Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BLK | |
Entity Registrant Name | BlackRock Inc. | |
Entity Central Index Key | 1,364,742 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 160,332,161 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 6,165 | $ 6,091 |
Accounts receivable | 3,183 | 2,350 |
Investments | 1,928 | 1,595 |
Separate account assets | 147,938 | 149,089 |
Separate account collateral held under securities lending agreements | 27,431 | 27,792 |
Property and equipment (net of accumulated depreciation of $708 and $601 at September 30, 2017 and December 31, 2016, respectively) | 571 | 559 |
Intangible assets (net of accumulated amortization of $909 and $832 at September 30, 2017 and December 31, 2016, respectively) | 17,400 | 17,363 |
Goodwill | 13,226 | 13,118 |
Other assets | 1,311 | 1,065 |
Total assets | 220,567 | 220,177 |
Liabilities | ||
Accrued compensation and benefits | 1,614 | 1,880 |
Accounts payable and accrued liabilities | 1,652 | 1,094 |
Liabilities of consolidated variable interest entities | 319 | 216 |
Borrowings | 5,000 | 4,915 |
Separate account liabilities | 147,938 | 149,089 |
Separate account collateral liabilities under securities lending agreements | 27,431 | 27,792 |
Deferred income tax liabilities | 4,966 | 4,840 |
Other liabilities | 1,230 | 1,007 |
Total liabilities | 190,150 | 190,833 |
Commitments and contingencies (Note 11) | ||
Temporary equity | ||
Redeemable noncontrolling interests | 320 | 194 |
Permanent Equity | ||
Shares authorized: 500,000,000 at September 30, 2017 and December 31, 2016;Shares issued: 171,252,185 at September 30, 2017 and December 31, 2016;Shares outstanding: 160,528,060 and 161,534,443 at September 30, 2017 andDecember 31, 2016, respectively | 2 | 2 |
Preferred stock (Note 15) | 0 | 0 |
Additional paid-in capital | 19,145 | 19,337 |
Retained earnings | 15,065 | 13,660 |
Accumulated other comprehensive loss | (473) | (716) |
Treasury stock, common, at cost (10,724,125 and 9,717,742 shares held at September 30, 2017 and December 31, 2016, respectively) | (3,697) | (3,185) |
Total BlackRock, Inc. stockholders’ equity | 30,042 | 29,098 |
Nonredeemable noncontrolling interests | 55 | 52 |
Total permanent equity | 30,097 | 29,150 |
Total liabilities, temporary equity and permanent equity | 220,567 | 220,177 |
Consolidated Variable Interest Entities [Member] | ||
Assets | ||
Cash and cash equivalents | 82 | 84 |
Investments | 1,286 | 1,008 |
Other assets | 46 | 63 |
Liabilities | ||
Total liabilities | 319 | 216 |
Permanent Equity | ||
Nonredeemable noncontrolling interests | $ 307 | $ 207 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 708 | $ 601 |
Intangible assets, accumulated amortization | $ 909 | $ 832 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 171,252,185 | 171,252,185 |
Common stock, shares outstanding | 160,528,060 | 161,534,443 |
Treasury stock, common shares | 10,724,125 | 9,717,742 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue | ||||
Total investment advisory, administration fees and securities lending revenue | $ 2,792 | $ 2,546 | $ 7,997 | $ 7,394 |
Investment advisory performance fees | 191 | 58 | 309 | 166 |
Technology and risk management revenue | 175 | 152 | 497 | 439 |
Distribution fees | 5 | 10 | 17 | 32 |
Advisory and other revenue | 70 | 71 | 202 | 234 |
Total revenue | 3,233 | 2,837 | 9,022 | 8,265 |
Expense | ||||
Employee compensation and benefits | 1,088 | 969 | 3,108 | 2,893 |
Distribution and servicing costs | 123 | 114 | 361 | 320 |
Amortization of deferred sales commissions | 4 | 8 | 13 | 27 |
Direct fund expense | 234 | 200 | 666 | 583 |
General and administration | 363 | 312 | 1,014 | 946 |
Restructuring charge | 76 | |||
Amortization of intangible assets | 27 | 25 | 77 | 75 |
Total expense | 1,839 | 1,628 | 5,239 | 4,920 |
Operating income | 1,394 | 1,209 | 3,783 | 3,345 |
Nonoperating income (expense) | ||||
Net gain (loss) on investments | 41 | 31 | 128 | 49 |
Interest and dividend income | 15 | 22 | 35 | 33 |
Interest expense | (46) | (52) | (159) | (154) |
Total nonoperating income (expense) | 10 | 1 | 4 | (72) |
Income before income taxes | 1,404 | 1,210 | 3,787 | 3,273 |
Income tax expense | 445 | 333 | 1,090 | 954 |
Net income | 959 | 877 | 2,697 | 2,319 |
Net income (loss) attributable to noncontrolling interests | 12 | 2 | 31 | (2) |
Net income attributable to BlackRock, Inc. | $ 947 | $ 875 | $ 2,666 | $ 2,321 |
Earnings per share attributable to BlackRock, Inc. common stockholders: | ||||
Basic | $ 5.85 | $ 5.33 | $ 16.41 | $ 14.09 |
Diluted | 5.78 | 5.26 | 16.23 | 13.92 |
Cash dividends declared and paid per share | $ 2.50 | $ 2.29 | $ 7.50 | $ 6.87 |
Weighted-average common shares outstanding: | ||||
Basic | 161,872,716 | 164,129,214 | 162,459,737 | 164,756,355 |
Diluted | 163,773,546 | 166,256,598 | 164,289,042 | 166,760,912 |
Related Parties [Member] | ||||
Revenue | ||||
Total investment advisory, administration fees and securities lending revenue | $ 1,995 | $ 1,768 | $ 5,662 | $ 5,098 |
Other Third Parties [Member] | ||||
Revenue | ||||
Total investment advisory, administration fees and securities lending revenue | $ 797 | $ 778 | $ 2,335 | $ 2,296 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income | $ 959 | $ 877 | $ 2,697 | $ 2,319 | |
Other comprehensive income: | |||||
Foreign currency translation adjustments | [1] | 102 | (38) | 244 | (151) |
Other | (1) | 1 | |||
Other comprehensive income (loss) | 102 | (38) | 243 | (150) | |
Comprehensive income | 1,061 | 839 | 2,940 | 2,169 | |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 12 | 2 | 31 | (2) | |
Comprehensive income attributable to BlackRock, Inc. | $ 1,049 | $ 837 | $ 2,909 | $ 2,171 | |
[1] | Amounts for the three months ended September 30, 2017 and 2016 include a loss from a net investment hedge of $18 million (net of a tax benefit of $11 million) and $5 million (net of a tax benefit of $4 million), respectively. Amounts for the nine months ended September 30, 2017 and 2016 include a loss from a net investment hedge of $56 million (net of a tax benefit of $33 million) and $16 million (net of a tax benefit of $10 million), respectively. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Losses from net investment hedging, net of tax | $ (18) | $ (5) | $ (56) | $ (16) |
Losses from net investment hedging, tax | $ (11) | $ (4) | $ (33) | $ (10) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock Common [Member] | Total BlackRock Stockholders' Equity [Member] | Nonredeemable Noncontrolling Interests [Member] | Redeemable Noncontrolling Interests / Temporary Equity [Member] | |
Balance at Dec. 31, 2015 | $ 28,580 | $ 19,407 | [1] | $ 12,033 | $ (448) | $ (2,489) | $ 28,503 | $ 77 | $ 464 |
Net income | 2,319 | 2,321 | 2,321 | (2) | |||||
Dividends paid | (1,171) | (1,171) | (1,171) | ||||||
Stock-based compensation | 408 | 408 | [1] | 408 | |||||
PNC preferred stock capital contribution | 172 | 172 | [1] | 172 | |||||
Retirement of preferred stock | (172) | (172) | [1] | (172) | |||||
Issuance of common shares related to employee stock transactions | 34 | (654) | [1] | 688 | 34 | ||||
Employee tax withholdings related to employee stock transactions | (268) | (268) | (268) | ||||||
Shares repurchased | (850) | (850) | (850) | ||||||
Net tax benefit (shortfall) from stock-based compensation | 77 | 77 | [1] | 77 | |||||
Subscriptions (redemptions/ distributions) — noncontrolling interest holders | (18) | (18) | 1,017 | ||||||
Net consolidations (deconsolidations) of sponsored investment funds | (881) | ||||||||
Other comprehensive income (loss) | (150) | (150) | (150) | ||||||
Balance at Sep. 30, 2016 | 28,961 | 19,238 | [1] | 13,183 | (598) | (2,919) | 28,904 | 57 | 600 |
Balance at Jun. 30, 2016 | (560) | ||||||||
Other comprehensive income (loss) | (38) | (38) | |||||||
Balance at Sep. 30, 2016 | 28,961 | 19,238 | [1] | 13,183 | (598) | (2,919) | 28,904 | 57 | 600 |
Balance at Dec. 31, 2016 | 29,150 | 19,339 | [2] | 13,660 | (716) | (3,185) | 29,098 | 52 | 194 |
Net income | 2,669 | 2,666 | 2,666 | 3 | 28 | ||||
Dividends paid | (1,259) | (1,259) | (1,259) | ||||||
Stock-based compensation | 417 | 417 | [2] | 417 | |||||
PNC preferred stock capital contribution | 193 | 193 | [2] | 193 | |||||
Retirement of preferred stock | (193) | (193) | [2] | (193) | |||||
Issuance of common shares related to employee stock transactions | 9 | (612) | [2] | 621 | 9 | ||||
Employee tax withholdings related to employee stock transactions | (308) | (308) | (308) | ||||||
Shares repurchased | (825) | (825) | (825) | ||||||
Subscriptions (redemptions/ distributions) — noncontrolling interest holders | (14) | (14) | 338 | ||||||
Net consolidations (deconsolidations) of sponsored investment funds | 14 | 14 | (240) | ||||||
Other comprehensive income (loss) | 243 | 243 | 243 | ||||||
Adoption of new accounting pronouncement | 1 | 3 | [2] | (2) | 1 | ||||
Balance at Sep. 30, 2017 | 30,097 | 19,147 | [2] | 15,065 | (473) | (3,697) | 30,042 | 55 | 320 |
Balance at Jun. 30, 2017 | (575) | ||||||||
Other comprehensive income (loss) | 102 | 102 | |||||||
Balance at Sep. 30, 2017 | $ 30,097 | $ 19,147 | [2] | $ 15,065 | $ (473) | $ (3,697) | $ 30,042 | $ 55 | $ 320 |
[1] | Amounts include $2 million of common stock at both September 30, 2016 and December 31, 2015. | ||||||||
[2] | Amounts include $2 million of common stock at both September 30, 2017 and December 31, 2016. |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Additional Paid-in Capital, value of stock | $ 30,097 | $ 29,150 | $ 28,961 | $ 28,580 |
Common Stock [Member] | ||||
Additional Paid-in Capital, value of stock | $ 2 | $ 2 | $ 2 | $ 2 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 2,697 | $ 2,319 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 190 | 198 |
Stock-based compensation | 417 | 408 |
Deferred income tax expense (benefit) | 175 | (6) |
Assets and liabilities of consolidated VIEs: | ||
Change in cash and cash equivalents | (19) | (127) |
Net (gains) losses within consolidated VIEs | (95) | (34) |
Net (purchases) proceeds within consolidated VIEs | (148) | (855) |
(Earnings) losses from equity method investees | (92) | (71) |
Distributions of earnings from equity method investees | 24 | 16 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (776) | (336) |
Investments, trading | (145) | (278) |
Other assets | (190) | (114) |
Accrued compensation and benefits | (267) | (484) |
Accounts payable and accrued liabilities | 595 | 309 |
Other liabilities | 120 | 17 |
Cash flows from operating activities | 2,486 | 962 |
Cash flows from investing activities | ||
Purchases of investments | (400) | (292) |
Proceeds from sales and maturities of investments | 121 | 215 |
Distributions of capital from equity method investees | 26 | 26 |
Net consolidations (deconsolidations) of sponsored investment funds | (35) | (74) |
Acquisitions | (102) | (30) |
Purchases of property and equipment | (100) | (88) |
Cash flows from investing activities | (490) | (243) |
Cash flows from financing activities | ||
Proceeds from long-term borrowings | 697 | |
Repayments of long-term borrowings | (700) | |
Cash dividends paid | (1,259) | (1,171) |
Proceeds from stock options exercised | 26 | |
Repurchases of common stock | (1,133) | (1,118) |
Net (redemptions/distributions paid)/subscriptions received from noncontrolling interest holders | 324 | 999 |
Excess tax benefit from stock-based compensation | 81 | |
Other financing activities | (12) | 3 |
Cash flows from financing activities | (2,083) | (1,180) |
Effect of exchange rate changes on cash and cash equivalents | 161 | (168) |
Net increase (decrease) in cash and cash equivalents | 74 | (629) |
Cash and cash equivalents, beginning of period | 6,091 | 6,083 |
Cash and cash equivalents, end of period | 6,165 | 5,454 |
Supplemental disclosure of cash flow information: | ||
Interest | 150 | 144 |
Income taxes (net of refunds) | 916 | 910 |
Supplemental schedule of noncash investing and financing transactions: | ||
Issuance of common stock | 612 | 654 |
PNC preferred stock capital contribution | 193 | 172 |
Increase (decrease) in noncontrolling interests due to net consolidation (deconsolidation) of sponsored investment funds | $ (226) | $ (881) |
Business Overview
Business Overview | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Overview | 1. Business Overview BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm providing a broad range of investment and risk management services to institutional and retail clients worldwide. BlackRock’s diverse platform of active (alpha) and index (beta) 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 ® Aladdin ® At September 30, 2017, The PNC Financial Services Group, Inc. (“PNC”) held 21.4% of the Company’s voting common stock and 21.9% of the Company’s capital stock, which includes outstanding common and nonvoting preferred stock. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation . 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 on the condensed consolidated statements of financial condition represents the portion of consolidated sponsored investment funds in which the Company does not have direct equity ownership. Accounts and transactions between consolidated entities have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, is not required for interim reporting purposes and has been condensed or omitted herein. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2017 (“2016 Form 10-K”). The interim financial information at September 30, 2017 and for the three and nine months ended September 30, 2017 and 2016 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 items previously reported have been reclassified to conform to the current year presentation. Beginning with the first quarter of 2017, Aladdin BlackRock Solutions ® BlackRock Solutions BlackRock Solutions Accounting Pronouncements Adopted in the Nine Months Ended September 30, 2017. Accounting for Share-Based Payments. In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, (“ASU 2016-09”). ASU 2016-09 simplifies accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the condensed consolidated statements of cash flows. The Company adopted ASU 2016-09 as of January 1, 2017. ASU 2016-09 requires all excess tax benefits and deficiencies to be recognized in income tax expense on the condensed consolidated statements of income. Accordingly, the Company recorded a discrete income tax benefit of $81 million during the three months ended March 31, 2017 for vested restricted stock units where the grant date stock price was lower than the vesting date stock price. The new guidance will increase the volatility of income tax expense as a result of fluctuations in the Company’s stock price. Upon adoption, the Company elected to account for forfeitures as they occur, which did not have a material impact on the condensed consolidated financial statements. In addition, the Company elected to present excess tax benefits and deficiencies prospectively in operating activities on the condensed consolidated statements of cash flows. Fair Value Measurements. 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: Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. • Level 1 assets may include listed mutual funds, ETFs, listed equities and certain exchange-traded derivatives. Level 2 Inputs: 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. • Level 2 assets may include debt securities, investments in CLOs, short-term floating-rate notes, asset-backed securities, securities held within consolidated hedge funds, restricted public securities valued at a discount, as well as over-the-counter derivatives, including interest and inflation rate swaps and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs: 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. • Level 3 assets may include direct private equity investments held within consolidated funds and investments in CLOs. • Level 3 liabilities include contingent liabilities related to acquisitions valued based upon discounted cash flow analyses using unobservable market data. 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. Such quotes and modeled prices are evaluated for reasonableness through various procedures, including due diligence reviews of third-party pricing vendors, variance analyses, consideration of the current market environment and other analytical procedures. A significant number of inputs used to value equity, debt securities and investments in CLOs 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. Annually, BlackRock’s internal valuation committee or other designated groups review both the valuation approaches, including the general assumptions and methods used to value various asset classes, and operational processes with these vendors. On a quarterly basis, meetings are held with key vendors to identify any significant changes to the vendors’ processes. 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 BlackRock 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. Derivative Instruments 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. 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 U.S. dollars. The gain or loss from revaluing accounting hedges of net investments in foreign operations at the spot rate is deferred and reported within accumulated other comprehensive income on the condensed consolidated statements of financial condition. The Company reassesses the effectiveness of its net investment hedge on a quarterly basis. Money Market Fee Waivers . The Company is currently voluntarily waiving 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, 2017, these waivers resulted in a reduction of management fees of approximately $0 million and $6 million, respectively. During the three and nine months ended September 30, 2016, these waivers resulted in a reduction of management fees of approximately $17 million and $42 million, respectively. Approximately 0% and 45% of Yield Support waivers for the nine months ended September 30, 2017 and 2016, respectively, were offset by a reduction of BlackRock’s distribution and servicing costs paid to a financial intermediary. BlackRock may increase or decrease the level of Yield Support waivers in future periods. Separate Account Assets and Liabilities . Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company, which is a registered life insurance company in the United Kingdom, and represent segregated assets held for purposes of funding individual and group pension contracts. The life insurance company does not underwrite any insurance contracts that involve any insurance risk transfer from the insured to the life insurance company. The separate account assets primarily include equity securities, debt securities, money market funds and derivatives. The separate account assets are not subject to general claims of the creditors of BlackRock. These separate account assets and the related equal and offsetting liabilities are recorded as separate account assets and separate account liabilities on the condensed consolidated statements of financial condition. The net investment income attributable to separate account assets supporting individual and group pension contracts accrues directly to the contract owner and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these separate account assets and liabilities, BlackRock earns policy administration and management fees associated with these products, which are included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income. Separate Account Collateral Assets Held and Liabilities Under Securities Lending Agreements. The Company facilitates securities lending arrangements whereby securities held by separate accounts maintained by BlackRock Life Limited are lent to third parties under global master securities lending agreements. In exchange, the Company receives legal title to the collateral with minimum values generally ranging from approximately 102% to 112% of the value of the securities lent in order to reduce counterparty risk. The required collateral value is calculated on a daily basis. The global master securities lending agreements provide the Company the right to request additional collateral or, in the event of borrower default, the right to liquidate collateral. The securities lending transactions entered into by the Company are accompanied by an agreement that entitles the Company to request the borrower to return the securities at any time; therefore, these transactions are not reported as sales. The Company records on the condensed consolidated statements of financial condition the cash and noncash collateral received under these BlackRock Life Limited securities lending arrangements as its own asset in addition to an equal and offsetting collateral liability for the obligation to return the collateral. The securities lending revenue earned from lending securities held by the separate accounts is included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income. During the nine months ended September 30, 2017 and 2016, the Company had not resold or repledged any of the collateral received under these arrangements. At September 30, 2017 and December 31, 2016, the fair value of loaned securities held by separate accounts was approximately $24.7 billion and $25.7 billion, respectively, and the fair value of the collateral held under these securities lending agreements was approximately $27.4 billion and $27.8 billion, respectively. Recent Accounting Pronouncements Not Yet Adopted. Revenue from Contracts with Customers. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements. The Company continues to evaluate the impact of ASU 2014-09 on the presentation and recognition of its revenue contracts and certain contract costs. The most significant change identified to date relates to the presentation of certain distribution costs, which are currently presented net against revenues (contra-revenue) and will likely be presented as an expense on a gross basis. The Company currently expects such net gross up to annual revenue to be approximately $1 billion with a corresponding gross up to annual expense. The Company is currently evaluating which transition method it will apply when it adopts the new revenue recognition guidance in the first quarter of 2018. Recognition and Measurement of Financial Instruments . In January 2016, the FASB issued ASU 2016-01, (“ASU 2016-01”). ASU 2016-01 amends guidance on the classification and measurement of financial instruments, including significant revisions in accounting related to the classification and measurement of investments in equity securities and presentation of certain fair value changes for financial liabilities when the fair value option is elected. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. The Company does not currently expect the reclassification of unrealized gains(losses) on equity securities within accumulated other comprehensive income to retained earnings to be material upon adoption effective January 1, 2018. Leases. In February 2016, the FASB issued ASU 2016-02, (“ASU 2016-02”), which requires lessees to recognize assets and liabilities arising from most operating leases on the condensed consolidated statements of financial condition. The Company expects to record assets and liabilities for its current operating leases upon adoption of ASU 2016-02 and does not expect the adoption to have a material impact on its results of operations or cash flows. ASU 2016-02 is effective for the Company on January 1, 2019, and the Company intends to apply the practical expedients allowed by the standard upon transition. See Note 13 of the 2016 Form 10-K for information on the Company’s operating lease commitments. Cash Flow Classification. In August 2016, the FASB issued ASU 2016-15, (“ASU 2016-15”), which amends and clarifies the current guidance to reduce diversity in practice of the classification of certain cash receipts and payments in the condensed consolidated statements of cash flows. The Company is currently evaluating the impact of adopting ASU 2016-15, which is effective for the Company on January 1, 2018 with early adoption permitted. The Company must apply the guidance retrospectively to all periods presented. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 3. Investments A summary of the carrying value of total investments is as follows: September 30, December 31, (in millions) 2017 2016 Available-for-sale investments $ 104 $ 80 Held-to-maturity investments 76 51 Trading investments: Consolidated sponsored investment funds 507 465 Other equity and debt securities 131 101 Deferred compensation plan mutual funds 54 59 Total trading investments 692 625 Other investments: Equity method investments (1) 944 730 Cost method investments (2) 92 91 Carried interest (3) 20 18 Total other investments 1,056 839 Total investments $ 1,928 $ 1,595 (1) Equity method investments primarily include BlackRock’s direct investments in certain BlackRock sponsored investment funds. (2) Amounts include nonmarketable securities, primarily Federal Reserve Bank stock, which is held for regulatory purposes and is restricted from sale. At September 30, 2017 and December 31, 2016, there were no indicators of impairment on these investments. (3) Carried interest of consolidated sponsor investment funds accounted for as voting rights entities (“VREs”) represents allocations to BlackRock’s general partner capital accounts from certain funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds. Available-for-Sale Investments At both September 30, 2017 and December 31, 2016, available-for-sale investments primarily included certain investments in CLOs and seed investments in BlackRock sponsored mutual funds. The cost of these investments approximated carrying value. Held-to-Maturity Investments The carrying value of held-to-maturity investments was $76 million and $51 million at September 30, 2017 and December 31, 2016, respectively. Held-to-maturity investments included foreign government debt held primarily for regulatory purposes and certain investments in CLOs. The amortized cost (carrying value) of these investments approximated fair value. At September 30, 2017, $11 million of these investments mature between five to Trading Investments A summary of the cost and carrying value of trading investments is as follows: September 30, December 31, (in millions) 2017 2016 Cost Carrying Value Cost Carrying Value Trading investments: Deferred compensation plan mutual funds $ 34 $ 54 $ 41 $ 59 Equity securities/multi-asset mutual funds 323 353 290 308 Debt securities/fixed income mutual funds: Corporate debt 160 162 128 128 Government debt 59 60 60 60 Asset/mortgage backed debt 62 63 70 70 Total trading investments $ 638 $ 692 $ 589 $ 625 At September 30, 2017, trading investments included $268 million of debt securities and $239 million of equity securities held by consolidated sponsored investment funds accounted for as VREs, $54 million of certain deferred compensation plan mutual fund investments and $131 million of other equity and debt securities. At December 31, 2016, trading investments included $246 million of debt securities and $219 million of equity securities held by consolidated sponsored investment funds accounted for as VREs, $59 million of certain deferred compensation plan mutual fund investments and $101 million of other equity and debt securities. Other In addition, the Company accounts for its interest in PennyMac Financial Services, Inc. (“PennyMac”) as an equity method investment. At September 30, 2017 and December 31, 2016 the Company’s investment in PennyMac was excluded from investments in the table above and included in other assets on the condensed consolidated statements of financial condition. The carrying value and fair value of the Company’s interest (approximately 20% or 16 million shares and units) was approximately $333 million and $277 million, respectively, at September 30, 2017 and approximately $301 million and $259 million, respectively, at December 31, 2016. The fair value of the Company’s interest reflected the PennyMac stock price at September 30, 2017 and December 31, 2016, respectively (a Level 1 input). The Company performed an other-than-temporary impairment analysis as of September 30, 2017 and determined the difference in fair value below the carrying value to be temporary. |
Consolidated Voting Rights Enti
Consolidated Voting Rights Entities | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Consolidated Voting Rights Entities | 4. Consolidated Voting Rights Entities The Company consolidates certain sponsored investment funds accounted for as VREs because it is deemed to control such funds. The investments owned by these consolidated VREs are classified as trading investments. The following table presents the balances related to these consolidated VREs that were recorded on the condensed consolidated statements of financial condition, including BlackRock’s net interest in these funds: September 30, December 31, (in millions) 2017 2016 Cash and cash equivalents $ 73 $ 53 Trading investments 507 465 Other assets 28 15 Other liabilities (61 ) (50 ) Noncontrolling interests ("NCI") (68 ) (39 ) BlackRock’s net interests in consolidated VREs $ 479 $ 444 BlackRock’s total exposure to consolidated VREs represents the value of its economic ownership interest in these sponsored investment funds. Valuation changes associated with investments held at fair value by these consolidated VREs are reflected in nonoperating income (expense) and partially offset in net income (loss) attributable to noncontrolling interests for the portion not attributable to BlackRock. The Company cannot readily access cash and cash equivalents held by consolidated VREs to use in its operating activities. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable Interest Entities | 5. Variable Interest Entities In the normal course of business, the Company is the manager of various types of sponsored investment vehicles, which may be considered variable interest entities (“VIEs”). The Company may from time to time own equity or debt securities or enter into derivatives with the vehicles, each of which are considered variable interests. The Company’s involvement in financing the operations of the VIEs is generally limited to its investments in the entity. The Company consolidates entities when it is determined to be the primary beneficiary (“PB”). Consolidated VIEs. The Company’s consolidated VIEs include certain sponsored investment funds 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 funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these sponsored investment funds. The assets of these VIEs are not available to creditors of the Company. In addition, the investors in these VIEs have no recourse to the credit of the Company. Consolidated VIE assets and liabilities are presented after intercompany eliminations in the following table: September 30, December 31, (in millions) 2017 2016 Assets of consolidated VIEs: Cash and cash equivalents $ 82 $ 84 Investments 1,286 1,008 Other assets 46 63 Total investments and other assets 1,332 1,071 Liabilities of consolidated VIEs (319 ) (216 ) Noncontrolling interests (307 ) (207 ) BlackRock's net interests in consolidated VIEs $ 788 $ 732 Net gain (loss) related to consolidated VIEs is presented in the following table: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2017 2016 2017 2016 Nonoperating net gain (loss) on consolidated VIEs $ 29 $ 19 $ 95 $ 34 Net gain (loss) attributable to NCI on consolidated VIEs $ 10 $ 1 $ 28 $ (2 ) Non-Consolidated VIEs . At September 30, 2017 and December 31, 2016, the Company’s carrying value of assets and liabilities included on the condensed consolidated statements of financial condition pertaining to nonconsolidated VIEs and its maximum risk of loss related to VIEs for which it held a variable interest, but for which it was not the PB, was as follows: (in millions) At September Investments Advisory Fee Receivables Other Net Assets (Liabilities) Maximum Risk (1) Sponsored investment products $ 227 $ 15 $ (7 ) $ 259 At December Sponsored investment products $ 171 $ 9 $ (8 ) $ 197 (1) At both September 30, 2017 and December 31, 2016, BlackRock’s maximum risk of loss associated with these VIEs primarily related to BlackRock’s investments and the collection of advisory fee receivables. The net assets of sponsored investment products that are nonconsolidated VIEs approximated $5 billion and $4 billion at September 30, 2017 and December 31, 2016, respectively. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 6. Fair Value Disclosures Fair Value Hierarchy Assets and liabilities measured at fair value on a recurring basis and other assets not held at fair value September 30, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Investments Measured at Other Assets Not Held at September 30, (in millions) (Level 1) (Level 2) (Level 3) NAV (1) Fair Value (2) 2017 Assets: Investments Available-for-sale $ 8 $ 73 $ 23 $ — $ — $ 104 Held-to-maturity securities — — — — 76 76 Trading: — Deferred compensation plan mutual funds 54 — — — — 54 Equity securities/Multi-asset mutual funds 353 — — — — 353 Debt securities / fixed income mutual funds 1 282 2 — — 285 Total trading 408 282 2 — — 692 Other investments: Equity method: Equity and fixed income mutual funds 314 — — 10 — 324 Other — — — 608 12 620 Total equity method 314 — — 618 12 944 Cost method investments — — — — 92 92 Carried interest — — — — 20 20 Total investments 730 355 25 618 200 1,928 Separate account assets 112,957 34,268 — — 713 147,938 Separate account collateral held under securities lending agreements: Equity securities 19,093 — — — — 19,093 Debt securities — 8,338 — — — 8,338 Total separate account collateral held under securities lending agreements 19,093 8,338 — — — 27,431 Investments of consolidated VIEs: Private / public equity (3) 5 3 114 69 83 274 Equity securities 338 — — — — 338 Debt securities — 350 — — — 350 Other — — — 64 — 64 Carried interest — — — — 260 260 Total investments of consolidated VIEs 343 353 114 133 343 1,286 Total $ 133,123 $ 43,314 $ 139 $ 751 $ 1,256 $ 178,583 Liabilities: Separate account collateral liabilities under securities lending agreements $ 19,093 $ 8,338 $ — $ — $ — $ 27,431 Other liabilities (4) — 7 228 — — 235 Total $ 19,093 $ 8,345 $ 228 $ — $ — $ 27,666 (1) Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient. (2) Amounts are comprised of investments held at cost or amortized cost, carried interest and certain equity method investments, which include sponsored investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value. (3) Level 3 amounts primarily include direct investments in private equity companies held by private equity funds. (4) Amounts primarily include contingent liabilities related to certain acquisitions (see Note 11, Commitments and Contingencies Assets and liabilities measured at fair value on a recurring basis and other assets not held at fair value December 31, 2016 (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 Assets Not Held at Fair Value (2) December 31, 2016 Assets: Investments Available-for-sale $ 7 $ 49 $ 24 $ — $ — $ 80 Held-to-maturity securities — — — — 51 51 Trading: Deferred compensation plan mutual funds 59 — — — — 59 Equity/Multi-asset mutual funds 308 — — — — 308 Debt securities / fixed income mutual funds 1 250 7 — — 258 Total trading 368 250 7 — — 625 Other investments: Equity method: Equity and fixed income mutual funds 323 — — 5 — 328 Other — — — 394 8 402 Total equity method 323 — — 399 8 730 Cost method investments — — — — 91 91 Carried interest — — — — 18 18 Total investments 698 299 31 399 168 1,595 Separate account assets 109,663 38,542 — — 884 149,089 Separate account collateral held under securities lending agreements: Equity securities 22,173 — — — — 22,173 Debt securities — 5,619 — — — 5,619 Total separate account collateral held under securities lending agreements 22,173 5,619 — — — 27,792 Investments of consolidated VIEs: Private / public equity (3) 3 2 112 89 79 285 Equity securities 278 — — — — 278 Debt securities — 274 — — — 274 Other — — — 63 — 63 Carried interest — — — — 108 108 Total investments of consolidated VIEs 281 276 112 152 187 1,008 Total $ 132,815 $ 44,736 $ 143 $ 551 $ 1,239 $ 179,484 Liabilities: Separate account collateral liabilities under securities lending agreements $ 22,173 $ 5,619 $ — $ — $ — $ 27,792 Other liabilities (4) — 7 115 — — 122 Total $ 22,173 $ 5,626 $ 115 $ — $ — $ 27,914 (1) Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient. (2) Amounts are comprised of investments held at cost or amortized cost, carried interest and certain equity method investments, which include sponsored investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value. (3) Level 3 amounts include direct investments in private equity companies held by private equity funds. (4) Amounts primarily include contingent liabilities related to certain acquisitions (see Note 11, Commitments and Contingencies Level 3 Assets. Level 3 investments of consolidated VIEs of $114 million and $112 million at September 30, 2017 and December 31, 2016, respectively, related to direct investments in private equity companies held by consolidated private equity funds. Direct investments in private equity companies may be valued using the market approach or the income approach, or a combination thereof, and were valued based on an assessment of each underlying investment, incorporating evaluation of additional significant third-party financing, changes in valuations of comparable peer companies, the business environment of the companies, market indices, assumptions relating to appropriate risk adjustments for nonperformance and legal restrictions on disposition, among other factors. The fair value derived from the methods used is evaluated and weighted, as appropriate, considering the reasonableness of the range of values indicated. Under the market approach, fair value may be determined by reference to multiples of market-comparable companies or transactions, including earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. Under the income approach, fair value may be determined by discounting the expected cash flows to a single present value amount using current expectations about those future amounts. Unobservable inputs used in a discounted cash flow model may include projections of operating performance generally covering a five-year period and a terminal value of the private equity direct investment. For investments utilizing the discounted cash flow valuation technique, a significant increase (decrease) in the discount rate, risk premium or discount for lack of marketability in isolation could result in a significantly lower (higher) fair value measurement. For investments utilizing the market-comparable valuation technique, a significant increase (decrease) in the EBITDA multiple in isolation could result in a significantly higher (lower) fair value measurement. Level 3 assets may include investments in CLOs valued based on single-broker nonbinding quotes and direct private equity investments valued using the market approach or the income approach as described above. Level 3 Liabilities. Level 3 other liabilities primarily include recorded 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, 2017 (in millions) June 30, 2017 Realized and Unrealized Gains (Losses) in Earnings and OCI Purchases Sales and Maturities Issuances and other Settlements (1) Transfers into Level 3 Transfers out of Level 3 September 30, 2017 Total Net Unrealized Gains (Losses) Included in Earnings (2) Assets: Investments: Available-for-sale securities (3) $ 23 $ — $ — $ — $ — $ — $ — $ 23 Trading 4 — — — — — (2 ) 2 Total investments 27 — — — — — (2 ) 25 Assets of consolidated VIEs - Private equity 113 1 — — — — — 114 $ 1 Total Level 3 assets $ 140 $ 1 $ — $ — $ — $ — $ (2 ) $ 139 Liabilities: Other liabilities (4) $ 218 $ (7 ) $ — $ — $ 3 $ — $ — $ 228 $ (7 ) (1 ) (2) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date. (3) Amounts include investments in CLOs. (4) Other liabilities amount includes contingent liabilities in connection with certain acquisitions. