,618		$	9,463,662	$	8,934,585	$	9,495,993	$	462,990		$	(1,174,303	)	$	(297,270	)	$	8,487,410	$	9,464,326

The following table presents the component changes in AUM by product type for the twelve months ended ~~September~~June 30, ~~2021.~~2022.

	September 30,		Net inflows					Market			FX			September 30,		Average		June 30,		Net inflows			Market			FX			June 30,		Average
(in millions)	2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾		2021		(outflows)			change			impact⁽¹⁾			2022		AUM⁽²⁾
Equity	$	3,784,118	$	104,653		$	41,324	$	1,065,861		$	2,454		$	4,998,410	$	4,623,748	$	5,034,391	$	182,940		$	(743,848	)	$	(128,363	)	$	4,345,120	$	4,999,693
Fixed income		2,531,465		192,149			—		(14,783	)		5,068			2,713,899		2,663,210		2,712,165		171,856			(322,309	)		(121,868	)		2,439,844		2,687,604
Multi-asset		598,246		80,422			—		94,245			245			773,158		691,013		748,770		66,994			(107,701	)		(29,598	)		678,465		769,136
Alternatives:
Illiquid alternatives		79,723		16,844			—		1,660			94			98,321		90,319		95,961		15,835			3,322			(3,079	)		112,039		103,771
Liquid alternatives		69,255		10,492			—		4,653			652			85,052		77,069		81,560		6,629			(2,983	)		(1,436	)		83,770		85,311
Currency and commodities⁽⁵⁾⁽⁴⁾		73,322		1,953			—		(2,426	)		(74	)		72,775		74,608		75,263		4,628			885			(828	)		79,948		78,791
Alternatives subtotal		222,300		29,289			—		3,887			672			256,148		241,996		252,784		27,092			1,224			(5,343	)		275,757		267,873
Long-term		7,136,129		406,513			41,324		1,149,210			8,439			8,741,615		8,219,967		8,748,110		448,882			(1,172,634	)		(285,172	)		7,739,186		8,724,306
Cash management		652,002		59,076			—		(1,215	)		2,152			712,015		695,260		727,603		25,638			(1,687	)		(12,097	)		739,457		729,454
Advisory⁽⁴⁾⁽³⁾		20,366		(10,738	)		—		377			27			10,032		19,358		20,280		(11,530	)		18			(1	)		8,767		10,566
Total	$	7,808,497	$	454,851		$	41,324	$	1,148,372		$	10,618		$	9,463,662	$	8,934,585	$	9,495,993	$	462,990		$	(1,174,303	)	$	(297,270	)	$	8,487,410	$	9,464,326

AUM ~~increased $1.7~~decreased $1 trillion to ~~$9.5~~$8.49 trillion at ~~September~~June 30, ~~2021,~~2022, driven by net market ~~appreciation, positive net inflows,~~depreciation and the ~~positive~~negative impact of foreign exchange movements, ~~and AUM acquired in the Aperio Transaction.~~partially offset by net inflows.

Long-term net inflows of ~~$407~~$449 billion were comprised of net inflows of ~~$280~~$270 billion, ~~$116~~$135 billion and ~~$10~~$44 billion from ETFs, ~~retail~~institutional, and ~~institutional,~~retail respectively. Net flows in long-term products are described below.

Cash management AUM increased to ~~$712~~$739 billion, driven by net inflows of ~~$59 billion.~~$26 billion partially offset by the negative impact of foreign exchange movements.

Net market ~~appreciation~~depreciation of ~~$1.1~~$1.2 trillion was driven by global equity and fixed income market ~~appreciation.~~depreciation.

AUM ~~increased $11~~decreased $297 billion due to the ~~positive~~negative impact of foreign exchange movements, primarily resulting from the ~~weakening~~strengthening of the US dollar, largely against the British pound, Euro and ~~the Canadian dollar, partially offset by the strengthening of the US dollar against~~ ~~the~~ Japanese ~~yen~~ ~~and the Euro.~~yen.

The Company’s results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 are discussed below. For a further description of the Company’s revenue and expense, see the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 (“~~2020~~2021 Form 10-K”).

The table below presents detail of revenue for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 and includes the product type mix of base fees and securities lending revenue and performance fees.

	Three Months Ended				Nine Months Ended				Three Months Ended				Six Months Ended
	September 30,				September 30,				June 30,				June 30,
(in millions)	2021		2020		2021		2020		2022		2021		2022		2021
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	674	$	457	$	1,891	$	1,236	$	550	$	641	$	1,166	$	1,217
ETFs		1,212		880		3,436		2,551		1,103		1,156		2,261		2,224
Non-ETF Index		207		164		581		505		186		198		373		374
Equity subtotal		2,093		1,501		5,908		4,292		1,839		1,995		3,800		3,815
Fixed income:
Active		561		498		1,631		1,443		503		545		1,037		1,070
ETFs		304		297		893		817		274		294		563		589
Non-ETF Index		121		113		350		354		102		116		220		229
Fixed income subtotal		986		908		2,874		2,614		879		955		1,820		1,888
Multi-asset		369		289		1,041		852		331		344		690		672
Alternatives:
Illiquid alternatives		166		140		501		416		184		167		363		335
Liquid alternatives		163		132		460		361		161		150		328		297
Currency and commodities⁽¹⁾		55		51		163		118
Currency and commodities⁽¹⁾										62		55		118		108
Alternatives subtotal		384		323		1,124		895		407		372		809		740
Long-term		3,832		3,021		10,947		8,653		3,456		3,666		7,119		7,115
Cash management		111		204		345		593		232		91		402		234
Total investment advisory, administration fees and securities lending revenue		3,943		3,225		11,292		9,246		3,688		3,757		7,521		7,349
Investment advisory performance fees:
Equity		8		4		70		29		3		36		15		62
Fixed income		2		9		31		13		13		15		22		29
Multi-asset		—		10		17		13		7		9		12		17
Alternatives:
Illiquid alternatives		50		6		147		55		65		90		102		97
Liquid alternatives		285		503		549		575		18		190		53		264
Alternatives subtotal		335		509		696		630		83		280		155		361
Total performance fees		345		532		814		685		106		340		204		469
Technology services revenue		320		282		942		834		332		316		673		622
Distribution fees:
Retrocessions		294		188		796		519		269		264		548		502
12b-1 fees (US mutual fund distribution fees)		91		85		263		254		80		87		168		172
Other		16		15		51		44		12		18		26		35
Total distribution fees		401		288		1,110		817		361		369		742		709
Advisory and other revenue:
Advisory		13		14		37		48		15		9		31		24
Other		28		28		73		97		24		29		54		45
Total advisory and other revenue		41		42		110		145		39		38		85		69
Total revenue	$	5,050	$	4,369	$	14,268	$	11,727	$	4,526	$	4,820	$	9,225	$	9,218

The table below lists a percentage breakdown of base fees and securities lending revenue and average AUM by product type:

