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

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

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

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of October 31, ~~2020,~~2021, there were ~~152,510,707~~151,917,177 shares of the registrant’s common stock outstanding.

	September 30,			December 31,			September 30,			December 31,
(in millions, except shares and per share data)	2020			2019			2021			2020
Assets
Cash and cash equivalents⁽¹⁾	$	6,507		$	4,829		$	7,361		$	8,664
Accounts receivable		3,706			3,179			4,015			3,535
Investments⁽¹⁾		6,307			5,489			7,101			6,919
Separate account assets		95,994			102,844			96,755			104,663
Separate account collateral held under securities lending agreements		15,137			15,466			14,106			16,507
Property and equipment (net of accumulated depreciation of $1,040 and $880 at September 30, 2020 and December 31, 2019, respectively)		693			715
Intangible assets (net of accumulated amortization of $264 and $185 at September 30, 2020 and December 31, 2019, respectively)		18,290			18,369
Property and equipment (net of accumulated depreciation and amortization of $1,257 and $1,098 at September 30, 2021 and December 31, 2020, respectively)								703			681
Intangible assets (net of accumulated amortization of $389 and $291 at September 30, 2021 and December 31, 2020, respectively)								18,476			18,263
Goodwill		14,554			14,562			15,360			14,551
Operating lease right-of-use assets								1,798			649
Other assets⁽¹⁾		3,930			3,169			3,961			2,550
Total assets	$	165,118		$	168,622		$	169,636		$	176,982
Liabilities
Accrued compensation and benefits	$	1,847		$	2,057		$	2,343		$	2,499
Accounts payable and accrued liabilities		988			1,167			1,402			1,028
Borrowings		7,227			4,955			6,474			7,264
Separate account liabilities		95,994			102,844			96,755			104,663
Separate account collateral liabilities under securities lending agreements		15,137			15,466			14,106			16,507
Deferred income tax liabilities		3,742			3,734			3,659			3,673
Operating lease liabilities								1,946			755
Other liabilities⁽¹⁾		4,167			3,470			4,585			2,937
Total liabilities		129,102			133,693			131,270			139,326
Commitments and contingencies (Note 15)
Temporary equity
Redeemable noncontrolling interests		2,084			1,316			1,437			2,322
Permanent Equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;		2			2			2			2
Shares authorized: 500,000,000 at September 30, 2020 and December 31, 2019; Shares issued: 172,075,373 and 171,252,185 at September 30, 2020 and December 31, 2019, respectively; Shares outstanding: 152,496,403 and 154,375,780 at September 30, 2020 and December 31, 2019, respectively
Preferred stock (Note 20)		0			0
Shares authorized: 500,000,000 at September 30, 2021 and December 31, 2020; Shares issued: 172,075,373 at both September 30, 2021 and December 31, 2020; Shares outstanding: 151,988,234 and 152,532,885 at September 30, 2021 and December 31, 2020, respectively
Additional paid-in capital		19,150			19,186			19,462			19,293
Retained earnings		23,340			21,662			26,672			24,334
Accumulated other comprehensive loss		(601	)		(571	)		(526	)		(337	)
Treasury stock, common, at cost (19,578,970 and 16,876,405 shares held at September 30, 2020 and December 31, 2019, respectively)		(8,018	)		(6,732	)
Treasury stock, common, at cost (20,087,139 and 19,542,488 shares held at September 30, 2021 and December 31, 2020, respectively)								(8,793	)		(8,009	)
Total BlackRock, Inc. stockholders’ equity		33,873			33,547			36,817			35,283
Nonredeemable noncontrolling interests		59			66			112			51
Total permanent equity		33,932			33,613			36,929			35,334
Total liabilities, temporary equity and permanent equity	$	165,118		$	168,622		$	169,636		$	176,982

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions, except shares and per share data)	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	$	2,329		$	2,105		$	6,556		$	6,155		$	2,964		$	2,329		$	8,478		$	6,556
Other third parties		896			875			2,690			2,533			979			896			2,814			2,690
Total investment advisory, administration fees and securities lending revenue		3,225			2,980			9,246			8,688			3,943			3,225			11,292			9,246
Investment advisory performance fees		532			121			685			211			345			532			814			685
Technology services revenue		282			259			834			700			320			282			942			834
Distribution fees		288			270			817			799			401			288			1,110			817
Advisory and other revenue		42			62			145			164			41			42			110			145
Total revenue		4,369			3,692			11,727			10,562			5,050			4,369			14,268			11,727
Expense
Employee compensation and benefits		1,411			1,111			3,700			3,258			1,527			1,411			4,484			3,700
Distribution and servicing costs		456			427			1,330			1,247			585			456			1,613			1,330
Direct fund expense		257			239			780			733			354			257			994			780
General and administration		461			385			1,991			1,243
General and administration expense														611			461			1,657			1,991
Amortization of intangible assets		27			28			79			68			38			27			109			79
Total expense		2,612			2,190			7,880			6,549			3,115			2,612			8,857			7,880
Operating income		1,757			1,502			3,847			4,013			1,935			1,757			5,411			3,847
Nonoperating income (expense)
Net gain (loss) on investments		269			(7	)		627			224			370			269			766			627
Interest and dividend income		9			19			34			68			14			9			41			34
Interest expense		(54	)		(54	)		(151	)		(152	)		(48	)		(54	)		(155	)		(151	)
Total nonoperating income (expense)		224			(42	)		510			140			336			224			652			510
Income before income taxes		1,981			1,460			4,357			4,153			2,271			1,981			6,063			4,357
Income tax expense (benefit)		464			341			811			961
Income tax expense														518			464			1,490			811
Net income		1,517			1,119			3,546			3,192			1,753			1,517			4,573			3,546
Less:
Net income (loss) attributable to noncontrolling interests		153			—			162			17			72			153			315			162
Net income attributable to BlackRock, Inc.	$	1,364		$	1,119		$	3,384		$	3,175		$	1,681		$	1,364		$	4,258		$	3,384
Earnings per share attributable to BlackRock, Inc. common stockholders:
Basic	$	8.94		$	7.21		$	22.00		$	20.31		$	11.05		$	8.94		$	27.94		$	22.00
Diluted	$	8.87		$	7.15		$	21.84		$	20.17		$	10.89		$	8.87		$	27.59		$	21.84
Weighted-average common shares outstanding:
Basic		152,488,073			155,280,877			153,816,544			156,290,212			152,120,927			152,488,073			152,375,504			153,816,544
Diluted		153,742,264			156,447,387			154,959,812			157,385,956			154,343,277			153,742,264			154,352,590			154,959,812

	Three Months Ended					Nine Months Ended						Three Months Ended					Nine Months Ended
	September 30,					September 30,						September 30,					September 30,
(in millions)	2020		2019			2020			2019			2021			2020		2021			2020
Net income	$	1,517	$	1,119		$	3,546		$	3,192		$	1,753		$	1,517	$	4,573		$	3,546
Other comprehensive income (loss):
Foreign currency translation adjustments⁽¹⁾		180		(120	)		(30	)		(93	)		(138	)		180		(189	)		(30	)
Comprehensive income (loss)		1,697		999			3,516			3,099			1,615			1,697		4,384			3,516
Less: Comprehensive income (loss) attributable to noncontrolling interests		153		-			162			17			72			153		315			162
Comprehensive income attributable to BlackRock, Inc.	$	1,544	$	999		$	3,354		$	3,082		$	1,543		$	1,544	$	4,069		$	3,354

(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		—			3,384			—			—			3,384			(2	)		3,382			164			—			3,384			—			—			3,384			(2	)		3,382			164
Dividends declared ($10.89 per share)		—			(1,706	)		—			—			(1,706	)		—			(1,706	)		—			—			(1,706	)		—			—			(1,706	)		—			(1,706	)		—
Stock-based compensation		458			—			—			—			458			—			458			—			458			—			—			—			458			—			458			—
Issuance of common shares related to employee stock transactions		(494	)		—			—			506			12			—			12			—			(494	)		—			—			506			12			—			12			—
Employee tax withholdings related to employee stock transactions		—			—			—			(280	)		(280	)		—			(280	)		—			—			—			—			(280	)		(280	)		—			(280	)		—
Shares repurchased		—			—			—			(1,512	)		(1,512	)		—			(1,512	)		—			—			—			—			(1,512	)		(1,512	)		—			(1,512	)		—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			(5	)		(5	)		1,363
Contributions (redemptions/distributions) — noncontrolling interest holders																										—			—			—			—			—			(5	)		(5	)		1,363
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			(759	)		—			—			—			—			—			—			—			(759	)
Other comprehensive income (loss)		—			—			(30	)		—			(30	)		—			(30	)		—			—			—			(30	)		—			(30	)		—			(30	)		—
September 30, 2020	$	19,152		$	23,340		$	(601	)	$	(8,018	)	$	33,873		$	59		$	33,932		$	2,084		$	19,152		$	23,340		$	(601	)	$	(8,018	)	$	33,873		$	59		$	33,932		$	2,084

(in millions)	Additional Paid-in Capital⁽¹⁾			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity		Additional Paid-in Capital⁽¹⁾			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock Common			Total BlackRock Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Permanent Equity			Redeemable Noncontrolling Interests / Temporary Equity
June 30, 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
Net income		—			1,364			—			—			1,364			(2	)		1,362			155		—			1,364			—			—			1,364			(2	)		1,362			155
Dividends declared ($3.63 per share)		—			(556	)		—			—			(556	)		—			(556	)		—		—			(556	)		—			—			(556	)		—			(556	)		—
Stock-based compensation		160			—			—			—			160			—			160			—		160			—			—			—			160			—			160			—
Issuance of common shares related to employee stock transactions		(17	)		—			—			22			5			—			5			—		(17	)		—			—			22			5			—			5			—
Employee tax withholdings related to employee stock transactions		—			—			—			(10	)		(10	)		—			(10	)		—		—			—			—			(10	)		(10	)		—			(10	)		—
Shares repurchased		—			—			—			—			—			—			—			—		—			—			—			—			—			—			—			—
Subscriptions (redemptions/distributions) — noncontrolling interest holders		—			—			—			—			—			5			5			548
Contributions (redemptions/distributions) — noncontrolling interest holders																									—			—			—			—			—			5			5			548
Net consolidations (deconsolidations) of sponsored investment funds		—			—			—			—			—			—			—			133		—			—			—			—			—			—			—			133
Other comprehensive income (loss)		—			—			180			—			180			—			180			—		—			—			180			—			180			—			180			—
September 30, 2020	$	19,152		$	23,340		$	(601	)	$	(8,018	)	$	33,873		$	59		$	33,932		$	2,084	$	19,152		$	23,340		$	(601	)	$	(8,018	)	$	33,873		$	59		$	33,932		$	2,084

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

Retained
Earnings

Accumulated
Other
Comprehensive
Income (Loss)

Treasury
Stock
Common

Total
BlackRock
Stockholders’
Equity

Nonredeemable
Noncontrolling
Interests

Total
Permanent
Equity

Redeemable
Noncontrolling
Interests /
Temporary
Equity

December 31, 2018
$
19,170

$
19,282

$
(691
)

$
(5,387
)

$
32,374

$
59

$
32,433

$
1,107

Net income

—

3,175

—

—

3,175

—

3,175

17

Dividends declared ($9.90 per share)

—

(1,584
)

—

—

(1,584
)

—

(1,584
)

—

Stock-based compensation

427

—

—

—

427

—

427

—

PNC preferred stock capital contribution

60

—

—

—

60

—

60

—

Retirement of preferred stock

(60
)

—

—

—

(60
)

—

(60
)

—

Issuance of common shares related to
   employee stock transactions

(537
)

—

—

549

12

—

12

—

Employee tax withholdings related to
   employee stock transactions

—

—

—

(238
)

(238
)

—

(238
)

—

Shares repurchased

—

—

—

(1,666
)

(1,666
)

—

(1,666
)

—

Subscriptions (redemptions/distributions)
   — noncontrolling interest holders

—

—

—

—

—

1

1

906

Net consolidations (deconsolidations) of
  sponsored investment funds

—

—

—

—

—

—

—

(893
)
Other comprehensive income (loss)

—

—

(93
)

—

(93
)

—

(93
)

—

September 30, 2019
$
19,060

$
20,873

$
(784
)

$
(6,742
)

$
32,407

$
60

$
32,467

$
1,137

	Nine Months Ended						Nine Months Ended
(in millions)	September 30,						September 30,
	2020			2019			2021			2020
Operating activities
Net income	$	3,546		$	3,192		$	4,573		$	3,546
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization		342			294			305			255
Noncash lease expense								101			87
Stock-based compensation		458			427			551			458
Deferred income tax expense (benefit)		20			45			(5	)		20
Charitable Contribution		589			—			—			589
Gain related to the Charitable Contribution		(122	)		—			—			(122	)
Gain related to iCapital recapitalization		(244	)		—
Other gains		—			(30	)
Net (gains) losses within consolidated sponsored investment products		(161	)		(160	)
Net (purchases) proceeds within consolidated sponsored investment products		(1,603	)		(1,106	)
Other investment gains								(153	)		(244	)
Net (gains) losses within CIPs								(350	)		(161	)
Net (purchases) proceeds within CIPs								(1,047	)		(1,603	)
(Earnings) losses from equity method investees		(75	)		(89	)		(226	)		(75	)
Distributions of earnings from equity method investees		25			29			54			25
Changes in operating assets and liabilities:
Accounts receivable		(544	)		(330	)		(527	)		(544	)
Investments, trading		153			17			113			153
Other assets		(864	)		(225	)		(1,289	)		(864	)
Accrued compensation and benefits		(206	)		(525	)		(180	)		(206	)
Accounts payable and accrued liabilities		(183	)		(61	)		354			(183	)
Other liabilities		633			150			753			633
Net cash provided by/(used in) operating activities		1,764			1,628			3,027			1,764
Investing activities
Purchases of investments		(252	)		(572	)		(579	)		(252	)
Proceeds from sales and maturities of investments		133			151			294			133
Distributions of capital from equity method investees		124			80			77			124
Net consolidations (deconsolidations) of sponsored investment funds		(42	)		(96	)		(59	)		(42	)
Acquisitions, net of cash acquired		—			(1,510	)		(1,097	)		—
Purchases of property and equipment		(140	)		(160	)		(215	)		(140	)
Net cash provided by/(used in) investing activities		(177	)		(2,107	)		(1,579	)		(177	)
Financing activities
Proceeds from long-term borrowings		2,245			992			—			2,245
Repayments of long-term borrowings								(750	)		—
Cash dividends paid		(1,706	)		(1,584	)		(1,920	)		(1,706	)
Repurchases of common stock		(1,792	)		(1,904	)		(1,182	)		(1,792	)
Net proceeds from (repayments of) borrowings by consolidated sponsored investment products		38			102
Net (redemptions/distributions paid)/subscriptions received from noncontrolling interest holders		1,358			907
Net proceeds from (repayments of) borrowings by CIPs								32			38
Net contributions (redemptions/distributions) - noncontrolling interest holders								1,126			1,358
Other financing activities		(37	)		118			(1	)		(37	)
Net cash provided by/(used in) financing activities		106			(1,369	)		(2,695	)		106
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(15	)		(33	)		(56	)		(15	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		1,678			(1,881	)		(1,303	)		1,678
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	$	6,524		$	4,624		$	7,378		$	6,524
Supplemental schedule of noncash investing and financing transactions:
Issuance of common stock	$	494		$	537		$	382		$	494
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	$	(759	)	$	(893	)	$	(2,265	)	$	(759	)

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 September 30, ~~2020~~2021 and for the three and nine months ended September 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 ~~Nine Months Ended September 30, 2020~~

~~Measurement~~Company’s sponsored investment products and minority interests in WMC. 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 equal 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 net investment hedges 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 nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, the Company had ~~not~~0t resold or repledged any of the collateral received under these arrangements. At September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the fair value of loaned securities held by separate accounts was approximately ~~$14~~$13 billion and ~~$14.4~~$15.2 billion, respectively, and the fair value of the collateral held under these securities lending agreements was approximately ~~$15.1~~$14.1 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 nine months ended September 30, 2021, these waivers resulted in a reduction of management fees of approximately $130 million and $360 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 nine months ended September 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(2)		400			270
Technology-related		203
Trade name		14
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 $27 million, respectively, for the three and nine months ended September 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 nine months ended September 30, 2021, Aperio contributed $22 million and $56 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.

