BlackRock (BLK) 10-Q 10 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 30, 2010
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31
Trading Symbol	BLK
Entity Registrant Name	BlackRock Inc.
Entity Central Index Key	0001364742
Current Fiscal Year End Date	--02-26
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		64,324,009
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Condition (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Assets
Cash and cash equivalents	$2,703	$4,708
Accounts receivable	1,868	1,718
Due from related parties	170	189
Investments	1,096	1,049
Separate account assets	116,187	119,629
Assets of consolidated variable interest entities
Cash and cash equivalents of VIEs	90
Bank loans and other investments of VIEs	1,288
Collateral held under securities lending agreements	13,417	19,335
Deferred mutual fund sales commissions, net	100	103
Property and equipment (net of accumulated depreciation of $366 and $333 at March 31, 2010 and December 31, 2009, respectively)	450	443
Intangible assets (net of accumulated amortization of $506 and $466 at March 31, 2010 and December 31, 2009, respectively)	17,626	17,666
Goodwill	12,641	12,638
Other assets	424	588
Total assets	168,060	178,066
Liabilities
Accrued compensation and benefits	616	1,482
Accounts payable and accrued liabilities	1,037	850
Due to related parties	391	490
Short-term borrowings	880	2,234
Liabilities of consolidated variable interest entities
Borrowings of VIEs	1,214
Other liabilities of consolidated VIEs	4
Convertible debentures	95	243
Long-term borrowings	3,191	3,191
Separate account liabilities	116,187	119,629
Collateral liability under securities lending agreements	13,417	19,335
Deferred tax liabilities	5,577	5,518
Other liabilities	504	492
Total liabilities	143,113	153,464
Commitments and contingencies (Note 12)
Temporary equity
Redeemable non-controlling interests	79	49
BlackRock, Inc. stockholders' equity
Common stock, $0.01 par value; Shares authorized: 500,000,000 at March 31, 2010 and December 31, 2009; Shares issued: 64,242,628 and 62,776,777 at March 31, 2010 and December 31, 2009, respectively; Shares outstanding: 63,360,738 and 61,896,236 at March 31, 2010 and December 31, 2009, respectively;	1	1
Preferred stock (Note 16)	1	1
Additional paid-in capital	22,174	22,127
Retained earnings	2,663	2,436
Appropriated retained earnings	114
Accumulated other comprehensive (loss)	(165)	(96)
Escrow shares, common, at cost (868,940 shares held at March 31, 2010 and December 31, 2009)	(137)	(137)
Treasury stock, common, at cost (12,950 and 11,601 shares held at March 31, 2010 and December 31, 2009, respectively)	(3)	(3)
Total BlackRock, Inc. stockholders' equity	24,648	24,329
Nonredeemable non-controlling interests	174	224
Nonredeemable non-controlling interests of consolidated variable interest entities	46
Total permanent equity	24,868	24,553
Total liabilities, temporary equity and permanent equity	$168,060	$178,066

1_Condensed Consolidated Statem

Condensed Consolidated Statements of Financial Condition (Parenthetical) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Property and equipment, accumulated depreciation	$366	$333
Intangible assets, accumulated amortization	$506	$466
Common stock, par value	0.01	0.01
Common stock, Shares authorized	500,000,000	500,000,000
Common stock, Shares issued	64,242,628	62,776,777
Common stock, Shares outstanding	63,360,738	61,896,236
Escrow shares common stock	868,940	868,940
Treasury stock, shares	12,950	11,601

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Income (USD $)
In Millions, except Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Investment advisory, administration fees and securities lending revenue
Related parties	$1,149	$507
Other third parties	604	293
Investment advisory, administration fees and securities lending revenue	1,753	800
Investment advisory performance fees	50	11
BlackRock Solutions and advisory	113	135
Distribution fees	28	25
Other revenue	51	16
Total revenue	1,995	987
Expenses
Employee compensation and benefits	773	351
Distribution and servicing costs
Related parties	64	103
Other third parties	36	24
Amortization of deferred mutual fund sales commissions	26	27
Direct fund expenses	113	13
General and administration	289	140
Restructuring charges		22
Amortization of intangible assets	40	36
Total expenses	1,341	716
Operating income	654	271
Non-operating income (expense)
Net gain (loss) on investments	38	(172)
Interest and dividend income	4	8
Interest expense	(40)	(15)
Total non-operating income (expense)	2	(179)
Income before income taxes	656	92
Income tax expense	228	30
Net income	428	62
Less:
Net income (loss) attributable to nonredeemable non-controlling interests	5	(22)
Net income attributable to BlackRock, Inc.	$423	$84
Earnings per share attributable to BlackRock, Inc. common stockholders:
Basic	2.2	0.63
Diluted	2.17	0.62
Cash dividends declared and paid per share	$1	0.78
Weighted-average common shares outstanding:
Basic	189,676,023	130,216,218
Diluted	192,152,251	131,797,189

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions	3 Months Ended Mar. 31, 2010		3 Months Ended Mar. 31, 2009
Net Income	$428		$62
Other comprehensive income:
Unrealized holding gains (losses), net of tax	3		(1)
Less: reclassification adjustment included in net income	1		(8)
Net change from available-for-sale investments, net of tax	2	[1]	7	[1]
Minimum pension liability adjustment	(1)		1
Foreign currency translation adjustments	(70)		(14)
Comprehensive income attributable to BlackRock, Inc.	$359		$56
[1]The tax benefit (expense) on unrealized holding gains (losses) was ($1) million and ($3) million during the three months ended March 31, 2010 and 2009, respectively.

