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

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.

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).

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.

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).

As of October 31, ~~2019,~~2020, there were ~~154,370,706~~152,510,707 shares of the registrant’s common stock outstanding.

	September 30,			December 31,			September 30,			December 31,
(in millions, except shares and per share data)	2019			2018			2020			2019
Assets
Cash and cash equivalents(1)	$	4,476		$	6,302		$	6,507		$	4,829
Accounts receivable		3,026			2,657			3,706			3,179
Investments(1)		2,117			1,796			6,307			5,489
Assets of consolidated variable interest entities:
Cash and cash equivalents		131			186
Investments		2,898			2,680
Other assets		54			876
Separate account assets		95,501			90,285			95,994			102,844
Separate account collateral held under securities lending agreements		18,699			20,655			15,137			15,466
Property and equipment (net of accumulated depreciation of $876 and $750 at September 30, 2019 and December 31, 2018, respectively)		669			643
Intangible assets (net of accumulated amortization of $313 and $244 at September 30, 2019 and December 31, 2018, respectively)		18,407			17,839
Property and equipment (net of accumulated depreciation of $1,040 and $880 at September 30, 2020 and December 31, 2019, respectively)								693			715
Intangible assets (net of accumulated amortization of $264 and $185 at September 30, 2020 and December 31, 2019, respectively)								18,290			18,369
Goodwill		14,552			13,526			14,554			14,562
Other assets		3,342			2,128
Other assets⁽¹⁾								3,930			3,169
Total assets	$	163,872		$	159,573		$	165,118		$	168,622
Liabilities
Accrued compensation and benefits	$	1,500		$	1,988		$	1,847		$	2,057
Accounts payable and accrued liabilities		1,252			1,292			988			1,167
Liabilities of consolidated variable interest entities:
Borrowings		186			84
Other liabilities		530			1,290
Borrowings		5,932			4,979			7,227			4,955
Separate account liabilities		95,501			90,285			95,994			102,844
Separate account collateral liabilities under securities lending agreements		18,699			20,655			15,137			15,466
Deferred income tax liabilities		3,792			3,571			3,742			3,734
Other liabilities		2,876			1,889
Other liabilities⁽¹⁾								4,167			3,470
Total liabilities		130,268			126,033			129,102			133,693
Commitments and contingencies (Note 14)
Commitments and contingencies (Note 15)
Temporary equity
Redeemable noncontrolling interests		1,137			1,107			2,084			1,316
Permanent Equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;		2			2			2			2
Shares authorized: 500,000,000 at September 30, 2019 and December 31, 2018; Shares issued: 171,252,185 at September 30, 2019 and December 31, 2018; Shares outstanding: 154,349,915 and 157,553,501 at September 30, 2019 and December 31, 2018, respectively
Preferred stock (Note 19)		—			—
Shares authorized: 500,000,000 at September 30, 2020 and December 31, 2019; Shares issued: 172,075,373 and 171,252,185 at September 30, 2020 and December 31, 2019, respectively; Shares outstanding: 152,496,403 and 154,375,780 at September 30, 2020 and December 31, 2019, respectively
Preferred stock (Note 20)								0			0
Additional paid-in capital		19,058			19,168			19,150			19,186
Retained earnings		20,873			19,282			23,340			21,662
Accumulated other comprehensive loss		(784	)		(691	)		(601	)		(571	)
Treasury stock, common, at cost (16,902,270 and 13,698,684 shares held at September 30, 2019 and December 31, 2018, respectively)		(6,742	)		(5,387	)
Treasury stock, common, at cost (19,578,970 and 16,876,405 shares held at September 30, 2020 and December 31, 2019, respectively)								(8,018	)		(6,732	)
Total BlackRock, Inc. stockholders’ equity		32,407			32,374			33,873			33,547
Nonredeemable noncontrolling interests		60			59			59			66
Total permanent equity		32,467			32,433			33,932			33,613
Total liabilities, temporary equity and permanent equity	$	163,872		$	159,573		$	165,118		$	168,622

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions, except shares and per share data)	2019			2018			2019			2018			2020			2019			2020			2019
Revenue
Investment advisory, administration fees and securities lending revenue
Related parties	$	2,105		$	2,045		$	6,155		$	6,244		$	2,329		$	2,105		$	6,556		$	6,155
Other third parties		875			838			2,533			2,530			896			875			2,690			2,533
Total investment advisory, administration fees and securities lending revenue		2,980			2,883			8,688			8,774			3,225			2,980			9,246			8,688
Investment advisory performance fees		121			151			211			312			532			121			685			211
Technology services revenue		259			200			700			582			282			259			834			700
Distribution fees		270			279			799			884			288			270			817			799
Advisory and other revenue		62			63			164			212			42			62			145			164
Total revenue		3,692			3,576			10,562			10,764			4,369			3,692			11,727			10,562
Expense
Employee compensation and benefits		1,111			1,097			3,258			3,300			1,411			1,111			3,700			3,258
Distribution and servicing costs		427			408			1,247			1,255			456			427			1,330			1,247
Direct fund expense		239			249			733			774			257			239			780			733
General and administration		385			413			1,243			1,189			461			385			1,991			1,243
Amortization of intangible assets		28			13			68			35			27			28			79			68
Total expense		2,190			2,180			6,549			6,553			2,612			2,190			7,880			6,549
Operating income		1,502			1,396			4,013			4,211			1,757			1,502			3,847			4,013
Nonoperating income (expense)
Net gain (loss) on investments		(7	)		50			224			68			269			(7	)		627			224
Interest and dividend income		19			29			68			63			9			19			34			68
Interest expense		(54	)		(46	)		(152	)		(138	)		(54	)		(54	)		(151	)		(152	)
Total nonoperating income (expense)		(42	)		33			140			(7	)		224			(42	)		510			140
Income before income taxes		1,460			1,429			4,153			4,204			1,981			1,460			4,357			4,153
Income tax expense		341			226			961			829
Income tax expense (benefit)														464			341			811			961
Net income		1,119			1,203			3,192			3,375			1,517			1,119			3,546			3,192
Less:
Net income (loss) attributable to noncontrolling interests		—			(13	)		17			(3	)		153			—			162			17
Net income attributable to BlackRock, Inc.	$	1,119		$	1,216		$	3,175		$	3,378		$	1,364		$	1,119		$	3,384		$	3,175
Earnings per share attributable to BlackRock, Inc. common stockholders:
Basic	$	7.21		$	7.59		$	20.31		$	21.01		$	8.94		$	7.21		$	22.00		$	20.31
Diluted	$	7.15		$	7.54		$	20.17		$	20.83		$	8.87		$	7.15		$	21.84		$	20.17
Weighted-average common shares outstanding:
Basic		155,280,877			160,141,506			156,290,212			160,786,768			152,488,073			155,280,877			153,816,544			156,290,212
Diluted		156,447,387			161,378,217			157,385,956			162,140,879			153,742,264			156,447,387			154,959,812			157,385,956

	Three Months Ended						Nine Months Ended						Three Months Ended					Nine Months Ended
	September 30,						September 30,						September 30,					September 30,
(in millions)	2019			2018			2019			2018			2020		2019			2020			2019
Net income	$	1,119		$	1,203		$	3,192		$	3,375		$	1,517	$	1,119		$	3,546		$	3,192
Other comprehensive income (loss):
Foreign currency translation adjustments⁽¹⁾		(120	)		(41	)		(93	)		(178	)		180		(120	)		(30	)		(93	)
Comprehensive income (loss)		999			1,162			3,099			3,197			1,697		999			3,516			3,099
Less: Comprehensive income (loss) attributable to noncontrolling interests		—			(13	)		17			(3	)		153		-			162			17
Comprehensive income attributable to BlackRock, Inc.	$	999		$	1,175		$	3,082		$	3,200		$	1,544	$	999		$	3,354		$	3,082

(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			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, 2018	$	19,170		$	19,282		$	(691	)	$	(5,387	)	$	32,374		$	59	$	32,433		$	1,107
December 31, 2019																								$	19,188		$	21,662		$	(571	)	$	(6,732	)	$	33,547		$	66		$	33,613		$	1,316
Net income		—			3,175			—			—			3,175			—		3,175			17			—			3,384			—			—			3,384			(2	)		3,382			164
Dividends declared ($9.90 per share)		—			(1,584	)		—			—			(1,584	)		—		(1,584	)		—
Dividends declared ($10.89 per share)																									—			(1,706	)		—			—			(1,706	)		—			(1,706	)		—
Stock-based compensation		427			—			—			—			427			—		427			—			458			—			—			—			458			—			458			—
PNC preferred stock capital contribution		60			—			—			—			60			—		60			—
Retirement of preferred stock		(60	)		—			—			—			(60	)		—		(60	)		—
Issuance of common shares related to employee stock transactions		(537	)		—			—			549			12			—		12			—			(494	)		—			—			506			12			—			12			—
Employee tax withholdings related to employee stock transactions		—			—			—			(238	)		(238	)		—		(238	)		—			—			—			—			(280	)		(280	)		—			(280	)		—
Shares repurchased		—			—			—			(1,666	)		(1,666	)		—		(1,666	)		—			—			—			—			(1,512	)		(1,512	)		—			(1,512	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			1		1			906			—			—			—			—			—			(5	)		(5	)		1,363
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—		—			(893	)		—			—			—			—			—			—			—			(759	)
Other comprehensive income (loss)		—			—			(93	)		—			(93	)		—		(93	)		—			—			—			(30	)		—			(30	)		—			(30	)		—
September 30, 2019	$	19,060		$	20,873		$	(784	)	$	(6,742	)	$	32,407		$	60	$	32,467		$	1,137
September 30, 2020																								$	19,152		$	23,340		$	(601	)	$	(8,018	)	$	33,873		$	59		$	33,932		$	2,084

(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			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
June 30, 2019	$	18,949		$	20,267		$	(664	)	$	(6,659	)	$	31,893		$	57	$	31,950		$	710
June 30, 2020																								$	19,009		$	22,532		$	(781	)	$	(8,030	)	$	32,730		$	56		$	32,786		$	1,248
Net income		—			1,119			—			—			1,119			—		1,119			—			—			1,364			—			—			1,364			(2	)		1,362			155
Dividends declared ($3.30 per share)		—			(513	)		—			—			(513	)		—		(513	)		—
Dividends declared ($3.63 per share)																									—			(556	)		—			—			(556	)		—			(556	)		—
Stock-based compensation		133			—			—			—			133			—		133			—			160			—			—			—			160			—			160			—
Issuance of common shares related to employee stock transactions		(22	)		—			—			26			4			—		4			—			(17	)		—			—			22			5			—			5			—
Employee tax withholdings related to employee stock transactions		—			—			—			(9	)		(9	)		—		(9	)		—			—			—			—			(10	)		(10	)		—			(10	)		—
Shares repurchased		—			—			—			(100	)		(100	)		—		(100	)		—			—			—			—			—			—			—			—			—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			—		—			463			—			—			—			—			—			5			5			548
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			3		3			(36	)		—			—			—			—			—			—			—			133
Other comprehensive income (loss)		—			—			(120	)		—			(120	)		—		(120	)		—			—			—			180			—			180			—			180			—
September 30, 2019	$	19,060		$	20,873		$	(784	)	$	(6,742	)	$	32,407		$	60	$	32,467		$	1,137
September 30, 2020																								$	19,152		$	23,340		$	(601	)	$	(8,018	)	$	33,873		$	59		$	33,932		$	2,084

(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			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, 2017	$	19,258		$	16,939		$	(432	)	$	(3,967	)	$	31,798		$	50	$	31,848		$	416
December 31, 2018																								$	19,170		$	19,282		$	(691	)	$	(5,387	)	$	32,374		$	59	$	32,433		$	1,107
Net income		—			3,378			—			—			3,378			1		3,379			(4	)		—			3,175			—			—			3,175			—		3,175			17
Dividends declared ($8.89 per share)		—			(1,471	)		—			—			(1,471	)		—		(1,471	)		—
Dividends declared ($9.90 per share)																									—			(1,584	)		—			—			(1,584	)		—		(1,584	)		—
Stock-based compensation		431			—			—			—			431			—		431			—			427			—			—			—			427			—		427			—
PNC preferred stock capital contribution		58			—			—			—			58			—		58			—			60			—			—			—			60			—		60			—
Retirement of preferred stock		(58	)		—			—			—			(58	)		—		(58	)		—			(60	)		—			—			—			(60	)		—		(60	)		—
Issuance of common shares related to employee stock transactions		(639	)		—			—			651			12			—		12			—			(537	)		—			—			549			12			—		12			—
Employee tax withholdings related to employee stock transactions		—			—			—			(420	)		(420	)		—		(420	)		—			—			—			—			(238	)		(238	)		—		(238	)		—
Shares repurchased		—			—			—			(1,135	)		(1,135	)		—		(1,135	)		—			—			—			—			(1,666	)		(1,666	)		—		(1,666	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			4		4			742			—			—			—			—			—			1		1			906
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—		—			(551	)		—			—			—			—			—			—		—			(893	)
Other comprehensive income (loss)		—			—			(178	)		—			(178	)		—		(178	)		—			—			—			(93	)		—			(93	)		—		(93	)		—
Adoption of accounting guidance		—			6			(6	)		—			—			—		—			—
September 30, 2018	$	19,050		$	18,852		$	(616	)	$	(4,871	)	$	32,415		$	55	$	32,470		$	603
September 30, 2019																								$	19,060		$	20,873		$	(784	)	$	(6,742	)	$	32,407		$	60	$	32,467		$	1,137

(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			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
June 30, 2018	$	18,955		$	18,138		$	(575	)	$	(4,388	)	$	32,130		$	54		$	32,184		$	686
June 30, 2019																									$	18,949		$	20,267		$	(664	)	$	(6,659	)	$	31,893		$	57	$	31,950		$	710
Net income		—			1,216			—			—			1,216			(8	)		1,208			(5	)		—			1,119			—			—			1,119			—		1,119			—
Dividends declared ($3.13 per share)		—			(502	)		—			—			(502	)		—			(502	)		—
Dividends declared ($3.30 per share)																										—			(513	)		—			—			(513	)		—		(513	)		—
Stock-based compensation		121			—			—			—			121			—			121			—			133			—			—			—			133			—		133			—
Issuance of common shares related to employee stock transactions		(26	)		—			—			32			6			—			6			—			(22	)		—			—			26			4			—		4			—
Employee tax withholdings related to employee stock transactions		—			—			—			(15	)		(15	)		—			(15	)		—			—			—			—			(9	)		(9	)		—		(9	)		—
Shares repurchased		—			—			—			(500	)		(500	)		—			(500	)		—			—			—			—			(100	)		(100	)		—		(100	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			9			9			207			—			—			—			—			—			—		—			463
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(285	)		—			—			—			—			—			3		3			(36	)
Other comprehensive income (loss)		—			—			(41	)		—			(41	)		—			(41	)		—			—			—			(120	)		—			(120	)		—		(120	)		—
September 30, 2018	$	19,050		$	18,852		$	(616	)	$	(4,871	)	$	32,415		$	55		$	32,470		$	603
September 30, 2019																									$	19,060		$	20,873		$	(784	)	$	(6,742	)	$	32,407		$	60	$	32,467		$	1,137

	Nine Months Ended						Nine Months Ended
(in millions)	September 30,						September 30,
	2019			2018			2020			2019
Operating activities
Net income	$	3,192		$	3,375		$	3,546		$	3,192
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization		294			164			342			294
Stock-based compensation		427			431			458			427
Deferred income tax expense (benefit)		45			(187	)		20			45
Charitable Contribution								589			—
Gain related to the Charitable Contribution								(122	)		—
Gain related to iCapital recapitalization								(244	)		—
Other gains		(30	)		(50	)		—			(30	)
Net (gains) losses within consolidated VIEs		(128	)		21
Net (purchases) proceeds within consolidated VIEs		(932	)		(1,107	)
Net (gains) losses within consolidated sponsored investment products								(161	)		(160	)
Net (purchases) proceeds within consolidated sponsored investment products								(1,603	)		(1,106	)
(Earnings) losses from equity method investees		(89	)		(92	)		(75	)		(89	)
Distributions of earnings from equity method investees		29			23			25			29
Changes in operating assets and liabilities:
Accounts receivable		(330	)		(5	)		(544	)		(330	)
Investments, trading		(189	)		161			153			17
Other assets		(225	)		(191	)		(864	)		(225	)
Accrued compensation and benefits		(525	)		(594	)		(206	)		(525	)
Accounts payable and accrued liabilities		(61	)		164			(183	)		(61	)
Other liabilities		150			439			633			150
Net cash provided by/(used in) operating activities		1,628			2,552			1,764			1,628
Investing activities
Purchases of investments		(572	)		(259	)		(252	)		(572	)
Proceeds from sales and maturities of investments		151			400			133			151
Distributions of capital from equity method investees		80			18			124			80
Net consolidations (deconsolidations) of sponsored investment funds (VIEs/VREs)		(96	)		(52	)
Net consolidations (deconsolidations) of sponsored investment funds								(42	)		(96	)
Acquisitions, net of cash acquired		(1,510	)		(699	)		—			(1,510	)
Purchases of property and equipment		(160	)		(108	)		(140	)		(160	)
Net cash provided by/(used in) investing activities		(2,107	)		(700	)		(177	)		(2,107	)
Financing activities
Proceeds from long-term borrowings		992			—			2,245			992
Cash dividends paid		(1,584	)		(1,471	)		(1,706	)		(1,584	)
Repurchases of common stock		(1,904	)		(1,555	)		(1,792	)		(1,904	)
Net proceeds from (repayments of) borrowings by consolidated VIEs		102			—
Net proceeds from (repayments of) borrowings by consolidated sponsored investment products								38			102
Net (redemptions/distributions paid)/subscriptions received from noncontrolling interest holders		907			746			1,358			907
Other financing activities		118			(13	)		(37	)		118
Net cash provided by/(used in) financing activities		(1,369	)		(2,293	)		106			(1,369	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(33	)		(58	)		(15	)		(33	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		(1,881	)		(499	)		1,678			(1,881	)
Cash, cash equivalents and restricted cash, beginning of period		6,505			7,096			4,846			6,505
Cash, cash equivalents and restricted cash, end of period	$	4,624		$	6,597		$	6,524		$	4,624
Supplemental disclosure of cash flow information:
Cash paid for:
Interest	$	123		$	123
Income taxes (net of refunds)	$	893		$	765
Supplemental schedule of noncash investing and financing transactions:
Issuance of common stock	$	537		$	639		$	494		$	537
PNC preferred stock capital contribution	$	60		$	58		$	—		$	60
Charitable Contribution of an investment							$	(589	)	$	—
Increase (decrease) in noncontrolling interests due to net consolidation (deconsolidation) of sponsored investment funds	$	(893	)	$	(551	)	$	(759	)	$	(893	)

BlackRock’s diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares^® exchange-traded funds (“ETFs”), separate accounts, collective ~~investment trusts~~trust funds (“CTFs”) and other pooled investment vehicles. BlackRock also offers technology services, including the investment and risk management technology platform, Aladdin^®, Aladdin Wealth, eFront, Cachematrix and FutureAdvisor, as well as advisory services and solutions to a broad base of institutional and wealth management clients.

At September 30, 2019, The PNC Financial Services Group, Inc. (“PNC”) held 22.0% of the Company’s voting common stock and 22.4% of the Company’s capital stock, which includes outstanding common and nonvoting preferred stock.

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its controlled subsidiaries. Noncontrolling interests (“NCI”) on the condensed consolidated statements of financial condition represents the portion of consolidated sponsored investment funds in which the Company does not have direct equity ownership. Accounts and transactions between consolidated entities have been eliminated.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates.

Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, is not required for interim reporting purposes and has been condensed or omitted herein. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2018,~~2019, which was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2020 (“2019 ~~(“2018~~ Form 10-K”).

The interim financial information at September 30, ~~2019~~2020 and for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 is unaudited. However, in the opinion of management, the interim information includes all normal recurring adjustments necessary for the fair presentation of the Company’s results for the periods presented. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year.

Certain prior period presentations and disclosures, while not required to be recast, were reclassified to ensure comparability with current period classifications.

Accounting Pronouncements Adopted in the Nine Months Ended September 30, ~~2019~~2020

~~Leases~~Measurement of Credit Losses.. In ~~February~~June 2016, the Financial Accounting Standards Board ~~(“FASB”)~~ issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments~~2016-02,~~ ~~Leases, and several amendments (collectively, “ASU 2016-02”~~ (“ASU 2016-13”), which significantly changes the accounting and disclosures for credit losses for most financial assets. The new guidance requires ~~lessees to recognize assets~~an estimate of expected lifetime credit losses and ~~liabilities arising from most operating leases on the condensed consolidated statements of financial condition.~~

The Company adopted ASU 2016-02 on its effective date of January 1, 2019 on a modified retrospective basis and elected not to apply ASU 2016-02 to the comparative periods presented. Under this transition method, any cumulative effect adjustment is recognized in the opening balance of retained earnings in the period of adoption. The Company elected the package of practical expedients to alleviate certain operational complexities related to the adoption, which among other things, allowed the Company to carry forwardeliminates the existing lease classification. The Company elected to account for lease and non-lease components as a single component for its leases. The Company also elected the short-term lease practical expedient. Consequently, leases with an initial term of 12 months or less are not recorded on the condensed consolidated statement of financial condition. Upon adoption of ASU 2016-02, the Company recorded a net increase of approximately $0.7 billion in its assets and liabilities related to the right-of-use (“ROU”) asset and lease liability for its operating leases.recognition thresholds under current models. The adoption of ASU ~~2016-02~~2016-13, which was effective for the Company on January 1, 2020, did not have a material impact on ~~the~~its condensed consolidated ~~statement of income or cash flows. See Note 10,~~ ~~Leases~~financial statements.~~, for more information.~~

Hierarchy of Fair Value Inputs. The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories:

Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date.

Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies.

Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation.

Significance of Inputs. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

Valuation Approaches. The fair values of certain Level 3 assets and liabilities were determined using various valuation approaches as appropriate, including third-party pricing vendors, broker quotes and market and income approaches.

A significant number of inputs used to value equity, debt securities, investments in CLOs and bank loans is sourced from third-party pricing vendors. Generally, prices obtained from pricing vendors are categorized as Level 1 inputs for identical securities traded in active markets and as Level 2 for other similar securities if the vendor uses observable inputs in determining the price.

In addition, quotes obtained from brokers generally are nonbinding and categorized as Level 3 inputs. However, if the Company is able to determine that market participants have transacted for the asset in an orderly manner near the quoted price or if the Company can determine that the inputs used by the broker are observable, the quote is classified as a Level 2 input.

Investments Measured at Net Asset Values. As a practical expedient, the Company uses net asset value (“NAV”) as the fair value for certain investments. The inputs to value these investments may include the Company’s capital accounts for its partnership interests in various alternative investments, including hedge funds, real assets and private equity funds, which may be adjusted by using the returns of certain market indices. The various partnerships generally are investment companies, which record their underlying investments at fair value based on fair value policies established by management of the underlying fund. Fair value policies at the underlying fund generally require the fund to utilize pricing/valuation information from third-party sources, including independent appraisals. However, in some instances, current valuation information for illiquid securities or securities in markets that are not active may not be available from any third-party source or fund management may conclude that the valuations that are available from third-party sources are not reliable. In these instances, fund management may perform model-based analytical valuations that could be used as an input to value these investments.

Fair Value of Assets and Liabilities of Consolidated CLO. The Company applies the fair value option provisions for eligible assets, including bank loans, held by a consolidated CLO. As the fair value of the financial assets of the consolidated CLO is more observable than the fair value of the borrowings of the consolidated CLO, the Company measures the fair value of the borrowings of the consolidated CLO asequal to the fair value of the assets of the consolidated CLO less the fair value of the Company’s economic interest in the CLO.

Derivatives and Hedging Activities. The Company does not use derivative financial instruments for trading or speculative purposes. The Company uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in foreign currency exchange rates of certain assets and liabilities, and market exposures for certain seed investments. However, certain consolidated sponsored investment funds may also utilize derivatives as a part of their investment strategy.

The Company records all derivative financial instruments as either assets or liabilities at fair value on a gross basis in the condensed consolidated statements of financial condition. Changes in the fair value of the Company’s derivative financial instruments are recognized in earnings and, where applicable, are offset by the corresponding gain or loss on the related foreign-denominated assets or liabilities or hedged investments, on the condensed consolidated statements of income.

The Company may also use financial instruments designated as net investment hedges for accounting purposes to hedge net investments in international subsidiaries whose functional currency is not US dollars. The gain or loss from revaluing ~~accounting~~net investment hedges ~~of net investments in foreign operations~~ at the spot rate is deferred and reported within accumulated other comprehensive income (loss) on the condensed consolidated statements of financial condition. Amounts excluded from the effectiveness assessment are reported in the condensed consolidated statements of income using a systematic and rational method. The Company reassesses the effectiveness of its net investment ~~hedges~~hedge at least quarterly.

~~Leases~~. The Company determines if a contract is a lease or contains a lease at inception. The Company accounts for its office facility leases as operating leases, which may include escalation clauses that are based on an index or market rate. ~~The Company accounts for lease and non-lease components as a single component for its leases. The Company elected the short-term lease exception for l~~eases with an initial term of 12 months or less. Consequently, such leases are not recorded on the condensed consolidated statement of financial condition. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain they will be exercised or not, respectively.

~~Fixed lease payments are included in ROU assets and lease liabilities within other assets and other liabilities, respectively, on the condensed consolidated statement of financial condition.~~ROU assets and lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date using the Company’s incremental borrowing rate as the discount rate. Fixed lease payments made over the lease term are recorded as lease expense on a straight-line basis. Variable lease payments based on usage, changes in an index or market rate are expensed as incurred.

Upon adoption of ASU 2016-02, for existing leases, the Company elected to determine the discount rate based on the remaining lease term as of January 1, 2019 and for lease payments based on an index or rate to apply the rate at commencement date. For new leases, the discount rates are based on the entire noncancelable lease term.

Separate Account Assets and Liabilities. Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company, which is a registered life insurance company in the United Kingdom, and represent segregated assets held for purposes of funding individual and group pension contracts. The life insurance company does not underwrite any insurance contracts that involve any insurance risk transfer from the insured to the life insurance company. The separate account assets primarily include equity securities, debt securities, money market funds and derivatives. The separate account assets are not subject to general claims of the creditors of BlackRock. These separate account assets and the related equal and offsetting liabilities are recorded as separate account assets and separate account liabilities on the condensed consolidated statements of financial condition.

The net investment income attributable to separate account assets supporting individual and group pension contracts accrues directly to the contract owner and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these separate account assets and liabilities, BlackRock earns policy administration and management fees associated with these products, which are included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income.

Separate Account Collateral Assets Held and Liabilities Under Securities Lending Agreements. The Company facilitates securities lending arrangements whereby securities held by separate accounts maintained by BlackRock Life Limited are lent to third parties under global master securities lending agreements. In exchange, the Company receives legal title to the collateral with minimum values generally ranging from approximately 102% to 112% of the value of the securities lent in order to reduce counterparty risk. The required collateral value is calculated on a daily basis. The global master securities lending agreements provide the Company the right to request additional collateral or, in the event of borrower default, the right to liquidate collateral. The securities lending transactions entered into by the Company are accompanied by an agreement that entitles the Company to request the borrower to return the securities at any time; therefore, these transactions are not reported as sales.

The Company records on the condensed consolidated statements of financial condition the cash and noncash collateral received under these BlackRock Life Limited securities lending arrangements as its own asset in addition to an equal and offsetting collateral liability for the obligation to return the collateral. The securities lending revenue earned from lending securities held by the separate accounts is included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income. During the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company had not resold or repledged any of the collateral received under these arrangements. At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the fair value of loaned securities held by separate accounts was approximately ~~$17.5~~$14 billion and ~~$18.9~~$14.4 billion, respectively, and the fair value of the collateral held under these securities lending agreements was approximately ~~$18.7~~$15.1 billion and ~~$20.7~~$15.5 billion, respectively.