	September 30,		December 31,		September 30,		December 31,
	2020		2019		2021		2020
(in millions)
Cash and cash equivalents	$	6,507	$	4,829	$	7,361	$	8,664
Restricted cash included in other assets		17		17		17		17
Total cash, cash equivalents and restricted cash	$	6,524	$	4,846	$	7,378	$	8,681

	September 30,		December 31,		September 30,		December 31,
(in millions)	2020		2019		2021		2020
Debt securities:
Held-to-maturity investments	$	284	$	249	$	386	$	310
Trading securities		1,821		1,249		1,480		1,964
Total debt securities		2,105		1,498		1,866		2,274
Equity securities at FVTNI⁽¹⁾		2,090		1,926		1,591		2,317
Equity method investments⁽²⁾		1,036		943		1,544		1,081
Bank loans		226		204		282		248
Federal Reserve Bank stock⁽³⁾		94		93		95		94
Carried interest⁽⁴⁾		483		528		1,446		627
Other investments⁽⁵⁾		273		297		277		278
Total investments	$	6,307	$	5,489	$	7,101	$	6,919

The carrying value of held-to-maturity investments was ~~$284~~$386 million and ~~$249~~$310 million at September 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 September 30, ~~2020, $10~~2021, $36 million of these investments mature between one to five years, ~~$149~~$96 million of these investments mature between five to ~~ten~~10 years and ~~$125~~$254 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:


	September 30, 2020				December 31, 2019				September 30, 2021				December 31, 2020
(in millions)	Cost		Carrying Value		Cost		Carrying Value		Cost		Carrying Value		Cost		Carrying Value
Trading debt securities:
Corporate debt	$	1,447	$	1,441	$	822	$	844	$	961	$	970	$	1,591	$	1,641
Government debt		269		270		268		269		403		403		203		210
Asset/mortgage-backed debt		126		110		141		136		120		107		132		113
Total trading debt securities	$	1,842	$	1,821	$	1,231	$	1,249	$	1,484	$	1,480	$	1,926	$	1,964
Equity securities at FVTNI:
Equity securities/mutual funds	$	1,989	$	2,090	$	1,769	$	1,926	$	1,311	$	1,591	$	2,055	$	2,317
Total equity securities at FVTNI	$	1,989	$	2,090	$	1,769	$	1,926	$	1,311	$	1,591	$	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:

	September 30, 2020									December 31, 2019									September 30, 2021									December 31, 2020
(in millions)	VIEs			VREs			Total			VIEs			VREs			Total			VIEs			VREs			Total			VIEs			VREs			Total
Cash and cash equivalents	$	186		$	22		$	208		$	131		$	10		$	141		$	204		$	61		$	265		$	155		$	51		$	206
Investments:
Trading debt securities		1,551			238			1,789			1,059			151			1,210			1,258			167			1,425			1,618			310			1,928
Equity securities at FVTNI		1,458			397			1,855			1,330			332			1,662			946			308			1,254			1,592			413			2,005
Bank loans		226			—			226			204			—			204			282			—			282			248			—			248
Other investments		185			—			185			194			—			194			207			—			207			191			—			191
Carried interest		462			—			462			514			—			514			1,406			—			1,406			604			—			604
Total investments		3,882			635			4,517			3,301			483			3,784			4,099			475			4,574			4,253			723			4,976
Other assets		84			25			109			68			5			73			83			10			93			90			9			99
Other liabilities⁽¹⁾		(798	)		(71	)		(869	)		(820	)		(20	)		(840	)		(1,799	)		(39	)		(1,838	)		(952	)		(70	)		(1,022	)
Noncontrolling interests		(2,026	)		(117	)		(2,143	)		(1,348	)		(34	)		(1,382	)
BlackRock's net interests in consolidated investment products	$	1,328		$	494		$	1,822		$	1,332		$	444		$	1,776
Noncontrolling interests - CIPs																				(1,416	)		(59	)		(1,475	)		(2,193	)		(180	)		(2,373	)
BlackRock's net interests in CIPs																			$	1,171		$	448		$	1,619		$	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					Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,					September 30,				September 30,				September 30,
(in millions)	2020		2019			2020		2019		2021		2020		2021		2020

Nonoperating net gain (loss) on consolidated VIEs	$	213	$	(5	)	$	186	$	128	$	50	$	213	$	323	$	186

Net income (loss) attributable to NCI on consolidated VIEs	$	149	$	—		$	169	$	17	$	73	$	149	$	296	$	169

Nonconsolidated VIEs. At September 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 September 30, 2020	Investments		Advisory Fee Receivables		Other Net Assets (Liabilities)			Maximum Risk of Loss⁽¹⁾
At September 30, 2021										Investments		Receivables		(Liabilities)			Risk of Loss⁽¹⁾
Sponsored investment products	$	626	$	80	$	(13	)	$	723	$	865	$	71	$	(12	)	$	953
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 ~~$15~~$23 billion and ~~$12~~$16 billion at September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

September 30, 2020 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV⁽¹⁾		Other⁽²⁾		September 30, 2020
September 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⁾		September 30, 2021
Assets:
Investments
Debt securities:
Held-to-maturity investments	$	—	$	—	$	—	$	—	$	284	$	284	$	—	$	—	$	—	$	—	$	386	$	386
Trading securities		—		1,810		11		—		—		1,821		—		1,450		30		—		—		1,480
Total debt securities		—		1,810		11		—		284		2,105		—		1,450		30		—		386		1,866
Equity securities at FVTNI:
Equity securities/mutual funds		2,090		—		—		—		—		2,090		1,591		—		—		—		—		1,591
Equity method:
Equity and fixed income mutual funds		242		—		—		—		—		242		339		—		—		—		—		339
Hedge funds/funds of hedge funds		—		—		—		266		—		266		—		—		—		359		—		359
Private equity funds		—		—		—		285		—		285		—		—		—		633		—		633
Real assets funds		—		—		—		234		—		234		—		—		—		213		—		213
Other		—		—		—		9		—		9
Total equity method		242		—		—		794		—		1,036		339		—		—		1,205		—		1,544
Bank loans		—		9		217		—		—		226		—		9		273		—		—		282
Federal Reserve Bank Stock		—		—		—		—		94		94		—		—		—		—		95		95
Carried interest		—		—		—		—		483		483		—		—		—		—		1,446		1,446
Other investments⁽³⁾		—		—		10		93		170		273		—		4		5		94		174		277
Total investments		2,332		1,819		238		887		1,031		6,307		1,930		1,463		308		1,299		2,101		7,101
Other assets⁽⁴⁾		192		18		—		—		—		210		197		23		—		—		—		220
Separate account assets		65,032		29,766		—		—		1,196		95,994		65,704		30,146		—		—		905		96,755
Separate account collateral held under securities lending agreements:
Equity securities		10,250		—		—		—		—		10,250		10,551		—		—		—		—		10,551
Debt securities		—		4,887		—		—		—		4,887		—		3,555		—		—		—		3,555
Total separate account collateral held under securities lending agreements		10,250		4,887		—		—		—		15,137		10,551		3,555		—		—		—		14,106
Total	$	77,806	$	36,490	$	238	$	887	$	2,227	$	117,648	$	78,382	$	35,187	$	308	$	1,299	$	3,006	$	118,182
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	10,250	$	4,887	$	—	$	—	$	—	$	15,137	$	10,551	$	3,555	$	—	$	—	$	—	$	14,106
Other liabilities⁽⁵⁾		—		36		261		—		—		297		—		41		340		—		—		381
Total	$	10,250	$	4,923	$	261	$	—	$	—	$	15,434	$	10,551	$	3,596	$	340	$	—	$	—	$	14,487

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/mutual funds		1,926		—		—		—		—		1,926		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 ~~$238~~$308 million and ~~$194~~$252 million at September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, primarily included bank loans of a consolidated CLO.

Level 3 Liabilities.Level 3 liabilities primarily include 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, and contingent liabilities related to certain acquisitions, which were valued based upon discounted cash flow analyses using unobservable market data inputs.

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

(in millions)	June 30, 2021		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾		Transfers into Level 3		Transfers out of Level 3			September 30, 2021		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	21	$	2		$	12	$	(5	)	$	—	$	—	$	—		$	30	$	2
Total debt securities		21		2			12		(5	)		—		—		—			30		2
Private equity		5		1			—		—			—		—		(1	)		5		1
Bank loans		261		—			16		—			—		1		(5	)		273		—
Total investments	$	287	$	3		$	28	$	(5	)	$	—	$	1	$	(6	)	$	308	$	3
Liabilities:
Other liabilities	$	298	$	(28	)	$	—	$	—		$	14	$	—	$	—		$	340	$	(28	)
Total Level 3 liabilities	$	298	$	(28	)	$	—	$	—		$	14	$	—	$	—		$	340	$	(28	)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 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			September 30, 2021		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	11	$	2		$	24	$	(5	)	$	—	$	—	$	(2	)	$	30	$	2
Total debt securities		11		2			24		(5	)		—		—		(2	)		30		2
Private equity		9		1			—		—			—		—		(5	)		5		1
Bank loans		232		—			45		—			—		11		(15	)		273		—
Total investments	$	252	$	3		$	69	$	(5	)	$	—	$	11	$	(22	)	$	308	$	3
Liabilities:
Other liabilities	$	272	$	(32	)	$	—	$	—		$	36	$	—	$	—		$	340	$	(32	)
Total Level 3 liabilities	$	272	$	(32	)	$	—	$	—		$	36	$	—	$	—		$	340	$	(32	)

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

(in millions)	June 30, 2020		Realized and Unrealized Gains (Losses)		Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3			September 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾		June 30, 2020		Realized and Unrealized Gains (Losses)		Purchases		Sales and Maturities			Issuances and other Settlements⁽¹⁾			Transfers into Level 3		Transfers out of Level 3			September 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Trading	$	10	$	—	$	1	$	—		$	—		$	—	$	—		$	11	$	—	$	10	$	—	$	1	$	—		$	—		$	—	$	—		$	11	$	—
Total debt securities		10		—		1		—			—			—		—			11		—		10		—		1		—			—			—		—			11		—
Private equity		16		—		—		(6	)		—			—		—			10		—		16		—		—		(6	)		—			—		—			10		—
Bank loans		229		—		—		(9	)		—			—		(3	)		217		—		229		—		—		(9	)		—			—		(3	)		217		—
Total investments	$	255	$	—	$	1	$	(15	)	$	—		$	—	$	(3	)	$	238	$	—	$	255	$	—	$	1	$	(15	)	$	—		$	—	$	(3	)	$	238	$	—
Liabilities:
Other liabilities⁽³⁾	$	262	$	—	$	—	$	—		$	(1	)	$	—	$	—		$	261	$	—	$	262	$	—	$	—	$	—		$	(1	)	$	—	$	—		$	261	$	—
Total Level 3 liabilities	$	262	$	—	$	—	$	—		$	(1	)	$	—	$	—		$	261	$	—	$	262	$	—	$	—	$	—		$	(1	)	$	—	$	—		$	261	$	—

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

(in millions)

December 31,
2019

Realized
and
Unrealized
Gains
(Losses)

Purchases

Sales and
Maturities

Issuances and
other
Settlements⁽¹⁾

Transfers
into
Level 3

Transfers
out of
Level 3

September 30,
2020

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

Assets:

Investments:

Debt securities:

Trading

$
8

$
—

$
3

$
—

$
—

$
—

$
—

$
11

$
—

Total debt securities

8

—

3

—

—

—

—

11

—

Private equity

9

—

8

(7
)

—

—

—

10

—

Bank loans

177

—

36

(9
)

—

16

(3
)

217

—

Total investments

$
194

$
—

$
47

$
(16
)

$
—

$
16

$
(3
)

$
238

$
—

Liabilities:

Other liabilities⁽³⁾

$
388

$
(23
)

$
—

$
—

$
(150
)

$
—

$
—

$
261

$
(5
)
Total Level 3 liabilities

$
388

$
(23
)

$
—

$
—

$
(150
)

$
—

$
—

$
261

$
(5
)

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

(in millions)

June 30,
2019

Realized
and
Unrealized
Gains
(Losses)

Purchases

Sales and
Maturities

Issuances
and
other
Settlements⁽¹⁾

Transfers
into
Level 3

Transfers
out of
Level 3

September 30,
2019

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

Assets:

Investments:

Debt securities:

Trading

$
2

$
—

$
3

$
—

$
—

$
—

$
—

$
5

$
—

Total debt securities

2

—

3

—

—

—

—

5

—

Private equity

9

1

—

—

—

—

(1
)

9

1

Bank loans

125

—

32

—

—

—

—

157

—

Total investments

136

1

35

—

—

—

(1
)

171

1

Total Level 3 assets

$
136

$
1

$
35

$
—

$
—

$
—

$
(1
)

$
171

$
1

Liabilities:

Other liabilities⁽³⁾

$
310

$
1

$
—

$
—

$
44

$
—

$
—

$
353

$
1

Total Level 3 liabilities

$
310

$
1

$
—

$
—

$
44

$
—

$
—

$
353

$
1

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, ~~2019~~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⁾			September 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			September 30, 2020		Total Net Unrealized Gains (Losses) Included in Earnings⁽³⁾
Assets:
Investments:
Debt securities:
Trading	$	4	$	—		$	5	$	—	$	—		$	—	$	(4	)	$	5	$	—		$	8	$	—		$	3	$	—		$	—		$	—	$	—		$	11	$	—
Total debt securities		4		—			5		—		—			—		(4	)		5		—			8		—			3		—			—			—		—			11		—
Private equity		82		—			—		—		—			—		(73	)		9		—			9		—			8		(7	)		—			—		—			10		—
Bank loans⁽⁴⁾		70		—			87		—		—			—		—			157		—			177		—			36		(9	)		—			16		(3	)		217		—
Total investments		156		—			92		—		—			—		(77	)		171		—		$	194	$	—		$	47	$	(16	)	$	—		$	16	$	(3	)	$	238	$	—
Total Level 3 assets	$	156	$	—		$	92	$	—	$	—		$	—	$	(77	)	$	171	$	—
Liabilities:
Other liabilities⁽⁴⁾	$	371	$	(18	)	$	—	$	—	$	(36	)	$	—	$	—		$	353	$	(18	)
Other liabilities																							$	388	$	(23	)	$	—	$	—		$	(150	)	$	—	$	—		$	261	$	(5	)
Total Level 3 liabilities	$	371	$	(18	)	$	—	$	—	$	(36	)	$	—	$	—		$	353	$	(18	)	$	388	$	(23	)	$	—	$	—		$	(150	)	$	—	$	—		$	261	$	(5	)

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 September 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:

	September 30, 2020				December 31, 2019						September 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	$	6,507	$	6,507	$	4,829	$	4,829	Level 1	^{(2) (3)}	$	7,361	$	7,361	$	8,664	$	8,664	Level 1	^{(2) (3)}
Other assets	$	41	$	41	$	68	$	68	Level 1	⁽⁴⁾	$	48	$	48	$	69	$	69	Level 1	⁽⁴⁾

Financial Liabilities:
Long-term borrowings	$	7,227	$	7,857	$	4,955	$	5,254	Level 2	⁽⁵⁾	$	6,474	$	6,836	$	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).

September 30, 2020

September 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)

266

107

Daily/Monthly (23%)

Quarterly (20%)

N/R (57%)

1 – 90 days

(a)

359

123

Daily/Monthly (21%)

Quarterly (21%)

N/R (58%)

1 – 90 days

Private equity funds

(b)

285

253

N/R

(b)

633

302

N/R

Real assets funds

(c)

234

216

Quarterly (41%)

N/R (59%)

60 days

(c)

213

229

Quarterly (21%)

N/R (79%)

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)

101

N/R

(c)

106

N/R

Funds of hedge funds

N/R

Total

887

690

1,299

786

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 September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company elected the fair value option for certain investments in CLOs of approximately ~~$32~~$54 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 September 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

	September 30,		December 31,		September 30,			December 31,
(in millions)	2020		2019		2021			2020
CLO Bank loans:
Aggregate principal amounts outstanding	$	231	$	204	$	280		$	250
Fair value		226		204		282			248
Aggregate unpaid principal balance in excess of (less than) fair value	$	5	$	—	$	(2	)	$	2

CLO Borrowings:
Aggregate principal amounts outstanding	$	249	$	195	$	275		$	244
Fair value	$	233	$	195	$	278		$	246

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

During the three and nine months ended September 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 September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company had outstanding total return swaps with aggregate notional values of approximately ~~$735~~$801 million and ~~$644~~$833 million, respectively.

The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange movements. At September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company had outstanding forward foreign currency exchange contracts with aggregate notional values of approximately ~~$4.1~~$2.2 billion and $~~3.4~~2.8 billion, respectively, and with expiration dates in October ~~2020~~2021 and January ~~2020,~~2021, respectively.

At both September 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 September 30, 2021 and December 31, 2020:

(in millions)							Assets					Liabilities
	September 30, 2020						Statement of Financial Condition	September 30,		December 31,		Statement of Financial Condition	September 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	$	6	Other liabilities	$	10	Other assets	$	22	$	—	Other liabilities	$	1	$	50
Forward foreign currency exchange contracts	Other assets		12	Other liabilities		13	Other assets		1		13	Other liabilities		28		5
Total		$	18		$	23		$	23	$	13		$	29	$	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						Nine Months Ended								Three Months Ended						Nine Months Ended
			September 30,						September 30,								September 30,						September 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)	$	(42	)	$	2		$	9		$	(62	)		Nonoperating income (expense)	$	14		$	(42	)	$	(70	)	$	9
Forward foreign currency exchange contracts		General and administration expense		64			(43	)		(34	)		(56	)		General and administration expense		(46	)		64			(36	)		(34	)
Total gain (loss) from derivative instruments	Total gain (loss) from derivative instruments		$	22		$	(41	)	$	(25	)	$	(118	)	Total gain (loss) from derivative instruments		$	(32	)	$	22		$	(106	)	$	(25	)

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 nine months ended September 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 nine months ended September 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		—		(79	)		(79	)		—		(109	)		(109	)
September 30, 2020	$	17,578	$	712		$	18,290
September 30, 2021									$	17,578	$	898		$	18,476

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

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
Lease cost:
Operating lease cost⁽¹⁾	$	37	$	36	$	110	$	104	$	50	$	37	$	128	$	110
Variable lease cost⁽²⁾		10		10		29		28		10		10		30		29
Total lease cost	$	47	$	46	$	139	$	132	$	60	$	47	$	158	$	139

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

	Nine Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2020		2019		2021		2020
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	114	$	105
Operating cash flows from operating leases included in the measurement
of operating lease liabilities					$	108	$	114

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	$	54	$	1,297	$	77

	September 30,			December 31,			September 30,			December 31,
	2020			2019			2021			2020
Lease term and discount rate:
Weighted-average remaining lease term		8	years		9	years		16	years		8	years
Weighted-average discount rate		3	%		3	%		3	%		3	%

At September 30, 2021 and December 31, ~~2019,~~2020, the Company ~~accounted for its interest in PennyMac Financial Services, Inc. (“PennyMac”) as an~~had $582 million and $399 million of equity method ~~investment, which was included in~~investments, respectively, recorded within other assets on the condensed consolidated statements of financial condition. ~~The carrying~~In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value ~~and market value of~~measures; therefore, the Company’s interest (approximately 20% or 16 million shares) were approximately $451 million and $530 million, respectively, at December 31, 2019. The market value of the Company’s interest reflected the PennyMac stock price at December 31, 2019 (a Level 1 input).

