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 June 30, 2023

OR

☐ 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 July 31, 2023, there were 149,302,633 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	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	69
Item 4.	Controls and Procedures	70

PART II

OTHER INFORMATION

Item 1.	Legal Proceedings	71
Item 1A.	Risk Factors	72
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73
Item 6.	Exhibits	74

Signatures 75

i

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

BlackRock, Inc.

Condensed Consolidated Statements of Financial Condition

(unaudited)

	June 30,			December 31,
(in millions, except shares and per share data)	2023			2022
Assets
Cash and cash equivalents(1)	$	6,834		$	7,416
Accounts receivable		3,806			3,264
Investments(1)		9,124			7,466
Separate account assets		55,119			54,066
Separate account collateral held under securities lending agreements		5,811			5,765
Property and equipment (net of accumulated depreciation and amortization of $1,434 and    $1,390 at June 30, 2023 and December 31, 2022, respectively)		1,045			1,031
Intangible assets (net of accumulated amortization of $541 and $483 at    June 30, 2023 and December 31, 2022, respectively)		18,228			18,302
Goodwill		15,338			15,341
Operating lease right-of-use assets		1,464			1,516
Other assets(1)		5,875			3,461
Total assets	$	122,644		$	117,628
Liabilities
Accrued compensation and benefits	$	1,374		$	2,272
Accounts payable and accrued liabilities		1,156			1,294
Borrowings		7,904			6,654
Separate account liabilities		55,119			54,066
Separate account collateral liabilities under securities lending agreements		5,811			5,765
Deferred income tax liabilities		3,439			3,381
Operating lease liabilities		1,814			1,835
Other liabilities(1)		6,131			3,576
Total liabilities		82,748			78,843
Commitments and contingencies (Note 14)
Temporary equity
Redeemable noncontrolling interests		1,546			909
Permanent equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;		2			2
Shares authorized: 500,000,000 at June 30, 2023 and December 31, 2022;    Shares issued: 172,075,373 at June 30, 2023 and December 31, 2022;    Shares outstanding: 149,373,266 and 149,756,492 at June 30, 2023 and       December 31, 2022, respectively
Additional paid-in capital		19,571			19,772
Retained earnings		30,855			29,876
Accumulated other comprehensive loss		(880	)		(1,101	)
Treasury stock, common, at cost (22,702,107 and 22,318,881 shares held at June 30, 2023    and December 31, 2022, respectively)		(11,340	)		(10,805	)
Total BlackRock, Inc. stockholders’ equity		38,208			37,744
Nonredeemable noncontrolling interests		142			132
Total permanent equity		38,350			37,876
Total liabilities, temporary equity and permanent equity	$	122,644		$	117,628

(1)At June 30, 2023, cash and cash equivalents, investments, other assets and other liabilities include $208 million, $4.7 billion, $68 million, and $2.0 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.

1

BlackRock, Inc.

Condensed Consolidated Statements of Income

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions, except per share data)	2023			2022			2023			2022
Revenue
Investment advisory, administration fees   and securities lending revenue:
Related parties	$	2,689		$	2,769		$	5,300		$	5,652
Other third parties		922			919			1,813			1,869
Total investment advisory, administration fees    and securities lending revenue		3,611			3,688			7,113			7,521
Investment advisory performance fees		118			106			173			204
Technology services revenue		359			332			699			673
Distribution fees		319			361			638			742
Advisory and other revenue		56			39			83			85
Total revenue		4,463			4,526			8,706			9,225
Expense
Employee compensation and benefits		1,429			1,414			2,856			2,912
Distribution and servicing costs		518			572			1,023			1,146
Direct fund expense		344			304			659			633
General and administration expense		520			530			1,041			1,026
Amortization of intangible assets		37			38			74			76
Total expense		2,848			2,858			5,653			5,793
Operating income		1,615			1,668			3,053			3,432
Nonoperating income (expense)
Net gain (loss) on investments		231			(314	)		320			(416	)
Interest and dividend income		89			21			175			39
Interest expense		(69	)		(54	)		(128	)		(108	)
Total nonoperating income (expense)		251			(347	)		367			(485	)
Income before income taxes		1,866			1,321			3,420			2,947
Income tax expense		443			358			828			621
Net income		1,423			963			2,592			2,326
Less:
Net income (loss) attributable to    noncontrolling interests		57			(114	)		69			(187	)
Net income attributable to BlackRock, Inc.	$	1,366		$	1,077		$	2,523		$	2,513
Earnings per share attributable to BlackRock, Inc.    common stockholders:
Basic	$	9.13		$	7.12		$	16.85		$	16.59
Diluted	$	9.06		$	7.06		$	16.70		$	16.43
Weighted-average common shares    outstanding:
Basic		149.6			151.3			149.8			151.5
Diluted		150.7			152.5			151.0			153.0

See accompanying notes to condensed consolidated financial statements.

2

BlackRock, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(in millions)	2023		2022			2023		2022
Net income	$	1,423	$	963		$	2,592	$	2,326
Other comprehensive income (loss):
Foreign currency translation adjustments(1)	95			(416	)		221		(541	)
Comprehensive income (loss)		1,518		547			2,813		1,785
Less: Comprehensive income (loss) attributable to      noncontrolling interests		57		(114	)		69		(187	)
Comprehensive income attributable to      BlackRock, Inc.	$	1,461	$	661		$	2,744	$	1,972

(1)Amounts for the three months ended June 30, 2023 and 2022 includes a loss from a net investment hedge of $2 million (net of tax benefit of $1 million) and a gain from a net investment hedge of $36 million (net of tax expense of $11 million), respectively. Amounts for the six months ended June 30, 2023 and 2022 includes a loss from a net investment hedge of $13 million (net of tax benefit of $4 million) and a gain from net investment hedge of $49 million (net of tax expense of $15 million), respectively.

See accompanying notes to condensed consolidated financial statements.

3

BlackRock, Inc.

Condensed Consolidated Statements of Changes in Equity

(unaudited)

For the Six Months Ended June 30, 2023

(in millions) Additional
Paid-in
Capital(1) Retained
Earnings Accumulated
Other
Comprehensive
Income (Loss) Treasury
Stock
Common