	Three Months Ended September 30,												Nine Months Ended September 30,												Three Months Ended June 30,												Six Months Ended June 30,
	Percentage of Base Fees and Securities Lending Revenue						Percentage of Average AUM by Product Type⁽¹⁾						Percentage of Base Fees and Securities Lending Revenue						Percentage of Average AUM by Product Type⁽²⁾						Percentage of Base Fees and Securities Lending Revenue						Percentage of Average AUM by Product Type⁽¹⁾						Percentage of Base Fees and Securities Lending Revenue						Percentage of Average AUM by Product Type⁽²⁾
	2021			2020			2021			2020			2021			2020			2021			2020			2022			2021			2022			2021			2022			2021			2022			2021
Equity:
Active		18	%		15	%		5	%		4	%		19	%		14	%		5	%		4	%		15	%		18	%		5	%		5	%		15	%		19	%		5	%		5	%
ETFs		31	%		27	%		24	%		20	%		30	%		28	%		23	%		21	%		30	%		31	%		24	%		24	%		30	%		30	%		23	%		23	%
Non-ETF Index		5	%		5	%		23	%		24	%		5	%		5	%		24	%		23	%		5	%		5	%		24	%		23	%		5	%		5	%		24	%		24	%
Equity subtotal		54	%		47	%		52	%		48	%		54	%		47	%		52	%		48	%		50	%		54	%		53	%		52	%		50	%		54	%		52	%		52	%
Fixed income:
Active		13	%		15	%		12	%		13	%		13	%		15	%		11	%		13	%		14	%		14	%		11	%		12	%		14	%		14	%		11	%		11	%
ETFs		8	%		9	%		7	%		9	%		8	%		9	%		8	%		8	%		7	%		8	%		8	%		7	%		7	%		8	%		8	%		8	%
Non-ETF Index		3	%		4	%		10	%		11	%		3	%		4	%		10	%		12	%		3	%		3	%		9	%		10	%		3	%		3	%		10	%		10	%
Fixed income subtotal		24	%		28	%		29	%		33	%		24	%		28	%		29	%		33	%		24	%		25	%		28	%		29	%		24	%		25	%		29	%		29	%
Multi-asset		9	%		9	%		8	%		8	%		9	%		9	%		8	%		8	%		9	%		9	%		8	%		8	%		9	%		9	%		8	%		8	%
Alternatives:
Illiquid alternatives		5	%		4	%		1	%		1	%		5	%		5	%		1	%		1	%		5	%		5	%		1	%		1	%		5	%		5	%		1	%		1	%
Liquid alternatives		4	%		4	%		1	%		1	%		4	%		4	%		1	%		1	%		4	%		4	%		1	%		1	%		4	%		4	%		1	%		1	%
Currency and commodities⁽³⁾		1	%		2	%		1	%		1	%		1	%		1	%		1	%		1	%
Currency and commodities⁽³⁾																										2	%		1	%		1	%		1	%		3	%		1	%		1	%		1	%
Alternatives subtotal		10	%		10	%		3	%		3	%		10	%		10	%		3	%		3	%		11	%		10	%		3	%		3	%		12	%		10	%		3	%		3	%
Long-term		97	%		94	%		92	%		92	%		97	%		94	%		92	%		92	%		94	%		98	%		92	%		92	%		95	%		98	%		92	%		92	%
Cash management		3	%		6	%		8	%		8	%		3	%		6	%		8	%		8	%		6	%		2	%		8	%		8	%		5	%		2	%		8	%		8	%
Total excluding Advisory AUM		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

Three Months Ended ~~September~~June 30, ~~2021~~2022 Compared with Three Months Ended ~~September~~June 30, ~~2020~~2021

Revenue ~~increased $681~~decreased $294 million, or ~~16%~~6%, from the three months ended ~~September~~June 30, ~~2020, reflecting market gains as well as strong organic growth~~2021, primarily driven by the impact of significantly lower markets and ~~13% growth in technology services revenue, partially offset by~~US dollar appreciation on average AUM and lower performance fees.

Investment advisory, administration fees and securities lending revenue of ~~$3,943~~$3,688 million ~~increased $718~~decreased $69 million from ~~$3,225~~$3,757 million for the three months ended ~~September~~June 30, ~~2020,~~2021, primarily driven by the ~~positive~~negative impact of market beta and foreign exchange movements on average AUM, ~~and strong~~partially offset by organic base fee growth, ~~partially offset by~~ the ~~impact~~elimination of yield-related fee waivers on ~~certain~~ money market funds, and ~~strategic pricing changes to certain products.~~higher securities lending revenue. Securities lending revenue of ~~$152~~$160 million ~~decreased~~increased from ~~$153~~$140 million infor the ~~third quarter of 2020,~~three months ended June 30, 2021, primarily reflecting ~~lower asset spreads, partially offset by~~ higher ~~average balances of securities on loan.~~spreads.

Investment advisory performance fees of ~~$345~~$106 million decreased ~~$187~~$234 million from ~~$532~~$340 million for the three months ended ~~September~~June 30, ~~2020,~~2021, primarily reflecting lower revenue from ~~liquid~~ alternative products, including lower fees from a single hedge fund strategy with an annual performance measurement period that ends in the third quarter, partially offset by higher revenue from illiquid alternativeand long-only products.

Technology services revenue of ~~$320~~$332 million increased ~~$38~~$16 million from ~~$282~~$316 million for the three months ended ~~September~~June 30, ~~2020, primarily~~2021, reflecting ~~higher revenue from~~ continued strong client demand for Aladdin,. despite the negative impact of foreign exchange movements.

Six Months Ended ~~September~~June 30, ~~2021~~2022 Compared with ~~Nine~~Six Months Ended ~~September~~June 30, ~~2020~~2021

Revenue increased ~~$2,541~~$7 million ~~or 22%,~~ from the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, reflecting higher base ~~and performance~~ fees, ~~and higher~~ technology services revenue ~~partially~~and securities lending revenue, largely offset by lower ~~securities lending revenue.~~performance fees.

Investment advisory, administration fees and securities lending revenue of ~~$11,292~~$7,521 million increased ~~$2,046~~$172 million from ~~$9,246~~$7,349 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, primarily driven by strong organic base fee growth,the ~~positive~~elimination of yield-related fee waivers on money market funds, and higher securities lending revenue, partially offset by the negative impact of market beta and foreign exchange movements on average AUM and organic growth, partially offset by the impact of yield-related fee waivers on certain money market funds and strategic pricing changes to certain products, and lower securities lending revenue.AUM. Securities lending revenue of ~~$419~~$298 million ~~decreased $102~~increased $31 million from ~~$521~~$267 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, primarily reflecting ~~lower spreads, partially offset by~~ higher ~~average balances of securities on loan.~~spreads.

Investment advisory performance fees of ~~$814~~$204 million ~~increased $129~~decreased $265 million from ~~$685~~$469 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, primarily reflecting ~~higher~~lower revenue from ~~illiquid~~liquid alternative and long-only products.

Technology services revenue of ~~$942~~$673 million increased ~~$108~~$51 million from ~~$834~~$622 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, primarily reflecting higher revenue from Aladdin~~Aladdin~~.

~~Advisory and other revenue~~, ~~of $110 million decreased $35 million from $145 million for~~despite the ~~nine months ended September 30, 2020, primarily reflecting the~~negative impact of ~~the Charitable Contribution, lower earnings from a strategic minority investment and lower fees from advisory assignments.~~foreign exchange movements.

	Three Months Ended				Nine Months Ended				Three Months Ended					Six Months Ended
	September 30,				September 30,				June 30,					June 30,
(in millions)	2021		2020		2021		2020		2022		2021			2022			2021
Expense:
Employee compensation and benefits	$	1,527	$	1,411	$	4,484	$	3,700	$	1,414	$	1,548		$	2,912		$	2,957
Distribution and servicing costs:
Retrocessions		294		188		796		519		269		264			548			502
12b-1 costs		89		83		257		247		78		85			164			168
Other		202		185		560		564		225		174			434			358
Total distribution and servicing costs		585		456		1,613		1,330		572		523			1,146			1,028
Direct fund expense		354		257		994		780		304		320			633			640
General and administration expense:
Marketing and promotional		54		48		142		156		76		53			136			88
Occupancy and office related		91		81		250		239		106		80			205			159
Portfolio services		93		73		267		203		67		64			136			129
Sub-advisory										20		23			42			45
Technology		140		93		373		273		148		129			293			233
Professional services		42		36		122		121		42		41			82			80
Communications		11		14		33		40		10		11			21			22
Foreign exchange remeasurement		1		1		3		7		2		(2	)		(1	)		2
Contingent consideration fair value adjustments		29		—		33		23		—		1			1			4
Product launch costs		96		80		274		164		—		—			—			178
Charitable Contribution		—		—		—		589
Other general and administration		54		35		160		176		59		61			111			106
Total general and administration expense		611		461		1,657		1,991		530		461			1,026			1,046
Amortization of intangible assets		38		27		109		79		38		37			76			71
Total expense	$	3,115	$	2,612	$	8,857	$	7,880	$	2,858	$	2,889		$	5,793		$	5,742

Three Months Ended ~~September~~June 30, ~~2021~~2022 Compared with Three Months Ended ~~September~~June 30, ~~2020~~2021

Expense ~~increased $503~~decreased $31 million from the three months ended ~~September~~June 30, ~~2020,~~2021, largely driven by lower employee compensation and benefits expense, partially offset by higher general and administration ~~expense, higher employee compensation and benefits expense and higher direct fund expense in the third quarter of 2021.~~expense.