~~On February 13, 2020, BlackRock announced the establishment of The BlackRock Foundation (the “Foundation”) and the contribution of its remaining 20% stake~~investment in PennyMac to the Foundation and the BlackRock Charitable Fund, which BlackRock established in 2013 (together, the “Charitable Contribution”). The Charitable Contribution resulted in an operating expense of $589 million, which was offset by a $122 million noncash, nonoperating pre-tax gain on the contributed shares and a tax benefit of $241 million in the condensed consolidated statement of income for the nine months ended September 30, 2020.such equity method investees may not represent fair value.

On March 10, 2020, in connection with a recapitalization of iCapital Network, Inc. (“iCapital”), BlackRock received additional stock in exchange for certain securities it held, which resulted in a nonoperating pre-tax gain of approximately $240 million in the condensed consolidated statement of income for the nine months ended September 30, 2020. Following this transaction, the Company accounts for its interest in iCapital as an equity method investment, which is included in other assets on the condensed consolidated statements of financial condition. During the three and nine months ended September 30, 2021, BlackRock recorded a nonoperating, noncash, pre-tax gain of $107 million in the condensed consolidated statements of income in connection with iCapital’s most recent third-party equity financing. At September 30, 2021 and December 31, 2020, the carrying value of the Company’s interest in iCapital was approximately ~~$297 million.~~$401 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 September 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 September 30, ~~2020,~~2021, the Company had 0 amount outstanding under the ~~2020~~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 September 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 September 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	$	769
3.375% Notes due 2022		750		(2	)		748		787	$	750	$	—		$	750	$	766
3.50% Notes due 2024		1,000		(3	)		997		1,102		1,000		(2	)		998		1,071
1.25% Notes due 2025		821		(3	)		818		868		811		(3	)		808		851
3.20% Notes due 2027		700		(5	)		695		794		700		(4	)		696		767
3.25% Notes due 2029		1,000		(12	)		988		1,155		1,000		(11	)		989		1,097
2.40% Notes due 2030		1,000		(7	)		993		1,086		1,000		(6	)		994		1,034
1.90% Notes due 2031		1,250		(12	)		1,238		1,296		1,250		(11	)		1,239		1,250
Total Long-term Borrowings	$	7,271	$	(44	)	$	7,227	$	7,857	$	6,511	$	(37	)	$	6,474	$	6,836

~~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, which commenced 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 September 30, ~~2020,~~2021, the Company had ~~$703~~$905 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 September 30, ~~2020~~2021 totaled ~~$28~~$62 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 purported to be brought derivatively on behalf of the Funds, the plaintiffs alleged that the defendants violated Section 36(b) of the Investment Company Act by receiving allegedly excessive investment advisory fees from the Funds. On June 13, 2018, the court granted in part and denied in part the defendants’ motion for summary judgment. On July 25, 2018, the plaintiffs served a pleading that supplemented the time period of their alleged damages to run through the date of trial. The lawsuit sought, among other things, to recover on behalf of the Funds all allegedly excessive advisory fees received by the defendants beginning twelve months preceding the start of the lawsuit with respect to each Fund and ending on the date of judgment, along with purported lost investment returns on those amounts, plus interest. The trial on the remaining issues was completed on August 29, 2018. On February 8, 2019, the court issued an order dismissing the claims in their entirety. On May 28, 2020, the Third Circuit Court of Appeals affirmed the trial court’s summary judgment and trial rulings. On June 26, 2020, Plaintiffs petitioned the appeals court for a rehearing, which was denied July 9, 2020. The plaintiffs’ deadline to seek further appeal has passed. Consequently, BlackRock now considers this matter closed.

~~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 alleged the defendants violated the federal securities laws by failing to adequately disclose in prospectuses issued by the ETFs the risks to the ETFs’ shareholders in the event of a "flash crash." The plaintiffs sought unspecified monetary and rescission damages. The plaintiffs’ complaint was dismissed in December 2016 and on January 6, 2017, the plaintiffs filed an amended complaint. On April 27, 2017, the court partially granted the defendants’ motion for judgment on the pleadings, dismissing certain of the plaintiffs’ claims. On September 18, 2017, the court issued a decision dismissing the remainder of the lawsuit after a one-day bench trial. On December 1, 2017, the plaintiffs appealed the dismissal of their lawsuit 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 plaintiffs’ deadline to seek further appeal has passed. Consequently, BlackRock now considers this matter closed.

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 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. On September 24, 2020, the parties cross-moved for summary ~~judgment. Any issues~~judgment, both of which were denied on January 12, 2021. On February 5, 2021, the parties reached a settlement in principle for $9.65 million to resolve the remaining claims in the ~~case after~~lawsuit, and this settlement was presented to the court ~~rules~~for approval on March 23, 2021. There were no class member objections to the ~~summary~~settlement following notice, and the court granted final approval of the settlement on November 3, 2021. We expect a final judgment ~~motions~~to be entered in the district court, and barring the filing of any appeals within the appeal period, the resolution of the case will be ~~resolved at a trial, currently scheduled to begin on March 1, 2021. The defendants believe the claims in this lawsuit are without merit.~~final.

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 September 30, ~~2020~~2021 and subject to this type of indemnification was ~~$249~~$279 billion. In the Company’s capacity as lending agent, cash and securities totaling ~~$265~~$299 billion were held as collateral for indemnified securities on loan at September 30, ~~2020.~~2021. The fair value of these indemnifications was not material at September 30, ~~2020.~~2021.

The table below presents detail of revenue for the three and nine months ended September 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				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	457	$	391	$	1,236	$	1,151	$	674	$	457	$	1,891	$	1,236
iShares ETFs		880		872		2,551		2,589
ETFs										1,212		880		3,436		2,551
Non-ETF Index		164		168		505		495		207		164		581		505
Equity subtotal		1,501		1,431		4,292		4,235		2,093		1,501		5,908		4,292
Fixed income:
Active		498		496		1,443		1,427		561		498		1,631		1,443
iShares ETFs		297		251		817		705
ETFs										304		297		893		817
Non-ETF Index		113		98		354		293		121		113		350		354
Fixed income subtotal		908		845		2,614		2,425		986		908		2,874		2,614
Multi-asset		289		288		852		852		369		289		1,041		852
Alternatives:
Illiquid alternatives		140		122		416		350		166		140		501		416
Liquid alternatives		132		105		361		301		163		132		460		361
Currency and commodities⁽¹⁾		51		30		118		78		55		51		163		118
Alternatives subtotal		323		257		895		729		384		323		1,124		895
Long-Term		3,021		2,821		8,653		8,241
Long-term										3,832		3,021		10,947		8,653
Cash management		204		159		593		447		111		204		345		593
Total base fees		3,225		2,980		9,246		8,688
Total investment advisory, administration fees and securities lending revenue										3,943		3,225		11,292		9,246
Investment advisory performance fees:
Equity		4		1		29		5		8		4		70		29
Fixed income		9		—		13		2		2		9		31		13
Multi-asset		10		1		13		7		—		10		17		13
Alternatives:
Illiquid alternatives		6		5		55		40		50		6		147		55
Liquid alternatives		503		114		575		157		285		503		549		575
Alternatives subtotal		509		119		630		197		335		509		696		630
Total performance fees		532		121		685		211		345		532		814		685
Technology services revenue		282		259		834		700		320		282		942		834
Distribution fees:
Retrocessions		188		166		519		491		294		188		796		519
12b-1 fees (US mutual fund distribution fees)		85		90		254		267		91		85		263		254
Other		15		14		44		41		16		15		51		44
Total distribution fees		288		270		817		799		401		288		1,110		817
Advisory and other revenue:
Advisory		14		21		48		62		13		14		37		48
Other		28		41		97		102		28		28		73		97
Total advisory and other revenue		42		62		145		164		41		42		110		145
Total revenue	$	4,369	$	3,692	$	11,727	$	10,562	$	5,050	$	4,369	$	14,268	$	11,727

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

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
By client type:
Retail	$	938	$	862	$	2,635	$	2,534	$	1,291	$	938	$	3,647	$	2,635
iShares ETFs		1,228		1,151		3,487		3,370
ETFs										1,571		1,228		4,493		3,487
Institutional:
Active		594		558		1,714		1,595		684		594		1,991		1,714
Index		261		250		817		742		286		261		816		817
Total institutional		855		808		2,531		2,337		970		855		2,807		2,531
Long-Term		3,021		2,821		8,653		8,241
Long-term										3,832		3,021		10,947		8,653
Cash management		204		159		593		447		111		204		345		593
Total	$	3,225	$	2,980	$	9,246	$	8,688	$	3,943	$	3,225	$	11,292	$	9,246

By investment style:
Active	$	1,511	$	1,401	$	4,292	$	4,073	$	1,928	$	1,511	$	5,509	$	4,292
Index and iShares ETFs		1,510		1,420		4,361		4,168
Long-Term		3,021		2,821		8,653		8,241
Index and ETFs										1,904		1,510		5,438		4,361
Long-term										3,832		3,021		10,947		8,653
Cash management		204		159		593		447		111		204		345		593
Total	$	3,225	$	2,980	$	9,246	$	8,688	$	3,943	$	3,225	$	11,292	$	9,246

Investment advisory and administration fees – remaining performance obligation

The tables below present estimated investment advisory and administration fees expected to be recognized in the future related to the unsatisfied portion of the performance obligations at September 30, ~~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 nine months ended September 30, ~~2020~~2021 and ~~2019:~~2020:

	Three Months Ended				Nine Months Ended						Three Months Ended					Nine Months Ended
	September 30,				September 30,						September 30,					September 30,
(in millions)	2020		2019		2020			2019			2021			2020		2021			2020
Beginning balance	$	418	$	365	$	483		$	293		$	1,132		$	418	$	584		$	483
Net increase (decrease) in unrealized allocations		29		17		4			116			277			29		904			4
Performance fee revenue recognized		—		—		(40	)		(27	)		(43	)		—		(122	)		(40	)
Other		—		6		—			6
Ending balance	$	447	$	388	$	447		$	388		$	1,366		$	447	$	1,366		$	447

The tables below present estimated technology services revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligations at September 30, ~~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 September 30, ~~2020,~~2021, the estimated fixed minimum fees for the remainder of the year approximated ~~$170~~$193 million. The term for these contracts, which are either in their initial or renewal period, ranges from one to five years.

The table below presents changes in the technology services deferred revenue liability for the three and nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, which is included in other liabilities on the condensed consolidated statements of financial condition:

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Beginning balance	$	108		$	100		$	116		$	70		$	107		$	108		$	123		$	116
Acquisition⁽¹⁾⁽²⁾		—			—			—			24
Additions ⁽²⁾		30			8			88			31
Additions ⁽¹⁾														28			30			72			88
Revenue recognized that was included in the beginning balance		(33	)		(21	)		(99	)		(38	)		(31	)		(33	)		(91	)		(99	)
Ending balance	$	105		$	87		$	105		$	87		$	104		$	105		$	104		$	105

Restricted stock and restricted stock units (“RSUs”) activity for the nine months ended September 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		948,904		$	532.60		875,480		$	747.49
Converted		(923,213	)	$	427.06		(745,474	)	$	506.78
Forfeited		(68,668	)	$	476.96		(54,874	)	$	571.05
September 30, 2020		2,193,475		$	488.44
September 30, 2021							2,215,062		$	583.93

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 nine months ended September 30, ~~2020~~2021 was ~~$505~~$654 million.

At September 30, ~~2020,~~2021, the intrinsic value of outstanding RSUs was ~~$1.2~~$1.9 billion, reflecting a closing stock price of ~~$563.55.~~$838.66.

At September 30, ~~2020,~~2021, total unrecognized stock-based compensation expense related to unvested RSUs was ~~$482~~$607 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~1.3~~1.2 years.

Performance-based RSU activity for the nine months ended September 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
September 30, 2020		700,217		$	494.51
Forfeited							(1,584	)	$	410.32
September 30, 2021							671,335		$	533.48

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 nine months ended September 30, ~~2020~~2021 was ~~$139~~$122 million.

At September 30, ~~2020,~~2021, the intrinsic value of outstanding performance-based RSUs was ~~$395~~$563 million, reflecting a closing stock price of ~~$563.55.~~$838.66.

At September 30, ~~2020,~~2021, total unrecognized stock-based compensation expense related to unvested performance-based awards was ~~$158~~$190 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~1.4~~1.2 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 nine months ended September 30, ~~2020~~2021 is summarized below.

Outstanding at	Shares Under Option			Weighted Average Exercise Price		Shares Under Option			Weighted Average Exercise Price
December 31, 2019		1,941,145		$	513.50
December 31, 2020							1,915,792		$	513.50
Forfeited		(25,353	)	$	513.50		(28,742	)	$	513.50
September 30, 2020		1,915,792		$	513.50
September 30, 2021							1,887,050		$	513.50

Vesting of the performance-based stock options is 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 September 30, ~~2020,~~2021, total unrecognized stock-based compensation expense related to unvested performance-based stock options was ~~$90~~$55 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of ~~3.2~~2.2 years. At September 30, 2021, the weighted-average remaining life of the awards is approximately 5.2 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 September 30, ~~2020,~~2021, the Company was required to maintain approximately ~~$2.2~~$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 nine months ended September 30, ~~2020~~2021 and ~~2019:~~2020:

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Beginning balance	$	(781	)	$	(664	)	$	(571	)	$	(691	)	$	(388	)	$	(781	)	$	(337	)	$	(571	)
Foreign currency translation adjustments⁽¹⁾		180			(120	)		(30	)		(93	)		(138	)		180			(189	)		(30	)
Ending balance	$	(601	)	$	(784	)	$	(601	)	$	(784	)	$	(526	)	$	(601	)	$	(526	)	$	(601	)

~~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 nine months ended September 30, ~~2020,~~2021, the Company repurchased ~~0.8~~1.1 million common shares ~~in open market transactions~~ under the Company’s existing share repurchase program for approximately ~~$412~~$900 million. At September 30, ~~2020,~~2021, there were ~~5.1~~3.9 million shares still authorized to be ~~repurchased. During~~repurchased under the ~~nine months ended September 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 nine months ended September 30, ~~2020 income tax expense~~2021 included discrete tax benefit of $241 million recognized in connection with the Charitable Contribution and $78 million of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of 2020.

~~Income tax expense for the three and nine months ended September 30, 2020 also included a $54~~$171 million noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the ~~United Kingdom~~UK increasing its corporate tax rate. Income tax expense for the nine months ended September 30, 2021, also reflected $42 million of discrete tax benefits primarily related to stock-based compensation awards that vested in the first quarter of 2021.

Income tax expense for the nine months ended September 30, 2020, included a discrete tax benefit of $241 million recognized in connection with the previously reported charitable contribution of BlackRock’s remaining 20% stake in PennyMac Financial Services, Inc. (the “Charitable Contribution”) and $78 million of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of 2020.

The three and nine months ended September 30, 2020 income tax expense also included the previously disclosed $54 million noncash net expense related to legislation enacted in the United Kingdom.

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

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

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions, except shares and per share data)	2020		2019		2020		2019		2021		2020		2021		2020
Net income attributable to BlackRock	$	1,364	$	1,119	$	3,384	$	3,175
Net income attributable to BlackRock, Inc.									$	1,681	$	1,364	$	4,258	$	3,384
Basic weighted-average shares outstanding		152,488,073		155,280,877		153,816,544		156,290,212		152,120,927		152,488,073		152,375,504		153,816,544
Dilutive effect of nonparticipating RSUs		1,254,191		1,166,510		1,143,268		1,095,744
Dilutive effect of:
Nonparticipating RSUs										1,474,725		1,254,191		1,354,405		1,143,268
Stock options										747,625		—		622,681		—
Total diluted weighted-average shares outstanding		153,742,264		156,447,387		154,959,812		157,385,956		154,343,277		153,742,264		154,352,590		154,959,812
Basic earnings per share	$	8.94	$	7.21	$	22.00	$	20.31	$	11.05	$	8.94	$	27.94	$	22.00
Diluted earnings per share	$	8.87	$	7.15	$	21.84	$	20.17	$	10.89	$	8.87	$	27.59	$	21.84

The amount of anti-dilutive RSUs was immaterial for the three and nine months ended September 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 nine months ended September 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 nine months ended September 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 nine months ended September 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				Nine Months Ended				Three Months Ended				Nine Months Ended
(in millions)	September 30,				September 30,				September 30,				September 30,
Revenue	2020		2019		2020		2019		2021		2020		2021		2020
Americas	$	2,631	$	2,445	$	7,581	$	7,051	$	3,127	$	2,631	$	9,095	$	7,581
Europe		1,574		1,080		3,661		3,018		1,706		1,574		4,533		3,661
Asia-Pacific		164		167		485		493		217		164		640		485
Total revenue	$	4,369	$	3,692	$	11,727	$	10,562	$	5,050	$	4,369	$	14,268	$	11,727

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 September 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)	September 30,		December 31,		September 30,		December 31,
Long-lived Assets	2020		2019		2021		2020
Americas	$	13,805	$	13,830	$	14,623	$	13,784
Europe		1,355		1,360		1,344		1,360
Asia-Pacific		87		87		96		88
Total long-lived assets	$	15,247	$	15,277	$	16,063	$	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.