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2017 (in millions) December 31, 2016 Realized and Unrealized Gains (Losses) in Earnings and OCI Purchases Sales and Maturities Issuances and other Settlements (1) Transfers into Level 3 Transfers out of Level 3 (2) September 30, 2017 Total Net Unrealized Gains (Losses) Included in Earnings (3) Assets: Investments: Available-for-sale securities (4) $ 24 $ — $ 23 $ — $ — $ — $ (24 ) $ 23 Trading 7 — 4 — — — (9 ) 2 Total investments 31 — 27 — — — (33 ) 25 Assets of consolidated VIEs - Private equity 112 2 — — — — 114 $ 2 Total Level 3 assets $ 143 $ 2 $ 27 $ — $ — $ — $ (33 ) $ 139 Liabilities: Other liabilities (5) $ 115 $ (2 ) $ — $ — $ 111 $ — $ — $ 228 $ (2 ) (1) (2) (3) (4) Amounts include investments in CLOs. (5) Other liabilities amount includes contingent liabilities in connection with certain acquisitions. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2016 (in millions) June 30, 2016 Realized and Unrealized Gains (Losses) in Earnings and OCI Purchases Sales and Maturities Issuances and other Settlements Transfers into Level 3 Transfers out of Level 3 September 30, 2016 Total Net Unrealized Gains (Losses) Included in Earnings (1) Assets: Investments: Available-for-sale securities (2) $ — $ — $ 24 $ — $ — $ — $ — $ 24 Trading 3 — 2 — — — — 5 Total investments 3 — 26 — — — — 29 Assets of consolidated VIEs - Private equity 189 11 — (6 ) — — — 194 $ 11 Total Level 3 assets $ 192 $ 11 $ 26 $ (6 ) $ — $ — $ — $ 223 Liabilities: Other liabilities (3) $ 121 $ (2 ) $ — $ — $ (5 ) $ — $ — $ 118 $ (2 ) (1) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date. (2) Amounts include investments in CLOs. (3) Other liabilities amount includes contingent liabilities in connection with certain acquisitions. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2016 December 31, Realized and Unrealized Gains (Losses) in Earnings Sales and Issuances and other Transfers into Transfers out of September 30, Total Net Unrealized Gains (Losses) Included in (in millions) 2015 and OCI Purchases Maturities Settlements (1) Level 3 Level 3 2016 Earnings (2) Assets: Investments Available-for-sale securities (3) $ 23 $ — $ 47 $ — $ — $ — $ (46 ) $ 24 Trading 2 — 6 — — — (3 ) 5 Total investments 25 — 53 — — — (49 ) 29 Assets of consolidated VIEs - Private equity 196 13 — (15 ) — — — 194 $ 13 Total Level 3 assets $ 221 $ 13 $ 53 $ (15 ) $ — $ — $ (49 ) $ 223 Liabilities: Other liabilities (4) $ 48 $ — $ — $ — $ 70 $ — $ — $ 118 $ — (1) ® (2) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date. (3) Amounts include investments in CLOs. (4) Other liabilities amount includes contingent liabilities in connection with certain acquisitions. 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 are allocated to noncontrolling interests to reflect net income (loss) not attributable to the Company. Transfers in and/or out of Levels. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable, or when the carrying value of certain equity method investments no longer represents fair value as determined under valuation methodologies. Disclosures of Fair Value for Financial Instruments Not Held at Fair Value . At September 30, 2017 and December 31, 2016, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below: September 30, 2017 December 31, 2016 (in millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Fair Value Hierarchy Financial Assets: Cash and cash equivalents $ 6,165 $ 6,165 $ 6,091 $ 6,091 Level 1 (1) (2) Accounts receivable 3,183 3,183 2,350 2,350 Level 1 (3) Cash and cash equivalents of consolidated VIEs 82 82 84 84 Level 1 (1) (2) Other assets 62 62 25 25 Level 1 (1) (4) Financial Liabilities: Accounts payable and accrued liabilities 1,652 1,652 1,094 1,094 Level 1 (3) Long-term borrowings 5,000 5,248 4,915 5,165 Level 2 (5) (1) Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities. (2) At September 30, 2017 and December 31, 2016, approximately $137 million and $132 million, respectively, of money market funds were recorded within cash and cash equivalents on the condensed consolidated statements of financial condition. In addition, at September 30, 2017 and December 31, 2016, approximately $14 million and $13 million, respectively, of money market funds were recorded within cash and cash equivalents of consolidated VIEs. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund. (3) The carrying amounts of accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short-term nature. (4) Other assets primarily include restricted cash. (5) Long-term borrowings are recorded at amortized cost net of debt issuance costs. The fair value of the long-term borrowings, including the current portion of long-term borrowings, is estimated using market prices at the end of September 2017 and December 2016, respectively. See Note 10, Borrowings Investments in Certain Entities that Calculate Net Asset Value Per Share. 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 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, 2017 (in millions) Ref Fair Value Total Unfunded Commitments Redemption Frequency Redemption Notice Period Equity method: (1) Hedge funds/funds of hedge funds (a) $ 249 $ 42 Daily/Monthly (19%) Quarterly (55%) N/R (26%) 1 – 90 days Private equity funds (b) 89 92 N/R N/R Real assets funds (c) 265 111 Quarterly (85%) N/R (15%) 60 days Other 15 13 Daily/Monthly (66%) N/R (34%) 3 – 5 days Consolidated VIEs: Private equity funds of funds (d) 69 20 N/R N/R Hedge fund (a) 23 — Quarterly 90 days Real assets funds (c) 41 54 N/R N/R Total $ 751 $ 332 December 31, 2016 (in millions) Ref Fair Value Total Unfunded Commitments Redemption Frequency Redemption Notice Period Equity method: (1) Hedge funds/funds of hedge funds (a) $ 237 $ 14 Daily/Monthly (21%) Quarterly (51%) N/R (28%) 1 – 90 days Private equity funds (b) 90 62 N/R N/R Real assets funds (c) 60 35 Quarterly (41%) N/R (59%) 60 days Other 12 9 Daily/Monthly (42%) N/R (58%) 3 – 5 days Consolidated VIEs: Private equity funds of funds (d) 89 16 N/R N/R Hedge fund (a) 36 — Quarterly 90 days Real assets funds (c) 27 21 N/R N/R Total $ 551 $ 157 N/R – not redeemable (1) Comprised of equity method investments, which include investments in investment companies, which account for their financial assets and most financial liabilities under fair value measures; therefore, the Company’s investment in such equity method investees approximates fair value. (a) This category includes hedge funds and funds of hedge funds that invest primarily in equities, fixed income securities, distressed credit, opportunistic and mortgage instruments and other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. It was estimated that the investments in the funds that are not subject to redemption will be liquidated over a weighted-average period of seven years at September 30, 2017 and approximately one year at December 31, 2016. (b) This category includes several private equity funds that initially invest in nonmarketable securities of private companies, which ultimately may become public in the future. The fair values of these investments have been estimated using capital accounts representing the Company’s ownership interest in the funds as well as other performance inputs. The Company’s investment in each fund is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying assets of the private equity funds. It was estimated that the investments in these funds will be liquidated over a weighted-average period of approximately five (c) This category includes several real assets funds that invest directly in real estate, real estate related assets and infrastructure. The fair values of the investments have been estimated using capital accounts representing the Company’s ownership interest in the funds. The Company’s investments that are not subject to redemption or are not currently redeemable are normally returned through distributions as a result of the liquidation of the underlying assets of the funds. It is estimated that the investments in these funds not subject to redemptions will be liquidated over a weighted-average period of approximately eight years at September 30, 2017 and six years at December 31, 2016. The total remaining unfunded commitments to other third-party funds were $165 million and $56 million at September 30, 2017 and December 31, 2016, respectively. The Company had contractual obligations to the consolidated funds of $136 million at September 30, 2017 and $56 million at December 31, 2016. (d) |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | 7. Derivatives and Hedging 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, 2017, the Company had outstanding total return swaps with aggregate notional values of approximately $538 million. At December 31, 2016, the Company had outstanding total return swaps and interest rate swaps with aggregate notional values of approximately $572 million and $42 million, respectively. Gains (losses) on the total return swaps are recorded in nonoperating income (expense) and were $ ( ( ( ( Gains (losses) on the interest rate swaps are recorded in nonoperating income (expense) and were not material for the three and nine months ended September 30, 2017 and 2016. The Company has entered into a derivative providing credit protection to a counterparty of approximately $17 million, representing the Company’s maximum risk of loss with respect to the provision of credit protection. The Company carries the derivative at fair value based on the expected discounted future cash outflows under the arrangement. The Company executes forward foreign currency exchange contracts to mitigate the risk of certain foreign exchange movements. At September 30, 2017 and December 31, 2016, the Company had outstanding forward foreign currency exchange contracts with aggregate notional values of approximately $1.3 billion and $107 million, respectively. Gains (losses) on the forward foreign currency exchange contracts are recorded in other general and administration expense and were $29 million and $58 million for the three and nine months ended September 30, 2017, respectively. Gains (losses) on the forward foreign currency exchange contracts were not material for the three and nine months ended September 30, 2016. The Company consolidates certain sponsored investment funds, which may utilize derivative instruments as a part of the funds’ investment strategies. The change in fair value of such derivatives, which is recorded in nonoperating income (expense), was not material for the three and nine months ended September 30, 2017 and 2016. The fair value of the outstanding derivatives mentioned above were not material at September 30, 2017 and December 31, 2016. See Note 12, Borrowings |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. Goodwill Goodwill activity during the nine months ended September 30, 2017 was as follows: (in millions) December 31, 2016 $ 13,118 Acquisitions (1) 123 Goodwill adjustments related to Quellos (2) (15 ) September 30, 2017 $ 13,226 (1) Amount includes $91 million of goodwill related to the First Reserve Transaction, which expanded the Company’s energy and power infrastructure platform and $32 million of goodwill related to the Cachematrix Transaction, which enhanced the Company’s technology and cash management capabilities. The total consideration paid for these acquisitions was approximately $231 million, including $129 million of contingent consideration at fair value at time of close. (2) The decrease in goodwill during the nine months ended September 30, 2017 primarily resulted from a decline related to tax benefits realized from tax-deductible goodwill in excess of book goodwill from the acquisition of the fund-of-funds business of Quellos Group, LLC in October 2007 (the “Quellos Transaction”). Goodwill related to the Quellos Transaction will continue to be reduced in future periods by the amount of tax benefits realized from tax-deductible goodwill in excess of book goodwill from the Quellos Transaction. The balance of the Quellos tax-deductible goodwill in excess of book goodwill was approximately $176 million and $200 million at September 30, 2017 and December 31, 2016, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 9. Intangible Assets The carrying amounts of identifiable intangible assets are summarized as follows: (in millions) Indefinite-lived Finite-lived Total December 31, 2016 $ 17,178 $ 185 $ 17,363 Amortization expense — (77 ) (77 ) Acquisitions (1) — 114 114 September 30, 2017 $ 17,178 $ 222 $ 17,400 (1) |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | 10. Borrowings Short-Term Borrowings 2017 Revolving Credit Facility. The Company’s credit facility has an aggregate commitment amount of $4.0 billion and was amended in April 2017 to extend the maturity date to April 2022 (the “2017 credit facility”). The 2017 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 2017 credit facility to an aggregate principal amount not to exceed $5.0 billion. Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread. The 2017 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, 2017. The 2017 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities. At September 30, 2017, the Company had no amount outstanding under the 2017 credit facility. Commercial Paper Program. The Company can issue unsecured commercial paper notes (the “CP Notes”) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $4.0 billion. The commercial paper program is currently supported by the 2017 credit facility. At September 30, 2017, BlackRock had no CP Notes outstanding. Long-Term Borrowings The carrying value and fair value of long-term borrowings estimated using market prices and foreign exchange rates at September 30, 2017 included the following: (in millions) Maturity Amount Unamortized Discount and Debt Issuance Costs Carrying Value Fair Value 5.00% Notes due 2019 $ 1,000 $ (1 ) $ 999 $ 1,067 4.25% Notes due 2021 750 (4 ) 746 802 3.375% Notes due 2022 750 (4 ) 746 781 3.50% Notes due 2024 1,000 (6 ) 994 1,044 1.25% Notes due 2025 828 (6 ) 822 846 3.20% Notes due 2027 700 (7 ) 693 708 Total Long-term Borrowings $ 5,028 $ (28 ) $ 5,000 $ 5,248 Long-term borrowings at December 31, 2016 had a carrying value of $4.9 billion and a fair value of $5.2 billion determined using market prices at the end of December 2016. 2027 Notes . In March 2017, the Company issued $700 million in aggregate principal amount of 3.20% senior unsecured and unsubordinated notes maturing on March 15, 2027 (the “2027 Notes”). Interest is payable semi-annually on March 15 and September 15 of each year, commencing September 15, 2017, and is approximately $22 million per year. The 2027 Notes may be redeemed prior to maturity at any time in whole or in part at the option of the Company at a “make-whole” redemption price. The unamortized discount and debt issuance costs are being amortized over the remaining term of the 2027 Notes. In April 2017, the net proceeds of the 2027 Notes were used to fully repay $700 million in aggregate principal amount outstanding of 6.25% notes prior to their maturity in September 2017. See Note 12, Borrowings |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Investment Commitments. At September 30, 2017, the Company had $328 million of various capital commitments to fund sponsored investment funds, including consolidated VIEs. These funds include private equity funds, real assets funds and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the condensed consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients. Lease Commitment. In May 2017, the Company entered into an agreement with 50 HYMC Owner LLC, for the lease of approximately 847,000 square feet of office space located at 50 Hudson Yards, New York, New York. The term of the lease is twenty years from the date that rental payments begin, expected to occur in May 2023, with the option to renew for a specified term. Future minimum commitments of annual base rental payments under this operating lease are as follows: (in millions) Year Amount 2023 $ 34 2024 51 2025 51 2026 51 2027 51 Thereafter 1,007 Total $ 1,245 Contingencies Contingent Payments Related to Business Acquisitions . In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to achieving specified performance targets, which may include revenue related to acquired contracts or new capital commitments for certain products. The fair value of the remaining aggregate contingent payments at September 30, 2017 totaled $228 million, including $125 million related to the First Reserve Transaction, 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 7, , for further discussion. Legal Proceedings. From time to time, BlackRock receives subpoenas or other requests for information from various U.S. federal, state governmental and domestic and international regulatory authorities in connection with certain industry-wide or other investigations or proceedings. It is BlackRock’s policy to cooperate fully with such inquiries. The Company and certain of its subsidiaries 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 purported 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 U.S. 