(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 July 31, ~~2020,~~2021, there were ~~152,483,559~~152,195,794 shares of the registrant’s common stock outstanding.

	June 30,			December 31,			June 30,			December 31,
(in millions, except shares and per share data)	2020			2019			2021			2020
Assets
Cash and cash equivalents⁽¹⁾	$	5,466		$	4,829		$	6,416		$	8,664
Accounts receivable		2,990			3,179			3,790			3,535
Investments⁽¹⁾		5,171			5,489			7,595			6,919
Separate account assets		91,930			102,844			103,872			104,663
Separate account collateral held under securities lending agreements		14,367			15,466			16,170			16,507
Property and equipment (net of accumulated depreciation of $979 and $880 at June 30, 2020 and December 31, 2019, respectively)		697			715
Intangible assets (net of accumulated amortization of $237 and $185 at June 30, 2020 and December 31, 2019, respectively)		18,317			18,369
Property and equipment (net of accumulated depreciation and amortization of $1,211 and $1,098 at June 30, 2021 and December 31, 2020, respectively)								741			681
Intangible assets (net of accumulated amortization of $351 and $291 at June 30, 2021 and December 31, 2020, respectively)								18,514			18,263
Goodwill		14,556			14,562			15,362			14,551
Other assets⁽¹⁾		3,848			3,169			4,502			3,199
Total assets	$	157,342		$	168,622		$	176,962		$	176,982
Liabilities
Accrued compensation and benefits	$	1,189		$	2,057		$	1,704		$	2,499
Accounts payable and accrued liabilities		914			1,167			1,238			1,028
Borrowings		7,190			4,955			6,491			7,264
Separate account liabilities		91,930			102,844			103,872			104,663
Separate account collateral liabilities under securities lending agreements		14,367			15,466			16,170			16,507
Deferred income tax liabilities		3,664			3,734			3,907			3,673
Other liabilities⁽¹⁾		4,054			3,470			5,190			3,692
Total liabilities		123,308			133,693			138,572			139,326
Commitments and contingencies (Note 15)
Temporary equity
Redeemable noncontrolling interests		1,248			1,316			2,242			2,322
Permanent Equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;		2			2			2			2
Shares authorized: 500,000,000 at June 30, 2020 and December 31, 2019; Shares issued: 172,075,373 and 171,252,185 at June 30, 2020 and December 31, 2019, respectively; Shares outstanding: 152,460,239 and 154,375,780 at June 30, 2020 and December 31, 2019, respectively
Preferred stock (Note 20)		—			—
Shares authorized: 500,000,000 at June 30, 2021 and December 31, 2020; Shares issued: 172,075,373 at both June 30, 2021 and December 31, 2020; Shares outstanding: 152,298,784 and 152,532,885 at June 30, 2021 and December 31, 2020, respectively
Additional paid-in capital		19,007			19,186			19,297			19,293
Retained earnings		22,532			21,662			25,620			24,334
Accumulated other comprehensive loss		(781	)		(571	)		(388	)		(337	)
Treasury stock, common, at cost (19,615,134 and 16,876,405 shares held at June 30, 2020 and December 31, 2019, respectively)		(8,030	)		(6,732	)
Treasury stock, common, at cost (19,776,589 and 19,542,488 shares held at June 30, 2021 and December 31, 2020, respectively)								(8,498	)		(8,009	)
Total BlackRock, Inc. stockholders’ equity		32,730			33,547			36,033			35,283
Nonredeemable noncontrolling interests		56			66			115			51
Total permanent equity		32,786			33,613			36,148			35,334
Total liabilities, temporary equity and permanent equity	$	157,342		$	168,622		$	176,962		$	176,982

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(in millions, except shares and per share data)	2020			2019			2020			2019			2021			2020			2021			2020
Revenue
Investment advisory, administration fees and securities lending revenue
Investment advisory, administration fees and securities lending revenue:
Related parties	$	2,052		$	2,061		$	4,227		$	4,050		$	2,829		$	2,052		$	5,514		$	4,227
Other third parties		914			842			1,794			1,658			928			914			1,835			1,794
Total investment advisory, administration fees and securities lending revenue		2,966			2,903			6,021			5,708			3,757			2,966			7,349			6,021
Investment advisory performance fees		112			64			153			90			340			112			469			153
Technology services revenue		278			237			552			441			316			278			622			552
Distribution fees		253			267			529			529			369			253			709			529
Advisory and other revenue		39			53			103			102			38			39			69			103
Total revenue		3,648			3,524			7,358			6,870			4,820			3,648			9,218			7,358
Expense
Employee compensation and benefits		1,152			1,083			2,289			2,147			1,548			1,152			2,957			2,289
Distribution and servicing costs		429			416			874			820			523			429			1,028			874
Direct fund expense		246			252			523			494			320			246			640			523
General and administration		388			470			1,530			858
General and administration expense														461			388			1,046			1,530
Amortization of intangible assets		27			25			52			40			37			27			71			52
Total expense		2,242			2,246			5,268			4,359			2,889			2,242			5,742			5,268
Operating income		1,406			1,278			2,090			2,511			1,931			1,406			3,476			2,090
Nonoperating income (expense)
Net gain (loss) on investments		398			89			358			231			314			398			396			358
Interest and dividend income		10			20			25			49			8			10			27			25
Interest expense		(51	)		(52	)		(97	)		(98	)		(52	)		(51	)		(107	)		(97	)
Total nonoperating income (expense)		357			57			286			182			270			357			316			286
Income before income taxes		1,763			1,335			2,376			2,693			2,201			1,763			3,792			2,376
Income tax expense (benefit)		361			322			347			620
Income tax expense														654			361			972			347
Net income		1,402			1,013			2,029			2,073			1,547			1,402			2,820			2,029
Less:
Net income (loss) attributable to noncontrolling interests		188			10			9			17			169			188			243			9
Net income attributable to BlackRock, Inc.	$	1,214		$	1,003		$	2,020		$	2,056		$	1,378		$	1,214		$	2,577		$	2,020
Earnings per share attributable to BlackRock, Inc. common stockholders:
Basic	$	7.90		$	6.46		$	13.08		$	13.11		$	9.04		$	7.90		$	16.90		$	13.08
Diluted	$	7.85		$	6.41		$	12.99		$	13.02		$	8.92		$	7.85		$	16.69		$	12.99
Weighted-average common shares outstanding:
Basic		153,732,878			155,354,552			154,488,079			156,803,244			152,443,039			153,732,878			152,504,902			154,488,079
Diluted		154,712,032			156,360,741			155,556,187			157,853,711			154,417,581			154,712,032			154,359,353			155,556,187

	Three Months Ended					Six Months Ended					Three Months Ended				Six Months Ended
	June 30,					June 30,					June 30,				June 30,
(in millions)	2020		2019			2020			2019		2021		2020		2021			2020
Net income	$	1,402	$	1,013		$	2,029		$	2,073	$	1,547	$	1,402	$	2,820		$	2,029
Other comprehensive income (loss):
Foreign currency translation adjustments⁽¹⁾		29		(41	)		(210	)		27		23		29		(51	)		(210	)
Comprehensive income (loss)		1,431		972			1,819			2,100		1,570		1,431		2,769			1,819
Less: Comprehensive income (loss) attributable to noncontrolling interests		188		10			9			17		169		188		243			9
Comprehensive income attributable to BlackRock, Inc.	$	1,243	$	962		$	1,810		$	2,083	$	1,401	$	1,243	$	2,526		$	1,810

(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, 2019	$	19,188		$	21,662		$	(571	)	$	(6,732	)	$	33,547		$	66		$	33,613		$	1,316		$	19,188		$	21,662		$	(571	)	$	(6,732	)	$	33,547		$	66		$	33,613		$	1,316
Net income		—			2,020			—			—			2,020			—			2,020			9			—			2,020			—			—			2,020			—			2,020			9
Dividends declared ($7.26 per share)		—			(1,150	)		—			—			(1,150	)		—			(1,150	)		—			—			(1,150	)		—			—			(1,150	)		—			(1,150	)		—
Stock-based compensation		298			—			—			—			298			—			298			—			298			—			—			—			298			—			298			—
Issuance of common shares related to employee stock transactions		(477	)		—			—			484			7			—			7			—			(477	)		—			—			484			7			—			7			—
Employee tax withholdings related to employee stock transactions		—			—			—			(270	)		(270	)		—			(270	)		—			—			—			—			(270	)		(270	)		—			(270	)		—
Shares repurchased		—			—			—			(1,512	)		(1,512	)		—			(1,512	)		—			—			—			—			(1,512	)		(1,512	)		—			(1,512	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			(10	)		(10	)		815
Contributions (redemptions/distributions) — noncontrolling interest holders																										—			—			—			—			—			(10	)		(10	)		815
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(892	)		—			—			—			—			—			—			—			(892	)
Other comprehensive income (loss)		—			—			(210	)		—			(210	)		—			(210	)		—			—			—			(210	)		—			(210	)		—			(210	)		—
June 30, 2020	$	19,009		$	22,532		$	(781	)	$	(8,030	)	$	32,730		$	56		$	32,786		$	1,248		$	19,009		$	22,532		$	(781	)	$	(8,030	)	$	32,730		$	56		$	32,786		$	1,248

(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
March 31, 2020	$	18,887		$	21,872		$	(810	)	$	(6,936	)	$	33,013		$	57		$	33,070		$	1,440		$	18,887		$	21,872		$	(810	)	$	(6,936	)	$	33,013		$	57		$	33,070		$	1,440
Net income		—			1,214			—			—			1,214			—			1,214			188			—			1,214			—			—			1,214			—			1,214			188
Dividends declared ($3.63 per share)		—			(554	)		—			—			(554	)		—			(554	)		—			—			(554	)		—			—			(554	)		—			(554	)		—
Stock-based compensation		149			—			—			—			149			—			149			—			149			—			—			—			149			—			149			—
Issuance of common shares related to employee stock transactions		(27	)		—			—			31			4			—			4			—			(27	)		—			—			31			4			—			4			—
Employee tax withholdings related to employee stock transactions		—			—			—			(13	)		(13	)		—			(13	)		—			—			—			—			(13	)		(13	)		—			(13	)		—
Shares repurchased		—			—			—			(1,112	)		(1,112	)		—			(1,112	)		—			—			—			—			(1,112	)		(1,112	)		—			(1,112	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			(1	)		(1	)		(56	)
Contributions (redemptions/distributions) — noncontrolling interest holders																										—			—			—			—			—			(1	)		(1	)		(56	)
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(324	)		—			—			—			—			—			—			—			(324	)
Other comprehensive income (loss)		—			—			29			—			29			—			29			—			—			—			29			—			29			—			29			—
June 30, 2020	$	19,009		$	22,532		$	(781	)	$	(8,030	)	$	32,730		$	56		$	32,786		$	1,248		$	19,009		$	22,532		$	(781	)	$	(8,030	)	$	32,730		$	56		$	32,786		$	1,248

(in millions)
Additional
Paid-in
Capital⁽¹⁾

Retained
Earnings

Accumulated
Other
Comprehensive
Income (Loss)

Treasury
Stock
Common

Total
BlackRock
Stockholders’
Equity

Nonredeemable
Noncontrolling
Interests

Total
Permanent
Equity

Redeemable
Noncontrolling
Interests /
Temporary
Equity

December 31, 2018
$
19,170

$
19,282

$
(691
)

$
(5,387
)

$
32,374

$
59

$
32,433

$
1,107

Net income

—

2,056

—

—

2,056

—

2,056

17

Dividends declared ($6.60 per share)

—

(1,071
)

—

—

(1,071
)

—

(1,071
)

—

Stock-based compensation

294

—

—

—

294

—

294

—

PNC preferred stock capital contribution

60

—

—

—

60

—

60

—

Retirement of preferred stock

(60
)

—

—

—

(60
)

—

(60
)

—

Issuance of common shares related to
   employee stock transactions

(515
)

—

—

523

8

—

8

—

Employee tax withholdings related to
   employee stock transactions

—

—

—

(229
)

(229
)

—

(229
)

—

Shares repurchased

—

—

—

(1,566
)

(1,566
)

—

(1,566
)

—

Subscriptions (redemptions/distributions)
   — noncontrolling interest holders

—

—

—

—

—

1

1

443

Net consolidations (deconsolidations) of
  sponsored investment funds

—

—

—

—

—

(3
)

(3
)

(857
)
Other comprehensive income (loss)

—

—

27

—

27

—

27

—

June 30, 2019
$
18,949

$
20,267

$
(664
)

$
(6,659
)

$
31,893

$
57

$
31,950

$
710

	Six Months Ended						Six Months Ended
(in millions)	June 30,						June 30,
	2020			2019			2021			2020
Operating activities
Net income	$	2,029		$	2,073		$	2,820		$	2,029
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization		225			189			198			168
Noncash lease expense								63			57
Stock-based compensation		298			294			378			298
Deferred income tax expense (benefit)		(67	)		60			233			(67	)
Charitable Contribution		589			—			—			589
Gain related to the Charitable Contribution		(122	)		—			—			(122	)
Gain related to iCapital recapitalization		(244	)		—
Other gains		—			(26	)
Net (gains) losses within consolidated sponsored investment products		69			(166	)
Net (purchases) proceeds within consolidated sponsored investment products		(828	)		(563	)
Other investment gains								—			(244	)
Net (gains) losses within CIPs								(310	)		69
Net (purchases) proceeds within CIPs								(759	)		(828	)
(Earnings) losses from equity method investees		(24	)		(56	)		(107	)		(24	)
Distributions of earnings from equity method investees		23			21			25			23
Changes in operating assets and liabilities:
Accounts receivable		120			(131	)		(264	)		120
Investments, trading		114			(14	)		62			114
Other assets		(817	)		(208	)		(1,330	)		(817	)
Accrued compensation and benefits		(885	)		(930	)		(801	)		(885	)
Accounts payable and accrued liabilities		(273	)		(16	)		205			(273	)
Other liabilities		562			170			840			562
Net cash provided by/(used in) operating activities		769			697			1,253			769
Investing activities
Purchases of investments		(180	)		(73	)		(360	)		(180	)
Proceeds from sales and maturities of investments		69			71			184			69
Distributions of capital from equity method investees		93			47			55			93
Net consolidations (deconsolidations) of sponsored investment funds		(40	)		(97	)		(39	)		(40	)
Acquisitions, net of cash acquired		—			(1,506	)		(1,097	)		—
Purchases of property and equipment		(100	)		(105	)		(178	)		(100	)
Net cash provided by/(used in) investing activities		(158	)		(1,663	)		(1,435	)		(158	)
Financing activities
Proceeds from long-term borrowings		2,245			992			—			2,245
Repayments of long-term borrowings								(750	)		—
Cash dividends paid		(1,150	)		(1,071	)		(1,291	)		(1,150	)
Repurchases of common stock		(1,782	)		(1,795	)		(873	)		(1,782	)
Net proceeds from (repayments of) borrowings by consolidated sponsored investment products		30			58
Net (redemptions/distributions paid)/subscriptions received from noncontrolling interest holders		805			444
Net proceeds from (repayments of) borrowings by CIPs								18			30
Net contributions (redemptions/distributions) - noncontrolling interest holders								837			805
Other financing activities		(42	)		(136	)		(7	)		(42	)
Net cash provided by/(used in) financing activities		106			(1,508	)		(2,066	)		106
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(80	)		9			—			(80	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		637			(2,465	)		(2,248	)		637
Cash, cash equivalents and restricted cash, beginning of period		4,846			6,505			8,681			4,846
Cash, cash equivalents and restricted cash, end of period	$	5,483		$	4,040		$	6,433		$	5,483
Supplemental disclosure of cash flow information:
Cash paid for:
Interest	$	90		$	93
Income taxes (net of refunds)	$	583		$	604
Supplemental schedule of noncash investing and financing transactions:
Issuance of common stock	$	477		$	515		$	374		$	477
PNC preferred stock capital contribution	$	—		$	60
Charitable Contribution of an investment	$	(589	)	$	—		$	—		$	(589	)
Increase (decrease) in noncontrolling interests due to net consolidation (deconsolidation) of sponsored investment funds	$	(892	)	$	(860	)	$	(1,096	)	$	(892	)

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 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.

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~~represent the portion of CIPs and a consolidated ~~sponsored investment funds~~affiliate (collectively, “consolidated entities”) in which the Company does not have direct equity ownership. ~~Accounts~~Intercompany balances and transactions ~~between consolidated entities~~ have been ~~eliminated.~~eliminated upon consolidation.

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, ~~2019,~~2020, which was filed with the Securities and Exchange Commission ~~(“SEC”)~~ on February ~~28,~~ 25, 2021 (“2020 ~~(“2019~~ Form 10-K”).

The interim financial information at June 30, ~~2020~~2021 and for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 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.

Consolidated Affiliate. During the second quarter of 2021, the Company formed a majority-controlled asset management company in China - BlackRock CCB Wealth Management Company Ltd. (“WMC”). WMC is 50.1% owned by the Company. The Company consolidates WMC, which it deems to be a voting rights entity (“VRE”), because it can exert control over the financial and operating policies of the entity, based on the Company’s 50.1% ownership and voting rights.

~~Accounting Pronouncements Adopted~~Noncontrolling Interests. NCI consist of third-party investments in the ~~Six Months Ended June 30, 2020~~

~~Measurement~~Company’s sponsored investment products and minority interests in WMC, the Company’s consolidated affiliate. The Company reports NCI as equity, separate from the parent’s equity, on the condensed consolidated statements of ~~Credit Losses.~~financial condition. NCI that are redeemable at the option of the holders are classified as temporary equity and nonredeemable NCI are classified as a component of permanent equity in the condensed consolidated statements of financial condition. In ~~June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13,~~ ~~Measurement of Credit Losses on Financial Instruments~~ (“ASU 2016-13”), which significantly changes the accounting and disclosures for credit losses for most financial assets. The new guidance requires an estimate of expected lifetime credit losses and eliminates the existing recognition thresholds under current models. The adoption of ASU 2016-13, which was effective foraddition, the Company ~~on January 1, 2020, did not have a material impact on its~~reports net income (loss) attributable to redeemable and nonredeemable NCI holders in net income (loss) attributable to NCI in the condensed consolidated statements of income.

Noncontrolling Interests – CIPs. NCI of CIPs represent third-party investments in the Company’s sponsored investment products.

Noncontrolling Interests – Consolidated Affiliate. NCI of consolidated affiliate represent minority interests held in WMC, a consolidated affiliate. NCI of a consolidated affiliate that are classified as nonredeemable are included as a component of permanent equity in the condensed consolidated statements of financial ~~statements.~~condition. NCI of a consolidated affiliate that are classified as redeemable are included in temporary equity at estimated redemption value in the condensed consolidated statements of financial condition.

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 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. Credit risks are managed through master netting and collateral support agreements. The amounts related to the right to reclaim or the obligation to return cash collateral may not be used to offset amounts due under the derivative instruments in the normal course of settlement. Therefore, such amounts are not offset against fair value amounts recognized for derivative instruments with the same counterparty and are included in other assets and other liabilities. 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) (“AOCI”) 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 hedge at least quarterly.

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 (“UK”), 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 six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, the Company had ~~not~~0t resold or repledged any of the collateral received under these arrangements. At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the fair value of loaned securities held by separate accounts was approximately ~~$13.1~~$14.8 billion and ~~$14.4~~$15.2 billion, respectively, and the fair value of the collateral held under these securities lending agreements was approximately ~~$14.4~~$16.2 billion and ~~$15.5~~$16.5 billion, respectively.

Money Market Fee Waivers. The Company may voluntarily waive a portion of its management fees on certain money market funds to ensure that they maintain a targeted level of daily net investment income (the “Yield Support waivers”). During the three and six months ended June 30, 2021, these waivers resulted in a reduction of management fees of approximately $160 million and $230 million, respectively, which was partially offset by a reduction of BlackRock’s distribution and servicing costs paid to financial intermediaries. There were no Yield Support waivers for the three and six months ended June 30, 2020. The Company may increase or decrease the level of Yield Support waivers in future periods.

On ~~May 10, 2019,~~February 1, 2021, the Company acquired 100% of the equity interests of ~~eFront Holding SAS (“eFront~~Aperio Group, LLC (the “Aperio Transaction” or ~~“eFront”~~“Aperio”), a ~~leading alternative investment management software and solutions provider~~pioneer in customizing tax-optimized index equity separately managed accounts (“SMAs”) for approximately ~~$1.3~~$1.1 billion ~~excluding the settlement of eFront’s outstanding debt.~~in cash, using existing cash resources. The acquisition of ~~eFront~~Aperio increased BlackRock’s SMA assets under management and expanded ~~Aladdin’s illiquid alternative~~the breadth of the Company’s capabilities via tax-managed strategies across factors, broad market indexing, and ~~enables BlackRock to provide individual alternative or whole-portfolio technology solutions to clients.~~investor Environmental, Social, and Governance preferences across all asset classes.

