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, 2022

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.)

55 East 52nd Street, New York, NY 10055

(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, 2022, there were 150,768,739 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	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	67
Item 4.	Controls and Procedures	68

PART II

OTHER INFORMATION

Item 1.	Legal Proceedings	69
Item 1A.	Risk Factors	70
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
Item 6.	Exhibits	72

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)	2022			2021
Assets
Cash and cash equivalents(1)	$	6,481		$	9,323
Accounts receivable		3,471			3,789
Investments(1)		7,302			7,262
Separate account assets		61,269			86,226
Separate account collateral held under securities lending agreements		7,279			7,081
Property and equipment (net of accumulated depreciation and amortization of $1,344 and    $1,256 at June 30, 2022 and December 31, 2021, respectively)		900			762
Intangible assets (net of accumulated amortization of $447 and $399 at    June 30, 2022 and December 31, 2021, respectively)		18,377			18,453
Goodwill		15,346			15,351
Operating lease right-of-use assets		1,543			1,621
Other assets(1)		3,998			2,780
Total assets	$	125,966		$	152,648
Liabilities
Accrued compensation and benefits	$	1,408		$	2,951
Accounts payable and accrued liabilities		1,324			1,397
Borrowings		6,635			7,446
Separate account liabilities		61,269			86,226
Separate account collateral liabilities under securities lending agreements		7,279			7,081
Deferred income tax liabilities		2,801			2,758
Operating lease liabilities		1,815			1,872
Other liabilities(1)		5,130			4,024
Total liabilities		87,661			113,755
Commitments and contingencies (Note 15)
Temporary equity
Redeemable noncontrolling interests		1,103			1,087
Permanent Equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;		2			2
Shares authorized: 500,000,000 at June 30, 2022 and December 31, 2021;    Shares issued: 172,075,373 at June 30, 2022 and December 31, 2021;    Shares outstanding: 150,966,457 and 151,684,491 at June 30, 2022 and      December 31, 2021, respectively
Additional paid-in capital		19,469			19,640
Retained earnings		28,678			27,688
Accumulated other comprehensive loss		(1,091	)		(550	)
Treasury stock, common, at cost (21,108,916 and 20,390,882 shares held at June 30, 2022    and December 31, 2021, respectively)		(9,969	)		(9,087	)
Total BlackRock, Inc. stockholders’ equity		37,089			37,693
Nonredeemable noncontrolling interests		113			113
Total permanent equity		37,202			37,806
Total liabilities, temporary equity and permanent equity	$	125,966		$	152,648

⁽¹⁾ At June 30, 2022, cash and cash equivalents, investments, other assets and other liabilities include $274 million, $3,880 million, $62 million, and $2,059 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2021, cash and cash equivalents, investments, other assets and other liabilities include $251 million, $3,968 million, $50 million, and $1,919 million, 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 shares and per share data)	2022			2021			2022			2021
Revenue
Investment advisory, administration fees   and securities lending revenue:
Related parties	$	2,769		$	2,829		$	5,652		$	5,514
Other third parties		919			928			1,869			1,835
Total investment advisory, administration fees    and securities lending revenue		3,688			3,757			7,521			7,349
Investment advisory performance fees		106			340			204			469
Technology services revenue		332			316			673			622
Distribution fees		361			369			742			709
Advisory and other revenue		39			38			85			69
Total revenue		4,526			4,820			9,225			9,218
Expense
Employee compensation and benefits		1,414			1,548			2,912			2,957
Distribution and servicing costs		572			523			1,146			1,028
Direct fund expense		304			320			633			640
General and administration expense		530			461			1,026			1,046
Amortization of intangible assets		38			37			76			71
Total expense		2,858			2,889			5,793			5,742
Operating income		1,668			1,931			3,432			3,476
Nonoperating income (expense)
Net gain (loss) on investments		(314	)		314			(416	)		396
Interest and dividend income		21			8			39			27
Interest expense		(54	)		(52	)		(108	)		(107	)
Total nonoperating income (expense)		(347	)		270			(485	)		316
Income before income taxes		1,321			2,201			2,947			3,792
Income tax expense		358			654			621			972
Net income		963			1,547			2,326			2,820
Less:
Net income (loss) attributable to    noncontrolling interests		(114	)		169			(187	)		243
Net income attributable to BlackRock, Inc.	$	1,077		$	1,378		$	2,513		$	2,577
Earnings per share attributable to BlackRock, Inc.    common stockholders:
Basic	$	7.12		$	9.04		$	16.59		$	16.90
Diluted	$	7.06		$	8.92		$	16.43		$	16.69
Weighted-average common shares outstanding:
Basic		151,292,580			152,443,039			151,511,496			152,504,902
Diluted		152,452,320			154,417,581			152,990,147			154,359,353

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)	2022			2021		2022			2021
Net income	$	963		$	1,547	$	2,326		$	2,820
Other comprehensive income (loss):
Foreign currency translation adjustments(1)		(416	)		23		(541	)		(51	)
Comprehensive income (loss)		547			1,570		1,785			2,769
Less: Comprehensive income (loss) attributable to      noncontrolling interests		(114	)		169		(187	)		243
Comprehensive income attributable to BlackRock, Inc.	$	661		$	1,401	$	1,972		$	2,526

⁽¹⁾ Amounts for the three months ended June 30, 2022 and 2021 include a gain from a net investment hedge of $36 million (net of tax expense of $11 million) and a loss of $6 million (net of tax benefit of $2 million), respectively. Amounts for the six months ended June 30, 2022 and 2021 include a gain from a net investment hedge of $49 million (net of tax expense of $15 million) and $20 million (net of tax expense of $6 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, 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		—				2,513				—				—				2,513			(2	)		2,511			(185	)
Dividends declared ($9.76 per share)		—				(1,523	)			—				—				(1,523	)		—			(1,523	)		—
Stock-based compensation		376				—				—				—				376			—			376			—
Issuance of common shares related to    employee stock transactions		(547	)			—				—