4_Condensed Consolidated Statem

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Change in net unrealized gains (losses) from available-for-sale investments, tax benefit (expense)	($1)	($3)

5_Condensed Consolidated Statem

Condensed Consolidated Statements of Changes in Equity (USD $)
In Millions	Additional Paid-in Capital		Retained Earnings	Appropriated Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Common Shares held in Escrow	Treasury Stock Common	Total Stockholders' Equity	Nonredeemable Non-controlling Interests	Nonredeemable Non-controlling Interests of Consolidated VIEs	Redeemable Non-Controlling Interests/Temporary Equity	Total
Beginning Balance at Dec. 31, 2008	$10,474	[1]	$1,982		($186)	($143)	($58)	$12,069	$225		$266	$12,294
Reclass to temporary equity - convertible debt	(3)	[1]						(3)				(3)
Net income			84					84	(22)			62
Dividends paid, net of dividend expense for unvested RSUs			(105)					(105)				(105)
Stock-based compensation	82	[1]						82				82
Net issuance of common shares related to employee stock transactions	(70)	[1]					33	(37)				(37)
PNC LTIP capital contribution	6	[1]						6				6
Net tax benefit (shortfall) from stock-based compensation	(17)	[1]						(17)				(17)
Minimum pension liability adjustment					1			1				1
Subscriptions/(redemptions/distributions)-non-controlling interest holders									(2)		(132)	(2)
Foreign currency translation adjustments					(14)			(14)				(14)
Change in net unrealized gain (loss) from available-for-sale investments, net of tax					7			7				7	[2]
Ending Balance at Mar. 31, 2009	10,472	[1]	1,961		(192)	(143)	(25)	12,073	201		134	12,274
Beginning Balance at Dec. 31, 2009	22,129	[3]	2,436		(96)	(137)	(3)	24,329	224		49	24,553
January 1, 2010 initial recognition of ASU 2009-17				114				114	(49)	49		114
Net income			423					423	4	1		428
Dividends paid, net of dividend expense for unvested RSUs			(196)					(196)				(196)
Stock-based compensation	108	[3]						108				108
Exchange of common stock for preferred shares series B	128	[3]					(128)
Net issuance of common shares related to employee stock transactions	(171)	[3]					64	(107)				(107)
PNC LTIP capital contribution	5	[3]						5				5
Convertible debt conversions	(64)	[3]					64
Net tax benefit (shortfall) from stock-based compensation	41	[3]						41				41
Minimum pension liability adjustment					(1)			(1)				(1)
Subscriptions/(redemptions/distributions)-non-controlling interest holders									(6)	(4)	19	(10)
Net consolidations (deconsolidations) of sponsored investment funds											11
Other change in non-controlling interests									1			1
Foreign currency translation adjustments					(70)			(70)				(70)
Change in net unrealized gain (loss) from available-for-sale investments, net of tax					2			2				2	[2]
Ending Balance at Mar. 31, 2010	$22,176	[3]	$2,663	$114	($165)	($137)	($3)	$24,648	$174	$46	$79	$24,868
[1]Includes $1 of preferred stock at March 31, 2009 and $1 of common stock at December 31, 2008.
[2]The tax benefit (expense) on unrealized holding gains (losses) was ($1) million and ($3) million during the three months ended March 31, 2010 and 2009, respectively.
[3]Includes $1 of common stock and $1 of preferred stock at March 31, 2010 and December 31, 2009.

6_Condensed Consolidated Statem

Condensed Consolidated Statements of Changes in Equity (Parenthetical) (USD $)
In Millions	3 Months Ended Mar. 31, 2010 Common stock	3 Months Ended Mar. 31, 2009 Common stock	12 Months Ended Dec. 31, 2009 Common stock	12 Months Ended Dec. 31, 2008 Common stock
Common stock
Additional Paid-in Capital, value of stock	$1		$1	$1
Preferred stock
Additional Paid-in Capital, value of stock	$1	$1	$1

7_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities
Net income	$428	$62
Adjustments to reconcile net income to cash from operating activities:
Depreciation and amortization	78	57
Amortization of deferred mutual fund sales commissions	26	27
Stock-based compensation	108	82
Deferred income tax expense (benefit)	55	(44)
Net (gains) losses on non-trading investments	(12)	48
Purchases of investments within consolidated funds	(8)	(21)
Proceeds from sale and maturities of investments within consolidated funds	14	152
Assets and liabilities of consolidated VIEs:
Change in cash and cash equivalents	(42)
(Purchases)/sales of bank loans and other investments	36
(Earnings) losses from equity method investees	(35)	114
Distributions of earnings from equity method investees	4	4
Other adjustments	(1)	2
Changes in operating assets and liabilities:
Accounts receivable	(157)	(51)
Due from related parties	11	163
Deferred mutual fund sales commissions	(23)	(12)
Investments, trading	(59)	(74)
Other assets	149	(13)
Accrued compensation and benefits	(863)	(599)
Accounts payable and accrued liabilities	203	(10)
Due to related parties	(99)	7
Other liabilities	23	(20)
Cash flows from operating activities	(164)	(126)
Cash flows from investing activities
Purchases of investments	(28)	(9)
Proceeds from sales and maturities of investments	29	126
Purchases of assets held for sale	(1)	(1)
Distributions of capital from equity method investees	20	4
Net consolidations (deconsolidations) of sponsored investment funds	2
Acquisitions, net of cash acquired	(8)
Purchases of property and equipment	(44)	(16)
Cash flows from investing activities	(30)	104
Cash flows from financing activities
Repayments of short-term borrowings	(1,354)
Repayments of convertible debt	(148)
Cash dividends paid	(196)	(105)
Proceeds from stock options exercised	6	1
Proceeds from issuance of common stock	1	1
Repurchases of common stock	(114)	(39)
Net (redemptions/distributions paid)/subscriptions received from non-controlling interests holders	9	(134)
Excess tax benefit from stock-based compensation	41	3
Net borrowings/(repayment of borrowings) by consolidated sponsored investment funds		72
Cash flows from financing activities	(1,755)	(201)
Effect of exchange rate changes on cash and cash equivalents	(56)	(16)
Net decrease in cash and cash equivalents	(2,005)	(239)
Cash and cash equivalents, beginning of period	4,708	2,032
Cash and cash equivalents, end of period	2,703	1,793
Supplemental disclosure of cash flow information is as follows:
Cash paid for interest	26	26
Interest on borrowings of consolidated VIEs	12
Cash paid for income taxes	67	133
Supplemental schedule of non-cash financing transactions is as follows:
Issuance of common stock	230	62
Increase in borrowings due to consolidation of VIEs	$1,157