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 Between November 12, 2015 and November 16, 2015, BlackRock, Inc., BlackRock Realty Advisors, Inc. (“BRA”), BlackRock US Core Property Fund, Inc. (formerly known as BlackRock Granite Property Fund, Inc.) (“Granite Fund”), and certain other Granite Fund related entities (collectively, the “BlackRock Parties”) were named as defendants in thirteen lawsuits filed in the Superior Court of the State of California for the County of Alameda arising out of the June 16, 2015 collapse of a balcony at the Library Gardens apartment complex in Berkeley, California (the “Property”). The Property is indirectly owned by the Granite Fund, which is managed by BRA. The plaintiffs also named as defendants in the lawsuits Greystar, which manages the Property, and certain other non-BlackRock related entities, including the developer of the Property, building contractors and building materials suppliers. The plaintiffs allege, among other things, that the BlackRock Parties were negligent in their ownership, control and maintenance of the Property’s balcony, and seek monetary, including punitive, damages. Additionally, on March 16, 2016, three former tenants of the Library Gardens apartment unit that experienced the balcony collapse sued the BlackRock Parties. The former tenants, who witnessed (but were not physically injured in) the accident make allegations virtually identical to those in the other previously filed actions and claim that, as a result of the collapse, they suffered unspecified emotional damage. Several defendants also filed cross-complaints alleging a variety of claims, including claims against the BlackRock Parties for contribution, negligence, and declaratory relief. BlackRock, Inc. believes the claims against it are without merit and intends to vigorously defend the actions. A trial on all claims is scheduled to begin on February 5, 2018. On June 16, 2016, iShares iShares iShares 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 U.S. District Court for the Northern District of California by a former employee on behalf of all BlackRock employee 401(k) Plan (the “Plan”) participants and beneficiaries in 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 peer funds, focused disproportionately on active versus passive strategies, and were unduly concentrated with investment options managed by BlackRock. While the complaint does not contain any specific amount in alleged damages, it claims that the purported underperformance and hidden fees cost Plan participants more than $60 million. On October 10, 2017, the plaintiffs filed an Amended Complaint, which, among other things, adds as defendants certain current and former members of the BlackRock Retirement and Investment Committees. The Amended Complaint also includes a new purported class claim on behalf of investors in certain Collective Trust Funds (“CTFs”) managed by BTC. Specifically, the plaintiffs allege that BTC exercised fiduciary authority over its compensation for securities lending services to the CTFs. The defendants believe the claims in this lawsuit are without merit and intend to vigorously defend the action. Management, after consultation with legal counsel, currently does not anticipate that the aggregate liability arising out of regulatory matters or lawsuits will have a material effect on BlackRock’s results of operations, financial position, or cash flows. However, there is no assurance as to whether any such pending or threatened matters will have a material effect on BlackRock’s results of operations, financial position or cash flows in any future reporting period. Due to uncertainties surrounding the outcome of these matters, management cannot reasonably estimate the possible loss or range of loss that may arise from these matters. Indemnifications. In the ordinary course of business or in connection with certain acquisition agreements, BlackRock enters into contracts pursuant to which it may agree to indemnify third parties in certain circumstances. The terms of these indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined or the likelihood of any liability is considered remote. Consequently, no liability has been recorded on the condensed consolidated statements of financial condition. In connection with securities lending transactions, BlackRock has issued certain indemnifications to 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. At September 30, 2017, the Company indemnified certain of its clients for their securities lending loan balances of approximately $197.6 billion. The Company held, as agent, cash and securities totaling $210.6 billion as collateral for indemnified securities on loan at September 30, 2017. The fair value of these indemnifications was not material at September 30, 2017. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. Stock-Based Compensation Restricted Stock and RSUs. Restricted stock and restricted stock units (“RSUs”) activity for the nine months ended September 30, 2017 is summarized below. Outstanding at Restricted Stock and RSUs Weighted- Average Grant Date Fair Value December 31, 2016 2,987,588 $ 318.04 Granted 1,061,915 $ 377.36 Converted (1,363,701 ) $ 320.27 Forfeited (39,164 ) $ 338.57 September 30, 2017 (1) 2,646,638 $ 340.39 (1) At September 30, 2017, approximately 2.3 million awards are expected to vest and 0.3 million awards have vested but have not been converted. In January 2017, the Company granted 699,991 RSUs or shares of restricted stock to employees as part of 2016 annual incentive compensation that vest ratably over three years from the date of grant and 277,313 RSUs or shares of restricted stock to employees that cliff vest 100% on January 31, 2020. 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, 2017 was $401 million. At September 30, 2017, the intrinsic value of outstanding RSUs was $1.2 billion, reflecting a closing stock price of $447.09. At September 30, 2017, total unrecognized stock-based compensation expense related to unvested RSUs was $351 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.1 years. Performance-Based RSUs. Performance-based RSU activity for the nine months ended September 30, 2017 is summarized below. Outstanding at Performance- Based RSUs Weighted- Average Grant Date Fair Value December 31, 2016 610,371 $ 315.65 Granted 294,584 $ 375.27 Forfeited (1,430 ) $ 296.12 September 30, 2017 903,525 $ 335.12 In January 2017, the Company granted 293,385 performance-based RSUs to certain employees that cliff vest 100% on January 31, 2020. 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. The Company 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, 2017 was $111 million. At September 30, 2017, the intrinsic value of outstanding performance-based RSUs was $404 million, reflecting a closing stock price of $447.09. At September 30, 2017, total unrecognized stock-based compensation expense related to unvested performance-based awards was $137 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.4 years. Market Performance-based RSUs. Market performance-based RSUs activity for the nine months ended September 30, 2017 is summarized below. Outstanding at Market Performance- Based RSUs Weighted- Average Grant Date Fair Value December 31, 2016 803,474 $ 151.20 Converted (517,138 ) $ 126.76 September 30, 2017 (1) 286,336 $ 195.33 (1) See Note 14, Stock-Based Compensation, At September 30, 2017, the intrinsic value of outstanding market performance-based RSUs was $128 million reflecting a closing stock price of $447.09. At September 30, 2017, total unrecognized stock-based compensation expense related to unvested market performance-based awards was $4 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of less than one year. Long-Term Incentive Plans Funded by PNC. Under a share surrender agreement, PNC committed to provide up to 4 million shares of BlackRock stock, held by PNC, to fund certain BlackRock long-term incentive plans (“LTIP”), including performance-based and market performance-based RSUs. The current share surrender agreement commits PNC to provide BlackRock Series C nonvoting participating preferred stock to fund the remaining committed shares. As of September 30, 2017, 3.8 million shares had been surrendered by PNC. 517,138 shares were surrendered by PNC in the first quarter of 2017. At September 30, 2017, the remaining shares committed by PNC of 0.2 million were available to fund certain future long-term incentive awards. |
Net Capital Requirements
Net Capital Requirements | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Net Capital Requirements | 13. 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, including repatriation to the United States, may have adverse tax consequences that could discourage such transfers. At September 30, 2017, the Company was required to maintain approximately $1.7 billion in net capital in certain regulated subsidiaries, including BlackRock Institutional Trust Company, N.A. (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 Office of the Comptroller of the Currency), entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the United Kingdom, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 14. Accumulated Other Comprehensive Income (Loss) The following tables present changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2017 and 2016: (in millions) Foreign currency translation adjustments (1) Other (2) Total For the Three Months Ended September 30, 2017 June 30, 2017 $ (579 ) $ 4 $ (575 ) Net other comprehensive income (loss) for the three months ended September 30, 2017 102 — 102 September 30, 2017 $ (477 ) $ 4 $ (473 ) For the Nine Months Ended September 30, 2017 December 31, 2016 $ (721 ) $ 5 $ (716 ) Net other comprehensive income (loss) for the nine months ended September 30, 2017 244 (1 ) 243 September 30, 2017 $ (477 ) $ 4 $ (473 ) (1) Amount for the three and nine months ended September 30, 2017 includes a loss from a net investment hedge of $18 million (net of a tax benefit of $11 million) and $56 million (net of a tax benefit of $33 million), respectively. (2) (in millions) Foreign currency translation adjustments (1) Other (2) Total For the Three Months Ended September 30, 2016 June 30, 2016 $ (565 ) $ 5 $ (560 ) Net other comprehensive income (loss) for the three months ended September 30, 2016 (38 ) — (38 ) September 30, 2016 $ (603 ) $ 5 $ (598 ) For the Nine Months Ended September 30, 2016 December 31, 2015 $ (452 ) $ 4 $ (448 ) Net other comprehensive income (loss) for the nine months ended September 30, 2016 (151 ) 1 (150 ) September 30, 2016 $ (603 ) $ 5 $ (598 ) ( 1) (2) |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Capital Stock | 15. Capital Stock Nonvoting Participating Preferred Stock . The Company’s preferred shares authorized, issued and outstanding consisted of the following: September 30, December 31, 2017 2016 Series A Shares authorized, $0.01 par value 20,000,000 20,000,000 Shares issued and outstanding — — Series B Shares authorized, $0.01 par value 150,000,000 150,000,000 Shares issued and outstanding (1) 823,188 823,188 Series C Shares authorized, $0.01 par value 6,000,000 6,000,000 Shares issued and outstanding (1) 246,522 763,660 Series D Shares authorized, $0.01 par value 20,000,000 20,000,000 Shares issued and outstanding — — (1) Shares held by PNC. Share Repurchases . The Company repurchased 2.1 million common shares in open market transactions under the share repurchase program for approximately $825 million during the nine months ended September 30, 2017. At September 30, 2017, there were 6.9 million shares still authorized to be repurchased. PNC Capital Contribution . During the three months ended March 31, 2017, PNC surrendered to BlackRock 517,138 shares of BlackRock Series C Preferred to fund certain LTIP awards. |
Restructuring Charge
Restructuring Charge | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charge | 16. Restructuring Charge A restructuring charge of $76 million ($53 million after-tax), comprised of $44 million of severance and $32 million of expense related to the accelerated amortization of previously granted deferred cash and equity compensation awards, was recorded in the first quarter of 2016 in connection with a project to streamline and simplify the organization. There was no restructuring liability outstanding at September 30, 2017. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 17. Earnings Per Share Due to the similarities in terms between BlackRock nonvoting participating preferred stock and the Company’s common stock, the Company considers its participating preferred stock to be a common stock equivalent for purposes of earnings per share (“EPS”) calculations. As such, the Company has included the outstanding nonvoting participating preferred stock in the calculation of average basic and diluted shares outstanding. The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2017 and 2016 under the treasury stock method: Three Months Ended Nine Months Ended September 30, September 30, (in millions, except shares and per share data) 2017 2016 2017 2016 Net income attributable to BlackRock $ 947 $ 875 $ 2,666 $ 2,321 Basic weighted-average shares outstanding 161,872,716 164,129,214 162,459,737 164,756,355 Dilutive effect of nonparticipating RSUs and stock options 1,900,830 2,127,384 1,829,305 2,004,557 Total diluted weighted-average shares outstanding 163,773,546 166,256,598 164,289,042 166,760,912 Basic earnings per share $ 5.85 $ 5.33 $ 16.41 $ 14.09 Diluted earnings per share $ 5.78 $ 5.26 $ 16.23 $ 13.92 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 18. Segment Information The Company’s management directs BlackRock’s operations as one 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 as defined in ASC 280-10. The following table illustrates investment advisory, administration fees, securities lending revenue and performance fees by product type, technology and risk management revenue, distribution fees, and advisory and other revenue for the three and nine months ended September 30, 2017 and 2016. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2017 2016 2017 2016 Equity $ 1,457 $ 1,284 $ 4,134 $ 3,746 Fixed income 749 695 2,153 1,975 Multi-asset 291 286 857 866 Alternatives 342 221 754 633 Cash management 144 118 408 340 Total investment advisory, administration fees, securities lending revenue and performance fees 2,983 2,604 8,306 7,560 Technology and risk management revenue 175 152 497 439 Distribution fees 5 10 17 32 Advisory and other revenue 70 71 202 234 Total revenue $ 3,233 $ 2,837 $ 9,022 $ 8,265 The following table illustrates total revenue for the three and nine months ended September 30, 2017 and 2016 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 (in millions) September 30, September 30, Revenue 2017 2016 2017 2016 Americas $ 2,126 $ 1,934 $ 6,077 $ 5,580 Europe 946 773 2,496 2,287 Asia-Pacific 161 130 449 398 Total revenue $ 3,233 $ 2,837 $ 9,022 $ 8,265 The following table illustrates long-lived assets that consist of goodwill and property and equipment at September 30, 2017 and December 31, 2016 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, Long-lived Assets 2017 2016 Americas $ 13,546 $ 13,424 Europe 166 163 Asia-Pacific 85 90 Total long-lived assets $ 13,797 $ 13,677 Americas primarily is comprised of the United States and Canada, while Europe primarily is comprised of the United Kingdom and Luxembourg. Asia-Pacific primarily is comprised of Hong Kong, Australia, Japan and Singapore. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events In June 2017, the Company announced that it entered into an agreement for a minority investment in Scalable Capital, a digital investment manager in Europe. The transaction is expected to be completed in the fourth quarter of 2017, subject to customary regulatory approvals and closing conditions. This transaction is not expected to be material to the Company’s condensed consolidated statements of financial condition or results of operations. The Company conducted a review for additional subsequent events and determined that no subsequent events had occurred that would require accrual or additional disclosures. |
Significant Accounting Polici29
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation . 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 on the condensed consolidated statements of financial condition represents the portion of consolidated sponsored investment funds in which the Company does not have direct equity ownership. Accounts and transactions between consolidated entities have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, is not required for interim reporting purposes and has been condensed or omitted herein. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2017 (“2016 Form 10-K”). The interim financial information at September 30, 2017 and for the three and nine months ended September 30, 2017 and 2016 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 items previously reported have been reclassified to conform to the current year presentation. Beginning with the first quarter of 2017, Aladdin BlackRock Solutions ® BlackRock Solutions BlackRock Solutions |
Accounting Pronouncements Adopted in the Six Months Ended June 30, 2017 | Accounting Pronouncements Adopted in the Nine Months Ended September 30, 2017. Accounting for Share-Based Payments. In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, (“ASU 2016-09”). ASU 2016-09 simplifies accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the condensed consolidated statements of cash flows. The Company adopted ASU 2016-09 as of January 1, 2017. ASU 2016-09 requires all excess tax benefits and deficiencies to be recognized in income tax expense on the condensed consolidated statements of income. Accordingly, the Company recorded a discrete income tax benefit of $81 million during the three months ended March 31, 2017 for vested restricted stock units where the grant date stock price was lower than the vesting date stock price. The new guidance will increase the volatility of income tax expense as a result of fluctuations in the Company’s stock price. Upon adoption, the Company elected to account for forfeitures as they occur, which did not have a material impact on the condensed consolidated financial statements. In addition, the Company elected to present excess tax benefits and deficiencies prospectively in operating activities on the condensed consolidated statements of cash flows. |
Fair Value Measurements | Fair Value Measurements. 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: Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. • Level 1 assets may include listed mutual funds, ETFs, listed equities and certain exchange-traded derivatives. Level 2 Inputs: 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. • Level 2 assets may include debt securities, investments in CLOs, short-term floating-rate notes, asset-backed securities, securities held within consolidated hedge funds, restricted public securities valued at a discount, as well as over-the-counter derivatives, including interest and inflation rate swaps and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs: 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. • Level 3 assets may include direct private equity investments held within consolidated funds and investments in CLOs. • Level 3 liabilities include contingent liabilities related to acquisitions valued based upon discounted cash flow analyses using unobservable market data. 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. Such quotes and modeled prices are evaluated for reasonableness through various procedures, including due diligence reviews of third-party pricing vendors, variance analyses, consideration of the current market environment and other analytical procedures. A significant number of inputs used to value equity, debt securities and investments in CLOs 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. Annually, BlackRock’s internal valuation committee or other designated groups review both the valuation approaches, including the general assumptions and methods used to value various asset classes, and operational processes with these vendors. On a quarterly basis, meetings are held with key vendors to identify any significant changes to the vendors’ processes. 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 BlackRock 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. |
