8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 11, 2017

BLACKROCK, INC.

(Exact name of registrant as specified in its charter)

DELAWARE (State or other jurisdiction of incorporation) 001-33099 (Commission File Number) 32-0174431 (IRS Employer Identification No.)

55 East 52nd Street, New York, New York	10055
(Address of principal executive offices)	(Zip Code)

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

_________________________________________________________________________________________________

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

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

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition

On October 11, 2017, BlackRock, Inc. (the “Company”) reported results of operations for the three and nine months ended September 30, 2017.  A copy of the earnings release issued by the Company is attached as Exhibit 99.1. In addition, a copy of the Company’s Earnings Release Supplement for the quarter ended September 30, 2017 is being furnished as Exhibit 99.2 to this Form 8-K.

Item 9.01. Financial Statements and Exhibits

(d)  Exhibits

99.1	Earnings release dated October 11, 2017 issued by the Company
99.2	Third Quarter 2017 Earnings – Earnings Release Supplement

EXHIBIT INDEX

99.1	Earnings release dated October 11, 2017 issued by the Company
99.2	Third Quarter 2017 Earnings – Earnings Release Supplement

SIGNATURES

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

	BlackRock, Inc.
	(Registrant)
	By: /s/ Gary S. Shedlin
Date: October 11, 2017	Senior Managing Director and
	Chief Financial Officer
	Gary S. Shedlin

EX-99.1

Exhibit 99.1

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

BlackRock Reports Third Quarter 2017 Diluted EPS of $5.78, or $5.92 as adjusted

▪ $96 billion of total net inflows in the third quarter reflects continued strength of diversified business model

▪ $76 billion of long-term net inflows, positive across client type, investment style and region

▪ 14% increase in revenue year-over-year driven by growth in base fees, performance fees and technology and risk management revenue

▪ 15% increase in operating income year-over-year reflects operating margin expansion

▪ 10% increase in diluted EPS (15% as adjusted) year-over-year

▪ Consistent capital management with $275 million of quarterly share repurchases

FINANCIAL RESULTS

	Q3			Q3						Q2						Nine Months Ended September 30,
(in millions, except per share data)	2017			2016			Change			2017			Change			2017			2016			Change
AUM	$	5,976,892		$	5,117,421			17	%	$	5,689,273			5	%	$	5,976,892		$	5,117,421			17	%
Total net flows	$	96,112		$	69,809					$	103,616					$	264,326		$	104,140
GAAP basis:
Revenue	$	3,233		$	2,837			14	%	$	2,965			9	%	$	9,022		$	8,265			9	%
Operating income	$	1,394		$	1,209			15	%	$	1,242			12	%	$	3,783		$	3,345			13	%
Operating margin		43.1	%		42.6	%		50	bps		41.9	%		120	bps		41.9	%		40.5	%		140	bps
Net income(1)	$	947		$	875			8	%	$	857			11	%	$	2,666		$	2,321			15	%
Diluted EPS	$	5.78		$	5.26			10	%	$	5.22			11	%	$	16.23		$	13.92			17	%
Weighted average diluted shares		163.8			166.3			(1	)%		164.1			-	%		164.3			166.8			(1	)%
As Adjusted:
Operating income(2)	$	1,398		$	1,216			15	%	$	1,246			12	%	$	3,795		$	3,442			10	%
Operating margin(2)		45.0	%		44.8	%		20	bps		43.9	%		110	bps		43.9	%		43.5	%		40	bps
Net income(1) (2)	$	969		$	854			13	%	$	860			13	%	$	2,694		$	2,362			14	%
Diluted EPS(2)	$	5.92		$	5.14			15	%	$	5.24			13	%	$	16.40		$	14.16			16	%

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

⁽²⁾ See notes (1) through (3) to the Condensed Consolidated Statements of Income and Supplemental Information on pages 13 and 14 for more information on as adjusted items and the reconciliation to GAAP.

New York, October 11, 2017 — BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and nine months ended September 30, 2017.

“BlackRock’s third quarter results reflect the continued growth of our global investment and technology platform and the trusted relationships we have built with our clients,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “Our ability to create investment solutions from a broad range of products – spanning index to illiquid alternatives – combined with industry leading technology and risk management, is resonating with clients and driving more impactful interactions than ever before. As we deepen and expand our relationships with clients and partners, we recognize and embrace the growing responsibility we have on a daily basis to help them achieve their goals.

“Strong organic asset and base fee growth are a direct result of the investments we are making in our platform. We saw $96 billion of total net inflows in the third quarter. This brings year-to-date total organic growth to $264 billion, already surpassing our total flows for the full year of 2016.

“iShares^® third quarter net inflows of $52 billion were diversified across both core and non-core strategies. Our continued investment in the iShares franchise, including product innovation, investor education and digital distribution, is driving accelerated growth and increased market share.  During the third quarter, we again achieved the #1 market share of ETF flows globally, in both the United States and Europe, and in both equity and fixed income.

“In today’s markets, clients rely on both index and alpha-seeking building blocks to achieve their desired outcomes.  Strong investment performance drove third quarter net inflows of $6 billion in our active platform, led by fixed income and multi-asset offerings, which contributed to our strong organic base fee growth during the quarter.  

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“Technology and risk management revenue, powered by Aladdin^®, increased 15% year-over-year as institutions turn to BlackRock for our risk management and analytics capabilities.  As technology continues to enhance our alpha-generation and distribution capabilities, and continues to drive efficiencies in our operational infrastructure, it is becoming a larger focus of investment across the entire platform. Our technology investments are contributing significantly to both organic growth and revenue growth and will be critical to driving operating leverage over time.

“With regulation, technology and market forces transforming the ecosystem for asset and wealth managers globally, BlackRock is at the forefront of change in the industry.  As our focus remains on the long-term, we continue to purposefully and prudently invest in the future of our business, reinforcing our differentiated ability to serve clients and generate long-term value for shareholders.”

RESULTS BY CLIENT TYPE
								September 30, 2017			Q3 2017
	Q3 2017			September 30, 2017		Q3 2017		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
Retail	$	7,367		$	608,521	$	843		10	%		30	%
iShares ETFs		52,306			1,640,437		1,067		27	%		38	%
Institutional:
Active		155			1,105,224		489		18	%		18	%
Index		15,976			2,194,701		249		38	%		9	%
Total institutional		16,131			3,299,925		738		56	%		27	%
Long-term		75,804			5,548,883		2,648		93	%		95	%
Cash management		20,381			425,423		144		7	%		5	%
Advisory		(73	)		2,586		-		-			-
Total	$	96,112		$	5,976,892	$	2,792		100	%		100	%
RESULTS BY PRODUCT TYPE
								September 30, 2017			Q3 2017
	Q3 2017			September 30, 2017		Q3 2017		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
Equity	$	11,935		$	3,172,465	$	1,427		53	%		51	%
Fixed income		59,549			1,788,420		740		30	%		27	%
Multi-asset		4,334			457,027		289		8	%		10	%
Alternatives		(14	)		130,971		192		2	%		7	%
Long-term		75,804			5,548,883		2,648		93	%		95	%
Cash management		20,381			425,423		144		7	%		5	%
Advisory		(73	)		2,586		-		-			-
Total	$	96,112		$	5,976,892	$	2,792		100	%		100	%
RESULTS BY INVESTMENT STYLE
								September 30, 2017			Q3 2017
	Q3 2017			September 30, 2017		Q3 2017		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
Active	$	5,796		$	1,645,352	$	1,318		28	%		47	%
Index and iShares ETFs		70,008			3,903,531		1,330		65	%		48	%
Long-term		75,804			5,548,883		2,648		93	%		95	%
Cash management		20,381			425,423		144		7	%		5	%
Advisory		(73	)		2,586		-		-			-
Total	$	96,112		$	5,976,892	$	2,792		100	%		100	%