Employee compensation and benefits expense ~~increased $116~~decreased $134 million from the three months ended ~~September~~June 30, ~~2020, primarily~~2021, reflecting lower incentive compensation, due to lower operating income and performance fees, and lower deferred compensation driven in part by the lower mark-to-market impact of certain deferred cash compensation programs, partially offset by higher base ~~compensation, driven by previously announced base salary increases and higher headcount, and higher deferred compensation, reflecting the impact of additional grants associated with prior-year~~ compensation.

~~Direct fund expense~~ ~~increased $97 million from the three months ended September 30, 2020, primarily reflecting higher average AUM.~~

General and administration expense increased ~~$150~~$69 million from the three months ended ~~September~~June 30, ~~2020, reflecting~~2021, primarily driven by higher ~~technology~~marketing and ~~portfolio services~~promotional expense, resulting from higher travel and entertainment expense, and higher technology expense. The increase also reflected higher ~~product launch costs, primarily associated with the previously discussed BlackRock ESG Capital Allocation Trust, higher contingent consideration fair value adjustments,~~occupancy and ~~$11~~office related expense, including $15 million of ~~previously discussed~~ noncash occupancy expense related to the lease of office space for the Company’s future headquarters located at 50 Hudson Yards in New York (“Lease cost – Hudson ~~Yards.~~Yards”), which it expects to begin to occupy in late 2022 (and begin lease payments in May 2023). Lease cost – Hudson Yards has been excluded from our “as adjusted” financial results. See Non-GAAP Financial Measures for further information on as adjusted items.

~~Amortization of intangible assets expense~~Six Months Ended June 30, 2022 Compared with Six Months Ended June 30, 2021

Expense increased ~~$11~~$51 million from the ~~three~~six months ended ~~September 30, 2020, primarily reflecting amortization of intangible assets related to the Aperio Transaction.~~

~~Nine Months Ended September~~June 30, 2021, ~~Compared with Nine Months Ended September 30, 2020~~

~~Expense increased $977 million from the nine months ended September 30, 2020,~~ largely driven by ~~higher employee compensation and benefits expense and~~ higher volume-related expense, partially offset by lower employee compensation and benefits expense and lower general and administration expense, ~~reflecting~~including the impact of ~~the Charitable Contribution~~ ~~recorded in the nine months ended September 30,~~ ~~2020. Expense also reflected higher~~ product launch costs incurred during the ~~nine~~six months ended ~~September~~June 30, 2021.

Employee compensation and benefits expense ~~increased $784~~decreased $45 million from the ~~nine~~six months ended ~~September~~June 30, ~~2020, primarily~~2021, reflecting ~~higher base and~~lower incentive compensation ~~driven by higher~~due to lower operating income and ~~higher~~ performance fees, and lower deferred compensation driven in part by the lower mark-to-market impact of certain deferred cash compensation programs, partially offset by higher ~~deferred~~base compensation.

~~Direct fund expense~~ ~~increased $214 million from the nine months ended September 30, 2020, primarily reflecting higher average AUM.~~

General and administration expense decreased ~~$334~~$20 million from the ~~nine~~six months ended ~~September~~June 30, ~~2020, largely~~2021, primarily driven by $178 million of product launch costs incurred during the ~~Charitable Contribution recorded in the nine~~six months ended ~~September~~June 30, ~~2020.~~2021, partially offset by higher technology expense and higher marketing and promotional expense, resulting from higher travel and entertainment expense. General and administration expense also reflected higher occupancy and office related expense, ~~during the nine months ended September 30, 2021 related to product launch costs, technology and portfolio services expense, higher contingent consideration fair value adjustments, and~~including $27 million of Lease cost – Hudson Yards described ~~above, partially offset by lower marketing and promotional expense and the impact of costs related to certain legal matters incurred during the nine months ended September 30, 2020.~~

~~Amortization of intangible assets expense~~ ~~increased $30 million from the nine months ended September 30, 2020, primarily reflecting amortization of intangible assets related to the Aperio Transaction.~~above.

The summary of nonoperating income (expense), less net income (loss) attributable to NCI for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 was as follows:

	Three Months Ended				Nine Months Ended				Three Months Ended					Six Months Ended
	September 30,				September 30,				June 30,					June 30,
(in millions)	2021		2020		2021		2020		2022			2021		2022			2021
Nonoperating income (expense), GAAP basis⁽¹⁾	$	336	$	224	$	652	$	510	$	(347	)	$	270	$	(485	)	$	316
Less: Net income (loss) attributable to NCI		72		153		315		162		(114	)		169		(187	)		243
Nonoperating income (expense), net of NCI⁽²⁾	$	264	$	71	$	337	$	348
Nonoperating income (expense), net of NCI⁽¹⁾⁽²⁾									$	(233	)	$	101	$	(298	)	$	73

	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
	September 30,						September 30,						June 30,						June 30,
(in millions)	2021			2020			2021			2020			2022			2021			2022			2021
Net gain (loss) on investments⁽¹⁾⁽²⁾
Net gain (loss) on investments⁽¹⁾⁽²⁾
Private equity	$	124		$	18		$	212		$	8		$	(8	)	$	66		$	2		$	88
Real assets		4			6			10			11			1			3			14			6
Other alternatives⁽³⁾		13			14			43			10
Other investments⁽⁴⁾		(8	)		55			37			35
Other alternatives⁽³⁾														(5	)		17			(1	)		30
Other investments⁽⁴⁾														(112	)		48			(187	)		45
Subtotal		133			93			302			64			(124	)		134			(172	)		169
Gain related to the Charitable Contribution		—			—			—			122
Other gains (losses)⁽⁵⁾		165			23			149			279
Total net gain (loss) on investments⁽¹⁾⁽²⁾		298			116			451			465
Other gains (losses)⁽⁵⁾														(76	)		11			(57	)		(16	)
Total net gain (loss) on investments⁽¹⁾⁽²⁾														(200	)		145			(229	)		153
Interest and dividend income		14			9			41			34			21			8			39			27
Interest expense		(48	)		(54	)		(155	)		(151	)		(54	)		(52	)		(108	)		(107	)
Net interest expense		(34	)		(45	)		(114	)		(117	)		(33	)		(44	)		(69	)		(80	)
Nonoperating income (expense)⁽¹⁾	$	264		$	71		$	337		$	348
Nonoperating income (expense)⁽¹⁾													$	(233	)	$	101		$	(298	)	$	73

	GAAP												As Adjusted⁽¹⁾												GAAP												As Adjusted
	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	September 30,						September 30,						September 30,						September 30,						June 30,						June 30,						June 30,						June 30,
(in millions)	2021			2020			2021			2020			2021			2020			2021			2020			2022			2021			2022			2021			2022			2021			2022			2021
Operating income⁽¹⁾	$	1,935		$	1,757		$	5,411		$	3,847		$	1,946		$	1,757		$	5,422		$	4,436
Total nonoperating income (expense)⁽¹⁾⁽²⁾	$	264		$	71		$	337		$	348		$	264		$	71		$	337		$	226
Operating income⁽¹⁾																									$	1,668		$	1,931		$	3,432		$	3,476		$	1,727		$	2,016		$	3,549		$	3,615
Total nonoperating income (expense)⁽¹⁾⁽²⁾																									$	(233	)	$	101		$	(298	)	$	73		$	(233	)	$	101		$	(298	)	$	73
Income before income taxes	$	2,199		$	1,828		$	5,748		$	4,195		$	2,210		$	1,828		$	5,759		$	4,662		$	1,435		$	2,032		$	3,134		$	3,549		$	1,494		$	2,117		$	3,251		$	3,688
Income tax expense	$	518		$	464		$	1,490		$	811		$	520		$	410		$	1,321		$	998		$	358		$	654		$	621		$	972		$	372		$	503		$	667		$	834
Effective tax rate		23.6	%		25.4	%		25.9	%		19.3	%		23.6	%		22.5	%		22.9	%		21.4	%		24.9	%		32.2	%		19.8	%		27.4	%		24.9	%		23.8	%		20.5	%		22.6	%

~~2021.~~2022. Income tax expense for the ~~nine~~six months ended ~~September~~June 30, 2022 included $133 million of discrete tax benefits related to stock-based compensation awards that vested in the first quarter and the resolution of certain outstanding tax matters. In addition, GAAP income tax expense for the six months ended June 30, 2022 included $18 million of net noncash tax benefit related to the revaluation of certain deferred income tax liabilities, which was excluded from our as adjusted results, as it will not have a cash flow impact and to ensure comparability among periods presented.