The purchase price for the Aperio Transaction was ~~funded through a combination~~allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of ~~existing cash and issuance~~the transaction. The goodwill recognized in connection with the acquisition is primarily attributable to anticipated synergies from the transaction. The amount of ~~commercial paper (subsequently repaid with existing cash) and long-term notes in April 2019.~~goodwill expected to be deductible for tax purposes is approximately $0.6 billion. A summary of the fair values of the assets acquired and liabilities assumed in this acquisition is as ~~follows:~~follows⁽¹⁾:


				Estimate of
(in millions)	Fair Value			Fair Value
Accounts receivable	$	61		$	16
Finite-lived intangible assets:
Customer relationships		400
Technology-related		203
Trade name		14
Customer relationships⁽²⁾					270
Other					17
Goodwill		1,044			787
Other assets		49
Deferred income tax liabilities		(146	)		(16	)
Other liabilities assumed		(125	)		(12	)
Total consideration, net of cash acquired	$	1,500		$	1,062

Summary of consideration, net of cash acquired:
Cash paid including settlement of outstanding debt of approximately $0.2 billion	$	1,555
Cash paid				$	1,066
Cash acquired		(55	)		(4	)
Total consideration, net of cash acquired	$	1,500		$	1,062

Finite-lived intangible assets are amortized over their estimated useful lives, which range from three to 10 years. Amortization expense related to the finite-lived intangible assets was $10 million and $17 million, respectively, for the three and six months ended June 30, 2021. The finite-lived intangible assets had a weighted-average remaining useful life of approximately nine years with remaining amortization expense as follows:

The financial results of Aperio have been included in BlackRock’s condensed consolidated financial statements from the closing of the Aperio Transaction. For the three and six months ended June 30, 2021, Aperio contributed $21 million and $34 million, respectively, of revenue and did 0t 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.

In June 2021, the Company completed the acquisition of Baringa Partners’ Climate Change Scenario Model, which will be integrated into BlackRock’s Aladdin Climate technology, and will enhance Aladdin Climate’s capabilities and analytics.Total consideration, including contingent consideration, is not material to the Company’s condensed consolidated financial statements.

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.

	June 30,		December 31,		June 30,		December 31,
	2020		2019		2021		2020
(in millions)
Cash and cash equivalents	$	5,466	$	4,829	$	6,416	$	8,664
Restricted cash included in other assets		17		17		17		17
Total cash, cash equivalents and restricted cash	$	5,483	$	4,846	$	6,433	$	8,681

	June 30,		December 31,		June 30,		December 31,
(in millions)	2020		2019		2021		2020
Debt securities:
Held-to-maturity investments	$	259	$	249	$	326	$	310
Trading securities		1,444		1,249		1,616		1,964
Total debt securities		1,703		1,498		1,942		2,274
Equity securities at FVTNI⁽¹⁾		1,393		1,926		2,369		2,317
Equity method investments⁽²⁾		1,018		943		1,404		1,081
Bank loans		232		204		271		248
Federal Reserve Bank stock⁽³⁾		94		93		95		94
Carried interest⁽⁴⁾		458		528		1,213		627
Other investments⁽⁵⁾		273		297		301		278
Total investments	$	5,171	$	5,489	$	7,595	$	6,919

The carrying value of held-to-maturity investments was ~~$259~~$326 million and ~~$249~~$310 million at June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. Held-to-maturity investments included certain investments in CLOs and foreign government debt held primarily for regulatory purposes. The amortized cost (carrying value) of these investments approximated fair value (primarily a Level 2 input). At June 30, ~~2020,~~2021, $14 million of these investments mature between one to five years, ~~$117~~$103 million of these investments mature between five to ~~ten~~10 years and ~~$128~~$209 million of these investments mature after ~~ten~~10 years.

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


	June 30, 2020				December 31, 2019				June 30, 2021				December 31, 2020
(in millions)	Cost		Carrying Value		Cost		Carrying Value		Cost		Carrying Value		Cost		Carrying Value
Trading debt securities:
Corporate debt	$	1,132	$	1,135	$	822	$	844	$	1,131	$	1,159	$	1,591	$	1,641
Government debt		228		228		268		269		314		314		203		210
Asset/mortgage-backed debt		98		81		141		136		154		143		132		113
Total trading debt securities	$	1,458	$	1,444	$	1,231	$	1,249	$	1,599	$	1,616	$	1,926	$	1,964
Equity securities at FVTNI:
Equity securities/multi-asset mutual funds	$	1,302	$	1,393	$	1,769	$	1,926
Equity securities/mutual funds									$	2,033	$	2,369	$	2,055	$	2,317
Total equity securities at FVTNI	$	1,302	$	1,393	$	1,769	$	1,926	$	2,033	$	2,369	$	2,055	$	2,317

The Company consolidates certain sponsored investment funds accounted for as ~~voting rights entities (“VREs”)~~VREs because it is deemed to control such funds.

In the normal course of business, the Company is the manager of various types of sponsored investment vehicles, which may be considered 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’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.

The following table presents the balances related to these ~~consolidated sponsored investment products~~CIPs accounted for as VIEs and VREs that were recorded on the condensed consolidated statements of financial condition, including BlackRock’s net interest in these products:

	June 30, 2020									December 31, 2019									June 30, 2021									December 31, 2020
(in millions)	VIEs			VREs			Total			VIEs			VREs			Total			VIEs			VREs			Total			VIEs			VREs			Total
Cash and cash equivalents	$	228		$	47		$	275		$	131		$	10		$	141		$	217		$	63		$	280		$	155		$	51		$	206
Investments:
Trading debt securities		1,260			155			1,415			1,059			151			1,210			1,497			73			1,570			1,618			310			1,928
Equity securities at FVTNI		840			302			1,142			1,330			332			1,662			1,758			289			2,047			1,592			413			2,005
Bank loans		232			—			232			204			—			204			271			—			271			248			—			248
Other investments		164			—			164			194			—			194			210			—			210			191			—			191
Carried interest		440			—			440			514			—			514			1,184			—			1,184			604			—			604
Total investments		2,936			457			3,393			3,301			483			3,784			4,920			362			5,282			4,253			723			4,976
Other assets		100			23			123			68			5			73			136			6			142			90			9			99
Other liabilities⁽¹⁾		(803	)		(48	)		(851	)		(820	)		(20	)		(840	)		(1,601	)		(33	)		(1,634	)		(952	)		(70	)		(1,022	)
Noncontrolling interest		(1,240	)		(64	)		(1,304	)		(1,348	)		(34	)		(1,382	)
BlackRock's net interests in consolidated investment products	$	1,221		$	415		$	1,636		$	1,332		$	444		$	1,776
Noncontrolling interests - CIPs																				(2,250	)		(30	)		(2,280	)		(2,193	)		(180	)		(2,373	)
BlackRock's net interests in CIPs																			$	1,422		$	368		$	1,790		$	1,353		$	533		$	1,886

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

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

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

	Three Months Ended				Six Months Ended					Three Months Ended				Six Months Ended
	June 30,				June 30,					June 30,				June 30,
(in millions)	2020		2019		2020			2019		2021		2020		2021		2020

Nonoperating net gain (loss) on consolidated VIEs	$	282	$	39	$	(27	)	$	133	$	190	$	282	$	273	$	(27	)

Net income (loss) attributable to NCI on consolidated VIEs	$	178	$	12	$	20		$	17	$	168	$	178	$	223	$	20

Nonconsolidated VIEs. At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, 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 primary beneficiary, was as follows:

(in millions)												Advisory Fee		Other Net Assets			Maximum
At June 30, 2020	Investments		Advisory Fee Receivables		Other Net Assets (Liabilities)			Maximum Risk of Loss⁽¹⁾
At June 30, 2021										Investments		Receivables		(Liabilities)			Risk of Loss⁽¹⁾
Sponsored investment products	$	557	$	47	$	(12	)	$	621	$	779	$	95	$	(12	)	$	891
At December 31, 2019
At December 31, 2020
Sponsored investment products	$	539	$	71	$	(10	)	$	627	$	662	$	71	$	(13	)	$	750

The net assets of sponsored investment products that are nonconsolidated VIEs approximated ~~$12~~$19 billion and $16 billion at ~~both~~ June 30, ~~2020~~2021 and December 31, ~~2019.~~2020, respectively.

June 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⁾		June 30, 2020
June 30, 2021 (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⁾		June 30, 2021
Assets:
Investments
Debt securities:
Held-to-maturity investments	$	—	$	—	$	—	$	—	$	259	$	259	$	—	$	—	$	—	$	—	$	326	$	326
Trading securities		—		1,434		10		—		—		1,444		—		1,595		21		—		—		1,616
Total debt securities		—		1,434		10		—		259		1,703		—		1,595		21		—		326		1,942
Equity securities at FVTNI:
Equity securities/Multi-asset mutual funds		1,393		—		—		—		—		1,393
Equity securities/mutual funds														2,369		—		—		—		—		2,369
Equity method:
Equity and fixed income mutual funds		208		—		—		—		—		208		356		—		—		—		—		356
Hedge funds/funds of hedge funds		—		—		—		245		—		245		—		—		—		351		—		351
Private equity funds		—		—		—		310		—		310		—		—		—		483		—		483
Real assets funds		—		—		—		251		—		251		—		—		—		214		—		214
Other		—		—		—		4		—		4
Total equity method		208		—		—		810		—		1,018		356		—		—		1,048		—		1,404
Bank loans		—		3		229		—		—		232		—		10		261		—		—		271
Federal Reserve Bank Stock		—		—		—		—		94		94		—		—		—		—		95		95
Carried interest		—		—		—		—		458		458		—		—		—		—		1,213		1,213
Other investments⁽³⁾		—		3		16		83		171		273		9		5		5		90		192		301
Total investments		1,601		1,440		255		893		982		5,171		2,734		1,610		287		1,138		1,826		7,595
Other assets⁽⁴⁾		184		—		—		—		—		184		186		—		—		—		—		186
Separate account assets		61,946		29,124		—		—		860		91,930		69,820		33,036		—		—		1,016		103,872
Separate account collateral held under securities lending agreements:
Equity securities		11,305		—		—		—		—		11,305		12,599		—		—		—		—		12,599
Debt securities		—		3,062		—		—		—		3,062		—		3,501		—		—		—		3,501
Other														—		—		—		—		70		70
Total separate account collateral held under securities lending agreements		11,305		3,062		—		—		—		14,367		12,599		3,501		—		—		70		16,170
Total	$	75,036	$	33,626	$	255	$	893	$	1,842	$	111,652	$	85,339	$	38,147	$	287	$	1,138	$	2,912	$	127,823
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	11,305	$	3,062	$	—	$	—	$	—	$	14,367	$	12,599	$	3,501	$	—	$	—	$	70	$	16,170
Other liabilities⁽⁵⁾		—		90		262		—		—		352		—		45		298		—		—		343
Total	$	11,305	$	3,152	$	262	$	—	$	—	$	14,719	$	12,599	$	3,546	$	298	$	—	$	70	$	16,513

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
December 31, 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⁾		December 31, 2020
Assets:
Investments
Debt securities:
Held-to-maturity investments	$	—	$	—	$	—	$	—	$	249	$	249	$	—	$	—	$	—	$	—	$	310	$	310
Trading securities		—		1,241		8		—		—		1,249		—		1,953		11		—		—		1,964
Total debt securities		—		1,241		8		—		249		1,498		—		1,953		11		—		310		2,274
Equity securities at FVTNI:
Equity securities/Multi-asset mutual funds		1,926		—		—		—		—		1,926
Equity securities/mutual funds														2,317		—		—		—		—		2,317
Equity method:
Equity and fixed income mutual funds		157		—		—		—		—		157		235		—		—		—		—		235
Hedge funds/funds of hedge funds		—		—		—		220		—		220		—		—		—		313		—		313
Private equity funds		—		—		—		248		—		248		—		—		—		315		—		315
Real assets funds		—		—		—		296		—		296		—		—		—		218		—		218
Other		12		—		—		10		—		22
Total equity method		169		—		—		774		—		943		235		—		—		846		—		1,081
Bank loans		—		27		177		—		—		204		—		16		232		—		—		248
Federal Reserve Bank Stock		—		—		—		—		93		93		—		—		—		—		94		94
Carried interest		—		—		—		—		528		528		—		—		—		—		627		627
Other investments⁽³⁾		—		—		9		98		190		297		—		—		9		94		175		278
Total investments		2,095		1,268		194		872		1,060		5,489		2,552		1,969		252		940		1,206		6,919
Other assets⁽⁴⁾		173		—		—		—		—		173		205		13		—		—		—		218
Separate account assets		72,515		29,582		—		—		747		102,844		71,392		32,404		—		—		867		104,663
Separate account collateral held under securities lending agreements:
Equity securities		10,209		—		—		—		—		10,209		13,126		—		—		—		—		13,126
Debt securities		—		5,257		—		—		—		5,257		—		3,381		—		—		—		3,381
Total separate account collateral held under securities lending agreements		10,209		5,257		—		—		—		15,466		13,126		3,381		—		—		—		16,507
Total	$	84,992	$	36,107	$	194	$	872	$	1,807	$	123,972	$	87,275	$	37,767	$	252	$	940	$	2,073	$	128,307
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	10,209	$	5,257	$	—	$	—	$	—	$	15,466	$	13,126	$	3,381	$	—	$	—	$	—	$	16,507
Other liabilities⁽⁵⁾		—		10		388		—		—		398		—		68		272		—		—		340
Total	$	10,209	$	5,267	$	388	$	—	$	—	$	15,864	$	13,126	$	3,449	$	272	$	—	$	—	$	16,847

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.

Level 3 investments of ~~$255~~$287 million and ~~$194~~$252 million at June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, primarily included bank loans of a consolidated ~~CLO and investments in CLOs.~~CLO.

Level 3 Liabilities. Level 3 liabilities primarily include ~~contingent liabilities related to certain acquisitions, which were valued based upon discounted cash flow analyses using unobservable market data inputs and~~ borrowings of a consolidated 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 June 30, 2021

(in millions)	March 31, 2021		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities		Issuances and other Settlements⁽¹⁾		Transfers into Level 3		Transfers out of Level 3			June 30, 2021		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	14	$	—		$	7	$	—	$	—	$	—	$	—		$	21	$	—
Total debt securities		14		—			7		—		—		—		—			21		—
Private equity		9		—			—		—		—		—		(4	)		5		—
Bank loans		235		—			20		—		—		6		—			261		—
Total investments	$	258	$	—		$	27	$	—	$	—	$	6	$	(4	)	$	287	$	—
Liabilities:
Other liabilities	$	280	$	(1	)	$	—	$	—	$	17	$	—	$	—		$	298	$	(1	)
Total Level 3 liabilities	$	280	$	(1	)	$	—	$	—	$	17	$	—	$	—		$	298	$	(1	)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Six Months Ended June 30, 2021

(in millions)	December 31, 2020		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities		Issuances and other Settlements⁽¹⁾		Transfers into Level 3		Transfers out of Level 3			June 30, 2021		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	11	$	—		$	12	$	—	$	—	$	—	$	(2	)	$	21	$	—
Total debt securities		11		—			12		—		—		—		(2	)		21		—
Private equity		9		—			—		—		—		—		(4	)		5		—
Bank loans		232		—			29		—		—		10		(10	)		261		—
Total investments	$	252	$	—		$	41	$	—	$	—	$	10	$	(16	)	$	287	$	—
Liabilities:
Other liabilities	$	272	$	(4	)	$	—	$	—	$	22	$	—	$	—		$	298	$	(4	)
Total Level 3 liabilities	$	272	$	(4	)	$	—	$	—	$	22	$	—	$	—		$	298	$	(4	)

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

(in millions)	March 31, 2020		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities		Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3		June 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾			March 31, 2020		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities		Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3		June 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	9	$	—		$	1	$	—	$	—		$	—	$	—	$	10	$	—		$	9	$	—		$	1	$	—	$	—		$	—	$	—	$	10	$	—
Total debt securities		9		—			1		—		—			—		—		10		—			9		—			1		—		—			—		—		10		—
Private equity		16		—			—		—		—			—		—		16		—			16		—			—		—		—			—		—		16		—
Bank loans		181		14			18		—		—			16		—		229		14			181		14			18		—		—			16		—		229		14
Total investments	$	206	$	14		$	19	$	—	$	—		$	16	$	—	$	255	$	14		$	206	$	14		$	19	$	—	$	—		$	16	$	—	$	255	$	14
Liabilities:
Other liabilities⁽³⁾	$	421	$	(12	)	$	—	$	—	$	(171	)	$	—	$	—	$	262	$	(19	)	$	421	$	(12	)	$	—	$	—	$	(171	)	$	—	$	—	$	262	$	(19	)
Total Level 3 liabilities	$	421	$	(12	)	$	—	$	—	$	(171	)	$	—	$	—	$	262	$	(19	)	$	421	$	(12	)	$	—	$	—	$	(171	)	$	—	$	—	$	262	$	(19	)

~~Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Six Months Ended June 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

June 30,
2020

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

Assets:

Investments:

Debt securities:

Trading

$
8

$
—

$
2

$
—

$
—

$
—

$
—

$
10

$
—

Total debt securities

8

—

2

—

—

—

—

10

—

Private equity

9

—

8

(1
)

—

—

—

16

—

Bank loans

177

—

36

—

—

16

—

229

—

Total investments

$
194

$
—

$
46

$
(1
)

$
—

$
16

$
—

$
255

$
—

Liabilities:

Other liabilities⁽³⁾

$
388

$
(23
)

$
—

$
—

$
(149
)

$
—

$
—

$
262

$
(30
)
Total Level 3 liabilities

$
388

$
(23
)

$
—

$
—

$
(149
)

$
—

$
—

$
262

$
(30
)

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

(in millions)

March 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

June 30,
2019

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

Assets:

Investments:

Debt securities:

Trading

$
—

$
—

$
2

$
—

$
—

$
—

$
—

$
2

$
—

Total debt securities

—

—

2

—

—

—

—

2

—

Private equity

10

(1
)

—

—

—

—

—

9

(1
)
Bank loans

123

—

2

—

—

—

—

125

—

Total investments

133

(1
)

4

—

—

—

—

136

(1
)
Total Level 3 assets

$
133

$
(1
)

$
4

$
—

$
—

$
—

$
—

$
136

$
(1
)
Liabilities:

Other liabilities⁽³⁾

$
409

$
(13
)

$
—

$
—

$
(112
)

$
—

$
—

$
310

$
(13
)
Total Level 3 liabilities

$
409

$
(13
)

$
—

$
—

$
(112
)

$
—

$
—

$
310

$
(13
)

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

(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⁾			June 30, 2019		Total Net Unrealized Gains (Losses) Included in Earnings⁽³⁾			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		June 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽³⁾
Assets:
Investments:
Debt securities:
Trading	$	4	$	—		$	2	$	—	$	—		$	—	$	(4	)	$	2	$	—		$	8	$	—		$	2	$	—		$	—		$	—	$	—	$	10	$	—
Total debt securities		4		—			2		—		—			—		(4	)		2		—			8		—			2		—			—			—		—		10		—
Private equity		82		(1	)		—		—		—			—		(72	)		9		(1	)		9		—			8		(1	)		—			—		—		16		—
Bank loans		70		—			55		—		—			—		—			125		—			177		—			36		—			—			16		—		229		—
Total investments		156		(1	)		57		—		—			—		(76	)		136		(1	)	$	194	$	—		$	46	$	(1	)	$	—		$	16	$	—	$	255	$	—
Total Level 3 assets	$	156	$	(1	)	$	57	$	—	$	—		$	—	$	(76	)	$	136	$	(1	)
Liabilities:
Other liabilities⁽⁴⁾	$	371	$	(19	)	$	—	$	—	$	(80	)	$	—	$	—		$	310	$	(19	)
Other liabilities																							$	388	$	(23	)	$	—	$	—		$	(149	)	$	—	$	—	$	262	$	(30	)
Total Level 3 liabilities	$	371	$	(19	)	$	—	$	—	$	(80	)	$	—	$	—		$	310	$	(19	)	$	388	$	(23	)	$	—	$	—		$	(149	)	$	—	$	—	$	262	$	(30	)

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~~NCI 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 June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below:

	June 30, 2020				December 31, 2019						June 30, 2021				December 31, 2020
(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	$	5,466	$	5,466	$	4,829	$	4,829	Level 1	^{(2) (3)}	$	6,416	$	6,416	$	8,664	$	8,664	Level 1	^{(2) (3)}
Other assets	$	94	$	94	$	68	$	68	Level 1	⁽⁴⁾	$	47	$	47	$	69	$	69	Level 1	⁽⁴⁾

Financial Liabilities:
Long-term borrowings	$	7,190	$	7,787	$	4,955	$	5,254	Level 2	⁽⁵⁾	$	6,491	$	6,909	$	7,264	$	7,883	Level 2	⁽⁵⁾

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).

