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 16, 2018

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 16, 2018, BlackRock, Inc. (the “Company”) reported results of operations for the three and nine months ended September 30, 2018. 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, 2018 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 16, 2018 issued by the Company
99.2	Third Quarter 2018 Earnings – Earnings Release Supplement

EXHIBIT INDEX

99.1	Earnings release dated October 16, 2018 issued by the Company
99.2	Third Quarter 2018 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 16, 2018	Senior Managing Director and
	Chief Financial Officer
	Gary S. Shedlin

EX-99.1

Exhibit 99.1

INVESTOR RELATIONS: Samantha Tortora212.810.5397 MEDIARELATIONS: Brian Beades    212.810.5596

New York, October 16, 2018 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and nine months ended September 30, 2018.

BlackRock Reports Third Quarter 2018 Diluted EPS of $7.54, or $7.52 as adjusted

$6.4 trillion of AUM, up 8% year-over-year, including $28 billion of net AUM added from strategic transactions

$11 billionof quarterly long-term net inflows, led by iShares^®, active multi-asset and illiquid alternatives

2% growth in revenue year-over-year driven by4% base fee growth and 18% technology services revenue growth, partially offset by lower performance fees

1% increase in operating income year-over-year also reflects $42 million of transaction-related expense

31% diluted EPS growth (27% as adjusted) driven by higher nonoperating income and a lower effective tax rate

$500 million of share repurchases in the current quarter and $3.13 dividend per share

Laurence D. Fink, Chairman and CEO:

“BlackRock’s third quarter results highlight the resilience of our differentiated platform and our ability to generate organic growth, even in the face of significant industry headwinds. Our holistic, client-centric approach brings together our global product breadth, portfolio construction capabilities, digital tools and industry-leading technology, and positions us well to deliver long-term value to clients and shareholders.

“BlackRock generated $11 billion of long-term net inflows in the third quarter, despite more than $30 billion of institutional non-ETF index equity outflows that resulted from de-risking associated with ongoing divergent monetary policy and geopolitical uncertainty. Over the last twelve months, total net inflows of $177 billion reflect continued growth in key areas of our business, including iShares, multi-asset solutions, illiquid alternatives and Aladdin.

“We continue to build and evolve our business in order to stay ahead of clients’ needs and industry disruption, and completed several strategic transactions during the quarter to accelerate future growth. We are more confident than ever before in our ability to be a strategic partner to clients as a result of our broad array of integrated investment and technology offerings.”

FINANCIAL RESULTS

	Q3			Q3
(in millions, except per share data)	2018			2017*			Change
AUM	$	6,444,100		$	5,976,892			8	%
Total net flows	$	(3,105	)	$	96,112
GAAP basis:
Revenue	$	3,576		$	3,508			2	%
Operating income	$	1,396		$	1,389			1	%
Operating margin		39.0	%		39.6	%		(60	) bps
Net income(1)	$	1,216		$	944			29	%
Diluted EPS	$	7.54		$	5.76			31	%
Weighted average   diluted shares		161.4			163.8			(1	)%
As Adjusted:
Operating income(2)	$	1,400		$	1,393			1	%
Operating margin(2)		44.2	%		45.1	%		(90	) bps
Net income(1) (2)	$	1,214		$	966			26	%
Diluted EPS(2)	$	7.52		$	5.90			27	%

^* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

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

⁽²⁾ See notes (1) through (3) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items and the reconciliation to GAAP.

NET FLOW HIGHLIGHTS

Long-term net inflows of $10.6 billion by region:
Americas:	$	18.2		billion
EMEA:	$	(9.7	)	billion
APAC:	$	2.1		billion

Long-term net inflows of $10.6 billion by client type:

Retail:		$	1.7		billion
	U.S.:	$	2.5		billion
	International:	$	(0.8	)	billion
iShares:		$	33.7		billion
	Core:	$	20.3		billion
	Non-Core:	$	13.4		billion
Institutional:		$	(24.8	)	billion
	Index:	$	(23.6	)	billion
	Active:	$	(1.2	)	billion

Cash management net outflows of $(14.6) billion

1

BUSINESS RESULTS

								September 30, 2018			Q3 2018
	Q3 2018			September 30, 2018		Q3 2018		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	1,697		$	663,261	$	860		10	%		30	%
iShares ETFs		33,673			1,853,188		1,113		29	%		39	%
Institutional:
Active		(1,204	)		1,130,921		504		18	%		17	%
Index		(23,554	)		2,351,785		252		36	%		9	%
Total institutional		(24,758	)		3,482,706		756		54	%		26	%
Long-term		10,612			5,999,155		2,729		93	%		95	%
Cash management		(14,570	)		443,185		154		7	%		5	%
Advisory		853			1,760		-		-			-
Total	$	(3,105	)	$	6,444,100	$	2,883		100	%		100	%
RESULTS BY INVESTMENT STYLE
Active	$	(1,109	)	$	1,713,576	$	1,346		26	%		47	%
Index and iShares ETFs		11,721			4,285,579		1,383		67	%		48	%
Long-term		10,612			5,999,155		2,729		93	%		95	%
Cash management		(14,570	)		443,185		154		7	%		5	%
Advisory		853			1,760		-		-			-
Total	$	(3,105	)	$	6,444,100	$	2,883		100	%		100	%
RESULTS BY PRODUCT TYPE
Equity	$	(17,264	)	$	3,482,687	$	1,459		54	%		52	%
Fixed income		22,908			1,883,806		763		29	%		26	%
Multi-asset		3,228			492,810		298		8	%		10	%
Alternatives		1,740			139,852		209		2	%		7	%
Long-term		10,612			5,999,155		2,729		93	%		95	%
Cash management		(14,570	)		443,185		154		7	%		5	%
Advisory		853			1,760		-		-			-
Total	$	(3,105	)	$	6,444,100	$	2,883		100	%		100	%

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

INVESTMENT PERFORMANCE AT SEPTEMBER 30, 2018⁽¹⁾

	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	66%	72%	84%
Tax-exempt	74%	74%	78%
Index AUM within or above applicable tolerance	98%	99%	100%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	66%	70%	80%
Systematic	74%	85%	92%
Index AUM within or above applicable tolerance	97%	99%	98%

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

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Tuesday, October 16, 2018 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 4488387). 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 Tuesday, October 16, 2018 and ending at midnight on Tuesday, October 30, 2018. 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 4488387. To access the webcast, please visit the investor relations section of www.blackrock.com.