Business Overview

Business Overview
	3 Months Ended Mar. 31, 2010
Business Overview	1. Business Overview BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, "BlackRock" or the "Company") provides diversified investment management and securities lending services to institutional clients and to individual investors through various investment vehicles. Investment management services primarily consist of the management of fixed income, cash management and equity client accounts, the management of a number of open-end and closed-end mutual fund families, exchange traded funds and other non-U.S. equivalent retail products serving the institutional and retail markets, and the management of other investment funds, including collective trusts and alternative funds, developed to serve various customer needs. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services to a broad base of clients. Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments (including long-term portfolio liquidation assignments), risk management and strategic planning and execution. On December 1, 2009, BlackRock completed its acquisition of Barclays Global Investors ("BGI") from Barclays Bank PLC ("Barclays") (the "BGI Transaction"). In exchange for BGI, BlackRock paid approximately $6.65 billion in cash and issued capital stock valued at $8.53 billion comprised of 3,031,516 shares of BlackRock common stock and 34,535,255 shares of BlackRock Series B and D Participating Preferred Stock. See Note 3, Mergers and Acquisitions, for more details on this transaction. On March 31, 2010, equity ownership of BlackRock was as follows: VotingCommonStock CapitalStock(1) Bank of America/Merrill Lynch Co., Inc. 3.7 % 33.8 % The PNC Financial Services Group, Inc. ("PNC") 34.4 % 24.2 % Barclays 4.7 % 19.6 % Other 57.2 % 22.4 % 100.0 % 100.0 % (1) Includes outstanding common and preferred stock only.

Significant Accounting Policies

Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Significant Accounting Policies	2. Significant Accounting Policies Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of the Company and its controlled subsidiaries. Non-controlling interests on the condensed consolidated statements of financial condition include the portion of consolidated sponsored investment funds in which the Company does not have direct equity ownership. Significant accounts and transactions between consolidated entities have been eliminated. 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 revenues and expenses 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 financial statements should be read in conjunction with the Company's consolidated financial statements and notes related thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2009, which was filed with the Securities and Exchange Commission ("SEC") on March 10, 2010. The interim financial information at March 31, 2010 and for the three months ended March 31, 2010 and 2009 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. Business Combinations In accordance with the requirements of Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), certain line items on the condensed consolidated statement of financial condition, including goodwill, intangibles, and deferred tax liabilities, have been retrospectively adjusted as of December 31, 2009 to reflect new information obtained about facts that existed as of December 1, 2009, the BGI acquisition date. See Note 3, Mergers and Acquisitions, for the changes in the BGI purchase price allocation. Fair Value Measurements ASC 820-10, Fair Value Measurements and Disclosures ("ASC 820-10"), requires among other things, enhanced disclosures about assets and liabilities that are measured and reported at fair value. The provisions of ASC 820-10 establish a hierarchy that prioritizes inputs to valuation techniques used to measure fair value and requires companies to disclose the fair value of their financial instruments according to a fair value hierarchy (i.e., Level 1, 2 and 3 inputs, as defined). The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowes

Mergers and Acquisitions

Mergers and Acquisitions
	3 Months Ended Mar. 31, 2010
Mergers and Acquisitions	3. Mergers and Acquisitions Barclays Global Investors On December 1, 2009, BlackRock acquired from Barclays all of the outstanding equity interests of subsidiaries of Barclays conducting the investment management business of BGI in exchange for an aggregate of 37,566,771 shares of BlackRock common stock and participating preferred stock and $6.65 billion in cash. The fair value of the 37,566,771 shares at closing, on December 1, 2009, was $8.53 billion, at a price of $227.08 per share, the closing price of BlackRock's common stock on November 30, 2009. A summary of the initial and revised fair values of the assets acquired and liabilities and non-controlling interests assumed on December 1, 2009 in this acquisition is as follows: (Dollar amounts in millions) InitialEstimate ofFair Value PurchasePriceAdjustments RevisedEstimateofFair Value Accounts receivable $ 593 $ (12 ) $ 581 Investments 125 125 Separate account assets 116,301 116,301 Collateral held under securities lending agreements 23,498 23,498 Property and equipment 205 (2 ) 203 Finite-lived intangible management contracts (intangible assets) 163 (7 ) 156 Indefinite-lived intangible management contracts (intangible assets) 9,785 25 9,810 Trade names / trademarks (indefinite-lived intangible assets) 1,403 1,403 Goodwill 6,842 68 6,910 Other assets 366 366 Separate account liabilities (116,301 ) (116,301 ) Collateral liability under securities lending agreements (23,498 ) (23,498 ) Deferred tax liabilities (3,799 ) 8 (3,791 ) Accrued compensation and benefits (885 ) (885 ) Other liabilities assumed (660 ) (80 ) (740 ) Non-controlling interests assumed (12 ) (12 ) Total consideration, net of cash acquired $ 14,126 $ $ 14,126 Summary of consideration, net of cash acquired: Cash paid $ 6,650 $ $ 6,650 Cash acquired (1,055 ) (1,055 ) Capital stock at fair value 8,531 8,531 Total cash and stock consideration $ 14,126 $ $ 14,126 At this time, the Company does not expect additional material changes to the value of the assets acquired or liabilities assumed in conjunction with the transaction. Helix Financial Group LLC In January 2010, the Company completed the acquisition of substantially all of the net assets of Helix Financial Group LLC, which provides advisory, valuation and analytics solutions to commercial real estate lenders and investors (the "Helix Transaction"). The assets acquired and liabilities assumed, as well as the total consideration paid for the acquisition, were not material to the Company's condensed consolidated financial statements.