2021. Income tax expense for the three and six months ended June 30, 2021 included $171 million of noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the UKUnited Kingdom increasing its corporate tax rate. Income tax expense for the nine months ended September 30, 2021, also reflected $42 million of discrete tax benefits primarily related to stock-based compensation awards that vested in the first quarter of 2021.

~~The~~rate, which was excluded from our as adjusted ~~effective tax rate of 22.9% for the nine months ended September 30, 2021, excluded the impact of $171 million noncash deferred tax revaluation expense mentioned above~~results, as it will not have a cash flow impact and to ensure comparability among periods presented.

~~2020.~~ Income tax expense for the ~~nine~~six months ended ~~September~~June 30, ~~2020, included a discrete tax benefit of $241 million recognized in connection with the Charitable Contribution and $78~~2021 also reflected $39 million of discrete tax ~~benefits, including~~ benefits related to stock-based compensation awards that vested in the first quarter of ~~2020.~~2021.

~~The three and nine months ended September 30, 2020 income tax expense also included the previously described $54 million noncash net expense related to legislation enacted in the UK.~~

The as adjusted effective tax rate of 22.5% and 21.4% for the three and nine months ended September 30, 2020 excluded the impact of the $54 million noncash deferred tax revaluation noncash expense mentioned above as it will not have a cash flow impact and to ensure comparability among periods presented.

The as adjusted effective tax rate of 21.4% for the nine months ended September 30, 2020 also excluded the $241 million discrete tax benefit in connection with the Charitable Contribution due to its nonrecurring nature.

The following table presents a reconciliation of the condensed consolidated statement of financial condition presented on a GAAP basis to the condensed consolidated statement of financial condition, excluding the impact of separate account assets and separate account collateral held under securities lending agreements (directly related to lending separate account securities) and separate account liabilities and separate account collateral liabilities under securities lending agreements and consolidated sponsored investment ~~products (“CIPs”).~~products.

The Company presents the as adjusted statement of financial condition as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or NCI that ultimately do not have an impact on stockholders’ equity or cash flows. Management views the as adjusted statement of financial condition, which contains non-GAAP financial measures, as an economic presentation of the Company’s total assets and liabilities; however, it 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.

Separate Account Assets and Liabilities and Separate Account Collateral Held under Securities Lending Agreements

Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company that is a registered life insurance company in the UK, and represent segregated assets held for purposes of funding individual and group pension contracts. The Company records equal and offsetting separate account liabilities. The separate account assets are not available to creditors of the Company and the holders of the pension contracts have no recourse to the Company’s assets. The net investment income attributable to separate account assets accrues directly to the contract owners and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these assets or liabilities, BlackRock earns an investment advisory fee for the service of managing these assets on behalf of its clients.

In addition, the Company records on its condensed consolidated statements of financial condition the separate account collateral ~~received~~obtained under BlackRock Life Limited securities lending arrangements for which it has legal title as its own asset in addition to an equal and offsetting separate account collateral liability for the obligation to return the collateral. The collateral is not available to creditors of the Company, and the borrowers under the securities lending arrangements have no recourse to the Company’s assets.

The Company consolidates certain sponsored investment products accounted for as variable interest entities (“VIEs”) and voting rights entities (“VREs”), (collectively, ~~“consolidated sponsored investment products” or~~ “CIPs”). See Note 2, Significant Accounting Policies, in the notes to the consolidated financial statements contained in the ~~2020~~2021 Form 10-K for more information on the Company’s consolidation policy.

The Company cannot readily access cash and cash equivalents or other assets held by CIPs to use in its operating activities. In addition, the Company cannot readily sell investments held by CIPs in order to obtain cash for use in the Company’s operations.

	September 30, 2021								June 30, 2022
(in millions)	GAAP Basis		Separate Account Assets/ Collateral⁽¹⁾		CIPs⁽²⁾		As Adjusted		GAAP Basis		Separate Account Assets/ Collateral⁽¹⁾		CIPs⁽²⁾		As Adjusted
Assets
Cash and cash equivalents	$	7,361	$	—	$	265	$	7,096	$	6,481	$	—	$	318	$	6,163
Accounts receivable		4,015		—		—		4,015		3,471		—		—		3,471
Investments		7,101		—		1,549		5,552		7,302		—		1,252		6,050
Separate account assets and collateral held under securities lending agreements		110,861		110,861		—		—		68,548		68,548		—		—
Operating lease right-of-use assets		1,798						1,798		1,543		—		—		1,543
Other assets⁽³⁾		4,664		—		96		4,568		4,898		—		86		4,812
Subtotal		135,800		110,861		1,910		23,029		92,243		68,548		1,656		22,039
Goodwill and intangible assets, net		33,836		—		—		33,836		33,723		—		—		33,723
Total assets	$	169,636	$	110,861	$	1,910	$	56,865	$	125,966	$	68,548	$	1,656	$	55,762
Liabilities
Accrued compensation and benefits	$	2,343	$	—	$	—	$	2,343	$	1,408	$	—	$	—	$	1,408
Accounts payable and accrued liabilities		1,402		—		—		1,402		1,324		—		—		1,324
Borrowings		6,474		—		—		6,474		6,635		—		—		6,635
Separate account liabilities and collateral liabilities under securities lending agreements		110,861		110,861		—		—		68,548		68,548		—		—
Deferred income tax liabilities⁽⁴⁾		3,659		—		—		3,659		2,801		—		—		2,801
Operating lease liabilities		1,946						1,946		1,815		—		—		1,815
Other liabilities		4,585		—		435		4,150		5,130		—		507		4,623
Total liabilities		131,270		110,861		435		19,974		87,661		68,548		507		18,606
Equity
Total BlackRock, Inc. stockholders’ equity		36,817		—		—		36,817		37,089		—		—		37,089
Noncontrolling interests		1,549		—		1,475		74		1,216		—		1,149		67
Total equity		38,366		—		1,475		36,891		38,305		—		1,149		37,156
Total liabilities and equity	$	169,636	$	110,861	$	1,910	$	56,865	$	125,966	$	68,548	$	1,656	$	55,762

The following discussion summarizes the significant changes in assets and liabilities on a GAAP basis. Please see the condensed consolidated statements of financial condition as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 contained in Part I, Item 1 of this filing. The discussion does not include changes related to assets and liabilities that are equal and offsetting and have no impact on BlackRock’s stockholders’ equity.

Assets. Cash and cash equivalents at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 included ~~$265~~$318 million and ~~$206~~$308 million, respectively, of cash held by CIPs (see Liquidity and Capital Resources for details on the change in cash and cash equivalents during the ~~nine~~six months ended ~~September~~June 30, ~~2021)~~2022).

Accounts receivable at ~~September~~June 30, ~~2021 increased $480~~2022 decreased $318 million from December 31, ~~2020,~~2021, primarily due to ~~higher~~lower base and performance fee receivables, partially offset by an increase in technology services receivables. Investments, including the impact ofheld by CIPs, increased ~~$182~~$40 million from December 31, ~~2020~~2021 (for more information see Investments herein). Goodwill and intangible assets ~~increased $1,022~~decreased $81 million from December 31, ~~2020,~~2021, primarily due to ~~the Aperio Transaction, partially offset by~~ amortization of intangible assets. ~~Operating lease right-of-use (“ROU”)~~ Other assets ~~at September 30, 2021~~ increased ~~$1.1~~$1.4 billion from December 31, ~~2020 (substantially offset by an increase in operating lease liabilities),~~2021, primarily related to the previously described lease of office space for the Company’s future headquarters located at 50 Hudson Yards in New York. While the Company expects to begin to occupy the new office space in late 2022 (and begin cash lease payments in May 2023), the Company is required to record an operating ROU asset and related operating lease liability from August 2021 because it obtained access to the building to begin its tenant improvements. Other assets (including property and equipment) increased $1,433 million from December 31, 2020, primarily due to an increase in unit trust receivables (substantially offset by an increase in unit trust payables recorded within other liabilities)~~, an increase in current taxes receivable and an increase in strategic minority investments.~~.