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

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

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

This report, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission ~~(“SEC”)~~ reports. These risk factors and those identified elsewhere in this report, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) a pandemic or health crisis, including the COVID-19 pandemic, and its 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 ~~$7.81~~$9.5 trillion of AUM at September 30, ~~2020.~~2021. With approximately ~~16,600~~18,000 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 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 taking numerous measures to contain the spread and impact of COVID-19, such as travel bans and restrictions, quarantines, shelter in place orders, and limitations on business activity, including closures. These measures may continue to, among other things, severely restrict global economic activity, which can disrupt supply chains, lower asset valuations, significantly increase unemployment and underemployment levels, decrease liquidity in markets for certain securities and cause significant volatility and disruption in the financial markets.

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

~~The~~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.~~

~~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,~~cross-border marketing of funds, which may impede the Company’s growth or impact its financial performance.

On February ~~13, 2020, BlackRock announced~~1, 2021, the ~~establishment~~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 ~~BlackRock Foundation (the “Foundation”)~~acquisition of Aperio increased BlackRock’s SMA assets under management and expanded the ~~contribution~~breadth of ~~its remaining 20% stake in PennyMac Financial Services, Inc. (“PennyMac”) to~~ the ~~Foundation~~Company’s capabilities via tax-managed strategies across factors, broad market indexing, 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 sharesinvestor Environmental, Social, and a tax benefit of $241 million in the condensed consolidated statement of income for the nine months ended September 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.Governance preferences across all asset classes.

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions, except shares and per share data)	2020			2019			2020			2019			2021			2020			2021			2020
GAAP basis:
Total revenue	$	4,369		$	3,692		$	11,727		$	10,562		$	5,050		$	4,369		$	14,268		$	11,727
Total expense		2,612			2,190			7,880			6,549			3,115			2,612			8,857			7,880
Operating income	$	1,757		$	1,502		$	3,847		$	4,013		$	1,935		$	1,757		$	5,411		$	3,847
Operating margin		40.2	%		40.7	%		32.8	%		38.0	%		38.3	%		40.2	%		37.9	%		32.8	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests		71			(42	)		348			123			264			71			337			348
Income tax benefit (expense)		(464	)		(341	)		(811	)		(961	)
Income tax expense														(518	)		(464	)		(1,490	)		(811	)
Net income attributable to BlackRock	$	1,364		$	1,119		$	3,384		$	3,175		$	1,681		$	1,364		$	4,258		$	3,384
Diluted earnings per common share	$	8.87		$	7.15		$	21.84		$	20.17		$	10.89		$	8.87		$	27.59		$	21.84
Effective tax rate		25.4	%		23.3	%		19.3	%		23.2	%		23.6	%		25.4	%		25.9	%		19.3	%
As adjusted⁽¹⁾:
Operating income	$	1,757		$	1,502		$	4,436		$	4,013		$	1,946		$	1,757		$	5,422		$	4,436
Operating margin		47.0	%		46.0	%		44.3	%		43.7	%		45.8	%		47.0	%		45.1	%		44.3	%
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests	$	71		$	(42	)	$	226		$	123		$	264		$	71		$	337		$	226
Net income attributable to BlackRock	$	1,418		$	1,119		$	3,664		$	3,175		$	1,690		$	1,418		$	4,438		$	3,664
Diluted earnings per common share	$	9.22		$	7.15		$	23.64		$	20.17		$	10.95		$	9.22		$	28.75		$	23.64
Effective tax rate		22.5	%		23.3	%		21.4	%		23.2	%		23.6	%		22.5	%		22.9	%		21.4	%
Other:
Assets under management (end of period)	$	7,808,497		$	6,963,932		$	7,808,497		$	6,963,932
AUM (end of period)													$	9,463,662		$	7,808,497		$	9,463,662		$	7,808,497
Diluted weighted-average common shares outstanding⁽²⁾		153,742,264			156,447,387			154,959,812			157,385,956			154,343,277			153,742,264			154,352,590			154,959,812
Shares outstanding (end of period)		152,496,403			155,173,103			152,496,403			155,173,103			151,988,234			152,496,403			151,988,234			152,496,403
Book value per share⁽³⁾⁽²⁾	$	222.12		$	208.84		$	222.12		$	208.84		$	242.24		$	222.12		$	242.24		$	222.12
Cash dividends declared and paid per share	$	3.63		$	3.30		$	10.89		$	9.90		$	4.13		$	3.63		$	12.39		$	10.89

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

GAAP. Operating income of ~~$1,757~~$1,935 million increased ~~$255~~$178 million and operating margin of ~~40.2%~~38.3% decreased 50190 bps from the third quarter of ~~2019.~~2020. Operating income and operating margin reflected ~~higher~~market gains as well as strong organic growth and technology services revenue, offset by lower performance fees and ~~continued organic growth, partially offset~~higher expense, driven by higher general and administration expense, including higher transaction-related expense and product launch costs in the current quarter, higher employee compensation and benefits expense, and ~~the impact of $83 million of product~~higher direct fund expense. Product launch costs of $99 million in the third quarter of 2021 were primarily associated with the September ~~2020~~2021 close of the ~~$2 billion~~BlackRock ESG Capital Allocation Trust. Product launch costs of $83 million in the third quarter of 2020 were primarily associated with the BlackRock Capital Allocation Trust. Operating income and operating margin also reflected $11 million of noncash occupancy expense related to the lease of office space for the Company’s future headquarters located at 50 Hudson Yards in New York (“Lease cost – Hudson Yards”), which it expects to begin to occupy in late 2022 (and begin lease payments in May 2023).

Nonoperating income (expense) less net income (loss) attributable to noncontrolling interests (“NCI”) increased ~~$113~~$193 million from the third quarter of ~~2019,~~2020, primarily driven by non-cash gains related to our strategic minority investments in iCapital Network, Inc. (“iCapital”) and Scalable Capital Limited (“Scalable”) and higher mark-to-market gains on ~~un-hedged seed~~the Company’s private equity co-investment portfolio.

Earnings per diluted common share increased $2.02, or 23%, from the third quarter of 2020, reflecting higher operating and ~~co-investment capital.~~nonoperating income, and a lower effective tax rate in the current quarter.

As Adjusted. Operating income of $1,946 million increased $189 million and operating margin of 45.8% decreased 120 bps from the third quarter of 2020. Earnings perdiluted common share increased $1.73, or 19%, from the third quarter of 2020. The impact of the Lease cost – Hudson Yards described above has been excluded from as adjusted results for the third quarter of 2021. Income tax expense, as adjusted, for the third quarter of 2020 ~~included~~excluded a $54 million noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the ~~United Kingdom~~UK increasing its corporate tax ~~rate.~~

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

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

NINE MONTHS ENDED SEPTEMBER 30, ~~2020~~2021 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, ~~2019~~2020

GAAP. Operating income of ~~$3,847~~$5,411 million ~~decreased $166~~increased $1,564 million and operating margin of ~~32.8% decreased 520~~37.9% increased 510 bps from the nine months ended September 30, ~~2019.~~ 2020. Increases in operating income and operating margin reflected the impact of $589 million related to the previously reported charitable contribution of BlackRock’s remaining 20% stake in PennyMac Financial Services, Inc. (the “Charitable Contribution”) during the nine months ended September 30, 2020. Operating income and operating margin also reflected higher investment advisory and administration fees ~~and securities lending revenue~~ (collectively “base fees”), performance fees and technology services revenue, ~~which were more than~~partially offset by higher employee compensation and benefits expense, ~~including the impact of $589 million related to the Charitable Contribution~~higher volume-related expense and higher product launch costs ~~for the nine months ended September 30, 2020.~~in 2021.

Nonoperating income (expense) less net income (loss) attributable to NCI ~~increased $225~~decreased $11 million from the nine months ended September 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 ~~partially offset by lower mark-to-market gains on un-hedged seed capital investments for~~during the nine months ended September 30, ~~2020.~~2020, partially offset by the impact of non-cash gains related to iCapital and Scalable and higher mark-to-market gains on the Company’s private equity co-investment portfolio during the nine months ended September 30, 2021.

Income tax expense for the nine months ended September 30, ~~2020 included $78~~2021 reflected the $171 million ~~of discrete tax benefits, including benefits~~noncash net expense related to ~~stock-based compensation awards that vested~~the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the ~~first quarter of 2020.~~ UK increasing its corporate tax rate. Income tax expense for the nine months ended September 30, 2020 included a discrete tax benefit of $241 million recognized in connection with the Charitable Contribution and a $54 million noncash net expense ~~of approximately $54 million~~ related to the ~~legislation enacted~~revaluation of certain deferred tax assets and liabilities described above. Income tax expense for the nine months ended September 30, 2021 and 2020 also reflected $42 million and $78 million, respectively, of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the ~~United Kingdom described above.~~ first quarter of each year. See Income Tax Expense within Discussion of Financial Results for more ~~information~~.information.

Earnings per diluted common share increased ~~$1.67~~$5.75, or 26%, from the nine months ended September 30, ~~2019,~~2020, reflecting ~~higher revenue and nonoperating income, a lower effective tax rate and a lower diluted share count, partially offset by~~ the impact of the Charitable Contribution ~~and higher product launch costs for~~incurred in the nine months ended September 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 nine months ended September 30, 2021..

As Adjusted. Operating income of ~~$4,436~~$5,422 million increased ~~$423~~$986 million and operating margin of ~~44.3%~~45.1% increased 6080 bps from the nine months ended September 30, ~~2019.~~2020. Earnings per diluted common share increased ~~$3.47,~~$5.11, or ~~17%~~22%, from the nine months ended September 30, ~~2019,~~ 2020,primarily due to higher operating and nonoperating income, partially offset by a ~~lower~~higher effective tax rate ~~and a lower diluted share count~~ in the nine months ended September 30, ~~2020~~2021.. Income tax expense for the nine months ended September 30, 2021 and 2020 excluded the $171 million and $54 million, respectively, of noncash net expense described above. The financial impact related to the Lease cost – Hudson Yards and the Charitable Contribution ~~and legislation enacted in the UK increasing its tax rate~~ has been excluded from as adjusted ~~results.~~results for the nine months ended September 30, 2021 and 2020, respectively.

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						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Operating income, GAAP basis	$	1,757		$	1,502		$	3,847		$	4,013		$	1,935		$	1,757		$	5,411		$	3,847
Non-GAAP expense adjustment:
Lease costs - Hudson Yards														11			—			11			—
Charitable Contribution		—			—			589			—			—			—			—			589
Operating income, as adjusted		1,757			1,502			4,436			4,013			1,946			1,757			5,422			4,436
Product launch costs and commissions		83			—			170			61			99			83			284			170
Operating income used for operating margin measurement	$	1,840		$	1,502		$	4,606		$	4,074		$	2,045		$	1,840		$	5,706		$	4,606
Revenue, GAAP basis	$	4,369		$	3,692		$	11,727		$	10,562		$	5,050		$	4,369		$	14,268		$	11,727
Non-GAAP adjustments:
Distribution fees		(288	)		(270	)		(817	)		(799	)		(401	)		(288	)		(1,110	)		(817	)
Investment advisory fees		(168	)		(157	)		(513	)		(448	)		(184	)		(168	)		(503	)		(513	)
Revenue used for operating margin measurement	$	3,913		$	3,265		$	10,397		$	9,315		$	4,465		$	3,913		$	12,655		$	10,397
Operating margin, GAAP basis		40.2	%		40.7	%		32.8	%		38.0	%		38.3	%		40.2	%		37.9	%		32.8	%
Operating margin, as adjusted		47.0	%		46.0	%		44.3	%		43.7	%		45.8	%		47.0	%		45.1	%		44.3	%

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					Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,					September 30,				September 30,				September 30,
(in millions)	2020		2019			2020		2019		2021		2020		2021		2020
Nonoperating income (expense), GAAP basis	$	224	$	(42	)	$	510	$	140	$	336	$	224	$	652	$	510
Less: Net income (loss) attributable to NCI		153		—			162		17		72		153		315		162
Nonoperating income (expense), net of NCI		71		(42	)		348		123		264		71		337		348
Less: Gain related to the Charitable Contribution		—		—			122		—		—		—		—		122
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted	$	71	$	(42	)	$	226	$	123	$	264	$	71	$	337	$	226

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

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions, except per share data)	2020		2019		2020		2019		2021		2020		2021		2020
Net income attributable to BlackRock, Inc., GAAP basis	$	1,364	$	1,119	$	3,384	$	3,175	$	1,681	$	1,364	$	4,258	$	3,384
Non-GAAP adjustments:
Lease costs - Hudson Yards, net of tax										9		—		9		—
Charitable Contribution, net of tax		—		—		226		—		—		—		—		226
Income tax matters		54		—		54		—		—		54		171		54
Net income attributable to BlackRock, Inc., as adjusted	$	1,418	$	1,119	$	3,664	$	3,175	$	1,690	$	1,418	$	4,438	$	3,664
Diluted weighted-average common shares outstanding (4)		153.7		156.4		155.0		157.4
Diluted earnings per common share, GAAP basis (4)	$	8.87	$	7.15	$	21.84	$	20.17
Diluted earnings per common share, as adjusted (4)	$	9.22	$	7.15	$	23.64	$	20.17
Diluted weighted-average common shares outstanding										154.3		153.7		154.4		155.0
Diluted earnings per common share, GAAP basis									$	10.89	$	8.87	$	27.59	$	21.84
Diluted earnings per common share, as adjusted									$	10.95	$	9.22	$	28.75	$	23.64

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 Lease cost – Hudson Yards and Charitable Contribution.

The nine months ended September 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			Nine Months			Twelve Months
	AUM								Net inflows (outflows)																Ended			Ended			Ended
	September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,		Nine Months Ended September 30,			Twelve Months Ended September 30,			September 30,		June 30,		December 31,		September 30,		September 30,			September 30,			September 30,
(in millions)	2020		2020		2019		2019		2020		2020			2020			2021		2021		2020		2020		2021			2021			2021
Retail	$	746,264	$	695,154	$	703,297	$	668,118	$	19,552	$	34,236		$	42,246		$	1,000,627	$	995,483	$	845,917	$	746,264	$	22,672		$	80,572		$	115,889
iShares ETFs		2,321,335		2,162,597		2,240,065		2,046,818		41,332		106,133			181,335
ETFs																		3,038,751		3,031,505		2,669,007		2,321,335		57,954			201,591			280,344
Institutional:
Active		1,427,122		1,341,610		1,338,670		1,283,064		29,619		30,270			45,567			1,638,545		1,624,049		1,524,462		1,427,122		25,558			85,558			86,913
Index		2,641,408		2,482,336		2,599,882		2,453,181		7,101		(29,488	)		(28,961	)		3,063,692		3,097,073		2,948,683		2,641,408		(8,212	)		(77,405	)		(76,633	)
Institutional subtotal		4,068,530		3,823,946		3,938,552		3,736,245		36,720		782			16,606			4,702,237		4,721,122		4,473,145		4,068,530		17,346			8,153			10,280
Long-term		7,136,129		6,681,697		6,881,914		6,451,181		97,604		141,151			240,187			8,741,615		8,748,110		7,988,069		7,136,129		97,972			290,316			406,513
Cash management		652,002		619,351		545,949		510,984		27,766		104,405			134,204			712,015		727,603		666,252		652,002		(12,398	)		50,132			59,076
Advisory⁽¹⁾		20,366		16,901		1,770		1,767		3,331		18,350			18,353			10,032		20,280		22,359		20,366		(10,260	)		(12,530	)		(10,738	)
Total	$	7,808,497	$	7,317,949	$	7,429,633	$	6,963,932	$	128,701	$	263,906		$	392,744		$	9,463,662	$	9,495,993	$	8,676,680	$	7,808,497	$	75,314		$	327,918		$	454,851