Investments

Investments
	3 Months Ended Mar. 31, 2010
Investments	4. Investments A summary of the carrying value of total investments is as follows: Carrying Value (Dollar amounts in millions) March31,2010 December31,2009 Available-for-sale investments $ 65 $ 73 Held-to-maturity 40 29 Trading investments 237 167 Other investments: Consolidated sponsored investment funds 318 360 Equity method investments 393 376 Deferred compensation plan hedge fund equity method investments 28 29 Cost method investments 15 15 Total other investments 754 780 Total investments $ 1,096 $ 1,049 At March 31, 2010, the Company had $493 million of total investments held by consolidated sponsored investment funds (non-VIEs) of which $175 million and $318 million were classified as trading investments and other investments, respectively. At December 31, 2009, the Company had $463 million of total investments held by consolidated sponsored investment funds of which $103 million and $360 million were classified as trading investments and other investments, respectively. Other investments at December 31, 2009 included $40 million related to a consolidated VIE, which has been reclassified as of January 1, 2010 to bank loans and other investments of consolidated VIEs on the condensed consolidated statement of financial condition. Available-for-sale Investments A summary of the cost and carrying value of investments classified as available-for-sale, is as follows: (Dollar amounts in millions) GrossUnrealized CarryingValue March31, 2010 Cost Gains Losses Available-for-sale investments: Equity securities: Sponsored investment funds $ 44 $ 3 $ (2 ) $ 45 Collateralized debt obligations 2 1 3 Debt securities: Mortgage debt 5 1 6 Asset-backed debt 9 2 11 Total available-for-sale investments $ 60 $ 7 $ (2 ) $ 65 GrossUnrealized CarryingValue December31, 2009 Cost Gains Losses Available-for-sale investments: Equity securities: Sponsored investment funds $ 53 $ 2 $ (1 ) $ 54 Collateralized debt obligations 2 2 Debt securities: Mortgage debt 6 1 7 Asset-backed debt 10 10 Total available-for-sale investments $ 71 $ 3 $ (1 ) $ 73 Available-for-sale investments include seed investments in BlackRock sponsored investment funds and debt securities received upon closure of an enhanced cash fund, in lieu of the Company's remaining investment in the fund and securities purchased from another enhanced cash fund. During the three months ended March 31, 2010 and 2009, the Company did not record any other-than-temporary impairments on available-for-sa

Consolidated Sponsored Investme

Consolidated Sponsored Investment Funds
	3 Months Ended Mar. 31, 2010
Consolidated Sponsored Investment Funds	5. Consolidated Sponsored Investment Funds The Company consolidates certain sponsored investment funds primarily because it is deemed to control such funds in accordance with GAAP. The investments that are owned by these consolidated sponsored investment funds are classified as other or trading investments. At March 31, 2010 and December 31, 2009, the following balances related to these funds were consolidated in the condensed consolidated statements of financial condition: (Dollar amounts in millions) March31,2010 December31,2009 Cash and cash equivalents $ 123 $ 75 Investments 493 463 Other net assets (liabilities) (24 ) (7 ) Non-controlling interests (253 ) (273 ) Total net interests in consolidated investment funds $ 339 $ 258 At December 31, 2009, the above balances included, a consolidated sponsored investment fund that was also deemed a VIE. This VIE as well as three consolidated CLOs, which are also VIEs, were excluded from the March 31, 2010 balances above. See Note 7, Variable Interest Entities, for further discussion. BlackRock's total exposure to consolidated sponsored investment funds of $339 million and $258 million at March 31, 2010 and December 31, 2009, respectively, represents the value of the Company's economic ownership interest in these sponsored investment funds. Valuation changes associated with these consolidated investment funds are reflected in non-operating income (expense) and net income (loss) attributable to non-controlling interests. The Company may not be readily able to access cash and cash equivalents held by consolidated sponsored investment funds to use in its operating activities. In addition, the Company may not be readily able to sell investments held by consolidated sponsored investment funds in order to obtain cash for use in its operations.

Fair Value Disclosures

Fair Value Disclosures
	3 Months Ended Mar. 31, 2010
Fair Value Disclosures	6. Fair Value Disclosures Fair Value Hierarchy Assets and liabilities measured at fair value on a recurring basis at March 31, 2010 were as follows: (Dollar amounts in millions) QuotedPrices inActiveMarketsforIdenticalAssets(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) OtherAssetsNot Held atFairValue(1) March31,2010 Assets: Investments Available-for-sale Equity $ 45 $ 3 $ $ $ 48 Fixed income 1 16 17 Total available-for-sale 46 19 65 Held-to-maturity Fixed income 40 40 Total held-to-maturity 40 40 Trading Equity 133 12 145 Fixed income 49 49 Deferred compensation plan mutual fund investments 43 43 Total trading 176 61 237 Other investments: Consolidated sponsored investment funds: Hedge funds / Funds of funds 25 25 Private equity 13 280 293 Total Consolidated sponsored investment funds 13 305 318 Equity method Fixed income mutual fund 10 10 Hedge funds / Funds of funds 237 23 260 Private equity funds 58 18 76 Real estate funds 39 8 47 Total equity method 10 334 49 393 Deferred compensation plan hedge fund equity method investments 11 17 28 Cost method investments 15 15 Total investments 235 101 656 104 1,096 Separate account assets Equity 73,920 58 63 74,041 Fixed income 37,027 1,090 38,117 Derivatives 4 1,453 1,457 Money market funds 1,764 1,764 Other 808 808 Total separate account assets 75,688 38,538 1,153 808 116,187 Collateral held under securities lending agreements Equity 8,463 8,463 Fixed income 4,954 4,954 Total collateral held under securities lending agreements 8,463 4,954 13,417 Other assets(2) 11 24 35 Assets of consolidated VIEs Bank loans 1,154 1,154 Bonds 93 93 Private equity 3 35 38 Other 3 3 Total investments of consolidated VIEs 3 1,250