Liabilities. Accrued compensation and benefits at ~~September~~June 30, ~~2021~~2022 decreased ~~$156 million~~$1.5 billion from December 31, ~~2020,~~2021, primarily due to ~~2020~~2021 incentive compensation cash payments in the first quarter of ~~2021,~~2022, partially offset by ~~2021~~2022 incentive compensation accruals. Accounts payable and accrued liabilities at ~~September~~June 30, ~~2021 increased $374~~2022 decreased $73 million from December 31, ~~2020, primarily due to increased accruals. Operating lease liabilities~~2021. Borrowings at ~~September~~June 30, ~~2021 increased $1,191~~2022 decreased $811 million from December 31, ~~2020 (substantially offset by an increase in ROU assets),~~2021, primarily ~~related~~due to ~~the lease~~repayments of ~~office space for the Company’s future headquarters described above.~~borrowings of $750 million. Other liabilities increased ~~$1,648 million~~$1.1 billion from December 31, ~~2020,~~2021, primarily due to higher unit trust payables (substantially offset by an increase in unit trust receivables recorded within other assets), and higher other liabilities ofheld by CIPs, including deferred carried interest liabilities. Net deferred income tax liabilities at ~~September~~June 30, ~~2021 decreased $14~~2022 increased $43 million from December 31, ~~2020,~~2021, primarily due to the effects of temporary differences associated with ~~capitalized costs,~~stock-based compensation partially offset by ~~the Aperio Transaction, revaluation of certain deferred income tax liabilities due to tax legislation enacted in the UK and~~unrealized investment ~~income.~~losses.

The Company’s investments were ~~$7,101 million and $6,919 million~~$7.3 billion at ~~September~~both June 30, ~~2021~~2022 and December 31, ~~2020, respectively.~~2021. Investments include ~~consolidated investments held by~~ CIPs accounted for as ~~VREs~~VIEs and ~~VIEs.~~VREs. Management reviews BlackRock’s investments on an “economic” basis, which eliminates the portion of investments that does not impact BlackRock’s book value or net income attributable to BlackRock. 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.

The Company presents investments, as adjusted, to enable investors to understand the portion of investments that is owned by the Company, net of NCI, as a gauge to measure the impact of changes in net nonoperating income (expense) on investments to net income (loss) attributable to BlackRock.

The Company further presents net “economic” investment exposure, net of hedged investments, to reflect another helpful measure for investors. The impact of certain investments is substantially mitigated by swap hedges. Carried interest capital allocations are excluded as there is no impact to BlackRock’s stockholders’ equity until such amounts are realized as performance fees. Finally, the Company’s regulatory investment in Federal Reserve Bank stock, which is not subject to market or interest rate risk, is excluded from the Company’s net economic investment exposure.

	September 30,			December 31,			June 30,			December 31,
(in millions)	2021			2020			2022			2021
Investments, GAAP	$	7,101		$	6,919		$	7,302		$	7,262
Investments held by CIPs		(4,574	)		(4,976	)		(4,554	)		(4,623	)
Net interest in CIPs⁽¹⁾		3,025			2,490			3,302			3,391
Investments, as adjusted		5,552			4,433			6,050			6,030
Federal Reserve Bank stock		(95	)		(94	)		(90	)		(96	)
Deferred compensation investments		—			(6	)
Hedged investments		(801	)		(833	)		(651	)		(720	)
Carried interest		(1,446	)		(627	)		(1,644	)		(1,555	)
Total “economic” investment exposure⁽²⁾	$	3,210		$	2,873		$	3,665		$	3,659

The following table represents the carrying value of the Company’s economic investment exposure, by asset type, at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020:~~2021:

	September 30,		December 31,		June 30,		December 31,
(in millions)	2021		2020		2022		2021
Equity⁽¹⁾	$	1,051	$	835	$	1,252	$	1,352
Fixed income⁽²⁾		758		958		602		600
Multi-asset⁽³⁾		80		127		107		125
Alternatives:		—
Private equity		746		418		980		960
Real assets		256		251		312		279
Other alternatives⁽⁴⁾		319		284		412		343
Alternatives subtotal		1,321		953		1,704		1,582
Total “economic” investment exposure	$	3,210	$	2,873	$	3,665	$	3,659

As adjusted investment activity for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was as follows:

(in millions)	Nine Months Ended September 30, 2021			Six Months Ended June 30, 2022
Investments, as adjusted, beginning balance	$	4,433		$	6,030
Purchases/capital contributions		1,096			702
Sales/maturities		(970	)		(320	)
Distributions⁽¹⁾		(147	)		(78	)
Market appreciation(depreciation)/earnings from equity method investments		376			(291	)
Carried interest capital allocations/(distributions)		819			89
Other⁽²⁾		(55	)		(82	)
Investments, as adjusted, ending balance	$	5,552		$	6,050

⁽¹⁾ Amount includes distributions representing return of capital and return on investments.

The condensed consolidated statements of cash flows include the cash flows of the CIPs. The Company uses an adjusted cash flow statement, which excludes the impact of CIPs, as a supplemental non-GAAP measure to assess liquidity and capital requirements. The Company believes that its cash flows, excluding the impact of the CIPs, provide investors with useful information on the cash flows of BlackRock relating to its ability to fund additional operating, investing and financing activities. BlackRock’s management does not advocate that investors consider such non-GAAP measures in isolation from, or as a substitute for, its cash flows presented in accordance with GAAP.

The following table presents a reconciliation of the condensed consolidated statements of cash flows presented on a GAAP basis to the condensed consolidated statements of cash flows, excluding the impact of the cash flows of CIPs:

(in millions)	GAAP Basis			Impact on Cash Flows of CIPs			Cash Flows Excluding Impact of CIPs			GAAP Basis			Impact on Cash Flows of CIPs			Cash Flows Excluding Impact of CIPs
Cash, cash equivalents and restricted cash, December 31, 2020	$	8,681		$	206		$	8,475
Cash, cash equivalents and restricted cash, December 31, 2021										$	9,340		$	308		$	9,032
Net cash provided by/(used in) operating activities		3,027			(963	)		3,990			1,223			(415	)		1,638
Net cash provided by/(used in) investing activities		(1,579	)		(59	)		(1,520	)		(500	)		(5	)		(495	)
Net cash provided by/(used in) financing activities		(2,695	)		1,081			(3,776	)		(3,272	)		430			(3,702	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(56	)		—			(56	)		(293	)		—			(293	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		(1,303	)		59			(1,362	)		(2,842	)		10			(2,852	)
Cash, cash equivalents and restricted cash, September 30, 2021	$	7,378		$	265		$	7,113
Cash, cash equivalents and restricted cash, June 30, 2022										$	6,498		$	318		$	6,180

Sources of BlackRock’s operating cash primarily include base fees and securities lending revenue, performance fees, technology services revenue, advisory and other revenue and distribution fees. BlackRock uses its cash to pay all operating expenses, interest and principal on borrowings, income taxes, dividends on BlackRock’s capital stock, repurchases of the Company’s stock, acquisitions, capital expenditures and purchases of co-investments and seed investments.

For details of the Company’s GAAP cash flows from operating, investing and financing activities, see the condensed consolidated statements of cash flows contained in Part I, Item 1 of this filing.

Cash flows provided by/(used in) operating activities, excluding the impact of CIPs, primarily include the receipt of base fees, securities lending revenue, ~~and~~ performance fees and technology services revenue, offset by the payment of operating expenses incurred in the normal course of business, including year-end incentive and deferred compensation accrued ~~for in the~~during prior ~~year.~~years, and income tax payments.