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

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BUSINESS HIGHLIGHTS

Long-term net inflows were positive across all major regions, with net inflows of $42.3 billion, $23.6 billion and $9.9 billion from clients in the Americas, EMEA and Asia-Pacific, respectively. At September 30, 2017, BlackRock managed 64% of its long-term AUM for clients in the Americas, 28% for clients in EMEA and 8% for clients in Asia-Pacific.

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

▪ Retail long-term net inflows of $7.4 billion reflected net inflows of $3.7 billion in the United States and $3.7 billion internationally. Fixed income net inflows of $4.6 billion were diversified across our top-performing active platform, led by net inflows into unconstrained, municipal and emerging market debt categories. Equity net inflows of $1.7 billion reflected inflows into index mutual funds. Multi-asset net inflows of $1.0 billion were largely due to inflows into the Multi-asset Income fund family, partially offset by outflows from world allocation strategies.

▪ iShares ETFs long-term net inflows of $52.3 billion reflected strength in iShares Core, precision exposure and financial instrument ETFs. Equity net inflows of $33.1 billion were driven by both U.S. and international equity market exposures. Fixed income net inflows of $17.5 billion reflected inflows into treasury, investment grade corporate and broad fixed income funds. Commodities iShares generated $1.5 billion of net inflows.

▪ Institutional active long-term net inflows of $0.2 billion were led by multi-asset net inflows of $3.5 billion, reflecting ongoing demand for the LifePath^® target-date series and factors strategies, and fixed income net inflows of $0.5 billion. Equity net outflows of $3.3 billion were driven by fundamental and scientific active equities. Alternatives had net outflows of $0.5 billion (including $0.6 billion return of capital).

▪ Institutional index long-term net inflows of $16.0 billion included fixed income net inflows of $36.9 billion, driven by demand for liability-driven solutions, partially offset by equity net outflows of $19.6 billion.

Cash management AUM increased 6% to $425.4 billion, driven by $20.4 billion of net inflows.

INVESTMENT PERFORMANCE AT SEPTEMBER 30, 2017 ⁽¹⁾  

	One-year period		Three-year period		Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable		78%		78%		89%
Tax-exempt		55%		51%		53%
Index AUM within or above applicable tolerance		97%		94%		98%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental		59%		80%		69%
Scientific		86%		89%		91%
Index AUM within or above applicable tolerance		97%		98%		99%

⁽¹⁾ Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 15 for performance disclosure detail.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Wednesday, October 11, 2017 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (800) 374-0176, or from outside the United States, (706) 679-8281, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 92702706). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by 12:30 p.m. (Eastern Time) on Wednesday, October 11, 2017 and ending at midnight on Wednesday, October 25, 2017. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 92702706. To access the webcast, please visit the investor relations section of www.blackrock.com.

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About BlackRock

BlackRock helps investors build better financial futures.  As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of September 30, 2017, the firm manages approximately $5.977 trillion in assets on behalf of investors worldwide.  For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

										Three Months
	Three Months Ended									Ended
	September 30,									June 30,
	2017			2016			Change			2017			Change
Revenue
Investment advisory, administration fees and   securities lending revenue	$	2,792		$	2,546		$	246		$	2,675		$	117
Investment advisory performance fees		191			58			133			48			143
Technology and risk management revenue(a)		175			152			23			164			11
Distribution fees		5			10			(5	)		5			-
Advisory and other revenue(a)		70			71			(1	)		73			(3	)
Total revenue		3,233			2,837			396			2,965			268
Expense
Employee compensation and benefits		1,088			969			119			999			89
Distribution and servicing costs		123			114			9			121			2
Amortization of deferred sales commissions		4			8			(4	)		4			-
Direct fund expense		234			200			34			224			10
General and administration		363			312			51			350			13
Amortization of intangible assets		27			25		2				25			2
Total expense		1,839			1,628			211			1,723			116
Operating income		1,394			1,209			185			1,242			152
Nonoperating income (expense)
Net gain (loss) on investments		41			31			10			36			5
Interest and dividend income		15			22			(7	)		13			2
Interest expense		(46	)		(52	)		6			(48	)		2
Total nonoperating income (expense)		10			1			9			1			9
Income before income taxes		1,404			1,210			194			1,243			161
Income tax expense		445			333			112			376			69
Net income		959			877			82			867			92
Less:
Net income (loss) attributable to noncontrolling interests		12			2			10			10			2
Net income attributable to BlackRock, Inc.	$	947		$	875		$	72		$	857		$	90
Weighted-average common shares outstanding
Basic		161,872,716			164,129,214			(2,256,498	)		162,502,465			(629,749	)
Diluted		163,773,546			166,256,598			(2,483,052	)		164,149,861			(376,315	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	5.85		$	5.33		$	0.52		$	5.27		$	0.58
Diluted	$	5.78		$	5.26		$	0.52		$	5.22		$	0.56
Cash dividends declared and paid per share	$	2.50		$	2.29		$	0.21		$	2.50		$	-
Supplemental information:
AUM (end of period)	$	5,976,892		$	5,117,421		$	859,471		$	5,689,273		$	287,619
Shares outstanding (end of period)		161,597,770			163,858,070			(2,260,300	)		162,207,216			(609,446	)
GAAP:
Operating margin		43.1	%		42.6	%		50	bps		41.9	%		120	bps
Effective tax rate		32.0	%		27.6	%		440	bps		30.5	%		150	bps
As adjusted:
Operating income (1)	$	1,398		$	1,216		$	182		$	1,246		$	152
Operating margin (1)		45.0	%		44.8	%		20	bps		43.9	%		110	bps
Nonoperating income (expense), less net income   (loss) attributable to noncontrolling interests	$	(2	)	$	(1	)	$	(1	)	$	(9	)	$	7
Net income attributable to BlackRock, Inc. (2)	$	969		$	854		$	115		$	860		$	109
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	5.92		$	5.14		$	0.78		$	5.24		$	0.68
Effective tax rate		30.6	%		29.7	%		90	bps		30.5	%		10	bps
See pages 13-14 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

