BLACKROCK INC., 10-Q filed on 11/5/2020
Quarterly Report
v3.20.2
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2020
Oct. 31, 2020
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2020  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Entity Registrant Name BlackRock, Inc.  
Entity Central Index Key 0001364742  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Shell Company false  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   152,510,707
Entity Current Reporting Status Yes  
Entity File Number 001-33099  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 32-0174431  
Entity Address, Address Line One 55 East 52nd Street  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10055  
City Area Code 212  
Local Phone Number 810-5300  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
Common Stock, $.01 Par Value [Member]    
Document Information [Line Items]    
Trading Symbol BLK  
Title of 12(b) Security Common Stock, $.01 par value  
Security Exchange Name NYSE  
1.250% Notes due 2025 [Member]    
Document Information [Line Items]    
Trading Symbol BLK25  
Title of 12(b) Security 1.250% Notes due 2025  
Security Exchange Name NYSE  
v3.20.2
Condensed Consolidated Statements of Financial Condition - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Assets    
Cash and cash equivalents [1] $ 6,507 $ 4,829
Accounts receivable 3,706 3,179
Investments [1] 6,307 5,489
Separate account assets 95,994 102,844
Separate account collateral held under securities lending agreements 15,137 15,466
Property and equipment (net of accumulated depreciation of $1,040 and $880 at September 30, 2020 and December 31, 2019, respectively) 693 715
Intangible assets (net of accumulated amortization of $264 and $185 at September 30, 2020 and December 31, 2019, respectively) 18,290 18,369
Goodwill 14,554 14,562
Other assets [1] 3,930 3,169
Total assets 165,118 168,622
Liabilities    
Accrued compensation and benefits 1,847 2,057
Accounts payable and accrued liabilities 988 1,167
Borrowings 7,227 4,955
Separate account liabilities 95,994 102,844
Separate account collateral liabilities under securities lending agreements 15,137 15,466
Deferred income tax liabilities 3,742 3,734
Other liabilities [1] 4,167 3,470
Total liabilities 129,102 133,693
Commitments and contingencies (Note 15)
Temporary equity    
Redeemable noncontrolling interests 2,084 1,316
Permanent Equity    
Common stock, $0.01 par value; Shares authorized: 500,000,000 at September 30, 2020 and December 31, 2019; Shares issued: 172,075,373 and 171,252,185 at September 30, 2020 and December 31, 2019, respectively; Shares outstanding: 152,496,403 and 154,375,780 at September 30, 2020 and December 31, 2019, respectively 2 2
Preferred stock (Note 20) 0 0
Additional paid-in capital 19,150 19,186
Retained earnings 23,340 21,662
Accumulated other comprehensive loss (601) (571)
Treasury stock, common, at cost (19,578,970 and 16,876,405 shares held at September 30, 2020 and December 31, 2019, respectively) 8,018 6,732
Total BlackRock, Inc. stockholders’ equity 33,873 33,547
Nonredeemable noncontrolling interests 59 66
Total permanent equity 33,932 33,613
Total liabilities, temporary equity and permanent equity $ 165,118 $ 168,622
[1] At September 30, 2020, cash and cash equivalents, investments, other assets and other liabilities include $186 million, $3,882 million, $84 million, and $798 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2019, cash and cash equivalents, investments, other assets and other liabilities include $131 million, $3,301 million, $68 million, and $820 million, respectively, related to consolidated VIEs.
v3.20.2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Property and equipment, accumulated depreciation $ 1,040 $ 880
Intangible assets, accumulated amortization $ 264 $ 185
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares issued 172,075,373 171,252,185
Common stock, shares outstanding 152,496,403 154,375,780
Treasury stock, common shares 19,578,970 16,876,405
Cash and cash equivalents [1] $ 6,507 $ 4,829
Investments [1] 6,307 5,489
Other assets [1] 3,930 3,169
Other liabilities [1] 4,167 3,470
Consolidated Variable Interest Entities [Member]    
Cash and cash equivalents 186 131
Investments 3,882 3,301
Other assets 84 68
Other liabilities $ 798 $ 820
[1] At September 30, 2020, cash and cash equivalents, investments, other assets and other liabilities include $186 million, $3,882 million, $84 million, and $798 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2019, cash and cash equivalents, investments, other assets and other liabilities include $131 million, $3,301 million, $68 million, and $820 million, respectively, related to consolidated VIEs.
v3.20.2
Condensed Consolidated Statements of Income - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenue        
Total revenue $ 4,369 $ 3,692 $ 11,727 $ 10,562
Expense        
Employee compensation and benefits 1,411 1,111 3,700 3,258
Distribution and servicing costs 456 427 1,330 1,247
Direct fund expense 257 239 780 733
General and administration 461 385 1,991 1,243
Amortization of intangible assets 27 28 79 68
Total expense 2,612 2,190 7,880 6,549
Operating income 1,757 1,502 3,847 4,013
Nonoperating income (expense)        
Net gain (loss) on investments 269 (7) 627 224
Interest and dividend income 9 19 34 68
Interest expense (54) (54) (151) (152)
Total nonoperating income (expense) 224 (42) 510 140
Income before income taxes 1,981 1,460 4,357 4,153
Income tax expense (benefit) 464 341 811 961
Net income 1,517 1,119 3,546 3,192
Net income (loss) attributable to noncontrolling interests 153   162 17
Net income attributable to BlackRock, Inc. $ 1,364 $ 1,119 $ 3,384 $ 3,175
Earnings per share attributable to BlackRock, Inc. common stockholders:        
Basic $ 8.94 $ 7.21 $ 22.00 $ 20.31
Diluted $ 8.87 $ 7.15 $ 21.84 $ 20.17
Weighted-average common shares outstanding:        
Basic 152,488,073 155,280,877 153,816,544 156,290,212
Diluted 153,742,264 156,447,387 154,959,812 157,385,956
Investment Advisory, Administration Fees and Securities Lending Revenue [Member]        
Revenue        
Total revenue $ 3,225 $ 2,980 $ 9,246 $ 8,688
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Related Parties [Member]        
Revenue        
Total revenue 2,329 2,105 6,556 6,155
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Other Third Parties [Member]        
Revenue        
Total revenue 896 875 2,690 2,533
Investment Advisory Performance Fees [Member]        
Revenue        
Total revenue 532 121 685 211
Technology Services Revenue [Member]        
Revenue        
Total revenue 282 259 834 700
Distribution Fees [Member]        
Revenue        
Total revenue 288 270 817 799
Advisory and Other Revenue [Member]        
Revenue        
Total revenue $ 42 $ 62 $ 145 $ 164
v3.20.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 1,517 $ 1,119 $ 3,546 $ 3,192
Other comprehensive income (loss):        
Foreign currency translation adjustments [1] 180 (120) (30) (93)
Comprehensive income (loss) 1,697 999 3,516 3,099
Less: Comprehensive income (loss) attributable to noncontrolling interests 153   162 17
Comprehensive income attributable to BlackRock, Inc. $ 1,544 $ 999 $ 3,354 $ 3,082
[1] Amounts for the three months ended September 30, 2020 and 2019 include a loss from a net investment hedge of $26 million (net of tax benefit of $8 million) and a gain of $25 million (net of tax expense of $8 million), respectively. Amounts for the nine months ended September 30, 2020 and 2019 include a loss from a net investment hedge of $27 million (net of tax benefit of $8 million) and a gain of $28 million (net of tax expense of $9 million), respectively.
v3.20.2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]        
Gain (loss) from net investment hedging, net of tax $ (26) $ 25 $ (27) $ 28
Gain (loss) from net investment hedging, tax (expense) benefit $ 8 $ (8) $ 8 $ (9)
v3.20.2
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, 2018 $ 32,433 $ 19,170 [1] $ 19,282 $ (691) $ (5,387) $ 32,374 $ 59 $ 1,107
Net income 3,175   3,175     3,175   17
Dividends declared (1,584)   (1,584)     (1,584)    
Stock-based compensation 427 427 [1]       427    
PNC preferred stock capital contribution 60 60 [1]       60    
Retirement of preferred stock (60) (60) [1]       (60)    
Issuance of common shares related to employee stock transactions 12 (537) [1]     549 12    
Employee tax withholdings related to employee stock transactions (238)       (238) (238)    
Shares repurchased (1,666)       (1,666) (1,666)    
Subscriptions (redemptions/distributions) — noncontrolling interest holders 1           1 906
Net consolidations (deconsolidations) of sponsored investment funds               (893)
Other comprehensive income (loss) (93)     (93)   (93)    
Balance at Sep. 30, 2019 32,467 19,060 [1],[2] 20,873 (784) (6,742) 32,407 60 1,137
Balance at Jun. 30, 2019 31,950 18,949 [2] 20,267 (664) (6,659) 31,893 57 710
Net income 1,119   1,119     1,119    
Dividends declared (513)   (513)     (513)    
Stock-based compensation 133 133 [2]       133    
Issuance of common shares related to employee stock transactions 4 (22) [2]     26 4    
Employee tax withholdings related to employee stock transactions (9)       (9) (9)    
Shares repurchased (100)       (100) (100)    
Subscriptions (redemptions/distributions) — noncontrolling interest holders               463
Net consolidations (deconsolidations) of sponsored investment funds 3           3 (36)
Other comprehensive income (loss) (120)     (120)   (120)    
Balance at Sep. 30, 2019 32,467 19,060 [1],[2] 20,873 (784) (6,742) 32,407 60 1,137
Balance at Dec. 31, 2019 33,613 19,188 [3] 21,662 (571) (6,732) 33,547 66 1,316
Net income 3,382   3,384     3,384 (2) 164
Dividends declared (1,706)   (1,706)     (1,706)    
Stock-based compensation 458 458 [3]       458    
Issuance of common shares related to employee stock transactions 12 (494) [3]     506 12    
Employee tax withholdings related to employee stock transactions (280)       (280) (280)    
Shares repurchased (1,512)       (1,512) (1,512)    
Subscriptions (redemptions/distributions) — noncontrolling interest holders (5)           (5) 1,363
Net consolidations (deconsolidations) of sponsored investment funds               (759)
Other comprehensive income (loss) (30)     (30)   (30)    
Balance at Sep. 30, 2020 33,932 19,152 [3],[4] 23,340 (601) (8,018) 33,873 59 2,084
Balance at Jun. 30, 2020 32,786 19,009 [4] 22,532 (781) (8,030) 32,730 56 1,248
Net income 1,362   1,364     1,364 (2) 155
Dividends declared (556)   (556)     (556)    
Stock-based compensation 160 160 [4]       160    
Issuance of common shares related to employee stock transactions 5 (17) [4]     22 5    
Employee tax withholdings related to employee stock transactions (10)       (10) (10)    
Subscriptions (redemptions/distributions) — noncontrolling interest holders 5           5 548
Net consolidations (deconsolidations) of sponsored investment funds               133
Other comprehensive income (loss) 180     180   180    
Balance at Sep. 30, 2020 $ 33,932 $ 19,152 [3],[4] $ 23,340 $ (601) $ (8,018) $ 33,873 $ 59 $ 2,084
[1] Amounts include $2 million of common stock at both September 30, 2019 and December 31, 2018.
[2] Amounts include $2 million of common stock at both September 30, 2019 and June 30, 2019.
[3] Amounts include $2 million of common stock at both September 30, 2020 and December 31, 2019.
[4] Amounts include $2 million of common stock at both September 30, 2020 and June 30, 2020.
v3.20.2
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Additional Paid-in Capital, value of stock $ 33,932 $ 32,467 $ 33,932 $ 32,467 $ 32,786 $ 33,613 $ 31,950 $ 32,433
Common Stock [Member]                
Additional Paid-in Capital, value of stock $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2 $ 2
Dividends declared, amount per share $ 3.63 $ 3.30 $ 10.89 $ 9.90        
v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Operating activities    
Net income $ 3,546 $ 3,192
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:    
Depreciation and amortization 342 294
Stock-based compensation 458 427
Deferred income tax expense (benefit) 20 45
Charitable Contribution 589  
Gain related to the Charitable Contribution (122)  
Gain related to iCapital recapitalization (244)  
Other gains   (30)
Net (gains) losses within consolidated sponsored investment products (161) (160)
Net (purchases) proceeds within consolidated sponsored investment products (1,603) (1,106)
(Earnings) losses from equity method investees (75) (89)
Distributions of earnings from equity method investees 25 29
Changes in operating assets and liabilities:    
Accounts receivable (544) (330)
Investments, trading 153 17
Other assets (864) (225)
Accrued compensation and benefits (206) (525)
Accounts payable and accrued liabilities (183) (61)
Other liabilities 633 150
Net cash provided by/(used in) operating activities 1,764 1,628
Investing activities    
Purchases of investments (252) (572)
Proceeds from sales and maturities of investments 133 151
Distributions of capital from equity method investees 124 80
Net consolidations (deconsolidations) of sponsored investment funds (42) (96)
Acquisitions, net of cash acquired   (1,510)
Purchases of property and equipment (140) (160)
Net cash provided by/(used in) investing activities (177) (2,107)
Financing activities    
Proceeds from long-term borrowings 2,245 992
Cash dividends paid (1,706) (1,584)
Repurchases of common stock (1,792) (1,904)
Net proceeds from (repayments of) borrowings by consolidated sponsored investment products 38 102
Net (redemptions/distributions paid)/subscriptions received from noncontrolling interest holders 1,358 907
Other financing activities (37) 118
Net cash provided by/(used in) financing activities 106 (1,369)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (15) (33)
Net increase/(decrease) in cash, cash equivalents and restricted cash 1,678 (1,881)
Cash, cash equivalents and restricted cash, beginning of period 4,846 6,505
Cash, cash equivalents and restricted cash, end of period 6,524 4,624
Supplemental schedule of noncash investing and financing transactions:    
Issuance of common stock 494 537
PNC preferred stock capital contribution   60
Charitable Contribution of an investment (589)  
Increase (decrease) in noncontrolling interests due to net consolidation (deconsolidation) of sponsored investment funds $ (759) $ (893)
v3.20.2
Business Overview
 9 Months Ended
Sep. 30, 2020
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 management and technology services to institutional and retail clients worldwide.

BlackRock’s diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares® exchange-traded funds (“ETFs”), separate accounts, collective trust funds (“CTFs”) and other pooled investment vehicles. BlackRock also offers technology services, including the investment and risk management technology platform, Aladdin®, Aladdin Wealth, eFront, Cachematrix and FutureAdvisor, as well as advisory services and solutions to a broad base of institutional and wealth management clients.
v3.20.2
Significant Accounting Policies
 9 Months Ended
Sep. 30, 2020
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 (“NCI”) on the condensed consolidated statements of financial condition represents the portion of consolidated sponsored investment funds in which the Company does not have direct equity ownership. Accounts and transactions between consolidated entities have been eliminated.

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

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

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

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

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

Measurement of Credit Losses. In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which significantly changes the accounting and disclosures for credit losses for most financial assets. The new guidance requires an estimate of expected lifetime credit losses and eliminates the existing recognition thresholds under current models. The adoption of ASU 2016-13, which was effective for the Company on January 1, 2020, did not have a material impact on its condensed consolidated financial statements.

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 collateralized loan obligations (“CLOs”), bank loans, 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, investments in CLOs and bank loans held within consolidated CLOs.

 

•

Level 3 liabilities include contingent liabilities related to borrowings of consolidated CLOs and 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.

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

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

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

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

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

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

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

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

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

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

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

 
v3.20.2
Acquisition
 9 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Acquisition

3. Acquisition

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

The purchase price was funded through a combination of existing cash and issuance of commercial paper (subsequently repaid with existing cash) and long-term notes in April 2019. A summary of the fair values of the assets acquired and liabilities assumed in this acquisition is as follows:

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Fair Value

 

Accounts receivable

 

$

61

 

Finite-lived intangible assets:

 

 

 

 

Customer relationships

 

 

400

 

Technology-related

 

 

203

 

Trade name

 

 

14

 

Goodwill

 

 

1,044

 

Other assets

 

 

49

 

Deferred income tax liabilities

 

 

(146

)

Other liabilities assumed

 

 

(125

)

Total consideration, net of cash acquired

 

$

1,500

 

 

 

 

 

 

Summary of consideration, net of cash acquired:

 

 

 

 

Cash paid including settlement of outstanding debt of approximately $0.2 billion

 

$

1,555

 

Cash acquired

 

 

(55

)

Total consideration, net of cash acquired

 

$

1,500

 

 

 

 

 

 

   

 
v3.20.2
Cash, Cash Equivalents and Restricted Cash
 9 Months Ended
Sep. 30, 2020
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Restricted Cash

4. Cash, Cash Equivalents and Restricted Cash

 

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

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

(in millions)

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,507

 

 

$

4,829

 

Restricted cash included in other assets

 

 

17

 

 

 

17

 

Total cash, cash equivalents and restricted cash

 

$

6,524

 

 

$

4,846

 

 
v3.20.2
Investments
 9 Months Ended
Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]  
Investments

5. Investments

A summary of the carrying value of total investments is as follows:

 

 

September 30,

 

 

December 31,

 

(in millions)

2020

 

 

2019

 

Debt securities:

 

 

 

 

 

 

 

Held-to-maturity investments

$

284

 

 

$

249

 

Trading securities

 

1,821

 

 

 

1,249

 

Total debt securities

 

2,105

 

 

 

1,498

 

Equity securities at FVTNI(1)

 

2,090

 

 

 

1,926

 

Equity method investments(2)

 

1,036

 

 

 

943

 

Bank loans

 

226

 

 

 

204

 

Federal Reserve Bank stock(3)

 

94

 

 

 

93

 

Carried interest(4)

 

483

 

 

 

528

 

Other investments(5)

 

273

 

 

 

297

 

Total investments

$

6,307

 

 

$

5,489

 

 

 

(1)

Fair value recorded through net income (“FVTNI”).