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, 2018, the firm managed approximately $6.44 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.

2

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,
	2018			2017*			Change			2018			Change
Revenue
Investment advisory, administration fees and   securities lending revenue	$	2,883		$	2,781		$	102		$	2,944		$	(61	)
Investment advisory performance fees		151			191			(40	)		91			60
Technology services revenue		200			169			31			198			2
Distribution fees		279			298			(19	)		294			(15	)
Advisory and other revenue		63			69			(6	)		78			(15	)
Total revenue		3,576			3,508			68			3,605			(29	)
Expense
Employee compensation and benefits		1,097			1,087			10			1,082			15
Distribution and servicing costs		408			419			(11	)		415			(7	)
Direct fund expense		249			231			18			264			(15	)
General and administration		413			355			58			393			20
Amortization of intangible assets		13			27			(14	)		11			2
Total expense		2,180			2,119			61			2,165			15
Operating income		1,396			1,389			7			1,440			(44	)
Nonoperating income (expense)
Net gain (loss) on investments		50			41			9			3			47
Interest and dividend income		29			15			14			19			10
Interest expense		(46	)		(46	)		-			(46	)		-
Total nonoperating income (expense)		33			10			23			(24	)		57
Income before income taxes		1,429			1,399			30			1,416			13
Income tax expense (benefit)		226			443			(217	)		338			(112	)
Net income		1,203			956			247			1,078			125
Less:
Net income (loss) attributable to noncontrolling   interests		(13	)		12			(25	)		5			(18	)
Net income attributable to BlackRock, Inc.	$	1,216		$	944		$	272		$	1,073		$	143
Weighted-average common shares outstanding
Basic		160,141,506			161,872,716			(1,731,210	)		160,980,960			(839,454	)
Diluted		161,378,217			163,773,546			(2,395,329	)		162,161,937			(783,720	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	7.59		$	5.83		$	1.76		$	6.67		$	0.92
Diluted	$	7.54		$	5.76		$	1.78		$	6.62		$	0.92
Cash dividends declared and paid per share	$	3.13		$	2.50		$	0.63		$	2.88		$	0.25
Supplemental information:
AUM (end of period)	$	6,444,100		$	5,976,892		$	467,208		$	6,299,706		$	144,394
Shares outstanding (end of period)		159,804,364			161,597,770			(1,793,406	)		160,779,596			(975,232	)
GAAP:
Operating margin		39.0	%		39.6	%		(60	) bps		39.9	%		(90	) bps
Effective tax rate		15.7	%		31.9	%		(1,620	) bps		24.0	%		(830	) bps
As adjusted:
Operating income (1)	$	1,400		$	1,393		$	7		$	1,443		$	(43	)
Operating margin (1)		44.2	%		45.1	%		(90	) bps		45.2	%		(100	) bps
Nonoperating income (expense), less net income      (loss) attributable to noncontrolling interests	$	46		$	(2	)	$	48		$	(29	)	$	75
Net income attributable to BlackRock, Inc. (2)	$	1,214		$	966		$	248		$	1,080		$	134
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	7.52		$	5.90		$	1.62		$	6.66		$	0.86
Effective tax rate		16.0	%		30.6	%		(1,460	) bps		23.7	%		(770	) bps

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

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.  

3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

	Nine Months Ended
	September 30,
	2018			2017*			Change
Revenue
Investment advisory, administration fees and securities       lending revenue	$	8,774		$	7,971		$	803
Investment advisory performance fees		312			309			3
Technology services revenue		582			481			101
Distribution fees		884			877			7
Advisory and other revenue		212			198			14
Total revenue		10,764			9,836			928
Expense
Employee compensation and benefits		3,300			3,106			194
Distribution and servicing costs		1,255			1,230			25
Direct fund expense		774			658			116
General and administration		1,189			996			193
Amortization of intangible assets		35			77			(42	)
Total expense		6,553			6,067			486
Operating income		4,211			3,769			442
Nonoperating income (expense)
Net gain (loss) on investments		68			128			(60	)
Interest and dividend income		63			35			28
Interest expense		(138	)		(159	)		21
Total nonoperating income (expense)		(7	)		4			(11	)
Income before income taxes		4,204			3,773			431
Income tax expense		829			1,085			(256	)
Net income		3,375			2,688			687
Less:
Net income (loss) attributable to noncontrolling interests		(3	)		31			(34	)
Net income attributable to BlackRock, Inc.	$	3,378		$	2,657		$	721
Weighted-average common shares outstanding
Basic		160,786,768			162,459,737			(1,672,969	)
Diluted		162,140,879			164,289,042			(2,148,163	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	21.01		$	16.35		$	4.66
Diluted	$	20.83		$	16.17		$	4.66
Cash dividends declared and paid per share	$	8.89		$	7.50		$	1.39
Supplemental information:
AUM (end of period)	$	6,444,100		$	5,976,892		$	467,208
Shares outstanding (end of period)		159,804,364			161,597,770			(1,793,406	)
GAAP:
Operating margin		39.1	%		38.3	%		80	bps
Effective tax rate		19.7	%		29.0	%		(930	) bps
As adjusted:
Operating income (1)	$	4,221		$	3,781		$	440
Operating margin (1)		44.5	%		43.9	%		60	bps
Nonoperating income (expense), less net income (loss)      attributable to noncontrolling interests	$	(4	)	$	(27	)	$	23
Net income attributable to BlackRock, Inc. (2)	$	3,386		$	2,685		$	701
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	20.88		$	16.34		$	4.54
Effective tax rate		19.7	%		28.5	%		(880	) bps

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

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.  