Variable Interest Entities

Variable Interest Entities
	3 Months Ended Mar. 31, 2010
Variable Interest Entities	7. Variable Interest Entities In the normal course of business, the Company is the manager of various types of sponsored investment vehicles, including collateralized debt/loan obligations ("CDO" or "CLO") and sponsored investment funds, which may be considered VIEs. The Company receives advisory fees or other incentive related fees for its services and 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 enters into these variable interests principally to address client needs through the launch of such investment vehicles. The VIEs are primarily financed via capital contributed by equity and debt holders. The Company's involvement in financing the operations of the VIEs is limited to its equity interests. The primary beneficiary of a VIE that is an investment fund that meets the conditions of ASU 2010-10 is the enterprise that has a variable interest (or combination of variable interests, including those of related parties) that will absorb a majority of the entity's expected losses, receive a majority of the entity's expected residual returns or both. The primary beneficiary of a CDO/CLO that is a VIE that does not meet the conditions of ASU 2010-10 is the enterprise that has the power to direct activities of the entity and has the obligation to absorb losses or the right to receive benefits that potentially could be significant to the CDO/CLO. In order to determine whether the Company is the primary beneficiary of a VIE, management must make significant estimates and assumptions of probable future cash flows of the VIEs. Assumptions made in such analyses may include, but are not limited to, market prices of securities, market interest rates, potential credit defaults on individual securities or default rates on a portfolio of securities, pre-payments, realization of gains, liquidity or marketability of certain securities, discount rates and the probability of certain other outcomes. VIEs in which BlackRock is the Primary Beneficiary As of March 31, 2010 As of March 31, 2010, BlackRock was the primary beneficiary of four VIEs, which included three CLOs, in which it did not have an investment, however, BlackRock, as the collateral manager, was deemed to have both the power to control the activities of the CLOs and the right to receive benefits that could potentially be significant. In addition, BlackRock was the primary beneficiary of one private sponsored investment fund, in which it had a non-substantive investment, which absorbed the majority of the variability due to its de-facto third party relationships with other partners in the fund. At March 31, 2010 the following balances related to these four VIEs were consolidated in the Company's condensed consolidated statements of financial condition: (Dollar amounts in millions) March31,2010 Assets of consolidated VIEs Cash and cash equivalents $ 90 Bank loans, bonds and other investments 1,288 Liabilities of consolidated VIEs Borrowings (1,214 ) Other liabilities (4 ) Appropriated retained earnings

Derivatives and Hedging

Derivatives and Hedging
	3 Months Ended Mar. 31, 2010
Derivatives and Hedging	8. Derivatives and Hedging For the three months ended March 31, 2010 and the year ended December 31, 2009, the Company did not hold any derivatives designated in a formal hedge relationship under ASC 815-10, Derivatives and Hedging ("ASC 815-10"). By using derivative financial instruments, the Company exposes itself to market and counterparty risk. Market risk from forward foreign currency exchange contracts is the effect on the value of a financial instrument that results from a change in currency exchange rates. The Company manages exposure to market risk associated with foreign currency exchange contracts by establishing and monitoring parameters that limit the types and degrees of market risk that may be undertaken. At March 31, 2010, the Company had two outstanding forward foreign exchange contracts with two counterparties with an aggregate notional value of $100 million. During 2007, the Company commenced a program to enter into a series of total return swaps to economically hedge against market price exposures with respect to certain seed investments in sponsored investment products. At March 31, 2010, the Company had seven outstanding total return swaps with two counterparties with an aggregate notional value of approximately $24 million. The Company acts as the portfolio manager in a series of credit default swap transactions, referred to collectively as the Pillars synthetic CDO transaction ("Pillars"). The Company has entered into a credit default swap with Citibank, N.A. ("Citibank"), providing Citibank credit protection of approximately $17 million, representing the Company's maximum risk of loss with respect to the provision of credit protection. Pursuant to ASC 815-10, the Company carries the Pillars credit default swap at fair value based on the expected future cash flows under the arrangement. On behalf of clients that maintain separate accounts representing segregated funds held for the purpose of funding individual and group pension contracts, the Company invests in various derivative instruments, including forward foreign currency contracts, interest rate and inflation rate swaps. The Company consolidates certain sponsored investment funds, which may utilize derivative instruments as a part of the fund's investment strategy. The change in fair value of such derivatives, which is recorded in non-operating income (expense) is not material to the Company's condensed consolidated financial statements. The following table presents the fair value as of March 31, 2010 of derivative instruments not designated as hedging instruments: Assets Liabilities (Dollar amounts in millions) BalanceSheetLocation FairValue BalanceSheetLocation FairValue Foreign exchange contracts Otherassets $ Otherliabilities $ 3.6 Total return swaps Other assets Other liabilities 0.4 Credit default swap (Pillars) Other assets Other liabilities 2.5 Separate account derivatives (1) Separateaccount assets 1,457.0 Separateaccount liabilities 1,457.0 Total $ 1,457.0 $ 1,463.5