June 30, 2020

June 30, 2021

(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)

245

109

Daily/Monthly (28%)

Quarterly (15%)

N/R (57%)

1 – 90 days

(a)

351

142

Daily/Monthly (21%)

Quarterly (21%)

N/R (58%)

1 – 90 days

Private equity funds

(b)

310

255

N/R

(b)

483

302

N/R

Real assets funds

(c)

251

173

Quarterly (47%)

N/R (53%)

60 days

(c)

214

236

Quarterly (19%)

N/R (81%)

60 days

Other

N/R

Consolidated sponsored investment

products:

Private equity funds of funds

(d)

N/R

(d)

N/R

Hedge fund

(a)

—

Quarterly

90 days

Real assets funds

(c)

103

N/R

(c)

N/R

Total

893

653

1,138

770

December 31, 2019

December 31, 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)

220

120

Daily/Monthly (27%)

Quarterly (15%)

N/R (58%)

1 – 90 days

(a)

313

101

Daily/Monthly (21%)

Quarterly (21%)

N/R (58%)

1 – 90 days

Private equity funds

(b)

248

212

N/R

(b)

315

372

N/R

Real assets funds

(c)

296

120

Quarterly (57%)

N/R (43%)

60 days

(c)

218

205

Quarterly (31%)

N/R (69%)

60 days

Other

N/R

Consolidated sponsored investment

products:

Private equity funds of funds

(d)

N/R

(d)

N/R

Hedge fund

(a)

—

Quarterly

90 days

Real assets funds

(c)

N/R

(c)

N/R

Total

872

553

940

779

At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company elected the fair value option for certain investments in CLOs of approximately ~~$29~~$46 million and ~~$37~~$35 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 other liabilities, respectively. The following table summarizes the information related to these bank loans and borrowings at June 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

	June 30,		December 31,		June 30,			December 31,
(in millions)	2020		2019		2021			2020
CLO Bank loans:
Aggregate principal amounts outstanding	$	244	$	204	$	268		$	250
Fair value		232		204		271			248
Aggregate unpaid principal balance in excess of (less than) fair value	$	12	$	—	$	(3	)	$	2

CLO Borrowings:
Aggregate principal amounts outstanding	$	249	$	195	$	261		$	244
Fair value	$	225	$	195	$	264		$	246

At June 30, ~~2020,~~2021, the principal amounts outstanding of the borrowings issued by the CLOs mature in 2030.

During the three and six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, 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)~~nonoperating (expense) 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 June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company had outstanding total return swaps with aggregate notional values of approximately ~~$667~~$863 million and ~~$644~~$833 million, respectively.

The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange movements. At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company had outstanding forward foreign currency exchange contracts with aggregate notional values of approximately ~~$2.6~~$2 billion and $~~3.4~~2.8 billion, respectively, and with expiration dates in July 2021 and January 2021, respectively.

At both June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, 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 June 30, 2021 and December 31, 2020:

(in millions)							Assets					Liabilities
	June 30, 2020						Statement of Financial Condition	June 30,		December 31,		Statement of Financial Condition	June 30,		December 31,
(in millions)	Assets			Liabilities
Derivative instruments	Statement of Financial Condition Classification	Fair Value		Statement of Financial Condition Classification	Fair Value		Classification	2021		2020		Classification	2021		2020
Total return swaps	Other assets	$	1	Other liabilities	$	49	Other assets	$	3	$	—	Other liabilities	$	14	$	50
Forward foreign currency exchange contracts	Other assets		7	Other liabilities		30	Other assets		2		13	Other liabilities		19		5
Total		$	8		$	79		$	5	$	13		$	33	$	55

The fair values of the outstanding total return swaps and forward foreign currency exchange contracts were not material to the condensed consolidated statement of financial condition at December 31, 2019.

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

			Three Months Ended						Six Months Ended								Three Months Ended						Six Months Ended
			June 30,						June 30,								June 30,						June 30,
(in millions)			2020			2019			2020			2019				Statement of Income	2021			2020			2021			2020
Derivative Instruments		Statement of Income Classification	Gains (Losses)						Gains (Losses)							Classification	Gains (Losses)						Gains (Losses)
Total return swaps		Nonoperating income (expense)	$	(91	)	$	(14	)	$	51		$	(64	)		Nonoperating income (expense)	$	(50	)	$	(91	)	$	(84	)	$	51
Forward foreign currency exchange contracts		General and administration expense		(10	)		(49	)		(98	)		(13	)		General and administration expense		3			(10	)		10			(98	)
Total gain (loss) from derivative instruments	Total gain (loss) from derivative instruments		$	(101	)	$	(63	)	$	(47	)	$	(77	)	Total gain (loss) from derivative instruments		$	(47	)	$	(101	)	$	(74	)	$	(47	)

The Company consolidates certain sponsored investment funds, which may utilize derivative instruments as a part of the funds’ investment strategies. The changes in fair value of such derivatives, which are recorded in nonoperating income (expense), were not material for the three and six months ended June 30, ~~2020~~2021 and ~~2019.~~2020.

See Note 15, Borrowings, in the ~~2019~~2020 Form 10-K for more information on the Company’s net investment hedge.

Goodwill activity during the six months ended June 30, ~~2020~~2021 was as follows:

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

(in millions)	Indefinite-lived		Finite-lived			Total			Indefinite-lived		Finite-lived			Total
December 31, 2019	$	17,578	$	791		$	18,369
December 31, 2020									$	17,578	$	685		$	18,263
Acquisitions⁽¹⁾										—		322			322
Amortization expense		—		(52	)		(52	)		—		(71	)		(71	)
June 30, 2020	$	17,578	$	739		$	18,317
June 30, 2021									$	17,578	$	936		$	18,514

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

	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
Lease cost:
Operating lease cost⁽¹⁾	$	36	$	34	$	73	$	68	$	39	$	36	$	78	$	73
Variable lease cost⁽²⁾		10		10		19		18		10		10		20		19
Total lease cost	$	46	$	44	$	92	$	86	$	49	$	46	$	98	$	92

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

	Statement of					Statement of
	Financial Condition	June 30,		December 31,		Financial Condition	June 30,		December 31,
(in millions)	Classification	2020		2019		Classification	2021		2020
Statement of Financial Condition information:
Operating lease right-of-use ("ROU") assets	Other assets	$	663	$	669
Operating lease ROU assets						Other assets	$	613	$	649
Operating lease liabilities	Other liabilities	$	774	$	776	Other liabilities	$	713	$	755

	Six Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2020		2019		2021		2020
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	76	$	70	$	81	$	76

Supplemental noncash information:
ROU assets in exchange for operating lease liabilities in connection with the adoption of ASU 2016-02, “Leases”	$	—	$	661
ROU assets in exchange for operating lease liabilities	$	77	$	44	$	28	$	77

	June 30,			December 31,			June 30,			December 31,
	2020			2019			2021			2020
Lease term and discount rate:
Weighted-average remaining lease term		8	years		9	years		8	years		8	years
Weighted-average discount rate		3	%		3	%		3	%		3	%

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 established The BlackRock Foundation (the “Foundation”) and contributed 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 six months ended June 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 six months ended June 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 June 30, 2021 and December 31, 2020, the carrying value of the Company’s interest in iCapital was approximately ~~$300 million.~~$294 million and $296 million, respectively.

~~2020~~2021 Revolving Credit Facility. ~~The~~In March 2021, the Company’s credit facility ~~has an~~was amended to increase the aggregate commitment amount ~~of $4.0~~to $4.4 billion and ~~was amended in March 2020~~ to extend the maturity date to March ~~2025~~2026 (the ~~“2020~~“2021 credit facility”). In addition, the amendment incorporated certain sustainability-linked pricing metrics into the agreement. Specifically, the Company’s applicable interest rate and commitment fee are subject to upward or downward adjustments on an annual basis if the Company achieves, or fails to achieve, certain specified targets. Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate, or an applicable replacement benchmark, plus a spread. The ~~2020~~2021 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 ~~2020~~2021 credit facility to an aggregate principal amount not to exceed ~~$5.0~~$5.4 billion. ~~Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread.~~ The ~~2020~~2021 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 June 30, ~~2020.~~2021. The ~~2020~~2021 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities. At June 30, ~~2020,~~2021, the Company had 0 amount outstanding under the 2021 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~~$4 billion. The commercial paper program is currently supported by the ~~2020~~2021 credit facility. At June 30, ~~2020,~~2021, 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 June 30, ~~2020~~2021 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
4.25% Notes due 2021	$	750	$	—		$	750	$	776
3.375% Notes due 2022		750		(2	)		748		792	$	750	$	—		$	750	$	772
3.50% Notes due 2024		1,000		(3	)		997		1,101		1,000		(3	)		997		1,080
1.25% Notes due 2025		786		(4	)		782		828		830		(3	)		827		873
3.20% Notes due 2027		700		(5	)		695		791		700		(5	)		695		774
3.25% Notes due 2029		1,000		(13	)		987		1,147		1,000		(11	)		989		1,117
2.40% Notes due 2030		1,000		(7	)		993		1,077		1,000		(6	)		994		1,045
1.90% Notes due 2031		1,250		(12	)		1,238		1,275		1,250		(11	)		1,239		1,248
Total Long-term Borrowings	$	7,236	$	(46	)	$	7,190	$	7,787	$	6,530	$	(39	)	$	6,491	$	6,909

~~2030 Notes~~. In ~~January 2020,~~May 2021, the Company ~~issued $1~~fully repaid $750 million of 4.25% notes at maturity.

Long-term borrowings at December 31, 2020 had a carrying value of $7.3 billion ~~in aggregate principal amount~~and a fair value of 2.40% senior unsecured and unsubordinated notes maturing on April 30, 2030 (the “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, which commenced on April 30, 2020. The 2030 Notes may be redeemed prior to January 30, 2030 in whole or in part at any time,$7.9 billion, determined using market prices at the ~~option~~end of the Company, at a “make-whole” redemption price or at 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 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, commencing on July 28,December 31, 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 15, Borrowings, in the ~~2019~~2020 Form 10-K for more information regarding the Company’s borrowings.

Investment Commitments. At June 30, ~~2020,~~2021, the Company had ~~$656~~$930 million of various capital commitments to fund sponsored investment products, including ~~consolidated sponsored investment products.~~CIPs. These 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.

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~~from acquired ~~contracts or new capital commitments for certain products.~~contracts. The fair value of the remaining aggregate contingent payments at June 30, ~~2020~~2021 totaled ~~$37~~$34 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 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.

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 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 defendants continue to believe the claims in this lawsuit are without merit.

~~On June 16, 2016,~~ ~~iShares~~ ~~Trust, BlackRock, Inc. and certain of its advisory subsidiaries, 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 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 continue to believe the claims in this lawsuit are without merit.

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 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. On February 11, 2020, the court denied the plaintiffs’ motion to certify the CTF class and granted their motion to certify the Plan class. On April 27, 2020, the Ninth Circuit denied the plaintiffs’ request to immediately appeal the class certification ruling. ~~The defendants believe~~On September 24, 2020, the ~~claims~~parties cross-moved for summary judgment, both of which were denied on January 12, 2021. On February 5, 2021, the parties reached a settlement in ~~this lawsuit are without merit.~~principle for $9.65 million which, if approved by the court, will resolve the lawsuit. On March 23, 2021, the plaintiffs filed a motion for preliminary approval of the settlement, which was granted on July 12, 2021. A hearing where the court will consider final approval of the settlement is currently scheduled for October 21, 2021.

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 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. The amount of securities on loan as of June 30, ~~2020~~2021 and subject to this type of indemnification was ~~$234~~$297 billion. In the Company’s capacity as lending agent, cash and securities totaling ~~$251~~$316 billion were held as collateral for indemnified securities on loan at June 30, ~~2020.~~2021. The fair value of these indemnifications was not material at June 30, ~~2020.~~2021.

The table below presents detail of revenue for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 and includes the product mix of investment advisory, administration fees and securities lending revenue, ~~(collectively “base fees”)~~ and performance fees.

	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	381	$	385	$	779	$	760	$	641	$	381	$	1,217	$	779
iShares ETFs		792		870		1,671		1,717
ETFs										1,156		792		2,224		1,671
Non-ETF Index		178		163		341		327		198		178		374		341
Equity subtotal		1,351		1,418		2,791		2,804		1,995		1,351		3,815		2,791
Fixed income:
Active		464		474		945		931		545		464		1,070		945
iShares ETFs		261		234		520		454
ETFs										294		261		589		520
Non-ETF Index		129		98		241		195		116		129		229		241
Fixed income subtotal		854		806		1,706		1,580		955		854		1,888		1,706
Multi-asset		270		288		563		564		344		270		672		563
Alternatives:
Illiquid alternatives		128		118		276		228		167		128		335		276
Liquid alternatives		117		102		229		196		150		117		297		229
Currency and commodities⁽¹⁾		35		24		67		48		55		35		108		67
Alternatives subtotal		280		244		572		472		372		280		740		572
Long-Term		2,755		2,756		5,632		5,420
Long-term										3,666		2,755		7,115		5,632
Cash management		211		147		389		288		91		211		234		389
Total base fees		2,966		2,903		6,021		5,708
Total investment advisory, administration fees and securities lending revenue										3,757		2,966		7,349		6,021
Investment advisory performance fees:
Equity		23		4		25		4		36		23		62		25
Fixed income		2		—		4		2		15		2		29		4
Multi-asset		2		6		3		6		9		2		17		3
Alternatives:
Illiquid alternatives		32		15		49		35		90		32		97		49
Liquid alternatives		53		39		72		43		190		53		264		72
Alternatives subtotal		85		54		121		78		280		85		361		121
Total performance fees		112		64		153		90		340		112		469		153
Technology services revenue		278		237		552		441		316		278		622		552
Distribution fees:
Retrocessions		162		164		331		325		264		162		502		331
12b-1 fees (US mutual fund distribution fees)		78		88		169		177		87		78		172		169
Other		13		15		29		27		18		13		35		29
Total distribution fees		253		267		529		529		369		253		709		529
Advisory and other revenue:
Advisory		17		22		34		41		9		17		24		34
Other		22		31		69		61		29		22		45		69
Total advisory and other revenue		39		53		103		102		38		39		69		103
Total revenue	$	3,648	$	3,524	$	7,358	$	6,870	$	4,820	$	3,648	$	9,218	$	7,358

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

	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
By client type:
Retail	$	825	$	846	$	1,697	$	1,672	$	1,231	$	825	$	2,356	$	1,697
iShares ETFs		1,089		1,128		2,259		2,219
ETFs										1,505		1,089		2,922		2,259
Institutional:
Active		546		537		1,120		1,037		657		546		1,307		1,120
Index		295		245		556		492		273		295		530		556
Total institutional		841		782		1,676		1,529		930		841		1,837		1,676
Long-Term		2,755		2,756		5,632		5,420
Long-term										3,666		2,755		7,115		5,632
Cash management		211		147		389		288		91		211		234		389
Total	$	2,966	$	2,903	$	6,021	$	5,708	$	3,757	$	2,966	$	7,349	$	6,021

By investment style:
Active	$	1,354	$	1,365	$	2,781	$	2,672	$	1,842	$	1,354	$	3,581	$	2,781
Index and iShares ETFs		1,401		1,391		2,851		2,748
Long-Term		2,755		2,756		5,632		5,420
Index and ETFs										1,824		1,401		3,534		2,851
Long-term										3,666		2,755		7,115		5,632
Cash management		211		147		389		288		91		211		234		389
Total	$	2,966	$	2,903	$	6,021	$	5,708	$	3,757	$	2,966	$	7,349	$	6,021

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 June 30, ~~2020~~2021 and ~~2019:~~2020:

The table below presents changes in the deferred carried interest liability, which is included in other liabilities on the condensed consolidated statements of financial condition, for the three and six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Beginning balance	$	535		$	327		$	483		$	293		$	748		$	535		$	584		$	483
Net increase (decrease) in unrealized allocations		(87	)		48			(25	)		99			461			(87	)		627			(25	)
Performance fee revenue recognized		(30	)		(10	)		(40	)		(27	)		(77	)		(30	)		(79	)		(40	)
Ending balance	$	418		$	365		$	418		$	365		$	1,132		$	418		$	1,132		$	418

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 June 30, ~~2020~~2021 and ~~2019:~~2020:

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 June 30, ~~2020,~~2021, the estimated fixed minimum fees for the remainder of the year approximated ~~$330~~$375 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 six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, which is included in other liabilities on the condensed consolidated statements of financial condition:

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Beginning balance	$	114		$	73		$	116		$	70		$	111		$	114		$	123		$	116
Acquisition⁽¹⁾⁽²⁾		—			24			—			24
Additions ⁽²⁾		28			12			58			23
Additions ⁽¹⁾														26			28			44			58
Revenue recognized that was included in the beginning balance		(34	)		(9	)		(66	)		(17	)		(30	)		(34	)		(60	)		(66	)
Ending balance	$	108		$	100		$	108		$	100		$	107		$	108		$	107		$	108

Restricted stock and restricted stock units (“RSUs”) activity for the six months ended June 30, ~~2020~~2021 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, 2019		2,236,452		$	444.02
December 31, 2020							2,139,930		$	489.81
Granted		935,337		$	532.09		842,669		$	741.31
Converted		(873,774	)	$	425.37		(721,020	)	$	507.97
Forfeited		(61,736	)	$	476.20		(33,638	)	$	574.77
June 30, 2020⁽¹⁾		2,236,279		$	487.25
June 30, 2021							2,227,941		$	577.78

In January ~~2020,~~2021, the Company granted ~~504,403~~470,253 RSUs or shares of restricted stock to employees as part of ~~2019~~2020 annual incentive compensation that vest ratably over three years from the date of grant and ~~393,161~~247,621 RSUs or shares of restricted stock to employees that cliff vest 100% on January 31, ~~2023.~~2024. 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 six months ended June 30, ~~2020~~2021 was ~~$498~~$625 million.

At June 30, ~~2020,~~2021, the intrinsic value of outstanding RSUs was ~~$1.2~~$1.9 billion, reflecting a closing stock price of ~~$544.09.~~$874.97.

At June 30, ~~2020,~~2021, total unrecognized stock-based compensation expense related to unvested RSUs was ~~$587~~$717 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~1.6~~1.5 years.

Performance-based RSU activity for the six months ended June 30, ~~2020~~2021 is summarized below.

Outstanding at	Performance- Based RSUs			Weighted- Average Grant Date Fair Value		Performance- Based RSUs			Weighted- Average Grant Date Fair Value
December 31, 2019		742,918		$	436.84
December 31, 2020							700,217		$	494.51
Granted		238,478		$	533.58		162,029		$	739.22
Additional shares granted due to attainment of performance measures		30,600		$	375.26		4,545		$	566.44
Converted		(311,779	)	$	375.26		(193,872	)	$	566.44
June 30, 2020		700,217		$	494.51
June 30, 2021							672,919		$	533.19

In January ~~2020,~~2021, the Company granted ~~238,478~~162,029 performance-based RSUs to certain employees that cliff vest 100% on January 31, ~~2023.~~2024. 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 ~~2020,~~2021, the Company ~~also~~ granted ~~30,600~~4,545 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 six months ended June 30, ~~2020~~2021 was ~~$139~~$122 million.

At June 30, ~~2020,~~2021, the intrinsic value of outstanding performance-based RSUs was ~~$381~~$589 million, reflecting a closing stock price of ~~$544.09.~~$874.97.

At June 30, ~~2020,~~2021, total unrecognized stock-based compensation expense related to unvested performance-based awards was ~~$175~~$220 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~1.7~~1.5 years.

See Note 18, Stock-Based Compensation, in the ~~2019~~2020 Form 10-K for more information on performance-based RSUs.

Stock ~~option activity for the six months ended~~options outstanding at both June 30, 2021 and December 31, 2020 were 1,915,792 with a weighted-average exercise price of $513.50.

contingent upon the achievement of obtaining 125% of BlackRock's grant-date stock price within five years from the grant date and the attainment of Company performance measures during the four-year performance period. If both hurdles are achieved, the award will vest in 3 equal installments at the end of 2022, 2023 and 2024, respectively. The stock price hurdle was achieved in December of 2020.

At June 30, ~~2020,~~2021, total unrecognized stock-based compensation expense related to unvested performance-based stock options was ~~$98~~$62 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~3.4~~2.4 years. At June 30, 2021, the weighted-average remaining life of the awards is approximately 5.4 years.

See Note 18, Stock-Based Compensation, in the ~~2019~~2020 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 June 30, ~~2020,~~2021, the Company was required to maintain approximately ~~$2.1~~$2.4 billion in net capital in certain regulated subsidiaries, including 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 (“UK”), 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)~~AOCI for the three and six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Beginning balance	$	(810	)	$	(623	)	$	(571	)	$	(691	)	$	(411	)	$	(810	)	$	(337	)	$	(571	)
Foreign currency translation adjustments⁽¹⁾		29			(41	)		(210	)		27			23			29			(51	)		(210	)
Ending balance	$	(781	)	$	(664	)	$	(781	)	$	(664	)	$	(388	)	$	(781	)	$	(388	)	$	(781	)

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

~~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 six months ended June 30, ~~2020,~~2021, the Company repurchased 0.8 million common shares ~~in open market transactions~~ under the Company’s existing share repurchase program for approximately ~~$412~~$600 million. At June 30, ~~2020,~~2021, there were ~~5.1~~4.3 million shares still authorized to be ~~repurchased. During~~repurchased under the ~~six months ended June 30, 2020, the Company has repurchased an aggregate of approximately $1.5 billion of common shares, including the repurchase from PNC described above.~~program.