4

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
			Net			Acquisitions
	June 30,		inflows			and			Market						September 30,
	2018		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Retail:
Equity	$	232,617	$	(2,889	)	$	2,137		$	6,362		$	(683	)	$	237,544	$	235,327
Fixed income		266,987		3,141			14,070			(1,066	)		(253	)		282,879		271,896
Multi-asset		119,299		789			2,519			1,799			(102	)		124,304		121,557
Alternatives		17,922		656			7			(22	)		(29	)		18,534		18,164
Retail subtotal		636,825		1,697			18,733			7,073			(1,067	)		663,261		646,944
iShares ETFs:
Equity		1,346,288		21,215			-			46,621			(199	)		1,413,925		1,388,881
Fixed income		401,731		12,914			-			(2,094	)		(208	)		412,343		408,384
Multi-asset		3,767		(9	)		-			55			1			3,814		3,803
Alternatives		24,979		(447	)		-			(1,435	)		9			23,106		24,152
iShares ETFs subtotal		1,776,765		33,673			-			43,147			(397	)		1,853,188		1,825,220
Institutional:
Active:
Equity		134,986		(4,745	)		(4,296	)		3,564			(534	)		128,975		131,834
Fixed income		550,444		(398	)		2,417			722			(1,594	)		551,591		552,157
Multi-asset		350,545		2,471			(1,593	)		5,932			(468	)		356,887		353,321
Alternatives		87,413		1,468			4,995			(164	)		(244	)		93,468		90,308
Active subtotal		1,123,388		(1,204	)		1,523			10,054			(2,840	)		1,130,921		1,127,620
Index:
Equity		1,652,589		(30,845	)		4,749			80,833			(5,083	)		1,702,243		1,689,785
Fixed income		639,447		7,251			2,051			(6,660	)		(5,096	)		636,993		640,079
Multi-asset		8,055		(23	)		(243	)		110			(94	)		7,805		7,914
Alternatives		4,673		63			1			39			(32	)		4,744		4,680
Index subtotal		2,304,764		(23,554	)		6,558			74,322			(10,305	)		2,351,785		2,342,458
Institutional subtotal		3,428,152		(24,758	)		8,081			84,376			(13,145	)		3,482,706		3,470,078
Long-term		5,841,742		10,612			26,814			134,596			(14,609	)		5,999,155		5,942,242
Cash management		457,054		(14,570	)		686			630			(615	)		443,185		455,852
Advisory (4)		910		853			-			(10	)		7			1,760		1,308
Total	$	6,299,706	$	(3,105	)	$	27,500		$	135,216		$	(15,217	)	$	6,444,100	$	6,399,402
Current Quarter Component Changes by Investment Style and Product Type (Long-term)
			Net			Acquisitions
	June 30,		inflows			and			Market						September 30,
	2018		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Active:
Equity	$	304,098	$	(7,737	)	$	(2,160	)	$	7,729		$	(881	)	$	301,049	$	302,744
Fixed income		803,515		1,244			16,487			(199	)		(1,715	)		819,332		809,629
Multi-asset		469,845		3,260			926			7,731			(570	)		481,192		474,878
Alternatives		105,336		2,124			5,002			(186	)		(273	)		112,003		108,472
Active subtotal		1,682,794		(1,109	)		20,255			15,075			(3,439	)		1,713,576		1,695,723
Index and iShares ETFs:
iShares ETFs:
Equity		1,346,288		21,215			-			46,621			(199	)		1,413,925		1,388,881
Fixed income		401,731		12,914			-			(2,094	)		(208	)		412,343		408,384
Multi-asset		3,767		(9	)		-			55			1			3,814		3,803
Alternatives		24,979		(447	)		-			(1,435	)		9			23,106		24,152
iShares ETFs subtotal		1,776,765		33,673			-			43,147			(397	)		1,853,188		1,825,220
Non-ETF Index:
Equity		1,716,094		(30,742	)		4,750			83,030			(5,419	)		1,767,713		1,754,202
Fixed income		653,363		8,750			2,051			(6,805	)		(5,228	)		652,131		654,503
Multi-asset		8,054		(23	)		(243	)		110			(94	)		7,804		7,914
Alternatives		4,672		63			1			39			(32	)		4,743		4,680
Non-ETF Index subtotal		2,382,183		(21,952	)		6,559			76,374			(10,773	)		2,432,391		2,421,299
Index & iShares ETFs subtotal		4,158,948		11,721			6,559			119,521			(11,170	)		4,285,579		4,246,519
Long-term	$	5,841,742	$	10,612		$	26,814		$	134,596		$	(14,609	)	$	5,999,155	$	5,942,242
Current Quarter Component Changes by Product Type (Long-term)
			Net			Acquisitions
	June 30,		inflows			and			Market						September 30,
	2018		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Equity	$	3,366,480	$	(17,264	)	$	2,590		$	137,380		$	(6,499	)	$	3,482,687	$	3,445,827
Fixed income		1,858,609		22,908			18,538			(9,098	)		(7,151	)		1,883,806		1,872,516
Multi-asset		481,666		3,228			683			7,896			(663	)		492,810		486,595
Alternatives:
Core		102,768		2,092			4,995			(162	)		(228	)		109,465		105,918
Currency and commodities(5)		32,219		(352	)		8			(1,420	)		(68	)		30,387		31,386
Alternatives subtotal		134,987		1,740			5,003			(1,582	)		(296	)		139,852		137,304
Long-term	$	5,841,742	$	10,612		$	26,814		$	134,596		$	(14,609	)	$	5,999,155	$	5,942,242

⁽¹⁾ Amounts include net AUM from the acquisitions of Tennenbaum Capital Partners in August 2018 (“TCP Transaction”) and the asset management business of Citibanamex in September 2018 (“Citibanamex Transaction”), AUM reclassifications and net dispositions related to the transfer of BlackRock’s UK Defined Contribution Administration and Platform business to Aegon N.V. in July 2018 (“Aegon Transaction”), and net AUM dispositions related to the sale of BlackRock’s minority interest in DSP BlackRock Investment Managers Pvt. Ltd. to The DSP Group in August 2018 (“DSP 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 four months.