On May 10, 2019, the Company acquired 100% of the equity interests of eFront Holding SAS (“eFront Transaction” or “eFront”), a leading alternative investment management software and solutions provider for approximately $1.3 billion, excluding the settlement of eFront’s outstanding debt. The acquisition of eFront ~~expands~~expanded Aladdin’s illiquid alternative capabilities and enables BlackRock to provide individual alternative or whole-portfolio technology solutions to clients.

The purchase price was funded through a combination of existing cash and issuance of commercial paper (subsequently repaid with existing cash) and long-term notes in April 2019. ~~See Note 13,~~ ~~Borrowings, for information on the debt issuance in April 2019.~~

The purchase price for the eFront Transaction was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the transaction. The goodwill recognized in connection with the acquisition is non-deductible for tax purposes and is primarily attributable to anticipated synergies from the transaction.

During the three months ended September 30, 2019, the amounts of goodwill, finite-lived intangible assets and deferred income tax liabilities were retrospectively adjusted to reflect new information obtained about facts that existed as of May 10, 2019, the eFront acquisition date. There was no material change to the condensed consolidated statements of income for the three and nine months ended September 30, 2019 as a result of these adjustments. A summary of the ~~initial and revised~~ fair values of the assets acquired and liabilities assumed in this acquisition is as ~~follows~~⁽¹⁾:follows:

Finite-lived intangible assets are amortized over their estimated useful lives, which range from four to 10 years. Amortization expense related to the finite-lived intangible assets was $14 million and $24 million, respectively, for the three and nine months ended September 30, 2019. The finite-lived intangible assets had a weighted-average remaining useful life of approximately nine years with remaining amortization expense as follows:

For the three and nine months ended September 30, 2019, eFront contributed $37 million and $59 million, respectively, of revenue and did not have a material impact to net income attributable to BlackRock, Inc. Consequently, the Company has not presented pro forma combined results of operations for this acquisition.

The following table provides a reconciliation of cash and cash equivalents reported within the condensed consolidated statements of financial condition to the cash, cash equivalents, and restricted cash reported within the condensed consolidated statements of cash flows.

					September 30,		December 31,
	September 30,		December 31,		2020		2019
(in millions)	2019		2018
Cash and cash equivalents	$	4,476	$	6,302	$	6,507	$	4,829
Cash and cash equivalents of consolidated VIEs		131		186
Restricted cash included in other assets		17		17		17		17
Total cash, cash equivalents and restricted cash	$	4,624	$	6,505	$	6,524	$	4,846

	September 30,		December 31,		September 30,		December 31,
(in millions)	2019		2018		2020		2019
Debt securities:
Held-to-maturity investments	$	212	$	188	$	284	$	249
Trading securities (debt securities of consolidated sponsored investment funds of $169 and $233 at September 30, 2019 and December 31, 2018, respectively)		210		265
Trading securities						1,821		1,249
Total debt securities		422		453		2,105		1,498
Equity securities at FVTNI⁽¹⁾ (equity securities of consolidated sponsored investment funds of $334 and $291 at September 30, 2019 and December 31, 2018, respectively)		543		452
Equity securities at FVTNI⁽¹⁾						2,090		1,926
Equity method investments⁽²⁾		930		781		1,036		943
Bank loans						226		204
Federal Reserve Bank stock⁽³⁾		93		92		94		93
Carried interest⁽⁴⁾		16		18		483		528
Other investments⁽⁵⁾		113		—		273		297
Total investments	$	2,117	$	1,796	$	6,307	$	5,489

The carrying value of held-to-maturity investments was ~~$212~~$284 million and ~~$188~~$249 million at September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively. Held-to-maturity investments included certain investments in CLOs and foreign government debt held primarily for regulatory ~~purposes and certain investments in CLOs.~~purposes. The amortized cost (carrying value) of these investments approximated fair value (primarily a Level 2 input). At September 30, ~~2019, $68~~2020, $10 million mature between one to five years, $149 million of these investments mature between five to ten years and ~~$144~~$125 million mature after ten years.

A summary of the cost and carrying value of ~~equity and~~ trading debt securities and equity securities at FVTNI is as follows:


	September 30, 2019				December 31, 2018				September 30, 2020				December 31, 2019
(in millions)	Cost		Carrying Value		Cost		Carrying Value		Cost		Carrying Value		Cost		Carrying Value
Trading debt securities:
Corporate debt	$	125	$	126	$	144	$	140	$	1,447	$	1,441	$	822	$	844
Government debt		36		35		69		67		269		270		268		269
Asset/mortgage-backed debt		47		49		67		58		126		110		141		136
Total trading debt securities	$	208	$	210	$	280	$	265	$	1,842	$	1,821	$	1,231	$	1,249
Equity securities at FVTNI:
Deferred compensation plan mutual funds	$	6	$	22	$	21	$	34
Equity securities/multi-asset mutual funds		476		521		420		418
Equity securities/mutual funds									$	1,989	$	2,090	$	1,769	$	1,926
Total equity securities at FVTNI	$	482	$	543	$	441	$	452	$	1,989	$	2,090	$	1,769	$	1,926

In addition, the Company accounts for its interest in PennyMac Financial Services, Inc. (“PennyMac”) as an equity method investment. At September 30, 2019 and December 31, 2018, the Company’s investment in PennyMac is included in other assets on the condensed consolidated statements of financial condition. The carrying value and market value of the Company’s interest (approximately 20% or 16 million shares) were approximately $434 million and $473 million, respectively, at September 30, 2019 and approximately $397 million and $331 million, respectively, at December 31, 2018. The market value of the Company’s interest reflected the PennyMac stock price at September 30, 2019 and December 31, 2018, respectively (a Level 1 input).

The Company consolidates certain sponsored investment funds accounted for as ~~VREs~~voting rights entities (“VREs”) because it is deemed to control such funds. The following table presents the amounts related to these consolidated VREs that were recorded on the condensed consolidated statements of financial condition, including BlackRock’s net interest in these funds:

BlackRock’s total exposure to consolidated VREs represents the value of its economic ownership interest in these sponsored investment funds. Valuation changes associated with investments held at fair value by these consolidated VREs are reflected in nonoperating income (expense) and partially offset in net income (loss) attributable to noncontrolling interests for the portion not attributable to BlackRock.

~~The Company cannot readily access cash and cash equivalents held by consolidated VREs to use in its operating activities.~~

In the normal course of business, the Company is the manager of various types of sponsored investment vehicles, which may be considered ~~variable interest entities (“VIEs”).~~VIEs. The Company may from time to time own equity or debt securities or enter into derivatives with the vehicles, each of which are considered variable interests. The Company’s involvement in financing the operations of the VIEs is generally limited to its investments in the entity. ~~The Company consolidates entities when it is determined to be the primary beneficiary (“PB”).~~

~~Consolidated VIEs.~~ The Company’s consolidated VIEs include certain sponsored investment products in which BlackRock has an investment and as the investment manager, is deemed to have both the power to direct the most significant activities of the products and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these sponsored investment products. The assets of these VIEs are not available to creditors of the Company. In addition, the investors in these VIEs have no recourse to the credit of the Company.

~~Consolidated VIE assets~~The following table presents the balances related to these consolidated sponsored investment products accounted for as VIEs and ~~liabilities are presented after intercompany eliminations~~VREs that were recorded on the consolidated statements of financial condition, including BlackRock’s net interest in ~~the following table:~~these products:

BlackRock’s total exposure to consolidated sponsored investment products represents the value of its economic ownership interest in these sponsored investment products. Valuation changes associated with investments held at fair value by these consolidated sponsored investment products are reflected in nonoperating income (expense) and partially offset in net income (loss) attributable to noncontrolling interests for the portion not attributable to BlackRock.

The Company cannot readily access cash and cash equivalents held by consolidated sponsored investment products to use in its operating activities.

Net gain (loss) related to consolidated VIEs is presented in the following table:

Nonconsolidated VIEs. At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the Company’s carrying value of assets and liabilities included on the condensed consolidated statements of financial condition pertaining to nonconsolidated VIEs and its maximum risk of loss related to VIEs for which it held a variable interest, but for which it was not the ~~PB,~~primary beneficiary, was as follows:

(in millions)
At September 30, 2019	Investments		Advisory Fee Receivables		Other Net Assets (Liabilities)			Maximum Risk of Loss⁽¹⁾
At September 30, 2020										Investments		Advisory Fee Receivables		Other Net Assets (Liabilities)			Maximum Risk of Loss⁽¹⁾
Sponsored investment products	$	498	$	88	$	(10	)	$	603	$	626	$	80	$	(13	)	$	723
At December 31, 2018
At December 31, 2019
Sponsored investment products	$	348	$	43	$	(6	)	$	408	$	539	$	71	$	(10	)	$	627

The net assets of sponsored investment products that are nonconsolidated VIEs approximated ~~$12~~$15 billion and $9$12 billion at September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively.

September 30, 2019 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV⁽¹⁾		Other⁽²⁾		September 30, 2019
September 30, 2020 (in millions)													Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV⁽¹⁾		Other⁽²⁾		September 30, 2020
Assets:
Investments:
Investments
Debt securities:
Held-to-maturity securities	$	—	$	—	$	—	$	—	$	212	$	212
Held-to-maturity investments													$	—	$	—	$	—	$	—	$	284	$	284
Trading securities		—		205		5		—		—		210		—		1,810		11		—		—		1,821
Total debt securities		—		205		5		—		212		422		—		1,810		11		—		284		2,105
Equity securities at FVTNI:
Deferred compensation plan mutual funds		22		—		—		—		—		22
Equity securities/Multi-asset mutual funds		521		—		—		—		—		521
Total equity securities at FVTNI		543		—		—		—		—		543
Equity securities/mutual funds														2,090		—		—		—		—		2,090
Equity method:
Equity and fixed income mutual funds		113		—		—		—		—		113		242		—		—		—		—		242
Hedge funds/funds of hedge funds		—		—		—		206		—		206		—		—		—		266		—		266
Private equity funds		—		—		—		260		—		260		—		—		—		285		—		285
Real assets funds		—		—		—		320		—		320		—		—		—		234		—		234
Other		26		—		—		5		—		31		—		—		—		9		—		9
Total equity method		139		—		—		791		—		930		242		—		—		794		—		1,036
Bank loans														—		9		217		—		—		226
Federal Reserve Bank Stock		—		—		—		—		93		93		—		—		—		—		94		94
Carried interest		—		—		—		—		16		16		—		—		—		—		483		483
Other investments		—		—		—		—		113		113
Other investments⁽³⁾														—		—		10		93		170		273
Total investments		682		205		5		791		434		2,117		2,332		1,819		238		887		1,031		6,307
Investments of consolidated VIEs:
Trading debt securities		—		1,120		—		—		—		1,120
Equity securities at FVTNI		971		—		—		—		—		971
Bank loans		—		26		157		—		—		183
Private equity⁽³⁾		1		—		9		27		76		113
Hedge fund		—		—		—		3		—		3
Real assets funds		—		—		—		66		—		66
Carried interest		—		—		—		—		442		442
Total investments of consolidated VIEs		972		1,146		166		96		518		2,898
Other assets⁽⁴⁾		141		—		—		—		—		141		192		18		—		—		—		210
Separate account assets		66,395		28,446		—		—		660		95,501		65,032		29,766		—		—		1,196		95,994
Separate account collateral held under securities lending agreements:
Equity securities		8,577		—		—		—		—		8,577		10,250		—		—		—		—		10,250
Debt securities		—		10,122		—		—		—		10,122		—		4,887		—		—		—		4,887
Total separate account collateral held under securities lending agreements		8,577		10,122		—		—		—		18,699		10,250		4,887		—		—		—		15,137
Total	$	76,767	$	39,919	$	171	$	887	$	1,612	$	119,356	$	77,806	$	36,490	$	238	$	887	$	2,227	$	117,648
Liabilities:
Borrowings of consolidated VIEs⁽⁵⁾	$	—	$	—	$	186	$	—	$	—	$	186
Separate account collateral liabilities under securities lending agreements		8,577		10,122		—		—		—		18,699	$	10,250	$	4,887	$	—	$	—	$	—	$	15,137
Other liabilities⁽⁶⁾		—		10		167		—		—		177
Other liabilities⁽⁵⁾														—		36		261		—		—		297
Total	$	8,577	$	10,132	$	353	$	—	$	—	$	19,062	$	10,250	$	4,923	$	261	$	—	$	—	$	15,434

December 31, 2018 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV⁽¹⁾		Other⁽²⁾		December 31, 2018
December 31, 2019 (in millions)													Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV⁽¹⁾		Other⁽²⁾		December 31, 2019
Assets:
Investments:
Investments
Debt securities:
Held-to-maturity securities	$	—	$	—	$	—	$	—	$	188	$	188
Held-to-maturity investments													$	—	$	—	$	—	$	—	$	249	$	249
Trading securities		—		261		4		—		—		265		—		1,241		8		—		—		1,249
Total debt securities		—		261		4		—		188		453		—		1,241		8		—		249		1,498
Equity securities at FVTNI:
Deferred compensation plan mutual funds		34		—		—		—		—		34
Equity securities/Multi-asset mutual funds		418		—		—		—		—		418
Total equity securities at FVTNI		452		—		—		—		—		452
Equity securities/mutual funds														1,926		—		—		—		—		1,926
Equity method:
Equity and fixed income mutual funds		122		—		—		—		—		122		157		—		—		—		—		157
Hedge funds/funds of hedge funds		—		—		—		173		—		173		—		—		—		220		—		220
Private equity funds		—		—		—		116		—		116		—		—		—		248		—		248
Real assets funds		—		—		—		353		—		353		—		—		—		296		—		296
Other		—		—		—		14		3		17		12		—		—		10		—		22
Total equity method		122		—		—		656		3		781		169		—		—		774		—		943
Bank loans														—		27		177		—		—		204
Federal Reserve Bank Stock		—		—		—		—		92		92		—		—		—		—		93		93
Carried interest		—		—		—		—		18		18		—		—		—		—		528		528
Other investments⁽³⁾														—		—		9		98		190		297
Total investments		574		261		4		656		301		1,796		2,095		1,268		194		872		1,060		5,489
Investments of consolidated VIEs:
Trading debt securities		—		1,395		—		—		—		1,395
Equity securities at FVTNI		569		—		—		—		—		569
Bank loans		—		14		70		—		—		84
Private equity⁽³⁾		—		—		82		48		75		205
Hedge fund		—		—		—		3		—		3
Real assets funds		—		—		—		55		—		55
Carried interest		—		—		—		—		369		369
Total investments of consolidated VIEs		569		1,409		152		106		444		2,680
Other assets⁽⁴⁾		122		—		—		—		—		122		173		—		—		—		—		173
Separate account assets		63,610		25,810		—		—		865		90,285		72,515		29,582		—		—		747		102,844
Separate account collateral held under securities lending agreements:
Equity securities		15,066		—		—		—		—		15,066		10,209		—		—		—		—		10,209
Debt securities		—		5,589		—		—		—		5,589		—		5,257		—		—		—		5,257
Total separate account collateral held under securities lending agreements		15,066		5,589		—		—		—		20,655		10,209		5,257		—		—		—		15,466
Total	$	79,941	$	33,069	$	156	$	762	$	1,610	$	115,538	$	84,992	$	36,107	$	194	$	872	$	1,807	$	123,972
Liabilities:
Borrowings of consolidated VIEs⁽⁵⁾	$	—	$	—	$	84	$	—	$	—	$	84
Separate account collateral liabilities under securities lending agreements		15,066		5,589		—		—		—		20,655	$	10,209	$	5,257	$	—	$	—	$	—	$	15,466
Other liabilities⁽⁶⁾		—		6		287		—		—		293
Other liabilities⁽⁵⁾														—		10		388		—		—		398
Total	$	15,066	$	5,595	$	371	$	—	$	—	$	21,032	$	10,209	$	5,267	$	388	$	—	$	—	$	15,864

Level 3 Assets. Level 3 assets may include investments in CLOs and bank loans of consolidated CLOs, which were valued based on single-broker nonbinding quotes and direct private equity investments, which were valued using the market or income ~~approach as described below.~~approach.

Level 3 investments of ~~consolidated VIEs of $166~~$238 million and ~~$152~~$194 million at September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively, ~~related to direct investments in private equity companies held by consolidated private equity funds. At both September 30, 2019 and December 31, 2018, Level 3 investments of consolidated VIEs also~~primarily included bank loans of a consolidated ~~CLO~~ ~~which were valued based on single-broker nonbinding quotes.~~

Direct investments in private equity companies may be valued using the market approach or the income approach, or a combination thereof, and were valued based on an assessment of each underlying investment, incorporating evaluation of additional significant third-party financing, changes in valuations of comparable peer companies, the business environment of the companies, market indices, assumptions relating to appropriate risk adjustments for nonperformance and legal restrictions on disposition, among other factors. The fair value derived from the methods used is evaluated and weighted, as appropriate, considering the reasonableness of the range of values indicated. Under the market approach, fair value may be determined by reference to multiples of market-comparable companies or transactions, including earnings before interest, taxes, depreciation and amortization multiples. Under the income approach, fair value may be determined by discounting the expected cash flows to a single present value amount using current expectations about those future amounts. Unobservable inputs used in a discounted cash flow model may include projections of operating performance generally covering a five-year period and a terminal value of the private equity direct investment. For investments utilizing a discounted cash flow valuation technique, a significant increase (decrease) in the discount rate, risk premium or discount for lack of marketability in isolation could have resulted in a significantly lower (higher) fair value measurement as of September 30, 2019. For investments utilizing the market-comparable valuation technique, a significant increase (decrease) in a valuation multiple in isolation could have resulted in a significantly higher (lower) fair value measurement as of September 30, 2019.CLO.

Level 3 Liabilities. Level 3 liabilities primarily include ~~contingent liabilities associated with certain acquisitions, which were valued based upon discounted cash flow analyses using unobservable market data inputs and~~ borrowings of a consolidated ~~VIEs,~~CLO, which were valued based on the fair value of the assets of the consolidated CLO less the fair value of the Company’s economic interest in the ~~CLO.~~CLO, and contingent liabilities related to certain acquisitions, which were valued based upon discounted cash flow analyses using unobservable market data inputs.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, ~~2019~~2020

(in millions)

June 30,
2019

Realized
and
Unrealized
Gains
(Losses)

Purchases

Sales and
Maturities

Issuances and
other
Settlements⁽¹⁾

Transfers
into
Level 3

Transfers
out of
Level 3

September 30,
2019

Total Net
Unrealized
Gains (Losses)
Included in
Earnings⁽²⁾

Assets:

Investments:

Debt securities:

Trading

$
2

$
—

$
3

$
—

$
—

$
—

$
—

$
5

$
—

Total investments

2

—

3

—

—

—

—

5

—

Assets of consolidated VIEs:

Bank loans⁽³⁾

125

—

32

—

—

—

—

157

—

Private equity

9

1

—

—

—

—

(1
)

9

1

Total Assets of consolidated VIEs

134

1

32

—

—

—

(1
)

166

1

Total Level 3 assets

$
136

$
1

$
35

$
—

$
—

$
—

$
(1
)

$
171

$
1

Liabilities:

Borrowings of consolidated VIEs⁽³⁾

$
142

$
—

$
—

$
—

$
44

$
—

$
—

$
186

$
—

Other liabilities⁽⁴⁾

168

1

—

—

—

—

—

167

1

Total Level 3 liabilities

$
310

$
1

$
—

$
—

$
44

$
—

$
—

$
353

$
1

~~Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2019~~

(in millions)	December 31, 2018		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities		Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3⁽²⁾			September 30, 2019		Total Net Unrealized Gains (Losses) Included in Earnings⁽³⁾			June 30, 2020		Realized and Unrealized Gains (Losses)		Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3			September 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	4	$	—		$	5	$	—	$	—		$	—	$	(4	)	$	5	$	—		$	10	$	—	$	1	$	—		$	—		$	—	$	—		$	11	$	—
Total debt securities																								10		—		1		—			—			—		—			11		—
Private equity																								16		—		—		(6	)		—			—		—			10		—
Bank loans⁽⁴⁾																								229		—		—		(9	)		—			—		(3	)		217		—
Total investments		4		—			5		—		—			—		(4	)		5		—		$	255	$	—	$	1	$	(15	)	$	—		$	—	$	(3	)	$	238	$	—
Assets of consolidated VIEs:
Bank loans⁽⁴⁾		70		—			87		—		—			—		—			157		—
Private equity		82		—			—		—		—			—		(73	)		9		—
Total Assets of consolidated VIEs		152		—			87		—		—			—		(73	)		166		—
Total Level 3 assets	$	156	$	—		$	92	$	—	$	—		$	—	$	(77	)	$	171	$	—
Liabilities:
Borrowings of consolidated VIEs⁽⁴⁾	$	84	$	—		$	—	$	—	$	102		$	—	$	—		$	186	$	—
Other liabilities⁽⁵⁾		287		(18	)		—		—		(138	)		—		—			167		(18	)
Other liabilities⁽³⁾																							$	262	$	—	$	—	$	—		$	(1	)	$	—	$	—		$	261	$	—
Total Level 3 liabilities	$	371	$	(18	)	$	—	$	—	$	(36	)	$	—	$	—		$	353	$	(18	)	$	262	$	—	$	—	$	—		$	(1	)	$	—	$	—		$	261	$	—

~~Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2018~~

(in millions)

June 30,
2018

Realized
and
Unrealized
Gains
(Losses)

Purchases

Sales and
Maturities

Issuances
and
other
Settlements

Transfers
into
Level 3

Transfers
out of
Level 3

September 30,
2018

Total Net
Unrealized
Gains (Losses)
Included in
Earnings⁽¹⁾

Assets:

Assets of consolidated VIEs:

Private equity

$
104

$
1

$
—

$
—

$
—

$
—

$
—

$
105

$
1

Bank loans⁽²⁾

—

—

—

—

44

—

—

44

—

Total Assets of consolidated VIEs

$
104

$
1

$
—

$
—

$
44

$
—

$
—

$
149

$
1

Total Level 3 assets

Liabilities:

Borrowings of consolidated VIEs⁽²⁾

$
—

$
—

$
—

$
—

$
44

$
—

$
—

$
44

$
—

Other liabilities⁽³⁾

223

(30
)

—

—

6

—

—

259

—

Total Level 3 liabilities

$
223

$
(30
)

$
—

$
—

$
50

$
—

$
—

$
303

$
(30
)

~~Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2018~~

(in millions)

December 31,
2017

Realized
and
Unrealized
Gains
(Losses)

Purchases

Sales and
Maturities

Issuances
and
other
Settlements⁽¹⁾

Transfers
into
Level 3

Transfers
out of
Level 3

September 30,
2018

Total Net
Unrealized
Gains (Losses)
Included in
Earnings⁽²⁾

Assets:

Investments:

Available-for-sale securities⁽³⁾

$
—

$
—

$
26

$
—

$
—

$
—

$
(26
)

$
—

$
—

Trading

—

—

5

—

—

—

(5
)

—

—

Total investments

—

—

31

—

—

—

(31
)

—

—

Assets of consolidated VIEs:

Private equity

116

1

—

(12
)

—

—

—

105

1

Bank loans⁽⁴⁾

—

—

—

—

44

—

—

44

—

Total Assets of consolidated VIEs

116

1

—

(12
)

44

—

—

149

1

Total Level 3 assets

$
116

$
1

$
31

$
(12
)

$
44

$
—

$
(31
)

$
149

$
1

Liabilities:

Borrowings of consolidated VIEs⁽⁴⁾

$
—

$
—

$
—

$
—

$
44

$
—

$
—

$
44

$
—

Other liabilities⁽⁵⁾

236

(33
)

—

—

(10
)

—

—

259

(33
)
Total Level 3 liabilities

$
236

$
(33
)

$
—

$
—

$
34

$
—

$
—

$
303

$
(33
)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2020

(in millions)	December 31, 2019		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3			September 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	8	$	—		$	3	$	—		$	—		$	—	$	—		$	11	$	—
Total debt securities		8		—			3		—			—			—		—			11		—
Private equity		9		—			8		(7	)		—			—		—			10		—
Bank loans		177		—			36		(9	)		—			16		(3	)		217		—
Total investments	$	194	$	—		$	47	$	(16	)	$	—		$	16	$	(3	)	$	238	$	—
Liabilities:
Other liabilities⁽³⁾	$	388	$	(23	)	$	—	$	—		$	(150	)	$	—	$	—		$	261	$	(5	)
Total Level 3 liabilities	$	388	$	(23	)	$	—	$	—		$	(150	)	$	—	$	—		$	261	$	(5	)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2019

(in millions)	June 30, 2019		Realized and Unrealized Gains (Losses)		Purchases		Sales and Maturities		Issuances and other Settlements⁽¹⁾		Transfers into Level 3		Transfers out of Level 3			September 30, 2019		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	2	$	—	$	3	$	—	$	—	$	—	$	—		$	5	$	—
Total debt securities		2		—		3		—		—		—		—			5		—
Private equity		9		1		—		—		—		—		(1	)		9		1
Bank loans		125		—		32		—		—		—		—			157		—
Total investments		136		1		35		—		—		—		(1	)		171		1
Total Level 3 assets	$	136	$	1	$	35	$	—	$	—	$	—	$	(1	)	$	171	$	1
Liabilities:
Other liabilities⁽³⁾	$	310	$	1	$	—	$	—	$	44	$	—	$	—		$	353	$	1
Total Level 3 liabilities	$	310	$	1	$	—	$	—	$	44	$	—	$	—		$	353	$	1

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2019

(in millions)	December 31, 2018		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities		Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3⁽²⁾			September 30, 2019		Total Net Unrealized Gains (Losses) Included in Earnings⁽³⁾
Assets:
Investments:
Debt securities:
Trading	$	4	$	—		$	5	$	—	$	—		$	—	$	(4	)	$	5	$	—
Total debt securities		4		—			5		—		—			—		(4	)		5		—
Private equity		82		—			—		—		—			—		(73	)		9		—
Bank loans⁽⁴⁾		70		—			87		—		—			—		—			157		—
Total investments		156		—			92		—		—			—		(77	)		171		—
Total Level 3 assets	$	156	$	—		$	92	$	—	$	—		$	—	$	(77	)	$	171	$	—
Liabilities:
Other liabilities⁽⁴⁾	$	371	$	(18	)	$	—	$	—	$	(36	)	$	—	$	—		$	353	$	(18	)
Total Level 3 liabilities	$	371	$	(18	)	$	—	$	—	$	(36	)	$	—	$	—		$	353	$	(18	)

Realized and Unrealized Gains (Losses) for Level 3 Assets and Liabilities. Realized and unrealized gains (losses) recorded for Level 3 assets and liabilities are reported in nonoperating income (expense) on the condensed consolidated statements of income. A portion of net income (loss) for consolidated sponsored investment funds is allocated to noncontrolling interests to reflect net income (loss) not attributable to the Company.

Transfers in and/or out of Levels. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable, or when the carrying value of certain equity method investments no longer represents fair value as determined under valuation methodologies.

Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below:

	September 30, 2019				December 31, 2018						September 30, 2020				December 31, 2019
(in millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Financial Assets⁽¹⁾:
Cash and cash equivalents	$	4,476	$	4,476	$	6,302	$	6,302	Level 1	^{(2) (3)}	$	6,507	$	6,507	$	4,829	$	4,829	Level 1	^{(2) (3)}
Cash and cash equivalents of consolidated VIEs	$	131	$	131	$	186	$	186	Level 1	^{(2) (3)}
Other assets	$	61	$	61	$	18	$	18	Level 1	^{(2) (4)}	$	41	$	41	$	68	$	68	Level 1	⁽⁴⁾

Financial Liabilities:
Long-term borrowings	$	5,932	$	6,257	$	4,979	$	5,034	Level 2	⁽⁵⁾	$	7,227	$	7,857	$	4,955	$	5,254	Level 2	⁽⁵⁾
Other liabilities	$	250	$	250	$	—	$	—	Level 3	⁽⁶⁾

As a practical expedient to value certain investments that do not have a readily determinable fair value and have attributes of an investment company, the Company uses NAV as the fair value. The following tables list information regarding all investments in entities that use a fair value measurement to account for both their financial assets and financial liabilities in their calculation of a NAV per share (or equivalent).