~~The~~Income tax expense for the three and six months ended June 30, ~~2020 income~~2021 included $171 million noncash net expense related to the revaluation of certain deferred tax ~~benefit included~~assets and liabilities as a ~~discrete~~result of legislation enacted in the UK increasing its corporate tax ~~benefit of $241 million recognized in connection with the Charitable Contribution.~~rate.

The six months ended June 30, ~~2020~~2021 and ~~2019~~2020 income tax expense ~~(benefit) included $66~~reflected $39 million and ~~$14~~$66 million, respectively, of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of each year.

The six months ended June 30, 2020 income tax expense included discrete tax benefit of $241 million recognized in connection with the charitable contribution of BlackRock’s remaining 20% stake in PennyMac Financial Services, Inc. (the “Charitable Contribution”).

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 outstanding nonvoting participating preferred stock in the calculation of average basic and diluted shares outstanding. As of June 30, 2020, there were 0 shares of preferred stock outstanding.

The following table sets forth the computation of basic and diluted ~~EPS~~earnings per share (“EPS”) for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 under the treasury stock method:

	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(in millions, except shares and per share data)	2020		2019		2020		2019		2021		2020		2021		2020
Net income attributable to BlackRock	$	1,214	$	1,003	$	2,020	$	2,056
Net income attributable to BlackRock, Inc.									$	1,378	$	1,214	$	2,577	$	2,020
Basic weighted-average shares outstanding		153,732,878		155,354,552		154,488,079		156,803,244		152,443,039		153,732,878		152,504,902		154,488,079
Dilutive effect of nonparticipating RSUs and stock options		979,154		1,006,189		1,068,108		1,050,467
Dilutive effect of:
Nonparticipating RSUs										1,304,463		979,154		1,294,242		1,068,108
Stock options										670,079		—		560,209		—
Total diluted weighted-average shares outstanding		154,712,032		156,360,741		155,556,187		157,853,711		154,417,581		154,712,032		154,359,353		155,556,187
Basic earnings per share	$	7.90	$	6.46	$	13.08	$	13.11	$	9.04	$	7.90	$	16.90	$	13.08
Diluted earnings per share	$	7.85	$	6.41	$	12.99	$	13.02	$	8.92	$	7.85	$	16.69	$	12.99

The amount of anti-dilutive RSUs was immaterial for the three and six months ended June 30, 2021 and 2020. Certain performance-based RSUs were excluded from the diluted EPS calculation because the designated contingency was not met for the three and six months ended June 30, 2021 and 2020, ~~and 2019.~~respectively. In addition, performance-based ~~RSUs and~~ stock options ~~are~~were excluded from ~~potential dilution until~~the diluted EPS calculation for the three and six months ended June 30, 2020 because the designated ~~performance conditions are~~contingency was not 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 six months ended June 30, ~~2020~~2021 and ~~2019~~2020 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				Six Months Ended				Three Months Ended				Six Months Ended
(in millions)	June 30,				June 30,				June 30,				June 30,
Revenue	2020		2019		2020		2019		2021		2020		2021		2020
Americas	$	2,470	$	2,366	$	4,950	$	4,606	$	3,158	$	2,470	$	5,968	$	4,950
Europe		1,020		995		2,087		1,938		1,440		1,020		2,827		2,087
Asia-Pacific		158		163		321		326		222		158		423		321
Total revenue	$	3,648	$	3,524	$	7,358	$	6,870	$	4,820	$	3,648	$	9,218	$	7,358

See Note 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 June 30, ~~2020~~2021 and December 31, ~~2019~~2020 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)	June 30,		December 31,		June 30,		December 31,
Long-lived Assets	2020		2019		2021		2020
Americas	$	13,811	$	13,830	$	14,660	$	13,784
Europe		1,355		1,360		1,349		1,360
Asia-Pacific		87		87		94		88
Total long-lived assets	$	15,253	$	15,277	$	16,103	$	15,232

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

In July 2020, the United Kingdom enacted legislation increasing its corporate tax rate. The legislation will result in a revaluation of certain of the Company’s deferred tax assets and liabilities, which will result in a noncash net income tax expense of approximately $55 million in the third quarter of 2020.

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 continued 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; (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”); (4) the relative and absolute investment performance of BlackRock’s investment products; (5) BlackRock’s ability to develop new products and services that address client preferences; (6) the impact of increased competition; (7) the impact of future acquisitions or divestitures; (8) BlackRock’s ability to integrate acquired businesses successfully; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) terrorist activities, civil unrest, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; ~~(16)~~(18) the ability to attract and retain highly talented professionals; ~~(17)~~(19) fluctuations in the carrying value of BlackRock’s economic investments; ~~(18)~~(20) 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; ~~(19)~~(21) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; ~~(20)~~(22) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; ~~(21)~~(23) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (24) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds (“ETF”) platform; ~~(22)~~(25) 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 ~~(23)~~(26) 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 ~~$7.32~~$9.5 trillion of AUM at June 30, ~~2020.~~2021. With approximately ~~16,300~~16,900 employees in more than 30 countries who serve clients in over 100 countries across the globe, 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 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.

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.~~intermediaries.

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.

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.

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

BlackRock continues to actively monitor COVID-19 developments and their potential impact on the Company’s employees, business and operations, particularly in jurisdictions where BlackRock has significant employee populations and/or business activity.

The COVID-19 pandemic continues to result in authorities implementing numerous measures attempting 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~~aggregate extent to which COVID-19, and ~~the related global economic crisis,~~existing and new variants of COVID-19, affect ~~our~~BlackRock’s 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~~the emergence and ~~other third parties (including new financial regulation~~spread of variants of the COVID-19 virus, the continuing prevalence of severe, unconstrained and/or escalating rates of infection in certain countries and ~~other regulatory reform) in response to the pandemic,~~regions, and the ~~effects~~availability, adoption and efficacy of treatments and vaccines. See Part II, Item 1A - Risk Factors, of this filing for further information on ~~our products, clients, vendors~~the possible future impact of the COVID-19 pandemic on BlackRock’s business, results of operations 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.~~financial condition.

~~Following~~On December 31, 2020, the ~~June 2016 vote to exit~~United Kingdom (“UK”) and the European Union (“EU”)~~, commonly referred~~ reverted to ~~as Brexit, the United Kingdom (“UK”) left~~being distinct regulatory, legal and customs territories. The UK and the EU ~~on January 31, 2020~~concluded a free trade agreement, known as the “EU-UK Trade and ~~entered an eleven-month transition period during which~~Cooperation Agreement.” The agreement does not include any substantive provisions governing cross-border trade in financial services between the UK and ~~UK-based entities, will retain~~ the ~~rights and obligations of EU membership.~~

~~Substantial uncertainty remains surrounding the future relationship~~EU. As a result, since January 1, 2021, cross-border financial services trade between the UK and the EU ~~but the UK government~~ has ~~indicated its preference for negotiating a trade deal with the EU before the end of the transition period rather than continuing Single Market or Customs Union membership.~~been governed by their respective financial services regulations and market access regimes. BlackRock ~~is implementing~~implemented 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.~~this outcome. These steps, ~~many of~~ which ~~are time consuming and costly,~~may add complexity to BlackRock’s future European operations, include effecting organizational, governance and operational changes, applying for and receiving additional licenses and permissions in the EU, and engaging in client ~~communications, and are expected to add complexity to BlackRock’s European operations.~~communications. In addition, depending on ~~the terms of~~how the future relationship between the UK and the EU develops, BlackRock may experience further organizational and operational challenges and incur additional costs in connection with its European operations, ~~during the transition period~~particularly with regard to delegation and ~~post-Brexit,~~outsourcing, which may impede the Company’s growth or impact its financial performance.

On February 1, 2021, the Company acquired 100% of the equity interests of Aperio Group, LLC (the “Aperio Transaction” or “Aperio”), a pioneer in customizing tax-optimized index equity separately managed accounts (“SMAs”) for approximately $1.1 billion in cash, using existing cash resources. The acquisition of Aperio increased BlackRock’s SMA assets under management and expanded the breadth of the Company’s capabilities via tax-managed strategies across factors, broad market indexing, and investor Environmental, Social, and Governance preferences across all asset classes.

On February 13, 2020, BlackRock announced the establishment of The BlackRock Foundation (the “Foundation”) and the contribution of its remaining 20% stake in PennyMac Financial Services, Inc. (“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 six months ended June 30, 2020. The Charitable Contribution provides long-term funding for BlackRock’s philanthropic investments and partnerships. The general and administration expense, nonoperating gain and associated tax benefit related to the Charitable Contribution have been excluded from as adjusted results.

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(in millions, except shares and per share data)	2020			2019			2020			2019			2021			2020			2021			2020
GAAP basis:
Total revenue	$	3,648		$	3,524		$	7,358		$	6,870		$	4,820		$	3,648		$	9,218		$	7,358
Total expense		2,242			2,246			5,268			4,359			2,889			2,242			5,742			5,268
Operating income	$	1,406		$	1,278		$	2,090		$	2,511		$	1,931		$	1,406		$	3,476		$	2,090
Operating margin		38.5	%		36.3	%		28.4	%		36.6	%		40.1	%		38.5	%		37.7	%		28.4	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests		169			47			277			165			101			169			73			277
Income tax benefit (expense)		(361	)		(322	)		(347	)		(620	)
Income tax expense														(654	)		(361	)		(972	)		(347	)
Net income attributable to BlackRock	$	1,214		$	1,003		$	2,020		$	2,056		$	1,378		$	1,214		$	2,577		$	2,020
Diluted earnings per common share	$	7.85		$	6.41		$	12.99		$	13.02		$	8.92		$	7.85		$	16.69		$	12.99
Effective tax rate		22.9	%		24.3	%		14.7	%		23.2	%		32.2	%		22.9	%		27.4	%		14.7	%
As adjusted⁽¹⁾:
Operating income	$	1,406		$	1,278		$	2,679		$	2,511		$	1,931		$	1,406		$	3,476		$	2,679
Operating margin		43.7	%		43.1	%		42.7	%		42.5	%		44.9	%		43.7	%		44.7	%		42.7	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests	$	169		$	47		$	155		$	165		$	101		$	169		$	73		$	155
Net income attributable to BlackRock	$	1,214		$	1,003		$	2,246		$	2,056		$	1,549		$	1,214		$	2,748		$	2,246
Diluted earnings per common share	$	7.85		$	6.41		$	14.44		$	13.02		$	10.03		$	7.85		$	17.80		$	14.44
Effective tax rate		22.9	%		24.3	%		20.7	%		23.2	%		23.8	%		22.9	%		22.6	%		20.7	%
Other:
Assets under management (end of period)	$	7,317,949		$	6,842,482		$	7,317,949		$	6,842,482
AUM (end of period)													$	9,495,993		$	7,317,949		$	9,495,993		$	7,317,949
Diluted weighted-average common shares outstanding⁽²⁾		154,712,032			156,360,741			155,556,187			157,853,711			154,417,581			154,712,032			154,359,353			155,556,187
Shares outstanding (end of period)		152,460,239			155,366,861			152,460,239			155,366,861			152,298,784			152,460,239			152,298,784			152,460,239
Book value per share⁽³⁾⁽²⁾	$	214.68		$	205.28		$	214.68		$	205.28		$	236.59		$	214.68		$	236.59		$	214.68
Cash dividends declared and paid per share	$	3.63		$	3.30		$	7.26		$	6.60		$	4.13		$	3.63		$	8.26		$	7.26

THREE MONTHS ENDED JUNE 30, ~~2020~~2021 COMPARED WITH THREE MONTHS ENDED JUNE 30, ~~2019~~2020

GAAP. Operating income of ~~$1,406~~$1,931 million increased $525 million and operating margin of ~~38.5%~~40.1% increased ~~$128 million and 220~~160 bps ~~respectively,~~ from the second quarter of ~~2019. Operating~~2020. Increases in operating income and operating margin reflected ~~higher base fees, driven by~~significant market gains as well as strong organic growth, ~~and higher securities lending revenue,~~ higher performance fees and ~~17% growth in~~ technology services ~~revenue. The increase in operating income also reflected lower~~revenue, partially offset by higher expense, including higher employee compensation and benefits, higher volume-related expense and higher general and administration ~~expense, including the impact of $59 million of product launch costs in the second quarter of 2019.~~expense. Nonoperating income (expense) less net income (loss) attributable to noncontrolling interests (“NCI”) ~~increased $122~~decreased $68 million from the second quarter of ~~2019, primarily driven by~~2020, reflecting lower mark-to-market gains on the Company’s un-hedged seed capital portfolios and certain minority investments, ~~and~~partially offset by higher mark-to-market gains on the Company’s private equity co-investment portfolio.

Second quarter 2021 income tax expense included $171 million of noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the UK increasing its corporate ~~minority investment.~~tax rate. See Income Tax Expense within Discussion of Financial Results for more information.

Earnings per diluted common share increased ~~$1.44,~~$1.07, or ~~22%~~14%, from the second quarter of ~~2019, driven primarily by~~2020, reflecting higher operating ~~and~~income, partially offset by lower nonoperating income and a ~~lower~~higher effective tax rate ~~and a lower diluted share count~~ in the current quarter.

As Adjusted. Operating income of $1,931 million increased $525 million and operating margin of ~~43.7%~~44.9% increased 60120 bps from the second quarter of ~~2019.~~2020. Earnings perdiluted common share increased $2.18, or 28%, from the second quarter of 2020. The noncash net tax expense related to the revaluation of certain deferred tax assets and liabilities described above has been excluded from as adjusted results.

SIX MONTHS ENDED JUNE 30, ~~2020~~2021 COMPARED WITH SIX MONTHS ENDED JUNE 30, ~~2019~~2020

GAAP. Operating income of ~~$2,090~~$3,476 million ~~decreased $421~~increased $1,386 million and operating margin of ~~28.4% decreased 820~~37.7% increased 930 bps from the six months ended June 30, ~~2019.~~ ~~Operating~~2020. Increases in operating income and operating margin reflected ~~higher base fees, technology services revenue and performance fees, which were more than offset by higher expense, primarily driven by~~ the impact of $589 million related to the ~~Charitable Contribution.~~previously reported charitable contribution of BlackRock’s remaining 20% stake in PennyMac Financial Services, Inc. (the “Charitable Contribution”) during the six months ended June 30, 2020. Operating income and operating margin also reflected higher investment advisory and administration fees (collectively “base fees”), performance fees and technology services revenue, partially offset by higher employee compensation and benefits expense and higher product launch costs in 2021, including the impact of $178 million associated with the March 2021 close of the $4.9 billion BlackRock Innovation and Growth Trust.

Nonoperating income (expense) less net income (loss) attributable to NCI ~~increased $112~~decreased $204 million from the six months ended June 30, ~~2019, driven by~~2020, reflecting the impact of a 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 Charitable Contribution during the six months ended June 30, 2020, partially offset by mark-to-market ~~losses~~gains on the Company’s co-investment and un-hedged seed capital ~~investments.~~portfolios during the six months ended June 30, 2021.

Income tax expense for the six months ended June 30, ~~2020 and 2019 included $66~~2021 reflected the $171 million ~~and $14 million, respectively, of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of each year.~~ noncash net expense described above. Income tax ~~benefit (expense)~~expense for the six months ended June 30, 2020 included a discrete tax benefit of $241 million recognized in connection with the Charitable Contribution. Income tax expense for the six months ended June 30, 2021 and 2020 also reflected $39 million and $66 million, respectively, of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of each year. See Income Tax Expense within Discussion of Financial Results for more ~~information~~.information.

Earnings per diluted common share ~~decreased $0.03~~increased $3.70, or 28%, from the six months ended June 30, ~~2019,~~2020, reflecting the impact of the Charitable Contribution ~~partially offset by higher revenue, higher nonoperating income, a lower effective tax rate and a lower diluted share count for~~incurred in the six months ended June 30, ~~2020~~2020. The increase in earnings per diluted common share also included higher revenue, partially offset by higher product launch costs, lower nonoperating income, and a higher effective tax rate in the six months ended June 30, 2021..

As Adjusted. Operating income of ~~$2,679~~$3,476 million increased ~~$168~~$797 million and operating margin of ~~42.7%~~44.7% increased 20200 bps from the six months ended June 30, ~~2019.~~2020. Earnings per diluted common share increased ~~$1.42,~~$3.36, or ~~11%~~23%, from the six months ended June 30, ~~2019,~~ 2020,primarily due to higher operating income, partially offset by lower nonoperating income and a ~~lower~~higher effective tax rate ~~and a lower diluted share count~~ in the six months ended June 30, ~~2020~~2021.. Income tax expense for the six months ended June 30, 2021 excluded the $171 million noncash net expense described above. The financial impact related to the Charitable Contribution has been excluded from as adjusted ~~results.~~results for the six months ended June 30, 2020.

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“~~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:

(1)~~_Operating~~ Operating income, as adjusted, and operating margin, as ~~adjusted:~~ adjusted:

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Operating income, GAAP basis	$	1,406		$	1,278		$	2,090		$	2,511		$	1,931		$	1,406		$	3,476		$	2,090
Non-GAAP expense adjustment:
Charitable Contribution		—			—			589			—			—			—			—			589
Operating income, as adjusted		1,406			1,278			2,679			2,511			1,931			1,406			3,476			2,679
Product launch costs and commissions		—			61			87			61			—			—			185			87
Operating income used for operating margin measurement	$	1,406		$	1,339		$	2,766		$	2,572		$	1,931		$	1,406		$	3,661		$	2,766
Revenue, GAAP basis	$	3,648		$	3,524		$	7,358		$	6,870		$	4,820		$	3,648		$	9,218		$	7,358
Non-GAAP adjustments:
Distribution fees		(253	)		(267	)		(529	)		(529	)		(369	)		(253	)		(709	)		(529	)
Investment advisory fees		(176	)		(149	)		(345	)		(291	)		(154	)		(176	)		(319	)		(345	)
Revenue used for operating margin measurement	$	3,219		$	3,108		$	6,484		$	6,050		$	4,297		$	3,219		$	8,190		$	6,484
Operating margin, GAAP basis		38.5	%		36.3	%		28.4	%		36.6	%		40.1	%		38.5	%		37.7	%		28.4	%
Operating margin, as adjusted		43.7	%		43.1	%		42.7	%		42.5	%		44.9	%		43.7	%		44.7	%		42.7	%

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:

	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
Nonoperating income (expense), GAAP basis	$	357	$	57	$	286	$	182	$	270	$	357	$	316	$	286
Less: Net income (loss) attributable to NCI		188		10		9		17		169		188		243		9
Nonoperating income (expense), net of NCI		169		47		277		165		101		169		73		277
Less: Gain related to the Charitable Contribution		—		—		122		—		—		—		—		122
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted	$	169	$	47	$	155	$	165	$	101	$	169	$	73	$	155

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 six months ended June 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				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(in millions, except per share data)	2020		2019		2020		2019		2021		2020		2021		2020
Net income attributable to BlackRock, Inc., GAAP basis	$	1,214	$	1,003	$	2,020	$	2,056	$	1,378	$	1,214	$	2,577	$	2,020
Non-GAAP adjustment:
Charitable Contribution, net of tax		—		—		226		—		—		—		—		226
Income tax matters										171		—		171		—
Net income attributable to BlackRock, Inc., as adjusted	$	1,214	$	1,003	$	2,246	$	2,056	$	1,549	$	1,214	$	2,748	$	2,246
Diluted weighted-average common shares outstanding (4)		154.7		156.4		155.6		157.9
Diluted earnings per common share, GAAP basis (4)	$	7.85	$	6.41	$	12.99	$	13.02
Diluted earnings per common share, as adjusted (4)	$	7.85	$	6.41	$	14.44	$	13.02
Diluted weighted-average common shares outstanding										154.4		154.7		154.4		155.6
Diluted earnings per common share, GAAP basis									$	8.92	$	7.85	$	16.69	$	12.99
Diluted earnings per common share, as adjusted									$	10.03	$	7.85	$	17.80	$	14.44

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, operating margin, as adjusted, and nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, for information on the Charitable Contribution.

The six months ended June 30, 2020 included a discrete tax benefit of $241 million that was recognized in connection with the Charitable Contribution. The discrete tax benefit has been excluded from as adjusted results due to the ~~non-recurring~~nonrecurring nature of the 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. 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~~weighted-average common shares outstanding.