^(a) Beginning with the first quarter of 2017, Aladdin revenue previously reported within “BlackRock Solutions^® and advisory” has been presented within “Technology and risk management revenue” on the condensed consolidated statements of income.  The remaining previously reported “BlackRock Solutions and advisory” revenue is currently reported as part of “Advisory and other revenue.” Under the historical presentation, BlackRock Solutions and advisory revenue would have totaled $200 million for the three months ended September 30, 2017. The prior period amount reported for BlackRock Solutions and advisory of $174 million for the three months ended September 30, 2016 has been reclassified to conform to the current presentation.  See page 10 for further information.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

	Nine Months Ended
	September 30,
	2017			2016			Change
Revenue
Investment advisory, administration fees and securities       lending revenue	$	7,997		$	7,394		$	603
Investment advisory performance fees		309			166			143
Technology and risk management revenue(a)		497			439			58
Distribution fees		17			32			(15	)
Advisory and other revenue(a)		202			234			(32	)
Total revenue		9,022			8,265			757
Expense
Employee compensation and benefits		3,108			2,893			215
Distribution and servicing costs		361			320			41
Amortization of deferred sales commissions		13			27			(14	)
Direct fund expense		666			583			83
General and administration		1,014			946			68
Restructuring charge		-			76			(76	)
Amortization of intangible assets		77			75			2
Total expense		5,239			4,920			319
Operating income		3,783			3,345			438
Nonoperating income (expense)
Net gain (loss) on investments		128			49			79
Interest and dividend income		35			33			2
Interest expense		(159	)		(154	)		(5	)
Total nonoperating income (expense)		4			(72	)		76
Income before income taxes		3,787			3,273			514
Income tax expense		1,090			954			136
Net income		2,697			2,319			378
Less:
Net income (loss) attributable to noncontrolling interests		31			(2	)		33
Net income attributable to BlackRock, Inc.	$	2,666		$	2,321		$	345
Weighted-average common shares outstanding
Basic		162,459,737			164,756,355			(2,296,618	)
Diluted		164,289,042			166,760,912			(2,471,870	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	16.41		$	14.09		$	2.32
Diluted	$	16.23		$	13.92		$	2.31
Cash dividends declared and paid per share	$	7.50		$	6.87		$	0.63
Supplemental information:
AUM (end of period)	$	5,976,892		$	5,117,421		$	859,471
Shares outstanding (end of period)		161,597,770			163,858,070			(2,260,300	)
GAAP:
Operating margin		41.9	%		40.5	%		140	bps
Effective tax rate		29.0	%		29.1	%		(10	) bps
As adjusted:
Operating income (1)	$	3,795		$	3,442		$	353
Operating margin (1)		43.9	%		43.5	%		40	bps
Nonoperating income (expense), less net income (loss)      attributable to noncontrolling interests	$	(27	)	$	(70	)	$	43
Net income attributable to BlackRock, Inc. (2)	$	2,694		$	2,362		$	332
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	16.40		$	14.16		$	2.24
Effective tax rate		28.5	%		30.0	%		(150	) bps
See pages 13-14 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

^(a) Beginning with the first quarter of 2017, Aladdin revenue previously reported within “BlackRock Solutions and advisory” has been presented within “Technology and risk management revenue” on the condensed consolidated statements of income.  The remaining previously reported “BlackRock Solutions and advisory” revenue is currently reported as part of “Advisory and other revenue.” Under the historical presentation, BlackRock Solutions and advisory revenue would have totaled $571 million for the nine months ended September 30, 2017.  The prior period amount reported for BlackRock Solutions and advisory of $517 million for the nine months ended September 30, 2016 has been reclassified to conform to the current presentation.  See page 10 for further information.

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ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
			Net
	June 30,		inflows			Market					September 30,
	2017		(outflows)			change			FX impact (1)		2017		Average AUM (2)
Retail:
Equity	$	215,808	$	1,734		$	6,110		$	2,016	$	225,668	$	220,944
Fixed income		240,932		4,613			1,569			1,234		248,348		245,193
Multi-asset		113,903		1,046			2,796			317		118,062		116,183
Alternatives		16,113		(26	)		224			132		16,443		17,198
Retail subtotal		586,756		7,367			10,699			3,699		608,521		599,518
iShares ETFs:
Equity		1,139,850		33,102			50,806			4,637		1,228,395		1,184,488
Fixed income		364,991		17,526			1,055			2,695		386,267		376,880
Multi-asset		3,240		169			77		5			3,491		3,359
Alternatives		20,155		1,509			576			44		22,284		21,283
iShares ETFs subtotal		1,528,236		52,306			52,514			7,381		1,640,437		1,586,010
Institutional:
Active:
Equity		126,446		(3,296	)		5,866			1,350		130,366		128,842
Fixed income		553,652		496			4,513			3,366		562,027		559,121
Multi-asset		311,921		3,477			7,827			4,508		327,733		320,619
Alternatives		83,836		(522	)		1,161			623		85,098		83,851
Active subtotal		1,075,855		155			19,367			9,847		1,105,224		1,092,433
Index:
Equity		1,532,592		(19,605	)		65,291			9,758		1,588,036		1,562,897
Fixed income		545,049		36,914			(1,451	)		11,266		591,778		572,049
Multi-asset		7,672		(358	)		389			38		7,741		7,824
Alternatives		7,880		(975	)		156			85		7,146		7,544
Index subtotal		2,093,193		15,976			64,385			21,147		2,194,701		2,150,314
Institutional subtotal		3,169,048		16,131			83,752			30,994		3,299,925		3,242,747
Long-term		5,284,040		75,804			146,965			42,074		5,548,883		5,428,275
Cash management		402,575		20,381			224			2,243		425,423		415,082
Advisory (3)		2,658		(73	)		(98	)		99		2,586		2,621
Total	$	5,689,273	$	96,112		$	147,091		$	44,416	$	5,976,892	$	5,845,978
Current Quarter Component Changes by Investment Style and Product Type (Long-term)
			Net
	June 30,		inflows			Market					September 30,
	2017		(outflows)			change			FX impact (1)		2017		Average AUM (2)
Active:
Equity	$	290,196	$	(3,015	)	$	10,433		$	2,562	$	300,176	$	295,895
Fixed income		782,622		4,836			6,079			4,303		797,840		792,042
Multi-asset		425,824		4,523			10,623			4,825		445,795		436,802
Alternatives		99,949		(548	)		1,385			755		101,541		101,049
Active subtotal		1,598,591		5,796			28,520			12,445		1,645,352		1,625,788
Index and iShares ETFs:
iShares ETFs:
Equity		1,139,850		33,102			50,806			4,637		1,228,395		1,184,488
Fixed income		364,991		17,526			1,055			2,695		386,267		376,880
Multi-asset		3,240		169			77		5			3,491		3,359
Alternatives		20,155		1,509			576			44		22,284		21,283
iShares ETFs subtotal		1,528,236		52,306			52,514			7,381		1,640,437		1,586,010
Non-ETF Index:
Equity		1,584,650		(18,152	)		66,834			10,562		1,643,894		1,616,788
Fixed income		557,011		37,187			(1,448	)		11,563		604,313		584,321
Multi-asset		7,672		(358	)		389			38		7,741		7,824
Alternatives		7,880		(975	)		156			85		7,146		7,544
Non-ETF Index subtotal		2,157,213		17,702			65,931			22,248		2,263,094		2,216,477
Index & iShares ETFs subtotal		3,685,449		70,008			118,445			29,629		3,903,531		3,802,487
Long-term	$	5,284,040	$	75,804		$	146,965		$	42,074	$	5,548,883	$	5,428,275
Current Quarter Component Changes by Product Type (Long-term)
			Net
	June 30,		inflows			Market					September 30,
	2017		(outflows)			change			FX impact (1)		2017		Average AUM (2)
Equity	$	3,014,696	$	11,935		$	128,073		$	17,761	$	3,172,465	$	3,097,171
Fixed income		1,704,624		59,549			5,686			18,561		1,788,420		1,753,243
Multi-asset		436,736		4,334			11,089			4,868		457,027		447,985
Alternatives:
Core		97,551		(504	)		1,355			766		99,168		98,746
Currency and commodities(4)		30,433		490			762			118		31,803		31,130
Alternatives subtotal		127,984		(14	)		2,117			884		130,971		129,876
Long-term	$	5,284,040	$	75,804		$	146,965		$	42,074	$	5,548,883	$	5,428,275