AUM and Net Inflows (Outflows) by Investment Style and Product Type	AUM and Net Inflows (Outflows) by Investment Style and Product Type																AUM and Net Inflows (Outflows) by Investment Style and Product Type
	AUM								Net inflows (outflows)								AUM								Net inflows (outflows)
	September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,		Nine Months Ended September 30,			Twelve Months Ended September 30,											Three Months			Nine Months			Twelve Months
																									Ended			Ended			Ended
																	September 30,		June 30,		December 31,		September 30,		September 30,			September 30,			September 30,
(in millions)	2020		2020		2019		2019		2020		2020			2020			2021		2021		2020		2020		2021			2021			2021
Active	$	2,072,673	$	1,943,828	$	1,947,222	$	1,865,437	$	47,059	$	56,675		$	77,242		$	2,463,867	$	2,446,632	$	2,250,887	$	2,072,673	$	44,528		$	166,233		$	197,293
Index and iShares ETFs		5,063,456		4,737,869		4,934,692		4,585,744		50,545		84,476			162,945
Index and ETFs																		6,277,748		6,301,478		5,737,182		5,063,456		53,444			124,083			209,220
Long-term		7,136,129		6,681,697		6,881,914		6,451,181		97,604		141,151			240,187			8,741,615		8,748,110		7,988,069		7,136,129		97,972			290,316			406,513
Cash management		652,002		619,351		545,949		510,984		27,766		104,405			134,204			712,015		727,603		666,252		652,002		(12,398	)		50,132			59,076
Advisory⁽¹⁾		20,366		16,901		1,770		1,767		3,331		18,350			18,353			10,032		20,280		22,359		20,366		(10,260	)		(12,530	)		(10,738	)
Total	$	7,808,497	$	7,317,949	$	7,429,633	$	6,963,932	$	128,701	$	263,906		$	392,744		$	9,463,662	$	9,495,993	$	8,676,680	$	7,808,497	$	75,314		$	327,918		$	454,851

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			Nine Months			Twelve Months
	AUM								Net inflows (outflows)																Ended			Ended			Ended
	September 30,		June 30,		December 31,		September 30,		Three Months Ended September 30,		Nine Months Ended September 30,			Twelve Months Ended September 30,			September 30,		June 30,		December 31,		September 30,		September 30,			September 30,			September 30,
(in millions)	2020		2020		2019		2019		2020		2020			2020			2021		2021		2020		2020		2021			2021			2021
Equity	$	3,784,118	$	3,519,225	$	3,820,329	$	3,488,503	$	2,168	$	916		$	39,517		$	4,998,410	$	5,034,391	$	4,419,806	$	3,784,118	$	33,168		$	56,576		$	104,653
Fixed income		2,531,465		2,411,092		2,315,392		2,267,431		70,362		95,257			133,531			2,713,899		2,712,165		2,674,488		2,531,465		27,315			129,445			192,149
Multi-asset		598,246		551,362		568,121		527,721		13,980		13,616			28,572			773,158		748,770		658,733		598,246		30,935			80,824			80,422
Alternatives:
Illiquid alternatives		79,723		76,607		75,349		70,516		2,202		6,354			10,420			98,321		95,961		85,770		79,723		2,743			12,315			16,844
Liquid alternatives		69,255		63,120		59,048		55,544		2,553		5,509			7,804			85,052		81,560		73,218		69,255		3,782			9,455			10,492
Currency and commodities⁽²⁾		73,322		60,291		43,675		41,466		6,339		19,499			20,343			72,775		75,263		76,054		73,322		29			1,701			1,953
Alternatives subtotal		222,300		200,018		178,072		167,526		11,094		31,362			38,567			256,148		252,784		235,042		222,300		6,554			23,471			29,289
Long-term		7,136,129		6,681,697		6,881,914		6,451,181		97,604		141,151			240,187			8,741,615		8,748,110		7,988,069		7,136,129		97,972			290,316			406,513
Cash management		652,002		619,351		545,949		510,984		27,766		104,405			134,204			712,015		727,603		666,252		652,002		(12,398	)		50,132			59,076
Advisory⁽¹⁾		20,366		16,901		1,770		1,767		3,331		18,350			18,353
Advisory																		10,032		20,280		22,359		20,366		(10,260	)		(12,530	)		(10,738	)
Total	$	7,808,497	$	7,317,949	$	7,429,633	$	6,963,932	$	128,701	$	263,906		$	392,744		$	9,463,662	$	9,495,993	$	8,676,680	$	7,808,497	$	75,314		$	327,918		$	454,851

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

																	Net
	June 30,		Net inflows			Market			FX		September 30,		Average		June 30,		inflows			Market			FX			September 30,		Average
(in millions)	2020		(outflows)			change			impact⁽¹⁾		2020		AUM⁽²⁾		2021		(outflows)			change			impact⁽¹⁾			2021		AUM⁽²⁾
Retail:
Equity	$	254,104	$	7,007		$	15,217		$	3,099	$	279,427	$	272,429	$	446,327	$	9,952		$	(7,823	)	$	(2,719	)	$	445,737	$	452,433
Fixed income		301,160		8,321			4,185			2,342		316,008		311,193		359,480		4,524			(3,156	)		(1,687	)		359,161		361,730
Multi-asset		111,934		1,777			5,618			379		119,708		117,376		147,228		5,395			(1,332	)		(338	)		150,953		150,409
Alternatives		27,956		2,447			523			195		31,121		29,759		42,448		2,801			(318	)		(155	)		44,776		43,690
Retail subtotal		695,154		19,552			25,543			6,015		746,264		730,757		995,483		22,672			(12,629	)		(4,899	)		1,000,627		1,008,262
iShares ETFs:
ETFs:
Equity		1,470,314		14,851			96,101			5,583		1,586,849		1,560,887		2,257,828		34,987			(36,247	)		(5,719	)		2,250,849		2,279,480
Fixed income		634,098		19,690			5,206			4,005		662,999		657,594		700,009		22,489			(3,494	)		(2,408	)		716,596		711,729
Multi-asset		5,074		154			192			10		5,430		5,297		7,663		593			(70	)		(36	)		8,150		7,954
Alternatives		53,111		6,637			6,254			55		66,057		63,687		66,005		(115	)		(2,688	)		(46	)		63,156		65,863
iShares ETFs subtotal		2,162,597		41,332			107,753			9,653		2,321,335		2,287,465
ETFs subtotal																3,031,505		57,954			(42,499	)		(8,209	)		3,038,751		3,065,026
Institutional:
Active:
Equity		133,932		4,001			9,709			1,618		149,260		145,197		184,174		1,930			(2,410	)		(1,462	)		182,232		185,208
Fixed income		666,693		12,011			9,122			5,235		693,061		684,720		716,671		(5,716	)		806			(3,063	)		708,698		718,139
Multi-asset		426,553		11,354			20,017			6,318		464,242		451,984		584,582		25,477			920			(5,682	)		605,297		604,848
Alternatives		114,432		2,253			2,481			1,393		120,559		118,016		138,622		3,867			560			(731	)		142,318		140,894
Active subtotal		1,341,610		29,619			41,329			14,564		1,427,122		1,399,917		1,624,049		25,558			(124	)		(10,938	)		1,638,545		1,649,089
Index:
Equity		1,660,875		(23,691	)		115,515			15,883		1,768,582		1,748,988		2,146,062		(13,701	)		(114	)		(12,655	)		2,119,592		2,158,274
Fixed income		809,141		30,340			(2,967	)		22,883		859,397		846,244		936,005		6,018			139			(12,718	)		929,444		947,359
Multi-asset		7,801		695			285			85		8,866		8,245		9,297		(530	)		19			(28	)		8,758		9,095
Alternatives		4,519		(243	)		211			76		4,563		4,637		5,709		1			222			(34	)		5,898		5,796
Index subtotal		2,482,336		7,101			113,044			38,927		2,641,408		2,608,114		3,097,073		(8,212	)		266			(25,435	)		3,063,692		3,120,524
Institutional subtotal		3,823,946		36,720			154,373			53,491		4,068,530		4,008,031		4,721,122		17,346			142			(36,373	)		4,702,237		4,769,613
Long-term		6,681,697		97,604			287,669			69,159		7,136,129		7,026,253		8,748,110		97,972			(54,986	)		(49,481	)		8,741,615		8,842,901
Cash management		619,351		27,766			274			4,611		652,002		632,869		727,603		(12,398	)		(784	)		(2,406	)		712,015		722,103
Advisory⁽³⁾		16,901		3,331			124			10		20,366		19,025		20,280		(10,260	)		23			(11	)		10,032		13,749
Total	$	7,317,949	$	128,701		$	288,067		$	73,780	$	7,808,497	$	7,678,147	$	9,495,993	$	75,314		$	(55,747	)	$	(51,898	)	$	9,463,662	$	9,578,753

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

																	Net
	June 30,		Net inflows			Market			FX		September 30,		Average		June 30,		inflows			Market			FX			September 30,		Average
(in millions)	2020		(outflows)			change			impact⁽¹⁾		2020		AUM⁽²⁾		2021		(outflows)			change			impact⁽¹⁾			2021		AUM⁽²⁾
Active:
Equity	$	312,809	$	10,063		$	21,603		$	3,156	$	347,631	$	338,125	$	479,240	$	9,651		$	(10,660	)	$	(2,999	)	$	475,232	$	483,441
Fixed income		950,143		19,166			13,135			6,968		989,412		976,832		1,054,517		(2,662	)		(2,217	)		(4,341	)		1,045,297		1,057,426
Multi-asset		538,489		13,131			25,635			6,697		583,952		569,360		731,806		30,870			(411	)		(6,020	)		756,245		755,251
Alternatives		142,387		4,699			3,003			1,589		151,678		147,775		181,069		6,669			241			(886	)		187,093		184,583
Active subtotal		1,943,828		47,059			63,376			18,410		2,072,673		2,032,092		2,446,632		44,528			(13,047	)		(14,246	)		2,463,867		2,480,701
Index and iShares ETFs:
iShares ETFs:
Index and ETFs:
ETFs:
Equity		1,470,314		14,851			96,101			5,583		1,586,849		1,560,887		2,257,828		34,987			(36,247	)		(5,719	)		2,250,849		2,279,480
Fixed income		634,098		19,690			5,206			4,005		662,999		657,594		700,009		22,489			(3,494	)		(2,408	)		716,596		711,729
Multi-asset		5,074		154			192			10		5,430		5,297		7,663		593			(70	)		(36	)		8,150		7,954
Alternatives		53,111		6,637			6,254			55		66,057		63,687		66,005		(115	)		(2,688	)		(46	)		63,156		65,863
iShares ETFs subtotal		2,162,597		41,332			107,753			9,653		2,321,335		2,287,465
ETFs subtotal																3,031,505		57,954			(42,499	)		(8,209	)		3,038,751		3,065,026
Non-ETF Index:
Equity		1,736,102		(22,746	)		118,838			17,444		1,849,638		1,828,489		2,297,323		(11,470	)		313			(13,837	)		2,272,329		2,312,474
Fixed income		826,851		31,506			(2,795	)		23,492		879,054		865,325		957,639		7,488			6			(13,127	)		952,006		969,802
Multi-asset		7,799		695			285			85		8,864		8,245		9,301		(528	)		18			(28	)		8,763		9,101
Alternatives		4,520		(242	)		212			75		4,565		4,637		5,710		-			223			(34	)		5,899		5,797
Non-ETF Index subtotal		2,575,272		9,213			116,540			41,096		2,742,121		2,706,696		3,269,973		(4,510	)		560			(27,026	)		3,238,997		3,297,174
Index & iShares ETFs subtotal		4,737,869		50,545			224,293			50,749		5,063,456		4,994,161
Index & ETFs subtotal																6,301,478		53,444			(41,939	)		(35,235	)		6,277,748		6,362,200
Long-term		6,681,697		97,604			287,669			69,159		7,136,129		7,026,253		8,748,110		97,972			(54,986	)		(49,481	)		8,741,615		8,842,901
Cash management		619,351		27,766			274			4,611		652,002		632,869		727,603		(12,398	)		(784	)		(2,406	)		712,015		722,103
Advisory⁽³⁾		16,901		3,331			124			10		20,366		19,025		20,280		(10,260	)		23			(11	)		10,032		13,749
Total	$	7,317,949	$	128,701		$	288,067		$	73,780	$	7,808,497	$	7,678,147	$	9,495,993	$	75,314		$	(55,747	)	$	(51,898	)	$	9,463,662	$	9,578,753

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

															Net
	June 30,		Net inflows		Market		FX		September 30,		Average		June 30,		inflows			Market			FX			September 30,		Average
(in millions)	2020		(outflows)		change		impact⁽¹⁾		2020		AUM⁽²⁾		2021		(outflows)			change			impact⁽¹⁾			2021		AUM⁽²⁾
Equity	$	3,519,225	$	2,168	$	236,542	$	26,183	$	3,784,118	$	3,727,501	$	5,034,391	$	33,168		$	(46,594	)	$	(22,555	)	$	4,998,410	$	5,075,395
Fixed income		2,411,092		70,362		15,546		34,465		2,531,465		2,499,751		2,712,165		27,315			(5,705	)		(19,876	)		2,713,899		2,738,957
Multi-asset		551,362		13,980		26,112		6,792		598,246		582,902		748,770		30,935			(463	)		(6,084	)		773,158		772,306
Alternatives:
Illiquid alternatives		76,607		2,202		104		810		79,723		78,413		95,961		2,743			195			(578	)		98,321		97,516
Liquid alternatives		63,120		2,553		2,851		731		69,255		66,642		81,560		3,782			9			(299	)		85,052		83,431
Currency and commodities⁽⁴⁾		60,291		6,339		6,514		178		73,322		71,044		75,263		29			(2,428	)		(89	)		72,775		75,296
Alternatives subtotal		200,018		11,094		9,469		1,719		222,300		216,099		252,784		6,554			(2,224	)		(966	)		256,148		256,243
Long-term		6,681,697		97,604		287,669		69,159		7,136,129		7,026,253		8,748,110		97,972			(54,986	)		(49,481	)		8,741,615		8,842,901
Cash management		619,351		27,766		274		4,611		652,002		632,869		727,603		(12,398	)		(784	)		(2,406	)		712,015		722,103
Advisory⁽³⁾		16,901		3,331		124		10		20,366		19,025		20,280		(10,260	)		23			(11	)		10,032		13,749
Total	$	7,317,949	$	128,701	$	288,067	$	73,780	$	7,808,497	$	7,678,147	$	9,495,993	$	75,314		$	(55,747	)	$	(51,898	)	$	9,463,662	$	9,578,753

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

~~Net market appreciation of $288.1 billion was primarily driven by global equity market appreciation.~~

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

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

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

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

December 31,

Net
inflows

Market

FX

September 30,

Average

(in millions)
2019

(outflows)

change

impact⁽¹⁾

2020

AUM⁽²⁾

Retail:

Equity
$
252,413

$
23,244

$
4,038

$
(268
)

$
279,427

$
252,221

Fixed income

305,265

8,564

3,208

(1,029
)

316,008

303,363

Multi-asset

120,439

(3,126
)

2,569

(174
)

119,708

114,401

Alternatives

25,180

5,554

317

70

31,121

27,502

Retail subtotal

703,297

34,236

10,132

(1,401
)

746,264

697,487

iShares ETFs:

Equity

1,632,972

11,050

(57,319
)

146

1,586,849

1,504,589

Fixed income

565,790

75,359

19,246

2,604

662,999

611,117

Multi-asset

5,210

230

1

(11
)

5,430

5,104

Alternatives

36,093

19,494

10,428

42

66,057

50,403

iShares ETFs subtotal

2,240,065

106,133

(27,644
)

2,781

2,321,335

2,171,213

Institutional:

Active:

Equity

141,118

4,708

3,369

65

149,260

135,354

Fixed income

651,368

3,082

36,857

1,754

693,061

663,749

Multi-asset

434,233

16,211

11,737

2,061

464,242

431,055

Alternatives

111,951

6,269

1,989

350

120,559

114,414

Active subtotal

1,338,670

30,270

53,952

4,230

1,427,122

1,344,572

Index:

Equity

1,793,826

(38,086
)

10,629

2,213

1,768,582

1,674,238

Fixed income

792,969

8,252

58,782

(606
)

859,397

819,510

Multi-asset

8,239

301

237

89

8,866

8,104

Alternatives

4,848

45

(330
)

-

4,563

4,487

Index subtotal

2,599,882

(29,488
)

69,318

1,696

2,641,408

2,506,339

Institutional subtotal

3,938,552

782

123,270

5,926

4,068,530

3,850,911

Long-term

6,881,914

141,151

105,758

7,306

7,136,129

6,719,611

Cash management

545,949

104,405

156

1,492

652,002

602,703

Advisory⁽³⁾

1,770

18,350

266

(20
)

20,366

10,679

Total
$
7,429,633

$
263,906

$
106,180

$
8,778

$
7,808,497

$
7,332,993

AUM remained flat at $9.5 trillion at September 30, 2021, as positive net inflows were more than offset by net market depreciation and the impact of foreign exchange movements.

Long-term net inflows of $98 billion were comprised of net inflows of $58 billion, $23 billion and $17 billion into ETFs, retail and institutional, respectively. Net flows in long-term products are described below.

Cash management AUM decreased to $712 billion, driven by net outflows of $12 billion.

Net market depreciation of $56 billion was primarily driven by global equity market depreciation.

AUM decreased $52 billion due to the negative impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the British pound and the Euro.