(2)

Equity method investments primarily include BlackRock’s direct investments in certain BlackRock sponsored investment funds.

(3)

At both September 30, 2020 and December 31, 2019, there were no indicators of impairment of Federal Reserve Bank stock, which is held for regulatory purposes and is restricted from sale.

(4)

Carried interest represents allocations to BlackRock’s general partner capital accounts from certain sponsored investment funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds.

(5)

Other investments include BlackRock’s investments in nonmarketable equity securities, which are measured at cost, adjusted for observable price changes and private equity and real asset investments of consolidated sponsored investment products measured at fair value.

 

Held-to-Maturity Investments

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

Trading Debt Securities and Equity Securities at FVTNI

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

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2020

 

 

December 31, 2019

 

(in millions)

Cost

 

 

Carrying

Value

 

 

Cost

 

 

Carrying

Value

 

Trading debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

$

1,447

 

 

$

1,441

 

 

$

822

 

 

$

844

 

Government debt

 

269

 

 

 

270

 

 

 

268

 

 

 

269

 

Asset/mortgage-backed debt

 

126

 

 

 

110

 

 

 

141

 

 

 

136

 

Total trading debt securities

$

1,842

 

 

$

1,821

 

 

$

1,231

 

 

$

1,249

 

Equity securities at FVTNI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities/mutual funds

$

1,989

 

 

$

2,090

 

 

$

1,769

 

 

$

1,926

 

Total equity securities at FVTNI

$

1,989

 

 

$

2,090

 

 

$

1,769

 

 

$

1,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
v3.20.2
Consolidated Sponsored Investment Products
 9 Months Ended
Sep. 30, 2020
Statement Of Financial Position [Abstract]  
Consolidated Sponsored Investment Products

6. Consolidated Sponsored Investment Products

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

In the normal course of business, the Company is the manager of various types of sponsored investment vehicles, which may be considered VIEs. The Company may from time to time own equity or debt securities or enter into derivatives with the vehicles, each of which are considered variable interests. The Company’s involvement in financing the operations of the VIEs is generally limited to its investments in the entity. The Company’s consolidated VIEs include certain sponsored investment products in which BlackRock has an investment and as the investment manager, is deemed to have both the power to direct the most significant activities of the products and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these sponsored investment products. The assets of these VIEs are not available to creditors of the Company. In addition, the investors in these VIEs have no recourse to the credit of the Company.

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

 

 

September 30, 2020

 

 

December 31, 2019

 

(in millions)

 

VIEs

 

 

VREs

 

 

Total

 

 

VIEs

 

 

VREs

 

 

Total

 

Cash and cash equivalents

 

$

186

 

 

$

22

 

 

$

208

 

 

$

131

 

 

$

10

 

 

$

141

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading debt securities

 

 

1,551

 

 

 

238

 

 

 

1,789

 

 

 

1,059

 

 

 

151

 

 

 

1,210

 

Equity securities at FVTNI

 

 

1,458

 

 

 

397

 

 

 

1,855

 

 

 

1,330

 

 

 

332

 

 

 

1,662

 

Bank loans

 

 

226

 

 

 

—

 

 

 

226

 

 

 

204

 

 

 

—

 

 

 

204

 

Other investments

 

 

185

 

 

 

—

 

 

 

185

 

 

 

194

 

 

 

—

 

 

 

194

 

Carried interest

 

 

462

 

 

 

—

 

 

 

462

 

 

 

514

 

 

 

—

 

 

 

514

 

Total investments

 

 

3,882

 

 

 

635

 

 

 

4,517

 

 

 

3,301

 

 

 

483

 

 

 

3,784

 

Other assets

 

 

84

 

 

 

25

 

 

 

109

 

 

 

68

 

 

 

5

 

 

 

73

 

Other liabilities(1)

 

 

(798

)

 

 

(71

)

 

 

(869

)

 

 

(820

)

 

 

(20

)

 

 

(840

)

Noncontrolling interests

 

 

(2,026

)

 

 

(117

)

 

 

(2,143

)

 

 

(1,348

)

 

 

(34

)

 

 

(1,382

)

BlackRock's net interests in

   consolidated investment products

 

$

1,328

 

 

$

494

 

 

$

1,822

 

 

$

1,332

 

 

$

444

 

 

$

1,776

 

 

(1)

At September 30, 2020 and December 31, 2019, other liabilities of VIEs include $233 million and $195 million, respectively, related to borrowings of a consolidated CLO.

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

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

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in millions)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating net gain (loss) on consolidated VIEs

 

$

213

 

 

$

(5

)

 

$

186

 

 

$

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to NCI on consolidated VIEs

 

$

149

 

 

$

—

 

 

$

169

 

 

$

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
v3.20.2
Variable Interest Entities
 9 Months Ended
Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Variable Interest Entities

7. Variable Interest Entities

 

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

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2020

 

Investments

 

 

Advisory Fee Receivables

 

 

Other Net Assets (Liabilities)

 

 

Maximum Risk of Loss(1)

 

Sponsored investment products

 

$

626

 

 

$

80

 

 

$

(13

)

 

$

723

 

At December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sponsored investment products

 

$

539

 

 

$

71

 

 

$

(10

)

 

$

627

 

 

 

(1)

At both September 30, 2020 and December 31, 2019, 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 $15 billion and $12 billion at September 30, 2020 and December 31, 2019, respectively.

 
v3.20.2
Fair Value Disclosures
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Disclosures

8. Fair Value Disclosures

Fair Value Hierarchy

Assets and liabilities measured at fair value on a recurring basis

 

September 30, 2020

(in millions)

Quoted Prices in

Active

Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Investments

Measured at

NAV(1)

 

 

Other(2)

 

 

September 30,

2020

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity investments

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

284

 

 

$

284

 

Trading securities

 

—

 

 

 

1,810

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

1,821

 

Total debt securities

 

—

 

 

 

1,810

 

 

 

11

 

 

 

—

 

 

 

284

 

 

 

2,105

 

Equity securities at FVTNI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities/mutual funds

 

2,090

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,090

 

Equity method:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity and fixed income mutual funds

 

242

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

242

 

Hedge funds/funds of hedge funds

 

—

 

 

 

—

 

 

 

—

 

 

 

266

 

 

 

—

 

 

 

266

 

Private equity funds

 

—

 

 

 

—

 

 

 

—

 

 

 

285

 

 

 

—

 

 

 

285

 

Real assets funds

 

—

 

 

 

—

 

 

 

—

 

 

 

234

 

 

 

—

 

 

 

234

 

Other

 

—

 

 

 

—

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

9

 

Total equity method

 

242

 

 

 

—

 

 

 

—

 

 

 

794

 

 

 

—

 

 

 

1,036

 

Bank loans

 

—

 

 

 

9

 

 

 

217

 

 

 

—

 

 

 

—

 

 

 

226

 

Federal Reserve Bank Stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

94

 

 

 

94

 

Carried interest

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

483

 

 

 

483

 

Other investments(3)

 

—

 

 

 

—

 

 

 

10

 

 

 

93

 

 

 

170

 

 

 

273

 

Total investments

 

2,332

 

 

 

1,819

 

 

 

238

 

 

 

887

 

 

 

1,031

 

 

 

6,307

 

Other assets(4)

 

192

 

 

 

18

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

210

 

Separate account assets

 

65,032

 

 

 

29,766

 

 

 

—

 

 

 

—

 

 

 

1,196

 

 

 

95,994

 

Separate account collateral held under securities

   lending agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

10,250

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,250

 

Debt securities

 

—

 

 

 

4,887

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,887

 

Total separate account collateral held under

   securities lending agreements

 

10,250

 

 

 

4,887

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,137

 

Total

$

77,806

 

 

$

36,490

 

 

$

238

 

 

$

887

 

 

$

2,227

 

 

$

117,648

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separate account collateral liabilities under

   securities lending agreements

$

10,250

 

 

$

4,887

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15,137

 

Other liabilities(5)

 

—

 

 

 

36

 

 

 

261

 

 

 

—

 

 

 

—

 

 

 

297

 

Total

$

10,250

 

 

$

4,923

 

 

$

261

 

 

$

—

 

 

$

—

 

 

$

15,434

 

 

(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 amortized cost and cost, adjusted for observable price changes, 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 amount primarily includes direct investments in private equity companies held by private equity funds.

(4)

Level 1 amount includes a minority investment in a publicly traded company.

(5)

Level 2 amount primarily includes fair value of derivatives (See Note 9, Derivatives and Hedging, for more information). Level 3 amounts primarily include borrowings of a consolidated CLO classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and contingent liabilities related to certain acquisitions (see Note 15, Commitments and Contingencies, for more information).

 

 

Assets and liabilities measured at fair value on a recurring basis

 

December 31, 2019

(in millions)

Quoted Prices in

Active

Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Investments

Measured at

NAV(1)

 

 

Other(2)

 

 

December 31,

2019

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity investments

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

249

 

 

$

249

 

Trading securities

 

—

 

 

 

1,241

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

1,249

 

Total debt securities

 

—

 

 

 

1,241

 

 

 

8

 

 

 

—

 

 

 

249

 

 

 

1,498

 

Equity securities at FVTNI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities/mutual funds

 

1,926

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,926

 

Equity method:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity and fixed income mutual funds

 

157

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

157

 

Hedge funds/funds of hedge funds

 

—

 

 

 

—

 

 

 

—

 

 

 

220

 

 

 

—

 

 

 

220

 

Private equity funds

 

—

 

 

 

—

 

 

 

—

 

 

 

248

 

 

 

—

 

 

 

248

 

Real assets funds

 

—

 

 

 

—

 

 

 

—

 

 

 

296

 

 

 

—

 

 

 

296

 

Other

 

12

 

 

 

—

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

22

 

Total equity method

 

169

 

 

 

—

 

 

 

—

 

 

 

774

 

 

 

—

 

 

 

943

 

Bank loans

 

—

 

 

 

27

 

 

 

177

 

 

 

—

 

 

 

—

 

 

 

204

 

Federal Reserve Bank Stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

93

 

 

 

93

 

Carried interest

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

528

 

 

 

528

 

Other investments(3)

 

—

 

 

 

—

 

 

 

9

 

 

 

98

 

 

 

190

 

 

 

297

 

Total investments

 

2,095

 

 

 

1,268

 

 

 

194

 

 

 

872

 

 

 

1,060

 

 

 

5,489

 

Other assets(4)

 

173

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

173

 

Separate account assets

 

72,515

 

 

 

29,582

 

 

 

—

 

 

 

—

 

 

 

747

 

 

 

102,844

 

Separate account collateral held under

   securities lending agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

10,209

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,209

 

Debt securities

 

—

 

 

 

5,257

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,257

 

Total separate account collateral held under

   securities lending agreements

 

10,209

 

 

 

5,257

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,466

 

Total

$

84,992

 

 

$

36,107

 

 

$

194

 

 

$

872

 

 

$

1,807

 

 

$

123,972

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separate account collateral liabilities

   under securities lending agreements

$

10,209

 

 

$

5,257

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15,466

 

Other liabilities(5)

 

—

 

 

 

10

 

 

 

388

 

 

 

—

 

 

 

—

 

 

 

398

 

Total

$

10,209

 

 

$

5,267

 

 

$

388

 

 

$

—

 

 

$

—

 

 

$

15,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 amortized cost and cost, adjusted for observable price changes, 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 amount primarily includes direct investments in private equity companies held by private equity funds.

(4)

Amount includes a minority investment in a publicly traded company.

(5)

Level 3 amount primarily includes contingent liabilities related to certain acquisitions (see Note 15, Commitments and Contingencies, for more information) and borrowings of a consolidated CLO classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets.

 

 

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

 

Level 3 investments of $238 million and $194 million at September 30, 2020 and December 31, 2019, respectively, primarily included bank loans of a consolidated CLO.

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

 


 

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

 

(in millions)

 

June 30,

2020

 

 

Realized

and

Unrealized

Gains

(Losses)

 

 

Purchases

 

 

Sales and

Maturities

 

 

Issuances and

other

Settlements(1)

 

 

Transfers

into

Level 3

 

 

Transfers

out of

Level 3

 

 

September 30,

2020

 

 

Total Net

Unrealized

Gains (Losses)

Included in

Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

10

 

 

$

—

 

 

$

1

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

Total debt securities

 

 

10

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11

 

 

 

—

 

Private equity

 

 

16

 

 

 

—

 

 

 

—

 

 

 

(6

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10

 

 

 

—

 

Bank loans

 

 

229

 

 

 

—

 

 

 

—

 

 

 

(9

)

 

 

—

 

 

 

—

 

 

 

(3

)

 

 

217

 

 

 

—

 

Total investments

 

$

255

 

 

$

—

 

 

$

1

 

 

$

(15

)

 

$

—

 

 

$

—

 

 

$

(3

)

 

$

238

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities(3)

 

$

262

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(1

)

 

$

—

 

 

$

—

 

 

$

261

 

 

$

—

 

Total Level 3 liabilities

 

$

262

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(1

)

 

$

—

 

 

$

—

 

 

$

261

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include proceeds from borrowings of a consolidated CLO and contingent liability payments, related to certain acquisitions.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

(3)

Amounts include borrowings related to a consolidated CLO and 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, 2020

 

(in millions)

 

December 31,

2019

 

 

Realized

and

Unrealized

Gains

(Losses)

 

 

Purchases

 

 

Sales and

Maturities

 

 

Issuances and

other

Settlements(1)

 

 

Transfers

into

Level 3

 

 

Transfers

out of

Level 3

 

 

September 30,

2020

 

 

Total Net

Unrealized

Gains (Losses)

Included in

Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

8

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

Total debt securities

 

 

8

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11

 

 

 

—

 

Private equity

 

 

9

 

 

 

—

 

 

 

8

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10

 

 

 

—

 

Bank loans

 

 

177

 

 

 

—

 

 

 

36

 

 

 

(9

)

 

 

—

 

 

 

16

 

 

 

(3

)

 

 

217

 

 

 

—

 

Total investments

 

$

194

 

 

$

—

 

 

$

47

 

 

$

(16

)

 

$

—

 

 

$

16

 

 

$

(3

)

 

$

238

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities(3)

 

$

388

 

 

$

(23

)

 

$

—

 

 

$

—

 

 

$

(150

)

 

$

—

 

 

$

—

 

 

$

261

 

 

$

(5

)

Total Level 3 liabilities

 

$

388

 

 

$

(23

)

 

$

—

 

 

$

—

 

 

$

(150

)

 

$

—

 

 

$

—

 

 

$

261

 

 

$

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include proceeds from borrowings of a consolidated CLO and contingent liability payments, related to certain acquisitions.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

(3)

Amounts include borrowings related to a consolidated CLO and 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, 2019

 

(in millions)

 

June 30,

2019

 

 

Realized

and

Unrealized

Gains

(Losses)

 

 

Purchases

 

 

Sales and

Maturities

 

 

Issuances

and

other

Settlements(1)

 

 

Transfers

into

Level 3

 

 

Transfers

out of

Level 3

 

 

September 30,

2019

 

 

Total Net

Unrealized

Gains (Losses)

Included in

Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

2

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5

 

 

$

—

 

Total debt securities

 

 

2

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

—

 

Private equity

 

 

9

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

9

 

 

 

1

 

Bank loans

 

 

125

 

 

 

—

 

 

 

32

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

157

 

 

 

—

 

Total investments

 

 

136

 

 

 

1

 

 

 

35

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

171

 

 

 

1

 

Total Level 3 assets

 

$

136

 

 

$

1

 

 

$

35

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(1

)

 

$

171

 

 

$

1

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities(3)

 

$

310

 

 

$

1

 

 

$

—

 

 

$

—

 

 

$

44

 

 

$

—

 

 

$

—

 

 

$

353

 

 

$

1

 

Total Level 3 liabilities

 

$

310

 

 

$

1

 

 

$

—

 

 

$

—

 

 

$

44

 

 

$

—

 

 

$

—

 

 

$

353

 

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include proceeds from borrowings of a consolidated CLO.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

(3)

Amounts include contingent liabilities in connection with certain acquisitions and borrowings related to a consolidated CLO.