Derivative Instruments and Hedging Activities | Derivative Instruments 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. 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 U.S. dollars. The gain or loss from revaluing accounting hedges of net investments in foreign operations at the spot rate is deferred and reported within accumulated other comprehensive income on the condensed consolidated statements of financial condition. The Company reassesses the effectiveness of its net investment hedge on a quarterly basis. |
Money Market Fee Waivers | Money Market Fee Waivers . The Company is currently voluntarily waiving 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, 2017, these waivers resulted in a reduction of management fees of approximately $0 million and $6 million, respectively. During the three and nine months ended September 30, 2016, these waivers resulted in a reduction of management fees of approximately $17 million and $42 million, respectively. Approximately 0% and 45% of Yield Support waivers for the nine months ended September 30, 2017 and 2016, respectively, were offset by a reduction of BlackRock’s distribution and servicing costs paid to a financial intermediary. BlackRock may increase or decrease the level of Yield Support waivers in future periods. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities . Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company, which is a registered life insurance company in the United Kingdom, and represent segregated assets held for purposes of funding individual and group pension contracts. The life insurance company does not underwrite any insurance contracts that involve any insurance risk transfer from the insured to the life insurance company. The separate account assets primarily include equity securities, debt securities, money market funds and derivatives. The separate account assets are not subject to general claims of the creditors of BlackRock. These separate account assets and the related equal and offsetting liabilities are recorded as separate account assets and separate account liabilities on the condensed consolidated statements of financial condition. The net investment income attributable to separate account assets supporting individual and group pension contracts accrues directly to the contract owner and is not reported on the condensed consolidated statements of income. While BlackRock has no economic interest in these separate account assets and liabilities, BlackRock earns policy administration and management fees associated with these products, which are included in investment advisory, administration fees and securities lending revenue on the condensed consolidated statements of income. |
Separate Account Collateral Assets Held and Liabilities Under Securities Lending Agreements | 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, 2017 and 2016, the Company had not resold or repledged any of the collateral received under these arrangements. At September 30, 2017 and December 31, 2016, the fair value of loaned securities held by separate accounts was approximately $24.7 billion and $25.7 billion, respectively, and the fair value of the collateral held under these securities lending agreements was approximately $27.4 billion and $27.8 billion, respectively. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted. Revenue from Contracts with Customers. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements. The Company continues to evaluate the impact of ASU 2014-09 on the presentation and recognition of its revenue contracts and certain contract costs. The most significant change identified to date relates to the presentation of certain distribution costs, which are currently presented net against revenues (contra-revenue) and will likely be presented as an expense on a gross basis. The Company currently expects such net gross up to annual revenue to be approximately $1 billion with a corresponding gross up to annual expense. The Company is currently evaluating which transition method it will apply when it adopts the new revenue recognition guidance in the first quarter of 2018. Recognition and Measurement of Financial Instruments . In January 2016, the FASB issued ASU 2016-01, (“ASU 2016-01”). ASU 2016-01 amends guidance on the classification and measurement of financial instruments, including significant revisions in accounting related to the classification and measurement of investments in equity securities and presentation of certain fair value changes for financial liabilities when the fair value option is elected. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. The Company does not currently expect the reclassification of unrealized gains(losses) on equity securities within accumulated other comprehensive income to retained earnings to be material upon adoption effective January 1, 2018. Leases. In February 2016, the FASB issued ASU 2016-02, (“ASU 2016-02”), which requires lessees to recognize assets and liabilities arising from most operating leases on the condensed consolidated statements of financial condition. The Company expects to record assets and liabilities for its current operating leases upon adoption of ASU 2016-02 and does not expect the adoption to have a material impact on its results of operations or cash flows. ASU 2016-02 is effective for the Company on January 1, 2019, and the Company intends to apply the practical expedients allowed by the standard upon transition. See Note 13 of the 2016 Form 10-K for information on the Company’s operating lease commitments. Cash Flow Classification. In August 2016, the FASB issued ASU 2016-15, (“ASU 2016-15”), which amends and clarifies the current guidance to reduce diversity in practice of the classification of certain cash receipts and payments in the condensed consolidated statements of cash flows. The Company is currently evaluating the impact of adopting ASU 2016-15, which is effective for the Company on January 1, 2018 with early adoption permitted. The Company must apply the guidance retrospectively to all periods presented. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Carrying Value of Total Investments | A summary of the carrying value of total investments is as follows: September 30, December 31, (in millions) 2017 2016 Available-for-sale investments $ 104 $ 80 Held-to-maturity investments 76 51 Trading investments: Consolidated sponsored investment funds 507 465 Other equity and debt securities 131 101 Deferred compensation plan mutual funds 54 59 Total trading investments 692 625 Other investments: Equity method investments (1) 944 730 Cost method investments (2) 92 91 Carried interest (3) 20 18 Total other investments 1,056 839 Total investments $ 1,928 $ 1,595 (1) Equity method investments primarily include BlackRock’s direct investments in certain BlackRock sponsored investment funds. (2) Amounts include nonmarketable securities, primarily Federal Reserve Bank stock, which is held for regulatory purposes and is restricted from sale. At September 30, 2017 and December 31, 2016, there were no indicators of impairment on these investments. (3) Carried interest of consolidated sponsor investment funds accounted for as voting rights entities (“VREs”) represents allocations to BlackRock’s general partner capital accounts from certain funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds. |
Summary of Cost and Carrying Value of Trading Investments | A summary of the cost and carrying value of trading investments is as follows: September 30, December 31, (in millions) 2017 2016 Cost Carrying Value Cost Carrying Value Trading investments: Deferred compensation plan mutual funds $ 34 $ 54 $ 41 $ 59 Equity securities/multi-asset mutual funds 323 353 290 308 Debt securities/fixed income mutual funds: Corporate debt 160 162 128 128 Government debt 59 60 60 60 Asset/mortgage backed debt 62 63 70 70 Total trading investments $ 638 $ 692 $ 589 $ 625 |
Consolidated Voting Rights En31
Consolidated Voting Rights Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Consolidated VREs Included in Condensed Consolidated Statements of Financial Condition | The following table presents the balances related to these consolidated VREs that were recorded on the condensed consolidated statements of financial condition, including BlackRock’s net interest in these funds: September 30, December 31, (in millions) 2017 2016 Cash and cash equivalents $ 73 $ 53 Trading investments 507 465 Other assets 28 15 Other liabilities (61 ) (50 ) Noncontrolling interests ("NCI") (68 ) (39 ) BlackRock’s net interests in consolidated VREs $ 479 $ 444 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Consolidated Variable Interest Entities [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of VIE Assets and Liabilities | Consolidated VIE assets and liabilities are presented after intercompany eliminations in the following table: September 30, December 31, (in millions) 2017 2016 Assets of consolidated VIEs: Cash and cash equivalents $ 82 $ 84 Investments 1,286 1,008 Other assets 46 63 Total investments and other assets 1,332 1,071 Liabilities of consolidated VIEs (319 ) (216 ) Noncontrolling interests (307 ) (207 ) BlackRock's net interests in consolidated VIEs $ 788 $ 732 |
Schedule of Net Gain (Loss) Related to Consolidated VIEs | Net gain (loss) related to consolidated VIEs is presented in the following table: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2017 2016 2017 2016 Nonoperating net gain (loss) on consolidated VIEs $ 29 $ 19 $ 95 $ 34 Net gain (loss) attributable to NCI on consolidated VIEs $ 10 $ 1 $ 28 $ (2 ) |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of VIE Assets and Liabilities | At September 30, 2017 and December 31, 2016, the Company’s carrying value of assets and liabilities included on the condensed consolidated statements of financial condition pertaining to nonconsolidated VIEs and its maximum risk of loss related to VIEs for which it held a variable interest, but for which it was not the PB, was as follows: (in millions) At September Investments Advisory Fee Receivables Other Net Assets (Liabilities) Maximum Risk (1) Sponsored investment products $ 227 $ 15 $ (7 ) $ 259 At December Sponsored investment products $ 171 $ 9 $ (8 ) $ 197 (1) At both September 30, 2017 and December 31, 2016, BlackRock’s maximum risk of loss associated with these VIEs primarily related to BlackRock’s investments and the collection of advisory fee receivables. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis and other assets not held at fair value September 30, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Investments Measured at Other Assets Not Held at September 30, (in millions) (Level 1) (Level 2) (Level 3) NAV (1) Fair Value (2) 2017 Assets: Investments Available-for-sale $ 8 $ 73 $ 23 $ — $ — $ 104 Held-to-maturity securities — — — — 76 76 Trading: — Deferred compensation plan mutual funds 54 — — — — 54 Equity securities/Multi-asset mutual funds 353 — — — — 353 Debt securities / fixed income mutual funds 1 282 2 — — 285 Total trading 408 282 2 — — 692 Other investments: Equity method: Equity and fixed income mutual funds 314 — — 10 — 324 Other — — — 608 12 620 Total equity method 314 — — 618 12 944 Cost method investments — — — — 92 92 Carried interest — — — — 20 20 Total investments 730 355 25 618 200 1,928 Separate account assets 112,957 34,268 — — 713 147,938 Separate account collateral held under securities lending agreements: Equity securities 19,093 — — — — 19,093 Debt securities — 8,338 — — — 8,338 Total separate account collateral held under securities lending agreements 19,093 8,338 — — — 27,431 Investments of consolidated VIEs: Private / public equity (3) 5 3 114 69 83 274 Equity securities 338 — — — — 338 Debt securities — 350 — — — 350 Other — — — 64 — 64 Carried interest — — — — 260 260 Total investments of consolidated VIEs 343 353 114 133 343 1,286 Total $ 133,123 $ 43,314 $ 139 $ 751 $ 1,256 $ 178,583 Liabilities: Separate account collateral liabilities under securities lending agreements $ 19,093 $ 8,338 $ — $ — $ — $ 27,431 Other liabilities (4) — 7 228 — — 235 Total $ 19,093 $ 8,345 $ 228 $ — $ — $ 27,666 (1) Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient. (2) Amounts are comprised of investments held at cost or amortized cost, carried interest and certain equity method investments, which include sponsored investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value. (3) Level 3 amounts primarily include direct investments in private equity companies held by private equity funds. (4) Amounts primarily include contingent liabilities related to certain acquisitions (see Note 11, Commitments and Contingencies Assets and liabilities measured at fair value on a recurring basis and other assets not held at fair value December 31, 2016 (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 Assets Not Held at Fair Value (2) December 31, 2016 Assets: Investments Available-for-sale $ 7 $ 49 $ 24 $ — $ — $ 80 Held-to-maturity securities — — — — 51 51 Trading: Deferred compensation plan mutual funds 59 — — — — 59 Equity/Multi-asset mutual funds 308 — — — — 308 Debt securities / fixed income mutual funds 1 250 7 — — 258 Total trading 368 250 7 — — 625 Other investments: Equity method: Equity and fixed income mutual funds 323 — — 5 — 328 Other — — — 394 8 402 Total equity method 323 — — 399 8 730 Cost method investments — — — — 91 91 Carried interest — — — — 18 18 Total investments 698 299 31 399 168 1,595 Separate account assets 109,663 38,542 — — 884 149,089 Separate account collateral held under securities lending agreements: Equity securities 22,173 — — — — 22,173 Debt securities — 5,619 — — — 5,619 Total separate account collateral held under securities lending agreements 22,173 5,619 — — — 27,792 Investments of consolidated VIEs: Private / public equity (3) 3 2 112 89 79 285 Equity securities 278 — — — — 278 Debt securities — 274 — — — 274 Other — — — 63 — 63 Carried interest — — — — 108 108 Total investments of consolidated VIEs 281 276 112 152 187 1,008 Total $ 132,815 $ 44,736 $ 143 $ 551 $ 1,239 $ 179,484 Liabilities: Separate account collateral liabilities under securities lending agreements $ 22,173 $ 5,619 $ — $ — $ — $ 27,792 Other liabilities (4) — 7 115 — — 122 Total $ 22,173 $ 5,626 $ 115 $ — $ — $ 27,914 (1) Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient. (2) Amounts are comprised of investments held at cost or amortized cost, carried interest and certain equity method investments, which include sponsored investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value. (3) Level 3 amounts include direct investments in private equity companies held by private equity funds. (4) Amounts primarily include contingent liabilities related to certain acquisitions (see Note 11, Commitments and Contingencies |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis | Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2017 (in millions) June 30, 2017 Realized and Unrealized Gains (Losses) in Earnings and OCI Purchases Sales and Maturities Issuances and other Settlements (1) Transfers into Level 3 Transfers out of Level 3 September 30, 2017 Total Net Unrealized Gains (Losses) Included in Earnings (2) Assets: Investments: Available-for-sale securities (3) $ 23 $ — $ — $ — $ — $ — $ — $ 23 Trading 4 — — — — — (2 ) 2 Total investments 27 — — — — — (2 ) 25 Assets of consolidated VIEs - Private equity 113 1 — — — — — 114 $ 1 Total Level 3 assets $ 140 $ 1 $ — $ — $ — $ — $ (2 ) $ 139 Liabilities: Other liabilities (4) $ 218 $ (7 ) $ — $ — $ 3 $ — $ — $ 228 $ (7 ) (1 ) (2) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date. (3) Amounts include investments in CLOs. (4) Other liabilities amount includes contingent liabilities in connection with certain acquisitions. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2017 (in millions) December 31, 2016 Realized and Unrealized Gains (Losses) in Earnings and OCI Purchases Sales and Maturities Issuances and other Settlements (1) Transfers into Level 3 Transfers out of Level 3 (2) September 30, 2017 Total Net Unrealized Gains (Losses) Included in Earnings (3) Assets: Investments: Available-for-sale securities (4) $ 24 $ — $ 23 $ — $ — $ — $ (24 ) $ 23 Trading 7 — 4 — — — (9 ) 2 Total investments 31 — 27 — — — (33 ) 25 Assets of consolidated VIEs - Private equity 112 2 — — — — 114 $ 2 Total Level 3 assets $ 143 $ 2 $ 27 $ — $ — $ — $ (33 ) $ 139 Liabilities: Other liabilities (5) $ 115 $ (2 ) $ — $ — $ 111 $ — $ — $ 228 $ (2 ) (1) (2) (3) (4) Amounts include investments in CLOs. (5) Other liabilities amount includes contingent liabilities in connection with certain acquisitions. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2016 (in millions) June 30, 2016 Realized and Unrealized Gains (Losses) in Earnings and OCI Purchases Sales and Maturities Issuances and other Settlements Transfers into Level 3 Transfers out of Level 3 September 30, 2016 Total Net Unrealized Gains (Losses) Included in Earnings (1) Assets: Investments: Available-for-sale securities (2) $ — $ — $ 24 $ — $ — $ — $ — $ 24 Trading 3 — 2 — — — — 5 Total investments 3 — 26 — — — — 29 Assets of consolidated VIEs - Private equity 189 11 — (6 ) — — — 194 $ 11 Total Level 3 assets $ 192 $ 11 $ 26 $ (6 ) $ — $ — $ — $ 223 Liabilities: Other liabilities (3) $ 121 $ (2 ) $ — $ — $ (5 ) $ — $ — $ 118 $ (2 ) (1) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date. (2) Amounts include investments in CLOs. (3) Other liabilities amount includes contingent liabilities in connection with certain acquisitions. Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2016 December 31, Realized and Unrealized Gains (Losses) in Earnings Sales and Issuances and other Transfers into Transfers out of September 30, Total Net Unrealized Gains (Losses) Included in (in millions) 2015 and OCI Purchases Maturities Settlements (1) Level 3 Level 3 2016 Earnings (2) Assets: Investments Available-for-sale securities (3) $ 23 $ — $ 47 $ — $ — $ — $ (46 ) $ 24 Trading 2 — 6 — — — (3 ) 5 Total investments 25 — 53 — — — (49 ) 29 Assets of consolidated VIEs - Private equity 196 13 — (15 ) — — — 194 $ 13 Total Level 3 assets $ 221 $ 13 $ 53 $ (15 ) $ — $ — $ (49 ) $ 223 Liabilities: Other liabilities (4) $ 48 $ — $ — $ — $ 70 $ — $ — $ 118 $ — (1) ® (2) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date. (3) Amounts include investments in CLOs. (4) Other liabilities amount includes contingent liabilities in connection with certain acquisitions. |