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

	December 31,		Net inflows					Market			FX			September 30,		Average
(in millions)	2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Retail:
Equity	$	338,434	$	34,153		$	41,324	$	35,459		$	(3,633	)	$	445,737	$	417,230
Fixed income		340,468		26,011			—		(4,457	)		(2,861	)		359,161		354,337
Multi-asset		132,624		10,269			—		8,505			(445	)		150,953		143,345
Alternatives		34,391		10,139			—		468			(222	)		44,776		39,976
Retail subtotal		845,917		80,572			41,324		39,975			(7,161	)		1,000,627		954,888
ETFs:
Equity		1,905,101		152,785			—		202,397			(9,434	)		2,250,849		2,142,649
Fixed income		690,033		45,804			—		(14,826	)		(4,415	)		716,596		694,541
Multi-asset		6,268		1,539			—		349			(6	)		8,150		7,279
Alternatives		67,605		1,463			—		(5,837	)		(75	)		63,156		66,272
ETFs subtotal		2,669,007		201,591			—		182,083			(13,930	)		3,038,751		2,910,741
Institutional:
Active:
Equity		169,522		(1,561	)		—		16,555			(2,284	)		182,232		179,247
Fixed income		716,269		5,606			—		(7,030	)		(6,147	)		708,698		710,668
Multi-asset		511,242		69,106			—		33,655			(8,706	)		605,297		556,569
Alternatives		127,429		12,407			—		3,682			(1,200	)		142,318		135,656
Active subtotal		1,524,462		85,558			—		46,862			(18,337	)		1,638,545		1,582,140
Index:
Equity		2,006,749		(128,801	)		—		264,183			(22,539	)		2,119,592		2,101,940
Fixed income		927,718		52,024			—		(25,447	)		(24,851	)		929,444		933,212
Multi-asset		8,599		(90	)		—		517			(268	)		8,758		8,919
Alternatives		5,617		(538	)		—		908			(89	)		5,898		5,680
Index subtotal		2,948,683		(77,405	)		—		240,161			(47,747	)		3,063,692		3,049,751
Institutional subtotal		4,473,145		8,153			—		287,023			(66,084	)		4,702,237		4,631,891
Long-term		7,988,069		290,316			41,324		509,081			(87,175	)	��	8,741,615		8,497,520
Cash management		666,252		50,132			—		(996	)		(3,373	)		712,015		704,580
Advisory⁽⁴⁾		22,359		(12,530	)		—		200			3			10,032		18,838
Total	$	8,676,680	$	327,918		$	41,324	$	508,285		$	(90,545	)	$	9,463,662	$	9,220,938

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

	December 31,		Net inflows			Market			FX			September 30,		Average		December 31,		Net inflows					Market			FX			September 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	$	21,616		$	9,531		$	339		$	347,631	$	311,834	$	410,189	$	34,854		$	—	$	34,944		$	(4,755	)	$	475,232	$	457,458
Fixed income		939,275		10,151			39,061			925			989,412		949,178		1,035,015		29,461			—		(10,534	)		(8,645	)		1,045,297		1,043,135
Multi-asset		554,672		13,086			14,307			1,887			583,952		545,455		643,864		79,374			—		42,158			(9,151	)		756,245		699,909
Alternatives		137,130		11,822			2,306			420			151,678		141,915		161,819		22,544			—		4,153			(1,423	)		187,093		175,631
Active subtotal		1,947,222		56,675			65,205			3,571			2,072,673		1,948,382		2,250,887		166,233			—		70,721			(23,974	)		2,463,867		2,376,133
Index and iShares ETFs:
iShares ETFs:
Index and ETFs:
ETFs:
Equity		1,632,972		11,050			(57,319	)		146			1,586,849		1,504,589		1,905,101		152,785			—		202,397			(9,434	)		2,250,849		2,142,649
Fixed income		565,790		75,359			19,246			2,604			662,999		611,117		690,033		45,804			—		(14,826	)		(4,415	)		716,596		694,541
Multi-asset		5,210		230			1			(11	)		5,430		5,104		6,268		1,539			—		349			(6	)		8,150		7,279
Alternatives		36,093		19,494			10,428			42			66,057		50,403		67,605		1,463			—		(5,837	)		(75	)		63,156		66,272
iShares ETFs subtotal		2,240,065		106,133			(27,644	)		2,781			2,321,335		2,171,213
Non-ETF Index
ETFs subtotal																	2,669,007		201,591			—		182,083			(13,930	)		3,038,751		2,910,741
Non-ETF Index:
Equity		1,871,212		(31,750	)		8,505			1,671			1,849,638		1,749,979		2,104,516		(131,063	)		41,324		281,253			(23,701	)		2,272,329		2,240,959
Fixed income		810,327		9,747			59,786			(806	)		879,054		837,444		949,440		54,180			—		(26,400	)		(25,214	)		952,006		955,082
Multi-asset		8,239		300			236			89			8,864		8,105		8,601		(89	)		—		519			(268	)		8,763		8,924
Alternatives		4,849		46			(330	)		-			4,565		4,488		5,618		(536	)		—		905			(88	)		5,899		5,681
Non-ETF Index subtotal		2,694,627		(21,657	)		68,197			954			2,742,121		2,600,016		3,068,175		(77,508	)		41,324		256,277			(49,271	)		3,238,997		3,210,646
Index & iShares ETFs subtotal		4,934,692		84,476			40,553			3,735			5,063,456		4,771,229
Index & ETFs subtotal																	5,737,182		124,083			41,324		438,360			(63,201	)		6,277,748		6,121,387
Long-term		6,881,914		141,151			105,758			7,306			7,136,129		6,719,611		7,988,069		290,316			41,324		509,081			(87,175	)		8,741,615		8,497,520
Cash management		545,949		104,405			156			1,492			652,002		602,703		666,252		50,132			—		(996	)		(3,373	)		712,015		704,580
Advisory⁽³⁾⁽⁴⁾		1,770		18,350			266			(20	)		20,366		10,679		22,359		(12,530	)		—		200			3			10,032		18,838
Total	$	7,429,633	$	263,906		$	106,180		$	8,778		$	7,808,497	$	7,332,993	$	8,676,680	$	327,918		$	41,324	$	508,285		$	(90,545	)	$	9,463,662	$	9,220,938

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

	December 31,		Net inflows		Market			FX			September 30,		Average		December 31,		Net inflows					Market			FX			September 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	$	916	$	(39,283	)	$	2,156		$	3,784,118	$	3,566,402	$	4,419,806	$	56,576		$	41,324	$	518,594		$	(37,890	)	$	4,998,410	$	4,841,066
Fixed income		2,315,392		95,257		118,093			2,723			2,531,465		2,397,739		2,674,488		129,445			—		(51,760	)		(38,274	)		2,713,899		2,692,758
Multi-asset		568,121		13,616		14,544			1,965			598,246		558,664		658,733		80,824			—		43,026			(9,425	)		773,158		716,112
Alternatives:
Illiquid alternatives		75,349		6,354		(2,025	)		45			79,723		76,697		85,770		12,315			—		1,148			(912	)		98,321		93,102
Liquid alternatives		59,048		5,509		4,387			311			69,255		62,528		73,218		9,455			—		2,745			(366	)		85,052		79,234
Currency and commodities⁽⁴⁾⁽⁵⁾		43,675		19,499		10,042			106			73,322		57,581		76,054		1,701			—		(4,672	)		(308	)		72,775		75,248
Alternatives subtotal		178,072		31,362		12,404			462			222,300		196,806		235,042		23,471			—		(779	)		(1,586	)		256,148		247,584
Long-term		6,881,914		141,151		105,758			7,306			7,136,129		6,719,611		7,988,069		290,316			41,324		509,081			(87,175	)		8,741,615		8,497,520
Cash management		545,949		104,405		156			1,492			652,002		602,703		666,252		50,132			—		(996	)		(3,373	)		712,015		704,580
Advisory⁽³⁾⁽⁴⁾		1,770		18,350		266			(20	)		20,366		10,679		22,359		(12,530	)		—		200			3			10,032		18,838
Total	$	7,429,633	$	263,906	$	106,180		$	8,778		$	7,808,497	$	7,332,993	$	8,676,680	$	327,918		$	41,324	$	508,285		$	(90,545	)	$	9,463,662	$	9,220,938

AUM increased ~~$378.9~~$787 billion to ~~$7.81~~$9.5 trillion at September 30, ~~2020,~~ 2021, driven by net market appreciation, positive net inflows, and ~~net market appreciation.~~

~~Net market appreciation of $106.2 billion was primarily driven by fixed income market appreciation,~~AUM acquired in the Aperio Transaction, partially offset by ~~deprecation in equity markets year to date.~~the impact of foreign exchange movements.

Long-term net inflows of ~~$141.2~~$290 billion ~~included $106.1 billion, $34.2 billion and $30.3 billion~~were comprised of net inflows of $202 billion, $81 billion and $8 billion into~~iShares~~ ETFs, retail and institutional, ~~active products, respectively, partially offset by net outflows $29.4 billion from institutional index clients.~~respectively. Net flows in long-term products are described below.

Cash management AUM increased to ~~$652~~$712 billion, driven by net inflows of ~~$104.4~~$50 billion.

Net market appreciation of $508 billion was driven primarily by global equity market appreciation.

AUM ~~increased $8.8~~decreased $91 billion due to the ~~positive~~negative impact of foreign exchange movements, primarily ~~due to the weakening of the US dollar against the Euro, partially offset by~~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 September 30, ~~2020.~~2021.

	September 30,		Net inflows			Market			FX			September 30,		Average		September 30,		Net inflows					Market			FX			September 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾		2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Retail:
Equity	$	231,645	$	25,180		$	19,098		$	3,504		$	279,427	$	248,948	$	279,427	$	50,248		$	41,324	$	73,968		$	770		$	445,737	$	387,825
Fixed income		297,186		13,556			3,959			1,307			316,008		302,419		316,008		40,231			—		2,060			862			359,161		347,052
Multi-asset		116,040		(3,714	)		7,030			352			119,708		115,092		119,708		12,914			—		18,198			133			150,953		138,466
Alternatives		23,247		7,224			405			245			31,121		26,667		31,121		12,496			—		1,081			78			44,776		38,183
Retail subtotal		668,118		42,246			30,492			5,408			746,264		693,126		746,264		115,889			41,324		95,307			1,843			1,000,627		911,526
iShares ETFs:
ETFs:
Equity		1,468,711		60,122			52,720			5,296			1,586,849		1,507,986		1,586,849		218,042			—		446,634			(676	)		2,250,849		2,028,304
Fixed income		539,260		100,322			17,597			5,820			662,999		596,496		662,999		59,339			—		(6,063	)		321			716,596		689,132
Multi-asset		4,659		610			165			(4	)		5,430		5,038		5,430		1,955			—		736			29			8,150		6,895
Alternatives		34,188		20,281			11,510			78			66,057		46,774		66,057		1,008			—		(3,935	)		26			63,156		65,933
iShares ETFs subtotal		2,046,818		181,335			81,992			11,190			2,321,335		2,156,294
ETFs subtotal																	2,321,335		280,344			—		437,372			(300	)		3,038,751		2,790,264
Institutional:
Active:
Equity		128,723		5,232			13,331			1,974			149,260		134,610		149,260		(4,379	)		—		37,231			120			182,232		173,263
Fixed income		649,883		(2,066	)		38,293			6,951			693,061		660,994		693,061		9,122			—		5,825			690			708,698		707,349
Multi-asset		398,937		31,429			26,224			7,652			464,242		425,765		464,242		66,535			—		74,282			238			605,297		536,848
Alternatives		105,521		10,972			2,293			1,773			120,559		112,942		120,559		15,635			—		5,555			569			142,318		132,368
Active subtotal		1,283,064		45,567			80,141			18,350			1,427,122		1,334,311		1,427,122		86,913			—		122,893			1,617			1,638,545		1,549,828
Index:
Equity		1,659,424		(51,017	)		140,271			19,904			1,768,582		1,681,295		1,768,582		(159,258	)		—		508,028			2,240			2,119,592		2,034,356
Fixed income		781,102		21,719			30,216			26,360			859,397		812,141		859,397		83,457			—		(16,605	)		3,195			929,444		919,677
Multi-asset		8,085		247			441			93			8,866		8,095		8,866		(982	)		—		1,029			(155	)		8,758		8,804
Alternatives		4,570		90			(179	)		82			4,563		4,526		4,563		150			—		1,186			(1	)		5,898		5,512
Index subtotal		2,453,181		(28,961	)		170,749			46,439			2,641,408		2,506,057		2,641,408		(76,633	)		—		493,638			5,279			3,063,692		2,968,349
Institutional subtotal		3,736,245		16,606			250,890			64,789			4,068,530		3,840,368		4,068,530		10,280			—		616,531			6,896			4,702,237		4,518,177
Long-term		6,451,181		240,187			363,374			81,387			7,136,129		6,689,788		7,136,129		406,513			41,324		1,149,210			8,439			8,741,615		8,219,967
Cash management		510,984		134,204			1,164			5,650			652,002		583,512		652,002		59,076			—		(1,215	)		2,152			712,015		695,260
Advisory⁽³⁾⁽⁴⁾		1,767		18,353			252			(6	)		20,366		8,618		20,366		(10,738	)		—		377			27			10,032		19,358
Total	$	6,963,932	$	392,744		$	364,790		$	87,031		$	7,808,497	$	7,281,918	$	7,808,497	$	454,851		$	41,324	$	1,148,372		$	10,618		$	9,463,662	$	8,934,585

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

	September 30,		Net inflows			Market			FX			September 30,		Average		September 30,		Net inflows					Market			FX			September 30,		Average
(in millions)	2019		(outflows)			change			impact⁽¹⁾			2020		AUM⁽²⁾		2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Active:
Equity	$	290,519	$	22,302		$	30,974		$	3,836		$	347,631	$	308,605	$	347,631	$	43,476		$	—	$	84,336		$	(211	)	$	475,232	$	434,610
Fixed income		931,179		9,025			41,606			7,602			989,412		945,830		989,412		46,244			—		8,559			1,082			1,045,297		1,032,919
Multi-asset		514,973		27,720			33,255			8,004			583,952		540,857		583,952		79,443			—		92,479			371			756,245		675,310
Alternatives		128,766		18,195			2,699			2,018			151,678		139,608		151,678		28,130			—		6,638			647			187,093		170,550
Active subtotal		1,865,437		77,242			108,534			21,460			2,072,673		1,934,900		2,072,673		197,293			—		192,012			1,889			2,463,867		2,313,389
Index and iShares ETFs:
iShares ETFs:
Index and ETFs:
ETFs:
Equity		1,468,711		60,122			52,720			5,296			1,586,849		1,507,986		1,586,849		218,042			—		446,634			(676	)		2,250,849		2,028,304
Fixed income		539,260		100,322			17,597			5,820			662,999		596,496		662,999		59,339			—		(6,063	)		321			716,596		689,132
Multi-asset		4,659		610			165			(4	)		5,430		5,038		5,430		1,955			—		736			29			8,150		6,895
Alternatives		34,188		20,281			11,510			78			66,057		46,774		66,057		1,008			—		(3,935	)		26			63,156		65,933
iShares ETFs subtotal		2,046,818		181,335			81,992			11,190			2,321,335		2,156,294
ETFs subtotal																	2,321,335		280,344			—		437,372			(300	)		3,038,751		2,790,264
Non-ETF Index:
Equity		1,729,273		(42,907	)		141,726			21,546			1,849,638		1,756,248		1,849,638		(156,865	)		41,324		534,891			3,341			2,272,329		2,160,834
Fixed income		796,992		24,184			30,862			27,016			879,054		829,724		879,054		86,566			—		(17,279	)		3,665			952,006		941,159
Multi-asset		8,089		242			440			93			8,864		8,095		8,864		(976	)		—		1,030			(155	)		8,763		8,808
Alternatives		4,572		91			(180	)		82			4,565		4,527		4,565		151			—		1,184			(1	)		5,899		5,513
Non-ETF Index subtotal		2,538,926		(18,390	)		172,848			48,737			2,742,121		2,598,594		2,742,121		(71,124	)		41,324		519,826			6,850			3,238,997		3,116,314
Index & iShares ETFs subtotal		4,585,744		162,945			254,840			59,927			5,063,456		4,754,888
Index & ETFs subtotal																	5,063,456		209,220			41,324		957,198			6,550			6,277,748		5,906,578
Long-term		6,451,181		240,187			363,374			81,387			7,136,129		6,689,788		7,136,129		406,513			41,324		1,149,210			8,439			8,741,615		8,219,967
Cash management		510,984		134,204			1,164			5,650			652,002		583,512		652,002		59,076			—		(1,215	)		2,152			712,015		695,260
Advisory⁽³⁾⁽⁴⁾		1,767		18,353			252			(6	)		20,366		8,618		20,366		(10,738	)		—		377			27			10,032		19,358
Total	$	6,963,932	$	392,744		$	364,790		$	87,031		$	7,808,497	$	7,281,918	$	7,808,497	$	454,851		$	41,324	$	1,148,372		$	10,618		$	9,463,662	$	8,934,585

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

	September 30,		Net inflows		Market			FX			September 30,		Average		September 30,		Net inflows					Market			FX			September 30,		Average
(in millions)	2019		(outflows)		change			impact⁽¹⁾			2020		AUM⁽²⁾		2020		(outflows)			Acquisition⁽¹⁾		change			impact⁽²⁾			2021		AUM⁽³⁾
Equity	$	3,488,503	$	39,517	$	225,420		$	30,678		$	3,784,118	$	3,572,839	$	3,784,118	$	104,653		$	41,324	$	1,065,861		$	2,454		$	4,998,410	$	4,623,748
Fixed income		2,267,431		133,531		90,065			40,438			2,531,465		2,372,050		2,531,465		192,149			—		(14,783	)		5,068			2,713,899		2,663,210
Multi-asset		527,721		28,572		33,860			8,093			598,246		553,990		598,246		80,422			—		94,245			245			773,158		691,013
Alternatives:
Illiquid alternatives		70,516		10,420		(2,177	)		964			79,723		75,583		79,723		16,844			—		1,660			94			98,321		90,319
Liquid alternatives		55,544		7,804		4,904			1,003			69,255		61,331		69,255		10,492			—		4,653			652			85,052		77,069
Currency and commodities⁽⁴⁾⁽⁵⁾		41,466		20,343		11,302			211			73,322		53,995		73,322		1,953			—		(2,426	)		(74	)		72,775		74,608
Alternatives subtotal		167,526		38,567		14,029			2,178			222,300		190,909		222,300		29,289			—		3,887			672			256,148		241,996
Long-term		6,451,181		240,187		363,374			81,387			7,136,129		6,689,788		7,136,129		406,513			41,324		1,149,210			8,439			8,741,615		8,219,967
Cash management		510,984		134,204		1,164			5,650			652,002		583,512		652,002		59,076			—		(1,215	)		2,152			712,015		695,260
Advisory⁽³⁾⁽⁴⁾		1,767		18,353		252			(6	)		20,366		8,618		20,366		(10,738	)		—		377			27			10,032		19,358
Total	$	6,963,932	$	392,744	$	364,790		$	87,031		$	7,808,497	$	7,281,918	$	7,808,497	$	454,851		$	41,324	$	1,148,372		$	10,618		$	9,463,662	$	8,934,585

AUM increased ~~$844.6 billion~~$1.7 trillion to ~~$7.81~~$9.5 trillion at September 30, ~~2020,~~ 2021, driven by ~~positive net inflows,~~ net market appreciation, ~~and~~positive net inflows, the positive impact of foreign exchange ~~movements.~~

~~Net market appreciation of $364.8 billion was driven by global equity~~movements and ~~fixed income market appreciation.~~AUM acquired in the Aperio Transaction.