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

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

⁽³⁾ Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁴⁾ Amounts include commodity iShares ETFs.

-7-

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-to-Date Component Changes by Client Type and Product Type
			Net
	December 31,		inflows					Market					September 30,
	2016		(outflows)			Acquisition(1)		change			FX impact (2)		2017		Average AUM (3)
Retail:
Equity	$	196,221	$	3,009		$	-	$	20,892		$	5,546	$	225,668	$	212,224
Fixed income		222,256		16,497			-		6,003			3,592		248,348		236,065
Multi-asset		107,997		(847	)		-		10,005			907		118,062		112,831
Alternatives		15,478		(158	)		-		725			398		16,443		16,522
Retail subtotal		541,952		18,501			-		37,625			10,443		608,521		577,642
iShares ETFs:
Equity		951,252		129,488			-		134,562			13,093		1,228,395		1,095,500
Fixed income		314,707		58,779			-		5,105			7,676		386,267		351,985
Multi-asset		3,149		61			-		272		9			3,491		3,122
Alternatives		18,771		2,213			-		1,138			162		22,284		20,470
iShares ETFs subtotal		1,287,879		190,541			-		141,077			20,940		1,640,437		1,471,077
Institutional:
Active:
Equity		120,699		(12,357	)		-		18,023			4,001		130,366		126,223
Fixed income		536,727		(2,967	)		-		17,705			10,562		562,027		551,117
Multi-asset		276,933		16,692			-		21,531			12,577		327,733		301,793
Alternatives		75,615		2,367			3,264		2,021			1,831		85,098		79,818
Active subtotal		1,009,974		3,735			3,264		59,280			28,971		1,105,224		1,058,951
Index:
Equity		1,389,004		(25,778	)		-		193,874			30,936		1,588,036		1,504,119
Fixed income		498,675		63,528			-		97			29,478		591,778		540,163
Multi-asset		6,928		(500	)		-		1,098			215		7,741		7,518
Alternatives		7,074		(367	)		-		194			245		7,146		7,538
Index subtotal		1,901,681		36,883			-		195,263			60,874		2,194,701		2,059,338
Institutional subtotal		2,911,655		40,618			3,264		254,543			89,845		3,299,925		3,118,289
Long-term		4,741,486		249,660			3,264		433,245			121,228		5,548,883		5,167,008
Cash management		403,584		14,854			-		850			6,135		425,423		406,729
Advisory (4)		2,782		(188	)		-		(189	)		181		2,586		2,691
Total	$	5,147,852	$	264,326		$	3,264	$	433,906		$	127,544	$	5,976,892	$	5,576,428
Year-to-Date Component Changes by Investment Style and Product Type (Long-term)
			Net
	December 31,		inflows					Market					September 30,
	2016		(outflows)			Acquisition(1)		change			FX impact (2)		2017		Average AUM (3)
Active:
Equity	$	275,033	$	(17,475	)	$	-	$	34,966		$	7,652	$	300,176	$	289,036
Fixed income		749,996		10,910			-		23,502			13,432		797,840		775,996
Multi-asset		384,930		15,845			-		31,536			13,484		445,795		414,624
Alternatives		91,093		2,209			3,264		2,746			2,229		101,541		96,339
Active subtotal		1,501,052		11,489			3,264		92,750			36,797		1,645,352		1,575,995
Index and iShares ETFs:
iShares ETFs:
Equity		951,252		129,488			-		134,562			13,093		1,228,395		1,095,500
Fixed income		314,707		58,779			-		5,105			7,676		386,267		351,985
Multi-asset		3,149		61			-		272		9			3,491		3,122
Alternatives		18,771		2,213			-		1,138			162		22,284		20,470
iShares ETFs subtotal		1,287,879		190,541			-		141,077			20,940		1,640,437		1,471,077
Non-ETF Index:
Equity		1,430,891		(17,651	)		-		197,823			32,831		1,643,894		1,553,530
Fixed income		507,662		66,148			-		303			30,200		604,313		551,349
Multi-asset		6,928		(500	)		-		1,098			215		7,741		7,518
Alternatives		7,074		(367	)		-		194			245		7,146		7,539
Non-ETF Index subtotal		1,952,555		47,630			-		199,418			63,491		2,263,094		2,119,936
Index & iShares ETFs subtotal		3,240,434		238,171			-		340,495			84,431		3,903,531		3,591,013
Long-term	$	4,741,486	$	249,660		$	3,264	$	433,245		$	121,228	$	5,548,883	$	5,167,008
Year-to-Date Component Changes by Product Type (Long-term)
			Net
	December 31,		inflows					Market					September 30,
	2016		(outflows)			Acquisition(1)		change			FX impact (2)		2017		Average AUM (3)
Equity	$	2,657,176	$	94,362		$	-	$	367,351		$	53,576	$	3,172,465	$	2,938,066
Fixed income		1,572,365		135,837			-		28,910			51,308		1,788,420		1,679,330
Multi-asset		395,007		15,406			-		32,906			13,708		457,027		425,264
Alternatives:
Core		88,630		2,353			3,264		2,753			2,168		99,168		93,963
Currency and commodities(5)		28,308		1,702			-		1,325			468		31,803		30,385
Alternatives subtotal		116,938		4,055			3,264		4,078			2,636		130,971		124,348
Long-term	$	4,741,486	$	249,660		$	3,264	$	433,245		$	121,228	$	5,548,883	$	5,167,008

⁽¹⁾ Amount represents AUM acquired in the First Reserve Infrastructure business transaction in June 2017 (“First Reserve Transaction”).  

⁽²⁾ Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽³⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing ten months.

⁽⁴⁾ Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁵⁾ Amounts include commodity iShares ETFs.