September 30, 2019

September 30, 2020

(in millions)

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Equity method:⁽¹⁾

Hedge funds/funds of hedge funds

(a)

206

111

Daily/Monthly (28%)

Quarterly (17%)

N/R (55%)

1 – 90 days

(a)

266

107

Daily/Monthly (23%)

Quarterly (20%)

N/R (57%)

1 – 90 days

Private equity funds

(b)

260

204

N/R

(b)

285

253

N/R

Real assets funds

(c)

320

109

Quarterly (61%)

N/R (39%)

60 days

(c)

234

216

Quarterly (41%)

N/R (59%)

60 days

Other

N/R

Consolidated VIEs:

Consolidated sponsored investment

products:

Private equity funds of funds

(d)

N/R

(d)

N/R

Hedge fund

(a)

—

Quarterly

90 days

(a)

—

Quarterly

90 days

Real assets funds

(c)

101

N/R

(c)

101

N/R

Total

887

546

887

690

December 31, 2018

December 31, 2019

(in millions)

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Equity method:⁽¹⁾

Hedge funds/funds of hedge funds

(a)

173

Daily/Monthly (30%)

Quarterly (18%)

N/R (52%)

1 – 90 days

(a)

220

120

Daily/Monthly (27%)

Quarterly (15%)

N/R (58%)

1 – 90 days

Private equity funds

(b)

116

N/R

(b)

248

212

N/R

Real assets funds

(c)

353

Quarterly (68%)

N/R (32%)

60 days

(c)

296

120

Quarterly (57%)

N/R (43%)

60 days

Other

Daily (80%)

N/R (20%)

5 days

N/R

Consolidated VIEs:

Consolidated sponsored investment

products:

Private equity funds of funds

(d)

N/R

(d)

N/R

Hedge fund

(a)

—

Quarterly

90 days

(a)

—

Quarterly

90 days

Real assets funds

(c)

N/R

(c)

N/R

Total

762

343

872

553

At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the Company elected the fair value option for certain investments in CLOs of approximately ~~$33~~$32 million and ~~$32~~$37 million, respectively, reported within investments.

In addition, the Company elected the fair value option for bank loans and borrowings of a consolidated CLO, recorded within investments and ~~borrowings of consolidated VIEs,~~other liabilities, respectively. The following table summarizes the information related to these bank loans and borrowings at September 30, ~~2019~~2020 and December 31, ~~2018:~~2019:

	September 30,		December 31,		September 30,		December 31,
(in millions)	2019		2018		2020		2019
CLO Bank loans:
Aggregate principal amounts outstanding	$	183	$	84	$	231	$	204
Fair value		183		84		226		204
Aggregate unpaid principal balance in excess of (less than) fair value	$	—	$	—	$	5	$	—

CLO Borrowings:
Aggregate principal amounts outstanding	$	186	$	84	$	249	$	195
Fair value	$	186	$	84	$	233	$	195

At September 30, ~~2019,~~2020, the principal amounts outstanding of the borrowings issued by the CLOs mature in 2030.

During the three and nine months ended September 30, ~~2019~~2020 and ~~December 31, 2018,~~2019, the net gains (losses) from the change in fair value of the bank loans and borrowings held by the consolidated CLO were not material and were recorded in net gain (loss) on ~~consolidated VIEs on~~ the condensed consolidated statements of income. The change in fair value of the assets and liabilities included interest income and expense, respectively.

The Company maintains a program to enter into swaps to hedge against market price and interest rate exposures with respect to certain seed investments in sponsored investment products. At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the Company had outstanding total return swaps with aggregate notional values of approximately ~~$533~~$735 million and ~~$483~~$644 million, respectively.

At both September 30, 2019 and December 31, 2018, the Company had a derivative providing credit protection of approximately $17 million to a counterparty, representing the Company’s maximum risk of loss with respect to the provision of credit protection. The Company carries the derivative at fair value based on the expected discounted future cash outflows under the arrangement.

The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange movements. At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the Company had outstanding forward foreign currency exchange contracts with aggregate notional values of approximately ~~$2.4~~$4.1 billion and $~~2.2~~3.4 billion, respectively and with expiration dates in October 2020 and January 2020, respectively.

At both September 30, 2020 and December 31, 2019, the Company had a derivative providing credit protection with a notional amount of approximately $17 million to a counterparty, representing the Company’s maximum risk of loss with respect to the derivative. The Company carries the derivative at fair value based on the expected discounted future cash outflows under the arrangement.

The following table presents the fair values of derivative instruments recognized in the condensed consolidated statements of financial condition at September 30, 2020:

The fair values of the outstanding total return swaps ~~credit default swap~~ and forward foreign currency exchange contracts were not material to the condensed consolidated statement of financial condition at ~~both September 30, 2019 and~~ December 31, ~~2018.~~2019.

The following table presents realized and unrealized gains (losses) recognized in the condensed consolidated statements of income on derivative instruments:

			Three Months Ended						Nine Months Ended								Three Months Ended						Nine Months Ended
			September 30,						September 30,								September 30,						September 30,
(in millions)			2019			2018			2019			2018					2020			2019			2020			2019
Derivative Instruments		Statement of Income Classification	Gains (Losses)						Gains (Losses)							Statement of Income Classification	Gains (Losses)						Gains (Losses)

Total return swaps		Nonoperating income (expense)	$	2		$	(12	)	$	(62	)	$	(5	)		Nonoperating income (expense)	$	(42	)	$	2		$	9		$	(62	)
Forward foreign currency exchange contracts		General and administration expense		(43	)		(27	)		(56	)		(90	)		General and administration expense		64			(43	)		(34	)		(56	)
Total gain (loss) from derivative instruments	Total gain (loss) from derivative instruments		$	(41	)	$	(39	)	$	(118	)	$	(95	)	Total gain (loss) from derivative instruments		$	22		$	(41	)	$	(25	)	$	(118	)

The Company consolidates certain sponsored investment funds, which may utilize derivative instruments as a part of the funds’ investment strategies. The ~~change~~changes in fair value of such derivatives, which isare recorded in nonoperating income (expense), ~~was~~were not material for the three and nine months ended September 30, ~~2019~~2020 and ~~2018.~~2019.

See Note ~~13,~~15, Borrowings, in the ~~2018~~2019 Form 10-K for more information on the Company’s net investment hedge.

~~The following table presents components of lease cost included in general and administration expense on the condensed consolidated statement of income:~~

Goodwill activity during the nine months ended September 30, ~~2019~~2020 was as follows:

The carrying amounts of identifiable intangible assets are summarized as follows:

The following table presents components of lease cost included in general and administration expense on the condensed consolidated statement of income:

The following table presents operating leases included on the condensed consolidated statement of financial condition:

At December 31, 2019, the Company accounted for its interest in PennyMac Financial Services, Inc. (“PennyMac”) as an equity method investment, which was included in other assets on the condensed consolidated statements of financial condition. The carrying value and market value of the Company’s interest (approximately 20% or 16 million shares) were approximately $451 million and $530 million, respectively, at December 31, 2019. The market value of the Company’s interest reflected the PennyMac stock price at December 31, 2019 (a Level 1 input).

On February 13, 2020, BlackRock announced the establishment of The BlackRock Foundation (the “Foundation”) and the contribution of its remaining 20% stake in PennyMac to the Foundation and the BlackRock Charitable Fund, which BlackRock established in 2013 (together, the “Charitable Contribution”). The Charitable Contribution resulted in an operating expense of $589 million, which was offset by a $122 million noncash, nonoperating pre-tax gain on the contributed shares and a tax benefit of $241 million in the condensed consolidated statement of income for the nine months ended September 30, 2020.

On March 10, 2020, in connection with a recapitalization of iCapital Network, Inc. (“iCapital”), BlackRock received additional stock in exchange for certain securities it held, which resulted in a nonoperating pre-tax gain of approximately $240 million in the condensed consolidated statement of income for the nine months ended September 30, 2020. Following this transaction, the Company accounts for its interest in iCapital as an equity method investment, which is included in other assets on the condensed consolidated statements of financial condition. At September 30, 2020, the carrying value of the Company’s interest in iCapital was approximately $297 million.

~~2019~~2020 Revolving Credit Facility. The Company’s credit facility has an aggregate commitment amount of $4.0 billion and was amended in March ~~2019~~2020 to extend the maturity date to March ~~2024~~2025 (the ~~“2019~~“2020 credit facility”). The ~~2019~~2020 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, increasing the overall size of the ~~2019~~2020 credit facility to an aggregate principal amount not to exceed $5.0 billion. Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread. The ~~2019~~2020 credit facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at September 30, ~~2019.~~2020. The ~~2019~~2020 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities. At September 30, ~~2019,~~2020, the Company had 0 amount outstanding under the 2020 credit facility.

Commercial Paper Program. The Company can issue unsecured commercial paper notes (the “CP Notes”) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $4.0 billion. The commercial paper program is currently supported by the ~~2019~~2020 credit facility. At September 30, ~~2019,~~2020, BlackRock had 0 CP Notes outstanding.

The carrying value and fair value of long-term borrowings determined using market prices and EUR/USD foreign exchange rate at September 30, ~~2019~~2020 included the following:

(in millions)	Maturity Amount		Unamortized Discount and Debt Issuance Costs			Carrying Value		Fair Value		Maturity Amount		Unamortized Discount and Debt Issuance Costs			Carrying Value		Fair Value
5.00% Notes due 2019	$	1,000	$	—		$	1,000	$	1,005
4.25% Notes due 2021		750		(1	)		749		778	$	750	$	—		$	750	$	769
3.375% Notes due 2022		750		(2	)		748		781		750		(2	)		748		787
3.50% Notes due 2024		1,000		(4	)		996		1,066		1,000		(3	)		997		1,102
1.25% Notes due 2025		763		(5	)		758		818		821		(3	)		818		868
3.20% Notes due 2027		700		(5	)		695		741		700		(5	)		695		794
3.25% Notes due 2029		1,000		(14	)		986		1,068		1,000		(12	)		988		1,155
2.40% Notes due 2030											1,000		(7	)		993		1,086
1.90% Notes due 2031											1,250		(12	)		1,238		1,296
Total Long-term Borrowings	$	5,963	$	(31	)	$	5,932	$	6,257	$	7,271	$	(44	)	$	7,227	$	7,857

~~2029~~2030 Notes. In ~~April 2019,~~ January 2020, the Company issued ~~$1.0~~$1 billion in aggregate principal amount of ~~3.25%~~2.40% senior unsecured and unsubordinated notes maturing on April 30, ~~2029~~2030 (the ~~“2029~~“2030 Notes”). The net proceeds of the 2030 Notes were used for general corporate purposes. Interest of approximately $24 million per year is payable semi-annually on April 30 and October 30 of each year, ~~commencing October~~which commenced on April 30, ~~2019, and is approximately $33 million per year.~~2020. The ~~2029~~2030 Notes may be redeemed prior to January 30, ~~2029~~2030 in whole or in part at any time, at the option of the Company, at a “make-whole” redemption price or at ~~par~~100% of the principal amount of the 2030 Notes thereafter. The unamortized discount and debt issuance costs are being amortized over the remaining term of the ~~2029~~2030 Notes.

2031 Notes. In April 2020, the Company issued $1.25 billion in aggregate principal amount of 1.90% senior unsecured and unsubordinated notes maturing on January 28, 2031 (the “2031 Notes”). The net proceeds of the 2031 Notes are being used for general corporate purposes, which may include the future repayment of all or a portion of the $750 million 4.25% Notes due May 2021. Interest of approximately $24 million per year is payable semi-annually on January 28 and July 28 of each year, which commenced on July 28, 2020. The 2031 Notes may be redeemed prior to October 28, 2030 in whole or in part at any time, at the option of the Company, at a “make-whole” redemption price or at 100% of the principal amount of the 2031 Notes thereafter. The unamortized discount and debt issuance costs are being amortized over the remaining term of the 2031 Notes.

See Note ~~13,~~15, Borrowings, in the ~~2018~~2019 Form 10-K for more information regarding the Company’s borrowings.

Investment Commitments. At September 30, ~~2019,~~2020, the Company had ~~$533~~$703 million of various capital commitments to fund sponsored investment ~~funds,~~products, including consolidated ~~VIEs.~~sponsored investment products. These ~~funds~~products include private equity funds, real assets funds and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the condensed consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients.

~~Lease Commitment.~~ As of September 30, 2019, there were no material changes to the lease commitments as reported in the 2018 Form 10-K. At December 31, 2018, future minimum commitments under the operating leases were as follows:

In May 2017, the Company entered into an agreement with 50 HYMC Owner LLC, for the lease of approximately 847,000 square feet of office space located at 50 Hudson Yards, New York, New York. The term of the lease is twenty years from the date that rental payments begin, expected to occur in May 2023, with the option to renew for a specified term. The lease requires annual base rental payments of approximately $51 million per year during the first five years of the lease term, increasing every five years to $58 million, $66 million and $74 million per year (or approximately $1.2 billion in base rent over its twenty-year term).

Contingent Payments Related to Business Acquisitions. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to achieving specified performance targets, which may include revenue related to acquired contracts or new capital commitments for certain products. The fair value of the remaining aggregate contingent payments at September 30, ~~2019~~2020 totaled ~~$167~~$28 million and is included in other liabilities on the condensed consolidated statements of financial condition.

Other Contingent Payments. The Company acts as the portfolio manager in a series of derivative ~~transaction~~transactions and has a maximum potential exposure of $17 million between the Company and counterparty. See Note 9, Derivatives and Hedging, for further discussion.

Legal Proceedings. From time to time, BlackRock receives subpoenas or other requests for information from various US federal and state governmental and regulatory authorities and international governmental and regulatory authorities in connection with industry-wide or other investigations or proceedings. It is BlackRock’s policy to cooperate fully with such matters. The Company, certain of its subsidiaries and employees have been named as defendants in various legal actions, including arbitrations and other litigation arising in connection with BlackRock’s activities. Additionally, BlackRock-advised investment portfolios may be subject to lawsuits, any of which potentially could harm the investment returns of the applicable portfolio or result in the Company being liable to the portfolios for any resulting damages.

BlackRock International Limited under the caption In re BlackRock Mutual Funds Advisory Fee Litigation. In the lawsuit, which ~~purports~~purported to be brought derivatively on behalf of the Funds, the plaintiffs ~~allege~~alleged that the defendants violated Section 36(b) of the Investment Company Act by receiving allegedly excessive investment advisory fees from the Funds. On June 13, 2018, the court granted in part and denied in part the defendants’ motion for summary judgment. On July 25, 2018, the plaintiffs served a pleading that supplemented the time period of their alleged damages to run through the date of trial. The lawsuit ~~seeks,~~sought, among other things, to recover on behalf of the Funds all allegedly excessive advisory fees received by the defendants beginning twelve months preceding the start of the lawsuit with respect to each Fund and ending on the date of judgment, along with purported lost investment returns on those amounts, plus interest. The trial on the remaining issues was completed on August 29, 2018. On February 8, 2019, the court issued an order dismissing the claims in their entirety. On May 28, 2020, the Third Circuit Court of Appeals affirmed the trial court’s summary judgment and trial rulings. On June 26, 2020, Plaintiffs petitioned the appeals court for a rehearing, which was denied July 9, 2020. The ~~plaintiffs filed a notice of~~plaintiffs’ deadline to seek further appeal ~~on March 8, 2019, which remains pending. The defendants believe the claims in~~has passed. Consequently, BlackRock now considers this ~~lawsuit are without merit.~~matter closed.

On June 16, 2016, iShares Trust, BlackRock, Inc. and certain of its advisory subsidiaries, and the directors and certain officers of the iSharesETFs were named as defendants in a purported class action lawsuit filed in California state court. The lawsuit was filed by investors in certain iShares ETFs (the "ETFs"), and ~~alleges~~alleged the defendants violated the federal securities laws by failing to adequately disclose in prospectuses issued by the ETFs the risks to the ETFs’ shareholders in the event of a "flash crash." The plaintiffs ~~seek~~sought unspecified monetary and rescission damages. The plaintiffs’ complaint was dismissed in December 2016 and on January 6, 2017, the plaintiffs filed an amended complaint. On April 27, 2017, the court partially granted the defendants’ motion for judgment on the pleadings, dismissing certain of the plaintiffs’ claims. On September 18, 2017, the court issued a decision dismissing the remainder of the lawsuit after a one-day bench trial. On December 1, 2017, the plaintiffs appealed the dismissal of their lawsuit ~~which remains pending.~~and, on January 23, 2020, the California Court of Appeal affirmed the trial court’s dismissal. On May 27, 2020, the California Supreme Court denied plaintiffs’ petition for further review of the appeal. The ~~defendants believe the claims in~~plaintiffs’ deadline to seek further appeal has passed. Consequently, BlackRock now considers this ~~lawsuit are without merit.~~matter closed.

October 18, 2017, the plaintiffs filed an Amended Complaint, which, among other things, added as defendants certain current and former members of the BlackRock Retirement and Investment Committees. The Amended Complaint also included a new purported class claim on behalf of investors in certain ~~Collective Trust Funds (“CTFs”)~~CTFs managed by BTC. Specifically, the plaintiffs allege that BTC, as fiduciary to the CTFs, engaged in self-dealing by, most significantly, selecting itself as the securities lending agent on terms that the plaintiffs claim were excessive. The Amended Complaint also alleged that BlackRock took undue risks in its management of securities lending cash reinvestment vehicles during the financial crisis. On August 23, 2018, the court granted permission to the plaintiffs to file a Second Amended Complaint (“SAC”) which added as defendants the BlackRock, Inc. Management Development and Compensation Committee, the Plan’s independent investment consultant and the Plan’s Administrative Committee and its members. On October 22, 2018, BlackRock filed a motion to dismiss the SAC, and on June 3, 2019, the plaintiffs filed a motion seeking to certify both the Plan and the CTF classes. On September 3, 2019, the court granted BlackRock’s motion to dismiss part of the plaintiffs’ claim seeking to recover alleged losses in the securities lending vehicles but denied the motion to dismiss in all other respects. ~~Plaintiffs’~~On February 11, 2020, the court denied the plaintiffs’ motion to certify the CTF class and granted their motion to certify the Plan ~~and CTF classes remains pending.~~class. On April 27, 2020, the Ninth Circuit denied the plaintiffs’ request to immediately appeal the class certification ruling. On September 24, 2020, the parties cross-moved for summary judgment. Any issues remaining in the case after the court rules on the summary judgment motions will be resolved at a trial, currently scheduled to begin on March 1, 2021. The defendants believe the claims in this lawsuit are without merit.

Management, after consultation with legal counsel, currently does not anticipate that the aggregate liability arising out of regulatory matters or lawsuits will have a material effect on BlackRock’s results of operations, financial position, or cash flows. However, there is no assurance as to whether any such pending or threatened matters will have a material effect on BlackRock’s results of operations, financial position or cash flows in any future reporting period. Due to uncertainties surrounding the outcome of these matters, management cannot reasonably estimate the possible loss or range of loss that may arise from these matters.

Indemnifications. In the ordinary course of business or in connection with certain acquisition agreements, BlackRock enters into contracts pursuant to which it may agree to indemnify third parties in certain circumstances. The terms of these indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined or the likelihood of any liability is considered remote. Consequently, no liability has been recorded on the condensed consolidated statements of financial condition.

In connection with securities lending transactions, BlackRock has ~~issued certain indemnifications~~agreed to indemnify certain securities lending clients against potential loss resulting from a borrower’s failure to fulfill its obligations under the securities lending agreement should the value of the collateral pledged by the borrower at the time of default be insufficient to cover the borrower’s obligation under the securities lending agreement. AtThe amount of securities on loan as of September 30, ~~2019,~~2020 and subject to this type of indemnification was $249 billion. In the ~~Company indemnified certain of its clients for their securities~~Company’s capacity as lending ~~loan balances of approximately $211 billion. The Company held, as~~ agent, cash and securities totaling ~~$225~~$265 billion were held as collateral for indemnified securities on loan at September 30, ~~2019.~~2020. The fair value of these indemnifications was not material at September 30, ~~2019.~~2020.

The table below presents detail of revenue for the three and nine months ended September 30, 2020 and 2019 and ~~2018. See Note 2,~~ ~~Significant Accounting Policies, in~~includes the ~~2018 Form 10-K for more information on the Company’s~~product mix of investment advisory, administration fees and securities lending revenue ~~recognition.~~(collectively “base fees”) and performance fees.

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions)	2019		2018		2019		2018		2020		2019		2020		2019
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	391	$	405	$	1,151	$	1,269	$	457	$	391	$	1,236	$	1,151
iShares ETFs		872		885		2,589		2,722		880		872		2,551		2,589
Non-ETF Index		168		169		495		532		164		168		505		495
Equity subtotal		1,431		1,459		4,235		4,523		1,501		1,431		4,292		4,235
Fixed income:
Active		496		460		1,427		1,374		498		496		1,443		1,427
iShares ETFs		251		205		705		620		297		251		817		705
Non-ETF Index		98		98		293		292		113		98		354		293
Fixed income subtotal		845		763		2,425		2,286		908		845		2,614		2,425
Multi-asset		288		298		852		889		289		288		852		852
Alternatives:
Illiquid alternatives		122		89		350		249		140		122		416		350
Liquid alternatives		105		96		301		290		132		105		361		301
Currency and commodities⁽¹⁾		30		24		78		75		51		30		118		78
Alternatives subtotal		257		209		729		614		323		257		895		729
Long-term		2,821		2,729		8,241		8,312
Long-Term										3,021		2,821		8,653		8,241
Cash management		159		154		447		462		204		159		593		447
Total base fees		2,980		2,883		8,688		8,774		3,225		2,980		9,246		8,688
Investment advisory performance fees:
Equity		1		7		5		68		4		1		29		5
Fixed income		—		—		2		2		9		—		13		2
Multi-asset		1		1		7		15		10		1		13		7
Alternatives:
Illiquid alternatives		5		20		40		22		6		5		55		40
Liquid alternatives		114		123		157		205		503		114		575		157
Alternatives subtotal		119		143		197		227		509		119		630		197
Total performance fees		121		151		211		312		532		121		685		211
Technology services revenue		259		200		700		582		282		259		834		700
Distribution fees:
Retrocessions		166		168		491		541		188		166		519		491
12b-1 fees (US mutual fund distribution fees)		90		102		267		313		85		90		254		267
Other		14		9		41		30		15		14		44		41
Total distribution fees		270		279		799		884		288		270		817		799
Advisory and other revenue:
Advisory		21		26		62		80		14		21		48		62
Other		41		37		102		132		28		41		97		102
Total advisory and other revenue		62		63		164		212		42		62		145		164
Total revenue	$	3,692	$	3,576	$	10,562	$	10,764	$	4,369	$	3,692	$	11,727	$	10,562

The tables below present the investment advisory, administration fees and securities lending revenue by client type and investment ~~style, respectively:~~style:

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions)	2019		2018		2019		2018		2020		2019		2020		2019
By client type:
Retail	$	862	$	860	$	2,534	$	2,573	$	938	$	862	$	2,635	$	2,534
iShares ETFs		1,151		1,113		3,370		3,414		1,228		1,151		3,487		3,370
Institutional:
Active		558		504		1,595		1,542		594		558		1,714		1,595
Index		250		252		742		783		261		250		817		742
Total institutional		808		756		2,337		2,325		855		808		2,531		2,337
Long-term		2,821		2,729		8,241		8,312
Long-Term										3,021		2,821		8,653		8,241
Cash management		159		154		447		462		204		159		593		447
Total	$	2,980	$	2,883	$	8,688	$	8,774	$	3,225	$	2,980	$	9,246	$	8,688

By investment style:
Active	$	1,401	$	1,346	$	4,073	$	4,063	$	1,511	$	1,401	$	4,292	$	4,073
Index and iShares ETFs		1,420		1,383		4,168		4,249		1,510		1,420		4,361		4,168
Long-term		2,821		2,729		8,241		8,312
Long-Term										3,021		2,821		8,653		8,241
Cash management		159		154		447		462		204		159		593		447
Total	$	2,980	$	2,883	$	8,688	$	8,774	$	3,225	$	2,980	$	9,246	$	8,688

Investment advisory and administration fees – remaining performance obligation

The tables below present estimated investment advisory and administration fees expected to be recognized in the future related to the unsatisfied portion of the performance obligations at September 30, ~~2019~~2020 and ~~2018:~~2019:

The table below presents changes in the deferred carried interest liability, ~~(including the portion related to consolidated VIEs),~~ which is included in other ~~liabilities/other~~ liabilities ~~of consolidated VIEs~~ on the condensed consolidated statements of financial condition, for the three and nine months ended September 30, ~~2019~~2020 and ~~2018:~~2019:

	Three Months Ended					Nine Months Ended						Three Months Ended				Nine Months Ended
	September 30,					September 30,						September 30,				September 30,
(in millions)	2019		2018			2019			2018			2020		2019		2020			2019
Beginning balance	$	365	$	242		$	293		$	219		$	418	$	365	$	483		$	293
Net increase (decrease) in unrealized allocations		17		17			116			44			29		17		4			116
Performance fee revenue recognized		—		(2	)		(27	)		(6	)		—		—		(40	)		(27	)
Other		6		—			6			—			—		6		—			6
Ending balance	$	388	$	257		$	388		$	257		$	447	$	388	$	447		$	388

The tables below present estimated technology services revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligations at September 30, ~~2019~~2020 and ~~2018:~~2019:

In addition to amounts disclosed in the tables above, certain technology services contracts require fixed minimum fees, which are billed on a monthly or quarterly basis in arrears. The Company recognizes such revenue as services are performed. As of September 30, ~~2019 and 2018,~~2020, the estimated fixed minimum fees for ~~currently outstanding contracts approximated $156 million and $133 million for~~ the remainder of ~~each respective year.~~the year approximated $170 million. The term for these contracts, which are either in their initial or renewal period, ranges from one to five years.

The table below presents changes in the technology services deferred revenue liability for the three and nine months ended September 30, 2020 and 2019, which is included in other liabilities on the condensed consolidated statements of financial ~~condition, for the three and nine months ended September 30, 2019 and 2018:~~condition:

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions)	2019			2018			2019			2018			2020			2019			2020			2019
Beginning balance	$	100		$	64		$	70		$	62		$	108		$	100		$	116		$	70
Acquisition, net of revenue recognized⁽¹⁾		—			—			24			—
Acquisition⁽¹⁾⁽²⁾														—			—			—			24
Additions(2)		8			11			31			31			30			8			88			31
Revenue recognized that was included in the beginning balance		(21	)		(10	)		(38	)		(28	)		(33	)		(21	)		(99	)		(38	)
Ending balance	$	87		$	65		$	87		$	65		$	105		$	87		$	105		$	87

Restricted stock and restricted stock units (“RSUs”) activity for the nine months ended September 30, ~~2019~~2020 is summarized below.

Outstanding at	Restricted Stock and RSUs			Weighted- Average Grant Date Fair Value		Restricted Stock and RSUs			Weighted- Average Grant Date Fair Value
December 31, 2018		2,139,890		$	429.19
December 31, 2019							2,236,452		$	444.02
Granted		1,205,230		$	414.40		948,904		$	532.60
Converted		(1,001,009	)	$	377.41		(923,213	)	$	427.06
Forfeited		(60,961	)	$	426.45		(68,668	)	$	476.96
September 30, 2019⁽¹⁾		2,283,150		$	444.15
September 30, 2020							2,193,475		$	488.44

In January ~~2019,~~2020, the Company granted ~~674,206~~504,403 RSUs or shares of restricted stock to employees as part of ~~2018~~2019 annual incentive compensation that vest ratably over three years from the date of grant and ~~377,291~~393,161 RSUs or shares of restricted stock to employees that cliff vest 100% on January 31, ~~2022.~~2023. The Company values restricted stock and RSUs at their grant-date fair value as measured by BlackRock’s common stock price. The total fair market value of RSUs/restricted stock granted to employees during the nine months ended September 30, ~~2019~~2020 was ~~$499~~$505 million.