Cash flows used in investing activities, excluding the impact of CIPs, for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 were ~~$1.5 billion~~$495 million and primarily reflected ~~$1.1 billion of cash outflows related to the Aperio Transaction, $285~~$266 million of net investment purchases and ~~$215~~$263 million of purchases of property and ~~equipment, partially offset by $77 million of distributions of capital from equity method investees.~~equipment.

Cash flows used in financing activities, excluding the impact of CIPs, for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 were ~~$3.8~~$3.7 billion, primarily resulting from ~~$1.9~~$1.5 billion of cash dividend payments, ~~and $1.2~~$1.4 billion of share repurchases, including ~~$900 million~~$1 billion in open market transactions and ~~$282 million~~$0.4 billion of employee tax withholdings related to employee stock transactions, and ~~$750 million~~$0.8 billion of repayments of ~~long-term~~ borrowings.

The Company manages its financial condition and funding to maintain appropriate liquidity for the business. Management believes that the Company’s liquid assets, continuing cash flows from operations, borrowing capacity under the Company’s existing revolving credit facility and uncommitted commercial paper private placement program, provide sufficient resources to meet the Company’s short-term and long-term cash needs, including operating, debt and other obligations as they come due and anticipated future capital requirements. Liquidity resources at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 were as follows:

	September 30,			December 31,			June 30,			December 31,
(in millions)	2021			2020			2022			2021
Cash and cash equivalents⁽¹⁾	$	7,361		$	8,664		$	6,481		$	9,323
Cash and cash equivalents held by CIPs⁽²⁾⁽¹⁾		(265	)		(206	)		(318	)		(308	)
Subtotal(2)		7,096			8,458			6,163			9,015
Credit facility – undrawn		4,400			4,000			4,700			4,400
Total liquidity resources	$	11,496		$	12,458		$	10,863		$	13,415

Total liquidity resources decreased ~~$962 million~~$2.6 billion during the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, primarily reflecting cash payments of ~~2020~~2021 year-end incentive awards, cash dividend payments of ~~$1.9~~$1.5 billion, share repurchases of ~~$1.2~~$1.4 billion ~~approximately $1.1~~and $0.8 billion of ~~cash outflow related to the Aperio Transaction and~~ repayments of borrowings, ~~of $750 million,~~ partially offset by cash flows from other operating activities and a ~~$400~~$300 million increase in the aggregate commitment amount ofunder the credit facility.

A significant portion of the Company’s ~~$5,552 million~~$6.1 billion of investments, as adjusted, is illiquid in nature and, as such, cannot be readily convertible to cash.

Share Repurchases. During the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, the Company repurchased ~~1.1~~approximately 1.4 million of common shares under the Company’s existing share repurchase program for approximately ~~$900 million.~~$1 billion. At ~~September~~June 30, ~~2021,~~2022, there were ~~3.9~~approximately 2.2 million shares still authorized to be repurchased under the program.

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.

BlackRock Institutional Trust Company, N.A. (“BTC”) is chartered as a national bank that does not accept deposits or make commercial loans and whose powers are limited to trust and other fiduciary activities. BTC provides investment management and other fiduciary services, including investment advisory and securities lending agency services, to institutional clients. BTC is subject to regulatory capital and liquid asset requirements administered by the US Office of the Comptroller of the Currency.

At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company was required to maintain approximately ~~$2.4~~$2.2 billion and ~~$2.2~~$2.3 billion ~~respectively,~~ in net capital in certain regulated subsidiaries, including BTC, entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the ~~UK,~~United Kingdom, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.

~~2021~~2022 Revolving Credit Facility. Since 2011, the Company has maintained an unsecured revolving credit facility which is available for working capital and general corporate purposes (the “2022 credit facility”). In March ~~2021,~~2022, the ~~Company’s~~2022 credit facility was amended to, among other things, (i) increase the aggregate commitment amount by $300 million to ~~$4.4~~$4.7 billion, ~~and to~~(ii) extend the maturity date to March ~~2026 (the “2021 credit facility”). In addition,~~2027, (iii) change the ~~amendment incorporated certain sustainability-linked pricing metrics into the agreement. Specifically, the Company’s applicable interest~~ rate ~~and commitment fee are subject to upward or downward adjustments on an annual basis if the Company achieves, or fails to achieve, certain specified targets. Interest on~~for borrowings ~~outstanding accrues at~~denominated in US dollars from a rate based on the ~~applicable~~ London Interbank Offered Rate (“LIBOR”) to a rate based on the secured overnight financing rate (“SOFR”) subject to certain adjustments and (iv) raise and/or ~~an applicable replacement benchmark, plus a spread.~~add certain specified targets for the sustainability-linked pricing mechanics. The ~~2021~~2022 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, ~~increasing~~which could increase the overall size of the ~~2021~~2022 credit facility to an aggregate principal amount ~~not~~of up to ~~exceed $5.4~~$5.7 billion. The ~~2021~~2022 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 ~~September~~June 30, ~~2021. The 2021 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities.~~2022. At ~~September~~June 30, ~~2021,~~2022, the Company had no amount outstanding under the ~~2021~~2022 credit facility.

Long-term Notes.At ~~September~~June 30, ~~2021,~~2022, the principal amount of long-term ~~borrowings~~notes outstanding was ~~$6.5~~$6.7 billion. See Note 15, Borrowings~~Borrowings~~, in the ~~2020~~2021 Form 10-K for more information on overall borrowings outstanding as of December 31, ~~2020.~~2021.

In June 2022, the Company fully repaid $750 million of 3.375% notes at maturity.

During the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, the Company paid approximately ~~$148~~$95 million of interest on long-term ~~borrowings.~~notes. Future principal repayments and interest requirements at ~~September~~June 30, ~~2021~~2022 were as follows:

(in millions)
Year	Principal		Interest		Total Payments		Principal		Interest		Total Payments
Remainder of 2021	$	—	$	41	$	41
2022		750		161		911
Remainder of 2022							$	—	$	79	$	79
2023		—		148		148		—		168		168
2024		1,000		131		1,131		1,000		151		1,151
2025⁽¹⁾		811		113		924		732		133		865
2026		—		103		103		—		124		124
2027								700		113		813
Thereafter		3,950		283		4,233		4,250		286		4,536
Total	$	6,511	$	980	$	7,491	$	6,682	$	1,054	$	7,736

~~In May 2021, the Company fully repaid $750 million of 4.25% notes at maturity.~~

Investment Commitments. At ~~September~~June 30, ~~2021,~~2022, the Company had ~~$905~~$806 million of various capital commitments to fund sponsored investment products, including CIPs. These products include various illiquid alternative products, including private equity funds and 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.

~~Carried Interest Clawback.~~ As a general partner in certain investment products, including private equity partnerships and certain hedge funds, the Company may receive carried interest cash distributions from the partnerships in accordance with distribution provisions of the partnership agreements. The Company may, from time to time, be required to return all or a portion of such distributions to the limited partners in the event the limited partners do not achieve a return as specified in the various partnership agreements. Therefore, BlackRock records carried interest subject to such clawback provisions in investments, or cash and cash equivalents to the extent that it is distributed, and as a deferred carried interest liability on its condensed consolidated statements of financial condition. Carried interest is recorded as performance fees on BlackRock’s condensed consolidated statements of income when fees are no longer probable of significant reversal.

~~Indemnifications.~~ On behalf of certain clients, the Company lends securities to highly rated banks and broker-dealers. In these securities lending transactions, the borrower is required to provide and maintain collateral at or above regulatory minimums. Securities on loan are marked to market daily to determine if the borrower is required to pledge additional collateral. 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 September 30, 2021 and subject to this type of indemnification was $279 billion. In the Company’s capacity as lending agent, cash and securities totaling $299 billion were held as collateral for indemnified securities on loan at September 30, 2021. The fair value of these indemnifications was not material at September 30, 2021.

While the collateral pledged by a borrower is intended to be sufficient to offset the borrower’s obligations to return securities borrowed and any other amounts owing to the lender under the relevant securities lending agreement, in the event of a borrower default, the Company can give no assurance that the collateral pledged by the borrower will be sufficient to fulfill such obligations. If the amount of such pledged collateral is not sufficient to fulfill such obligations to a client for whom the Company has provided indemnification, BlackRock would be responsible for the amount of the shortfall. These indemnifications cover only the collateral shortfall described above, and do not in any way guarantee, assume or otherwise insure the investment performance or return of any cash collateral vehicle into which securities lending cash collateral is invested.