Goodwill

Goodwill
	3 Months Ended Mar. 31, 2010
Goodwill	9. Goodwill Goodwill at March 31, 2010 and changes during the three months ended March 31, 2010 were as follows: (Dollar amounts in millions) December31, 2009, as reported $ 12,570 BGI purchase price allocation adjustment 68 December31, 2009, as adjusted 12,638 Other net additions 3 March31, 2010 $ 12,641 In accordance with ASC 805, goodwill has been retrospectively adjusted to reflect new information obtained about facts that existed as of December 1, 2009, the BGI acquisition date. During the three months ended March 31, 2010, goodwill increased by $71 million. The increase relates primarily to purchase price allocation adjustments related to the BGI Transaction, the purchase of substantially all of the net assets of Helix Financial Group, LLC, offset by a decline related to tax benefits realized from tax-deductible goodwill in excess of book goodwill. At March 31, 2010, the balance of the Quellos tax-deductible goodwill in excess of book goodwill was approximately $364 million. Goodwill related to the Quellos Transaction will continue to be reduced in future periods by the amount of tax benefits realized from tax-deductible goodwill in excess of book goodwill.

Intangible Assets

Intangible Assets
	3 Months Ended Mar. 31, 2010
Intangible Assets	10. Intangible Assets The carrying amounts of identifiable intangible assets are summarized as follows: (Dollar amounts in millions) Indefinite-livedintangibleassets Finite-livedintangibleassets Total December31, 2009, as reported $ 16,566 $ 1,082 $ 17,648 BGI purchase price allocation adjustments 25 (7 ) 18 December31, 2009, as adjusted 16,591 1,075 17,666 Amortization expense (40 ) (40 ) March31, 2010 $ 16,591 $ 1,035 $ 17,626 In accordance with ASC 805, intangible assets have been retrospectively adjusted to reflect new information obtained about facts that existed as of December 1, 2009, the BGI acquisition date. During the three months ended March 31, 2010, intangible assets decreased $22 million related to amortization, partially offset by BGI purchase price allocation adjustments.

Borrowings

Borrowings
	3 Months Ended Mar. 31, 2010
Borrowings	11. Borrowings Short-Term Borrowings 2007 Facility In August 2007, the Company entered into a five-year $2.5 billion unsecured revolving credit facility (the "2007 facility"), which permits the Company to request an additional $500 million of borrowing capacity, subject to lender credit approval, up to a maximum of $3.0 billion. The 2007 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 domestic unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at March 31, 2010. The 2007 facility provides back-up liquidity, funds ongoing working capital for general corporate purposes and funds various investment opportunities. At March 31, 2010, the Company had $100 million outstanding under the 2007 facility with an interest rate of 0.43% and a maturity date during May 2010. Lehman Commercial Paper Inc. has a $140 million participation under the 2007 Facility; however BlackRock does not expect that Lehman Commercial Paper Inc. will honor its commitment to fund additional amounts. Bank of America Corporation ("Bank of America"), a related party, has a $140 million participation under the 2007 facility. Commercial Paper Program On October 14, 2009, BlackRock established a commercial paper program (the "CP Program") under which the Company may issue unsecured commercial paper notes (the "CP Notes") on a private placement basis up to a maximum aggregate amount outstanding at any time of $3 billion. The proceeds of the commercial paper issuances were used for the financing of a portion of the BGI Transaction. Subsidiaries of Bank of America and Barclays, as well as other third parties, act as dealers under the CP Program. The CP Program is supported by the 2007 facility. The Company began issuance of CP Notes under the CP Program on November 4, 2009. As of March 31, 2010, BlackRock had approximately $780 million of outstanding CP Notes with a weighted average interest rate of 0.20% and a weighted average maturity of 22 days. As of May 6, 2010, BlackRock had $616 million of outstanding CP Notes with a weighted average interest rate of 0.23% and a weighted average maturity of 23 days. Japan Commitment-line In June 2009, BlackRock Japan Co., Ltd., a wholly owned subsidiary of the Company, renewed a five billion Japanese yen commitment-line agreement with a banking institution (the "Japan Commitment-line"). The term of the Japan Commitment-line was one year and interest accrued at the applicable Japanese short-term prime rate. The Japan Commitment-line is intended to provide liquidity and flexibility for operating requirements in Japan. At March 31, 2010, the Company had no borrowings outstanding on the Japan Commitment-line. Convertible Debentures The carrying value of the 2.625% convertible debentures due in 2035 included the following: (Dollar amounts in millions) March31,2010 December31,2009 Maturity amount $ 95 $ 243 Unamortized discount Carrying value $ 95 $ 243 The Company

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies	12. Commitments and Contingencies Investment Commitments At March 31, 2010 the Company had approximately $301 million of investment commitments relating primarily to funds of private equity funds, real estate funds and hedge funds. Amounts to be funded generally are callable at any point prior to the expiration of the commitment. This amount excludes additional commitments made by consolidated funds of funds to underlying third party funds as third party non-controlling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Legal Proceedings From time to time, BlackRock receives subpoenas or other requests for information from various U.S. federal, state governmental and regulatory authorities in connection with certain industry-wide or other investigations or proceedings. It is BlackRock's policy to cooperate fully with such inquiries. The Company and certain of its subsidiaries have been named as defendants in various legal actions, including arbitrations and other litigation arising in connection with BlackRock's activities. Additionally, certain of the investment funds that the Company manages are subject to lawsuits, any of which potentially could harm the investment returns of the applicable fund or result in the Company being liable to the funds for any resulting damages. Management, after consultation with legal counsel, currently does not anticipate that the aggregate liability, if any, arising out of regulatory matters or lawsuits will have a material adverse effect on BlackRock's earnings, financial position, or cash flows although, at the present time, management is not in a position to determine whether any such pending or threatened matters will have a material adverse effect on BlackRock's results of operations in any future reporting period. Indemnifications In the ordinary course of business, 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. Under the transaction agreement in the MLIM Transaction, the Company has agreed to indemnify Merrill Lynch Co., Inc. ("Merrill Lynch") for losses it may incur arising from (1) any alleged or actual breach, failure to comply, violation or other deficiency with respect to any regulatory or fiduciary requirements relating to the operation of BlackRock's business, (2) any fees or expenses incurred or owed by BlackRock to any brokers, financial advisors or comparable other persons retained or employed by BlackRock in connection with the MLIM Transaction, and (3) certain specified tax covenants. Under the transaction agreement in the BGI Transaction, the Company has agreed to indemnify Barclays for losses it may incur arising from (1) breach by the Company of certain representations, (2) breach by the Company of any covenant in the agreement, (3) liabilities of the entities acquired in the transaction other than liabilities assumed by Barclays or for which it is providing indemnification, and (4) certain taxes. Mana