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

⁽⁵⁾ Amounts include commodity iShares ETFs.

5

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-to-Date Component Changes by Client Type and Product Type
			Net			Acquisitions
	December 31,		inflows			and			Market						September 30,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Retail:
Equity	$	233,218	$	(205	)	$	2,137		$	4,760		$	(2,366	)	$	237,544	$	236,413
Fixed income		257,571		19,425			14,070			(6,684	)		(1,503	)		282,879		267,050
Multi-asset		120,855		2,744			2,519			(1,407	)		(407	)		124,304		121,965
Alternatives		16,733		1,916			7			(14	)		(108	)		18,534		17,623
Retail subtotal		628,377		23,880			18,733			(3,345	)		(4,384	)		663,261		643,051
iShares ETFs:
Equity		1,329,610		52,308			-			37,177			(5,170	)		1,413,925		1,375,039
Fixed income		395,252		32,072			-			(12,415	)		(2,566	)		412,343		401,309
Multi-asset		3,761		62			-			(5	)		(4	)		3,814		3,789
Alternatives		23,616		1,691			-			(2,156	)		(45	)		23,106		24,886
iShares ETFs subtotal		1,752,239		86,133			-			22,601			(7,785	)		1,853,188		1,805,023
Institutional:
Active:
Equity		137,185		(6,255	)		(4,296	)		4,170			(1,829	)		128,975		136,050
Fixed income		570,050		(7,387	)		2,417			(9,490	)		(3,999	)		551,591		558,285
Multi-asset		347,825		6,270			(1,593	)		8,795			(4,410	)		356,887		349,495
Alternatives		84,248		3,734			4,995			1,396			(905	)		93,468		87,890
Active subtotal		1,139,308		(3,638	)		1,523			4,871			(11,143	)		1,130,921		1,131,720
Index:
Equity		1,671,628		(58,973	)		4,749			98,283			(13,444	)		1,702,243		1,683,996
Fixed income		632,592		31,901			2,051			(14,976	)		(14,575	)		636,993		642,648
Multi-asset		7,837		541			(243	)		(262	)		(68	)		7,805		8,106
Alternatives		4,750		(108	)		1			154			(53	)		4,744		4,751
Index subtotal		2,316,807		(26,639	)		6,558			83,199			(28,140	)		2,351,785		2,339,501
Institutional subtotal		3,456,115		(30,277	)		8,081			88,070			(39,283	)		3,482,706		3,471,221
Long-term		5,836,731		79,736			26,814			107,326			(51,452	)		5,999,155		5,919,295
Cash management		449,949		(6,167	)		686			1,043			(2,326	)		443,185		456,017
Advisory (4)		1,515		288			-			(2	)		(41	)		1,760		1,267
Total	$	6,288,195	$	73,857		$	27,500		$	108,367		$	(53,819	)	$	6,444,100	$	6,376,579
Year-to-Date Component Changes by Investment Style and Product Type (Long-term)
			Net			Acquisitions
	December 31,		inflows			and			Market						September 30,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Active:
Equity	$	311,209	$	(11,127	)	$	(2,160	)	$	6,268		$	(3,141	)	$	301,049	$	309,669
Fixed income		815,135		8,754			16,487			(15,985	)		(5,059	)		819,332		811,651
Multi-asset		468,679		9,014			926			7,388			(4,815	)		481,192		471,460
Alternatives		100,982		5,650			5,002			1,383			(1,014	)		112,003		105,513
Active subtotal		1,696,005		12,291			20,255			(946	)		(14,029	)		1,713,576		1,698,293
Index and iShares ETFs:
iShares ETFs:
Equity		1,329,610		52,308			-			37,177			(5,170	)		1,413,925		1,375,039
Fixed income		395,252		32,072			-			(12,415	)		(2,566	)		412,343		401,309
Multi-asset		3,761		62			-			(5	)		(4	)		3,814		3,789
Alternatives		23,616		1,691			-			(2,156	)		(45	)		23,106		24,886
iShares ETFs subtotal		1,752,239		86,133			-			22,601			(7,785	)		1,853,188		1,805,023
Non-ETF Index:
Equity		1,730,822		(54,306	)		4,750			100,945			(14,498	)		1,767,713		1,746,790
Fixed income		645,078		35,185			2,051			(15,165	)		(15,018	)		652,131		656,332
Multi-asset		7,838		541			(243	)		(262	)		(70	)		7,804		8,106
Alternatives		4,749		(108	)		1			153			(52	)		4,743		4,751
Non-ETF Index subtotal		2,388,487		(18,688	)		6,559			85,671			(29,638	)		2,432,391		2,415,979
Index & iShares ETFs subtotal		4,140,726		67,445			6,559			108,272			(37,423	)		4,285,579		4,221,002
Long-term	$	5,836,731	$	79,736		$	26,814		$	107,326		$	(51,452	)	$	5,999,155	$	5,919,295
Year-to-Date Component Changes by Product Type (Long-term)
			Net			Acquisitions
	December 31,		inflows			and			Market						September 30,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Equity	$	3,371,641	$	(13,125	)	$	2,590		$	144,390		$	(22,809	)	$	3,482,687	$	3,431,498
Fixed income		1,855,465		76,011			18,538			(43,565	)		(22,643	)		1,883,806		1,869,292
Multi-asset		480,278		9,617			683			7,121			(4,889	)		492,810		483,355
Alternatives:
Core		98,533		5,529			4,995			1,407			(999	)		109,465		102,928
Currency and commodities(5)		30,814		1,704			8			(2,027	)		(112	)		30,387		32,222
Alternatives subtotal		129,347		7,233			5,003			(620	)		(1,111	)		139,852		135,150
Long-term	$	5,836,731	$	79,736		$	26,814		$	107,326		$	(51,452	)	$	5,999,155	$	5,919,295

⁽¹⁾ Amounts include net AUM impact from the TCP Transaction, the Citibanamex Transaction, the Aegon Transaction and the DSP 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.