At September 30, ~~2019,~~2020, the intrinsic value of outstanding RSUs was ~~$1.0~~$1.2 billion, reflecting a closing stock price of ~~$445.64.~~$563.55.

At September 30, ~~2019,~~2020, total unrecognized stock-based compensation expense related to unvested RSUs was ~~$432~~$482 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.3 years.

Performance-based RSU activity for the nine months ended September 30, ~~2019~~2020 is summarized below.

In January ~~2019,~~2020, the Company granted ~~283,014~~238,478 performance-based RSUs to certain employees that cliff vest 100% on January 31, ~~2022.~~2023. These awards are amortized over a service period of three years. The number of shares distributed at vesting could be higher or lower than the original grant based on the level of attainment of predetermined Company performance measures. In January ~~2019,~~2020, the Company also granted ~~2,117~~30,600 additional RSUs related to prior awards to certain employees based on the attainment of Company performance measures during the performance period.

The Company initially values performance-based RSUs at their grant-date fair value as measured by BlackRock’s common stock price. The total grant-date fair market value of performance-based RSUs granted to employees during the nine months ended September 30, ~~2019~~2020 was ~~$117~~$139 million.

At September 30, ~~2019,~~2020, the intrinsic value of outstanding performance-based RSUs was ~~$338~~$395 million, reflecting a closing stock price of ~~$445.64.~~$563.55.

At September 30, ~~2019,~~2020, total unrecognized stock-based compensation expense related to unvested performance-based awards was ~~$131 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period 1.4 years.~~

~~See Note 16,~~ ~~Stock-Based Compensation,~~ ~~in the 2018 Form 10-K for more information on performance-based RSUs.~~

~~Long-Term Incentive Plans Funded by PNC.~~ Under a share surrender agreement, PNC committed to provide up to 4 million shares of BlackRock stock, held by PNC, to fund certain BlackRock long-term incentive plans, including performance-based and market performance-based RSUs. The share surrender agreement commits PNC to provide BlackRock Series C nonvoting participating preferred stock to fund the remaining committed shares. On January 31, 2019, PNC surrendered its remaining 143,458 shares to BlackRock and has completed its share delivery obligation in connection with the agreement.

~~Stock option activity for the nine months ended September 30, 2019 is summarized below.~~

~~At September 30, 2019, total unrecognized stock-based compensation expense related to unvested performance-based stock options was $140~~$158 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~4.2~~1.4 years.

See Note ~~16,~~18, Stock-Based Compensation, in the ~~2018~~2019 Form 10-K for more information on performance-based RSUs.

Stock option activity for the nine months ended September 30, 2020 is summarized below.

At September 30, 2020, total unrecognized stock-based compensation expense related to unvested performance-based stock options was $90 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 3.2 years.

See Note 18, Stock-Based Compensation, in the 2019 Form 10-K for more information on performance-based stock options.

The Company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions, which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions. As a result, such subsidiaries of the Company may be restricted in their ability to transfer cash between different jurisdictions and to their parents. Additionally, transfers of cash between international jurisdictions may have adverse tax consequences that could discourage such transfers.

At September 30, ~~2019,~~2020, the Company was required to maintain approximately ~~$1.8~~$2.2 billion in net capital in certain regulated subsidiaries, including ~~BlackRock Institutional Trust Company, N.A.~~BTC (a wholly owned subsidiary of the Company that is chartered as a national bank whose powers are limited to trust and other fiduciary activities and which is subject to regulatory capital requirements administered by the US Office of the Comptroller of the Currency), entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the United Kingdom, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.

The following table presents changes in accumulated other comprehensive income (loss) for the three and nine months ended September 30, ~~2019~~2020 and ~~2018:~~2019:

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions)	2019			2018			2019			2018			2020			2019			2020			2019
Beginning balance	$	(664	)	$	(575	)	$	(691	)	$	(432	)	$	(781	)	$	(664	)	$	(571	)	$	(691	)
Foreign currency translation adjustments⁽¹⁾		(120	)		(41	)		(93	)		(178	)		180			(120	)		(30	)		(93	)
Reclassification as a result of adoption of accounting guidance		—			—			—			(6	)
Ending balance	$	(784	)	$	(616	)	$	(784	)	$	(616	)	$	(601	)	$	(784	)	$	(601	)	$	(784	)

Nonvoting Participating Preferred Stock. The Company’s preferred shares authorized, issued and outstanding consisted of the following:

	September 30,		December 31,		September 30,		December 31,
	2019		2018		2020		2019
Series A
Shares authorized, $0.01 par value		20,000,000		20,000,000		20,000,000		20,000,000
Shares issued and outstanding		—		—		—		0
Series B
Shares authorized, $0.01 par value		150,000,000		150,000,000		150,000,000		150,000,000
Shares issued and outstanding⁽¹⁾		823,188		823,188		—		823,188
Series C
Shares authorized, $0.01 par value		6,000,000		6,000,000		6,000,000		6,000,000
Shares issued and outstanding⁽¹⁾		—		143,458
Shares issued and outstanding						—		0
Series D
Shares authorized, $0.01 par value		20,000,000		20,000,000		20,000,000		20,000,000
Shares issued and outstanding		—		—		—		0

May 2020 PNC Secondary Offering and Share Repurchase. On May 15, 2020, a subsidiary of The PNC Financial Services Group, Inc. (“PNC”) completed the secondary offering of 31,628,573 shares of the Company’s common stock at a price of $420 per share, which included 823,188 shares of common stock issued upon the conversion of the Company’s Series B Convertible Participating Preferred Stock and 2,875,325 shares of common stock under the fully exercised underwriters’ option to purchase additional shares. Also on May 15, 2020, PNC completed the sale of 2,650,857 shares to the Company at a price of $414.96 per share. The shares repurchased by the Company were in addition to the share repurchase authorization under the Company’s existing share repurchase program. The secondary offering and the Company’s share repurchase resulted in PNC’s exit of its entire ownership position in the Company, other than 500,000 shares that PNC contributed to The PNC Foundation.

Share Repurchases. During the nine months ended September 30, ~~2019,~~2020, the Company repurchased ~~4.0~~0.8 million common shares in open market transactions under the share repurchase program for approximately ~~$1.7 billion, including a $1.3 billion private transaction that closed on March 25, 2019.~~$412 million. At September 30, ~~2019,~~2020, there were ~~5.9~~5.1 million shares still authorized to be repurchased.

~~PNC Capital Contribution~~. On January 31, 2019, PNC surrendered to BlackRock its remaining 143,458 of BlackRock Series C Preferred shares and has completed its share delivery obligation in connection with its share surrender agreement.

A restructuring charge of $60 million ($47 million after-tax), comprised of $53 million of severance and $7 million of expense related to the accelerated amortization of previously granted equity compensation awards, was recorded in the fourth quarter of 2018 in connection with an initiative to modify the size and shape of the workforce.

~~The table below presents a rollforward of the Company’s restructuring liability, which is included in other liabilities on the condensed consolidated statements of financial condition, for~~ During the nine months ended September 30, ~~2019:~~2020, the Company has repurchased an aggregate of approximately $1.5 billion of common shares, including the repurchase from PNC described above.

The nine months ended September 30, ~~2019~~2020 income tax expense included ~~$22~~discrete tax benefit of $241 million recognized in connection with the Charitable Contribution and $78 million of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of ~~2019.~~2020.

~~The three months ended September 30, 2018 income~~Income tax expense ~~included $90 million of discrete tax benefits, primarily related to changes in~~for the ~~Company’s organizational entity structure. The~~three and nine months ended September 30, ~~2018 income tax expense~~2020 also included ~~$58~~a $54 million ~~of discrete tax benefits~~noncash net expense related to ~~stock-based compensation awards that vested~~the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the ~~first quarter of 2018.~~United Kingdom increasing its corporate tax rate.

Due to the similarities in terms between BlackRock nonvoting participating preferred stock and the Company’s common stock, the Company considers its participating preferred stock to be a common stock equivalent for purposes of earnings per share (“EPS”) calculations. As such, the Company has included ~~the~~any outstanding nonvoting participating preferred stock in the calculation of average basic and diluted shares outstanding. As of September 30, 2020, there were 0 shares of preferred stock outstanding.

The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 under the treasury stock method:

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions, except shares and per share data)	2019		2018		2019		2018		2020		2019		2020		2019
Net income attributable to BlackRock	$	1,119	$	1,216	$	3,175	$	3,378	$	1,364	$	1,119	$	3,384	$	3,175
Basic weighted-average shares outstanding		155,280,877		160,141,506		156,290,212		160,786,768		152,488,073		155,280,877		153,816,544		156,290,212
Dilutive effect of nonparticipating RSUs and stock options		1,166,510		1,236,711		1,095,744		1,354,111
Dilutive effect of nonparticipating RSUs										1,254,191		1,166,510		1,143,268		1,095,744
Total diluted weighted-average shares outstanding		156,447,387		161,378,217		157,385,956		162,140,879		153,742,264		156,447,387		154,959,812		157,385,956
Basic earnings per share	$	7.21	$	7.59	$	20.31	$	21.01	$	8.94	$	7.21	$	22.00	$	20.31
Diluted earnings per share	$	7.15	$	7.54	$	20.17	$	20.83	$	8.87	$	7.15	$	21.84	$	20.17

The amount of anti-dilutive RSUs was immaterial for the three and nine months ended September 30, 2020 and 2019. In addition, performance-based RSUs and stock options are excluded from potential dilution until the designated performance conditions are met.

The Company’s management directs BlackRock’s operations as 1 business, the asset management business. The Company utilizes a consolidated approach to assess performance and allocate resources. As such, the Company operates in one business segment.

The following table illustrates total revenue for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the customer resides or affiliated services are provided.

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
(in millions)	September 30,				September 30,				September 30,				September 30,
Revenue	2019		2018		2019		2018		2020		2019		2020		2019
Americas	$	2,445	$	2,328	$	7,051	$	6,989	$	2,631	$	2,445	$	7,581	$	7,051
Europe		1,080		1,083		3,018		3,258		1,574		1,080		3,661		3,018
Asia-Pacific		167		165		493		517		164		167		485		493
Total revenue	$	3,692	$	3,576	$	10,562	$	10,764	$	4,369	$	3,692	$	11,727	$	10,562

See Note ~~15,~~16, Revenue, for further information on the Company’s sources of revenue.

The following table illustrates long-lived assets that consist of goodwill and property and equipment at September 30, ~~2019~~2020 and December 31, ~~2018~~2019 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located.

(in millions)	September 30,		December 31,		September 30,		December 31,
Long-lived Assets	2019		2018		2020		2019
Americas	$	13,797	$	13,780	$	13,805	$	13,830
Europe		1,337		303		1,355		1,360
Asia-Pacific		87		86		87		87
Total long-lived assets	$	15,221	$	14,169	$	15,247	$	15,277

Americas is primarily comprised of the United States, Latin America and Canada, while Europe is primarily comprised of the United Kingdom, the Netherlands and Luxembourg. Asia-Pacific is primarily comprised of Hong Kong, Australia, Japan and Singapore.

Elimination of Preferred Stock. As a result of PNC’s exit of its entire ownership position in the Company, on October 6, 2020, the Company filed a Certificate of Elimination to its Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) with the Secretary of State for the state of Delaware eliminating each of the Company’s Series A, B and C Convertible Participating Preferred Stock and Series D Participating Preferred Stock (collectively, the “Preferred Stock”). As of October 6, 2020 (the date of filing the Certificate of Elimination), there were 0 outstanding shares of the Preferred Stock.

The Company conducted a review for additional subsequent events and determined that no subsequent events had occurred that would require accrual or additional disclosures.

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

This report, 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 report, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) a pandemic or health crisis, including the COVID-19 pandemic, and its impact on financial institutions, the global economy or capital markets, as well as BlackRock’s products, clients, vendors and employees, and BlackRock’s results of operations, the full extent of which may be unknown; (2) the introduction, withdrawal, success and timing of business initiatives and strategies; ~~(2)~~(3) 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 (“AUM”); ~~(3)~~(4) the relative and absolute investment performance of BlackRock’s investment products; ~~(4)~~(5) BlackRock’s ability to develop new products and services that address client preferences; (6) the impact of increased competition; ~~(5)~~(7) the impact of future acquisitions or divestitures; ~~(6)~~(8) BlackRock’s ability to integrate acquired businesses successfully; (9) the unfavorable resolution of legal proceedings; ~~(7)~~(10) the extent and timing of any share repurchases; ~~(8)~~(11) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; ~~(9)~~(12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; ~~(10)~~(13) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to ~~BlackRock or The PNC Financial Services Group, Inc. (“PNC”); (11)~~BlackRock; (14) changes in law and policy and uncertainty pending any such changes; ~~(12)~~(15) 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)~~(16) the ability to attract and retain highly talented professionals; ~~(14)~~(17) fluctuations in the carrying value of BlackRock’s economic investments; ~~(15)~~(18) 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)~~(19) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; ~~(17)~~(20) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; ~~(18)~~(21) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds (“ETF”) platform; ~~(19)~~(22) 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)~~(23) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm with ~~$6.96~~$7.81 trillion of AUM at September 30, ~~2019.~~2020. With approximately ~~16,100~~16,600 employees in more than 30 countries, BlackRock provides a broad range of investment management and technology services to institutional and retail clients worldwide.

BlackRock’s diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares^® ETFs, separate accounts, collective ~~investment trusts~~trust funds and other pooled investment vehicles. BlackRock also offers technology services, including the investment and risk management technology platform, Aladdin^®, Aladdin Wealth, eFront, Cachematrix and FutureAdvisor, as well as advisory services and solutions to a broad base of institutional and wealth management clients.

BlackRock serves a diverse mix of institutional and retail clients across the globe. Clients include tax-exempt institutions, such as defined benefit and defined contribution pension plans, charities, foundations and endowments; official institutions, such as central banks, sovereign wealth funds, supranationals and other government entities; taxable institutions, including insurance companies, financial institutions, corporations and third-party fund ~~sponsors,~~sponsors; and retail investors.

BlackRock maintains a significant global sales and marketing presence that is focused on establishing and maintaining retail and institutional investment management and technology service relationships by marketing its services to investors directly and through third-party distribution relationships, including financial professionals and pension consultants.

~~At September 30, 2019,~~On May 15, 2020, a subsidiary of The PNC ~~held 22.0%~~Financial Services Group, Inc. (“PNC”) completed the secondary offering of 31,628,573 shares of the Company’s ~~voting~~ common stock ~~and 22.4%~~at a price of $420 per share, which included 823,188 shares of common stock issued upon the conversion of the Company’s ~~capital~~Series B Convertible Participating Preferred Stock and 2,875,325 shares of common stock ~~which includes outstanding common~~under the fully exercised underwriters’ option to purchase additional shares. Also on May 15, 2020, PNC completed the sale of 2,650,857 shares to the Company at a price of $414.96 per share. The shares repurchased by the Company were in addition to the share repurchase authorization under the Company’s existing share repurchase program. The secondary offering and ~~nonvoting preferred stock.~~the Company’s share repurchase resulted in PNC’s exit of its entire ownership position in the Company, other than 500,000 shares that PNC contributed to The PNC Foundation.

Certain ~~items previously reported have been~~prior period presentations and disclosures, while not required to be recast, were reclassified to ~~conform to the~~ensure comparability with current period classifications.

The COVID-19 pandemic continues to result in authorities taking numerous measures to contain the spread and impact of COVID-19, such as travel bans and restrictions, quarantines, shelter in place orders, and limitations on business activity, including closures. These measures may continue to, among other things, severely restrict global economic activity, which can disrupt supply chains, lower asset valuations, significantly increase unemployment and underemployment levels, decrease liquidity in markets for certain securities and cause significant volatility and disruption in the financial markets.

Towards the end of the first quarter of 2020 the pandemic began to impact our business. While global markets have recovered to varying degrees since then, the effects of the pandemic are ongoing, and such impact may continue in future quarters if conditions persist or worsen. Should current economic conditions persist or deteriorate, there may be an ongoing adverse effect on our business, including our operations and financial condition, as a result of, among other things:

The extent to which COVID-19, and the related global economic crisis, affect our business, results of operations and financial condition, will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and any recovery period, future actions taken by governmental authorities, central banks and other third parties (including new financial regulation and other regulatory reform) in response to the pandemic, and the effects on our products, clients, vendors and employees. BlackRock continues to service clients amid uncertainty and disruption linked to COVID-19 and is actively managing its business to respond to the impact.

Following the June 2016 vote to exit the European Union (“EU”), commonly referred to as Brexit, the United Kingdom (“UK”) ~~served notice under Article 50 of the Treaty on European Union on March 29, 2017 to initiate the process of exiting from~~left the EU ~~commonly referred to as "Brexit". At the Emergency EU Summit held~~ on ~~April 10, 2019,~~January 31, 2020 and entered an ~~agreement was reached to extend the deadline by~~eleven-month transition period during which the UK, ~~is required to exit~~and UK-based entities, will retain the rights and obligations of EU ~~to October 31, 2019. The deadline was further extended to January 31, 2020 at the European Council on October 29, 2019.~~membership.

Substantial uncertainty remains surrounding the ~~terms upon which the UK will ultimately exit the EU. The impact of Brexit will depend in part on any arrangements that are put in place~~future relationship between the UK and the EU, ~~and, to the extent they are, whether~~but the UK ~~continues to apply laws that are based on EU legislation. As~~government has indicated its preference for negotiating a ~~result, the UK’s relationship~~trade deal with the EU ~~remains unclear and~~before the ~~passage~~end of ~~time without a resolution in place has become a source of economic, political and regulatory instability.~~

the transition period rather than continuing Single Market or Customs Union membership. BlackRock is implementing a number of steps to prepare for various outcomes, including the potential failure of the UK and the EU to negotiate an agreement before the transition period expires. These steps, many of which are time consuming and costly, include effecting organizational, governance and operational changes, applying for and receiving licenses and permissions in the EU, and engaging in client ~~communications. These steps, many of which have been time-consuming~~communications, and ~~costly,~~ are expected to add complexity to BlackRock’s European operations. In addition, depending on the terms of the future relationship between the UK and the EU, BlackRock may experience further organizational and operational challenges and incur additional costs in connection with its European operations during the transition period and post-Brexit, which may impede the Company’s growth or impact its financial performance.

On ~~May 10, 2019,~~February 13, 2020, BlackRock announced the ~~Company acquired 100%~~establishment of The BlackRock Foundation (the “Foundation”) and the ~~equity interests~~contribution of ~~eFront Holding SAS~~its remaining 20% stake in PennyMac Financial Services, Inc. (“~~eFront Transaction” or “eFront”~~PennyMac”), to the Foundation and the BlackRock Charitable Fund, which BlackRock established in 2013 (together, the “Charitable Contribution”). The Charitable Contribution resulted in an operating expense of $589 million, which was offset by a ~~leading alternative investment management software~~$122 million noncash, nonoperating pre-tax gain on the contributed shares and ~~solutions provider~~a tax benefit of $241 million in the condensed consolidated statement of income for ~~approximately $1.3 billion, excluding~~ the ~~settlement of eFront’s outstanding debt.~~nine months ended September 30, 2020. The ~~acquisition of eFront expands~~ ~~Aladdin’s illiquid alternative capabilities~~Charitable Contribution provides long-term funding for BlackRock’s philanthropic investments and ~~enables BlackRock~~partnerships. The general and administration expense, nonoperating gain and associated tax benefit related to ~~provide individual alternative or whole-portfolio technology solutions to clients.~~the Charitable Contribution have been excluded from as adjusted results.

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions, except shares and per share data)	2019			2018			2019			2018			2020			2019			2020			2019
GAAP basis:
Total revenue	$	3,692		$	3,576		$	10,562		$	10,764		$	4,369		$	3,692		$	11,727		$	10,562
Total expense		2,190			2,180			6,549			6,553			2,612			2,190			7,880			6,549
Operating income	$	1,502		$	1,396		$	4,013		$	4,211		$	1,757		$	1,502		$	3,847		$	4,013
Operating margin		40.7	%		39.0	%		38.0	%		39.1	%		40.2	%		40.7	%		32.8	%		38.0	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests		(42	)		46			123			(4	)		71			(42	)		348			123
Income tax expense		(341	)		(226	)		(961	)		(829	)
Income tax benefit (expense)														(464	)		(341	)		(811	)		(961	)
Net income attributable to BlackRock	$	1,119		$	1,216		$	3,175		$	3,378		$	1,364		$	1,119		$	3,384		$	3,175
Diluted earnings per common share	$	7.15		$	7.54		$	20.17		$	20.83		$	8.87		$	7.15		$	21.84		$	20.17
Effective tax rate		23.3	%		15.7	%		23.2	%		19.7	%		25.4	%		23.3	%		19.3	%		23.2	%
As adjusted⁽¹⁾:
Operating income	$	1,502		$	1,400		$	4,013		$	4,221		$	1,757		$	1,502		$	4,436		$	4,013
Operating margin		46.0	%		44.2	%		43.7	%		44.5	%		47.0	%		46.0	%		44.3	%		43.7	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests	$	(42	)	$	46		$	123		$	(4	)	$	71		$	(42	)	$	226		$	123
Net income attributable to BlackRock	$	1,119		$	1,214		$	3,175		$	3,386		$	1,418		$	1,119		$	3,664		$	3,175
Diluted earnings per common share	$	7.15		$	7.52		$	20.17		$	20.88		$	9.22		$	7.15		$	23.64		$	20.17
Effective tax rate		23.3	%		16.0	%		23.2	%		19.7	%		22.5	%		23.3	%		21.4	%		23.2	%
Other:
Assets under management (end of period)	$	6,963,932		$	6,444,100		$	6,963,932		$	6,444,100		$	7,808,497		$	6,963,932		$	7,808,497		$	6,963,932
Diluted weighted-average common shares outstanding⁽²⁾		156,447,387			161,378,217			157,385,956			162,140,879			153,742,264			156,447,387			154,959,812			157,385,956
Common and preferred shares outstanding (end of period)		155,173,103			159,804,364			155,173,103			159,804,364
Shares outstanding (end of period)														152,496,403			155,173,103			152,496,403			155,173,103
Book value per share⁽³⁾	$	208.84		$	202.84		$	208.84		$	202.84		$	222.12		$	208.84		$	222.12		$	208.84
Cash dividends declared and paid per share	$	3.30		$	3.13		$	9.90		$	8.89		$	3.63		$	3.30		$	10.89		$	9.90

THREE MONTHS ENDED SEPTEMBER 30, ~~2019~~2020 COMPARED WITH THREE MONTHS ENDED SEPTEMBER 30, ~~2018~~2019

GAAP. Operating income of ~~$1,502~~$1,757 million increased ~~$106~~$255 million and operating margin of ~~40.7% increased 170~~40.2% decreased 50 bps from the third quarter of ~~2018.~~2019. Operating income and operating margin reflected higher ~~base~~performance fees and ~~technology services revenue,~~continued organic growth, partially offset by ~~lower performance fees~~higher employee compensation and ~~lower transaction-related~~benefits expense inand the ~~current quarter.~~impact of $83 million of product launch costs associated with the September 2020 close of the $2 billion BlackRock Capital Allocation Trust. Nonoperating income (expense) less net income (loss) attributable to noncontrolling interests (“NCI”) ~~decreased $88~~increased $113 million from the third quarter of ~~2018,~~2019, primarily driven by mark-to-market gains on un-hedged seed and co-investment capital.

Income tax expense for the third quarter of 2020 included a $54 million noncash net expense, related to the revaluation of certain ~~minority investments. Nonoperating results~~deferred tax assets and liabilities as a result of legislation enacted in the United Kingdom increasing its corporate tax rate.

Earnings per diluted common share increased $1.72, or 24%, from the third quarter of 2019, driven primarily by higher operating and nonoperating income and a lower diluted share count in the current quarter.

As Adjusted. Operating margin of 47.0% increased 100 bps from the third quarter of 2019. Income tax expense for the ~~three~~third quarter of 2020 excluded the $54 million noncash net expense described above. Earnings per diluted common share increased $2.07, or 27%, from the third quarter of 2019.

NINE MONTHS ENDED SEPTEMBER 30, 2020 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, 2019

GAAP.Operating income of $3,847 million decreased $166 million and operating margin of 32.8% decreased 520 bps from the nine months ended September 30, ~~2018 included~~2019. Operating income and operating margin reflected higher investment advisory, administration fees and securities lending revenue (collectively “base fees”), performance fees and technology services revenue, which were more than offset by higher expense, including the impact of $589 million related to the Charitable Contribution and higher product launch costs for the nine months ended September 30, 2020.

Nonoperating income (expense) less net income (loss) attributable to NCI increased $225 million from the nine months ended September 30, 2019, driven by the impact of a ~~$40~~pre-tax gain of approximately $240 million in connection with a recapitalization of iCapital Network, Inc. (“iCapital”) and $122 million pre-tax gain related to the ~~sale of~~Charitable Contribution, partially offset by lower mark-to-market gains on un-hedged seed capital investments for the ~~Company’s minority interest in DSP BlackRock Investment Managers Pvt. Ltd. to The DSP Group (“DSP Transaction”).~~nine months ended September 30, 2020.

~~Third quarter 2018 income~~Income tax expense for the nine months ended September 30, 2020 included ~~$90~~$78 million of discrete tax benefits, ~~primarily~~including benefits related to ~~changes~~stock-based compensation awards that vested in the ~~Company’s organizational entity structure.~~ first quarter of 2020. Income tax expense for the nine months ended September 30, 2020 included a discrete tax benefit of $241 million recognized in connection with the Charitable Contribution and a noncash net expense of approximately $54 million related to the legislation enacted in the United Kingdom described above. See Income Tax Expense within Discussion of Financial Results for more information.

Earnings per diluted common share ~~decreased $0.39, or 5%,~~increased $1.67 from the ~~third quarter of 2018,~~nine months ended September 30, 2019, reflecting ~~lower~~higher revenue and nonoperating income, ~~and~~ a ~~higher~~lower effective tax rate ~~in the current quarter, partially offset by higher operating income~~ and a lower diluted share count, partially offset by the impact of the Charitable Contribution and higher product launch costs for the nine months ended September 30, 2020.

As Adjusted. Operating income of ~~$1,502~~$4,436 million increased ~~$102~~$423 million and operating margin of ~~46.0%~~44.3% increased ~~180 bps from the third quarter of 2018. Earnings per diluted common share decreased $0.37, or 5%, from the third quarter of 2018~~.

~~NINE MONTHS ENDED SEPTEMBER 30, 2019 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, 2018~~

~~GAAP.Operating income of $4,013 million decreased $198 million and operating margin of 38.0% decreased 110~~60 bps from the nine months ended September 30, 2018. The decline in operating income and operating margin reflected lower base and performance fees, partially offset by higher technology services revenue and lower employee compensation and benefits and volume-related expense~~. Operating income for the nine months ended September 30, 2019 also included $61 million of product launch costs associated with the close~~ ~~of the $1.4 billion BlackRock Science and Technology Trust II, a closed-end active equity fund~~. Nonoperating income (expense) less net income (loss) attributable to NCI increased $127 million from the nine months ended September 30, 2018, driven by higher marks on unhedged seed capital investments and the revaluation of certain minority investments.~~Nonoperating results for the nine months ended September 30, 2018 included a $40 million pre-tax gain related to the DSP Transaction.~~

Income tax expense for the nine months ended September 30, 2019 and 2018 included $22 million and $58 million, respectively, of discrete tax benefits related to stock-based compensation awards that vested in the first quarter of each respective year. Income tax expense for the nine months ended September 30, 2018 also included the previously mentioned $90 million of discrete tax benefits. See ~~Income Tax Expense~~ ~~within~~ ~~Discussion of Financial Results~~ ~~for more information~~.