~~(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~~base 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)
																										Three Months			Six Months			Twelve Months
	AUM								Net inflows (outflows)																	Ended			Ended			Ended
	June 30,		March 31,		December 31,		June 30,		Three Months Ended June 30,			Six Months Ended June 30,			Twelve Months Ended June 30,			June 30,		March 31,		December 31,		June 30,		June 30,			June 30,			June 30,
(in millions)	2020		2020		2019		2019		2020			2020			2020			2021		2021		2020		2020		2021			2021			2021
Retail	$	695,154	$	608,824	$	703,297	$	664,906	$	16,210		$	14,684		$	29,393		$	995,483	$	934,177	$	845,917	$	695,154	$	21,386		$	57,896		$	112,767
iShares ETFs		2,162,597		1,852,190		2,240,065		2,008,867		50,970			64,802			181,509
ETFs																			3,031,505		2,813,524		2,669,007		2,162,597		75,147			143,636			263,723
Institutional:
Active		1,341,610		1,230,092		1,338,670		1,272,532		2,513			651			11,567			1,624,049		1,524,430		1,524,462		1,341,610		43,469			60,002			90,975
Index		2,482,336		2,178,499		2,599,882		2,413,191		(7,486	)		(36,589	)		(27,626	)		3,097,073		3,009,150		2,948,683		2,482,336		(80,298	)		(69,192	)		(61,319	)
Institutional subtotal		3,823,946		3,408,591		3,938,552		3,685,723		(4,973	)		(35,938	)		(16,059	)		4,721,122		4,533,580		4,473,145		3,823,946		(36,829	)		(9,190	)		29,656
Long-term		6,681,697		5,869,605		6,881,914		6,359,496		62,207			43,548			194,843			8,748,110		8,281,281		7,988,069		6,681,697		59,704			192,342			406,146
Cash management		619,351		594,089		545,949		481,208		24,198			76,639			138,426			727,603		703,916		666,252		619,351		23,339			62,529			99,239
Advisory⁽¹⁾		16,901		2,974		1,770		1,778		13,812			15,019			15,021			20,280		22,214		22,359		16,901		(2,083	)		(2,269	)		2,853
Total	$	7,317,949	$	6,466,668	$	7,429,633	$	6,842,482	$	100,217		$	135,206		$	348,290		$	9,495,993	$	9,007,411	$	8,676,680	$	7,317,949	$	80,960		$	252,602		$	508,238

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)
	June 30,		March 31,		December 31,		June 30,		Three Months Ended June 30,			Six Months Ended June 30,			Twelve Months Ended June 30,											Three Months			Six Months			Twelve Months
																										Ended			Ended			Ended
																		June 30,		March 31,		December 31,		June 30,		June 30,			June 30,			June 30,
(in millions)	2020		2020		2019		2019		2020			2020			2020			2021		2021		2020		2020		2021			2021			2021
Active	$	1,943,828	$	1,758,548	$	1,947,222	$	1,853,393	$	18,563		$	9,618		$	30,924		$	2,446,632	$	2,297,642	$	2,250,887	$	1,943,828	$	62,750		$	121,704		$	199,824
Index and iShares ETFs		4,737,869		4,111,057		4,934,692		4,506,103		43,644			33,930			163,919
Index and ETFs																			6,301,478		5,983,639		5,737,182		4,737,869		(3,046	)		70,638			206,322
Long-term		6,681,697		5,869,605		6,881,914		6,359,496		62,207			43,548			194,843			8,748,110		8,281,281		7,988,069		6,681,697		59,704			192,342			406,146
Cash management		619,351		594,089		545,949		481,208		24,198			76,639			138,426			727,603		703,916		666,252		619,351		23,339			62,529			99,239
Advisory⁽¹⁾		16,901		2,974		1,770		1,778		13,812			15,019			15,021			20,280		22,214		22,359		16,901		(2,083	)		(2,269	)		2,853
Total	$	7,317,949	$	6,466,668	$	7,429,633	$	6,842,482	$	100,217		$	135,206		$	348,290		$	9,495,993	$	9,007,411	$	8,676,680	$	7,317,949	$	80,960		$	252,602		$	508,238

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)
																										Three Months			Six Months			Twelve Months
	AUM								Net inflows (outflows)																	Ended			Ended			Ended
	June 30,		March 31,		December 31,		June 30,		Three Months Ended June 30,			Six Months Ended June 30,			Twelve Months Ended June 30,			June 30,		March 31,		December 31,		June 30,		June 30,			June 30,			June 30,
(in millions)	2020		2020		2019		2019		2020			2020			2020			2021		2021		2020		2020		2021			2021			2021
Equity	$	3,519,225	$	2,959,662	$	3,820,329	$	3,485,869	$	(4,414	)	$	(1,252	)	$	47,264		$	5,034,391	$	4,745,781	$	4,419,806	$	3,519,225	$	(26,453	)	$	23,407		$	73,654
Fixed income		2,411,092		2,235,815		2,315,392		2,191,130		60,266			24,894			98,158			2,712,165		2,620,460		2,674,488		2,411,092		41,290			102,129			235,197
Multi-asset		551,362		494,177		568,121		523,728		(4,754	)		(363	)		13,988			748,770		677,372		658,733		551,362		36,137			49,889			63,467
Alternatives:
Illiquid alternatives		76,607		75,101		75,349		67,910		1,585			4,152			11,335			95,961		92,207		85,770		76,607		3,347			9,572			16,303
Liquid alternatives		63,120		58,127		59,048		55,514		1,395			2,956			5,634			81,560		76,266		73,218		63,120		3,319			5,673			9,262
Currency and commodities⁽²⁾		60,291		46,723		43,675		35,345		8,129			13,161			18,464			75,263		69,195		76,054		60,291		2,064			1,672			8,263
Alternatives subtotal		200,018		179,951		178,072		158,769		11,109			20,269			35,433			252,784		237,668		235,042		200,018		8,730			16,917			33,828
Long-term		6,681,697		5,869,605		6,881,914		6,359,496		62,207			43,548			194,843			8,748,110		8,281,281		7,988,069		6,681,697		59,704			192,342			406,146
Cash management		619,351		594,089		545,949		481,208		24,198			76,639			138,426			727,603		703,916		666,252		619,351		23,339			62,529			99,239
Advisory⁽¹⁾		16,901		2,974		1,770		1,778		13,812			15,019			15,021			20,280		22,214		22,359		16,901		(2,083	)		(2,269	)		2,853
Total	$	7,317,949	$	6,466,668	$	7,429,633	$	6,842,482	$	100,217		$	135,206		$	348,290		$	9,495,993	$	9,007,411	$	8,676,680	$	7,317,949	$	80,960		$	252,602		$	508,238

The following table presents the component changes in AUM by client type and product type for the three months ended June 30, ~~2020.~~2021.

																	Net
	March 31,		Net inflows			Market		FX			June 30,		Average		March 31,		inflows			Market			FX			June 30,		Average
(in millions)	2020		(outflows)			change		impact⁽¹⁾			2020		AUM⁽²⁾		2021		(outflows)			change			impact⁽¹⁾			2021		AUM⁽²⁾
Retail:
Equity	$	204,742	$	7,134		$	41,803	$	425		$	254,104	$	234,908	$	407,715	$	9,866		$	28,643		$	103		$	446,327	$	431,075
Fixed income		278,057		8,656			13,721		726			301,160		290,404		349,640		6,689			2,480			671			359,480		355,500
Multi-asset		101,032		(1,345	)		12,127		120			111,934		107,444		139,115		879			7,161			73			147,228		144,138
Alternatives		24,993		1,765			1,158		40			27,956		26,315		37,707		3,952			748			41			42,448		40,310
Retail subtotal		608,824		16,210			68,809		1,311			695,154		659,071		934,177		21,386			39,032			888			995,483		971,023
iShares ETFs:
ETFs:
Equity		1,253,690		(14,249	)		226,848		4,025			1,470,314		1,384,781		2,077,818		51,376			126,762			1,872			2,257,828		2,186,497
Fixed income		554,009		57,306			20,451		2,332			634,098		594,631		667,829		21,710			9,639			831			700,009		686,205
Multi-asset		4,499		52			503		20			5,074		4,850		6,958		379			310			16			7,663		7,359
Alternatives		39,992		7,861			5,205		53			53,111		46,967		60,919		1,682			3,380			24			66,005		65,379
iShares ETFs subtotal		1,852,190		50,970			253,007		6,430			2,162,597		2,031,229
ETFs subtotal																2,813,524		75,147			140,091			2,743			3,031,505		2,945,440
Institutional:
Active:
Equity		112,440		(316	)		20,937		871			133,932		124,521		176,081		(3,958	)		11,876			175			184,174		181,046
Fixed income		625,345		4,978			33,808		2,562			666,693		646,344		692,474		9,058			14,558			581			716,671		706,642
Multi-asset		381,416		(3,337	)		45,012		3,462			426,553		406,737		522,220		35,148			26,086			1,128			584,582		549,152
Alternatives		110,891		1,188			1,787		566			114,432		112,512		133,655		3,221			1,708			38			138,622		136,351
Active subtotal		1,230,092		2,513			101,544		7,461			1,341,610		1,290,114		1,524,430		43,469			54,228			1,922			1,624,049		1,573,191
Index:
Equity		1,388,790		3,017			261,528		7,540			1,660,875		1,555,131		2,084,167		(83,737	)		143,764			1,868			2,146,062		2,127,456
Fixed income		778,404		(10,674	)		38,702		2,709			809,141		795,846		910,517		3,833			21,230			425			936,005		931,252
Multi-asset		7,230		(124	)		682		13			7,801		7,628		9,079		(269	)		500			(13	)		9,297		9,193
Alternatives		4,075		295			153		(4	)		4,519		4,229		5,387		(125	)		451			(4	)		5,709		5,671
Index subtotal		2,178,499		(7,486	)		301,065		10,258			2,482,336		2,362,834		3,009,150		(80,298	)		165,945			2,276			3,097,073		3,073,572
Institutional subtotal		3,408,591		(4,973	)		402,609		17,719			3,823,946		3,652,948		4,533,580		(36,829	)		220,173			4,198			4,721,122		4,646,763
Long-term		5,869,605		62,207			724,425		25,460			6,681,697		6,343,248		8,281,281		59,704			399,296			7,829			8,748,110		8,563,226
Cash management		594,089		24,198			143		921			619,351		621,985		703,916		23,339			(84	)		432			727,603		732,270
Advisory⁽³⁾		2,974		13,812			94		21			16,901		10,546		22,214		(2,083	)		141			8			20,280		21,596
Total	$	6,466,668	$	100,217		$	724,662	$	26,402		$	7,317,949	$	6,975,779	$	9,007,411	$	80,960		$	399,353		$	8,269		$	9,495,993	$	9,317,092

The following table presents the component changes in AUM by investment style and product type for the three months ended June 30, ~~2020.~~2021.

																	Net
	March 31,		Net inflows			Market		FX			June 30,		Average		March 31,		inflows			Market			FX			June 30,		Average
(in millions)	2020		(outflows)			change		impact⁽¹⁾			2020		AUM⁽²⁾		2021		(outflows)			change			impact⁽¹⁾			2021		AUM⁽²⁾
Active:
Equity	$	252,758	$	7,647		$	51,204	$	1,200		$	312,809	$	287,991	$	443,780	$	4,182		$	31,012		$	266		$	479,240	$	465,115
Fixed income		887,458		12,645			46,761		3,279			950,143		919,877		1,021,168		15,370			16,743			1,236			1,054,517		1,040,682
Multi-asset		482,450		(4,682	)		57,139		3,582			538,489		514,181		661,333		36,026			33,246			1,201			731,806		693,285
Alternatives		135,882		2,953			2,946		606			142,387		138,826		171,361		7,172			2,457			79			181,069		176,660
Active subtotal		1,758,548		18,563			158,050		8,667			1,943,828		1,860,875		2,297,642		62,750			83,458			2,782			2,446,632		2,375,742
Index and iShares ETFs:
iShares ETFs:
Index and ETFs:
ETFs:
Equity		1,253,690		(14,249	)		226,848		4,025			1,470,314		1,384,781		2,077,818		51,376			126,762			1,872			2,257,828		2,186,497
Fixed income		554,009		57,306			20,451		2,332			634,098		594,631		667,829		21,710			9,639			831			700,009		686,205
Multi-asset		4,499		52			503		20			5,074		4,850		6,958		379			310			16			7,663		7,359
Alternatives		39,992		7,861			5,205		53			53,111		46,967		60,919		1,682			3,380			24			66,005		65,379
iShares ETFs subtotal		1,852,190		50,970			253,007		6,430			2,162,597		2,031,229
ETFs subtotal																2,813,524		75,147			140,091			2,743			3,031,505		2,945,440
Non-ETF Index:
Equity		1,453,214		2,188			273,064		7,636			1,736,102		1,626,569		2,224,183		(82,011	)		153,271			1,880			2,297,323		2,274,462
Fixed income		794,348		(9,685	)		39,470		2,718			826,851		812,717		931,463		4,210			21,525			441			957,639		952,712
Multi-asset		7,228		(124	)		682		13			7,799		7,628		9,081		(268	)		501			(13	)		9,301		9,198
Alternatives		4,077		295			152		(4	)		4,520		4,230		5,388		(124	)		450			(4	)		5,710		5,672
Non-ETF Index subtotal		2,258,867		(7,326	)		313,368		10,363			2,575,272		2,451,144		3,170,115		(78,193	)		175,747			2,304			3,269,973		3,242,044
Index & iShares ETFs subtotal		4,111,057		43,644			566,375		16,793			4,737,869		4,482,373
Index & ETFs subtotal																5,983,639		(3,046	)		315,838			5,047			6,301,478		6,187,484
Long-term		5,869,605		62,207			724,425		25,460			6,681,697		6,343,248		8,281,281		59,704			399,296			7,829			8,748,110		8,563,226
Cash management		594,089		24,198			143		921			619,351		621,985		703,916		23,339			(84	)		432			727,603		732,270
Advisory⁽³⁾		2,974		13,812			94		21			16,901		10,546		22,214		(2,083	)		141			8			20,280		21,596
Total	$	6,466,668	$	100,217		$	724,662	$	26,402		$	7,317,949	$	6,975,779	$	9,007,411	$	80,960		$	399,353		$	8,269		$	9,495,993	$	9,317,092

The following table presents the component changes in AUM by product type for the three months ended June 30, ~~2020.~~2021.

																	Net
	March 31,		Net inflows			Market			FX		June 30,		Average		March 31,		inflows			Market			FX		June 30,		Average
(in millions)	2020		(outflows)			change			impact⁽¹⁾		2020		AUM⁽²⁾		2021		(outflows)			change			impact⁽¹⁾		2021		AUM⁽²⁾
Equity	$	2,959,662	$	(4,414	)	$	551,116		$	12,861	$	3,519,225	$	3,299,341	$	4,745,781	$	(26,453	)	$	311,045		$	4,018	$	5,034,391	$	4,926,074
Fixed income		2,235,815		60,266			106,682			8,329		2,411,092		2,327,225		2,620,460		41,290			47,907			2,508		2,712,165		2,679,599
Multi-asset		494,177		(4,754	)		58,324			3,615		551,362		526,659		677,372		36,137			34,057			1,204		748,770		709,842
Alternatives:
Illiquid alternatives		75,101		1,585			(365	)		286		76,607		75,954		92,207		3,347			352			55		95,961		94,238
Liquid alternatives		58,127		1,395			3,280			318		63,120		60,226		76,266		3,319			1,945			30		81,560		79,138
Currency and commodities⁽⁴⁾		46,723		8,129			5,388		��	51		60,291		53,843
Currency and commodities⁽⁴⁾																69,195		2,064			3,990			14		75,263		74,335
Alternatives subtotal		179,951		11,109			8,303			655		200,018		190,023		237,668		8,730			6,287			99		252,784		247,711
Long-term		5,869,605		62,207			724,425			25,460		6,681,697		6,343,248		8,281,281		59,704			399,296			7,829		8,748,110		8,563,226
Cash management		594,089		24,198			143			921		619,351		621,985		703,916		23,339			(84	)		432		727,603		732,270
Advisory⁽³⁾		2,974		13,812			94			21		16,901		10,546
Advisory⁽³⁾																22,214		(2,083	)		141			8		20,280		21,596
Total	$	6,466,668	$	100,217		$	724,662		$	26,402	$	7,317,949	$	6,975,779	$	9,007,411	$	80,960		$	399,353		$	8,269	$	9,495,993	$	9,317,092

~~AUM increased $851.3 billion to $7.32 trillion at June 30, 2020,~~ ~~driven by net market appreciation, positive net inflows and the positive impact of foreign exchange movements.~~

~~Net market appreciation of $724.7 billion was driven by global equity and fixed income market appreciation.~~

~~Long-term net inflows of $62.2 billion included $51.0 billion and $16.2 billion net inflows into~~ ~~iShares~~ ~~ETFs and retail, respectively, partially offset by net outflows of $5.0 billion from institutional clients. Net flows in long-term products are described below.~~

~~Cash management AUM increased to $619.4 billion, driven by~~ ~~net inflows of $24.2 billion.~~

~~AUM increased $26.4 billion due to the positive impact of foreign exchange movements, primarily due to the weakening of the US dollar, largely against the Euro.~~

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

December 31,

Net
inflows

Market

FX

June 30,

Average

(in millions)
2019

(outflows)

change

impact⁽¹⁾

2020

AUM⁽²⁾

Retail:

Equity
$
252,413

$
16,236

$
(11,177
)

$
(3,368
)

$
254,104

$
240,942

Fixed income

305,265

243

(977
)

(3,371
)

301,160

298,574

Multi-asset

120,439

(4,903
)

(3,048
)

(554
)

111,934

112,349

Alternatives

25,180

3,108

(207
)

(125
)

27,956

26,277

Retail subtotal

703,297

14,684

(15,409
)

(7,418
)

695,154

678,142

iShares ETFs:

Equity

1,632,972

(3,801
)

(153,420
)

(5,437
)

1,470,314

1,467,523

Fixed income

565,790

55,670

14,040

(1,402
)

634,098

587,842

Multi-asset

5,210

76

(191
)

(21
)

5,074

4,990

Alternatives

36,093

12,857

4,174

(13
)

53,111

43,199

iShares ETFs subtotal

2,240,065

64,802

(135,397
)

(6,873
)

2,162,597

2,103,554

Institutional:

Active:

Equity

141,118

708

(6,342
)

(1,552
)

133,932

129,527

Fixed income

651,368

(8,930
)

27,735

(3,480
)

666,693

652,186

Multi-asset

434,233

4,857

(8,281
)

(4,256
)

426,553

418,451

Alternatives

111,951

4,016

(492
)

(1,043
)

114,432

112,359

Active subtotal

1,338,670

651

12,620

(10,331
)

1,341,610

1,312,523

Index:

Equity

1,793,826

(14,395
)

(104,885
)

(13,671
)

1,660,875

1,629,613

Fixed income

792,969

(22,089
)

61,750

(23,489
)

809,141

802,752

Multi-asset

8,239

(393
)

(49
)

4

7,801

7,981

Alternatives

4,848

288

(541
)

(76
)

4,519

4,406

Index subtotal

2,599,882

(36,589
)

(43,725
)

(37,232
)

2,482,336

2,444,752

Institutional subtotal

3,938,552

(35,938
)

(31,105
)

(47,563
)

3,823,946

3,757,275

Long-term

6,881,914

43,548

(181,911
)

(61,854
)

6,681,697

6,538,971

Cash management

545,949

76,639

(117
)

(3,120
)

619,351

587,844

Advisory⁽³⁾

1,770

15,019

142

(30
)

16,901

6,798

Total
$
7,429,633

$
135,206

$
(181,886
)

$
(65,004
)

$
7,317,949

$
7,133,613

AUM increased $488.6 billion to $9.5 trillion at June 30, 2021, driven by net market appreciation and positive net inflows.

Long-term net inflows of $59.7 billion were comprised of net inflows of $75.1 billion and $21.4 billion into ETFs and retail, respectively, partially offset by net outflows $36.8 billion from institutional clients. Net flows in long-term products are described below.

Cash management AUM increased to $727.6 billion, driven by net inflows of $23.3 billion.

Net market appreciation of $399.4 billion was primarily driven by global equity and fixed income market appreciation.

AUM increased $8.3 billion due to the positive impact of foreign exchange movements, primarily due to the weakening of the US dollar, largely against the Euro and the Canadian dollar.

The following table presents the component changes in AUM by client type and product type for the six months ended June 30, 2021.

	December 31,		Net inflows					Market			FX			June 30,		Average
(in millions)	2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Retail:
Equity	$	338,434	$	24,199		$	41,324	$	43,286		$	(916	)	$	446,327	$	401,271
Fixed income		340,468		21,486			—		(1,300	)		(1,174	)		359,480		350,847
Multi-asset		132,624		4,874			—		9,837			(107	)		147,228		139,864
Alternatives		34,391		7,337			—		787			(67	)		42,448		38,207
Retail subtotal		845,917		57,896			41,324		52,610			(2,264	)		995,483		930,189
ETFs:
Equity		1,905,101		117,798			—		238,644			(3,715	)		2,257,828		2,080,914
Fixed income		690,033		23,315			—		(11,332	)		(2,007	)		700,009		685,500
Multi-asset		6,268		945			—		420			30			7,663		6,948
Alternatives		67,605		1,578			—		(3,151	)		(27	)		66,005		66,467
ETFs subtotal		2,669,007		143,636			—		224,581			(5,719	)		3,031,505		2,839,829
Institutional:
Active:
Equity		169,522		(3,491	)		—		18,964			(821	)		184,174		176,544
Fixed income		716,269		11,322			—		(7,836	)		(3,084	)		716,671		707,256
Multi-asset		511,242		43,631			—		32,733			(3,024	)		584,582		532,983
Alternatives		127,429		8,540			—		3,124			(471	)		138,622		133,087
Active subtotal		1,524,462		60,002			—		46,985			(7,400	)		1,624,049		1,549,870
Index:
Equity		2,006,749		(115,099	)		—		264,295			(9,883	)		2,146,062		2,076,052
Fixed income		927,718		46,006			—		(25,587	)		(12,132	)		936,005		925,527
Multi-asset		8,599		439			—		499			(240	)		9,297		8,872
Alternatives		5,617		(538	)		—		685			(55	)		5,709		5,619
Index subtotal		2,948,683		(69,192	)		—		239,892			(22,310	)		3,097,073		3,016,070
Institutional subtotal		4,473,145		(9,190	)		—		286,877			(29,710	)		4,721,122		4,565,940
Long-term		7,988,069		192,342			41,324		564,068			(37,693	)		8,748,110		8,335,958
Cash management		666,252		62,529			—		(211	)		(967	)		727,603		697,856
Advisory⁽⁴⁾		22,359		(2,269	)		—		176			14			20,280		21,952
Total	$	8,676,680	$	252,602		$	41,324	$	564,033		$	(38,646	)	$	9,495,993	$	9,055,766

The following table presents the component changes in AUM by investment style and product type for the six months ended June 30, ~~2020.~~2021.