-8-

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type
			Net
	September 30,		inflows					Market						September 30,
	2016		(outflows)			Acquisition(1)		change			FX impact (2)			2017		Average AUM (3)
Retail:
Equity	$	196,131	$	4,751		$	-	$	22,417		$	2,369		$	225,668	$	207,806
Fixed income		230,842		14,666			-		1,204			1,636			248,348		234,080
Multi-asset		111,369		(2,548	)		-		8,891			350			118,062		111,957
Alternatives		16,436		(814	)		-		693			128			16,443		16,435
Retail subtotal		554,778		16,055			-		33,205			4,483			608,521		570,278
iShares ETFs:
Equity		891,010		180,138			-		150,283			6,964			1,228,395		1,049,435
Fixed income		329,462		58,453			-		(5,239	)		3,591			386,267		345,114
Multi-asset		2,506		755			-		223			7			3,491		2,999
Alternatives		23,188		495			-		(1,448	)		49			22,284		20,724
iShares ETFs subtotal		1,246,166		239,841			-		143,819			10,611			1,640,437		1,418,272
Institutional:
Active:
Equity		123,770		(15,161	)		-		20,675			1,082			130,366		124,915
Fixed income		560,799		(1,700	)		-		3,168			(240	)		562,027		550,908
Multi-asset		280,406		22,351			-		19,126			5,850			327,733		295,524
Alternatives		74,678		4,553			3,264		2,092			511			85,098		78,678
Active subtotal		1,039,653		10,043			3,264		45,061			7,203			1,105,224		1,050,025
Index:
Equity		1,355,128		(17,400	)		-		246,625			3,683			1,588,036		1,468,656
Fixed income		507,165		89,725			-		(15,805	)		10,693			591,778		528,790
Multi-asset		7,980		(296	)		-		371			(314	)		7,741		7,603
Alternatives		7,228		(543	)		-		408			53			7,146		7,440
Index subtotal		1,877,501		71,486			-		231,599			14,115			2,194,701		2,012,489
Institutional subtotal		2,917,154		81,529			3,264		276,660			21,318			3,299,925		3,062,514
Long-term		4,718,098		337,425			3,264		453,684			36,412			5,548,883		5,051,064
Cash management		388,982		32,526			-		1,074			2,841			425,423		404,180
Advisory (4)		10,341		(7,573	)		-		(137	)		(45	)		2,586		4,323
Total	$	5,117,421	$	362,378		$	3,264	$	454,621		$	39,208		$	5,976,892	$	5,459,567
Year-over-Year Component Changes by Investment Style and Product Type (Long-term)
			Net
	September 30,		inflows					Market						September 30,
	2016		(outflows)			Acquisition(1)		change			FX impact (2)			2017		Average AUM (3)
Active:
Equity	$	281,726	$	(22,023	)	$	-	$	38,028		$	2,445		$	300,176	$	285,819
Fixed income		782,858		9,427			-		4,516			1,039			797,840		774,433
Multi-asset		391,775		19,803			-		28,017			6,200			445,795		407,481
Alternatives		91,114		3,739			3,264		2,785			639			101,541		95,113
Active subtotal		1,547,473		10,946			3,264		73,346			10,323			1,645,352		1,562,846
Index and iShares ETFs:
iShares ETFs
Equity		891,010		180,138			-		150,283			6,964			1,228,395		1,049,435
Fixed income		329,462		58,453			-		(5,239	)		3,591			386,267		345,114
Multi-asset		2,506		755			-		223			7			3,491		2,999
Alternatives		23,188		495			-		(1,448	)		49			22,284		20,724
iShares ETFs subtotal		1,246,166		239,841			-		143,819			10,611			1,640,437		1,418,272
Non-ETF Index
Equity		1,393,303		(5,787	)		-		251,689			4,689			1,643,894		1,515,558
Fixed income		515,948		93,264			-		(15,949	)		11,050			604,313		539,345
Multi-asset		7,980		(296	)		-		371			(314	)		7,741		7,603
Alternatives		7,228		(543	)		-		408			53			7,146		7,440
Non-ETF Index subtotal		1,924,459		86,638			-		236,519			15,478			2,263,094		2,069,946
Index & iShares ETFs subtotal		3,170,625		326,479			-		380,338			26,089			3,903,531		3,488,218
Long-term	$	4,718,098	$	337,425		$	3,264	$	453,684		$	36,412		$	5,548,883	$	5,051,064
Year-over-Year Component Changes by Product Type (Long-term)
			Net
	September 30,		inflows					Market						September 30,
	2016		(outflows)			Acquisition(1)		change			FX impact (2)			2017		Average AUM (3)
Equity	$	2,566,039	$	152,328		$	-	$	440,000		$	14,098		$	3,172,465	$	2,850,812
Fixed income		1,628,268		161,144			-		(16,672	)		15,680			1,788,420		1,658,892
Multi-asset		402,261		20,262			-		28,611			5,893			457,027		418,083
Alternatives:
Core		88,731		3,569			3,264		2,773			831			99,168		92,758
Currency and commodities(5)		32,799		122			-		(1,028	)		(90	)		31,803		30,519
Alternatives subtotal		121,530		3,691			3,264		1,745			741			130,971		123,277
Long-term	$	4,718,098	$	337,425			3,264	$	453,684		$	36,412		$	5,548,883	$	5,051,064

⁽¹⁾ Amount represents AUM acquired in the First Reserve Transaction.

⁽²⁾ Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽³⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

⁽⁴⁾ Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁵⁾ Amounts include commodity iShares ETFs.

-9-

SUMMARY OF REVENUE

								Three Months
	Three Months Ended							Ended					Nine Months Ended
	September 30,							June 30,					September 30,
(in millions), (unaudited)	2017		2016		Change			2017		Change			2017		2016		Change
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	421	$	409	$	12		$	412	$	9		$	1,235	$	1,201	$	34
iShares ETFs		836		691		145			776		60			2,333		1,970		363
Non-ETF Index		170		170		-			178		(8	)		509		508		1
Equity subtotal		1,427		1,270		157			1,366		61			4,077		3,679		398
Fixed income:
Active		442		427		15			428		14			1,281		1,237		44
iShares ETFs		210		188		22			200		10			595		512		83
Non-ETF Index		88		78		10			84		4			257		217		40
Fixed income subtotal		740		693		47			712		28			2,133		1,966		167
Multi-asset		289		285		4			282		7			843		860		(17	)
Alternatives:
Core		169		156		13			156		13			469		488		(19	)
Currency and commodities		23		24		(1	)		22		1			67		61		6
Alternatives subtotal		192		180		12			178		14			536		549		(13	)
Long-term		2,648		2,428		220			2,538		110			7,589		7,054		535
Cash management		144		118		26			137		7			408		340		68
Total base fees		2,792		2,546		246			2,675		117			7,997		7,394		603
Investment advisory performance fees:
Equity		30		14		16			12		18			57		67		(10	)
Fixed income		9		2		7			1		8			20		9		11
Multi-asset		2		1		1			7		(5	)		14		6		8
Alternatives		150		41		109			28		122			218		84		134
Total performance fees		191		58		133			48		143			309		166		143
Technology and risk management revenue(1)		175		152		23			164		11			497		439		58
Distribution fees		5		10		(5	)		5		-			17		32		(15	)
Advisory and other revenue:
Advisory(1)		25		22		3			25		-			74		78		(4	)
Other		45		49		(4	)		48		(3	)		128		156		(28	)
Advisory and other revenue		70		71		(1	)		73		(3	)		202		234		(32	)
Total revenue	$	3,233	$	2,837	$	396		$	2,965	$	268		$	9,022	$	8,265	$	757

⁽¹⁾ Beginning with the first quarter of 2017, Aladdin revenue previously reported within “BlackRock Solutions and advisory” has been presented within “Technology and risk management revenue” on the condensed consolidated statements of income.  The remaining previously reported “BlackRock Solutions and advisory” revenue is currently reported as part of “Advisory and other revenue.” Under the historical presentation, BlackRock Solutions and advisory revenue would have totaled $200 million and $571 million for the three and nine months ended September 30, 2017, respectively. The prior period amounts reported for BlackRock Solutions and advisory of $174 million and $517 million for the three and nine months ended September 30, 2016, respectively, have been reclassified to conform to the current presentation.