Long-term net inflows of ~~$240.2~~$407 billion were comprised of net inflows of ~~$181.3~~$280 billion, ~~$45.6~~$116 billion and ~~$42.2~~$10 billion from ~~iShares~~ ETFs, retail and institutional, ~~active and retail clients, respectively, partially offset by net outflows of $28.9 billion from institutional index products.~~respectively. Net flows in long-term products are described below.

Cash management AUM increased to ~~$652~~$712 billion, ~~due to~~driven by net inflows of ~~$134.2~~$59 billion.

Net market appreciation of $1.1 trillion was driven by global equity market appreciation.

AUM increased ~~$87~~$11 billion due to the positive impact of foreign exchange movements, primarily resulting from the weakening of the US dollar, largely against the ~~Euro~~British pound and the ~~British pound.~~

Canadian dollar, partially offset by the strengthening of the US dollar against the Japanese yen and the Euro.

The Company’s results of operations for the three and nine months ended September 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 nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 and includes the product type mix of base fees and securities lending revenue and performance fees.

	Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
(in millions)	2020		2019		2020		2019		2021		2020		2021		2020
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	457	$	391	$	1,236	$	1,151	$	674	$	457	$	1,891	$	1,236
iShares ETFs		880		872		2,551		2,589
ETFs										1,212		880		3,436		2,551
Non-ETF Index		164		168		505		495		207		164		581		505
Equity subtotal		1,501		1,431		4,292		4,235		2,093		1,501		5,908		4,292
Fixed income:
Active		498		496		1,443		1,427		561		498		1,631		1,443
iShares ETFs		297		251		817		705
ETFs										304		297		893		817
Non-ETF Index		113		98		354		293		121		113		350		354
Fixed income subtotal		908		845		2,614		2,425		986		908		2,874		2,614
Multi-asset		289		288		852		852		369		289		1,041		852
Alternatives:
Illiquid alternatives		140		122		416		350		166		140		501		416
Liquid alternatives		132		105		361		301		163		132		460		361
Currency and commodities⁽¹⁾		51		30		118		78		55		51		163		118
Alternatives subtotal		323		257		895		729		384		323		1,124		895
Long-Term		3,021		2,821		8,653		8,241
Long-term										3,832		3,021		10,947		8,653
Cash management		204		159		593		447		111		204		345		593
Total base fees		3,225		2,980		9,246		8,688
Total investment advisory, administration fees and securities lending revenue										3,943		3,225		11,292		9,246
Investment advisory performance fees:
Equity		4		1		29		5		8		4		70		29
Fixed income		9		—		13		2		2		9		31		13
Multi-asset		10		1		13		7		—		10		17		13
Alternatives:
Illiquid alternatives		6		5		55		40		50		6		147		55
Liquid alternatives		503		114		575		157		285		503		549		575
Alternatives subtotal		509		119		630		197		335		509		696		630
Total performance fees		532		121		685		211		345		532		814		685
Technology services revenue		282		259		834		700		320		282		942		834
Distribution fees:
Retrocessions		188		166		519		491		294		188		796		519
12b-1 fees (US mutual fund distribution fees)		85		90		254		267		91		85		263		254
Other		15		14		44		41		16		15		51		44
Total distribution fees		288		270		817		799		401		288		1,110		817
Advisory and other revenue:
Advisory		14		21		48		62		13		14		37		48
Other		28		41		97		102		28		28		73		97
Total advisory and other revenue		42		62		145		164		41		42		110		145
Total revenue	$	4,369	$	3,692	$	11,727	$	10,562	$	5,050	$	4,369	$	14,268	$	11,727

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 September 30,												Nine Months Ended September 30,												Three Months Ended September 30,												Nine Months Ended September 30,
	Mix of Base Fees						Mix of Average AUM by 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		15	%		13	%		4	%		4	%		14	%		13	%		4	%		4	%		18	%		15	%		5	%		4	%		19	%		14	%		5	%		4	%
iShares ETFs		27	%		29	%		20	%		21	%		28	%		30	%		21	%		21	%
ETFs																										31	%		27	%		24	%		20	%		30	%		28	%		23	%		21	%
Non-ETF Index		5	%		6	%		24	%		25	%		5	%		6	%		23	%		26	%		5	%		5	%		23	%		24	%		5	%		5	%		24	%		23	%
Equity subtotal		47	%		48	%		48	%		50	%		47	%		49	%		48	%		51	%		54	%		47	%		52	%		48	%		54	%		47	%		52	%		48	%
Fixed income:
Active		15	%		17	%		13	%		14	%		15	%		17	%		13	%		13	%		13	%		15	%		12	%		13	%		13	%		15	%		11	%		13	%
iShares ETFs		9	%		8	%		9	%		8	%		9	%		8	%		8	%		7	%
ETFs																										8	%		9	%		7	%		9	%		8	%		9	%		8	%		8	%
Non-ETF Index		4	%		3	%		11	%		11	%		4	%		3	%		12	%		11	%		3	%		4	%		10	%		11	%		3	%		4	%		10	%		12	%
Fixed income subtotal		28	%		28	%		33	%		33	%		28	%		28	%		33	%		31	%		24	%		28	%		29	%		33	%		24	%		28	%		29	%		33	%
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	%		4	%		1	%		1	%		4	%		3	%		1	%		1	%		4	%		4	%		1	%		1	%		4	%		4	%		1	%		1	%
Currency and commodities⁽³⁾		2	%		1	%		1	%		-	%		1	%		1	%		1	%		1	%		1	%		2	%		1	%		1	%		1	%		1	%		1	%		1	%
Alternatives subtotal		10	%		9	%		3	%		2	%		10	%		8	%		3	%		3	%		10	%		10	%		3	%		3	%		10	%		10	%		3	%		3	%
Long-term		94	%		95	%		92	%		93	%		94	%		95	%		92	%		93	%		97	%		94	%		92	%		92	%		97	%		94	%		92	%		92	%
Cash management		6	%		5	%		8	%		7	%		6	%		5	%		8	%		7	%		3	%		6	%		8	%		8	%		3	%		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 September 30, ~~2020~~2021 Compared with Three Months Ended September 30, ~~2019~~2020

Revenue increased ~~$677~~$681 million, or ~~18%~~16%, from the three months ended September 30, ~~2019,~~2020, reflecting ~~higher~~market gains as well as strong organic growth and 13% growth in technology services revenue, partially offset bylower performance ~~fees and continued organic growth.~~fees.

Investment advisory, administration fees and securities lending revenue of ~~$3,225~~$3,943 million increased ~~$245~~$718 million from ~~$2,980~~$3,225 million for the three months ended September 30, ~~2019,~~2020, primarily driven by ~~organic growth,~~ the positive impact of 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. Securities lending revenue of ~~$153~~$152 million ~~in the current quarter compared with $150~~decreased from $153 million in the third quarter of ~~2019.~~2020, primarily reflecting lower asset spreads, partially offset by higher average balances of securities on loan.

Investment advisory performance fees of ~~$532~~$345 million ~~increased $411~~decreased $187 million from ~~$121~~$532 million for the three months ended September 30, ~~2019,~~2020, primarily reflecting ~~strong performance~~lower revenue from liquid alternative products, including lower fees from a single hedge fund strategy with an annual performance measurement period that ends in the third ~~quarter.~~quarter, partially offset by higher revenue from illiquid alternative products.

Technology services revenue of ~~$282~~$320 million increased ~~$23~~$38 million from ~~$259~~$282 million for the three months ended September 30, ~~2019,~~2020, primarily reflecting higher revenue from Aladdin.

Nine Months Ended September 30, 2021 Compared with Nine Months Ended September 30, 2020

Revenue increased $2,541 million, or 22%, from the nine months ended September 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 $11,292 million increased $2,046 million from $9,246 million for the nine months ended September 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 $419 million decreased $102 million from $521 million for the nine months ended September 30, 2020, primarily reflecting lower spreads, partially offset by higher average balances of securities on loan.

Investment advisory performance fees of $814 million increased $129 million from $685 million for the nine months ended September 30, 2020, primarily reflecting higher revenue from illiquid alternative and long-only products.

Technology services revenue of $942 million increased $108 million from $834 million for the nine months ended September 30, 2020, primarily reflecting higher revenue from Aladdin.

Advisory and other revenue of ~~$42~~$110 million decreased ~~$20~~$35 million from $62 million for the three months ended September 30, 2019, primarily reflecting the impact of the previously discussed Charitable Contribution of BlackRock’s remaining 20% stake in PennyMac in the first quarter of 2020.

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

~~Revenue increased $1,165 million, or 11%, from the nine months ended September 30, 2019, reflecting higher base fees, higher performance fees and higher technology services revenue.~~

~~Investment advisory, administration fees and securities lending revenue~~ ~~of $9,246 million increased $558 million from $8,688~~$145 million for the nine months ended September 30, ~~2019,~~2020, primarily driven by organic growth, the positive impact of market beta and foreign exchange movements on average AUM, partially offset by strategic pricing changes to certain products. Securities lending revenue of $521 million increased $73 million from $448 million for the nine months ended September 30, 2019, primarily reflecting ~~higher asset spreads and average balances of securities on loan.~~

~~Investment advisory performance fees~~ of $685 million increased $474 million from $211 million for the nine months ended September 30, 2019, primarily reflecting higher revenue from alternative products including strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.

~~Technology services revenue~~ ~~of $834 million increased $134 million from $700 million for the nine months ended September 30, 2019, primarily reflecting higher revenue from~~ ~~Aladdin~~ ~~and~~ the impact of the ~~eFront acquisition, which closed in May of 2019.~~Charitable Contribution, lower earnings from a strategic minority investment and lower fees from advisory assignments.

	Three Months Ended					Nine Months Ended				Three Months Ended				Nine Months Ended
	September 30,					September 30,				September 30,				September 30,
(in millions)	2020		2019			2020		2019		2021		2020		2021		2020
Expense:
Employee compensation and benefits	$	1,411	$	1,111		$	3,700	$	3,258	$	1,527	$	1,411	$	4,484	$	3,700
Distribution and servicing costs:
Retrocessions		188		166			519		491		294		188		796		519
12b-1 costs		83		89			247		265		89		83		257		247
Other		185		172			564		491		202		185		560		564
Total distribution and servicing costs		456		427			1,330		1,247		585		456		1,613		1,330
Direct fund expense		257		239			780		733		354		257		994		780
General and administration:
General and administration expense:
Marketing and promotional		48		79			156		241		54		48		142		156
Occupancy and office related		81		75			239		224		91		81		250		239
Portfolio services		73		64			203		191		93		73		267		203
Technology		93		70			273		206		140		93		373		273
Professional services		36		38			121		115		42		36		122		121
Communications		14		10			40		29		11		14		33		40
Foreign exchange remeasurement		1		(2	)		7		18		1		1		3		7
Contingent consideration fair value adjustments		—		(1	)		23		18		29		—		33		23
Product launch costs		80		—			164		59		96		80		274		164
Charitable Contribution		—		—			589		—		—		—		—		589
Other general and administration		35		52			176		142		54		35		160		176
Total general and administration expense		461		385			1,991		1,243		611		461		1,657		1,991
Amortization of intangible assets		27		28			79		68		38		27		109		79
Total expense	$	2,612	$	2,190		$	7,880	$	6,549	$	3,115	$	2,612	$	8,857	$	7,880

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

Expense increased ~~$422~~$503 million from the three months ended September 30, ~~2019,~~2020, largely driven by higher general and administration expense, higher employee compensation and benefits expense and higher direct fund expense in the third quarter of 2021.

Employee compensation and benefits expense increased $116 million from the three months ended September 30, 2020, primarily reflecting higher base compensation, driven by previously announced base salary increases and higher headcount, and higher deferred compensation, reflecting the impact of additional grants associated with prior-year compensation.

Direct fund expense increased $97 million from the three months ended September 30, 2020, primarily reflecting higher average AUM.

General and administration expense increased $150 million from the three months ended September 30, 2020, reflecting higher technology and portfolio services expense. The increase also reflected higher product launch costs, primarily associated with the previously discussed BlackRock ESG Capital Allocation Trust, higher contingent consideration fair value adjustments, and $11 million of previously discussed noncash Lease cost – Hudson Yards.

Amortization of intangible assets expense increased $11 million from the three months ended September 30, 2020, primarily reflecting amortization of intangible assets related to the Aperio Transaction.

Nine Months Ended September 30, 2021 Compared with Nine Months Ended September 30, 2020

Expense increased $977 million from the nine months ended September 30, 2020, largely driven by higher employee compensation and benefits expense and higher volume-related expense, partially offset by lower general and administration expense, ~~including~~reflecting the impact of the Charitable Contribution recorded in the nine months ended September 30, 2020. Expense also reflected higher product launch costs induring the ~~current quarter.~~nine months ended September 30, 2021.

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

~~General and administration expense~~ increased $76 million from the three months ended September 30, 2019, reflecting $80 million of previously described product launch costs. The increase also reflected higher technology expense, including certain costs related to COVID-19, and lower marketing and promotional expense.

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

~~Expense increased $1,331~~$784 million from the nine months ended September 30, ~~2019,~~2020, primarily reflecting higher base and incentive compensation, driven by higher ~~general and administration expense, including the impact of the Charitable Contribution~~operating income and higher ~~product launch costs, higher employee compensation and benefits expense,~~performance fees, and higher ~~volume-related expense for the nine months ended September 30, 2020.~~deferred compensation.

~~Employee compensation and benefits~~Direct fund expense increased ~~$442~~$214 million from the nine months ended September 30, ~~2019,~~2020, primarily ~~reflecting higher base and incentive compensation, driven in part by higher performance fees and operating income.~~

~~Direct fund expense~~ ~~increased $47 million from the nine months ended September 30, 2019,~~ reflecting higher average AUM.

General and administration expense ~~increased $748~~decreased $334 million from the nine months ended September 30, ~~2019, primarily~~2020, largely driven by ~~$589 million of expense related to~~ the Charitable Contribution recorded in the nine months ended September 30, 2020. General and administration expense also reflected higher expense during the nine months ended September 30, 2021 related to product launch costs, technology and portfolio services expense, higher ~~technology expense, including certain costs related to COVID-19, costs related to certain legal matters, including Aviron Capital, LLC.,~~contingent consideration fair value adjustments, and ~~a $12 million impairment of a fixed asset. The increase was~~Lease cost – Hudson Yards described above, partially offset by lower marketing and promotional expense and ~~lower foreign exchange remeasurement expense for~~the impact of costs related to certain legal matters incurred during the nine months ended September 30, 2020.