	December 31,		Net inflows			Market			FX			June 30,		Average		December 31,		Net inflows					Market			FX			June 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾		2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Active:
Equity	$	316,145	$	11,554		$	(12,073	)	$	(2,817	)	$	312,809	$	296,949	$	410,189	$	25,202		$	—	$	45,605		$	(1,756	)	$	479,240	$	445,721
Fixed income		939,275		(9,016	)		25,926			(6,042	)		950,143		933,514		1,035,015		32,122			—		(8,317	)		(4,303	)		1,054,517		1,036,594
Multi-asset		554,672		(44	)		(11,329	)		(4,810	)		538,489		530,799		643,864		48,504			—		42,569			(3,131	)		731,806		672,842
Alternatives		137,130		7,124			(699	)		(1,168	)		142,387		138,635		161,819		15,876			—		3,912			(538	)		181,069		171,293
Active subtotal		1,947,222		9,618			1,825			(14,837	)		1,943,828		1,899,897		2,250,887		121,704			—		83,769			(9,728	)		2,446,632		2,326,450
Index and iShares ETFs:
iShares ETFs:
Index and ETFs:
ETFs:
Equity		1,632,972		(3,801	)		(153,420	)		(5,437	)		1,470,314		1,467,523		1,905,101		117,798			—		238,644			(3,715	)		2,257,828		2,080,914
Fixed income		565,790		55,670			14,040			(1,402	)		634,098		587,842		690,033		23,315			—		(11,332	)		(2,007	)		700,009		685,500
Multi-asset		5,210		76			(191	)		(21	)		5,074		4,990		6,268		945			—		420			30			7,663		6,948
Alternatives		36,093		12,857			4,174			(13	)		53,111		43,199		67,605		1,578			—		(3,151	)		(27	)		66,005		66,467
iShares ETFs subtotal		2,240,065		64,802			(135,397	)		(6,873	)		2,162,597		2,103,554
Non-ETF Index
ETFs subtotal																	2,669,007		143,636			—		224,581			(5,719	)		3,031,505		2,839,829
Non-ETF Index:
Equity		1,871,212		(9,005	)		(110,331	)		(15,774	)		1,736,102		1,703,133		2,104,516		(119,593	)		41,324		280,940			(9,864	)		2,297,323		2,208,146
Fixed income		810,327		(21,760	)		62,582			(24,298	)		826,851		819,998		949,440		46,692			—		(26,406	)		(12,087	)		957,639		947,036
Multi-asset		8,239		(395	)		(49	)		4			7,799		7,982		8,601		440			—		500			(240	)		9,301		8,877
Alternatives		4,849		288			(541	)		(76	)		4,520		4,407		5,618		(537	)		—		684			(55	)		5,710		5,620
Non-ETF Index subtotal		2,694,627		(30,872	)		(48,339	)		(40,144	)		2,575,272		2,535,520		3,068,175		(72,998	)		41,324		255,718			(22,246	)		3,269,973		3,169,679
Index & iShares ETFs subtotal		4,934,692		33,930			(183,736	)		(47,017	)		4,737,869		4,639,074
Index & ETFs subtotal																	5,737,182		70,638			41,324		480,299			(27,965	)		6,301,478		6,009,508
Long-term		6,881,914		43,548			(181,911	)		(61,854	)		6,681,697		6,538,971		7,988,069		192,342			41,324		564,068			(37,693	)		8,748,110		8,335,958
Cash management		545,949		76,639			(117	)		(3,120	)		619,351		587,844		666,252		62,529			—		(211	)		(967	)		727,603		697,856
Advisory⁽³⁾⁽⁴⁾		1,770		15,019			142			(30	)		16,901		6,798		22,359		(2,269	)		—		176			14			20,280		21,952
Total	$	7,429,633	$	135,206		$	(181,886	)	$	(65,004	)	$	7,317,949	$	7,133,613	$	8,676,680	$	252,602		$	41,324	$	564,033		$	(38,646	)	$	9,495,993	$	9,055,766

The following table presents the component changes in AUM by product type for the six months ended June 30, ~~2020.~~2021.

	December 31,		Net inflows			Market			FX			June 30,		Average		December 31,		Net inflows					Market			FX			June 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾		2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Equity	$	3,820,329	$	(1,252	)	$	(275,824	)	$	(24,028	)	$	3,519,225	$	3,467,605	$	4,419,806	$	23,407		$	41,324	$	565,189		$	(15,335	)	$	5,034,391	$	4,734,781
Fixed income		2,315,392		24,894			102,548			(31,742	)		2,411,092		2,341,354		2,674,488		102,129			—		(46,055	)		(18,397	)		2,712,165		2,669,130
Multi-asset		568,121		(363	)		(11,569	)		(4,827	)		551,362		543,771		658,733		49,889			—		43,489			(3,341	)		748,770		688,667
Alternatives:
Illiquid alternatives		75,349		4,152			(2,129	)		(765	)		76,607		75,705		85,770		9,572			—		952			(333	)		95,961		90,987
Liquid alternatives		59,048		2,956			1,535			(419	)		63,120		60,261		73,218		5,673			—		2,736			(67	)		81,560		77,169
Currency and commodities⁽⁴⁾		43,675		13,161			3,528			(73	)		60,291		50,275
Currency and commodities⁽⁵⁾																	76,054		1,672			—		(2,243	)		(220	)		75,263		75,224
Alternatives subtotal		178,072		20,269			2,934			(1,257	)		200,018		186,241		235,042		16,917			—		1,445			(620	)		252,784		243,380
Long-term		6,881,914		43,548			(181,911	)		(61,854	)		6,681,697		6,538,971		7,988,069		192,342			41,324		564,068			(37,693	)		8,748,110		8,335,958
Cash management		545,949		76,639			(117	)		(3,120	)		619,351		587,844		666,252		62,529			—		(211	)		(967	)		727,603		697,856
Advisory⁽³⁾		1,770		15,019			142			(30	)		16,901		6,798
Advisory⁽⁴⁾																	22,359		(2,269	)		—		176			14			20,280		21,952
Total	$	7,429,633	$	135,206		$	(181,886	)	$	(65,004	)	$	7,317,949	$	7,133,613	$	8,676,680	$	252,602		$	41,324	$	564,033		$	(38,646	)	$	9,495,993	$	9,055,766

AUM ~~decreased $111.7~~increased $819.3 billion to ~~$7.32~~$9.5 trillion at June 30, ~~2020,~~ 2021, driven by net market ~~depreciation~~appreciation, positive net inflows, and AUM acquired in the ~~negative~~Aperio Transaction, partially offset by the impact of foreign exchange ~~movements, partially offset by positive net inflows.~~movements.

~~Net market depreciation of $181.9 billion was primarily driven by the impact of first quarter global equity market declines, partially offset by fixed income market appreciation.~~

Long-term net inflows of ~~$43.5~~$192.3 billion ~~primarily included $64.8 billion and $14.7 billion~~were comprised of net inflows of $143.6 billion and $57.9 billion into~~iShares~~ ETFs and retail, respectively, partially offset by net outflows ~~$36.6~~of $9.2 billion from institutional ~~index~~ clients. Net flows in long-term products are described below.

Cash management AUM increased to ~~$619.4~~$727.6 billion, driven by net inflows of ~~$76.6~~$62.5 billion.

Net market appreciation of $564 billion was driven primarily by global equity market appreciation, partially offset by fixed income market declines.

AUM decreased ~~$65.0~~$38.6 billion due to the negative impact of foreign exchange movements, primarily ~~due to~~resulting from the strengthening of the US dollar, largely against the ~~British pound.~~

The following table presents the component changes in AUM by client type and product type for the twelve months ended June 30, ~~2020.~~2021.

	June 30,		Net inflows			Market			FX			June 30,		Average		June 30,		Net inflows					Market			FX			June 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾		2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Retail:
Equity	$	232,429	$	21,011		$	2,307		$	(1,643	)	$	254,104	$	238,057	$	254,104	$	47,302		$	41,324	$	97,009		$	6,588		$	446,327	$	345,277
Fixed income		291,772		10,186			2,182			(2,980	)		301,160		297,562		301,160		44,028			—		9,401			4,891			359,480		334,847
Multi-asset		118,135		(7,463	)		1,660			(398	)		111,934		114,692		111,934		9,296			—		25,148			850			147,228		130,418
Alternatives		22,570		5,659			(177	)		(96	)		27,956		24,917		27,956		12,141			—		1,923			428			42,448		34,768
Retail subtotal		664,906		29,393			5,972			(5,117	)		695,154		675,228		695,154		112,767			41,324		133,481			12,757			995,483		845,310
iShares ETFs:
ETFs:
Equity		1,462,623		58,351			(45,191	)		(5,469	)		1,470,314		1,476,916		1,470,314		197,907			—		578,981			10,626			2,257,828		1,858,812
Fixed income		513,843		104,309			17,688			(1,742	)		634,098		563,566		634,098		56,540			—		2,637			6,734			700,009		675,322
Multi-asset		4,442		666			(17	)		(17	)		5,074		4,833		5,074		1,516			—		997			76			7,663		6,250
Alternatives		27,959		18,183			6,981			(12	)		53,111		38,367		53,111		7,760			—		5,006			128			66,005		65,259
iShares ETFs subtotal		2,008,867		181,509			(20,539	)		(7,240	)		2,162,597		2,083,682
ETFs subtotal																	2,162,597		263,723			—		587,621			17,564			3,031,505		2,605,643
Institutional:
Active:
Equity		125,884		5,176			3,793			(921	)		133,932		129,091		133,932		(2,308	)		—		49,350			3,200			184,174		163,639
Fixed income		649,924		(26,222	)		45,319			(2,328	)		666,693		652,323		666,693		26,849			—		14,142			8,987			716,671		698,882
Multi-asset		393,101		21,311			16,119			(3,978	)		426,553		410,295		426,553		52,413			—		93,379			12,237			584,582		499,070
Alternatives		103,623		11,302			179			(672	)		114,432		109,375		114,432		14,021			—		7,477			2,692			138,622		126,717
Active subtotal		1,272,532		11,567			65,410			(7,899	)		1,341,610		1,301,084		1,341,610		90,975			—		164,348			27,116			1,624,049		1,488,308
Index:
Equity		1,664,933		(37,274	)		41,472			(8,256	)		1,660,875		1,651,852		1,660,875		(169,247	)		—		623,656			30,778			2,146,062		1,937,458
Fixed income		735,591		9,885			73,443			(9,778	)		809,141		786,774		809,141		107,780			—		(19,713	)		38,797			936,005		894,457
Multi-asset		8,050		(526	)		293			(16	)		7,801		8,011		7,801		242			—		1,296			(42	)		9,297		8,576
Alternatives		4,617		289			(353	)		(34	)		4,519		4,490		4,519		(94	)		—		1,176			108			5,709		5,244
Index subtotal		2,413,191		(27,626	)		114,855			(18,084	)		2,482,336		2,451,127		2,482,336		(61,319	)		—		606,415			69,641			3,097,073		2,845,735
Institutional subtotal		3,685,723		(16,059	)		180,265			(25,983	)		3,823,946		3,752,211		3,823,946		29,656			—		770,763			96,757			4,721,122		4,334,043
Long-term		6,359,496		194,843			165,698			(38,340	)		6,681,697		6,511,121		6,681,697		406,146			41,324		1,491,865			127,078			8,748,110		7,784,996
Cash management		481,208		138,426			1,516			(1,799	)		619,351		552,549		619,351		99,239			—		(157	)		9,170			727,603		673,619
Advisory⁽³⁾⁽⁴⁾		1,778		15,021			136			(34	)		16,901		4,472		16,901		2,853			—		479			47			20,280		20,975
Total	$	6,842,482	$	348,290		$	167,350		$	(40,173	)	$	7,317,949	$	7,068,142	$	7,317,949	$	508,238		$	41,324	$	1,492,187		$	136,295		$	9,495,993	$	8,479,590

The following table presents the component changes in AUM by investment style and product type for the twelve months ended June 30, ~~2020.~~2021.

	June 30,		Net inflows			Market			FX			June 30,		Average		June 30,		Net inflows					Market			FX			June 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾		2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Active:
Equity	$	289,870	$	17,570		$	7,084		$	(1,715	)	$	312,809	$	295,079	$	312,809	$	43,888		$	—	$	116,600		$	5,943		$	479,240	$	400,020
Fixed income		926,097		(17,456	)		46,473			(4,971	)		950,143		933,192		950,143		68,072			—		23,910			12,392			1,054,517		1,013,129
Multi-asset		511,236		13,849			17,780			(4,376	)		538,489		524,986		538,489		61,704			—		118,526			13,087			731,806		629,486
Alternatives		126,190		16,961			4			(768	)		142,387		134,291		142,387		26,160			—		9,402			3,120			181,069		161,484
Active subtotal		1,853,393		30,924			71,341			(11,830	)		1,943,828		1,887,548		1,943,828		199,824			—		268,438			34,542			2,446,632		2,204,119
Index and iShares ETFs:
iShares ETFs:
Index and ETFs:
ETFs:
Equity		1,462,623		58,351			(45,191	)		(5,469	)		1,470,314		1,476,916		1,470,314		197,907			—		578,981			10,626			2,257,828		1,858,812
Fixed income		513,843		104,309			17,688			(1,742	)		634,098		563,566		634,098		56,540			—		2,637			6,734			700,009		675,322
Multi-asset		4,442		666			(17	)		(17	)		5,074		4,833		5,074		1,516			—		997			76			7,663		6,250
Alternatives		27,959		18,183			6,981			(12	)		53,111		38,367		53,111		7,760			—		5,006			128			66,005		65,259
iShares ETFs subtotal		2,008,867		181,509			(20,539	)		(7,240	)		2,162,597		2,083,682
ETFs subtotal																	2,162,597		263,723			—		587,621			17,564			3,031,505		2,605,643
Non-ETF Index:
Equity		1,733,376		(28,657	)		40,488			(9,105	)		1,736,102		1,723,921		1,736,102		(168,141	)		41,324		653,415			34,623			2,297,323		2,046,354
Fixed income		751,190		11,305			74,471			(10,115	)		826,851		803,467		826,851		110,585			—		(20,080	)		40,283			957,639		915,057
Multi-asset		8,050		(527	)		292			(16	)		7,799		8,012		7,799		247			—		1,297			(42	)		9,301		8,578
Alternatives		4,620		289			(355	)		(34	)		4,520		4,491		4,520		(92	)		—		1,174			108			5,710		5,245
Non-ETF Index subtotal		2,497,236		(17,590	)		114,896			(19,270	)		2,575,272		2,539,891		2,575,272		(57,401	)		41,324		635,806			74,972			3,269,973		2,975,234
Index & iShares ETFs subtotal		4,506,103		163,919			94,357			(26,510	)		4,737,869		4,623,573
Index & ETFs subtotal																	4,737,869		206,322			41,324		1,223,427			92,536			6,301,478		5,580,877
Long-term		6,359,496		194,843			165,698			(38,340	)		6,681,697		6,511,121		6,681,697		406,146			41,324		1,491,865			127,078			8,748,110		7,784,996
Cash management		481,208		138,426			1,516			(1,799	)		619,351		552,549		619,351		99,239			—		(157	)		9,170			727,603		673,619
Advisory⁽³⁾⁽⁴⁾		1,778		15,021			136			(34	)		16,901		4,472		16,901		2,853			—		479			47			20,280		20,975
Total	$	6,842,482	$	348,290		$	167,350		$	(40,173	)	$	7,317,949	$	7,068,142	$	7,317,949	$	508,238		$	41,324	$	1,492,187		$	136,295		$	9,495,993	$	8,479,590

The following table presents the component changes in AUM by product type for the twelve months ended June 30, ~~2020.~~2021.

	June 30,		Net inflows		Market			FX			June 30,		Average		June 30,		Net inflows				Market			FX		June 30,		Average
(in millions)	2019		(outflows)		change			impact⁽¹⁾			2020		AUM⁽²⁾		2020		(outflows)		Acquisition⁽¹⁾		change			impact⁽²⁾		2021		AUM⁽³⁾
Equity	$	3,485,869	$	47,264	$	2,381		$	(16,289	)	$	3,519,225	$	3,495,916	$	3,519,225	$	73,654	$	41,324	$	1,348,996		$	51,192	$	5,034,391	$	4,305,186
Fixed income		2,191,130		98,158		138,632			(16,828	)		2,411,092		2,300,225		2,411,092		235,197		—		6,467			59,409		2,712,165		2,603,508
Multi-asset		523,728		13,988		18,055			(4,409	)		551,362		537,831		551,362		63,467		—		120,820			13,121		748,770		644,314
Alternatives:
Illiquid alternatives		67,910		11,335		(2,147	)		(491	)		76,607		73,083		76,607		16,303		—		1,570			1,481		95,961		85,690
Liquid alternatives		55,514		5,634		2,246			(274	)		63,120		58,510		63,120		9,262		—		7,496			1,682		81,560		72,848
Currency and commodities⁽⁴⁾⁽⁵⁾		35,345		18,464		6,531			(49	)		60,291		45,556		60,291		8,263		—		6,516			193		75,263		73,450
Alternatives subtotal		158,769		35,433		6,630			(814	)		200,018		177,149		200,018		33,828		—		15,582			3,356		252,784		231,988
Long-term		6,359,496		194,843		165,698			(38,340	)		6,681,697		6,511,121		6,681,697		406,146		41,324		1,491,865			127,078		8,748,110		7,784,996
Cash management		481,208		138,426		1,516			(1,799	)		619,351		552,549		619,351		99,239		—		(157	)		9,170		727,603		673,619
Advisory⁽³⁾⁽⁴⁾		1,778		15,021		136			(34	)		16,901		4,472		16,901		2,853		—		479			47		20,280		20,975
Total	$	6,842,482	$	348,290	$	167,350		$	(40,173	)	$	7,317,949	$	7,068,142	$	7,317,949	$	508,238	$	41,324	$	1,492,187		$	136,295	$	9,495,993	$	8,479,590

AUM increased ~~$475.5 billion~~$2.18 trillion to ~~$7.32~~$9.5 trillion at June 30, ~~2020,~~ 2021, driven by net market appreciation, positive net inflows, ~~and net market appreciation, partially offset by~~ the ~~negative~~positive impact of foreign exchange ~~movements.~~movements and AUM acquired in the Aperio Transaction.

~~Net market appreciation of $167.4 billion was primarily driven by fixed income market appreciation.~~

Long-term net inflows of ~~$194.8~~$406.1 billion were comprised of net inflows of ~~$181.5~~$263.7 billion, ~~$29.4~~$112.8 billion and ~~$11.5~~$29.6 billion ~~into~~ ~~iShares~~ from ETFs, retail and institutional ~~active products, respectively, partially offset by net outflows of $27.6 billion from institutional index products.~~clients, respectively. Net flows in long-term products are described below.

Cash management AUM increased to ~~$619.4~~$727.6 billion, ~~due to~~driven by net inflows of ~~$138.4~~$99.2 billion.

Net market appreciation of $1.49 trillion was driven primarily by global equity market appreciation.

AUM ~~decreased $40.2~~increased $136.3 billion due to the ~~negative~~positive impact of foreign exchange movements, primarily resulting from the ~~strengthening~~weakening of the US dollar, largely against the British pound and the Euro.

The Company’s results of operations for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 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, ~~2019~~2020 (“~~2019~~2020 Form 10-K”).

The table below presents detail of revenue for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 and includes the product type mix of ~~investment advisory, administration~~base fees and securities lending revenue ~~(collectively “base fees”)~~ and performance fees.