Highlights

▪ Investment advisory, administration fees and securities lending revenue increased $246 million from the third quarter of 2016, reflecting the impact of higher markets and organic growth on average AUM, partially offset by previously announced pricing changes to select investment products.  Securities lending revenue of $150 million in the current quarter compared with $142 million in the third quarter of 2016.

Investment advisory, administration fees and securities lending revenue increased $117 million from the second quarter of 2017, driven by higher average AUM and the effect of one additional day in the current quarter.  Securities lending revenue of $150 million in the current quarter compared with $156 million in the second quarter of 2017.

▪ Performance fees increased $133 million from the third quarter of 2016 and $143 million from the second quarter of 2017, reflecting improved performance in a broad range of hedge and long-only funds, including strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.  

▪ Technology and risk management revenue increased $23 million from the third quarter of 2016 and $11 million from the second quarter of 2017, reflecting ongoing demand for Aladdin and other technology offerings. 

-10-

SUMMARY OF OPERATING EXPENSE

	Three							Three
	Months Ended							Months Ended				Nine Months Ended
	September 30,							June 30,				September 30,
(in millions), (unaudited)	2017		2016		Change			2017		Change		2017		2016		Change
Operating expense
Employee compensation and benefits	$	1,088	$	969	$	119		$	999	$	89	$	3,108	$	2,893	$	215
Distribution and servicing costs		123		114		9			121		2		361		320		41
Amortization of deferred sales commissions		4		8		(4	)		4		-		13		27		(14	)
Direct fund expense		234		200		34			224		10		666		583		83
General and administration		363		312		51			350		13		1,014		946		68
Restructuring charge		-		-		-			-		-		-		76		(76	)
Amortization of intangible assets		27		25		2			25		2		77		75		2
Total operating expense	$	1,839	$	1,628	$	211		$	1,723	$	116	$	5,239	$	4,920	$	319

Highlights

▪ Employee compensation and benefits expense increased $119 million from the third quarter of 2016, primarily reflecting higher incentive compensation, driven primarily by higher performance fees and operating income, and higher headcount.

Employee compensation and benefits expense increased $89 million from the second quarter of 2017, primarily reflecting higher incentive compensation, driven primarily by performance fees and operating income.

▪ Direct fund expense increased $34 million from the third quarter of 2016 and $10 million from the second quarter of 2017, reflecting higher average AUM.  

▪ General and administration expense increased $51 million from the third quarter of 2016, reflecting higher portfolio services, technology, and professional services,as well as increased foreign exchange remeasurement expense and contingent consideration fair value adjustments.

General and administration expense increased $13 million from the second quarter of 2017, reflecting increased professional service fees and contingent consideration fair value adjustments, partially offset by lower marketing and promotional expense.

INCOME TAX EXPENSE

	Three									Three
	Months Ended									Months Ended				Nine Months Ended
	September 30,									June 30,				September 30,
(in millions), (unaudited)	2017			2016			Change			2017	Change			2017			2016			Change
Income tax expense	$	445		$	333		$	112		$                 376	$	69		$	1,090		$	954		$	136
Effective tax rate		32.0	%		27.6	%		440	bps	30.5%		150	bps		29.0	%		29.1	%		(10	) bps

Highlights

▪ Third quarter 2017 income tax expense included a $19 million net noncash tax expense related to the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes.

▪ Third quarter 2016 income tax expense included a $26 million net noncash tax benefit, primarily related to the revaluation of certain deferred income tax liabilities as a result of legislation enacted in the United Kingdom, and domestic state and local tax changes.

-11-

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

	Three Months									Three Months
	Ended									Ended						Nine Months Ended
	September 30,									June 30,						September 30,
(in millions), (unaudited)	2017			2016			Change			2017			Change			2017			2016			Change
Nonoperating income (expense), GAAP basis	$	10		$	1		$	9		$	1		$	9		$	4		$	(72	)	$	76
Less: Net income (loss) attributable to      noncontrolling interests ("NCI")		12			2			10			10			2			31			(2	)		33
Nonoperating income (expense), as adjusted(1)(2)	$	(2	)	$	(1	)	$	(1	)	$	(9	)	$	7		$	(27	)	$	(70	)	$	43
	Three Months									Three Months
	Ended									Ended						Nine Months Ended
	September 30,									June 30,						September 30,
(in millions), (unaudited)	2017			2016			Change			2017			Change			2017			2016			Change
Net gain (loss) on investments(1)(2)
Private equity	$	7		$	2		$	5		$	8		$	(1	)	$	21		$	11		$	10
Real assets		1			2			(1	)		-			1			2			5			(3	)
Other alternatives(3)		11			9			2			9			2			34			13			21
Other investments(4)		10			16			(6	)		4			6			35			22			13
Subtotal		29			29			-			21			8			92			51			41
Other gains		-			-			-			5			(5	)		5			-			5
Total net gain (loss) on investments(1)(2)		29			29			-			26			3			97			51			46
Interest and dividend income		15			22			(7	)		13			2			35			33			2
Interest expense		(46	)		(52	)		6			(48	)		2			(159	)		(154	)		(5	)
Net interest expense		(31	)		(30	)		(1	)		(35	)		4			(124	)		(121	)		(3	)
Nonoperating income (expense), as adjusted(1)(2)	$	(2	)	$	(1	)	$	(1	)	$	(9	)	$	7		$	(27	)	$	(70	)	$	43

⁽¹⁾ Net of net income (loss) attributable to NCI.  

⁽²⁾ Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to results.   For more information on other as adjusted items and the reconciliation to GAAP see notes (1) through (3) to the Condensed Consolidated Statements of Income and Supplemental Information on pages 13 and 14.

⁽³⁾ Amounts primarily include net gains (losses) related to direct hedge fund strategies and hedge fund solutions.

⁽⁴⁾ Amounts primarily include net gains (losses) related to equity and fixed income investments.