 

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

(in millions)

 

December 31,

2018

 

 

Realized

and

Unrealized

Gains

(Losses)

 

 

Purchases

 

 

Sales and

Maturities

 

 

Issuances

and

other

Settlements(1)

 

 

Transfers

into

Level 3

 

 

Transfers

out of

Level 3(2)

 

 

September 30,

2019

 

 

Total Net

Unrealized

Gains (Losses)

Included in

Earnings(3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

4

 

 

$

—

 

 

$

5

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(4

)

 

$

5

 

 

$

—

 

Total debt securities

 

 

4

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4

)

 

 

5

 

 

 

—

 

Private equity

 

 

82

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(73

)

 

 

9

 

 

 

—

 

Bank loans(4)

 

 

70

 

 

 

—

 

 

 

87

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

157

 

 

 

—

 

Total investments

 

 

156

 

 

 

—

 

 

 

92

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(77

)

 

 

171

 

 

 

—

 

Total Level 3 assets

 

$

156

 

 

$

—

 

 

$

92

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(77

)

 

$

171

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities(4)

 

$

371

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

(36

)

 

$

—

 

 

$

—

 

 

$

353

 

 

$

(18

)

Total Level 3 liabilities

 

$

371

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

(36

)

 

$

—

 

 

$

—

 

 

$

353

 

 

$

(18

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include proceeds from borrowings of a consolidated CLO and contingent liability payments, related to certain acquisitions.

(2)

Amounts include an investment in a consolidated entity that no longer qualifies as an investment company and is no longer accounted for under a fair value measure.

(3)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

(4)

Amounts include contingent liabilities in connection with certain acquisitions and borrowings related to a consolidated CLO.

 

 

 

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

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

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

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

 

(in millions)

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Fair Value

Hierarchy

 

Financial Assets(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

6,507

 

 

$

6,507

 

 

$

4,829

 

 

$

4,829

 

 

Level 1

(2) (3)

Other assets

$

41

 

 

$

41

 

 

$

68

 

 

$

68

 

 

Level 1

(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

$

7,227

 

 

$

7,857

 

 

$

4,955

 

 

$

5,254

 

 

Level 2

(5)

 

(1)

See Note 5, Investments, for further information on investments not held at fair value.

(2)

Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities.

(3)

At September 30, 2020 and December 31, 2019, approximately $667 million and $674 million, respectively, of money market funds were recorded within cash and cash equivalents on the condensed consolidated statements of financial condition. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund.

(4)

Other assets include restricted cash and cash collateral deposited with certain derivative counterparties. The carrying values of these assets approximate fair value due to their short-term maturities.

(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 determined using market prices at the end of September 2020 and December 2019, respectively. See Note 14, Borrowings, for the fair value of each of the Company’s long-term 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 in entities that use a fair value measurement to account for both their financial assets and financial liabilities in their calculation of a NAV per share (or equivalent).

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Ref

 

Fair Value

 

 

Total

Unfunded

Commitments

 

 

Redemption

Frequency

 

Redemption

Notice Period

Equity method:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds/funds of hedge funds

 

(a)

 

$

266

 

 

$

107

 

 

Daily/Monthly (23%)

Quarterly (20%)

N/R (57%)

 

1 – 90 days

Private equity funds

 

(b)

 

 

285

 

 

 

253

 

 

N/R

 

N/R

Real assets funds

 

(c)

 

 

234

 

 

 

216

 

 

Quarterly (41%)

N/R (59%)

 

60 days

Other

 

 

 

 

9

 

 

 

6

 

 

N/R

 

N/R

Consolidated sponsored investment

   products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity funds of funds

 

(d)

 

 

15

 

 

 

7

 

 

N/R

 

N/R

Hedge fund

 

(a)

 

 

3

 

 

 

—

 

 

Quarterly

 

90 days

Real assets funds

 

(c)

 

 

75

 

 

 

101

 

 

N/R

 

N/R

Total

 

 

 

$

887

 

 

$

690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Ref

 

Fair Value

 

 

Total

Unfunded

Commitments

 

 

Redemption

Frequency

 

Redemption

Notice Period

Equity method:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds/funds of hedge funds

 

(a)

 

$

220

 

 

$

120

 

 

Daily/Monthly (27%)

Quarterly (15%)

N/R (58%)

 

1 – 90 days

Private equity funds

 

(b)

 

 

248

 

 

 

212

 

 

N/R

 

N/R

Real assets funds

 

(c)

 

 

296

 

 

 

120

 

 

Quarterly (57%)

N/R (43%)

 

60 days

Other

 

 

 

 

10

 

 

 

9

 

 

N/R

 

N/R

Consolidated sponsored investment

   products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity funds of funds

 

(d)

 

 

23

 

 

 

9

 

 

N/R

 

N/R

Hedge fund

 

(a)

 

 

3

 

 

 

—

 

 

Quarterly

 

90 days

Real assets funds

 

(c)

 

 

72

 

 

 

83

 

 

N/R

 

N/R

Total

 

 

 

$

872

 

 

$

553

 

 

 

 

 

 

N/R – not redeemable

 

(1)

Comprised of equity method investments, which include 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. The liquidation period for the investments in the funds that are not subject to redemption is unknown at both September 30, 2020 and December 31, 2019.

(b)

This category includes 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. The liquidation period for the investments in these funds is unknown at both September 30, 2020 and December 31, 2019.

(c)

This category includes several real assets funds that invest directly and indirectly in real estate or 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 and realizations of the underlying assets of the funds. The liquidation period for the investments in the funds that are not subject to redemptions is unknown at both September 30, 2020 and December 31, 2019. The total remaining unfunded commitments to real assets funds were $317 million and $203 million at September 30, 2020 and December 31, 2019, respectively. The Company’s portion of the total remaining unfunded commitments was $284 million and $172 million at September 30, 2020 and December 31, 2019, respectively.

(d)

This category includes the underlying third-party private equity funds within consolidated BlackRock sponsored private equity funds of funds. The fair values of the investments in the third-party funds have been estimated using capital accounts representing the Company’s ownership interest in each fund in the portfolio as well as other performance inputs. These investments are not subject to redemption or are not currently redeemable; however, for certain funds, the Company may sell or transfer its interest, which may need approval by the general partner of the underlying funds. Due to the nature of the investments in this category, the Company reduces its investment by distributions that are received through the realization of the underlying assets of the funds. The liquidation period for the underlying assets of these funds is unknown at both September 30, 2020 and December 31, 2019. The total remaining unfunded commitments to other third-party funds were $7 million and $9 million at September 30, 2020 and December 31, 2019, respectively. The Company had contractual obligations to the consolidated funds of $17 million and $22 million at September 30, 2020 and December 31, 2019, respectively. 

 

Fair Value Option.

 

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

 

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

 

 

September 30,

 

 

December 31,

 

(in millions)

 

2020

 

 

2019

 

CLO Bank loans:

 

 

 

 

 

 

 

 

Aggregate principal amounts outstanding

 

$

231

 

 

$

204

 

Fair value

 

 

226

 

 

 

204

 

Aggregate unpaid principal balance in excess of (less than) fair value

 

$

5

 

 

$

—

 

 

 

 

 

 

 

 

 

 

CLO Borrowings:

 

 

 

 

 

 

 

 

Aggregate principal amounts outstanding

 

$

249

 

 

$

195

 

Fair value

 

$

233

 

 

$

195

 

 

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

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

v3.20.2
Derivatives and Hedging
 9 Months Ended
Sep. 30, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging

 

9. 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, 2020 and December 31, 2019, the Company had outstanding total return swaps with aggregate notional values of approximately $735 million and $644 million, respectively.

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

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

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

 

 

September 30, 2020

 

(in millions)

Assets

 

 

 

Liabilities

 

Derivative instruments

Statement of

Financial Condition

Classification

 

Fair Value

 

 

 

Statement of

Financial Condition

Classification

 

Fair Value

 

Total return swaps

Other assets

 

$

6

 

 

 

Other liabilities

 

$

10

 

Forward foreign currency exchange

   contracts

Other assets

 

 

12

 

 

 

Other liabilities

 

 

13

 

Total

 

 

$

18

 

 

 

 

 

$

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

 

September 30,

 

 

September 30,

 

(in millions)

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Derivative Instruments

 

Statement of Income Classification

 

Gains (Losses)

 

 

Gains (Losses)

 

Total return swaps

 

Nonoperating income (expense)

 

$

(42

)

 

$

2

 

 

$

9

 

 

$

(62

)

Forward foreign currency

   exchange contracts

 

General and administration expense

 

 

64

 

 

 

(43

)

 

 

(34

)

 

 

(56

)

Total gain (loss) from derivative instruments

 

$

22

 

 

$

(41

)

 

$

(25

)

 

$

(118

)

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

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

v3.20.2
Goodwill
 9 Months Ended
Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill

10. Goodwill

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

 

(in millions)

 

 

 

December 31, 2019

$

14,562

 

Goodwill adjustments related to Quellos(1)

 

(8

)

September 30, 2020

$

14,554

 

 

(1)

Amount 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 $82 million and $106 million at September 30, 2020 and December 31, 2019, respectively.
v3.20.2
Intangible Assets
 9 Months Ended
Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets

11. Intangible Assets

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

 

(in millions)

Indefinite-lived

 

 

Finite-lived

 

 

Total

 

December 31, 2019

$

17,578

 

 

$

791

 

 

$

18,369

 

Amortization expense

 

—

 

 

 

(79

)

 

 

(79

)

September 30, 2020

$

17,578

 

 

$

712

 

 

$

18,290

 

 

 
v3.20.2
Leases
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

12. Leases

 

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease cost(1)

$

37

 

 

$

36

 

 

$

110

 

 

$

104

 

Variable lease cost(2)

 

10

 

 

 

10

 

 

 

29

 

 

 

28

 

Total lease cost

$

47

 

 

$

46

 

 

$

139

 

 

$

132

 

 

(1)

Amounts include short-term leases, which are immaterial for the three and nine months ended September 30, 2020 and 2019.

(2)

Amounts include operating lease payments, which may be adjusted based on usage, changes in an index or market rate.

 

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

 

Statement of

 

 

 

 

 

 

 

 

 

Financial Condition

 

September 30,

 

 

December 31,

 

(in millions)

Classification

 

2020

 

 

2019

 

Statement of Financial Condition information:

 

 

 

 

 

 

 

 

 

Operating lease right-of-use ("ROU") assets

Other assets

 

$

646

 

 

$

669

 

Operating lease liabilities

Other liabilities

 

$

756

 

 

$

776

 

 

Supplemental information related to operating leases is summarized below:

 

 

 

Nine Months Ended

 

 

 

September 30,

 

(in millions)

 

2020

 

 

2019

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

114

 

 

$

105

 

 

 

 

 

 

 

 

 

 

Supplemental noncash information:

 

 

 

 

 

 

 

 

ROU assets in exchange for operating lease liabilities in connection with the

   adoption of ASU 2016-02, "Leases"

 

$

—

 

 

$

661

 

ROU assets in exchange for operating lease liabilities

 

$

77

 

 

$

54

 

 

 

 

September 30,

 

December 31,

 

2020

 

2019

Lease term and discount rate:

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term

 

8

 

years

 

 

9

 

years

Weighted-average discount rate

 

3

 

%

 

 

3

 

%

 
v3.20.2
Other Assets
 9 Months Ended
Sep. 30, 2020
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]  
Other Assets

13. Other Assets

PennyMac

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

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

 

iCapital

 

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

 
v3.20.2
Borrowings
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Borrowings

14. Borrowings

 

Short-Term Borrowings

 

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

Commercial Paper Program.  The Company can issue unsecured commercial paper notes (the “CP Notes”) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $4.0 billion. The commercial paper program is currently supported by the 2020 credit facility. At September 30, 2020, BlackRock had no CP Notes outstanding.

 

Long-Term Borrowings

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

 

(in millions)

Maturity Amount

 

 

Unamortized

Discount

and Debt

Issuance Costs

 

 

Carrying Value

 

 

Fair Value

 

4.25% Notes due 2021

$

750

 

 

$

—

 

 

$

750

 

 

$

769

 

3.375% Notes due 2022

 

750

 

 

 

(2

)

 

 

748

 

 

 

787

 

3.50% Notes due 2024

 

1,000

 

 

 

(3

)

 

 

997

 

 

 

1,102

 

1.25% Notes due 2025

 

821

 

 

 

(3

)

 

 

818

 

 

 

868

 

3.20% Notes due 2027

 

700

 

 

 

(5

)

 

 

695

 

 

 

794

 

3.25% Notes due 2029

 

1,000

 

 

 

(12

)

 

 

988

 

 

 

1,155

 

2.40% Notes due 2030

 

1,000

 

 

 

(7

)

 

 

993

 

 

 

1,086

 

1.90% Notes due 2031

 

1,250

 

 

 

(12

)

 

 

1,238

 

 

 

1,296

 

Total Long-term Borrowings

$

7,271

 

 

$

(44

)

 

$

7,227

 

 

$

7,857

 

 

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

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

See Note 15, Borrowings, in the 2019 Form 10-K for more information regarding the Company’s borrowings.
v3.20.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

15. Commitments and Contingencies

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

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, 2020 totaled $28 million and is included in other liabilities on the condensed consolidated statements of financial condition.

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

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

On May 27, 2014, certain investors in the BlackRock Global Allocation Fund, Inc. and the BlackRock Equity Dividend Fund (collectively, the “Funds”) filed a consolidated complaint (the “Consolidated Complaint”) in the US District Court for the District of New Jersey against BlackRock Advisors, LLC, BlackRock Investment Management, LLC and BlackRock International Limited under the caption In re BlackRock Mutual Funds Advisory Fee Litigation. In the lawsuit, which purported to be brought derivatively on behalf of the Funds, the plaintiffs alleged that the defendants violated Section 36(b) of the Investment Company Act by receiving allegedly excessive investment advisory fees from the Funds. On June 13, 2018, the court granted in part and denied in part the defendants’ motion for summary judgment. On July 25, 2018, the plaintiffs served a pleading that supplemented the time period of their alleged damages to run through the date of trial. The lawsuit sought, among other things, to recover on behalf of the Funds all allegedly excessive advisory fees received by the defendants beginning twelve months preceding the start of the lawsuit with respect to each Fund and ending on the date of judgment, along with purported lost investment returns on those amounts, plus interest. The trial on the remaining issues was completed on August 29, 2018. On February 8, 2019, the court issued an order dismissing the claims in their entirety. On May 28, 2020, the Third Circuit Court of Appeals affirmed the trial court’s summary judgment and trial rulings. On June 26, 2020, Plaintiffs petitioned the appeals court for a rehearing, which was denied July 9, 2020. The plaintiffs’ deadline to seek further appeal has passed. Consequently, BlackRock now considers this matter closed.

On June 16, 2016, iShares Trust, BlackRock, Inc. and certain of its advisory subsidiaries, and the directors and certain officers of the iShares ETFs were named as defendants in a purported class action lawsuit filed in California state court. The lawsuit was filed by investors in certain iShares ETFs (the "ETFs"), and alleged the defendants violated the federal securities laws by failing to adequately disclose in prospectuses issued by the ETFs the risks to the ETFs’ shareholders in the event of a "flash crash." The plaintiffs sought unspecified monetary and rescission damages. The plaintiffs’ complaint was dismissed in December 2016 and on January 6, 2017, the plaintiffs filed an amended complaint. On April 27, 2017, the court partially granted the defendants’ motion for judgment on the pleadings, dismissing certain of the plaintiffs’ claims. On September 18, 2017, the court issued a decision dismissing the remainder of the lawsuit after a one-day bench trial. On December 1, 2017, the plaintiffs appealed the dismissal of their lawsuit and, on January 23, 2020, the California Court of Appeal affirmed the trial court’s dismissal. On May 27, 2020, the California Supreme Court denied plaintiffs’ petition for further review of the appeal. The plaintiffs’ deadline to seek further appeal has passed. Consequently, BlackRock now considers this matter closed.