	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	381	$	385	$	779	$	760	$	641	$	381	$	1,217	$	779
iShares ETFs		792		870		1,671		1,717
ETFs										1,156		792		2,224		1,671
Non-ETF Index		178		163		341		327		198		178		374		341
Equity subtotal		1,351		1,418		2,791		2,804		1,995		1,351		3,815		2,791
Fixed income:
Active		464		474		945		931		545		464		1,070		945
iShares ETFs		261		234		520		454
ETFs										294		261		589		520
Non-ETF Index		129		98		241		195		116		129		229		241
Fixed income subtotal		854		806		1,706		1,580		955		854		1,888		1,706
Multi-asset		270		288		563		564		344		270		672		563
Alternatives:
Illiquid alternatives		128		118		276		228		167		128		335		276
Liquid alternatives		117		102		229		196		150		117		297		229
Currency and commodities⁽¹⁾		35		24		67		48		55		35		108		67
Alternatives subtotal		280		244		572		472		372		280		740		572
Long-Term		2,755		2,756		5,632		5,420
Long-term										3,666		2,755		7,115		5,632
Cash management		211		147		389		288		91		211		234		389
Total base fees		2,966		2,903		6,021		5,708
Total investment advisory, administration fees and securities lending revenue										3,757		2,966		7,349		6,021
Investment advisory performance fees:
Equity		23		4		25		4		36		23		62		25
Fixed income		2		—		4		2		15		2		29		4
Multi-asset		2		6		3		6		9		2		17		3
Alternatives:
Illiquid alternatives		32		15		49		35		90		32		97		49
Liquid alternatives		53		39		72		43		190		53		264		72
Alternatives subtotal		85		54		121		78		280		85		361		121
Total performance fees		112		64		153		90		340		112		469		153
Technology services revenue		278		237		552		441		316		278		622		552
Distribution fees:
Retrocessions		162		164		331		325		264		162		502		331
12b-1 fees (US mutual fund distribution fees)		78		88		169		177		87		78		172		169
Other		13		15		29		27		18		13		35		29
Total distribution fees		253		267		529		529		369		253		709		529
Advisory and other revenue:
Advisory		17		22		34		41		9		17		24		34
Other		22		31		69		61		29		22		45		69
Total advisory and other revenue		39		53		103		102		38		39		69		103
Total revenue	$	3,648	$	3,524	$	7,358	$	6,870	$	4,820	$	3,648	$	9,218	$	7,358

The table below lists a percentage breakdown of base fees and ~~mix of~~securities lending revenue and average AUM by product type:

	Three Months Ended June 30,												Six Months Ended June 30,												Three Months Ended June 30,												Six Months Ended June 30,
	Mix of Base Fees						Mix of Average AUM by Product Type⁽¹⁾						Mix of Base Fees						Mix of Average AUM by Asset Class⁽²⁾						Percentage of Base Fees and Securities Lending Revenue						Percentage of Average AUM by Product Type⁽¹⁾						Percentage of Base Fees and Securities Lending Revenue						Percentage of Average AUM by Product Type⁽²⁾
	2020			2019			2020			2019			2020			2019			2020			2019			2021			2020			2021			2020			2021			2020			2021			2020
Equity:
Active		13	%		13	%		4	%		4	%		12	%		13	%		4	%		4	%		18	%		13	%		5	%		4	%		19	%		12	%		5	%		4	%
iShares ETFs		27	%		30	%		20	%		22	%		28	%		30	%		21	%		22	%
ETFs																										31	%		27	%		24	%		20	%		30	%		28	%		23	%		21	%
Non-ETF Index		6	%		6	%		24	%		25	%		6	%		6	%		24	%		25	%		5	%		6	%		23	%		24	%		5	%		6	%		24	%		24	%
Equity subtotal		46	%		49	%		48	%		51	%		46	%		49	%		49	%		51	%		54	%		46	%		52	%		48	%		54	%		46	%		52	%		49	%
Fixed income:
Active		16	%		17	%		12	%		14	%		16	%		17	%		12	%		13	%		14	%		16	%		12	%		12	%		14	%		16	%		11	%		12	%
iShares ETFs		9	%		8	%		9	%		7	%		9	%		8	%		8	%		7	%
ETFs																										8	%		9	%		7	%		9	%		8	%		9	%		8	%		8	%
Non-ETF Index		4	%		3	%		12	%		11	%		4	%		3	%		12	%		11	%		3	%		4	%		10	%		12	%		3	%		4	%		10	%		12	%
Fixed income subtotal		29	%		28	%		33	%		32	%		29	%		28	%		32	%		31	%		25	%		29	%		29	%		33	%		25	%		29	%		29	%		32	%
Multi-asset		9	%		10	%		8	%		8	%		9	%		10	%		8	%		8	%		9	%		9	%		8	%		8	%		9	%		9	%		8	%		8	%
Alternatives:
Illiquid alternatives		4	%		4	%		1	%		1	%		5	%		4	%		1	%		1	%		5	%		4	%		1	%		1	%		5	%		5	%		1	%		1	%
Liquid alternatives		4	%		3	%		1	%		1	%		4	%		3	%		1	%		1	%		4	%		4	%		1	%		1	%		4	%		4	%		1	%		1	%
Currency and commodities⁽³⁾		1	%		1	%		1	%		—	%		1	%		1	%		1	%		1	%		1	%		1	%		1	%		1	%		1	%		1	%		1	%		1	%
Alternatives subtotal		9	%		8	%		3	%		2	%		10	%		8	%		3	%		3	%		10	%		9	%		3	%		3	%		10	%		10	%		3	%		3	%
Long-term		93	%		95	%		92	%		93	%		94	%		95	%		92	%		93	%		98	%		93	%		92	%		92	%		98	%		94	%		92	%		92	%
Cash management		7	%		5	%		8	%		7	%		6	%		5	%		8	%		7	%		2	%		7	%		8	%		8	%		2	%		6	%		8	%		8	%
Total excluding Advisory AUM		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

Three Months Ended June 30, ~~2020~~2021 Compared with Three Months Ended June 30, ~~2019~~2020

Revenue increased ~~$124~~$1,172 million, or 4%32%, from the three months ended June 30, ~~2019, primarily driven by~~2020, reflecting significant market gains as well as strong organic growth, higher ~~securities lending revenue and~~ performance fees and ~~17%~~14% growth in technology services revenue.

Investment advisory, administration fees and securities lending revenue of ~~$2,966~~$3,757 million increased ~~$63~~$791 million from ~~$2,903~~$2,966 million for the three months ended June 30, ~~2019,~~2020, primarily driven by ~~organic growth and higher securities lending revenue, partially offset by~~ the ~~negative~~positive impact of ~~equity~~market beta and foreign exchange movements on average AUM and strong organic base fee growth, partially offset by the impact of yield-related fee waivers on certain money market funds and strategic pricing changes to certain ~~products.~~products, and lower securities lending revenue. Securities lending revenue of $140 million decreased $70 million from $210 million infor the ~~current quarter increased $60 million from $150 million in second quarter of 2019,~~three months ended June 30, 2020, primarily reflecting ~~higher asset~~lower spreads, ~~and~~partially offset by higher average balances of securities on loan.

Investment advisory performance fees of ~~$112~~$340 million increased ~~$48~~$228 million from ~~$64~~$112 million for the three months ended June 30, ~~2019,~~2020, primarily reflecting higher revenue from ~~alternative~~liquid and ~~long-only equity~~illiquid alternative products.

Technology services revenue of ~~$278~~$316 million increased ~~$41~~$38 million from ~~$237~~$278 million for the three months ended June 30, ~~2019,~~2020, primarily reflecting higher revenue from Aladdin.

Revenue increased $1,860 million, or 25%, from the six months ended June 30, 2020, reflecting higher base and performance fees and higher technology services revenue, partially offset by lower securities lending revenue.

Investment advisory, administration fees and securities lending revenue of $7,349 million increased $1,328 million from $6,021 million for the six months ended June 30, 2020, primarily driven by the positive impact of market beta and foreign exchange movements on average AUM and organic growth, partially offset by the impact of yield-related fee waivers on certain money market funds and strategic pricing changes to certain products, and lower securities lending revenue. Securities lending revenue of $267 million decreased $101 million from $368 million for the six months ended June 30, 2020, primarily reflecting lower spreads, partially offset by higher average balances of securities on loan.

Investment advisory performance fees of $469 million increased $316 million from $153 million for the six months ended June 30, 2020, primarily reflecting higher revenue from liquid and illiquid alternative and long-only products.

Technology services revenue of $622 million increased $70 million from $552 million for the six months ended June 30, 2020, primarily reflecting higher revenue from Aladdin.

Advisory and other revenue of ~~$39~~$69 million decreased ~~$14~~$34 million from $53 million for the three months ended June 30, 2019, primarily reflecting the impact of the previously discussed Charitable Contribution of the remaining 20% stake in PennyMac in the first quarter of 2020.

~~Revenue increased $488 million, or 7%, from the six months ended June 30, 2019, reflecting higher base and performance fees and higher technology services revenue.~~

~~Investment advisory, administration fees and securities lending revenue~~ ~~of $6,021 million increased $313 million from $5,708~~$103 million for the six months ended June 30, ~~2019,~~2020, primarily driven by organic growth, partially offset by the negative impact of equity beta and foreign exchange movements on average AUM, and strategic pricing changes to certain products. Securities lending revenue of $368 million increased $70 million from $298 million for the six months ended June 30, 2019, primarily reflecting ~~higher asset spreads and average balances of securities on loan.~~

~~Investment advisory performance fees~~ ~~of $153 million increased $63 million from $90 million for the six months ended June 30, 2019, primarily reflecting higher revenue from alternative and long-only equity products.~~

~~Technology services revenue~~ ~~of $552 million increased $111 million from $441 million for the six months ended June 30, 2019, primarily reflecting higher revenue from~~ ~~Aladdin~~ ~~and~~ the impact of the ~~eFront acquisition, which closed in May of 2019.~~Charitable Contribution and lower fees from advisory assignments.

	Three Months Ended					Six Months Ended				Three Months Ended						Six Months Ended
	June 30,					June 30,				June 30,						June 30,
(in millions)	2020			2019		2020		2019		2021			2020			2021		2020
Expense:
Employee compensation and benefits	$	1,152		$	1,083	$	2,289	$	2,147	$	1,548		$	1,152		$	2,957	$	2,289
Distribution and servicing costs:
Retrocessions		162			164		331		325		264			162			502		331
12b-1 costs		75			88		164		176		85			75			168		164
Other		192			164		379		319		174			192			358		379
Total distribution and servicing costs		429			416		874		820		523			429			1,028		874
Direct fund expense		246			252		523		494		320			246			640		523
General and administration:
General and administration expense:
Marketing and promotional		39			81		108		162		53			39			88		108
Occupancy and office related		80			75		158		149		80			80			159		158
Portfolio services		65			65		130		127		87			65			174		130
Technology		92			67		180		136		129			92			233		180
Professional services		41			44		85		77		41			41			80		85
Communications		14			10		26		19		11			14			22		26
Foreign exchange remeasurement		1			12		6		20		(2	)		1			2		6
Contingent consideration fair value adjustments		(2	)		13		23		19		1			(2	)		4		23
Product launch costs		—			59		84		59		—			—			178		84
Charitable Contribution		—			—		589		—		—			—			—		589
Other general and administration		58			44		141		90		61			58			106		141
Total general and administration expense		388			470		1,530		858		461			388			1,046		1,530
Amortization of intangible assets		27			25		52		40		37			27			71		52
Total expense	$	2,242		$	2,246	$	5,268	$	4,359	$	2,889		$	2,242		$	5,742	$	5,268

Three Months Ended June 30, ~~2020~~2021 Compared with Three Months Ended June 30, ~~2019~~2020

Expense ~~decreased $4~~increased $647 million from the three months ended June 30, ~~2019, primarily~~2020, largely driven ~~by lower general and administration expense, largely offset~~ by higher employee compensation and benefits expense, higher volume-related expense, and higher general and administration expense.

Employee compensation and benefits expense increased ~~$69~~$396 million from the three months ended June 30, ~~2019,~~2020, primarily reflecting higher ~~base and~~ incentive compensation, driven ~~in part~~ by higher operating income and higher performance ~~fees.~~fees, and higher deferred compensation, reflecting the impact of additional grants associated with prior-year compensation and certain previous acquisition-related compensation arrangements.

~~General and administration~~Direct fund expense ~~decreased $82~~increased $74 million from the three months ended June 30, 2019, reflecting lower marketing and promotional expense, lower contingent consideration fair value adjustments related to prior acquisitions and lower foreign exchange remeasurement expense, partially offset by higher technology expense, including certain costs related to COVID-19 and a $12 million impairment of a fixed asset incurred in the three months ended June 30, 2020. The decrease also reflected the impact of $59 million of product launch costs incurred in the three months ended June 30, 2019.

~~Six Months Ended June 30,~~ 2020, ~~Compared with Six Months Ended June 30, 2019~~

~~Expense increased $909 million from the six months ended June 30, 2019,~~ primarily ~~driven by higher general and administration expense, including the impact of the Charitable Contribution, higher employee compensation and benefits expense, and higher volume-related expense.~~

~~Employee compensation and benefits expense~~ ~~increased $142 million from the six months ended June 30, 2019, primarily reflecting higher base and incentive compensation, driven in part by higher operating income.~~

~~Direct fund expense~~ ~~increased $29 million from the six months ended June 30, 2019,~~ reflecting higher average AUM.

General and administration expense increased ~~$672~~$73 million from the three months ended June 30, 2020, largely driven by higher technology, portfolio services, and marketing and promotional expense.

Amortization of intangible assets expense increased $10 million from the three months ended June 30, 2020, primarily reflecting amortization of intangible assets related to the Aperio Transaction.

Expense increased $474 million from the six months ended June 30, ~~2019, primarily~~2020, largely driven by higher employee compensation and benefits expense and higher volume-related expense, partially offset by lower general and administration expense, reflecting the ~~$589 million~~impact of ~~expense related to~~ the Charitable Contributionincurred in the six months ended June 30, 2020. Expense also reflected higher product launch costs during the six months ended June 30, 2021.

Employee compensation and benefits expense increased $668 million from the six months ended June 30, 2020, primarily reflecting higher incentive compensation, driven by higher operating income and higher performance fees, and higher deferred compensation.

Direct fund expense increased $117 million from the six months ended June 30, 2020, primarily reflecting higher average AUM.

General and administration expense decreased $484 million from the six months ended June 30, 2020, largely driven by the Charitable Contribution recorded in the six months ended June 30, 2020. General and administration expense also reflected 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 ~~a $12 million impairment of a fixed asset. The increase was~~portfolio services expense, partially offset by lower marketing and promotional expense and ~~lower foreign exchange remeasurement expense in~~contingent consideration fair value adjustments, and the impact of costs related to certain legal matters incurred during the six months ended June 30, 2020.

Amortization of intangible assets expense increased $19 million from the six months ended June 30, 2020, primarily reflecting amortization of intangible assets related to the Aperio Transaction.

The summary of nonoperating income (expense), less net income (loss) attributable to NCI for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 was as follows:

		Three Months Ended						Six Months Ended				Three Months Ended				Six Months Ended
		June 30,						June 30,				June 30,				June 30,
(in millions)	(in millions)	2020			2019			2020		2019		2021		2020		2021		2020
Nonoperating income (expense), GAAP basis⁽¹⁾	$		357	$		57	$		286	$	182	$	270	$	357	$	316	$	286
Less: Net income (loss) attributable to NCI			188			10			9		17		169		188		243		9
Nonoperating income (expense), net of NCI⁽²⁾	$		169	$		47	$		277	$	165	$	101	$	169	$	73	$	277

	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Net gain (loss) on investments⁽¹⁾⁽²⁾
Private equity	$	8		$	32		$	(10	)	$	32		$	66		$	8		$	88		$	(10	)
Real assets		—			4			5			10			3			—			6			5
Other alternatives⁽³⁾		21			7			(4	)		15			17			21			30			(4	)
Other investments⁽⁴⁾		130			31			(20	)		104			48			130			45			(20	)
Subtotal		159			74			(29	)		161			134			159			169			(29	)
Gain related to the Charitable Contribution		—			—			122			—			—			—			—			122
Other gains (losses)⁽⁵⁾		51			5			256			53			11			51			(16	)		256
Total net gain (loss) on investments⁽¹⁾⁽²⁾		210			79			349			214			145			210			153			349
Interest and dividend income		10			20			25			49			8			10			27			25
Interest expense		(51	)		(52	)		(97	)		(98	)		(52	)		(51	)		(107	)		(97	)
Net interest expense		(41	)		(32	)		(72	)		(49	)		(44	)		(41	)		(80	)		(72	)
Nonoperating income (expense)⁽¹⁾	$	169		$	47		$	277		$	165		$	101		$	169		$	73		$	277

	GAAP												As Adjusted⁽¹⁾												GAAP												As Adjusted⁽¹⁾
	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,						June 30,						June 30,						June 30,						June 30,
(in millions)	2020			2019			2020			2019			2020			2019			2020			2019			2021			2020			2021			2020			2021			2020			2021			2020
Operating income⁽¹⁾	$	1,406		$	1,278		$	2,090		$	2,511		$	1,406		$	1,278		$	2,679		$	2,511		$	1,931		$	1,406		$	3,476		$	2,090		$	1,931		$	1,406		$	3,476		$	2,679
Total nonoperating income (expense)⁽¹⁾⁽²⁾	$	169		$	47		$	277		$	165		$	169		$	47		$	155		$	165		$	101		$	169		$	73		$	277		$	101		$	169		$	73		$	155
Income before income taxes	$	1,575		$	1,325		$	2,367		$	2,676		$	1,575		$	1,325		$	2,834		$	2,676		$	2,032		$	1,575		$	3,549		$	2,367		$	2,032		$	1,575		$	3,549		$	2,834
Income tax expense	$	361		$	322		$	347		$	620		$	361		$	322		$	588		$	620		$	654		$	361		$	972		$	347		$	483		$	361		$	801		$	588
Effective tax rate		22.9	%		24.3	%		14.7	%		23.2	%		22.9	%		24.3	%		20.7	%		23.2	%		32.2	%		22.9	%		27.4	%		14.7	%		23.8	%		22.9	%		22.6	%		20.7	%

~~2020.~~ 2021. ~~The~~Income tax expense for the three and six months ended June 30, ~~2020 income~~2021 included $171 million noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the UK increasing its corporate tax rate. Income tax expense ~~(benefit)~~for the six months ended June 30, 2021, also reflected $39 million of discrete tax benefits related to stock-based compensation awards that vested in the first quarter of 2021.

The as adjusted effective tax rate of 23.8% and 22.6% for the three and six months ended June 30, 2021, respectively, excluded the $171 million noncash deferred tax revaluation noncash expense mentioned above as it will not have a cash flow impact and to ensure comparability among periods presented.

2020. Income tax expense for the six months ended June 30, 2020, included a discrete tax benefit of $241 million recognized in connection with the Charitable Contribution ~~which was excluded from as adjusted results,~~ and $66 million of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of 2020.

~~2019.~~The as adjusted effective tax rate of 20.7% for the six months ended June 30, ~~2019 included $14~~2020 excluded the $241 million of discrete tax ~~benefits, including benefits related~~benefit in connection with the Charitable Contribution due to ~~stock-based compensation awards that vested in the first quarter of 2019.~~its nonrecurring nature.

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.~~products (“CIPs”).

The Company presents the as adjusted statement of financial condition as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or ~~noncontrolling interests~~NCI that ultimately do not have an impact on stockholders’ equity or cash flows. Management views the as adjusted statement of financial condition, which contains non-GAAP financial 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,~~UK, 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”), (collectively, “consolidated sponsored investment products” or “CIPs”). See Note 2, Significant Accounting Policies, in the notes to the consolidated financial statements contained in the ~~2019~~2020 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~~CIPs to use in its operating activities. In addition, the Company cannot readily sell investments held by ~~consolidated sponsored investment products~~CIPs in order to obtain cash for use in the Company’s operations.

	June 30, 2020								June 30, 2021
(in millions)	GAAP Basis		Separate Account Assets/ Collateral⁽¹⁾		Consolidated Sponsored Investment Products⁽²⁾		As Adjusted		GAAP Basis		Separate Account Assets/ Collateral⁽¹⁾		CIPs⁽²⁾		As Adjusted
Assets
Cash and cash equivalents	$	5,466	$	—	$	275	$	5,191	$	6,416	$	—	$	280	$	6,136
Accounts receivable		2,990		—		—		2,990		3,790		—		—		3,790
Investments		5,171		—		1,317		3,854		7,595		—		2,308		5,287
Separate account assets and collateral held under securities lending agreements		106,297		106,297		—		—		120,042		120,042		—		—
Other assets⁽³⁾		4,545		—		104		4,441		5,243		—		121		5,122
Subtotal		124,469		106,297		1,696		16,476		143,086		120,042		2,709		20,335
Goodwill and intangible assets, net		32,873		—		—		32,873		33,876		—		—		33,876
Total assets	$	157,342	$	106,297	$	1,696	$	49,349	$	176,962	$	120,042	$	2,709	$	54,211
Liabilities
Accrued compensation and benefits	$	1,189	$	—	$	—	$	1,189	$	1,704	$	—	$	—	$	1,704
Accounts payable and accrued liabilities		914		—		—		914		1,238		—		—		1,238
Borrowings		7,190		—		—		7,190		6,491		—		—		6,491
Separate account liabilities and collateral liabilities under securities lending agreements		106,297		106,297		—		—		120,042		120,042		—		—
Deferred income tax liabilities⁽⁴⁾		3,664		—		—		3,664		3,907		—		—		3,907
Other liabilities		4,054		—		392		3,662		5,190		—		429		4,761
Total liabilities		123,308		106,297		392		16,619		138,572		120,042		429		18,101
Equity
Total stockholders’ equity		32,730		—		—		32,730
Total BlackRock, Inc. stockholders’ equity										36,033		—		—		36,033
Noncontrolling interests		1,304		—		1,304		—		2,357		—		2,280		77
Total equity		34,034		—		1,304		32,730		38,390		—		2,280		36,110
Total liabilities and equity	$	157,342	$	106,297	$	1,696	$	49,349	$	176,962	$	120,042	$	2,709	$	54,211

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 June 30, ~~2020~~2021 and December 31, ~~2019~~2020 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 June 30, ~~2020~~2021 and December 31, ~~2019~~2020 included ~~$275~~$280 million and ~~$141~~$206 million, respectively, of cash held by ~~consolidated sponsored investment products~~CIPs (see Liquidity and Capital Resources for details on the change in cash and cash equivalents during the six months ended June 30, ~~2020)~~2021).