ECONOMIC TANGIBLE ASSETS

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

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

	September 30,			December 31,
(in billions), (unaudited)	2017 (Est.)			2016
Total balance sheet assets	$	221		$	220
Separate account assets and separate account collateral held under     securities lending agreements		(176	)		(177	)
Consolidated sponsored investment funds		-			(1	)
Goodwill and intangible assets, net		(31	)		(30	)
Economic tangible assets	$	14		$	12

-12-

RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
	Three Months Ended									Nine Months Ended
	September 30,						June 30,			September 30,
(in millions), (unaudited)	2017			2016			2017			2017			2016
Operating income, GAAP basis	$	1,394		$	1,209		$	1,242		$	3,783		$	3,345
Non-GAAP expense adjustments:
Restructuring charge		-			-			-			-			76
PNC LTIP funding obligation		4			7			4			12			21
Operating income, as adjusted	$	1,398		$	1,216		$	1,246		$	3,795		$	3,442
Revenue, GAAP basis	$	3,233		$	2,837		$	2,965		$	9,022		$	8,265
Non-GAAP adjustments:
Distribution and servicing costs		(123	)		(114	)		(121	)		(361	)		(320	)
Amortization of deferred sales commissions		(4	)		(8	)		(4	)		(13	)		(27	)
Revenue used for operating margin measurement	$	3,106		$	2,715		$	2,840		$	8,648		$	7,918
Operating margin, GAAP basis		43.1	%		42.6	%		41.9	%		41.9	%		40.5	%
Operating margin, as adjusted		45.0	%		44.8	%		43.9	%		43.9	%		43.5	%
See note (1) to the Condensed Consolidated Statements of Income and Supplemental Information on page 14 for more information on as adjusted items and the reconciliation to GAAP.
RECONCILIATION OF U.S. GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
	Three Months Ended									Nine Months Ended
	September 30,						June 30,			September 30,
(in millions, except per share data), (unaudited)	2017			2016			2017			2017			2016
Net income attributable to BlackRock, Inc., GAAP basis	$	947		$	875		$	857		$	2,666		$	2,321
Non-GAAP adjustments:
Restructuring charge (including $23 tax benefit)		-			-			-			-			53
PNC LTIP funding obligation, net of tax		3			5			3			9			14
Income tax matters		19			(26	)		-			19			(26	)
Net income attributable to BlackRock, Inc., as adjusted	$	969		$	854		$	860		$	2,694		$	2,362
Diluted weighted-average common shares outstanding(3)		163.8			166.3			164.1			164.3			166.8
Diluted earnings per common share, GAAP basis(3)	$	5.78		$	5.26		$	5.22		$	16.23		$	13.92
Diluted earnings per common share, as adjusted(3)	$	5.92		$	5.14		$	5.24		$	16.40		$	14.16
See notes (2) and (3) to the Condensed Consolidated Statements of Income and Supplemental Information on page 14 for more information on as adjusted items and the reconciliation to GAAP.

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

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

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

-13-

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

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

▪ Operating income, as adjusted, includes non-GAAP expense adjustments.  The portion of compensation expense associated with certain long-term incentive plans (“LTIP”) funded, or to be funded, through share distributions to participants of BlackRock stock held by The PNC Financial Services Group, Inc. (“PNC”) has been excluded because it ultimately does not impact BlackRock’s book value.  For the nine months ended September 30, 2016, a restructuring charge comprised of severance and accelerated amortization expense of previously granted deferred compensation awards has been excluded to provide an analysis of BlackRock’s ongoing operations and to ensure comparability among periods presented.

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

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

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

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

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

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

-14-

FORWARD-LOOKING STATEMENTS

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

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

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

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

PERFORMANCE NOTES

Past performance is not indicative of future results. Except as specified, the performance information shown is as of September 30, 2017 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including U.S. registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of August 31, 2017. The performance data does not include accounts terminated prior to September 30, 2017 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares funds globally using an index strategy. AUM information is based on AUM available as of September 30, 2017 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

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

-15-

EX-99.2

Q3 2017 Earnings Earnings Release Supplement October 11, 2017 7/13/2017 10:27 AM BlackRock Exhibit 99.2

A broadly diversified business across clients, products and geographies Q3 2017 Total Base Fees of $2.792 billion Assets Under Management of $5.977 trillion at September 30, 2017 Note: Base Fees and AUM by region data is based on client domicile. 1 Equity 53% 51% 62% 32% 28% 48% 64% 65% Institutional Active Americas Fixed income Retail Index EMEA Multi-asset iShares ETFs Alternatives Cash Asia-Pacific 30% 27% 11% 31% 38% 10% 29% 28% 27% 37% 7% 5% 2% 6% 8% Aum Base fees

5% 7% 7% 4% 4% 3% 3% 4% Long-term net flows ($ in billions) Total Long-Term Retail iShares ETFs Institutional LTM organic asset growth rate (%) LTM organic base fee growth rate (%) 5% 10% 7% 4% 1% 0% (2)% (1)% 1% 12% 13% 11% 11% 15% 13% 16% 21% 1% (1)% (1)% 0% 0% 2% 2% 3% Note: LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets. 3% 6% 6% 4% 2% 3% 1% 2% 5% 3% 19% 3% 2 Q2 Q3 Q4 Q1 2015 2016 2017 $(7) $35 $54 $36 $2 $55 $88 $80 $94 $11 $7 $7 $0 ($6) $(2) $(2) $5 $7 $11 $23 $60 $24 $16 $51 $49 $64 $74 $(29) $5 $(13) $12 $(8) $6 $41 $11 $13

Profitability ($ in millions, except per share data) Net Income and EPS, as adjusted Operating Income and Margin, as adjusted For further information and reconciliations between GAAP and as adjusted, see page 9 of this earnings release supplement, notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. Operating Income, as adjusted Operating Margin, as adjusted Net Income, as adjusted EPS, as adjusted 3 44.9% 43.9% 41.6% 41.6% 43.9% 44.8% 44.4% 42.6% 43.9% $4.96 $5.00 $4.75 $4.25 $4.78 $5.14 $5.14 $5.25 $5.24 Q2 Q3 Q4 Q1 2015 2016 2017 $1,248 $1,227 $1,143 $1,047 $1,179 $1,216 $1,232 $1,151 $1,246 $838 $844 $801 $711 $797 $854 $852 $865 $860

Capital management (amounts in millions, except per share data) Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions. GAAP Dividend Payout Ratio = Dividends declared / GAAP net income. Total GAAP Payout Ratio = (Dividends declared + share repurchases) / GAAP net income. Share repurchases and weighted average diluted shares Dividends and Payout Ratios 4 (1) GAAP Dividend Payout Ratio and Total GAAP Payout Ratio include the pre-tax restructuring charge of $76 million. (2) GAAP Dividend Payout Ratio and Total GAAP Payout Ratio include an $81 million tax benefit reflecting the adoption of new accounting guidance. 169.1 168.7 168.6 167.4 166.6 166.3 165.9 164.9 164.1 78 76 74 109 83 74 76 84 80 44 43 42 64 48 43 44 52169.1 168.7 168.6 167.4 166.6 166.3 165.9 164.9 164.1 78% 76% 74% 109% 83% 74% 76% 84% 80% 44% 43% 42% 64% 48% 43% 44% 52% 48% $275 $275 $275 $300 $275 $275 $275 $275 $275 Q2 Q3 Q4 Q1 2015 2016 2017