6

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type
			Net			Acquisitions
	September 30,		inflows			and			Market						September 30,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Retail:
Equity	$	225,668	$	930		$	2,137		$	10,465		$	(1,656	)	$	237,544	$	234,570
Fixed income		248,348		27,430			14,070			(6,032	)		(937	)		282,879		263,376
Multi-asset		118,062		4,734			2,519			(726	)		(285	)		124,304		121,297
Alternatives		16,443		2,176			7			(31	)		(61	)		18,534		17,364
Retail subtotal		608,521		35,270			18,733			3,676			(2,939	)		663,261		636,607
iShares ETFs:
Equity		1,228,395		97,196			-			92,086			(3,752	)		1,413,925		1,350,595
Fixed income		386,267		40,744			-			(13,023	)		(1,645	)		412,343		398,421
Multi-asset		3,491		324			-			3			(4	)		3,814		3,755
Alternatives		22,284		2,669			-			(1,815	)		(32	)		23,106		24,365
iShares ETFs subtotal		1,640,437		140,933			-			77,251			(5,433	)		1,853,188		1,777,136
Institutional:
Active:
Equity		130,366		(7,491	)		(4,296	)		11,829			(1,433	)		128,975		135,167
Fixed income		562,027		(5,073	)		2,417			(4,658	)		(3,122	)		551,591		559,446
Multi-asset		327,733		9,180			(1,593	)		24,431			(2,864	)		356,887		345,708
Alternatives		85,098		1,934			4,995			2,146			(705	)		93,468		87,097
Active subtotal		1,105,224		(1,450	)		1,523			33,748			(8,124	)		1,130,921		1,127,418
Index:
Equity		1,588,036		(67,979	)		4,749			188,093			(10,656	)		1,702,243		1,669,668
Fixed income		591,778		55,861			2,051			(1,141	)		(11,556	)		636,993		633,159
Multi-asset		7,741		301			(243	)		67			(61	)		7,805		8,040
Alternatives		7,146		(2,623	)		1			254			(34	)		4,744		4,952
Index subtotal		2,194,701		(14,440	)		6,558			187,273			(22,307	)		2,351,785		2,315,819
Institutional subtotal		3,299,925		(15,890	)		8,081			221,021			(30,431	)		3,482,706		3,443,237
Long-term		5,548,883		160,313			26,814			301,948			(38,803	)		5,999,155		5,856,980
Cash management		425,423		17,239			686			1,432			(1,595	)		443,185		450,862
Advisory (4)		2,586		(769	)		-			(18	)		(39	)		1,760		1,494
Total	$	5,976,892	$	176,783		$	27,500		$	303,362		$	(40,437	)	$	6,444,100	$	6,309,336
Year-over-Year Component Changes by Investment Style and Product Type (Long-term)
			Net			Acquisitions
	September 30,		inflows			and			Market						September 30,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Active:
Equity	$	300,176	$	(12,158	)	$	(2,160	)	$	17,436		$	(2,245	)	$	301,049	$	308,300
Fixed income		797,840		19,387			16,487			(10,687	)		(3,695	)		819,332		809,440
Multi-asset		445,795		13,914			926			23,705			(3,148	)		481,192		467,005
Alternatives		101,541		4,110			5,002			2,115			(765	)		112,003		104,461
Active subtotal		1,645,352		25,253			20,255			32,569			(9,853	)		1,713,576		1,689,206
Index and iShares ETFs:
iShares ETFs
Equity		1,228,395		97,196			-			92,086			(3,752	)		1,413,925		1,350,595
Fixed income		386,267		40,744			-			(13,023	)		(1,645	)		412,343		398,421
Multi-asset		3,491		324			-			3			(4	)		3,814		3,755
Alternatives		22,284		2,669			-			(1,815	)		(32	)		23,106		24,365
iShares ETFs subtotal		1,640,437		140,933			-			77,251			(5,433	)		1,853,188		1,777,136
Non-ETF Index
Equity		1,643,894		(62,382	)		4,750			192,951			(11,500	)		1,767,713		1,731,105
Fixed income		604,313		58,831			2,051			(1,144	)		(11,920	)		652,131		646,541
Multi-asset		7,741		301			(243	)		67			(62	)		7,804		8,040
Alternatives		7,146		(2,623	)		1			254			(35	)		4,743		4,952
Non-ETF Index subtotal		2,263,094		(5,873	)		6,559			192,128			(23,517	)		2,432,391		2,390,638
Index & iShares ETFs subtotal		3,903,531		135,060			6,559			269,379			(28,950	)		4,285,579		4,167,774
Long-term	$	5,548,883	$	160,313		$	26,814		$	301,948		$	(38,803	)	$	5,999,155	$	5,856,980
Year-over-Year Component Changes by Product Type (Long-term)
			Net			Acquisitions
	September 30,		inflows			and			Market						September 30,
	2017		(outflows)			dispositions(1)			change			FX impact (2)			2018		Average AUM (3)
Equity	$	3,172,465	$	22,656		$	2,590		$	302,473		$	(17,497	)	$	3,482,687	$	3,390,000
Fixed income		1,788,420		118,962			18,538			(24,854	)		(17,260	)		1,883,806		1,854,402
Multi-asset		457,027		14,539			683			23,775			(3,214	)		492,810		478,800
Alternatives:
Core		99,168		3,958			4,995			2,092			(748	)		109,465		101,921
Currency and commodities(5)		31,803		198			8			(1,538	)		(84	)		30,387		31,857
Alternatives subtotal		130,971		4,156			5,003			554			(832	)		139,852		133,778
Long-term	$	5,548,883	$	160,313		$	26,814		$	301,948		$	(38,803	)	$	5,999,155	$	5,856,980

⁽¹⁾ Amounts include net AUM impact from the TCP Transaction, the Citibanamex Transaction, the Aegon Transaction and the DSP 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.