The preparation of condensed consolidated 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 condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ significantly from those estimates. These estimates, judgments and assumptions are affected by the Company’s application of accounting policies. Management considers the following ~~critical~~ accounting policies ~~important~~and estimates critical to understanding the condensed consolidated financial statements. These policies and estimates are considered critical because they had a material impact, or are reasonably likely to have a material impact on the Company’s condensed consolidated financial statements and because they require management to make significant judgments, assumptions or estimates. For a summary of these and additional accounting policies, see Note 2, Significant Accounting Policies, in the notes to the condensed consolidated financial statements. In addition, see Critical Accounting Policies and Estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 2, Significant Accounting Policies, in the ~~2020~~2021 Form 10-K for further information.

Consolidation. ~~In the normal course of business,~~The Company consolidates entities in which the Company ishas a controlling financial interest. The company has a controlling financial interest when it owns a majority of the ~~manager of various types of sponsored investment vehicles. The Company performs an analysis for investment products to determine if the product~~VRE or is a ~~VIE or~~primary beneficiary (“PB”) of a ~~VRE.~~VIE. Assessing whether an entity is a VIE or a VRE involves judgment and ~~analysis.~~analysis on a structure-by-structure basis. Factors considered in this assessment include the entity’s legal organization, the entity’s capital structure and equity ownership, the rights of equity investment holders, the Company’s contractual involvement with and economic interest in the entity and any related party or de facto agent implications of the Company’s involvement with the entity. ~~Investments~~Entities that are determined to be VREs are consolidated if the Company can exert control over the financial and operating policies of the investee, which generally exists if there is greater than 50% voting interest. ~~Investments~~Entities that are determined to be VIEs are consolidated if the Company is the ~~primary beneficiary (“PB”)~~PB of the entity. BlackRock is deemed to be the PB of a VIE if it a) has the power to direct the activities that most significantly impact the ~~entities’~~entity’s economic performance and b) has the obligation to absorb losses or the right to receive benefits that potentially could be significant to the VIE. There is judgment involved in assessing whether the Company is the PB of a VIE. In addition, the Company’s ownership interest in VIEs is subject to variability and is impacted by actions of other investors such as on-going redemptions and contributions. The Company generally consolidates VIEs in which it holds an economic interest of 10% or greater and deconsolidates such VIEs once equity ownership falls below 10%. As of June 30, 2022, the Company was deemed to be the PB of 80 VIEs. See Note 6, Consolidated Sponsored Investment Products, in the notes to the condensed consolidated financial statements for more information.

In addition to sponsored investment products, the Company consolidates an affiliated entity, which it deems to be a VRE, because it can exert control over its financial and operating policies, based on the Company’s 50.1% ownership and voting rights.

Fair Value ~~Measurements~~Measurements.. The Company’s assessment of the significance of a particular input to the fair value measurement according to the fair value hierarchy (i.e., Level 1, 2 and 3 inputs, as defined) in its entirety requires judgment and considers factors specific to the financial instrument. See Note 2, Significant Accounting Policies, and Note 8, Fair Value Disclosures, in the notes to the condensed consolidated financial statements for more information on fair value measurements.

Investment Advisory Performance Fees / Carried Interest. The Company receives investment advisory performance fees, including incentive allocations (carried interest) from certain actively managed investment funds and certain SMAs. These performance fees are dependent upon exceeding specified relative or absolute investment return thresholds, which ~~may~~ vary by product or account, and include monthly, quarterly, annual or longer measurement periods.

Performance fees, including carried interest, are recognized when it is determined that they are no longer probable of significant reversal (such as upon the sale of a fund’s investment or when the ~~amount of AUM becomes known as of~~investment performance exceeds a contractual threshold at the end of a specified measurement period). Given the unique nature of each fee arrangement, contracts with customers are evaluated on an individual basis to determine the timing of revenue recognition. Significant ~~judgement~~judgment is involved in making such determination. Performance fees typically arise from investment management services that began in prior reporting periods. Consequently, a portion of the fees the Company recognizes may be partially related to the services performed in prior periods that meet the recognition criteria in the current period. At each reporting date, the Company considers various factors in estimating performance fees to be recognized, including carried interest. These factors include but are not limited to whether: (1) the ~~fees~~amounts are dependent on the ~~market~~financial markets and, thus, are highly susceptible to factors outside the Company’s influence; (2) the ~~fees~~ultimate payments have a large number and a broad range of possible amounts; and (3) the funds or SMAs have the ability to a) invest or reinvest their sales ~~proceeds.~~proceeds or b) distribute their sales proceeds and determine the timing of such distributions.

The Company is ~~allocated~~allocated/distributed carried interest from certain alternative investment products upon exceeding performance thresholds. The Company may be required to reverse/return all, or part, of such carried interest allocations/distributions depending upon future performance of these products. Carried interest subject to such clawback provisions is recorded in investments or cash and cash equivalents to the extent that it is distributed, on its condensed consolidated statements of financial condition.

The Company records a liability for deferred carried interest to the extent it receives cash or capital allocations related to carried interest prior to meeting the revenue recognition criteria. At ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had ~~$1.3~~$1.6 billion and ~~$584 million,~~$1.5 billion, respectively, of deferred carried interest recorded in other liabilities on the condensed consolidated statements of financial condition. A portion of the deferred carried interest may also be paid to certain employees. The ultimate timing of the recognition of performance fee revenue and related compensation expense, if any, ~~for these products~~ is unknown. See Note 16, Revenue, in the notes to the condensed consolidated financial statements for detailed changes in the deferred carried interest liability balance for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~

AUM Market Price Risk. BlackRock’s investment advisory and administration fees ~~(collectively “base fees”)~~ are primarily comprised of fees based on a percentage of the value of ~~assets under management (“AUM”)~~AUM and, in some cases, performance fees expressed as a percentage of the returns realized on AUM. At ~~September~~June 30, ~~2021,~~2022, the majority of the Company’s ~~base~~investment advisory and administration fees were based on average or period end AUM of the applicable investment funds or separate accounts. Movements in equity market prices, interest rates/credit spreads, foreign exchange rates or all three could cause the value of AUM to decline, which would result in lower ~~base~~investment advisory and administration fees.

Corporate Investments Portfolio Risks. As a leading investment management firm, BlackRock devotes significant resources across all of its operations to identifying, measuring, monitoring, managing and analyzing market and operating risks, including the management and oversight of its own investment portfolio. The Board of Directors of the Company has adopted guidelines for the review of investments to be made by the Company, requiring, among other things, that investments be reviewed by certain senior officers of the Company, and that certain investments may be referred to the Audit Committee or the Board of Directors, depending on the circumstances, for approval.

In the normal course of its business, BlackRock is exposed to equity market price risk, interest rate/credit spread risk and foreign exchange rate risk associated with its corporate investments.

BlackRock has investments primarily in sponsored investment products that invest in a variety of asset classes, including real assets, private equity and hedge funds. Investments generally are made for co-investment purposes, to establish a performance track record or for regulatory purposes. Currently, the Company has a seed capital hedging program in which it enters into swaps to hedge market and interest rate exposure to certain investments. At ~~September~~June 30, ~~2021,~~2022, the Company had outstanding total return swaps with an aggregate notional value of approximately ~~$801~~$651 million.

At ~~September~~June 30, ~~2021,~~2022, approximately $4.6 billion of BlackRock’s investments were maintained in consolidated sponsored investment products accounted for as variable interest entities ~~and~~or voting rights entities. Excluding the impact of the Federal Reserve Bank stock, carried interest and certain investments that are hedged via the seed capital hedging program, the Company’s economic exposure to its investment portfolio is ~~$3.2~~$3.7 billion. See Statement of Financial Condition Overview-Investments in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information on the Company’s investments.

Equity Market Price Risk. At ~~September~~June 30, ~~2021,~~2022, the Company’s net exposure to equity market price risk in its investment portfolio was approximately ~~$1,582 million~~$1.9 billion of the Company’s total economic investment exposure. Investments subject to market price risk include private equity and real assets investments, hedge funds and funds of funds as well as mutual funds. The Company estimates that a hypothetical 10% adverse change in market prices would result in a decrease of approximately ~~$158~~$189 million in the carrying value of such investments.