On April 5, 2017, BlackRock, Inc., BlackRock Institutional Trust Company, N.A. (“BTC”), the BlackRock, Inc. Retirement Committee and various sub-committees, and a BlackRock employee were named as defendants in a purported class action lawsuit brought in the US District Court for the Northern District of California by a former employee on behalf of all participants and beneficiaries in the BlackRock employee 401(k) Plan (the “Plan”) from April 5, 2011 to the present. The lawsuit generally alleges that the defendants breached their duties towards Plan participants in violation of the Employee Retirement Income Security Act of 1974 by, among other things, offering investment options that were overly expensive, underperformed unaffiliated peer funds, focused disproportionately on active versus passive strategies, and were unduly concentrated in investment options managed by BlackRock. On

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

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

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

In connection with securities lending transactions, BlackRock has agreed to indemnify certain securities lending clients against potential loss resulting from a borrower’s failure to fulfill its obligations under the securities lending agreement should the value of the collateral pledged by the borrower at the time of default be insufficient to cover the borrower’s obligation under the securities lending agreement. The amount of securities on loan as of September 30, 2020 and subject to this type of indemnification was $249 billion. In the Company’s capacity as lending agent, cash and securities totaling $265 billion were held as collateral for indemnified securities on loan at September 30, 2020. The fair value of these indemnifications was not material at September 30, 2020.
v3.20.2
Revenue
 9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]  
Revenue

16. Revenue

 

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Investment advisory, administration fees and

   securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

$

457

 

 

$

391

 

 

$

1,236

 

 

$

1,151

 

iShares ETFs

 

880

 

 

 

872

 

 

 

2,551

 

 

 

2,589

 

Non-ETF Index

 

164

 

 

 

168

 

 

 

505

 

 

 

495

 

Equity subtotal

 

1,501

 

 

 

1,431

 

 

 

4,292

 

 

 

4,235

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

498

 

 

 

496

 

 

 

1,443

 

 

 

1,427

 

iShares ETFs

 

297

 

 

 

251

 

 

 

817

 

 

 

705

 

Non-ETF Index

 

113

 

 

 

98

 

 

 

354

 

 

 

293

 

Fixed income subtotal

 

908

 

 

 

845

 

 

 

2,614

 

 

 

2,425

 

Multi-asset

 

289

 

 

 

288

 

 

 

852

 

 

 

852

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

140

 

 

 

122

 

 

 

416

 

 

 

350

 

Liquid alternatives

 

132

 

 

 

105

 

 

 

361

 

 

 

301

 

Currency and commodities(1)

 

51

 

 

 

30

 

 

 

118

 

 

 

78

 

Alternatives subtotal

 

323

 

 

 

257

 

 

 

895

 

 

 

729

 

Long-Term

 

3,021

 

 

 

2,821

 

 

 

8,653

 

 

 

8,241

 

Cash management

 

204

 

 

 

159

 

 

 

593

 

 

 

447

 

Total base fees

 

3,225

 

 

 

2,980

 

 

 

9,246

 

 

 

8,688

 

Investment advisory performance fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

4

 

 

 

1

 

 

 

29

 

 

 

5

 

Fixed income

 

9

 

 

 

—

 

 

 

13

 

 

 

2

 

Multi-asset

 

10

 

 

 

1

 

 

 

13

 

 

 

7

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

6

 

 

 

5

 

 

 

55

 

 

 

40

 

Liquid alternatives

 

503

 

 

 

114

 

 

 

575

 

 

 

157

 

Alternatives subtotal

 

509

 

 

 

119

 

 

 

630

 

 

 

197

 

Total performance fees

 

532

 

 

 

121

 

 

 

685

 

 

 

211

 

Technology services revenue

 

282

 

 

 

259

 

 

 

834

 

 

 

700

 

Distribution fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retrocessions

 

188

 

 

 

166

 

 

 

519

 

 

 

491

 

12b-1 fees (US mutual fund distribution fees)

 

85

 

 

 

90

 

 

 

254

 

 

 

267

 

Other

 

15

 

 

 

14

 

 

 

44

 

 

 

41

 

Total distribution fees

 

288

 

 

 

270

 

 

 

817

 

 

 

799

 

Advisory and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory

 

14

 

 

 

21

 

 

 

48

 

 

 

62

 

Other

 

28

 

 

 

41

 

 

 

97

 

 

 

102

 

Total advisory and other revenue

 

42

 

 

 

62

 

 

 

145

 

 

 

164

 

Total revenue

$

4,369

 

 

$

3,692

 

 

$

11,727

 

 

$

10,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_____________________________________________________________

(1)      Amounts include commodity iShares ETFs.

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

By client type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

$

938

 

 

$

862

 

 

$

2,635

 

 

$

2,534

 

iShares ETFs

 

1,228

 

 

 

1,151

 

 

 

3,487

 

 

 

3,370

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

594

 

 

 

558

 

 

 

1,714

 

 

 

1,595

 

Index

 

261

 

 

 

250

 

 

 

817

 

 

 

742

 

Total institutional

 

855

 

 

 

808

 

 

 

2,531

 

 

 

2,337

 

Long-Term

 

3,021

 

 

 

2,821

 

 

 

8,653

 

 

 

8,241

 

Cash management

 

204

 

 

 

159

 

 

 

593

 

 

 

447

 

Total

$

3,225

 

 

$

2,980

 

 

$

9,246

 

 

$

8,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By investment style:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

$

1,511

 

 

$

1,401

 

 

$

4,292

 

 

$

4,073

 

Index and iShares ETFs

 

1,510

 

 

 

1,420

 

 

 

4,361

 

 

 

4,168

 

Long-Term

 

3,021

 

 

 

2,821

 

 

 

8,653

 

 

 

8,241

 

Cash management

 

204

 

 

 

159

 

 

 

593

 

 

 

447

 

Total

$

3,225

 

 

$

2,980

 

 

$

9,246

 

 

$

8,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory and administration fees – remaining performance obligation

 

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

 

September 30, 2020

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2020

 

 

 

2021

 

 

 

2022

 

 

 

2023

 

 

Thereafter

 

 

Total

 

Investment advisory and

   administration fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternatives(1)(2)

$

33

 

 

$

125

 

 

$

108

 

 

$

92

 

 

$

61

 

 

$

419

 

 

September 30, 2019

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2019

 

 

 

2020

 

 

 

2021

 

 

 

2022

 

 

Thereafter

 

 

Total

 

Investment advisory and

   administration fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternatives(1)(2)

$

22

 

 

$

85

 

 

$

71

 

 

$

62

 

 

$

59

 

 

$

299

 

 

(1)

Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at September 30, 2020 and 2019. Actual management fees could be higher to the extent additional committed capital is raised. These fees are generally billed on a quarterly basis in arrears.

(2)

The Company elected the following practical expedients and therefore does not include amounts related to (1) performance obligations with an original duration of one year or less, and (2) variable consideration related to future service periods.  

 

Change in Deferred Carried Interest Liability

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Beginning balance

$

418

 

 

$

365

 

 

$

483

 

 

$

293

 

Net increase (decrease) in unrealized allocations

 

29

 

 

 

17

 

 

 

4

 

 

 

116

 

Performance fee revenue recognized

 

—

 

 

 

—

 

 

 

(40

)

 

 

(27

)

Other

 

—

 

 

 

6

 

 

 

—

 

 

 

6

 

Ending balance

$

447

 

 

$

388

 

 

$

447

 

 

$

388

 

 

 

Technology services revenue – remaining performance obligation

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

 

September 30, 2020

 

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2020

 

 

 

2021

 

 

 

2022

 

 

 

2023

 

 

Thereafter

 

 

Total

 

Technology services revenue(1)(2)

$

37

 

 

$

95

 

 

$

47

 

 

$

22

 

 

$

18

 

 

$

219

 

 

September 30, 2019

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2019

 

 

 

2020

 

 

 

2021

 

 

 

2022

 

 

Thereafter

 

 

Total

 

Technology services revenue(1)(2)

$

36

 

 

$

54

 

 

$

37

 

 

$

21

 

 

$

12

 

 

$

160

 

 

(1)

Technology services revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed.  

(2)

The Company elected the following practical expedients and therefore does not include amounts related to (1) performance obligations with an original duration of one year or less, and (2) variable consideration related to future service periods.

 

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

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

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Beginning balance

$

108

 

 

$

100

 

 

$

116

 

 

$

70

 

Acquisition(1)(2)

 

—

 

 

 

—

 

 

 

—

 

 

 

24

 

Additions (2)

 

30

 

 

 

8

 

 

 

88

 

 

 

31

 

Revenue recognized that was included in the

    beginning balance

 

(33

)

 

 

(21

)

 

 

(99

)

 

 

(38

)

Ending balance

$

105

 

 

$

87

 

 

$

105

 

 

$

87

 

 

 

(1)

The amount during the nine months ended September 30, 2019 resulted from the eFront Transaction. See Note 3, Acquisition, for information on the eFront Transaction.

(2)

Amounts are net of revenue recognized.

 
v3.20.2
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

17. Stock-Based Compensation

Restricted Stock and RSUs.

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

 

Outstanding at

Restricted

Stock and

RSUs

 

 

Weighted-

Average

Grant Date

Fair Value

 

December 31, 2019

 

2,236,452

 

 

$

444.02

 

Granted

 

948,904

 

 

$

532.60

 

Converted

 

(923,213

)

 

$

427.06

 

Forfeited

 

(68,668

)

 

$

476.96

 

September 30, 2020

 

2,193,475

 

 

$

488.44

 

 

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

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

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

Performance-Based RSUs.  

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

 

Outstanding at

Performance-

Based RSUs

 

 

Weighted-

Average

Grant Date

Fair Value

 

December 31, 2019

 

742,918

 

 

$

436.84

 

Granted

 

238,478

 

 

$

533.58

 

Additional shares granted due to attainment of

    performance measures

 

30,600

 

 

$

375.26

 

Converted

 

(311,779

)

 

$

375.26

 

September 30, 2020

 

700,217

 

 

$

494.51

 

 

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

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

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

At September 30, 2020, total unrecognized stock-based compensation expense related to unvested performance-based awards was $158 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted-average period of 1.4 years.

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

Performance-based Stock Options.

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

Outstanding at

Shares

Under

Option

 

 

Weighted

Average

Exercise

Price

 

December 31, 2019

 

1,941,145

 

 

$

513.50

 

Forfeited

 

(25,353

)

 

$

513.50

 

September 30, 2020

 

1,915,792

 

 

$

513.50

 

 

 

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

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

v3.20.2
Net Capital Requirements
 9 Months Ended
Sep. 30, 2020
Regulatory Capital Requirements [Abstract]  
Net Capital Requirements

18. Net Capital Requirements

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

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

 
v3.20.2
Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

19. Accumulated Other Comprehensive Income (Loss)

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Beginning balance

$

(781

)

 

$

(664

)

 

$

(571

)

 

$

(691

)

Foreign currency translation adjustments(1)

 

180

 

 

 

(120

)

 

 

(30

)

 

 

(93

)

Ending balance

$

(601

)

 

$

(784

)

 

$

(601

)

 

$

(784

)

 

(1)

Amounts for the three months ended September 30, 2020 and 2019 include a loss from a net investment hedge of $26 million (net of tax benefit of $8 million) and a gain of $25 million (net of tax expense of $8 million), respectively. Amounts for the nine months ended September 30, 2020 and 2019 include a loss from a net investment hedge of $27 million (net of tax benefit of $8 million) and a gain of $28 million (net of tax expense of $9 million), respectively.

v3.20.2
Capital Stock
 9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Capital Stock

20. Capital Stock

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

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

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

 

Series C

 

 

 

 

 

 

 

 

Shares authorized, $0.01 par value

 

 

6,000,000

 

 

 

6,000,000

 

Shares issued and outstanding

 

 

—

 

 

 

—

 

Series D

 

 

 

 

 

 

 

 

Shares authorized, $0.01 par value

 

 

20,000,000

 

 

 

20,000,000

 

Shares issued and outstanding

 

 

—

 

 

 

—

 

 

(1) 

Shares held by PNC.

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

Share Repurchases.  During the nine months ended September 30, 2020, the Company repurchased 0.8 million common shares in open market transactions under the share repurchase program for approximately $412 million. At September 30, 2020, there were 5.1 million shares still authorized to be repurchased. During the nine months ended September 30, 2020, the Company has repurchased an aggregate of approximately $1.5 billion of common shares, including the repurchase from PNC described above.

 
v3.20.2
Income Taxes
 9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

21. Income Taxes

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

Income tax expense for the three and nine months ended September 30, 2020 also included a $54 million noncash net expense related to the revaluation of certain deferred tax assets and liabilities as a result of legislation enacted in the United Kingdom increasing its corporate tax rate.

  
v3.20.2
Earnings Per Share
 9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Earnings Per Share

22. 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 any outstanding nonvoting participating preferred stock in the calculation of average basic and diluted shares outstanding. As of September 30, 2020, there were no shares of preferred stock outstanding.

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions, except shares and per share data)

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income attributable to BlackRock

$

1,364

 

 

$

1,119

 

 

$

3,384

 

 

$

3,175

 

Basic weighted-average shares outstanding

 

152,488,073

 

 

 

155,280,877

 

 

 

153,816,544

 

 

 

156,290,212

 

Dilutive effect of nonparticipating RSUs

 

1,254,191

 

 

 

1,166,510

 

 

 

1,143,268

 

 

 

1,095,744

 

Total diluted weighted-average shares outstanding

 

153,742,264

 

 

 

156,447,387

 

 

 

154,959,812

 

 

 

157,385,956

 

Basic earnings per share

$

8.94

 

 

$

7.21

 

 

$

22.00

 

 

$

20.31

 

Diluted earnings per share

$

8.87

 

 

$

7.15

 

 

$

21.84

 

 

$

20.17

 

 

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

 
v3.20.2
Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information

23. 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.

 

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in millions)

 

September 30,

 

 

September 30,

 

Revenue

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Americas

 

$

2,631

 

 

$

2,445

 

 

$

7,581

 

 

$

7,051

 

Europe

 

 

1,574

 

 

 

1,080

 

 

 

3,661

 

 

 

3,018

 

Asia-Pacific

 

 

164

 

 

 

167

 

 

 

485

 

 

 

493

 

Total revenue

 

$

4,369

 

 

$

3,692

 

 

$

11,727

 

 

$

10,562

 

 

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

 

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

 

(in millions)

 

September 30,

 

 

December 31,

 

Long-lived Assets

 

2020

 

 

2019

 

Americas

 

$

13,805

 

 

$

13,830

 

Europe

 

 

1,355

 

 

 

1,360

 

Asia-Pacific

 

 

87

 

 

 

87

 

Total long-lived assets

 

$

15,247

 

 

$

15,277

 

 

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

v3.20.2
Subsequent Events
 9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events

24. Subsequent Events

Elimination of Preferred Stock. As a result of PNC’s exit of its entire ownership position in the Company, on October 6, 2020, the Company filed a Certificate of Elimination to its Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) with the Secretary of State for the state of Delaware eliminating each of the Company’s Series A, B and C Convertible Participating Preferred Stock and Series D Participating Preferred Stock (collectively, the “Preferred Stock”). As of October 6, 2020 (the date of filing the Certificate of Elimination), there were no outstanding shares of the Preferred Stock.

The Company conducted a review for additional subsequent events and determined that no subsequent events had occurred that would require accrual or additional disclosures.
v3.20.2
Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2020
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 (“NCI”) on the condensed consolidated statements of financial condition represents the portion of consolidated sponsored investment funds in which the Company does not have direct equity ownership. Accounts and transactions between consolidated entities have been eliminated.

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

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

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

Certain prior period presentations and disclosures, while not required to be recast, were reclassified to ensure comparability with current period classifications.
Accounting Pronouncements Adopted in the Six Months Ended June 31, 2020

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

Measurement of Credit Losses. In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which significantly changes the accounting and disclosures for credit losses for most financial assets. The new guidance requires an estimate of expected lifetime credit losses and eliminates the existing recognition thresholds under current models. The adoption of ASU 2016-13, which was effective for the Company on January 1, 2020, did not have a material impact on its condensed consolidated financial statements.
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 collateralized loan obligations (“CLOs”), bank loans, 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, investments in CLOs and bank loans held within consolidated CLOs.

 

•

Level 3 liabilities include contingent liabilities related to borrowings of consolidated CLOs and 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.

