10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from to .

Commission file number 001-33099

BlackRock, Inc.

(Exact name of registrant as specified in its charter)

Delaware

32-0174431

(State or Other Jurisdiction of
Incorporation or Organization)

(I.R.S. Employer Identification No.)

50 Hudson Yards, New York, NY 10001

(Address of Principal Executive Offices) (Zip Code)

(212) 810-5300

(Registrant’s Telephone Number, Including Area Code)

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

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	BLK	New York Stock Exchange
1.250% Notes due 2025	BLK25	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes		X		No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes		X		No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Yes				No		X

As of April 30, 2023, there were 149,762,655 shares of the registrant’s common stock outstanding.

BlackRock, Inc.

Index to Form 10-Q

PART I

FINANCIAL INFORMATION


		Page

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Statements of Financial Condition	1

	Condensed Consolidated Statements of Income	2

	Condensed Consolidated Statements of Comprehensive Income	3

	Condensed Consolidated Statements of Changes in Equity	4

	Condensed Consolidated Statements of Cash Flows	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59

Item 4.	Controls and Procedures	60

PART II

OTHER INFORMATION


Item 1.	Legal Proceedings	61

Item 1A.	Risk Factors	62

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63

Item 6.	Exhibits	64

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

BlackRock, Inc.

Condensed Consolidated Statements of Financial Condition

(unaudited)


	March 31,			December 31,
(in millions, except shares and per share data)	2023			2022
Assets
Cash and cash equivalents(1)	$	5,644		$	7,416
Accounts receivable		3,580			3,264
Investments(1)		8,172			7,466
Separate account assets		57,251			54,066
Separate account collateral held under securities lending agreements		6,465			5,765
Property and equipment (net of accumulated depreciation and amortization of $1,374 and $1,390 at March 31, 2023 and December 31, 2022, respectively)		1,046			1,031
Intangible assets (net of accumulated amortization of $520 and $483 at March 31, 2023 and December 31, 2022, respectively)		18,265			18,302
Goodwill		15,339			15,341
Operating lease right-of-use assets		1,494			1,516
Other assets(1)		4,142			3,461
Total assets	$	121,398		$	117,628
Liabilities
Accrued compensation and benefits	$	1,014		$	2,272
Accounts payable and accrued liabilities		1,183			1,294
Borrowings		6,669			6,654
Separate account liabilities		57,251			54,066
Separate account collateral liabilities under securities lending agreements		6,465			5,765
Deferred income tax liabilities		3,443			3,381
Operating lease liabilities		1,823			1,835
Other liabilities(1)		4,485			3,576
Total liabilities		82,333			78,843
Commitments and contingencies (Note 14)
Temporary equity
Redeemable noncontrolling interests		1,235			909
Permanent equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;		2			2
Shares authorized: 500,000,000 at March 31, 2023 and December 31, 2022; Shares issued: 172,075,373 at March 31, 2023 and December 31, 2022; Shares outstanding: 149,904,546 and 149,756,492 at March 31, 2023 and December 31, 2022, respectively
Additional paid-in capital		19,427			19,772
Retained earnings		30,237			29,876
Accumulated other comprehensive loss		(975	)		(1,101	)
Treasury stock, common, at cost (22,170,827 and 22,318,881 shares held at March 31, 2023 and December 31, 2022, respectively)		(10,979	)		(10,805	)
Total BlackRock, Inc. stockholders’ equity		37,712			37,744
Nonredeemable noncontrolling interests		118			132
Total permanent equity		37,830			37,876
Total liabilities, temporary equity and permanent equity	$	121,398		$	117,628

(1)

At March 31, 2023, cash and cash equivalents, investments, other assets and other liabilities include $187 million, $4.2 billion, $73 million, and $1.8 billion, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2022, cash and cash equivalents, investments, other assets and other liabilities include $234 million, $3.9 billion, $68 million, and $1.9 billion, respectively, related to consolidated VIEs.