Accounts receivable at June 30, ~~2020 decreased $189~~2021 increased $255 million from December 31, ~~2019,~~2020, primarily due to ~~lower receivables from~~higher base ~~fees, partially offset by higher securities lending~~ and ~~technology services~~performance fee receivables. Investments, including the impact of ~~consolidated sponsored investment products, decreased $318~~CIPs, increased $676 million from December 31, ~~2019~~2020 (for more information see Investments herein). Goodwill and intangible assets ~~decreased $58~~increased $1,062 million from December 31, ~~2019,~~2020, primarily due to the Aperio Transaction, partially offset by amortization of intangible assets. Other assets (including ~~operating lease right-of-use assets and~~ property and equipment) increased ~~$661~~$1,363 million from December 31, ~~2019,~~2020, primarily due to an increase in unit trust receivables (substantially offset by an increase in unit trust payables recorded within other liabilities)~~, partially offset by a net decrease~~ and an increase in ~~certain corporate minority investments, primarily related to the previously discussed Charitable Contribution of the remaining 20% stake in PennyMac.~~current taxes receivable.

Liabilities. Accrued compensation and benefits at June 30, ~~2020~~2021 decreased ~~$868~~$795 million from December 31, ~~2019,~~2020, primarily due to ~~2019~~2020 incentive compensation cash payments in the first quarter of ~~2020,~~2021, partially offset by ~~2020~~2021 incentive compensation accruals. Accounts payable and accrued liabilities at June 30, ~~2020~~2021 decreased ~~$253~~$210 million from December 31, ~~2019,~~2020, primarily due to ~~lower current income taxes payables.~~increased accruals. Other liabilities increased ~~$584~~$1,498 million from December 31, ~~2019,~~2020, primarily due to higher unit trust payables (substantially offset by an increase in unit trust receivables recorded within other assets)~~, partially offset by lower contingent~~ and higher other liabilities ~~related to certain acquisitions.~~of CIPs. Net deferred income tax liabilities at June 30, ~~2020 decreased $70~~2021 increased $234 million from December 31, ~~2019,~~2020, primarily due to the ~~effects of temporary differences associated with investment income~~Aperio Transaction and ~~the income tax benefit related to the Charitable Contribution, partially offset by~~ the effects of temporary differences associated with stock-based ~~compensation.~~compensation and the revaluation of certain deferred income tax liabilities due to tax legislation enacted in the UK.

The Company’s investments were ~~$5,171~~$7,595 million and ~~$5,489~~$6,919 million at June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. Investments include consolidated investments held by ~~sponsored investment products~~CIPs accounted for as VREs and VIEs. Management reviews BlackRock’s investments on an “economic” basis, which eliminates the portion of 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 investments, as adjusted, to enable investors to understand the portion of 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 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.

	June 30,			December 31,			June 30,			December 31,
(in millions)	2020			2019			2021			2020
Investments, GAAP	$	5,171		$	5,489		$	7,595		$	6,919
Investments held by consolidated sponsored investment products		(3,393	)		(3,784	)
Net interest in consolidated sponsored investment products⁽¹⁾		2,076			2,290
Investments held by CIPs								(5,282	)		(4,976	)
Net interest in CIPs⁽¹⁾								2,974			2,490
Investments, as adjusted		3,854			3,995			5,287			4,433
Federal Reserve Bank stock		(94	)		(93	)		(95	)		(94	)
Deferred compensation investments		(5	)		(23	)		—			(6	)
Hedged investments		(667	)		(644	)		(863	)		(833	)
Carried interest		(458	)		(528	)		(1,213	)		(627	)
Total “economic” investment exposure⁽²⁾	$	2,630		$	2,707		$	3,116		$	2,873

The following table represents the carrying value of the Company’s economic investment exposure, by asset type, at June 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

	June 30,		December 31,		June 30,		December 31,
(in millions)	2020		2019		2021		2020
Equity⁽¹⁾	$	651	$	609	$	1,045	$	835
Fixed income⁽²⁾		913		1,008		788		958
Multi-asset⁽³⁾		147		178		117		127
Alternatives:
Private equity		394		355		596		418
Real assets		279		322		261		251
Other alternatives⁽⁴⁾		246		235		309		284
Alternatives subtotal		919		912		1,166		953
Total “economic” investment exposure	$	2,630	$	2,707	$	3,116	$	2,873

As adjusted investment activity for the six months ended June 30, ~~2020~~2021 was as follows:

(in millions)	Six Months Ended June 30, 2020			Six Months Ended June 30, 2021
Investments, as adjusted, beginning balance	$	3,995		$	4,433
Purchases/capital contributions		657			721
Sales/maturities		(489	)		(591	)
Distributions⁽¹⁾		(135	)		(88	)
Market appreciation(depreciation)/earnings from equity method investments		(77	)		253
Carried interest capital allocations/(distributions)		(70	)		586
Other⁽²⁾		(27	)		(27	)
Investments, as adjusted, ending balance	$	3,854		$	5,287

BlackRock Cash Flows Excluding the Impact of ~~Consolidated Sponsored Investment Products~~CIPs

The condensed consolidated statements of cash flows include the cash flows of the ~~consolidated sponsored investmentproducts.~~CIPs. The Company uses an adjusted cash flow statement, which excludes the impact of ~~consolidated sponsored investmentproducts,~~CIPs, 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 investmentproducts,~~CIPs, 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 investmentproducts:~~CIPs:

(in millions)	GAAP Basis			Cash Flows of Consolidated Sponsored Investment Products			Cash Flows Excluding Impact of Consolidated Sponsored Investment Products			GAAP Basis			Impact on Cash Flows of CIPs			Cash Flows Excluding Impact of CIPs
Cash, cash equivalents and restricted cash, December 31, 2019	$	4,846		$	141		$	4,705
Cash, cash equivalents and restricted cash, December 31, 2020										$	8,681		$	206		$	8,475
Net cash provided by/(used in) operating activities		769			(661	)		1,430			1,253			(665	)		1,918
Net cash provided by/(used in) investing activities		(158	)		(40	)		(118	)		(1,435	)		(39	)		(1,396	)
Net cash provided by/(used in) financing activities		106			835			(729	)		(2,066	)		778			(2,844	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(80	)		—			(80	)		—			—			—
Net increase/(decrease) in cash, cash equivalents and restricted cash		637			134			503			(2,248	)		74			(2,322	)
Cash, cash equivalents and restricted cash, June 30, 2020	$	5,483		$	275		$	5,208
Cash, cash equivalents and restricted cash, June 30, 2021										$	6,433		$	280		$	6,153

Sources of BlackRock’s operating cash primarily include ~~investment advisory, administration~~base 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 by/(used in) operating activities, excluding the impact of ~~consolidated sponsored investment products,~~CIPs, primarily include the receipt of ~~investment advisory and administration~~base 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,~~CIPs, for the six months ended June 30, ~~2020~~2021 were ~~$118 million~~$1.4 billion and primarily reflected ~~$111 million~~$1.1 billion of ~~net investment purchases and $100~~cash outflows related to the Aperio Transaction, $178 million of purchases of property and equipment and $176 million of net investment purchases, partially offset by ~~$93~~$55 million of distributions of capital from equity method investees.

Cash flows used in financing activities, excluding the impact of ~~consolidated sponsored investment products,~~CIPs, for the six months ended June 30, ~~2020~~2021 were ~~$729 million,~~$2.8 billion, primarily resulting from ~~$1.8~~$1.3 billion of cash dividend payments and $873 million of share repurchases, including ~~$1.1 billion from PNC, $412~~$600 million in open market transactions and ~~$270~~$273 million of employee tax withholdings related to employee stock transactions, and ~~$1.2 billion~~$750 million of ~~cash dividend payments, partially offset by $2.2 billion~~repayments of ~~proceeds from~~ long-term borrowings.

The Company manages its financial condition and funding to maintain appropriate liquidity for the business. Liquidity resources at June 30, ~~2020~~2021 and December 31, ~~2019~~2020 were as follows:

	June 30,			December 31,			June 30,			December 31,
(in millions)	2020			2019			2021			2020
Cash and cash equivalents⁽¹⁾	$	5,466		$	4,829		$	6,416		$	8,664
Cash and cash equivalents held by consolidated sponsored investment products⁽²⁾		(275	)		(141	)
Cash and cash equivalents held by CIPs⁽²⁾								(280	)		(206	)
Subtotal		5,191			4,688			6,136			8,458
Credit facility – undrawn		4,000			4,000			4,400			4,000
Total liquidity resources⁽³⁾	$	9,191		$	8,688		$	10,536		$	12,458

Total liquidity resources ~~increased $503 million~~decreased $1.9 billion during the six months ended June 30, ~~2020,~~2021, primarily reflecting ~~$2.2~~cash payments of 2020 year-end incentive awards, cash dividend payments of $1.3 billion, approximately $1.1 billion of ~~proceeds from long-term~~cash outflow related to the Aperio Transaction, share repurchases of $873 million and repayments of borrowings ~~and~~of $750 million, partially offset by cash flows from other operating activities ~~partially offset by cash payments~~and a $400 million increase in the aggregate commitment amount of ~~2019 year-end incentive awards, share repurchases of $1.8 billion, including $1.1 billion from PNC, and cash dividend payments of $1.2 billion.~~ the credit facility.

A significant portion of the Company’s ~~$3,854~~$5,287 million of 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 six months ended June 30, 2020.

Share Repurchases. During the six months ended June 30, ~~2020,~~2021, the Company repurchased 0.8 million common shares ~~in open market transactions under the share repurchase program for approximately $412 million. At June 30, 2020, there were 5.1 million shares still authorized to be repurchased.~~

~~Including the repurchase from PNC, which was in addition to the share repurchase authorization~~ under the Company’s existing share repurchase program ~~the Company has repurchased an aggregate of~~for approximately ~~$1.5 billion of its common shares during the six months ended~~$600 million. At June 30, ~~2020 and has now completed its targeted level of share repurchases for~~2021, there were 4.3 million shares still authorized to be repurchased under the ~~year, but will remain opportunistic should relative valuation opportunities arise.~~program.

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 June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company was required to maintain approximately ~~$2.1~~$2.4 billion and ~~$1.9~~$2.2 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,~~UK, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.

~~2020~~2021 Revolving Credit Facility. ~~The~~In March 2021, the Company’s credit facility ~~has an~~was amended to increase the aggregate commitment amount ~~of $4.0~~to $4.4 billion and ~~was amended in March 2020~~ to extend the maturity date to March ~~2025~~2026 (the ~~“2020~~“2021 credit facility”). In addition, the amendment incorporated certain sustainability-linked pricing metrics into the agreement. Specifically, the Company’s applicable interest rate and commitment fee are subject to upward or downward adjustments on an annual basis if the Company achieves, or fails to achieve, certain specified targets. Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate, or an applicable replacement benchmark, plus a spread. The ~~2020~~2021 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 ~~2020~~2021 credit facility to an aggregate principal amount not to exceed ~~$5.0~~$5.4 billion. ~~Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread.~~ The ~~2020~~2021 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 June 30, ~~2020.~~2021. The ~~2020~~2021 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities. At June 30, ~~2020,~~2021, the Company had no amount outstanding under the 2021 credit facility.

At June 30, ~~2020,~~2021, the principal amount of long-term borrowings outstanding was ~~$7.2~~$6.5 billion. See Note 15, Borrowings, in the ~~2019~~2020 Form 10-K for more information on borrowings outstanding as of December 31, ~~2019.~~2020.

During the six months ended June 30, ~~2020,~~2021, the Company paid approximately ~~$90~~$108 million of interest on long-term borrowings. Future principal repayments and interest requirements at June 30, ~~2020~~2021 were as follows:

(in millions)
Year	Principal		Interest		Total Payments		Principal		Interest		Total Payments
Remainder of 2020	$	—	$	91	$	91
2021		750		189		939
Remainder of 2021							$	—	$	82	$	82
2022		750		160		910		750		161		911
2023		—		147		147		—		148		148
2024		1,000		130		1,130		1,000		131		1,131
2025⁽¹⁾		786		112		898		830		113		943
2026								—		103		103
Thereafter		3,950		386		4,336		3,950		283		4,233
Total	$	7,236	$	1,215	$	8,451	$	6,530	$	1,020	$	7,550

In ~~January 2020,~~May 2021, the Company issued $1 billion in aggregate principal amount of 2.40% senior unsecured and unsubordinated notes maturing on April 30, 2030 (the “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, which commenced on April 30, 2020. The 2030 Notes may be redeemed prior to January 30, 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 2030 Notes thereafter. The unamortized discount and debt issuance costs are being amortized over the remaining term of the 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 thefully repaid $750 million of 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, commencing on July 28, 2020. The 2031 Notes may be redeemed prior to October 28, 2030 in whole or in partnotes 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.maturity.

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 investments, or cash and cash equivalents to the extent that it is distributed, and as a deferred carried interest 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 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 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. The amount of securities on loan as of June 30, ~~2020~~2021 and subject to this type of indemnification was ~~$234~~$297 billion. In the Company’s capacity as lending agent, cash and securities totaling ~~$251~~$316 billion were held as collateral for indemnified securities on loan at June 30, ~~2020.~~2021. The fair value of these indemnifications was not material at June 30, ~~2020.~~2021.

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. 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 ~~2019~~2020 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. 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 economic interest of 10% or greater and deconsolidates such VIEs once equity ownership falls below 10%. See Note 6, Consolidated Sponsored Investment Products, in the notes to the condensed consolidated financial statements for more information.

In addition to sponsored investment products, the Company consolidates an affiliated entity, which it deems to be a VRE, because it can exert control over its financial and operating policies, based on the Company’s 50.1% ownership and voting rights.

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.

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.~~SMAs. 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~~SMAs 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 products. Carried interest subject to such clawback provisions is recorded in investments or cash 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 June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company had ~~$418 million~~$1.1 billion and ~~$483~~$584 million, respectively, of deferred carried interest recorded in other liabilities 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 16, Revenue, in the notes to the condensed consolidated financial statements for detailed changes in the deferred carried interest liability balance for the three and six months ended June 30, ~~2020~~2021 and ~~2019.~~2020.

~~For accounting pronouncements that the Company adopted during the six months ended June 30, 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 (collectively “base 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 June 30, ~~2020,~~2021, the majority of the Company’s ~~investment advisory and administration~~base 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~~base 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 June 30, ~~2020,~~2021, the Company had outstanding total return swaps with an aggregate notional value of approximately ~~$667~~$863 million. ~~At June 30, 2020, there were no outstanding interest rate swaps.~~

At June 30, ~~2020,~~2021, approximately ~~$3.4~~$5.3 billion of BlackRock’s investments were maintained in consolidated sponsored investment products accounted for as ~~VIEs~~variable interest entities and ~~VREs.~~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 ~~$2.6~~$3.1 billion. See Statement of Financial Condition Overview-Investments in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information on the Company’s investments.

Equity Market Price Risk. At June 30, ~~2020,~~2021, the Company’s net exposure to equity market price risk in its investment portfolio was approximately ~~$755~~$1,276 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 ~~$76~~$128 million in the carrying value of such investments.

Interest Rate/Credit Spread Risk. At June 30, ~~2020,~~2021, the Company was exposed to interest-rate risk and credit spread risk as a result of approximately ~~$1,875~~$1,840 million of 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 ~~$36~~$30 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 ~~$827~~$959 million at June 30, ~~2020.~~2021. A 10% adverse change in the applicable foreign exchange rates would result in approximately a ~~$83~~$96 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 June 30, ~~2020,~~2021, the Company had outstanding forward foreign currency exchange contracts with an aggregate notional value of approximately ~~$2.6~~$2 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 June 30, ~~2020~~2021 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~~a majority 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 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 returnsFor a discussion of the ~~applicable portfolio or result~~Company’s legal proceedings, see Note 15, Commitments and Contingencies, in the ~~Company being liable~~notes 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~~condensed consolidated ~~complaint (the “Consolidated Complaint”) in the US District Court for the District~~financial statements 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 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 defendants continue to 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. On February 11, 2020, the court denied the plaintiffs’ motion to certify the CTF class and granted their motion to certify the Plan class. On April 27, 2020, the Ninth Circuit denied plaintiffs’ request to immediately appeal the class certification ruling. The defendants believe the claims in this lawsuit are without merit.

The following discussion supplements the discussion of 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 results of operations could be materially adversely affected by any of the following risks.~~

The COVID-19 pandemic ~~has caused and is causing significant harm to the global economy and~~ may adversely affect ~~our~~BlackRock’s business, ~~including our~~ operations and financial condition ~~and~~which may cause ~~our assets under management (“AUM”),~~its AUM, revenue and earnings to decline. The COVID-19 pandemic continues to result in authorities implementing numerous measures attempting 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~~BlackRock’s business. While global markets have significantly recovered ~~to varying degrees~~ since then, the effects of the pandemic are ongoing and ~~such impact may continue in future quarters if conditions persist~~could be prolonged or ~~worsen. Should current economic conditions persist or deteriorate, there may be~~worsen and have an ongoing adverse ~~effect~~impact on ~~our~~BlackRock’s business, including ~~our~~its operations and financial condition, as a result of, among other things:

The aggregate extent to which COVID-19, and the related impact on the global ~~economic crisis,~~economy, affect ~~our~~BlackRock’s 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, the emergence and spread of variants of the COVID-19 virus, the continuing prevalence of severe, unconstrained and/or escalating rates of infection in certain countries and regions, the availability, adoption and efficacy of treatments and vaccines, 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 of the COVID-19 pandemic on ~~our~~BlackRock’s 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~~BlackRock’s most recent Annual Report on Form 10-K and any subsequent ~~report~~reports filed with the Securities and Exchange Commission.

During the three months ended June 30, ~~2020,~~2021, 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	39

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	7273

Item 4.	Controls and Procedures	7374

Item 1.	Legal Proceedings	7475

Item 1A.	Risk Factors	76

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	77

Item 6.	Exhibits	78

(in millions)
Year	Amount
2021 (excluding the six months ended June 30, 2021)	$	20
2022		40
2023		38
2024		32
2025		29
Thereafter		111
Total	$	270

(in millions)	March 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		June 30, 2019		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	—	$	—		$	2	$	—	$	—		$	—	$	—	$	2	$	—
Total debt securities		—		—			2		—		—			—		—		2		—
Private equity		10		(1	)		—		—		—			—		—		9		(1	)
Bank loans		123		—			2		—		—			—		—		125		—
Total investments		133		(1	)		4		—		—			—		—		136		(1	)
Total Level 3 assets	$	133	$	(1	)	$	4	$	—	$	—		$	—	$	—	$	136	$	(1	)
Liabilities:
Other liabilities⁽³⁾	$	409	$	(13	)	$	—	$	—	$	(112	)	$	—	$	—	$	310	$	(13	)
Total Level 3 liabilities	$	409	$	(13	)	$	—	$	—	$	(112	)	$	—	$	—	$	310	$	(13	)

	Remainder of
(in millions)	2021			2022		2023		2024	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	86	$	168	$	137	$	82	$	51	$	524

Outstanding at	Shares Under Option			Weighted Average Exercise Price
December 31, 2019		1,941,145		$	513.50
Forfeited		(25,353	)	$	513.50
June 30, 2020		1,915,792		$	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
April 1, 2020 through April 30, 2020		32,498	$	465.74		26,866		5,041,968
May 1, 2020 through May 31, 2020⁽²⁾		2,662,804	$	415.39		—		5,041,968
June 1, 2020 through June 30, 2020		7,447	$	528.71		—		5,041,968
Total		2,702,749	$	416.31		26,866

Exhibit No.		Description

~~10.1(1)~~3.1(1)		~~Stock Repurchase Agreement, dated May 11, 2020, between~~Amended and Restated Certificate of Incorporation of BlackRock ~~Inc.~~

3.2(2)		Certificate of Change of Registered Agent and/or Registered Office

3.3(2)		Amended and ~~PNC Bancorp, Inc.~~Restated Bylaws of BlackRock

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: August ~~7, 2020~~5, 2021		Gary S. Shedlin
		Senior Managing Director & Chief Financial Officer (Principal Financial Officer)