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

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

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

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

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

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

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

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, 2020 and 2019, the Company had not resold or repledged any of the collateral received under these arrangements. At September 30, 2020 and December 31, 2019, the fair value of loaned securities held by separate accounts was approximately $14 billion and $14.4 billion, respectively, and the fair value of the collateral held under these securities lending agreements was approximately $15.1 billion and $15.5 billion, respectively.

v3.20.2
Acquisition (Tables)
 9 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Summary of Fair Values of Assets Acquired and Liabilities Assumed

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Fair Value

 

Accounts receivable

 

$

61

 

Finite-lived intangible assets:

 

 

 

 

Customer relationships

 

 

400

 

Technology-related

 

 

203

 

Trade name

 

 

14

 

Goodwill

 

 

1,044

 

Other assets

 

 

49

 

Deferred income tax liabilities

 

 

(146

)

Other liabilities assumed

 

 

(125

)

Total consideration, net of cash acquired

 

$

1,500

 

 

 

 

 

 

Summary of consideration, net of cash acquired:

 

 

 

 

Cash paid including settlement of outstanding debt of approximately $0.2 billion

 

$

1,555

 

Cash acquired

 

 

(55

)

Total consideration, net of cash acquired

 

$

1,500

 

 

 

 

 

 

   
v3.20.2
Cash, Cash Equivalents and Restricted Cash (Tables)
 9 Months Ended
Sep. 30, 2020
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]  
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash

 

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

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

(in millions)

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,507

 

 

$

4,829

 

Restricted cash included in other assets

 

 

17

 

 

 

17

 

Total cash, cash equivalents and restricted cash

 

$

6,524

 

 

$

4,846

 
v3.20.2
Investments (Tables)
 9 Months Ended
Sep. 30, 2020
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)

2020

 

 

2019

 

Debt securities:

 

 

 

 

 

 

 

Held-to-maturity investments

$

284

 

 

$

249

 

Trading securities

 

1,821

 

 

 

1,249

 

Total debt securities

 

2,105

 

 

 

1,498

 

Equity securities at FVTNI(1)

 

2,090

 

 

 

1,926

 

Equity method investments(2)

 

1,036

 

 

 

943

 

Bank loans

 

226

 

 

 

204

 

Federal Reserve Bank stock(3)

 

94

 

 

 

93

 

Carried interest(4)

 

483

 

 

 

528

 

Other investments(5)

 

273

 

 

 

297

 

Total investments

$

6,307

 

 

$

5,489

 

 

 

(1)

Fair value recorded through net income (“FVTNI”).

(2)

Equity method investments primarily include BlackRock’s direct investments in certain BlackRock sponsored investment funds.

(3)

At both September 30, 2020 and December 31, 2019, there were no indicators of impairment of Federal Reserve Bank stock, which is held for regulatory purposes and is restricted from sale.

(4)

Carried interest represents allocations to BlackRock’s general partner capital accounts from certain sponsored investment funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds.

(5)

Other investments include BlackRock’s investments in nonmarketable equity securities, which are measured at cost, adjusted for observable price changes and private equity and real asset investments of consolidated sponsored investment products measured at fair value.

 
Summary of Cost and Carrying Value of Trading Debt Securities and Equity Securities at FVTNI

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

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2020

 

 

December 31, 2019

 

(in millions)

Cost

 

 

Carrying

Value

 

 

Cost

 

 

Carrying

Value

 

Trading debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt

$

1,447

 

 

$

1,441

 

 

$

822

 

 

$

844

 

Government debt

 

269

 

 

 

270

 

 

 

268

 

 

 

269

 

Asset/mortgage-backed debt

 

126

 

 

 

110

 

 

 

141

 

 

 

136

 

Total trading debt securities

$

1,842

 

 

$

1,821

 

 

$

1,231

 

 

$

1,249

 

Equity securities at FVTNI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities/mutual funds

$

1,989

 

 

$

2,090

 

 

$

1,769

 

 

$

1,926

 

Total equity securities at FVTNI

$

1,989

 

 

$

2,090

 

 

$

1,769

 

 

$

1,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
v3.20.2
Consolidated Sponsored Investment Products (Tables)
 9 Months Ended
Sep. 30, 2020
Statement Of Financial Position [Abstract]  
Consolidated VIEs And VREs Recorded in Condensed Consolidated Statements of Financial Condition

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

 

 

September 30, 2020

 

 

December 31, 2019

 

(in millions)

 

VIEs

 

 

VREs

 

 

Total

 

 

VIEs

 

 

VREs

 

 

Total

 

Cash and cash equivalents

 

$

186

 

 

$

22

 

 

$

208

 

 

$

131

 

 

$

10

 

 

$

141

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading debt securities

 

 

1,551

 

 

 

238

 

 

 

1,789

 

 

 

1,059

 

 

 

151

 

 

 

1,210

 

Equity securities at FVTNI

 

 

1,458

 

 

 

397

 

 

 

1,855

 

 

 

1,330

 

 

 

332

 

 

 

1,662

 

Bank loans

 

 

226

 

 

 

—

 

 

 

226

 

 

 

204

 

 

 

—

 

 

 

204

 

Other investments

 

 

185

 

 

 

—

 

 

 

185

 

 

 

194

 

 

 

—

 

 

 

194

 

Carried interest

 

 

462

 

 

 

—

 

 

 

462

 

 

 

514

 

 

 

—

 

 

 

514

 

Total investments

 

 

3,882

 

 

 

635

 

 

 

4,517

 

 

 

3,301

 

 

 

483

 

 

 

3,784

 

Other assets

 

 

84

 

 

 

25

 

 

 

109

 

 

 

68

 

 

 

5

 

 

 

73

 

Other liabilities(1)

 

 

(798

)

 

 

(71

)

 

 

(869

)

 

 

(820

)

 

 

(20

)

 

 

(840

)

Noncontrolling interests

 

 

(2,026

)

 

 

(117

)

 

 

(2,143

)

 

 

(1,348

)

 

 

(34

)

 

 

(1,382

)

BlackRock's net interests in

   consolidated investment products

 

$

1,328

 

 

$

494

 

 

$

1,822

 

 

$

1,332

 

 

$

444

 

 

$

1,776

 

 

(1)

At September 30, 2020 and December 31, 2019, other liabilities of VIEs include $233 million and $195 million, respectively, related to borrowings of a consolidated CLO.
Schedule of Nonoperating Gains (Loss) Related to Consolidated Variable Interest Entity

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)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating net gain (loss) on consolidated VIEs

 

$

213

 

 

$

(5

)

 

$

186

 

 

$

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to NCI on consolidated VIEs

 

$

149

 

 

$

—

 

 

$

169

 

 

$

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
v3.20.2
Variable Interest Entities (Tables)
 9 Months Ended
Sep. 30, 2020
Variable Interest Entity, Not Primary Beneficiary [Member]  
Variable Interest Entity [Line Items]  
Schedule of VIE Assets and Liabilities At September 30, 2020 and December 31, 2019, the Company’s carrying value of assets and liabilities included on the condensed consolidated statements of financial condition pertaining to nonconsolidated VIEs and its maximum risk of loss related to VIEs for which it held a variable interest, but for which it was not the primary beneficiary, was as follows:

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2020

 

Investments

 

 

Advisory Fee Receivables

 

 

Other Net Assets (Liabilities)

 

 

Maximum Risk of Loss(1)

 

Sponsored investment products

 

$

626

 

 

$

80

 

 

$

(13

)

 

$

723

 

At December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sponsored investment products

 

$

539

 

 

$

71

 

 

$

(10

)

 

$

627

 

 

 

(1)

At both September 30, 2020 and December 31, 2019, BlackRock’s maximum risk of loss associated with these VIEs primarily related to BlackRock’s investments and the collection of advisory fee receivables.

v3.20.2
Fair Value Disclosures (Tables)
 9 Months Ended
Sep. 30, 2020
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

 

September 30, 2020

(in millions)

Quoted Prices in

Active

Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Investments

Measured at

NAV(1)

 

 

Other(2)

 

 

September 30,

2020

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity investments

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

284

 

 

$

284

 

Trading securities

 

—

 

 

 

1,810

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

1,821

 

Total debt securities

 

—

 

 

 

1,810

 

 

 

11

 

 

 

—

 

 

 

284

 

 

 

2,105

 

Equity securities at FVTNI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities/mutual funds

 

2,090

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,090

 

Equity method:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity and fixed income mutual funds

 

242

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

242

 

Hedge funds/funds of hedge funds

 

—

 

 

 

—

 

 

 

—

 

 

 

266

 

 

 

—

 

 

 

266

 

Private equity funds

 

—

 

 

 

—

 

 

 

—

 

 

 

285

 

 

 

—

 

 

 

285

 

Real assets funds

 

—

 

 

 

—

 

 

 

—

 

 

 

234

 

 

 

—

 

 

 

234

 

Other

 

—

 

 

 

—

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

9

 

Total equity method

 

242

 

 

 

—

 

 

 

—

 

 

 

794

 

 

 

—

 

 

 

1,036

 

Bank loans

 

—

 

 

 

9

 

 

 

217

 

 

 

—

 

 

 

—

 

 

 

226

 

Federal Reserve Bank Stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

94

 

 

 

94

 

Carried interest

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

483

 

 

 

483

 

Other investments(3)

 

—

 

 

 

—

 

 

 

10

 

 

 

93

 

 

 

170

 

 

 

273

 

Total investments

 

2,332

 

 

 

1,819

 

 

 

238

 

 

 

887

 

 

 

1,031

 

 

 

6,307

 

Other assets(4)

 

192

 

 

 

18

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

210

 

Separate account assets

 

65,032

 

 

 

29,766

 

 

 

—

 

 

 

—

 

 

 

1,196

 

 

 

95,994

 

Separate account collateral held under securities

   lending agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

10,250

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,250

 

Debt securities

 

—

 

 

 

4,887

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,887

 

Total separate account collateral held under

   securities lending agreements

 

10,250

 

 

 

4,887

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,137

 

Total

$

77,806

 

 

$

36,490

 

 

$

238

 

 

$

887

 

 

$

2,227

 

 

$

117,648

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separate account collateral liabilities under

   securities lending agreements

$

10,250

 

 

$

4,887

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15,137

 

Other liabilities(5)

 

—

 

 

 

36

 

 

 

261

 

 

 

—

 

 

 

—

 

 

 

297

 

Total

$

10,250

 

 

$

4,923

 

 

$

261

 

 

$

—

 

 

$

—

 

 

$

15,434

 

 

(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 amortized cost and cost, adjusted for observable price changes, 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 amount primarily includes direct investments in private equity companies held by private equity funds.

(4)

Level 1 amount includes a minority investment in a publicly traded company.

(5)

Level 2 amount primarily includes fair value of derivatives (See Note 9, Derivatives and Hedging, for more information). Level 3 amounts primarily include borrowings of a consolidated CLO classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and contingent liabilities related to certain acquisitions (see Note 15, Commitments and Contingencies, for more information).

 

 

Assets and liabilities measured at fair value on a recurring basis

 

December 31, 2019

(in millions)

Quoted Prices in

Active

Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Investments

Measured at

NAV(1)

 

 

Other(2)

 

 

December 31,

2019

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity investments

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

249

 

 

$

249

 

Trading securities

 

—

 

 

 

1,241

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

1,249

 

Total debt securities

 

—

 

 

 

1,241

 

 

 

8

 

 

 

—

 

 

 

249

 

 

 

1,498

 

Equity securities at FVTNI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities/mutual funds

 

1,926

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,926

 

Equity method:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity and fixed income mutual funds

 

157

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

157

 

Hedge funds/funds of hedge funds

 

—

 

 

 

—

 

 

 

—

 

 

 

220

 

 

 

—

 

 

 

220

 

Private equity funds

 

—

 

 

 

—

 

 

 

—

 

 

 

248

 

 

 

—

 

 

 

248

 

Real assets funds

 

—

 

 

 

—

 

 

 

—

 

 

 

296

 

 

 

—

 

 

 

296

 

Other

 

12

 

 

 

—

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

22

 

Total equity method

 

169

 

 

 

—

 

 

 

—

 

 

 

774

 

 

 

—

 

 

 

943

 

Bank loans

 

—

 

 

 

27

 

 

 

177

 

 

 

—

 

 

 

—

 

 

 

204

 

Federal Reserve Bank Stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

93

 

 

 

93

 

Carried interest

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

528

 

 

 

528

 

Other investments(3)

 

—

 

 

 

—

 

 

 

9

 

 

 

98

 

 

 

190

 

 

 

297

 

Total investments

 

2,095

 

 

 

1,268

 

 

 

194

 

 

 

872

 

 

 

1,060

 

 

 

5,489

 

Other assets(4)

 

173

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

173

 

Separate account assets

 

72,515

 

 

 

29,582

 

 

 

—

 

 

 

—

 

 

 

747

 

 

 

102,844

 

Separate account collateral held under

   securities lending agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

10,209

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,209

 

Debt securities

 

—

 

 

 

5,257

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,257

 

Total separate account collateral held under

   securities lending agreements

 

10,209

 

 

 

5,257

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,466

 

Total

$

84,992

 

 

$

36,107

 

 

$

194

 

 

$

872

 

 

$

1,807

 

 

$

123,972

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separate account collateral liabilities

   under securities lending agreements

$

10,209

 

 

$

5,257

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15,466

 

Other liabilities(5)

 

—

 

 

 

10

 

 

 

388

 

 

 

—

 

 

 

—

 

 

 

398

 

Total

$

10,209

 

 

$

5,267

 

 

$

388

 

 

$

—

 

 

$

—

 

 

$

15,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 amortized cost and cost, adjusted for observable price changes, 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 amount primarily includes direct investments in private equity companies held by private equity funds.

(4)

Amount includes a minority investment in a publicly traded company.

(5)

Level 3 amount primarily includes contingent liabilities related to certain acquisitions (see Note 15, Commitments and Contingencies, for more information) and borrowings of a consolidated CLO classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets.
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, 2020

 

(in millions)

 

June 30,

2020

 

 

Realized

and

Unrealized

Gains

(Losses)

 

 

Purchases

 

 

Sales and

Maturities

 

 

Issuances and

other

Settlements(1)

 

 

Transfers

into

Level 3

 

 

Transfers

out of

Level 3

 

 

September 30,

2020

 

 

Total Net

Unrealized

Gains (Losses)

Included in

Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

10

 

 

$

—

 

 

$

1

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

Total debt securities

 

 

10

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11

 

 

 

—

 

Private equity

 

 

16

 

 

 

—

 

 

 

—

 

 

 

(6

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10

 

 

 

—

 

Bank loans

 

 

229

 

 

 

—

 

 

 

—

 

 

 

(9

)

 

 

—

 

 

 

—

 

 

 

(3

)

 

 

217

 

 

 

—

 

Total investments

 

$

255

 

 

$

—

 

 

$

1

 

 

$

(15

)

 

$

—

 

 

$

—

 

 

$

(3

)

 

$

238

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities(3)

 

$

262

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(1

)

 

$

—

 

 

$

—

 

 

$

261

 

 

$

—

 

Total Level 3 liabilities

 

$

262

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(1

)

 

$

—

 

 

$

—

 

 

$

261

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include proceeds from borrowings of a consolidated CLO and contingent liability payments, related to certain acquisitions.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

(3)

Amounts include borrowings related to a consolidated CLO and 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, 2020

 

(in millions)

 

December 31,

2019

 

 

Realized

and

Unrealized

Gains

(Losses)

 

 

Purchases

 

 

Sales and

Maturities

 

 

Issuances and

other

Settlements(1)

 

 

Transfers

into

Level 3

 

 

Transfers

out of

Level 3

 

 

September 30,

2020

 

 

Total Net

Unrealized

Gains (Losses)

Included in

Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

8

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

Total debt securities

 

 

8

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11

 

 

 

—

 

Private equity

 

 

9

 

 

 

—

 

 

 

8

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10

 

 

 

—

 

Bank loans

 

 

177

 

 

 

—

 

 

 

36

 

 

 

(9

)

 

 

—

 

 

 

16

 

 

 

(3

)

 

 

217

 

 

 

—

 

Total investments

 

$

194

 

 

$

—

 

 

$

47

 

 

$

(16

)

 

$

—

 

 

$

16

 

 

$

(3

)

 

$

238

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities(3)

 

$

388

 

 

$

(23

)

 

$

—

 

 

$

—

 

 

$

(150

)

 

$

—

 

 

$

—

 

 

$

261

 

 

$

(5

)

Total Level 3 liabilities

 

$

388

 

 

$

(23

)

 

$

—

 

 

$

—

 

 

$

(150

)

 

$

—

 

 

$

—

 

 

$

261

 

 

$

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include proceeds from borrowings of a consolidated CLO and contingent liability payments, related to certain acquisitions.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

(3)

Amounts include borrowings related to a consolidated CLO and 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, 2019

 

(in millions)

 

June 30,

2019

 

 

Realized

and

Unrealized

Gains

(Losses)

 

 

Purchases

 

 

Sales and

Maturities

 

 

Issuances

and

other

Settlements(1)

 

 

Transfers

into

Level 3

 

 

Transfers

out of

Level 3

 

 

September 30,

2019

 

 

Total Net

Unrealized

Gains (Losses)

Included in

Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

2

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5

 

 

$

—

 

Total debt securities

 

 

2

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

—

 

Private equity

 

 

9

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

9

 

 

 

1

 

Bank loans

 

 

125

 

 

 

—

 

 

 

32

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

157

 

 

 

—

 

Total investments

 

 

136

 

 

 

1

 

 

 

35

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

171

 

 

 

1

 

Total Level 3 assets

 

$

136

 

 

$

1

 

 

$

35

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(1

)

 

$

171

 

 

$

1

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities(3)

 

$

310

 

 

$

1

 

 

$

—

 

 

$

—

 

 

$

44

 

 

$

—

 

 

$

—

 

 

$

353

 

 

$

1

 

Total Level 3 liabilities

 

$

310

 

 

$

1

 

 

$

—

 

 

$

—

 

 

$

44

 

 

$

—

 

 

$

—

 

 

$

353

 

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include proceeds from borrowings of a consolidated CLO.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

(3)

Amounts include contingent liabilities in connection with certain acquisitions and borrowings related to a consolidated CLO.