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Condensed Consolidated Statements of Income

(unaudited)


	Three Months Ended
	March 31,
(in millions, except per share data)	2023			2022
Revenue
Investment advisory, administration fees and securities lending revenue:
Related parties	$	2,611		$	2,883
Other third parties		891			950
Total investment advisory, administration fees and securities lending revenue		3,502			3,833
Investment advisory performance fees		55			98
Technology services revenue		340			341
Distribution fees		319			381
Advisory and other revenue		27			46
Total revenue		4,243			4,699
Expense
Employee compensation and benefits		1,427			1,498
Distribution and servicing costs		505			574
Direct fund expense		315			329
General and administration expense		521			496
Amortization of intangible assets		37			38
Total expense		2,805			2,935
Operating income		1,438			1,764
Nonoperating income (expense)
Net gain (loss) on investments		89			(102	)
Interest and dividend income		86			18
Interest expense		(59	)		(54	)
Total nonoperating income (expense)		116			(138	)
Income before income taxes		1,554			1,626
Income tax expense		385			263
Net income		1,169			1,363
Less:
Net income (loss) attributable to noncontrolling interests		12			(73	)
Net income attributable to BlackRock, Inc.	$	1,157		$	1,436
Earnings per share attributable to BlackRock, Inc. common stockholders:
Basic	$	7.72		$	9.46
Diluted	$	7.64		$	9.35
Weighted-average common shares outstanding:
Basic		149.9			151.7
Diluted		151.3			153.5

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)


	Three Months Ended
	March 31,
(in millions)	2023		2022
Net income	$	1,169	$	1,363
Other comprehensive income (loss):
Foreign currency translation adjustments(1)		126		(125	)
Comprehensive income (loss)		1,295		1,238
Less: Comprehensive income (loss) attributable to noncontrolling interests		12		(73	)
Comprehensive income attributable to BlackRock, Inc.	$	1,283	$	1,311

(1)

Amount for the three months ended March 31, 2023 includes a loss from a net investment hedge of $10 million (net of tax benefit of $3 million). Amount for the three months ended March 31, 2022 includes a gain from a net investment hedge of $13 million (net of tax expense of $4 million).

See accompanying notes to condensed consolidated financial statements.

BlackRock, Inc.

Condensed Consolidated Statements of Changes in Equity

(unaudited)

For the Three Months Ended March 31, 2023


(in millions)	Additional Paid-in Capital(1)			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity
December 31, 2022	$	19,774		$	29,876		$	(1,101	)	$	(10,805	)	$	37,744		$	132		$	37,876		$	909
Net income		—			1,157			—			—			1,157			(5	)		1,152			17
Dividends declared ($5.00 per share)		—			(796	)		—			—			(796	)		—			(796	)		—
Stock-based compensation		165			—			—			—			165			—			165			—
Issuance of common shares related to employee stock transactions		(510	)		—			—			547			37			—			37			—
Employee tax withholdings related to employee stock transactions		—			—			—			(346	)		(346	)		—			(346	)		—
Shares repurchased		—			—			—			(375	)		(375	)		—			(375	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			(9	)		(9	)		314
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(5	)
Other comprehensive income (loss)		—			—			126			—			126			—			126			—
March 31, 2023	$	19,429		$	30,237		$	(975	)	$	(10,979	)	$	37,712		$	118		$	37,830		$	1,235

(1)

Amounts include $2 million of common stock at both March 31, 2023 and December 31, 2022.

For the Three Months Ended March 31, 2022


(in millions)	Additional Paid-in Capital(1)			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests		Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity
December 31, 2021	$	19,642		$	27,688		$	(550	)	$	(9,087	)	$	37,693		$	113	$	37,806		$	1,087
Net income		—			1,436			—			—			1,436			—		1,436			(73	)
Dividends declared ($4.88 per share)		—			(786	)		—			—			(786	)		—		(786	)		—
Stock-based compensation		201			—			—			—			201			—		201			—
Issuance of common shares related to employee stock transactions		(539	)		—			—			545			6