2019. Earnings per diluted common share ~~decreased $0.66,~~increased $3.47, or 3%17%, from the nine months ended September 30, ~~2018, driven~~2019, primarily bydue to higher operating and nonoperating income, a lower ~~operating income and a higher~~ effective tax rate ~~partially offset by higher nonoperating income~~ and a lower diluted share count.

~~As Adjusted.~~ ~~Operating income of $4,013 million decreased $208 million and operating margin of 43.7% decreased 80 bps from~~ in the nine months ended September 30, ~~2018. Earnings per diluted common share decreased $0.71, or 3%,~~2020. The financial impact related to the Charitable Contribution and legislation enacted in the UK increasing its tax rate has been excluded from ~~the nine months ended September 30, 2018~~.as adjusted results.

See Non-GAAP Financial Measures for further information on as adjusted items and the reconciliation to accounting principles generally accepted in the United States (“GAAP“).

For further discussion of BlackRock’s revenue, expense, nonoperating results and income tax expense, see Discussion of Financial Results herein.

BlackRock reports its financial results in accordance with 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.

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

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions)	2019			2018			2019			2018			2020			2019			2020			2019
Operating income, GAAP basis	$	1,502		$	1,396		$	4,013		$	4,211		$	1,757		$	1,502		$	3,847		$	4,013
Non-GAAP expense adjustment:
PNC LTIP funding obligation		—			4			—			10
Charitable Contribution														—			—			589			—
Operating income, as adjusted		1,502			1,400			4,013			4,221			1,757			1,502			4,436			4,013
Product launch costs and commissions		—			1			61			13			83			—			170			61
Operating income used for operating margin measurement	$	1,502		$	1,401		$	4,074		$	4,234		$	1,840		$	1,502		$	4,606		$	4,074
Revenue, GAAP basis	$	3,692		$	3,576		$	10,562		$	10,764		$	4,369		$	3,692		$	11,727		$	10,562
Non-GAAP adjustments:
Distribution fees		(270	)		(279	)		(799	)		(884	)		(288	)		(270	)		(817	)		(799	)
Investment advisory fees		(157	)		(129	)		(448	)		(371	)		(168	)		(157	)		(513	)		(448	)
Revenue used for operating margin measurement	$	3,265		$	3,168		$	9,315		$	9,509		$	3,913		$	3,265		$	10,397		$	9,315
Operating margin, GAAP basis		40.7	%		39.0	%		38.0	%		39.1	%		40.2	%		40.7	%		32.8	%		38.0	%
Operating margin, as adjusted		46.0	%		44.2	%		43.7	%		44.5	%		47.0	%		46.0	%		44.3	%		43.7	%

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. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance and to determine the long-term and annual compensation of the Company’s senior-level employees. Furthermore, this metric is used to evaluate the Company’s relative performance against industry peers, as it eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted:

Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure, for both management and investors, of BlackRock’s nonoperating results, which ultimately impact BlackRock’s book value. During the nine months ended September 30, 2020, the noncash, nonoperating pre-tax gain of $122 million related to the Charitable Contribution has been excluded from nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, due to its nonrecurring nature.

	Three Months Ended					Nine Months Ended					Three Months Ended				Nine Months Ended
	September 30,					September 30,					September 30,				September 30,
(in millions, except per share data)	2019		2018			2019		2018			2020		2019		2020		2019
Net income attributable to BlackRock, Inc., GAAP basis	$	1,119	$	1,216		$	3,175	$	3,378		$	1,364	$	1,119	$	3,384	$	3,175
Non-GAAP adjustments:
PNC LTIP funding obligation, net of tax		—		3			—		9
Charitable Contribution, net of tax												—		—		226		—
Income tax matters		—		(5	)		—		(1	)		54		—		54		—
Net income attributable to BlackRock, Inc., as adjusted	$	1,119	$	1,214		$	3,175	$	3,386		$	1,418	$	1,119	$	3,664	$	3,175
Diluted weighted-average common shares outstanding ~~(3)~~(4)		156.4		161.4			157.4		162.1			153.7		156.4		155.0		157.4
Diluted earnings per common share, GAAP basis ~~(3)~~(4)	$	7.15	$	7.54		$	20.17	$	20.83		$	8.87	$	7.15	$	21.84	$	20.17
Diluted earnings per common share, as adjusted ~~(3)~~(4)	$	7.15	$	7.52		$	20.17	$	20.88		$	9.22	$	7.15	$	23.64	$	20.17

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, and nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, for information on the ~~PNC LTIP funding obligation.~~Charitable Contribution.

~~For each period presented,~~The nine months ended September 30, 2020 included a discrete tax benefit of $241 million recognized in connection with the ~~non-GAAP adjustment related~~Charitable Contribution. The discrete tax benefit has been excluded from as adjusted results due to the ~~PNC LTIP funding obligation was tax effected at~~non-recurring nature of the ~~respective blended rates applicable to the adjustment.~~Charitable Contribution. 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 as a result of tax rate changes. ~~Amounts~~These 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)~~(4) Nonvoting participating preferred stock is considered to be a common stock equivalent for purposes of determining basic and diluted earnings per share calculations.

AUM for reporting purposes generally is based upon how investment advisory and administration fees are calculated for each portfolio. Net asset values, total assets, committed assets or other measures may be used to determine portfolio AUM.

AUM and Net Inflows (Outflows) by Client Type and Product Type	AUM and Net Inflows (Outflows) by Client Type and Product Type																AUM and Net Inflows (Outflows) by Client Type and Product Type
	AUM								Net inflows (outflows)								AUM								Net inflows (outflows)
	September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,			Nine Months Ended September 30,			Twelve Months Ended September 30,		September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,		Nine Months Ended September 30,			Twelve Months Ended September 30,
(in millions)	2019		2019		2018		2018		2019			2019			2019		2020		2020		2019		2019		2020		2020			2020
Retail	$	668,118	$	664,906	$	610,850	$	664,867	$	6,698		$	7,799		$	3,014	$	746,264	$	695,154	$	703,297	$	668,118	$	19,552	$	34,236		$	42,246
iShares ETFs		2,046,818		2,008,867		1,731,425		1,853,188		41,504			108,289			189,692		2,321,335		2,162,597		2,240,065		2,046,818		41,332		106,133			181,335
Institutional:
Active		1,283,064		1,272,532		1,079,979		1,129,315		(4,379	)		84,161			78,200		1,427,122		1,341,610		1,338,670		1,283,064		29,619		30,270			45,567
Index		2,453,181		2,413,191		2,103,230		2,351,785		8,437			36,375			9,310		2,641,408		2,482,336		2,599,882		2,453,181		7,101		(29,488	)		(28,961	)
Institutional subtotal		3,736,245		3,685,723		3,183,209		3,481,100		4,058			120,536			87,510		4,068,530		3,823,946		3,938,552		3,736,245		36,720		782			16,606
Long-term		6,451,181		6,359,496		5,525,484		5,999,155		52,260			236,624			280,216		7,136,129		6,681,697		6,881,914		6,451,181		97,604		141,151			240,187
Cash management		510,984		481,208		448,565		443,185		31,988			63,275			69,422		652,002		619,351		545,949		510,984		27,766		104,405			134,204
Advisory⁽¹⁾		1,767		1,778		1,769		1,760		(2	)		(2	)		33		20,366		16,901		1,770		1,767		3,331		18,350			18,353
Total	$	6,963,932	$	6,842,482	$	5,975,818	$	6,444,100	$	84,246		$	299,897		$	349,671	$	7,808,497	$	7,317,949	$	7,429,633	$	6,963,932	$	128,701	$	263,906		$	392,744

AUM and Net Inflows (Outflows) by Investment Style and Product Type	AUM and Net Inflows (Outflows) by Investment Style and Product Type																AUM and Net Inflows (Outflows) by Investment Style and Product Type
	AUM								Net inflows (outflows)								AUM								Net inflows (outflows)
	September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,			Nine Months Ended September 30,			Twelve Months Ended September 30,		September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,		Nine Months Ended September 30,			Twelve Months Ended September 30,
(in millions)	2019		2019		2018		2018		2019			2019			2019		2020		2020		2019		2019		2020		2020			2020
Active	$	1,865,437	$	1,853,393	$	1,617,780	$	1,713,576	$	741		$	89,327		$	77,042	$	2,072,673	$	1,943,828	$	1,947,222	$	1,865,437	$	47,059	$	56,675		$	77,242
Index and iShares ETFs		4,585,744		4,506,103		3,907,704		4,285,579		51,519			147,297			203,174		5,063,456		4,737,869		4,934,692		4,585,744		50,545		84,476			162,945
Long-term		6,451,181		6,359,496		5,525,484		5,999,155		52,260			236,624			280,216		7,136,129		6,681,697		6,881,914		6,451,181		97,604		141,151			240,187
Cash management		510,984		481,208		448,565		443,185		31,988			63,275			69,422		652,002		619,351		545,949		510,984		27,766		104,405			134,204
Advisory⁽¹⁾		1,767		1,778		1,769		1,760		(2	)		(2	)		33		20,366		16,901		1,770		1,767		3,331		18,350			18,353
Total	$	6,963,932	$	6,842,482	$	5,975,818	$	6,444,100	$	84,246		$	299,897		$	349,671	$	7,808,497	$	7,317,949	$	7,429,633	$	6,963,932	$	128,701	$	263,906		$	392,744

AUM and Net Inflows (Outflows) by Product Type	AUM and Net Inflows (Outflows) by Product Type																AUM and Net Inflows (Outflows) by Product Type
	AUM								Net inflows (outflows)								AUM								Net inflows (outflows)
	September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,			Nine Months Ended September 30,			Twelve Months Ended September 30,		September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,		Nine Months Ended September 30,			Twelve Months Ended September 30,
(in millions)	2019		2019		2018		2018		2019			2019			2019		2020		2020		2019		2019		2020		2020			2020
Equity	$	3,488,503	$	3,485,869	$	3,035,825	$	3,482,687	$	9,916		$	(10,246	)	$	18,047	$	3,784,118	$	3,519,225	$	3,820,329	$	3,488,503	$	2,168	$	916		$	39,517
Fixed income		2,267,431		2,191,130		1,884,417		1,883,806		34,990			225,304			228,403		2,531,465		2,411,092		2,315,392		2,267,431		70,362		95,257			133,531
Multi-asset		527,721		523,728		461,884		492,810		(605	)		3,932			11,229		598,246		551,362		568,121		527,721		13,980		13,616			28,572
Alternatives:
Illiquid alternatives		70,516		67,910		59,827		57,418		3,117			10,038			12,415		79,723		76,607		75,349		70,516		2,202		6,354			10,420
Liquid alternatives		55,544		55,514		51,718		52,047		383			1,661			3,344		69,255		63,120		59,048		55,544		2,553		5,509			7,804
Currency and commodities⁽²⁾		41,466		35,345		31,813		30,387		4,459			5,935			6,778		73,322		60,291		43,675		41,466		6,339		19,499			20,343
Alternatives subtotal		167,526		158,769		143,358		139,852		7,959			17,634			22,537		222,300		200,018		178,072		167,526		11,094		31,362			38,567
Long-term		6,451,181		6,359,496		5,525,484		5,999,155		52,260			236,624			280,216		7,136,129		6,681,697		6,881,914		6,451,181		97,604		141,151			240,187
Cash management		510,984		481,208		448,565		443,185		31,988			63,275			69,422		652,002		619,351		545,949		510,984		27,766		104,405			134,204
Advisory⁽¹⁾		1,767		1,778		1,769		1,760		(2	)		(2	)		33		20,366		16,901		1,770		1,767		3,331		18,350			18,353
Total	$	6,963,932	$	6,842,482	$	5,975,818	$	6,444,100	$	84,246		$	299,897		$	349,671	$	7,808,497	$	7,317,949	$	7,429,633	$	6,963,932	$	128,701	$	263,906		$	392,744

The following table presents the component changes in AUM by client type and product type for the three months ended September 30, ~~2019.~~2020.

	June 30,		Net inflows			Market			FX			September 30,		Average		June 30,		Net inflows			Market			FX		September 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2019		AUM⁽²⁾		2020		(outflows)			change			impact⁽¹⁾		2020		AUM⁽²⁾
Retail:
Equity	$	232,429	$	2,838		$	(1,575	)	$	(2,047	)	$	231,645	$	231,417	$	254,104	$	7,007		$	15,217		$	3,099	$	279,427	$	272,429
Fixed income		291,772		4,951			2,408			(1,945	)		297,186		294,416		301,160		8,321			4,185			2,342		316,008		311,193
Multi-asset		118,135		(1,972	)		248			(371	)		116,040		117,101		111,934		1,777			5,618			379		119,708		117,376
Alternatives		22,570		881			(59	)		(145	)		23,247		22,894		27,956		2,447			523			195		31,121		29,759
Retail subtotal		664,906		6,698			1,022			(4,508	)		668,118		665,828		695,154		19,552			25,543			6,015		746,264		730,757
iShares ETFs:
Equity		1,462,623		13,079			(1,810	)		(5,181	)		1,468,711		1,459,509		1,470,314		14,851			96,101			5,583		1,586,849		1,560,887
Fixed income		513,843		23,676			5,296			(3,555	)		539,260		526,863		634,098		19,690			5,206			4,005		662,999		657,594
Multi-asset		4,442		210			10			(3	)		4,659		4,529		5,074		154			192			10		5,430		5,297
Alternatives		27,959		4,539			1,725			(35	)		34,188		31,634		53,111		6,637			6,254			55		66,057		63,687
iShares ETFs subtotal		2,008,867		41,504			5,221			(8,774	)		2,046,818		2,022,535		2,162,597		41,332			107,753			9,653		2,321,335		2,287,465
Institutional:
Active:
Equity		125,884		3,945			172			(1,278	)		128,723		125,960		133,932		4,001			9,709			1,618		149,260		145,197
Fixed income		649,924		(12,144	)		16,149			(4,046	)		649,883		652,333		666,693		12,011			9,122			5,235		693,061		684,720
Multi-asset		393,101		1,236			9,912			(5,312	)		398,937		394,801		426,553		11,354			20,017			6,318		464,242		451,984
Alternatives		103,623		2,584			366			(1,052	)		105,521		104,198		114,432		2,253			2,481			1,393		120,559		118,016
Active subtotal		1,272,532		(4,379	)		26,599			(11,688	)		1,283,064		1,277,292		1,341,610		29,619			41,329			14,564		1,427,122		1,399,917
Index:
Equity		1,664,933		(9,946	)		16,714			(12,277	)		1,659,424		1,652,937		1,660,875		(23,691	)		115,515			15,883		1,768,582		1,748,988
Fixed income		735,591		18,507			40,259			(13,255	)		781,102		756,790		809,141		30,340			(2,967	)		22,883		859,397		846,244
Multi-asset		8,050		(79	)		138			(24	)		8,085		8,044		7,801		695			285			85		8,866		8,245
Alternatives		4,617		(45	)		38			(40	)		4,570		4,533		4,519		(243	)		211			76		4,563		4,637
Index subtotal		2,413,191		8,437			57,149			(25,596	)		2,453,181		2,422,304		2,482,336		7,101			113,044			38,927		2,641,408		2,608,114
Institutional subtotal		3,685,723		4,058			83,748			(37,284	)		3,736,245		3,699,596		3,823,946		36,720			154,373			53,491		4,068,530		4,008,031
Long-term		6,359,496		52,260			89,991			(50,566	)		6,451,181		6,387,959		6,681,697		97,604			287,669			69,159		7,136,129		7,026,253
Cash management		481,208		31,988			623			(2,835	)		510,984		505,145		619,351		27,766			274			4,611		652,002		632,869
Advisory⁽³⁾		1,778		(2	)		8			(17	)		1,767		1,769		16,901		3,331			124			10		20,366		19,025
Total	$	6,842,482	$	84,246		$	90,622		$	(53,418	)	$	6,963,932	$	6,894,873	$	7,317,949	$	128,701		$	288,067		$	73,780	$	7,808,497	$	7,678,147

The following table presents the component changes in AUM by investment style and product type for the three months ended September 30, ~~2019.~~ 2020.

	June 30,		Net inflows			Market			FX			September 30,		Average		June 30,		Net inflows			Market			FX		September 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2019		AUM⁽²⁾		2020		(outflows)			change			impact⁽¹⁾		2020		AUM⁽²⁾
Active:
Equity	$	289,870	$	5,331		$	(2,287	)	$	(2,395	)	$	290,519	$	288,592	$	312,809	$	10,063		$	21,603		$	3,156	$	347,631	$	338,125
Fixed income		926,097		(7,314	)		18,003			(5,607	)		931,179		931,013		950,143		19,166			13,135			6,968		989,412		976,832
Multi-asset		511,236		(740	)		10,160			(5,683	)		514,973		511,901		538,489		13,131			25,635			6,697		583,952		569,360
Alternatives		126,190		3,464			309			(1,197	)		128,766		127,092		142,387		4,699			3,003			1,589		151,678		147,775
Active subtotal		1,853,393		741			26,185			(14,882	)		1,865,437		1,858,598		1,943,828		47,059			63,376			18,410		2,072,673		2,032,092
Index and iShares ETFs:
iShares ETFs:
Equity		1,462,623		13,079			(1,810	)		(5,181	)		1,468,711		1,459,509		1,470,314		14,851			96,101			5,583		1,586,849		1,560,887
Fixed income		513,843		23,676			5,296			(3,555	)		539,260		526,863		634,098		19,690			5,206			4,005		662,999		657,594
Multi-asset		4,442		210			10			(3	)		4,659		4,529		5,074		154			192			10		5,430		5,297
Alternatives		27,959		4,539			1,725			(35	)		34,188		31,634		53,111		6,637			6,254			55		66,057		63,687
iShares ETFs subtotal		2,008,867		41,504			5,221			(8,774	)		2,046,818		2,022,535		2,162,597		41,332			107,753			9,653		2,321,335		2,287,465
Non-ETF Index:
Equity		1,733,376		(8,494	)		17,598			(13,207	)		1,729,273		1,721,722		1,736,102		(22,746	)		118,838			17,444		1,849,638		1,828,489
Fixed income		751,190		18,628			40,813			(13,639	)		796,992		772,526		826,851		31,506			(2,795	)		23,492		879,054		865,325
Multi-asset		8,050		(75	)		138			(24	)		8,089		8,045		7,799		695			285			85		8,864		8,245
Alternatives		4,620		(44	)		36			(40	)		4,572		4,533		4,520		(242	)		212			75		4,565		4,637
Non-ETF Index subtotal		2,497,236		10,015			58,585			(26,910	)		2,538,926		2,506,826		2,575,272		9,213			116,540			41,096		2,742,121		2,706,696
Index & iShares ETFs subtotal		4,506,103		51,519			63,806			(35,684	)		4,585,744		4,529,361		4,737,869		50,545			224,293			50,749		5,063,456		4,994,161
Long-term		6,359,496		52,260			89,991			(50,566	)		6,451,181		6,387,959		6,681,697		97,604			287,669			69,159		7,136,129		7,026,253
Cash management		481,208		31,988			623			(2,835	)		510,984		505,145		619,351		27,766			274			4,611		652,002		632,869
Advisory⁽³⁾		1,778		(2	)		8			(17	)		1,767		1,769		16,901		3,331			124			10		20,366		19,025
Total	$	6,842,482	$	84,246		$	90,622		$	(53,418	)	$	6,963,932	$	6,894,873	$	7,317,949	$	128,701		$	288,067		$	73,780	$	7,808,497	$	7,678,147

The following table presents the component changes in AUM by product type for the three months ended September 30, ~~2019.~~2020.

	June 30,		Net inflows			Market		FX			September 30,		Average		June 30,		Net inflows		Market		FX		September 30,		Average
(in millions)	2019		(outflows)			change		impact⁽¹⁾			2019		AUM⁽²⁾		2020		(outflows)		change		impact⁽¹⁾		2020		AUM⁽²⁾
Equity	$	3,485,869	$	9,916		$	13,501	$	(20,783	)	$	3,488,503	$	3,469,823	$	3,519,225	$	2,168	$	236,542	$	26,183	$	3,784,118	$	3,727,501
Fixed income		2,191,130		34,990			64,112		(22,801	)		2,267,431		2,230,402		2,411,092		70,362		15,546		34,465		2,531,465		2,499,751
Multi-asset		523,728		(605	)		10,308		(5,710	)		527,721		524,475		551,362		13,980		26,112		6,792		598,246		582,902
Alternatives:
Illiquid alternatives		67,910		3,117			134		(645	)		70,516		68,764		76,607		2,202		104		810		79,723		78,413
Liquid alternatives		55,514		383			192		(545	)		55,544		55,582		63,120		2,553		2,851		731		69,255		66,642
Currency and commodities⁽⁴⁾		35,345		4,459			1,744		(82	)		41,466		38,913		60,291		6,339		6,514		178		73,322		71,044
Alternatives subtotal		158,769		7,959			2,070		(1,272	)		167,526		163,259		200,018		11,094		9,469		1,719		222,300		216,099
Long-term		6,359,496		52,260			89,991		(50,566	)		6,451,181		6,387,959		6,681,697		97,604		287,669		69,159		7,136,129		7,026,253
Cash management		481,208		31,988			623		(2,835	)		510,984		505,145		619,351		27,766		274		4,611		652,002		632,869
Advisory⁽³⁾		1,778		(2	)		8		(17	)		1,767		1,769		16,901		3,331		124		10		20,366		19,025
Total	$	6,842,482	$	84,246		$	90,622	$	(53,418	)	$	6,963,932	$	6,894,873	$	7,317,949	$	128,701	$	288,067	$	73,780	$	7,808,497	$	7,678,147

AUM increased ~~$121.5~~$490.5 billion to ~~$6.96~~$7.81 trillion at September 30, ~~2019,~~2020, driven by net market appreciation, ~~and~~ positive net inflows ~~partially offset by~~and the positive impact of foreign exchange movements.

Net market appreciation of ~~$90.6~~$288.1 billion was primarily driven by ~~fixed income appreciation and higher US~~global equity ~~markets.~~market appreciation.

Long-term net inflows of ~~$52.3~~$97.6 billion included ~~$41.5~~$41.3 billion, ~~$6.7~~$36.7 billion and ~~$4.1~~$19.6 billion ~~from~~of net inflows into iShares ETFs, institutional and retail ~~and institutional clients,~~products, respectively. Net flows in long-term products are described below.

Cash management AUM increased to ~~$511~~$652 billion, driven by net inflows of ~~$32~~$27.8 billion.

AUM ~~decreased $53.4~~increased $73.8 billion due to the positive impact of foreign exchange movements, primarily due to the ~~strengthening~~weakening of the US dollar, largely against the ~~Euro~~British pound and ~~British pound.~~

The following table presents the component changes in AUM by client type and product type for the nine months ended September 30, ~~2019.~~2020.

	December 31,		Net inflows			Market			FX			September 30,		Average		December 31,		Net inflows			Market			FX			September 30,		Average
(in millions)	2018		(outflows)			change			impact⁽¹⁾			2019		AUM⁽²⁾		2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾
Retail:
Equity	$	205,714	$	(2,588	)	$	30,760		$	(2,241	)	$	231,645	$	225,107	$	252,413	$	23,244		$	4,038		$	(268	)	$	279,427	$	252,221
Fixed income		271,588		16,230			11,131			(1,763	)		297,186		285,933		305,265		8,564			3,208			(1,029	)		316,008		303,363
Multi-asset		113,417		(8,703	)		11,679			(353	)		116,040		116,916		120,439		(3,126	)		2,569			(174	)		119,708		114,401
Alternatives		20,131		2,860			420			(164	)		23,247		21,741		25,180		5,554			317			70			31,121		27,502
Retail subtotal		610,850		7,799			53,990			(4,521	)		668,118		649,697		703,297		34,236			10,132			(1,401	)		746,264		697,487
iShares ETFs:
Equity		1,274,262		15,633			182,800			(3,984	)		1,468,711		1,417,194		1,632,972		11,050			(57,319	)		146			1,586,849		1,504,589
Fixed income		427,596		87,381			27,527			(3,244	)		539,260		487,266		565,790		75,359			19,246			2,604			662,999		611,117
Multi-asset		4,485		(267	)		438			3			4,659		4,335		5,210		230			1			(11	)		5,430		5,104
Alternatives		25,082		5,542			3,581			(17	)		34,188		28,103		36,093		19,494			10,428			42			66,057		50,403
iShares ETFs subtotal		1,731,425		108,289			214,346			(7,242	)		2,046,818		1,936,898		2,240,065		106,133			(27,644	)		2,781			2,321,335		2,171,213
Institutional:
Active:
Equity		110,976		1,329			17,582			(1,164	)		128,723		121,261		141,118		4,708			3,369			65			149,260		135,354
Fixed income		538,961		60,155			53,921			(3,154	)		649,883		599,105		651,368		3,082			36,857			1,754			693,061		663,749
Multi-asset		336,237		13,566			53,925			(4,791	)		398,937		375,173		434,233		16,211			11,737			2,061			464,242		431,055
Alternatives		93,805		9,111			3,546			(941	)		105,521		101,328		111,951		6,269			1,989			350			120,559		114,414
Active subtotal		1,079,979		84,161			128,974			(10,050	)		1,283,064		1,196,867		1,338,670		30,270			53,952			4,230			1,427,122		1,344,572
Index:
Equity		1,444,873		(24,620	)		250,459			(11,288	)		1,659,424		1,608,044		1,793,826		(38,086	)		10,629			2,213			1,768,582		1,674,238
Fixed income		646,272		61,538			84,536			(11,244	)		781,102		715,922		792,969		8,252			58,782			(606	)		859,397		819,510
Multi-asset		7,745		(664	)		998			6			8,085		8,090		8,239		301			237			89			8,866		8,104
Alternatives		4,340		121			120			(11	)		4,570		4,528		4,848		45			(330	)		-			4,563		4,487
Index subtotal		2,103,230		36,375			336,113			(22,537	)		2,453,181		2,336,584		2,599,882		(29,488	)		69,318			1,696			2,641,408		2,506,339
Institutional subtotal		3,183,209		120,536			465,087			(32,587	)		3,736,245		3,533,451		3,938,552		782			123,270			5,926			4,068,530		3,850,911
Long-term		5,525,484		236,624			733,423			(44,350	)		6,451,181		6,120,046		6,881,914		141,151			105,758			7,306			7,136,129		6,719,611
Cash management		448,565		63,275			2,046			(2,902	)		510,984		473,267		545,949		104,405			156			1,492			652,002		602,703
Advisory⁽³⁾		1,769		(2	)		(4	)		4			1,767		1,772		1,770		18,350			266			(20	)		20,366		10,679
Total	$	5,975,818	$	299,897		$	735,465		$	(47,248	)	$	6,963,932	$	6,595,085	$	7,429,633	$	263,906		$	106,180		$	8,778		$	7,808,497	$	7,332,993

The following table presents the component changes in AUM by investment style and product type for the nine months ended September 30, 2020.