Interest Rate/Credit Spread Risk. At ~~September~~June 30, ~~2021,~~2022, the Company was exposed to ~~interest-rate~~interest rate risk and credit spread risk as a result of approximately ~~$1,628 million~~$1.8 billion of investments in debt securities and sponsored investment products that invest primarily in debt securities. Management considered a hypothetical 100 basis point fluctuation in interest rates or credit spreads and estimates that the impact of such a fluctuation on these investments, in the aggregate, would result in a decrease, or increase, of approximately ~~$29~~$34 million in the carrying value of such investments.

Foreign Exchange Rate Risk. As discussed above, the Company invests in sponsored investment products that invest in a variety of asset classes. The carrying value of the total economic investment exposure denominated in foreign currencies, primarily the British pound and Euro, was ~~$912~~$190 million at ~~September~~June 30, ~~2021.~~2022. A 10% adverse change in the applicable foreign exchange rates would result in approximately a ~~$91~~$79 million decline in the carrying value of such investments.

Other Market Risks. The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange risk movements. At ~~September~~June 30, ~~2021,~~2022, the Company had outstanding forward foreign currency exchange contracts with an aggregate notional value of approximately ~~$2.2~~$1.7 billion.

Disclosure Controls and Procedures. Under the direction of BlackRock’s Chief Executive Officer and Chief Financial Officer, BlackRock evaluated the effectiveness of its disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, BlackRock’s Chief Executive Officer and Chief Financial Officer have concluded that BlackRock’s disclosure controls and procedures were effective.

Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting that occurred during the quarter ended ~~September~~June 30, ~~2021~~2022 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting. In addition, there was no material impact to our internal control over financial reporting while a majority of our employees are working remotely due to the COVID-19 pandemic. The Company is continually monitoring and assessing the COVID-19 situation to determine any potential impact on the design and operating effectiveness of our internal control over financial reporting.

For a discussion of the Company’s legal proceedings, see Note 15, Commitments and Contingencies, in the notes to the condensed consolidated financial statements of this Form 10-Q.

~~The following discussion supplements~~In addition to the ~~discussion of risk factors previously disclosed~~other information set forth in ~~BlackRock’s~~this report, the risks discussed in BlackRock's Annual Report on Form 10-K for the year ended December 31, ~~2020:~~

~~The COVID-19 pandemic may adversely~~2021 could materially affect ~~BlackRock’s~~our business, ~~operations and~~ financial condition, ~~which may cause its AUM, revenue~~operating results and ~~earnings to decline.~~

Towards the end of the first quarter of 2020, the pandemic began to impact BlackRock’s business. While global markets have significantly recovered since then, the effects of the pandemic are ongoing and could be prolonged or worsen and have an ongoing adverse impact on BlackRock’s business, including its operations and financial condition, as a result of, among other things:

The aggregate extent to which COVID-19, and the related impact on the global economy, affect BlackRock’s business, results of operations and financial condition, will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and any recovery period, the emergence and spread of variants of the COVID-19 virus, the continuing prevalence of severe, unconstrained and/or escalating rates of infection in certain countries and regions, the availability, adoption and efficacy of treatments and vaccines, future actions taken by governmental authorities, central banks and other third parties (including new financial regulation and other regulatory reform) in response to the pandemic, and the effects of the COVID-19 pandemic on BlackRock’s products, clients, vendors and employees. Moreover, the effects of the COVID-19 pandemic may heighten the other risks described in the section entitled “Risk Factors” in BlackRock’s most recent Annual Report on Form 10-K and any subsequent reports filed with the Securities and Exchange Commission.nonoperating results.

During the three months ended ~~September~~June 30, ~~2021,~~2022, the Company made the following purchases of its common stock, which is registered pursuant to Section 12(b) of the Exchange Act.

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 thereunto duly authorized.

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

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

		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	3935

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	7567

Item 4.	Controls and Procedures	7668

Item 1.	Legal Proceedings	7769

Item 1A.	Risk Factors	7870

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7971

Item 6.	Exhibits	8072


	Estimate of
(in millions)	Fair Value
Accounts receivable	$	16
Finite-lived intangible assets:
Customer relationships⁽²⁾		270
Other		17
Goodwill		787
Deferred income tax liabilities		(16	)
Other liabilities assumed		(12	)
Total consideration, net of cash acquired	$	1,062

Summary of consideration, net of cash acquired:
Cash paid	$	1,066
Cash acquired		(4	)
Total consideration, net of cash acquired	$	1,062

(in millions)
Year	Amount
2021 (excluding the nine months ended September 30, 2021)	$	10
2022		40
2023		38
2024		32
2025		29
Thereafter		111
Total	$	260

September 30, 2021 (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⁾		September 30, 2021
Assets:
Investments
Debt securities:
Held-to-maturity investments	$	—	$	—	$	—	$	—	$	386	$	386
Trading securities		—		1,450		30		—		—		1,480
Total debt securities		—		1,450		30		—		386		1,866
Equity securities at FVTNI:
Equity securities/mutual funds		1,591		—		—		—		—		1,591
Equity method:
Equity and fixed income mutual funds		339		—		—		—		—		339
Hedge funds/funds of hedge funds		—		—		—		359		—		359
Private equity funds		—		—		—		633		—		633
Real assets funds		—		—		—		213		—		213
Total equity method		339		—		—		1,205		—		1,544
Bank loans		—		9		273		—		—		282
Federal Reserve Bank Stock		—		—		—		—		95		95
Carried interest		—		—		—		—		1,446		1,446
Other investments⁽³⁾		—		4		5		94		174		277
Total investments		1,930		1,463		308		1,299		2,101		7,101
Other assets⁽⁴⁾		197		23		—		—		—		220
Separate account assets		65,704		30,146		—		—		905		96,755
Separate account collateral held under securities lending agreements:
Equity securities		10,551		—		—		—		—		10,551
Debt securities		—		3,555		—		—		—		3,555
Total separate account collateral held under securities lending agreements		10,551		3,555		—		—		—		14,106
Total	$	78,382	$	35,187	$	308	$	1,299	$	3,006	$	118,182
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	10,551	$	3,555	$	—	$	—	$	—	$	14,106
Other liabilities⁽⁵⁾		—		41		340		—		—		381
Total	$	10,551	$	3,596	$	340	$	—	$	—	$	14,487

(in millions)	Indefinite-lived		Finite-lived			Total
December 31, 2020	$	17,578	$	685		$	18,263
Acquisitions⁽¹⁾		—		322			322
Amortization expense		—		(109	)		(109	)
September 30, 2021	$	17,578	$	898		$	18,476

	Total Number of Shares Purchased⁽¹⁾		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2021 through July 31, 2021		118,153	$	869.81		114,975		4,158,936
August 1, 2021 through August 31, 2021		201,718	$	914.12		200,337		3,958,599
September 1, 2021 through September 30, 2021		22,901	$	946.39		17,756		3,940,843
Total		342,772	$	901.00		333,068

Exhibit No.		Description

~~3.1(1)~~10.1(1)		~~Amended~~Amendment No. 12, dated as of March 31, 2022, by and ~~Restated Certificate~~among BlackRock, Inc., certain of ~~Incorporation of BlackRock~~

~~3.2(2)~~		~~Certificate of Change of Registered Agent and/or Registered Office~~

~~3.3(2)~~		~~Amended~~its subsidiaries, Wells Fargo Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and ~~Restated Bylaws of BlackRock~~a lender, and the banks and other financial institutions referred to therein.

31.1		Section 302 Certification of Chief Executive Officer

31.2		Section 302 Certification of Chief Financial Officer

32.1		Section 906 Certification of Chief Executive Officer and Chief Financial Officer

101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

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101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

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104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

	BLACKROCK, INC.
	(Registrant)

	By:	/s/ Gary S. Shedlin
Date: ~~November~~August 5, ~~2021~~2022		Gary S. Shedlin
		Senior Managing Director & Chief Financial Officer (Principal Financial Officer)