Stock-Based Compensation

Stock-Based Compensation
	3 Months Ended Mar. 31, 2010
Stock-Based Compensation	13. Stock-Based Compensation The components of the Company's stock-based compensation expense are comprised of the following: ThreeMonthsEndedMarch 31, (Dollar amounts in millions) 2010 2009 Stock-based compensation: Restricted stock and restricted stock units ("RSUs") $ 90 $ 64 Long-term incentive plans funded by PNC 15 15 Stock options 3 3 Total stock-based compensation $ 108 $ 82 Restricted Stock and RSUs Restricted stock and RSU activity at March 31, 2010 and changes during the three months ended March 31, 2010 were as follows: Outstanding at UnvestedRestrictedStockandUnits WeightedAverageGrantDateFairValue December 31, 2009 5,360,463 $ 154.75 Granted 2,796,005 $ 239.47 Converted (1,279,522 ) $ 154.72 Forfeited (161,023 ) $ 161.92 March 31, 2010 6,715,923 $ 189.86 The Company values restricted stock and RSUs at their grant-date fair value as measured by BlackRock's common stock price. In January 2010, the Company granted the following awards under the BlackRock, Inc. 1999 Stock Award and Incentive Plan: * 846,884 RSUs to employees as part of annual incentive compensation that vest ratably over three years from the date of grant. * 256,311 RSUs to employees that cliff vest on January31, 2012. Awards to certain individuals require that BlackRock has actual GAAP earnings per share of at least $6.13 in 2010 or $6.50 in 2011 or has attained an alternative performance hurdle based on the Company's earnings per share growth rate versus certain peers over the term of the awards. The RSUs may not be sold before the one-year anniversary of the vesting date. * 1,497,222 RSUs to employees that vest 50% on both January31, 2013 and 2014. Awards to certain individuals require that BlackRock has actual GAAP earnings per share of at least $6.13 in 2010 or $6.50 in 2011 or has attained an alternative performance hurdle based on the Company's earnings per share growth rate versus certain peers over the term of the awards. * 124,575 shares of restricted common stock to employees that vest in tranches on January31, 2010, 2011 and 2012. The restricted common stock may not be sold before the one-year anniversary of each vesting date. At March 31, 2010, there was $826 million in total unrecognized compensation cost related to unvested restricted stock and RSUs. The unrecognized compensation cost is expected to be recognized over the remaining weighted average period of 2.0 years. Long-Term Incentive Plans Funded by PNC Under a share surrender agreement, PNC committed to provide up to 4,000,000 shares of BlackRock stock, held by PNC, to fund certain BlackRock long-term incentive plans ("LTIP"). In February 2009, the share surrender agreement was amended for PNC to provide BlackRock series C non-voting participating preferred stock to fund the remaining committed shares. The BlackRock, Inc. 2002 Long-Term Retention and Incentive Plan (the "2002 LTIP Awards") permitted the grant of up to $240 million

Related Party Transactions

Related Party Transactions
	3 Months Ended Mar. 31, 2010
Related Party Transactions	14. Related Party Transactions Loan Commitments with Anthracite Prior to March 31, 2010, the Company was committed to provide financing of up to $60 million to Anthracite Capital, Inc. ("Anthracite"), a specialty commercial real estate finance company that was managed by a subsidiary of BlackRock. The financing is collateralized by a pledge by Anthracite of its ownership interest in a real estate debt investment fund, which is also managed by a subsidiary of BlackRock. At March 31, 2010, $33.5 million of financing was outstanding and remains outstanding as of May 2010, which is past its final maturity date of March 5, 2010. At March 31, 2010, the value of the collateral was estimated to be $10 million, which resulted in a $2.5 million reduction in due from related parties on the Company's condensed consolidated statement of financial condition and an equal amount recorded in general and administrative expense in the three months ended March 31, 2010. The Company has no obligation to loan additional amounts to Anthracite under this facility. Anthracite filed a voluntary petition for relief under chapter 7 of title 11 of the U.S. Code in the U.S. Bankruptcy Court for the Southern District of New York on March 15, 2010. The management agreement between the Company and Anthracite has expired. Recovery of any amount of the financing provided by the Company in excess of the value of the collateral is not anticipated. The Company continues to evaluate the collectability of the outstanding borrowings by reviewing the carrying value of the net assets of the collateral, which fluctuates each period.

Net Capital Requirements

Net Capital Requirements
	3 Months Ended Mar. 31, 2010
Net Capital Requirements	15. Net Capital Requirements The Company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions, which is met in part by retaining cash and cash equivalent investments in those 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, transfer of cash between international jurisdictions, including repatriation to the United States, may have adverse tax consequences that could discourage such transfers. Banking Regulatory Requirements BlackRock Institutional Trust Company, N.A. ("BTC"), a wholly-owned subsidiary of the Company, is chartered as a national bank whose powers are limited to trust activities. BTC is subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's condensed consolidated financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that invoke quantitative measures of the Company's assets, liabilities, and certain off-balance sheet items as calculated under the regulatory accounting practices. BTC's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Broker-dealers BlackRock Investments, LLC, BlackRock Capital Markets, LLC, BlackRock Execution Services and BlackRock Fund Distribution Company are registered broker-dealers and wholly-owned subsidiaries of BlackRock that are subject to the Uniform Net Capital requirements under the Securities Exchange Act of 1934, which requires maintenance of certain minimum net capital levels. Capital Requirements as of March 31, 2010 At March 31, 2010, the Company was required to maintain approximately $818 million in net capital in certain regulated subsidiaries, including BTC, and is in compliance with all applicable regulatory minimum net capital requirements.