 

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

(in millions)

 

December 31,

2018

 

 

Realized

and

Unrealized

Gains

(Losses)

 

 

Purchases

 

 

Sales and

Maturities

 

 

Issuances

and

other

Settlements(1)

 

 

Transfers

into

Level 3

 

 

Transfers

out of

Level 3(2)

 

 

September 30,

2019

 

 

Total Net

Unrealized

Gains (Losses)

Included in

Earnings(3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

4

 

 

$

—

 

 

$

5

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(4

)

 

$

5

 

 

$

—

 

Total debt securities

 

 

4

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4

)

 

 

5

 

 

 

—

 

Private equity

 

 

82

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(73

)

 

 

9

 

 

 

—

 

Bank loans(4)

 

 

70

 

 

 

—

 

 

 

87

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

157

 

 

 

—

 

Total investments

 

 

156

 

 

 

—

 

 

 

92

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(77

)

 

 

171

 

 

 

—

 

Total Level 3 assets

 

$

156

 

 

$

—

 

 

$

92

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(77

)

 

$

171

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities(4)

 

$

371

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

(36

)

 

$

—

 

 

$

—

 

 

$

353

 

 

$

(18

)

Total Level 3 liabilities

 

$

371

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

(36

)

 

$

—

 

 

$

—

 

 

$

353

 

 

$

(18

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include proceeds from borrowings of a consolidated CLO and contingent liability payments, related to certain acquisitions.

(2)

Amounts include an investment in a consolidated entity that no longer qualifies as an investment company and is no longer accounted for under a fair value measure.

(3)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

(4)

Amounts include contingent liabilities in connection with certain acquisitions and borrowings related to a consolidated CLO.

 
Fair Value of Financial Assets and Financial Liabilities

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

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

 

(in millions)

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Fair Value

Hierarchy

 

Financial Assets(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

6,507

 

 

$

6,507

 

 

$

4,829

 

 

$

4,829

 

 

Level 1

(2) (3)

Other assets

$

41

 

 

$

41

 

 

$

68

 

 

$

68

 

 

Level 1

(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

$

7,227

 

 

$

7,857

 

 

$

4,955

 

 

$

5,254

 

 

Level 2

(5)

 

(1)

See Note 5, Investments, for further information on investments not held at fair value.

(2)

Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities.

(3)

At September 30, 2020 and December 31, 2019, approximately $667 million and $674 million, respectively, of money market funds were recorded within cash and cash equivalents on the condensed consolidated statements of financial condition. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund.

(4)

Other assets include restricted cash and cash collateral deposited with certain derivative counterparties. The carrying values of these assets approximate fair value due to their short-term maturities.

(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 determined using market prices at the end of September 2020 and December 2019, respectively. See Note 14, Borrowings, for the fair value of each of the Company’s long-term borrowings.

 
Investments in Certain Entities that Calculate Net Asset Value per Share The following tables list information regarding all investments in entities that use a fair value measurement to account for both their financial assets and financial liabilities in their calculation of a NAV per share (or equivalent).

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Ref

 

Fair Value

 

 

Total

Unfunded

Commitments

 

 

Redemption

Frequency

 

Redemption

Notice Period

Equity method:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds/funds of hedge funds

 

(a)

 

$

266

 

 

$

107

 

 

Daily/Monthly (23%)

Quarterly (20%)

N/R (57%)

 

1 – 90 days

Private equity funds

 

(b)

 

 

285

 

 

 

253

 

 

N/R

 

N/R

Real assets funds

 

(c)

 

 

234

 

 

 

216

 

 

Quarterly (41%)

N/R (59%)

 

60 days

Other

 

 

 

 

9

 

 

 

6

 

 

N/R

 

N/R

Consolidated sponsored investment

   products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity funds of funds

 

(d)

 

 

15

 

 

 

7

 

 

N/R

 

N/R

Hedge fund

 

(a)

 

 

3

 

 

 

—

 

 

Quarterly

 

90 days

Real assets funds

 

(c)

 

 

75

 

 

 

101

 

 

N/R

 

N/R

Total

 

 

 

$

887

 

 

$

690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Ref

 

Fair Value

 

 

Total

Unfunded

Commitments

 

 

Redemption

Frequency

 

Redemption

Notice Period

Equity method:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds/funds of hedge funds

 

(a)

 

$

220

 

 

$

120

 

 

Daily/Monthly (27%)

Quarterly (15%)

N/R (58%)

 

1 – 90 days

Private equity funds

 

(b)

 

 

248

 

 

 

212

 

 

N/R

 

N/R

Real assets funds

 

(c)

 

 

296

 

 

 

120

 

 

Quarterly (57%)

N/R (43%)

 

60 days

Other

 

 

 

 

10

 

 

 

9

 

 

N/R

 

N/R

Consolidated sponsored investment

   products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity funds of funds

 

(d)

 

 

23

 

 

 

9

 

 

N/R

 

N/R

Hedge fund

 

(a)

 

 

3

 

 

 

—

 

 

Quarterly

 

90 days

Real assets funds

 

(c)

 

 

72

 

 

 

83

 

 

N/R

 

N/R

Total

 

 

 

$

872

 

 

$

553

 

 

 

 

 

 

N/R – not redeemable

 

(1)

Comprised of equity method investments, which include 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. The liquidation period for the investments in the funds that are not subject to redemption is unknown at both September 30, 2020 and December 31, 2019.

(b)

This category includes 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. The liquidation period for the investments in these funds is unknown at both September 30, 2020 and December 31, 2019.

(c)

This category includes several real assets funds that invest directly and indirectly in real estate or 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 and realizations of the underlying assets of the funds. The liquidation period for the investments in the funds that are not subject to redemptions is unknown at both September 30, 2020 and December 31, 2019. The total remaining unfunded commitments to real assets funds were $317 million and $203 million at September 30, 2020 and December 31, 2019, respectively. The Company’s portion of the total remaining unfunded commitments was $284 million and $172 million at September 30, 2020 and December 31, 2019, respectively.

(d)

This category includes the underlying third-party private equity funds within consolidated BlackRock sponsored private equity funds of funds. The fair values of the investments in the third-party funds have been estimated using capital accounts representing the Company’s ownership interest in each fund in the portfolio as well as other performance inputs. These investments are not subject to redemption or are not currently redeemable; however, for certain funds, the Company may sell or transfer its interest, which may need approval by the general partner of the underlying funds. Due to the nature of the investments in this category, the Company reduces its investment by distributions that are received through the realization of the underlying assets of the funds. The liquidation period for the underlying assets of these funds is unknown at both September 30, 2020 and December 31, 2019. The total remaining unfunded commitments to other third-party funds were $7 million and $9 million at September 30, 2020 and December 31, 2019, respectively. The Company had contractual obligations to the consolidated funds of $17 million and $22 million at September 30, 2020 and December 31, 2019, respectively. 

 
Summary of Information Related to Bank Loans and Borrowings of Consolidated CLO Recorded within Investments and Borrowings of Consolidated VIEs Respectively for which Fair Value Option was Elected

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

 

 

September 30,

 

 

December 31,

 

(in millions)

 

2020

 

 

2019

 

CLO Bank loans:

 

 

 

 

 

 

 

 

Aggregate principal amounts outstanding

 

$

231

 

 

$

204

 

Fair value

 

 

226

 

 

 

204

 

Aggregate unpaid principal balance in excess of (less than) fair value

 

$

5

 

 

$

—

 

 

 

 

 

 

 

 

 

 

CLO Borrowings:

 

 

 

 

 

 

 

 

Aggregate principal amounts outstanding

 

$

249

 

 

$

195

 

Fair value

 

$

233

 

 

$

195

 
v3.20.2
Derivative and Hedging (Tables)
 9 Months Ended
Sep. 30, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Summary of Fair Values of Derivatives Instruments Recognized in Condensed Consolidated Statements of Financial Condition

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

 

 

September 30, 2020

 

(in millions)

Assets

 

 

 

Liabilities

 

Derivative instruments

Statement of

Financial Condition

Classification

 

Fair Value

 

 

 

Statement of

Financial Condition

Classification

 

Fair Value

 

Total return swaps

Other assets

 

$

6

 

 

 

Other liabilities

 

$

10

 

Forward foreign currency exchange

   contracts

Other assets

 

 

12

 

 

 

Other liabilities

 

 

13

 

Total

 

 

$

18

 

 

 

 

 

$

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary of Realized and Unrealized Gains (Losses) Recognized in Condensed Consolidated Statements of Income on Derivative Instruments

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

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

 

September 30,

 

 

September 30,

 

(in millions)

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Derivative Instruments

 

Statement of Income Classification

 

Gains (Losses)

 

 

Gains (Losses)

 

Total return swaps

 

Nonoperating income (expense)

 

$

(42

)

 

$

2

 

 

$

9

 

 

$

(62

)

Forward foreign currency

   exchange contracts

 

General and administration expense

 

 

64

 

 

 

(43

)

 

 

(34

)

 

 

(56

)

Total gain (loss) from derivative instruments

 

$

22

 

 

$

(41

)

 

$

(25

)

 

$

(118

)
v3.20.2
Goodwill (Tables)
 9 Months Ended
Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill Activity

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

 

(in millions)

 

 

 

December 31, 2019

$

14,562

 

Goodwill adjustments related to Quellos(1)

 

(8

)

September 30, 2020

$

14,554

 

 

(1)

Amount 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 $82 million and $106 million at September 30, 2020 and December 31, 2019, respectively.
v3.20.2
Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2020
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, 2019

$

17,578

 

 

$

791

 

 

$

18,369

 

Amortization expense

 

—

 

 

 

(79

)

 

 

(79

)

September 30, 2020

$

17,578

 

 

$

712

 

 

$

18,290

 

 
v3.20.2
Leases (Tables)
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Components of Lease Cost

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease cost(1)

$

37

 

 

$

36

 

 

$

110

 

 

$

104

 

Variable lease cost(2)

 

10

 

 

 

10

 

 

 

29

 

 

 

28

 

Total lease cost

$

47

 

 

$

46

 

 

$

139

 

 

$

132

 

 

(1)

Amounts include short-term leases, which are immaterial for the three and nine months ended September 30, 2020 and 2019.

(2)

Amounts include operating lease payments, which may be adjusted based on usage, changes in an index or market rate.
Schedule of Operating Leases Included on Condensed Consolidated Statement of Financial Condition

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

 

Statement of

 

 

 

 

 

 

 

 

 

Financial Condition

 

September 30,

 

 

December 31,

 

(in millions)

Classification

 

2020

 

 

2019

 

Statement of Financial Condition information:

 

 

 

 

 

 

 

 

 

Operating lease right-of-use ("ROU") assets

Other assets

 

$

646

 

 

$

669

 

Operating lease liabilities

Other liabilities

 

$

756

 

 

$

776

 

 
Schedule of Supplemental Information Related to Operating Lease

Supplemental information related to operating leases is summarized below:

 

 

 

Nine Months Ended

 

 

 

September 30,

 

(in millions)

 

2020

 

 

2019

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

114

 

 

$

105

 

 

 

 

 

 

 

 

 

 

Supplemental noncash information:

 

 

 

 

 

 

 

 

ROU assets in exchange for operating lease liabilities in connection with the

   adoption of ASU 2016-02, "Leases"

 

$

—

 

 

$

661

 

ROU assets in exchange for operating lease liabilities

 

$

77

 

 

$

54

 

 

 

 

September 30,

 

December 31,

 

2020

 

2019

Lease term and discount rate:

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term

 

8

 

years

 

 

9

 

years

Weighted-average discount rate

 

3

 

%

 

 

3

 

%

 
v3.20.2
Borrowings (Tables)
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Carrying Value and Fair Value of Long-Term Borrowings Determined Market Prices EUR/USD Foreign Exchange Rate

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

 

(in millions)

Maturity Amount

 

 

Unamortized

Discount

and Debt

Issuance Costs

 

 

Carrying Value

 

 

Fair Value

 

4.25% Notes due 2021

$

750

 

 

$

—

 

 

$

750

 

 

$

769

 

3.375% Notes due 2022

 

750

 

 

 

(2

)

 

 

748

 

 

 

787

 

3.50% Notes due 2024

 

1,000

 

 

 

(3

)

 

 

997

 

 

 

1,102

 

1.25% Notes due 2025

 

821

 

 

 

(3

)

 

 

818

 

 

 

868

 

3.20% Notes due 2027

 

700

 

 

 

(5

)

 

 

695

 

 

 

794

 

3.25% Notes due 2029

 

1,000

 

 

 

(12

)

 

 

988

 

 

 

1,155

 

2.40% Notes due 2030

 

1,000

 

 

 

(7

)

 

 

993

 

 

 

1,086

 

1.90% Notes due 2031

 

1,250

 

 

 

(12

)

 

 

1,238

 

 

 

1,296

 

Total Long-term Borrowings

$

7,271

 

 

$

(44

)

 

$

7,227

 

 

$

7,857

 

 
v3.20.2
Revenue (Tables)
 9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]  
Summary of Investment Advisory, Administration Fees and Securities Lending Revenue by Type

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Investment advisory, administration fees and

   securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

$

457

 

 

$

391

 

 

$

1,236

 

 

$

1,151

 

iShares ETFs

 

880

 

 

 

872

 

 

 

2,551

 

 

 

2,589

 

Non-ETF Index

 

164

 

 

 

168

 

 

 

505

 

 

 

495

 

Equity subtotal

 

1,501

 

 

 

1,431

 

 

 

4,292

 

 

 

4,235

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

498

 

 

 

496

 

 

 

1,443

 

 

 

1,427

 

iShares ETFs

 

297

 

 

 

251

 

 

 

817

 

 

 

705

 

Non-ETF Index

 

113

 

 

 

98

 

 

 

354

 

 

 

293

 

Fixed income subtotal

 

908

 

 

 

845

 

 

 

2,614

 

 

 

2,425

 

Multi-asset

 

289

 

 

 

288

 

 

 

852

 

 

 

852

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

140

 

 

 

122

 

 

 

416

 

 

 

350

 

Liquid alternatives

 

132

 

 

 

105

 

 

 

361

 

 

 

301

 

Currency and commodities(1)

 

51

 

 

 

30

 

 

 

118

 

 

 

78

 

Alternatives subtotal

 

323

 

 

 

257

 

 

 

895

 

 

 

729

 

Long-Term

 

3,021

 

 

 

2,821

 

 

 

8,653

 

 

 

8,241

 

Cash management

 

204

 

 

 

159

 

 

 

593

 

 

 

447

 

Total base fees

 

3,225

 

 

 

2,980

 

 

 

9,246

 

 

 

8,688

 

Investment advisory performance fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

4

 

 

 

1

 

 

 

29

 

 

 

5

 

Fixed income

 

9

 

 

 

—

 

 

 

13

 

 

 

2

 

Multi-asset

 

10

 

 

 

1

 

 

 

13

 

 

 

7

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

6

 

 

 

5

 

 

 

55

 

 

 

40

 

Liquid alternatives

 

503

 

 

 

114

 

 

 

575

 

 

 

157

 

Alternatives subtotal

 

509

 

 

 

119

 

 

 

630

 

 

 

197

 

Total performance fees

 

532

 

 

 

121

 

 

 

685

 

 

 

211

 

Technology services revenue

 

282

 

 

 

259

 

 

 

834

 

 

 

700

 

Distribution fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retrocessions

 

188

 

 

 

166

 

 

 

519

 

 

 

491

 

12b-1 fees (US mutual fund distribution fees)

 

85

 

 

 

90

 

 

 

254

 

 

 

267

 

Other

 

15

 

 

 

14

 

 

 

44

 

 

 

41

 

Total distribution fees

 

288

 

 

 

270

 

 

 

817

 

 

 

799

 

Advisory and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory

 

14

 

 

 

21

 

 

 

48

 

 

 

62

 

Other

 

28

 

 

 

41

 

 

 

97

 

 

 

102

 

Total advisory and other revenue

 

42

 

 

 

62

 

 

 

145

 

 

 

164

 

Total revenue

$

4,369

 

 

$

3,692

 

 

$

11,727

 

 

$

10,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_____________________________________________________________

(1)      Amounts include commodity iShares ETFs.