Fair Value of Financial Assets and Financial Liabilities | Disclosures of Fair Value for Financial Instruments Not Held at Fair Value . At September 30, 2017 and December 31, 2016, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below: September 30, 2017 December 31, 2016 (in millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Fair Value Hierarchy Financial Assets: Cash and cash equivalents $ 6,165 $ 6,165 $ 6,091 $ 6,091 Level 1 (1) (2) Accounts receivable 3,183 3,183 2,350 2,350 Level 1 (3) Cash and cash equivalents of consolidated VIEs 82 82 84 84 Level 1 (1) (2) Other assets 62 62 25 25 Level 1 (1) (4) Financial Liabilities: Accounts payable and accrued liabilities 1,652 1,652 1,094 1,094 Level 1 (3) Long-term borrowings 5,000 5,248 4,915 5,165 Level 2 (5) (1) Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities. (2) At September 30, 2017 and December 31, 2016, approximately $137 million and $132 million, respectively, of money market funds were recorded within cash and cash equivalents on the condensed consolidated statements of financial condition. In addition, at September 30, 2017 and December 31, 2016, approximately $14 million and $13 million, respectively, of money market funds were recorded within cash and cash equivalents of consolidated VIEs. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund. (3) The carrying amounts of accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short-term nature. (4) Other assets primarily include restricted cash. (5) Long-term borrowings are recorded at amortized cost net of debt issuance costs. The fair value of the long-term borrowings, including the current portion of long-term borrowings, is estimated using market prices at the end of September 2017 and December 2016, respectively. See Note 10, Borrowings |
Investments in Certain Entities that Calculate Net Asset Value per Share | The following tables list information regarding all investments 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, 2017 (in millions) Ref Fair Value Total Unfunded Commitments Redemption Frequency Redemption Notice Period Equity method: (1) Hedge funds/funds of hedge funds (a) $ 249 $ 42 Daily/Monthly (19%) Quarterly (55%) N/R (26%) 1 – 90 days Private equity funds (b) 89 92 N/R N/R Real assets funds (c) 265 111 Quarterly (85%) N/R (15%) 60 days Other 15 13 Daily/Monthly (66%) N/R (34%) 3 – 5 days Consolidated VIEs: Private equity funds of funds (d) 69 20 N/R N/R Hedge fund (a) 23 — Quarterly 90 days Real assets funds (c) 41 54 N/R N/R Total $ 751 $ 332 December 31, 2016 (in millions) Ref Fair Value Total Unfunded Commitments Redemption Frequency Redemption Notice Period Equity method: (1) Hedge funds/funds of hedge funds (a) $ 237 $ 14 Daily/Monthly (21%) Quarterly (51%) N/R (28%) 1 – 90 days Private equity funds (b) 90 62 N/R N/R Real assets funds (c) 60 35 Quarterly (41%) N/R (59%) 60 days Other 12 9 Daily/Monthly (42%) N/R (58%) 3 – 5 days Consolidated VIEs: Private equity funds of funds (d) 89 16 N/R N/R Hedge fund (a) 36 — Quarterly 90 days Real assets funds (c) 27 21 N/R N/R Total $ 551 $ 157 N/R – not redeemable (1) Comprised of equity method investments, which include investments in investment companies, which account for their financial assets and most financial liabilities under fair value measures; therefore, the Company’s investment in such equity method investees approximates fair value. (a) This category includes hedge funds and funds of hedge funds that invest primarily in equities, fixed income securities, distressed credit, opportunistic and mortgage instruments and other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. It was estimated that the investments in the funds that are not subject to redemption will be liquidated over a weighted-average period of seven years at September 30, 2017 and approximately one year at December 31, 2016. (b) This category includes several private equity funds that initially invest in nonmarketable securities of private companies, which ultimately may become public in the future. The fair values of these investments have been estimated using capital accounts representing the Company’s ownership interest in the funds as well as other performance inputs. The Company’s investment in each fund is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying assets of the private equity funds. It was estimated that the investments in these funds will be liquidated over a weighted-average period of approximately five (c) This category includes several real assets funds that invest directly in real estate, real estate related assets and infrastructure. The fair values of the investments have been estimated using capital accounts representing the Company’s ownership interest in the funds. The Company’s investments that are not subject to redemption or are not currently redeemable are normally returned through distributions as a result of the liquidation of the underlying assets of the funds. It is estimated that the investments in these funds not subject to redemptions will be liquidated over a weighted-average period of approximately eight years at September 30, 2017 and six years at December 31, 2016. The total remaining unfunded commitments to other third-party funds were $165 million and $56 million at September 30, 2017 and December 31, 2016, respectively. The Company had contractual obligations to the consolidated funds of $136 million at September 30, 2017 and $56 million at December 31, 2016. (d) |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill Activity | Goodwill activity during the nine months ended September 30, 2017 was as follows: (in millions) December 31, 2016 $ 13,118 Acquisitions (1) 123 Goodwill adjustments related to Quellos (2) (15 ) September 30, 2017 $ 13,226 (1) Amount includes $91 million of goodwill related to the First Reserve Transaction, which expanded the Company’s energy and power infrastructure platform and $32 million of goodwill related to the Cachematrix Transaction, which enhanced the Company’s technology and cash management capabilities. The total consideration paid for these acquisitions was approximately $231 million, including $129 million of contingent consideration at fair value at time of close. (2) The decrease in goodwill during the nine months ended September 30, 2017 primarily resulted from a decline related to tax benefits realized from tax-deductible goodwill in excess of book goodwill from the acquisition of the fund-of-funds business of Quellos Group, LLC in October 2007 (the “Quellos Transaction”). Goodwill related to the Quellos Transaction will continue to be reduced in future periods by the amount of tax benefits realized from tax-deductible goodwill in excess of book goodwill from the Quellos Transaction. The balance of the Quellos tax-deductible goodwill in excess of book goodwill was approximately $176 million and $200 million at September 30, 2017 and December 31, 2016, respectively. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amounts of Identifiable Intangible Assets | The carrying amounts of identifiable intangible assets are summarized as follows: (in millions) Indefinite-lived Finite-lived Total December 31, 2016 $ 17,178 $ 185 $ 17,363 Amortization expense — (77 ) (77 ) Acquisitions (1) — 114 114 September 30, 2017 $ 17,178 $ 222 $ 17,400 (1) |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Carrying Value and Fair Value of Long-Term Borrowings | The carrying value and fair value of long-term borrowings estimated using market prices and foreign exchange rates at September 30, 2017 included the following: (in millions) Maturity Amount Unamortized Discount and Debt Issuance Costs Carrying Value Fair Value 5.00% Notes due 2019 $ 1,000 $ (1 ) $ 999 $ 1,067 4.25% Notes due 2021 750 (4 ) 746 802 3.375% Notes due 2022 750 (4 ) 746 781 3.50% Notes due 2024 1,000 (6 ) 994 1,044 1.25% Notes due 2025 828 (6 ) 822 846 3.20% Notes due 2027 700 (7 ) 693 708 Total Long-term Borrowings $ 5,028 $ (28 ) $ 5,000 $ 5,248 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Commitments of Annual Base Rental Payments under Operating Lease | Future minimum commitments of annual base rental payments under this operating lease are as follows: (in millions) Year Amount 2023 $ 34 2024 51 2025 51 2026 51 2027 51 Thereafter 1,007 Total $ 1,245 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restricted Stock and RSU Activity | Restricted Stock and RSUs. Restricted stock and restricted stock units (“RSUs”) activity for the nine months ended September 30, 2017 is summarized below. Outstanding at Restricted Stock and RSUs Weighted- Average Grant Date Fair Value December 31, 2016 2,987,588 $ 318.04 Granted 1,061,915 $ 377.36 Converted (1,363,701 ) $ 320.27 Forfeited (39,164 ) $ 338.57 September 30, 2017 (1) 2,646,638 $ 340.39 (1) At September 30, 2017, approximately 2.3 million awards are expected to vest and 0.3 million awards have vested but have not been converted. |
Performance-Based RSUs [Member] | |
Restricted Stock and RSU Activity | Performance-based RSU activity for the nine months ended September 30, 2017 is summarized below. Outstanding at Performance- Based RSUs Weighted- Average Grant Date Fair Value December 31, 2016 610,371 $ 315.65 Granted 294,584 $ 375.27 Forfeited (1,430 ) $ 296.12 September 30, 2017 903,525 $ 335.12 |
Market Performance-Based RSUs [Member] | |
Restricted Stock and RSU Activity | Market Performance-based RSUs. Market performance-based RSUs activity for the nine months ended September 30, 2017 is summarized below. Outstanding at Market Performance- Based RSUs Weighted- Average Grant Date Fair Value December 31, 2016 803,474 $ 151.20 Converted (517,138 ) $ 126.76 September 30, 2017 (1) 286,336 $ 195.33 (1) |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2017 and 2016: (in millions) Foreign currency translation adjustments (1) Other (2) Total For the Three Months Ended September 30, 2017 June 30, 2017 $ (579 ) $ 4 $ (575 ) Net other comprehensive income (loss) for the three months ended September 30, 2017 102 — 102 September 30, 2017 $ (477 ) $ 4 $ (473 ) For the Nine Months Ended September 30, 2017 December 31, 2016 $ (721 ) $ 5 $ (716 ) Net other comprehensive income (loss) for the nine months ended September 30, 2017 244 (1 ) 243 September 30, 2017 $ (477 ) $ 4 $ (473 ) (1) Amount for the three and nine months ended September 30, 2017 includes a loss from a net investment hedge of $18 million (net of a tax benefit of $11 million) and $56 million (net of a tax benefit of $33 million), respectively. (2) (in millions) Foreign currency translation adjustments (1) Other (2) Total For the Three Months Ended September 30, 2016 June 30, 2016 $ (565 ) $ 5 $ (560 ) Net other comprehensive income (loss) for the three months ended September 30, 2016 (38 ) — (38 ) September 30, 2016 $ (603 ) $ 5 $ (598 ) For the Nine Months Ended September 30, 2016 December 31, 2015 $ (452 ) $ 4 $ (448 ) Net other comprehensive income (loss) for the nine months ended September 30, 2016 (151 ) 1 (150 ) September 30, 2016 $ (603 ) $ 5 $ (598 ) ( 1) (2) |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Preferred Shares Authorized, Issued and Outstanding | Nonvoting Participating Preferred Stock . The Company’s preferred shares authorized, issued and outstanding consisted of the following: September 30, December 31, 2017 2016 Series A Shares authorized, $0.01 par value 20,000,000 20,000,000 Shares issued and outstanding — — Series B Shares authorized, $0.01 par value 150,000,000 150,000,000 Shares issued and outstanding (1) 823,188 823,188 Series C Shares authorized, $0.01 par value 6,000,000 6,000,000 Shares issued and outstanding (1) 246,522 763,660 Series D Shares authorized, $0.01 par value 20,000,000 20,000,000 Shares issued and outstanding — — (1) Shares held by PNC. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted EPS under Treasury Stock Method | The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2017 and 2016 under the treasury stock method: Three Months Ended Nine Months Ended September 30, September 30, (in millions, except shares and per share data) 2017 2016 2017 2016 Net income attributable to BlackRock $ 947 $ 875 $ 2,666 $ 2,321 Basic weighted-average shares outstanding 161,872,716 164,129,214 162,459,737 164,756,355 Dilutive effect of nonparticipating RSUs and stock options 1,900,830 2,127,384 1,829,305 2,004,557 Total diluted weighted-average shares outstanding 163,773,546 166,256,598 164,289,042 166,760,912 Basic earnings per share $ 5.85 $ 5.33 $ 16.41 $ 14.09 Diluted earnings per share $ 5.78 $ 5.26 $ 16.23 $ 13.92 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Investment Advisory, Administration Fees, Securities Lending Revenue and Performance Fees, Technology and Risk Management Revenue, Distribution Fees, and Advisory and Other Revenue | The following table illustrates investment advisory, administration fees, securities lending revenue and performance fees by product type, technology and risk management revenue, distribution fees, and advisory and other revenue for the three and nine months ended September 30, 2017 and 2016. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2017 2016 2017 2016 Equity $ 1,457 $ 1,284 $ 4,134 $ 3,746 Fixed income 749 695 2,153 1,975 Multi-asset 291 286 857 866 Alternatives 342 221 754 633 Cash management 144 118 408 340 Total investment advisory, administration fees, securities lending revenue and performance fees 2,983 2,604 8,306 7,560 Technology and risk management revenue 175 152 497 439 Distribution fees 5 10 17 32 Advisory and other revenue 70 71 202 234 Total revenue $ 3,233 $ 2,837 $ 9,022 $ 8,265 |
Total Revenue by Geographic Region | The following table illustrates total revenue for the three and nine months ended September 30, 2017 and 2016 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 (in millions) September 30, September 30, Revenue 2017 2016 2017 2016 Americas $ 2,126 $ 1,934 $ 6,077 $ 5,580 Europe 946 773 2,496 2,287 Asia-Pacific 161 130 449 398 Total revenue $ 3,233 $ 2,837 $ 9,022 $ 8,265 |
Schedule of Long-Lived Assets by Geographic Region | The following table illustrates long-lived assets that consist of goodwill and property and equipment at September 30, 2017 and December 31, 2016 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, Long-lived Assets 2017 2016 Americas $ 13,546 $ 13,424 Europe 166 163 Asia-Pacific 85 90 Total long-lived assets $ 13,797 $ 13,677 |
Business Overview - Additional
Business Overview - Additional Information (Detail) - PNC [Member] | Sep. 30, 2017 |
Related Party Transaction [Line Items] | |
Percentage of common stock of parent owned | 21.40% |
Percentage of capital stock of parent owned | 21.90% |
Significant Accounting Polici44
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | ||||||
Reduction of management fees | $ 0 | $ 17 | $ 6 | $ 42 | ||
Percentage of Yield Support waivers offset | 0.00% | 45.00% | ||||
Fair value of loaned securities | 24,700 | $ 24,700 | $ 25,700 | |||
Fair value of collateral held for loan securities | $ 27,431 | $ 27,431 | $ 27,792 | |||
Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Collateral cash and securities received in exchange of value of securities lent in order to reduce counterparty risk | 102.00% | 102.00% | ||||
Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Collateral cash and securities received in exchange of value of securities lent in order to reduce counterparty risk | 112.00% | 112.00% | ||||
Adjustments for New Accounting Pronouncement -ASU 2016-09 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Discrete income tax benefit for vested stock awards | $ 81 | |||||
Accounting Standards Update 2014-09 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Expected net gross up to annual revenue and expense | $ 1,000 |
Investments - Summary of Carryi
Investments - Summary of Carrying Value of Total Investments (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Available-for-sale investments | $ 104 | $ 80 |
Held-to-maturity investments | 76 | 51 |
Total trading investments | 692 | 625 |
Total Other Investments, Carrying Value | 1,056 | 839 |
Total investments | 1,928 | 1,595 |
Consolidated Sponsored Investment Funds [Member] | ||
Investment [Line Items] | ||
Total trading investments | 507 | 465 |
Other Equity and Debt Securities [Member] | ||
Investment [Line Items] | ||
Total trading investments | 131 | 101 |
Deferred Compensation Plan Fund [Member] | ||
Investment [Line Items] | ||
Total trading investments | 54 | 59 |
Consolidated Entities [Member] | Carried Interest [Member] | ||
Investment [Line Items] | ||
Total Other Investments, Carrying Value | 20 | 18 |
Equity Method Investments [Member] | ||
Investment [Line Items] | ||
Total Other Investments, Carrying Value | 944 | 730 |
Cost Method Investments [Member] | ||
Investment [Line Items] | ||
Total Other Investments, Carrying Value | $ 92 | $ 91 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | ||
Held-to-maturity investments | $ 76 | $ 51 |
Foreign government debt, after five years through ten years | 11 | |
Held-to-maturity investments, after ten years | 65 | |
Total trading investments | $ 692 | $ 625 |
PennyMac [Member] | ||
Investment [Line Items] | ||
Ownership percentage | 20.00% | 20.00% |
Shares and units | 16 | 16 |
Carrying value - equity method investment | $ 333 | $ 301 |
Fair value of equity method investments | 277 | 259 |
Consolidated Sponsored Investment Funds [Member] | ||
Investment [Line Items] | ||
Total trading investments | 507 | 465 |
Deferred Compensation Plan Fund [Member] | ||
Investment [Line Items] | ||
Total trading investments | 54 | 59 |
Equity and Debt Securities Held in Separate Investment Accounts [Member] | ||
Investment [Line Items] | ||
Total trading investments | 131 | 101 |
Consolidated Entities [Member] | Consolidated Sponsored Investment Funds [Member] | ||
Investment [Line Items] | ||
Trading securities, debt | 268 | 246 |
Trading securities, equity | $ 239 | $ 219 |
Investments - Summary of Cost a
Investments - Summary of Cost and Carrying Value of Trading Investments (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | ||
Trading investments, Cost | $ 638 | $ 589 |
Trading investments, Carrying Value | 692 | 625 |
Deferred Compensation Plan Fund [Member] | ||
Schedule of Investments [Line Items] | ||
Trading investments, Cost | 34 | 41 |
Trading investments, Carrying Value | 54 | 59 |
Equity Securities/Multi-Asset Mutual Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Trading investments, Cost | 323 | 290 |
Trading investments, Carrying Value | 353 | 308 |
Corporate Debt [Member] | ||
Schedule of Investments [Line Items] | ||
Trading investments, Cost | 160 | 128 |
Trading investments, Carrying Value | 162 | 128 |
Government Debt [Member] | ||
Schedule of Investments [Line Items] | ||
Trading investments, Cost | 59 | 60 |
Trading investments, Carrying Value | 60 | 60 |
Asset/Mortgage Backed Debt [Member] | ||
Schedule of Investments [Line Items] | ||
Trading investments, Cost | 62 | 70 |
Trading investments, Carrying Value | $ 63 | $ 70 |
Consolidated VREs Recorded in C
Consolidated VREs Recorded in Condensed Consolidated Statements of Financial Condition (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Consolidated Sponsored Investment Funds [Line Items] | ||||
Cash and cash equivalents | $ 6,165 | $ 6,091 | $ 5,454 | $ 6,083 |
Trading investments | 692 | 625 | ||
Other assets | 1,311 | 1,065 | ||
Other liabilities | (1,230) | (1,007) | ||
Noncontrolling interests ("NCI") | (55) | (52) | ||
Consolidated Voting Rights Entities [Member] | ||||
Consolidated Sponsored Investment Funds [Line Items] | ||||
Cash and cash equivalents | 73 | 53 | ||
Trading investments | 507 | 465 | ||
Other assets | 28 | 15 | ||
Other liabilities | (61) | (50) | ||
Noncontrolling interests ("NCI") | (68) | (39) | ||
BlackRock’s net interests in consolidated VREs | $ 479 | $ 444 |
Variable Interest Entities Refl
Variable Interest Entities Reflects adoption of ASU 2015-12 - Schedule of VIE Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 6,165 | $ 6,091 | $ 5,454 | $ 6,083 |