	December 31,		Net inflows			Market			FX			September 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾
Active:
Equity	$	316,145	$	21,616		$	9,531		$	339		$	347,631	$	311,834
Fixed income		939,275		10,151			39,061			925			989,412		949,178
Multi-asset		554,672		13,086			14,307			1,887			583,952		545,455
Alternatives		137,130		11,822			2,306			420			151,678		141,915
Active subtotal		1,947,222		56,675			65,205			3,571			2,072,673		1,948,382
Index and iShares ETFs:
iShares ETFs:
Equity		1,632,972		11,050			(57,319	)		146			1,586,849		1,504,589
Fixed income		565,790		75,359			19,246			2,604			662,999		611,117
Multi-asset		5,210		230			1			(11	)		5,430		5,104
Alternatives		36,093		19,494			10,428			42			66,057		50,403
iShares ETFs subtotal		2,240,065		106,133			(27,644	)		2,781			2,321,335		2,171,213
Non-ETF Index
Equity		1,871,212		(31,750	)		8,505			1,671			1,849,638		1,749,979
Fixed income		810,327		9,747			59,786			(806	)		879,054		837,444
Multi-asset		8,239		300			236			89			8,864		8,105
Alternatives		4,849		46			(330	)		-			4,565		4,488
Non-ETF Index subtotal		2,694,627		(21,657	)		68,197			954			2,742,121		2,600,016
Index & iShares ETFs subtotal		4,934,692		84,476			40,553			3,735			5,063,456		4,771,229
Long-term		6,881,914		141,151			105,758			7,306			7,136,129		6,719,611
Cash management		545,949		104,405			156			1,492			652,002		602,703
Advisory⁽³⁾		1,770		18,350			266			(20	)		20,366		10,679
Total	$	7,429,633	$	263,906		$	106,180		$	8,778		$	7,808,497	$	7,332,993

The following table presents the component changes in AUM by product type for the nine months ended September 30, 2020.

~~The following table presents component changes in AUM by investment style and product type for the nine months ended September 30, 2019.~~

⁽⁴⁾

December 31,

Net
inflows

Market

FX

September 30,

Average

(in millions)
2018

(outflows)

change

impact⁽¹⁾

2019

AUM⁽²⁾

Active:

Equity
$
258,205

$
(3,602
)

$
38,255

$
(2,339
)

$
290,519

$
280,485

Fixed income

795,985

76,099

63,604

(4,509
)

931,179

869,509

Multi-asset

449,654

4,859

65,604

(5,144
)

514,973

492,089

Alternatives

113,936

11,971

3,964

(1,105
)

128,766

123,068

Active subtotal

1,617,780

89,327

171,427

(13,097
)

1,865,437

1,765,151

Index and iShares ETFs:

iShares ETFs:

Equity

1,274,262

15,633

182,800

(3,984
)

1,468,711

1,417,194

Fixed income

427,596

87,381

27,527

(3,244
)

539,260

487,266

Multi-asset

4,485

(267
)

438

3

4,659

4,335

Alternatives

25,082

5,542

3,581

(17
)

34,188

28,103

iShares ETFs subtotal

1,731,425

108,289

214,346

(7,242
)

2,046,818

1,936,898

Non-ETF Index

Equity

1,503,358

(22,277
)

260,546

(12,354
)

1,729,273

1,673,927

Fixed income

660,836

61,824

85,984

(11,652
)

796,992

731,451

Multi-asset

7,745

(660
)

998

6

8,089

8,090

Alternatives

4,340

121

122

(11
)

4,572

4,529

Non-ETF Index subtotal

2,176,279

39,008

347,650

(24,011
)

2,538,926

2,417,997

Index & iShares ETFs subtotal

3,907,704

147,297

561,996

(31,253
)

4,585,744

4,354,895

Long-term

5,525,484

236,624

733,423

(44,350
)

6,451,181

6,120,046

Cash management

448,565

63,275

2,046

(2,902
)

510,984

473,267

Advisory⁽³⁾

1,769

(2
)

(4
)

4

1,767

1,772

Total
$
5,975,818

$
299,897

$
735,465

$
(47,248
)

$
6,963,932

$
6,595,085

~~The following table presents component changes in AUM by product type for the nine months ended September 30, 2019.~~

December 31,

Net
inflows

Market

FX

September 30,

Average

(in millions)
2018

(outflows)

change

impact⁽¹⁾

2019

AUM⁽²⁾

Equity
$
3,035,825

$
(10,246
)

$
481,601

$
(18,677
)

$
3,488,503

$
3,371,606

Fixed income

1,884,417

225,304

177,115

(19,405
)

2,267,431

2,088,226

Multi-asset

461,884

3,932

67,040

(5,135
)

527,721

504,514

Alternatives:

Illiquid alternatives

59,827

10,038

1,252

(601
)

70,516

66,395

Liquid alternatives

51,718

1,661

2,706

(541
)

55,544

54,062

Currency and commodities⁽⁴⁾

31,813

5,935

3,709

9

41,466

35,243

Alternatives subtotal

143,358

17,634

7,667

(1,133
)

167,526

155,700

Long-term

5,525,484

236,624

733,423

(44,350
)

6,451,181

6,120,046

Cash management

448,565

63,275

2,046

(2,902
)

510,984

473,267

Advisory⁽³⁾

1,769

(2
)

(4
)

4

1,767

1,772

Total
$
5,975,818

$
299,897

$
735,465

$
(47,248
)

$
6,963,932

$
6,595,085

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

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

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

⁽⁴⁾Amounts include commodity iShares ETFs.

AUM increased ~~$988.1~~$378.9 billion to ~~$6.96~~$7.81 trillion at September 30, ~~2019,~~2020, driven by ~~net market appreciation and~~ positive net inflows ~~partially offset by the impact of foreign exchange movements.~~and net market appreciation.

Net market appreciation of ~~$735.5~~$106.2 billion was primarily driven by ~~higher US markets and~~ fixed income ~~appreciation.~~market appreciation, partially offset by deprecation in equity markets year to date.

Long-term net inflows of ~~$236.6~~$141.2 billion included ~~$120.5~~$106.1 billion, ~~$108.3~~$34.2 billion and ~~$7.8~~$30.3 billion of net inflows into iShares ETFs, retail and institutional active products, respectively, partially offset by net outflows $29.4 billion from institutional ~~clients,~~ ~~iShares~~ ~~ETFs and retail clients, respectively.~~index clients. Net flows in long-term products are described below.

Cash management AUM increased to ~~$511~~$652 billion, ~~primarily~~driven by ~~due to~~ net inflows of ~~$63.3~~$104.4 billion.

AUM ~~decreased $47.2~~increased $8.8 billion due to the positive impact of foreign exchange movements, primarily due to the weakening of the US dollar against the Euro, partially offset by the strengthening of the US dollar against the ~~Euro and~~ British pound.

The following table presents the component changes in AUM by client type and product type for the twelve months ended September 30, ~~2019.~~2020.

	September 30,		Net inflows			Market			FX			September 30,		Average		September 30,		Net inflows			Market			FX			September 30,		Average
(in millions)	2018		(outflows)			change			impact⁽¹⁾			2019		AUM⁽²⁾		2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾
Retail:
Equity	$	237,544	$	(292	)	$	(2,007	)	$	(3,600	)	$	231,645	$	225,307	$	231,645	$	25,180		$	19,098		$	3,504		$	279,427	$	248,948
Fixed income		282,879		8,351			9,186			(3,230	)		297,186		284,212		297,186		13,556			3,959			1,307			316,008		302,419
Multi-asset		124,304		(8,532	)		977			(709	)		116,040		117,860		116,040		(3,714	)		7,030			352			119,708		115,092
Alternatives		20,140		3,487			(154	)		(226	)		23,247		21,409		23,247		7,224			405			245			31,121		26,667
Retail subtotal		664,867		3,014			8,002			(7,765	)		668,118		648,788		668,118		42,246			30,492			5,408			746,264		693,126
iShares ETFs:
Equity		1,413,925		76,142			(13,808	)		(7,548	)		1,468,711		1,404,161		1,468,711		60,122			52,720			5,296			1,586,849		1,507,986
Fixed income		412,343		106,240			25,589			(4,912	)		539,260		469,183		539,260		100,322			17,597			5,820			662,999		596,496
Multi-asset		3,814		721			126			(2	)		4,659		4,205		4,659		610			165			(4	)		5,430		5,038
Alternatives		23,106		6,589			4,541			(48	)		34,188		26,986		34,188		20,281			11,510			78			66,057		46,774
iShares ETFs subtotal		1,853,188		189,692			16,448			(12,510	)		2,046,818		1,904,535		2,046,818		181,335			81,992			11,190			2,321,335		2,156,294
Institutional:
Active:
Equity		128,975		(312	)		1,928			(1,868	)		128,723		121,483		128,723		5,232			13,331			1,974			149,260		134,610
Fixed income		551,591		46,840			56,110			(4,658	)		649,883		586,479		649,883		(2,066	)		38,293			6,951			693,061		660,994
Multi-asset		356,887		19,241			30,481			(7,672	)		398,937		369,684		398,937		31,429			26,224			7,652			464,242		425,765
Alternatives		91,862		12,431			2,592			(1,364	)		105,521		99,153		105,521		10,972			2,293			1,773			120,559		112,942
Active subtotal		1,129,315		78,200			91,111			(15,562	)		1,283,064		1,176,799		1,283,064		45,567			80,141			18,350			1,427,122		1,334,311
Index:
Equity		1,702,243		(57,491	)		29,922			(15,250	)		1,659,424		1,609,791		1,659,424		(51,017	)		140,271			19,904			1,768,582		1,681,295
Fixed income		636,993		66,972			94,678			(17,541	)		781,102		696,383		781,102		21,719			30,216			26,360			859,397		812,141
Multi-asset		7,805		(201	)		380			101			8,085		8,023		8,085		247			441			93			8,866		8,095
Alternatives		4,744		30			(176	)		(28	)		4,570		4,549		4,570		90			(179	)		82			4,563		4,526
Index subtotal		2,351,785		9,310			124,804			(32,718	)		2,453,181		2,318,746		2,453,181		(28,961	)		170,749			46,439			2,641,408		2,506,057
Institutional subtotal		3,481,100		87,510			215,915			(48,280	)		3,736,245		3,495,545		3,736,245		16,606			250,890			64,789			4,068,530		3,840,368
Long-term		5,999,155		280,216			240,365			(68,555	)		6,451,181		6,048,868		6,451,181		240,187			363,374			81,387			7,136,129		6,689,788
Cash management		443,185		69,422			2,595			(4,218	)		510,984		466,738		510,984		134,204			1,164			5,650			652,002		583,512
Advisory⁽³⁾		1,760		33			3			(29	)		1,767		1,769		1,767		18,353			252			(6	)		20,366		8,618
Total	$	6,444,100	$	349,671		$	242,963		$	(72,802	)	$	6,963,932	$	6,517,375	$	6,963,932	$	392,744		$	364,790		$	87,031		$	7,808,497	$	7,281,918

The following table presents the component changes in AUM by investment style and product type for the twelve months ended September 30, ~~2019.~~2020.

	September 30,		Net inflows			Market			FX			September 30,		Average		September 30,		Net inflows			Market			FX			September 30,		Average
(in millions)	2018		(outflows)			change			impact⁽¹⁾			2019		AUM⁽²⁾		2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾
Active:
Equity	$	301,049	$	(4,915	)	$	(1,833	)	$	(3,782	)	$	290,519	$	281,517	$	290,519	$	22,302		$	30,974		$	3,836		$	347,631	$	308,605
Fixed income		819,332		55,334			63,722			(7,209	)		931,179		855,299		931,179		9,025			41,606			7,602			989,412		945,830
Multi-asset		481,192		10,705			31,457			(8,381	)		514,973		487,544		514,973		27,720			33,255			8,004			583,952		540,857
Alternatives		112,003		15,918			2,435			(1,590	)		128,766		120,561		128,766		18,195			2,699			2,018			151,678		139,608
Active subtotal		1,713,576		77,042			95,781			(20,962	)		1,865,437		1,744,921		1,865,437		77,242			108,534			21,460			2,072,673		1,934,900
Index and iShares ETFs:
iShares ETFs:
Equity		1,413,925		76,142			(13,808	)		(7,548	)		1,468,711		1,404,161		1,468,711		60,122			52,720			5,296			1,586,849		1,507,986
Fixed income		412,343		106,240			25,589			(4,912	)		539,260		469,183		539,260		100,322			17,597			5,820			662,999		596,496
Multi-asset		3,814		721			126			(2	)		4,659		4,205		4,659		610			165			(4	)		5,430		5,038
Alternatives		23,106		6,589			4,541			(48	)		34,188		26,986		34,188		20,281			11,510			78			66,057		46,774
iShares ETFs subtotal		1,853,188		189,692			16,448			(12,510	)		2,046,818		1,904,535		2,046,818		181,335			81,992			11,190			2,321,335		2,156,294
Non-ETF Index:
Equity		1,767,713		(53,180	)		31,676			(16,936	)		1,729,273		1,675,064		1,729,273		(42,907	)		141,726			21,546			1,849,638		1,756,248
Fixed income		652,131		66,829			96,252			(18,220	)		796,992		711,775		796,992		24,184			30,862			27,016			879,054		829,724
Multi-asset		7,804		(197	)		381			101			8,089		8,023		8,089		242			440			93			8,864		8,095
Alternatives		4,743		30			(173	)		(28	)		4,572		4,550		4,572		91			(180	)		82			4,565		4,527
Non-ETF Index subtotal		2,432,391		13,482			128,136			(35,083	)		2,538,926		2,399,412		2,538,926		(18,390	)		172,848			48,737			2,742,121		2,598,594
Index & iShares ETFs subtotal		4,285,579		203,174			144,584			(47,593	)		4,585,744		4,303,947		4,585,744		162,945			254,840			59,927			5,063,456		4,754,888
Long-term		5,999,155		280,216			240,365			(68,555	)		6,451,181		6,048,868		6,451,181		240,187			363,374			81,387			7,136,129		6,689,788
Cash management		443,185		69,422			2,595			(4,218	)		510,984		466,738		510,984		134,204			1,164			5,650			652,002		583,512
Advisory⁽³⁾		1,760		33			3			(29	)		1,767		1,769		1,767		18,353			252			(6	)		20,366		8,618
Total	$	6,444,100	$	349,671		$	242,963		$	(72,802	)	$	6,963,932	$	6,517,375	$	6,963,932	$	392,744		$	364,790		$	87,031		$	7,808,497	$	7,281,918

The following table presents the component changes in AUM by product type for the twelve months ended September 30, ~~2019.~~2020.

	September 30,		Net inflows		Market		FX			September 30,		Average		September 30,		Net inflows		Market			FX			September 30,		Average
(in millions)	2018		(outflows)		change		impact⁽¹⁾			2019		AUM⁽²⁾		2019		(outflows)		change			impact⁽¹⁾			2020		AUM⁽²⁾
Equity	$	3,482,687	$	18,047	$	16,035	$	(28,266	)	$	3,488,503	$	3,360,742	$	3,488,503	$	39,517	$	225,420		$	30,678		$	3,784,118	$	3,572,839
Fixed income		1,883,806		228,403		185,563		(30,341	)		2,267,431		2,036,257		2,267,431		133,531		90,065			40,438			2,531,465		2,372,050
Multi-asset		492,810		11,229		31,964		(8,282	)		527,721		499,772		527,721		28,572		33,860			8,093			598,246		553,990
Alternatives:
Illiquid alternatives		57,418		12,415		1,582		(899	)		70,516		64,411		70,516		10,420		(2,177	)		964			79,723		75,583
Liquid alternatives		52,047		3,344		942		(789	)		55,544		53,566		55,544		7,804		4,904			1,003			69,255		61,331
Currency and commodities⁽⁴⁾		30,387		6,778		4,279		22			41,466		34,120		41,466		20,343		11,302			211			73,322		53,995
Alternatives subtotal		139,852		22,537		6,803		(1,666	)		167,526		152,097		167,526		38,567		14,029			2,178			222,300		190,909
Long-term		5,999,155		280,216		240,365		(68,555	)		6,451,181		6,048,868		6,451,181		240,187		363,374			81,387			7,136,129		6,689,788
Cash management		443,185		69,422		2,595		(4,218	)		510,984		466,738		510,984		134,204		1,164			5,650			652,002		583,512
Advisory⁽³⁾		1,760		33		3		(29	)		1,767		1,769		1,767		18,353		252			(6	)		20,366		8,618
Total	$	6,444,100	$	349,671	$	242,963	$	(72,802	)	$	6,963,932	$	6,517,375	$	6,963,932	$	392,744	$	364,790		$	87,031		$	7,808,497	$	7,281,918

AUM increased ~~$519.8~~$844.6 billion to ~~$6.96~~$7.81 trillion at September 30, ~~2019,~~2020, driven by positive net inflows, ~~and~~ net market appreciation ~~partially offset by~~and the positive impact of foreign exchange movements.

Net market appreciation of ~~$243.0~~$364.8 billion was driven by global equity and fixed income ~~appreciation and higher US equity markets.~~market appreciation.

Long-term net inflows of ~~$280.2~~$240.2 billion were comprised of net inflows of ~~$189.7~~$181.3 billion, ~~$87.5~~$45.6 billion and ~~$3.0~~$42.2 billion from iShares ETFs, institutional active and retail clients, ~~respectively.~~respectively, partially offset by net outflows of $28.9 billion from institutional index products. Net flows in long-term products are described below.

Cash management AUM increased to ~~$511~~$652 billion, ~~primarily~~ due to net inflows of ~~$69.4~~$134.2 billion.

AUM ~~decreased $72.8~~increased $87 billion due to the positive impact of foreign exchange movements, primarily resulting from the ~~strengthening of the US dollar against the British pound and Euro, partially offset by the~~ weakening of the US dollar, largely against the ~~Japanese yen.~~Euro and the British pound.

The Company’s results of operations for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 are discussed below. For a further description of the Company’s revenue and expense, see the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2018~~2019 (“~~2018~~2019 Form 10-K”).

The table below presents detail of revenue for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 and includes the ~~asset~~product type mix of ~~investment advisory, administration~~base fees and ~~securities lending revenue (collectively “base fees”).~~performance fees.

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions)	2019		2018		2019		2018		2020		2019		2020		2019
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	391	$	405	$	1,151	$	1,269	$	457	$	391	$	1,236	$	1,151
iShares ETFs		872		885		2,589		2,722		880		872		2,551		2,589
Non-ETF Index		168		169		495		532		164		168		505		495
Equity subtotal		1,431		1,459		4,235		4,523		1,501		1,431		4,292		4,235
Fixed income:
Active		496		460		1,427		1,374		498		496		1,443		1,427
iShares ETFs		251		205		705		620		297		251		817		705
Non-ETF Index		98		98		293		292		113		98		354		293
Fixed income subtotal		845		763		2,425		2,286		908		845		2,614		2,425
Multi-asset		288		298		852		889		289		288		852		852
Alternatives:
Illiquid alternatives		122		89		350		249		140		122		416		350
Liquid alternatives		105		96		301		290		132		105		361		301
Currency and commodities⁽¹⁾		30		24		78		75		51		30		118		78
Alternatives subtotal		257		209		729		614		323		257		895		729
Long-term		2,821		2,729		8,241		8,312
Long-Term										3,021		2,821		8,653		8,241
Cash management		159		154		447		462		204		159		593		447
Total base fees		2,980		2,883		8,688		8,774		3,225		2,980		9,246		8,688
Investment advisory performance fees:
Equity		1		7		5		68		4		1		29		5
Fixed income		—		—		2		2		9		—		13		2
Multi-asset		1		1		7		15		10		1		13		7
Alternatives:
Illiquid alternatives		5		20		40		22		6		5		55		40
Liquid alternatives		114		123		157		205		503		114		575		157
Alternatives subtotal		119		143		197		227		509		119		630		197
Total performance fees		121		151		211		312		532		121		685		211
Technology services revenue		259		200		700		582		282		259		834		700
Distribution fees:
Retrocessions		166		168		491		541		188		166		519		491
12b-1 fees (US mutual fund distribution fees)		90		102		267		313		85		90		254		267
Other		14		9		41		30		15		14		44		41
Total distribution fees		270		279		799		884		288		270		817		799
Advisory and other revenue:
Advisory		21		26		62		80		14		21		48		62
Other		41		37		102		132		28		41		97		102
Total advisory and other revenue		62		63		164		212		42		62		145		164
Total revenue	$	3,692	$	3,576	$	10,562	$	10,764	$	4,369	$	3,692	$	11,727	$	10,562

	Three Months Ended September 30,												Nine Months Ended September 30,												Three Months Ended September 30,												Nine Months Ended September 30,
	Mix of Base Fees						Mix of Average AUM by Asset Class⁽¹⁾						Mix of Base Fees						Mix of Average AUM by Asset Class⁽²⁾						Mix of Base Fees						Mix of Average AUM by Product Type⁽¹⁾						Mix of Base Fees						Mix of Average AUM by Asset Class⁽²⁾
	2019			2018			2019			2018			2019			2018			2019			2018			2020			2019			2020			2019			2020			2019			2020			2019
Equity:
Active		13	%		15	%		4	%		5	%		13	%		14	%		4	%		5	%		15	%		13	%		4	%		4	%		14	%		13	%		4	%		4	%
iShares ETFs		29	%		31	%		21	%		22	%		30	%		31	%		21	%		22	%		27	%		29	%		20	%		21	%		28	%		30	%		21	%		21	%
Non-ETF Index		6	%		6	%		25	%		27	%		6	%		6	%		26	%		27	%		5	%		6	%		24	%		25	%		5	%		6	%		23	%		26	%
Equity subtotal		48	%		52	%		50	%		54	%		49	%		51	%		51	%		54	%		47	%		48	%		48	%		50	%		47	%		49	%		48	%		51	%
Fixed income:
Active		17	%		16	%		14	%		13	%		17	%		17	%		13	%		12	%		15	%		17	%		13	%		14	%		15	%		17	%		13	%		13	%
iShares ETFs		8	%		7	%		8	%		6	%		8	%		7	%		7	%		6	%		9	%		8	%		9	%		8	%		9	%		8	%		8	%		7	%
Non-ETF Index		3	%		3	%		11	%		10	%		3	%		3	%		11	%		10	%		4	%		3	%		11	%		11	%		4	%		3	%		12	%		11	%
Fixed income subtotal		28	%		26	%		33	%		29	%		28	%		27	%		31	%		28	%		28	%		28	%		33	%		33	%		28	%		28	%		33	%		31	%
Multi-asset		10	%		10	%		8	%		8	%		10	%		10	%		8	%		8	%		9	%		10	%		8	%		8	%		9	%		10	%		8	%		8	%
Alternatives:
Illiquid alternatives		4	%		3	%		1	%		1	%		4	%		3	%		1	%		1	%		4	%		4	%		1	%		1	%		5	%		4	%		1	%		1	%
Liquid alternatives		4	%		3	%		1	%		1	%		3	%		3	%		1	%		1	%		4	%		4	%		1	%		1	%		4	%		3	%		1	%		1	%
Currency and commodities(3)		1	%		1	%		0	%		0	%		1	%		1	%		1	%		1	%		2	%		1	%		1	%		-	%		1	%		1	%		1	%		1	%
Alternatives subtotal		9	%		7	%		2	%		2	%		8	%		7	%		3	%		3	%		10	%		9	%		3	%		2	%		10	%		8	%		3	%		3	%
Long-term		95	%		95	%		93	%		93	%		95	%		95	%		93	%		93	%		94	%		95	%		92	%		93	%		94	%		95	%		92	%		93	%
Cash management		5	%		5	%		7	%		7	%		5	%		5	%		7	%		7	%		6	%		5	%		8	%		7	%		6	%		5	%		8	%		7	%
Total excluding Advisory AUM		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

Three Months Ended September 30, ~~2019~~2020 Compared with Three Months Ended September 30, ~~2018~~2019

Revenue increased ~~$116~~$677 million, or 3%18%, from the three months ended September 30, ~~2018, primarily driven by~~2019, reflecting higher ~~base~~performance fees and ~~technology services revenue, partially offset by lower performance fees.~~continued organic growth.

Investment advisory, administration fees and securities lending revenue of ~~$2,980~~$3,225 million increased ~~$97~~$245 million from ~~$2,883~~$2,980 million for the three months ended September 30, ~~2018,~~ 2019, primarily driven by organic growth, the positive impact of market beta and ~~acquisitions, partially offset by the negative impact of~~ foreign exchange movements on average AUM, ~~and~~partially offset by strategic ~~price~~pricing changes to certain products. Securities lending revenue of ~~$150~~$153 million in the current quarter compared with ~~$160~~$150 million in the third quarter of ~~2018.~~2019.

Investment advisory performance fees of ~~$121~~$532 million ~~decreased $30~~increased $411 million from ~~$151~~$121 million for the three months ended September 30, ~~2018,~~2019, primarily reflecting ~~lower revenue~~strong performance from ~~alternative and long-only equity products.~~a single hedge fund with an annual performance measurement period that ends in the third quarter.

Technology services revenue of ~~$259~~$282 million increased ~~$59~~$23 million from ~~$200~~$259 million for the three months ended September 30, ~~2018,~~2019, primarily reflecting higher revenue from Aladdin.

Advisory and other revenue of $42 million decreased $20 million from $62 million for the three months ended September 30, 2019, primarily reflecting the impact of the ~~eFront acquisition and higher revenue from~~ ~~Aladdin~~.previously discussed Charitable Contribution of BlackRock’s remaining 20% stake in PennyMac in the first quarter of 2020.

Nine Months Ended September 30, ~~2019~~2020 Compared with Nine Months Ended September 30, ~~2018~~2019

Revenue ~~decreased $202~~increased $1,165 million, or 2%11%, from the nine months ended September 30, ~~2018, primarily driven by lower~~2019, reflecting higher base fees, higher performance fees ~~base fees~~ and ~~advisory and other revenue, partially offset by~~ higher technology services revenue.

Investment advisory, administration fees and securities lending revenue of ~~$8,688~~$9,246 million ~~decreased $86~~increased $558 million from ~~$8,774~~$8,688 million for the nine months ended September 30, ~~2018,~~2019, primarily driven by ~~lower securities lending revenue,~~organic growth, the positive impact of ~~markets~~market beta and foreign exchange movements on average AUM, ~~and~~partially offset by strategic ~~price~~pricing changes to certain ~~products, partially offset by the positive impact of acquisitions and organic growth.~~products. Securities lending revenue of $521 million increased $73 million from $448 million for the nine months ended September 30, 2019, primarily reflecting higher asset spreads and average balances of securities on loan.

Investment advisory performance fees ~~decreased $50~~of $685 million increased $474 million from ~~$498~~$211 million for the nine months ended September 30, ~~2018,~~2019, primarily reflecting ~~reduced European seasonal demand~~ ~~and lower cash spreads.~~higher revenue from alternative products including strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.

~~Investment advisory performance fees~~Technology services revenue of ~~$211~~$834 million ~~decreased $101~~increased $134 million from ~~$312~~$700 million for the nine months ended September 30, ~~2018,~~2019, primarily reflecting ~~lower revenue from long-only equity products and liquid alternatives, partially offset by~~ higher revenue from ~~illiquid alternatives.~~

~~Technology services revenue~~Aladdin ~~of $700 million increased $118 million from $582 million for the nine months ended September 30, 2018, primarily reflecting~~and the impact of the eFront acquisition, ~~and higher revenue from~~ ~~Aladdin~~.

~~Advisory and other revenue~~which closed in May of $164 million decreased $48 million from $212 million for the nine months ended September 30, 2018, primarily reflecting lower fees from advisory and transition management assignments, and lower earnings from equity method investments.2019.