Major market indices and exchange rates 5 Source: Bloomberg (1) Revenue weighted composite index calculated by BlackRock to approximate the impact of market fluctuations on BlackRock’s equity base fees. The index is derived from publicly available market indices that represent applicable AUM benchmarks for each equity portfolio, as selected by BlackRock. The market impact information for each equity portfolio used to calculate the index may be substantially different from that shown. Index does not include portfolios that do not have an applicable market index. Index does not reflect BlackRock’s investment performance, and is not indicative of past or future results. 1% 5% (1)% 3% 15% 16% 21% 3% (11)% (3)% Spot % Change Average % Change 9/30/2017 vs. Q3 2017 vs. 42643 42916 43008 42916 42643 Q3 2016 Q2 2017 Q3 2017 Q2 2017 Q3 2016 Equity Indices: Domestic S&P 500 2,168 2,423 2,519 3.9620305406520839E-2 0.16190036900369004 2161 2,397 2,467 2.920317062995411E-2 0.14160111059694586 Global MSCI Barra World Index 1,726 1,916 2,001 4.4363256784968684E-2 0.1593279258400927 1712 1,893 1,958 3.4337031167459058E-2 0.14369158878504673 MSCI Europe Index 116 128 131 2.34375E-2 0.12931034482758622 115 131 128 -0.02 0.11304347826086956 MSCI AC Asia Pacific Index 140 155 161 3.870967741935484E-2 0.15 137 151 160 5.9602649006622516E-2 0.16788321167883211 MSCI Emerging Markets Index 903 1,011 1,082 7.0227497527200797E-2 0.1982281284606866 887 993 1,068 7.5528700906344406E-2 0.20405862457722659 S&P Global Natural Resources 2,930 3,175 3,512 0.10614173228346457 0.19863481228668942 2888 3,186 3,373 5.8694287507846832E-2 0.16793628808864267 BLK Equity Index (1) 0.06 0.17 0.05 0.15 Fixed Income Index: Barclays U.S. Aggregate Bond Index 2,037 2,021 2,038 8.4116773874319643E-3 -% 2035 2,015 2,036 1.0421836228287842E-2 -% Foreign Exchange Rates: GBP to USD 1.3 1.3 1.34 3.0769230769230795E-2 3.0769230769230795E-2 1.31 1.28 1.31 2.3437500000000021E-2 -% EUR to USD 1.1200000000000001 1.1399999999999999 1.18 3.5087719298245647E-2 5.3571428571428416E-2 1.1200000000000001 1.1000000000000001 1.18 7.2727272727272585E-2 5.3571428571428416E-2

Quarterly revenue Q3 2017 Compared to Q3 2016 $396 million Total Revenue Q3 2017 Compared to Q2 2017 $268 million Percentage Change Year-over-Year Sequential Base Fees ex. SL 10% 5% Securities lending 6% (4)% Performance fees 229% 298% Technology and risk management revenue 15% 7% Distribution fees (50)% -% Advisory and other revenue (1)% (4)% Total 14% 9% Q3 2017 $3,233 million 6 2% 6% 5% 85% Base fees ex. Securities lending Securities lending performance fees Technology and risk management revenue advisory and other revenues $2,804 $181 $18 $5 $(6) $(11) $(26) $2,965 $2,824 $130 $15 $14 $6 $(2) $(22) $2,965 Q2 2016 Base fees ex sec lending Technology and risk management securities lending distribution fees advisory other revenue performance fees Q2 2017 Q1 2017

Quarterly investment advisory, administration fees and securities lending revenue Q3 2017 Compared to Q3 2016 Investment advisory, administration fees and securities lending revenue $246 million Q3 2017 Compared to Q2 2017 $117 million Q3 2017: $2,792 million Q3 2016 $2,546 million Q2 2017: $2,675 million 7 26% 16% 5% 8% 11% 3% 7% 17% 7% 29% 7% 16% 7% 3% 11% 7% 5% 15% 29% 6% 16% 7% 3% 11% 7% 5% 16% $2,489 $120 $28 $18 $15 $14 $6 $4 $9 $10 $2,675 $2,530 $55 $17 $17 $15 $12 $10 $10 $10 $1 $2,675 Q2 2016 Q2 2017 Q1 2017 IShares efts EQ Ishares ETFs FI Cash Non-ETF FI Active FI Active EQ Non-ETF EQ Multi-asset alts

Quarterly expense Expense, as adjusted, by category Q3 2017 Compared to Q3 2016, as adjusted Expense, as adjusted, includes non-GAAP adjustments related to PNC LTIP funding obligation of $4 million in the third quarter of 2017, $7 million in the third quarter of 2016 and $4 million in the second quarter of 2017. For further information, see notes (1) through (3) in the current earnings release. $214 million Q3 2017 Compared to Q2 2017, as adjusted $116 million Percentage Change Year-over-Year Sequential Employee comp. & benefits 13% 9% Distribution & servicing costs 8% 2% Amort. of deferred sales commissions (50)% -% Direct fund expense 17% 4% General & administration 16% 4% Amortization of intangibles 8% 8% Total 13% 7% Q3 2017 $1,835 million 8 $1,625 $(5) $12 $24 $29 $34 $1,719 $1,673 $(22) $1 $4 $16 $49 $1,719 Q2 2017 Q2 2017 Q1 2017 Amort – def sales comm distribution & servicing comp & benefits direct fund G&A Comp & Benefits 58% 7% 13% 20% 2% Employee comp. & benefits Distribution & servicing costs direct fund expense general & administration Amortization of intangibles

Reconciliation between GAAP and as adjusted ($ in millions) Non-GAAP adjustments include amounts related to a restructuring charge, PNC LTIP funding obligation, compensation related to appreciation (depreciation) on certain deferred compensation plans and noncash income tax matters, as applicable. For further information and reconciliation between GAAP and as adjusted, see notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. 9 1,151 1,246 (16) (9) $(41) $(48) $11 $(48) $(25) $1 $(38) $(7) (9) 16 (10) 10 (6) (2) – (9) (10) As Adjusted $(50) $(32) $1 $(38) $(31) $(1) $(38) $(16) $(9) (60) (21) 2015 2016 2017 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Operating Income GAAP $1,222 $1,137 $963 $1,173 $1,209 $1,225 $1,147 $1,242 $1,394 Non-GAAP adjustments 5 6 84 6 7 7 4 4 4 As Adjusted $1,227 $1,143 $1,047 $1,179 $1,216 $1,232 $1,151 $1,246 $1,398 Nonoperating Income (Expense) GAAP $-48 $11 $-48 $-25 $1 $-38 $-7 $1 $10 Non-GAAP adjustments 16 -10 10 -6 -2 - -9 -10 -12 As Adjusted $-32 $1 $-38 $-31 $-1 $-38 $-16 $-9 $-2 Net Income GAAP $843 $861 $657 $789 $875 $851 $862 $857 $947 Non-GAAP adjustments 1 -60 54 8 -21 1 3 3 22 As Adjusted $844 $801 $711 $797 $854 $852 $865 $860 $969

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