Investments | 1,928 | 1,595 | ||
Other assets | 1,311 | 1,065 | ||
Liabilities of consolidated VIEs | (190,150) | (190,833) | ||
Noncontrolling interests | (55) | (52) | ||
Consolidated Variable Interest Entities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 82 | 84 | ||
Investments | 1,286 | 1,008 | ||
Other assets | 46 | 63 | ||
Total investments and other assets | 1,332 | 1,071 | ||
Liabilities of consolidated VIEs | (319) | (216) | ||
Noncontrolling interests | (307) | (207) | ||
BlackRock's net interests in consolidated VIEs | $ 788 | $ 732 |
Variable Interest Entities Re50
Variable Interest Entities Reflects adoption of ASU 2015-12 - Schedule of Net Gain (Loss) Related to Consolidated VIEs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Variable Interest Entity [Line Items] | ||||
Nonoperating net gain (loss) on consolidated VIEs | $ 41 | $ 31 | $ 128 | $ 49 |
Net gain (loss) attributable to NCI on consolidated VIEs | 12 | 2 | 31 | (2) |
Consolidated Variable Interest Entities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Nonoperating net gain (loss) on consolidated VIEs | 29 | 19 | 95 | 34 |
Net gain (loss) attributable to NCI on consolidated VIEs | $ 10 | $ 1 | $ 28 | $ (2) |
Variable Interest Entities Re51
Variable Interest Entities Reflects adoption of ASU 2015-12 - Balances Relating to Variable Interest Entities in which BlackRock is Not Primary Beneficiary (Detail) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Sponsored investment products | $ 227,000,000 | $ 171,000,000 |
Advisory Fee Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Sponsored investment products | 15,000,000 | 9,000,000 |
Other Net Assets (Liabilities) [Member] | ||
Variable Interest Entity [Line Items] | ||
Sponsored investment products | (7,000,000) | (8,000,000) |
Maximum Risk of Loss [Member] | ||
Variable Interest Entity [Line Items] | ||
Sponsored investment products | $ 259,000,000 | $ 197,000,000 |
Variable Interest Entities Re52
Variable Interest Entities Reflects adoption of ASU 2015-12 - Additional Information (Detail) - USD ($) $ in Billions | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Sponsored Investment Products [Member] | ||
Variable Interest Entity [Line Items] | ||
Net assets of investments funds | $ 5 | $ 4 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale | $ 104 | $ 80 |
Total trading investments | 692 | 625 |
Separate account assets | 147,938 | 149,089 |
Fair value of collateral held for loan securities | 27,431 | 27,792 |
Equity Securities/Multi-Asset Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 353 | 308 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale | 104 | 80 |
Held-to-maturity securities | 76 | 51 |
Total trading investments | 692 | 625 |
Total equity method | 944 | 730 |
Cost method investments | 92 | 91 |
Carried interest | 20 | 18 |
Total investments | 1,928 | 1,595 |
Separate account assets | 147,938 | 149,089 |
Fair value of collateral held for loan securities | 27,431 | 27,792 |
Total investments of consolidated VIEs | 1,286 | 1,008 |
Total | 178,583 | 179,484 |
Separate account collateral liabilities under securities lending agreements | 27,431 | 27,792 |
Other liabilities | 235 | 122 |
Total liabilities measured at fair value | 27,666 | 27,914 |
Fair Value, Measurements, Recurring [Member] | Equity Securities/Multi-asset Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 353 | 308 |
Fair Value, Measurements, Recurring [Member] | Debt Securities/ Fixed Income Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 285 | 258 |
Fair Value, Measurements, Recurring [Member] | Private/ Public Equity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments of consolidated VIEs | 274 | 285 |
Fair Value, Measurements, Recurring [Member] | Equity And Fixed Income Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity method | 324 | 328 |
Fair Value, Measurements, Recurring [Member] | Other Types Of Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity method | 620 | 402 |
Total investments of consolidated VIEs | 64 | 63 |
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Plan Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 54 | 59 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale | 8 | 7 |
Total trading investments | 408 | 368 |
Total equity method | 314 | 323 |
Total investments | 730 | 698 |
Separate account assets | 112,957 | 109,663 |
Fair value of collateral held for loan securities | 19,093 | 22,173 |
Total investments of consolidated VIEs | 343 | 281 |
Total | 133,123 | 132,815 |
Separate account collateral liabilities under securities lending agreements | 19,093 | 22,173 |
Total liabilities measured at fair value | 19,093 | 22,173 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities/Multi-asset Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 353 | 308 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Debt Securities/ Fixed Income Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 1 | 1 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Private/ Public Equity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments of consolidated VIEs | 5 | 3 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity And Fixed Income Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity method | 314 | 323 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Deferred Compensation Plan Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 54 | 59 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale | 73 | 49 |
Total trading investments | 282 | 250 |
Total investments | 355 | 299 |
Separate account assets | 34,268 | 38,542 |
Fair value of collateral held for loan securities | 8,338 | 5,619 |
Total investments of consolidated VIEs | 353 | 276 |
Total | 43,314 | 44,736 |
Separate account collateral liabilities under securities lending agreements | 8,338 | 5,619 |
Other liabilities | 7 | 7 |
Total liabilities measured at fair value | 8,345 | 5,626 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Debt Securities/ Fixed Income Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 282 | 250 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Private/ Public Equity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments of consolidated VIEs | 3 | 2 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total available-for-sale | 23 | 24 |
Total trading investments | 2 | 7 |
Total investments | 25 | 31 |
Total investments of consolidated VIEs | 114 | 112 |
Total | 139 | 143 |
Other liabilities | 228 | 115 |
Total liabilities measured at fair value | 228 | 115 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Debt Securities/ Fixed Income Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total trading investments | 2 | 7 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Private/ Public Equity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments of consolidated VIEs | 114 | 112 |
Fair Value, Measurements, Recurring [Member] | Equity Securities/Multi-Asset Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of collateral held for loan securities | 19,093 | 22,173 |
Total investments of consolidated VIEs | 338 | 278 |
Fair Value, Measurements, Recurring [Member] | Equity Securities/Multi-Asset Mutual Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of collateral held for loan securities | 19,093 | 22,173 |
Total investments of consolidated VIEs | 338 | 278 |
Fair Value, Measurements, Recurring [Member] | Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of collateral held for loan securities | 8,338 | 5,619 |
Total investments of consolidated VIEs | 350 | 274 |
Fair Value, Measurements, Recurring [Member] | Debt Securities | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of collateral held for loan securities | 8,338 | 5,619 |
Total investments of consolidated VIEs | 350 | 274 |
Fair Value, Measurements, Recurring [Member] | Carried Interest [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments of consolidated VIEs | 260 | 108 |
Fair Value, Measurements, Recurring [Member] | Investments Measured at NAV [Member] | Investment in NAV [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity method | 618 | 399 |
Total investments | 618 | 399 |
Total investments of consolidated VIEs | 133 | 152 |
Total | 751 | 551 |
Fair Value, Measurements, Recurring [Member] | Investments Measured at NAV [Member] | Investment in NAV [Member] | Private/ Public Equity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments of consolidated VIEs | 69 | 89 |
Fair Value, Measurements, Recurring [Member] | Investments Measured at NAV [Member] | Investment in NAV [Member] | Equity And Fixed Income Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity method | 10 | 5 |
Fair Value, Measurements, Recurring [Member] | Investments Measured at NAV [Member] | Investment in NAV [Member] | Other Types Of Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity method | 608 | 394 |
Total investments of consolidated VIEs | 64 | 63 |
Fair Value, Measurements, Recurring [Member] | Other Assets Not Held at Fair Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held-to-maturity securities | 76 | 51 |
Total equity method | 12 | 8 |
Cost method investments | 92 | 91 |
Carried interest | 20 | 18 |
Total investments | 200 | 168 |
Separate account assets | 713 | 884 |
Total investments of consolidated VIEs | 343 | 187 |
Total | 1,256 | 1,239 |
Fair Value, Measurements, Recurring [Member] | Other Assets Not Held at Fair Value [Member] | Private/ Public Equity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments of consolidated VIEs | 83 | 79 |
Fair Value, Measurements, Recurring [Member] | Other Assets Not Held at Fair Value [Member] | Other Types Of Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity method | 12 | 8 |
Fair Value, Measurements, Recurring [Member] | Other Assets Not Held at Fair Value [Member] | Carried Interest [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments of consolidated VIEs | $ 260 | $ 108 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Significant Unobservable Inputs (Level 3) [Member] | Private/ Public Equity [Member] | Consolidated Variable Interest Entities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total investments | $ 114 | $ 112 |
Fair Value Disclosures - Change
Fair Value Disclosures - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value, beginning balance | $ 140 | $ 192 | $ 143 | $ 221 |
Realized and Unrealized Gains (Losses) in Earnings and OCI, Assets | 1 | 11 | 2 | 13 |
Purchases, Assets | 26 | 27 | 53 | |
Sales and Maturities, Assets | (6) | (15) | ||
Transfers out of Level 3, Assets | (2) | (33) | (49) | |
Assets measured at fair value, ending balance | 139 | 223 | 139 | 223 |
Available-for-sale Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value, beginning balance | 23 | 24 | 23 | |
Purchases, Assets | 24 | 23 | 47 | |
Transfers out of Level 3, Assets | (24) | (46) | ||
Assets measured at fair value, ending balance | 23 | 24 | 23 | 24 |
Consolidated Variable Interest Entities [Member] | Other Liabilities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value, beginning balance | 218 | 121 | 115 | 48 |
Realized and Unrealized Gains (Losses) in Earnings and OCI, Liabilities | (7) | (2) | (2) | |
Issuances and other Settlements, Liabilities | 3 | (5) | 111 | 70 |
Liabilities measured at fair value, ending balance | 228 | 118 | 228 | 118 |
Total Net Unrealized Gains (Losses) Included in Earnings | (7) | (2) | (2) | |
Consolidated Variable Interest Entities [Member] | Private/ Public Equity [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value, beginning balance | 113 | 189 | 112 | 196 |
Realized and Unrealized Gains (Losses) in Earnings and OCI, Assets | 1 | 11 | 2 | 13 |
Sales and Maturities, Assets | (6) | (15) | ||
Assets measured at fair value, ending balance | 114 | 194 | 114 | 194 |
Total Net Unrealized Gains (Losses) Included in Earnings | 1 | 11 | 2 | 13 |
Trading [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value, beginning balance | 4 | 3 | 7 | 2 |
Purchases, Assets | 2 | 4 | 6 | |
Transfers out of Level 3, Assets | (2) | (9) | (3) | |
Assets measured at fair value, ending balance | 2 | 5 | 2 | 5 |
Investments [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value, beginning balance | 27 | 3 | 31 | 25 |
Purchases, Assets | 26 | 27 | 53 | |
Transfers out of Level 3, Assets | (2) | (33) | (49) | |
Assets measured at fair value, ending balance | $ 25 | $ 29 | $ 25 | $ 29 |
Fair Value Disclosures - Chan56
Fair Value Disclosures - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Jul. 31, 2017 | Jun. 30, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Contingent liability included in issuance and other settlements | $ 129 | ||
Cachematrix Transaction [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Contingent liability included in issuance and other settlements | $ 9 | $ 9 | |
First Reserve Transaction [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Contingent liability included in issuance and other settlements | $ 125 | $ 120 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value of Financial Assets and Financial Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 6,165 | $ 6,091 | $ 5,454 | $ 6,083 |
Long-term borrowings | 5,000 | 4,915 | ||
Consolidated Variable Interest Entities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 82 | 84 | ||
Carrying Amount [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 6,165 | 6,091 | ||
Accounts receivable | 3,183 | 2,350 | ||
Other assets | 62 | 25 | ||
Accounts payable and accrued liabilities | 1,652 | 1,094 | ||
Carrying Amount [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term borrowings | 5,000 | 4,915 | ||
Carrying Amount [Member] | Consolidated Variable Interest Entities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 82 | 84 | ||
Estimated Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 6,165 | 6,091 | ||
Accounts receivable | 3,183 | 2,350 | ||
Other assets | 62 | 25 | ||
Accounts payable and accrued liabilities | 1,652 | 1,094 | ||
Estimated Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term borrowings | 5,248 | 5,165 | ||
Estimated Fair Value [Member] | Consolidated Variable Interest Entities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 82 | $ 84 |
Fair Value Disclosures - Fair58
Fair Value Disclosures - Fair Value of Financial Assets and Financial Liabilities (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 6,165 | $ 6,091 | $ 5,454 | $ 6,083 |
Money market valuation per share floor | $ 1 | |||
Money Market Funds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 137 | 132 | ||
Consolidated Variable Interest Entities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 82 | 84 | ||
Consolidated Variable Interest Entities [Member] | Money Market Funds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 14 | $ 13 |
Fair Value Disclosures - Invest
Fair Value Disclosures - Investments in Certain Entities Calculate Net Asset Value per Share (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 751 | $ 551 |
Total Unfunded Commitments | 332 | 157 |
Hedge Funds/Funds of Hedge Funds [Member] | Consolidated Variable Interest Entities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 23 | $ 36 |
Hedge Funds/Funds of Hedge Funds [Member] | Maximum [Member] | Consolidated Variable Interest Entities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period, days | 90 days | 90 days |
Real Assets Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total Unfunded Commitments | $ 165 | $ 56 |
Real Assets Funds [Member] | Consolidated Variable Interest Entities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 41 | 27 |
Total Unfunded Commitments | 54 | 21 |
Private Equity Funds Of Funds [Member] | Consolidated Variable Interest Entities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 69 | 89 |
Total Unfunded Commitments | 20 | 16 |
Equity Method Investments [Member] | Hedge Funds/Funds of Hedge Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 249 | 237 |
Total Unfunded Commitments | $ 42 | $ 14 |
Redemption Frequency (Daily) | 19.00% | 21.00% |
Redemption Frequency (Monthly) | 19.00% | 21.00% |
Redemption Frequency (Quarterly) | 55.00% | 51.00% |
Redemption Frequency (Not Redeemable) | 26.00% | 28.00% |
Equity Method Investments [Member] | Hedge Funds/Funds of Hedge Funds [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period, days | 1 day | 1 day |
Equity Method Investments [Member] | Hedge Funds/Funds of Hedge Funds [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period, days | 90 days | 90 days |
Equity Method Investments [Member] | Private Equity Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 89 | $ 90 |
Total Unfunded Commitments | 92 | 62 |
Equity Method Investments [Member] | Real Assets Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 265 | 60 |
Total Unfunded Commitments | $ 111 | $ 35 |
Redemption Frequency (Quarterly) | 85.00% | 41.00% |
Redemption Frequency (Not Redeemable) | 15.00% | 59.00% |
Redemption Notice Period, Not Redeemable | 60 days | 60 days |
Equity Method Investments [Member] | Other Types Of Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 15 | $ 12 |
Total Unfunded Commitments | $ 13 | $ 9 |
Redemption Frequency (Daily) | 66.00% | 42.00% |
Redemption Frequency (Monthly) | 66.00% | 42.00% |
Redemption Frequency (Not Redeemable) | 34.00% | 58.00% |
Equity Method Investments [Member] | Other Types Of Investments [Member] | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period, days | 3 days | 3 days |
Equity Method Investments [Member] | Other Types Of Investments [Member] | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period, days | 5 days | 5 days |
Fair Value Disclosures - Inve60
Fair Value Disclosures - Investments in Certain Entities Calculate Net Asset Value per Share (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total Unfunded Commitments | $ 332 | $ 157 |
Hedge Funds/Funds of Hedge Funds [Member] | Equity Method Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Liquidation period, years | 7 years | 1 year |
Total Unfunded Commitments | $ 42 | $ 14 |
Private Equity Funds [Member] | Equity Method Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Liquidation period, years | 5 years | 5 years |
Total Unfunded Commitments | $ 92 | $ 62 |
Real Assets Funds [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total Unfunded Commitments | 165 | 56 |
Amount of unfunded commitments contractually obligated to fund | 136 | 56 |
Real Assets Funds [Member] | Consolidated Variable Interest Entities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Total Unfunded Commitments | $ 54 | $ 21 |
Real Assets Funds [Member] | Equity Method Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption period | 8 years | 6 years |
Total Unfunded Commitments | $ 111 | $ 35 |
Private Equity Funds Of Funds [Member] | Consolidated Variable Interest Entities [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Liquidation period, years | 5 years | 5 years |
Total Unfunded Commitments | $ 20 | $ 16 |
Amount of unfunded commitments contractually obligated to fund | $ 24 | $ 24 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative [Line Items] | |||||
Derivative maximum risk of loss for credit protection | $ 17 | $ 17 | |||
Other General and Administration Expense [Member] | |||||
Derivative [Line Items] | |||||
Foreign currency translation gains (losses) | 29 | 58 | |||