7

SUMMARY OF REVENUE

								Three Months
	Three Months Ended							Ended						Nine Months Ended
	September 30,							June 30,						September 30,
(in millions), (unaudited)	2018		2017*		Change			2018			Change			2018		2017*		Change
Investment advisory, administration fees    and securities lending revenue:
Equity:
Active	$	405	$	418	$	(13	)	$	426		$	(21	)	$	1,269	$	1,229	$	40
iShares ETFs		885		835		50			911			(26	)		2,722		2,332		390
Non-ETF Index		169		168		1			187			(18	)		532		503		29
Equity subtotal		1,459		1,421		38			1,524			(65	)		4,523		4,064		459
Fixed income:
Active		460		437		23			458			2			1,374		1,268		106
iShares ETFs		205		210		(5	)		207			(2	)		620		595		25
Non-ETF Index		98		88		10			101			(3	)		292		257		35
Fixed income subtotal		763		735		28			766			(3	)		2,286		2,120		166
Multi-asset		298		289		9			295			3			889		843		46
Alternatives:
Core		185		169		16			176			9			539		469		70
Currency and commodities		24		23		1			26			(2	)		75		67		8
Alternatives subtotal		209		192		17			202			7			614		536		78
Long-term		2,729		2,637		92			2,787			(58	)		8,312		7,563		749
Cash management		154		144		10			157			(3	)		462		408		54
Total base fees		2,883		2,781		102			2,944			(61	)		8,774		7,971		803
Investment advisory performance fees:
Equity		7		30		(23	)		43			(36	)		68		57		11
Fixed income		-		9		(9	)		(1	)		1			2		20		(18	)
Multi-asset		1		2		(1	)		9			(8	)		15		14		1
Alternatives		143		150		(7	)		40			103			227		218		9
Total performance fees		151		191		(40	)		91			60			312		309		3
Technology services revenue		200		169		31			198			2			582		481		101
Distribution fees:
Retrocessions		168		175		(7	)		181			(13	)		541		490		51
12b-1 fees (U.S. mutual funds distribution fees)		102		113		(11	)		103			(1	)		313		356		(43	)
Other		9		10		(1	)		10			(1	)		30		31		(1	)
Total distribution fees		279		298		(19	)		294			(15	)		884		877		7
Advisory and other revenue:
Advisory		26		25		1			33			(7	)		80		74		6
Other		37		44		(7	)		45			(8	)		132		124		8
Total advisory and other revenue		63		69		(6	)		78			(15	)		212		198		14
Total revenue	$	3,576	$	3,508	$	68		$	3,605		$	(29	)	$	10,764	$	9,836	$	928

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Highlights

▪ Investment advisory, administration fees and securities lending revenue increased $102 million from the third quarter of 2017, reflecting the impact of higher markets and organic growth on average AUM. The increase lagged the growth in average AUM as a result of the impact of divergent beta and previously announced pricing changes to select investment products. Securities lending revenue of $160 million in the current quarter compared with $150 million in the third quarter of 2017.

Investment advisory, administration fees and securities lending revenue decreased $61 million from the second quarter of 2018, despite growth in average AUM and one additional day in the current quarter, reflecting the impact of divergent beta, previously announced pricing changes to select investment products and seasonally lower securities lending revenue. Securities lending revenue of $160 million in the current quarter compared with $183 million in the second quarter of 2018.

▪ Performance fees decreased $40 million from the third quarter of 2017, primarily reflecting lower fees from liquid alternative and long-only products, and increased $60 million from the second quarter of 2018, primarily reflecting strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.

▪ Technology services revenue increased $31 million from the third quarter of 2017 and $2 million from the second quarter of 2018, primarily reflecting higher revenue from institutional Aladdin^®.

8

SUMMARY OF OPERATING EXPENSE

	Three							Three						Nine
	Months Ended							Months Ended						Months Ended
	September 30,							June 30,						September 30,
(in millions), (unaudited)	2018		2017*		Change			2018			Change			2018		2017*			Change
Operating expense
Employee compensation and benefits	$	1,097	$	1,087	$	10		$	1,082		$	15		$	3,300	$	3,106		$	194
Distribution and servicing costs:
Retrocessions		168		175		(7	)		181			(13	)		541		490			51
12b-1 costs		100		111		(11	)		101			(1	)		307		349			(42	)
Other		140		133		7			133			7			407		391			16
Total distribution and servicing costs		408		419		(11	)		415			(7	)		1,255		1,230			25
Direct fund expense		249		231		18			264			(15	)		774		658			116
General and administration:
Marketing and promotional		77		76		1			91			(14	)		253		231			22
Occupancy and office related		73		68		5			73			-			220		202			18
Portfolio services		60		60		-			73			(13	)		203		175			28
Technology		61		51		10			58			3			172		145			27
Professional services		42		37		5			37			5			111		92			19
Communications		9		8		1			9			-			28		24			4
Foreign exchange remeasurement		7		3		4			4			3			12		(3	)		15
Contingent consideration fair value adjustments		29		7		22			(1	)		30			34		(1	)		35
Product launch costs		1		-		1			-			1			12		4			8
Other general and administration		54		45		9			49			5			144		127			17
Total general and administration expense		413		355		58			393			20			1,189		996			193
Amortization of intangible assets		13		27		(14	)		11			2			35		77			(42	)
Total operating expense	$	2,180	$	2,119	$	61		$	2,165		$	15		$	6,553	$	6,067		$	486

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Highlights

▪ General and administration expense increased $58 million from the third quarter of 2017 and $20 million from the second quarter of 2018, respectively, primarily due to $42 million of transaction-related expense recorded in the current quarter, consisting of contingent consideration fair value adjustments, other general and administration expense, and professional services.