	Three Months Ended					Nine Months Ended				Three Months Ended					Nine Months Ended
	September 30,					September 30,				September 30,					September 30,
(in millions)	2019			2018		2019		2018		2020		2019			2020		2019
Expense, GAAP:
Expense:
Employee compensation and benefits	$	1,111		$	1,097	$	3,258	$	3,300	$	1,411	$	1,111		$	3,700	$	3,258
Distribution and servicing costs:
Retrocessions		166			168		491		541		188		166			519		491
12b-1 costs		89			100		265		307		83		89			247		265
Other		172			140		491		407		185		172			564		491
Total distribution and servicing costs		427			408		1,247		1,255		456		427			1,330		1,247
Direct fund expense		239			249		733		774		257		239			780		733
General and administration:
Marketing and promotional		79			77		241		253		48		79			156		241
Occupancy and office related		75			73		224		220		81		75			239		224
Portfolio services		64			60		191		203		73		64			203		191
Technology		70			61		206		172		93		70			273		206
Professional services		38			42		115		111		36		38			121		115
Communications		10			9		29		28		14		10			40		29
Foreign exchange remeasurement		(2	)		7		18		12		1		(2	)		7		18
Contingent consideration fair value adjustments		(1	)		29		18		34		—		(1	)		23		18
Product launch costs		—			1		59		12		80		—			164		59
Charitable Contribution											—		—			589		—
Other general and administration		52			54		142		144		35		52			176		142
Total general and administration expense		385			413		1,243		1,189		461		385			1,991		1,243
Amortization of intangible assets		28			13		68		35		27		28			79		68
Total expense, GAAP	$	2,190		$	2,180	$	6,549	$	6,553
Total expense										$	2,612	$	2,190		$	7,880	$	6,549

Three Months Ended September 30, ~~2019~~2020 Compared with Three Months Ended September 30, ~~2018~~2019

~~GAAP~~. Expense increased ~~$10~~$422 million from the three months ended September 30, ~~2018,~~2019, primarily driven by higher employee compensation and benefits expense, and ~~expense linked to the eFront Transaction, partially offset by lower~~higher general and administration ~~expense.~~expense, including the impact of product launch costs in the current quarter.

Employee compensation and benefits expense increased ~~$14~~$300 million from the three months ended September 30, ~~2018,~~2019, primarily reflecting higher ~~headcount, partially offset by lower~~ incentive ~~compensation.~~compensation associated with higher performance fees and operating income.

General and administration expense ~~decreased $28~~increased $76 million from the three months ended September 30, ~~2018, primarily due to lower transaction-related and foreign exchange remeasurement expense, partially offset by~~2019, reflecting $80 million of previously described product launch costs. The increase also reflected higher technology expense, including certain costs related to COVID-19, and lower marketing and promotional expense.

~~Amortization of intangible assets expense~~ ~~increased $15 million from the three months ended September 30, 2018, primarily reflecting amortization of intangible assets associated with the eFront Transaction.~~

Nine Months Ended September 30, ~~2019~~2020 Compared with Nine Months Ended September 30, ~~2018~~2019

~~GAAP~~. Expense ~~decreased $4~~increased $1,331 million from the nine months ended September 30, ~~2018,~~2019, primarily driven ~~primarily by lower employee compensation and benefits and volume-related expense, partially offset~~ by higher general and administration expense, ~~which reflected~~including the ~~previously mentioned~~impact of the Charitable Contribution and higher product launch costs, higher employee compensation and benefits expense, and higher ~~amortization of intangible assets.~~volume-related expense for the nine months ended September 30, 2020.

Employee compensation and benefits expense ~~decreased $42~~increased $442 million from the nine months ended September 30, ~~2018,~~2019, primarily reflecting ~~lower~~higher base and incentive compensation, driven in part by ~~lower~~higher performance fees and operating ~~income, partially offset by higher salaries and headcount.~~income.

Direct fund expense ~~decreased $41~~increased $47 million from the nine months ended September 30, ~~2018,~~2019, reflecting ~~the negative impact of markets and foreign exchange movements on~~higher average AUM.

General and administration expense increased ~~$54~~$748 million from the nine months ended September 30, ~~2018,~~2019, primarily ~~due~~driven by $589 million of expense related to the Charitable Contribution, higher product launch costs, higher technology expense, including certain costs related to COVID-19, costs related to certain legal matters, including Aviron Capital, LLC., and ~~the impact~~a $12 million impairment of a fixed asset. The increase was partially offset by lower marketing and promotional expense and lower foreign exchange remeasurement expense ~~partially offset by lower contingent consideration fair value adjustments related to prior acquisitions and lower portfolio services, and marketing and promotional expense.~~

~~Amortization of intangible assets expense~~ ~~increased $33 million from~~for the nine months ended September 30, ~~2018, primarily reflecting amortization of intangible assets associated with the eFront Transaction.~~

The summary ~~and reconciliation~~ of ~~GAAP nonoperating income (expense) to~~ nonoperating income (expense), ~~as adjusted~~less net income (loss) attributable to NCI for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 was as follows:

	Three Months Ended						Nine Months Ended						Three Months Ended							Nine Months Ended
	September 30,						September 30,						September 30,							September 30,
(in millions)	2019			2018			2019		2018			(in millions)	2020			2019				2020			2019
Nonoperating income (expense), GAAP basis⁽¹⁾	$	(42	)	$	33		$	140	$	(7	)	$		224	$		(42	)	$		510	$		140
Less: Net income (loss) attributable to NCI		—			(13	)		17		(3	)			153			—				162			17
Nonoperating income (expense), as adjusted, net of NCI⁽²⁾⁽³⁾	$	(42	)	$	46		$	123	$	(4	)
Nonoperating income (expense), net of NCI⁽²⁾												$		71	$		(42	)	$		348	$		123

~~The components of nonoperating income (expense), as adjusted, for the three and nine months ended September 30, 2019 and 2018 were as follows:~~

	GAAP												As Adjusted												GAAP												As Adjusted⁽¹⁾
	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,						September 30,						September 30,						September 30,						September 30,
(in millions)	2019			2018			2019			2018			2019			2018			2019			2018			2020			2019			2020			2019			2020			2019			2020			2019
Operating income⁽¹⁾	$	1,502		$	1,396		$	4,013		$	4,211		$	1,502		$	1,400		$	4,013		$	4,221		$	1,757		$	1,502		$	3,847		$	4,013		$	1,757		$	1,502		$	4,436		$	4,013
Total nonoperating income (expense)⁽¹⁾⁽²⁾	$	(42	)	$	46		$	123		$	(4	)	$	(42	)	$	46		$	123		$	(4	)	$	71		$	(42	)	$	348		$	123		$	71		$	(42	)	$	226		$	123
Income before income taxes⁽²⁾	$	1,460		$	1,442		$	4,136		$	4,207		$	1,460		$	1,446		$	4,136		$	4,217		$	1,828		$	1,460		$	4,195		$	4,136		$	1,828		$	1,460		$	4,662		$	4,136
Income tax expense	$	341		$	226		$	961		$	829		$	341		$	232		$	961		$	831		$	464		$	341		$	811		$	961		$	410		$	341		$	998		$	961
Effective tax rate		23.3	%		15.7	%		23.2	%		19.7	%		23.3	%		16.0	%		23.2	%		19.7	%		25.4	%		23.3	%		19.3	%		23.2	%		22.5	%		23.3	%		21.4	%		23.2	%

~~2019.~~ The nine months ended September 30, ~~2019~~2020 income tax expense included a discrete tax benefit of ~~$22~~$241 million recognized in connection with the Charitable Contribution, which was excluded from as adjusted results, and $78 million of discrete tax benefits, including benefits related to stock-based compensation awards that vested in ~~2019.~~the first quarter of 2020.

~~2018.~~The three and nine months ended September 30, ~~2018 income tax expense reflected $90 million of discrete tax benefits, primarily related to changes in the Company’s organizational entity structure. The nine months ended September 30, 2018~~2020 income tax expense also included ~~a discrete tax benefit of $58~~the previously described $54 million noncash net expense related to ~~stock-based compensation awards that vested~~the legislation enacted in ~~2018.~~the United Kingdom, which was excluded from as adjusted results.

The following table presents a reconciliation of the condensed consolidated statement of financial condition presented on a GAAP basis to the condensed consolidated statement of financial condition, excluding the impact of separate account assets and separate account collateral held under securities lending agreements (directly related to lending separate account securities) and separate account liabilities and separate account collateral liabilities under securities lending agreements and consolidated sponsored investment products.

The Company presents the as adjusted ~~balance sheet~~statement of financial condition as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or noncontrolling interests that ultimately do not have an impact on stockholders’ equity or cash flows. Management views the as adjusted ~~balance sheet, a~~statement of financial condition, which contains non-GAAP financial ~~measure,~~measures, as an economic presentation of the Company’s total assets and liabilities; however, it 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.

Separate Account Assets and Liabilities and Separate Account Collateral Held under Securities Lending Agreements

Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company that is a registered life insurance company in the United Kingdom, and represent segregated assets held for purposes of funding individual and group pension contracts. The Company records equal and offsetting separate account liabilities. The separate account assets are not available to creditors of the Company and the holders of the pension contracts have no recourse to the Company’s assets. The net investment income attributable to separate account assets accrues directly to the contract owners and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these assets or liabilities, BlackRock earns an investment advisory fee for the service of managing these assets on behalf of its clients.

In addition, the Company records on its condensed consolidated statements of financial condition the separate account collateral received under BlackRock Life Limited securities lending arrangements as its own asset in addition to an equal and offsetting separate account collateral liability for the obligation to return the collateral. The collateral is not available to creditors of the Company, and the borrowers under the securities lending arrangements have no recourse to the Company’s assets.

The Company consolidates certain sponsored investment products accounted for as variable interest entities (“VIEs”) and voting rights entities (“VREs”) ~~and VIEs,~~, (collectively, ~~“Consolidated Sponsored Investment Products”~~“consolidated sponsored investment products”). See Note 2, Significant Accounting Policies, in the notes to the consolidated financial statements contained in the ~~2018~~2019 Form 10-K for more information on the Company’s consolidation policy.

The Company cannot readily access cash and cash equivalents or other assets held by ~~Consolidated Sponsored Investment Products~~consolidated sponsored investment products to use in its operating activities. In addition, the Company cannot readily sell investments held by ~~Consolidated Sponsored Investment Products~~consolidated sponsored investment products in order to obtain cash for use in the Company’s operations.

	September 30, 2019									September 30, 2020
(in millions)	GAAP Basis		Separate Account Assets/ Collateral⁽¹⁾		Consolidated Sponsored Investment Products⁽²⁾			As Adjusted		GAAP Basis		Separate Account Assets/ Collateral⁽¹⁾		Consolidated Sponsored Investment Products⁽²⁾		As Adjusted
Assets
Cash and cash equivalents	$	4,476	$	—	$	11		$	4,465	$	6,507	$	—	$	208	$	6,299
Accounts receivable		3,026		—		—			3,026		3,706		—		—		3,706
Investments		2,117		—		45			2,072		6,307		—		2,233		4,074
Assets of consolidated VIEs:
Cash and cash equivalents		131		—		131			—
Investments		2,898		—		1,234			1,664
Other assets		54		—		54			—
Separate account assets and collateral held under securities lending agreements		114,200		114,200		—			—		111,131		111,131		—		—
Other assets⁽³⁾		4,011		—		(7	)		4,018		4,623		—		90		4,533
Subtotal		130,913		114,200		1,468			15,245		132,274		111,131		2,531		18,612
Goodwill and intangible assets, net		32,959		—		—			32,959		32,844		—		—		32,844
Total assets	$	163,872	$	114,200	$	1,468		$	48,204	$	165,118	$	111,131	$	2,531	$	51,456
Liabilities
Accrued compensation and benefits	$	1,500	$	—	$	—		$	1,500	$	1,847	$	—	$	—	$	1,847
Accounts payable and accrued liabilities		1,252		—		—			1,252		988		—		—		988
Liabilities of consolidated VIEs		716		—		716			—
Borrowings		5,932		—		—			5,932		7,227		—		—		7,227
Separate account liabilities and collateral liabilities under securities lending agreements		114,200		114,200		—			—		111,131		111,131		—		—
Deferred income tax liabilities⁽⁴⁾		3,792		—		—			3,792		3,742		—		—		3,742
Other liabilities		2,876		—		(445	)		3,321		4,167		—		388		3,779
Total liabilities		130,268		114,200		271			15,797		129,102		111,131		388		17,583
Equity
Total stockholders’ equity		32,407		—		—			32,407		33,873		—		—		33,873
Noncontrolling interests		1,197		—		1,197			—		2,143		—		2,143		—
Total equity		33,604		—		1,197			32,407		36,016		—		2,143		33,873
Total liabilities and equity	$	163,872	$	114,200	$	1,468		$	48,204	$	165,118	$	111,131	$	2,531	$	51,456

The following discussion summarizes the significant changes in assets and liabilities on a GAAP basis. Please see the condensed consolidated statements of financial condition as of September 30, ~~2019~~2020 and December 31, ~~2018~~2019 contained in Part I, Item 1 of this filing. The discussion does not include changes related to assets and liabilities that are equal and offsetting and have no impact on BlackRock’s stockholders’ equity.

Assets. Cash and cash equivalents at September 30, ~~2019~~2020 and December 31, ~~2018~~2019 included ~~$11~~$208 million and ~~$59~~$141 million, respectively, of cash held by consolidated ~~VREs~~sponsored investment products (see Liquidity and Capital Resources for details on the change in cash and cash equivalents during the nine months ended September 30, ~~2019)~~2020).

Accounts receivable at September 30, ~~2019~~2020 increased ~~$369~~$527 million from December 31, ~~2018,~~2019, primarily due to higher ~~base fees,~~performance fee, technology services and ~~performance~~base fee receivables. Investments, ~~were $2,117~~including the impact of consolidated sponsored investment products, increased $818 million ~~at September 30,~~from December 31, 2019 (for more information see Investments herein). Goodwill and intangible assets ~~increased $1,594~~decreased $87 million from December 31, ~~2018,~~2019, primarily due to ~~the eFront Transaction, partially offset by~~ amortization of intangible assets. Other assets (including operating lease right-of-use ~~(“ROU”)~~ assets and property and equipment) increased ~~$1,240~~$739 million from December 31, ~~2018,~~2019, primarily due to ~~the recognition of the operating lease ROU assets related to the adoption of the new lease accounting guidance and~~ an increase in ~~certain strategic investments,~~ unit trust receivables (substantially offset by an increase in unit trust payables recorded within other liabilities) ~~and other assets.~~, partially offset by a net decrease in certain corporate minority investments, primarily related to the previously discussed Charitable Contribution of BlackRock’s remaining 20% stake in PennyMac.

Liabilities. Accrued compensation and benefits at September 30, ~~2019~~2020 decreased ~~$488~~$210 million from December 31, ~~2018,~~2019, primarily due to ~~2018~~2019 incentive compensation cash payments in the first quarter of ~~2019,~~2020, partially offset by ~~2019~~2020 incentive compensation accruals. ~~Other~~Accounts payable and accrued liabilities ~~increased $987~~at September 30, 2020 decreased $179 million from December 31, ~~2018,~~2019, primarily due to ~~the recognition of the operating lease~~lower current income taxes payables. Other liabilities ~~related~~increased $697 million from December 31, 2019, primarily due to ~~the adoption of the new lease accounting guidance and~~ higher unit trust payables (substantially offset by an increase in unit trust receivables recorded within other assets), partially offset by lower contingent ~~liability payments in connection with~~liabilities related to certain ~~prior~~ acquisitions. Net deferred income tax liabilities at September 30, ~~2019~~2020 increased ~~$221~~$8 million from December 31, ~~2018,~~2019, primarily due to the effects of temporary differences associated with ~~the eFront Transaction,~~ stock-based compensation and the revaluation of certain deferred income tax liabilities due to tax legislation enacted in the United Kingdom, partially offset by the effects of temporary differences associated with investment ~~income.~~income and the income tax benefit related to the Charitable Contribution.

The Company’s investments ~~and investments of consolidated VIEs (collectively, “Total Investments”)~~ were ~~$2,117~~$6,307 million and ~~$2,898~~$5,489 million ~~respectively,~~ at September 30, ~~2019. Total~~2020 and December 31, 2019, respectively. Investments include consolidated investments held by sponsored investment products accounted for as VREs and VIEs. Management reviews BlackRock’s ~~Total Investments~~investments on an “economic” basis, which eliminates the portion of ~~Total Investments~~investments that does not impact BlackRock’s book value or net income attributable to BlackRock. 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.

The Company presents ~~Total Investments,~~investments, as adjusted, to enable investors to understand the portion of ~~Total Investments~~investments that is owned by the Company, net of NCI, as a gauge to measure the impact of changes in net nonoperating income (expense) on investments to net income (loss) attributable to BlackRock.

The Company further presents net “economic” investment exposure, net of deferred compensation investments and hedged investments, to reflect another helpful measure for investors. The economic impact of ~~Total Investments~~investments held pursuant to deferred compensation arrangements is offset by a change in compensation expense. The impact of certain investments is substantially mitigated by swap hedges. Carried interest capital allocations are excluded as there is no impact to BlackRock’s stockholders’ equity until such amounts are realized as performance fees. Finally, the Company’s regulatory investment in Federal Reserve Bank stock, which is not subject to market or interest rate risk, is excluded from the Company’s net economic investment exposure.

The following table represents the carrying value of the Company’s economic investment exposure, by asset type, at September 30, ~~2019~~2020 and December 31, ~~2018:~~2019:

	September 30,		December 31,		September 30,		December 31,
(in millions)	2019		2018		2020		2019
Equity⁽¹⁾					$	715	$	609
Fixed income⁽²⁾						1,018		1,008
Multi-asset⁽³⁾						136		178
Alternatives:
Private equity	$	361	$	305		382		355
Real assets		345		377		262		322
Other alternatives⁽¹⁾		248		199
Other investments⁽²⁾		1,676		1,504
Other alternatives⁽⁴⁾						244		235
Alternatives subtotal						888		912
Total “economic” investment exposure	$	2,630	$	2,385	$	2,757	$	2,707

As adjusted investment activity for the nine months ended September 30, ~~2019~~2020 was as follows:

(in millions)	Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2020
Total Investments, as adjusted, beginning balance	$	3,381
Purchases/capital contributions/acquisitions		709
Investments, as adjusted, beginning balance				$	3,995
Purchases/capital contributions					883
Sales/maturities		(522	)		(664	)
Distributions⁽¹⁾		(123	)		(170	)
Market appreciation(depreciation)/earnings from equity method investments		249			60
Carried interest capital allocations/(distributions)		71			(45	)
Other(2)		(29	)		15
Total Investments, as adjusted, ending balance	$	3,736
Investments, as adjusted, ending balance				$	4,074

BlackRock Cash Flows Excluding the Impact of Consolidated Sponsored Investment Products

The condensed consolidated statements of cash flows include the cash flows of the ~~Consolidated Sponsored Investment~~consolidated sponsored investment ~~Products.~~products. The Company uses an adjusted cash flow statement, which excludes the impact of ~~Consolidated Sponsored Investment~~consolidated sponsored investment ~~Products,~~products, as a supplemental non-GAAP measure to assess liquidity and capital requirements. The Company believes that its cash flows, excluding the impact of the ~~Consolidated Sponsored Investment~~consolidated sponsored investment ~~Products,~~products, provide investors with useful information on the cash flows of BlackRock relating to its ability to fund additional operating, investing and financing activities. BlackRock’s management does not advocate that investors consider such non-GAAP measures in isolation from, or as a substitute for, its cash flows presented in accordance with GAAP.

The following table presents a reconciliation of the condensed consolidated statements of cash flows presented on a GAAP basis to the condensed consolidated statements of cash flows, excluding the impact of the cash flows of ~~Consolidated Sponsored Investment~~consolidated sponsored investment ~~Products:~~products:

(in millions)	GAAP Basis			Impact on Cash Flows of Consolidated Sponsored Investment Products			Cash Flows Excluding Impact of Consolidated Sponsored Investment Products			GAAP Basis			Cash Flows of Consolidated Sponsored Investment Products			Cash Flows Excluding Impact of Consolidated Sponsored Investment Products
Cash, cash equivalents and restricted cash, December 31, 2018	$	6,505		$	245		$	6,260
Cash, cash equivalents and restricted cash, December 31, 2019										$	4,846		$	141		$	4,705
Net cash provided by/(used in) operating activities		1,628			(1,016	)		2,644			1,764			(1,287	)		3,051
Net cash provided by/(used in) investing activities		(2,107	)		(96	)		(2,011	)		(177	)		(42	)		(135	)
Net cash provided by/(used in) financing activities		(1,369	)		1,009			(2,378	)		106			1,396			(1,290	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(33	)		—			(33	)		(15	)		—			(15	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		(1,881	)		(103	)		(1,778	)		1,678			67			1,611
Cash, cash equivalents and restricted cash, September 30, 2019	$	4,624		$	142		$	4,482
Cash, cash equivalents and restricted cash, September 30, 2020										$	6,524		$	208		$	6,316

Sources of BlackRock’s operating cash primarily include investment advisory, administration fees and securities lending revenue, performance fees, technology services revenue, advisory and other revenue and distribution fees. BlackRock uses its cash to pay all operating ~~expense,~~expenses, interest and principal on borrowings, income taxes, dividends on BlackRock’s capital stock, repurchases of the Company’s stock, acquisitions, capital expenditures and purchases of co-investments and seed investments.

For details of the Company’s GAAP cash flows from operating, investing and financing activities, see the condensed consolidated statements of cash flows contained in Part I, Item 1 of this filing.

Cash flows provided byby/(used in) operating activities, excluding the impact of ~~Consolidated Sponsored Investment Products,~~consolidated sponsored investment products, primarily include the receipt of investment advisory and administration fees, securities lending revenue and performance fees offset by the payment of operating expenses incurred in the normal course of business, including year-end incentive compensation accrued for in the prior year.

Cash flows used in investing activities, excluding the impact of ~~Consolidated Sponsored Investment Products,~~consolidated sponsored investment products, for the nine months ended September 30, ~~2019~~2020 were ~~$2,011~~$135 million and ~~primarily~~ reflected ~~$1.5 billion of cash outflow related to the eFront Transaction, $572 million of investment purchases and $160~~$140 million of purchases of property and equipment and $119 million of net investment purchases, partially offset by ~~$151~~$124 million of ~~net proceeds~~distributions of capital from ~~sales and maturities of certain investments.~~equity method investees.

Cash flows used in financing activities, excluding the impact of ~~Consolidated Sponsored Investment Products,~~consolidated sponsored investment products, for the nine months ended September 30, ~~2019~~2020 were ~~$2,378 million,~~$1.3 billion, primarily resulting from ~~$1.9~~$1.8 billion of share repurchases, including ~~$400~~$1.1 billion from PNC, $412 million in open market transactions ~~a $1.3 billion private transaction~~ and ~~$238~~$280 million of employee tax withholdings related to employee stock transactions, and ~~$1.6~~$1.7 billion of cash dividend payments, partially offset by ~~$992 million~~$2.2 billion of proceeds from long-term borrowings.

The Company manages its financial condition and funding to maintain appropriate liquidity for the business. Liquidity resources at September 30, ~~2019~~2020 and December 31, ~~2018~~2019 were as follows:

	September 30,			December 31,			September 30,			December 31,
(in millions)	2019			2018			2020			2019
Cash and cash equivalents⁽¹⁾	$	4,476		$	6,302		$	6,507		$	4,829
Cash and cash equivalents held by consolidated VREs⁽²⁾		(11	)		(59	)
Cash and cash equivalents held by consolidated sponsored investment products⁽²⁾								(208	)		(141	)
Subtotal		4,465			6,243			6,299			4,688
Credit facility – undrawn		4,000			4,000			4,000			4,000
Total liquidity resources⁽³⁾	$	8,465		$	10,243		$	10,299		$	8,688

Total liquidity resources ~~decreased $1,778~~increased $1,611 million during the nine months ended September 30, ~~2019,~~2020, primarily reflecting ~~cash payments of 2018 year-end incentive awards, share repurchases of $1.9~~$2.2 billion reflecting the impact of a $1.3 billion private transaction, approximately $1.5 billion of cash outflow related to the eFront Transaction, and cash dividend payments of $1.6 billion, partially offset by $992 million of proceeds from long-term borrowings and cash flows from other operating ~~activities.~~ activities, partially offset by cash payments of 2019 year-end incentive awards, share repurchases of $1.8 billion, including $1.1 billion from PNC, and cash dividend payments of $1.7 billion.

A significant portion of the Company’s ~~$3,736~~$4,074 million of ~~Total Investments,~~investments, as adjusted, is illiquid in nature and, as such, cannot be readily convertible to cash.

The Company continues to monitor its liquidity and capital resources due to the current pandemic. The Company’s liquidity and capital resources were not materially impacted by COVID-19 and related economic conditions during the nine months ended September 30, 2020.

Share Repurchases. ~~In January 2019,~~During the ~~Board of Directors~~nine months ended September 30, 2020, the Company repurchased 0.8 million common shares in open market transactions under the share repurchase program for approximately $412 million. At September 30, 2020, there were 5.1 million shares still authorized to be repurchased.

Including the repurchase ~~of an additional seven million shares~~from PNC, which was in addition to the share repurchase authorization under the Company’s existing share repurchase program, ~~for a total up to~~the Company has repurchased an aggregate of approximately ~~9.9 million~~$1.5 billion of its common shares ~~of BlackRock common stock.~~

~~During~~during the nine months ended September 30, 2019, the Company repurchased 4.0 million common shares under the share repurchase program for approximately $1.7 billion, including a $1.3 billion private transaction that closed on March 25, 2019. The Company2020 and has now completed its targeted level of share repurchases for the year, but will remain opportunistic should relative valuation opportunities arise. ~~At September 30, 2019, there were 5.9 million shares still authorized to be repurchased.~~

Net Capital Requirements. The Company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions, which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions. As a result, such subsidiaries of the Company may be restricted in their ability to transfer cash between different jurisdictions and to their parents. Additionally, transfers of cash between international jurisdictions may have adverse tax consequences that could discourage such transfers.

BlackRock Institutional Trust Company, N.A. (“BTC”) is chartered as a national bank that does not accept deposits or make commercial loans and whose powers are limited to trust and other fiduciary activities. BTC provides investment management and other fiduciary services, including investment advisory and securities lending agency services, to institutional clients. BTC is subject to regulatory capital and liquid asset requirements administered by the US Office of the Comptroller of the Currency.

At ~~both~~ September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the Company was required to maintain approximately ~~$1.8~~$2.2 billion and $1.9 billion, respectively, in net capital in certain regulated subsidiaries, including BTC, entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the United Kingdom, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.

~~2019~~2020 Revolving Credit Facility. The Company’s credit facility has an aggregate commitment amount of $4.0 billion and was amended in March ~~2019~~2020 to extend the maturity date to March ~~2024~~2025 (the ~~“2019~~“2020 credit facility”). The ~~2019~~2020 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, increasing the overall size of the ~~2019~~2020 credit facility to an aggregate principal amount not to exceed $5.0 billion. Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread. The ~~2019~~2020 credit facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at September 30, ~~2019.~~2020. The ~~2019~~2020 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities. At September 30, ~~2019,~~2020, the Company had no amount outstanding under the 2020 credit facility.

At September 30, ~~2019,~~2020, the principal amount of long-term borrowings outstanding was ~~$6.0~~$7.3 billion. See Note ~~13,~~15, Borrowings, in the ~~2018~~2019 Form 10-K for more information on borrowings outstanding as of December 31, ~~2018.~~2019.

During the nine months ended September 30, ~~2019,~~2020, the Company paid approximately ~~$121~~$124 million of interest on long-term borrowings. Future principal repayments and interest requirements at September 30, ~~2019~~2020 were as follows:

(in millions)
Year	Principal		Interest		Total Payments		Principal		Interest		Total Payments
Remainder of 2019	$	1,000	$	70	$	1,070
2020		—		157		157
Remainder of 2020							$	—	$	57	$	57
2021		750		141		891		750		189		939
2022		750		112		862		750		161		911
2023		—		99		99		—		148		148
2024		1,000		82		1,082		1,000		130		1,130
2025⁽¹⁾								821		113		934
Thereafter⁽¹⁾		2,463		212		2,675		3,950		386		4,336
Total	$	5,963	$	873	$	6,836	$	7,271	$	1,184	$	8,455

In ~~April 2019,~~January 2020, the Company issued ~~$1.0~~$1 billion in aggregate principal amount of ~~3.25%~~2.40% senior unsecured and unsubordinated notes maturing on April 30, ~~2029~~2030 (the ~~“2029~~“2030 Notes”). The net proceeds of the 2030 Notes were used for general corporate purposes. Interest of approximately $24 million per year is payable semi-annually on April 30 and October 30 of each year, ~~commencing October~~which commenced on April 30, ~~2019, and is approximately $33 million per year.~~2020. The ~~2029~~2030 Notes may be redeemed prior to January 30, ~~2029~~2030 in whole or in part at any time, at the option of the Company, at a “make-whole” redemption price or at ~~par~~100% of the principal amount of the 2030 Notes thereafter. The unamortized discount and debt issuance costs are being amortized over the remaining term of the ~~2029~~2030 Notes.