Total Return Swaps [Member] | |||||
Derivative [Line Items] | |||||
Notional value | 538 | 538 | $ 572 | ||
Total Return Swaps [Member] | Nonoperating Income (Expense) [Member] | |||||
Derivative [Line Items] | |||||
Amount of gains (losses) recognized in income on derivative instruments | (26) | $ (25) | (90) | $ (33) | |
Interest Rate Swaps [Member] | |||||
Derivative [Line Items] | |||||
Notional value | 42 | ||||
Forward Foreign Currency Exchange Contracts [Member] | |||||
Derivative [Line Items] | |||||
Notional value | $ 1,300 | $ 1,300 | $ 107 |
Goodwill - Goodwill Activity (D
Goodwill - Goodwill Activity (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill Roll Forward | |
Beginning balance | $ 13,118 |
Acquisitions | 123 |
Goodwill adjustment related to Quellos | (15) |
Ending balance | $ 13,226 |
Goodwill - Goodwill Activity (P
Goodwill - Goodwill Activity (Parenthetical) (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Jul. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||||
Acquisitions | $ 123 | |||
Contingent consideration at fair value | $ 129 | |||
Total consideration paid for acquisitions | 231 | |||
Excess of tax goodwill over book goodwill | 176 | $ 200 | ||
First Reserve Transaction [Member] | ||||
Goodwill [Line Items] | ||||
Acquisitions | 91 | |||
Contingent consideration at fair value | $ 125 | $ 120 | ||
Cachematrix Transaction [Member] | ||||
Goodwill [Line Items] | ||||
Acquisitions | 32 | |||
Contingent consideration at fair value | $ 9 | $ 9 |
Intangible Assets - Carrying Am
Intangible Assets - Carrying Amounts of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Indefinite-lived intangible assets, Beginning balance | $ 17,178 | |||
Indefinite-lived intangible assets, Ending balance | $ 17,178 | 17,178 | ||
Finite-lived intangible assets, Beginning balance | 185 | |||
Finite-lived intangible assets, amortization expense | (27) | $ (25) | (77) | $ (75) |
Finite-lived intangible assets, acquisitions | 114 | |||
Finite-lived intangible assets, Ending balance | 222 | 222 | ||
Intangible assets, Beginning balance | 17,363 | |||
Intangible assets, acquisitions | 114 | |||
Intangible assets, Ending balance | $ 17,400 | $ 17,400 |
Intangible Assets - Carrying 65
Intangible Assets - Carrying Amounts of Identifiable Intangible Assets (Parenthetical) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Schedule Of Intangible Assets [Line Items] | |
Finite-lived intangible assets, acquisition | $ 114 |
First Reserve Transaction [Member] | |
Schedule Of Intangible Assets [Line Items] | |
Finite-lived intangible assets, acquisition | $ 110 |
Acquired finite-lived intangible assets weighted-average useful life | 9 years |
Cachematrix Transaction [Member] | |
Schedule Of Intangible Assets [Line Items] | |
Finite-lived intangible assets, acquisition | $ 4 |
Acquired finite-lived intangible assets weighted-average useful life | 10 years |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||||
Borrowings | $ 5,000,000,000 | $ 5,000,000,000 | $ 4,915,000,000 | |||
Fair Value | 5,248,000,000 | 5,248,000,000 | $ 5,200,000,000 | |||
Amount of debt issued | $ 5,028,000,000 | 5,028,000,000 | ||||
Repayment of notes | 700,000,000 | |||||
Unsecured Debt 2027 Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount of debt issued | $ 700,000,000 | $ 700,000,000 | ||||
Interest rate | 3.20% | 3.20% | ||||
Senior unsecured notes maturity date | Mar. 15, 2027 | |||||
Approximate annual interest expense | $ 22,000,000 | |||||
Debt instrument, payment terms | Interest is payable semi-annually on March 15 and September 15 of each year, commencing September 15, 2017 | |||||
Commercial Paper [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount available under facility | $ 4,000,000,000 | 4,000,000,000 | ||||
Amount outstanding under credit facility | 0 | 0 | ||||
2017 Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured revolving credit facility | 4,000,000,000 | 4,000,000,000 | ||||
Additional amount available, subject to lender credit approval | 1,000,000,000 | |||||
Maximum amount available under facility | 5,000,000,000 | 5,000,000,000 | ||||
Amount outstanding under credit facility | $ 0 | $ 0 | ||||
Extended debt instrument maturity date | 2022-04 | |||||
Line of credit facility, covenant terms | The 2017 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 | |||||
Line of credit facility, covenant compliance | satisfied with a ratio of less than 1 to 1 | |||||
6.25% Notes due 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.25% | 6.25% | ||||
Repayment of notes | $ 700,000,000 | |||||
Long-term debt, maturity date | 2017-09 |
Borrowings - Carrying Value and
Borrowings - Carrying Value and Fair Value of Long-Term Borrowings (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Maturity Amount | $ 5,028 | |
Unamortized Discount and Debt Issuance Costs | (28) | |
Carrying Value | 5,000 | $ 4,915 |
Fair Value | 5,248 | $ 5,200 |
5.00% Notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Amount | 1,000 | |
Unamortized Discount and Debt Issuance Costs | (1) | |
Carrying Value | 999 | |
Fair Value | 1,067 | |
4.25% Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Amount | 750 | |
Unamortized Discount and Debt Issuance Costs | (4) | |
Carrying Value | 746 | |
Fair Value | 802 | |
3.375% Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Amount | 750 | |
Unamortized Discount and Debt Issuance Costs | (4) | |
Carrying Value | 746 | |
Fair Value | 781 | |
3.50% Notes due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Amount | 1,000 | |
Unamortized Discount and Debt Issuance Costs | (6) | |
Carrying Value | 994 | |
Fair Value | 1,044 | |
1.25% Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Amount | 828 | |
Unamortized Discount and Debt Issuance Costs | (6) | |
Carrying Value | 822 | |
Fair Value | 846 | |
3.20% Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Amount | 700 | |
Unamortized Discount and Debt Issuance Costs | (7) | |
Carrying Value | 693 | |
Fair Value | $ 708 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Apr. 05, 2017USD ($) | Mar. 16, 2016Person | May 31, 2017ft² | Sep. 30, 2017USD ($) | Jul. 31, 2017USD ($) | Jun. 30, 2017USD ($) |
Loss Contingencies [Line Items] | ||||||
Various capital commitments to fund sponsored investment funds, including funds of private equity funds, real assets funds, opportunistic funds and distressed credit funds | $ 328 | |||||
Contingent consideration at fair value | $ 129 | |||||
Derivative maximum risk of loss for credit protection | 17 | |||||
Number of former tenants suing BlackRock Parties | Person | 3 | |||||
Securities lending loan balances indemnified | 197,600 | |||||
Collateral for indemnified securities | $ 210,600 | |||||
Employee 401(k) Plan [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Description of claim sought by former employee under lawsuit complaint | While the complaint does not contain any specific amount in alleged damages, it claims that the purported underperformance and hidden fees cost Plan participants more than $60 million. | |||||
Employee 401(k) Plan [Member] | Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Purported underperformance and hidden fees cost | $ 60 | |||||
Other Liabilities [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Contingent consideration at fair value | $ 228 | |||||
First Reserve Transaction [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Contingent consideration at fair value | $ 125 | $ 120 | ||||
Operating Lease [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Area of office space | ft² | 847,000 | |||||
Operating leases, term of contract | 20 years | |||||
Expected lease commencement date | May 31, 2023 |
Commitments and Contingencies69
Commitments and Contingencies - Future Minimum Commitments of Annual Base Rental Payments under Operating Lease (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,023 | $ 34 |
2,024 | 51 |
2,025 | 51 |
2,026 | 51 |
2,027 | 51 |
Thereafter | 1,007 |
Total operating lease minimum commitments | $ 1,245 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and RSU Activity (Detail) - $ / shares | 1 Months Ended | 9 Months Ended |
Jan. 31, 2017 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock and RSUs, beginning of period | 2,987,588 | 2,987,588 |
Restricted Stock and RSUs, Granted | 1,061,915 | |
Restricted Stock and RSUs, Converted | (1,363,701) | |
Restricted Stock and RSUs, Forfeited | (39,164) | |
Restricted Stock and RSUs, end of period | 2,646,638 | |
Weighted-Average Grant Date Fair Value, beginning of period | $ 318.04 | $ 318.04 |
Weighted-Average Grant Date Fair Value, Granted | 377.36 | |
Weighted-Average Grant Date Fair Value, Converted | 320.27 | |
Weighted-Average Grant Date Fair Value, Forfeited | 338.57 | |
Weighted-Average Grant Date Fair Value, end of period | $ 340.39 | |
Performance-Based RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock and RSUs, beginning of period | 610,371 | 610,371 |
Restricted Stock and RSUs, Granted | 293,385 | 294,584 |
Restricted Stock and RSUs, Forfeited | (1,430) | |
Restricted Stock and RSUs, end of period | 903,525 | |
Weighted-Average Grant Date Fair Value, beginning of period | $ 315.65 | $ 315.65 |
Weighted-Average Grant Date Fair Value, Granted | 375.27 | |
Weighted-Average Grant Date Fair Value, Forfeited | 296.12 | |
Weighted-Average Grant Date Fair Value, end of period | $ 335.12 | |
Market Performance-Based RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock and RSUs, beginning of period | 803,474 | 803,474 |
Restricted Stock and RSUs, Converted | (517,138) | |
Restricted Stock and RSUs, end of period | 286,336 | |
Weighted-Average Grant Date Fair Value, beginning of period | $ 151.20 | $ 151.20 |
Weighted-Average Grant Date Fair Value, Converted | 126.76 | |
Weighted-Average Grant Date Fair Value, end of period | $ 195.33 |
Stock-Based Compensation - Re71
Stock-Based Compensation - Restricted Stock and RSU Activity (Parenthetical) (Detail) shares in Millions | 9 Months Ended | ||
Sep. 30, 2017Trancheshares | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards expected to vest | 2.3 | ||
Awards vested, not converted | 0.3 | ||
Market Performance-Based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation awards expected to vest | 0.3 | ||
Share price appreciation targets | 15.00% | 25.00% | 35.00% |
Restricted stock units vesting period, years | 6 years | 6 years | 6 years |
Number of tranches | Tranche | 3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock and RSUs, Granted | 1,061,915 | |||||
Fair value of RSUs/restricted stock granted to employees | $ 401 | |||||
RSUs/Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock and RSUs, Granted | 699,991 | |||||
Restricted stock units vesting period, years | 3 years | |||||
Awards to employees cliff vesting | 277,313 | |||||
RSUs to employees that cliff vest, percentage | 100.00% | |||||
RSUs to employees that cliff vest, date | Jan. 31, 2020 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Intrinsic value of outstanding RSUs | $ 1,200 | |||||
Stock price | $ 447.09 | |||||
Unrecognized stock-based compensation expense | $ 351 | |||||
Remaining weighted-average period | 1 year 1 month 7 days | |||||
Performance-Based RSUs [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock and RSUs, Granted | 293,385 | 294,584 | ||||
Restricted stock units vesting period, years | 3 years | |||||
Awards to employees cliff vesting | 293,385 | |||||
RSUs to employees that cliff vest, percentage | 100.00% | |||||
RSUs to employees that cliff vest, date | Jan. 31, 2020 | |||||
Intrinsic value of outstanding RSUs | $ 404 | |||||
Stock price | $ 447.09 | |||||
Unrecognized stock-based compensation expense | $ 137 | |||||
Remaining weighted-average period | 1 year 4 months 25 days | |||||
Fair value of RSUs/restricted stock granted to employees | $ 111 | |||||
Market Performance-Based RSUs [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units vesting period, years | 6 years | 6 years | 6 years | |||
Intrinsic value of outstanding RSUs | $ 128 | |||||
Stock price | $ 447.09 | |||||
Unrecognized stock-based compensation expense | $ 4 | |||||
Market Performance-Based RSUs [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Remaining weighted-average period | 1 year | |||||
Long-Term Incentive Plans Funded by PNC [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares surrendered | 3,800,000 | |||||
Number of additional shares surrendered | 517,138 | |||||
Remaining shares committed by PNC for long-term incentive awards | 200,000 | |||||
Long-Term Incentive Plans Funded by PNC [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares committed to fund long-term incentive plans | 4,000,000 |
Net Capital Requirements - Addi
Net Capital Requirements - Additional Information (Detail) $ in Billions | Sep. 30, 2017USD ($) |
Regulatory Capital Requirements [Abstract] | |
Net capital requirement in certain regulated subsidiaries | $ 1.7 |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 29,150 | $ 28,580 | ||
Other comprehensive income (loss) | $ 102 | $ (38) | 243 | (150) |
Balance | 30,097 | 28,961 | 30,097 | 28,961 |
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (579) | (565) | (721) | (452) |
Other comprehensive income (loss) | 102 | (38) | 244 | (151) |
Balance | (477) | (603) | (477) | (603) |
Other [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 4 | 5 | 5 | 4 |
Other comprehensive income (loss) | (1) | 1 | ||
Balance | 4 | 5 | 4 | 5 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (575) | (560) | (716) | (448) |
Other comprehensive income (loss) | 102 | (38) | 243 | (150) |
Balance | $ (473) | $ (598) | $ (473) | $ (598) |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract] | ||||
Loss from net investment hedging, net of tax | $ (18) | $ (5) | $ (56) | $ (16) |
Loss from net investment hedging, tax | $ (11) | $ (4) | $ (33) | $ (10) |
Capital Stock - Preferred Share
Capital Stock - Preferred Shares Authorized, Issued and Outstanding (Detail) - shares | Sep. 30, 2017 | Dec. 31, 2016 |
Series A Nonvoting Participating Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares authorized, $0.01 par value | 20,000,000 | 20,000,000 |
Shares issued | 0 | 0 |
Shares outstanding | 0 | 0 |
Series B Nonvoting Participating Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares authorized, $0.01 par value | 150,000,000 | 150,000,000 |
Shares issued | 823,188 | 823,188 |
Shares outstanding | 823,188 | 823,188 |
Series C Non-voting Participating Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares authorized, $0.01 par value | 6,000,000 | 6,000,000 |
Shares issued | 246,522 | 763,660 |
Shares outstanding | 246,522 | 763,660 |
Series D Nonvoting Participating Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares authorized, $0.01 par value | 20,000,000 | 20,000,000 |
Shares issued | 0 | 0 |
Shares outstanding | 0 | 0 |
Capital Stock - Preferred Sha77
Capital Stock - Preferred Shares Authorized, Issued and Outstanding (Parenthetical) (Detail) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Series A Nonvoting Participating Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Series B Nonvoting Participating Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, par value | 0.01 | 0.01 |
Series C Non-voting Participating Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, par value | 0.01 | 0.01 |
Series D Nonvoting Participating Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Capitalization, Equity [Line Items] | |||
Common shares repurchased | 2,100,000 | ||
Common shares repurchased, value | $ 825 | $ 850 | |
Shares authorized to be repurchased | 6,900,000 | ||
Series C Non-voting Participating Preferred Stock [Member] | PNC [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Surrender of share of series non- voting preferred stock | 517,138 |
Restructuring Charge - Addition
Restructuring Charge - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax restructuring charge | $ 76,000,000 | $ 76,000,000 | |
After-tax restructuring charge | 53,000,000 | ||
Restructuring liability | $ 0 | ||
Employee Severance [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax restructuring charge | 44,000,000 | ||
Accelerated Amortization of Deferred Cash and Equity Compensation Awards [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax restructuring charge | $ 32,000,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted EPS under Treasury Stock Method (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to BlackRock | $ 947 | $ 875 | $ 2,666 | $ 2,321 |
Basic weighted-average shares outstanding | 161,872,716 | 164,129,214 | 162,459,737 | 164,756,355 |
Dilutive effect of nonparticipating RSUs and stock options | 1,900,830 | 2,127,384 | 1,829,305 | 2,004,557 |
Total diluted weighted-average shares outstanding | 163,773,546 | 166,256,598 | 164,289,042 | 166,760,912 |
Basic earnings per share | $ 5.85 | $ 5.33 | $ 16.41 | $ 14.09 |
Diluted earnings per share | $ 5.78 | $ 5.26 | $ 16.23 | $ 13.92 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of business segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Investment Advisory, Administration Fees, Securities Lending Revenue and Performance Fees, Technology and Risk Management Revenue, Distribution Fees, and Advisory and Other Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total investment advisory, administration fees, securities lending revenue and performance fees | $ 2,983 | $ 2,604 | $ 8,306 | $ 7,560 |
Technology and risk management revenue | 175 | 152 | 497 | 439 |
Distribution fees | 5 | 10 | 17 | 32 |
Advisory and other revenue | 70 | 71 | 202 | 234 |
Total revenue | 3,233 | 2,837 | 9,022 | 8,265 |
Equity [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total investment advisory, administration fees, securities lending revenue and performance fees | 1,457 | 1,284 | 4,134 | 3,746 |
Fixed Income [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total investment advisory, administration fees, securities lending revenue and performance fees | 749 | 695 | 2,153 | 1,975 |
Multi-asset [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total investment advisory, administration fees, securities lending revenue and performance fees | 291 | 286 | 857 | 866 |
Alternatives [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total investment advisory, administration fees, securities lending revenue and performance fees | 342 | 221 | 754 | 633 |
Cash Management [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total investment advisory, administration fees, securities lending revenue and performance fees | $ 144 | $ 118 | $ 408 | $ 340 |
Segment Information - Total Rev
Segment Information - Total Revenue by Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 3,233 | $ 2,837 | $ 9,022 | $ 8,265 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,126 | 1,934 | 6,077 | 5,580 |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 946 | 773 | 2,496 | 2,287 |
Asia-Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 161 | $ 130 | $ 449 | $ 398 |
Segment Information - Schedul84
Segment Information - Schedule of Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 13,797 | $ 13,677 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 13,546 | 13,424 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 166 | 163 |
Asia-Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 85 | $ 90 |