INCOME TAX EXPENSE (BENEFIT)

	Three									Three							Nine
	Months Ended									Months Ended							Months Ended
	September 30,									June 30,							September 30,
(in millions), (unaudited)	2018			2017*			Change			2018				Change			2018			2017*			Change
Income tax expense (benefit)	$	226		$	443		$	(217	)		$	338		$	(112	)	$	829		$	1,085		$	(256	)
Effective tax rate		15.7	%		31.9	%		(1,620	) bps			24.0	%		(830	) bps		19.7	%		29.0	%		(930	) bps

* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Highlights

▪ Third quarter 2018 income tax expense benefited from $90 million of discrete items.

▪ Both third and second quarter 2018 income tax expense reflected a reduced tax rate associated with the Tax Cuts and Jobs Act enacted in the United States.

▪ Third quarter 2018 and 2017 income tax expense included a $5 million net noncash tax benefit and a $19 million net noncash tax expense, respectively, related to the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes.

9

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

	Three Months									Three Months						Nine Months
	Ended									Ended						Ended
	September 30,									June 30,						September 30,
(in millions), (unaudited)	2018			2017			Change			2018			Change			2018			2017			Change
Nonoperating income (expense), GAAP basis	$	33		$	10		$	23		$	(24	)	$	57		$	(7	)	$	4		$	(11	)
Less: Net income (loss) attributable to      noncontrolling interests ("NCI")		(13	)		12			(25	)		5			(18	)		(3	)		31			(34	)
Nonoperating income (expense), as adjusted(1)(2)	$	46		$	(2	)	$	48		$	(29	)	$	75		$	(4	)	$	(27	)	$	23
	Three Months									Three Months						Nine Months
	Ended									Ended						Ended
	September 30,									June 30,						September 30,
(in millions), (unaudited)	2018			2017			Change			2018			Change			2018			2017			Change
Net gain (loss) on investments(1)(2)
Private equity	$	4		$	7		$	(3	)	$	5		$	(1	)	$	10		$	21		$	(11	)
Real assets		10			1			9			9			1			24			2			22
Other alternatives(3)		1			11			(10	)		1			-			5			34			(29	)
Other investments(4)		(3	)		10			(13	)		(18	)		15			(20	)		35			(55	)
Subtotal		12			29			(17	)		(3	)		15			19			92			(73	)
Other gains(5)		51			-			51			1			50			52			5			47
Total net gain (loss) on investments(1)(2)		63			29			34			(2	)		65			71			97			(26	)
Interest and dividend income		29			15			14			19			10			63			35			28
Interest expense		(46	)		(46	)		-			(46	)		-			(138	)		(159	)		21
Net interest expense		(17	)		(31	)		14			(27	)		10			(75	)		(124	)		49
Nonoperating income (expense), as adjusted(1)(2)	$	46		$	(2	)	$	48		$	(29	)	$	75		$	(4	)	$	(27	)	$	23

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

⁽²⁾ Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to results. For more information on other as adjusted items and the reconciliation to GAAP see notes (1) through (3) to the condensed consolidated statements of income and supplemental information on pages 11 and 12.

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

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

⁽⁵⁾ Amount for the third quarter of 2018 primarily includes a $40 million pre-tax gain related to the DSP Transaction and a $10 million noncash pre-tax gain related to the revaluation of another strategic investment.

10

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)	2018			2017*			2018			2018			2017*
Operating income, GAAP basis	$	1,396		$	1,389		$	1,440		$	4,211		$	3,769
Non-GAAP expense adjustment:
PNC LTIP funding obligation		4			4			3			10			12
Operating income, as adjusted (1)		1,400			1,393			1,443			4,221			3,781
Product launch costs and commissions		1			-			-			13			-
Operating income used for operating margin measurement	$	1,401		$	1,393		$	1,443		$	4,234		$	3,781
Revenue, GAAP basis	$	3,576		$	3,508		$	3,605		$	10,764		$	9,836
Non-GAAP adjustment:
Distribution and servicing costs		(408	)		(419	)		(415	)		(1,255	)		(1,230	)
Revenue used for operating margin measurement	$	3,168		$	3,089		$	3,190		$	9,509		$	8,606
Operating margin, GAAP basis		39.0	%		39.6	%		39.9	%		39.1	%		38.3	%
Operating margin, as adjusted (1)		44.2	%		45.1	%		45.2	%		44.5	%		43.9	%
See note (1) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items and the reconciliation to GAAP.
* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished     on March 22, 2018.
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)	2018			2017*			2018			2018			2017*
Net income attributable to BlackRock, Inc., GAAP basis	$	1,216		$	944		$	1,073		$	3,378		$	2,657
Non-GAAP adjustments:
PNC LTIP funding obligation, net of tax		3			3			3			9			9
Income tax matters		(5	)		19			4			(1	)		19
Net income attributable to BlackRock, Inc., as adjusted (2)	$	1,214		$	966		$	1,080		$	3,386		$	2,685
Diluted weighted-average common shares outstanding (3)		161.4			163.8			162.2			162.1			164.3
Diluted earnings per common share, GAAP basis (3)	$	7.54		$	5.76		$	6.62		$	20.83		$	16.17
Diluted earnings per common share, as adjusted (2) (3)	$	7.52		$	5.90		$	6.66		$	20.88		$	16.34
See notes (2) and (3) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items and the reconciliation to GAAP.
* Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished    on March 22, 2018.

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.

11

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

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

▪ Operating income, as adjusted, includes non-GAAP expense adjustments. The portion of compensation expense associated with certain long-term incentive plans (“LTIP”) funded, or to be funded, through share distributions to participants of BlackRock stock held by The PNC Financial Services Group, Inc. (“PNC”) has been excluded because it ultimately does not impact BlackRock’s book value.