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

By client type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

$

938

 

 

$

862

 

 

$

2,635

 

 

$

2,534

 

iShares ETFs

 

1,228

 

 

 

1,151

 

 

 

3,487

 

 

 

3,370

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

594

 

 

 

558

 

 

 

1,714

 

 

 

1,595

 

Index

 

261

 

 

 

250

 

 

 

817

 

 

 

742

 

Total institutional

 

855

 

 

 

808

 

 

 

2,531

 

 

 

2,337

 

Long-Term

 

3,021

 

 

 

2,821

 

 

 

8,653

 

 

 

8,241

 

Cash management

 

204

 

 

 

159

 

 

 

593

 

 

 

447

 

Total

$

3,225

 

 

$

2,980

 

 

$

9,246

 

 

$

8,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By investment style:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

$

1,511

 

 

$

1,401

 

 

$

4,292

 

 

$

4,073

 

Index and iShares ETFs

 

1,510

 

 

 

1,420

 

 

 

4,361

 

 

 

4,168

 

Long-Term

 

3,021

 

 

 

2,821

 

 

 

8,653

 

 

 

8,241

 

Cash management

 

204

 

 

 

159

 

 

 

593

 

 

 

447

 

Total

$

3,225

 

 

$

2,980

 

 

$

9,246

 

 

$

8,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Schedule of Estimated Investment Advisory, Administration Fees Expected to be Recognized in Future, Related to Unsatisfied Portion of Performance Obligations

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

 

September 30, 2020

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2020

 

 

 

2021

 

 

 

2022

 

 

 

2023

 

 

Thereafter

 

 

Total

 

Investment advisory and

   administration fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternatives(1)(2)

$

33

 

 

$

125

 

 

$

108

 

 

$

92

 

 

$

61

 

 

$

419

 

 

September 30, 2019

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2019

 

 

 

2020

 

 

 

2021

 

 

 

2022

 

 

Thereafter

 

 

Total

 

Investment advisory and

   administration fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternatives(1)(2)

$

22

 

 

$

85

 

 

$

71

 

 

$

62

 

 

$

59

 

 

$

299

 

 

(1)

Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at September 30, 2020 and 2019. Actual management fees could be higher to the extent additional committed capital is raised. These fees are generally billed on a quarterly basis in arrears.

(2)

The Company elected the following practical expedients and therefore does not include amounts related to (1) performance obligations with an original duration of one year or less, and (2) variable consideration related to future service periods.  

 
Schedule of Changes in Deferred Carried Interest Liability

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Beginning balance

$

418

 

 

$

365

 

 

$

483

 

 

$

293

 

Net increase (decrease) in unrealized allocations

 

29

 

 

 

17

 

 

 

4

 

 

 

116

 

Performance fee revenue recognized

 

—

 

 

 

—

 

 

 

(40

)

 

 

(27

)

Other

 

—

 

 

 

6

 

 

 

—

 

 

 

6

 

Ending balance

$

447

 

 

$

388

 

 

$

447

 

 

$

388

 

 

 
Schedule of Estimated Technology Services Revenue Expected to Be Recognized in Future, Related to Unsatisfied Portion of Performance Obligations

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

 

September 30, 2020

 

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2020

 

 

 

2021

 

 

 

2022

 

 

 

2023

 

 

Thereafter

 

 

Total

 

Technology services revenue(1)(2)

$

37

 

 

$

95

 

 

$

47

 

 

$

22

 

 

$

18

 

 

$

219

 

 

September 30, 2019

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2019

 

 

 

2020

 

 

 

2021

 

 

 

2022

 

 

Thereafter

 

 

Total

 

Technology services revenue(1)(2)

$

36

 

 

$

54

 

 

$

37

 

 

$

21

 

 

$

12

 

 

$

160

 

 

(1)

Technology services revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed.  

(2)

The Company elected the following practical expedients and therefore does not include amounts related to (1) performance obligations with an original duration of one year or less, and (2) variable consideration related to future service periods.

 
Schedule of Changes in Technology Services Deferred Revenue Liability

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

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Beginning balance

$

108

 

 

$

100

 

 

$

116

 

 

$

70

 

Acquisition(1)(2)

 

—

 

 

 

—

 

 

 

—

 

 

 

24

 

Additions (2)

 

30

 

 

 

8

 

 

 

88

 

 

 

31

 

Revenue recognized that was included in the

    beginning balance

 

(33

)

 

 

(21

)

 

 

(99

)

 

 

(38

)

Ending balance

$

105

 

 

$

87

 

 

$

105

 

 

$

87

 

 

 

(1)

The amount during the nine months ended September 30, 2019 resulted from the eFront Transaction. See Note 3, Acquisition, for information on the eFront Transaction.

(2)

Amounts are net of revenue recognized.

 
v3.20.2
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2020
Restricted Stock and RSU Activity

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

 

Outstanding at

Restricted

Stock and

RSUs

 

 

Weighted-

Average

Grant Date

Fair Value

 

December 31, 2019

 

2,236,452

 

 

$

444.02

 

Granted

 

948,904

 

 

$

532.60

 

Converted

 

(923,213

)

 

$

427.06

 

Forfeited

 

(68,668

)

 

$

476.96

 

September 30, 2020

 

2,193,475

 

 

$

488.44

 

 
Performance-Based RSUs [Member]  
Restricted Stock and RSU Activity

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

 

Outstanding at

Performance-

Based RSUs

 

 

Weighted-

Average

Grant Date

Fair Value

 

December 31, 2019

 

742,918

 

 

$

436.84

 

Granted

 

238,478

 

 

$

533.58

 

Additional shares granted due to attainment of

    performance measures

 

30,600

 

 

$

375.26

 

Converted

 

(311,779

)

 

$

375.26

 

September 30, 2020

 

700,217

 

 

$

494.51

 

 
Performance-Based Stock Options [Member]  
Stock Option Activity

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

Outstanding at

Shares

Under

Option

 

 

Weighted

Average

Exercise

Price

 

December 31, 2019

 

1,941,145

 

 

$

513.50

 

Forfeited

 

(25,353

)

 

$

513.50

 

September 30, 2020

 

1,915,792

 

 

$

513.50

 

 
v3.20.2
Accumulated Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Income (Loss)

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2020

 

 

2019

 

 

2020

 

 

2019

 

Beginning balance

$

(781

)

 

$

(664

)

 

$

(571

)

 

$

(691

)

Foreign currency translation adjustments(1)

 

180

 

 

 

(120

)

 

 

(30

)

 

 

(93

)

Ending balance

$

(601

)

 

$

(784

)

 

$

(601

)

 

$

(784

)

 

(1)

Amounts for the three months ended September 30, 2020 and 2019 include a loss from a net investment hedge of $26 million (net of tax benefit of $8 million) and a gain of $25 million (net of tax expense of $8 million), respectively. Amounts for the nine months ended September 30, 2020 and 2019 include a loss from a net investment hedge of $27 million (net of tax benefit of $8 million) and a gain of $28 million (net of tax expense of $9 million), respectively.

v3.20.2
Capital Stock (Tables)
 9 Months Ended
Sep. 30, 2020
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,

 

 

 

2020

 

 

2019

 

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

 

Series C

 

 

 

 

 

 

 

 

Shares authorized, $0.01 par value

 

 

6,000,000

 

 

 

6,000,000

 

Shares issued and outstanding

 

 

—

 

 

 

—

 

Series D

 

 

 

 

 

 

 

 

Shares authorized, $0.01 par value

 

 

20,000,000

 

 

 

20,000,000

 

Shares issued and outstanding

 

 

—

 

 

 

—

 

 

(1) 

Shares held by PNC.

v3.20.2
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2020
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, 2020 and 2019 under the treasury stock method:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions, except shares and per share data)

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income attributable to BlackRock

$

1,364

 

 

$

1,119

 

 

$

3,384

 

 

$

3,175

 

Basic weighted-average shares outstanding

 

152,488,073

 

 

 

155,280,877

 

 

 

153,816,544

 

 

 

156,290,212

 

Dilutive effect of nonparticipating RSUs

 

1,254,191

 

 

 

1,166,510

 

 

 

1,143,268

 

 

 

1,095,744

 

Total diluted weighted-average shares outstanding

 

153,742,264

 

 

 

156,447,387

 

 

 

154,959,812

 

 

 

157,385,956

 

Basic earnings per share

$

8.94

 

 

$

7.21

 

 

$

22.00

 

 

$

20.31

 

Diluted earnings per share

$

8.87

 

 

$

7.15

 

 

$

21.84

 

 

$

20.17

 
v3.20.2
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Total Revenue by Geographic Region

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in millions)

 

September 30,

 

 

September 30,

 

Revenue

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Americas

 

$

2,631

 

 

$

2,445

 

 

$

7,581

 

 

$

7,051

 

Europe

 

 

1,574

 

 

 

1,080

 

 

 

3,661

 

 

 

3,018

 

Asia-Pacific

 

 

164

 

 

 

167

 

 

 

485

 

 

 

493

 

Total revenue

 

$

4,369

 

 

$

3,692

 

 

$

11,727

 

 

$

10,562

 
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, 2020 and December 31, 2019 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located.

 

(in millions)

 

September 30,

 

 

December 31,

 

Long-lived Assets

 

2020

 

 

2019

 

Americas

 

$

13,805

 

 

$

13,830

 

Europe

 

 

1,355

 

 

 

1,360

 

Asia-Pacific

 

 

87

 

 

 

87

 

Total long-lived assets

 

$

15,247

 

 