Amortization of intangible assets expense increased $30 million from the nine months ended September 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 nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 was as follows:

		Three Months Ended							Nine Months Ended					Three Months Ended				Nine Months Ended
		September 30,							September 30,					September 30,				September 30,
(in millions)	(in millions)	2020			2019				2020			2019		2021		2020		2021		2020
Nonoperating income (expense), GAAP basis⁽¹⁾	$		224	$		(42	)	$		510	$		140	$	336	$	224	$	652	$	510
Less: Net income (loss) attributable to NCI			153			—				162			17		72		153		315		162
Nonoperating income (expense), net of NCI⁽²⁾	$		71	$		(42	)	$		348	$		123	$	264	$	71	$	337	$	348

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
(in millions)	2020			2019			2020			2019			2021			2020			2021			2020
Net gain (loss) on investments⁽¹⁾⁽²⁾
Private equity	$	18		$	6		$	8		$	38		$	124		$	18		$	212		$	8
Real assets		6			12			11			22			4			6			10			11
Other alternatives⁽³⁾		14			3			10			18			13			14			43			10
Other investments⁽⁴⁾		55			—			35			104			(8	)		55			37			35
Subtotal		93			21			64			182			133			93			302			64
Gain related to the Charitable Contribution		—			—			122			—			—			—			—			122
Other gains (losses)⁽⁵⁾		23			(28	)		279			25			165			23			149			279
Total net gain (loss) on investments⁽¹⁾⁽²⁾		116			(7	)		465			207			298			116			451			465
Interest and dividend income		9			19			34			68			14			9			41			34
Interest expense		(54	)		(54	)		(151	)		(152	)		(48	)		(54	)		(155	)		(151	)
Net interest expense		(45	)		(35	)		(117	)		(84	)		(34	)		(45	)		(114	)		(117	)
Nonoperating income (expense)⁽¹⁾	$	71		$	(42	)	$	348		$	123		$	264		$	71		$	337		$	348

	GAAP												As Adjusted⁽¹⁾												GAAP												As Adjusted⁽¹⁾
	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,						September 30,						September 30,						September 30,						September 30,
(in millions)	2020			2019			2020			2019			2020			2019			2020			2019			2021			2020			2021			2020			2021			2020			2021			2020
Operating income⁽¹⁾	$	1,757		$	1,502		$	3,847		$	4,013		$	1,757		$	1,502		$	4,436		$	4,013		$	1,935		$	1,757		$	5,411		$	3,847		$	1,946		$	1,757		$	5,422		$	4,436
Total nonoperating income (expense)⁽¹⁾⁽²⁾	$	71		$	(42	)	$	348		$	123		$	71		$	(42	)	$	226		$	123		$	264		$	71		$	337		$	348		$	264		$	71		$	337		$	226
Income before income taxes	$	1,828		$	1,460		$	4,195		$	4,136		$	1,828		$	1,460		$	4,662		$	4,136		$	2,199		$	1,828		$	5,748		$	4,195		$	2,210		$	1,828		$	5,759		$	4,662
Income tax expense	$	464		$	341		$	811		$	961		$	410		$	341		$	998		$	961		$	518		$	464		$	1,490		$	811		$	520		$	410		$	1,321		$	998
Effective tax rate		25.4	%		23.3	%		19.3	%		23.2	%		22.5	%		23.3	%		21.4	%		23.2	%		23.6	%		25.4	%		25.9	%		19.3	%		23.6	%		22.5	%		22.9	%		21.4	%

2021. Income tax expense for the nine months ended September 30, 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 for the nine months ended September 30, 2021, also reflected $42 million of discrete tax benefits primarily related to stock-based compensation awards that vested in the first quarter of 2021.

The as adjusted effective tax rate of 22.9% for the nine months ended September 30, 2021, excluded the impact of $171 million noncash deferred tax revaluation 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 nine months ended September 30, 2020, ~~income tax expense~~ included a discrete tax benefit of $241 million recognized in connection with the Charitable Contribution ~~which was excluded from as adjusted results,~~ and $78 million of discrete tax benefits, including benefits related to stock-based compensation awards that vested in the first quarter of 2020.

The three and nine months ended September 30, 2020 income tax expense also included the previously described $54 million noncash net expense related to ~~the~~ legislation enacted in the ~~United Kingdom, which was excluded from~~UK.

The as adjusted ~~results.~~effective tax rate of 22.5% and 21.4% for the three and nine months ended September 30, 2020 excluded the impact of the $54 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.

The as adjusted effective tax rate of 21.4% for the nine months ended September 30, 2020 also excluded the $241 million discrete tax benefit in connection with the Charitable Contribution due to 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.

	September 30, 2020								September 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	$	6,507	$	—	$	208	$	6,299	$	7,361	$	—	$	265	$	7,096
Accounts receivable		3,706		—		—		3,706		4,015		—		—		4,015
Investments		6,307		—		2,233		4,074		7,101		—		1,549		5,552
Separate account assets and collateral held under securities lending agreements		111,131		111,131		—		—		110,861		110,861		—		—
Operating lease right-of-use assets										1,798						1,798
Other assets⁽³⁾		4,623		—		90		4,533		4,664		—		96		4,568
Subtotal		132,274		111,131		2,531		18,612		135,800		110,861		1,910		23,029
Goodwill and intangible assets, net		32,844		—		—		32,844		33,836		—		—		33,836
Total assets	$	165,118	$	111,131	$	2,531	$	51,456	$	169,636	$	110,861	$	1,910	$	56,865
Liabilities
Accrued compensation and benefits	$	1,847	$	—	$	—	$	1,847	$	2,343	$	—	$	—	$	2,343
Accounts payable and accrued liabilities		988		—		—		988		1,402		—		—		1,402
Borrowings		7,227		—		—		7,227		6,474		—		—		6,474
Separate account liabilities and collateral liabilities under securities lending agreements		111,131		111,131		—		—		110,861		110,861		—		—
Deferred income tax liabilities⁽⁴⁾		3,742		—		—		3,742		3,659		—		—		3,659
Operating lease liabilities										1,946						1,946
Other liabilities		4,167		—		388		3,779		4,585		—		435		4,150
Total liabilities		129,102		111,131		388		17,583		131,270		110,861		435		19,974
Equity
Total stockholders’ equity		33,873		—		—		33,873
Total BlackRock, Inc. stockholders’ equity										36,817		—		—		36,817
Noncontrolling interests		2,143		—		2,143		—		1,549		—		1,475		74
Total equity		36,016		—		2,143		33,873		38,366		—		1,475		36,891
Total liabilities and equity	$	165,118	$	111,131	$	2,531	$	51,456	$	169,636	$	110,861	$	1,910	$	56,865

The following discussion summarizes the significant changes in assets and liabilities on a GAAP basis. Please see the condensed consolidated statements of financial condition as of September 30, ~~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 September 30, ~~2020~~2021 and December 31, ~~2019~~2020 included ~~$208~~$265 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 nine months ended September 30, ~~2020)~~2021).

Accounts receivable at September 30, ~~2020~~2021 increased ~~$527~~$480 million from December 31, ~~2019,~~2020, primarily due to higher ~~performance fee, technology services~~base and ~~base~~performance fee receivables. Investments, including the impact of ~~consolidated sponsored investment products,~~CIPs, increased ~~$818~~$182 million from December 31, ~~2019~~2020 (for more information see Investments herein). Goodwill and intangible assets ~~decreased $87~~increased $1,022 million from December 31, ~~2019,~~2020, primarily due to the Aperio Transaction, partially offset by amortization of intangible assets. Operating lease right-of-use (“ROU”) assets at September 30, 2021 increased $1.1 billion from December 31, 2020 (substantially offset by an increase in operating lease liabilities), primarily related to the previously described lease of office space for the Company’s future headquarters located at 50 Hudson Yards in New York. While the Company expects to begin to occupy the new office space in late 2022 (and begin cash lease payments in May 2023), the Company is required to record an operating ROU asset and related operating lease liability from August 2021 because it obtained access to the building to begin its tenant improvements. Other assets (including ~~operating lease right-of-use assets and~~ property and equipment) increased ~~$739~~$1,433 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~~an increase in ~~certain corporate~~current taxes receivable and an increase in strategic minority ~~investments, primarily related to the previously discussed Charitable Contribution of BlackRock’s remaining 20% stake in PennyMac.~~investments.

Liabilities. Accrued compensation and benefits at September 30, ~~2020~~2021 decreased ~~$210~~$156 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 September 30, ~~2020 decreased $179~~2021 increased $374 million from December 31, ~~2019,~~2020, primarily due to ~~lower current income taxes payables. Other~~increased accruals. Operating lease liabilities at September 30, 2021 increased ~~$697~~$1,191 million from December 31, ~~2019,~~2020 (substantially offset by an increase in ROU assets), primarily related to the lease of office space for the Company’s future headquarters described above. Other liabilities increased $1,648 million from December 31, 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, including deferred carried interest liabilities. Net deferred income tax liabilities at September 30, ~~2020 increased $8~~2021 decreased $14 million from December 31, ~~2019,~~2020, primarily due to the effects of temporary differences associated with ~~stock-based compensation and~~capitalized costs, partially offset by the Aperio Transaction, revaluation of certain deferred income tax liabilities due to tax legislation enacted in the ~~United Kingdom, partially offset by the effects of temporary differences associated with~~UK and investment ~~income and the income tax benefit related to the Charitable Contribution.~~income.

The Company’s investments were ~~$6,307~~$7,101 million and ~~$5,489~~$6,919 million at September 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.

	September 30,			December 31,			September 30,			December 31,
(in millions)	2020			2019			2021			2020
Investments, GAAP	$	6,307		$	5,489		$	7,101		$	6,919
Investments held by consolidated sponsored investment products		(4,517	)		(3,784	)
Net interest in consolidated sponsored investment products⁽¹⁾		2,284			2,290
Investments held by CIPs								(4,574	)		(4,976	)
Net interest in CIPs⁽¹⁾								3,025			2,490
Investments, as adjusted		4,074			3,995			5,552			4,433
Federal Reserve Bank stock		(94	)		(93	)		(95	)		(94	)
Deferred compensation investments		(5	)		(23	)		—			(6	)
Hedged investments		(735	)		(644	)		(801	)		(833	)
Carried interest		(483	)		(528	)		(1,446	)		(627	)
Total “economic” investment exposure⁽²⁾	$	2,757		$	2,707		$	3,210		$	2,873

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

	September 30,		December 31,		September 30,		December 31,
(in millions)	2020		2019		2021		2020
Equity⁽¹⁾	$	715	$	609	$	1,051	$	835
Fixed income⁽²⁾		1,018		1,008		758		958
Multi-asset⁽³⁾		136		178		80		127
Alternatives:						—
Private equity		382		355		746		418
Real assets		262		322		256		251
Other alternatives⁽⁴⁾		244		235		319		284
Alternatives subtotal		888		912		1,321		953
Total “economic” investment exposure	$	2,757	$	2,707	$	3,210	$	2,873

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

(in millions)	Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2021
Investments, as adjusted, beginning balance	$	3,995		$	4,433
Purchases/capital contributions		883			1,096
Sales/maturities		(664	)		(970	)
Distributions⁽¹⁾		(170	)		(147	)
Market appreciation(depreciation)/earnings from equity method investments		60			376
Carried interest capital allocations/(distributions)		(45	)		819
Other⁽²⁾		15			(55	)
Investments, as adjusted, ending balance	$	4,074		$	5,552

⁽¹⁾ Amount includes distributions representing return of capital and return on investments.

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		1,764			(1,287	)		3,051			3,027			(963	)		3,990
Net cash provided by/(used in) investing activities		(177	)		(42	)		(135	)		(1,579	)		(59	)		(1,520	)
Net cash provided by/(used in) financing activities		106			1,396			(1,290	)		(2,695	)		1,081			(3,776	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(15	)		—			(15	)		(56	)		—			(56	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		1,678			67			1,611			(1,303	)		59			(1,362	)
Cash, cash equivalents and restricted cash, September 30, 2020	$	6,524		$	208		$	6,316
Cash, cash equivalents and restricted cash, September 30, 2021										$	7,378		$	265		$	7,113

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 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 nine months ended September 30, ~~2020~~2021 were ~~$135~~$1.5 billion and primarily reflected $1.1 billion of cash outflows related to the Aperio Transaction, $285 million of net investment purchases and ~~reflected $140~~$215 million of purchases of property and equipment, ~~and $119 million of net investment purchases,~~ partially offset by ~~$124~~$77 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 nine months ended September 30, ~~2020~~2021 were ~~$1.3~~$3.8 billion, primarily resulting from ~~$1.8~~$1.9 billion of cash dividend payments and $1.2 billion of share repurchases, including ~~$1.1 billion from PNC, $412~~$900 million in open market transactions and ~~$280~~$282 million of employee tax withholdings related to employee stock transactions, and ~~$1.7 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 September 30, ~~2020~~2021 and December 31, ~~2019~~2020 were as follows:

	September 30,			December 31,			September 30,			December 31,
(in millions)	2020			2019			2021			2020
Cash and cash equivalents⁽¹⁾	$	6,507		$	4,829		$	7,361		$	8,664
Cash and cash equivalents held by consolidated sponsored investment products⁽²⁾		(208	)		(141	)
Cash and cash equivalents held by CIPs⁽²⁾								(265	)		(206	)
Subtotal		6,299			4,688			7,096			8,458
Credit facility – undrawn		4,000			4,000			4,400			4,000
Total liquidity resources⁽³⁾	$	10,299		$	8,688		$	11,496		$	12,458

Total liquidity resources ~~increased $1,611~~decreased $962 million during the nine months ended September 30, ~~2020,~~2021, primarily reflecting ~~$2.2~~cash payments of 2020 year-end incentive awards, cash dividend payments of $1.9 billion, share repurchases of $1.2 billion, approximately $1.1 billion of ~~proceeds from long-term~~cash outflow related to the Aperio Transaction 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 $1.7 billion.~~the credit facility.

A significant portion of the Company’s ~~$4,074~~$5,552 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 nine months ended September 30, 2020.

Share Repurchases. During the nine months ended September 30, ~~2020,~~2021, the Company repurchased ~~0.8~~1.1 million common shares ~~in open market transactions under the share repurchase program for approximately $412 million. At September 30, 2020, there were 5.1 million shares still authorized to be repurchased.~~

~~Including the repurchase 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 nine months ended~~$900 million. At September 30, ~~2020 and has now completed its targeted level of share repurchases for~~2021, there were 3.9 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 September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company was required to maintain approximately ~~$2.2~~$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 September 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 September 30, ~~2020,~~2021, the Company had no amount outstanding under the ~~2020~~2021 credit facility.

At September 30, ~~2020,~~2021, the principal amount of long-term borrowings outstanding was ~~$7.3~~$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 nine months ended September 30, ~~2020,~~2021, the Company paid approximately ~~$124~~$148 million of interest on long-term borrowings. Future principal repayments and interest requirements at September 30, ~~2020~~2021 were as follows:

(in millions)
Year	Principal		Interest		Total Payments		Principal		Interest		Total Payments
Remainder of 2020	$	—	$	57	$	57
2021		750		189		939
Remainder of 2021							$	—	$	41	$	41
2022		750		161		911		750		161		911
2023		—		148		148		—		148		148
2024		1,000		130		1,130		1,000		131		1,131
2025⁽¹⁾		821		113		934		811		113		924
2026								—		103		103
Thereafter		3,950		386		4,336		3,950		283		4,233
Total	$	7,271	$	1,184	$	8,455	$	6,511	$	980	$	7,491

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, which commenced 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 September 30, ~~2020~~2021 and subject to this type of indemnification was ~~$249~~$279 billion. In the Company’s capacity as lending agent, cash and securities totaling ~~$265~~$299 billion were held as collateral for indemnified securities on loan at September 30, ~~2020.~~2021. The fair value of these indemnifications was not material at September 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 September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company had ~~$447 million~~$1.3 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 nine months ended September 30, ~~2020~~2021 and ~~2019.~~2020.

~~For accounting pronouncements that the Company adopted during the nine months ended September 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 assets under management (“AUM”) and, in some cases, performance fees expressed as a percentage of the returns realized on AUM. At September 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 September 30, ~~2020,~~2021, the Company had outstanding total return swaps with an aggregate notional value of approximately ~~$735~~$801 million. ~~At September 30, 2020, there were no outstanding interest rate swaps.~~

At September 30, ~~2020,~~2021, approximately ~~$4.5~~$4.6 billion of BlackRock’s investments were maintained in consolidated sponsored investment products accounted for as variable interest entities and 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 ~~$2.8~~$3.2 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 September 30, ~~2020,~~2021, the Company’s net exposure to equity market price risk in its investment portfolio was approximately ~~$995~~$1,582 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 ~~$100~~$158 million in the carrying value of such investments.

Interest Rate/Credit Spread Risk. At September 30, ~~2020,~~2021, the Company was exposed to interest-rate risk and credit spread risk as a result of approximately ~~$1,762~~$1,628 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 ~~$43~~$29 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 ~~$886~~$912 million at September 30, ~~2020.~~2021. A 10% adverse change in the applicable foreign exchange rates would result in approximately a ~~$89~~$91 million decline in the carrying value of such investments.

Other Market Risks. The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange risk movements. At September 30, ~~2020,~~2021, the Company had outstanding forward foreign currency exchange contracts with an aggregate notional value of approximately ~~$4.1~~$2.2 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 September 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.

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

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

Towards the end of the first quarter of 2020, the pandemic began to impact ~~our~~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 reports filed with the Securities and Exchange Commission.

During the three months ended September 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	7475

Item 4.	Controls and Procedures	7576

Item 1.	Legal Proceedings	7677

Item 1A.	Risk Factors	7778

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7879

Item 6.	Exhibits	7980

(in millions)
Year	Amount
2021 (excluding the nine months ended September 30, 2021)	$	10
2022		40
2023		38
2024		32
2025		29
Thereafter		111
Total	$	260

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

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

	Remainder of
(in millions)	2021			2022		2023		2024	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	45	$	157	$	143	$	85	$	51	$	481

	Total Number of Shares Purchased⁽¹⁾		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2020 through July 31, 2020		8,472	$	533.41		—		5,041,968
August 1, 2020 through August 31, 2020		6,374	$	573.68		—		5,041,968
September 1, 2020 through September 30, 2020		2,863	$	600.40		—		5,041,968
Total		17,709	$	558.74		—

Exhibit No.		Description

3.1(1)		Amended and Restated Certificate of ~~Elimination relating to the Preferred Stock, dated October 6, 2020.~~Incorporation of BlackRock

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

3.3(2)		Amended and 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: November 5, ~~2020~~2021		Gary S. Shedlin
		Senior Managing Director & Chief Financial Officer (Principal Financial Officer)