▪ Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of product launch costs (e.g. closed-end fund launch costs) and related commissions. Management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenue associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods.

Revenue used for operating margin, as adjusted, excludes distribution and servicing costs paid to 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. BlackRock excludes from revenue used for operating margin, as adjusted, the costs related to distribution and servicing costs 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.

For each period presented, the non-GAAP adjustment related to the 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.

12

FORWARD-LOOKING STATEMENTS

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

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

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 exchange-traded funds 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, 2018 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, 2018. The performance data does not include accounts terminated prior to September 30, 2018 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, 2018 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

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

13

EX-99.2

Q3 2018 Earnings Earnings Release Supplement October 16, 2018 7/13/2017 10:27 AM BlackRock Exhibit 99.2

A broadly diversified business across clients, products and geographies Assets Under Management of $6.44 trillion at September 30, 2018 Q3 2018 Total Base Fees of $2.883 billion Note: Base Fees and AUM by region data is based on client domicile. 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 1 Client Type Style Product Type Region Active Index Cash

Total long-term Retail iShares ETFs Institutional LTM organic asset growth rate (%) LTM organic base fee growth rate (%) 15% 13% 16% 21% 19% 19% 15% 10% 0% 2% 2% 3% 3% 2% 2% 1% Note: LTM organic growth rates measure rolling last twelve months data over beginning of period measure. 9% 0% 3% 4% 5% 7% 7% 7% 6% 4% 3% 3% 1% 2% 5% 5% 7% 7% 4% 3% 2 Long-term net flows ($ in billions) Institutional Active Institutional Index 0% (2)% (1)% 1% 3% 6% 7% 7% 6%

Profitability ($ in millions, except per share data) 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 Operating Income and Margin, as adjusted Net Income and EPS, as adjusted 3 Results for 2017 and 2016 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Dividends per share Capital management (amounts in millions, except per share data) Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions. Share repurchases and weighted average diluted shares Share repurchases Weighted average diluted shares Dividends 4

Major market indices and exchange rates 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. 5 Spot % Change Average % Change Average 9/30/2018 vs. Q3 2018 vs. 43008 43281 43373 43281 43008 Q3 2017 Q2 2018 Q3 2018 Q2 2018 Q3 2017 Equity Indices Domestic S&P 500 2,519 2,718 2,914 7.2111846946284031E-2 0.15680825724493846 2467 2,703 2,848 5.3644099149093599E-2 0.15443858937981353 Global MSCI Barra World Index 2,001 2,089 2,184 4.547630445189086E-2 9.145427286356822E-2 1958 2,104 2,151 2.2338403041825095E-2 9.8569969356486209E-2 MSCI Europe Index 131 128 129 7.8125E-3 -1.5267175572519083E-2 128 130 129 -7.6923076923076927E-3 7.8125E-3 MSCI AC Asia Pacific Index 161 166 165 -6.024096385542169E-3 2.4844720496894408E-2 160 173 164 -5.2023121387283239E-2 2.5000000000000001E-2 MSCI Emerging Markets Index 1,082 1,070 1,048 -2.0560747663551402E-2 -3.1423290203327174E-2 1068 1,138 1,054 -7.3813708260105443E-2 -1.3108614232209739E-2 S&P Global Natural Resources 3,512 3,939 3,985 1.1678090886011678E-2 0.13468109339407744 3373 3,959 3,879 -2.020712301086133E-2 0.15001482359916987 BLK Equity Index (1) 0.02 0.05 -0.01 0.06 Fixed Income Index Barclays U.S. Aggregate Bond Index 2,038 2,013 2,013 - % -1.2266928361138371E-2 2036 2,004 2,018 6.9860279441117763E-3 -8.840864440078585E-3 Foreign Exchange Rates GBP to USD 1.34 1.32 1.3 -1.5151515151515164E-2 -2.985074626865674E-2 1.31 1.36 1.3 -4.4117647058823567E-2 -7.6335877862595486E-3 EUR to USD 1.18 1.17 1.1599999999999999 -8.5470085470085548E-3 -1.6949152542372899E-2 1.18 1.19 1.1599999999999999 -2.521008403361347E-2 -1.6949152542372899E-2

Quarterly revenue ($ in millions) $68 $(29) Percentage Change Year-over-Year Sequential Base fees ex. SL 3% (1)% Securities lending 7% (13)% Performance fees (21)% 66% Technology services revenue 18% 1% Distribution fees (6)% (5)% Advisory and other revenue (9)% (19)% Total 2% (1)% Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018. Q3 2018 compared to Q3 2017 Q3 2018 compared to Q2 2018 6

Quarterly investment advisory, administration fees and securities lending revenue ($ in millions) Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018. $102 $(61) Q3 2018 compared to Q3 2017 Q3 2018 compared to Q2 2018 7

Quarterly expense, as adjusted ($ in millions) Quarterly expense, as adjusted, includes non-GAAP adjustments related to PNC LTIP funding obligation of $4 million in the third quarter of 2018, $4 million in the third quarter of 2017 and $3 million in the second quarter of 2018. For further information, see notes (1) through (3) in the current earnings release. $61 $14 Q3 2018 compared to Q3 2017 Q3 2018 compared to Q2 2018 Percentage change Year-over-Year Sequential Employee comp. & benefits 1% 1% Distribution & servicing costs (3)% (2)% Direct fund expense 8% (6)% General & administration 16% 5% Amortization of intangible assets (52)% 18% Total 3% 1% 8 Results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018..

Reconciliation between GAAP and as adjusted ($ in millions) Non-GAAP adjustments include amounts related to PNC LTIP funding obligations and noncash income tax matters, as applicable. The fourth quarter of 2017 also includes a non-GAAP adjustment of $1.3 billion related to the Tax Cuts and Jobs Act. 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. Results for 2017 and 2016 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018. 9

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 exchange-traded funds 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 16, 2018, and BlackRock’s other periodic reports, which are available on BlackRock’s website at www.blackrock.com. 10