In April 2020, the Company issued $1.25 billion in aggregate principal amount of 1.90% senior unsecured and unsubordinated notes maturing on January 28, 2031 (the “2031 Notes”). The net proceeds of the 2031 Notes are being used for general corporate purposes, which may include the future repayment of all or a portion of the $750 million 4.25% Notes due May 2021. Interest of approximately $24 million per year is payable semi-annually on January 28 and July 28 of each year, which commenced on July 28, 2020. The 2031 Notes may be redeemed prior to October 28, 2030 in whole or in part at any time, at the option of the Company, at a “make-whole” redemption price or at 100% of the principal amount of the 2031 Notes thereafter. The unamortized discount and debt issuance costs are being amortized over the remaining term of the 2031 Notes.

Investment Commitments. At September 30, ~~2019,~~2020, the Company had ~~$533~~$703 million of various capital commitments to fund sponsored investment products, including consolidated ~~VIEs.~~sponsored investment products. These ~~funds~~products include private equity funds, real assets funds and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the condensed consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients.

Carried Interest Clawback. As a general partner in certain investment products, including private equity partnerships and certain hedge funds, the Company may receive carried interest cash distributions from the partnerships in accordance with distribution provisions of the partnership agreements. The Company may, from time to time, be required to return all or a portion of such distributions to the limited partners in the event the limited partners do not achieve a return as specified in the various partnership agreements. Therefore, BlackRock records carried interest subject to such clawback provisions in ~~Total Investments,~~investments, or ~~cash/~~cash ~~of consolidated VIEs~~and cash equivalents to the extent that it is distributed, and as a deferred carried interest ~~liability/other liabilities of consolidated VIEs~~liability on its condensed consolidated statements of financial condition. Carried interest is recorded as performance fees on BlackRock’s condensed consolidated statements of income when ~~the~~ fees are no longer probable of significant reversal.

Indemnifications. On behalf of certain clients, the Company lends securities to highly rated banks and broker-dealers. In these securities lending transactions, the borrower is required to provide and maintain collateral at or above regulatory minimums. Securities on loan are marked to market daily to determine if the borrower is required to pledge additional collateral. BlackRock has ~~issued certain indemnifications~~agreed to indemnify certain securities lending clients against potential loss resulting from a borrower’s failure to fulfill its obligations under the securities lending agreement should the value of the collateral pledged by the borrower at the time of default be insufficient to cover the borrower’s obligation under the securities lending agreement. AtThe amount of securities on loan as of September 30, ~~2019,~~2020 and subject to this type of indemnification was $249 billion. In the ~~Company indemnified certain of its clients for their securities~~Company’s capacity as lending ~~loan balances of approximately $211 billion. The Company held, as~~ agent, cash and securities totaling ~~$225~~$265 billion were held as collateral for indemnified securities on loan at September 30, ~~2019.~~2020. The fair value of these indemnifications was not material at September 30, ~~2019.~~2020.

While the collateral pledged by a borrower is intended to be sufficient to offset the borrower’s obligations to return securities borrowed and any other amounts owing to the lender under the relevant securities lending agreement, in the event of a borrower default, the Company can give no assurance that the collateral pledged by the borrower will be sufficient to fulfill such obligations. If the amount of such pledged collateral is not sufficient to fulfill such obligations to a client for whom the Company has provided indemnification, BlackRock would be responsible for the amount of the shortfall. These indemnifications cover only the collateral shortfall described above, and do not in any way guarantee, assume or otherwise insure the investment performance or return of any cash collateral vehicle into which securities lending cash collateral is invested.

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ significantly from those estimates. Management considers the following critical accounting policies important to understanding the condensed consolidated financial statements. For a summary of these and additional accounting policies see Note 2, Significant Accounting Policies, in the notes to the condensed consolidated financial ~~statements, including information regarding the adoption of Accounting Standards Update 2016-02,~~ ~~Leases~~.statements. In addition, see Critical Accounting Policies in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 2, Significant Accounting Policies, in the ~~2018~~2019 Form 10-K for further information.

Consolidation. In the normal course of business, the Company is the manager of various types of sponsored investment vehicles. The Company performs an analysis for investment products to determine if the product is a VIE or a VRE. Assessing whether an entity is a VIE or a VRE involves judgment and analysis. Factors considered in this assessment include the entity’s legal organization, the entity’s capital structure and equity ownership, and any related party or de facto agent implications of the Company’s involvement with the entity. Investments that are determined to be VREs are consolidated if the Company can exert control over the financial and operating policies of the investee, which generally exists if there is greater than 50% voting interest. ~~See Note 6,~~ ~~Consolidated Voting Rights Entities, in the notes to the condensed consolidated financial statements for more information.~~ Investments that are determined to be VIEs are consolidated if the Company is the primary beneficiary (“PB”) of the entity. BlackRock is deemed to be the PB of a VIE if it has the power to direct the activities that most significantly impact the entities’ economic performance and has the obligation to absorb losses or the right to receive benefits that potentially could be significant to the VIE. The Company generally consolidates VIEs in which it holds an ~~equity ownership~~economic interest of 10% or greater and deconsolidates such VIEs once equity ownership falls below 10%. See Note 7,6, ~~Variable Interest Entities~~Consolidated Sponsored Investment Products, in the notes to the condensed consolidated financial statements for more information.

Fair Value Measurements. The Company’s assessment of the significance of a particular input to the fair value measurement according to the fair value hierarchy (i.e., Level 1, 2 and 3 inputs, as defined) in its entirety requires judgment and considers factors specific to the financial instrument. See Note 2, Significant Accounting Policies, in the notes to the condensed consolidated financial statements for more information on fair value measurements.

~~Leases.~~ The Company determines if a contract is a lease or contains a lease at inception. The identification of whether a contract contains a lease requires judgment, including determining whether there are identified assets in the contract and whether the Company has control over such identified assets.

~~Fixed lease payments are included in ROU assets and lease liabilities on the condensed consolidated statement of financial condition.~~The Company recognizes ROU assets and lease liabilities based on the present value of the future lease payments over the lease term at the commencement date discounted using the Company’s incremental borrowing rate (“IBR”). Management judgment is required in determining the Company’s IBR, including assessing the Company’s credit rating using various financial metrics, including revenue, operating margin and revenue growth, and, as appropriate, performing market analysis of yields on publicly traded bonds (secured or unsecured) of comparable companies. See Note 2, ~~Significant Accounting Policies, in the notes to the condensed consolidated financial statements for more information on leases.~~

Investment Advisory Performance Fees / Carried Interest. The Company receives investment advisory performance fees, including incentive allocations (carried interest) from certain actively managed investment funds and certain separately managed accounts. These performance fees are dependent upon exceeding specified relative or absolute investment return thresholds, which may vary by product or account, and include monthly, quarterly, annual or longer measurement periods.

Performance fees, including carried interest, are recognized when it is determined that they are no longer probable of significant reversal (such as upon the sale of a fund’s investment or when the amount of AUM becomes known as of the end of a specified measurement period). Given the unique nature of each fee arrangement, contracts with customers are evaluated on an individual basis to determine the timing of revenue recognition. Significant judgement is involved in making such determination. Performance fees typically arise from investment management services that began in prior reporting periods. Consequently, a portion of the fees the Company recognizes may be partially related to the services performed in prior periods that meet the recognition criteria in the current period. At each reporting date, the Company considers various factors in estimating performance fees to be recognized, including carried interest. These factors include but are not limited to whether: (1) the fees are dependent on the market and thus are

highly susceptible to factors outside the Company’s influence; (2) the fees have a large number and a broad range of possible amounts; and (3) the funds or separately managed accounts have the ability to invest or reinvest their sales proceeds.

The Company is allocated carried interest from certain alternative investment products upon exceeding performance thresholds. The Company may be required to reverse/return all, or part, of such carried interest allocations/distributions depending upon future performance of these ~~funds.~~products. Carried interest subject to such clawback provisions is recorded in ~~investments/~~investments ~~of consolidated VIEs~~ or ~~cash/~~cash ~~of consolidated VIEs~~and cash equivalents to the extent that it is distributed, on its condensed consolidated statements of financial condition.

The Company records a liability for deferred carried interest to the extent it receives cash or capital allocations related to carried interest prior to meeting the revenue recognition criteria. At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the Company had ~~$388~~$447 million and ~~$293~~$483 million, respectively, of deferred carried interest recorded in other ~~liabilities/other~~ liabilities ~~of consolidated VIEs~~ on the condensed consolidated statements of financial condition. A portion of the deferred carried interest may also be paid to certain employees. The ultimate timing of the recognition of performance fee revenue and related compensation expense, if any, for these products is unknown. See Note 1516, Revenue, in the notes to the condensed consolidated financial statements for detailed changes in the deferred carried interest liability balance for the three and nine months ended September 30, ~~2019~~2020 and ~~2018.~~2019.

For accounting pronouncements that the Company adopted during the nine months ended September 30, ~~2019,~~2020, see Note 2, Significant Accounting Policies, in the notes to the condensed consolidated financial statements.

AUM Market Price Risk. BlackRock’s investment advisory and administration fees are primarily comprised of fees based on a percentage of the value of ~~AUM~~assets under management (“AUM”) and, in some cases, performance fees expressed as a percentage of the returns realized on AUM. At September 30, ~~2019,~~2020, the majority of the Company’s investment advisory and administration fees were based on average or period end AUM of the applicable investment funds or separate accounts. Movements in equity market prices, interest rates/credit spreads, foreign exchange rates or all three could cause the value of AUM to decline, which would result in lower investment advisory and administration fees.

Corporate Investments Portfolio Risks. As a leading investment management firm, BlackRock devotes significant resources across all of its operations to identifying, measuring, monitoring, managing and analyzing market and operating risks, including the management and oversight of its own investment portfolio. The Board of Directors of the Company has adopted guidelines for the review of investments to be made by the Company, requiring, among other things, that investments be reviewed by certain senior officers of the Company, and that certain investments may be referred to the Audit Committee or the Board of Directors, depending on the circumstances, for approval.

In the normal course of its business, BlackRock is exposed to equity market price risk, interest rate/credit spread risk and foreign exchange rate risk associated with its corporate investments.

BlackRock has investments primarily in sponsored investment products that invest in a variety of asset classes, including real assets, private equity and hedge funds. Investments generally are made for co-investment purposes, to establish a performance track record, to hedge exposure to certain deferred compensation plans or for regulatory purposes. Currently, the Company has a seed capital hedging program in which it enters into swaps to hedge market and interest rate exposure to certain investments. At September 30, ~~2019,~~2020, the Company had outstanding total return swaps with an aggregate notional value of approximately ~~$533~~$735 million. At September 30, ~~2019,~~2020, there were no outstanding interest rate swaps.

At September 30, ~~2019,~~2020, approximately ~~$3.4~~$4.5 billion of BlackRock’s ~~Total Investments~~investments were maintained in consolidated sponsored investment ~~funds~~products accounted for as ~~VREs~~variable interest entities and ~~VIEs.~~voting rights entities. Excluding the impact of the Federal Reserve Bank stock, carried interest, investments made to hedge exposure to certain deferred compensation plans and certain investments that are hedged via the seed capital hedging program, the Company’s economic exposure to its investment portfolio is ~~$2,630 million.~~$2.8 billion. See ~~Balance Sheet Overview- Investments and Investments~~Statement of ~~Consolidated VIEs~~Financial Condition Overview-Investments in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information on the Company’s ~~Total Investments.~~investments.

Equity Market Price Risk. At September 30, ~~2019,~~2020, the Company’s net exposure to equity market price risk in its investment portfolio was approximately ~~$986~~$995 million of the Company’s total economic investment exposure. Investments subject to market price risk include private equity and real assets investments, hedge funds and funds of funds as well as mutual funds. The Company estimates that a hypothetical 10% adverse change in market prices would result in a decrease of approximately ~~$99~~$100 million in the carrying value of such investments.

Interest Rate/Credit Spread Risk. At September 30, ~~2019,~~2020, the Company was exposed to interest-rate risk and credit spread risk as a result of approximately ~~$1,644~~$1,762 million of ~~Total Investments~~investments in debt securities and sponsored investment products that invest primarily in debt securities. Management considered a hypothetical 100 basis point fluctuation in interest rates or credit spreads and estimates that the impact of such a fluctuation on these investments, in the aggregate, would result in a decrease, or increase, of approximately ~~$47~~$43 million in the carrying value of such investments.

Foreign Exchange Rate Risk. As discussed above, the Company invests in sponsored investment products that invest in a variety of asset classes. The carrying value of the total economic investment exposure denominated in foreign currencies, primarily the British pound and Euro, was ~~$689~~$886 million at September 30, ~~2019.~~2020. A 10% adverse change in the applicable foreign exchange rates would result in approximately a ~~$69~~$89 million decline in the carrying value of such investments.

Other Market Risks. The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange risk movements. At September 30, ~~2019,~~2020, the Company had outstanding forward foreign currency exchange contracts with an aggregate notional value of approximately ~~$2.4~~$4.1 billion.

Disclosure Controls and Procedures. Under the direction of BlackRock’s Chief Executive Officer and Chief Financial Officer, BlackRock evaluated the effectiveness of its disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, BlackRock’s Chief Executive Officer and Chief Financial Officer have concluded that BlackRock’s disclosure controls and procedures were effective.

Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, ~~2019~~2020 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting. In addition, there was no material impact to our internal control over financial reporting while most of our employees are working remotely due to the COVID-19 pandemic. The Company is continually monitoring and assessing the COVID-19 situation to determine any potential impact on the design and operating effectiveness of our internal control over financial reporting.

~~From time~~For a discussion of the Company’s legal proceedings, see Note 15, Commitments and Contingencies, in the notes to ~~time, BlackRock receives subpoenas~~the condensed consolidated financial statements of this Form 10-Q.

In addition to the risk factors previously disclosed in BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2019, BlackRock’s business, financial condition or other requests for information from various US federal and state governmental and regulatory authorities and international governmental and regulatory authorities in connection with industry-wide or other investigations or proceedings. It is BlackRock’s policy to cooperate fully with such matters. The Company, certainresults of its subsidiaries and employees have been named as defendants in various legal actions, including arbitrations and other litigation arising in connection with BlackRock’s activities. Additionally, BlackRock-advised investment portfolios mayoperations could be ~~subject to lawsuits,~~materially adversely affected by any of ~~which potentially could~~the following risks.

The COVID-19 pandemic has caused and is causing significant harm to the ~~investment returns of the applicable portfolio or~~global economy and may adversely affect our business, including our operations and financial condition, and may cause our assets under management (“AUM”), revenue and earnings to decline. The COVID-19 pandemic continues to result in authorities taking numerous measures to contain the ~~Company being liable~~spread and impact of COVID-19, such as travel bans and restrictions, quarantines, shelter in place orders, and limitations on business activity, including closures. These measures may continue to, ~~the portfolios for any resulting damages.~~

On May 27, 2014, certain investors in the BlackRock Global Allocation Fund, Inc. and the BlackRock Equity Dividend Fund (collectively, the “Funds”) filed a consolidated complaint (the “Consolidated Complaint”) in the US District Court for the District of New Jersey against BlackRock Advisors, LLC, BlackRock Investment Management, LLC and BlackRock International Limited under the caption ~~In re BlackRock Mutual Funds Advisory Fee Litigation~~. In the lawsuit, which purports to be brought derivatively on behalf of the Funds, the plaintiffs allege that the defendants violated Section 36(b) of the Investment Company Act by receiving allegedly excessive investment advisory fees from the Funds. On June 13, 2018, the court granted in part and denied in part the defendants’ motion for summary judgment. On July 25, 2018, the plaintiffs served a pleading that supplemented the time period of their alleged damages to run through the date of trial. The lawsuit seeks, among other things, ~~to recover on behalf~~severely restrict global economic activity, which can disrupt supply chains, lower asset valuations, significantly increase unemployment and underemployment levels, decrease liquidity in markets for certain securities and cause significant volatility and disruption in the financial markets.

Towards the end of the ~~Funds all allegedly excessive advisory fees received by~~first quarter of 2020 the ~~defendants beginning twelve months preceding~~pandemic began to impact our business. While global markets have recovered to varying degrees since then, the ~~start~~effects of the ~~lawsuit with respect~~pandemic are ongoing, and such impact may continue in future quarters if conditions persist or worsen. Should current economic conditions persist or deteriorate, there may be an ongoing adverse effect on our business, including our operations and financial condition, as a result of, among other things:

The extent to each Fund and ending on the date of judgment, along with purported lost investment returns on those amounts, plus interest. The trial on the remaining issues was completed on August 29, 2018. On February 8, 2019, the court issued an order dismissing the claims in their entirety. The plaintiffs filed a notice of appeal on March 8, 2019, which ~~remains pending. The defendants believe the claims in this lawsuit are without merit.~~

~~On June 16, 2016,~~ ~~iShares~~ ~~Trust, BlackRock, Inc. and certain of its advisory subsidiaries,~~COVID-19, and the ~~directors and certain officers of the~~ ~~iShares~~ ~~ETFs were named as defendants in a purported class action lawsuit filed in California state court. The lawsuit was filed by investors in certain~~ ~~iShares~~ ETFs (the "ETFs"), and alleges the defendants violated the federal securities laws by failing to adequately disclose in prospectuses issued by the ETFs the risks to the ETFs’ shareholders in the event of a "flash crash." The plaintiffs seek unspecified monetary and rescission damages. The plaintiffs’ complaint was dismissed in December 2016 and on January 6, 2017, the plaintiffs filed an amended complaint. On April 27, 2017, the court partially granted the defendants’ motion for judgment on the pleadings, dismissing certain of the plaintiffs’ claims. On September 18, 2017, the court issued a decision dismissing the remainder of the lawsuit after a one-day bench trial. On December 1, 2017, the plaintiffs appealed the dismissal of their lawsuit, which remains pending. The defendants believe the claims in this lawsuit are without merit.

On April 5, 2017, BlackRock, Inc., BlackRock Institutional Trust Company, N.A. (“BTC”), the BlackRock, Inc. Retirement Committee and various sub-committees, and a BlackRock employee were named as defendants in a purported class action lawsuit brought in the US District Court for the Northern District of California by a former employee on behalf of all participants and beneficiaries in the BlackRock employee 401(k) Plan (the “Plan”) from April 5, 2011 to the present. The lawsuit generally alleges that the defendants breached their duties towards Plan participants in violation of the Employee Retirement Income Security Act of 1974 by, among other things, offering investment options that were overly expensive, underperformed unaffiliated peer funds, focused disproportionately on active versus passive strategies, and were unduly concentrated in investment options managed by BlackRock. On October 18, 2017, the plaintiffs filed an Amended Complaint, which, among other things, added as defendants certain current and former members of the BlackRock Retirement and Investment Committees. The Amended Complaint also included a new purported class claim on behalf of investors in certain Collective Trust Funds (“CTFs”) managed by BTC. Specifically, the plaintiffs allege that BTC, as fiduciary to the CTFs, engaged in self-dealing by, most significantly, selecting itself as the securities lending agent on terms that the plaintiffs claim were excessive. The Amended Complaint also alleged that BlackRock took undue risks in its management of securities lending cash reinvestment vehicles during the financial crisis. On August 23, 2018, the court granted permission to the plaintiffs to file a Second Amended Complaint (“SAC”) which added as defendants the BlackRock, Inc. Management Development and Compensation Committee, the Plan’s independent investment consultant and the Plan’s Administrative Committee and its members. On October 22, 2018, BlackRock filed a motion to dismiss the SAC, and on June 3, 2019, the plaintiffs filed a motion seeking to certify both the Plan and the CTF classes. On September 3, 2019, the court granted

BlackRock’s motion to dismiss part of the plaintiffs’ claim seeking to recover alleged losses in the securities lending vehicles, but denied the motion to dismiss in all other respects. Plaintiffs’ motion to certify the Plan and CTF classes remains pending. The defendants believe the claims in this lawsuit are without merit.

~~Management, after consultation with legal counsel, currently does not anticipate that the aggregate liability arising out of regulatory matters or lawsuits will have a material effect on BlackRock’s~~related global economic crisis, affect our business, results of operations and financial ~~position, or cash flows. However, there is no assurance as~~condition, will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and any recovery period, future actions taken by governmental authorities, central banks and other third parties (including new financial regulation and other regulatory reform) in response to ~~whether~~the pandemic, and the effects on our products, clients, vendors and employees. Moreover, the effects of the COVID-19 pandemic may heighten the other risks described in the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K and any ~~such pending or threatened matters will have a material effect on BlackRock’s results of operations, financial position or cash flows in any future reporting period. Due to uncertainties surrounding~~subsequent reports filed with the ~~outcome of these matters, management cannot reasonably estimate the possible loss or range of loss that may arise from these matters.~~Securities and Exchange Commission.

During the three months ended September 30, ~~2019,~~2020, the Company made the following purchases of its common stock, which is registered pursuant to Section 12(b) of the Exchange Act.

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 thereunto duly authorized.

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

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

		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	4139

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	7374

Item 4.	Controls and Procedures	7475

Item 1.	Legal Proceedings	7576

Item 1A.	Risk Factors	77

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7778

Item 6.	Exhibits	7879

	~~Nine Months Ended~~ ~~September 30, 2019~~
~~Lease term and discount rate:~~
~~Weighted-average remaining lease term~~	9	~~years~~
~~Weighted-average discount rate~~	3	%

	Initial			Revised
	Estimate of			Estimate of
(in millions)	Fair Value			Fair Value
Accounts receivable	$	65		$	65
Finite-lived intangible assets:
Customer relationships⁽²⁾		452			410
Technology-related⁽³⁾		205			203
Trade name⁽⁴⁾		21			13
Goodwill		990			1,031
Other assets		31			31
Deferred income tax liabilities		(194	)		(183	)
Other liabilities assumed		(64	)		(70	)
Total consideration, net of cash acquired	$	1,506		$	1,500

Summary of consideration, net of cash acquired:
Cash paid including settlement of outstanding debt of approximately $0.2 billion	$	1,555		$	1,555
Cash acquired		(49	)		(55	)
Total consideration, net of cash acquired	$	1,506		$	1,500

(in millions)
Year	Amount
2019 (excluding the nine months ended September 30, 2019)	$	14
2020		62
2021		65
2022		69
2023		71
Thereafter		321
Total	$	602

(in millions)	June 30, 2018		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities		Issuances and other Settlements		Transfers into Level 3		Transfers out of Level 3		September 30, 2018		Total Net Unrealized Gains (Losses) Included in Earnings⁽¹⁾
Assets:
Assets of consolidated VIEs:
Private equity	$	104	$	1		$	—	$	—	$	—	$	—	$	—	$	105	$	1
Bank loans⁽²⁾		—		—			—		—		44		—		—		44		—
Total Assets of consolidated VIEs	$	104	$	1		$	—	$	—	$	44	$	—	$	—	$	149	$	1
Total Level 3 assets
Liabilities:
Borrowings of consolidated VIEs⁽²⁾	$	—	$	—		$	—	$	—	$	44	$	—	$	—	$	44	$	—
Other liabilities⁽³⁾		223		(30	)		—		—		6		—		—		259		—
Total Level 3 liabilities	$	223	$	(30	)	$	—	$	—	$	50	$	—	$	—	$	303	$	(30	)

(in millions)	December 31, 2017		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3			September 30, 2018		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Available-for-sale securities⁽³⁾	$	—	$	—		$	26	$	—		$	—		$	—	$	(26	)	$	—	$	—
Trading		—		—			5		—			—			—		(5	)		—		—
Total investments		—		—			31		—			—			—		(31	)		—		—
Assets of consolidated VIEs:
Private equity		116		1			—		(12	)		—			—		—			105		1
Bank loans⁽⁴⁾		—		—			—		—			44			—		—			44		—
Total Assets of consolidated VIEs		116		1			—		(12	)		44			—		—			149		1
Total Level 3 assets	$	116	$	1		$	31	$	(12	)	$	44		$	—	$	(31	)	$	149	$	1
Liabilities:
Borrowings of consolidated VIEs⁽⁴⁾	$	—	$	—		$	—	$	—		$	44		$	—	$	—		$	44	$	—
Other liabilities⁽⁵⁾		236		(33	)		—		—			(10	)		—		—			259		(33	)
Total Level 3 liabilities	$	236	$	(33	)	$	—	$	—		$	34		$	—	$	—		$	303	$	(33	)

(in millions)	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Lease cost:
Operating lease cost⁽¹⁾	$	36	$	104
Variable lease cost⁽²⁾		10		28
Total lease cost	$	46	$	132

(in millions)	Statement of Financial Condition Classification	September 30, 2019
Statement of Financial Condition information:
Operating lease ROU assets	Other assets	$	617
Operating lease liabilities	Other liabilities	$	724

(in millions)	Nine Months Ended September 30, 2019
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	105

Supplemental noncash information:
ROU assets in exchange for operating lease liabilities in connection with the adoption of ASU 2016-02	$	661
ROU assets in exchange for operating lease liabilities	$	54

(in millions)
Maturity of operating lease liabilities at September 30, 2019	Amount ⁽¹⁾
Remainder of 2019	$	37
2020		144
2021		136
2022		124
2023		73
Thereafter		311
Total lease payments	$	825
Less: imputed interest		101
Present value of lease liabilities	$	724

(in millions)	Indefinite-lived		Finite-lived			Total
December 31, 2018	$	17,578	$	261		$	17,839
Amortization expense		—		(68	)		(68	)
Acquisitions⁽¹⁾		—		636			636
September 30, 2019	$	17,578	$	829		$	18,407

	Statement of
	Financial Condition	September 30,		December 31,
(in millions)	Classification	2020		2019
Statement of Financial Condition information:
Operating lease right-of-use ("ROU") assets	Other assets	$	646	$	669
Operating lease liabilities	Other liabilities	$	756	$	776

	Remainder of
(in millions)	2020			2021		2022		2023	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	33	$	125	$	108	$	92	$	61	$	419

Outstanding at	Performance- Based RSUs			Weighted- Average Grant Date Fair Value
December 31, 2018		845,285		$	386.13
Granted		283,014		$	410.32
Additional shares granted due to attainment of performance measures		2,117		$	296.57
Converted		(360,927	)	$	296.57
Forfeited		(11,024	)	$	456.66
September 30, 2019		758,465		$	436.50

Outstanding at	Shares Under Option			Weighted Average Exercise Price
December 31, 2018		2,106,482		$	513.50
Forfeited		(125,538	)	$	513.50
September 30, 2019		1,980,944		$	513.50

	Total Number of Shares Purchased⁽¹⁾		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2019 through July 31, 2019		4,822	$	467.70		—		6,077,434
August 1, 2019 through August 31, 2019		247,466	$	416.93		240,769		5,836,665
September 1, 2019 through September 30, 2019		7,982	$	423.05		—		5,836,665
Total		260,270	$	418.06		240,769

Exhibit No.		Description

3.1(1)		Certificate of Elimination relating to the Preferred Stock, dated October 6, 2020.

31.1		Section 302 Certification of Chief Executive Officer

31.2		Section 302 Certification of Chief Financial Officer

32.1		Section 906 Certification of Chief Executive Officer and Chief Financial Officer

101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

	BLACKROCK, INC.
	(Registrant)

	By:	/s/ Gary S. Shedlin
Date: November ~~8, 2019~~5, 2020		Gary S. Shedlin
		Senior Managing Director & Chief Financial Officer