Capital Stock

Capital Stock
	3 Months Ended Mar. 31, 2010
Capital Stock	16. Capital Stock Non-voting Participating Preferred Stock March31,2010 December31,2009 Series A Shares authorized, $0.01 par value 20,000,000 20,000,000 Shares issued Shares outstanding Series B Shares authorized, $0.01 par value 150,000,000 150,000,000 Shares issued 124,620,593 112,817,151 Shares outstanding 124,620,593 112,817,151 Series C Shares authorized, $0.01 par value 6,000,000 6,000,000 Shares issued 2,866,439 2,889,467 Shares outstanding 2,866,439 2,889,467 Series D Shares authorized, $0.01 par value 20,000,000 20,000,000 Shares issued 11,203,442 Shares outstanding 11,203,442 Capital Exchanges In January 2010, 600,000 common shares were exchanged for Series B preferred stock and all 11,203,442 Series D preferred stock outstanding at December 31, 2009 were exchanged for Series B preferred stock. PNC Contribution During the three months ended March 31, 2010, PNC contributed 23,028 of Series C preferred stock in connection with its share surrender agreement to fund certain LTIP awards.

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 31, 2010
Earnings Per Share	17. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2010 and 2009: Three Months EndedMarch31, 2010 2009 Basic Diluted Basic Diluted Net income attributable to BlackRock, Inc. allocated to: Common shares $ 417 $ 417 $ 82 $ 82 Participating RSUs 6 6 2 2 Total net income attributable to BlackRock, Inc. $ 423 $ 423 $ 84 $ 84 Weighted-average common shares outstanding 189,676,023 189,676,023 130,216,218 130,216,218 Dilutive effect of stock options and non-participating restricted stock units 1,723,512 845,382 Dilutive effect of convertible debt 752,716 379,270 Dilutive effect of acquisition-related contingent stock payments 356,319 Total weighted-average shares outstanding 192,152,251 131,797,189 Earnings per share attributable to BlackRock, Inc., common stockholders: $ 2.20 $ 2.17 $ 0.63 $ 0.62 Due to the similarities in terms between BlackRock series A, B, C and D non-voting participating preferred stock and the Company's common stock, the Company considers the series A, B, C and D non-voting participating preferred stock to be a common stock equivalent for purposes of earnings per share calculations. As such, the Company has included the outstanding series A, B, C and D non-voting participating preferred stock in the calculation of average basic and diluted shares outstanding for the three months ended March 31, 2010 and 2009. For the three months ended March 31, 2010, 743,869 RSUs were excluded from the calculation of diluted earnings per share because to include them would have an anti-dilutive effect. Shares issued in Quellos Transaction On October 1, 2007, the Company acquired the fund of funds business of Quellos Group ("Quellos"). The Company issued 1,191,785 shares of BlackRock common stock that were placed into an escrow account. In 2008 and 2009, a total of 322,845 common shares were released to Quellos in accordance with the Quellos asset purchase agreement, which resulted in an adjustment to the recognized purchase price. The remaining 868,940 common shares may have a dilutive effect in future periods based on the timing of the release of shares from the escrow account in accordance with the Quellos asset purchase agreement.

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information	18. Segment Information The Company's management directs BlackRock's operations as one business, the asset management business. As such, the Company believes it operates in one business segment in accordance with ASC 280-10, Segment Reporting. The following table illustrates investment advisory, administration fees, securities lending revenue and performance fees, BlackRock Solutions and advisory, distribution fees and other revenue for the three months ended March 31, 2010 and 2009. ThreeMonthsEndedMarch31, (Dollar amounts in millions) 2010 2009 Equity $ 955 $ 242 Fixed income 363 200 Multi-asset 167 99 Alternative investment products 186 95 Cash management 132 175 Total investment advisory, administration fees, securities lending revenue and performance fees 1,803 811 BlackRock Solutions and advisory 113 135 Distribution fees 28 25 Other revenue 51 16 Total revenue $ 1,995 $ 987 The following table illustrates the Company's total revenue for the three months ended March 31, 2010 and 2009 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the customer is sourced. (Dollar amounts in millions) Three Months EndedMarch 31, Revenues 2010 %oftotal 2009 %oftotal Americas $ 1,364 68 % $ 767 78 % Europe 511 26 % 191 19 % Asia-Pacific 120 6 % 29 3 % Total revenues $ 1,995 100 % $ 987 100 % The following table shows the Company's long-lived assets, including goodwill and property and equipment at March 31, 2010 and December 31, 2009 and does not necessarily reflect where the asset is physically located. (Dollar amounts in millions) Long-Lived Assets March31,2010 December31,2009 Americas $ 12,969 99 % $ 12,961 99 % Europe 52 % 46 % Asia-Pacific 70 1 % 74 1 % Total long-lived assets $ 13,091 100 % $ 13,081 100 % Americas primarily is comprised of the United States, Canada, Brazil and Mexico, while Europe primarily is comprised of the United Kingdom and Asia-Pacific primarily is comprised of Japan, Australia and Hong Kong.

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Subsequent Events	19. Subsequent Events Additional Subsequent Event Review In addition to the subsequent events included in the notes to the financial statements, the Company conducted a review for additional subsequent events and determined that no additional subsequent events had occurred that would require accrual or additional disclosures.