$

15,277

 
v3.20.2
Significant Accounting Policies - Additional Information (Detail) - USD ($)
$ in Billions
Sep. 30, 2020
Dec. 31, 2019
Significant Accounting Policies [Line Items]    
Fair value of loaned securities $ 14.0 $ 14.4
Fair value of collateral held for loan securities $ 15.1 $ 15.5
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%  
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%  
ASU 2016-13 [Member]    
Significant Accounting Policies [Line Items]    
Change in accounting principle, accounting standards update, adopted true  
Change in accounting principle, accounting standards update, adoption date Jan. 01, 2020  
Change in accounting principle, accounting standards update, immaterial effect true  
v3.20.2
Acquisition - Additional Information (Detail) - eFront [Member]
$ in Billions
May 10, 2019
USD ($)
Business Acquisition [Line Items]  
Business acquisition, percentage of equity interest acquired 100.00%
Business acquisition purchase price, excluding settlement of debt $ 1.3
v3.20.2
Acquisition - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Millions
 9 Months Ended
May 10, 2019
Sep. 30, 2019
Sep. 30, 2020
Dec. 31, 2019
Business Acquisition [Line Items]        
Goodwill     $ 14,554 $ 14,562
Total consideration, net of cash acquired   $ 1,510    
eFront [Member]        
Business Acquisition [Line Items]        
Accounts receivable $ 61      
Goodwill 1,044      
Other assets 49      
Deferred income tax liabilities (146)      
Other liabilities assumed (125)      
Total consideration, net of cash acquired 1,500      
Cash paid including settlement of outstanding debt of approximately $0.2 billion 1,555      
Cash acquired (55)      
Total consideration, net of cash acquired 1,500      
eFront [Member] | Customer Relationships [Member]        
Business Acquisition [Line Items]        
Finite-lived intangible assets 400      
eFront [Member] | Technology-Related [Member]        
Business Acquisition [Line Items]        
Finite-lived intangible assets 203      
eFront [Member] | Trade Names [Member]        
Business Acquisition [Line Items]        
Finite-lived intangible assets $ 14      
v3.20.2
Acquisition - Summary of Initial and Revised Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail)
$ in Billions
May 10, 2019
USD ($)
eFront [Member]  
Business Acquisition [Line Items]  
Settlement of outstanding debt $ 0.2
v3.20.2
Cash, Cash Equivalents and Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Sep. 30, 2019
Dec. 31, 2018
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]        
Cash and cash equivalents [1] $ 6,507 $ 4,829    
Restricted cash included in other assets $ 17 $ 17    
Restricted Cash, Asset, Statement of Financial Position [Extensible List] us-gaap:OtherAssetsMember us-gaap:OtherAssetsMember    
Total cash, cash equivalents and restricted cash $ 6,524 $ 4,846 $ 4,624 $ 6,505
[1] At September 30, 2020, cash and cash equivalents, investments, other assets and other liabilities include $186 million, $3,882 million, $84 million, and $798 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2019, cash and cash equivalents, investments, other assets and other liabilities include $131 million, $3,301 million, $68 million, and $820 million, respectively, related to consolidated VIEs.
v3.20.2
Investments - Summary of Carrying Value of Total Investments (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Schedule of Investments [Line Items]    
Held-to-maturity investments $ 284 $ 249
Trading securities 1,821 1,249
Total debt securities 2,105 1,498
Equity securities at FVTNI 2,090 1,926
Total investments [1] 6,307 5,489
Bank loans 226 204
Other Investments [Member]    
Schedule of Investments [Line Items]    
Total investments 273 297
Equity Method Investments [Member]    
Schedule of Investments [Line Items]    
Total investments 1,036 943
Federal Reserve Bank Stock [Member]    
Schedule of Investments [Line Items]    
Total investments 94 93
Consolidated Entities [Member] | Carried Interest [Member]    
Schedule of Investments [Line Items]    
Total investments $ 483 $ 528
[1] At September 30, 2020, cash and cash equivalents, investments, other assets and other liabilities include $186 million, $3,882 million, $84 million, and $798 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2019, cash and cash equivalents, investments, other assets and other liabilities include $131 million, $3,301 million, $68 million, and $820 million, respectively, related to consolidated VIEs.
v3.20.2
Investments - Additional Information (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]    
Held-to-maturity investments $ 284 $ 249
Held-to-maturity investments, after one year through five years 10  
Foreign government debt, after five years through ten years 149  
Held-to-maturity investments, after ten years $ 125  
v3.20.2
Investments - Summary of Cost and Carrying Value of Trading Debt Securities and Equity Securities at FVTNI (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Schedule of Investments [Line Items]    
Total trading debt securities, Cost $ 1,842 $ 1,231
Equity securities at FVTNI, Cost 1,989 1,769
Total trading debt, Carrying Value 1,821 1,249
Equity securities at FVTNI, Carrying Value 2,090 1,926
Corporate Debt [Member]    
Schedule of Investments [Line Items]    
Total trading debt securities, Cost 1,447 822
Total trading debt, Carrying Value 1,441 844
Government Debt [Member]    
Schedule of Investments [Line Items]    
Total trading debt securities, Cost 269 268
Total trading debt, Carrying Value 270 269
Asset/Mortgage-Backed Debt [Member]    
Schedule of Investments [Line Items]    
Total trading debt securities, Cost 126 141
Total trading debt, Carrying Value 110 136
Equity Securities/Mutual Funds [Member]    
Schedule of Investments [Line Items]    
Equity securities at FVTNI, Cost 1,989 1,769
Equity securities at FVTNI, Carrying Value $ 2,090 $ 1,926
v3.20.2
Consolidated Sponsored Investment Products - Consolidated VIEs And VREs Recorded in Consolidated Statements of Financial Condition (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Consolidated Sponsored Investment Funds [Line Items]    
Cash and cash equivalents [1] $ 6,507 $ 4,829
Investments:    
Trading securities 1,821 1,249
Equity securities 2,090 1,926
Bank loans 226 204
Total investments [1] 6,307 5,489
Other assets [1] 3,930 3,169
Other liabilities [1] (4,167) (3,470)
Noncontrolling interests (59) (66)
Consolidated Variable Interest Entities [Member]    
Consolidated Sponsored Investment Funds [Line Items]    
Cash and cash equivalents 186 131
Investments:    
Trading securities 1,551 1,059
Bank loans 226 204
Other investments 185 194
Carried interest 462 514
Total investments 3,882 3,301
Other assets 84 68
Other liabilities (798) (820)
Noncontrolling interests (2,026) (1,348)
BlackRock's net interests in consolidated investment products 1,328 1,332
Consolidated Voting Rights Entities [Member]    
Consolidated Sponsored Investment Funds [Line Items]    
Cash and cash equivalents 22 10
Investments:    
Trading securities 238 151
Total investments 635 483
Other assets 25 5
Other liabilities (71) (20)
Noncontrolling interests (117) (34)
BlackRock's net interests in consolidated investment products 494 444
Consolidated Sponsored Investment Products [Member]    
Consolidated Sponsored Investment Funds [Line Items]    
Cash and cash equivalents 208 141
Investments:    
Trading securities 1,789 1,210
Bank loans 226 204
Other investments 185 194
Carried interest 462 514
Total investments 4,517 3,784
Other assets 109 73
Other liabilities (869) (840)
Noncontrolling interests (2,143) (1,382)
BlackRock's net interests in consolidated investment products 1,822 1,776
Equity securities [Member]    
Investments:    
Equity securities 2,090 1,926
Equity securities [Member] | Consolidated Variable Interest Entities [Member]    
Investments:    
Equity securities 1,458 1,330
Equity securities [Member] | Consolidated Voting Rights Entities [Member]    
Investments:    
Equity securities 397 332
Equity securities [Member] | Consolidated Sponsored Investment Products [Member]    
Investments:    
Equity securities $ 1,855 $ 1,662
[1] At September 30, 2020, cash and cash equivalents, investments, other assets and other liabilities include $186 million, $3,882 million, $84 million, and $798 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2019, cash and cash equivalents, investments, other assets and other liabilities include $131 million, $3,301 million, $68 million, and $820 million, respectively, related to consolidated VIEs.
v3.20.2
Consolidated Sponsored Investment Products - Consolidated VIEs And VREs Recorded in Consolidated Statements of Financial Condition (Detail) (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Consolidated Sponsored Investment Funds [Line Items]    
Other liabilities [1] $ 4,167 $ 3,470
Consolidated Variable Interest Entities [Member]    
Consolidated Sponsored Investment Funds [Line Items]    
Other liabilities 798 820
Consolidated Variable Interest Entities [Member] | Borrowings of Consolidated CLO [Member]    
Consolidated Sponsored Investment Funds [Line Items]    
Other liabilities $ 233 $ 195
[1] At September 30, 2020, cash and cash equivalents, investments, other assets and other liabilities include $186 million, $3,882 million, $84 million, and $798 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2019, cash and cash equivalents, investments, other assets and other liabilities include $131 million, $3,301 million, $68 million, and $820 million, respectively, related to consolidated VIEs.
v3.20.2
Consolidated Sponsored Investment Products - Schedule of Net Gain (Loss) Related to Consolidated VIEs (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Variable Interest Entity [Line Items]        
Nonoperating net gain (loss) on consolidated VIEs $ 269 $ (7) $ 627 $ 224
Net income (loss) attributable to noncontrolling interests 153   162 17
Consolidated Variable Interest Entities [Member]        
Variable Interest Entity [Line Items]        
Nonoperating net gain (loss) on consolidated VIEs 213 $ (5) 186 128
Net income (loss) attributable to noncontrolling interests $ 149   $ 169 $ 17
v3.20.2
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, 2020
Dec. 31, 2019
Investments [Member]    
Variable Interest Entity [Line Items]    
Sponsored investment products $ 626,000,000 $ 539,000,000
Advisory Fee Receivables [Member]    
Variable Interest Entity [Line Items]    
Sponsored investment products 80,000,000 71,000,000
Other Net Assets (Liabilities) [Member]    
Variable Interest Entity [Line Items]    
Sponsored investment products (13,000,000) (10,000,000)
Maximum Risk of Loss [Member]    
Variable Interest Entity [Line Items]    
Sponsored investment products $ 723,000,000 $ 627,000,000
v3.20.2
Variable Interest Entities Reflects adoption of ASU 2015-12 - Additional Information (Detail) - USD ($)
$ in Billions
Sep. 30, 2020
Dec. 31, 2019
Variable Interest Entity, Not Primary Beneficiary [Member] | Sponsored Investment Products [Member]    
Variable Interest Entity [Line Items]    
Net assets of investments funds $ 15 $ 12
v3.20.2
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Trading securities $ 1,821 $ 1,249
Equity securities/mutual funds 2,090 1,926
Separate account assets 95,994 102,844
Total separate account collateral held under securities lending agreements 15,100 15,500
Separate account collateral liabilities under securities lending agreements 15,137 15,466
Equity securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Equity securities/mutual funds 2,090 1,926
Investments Measured at NAV [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]    
Other assets 41 68
Fair Value, Measurements, Recurring [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Held-to-maturity investments 284 249
Total debt securities 2,105 1,498
Total equity method 1,036 943
Bank loans 226 204
Federal Reserve Bank Stock 94 93
Carried interest 483 528
Other investments 273 297
Total investments 6,307 5,489
Other assets 210 173
Separate account assets 95,994 102,844
Total separate account collateral held under securities lending agreements 15,137 15,466
Total 117,648 123,972
Separate account collateral liabilities under securities lending agreements 15,137 15,466
Other liabilities 297 398
Total liabilities measured at fair value 15,434 15,864
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 equity method 242 169
Total investments 2,332 2,095
Other assets 192 173
Separate account assets 65,032 72,515
Total separate account collateral held under securities lending agreements 10,250 10,209
Total 77,806 84,992
Separate account collateral liabilities under securities lending agreements 10,250 10,209
Total liabilities measured at fair value 10,250 10,209
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 debt securities 1,810 1,241
Bank loans 9 27
Total investments 1,819 1,268
Other assets 18  
Separate account assets 29,766 29,582
Total separate account collateral held under securities lending agreements 4,887 5,257
Total 36,490 36,107
Separate account collateral liabilities under securities lending agreements 4,887 5,257
Other liabilities 36 10
Total liabilities measured at fair value 4,923 5,267
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 debt securities 11 8
Bank loans 217 177
Other investments 10 9
Total investments 238 194
Total 238 194
Other liabilities 261 388
Total liabilities measured at fair value 261 388
Fair Value, Measurements, Recurring [Member] | Equity Securities/Mutual Funds [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Equity securities/mutual funds 2,090 1,926
Fair Value, Measurements, Recurring [Member] | Equity Securities/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]    
Equity securities/mutual funds 2,090 1,926
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]    
Trading securities 1,821 1,249
Fair Value, Measurements, Recurring [Member] | Debt Securities/ Fixed Income Mutual Funds [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Trading securities 1,810 1,241
Fair Value, Measurements, Recurring [Member] | Debt Securities/ Fixed Income Mutual Funds [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Trading securities 11 8
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 242 157
Fair Value, Measurements, Recurring [Member] | Equity And Fixed Income 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]    
Total equity method 242 157
Fair Value, Measurements, Recurring [Member] | Hedge Funds/Funds of Hedge Funds [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total equity method 266 220
Fair Value, Measurements, Recurring [Member] | Private/ Public Equity [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total equity method 285 248
Fair Value, Measurements, Recurring [Member] | Real Assets Funds [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total equity method 234 296
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 9 22
Fair Value, Measurements, Recurring [Member] | Other Types Of Investments [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 equity method   12
Fair Value, Measurements, Recurring [Member] | Equity securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total separate account collateral held under securities lending agreements 10,250 10,209
Fair Value, Measurements, Recurring [Member] | Equity securities [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 separate account collateral held under securities lending agreements 10,250 10,209
Fair Value, Measurements, Recurring [Member] | Debt securities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total separate account collateral held under securities lending agreements 4,887 5,257
Fair Value, Measurements, Recurring [Member] | Debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total separate account collateral held under securities lending agreements 4,887 5,257
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 794 774
Other investments 93 98
Total investments 887 872
Total 887 872
Fair Value, Measurements, Recurring [Member] | Investments Measured at NAV [Member] | Hedge Funds/Funds of Hedge Funds [Member] | Investment in NAV [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total equity method 266 220
Fair Value, Measurements, Recurring [Member] | Investments Measured at NAV [Member] | Private/ Public Equity [Member] | Investment in NAV [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total equity method 285 248
Fair Value, Measurements, Recurring [Member] | Investments Measured at NAV [Member] | Real Assets Funds [Member] | Investment in NAV [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total equity method 234 296
Fair Value, Measurements, Recurring [Member] | Investments Measured at NAV [Member] | Other Types Of Investments [Member] | Investment in NAV [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total equity method 9 10
Fair Value, Measurements, Recurring [Member] | Other [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Held-to-maturity investments 284 249
Total debt securities 284 249
Federal Reserve Bank Stock 94 93
Carried interest 483 528
Other investments 170 190
Total investments 1,031 1,060
Separate account assets 1,196 747
Total $ 2,227 $ 1,807
v3.20.2
Fair Value Disclosures - Additional Information (Detail) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Collateralized loan obligations outstanding borrowings maturity year 2030  
Fair Value Option [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total investments $ 32 $ 37
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 $ 238 $ 194
v3.20.2
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, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Assets measured at fair value, beginning balance   $ 136   $ 156
Realized and Unrealized Gains (Losses),Assets   1    
Purchases, Assets   35   92
Transfers out of Level 3, Assets   (1)   (77)
Assets measured at fair value, ending balance   171   171
Total Net Unrealized Gains (Losses) Included in Earnings   1    
Liabilities measured at fair value, beginning balance $ 262 310 $ 388 371
Realized and Unrealized Gains (Losses), Liabilities   1 (23) (18)
Issuances and other Settlements, Liabilities (1) 44 (150) (36)
Liabilities measured at fair value, ending balance 261 353 261 353
Total Net Unrealized Gains (Losses) Included in Earnings   1 (5) (18)
Other Liabilities [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Liabilities measured at fair value, beginning balance 262 310 388 371
Realized and Unrealized Gains (Losses), Liabilities   1 (23) (18)
Issuances and other Settlements, Liabilities (1) 44 (150) (36)
Liabilities measured at fair value, ending balance 261 353 261 353
Total Net Unrealized Gains (Losses) Included in Earnings   1 (5) (18)
Investments [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Assets measured at fair value, beginning balance 255 136 194 156
Realized and Unrealized Gains (Losses),Assets   1    
Purchases, Assets 1 35 47 92
Sales and Maturities, Assets (15)   (16)  
Transfers into Level 3, Assets     16  
Transfers out of Level 3, Assets (3) (1) (3) (77)
Assets measured at fair value, ending balance 238 171 238 171
Total Net Unrealized Gains (Losses) Included in Earnings   1    
Debt securities [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Assets measured at fair value, beginning balance 10 2 8 4
Purchases, Assets 1 3 3 5
Transfers out of Level 3, Assets       (4)
Assets measured at fair value, ending balance 11 5 11 5
Debt securities [Member] | Trading [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Assets measured at fair value, beginning balance 10 2 8 4
Purchases, Assets 1 3 3 5
Transfers out of Level 3, Assets       (4)
Assets measured at fair value, ending balance 11 5 11 5
Consolidated Variable Interest Entities [Member] | Bank Loans [Member]        
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]        
Assets measured at fair value, beginning balance 229 125 177 70
Purchases, Assets   32 36 87
Sales and Maturities, Assets (9)   (9)  
Transfers into Level 3, Assets     16  
Transfers out of Level 3, Assets (3)   (3)  
Assets measured at fair value, ending balance 217 157 217 157
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 16 9 9 82
Realized and Unrealized Gains (Losses),Assets   1    
Purchases, Assets     8  
Sales and Maturities, Assets (6)   (7)  
Transfers out of Level 3, Assets   (1)   (73)
Assets measured at fair value, ending balance $ 10 9 $ 10 $ 9
Total Net Unrealized Gains (Losses) Included in Earnings   $ 1    
v3.20.2
Fair Value Disclosures - Fair Value of Financial Assets and Financial Liabilities (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Cash and cash equivalents [1] $ 6,507 $ 4,829
Long-term borrowings 7,227 4,955
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 6,507 4,829
Other assets 41 68
Carrying Amount [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term borrowings 7,227 4,955
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 6,507 4,829
Other assets 41 68
Estimated Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Long-term borrowings $ 7,857 $ 5,254
[1] At September 30, 2020, cash and cash equivalents, investments, other assets and other liabilities include $186 million, $3,882 million, $84 million, and $798 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2019, cash and cash equivalents, investments, other assets and other liabilities include $131 million, $3,301 million, $68 million, and $820 million, respectively, related to consolidated VIEs.
v3.20.2
Fair Value Disclosures - Fair Value of Financial Assets and Financial Liabilities (Parenthetical) (Detail) - USD ($)
$ / shares in Units, $ in Millions
Sep. 30, 2020
Dec. 31, 2019
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Cash and cash equivalents [1] $ 6,507 $ 4,829
Money market valuation per share floor $ 1.00  
Money Market Funds [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Cash and cash equivalents $ 667 $ 674
[1] At September 30, 2020, cash and cash equivalents, investments, other assets and other liabilities include $186 million, $3,882 million, $84 million, and $798 million, respectively, related to consolidated variable interest entities (“VIEs”). At December 31, 2019, cash and cash equivalents, investments, other assets and other liabilities include $131 million, $3,301 million, $68 million, and $820 million, respectively, related to consolidated VIEs.
v3.20.2
Fair Value Disclosures - Investments in Certain Entities Calculate Net Asset Value per Share (Detail) - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments $ 690 $ 553
Fair Value Measured at NAV per share [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Fair Value $ 887 $ 872
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]    
Redemption Notice Period, days 90 days 90 days
Hedge Funds/Funds of Hedge Funds [Member] | Consolidated Variable Interest Entities [Member] | Fair Value Measured at NAV per share [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Fair Value $ 3 $ 3
Real Assets Funds [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments 317 203
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 101 83
Real Assets Funds [Member] | Consolidated Variable Interest Entities [Member] | Fair Value Measured at NAV per share [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Fair Value 75 72
Private Equity Funds Of Funds [Member] | Consolidated Variable Interest Entities [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments 7 9
Private Equity Funds Of Funds [Member] | Consolidated Variable Interest Entities [Member] | Fair Value Measured at NAV per share [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Fair Value 15 23
Equity Method Investments [Member] | Hedge Funds/Funds of Hedge Funds [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments $ 107 $ 120
Redemption Frequency (Daily) 23.00% 27.00%
Redemption Frequency (Monthly) 23.00% 27.00%
Redemption Frequency (Quarterly) 20.00% 15.00%
Redemption Frequency (Not Redeemable) 57.00% 58.00%
Equity Method Investments [Member] | Hedge Funds/Funds of Hedge Funds [Member] | Fair Value Measured at NAV per share [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Fair Value $ 266 $ 220
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]    
Total Unfunded Commitments $ 253 $ 212
Equity Method Investments [Member] | Private Equity Funds [Member] | Fair Value Measured at NAV per share [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Fair Value 285 248
Equity Method Investments [Member] | Real Assets Funds [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments $ 216 $ 120
Redemption Frequency (Quarterly) 41.00% 57.00%
Redemption Frequency (Not Redeemable) 59.00% 43.00%
Redemption Notice Period, Not Redeemable 60 days 60 days
Equity Method Investments [Member] | Real Assets Funds [Member] | Fair Value Measured at NAV per share [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Fair Value $ 234 $ 296
Equity Method Investments [Member] | Other Types Of Investments [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments 6 9
Equity Method Investments [Member] | Other Types Of Investments [Member] | Fair Value Measured at NAV per share [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Fair Value $ 9 $ 10
v3.20.2
Fair Value Disclosures - Investments in Certain Entities Calculate Net Asset Value per Share (Parenthetical) (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments $ 690 $ 553
Real Assets Funds [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments 317 203
Total remaining Unfunded Commitments 284 172
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 101 83
Private Equity Funds Of Funds [Member] | Consolidated Variable Interest Entities [Member]    
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]    
Total Unfunded Commitments 7 9
Amount of unfunded commitments contractually obligated to fund $ 17 $ 22
v3.20.2
Fair Value Disclosures - Summary of Information Related to Bank Loans and Borrowings of Consolidated CLO Recorded within Investments and Borrowings of Consolidated VIEs Respectively for which Fair Value Option was Elected (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Fair Value Option Quantitative Disclosures [Line Items]    
Aggregate principal amounts outstanding $ 7,271  
CLO Bank Loans [Member]    
Fair Value Option Quantitative Disclosures [Line Items]    
Aggregate principal amounts outstanding 231 $ 204
Fair value 226 204
Aggregate unpaid principal balance in excess of (less than) fair value 5  
CLO Borrowings [Member]    
Fair Value Option Quantitative Disclosures [Line Items]    
Aggregate principal amounts outstanding 249 195
Fair value $ 233 $ 195
v3.20.2
Derivatives and Hedging - Additional Information (Detail) - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Derivative [Line Items]    
Derivative maximum risk of loss $ 17 $ 17
Forward Foreign Currency Exchange Contracts [Member]    
Derivative [Line Items]    
Notional value $ 4,100 $ 3,400
Derivative Expiration Dates 2020-10 2020-01
Total Return Swaps [Member]    
Derivative [Line Items]    
Notional value $ 735 $ 644
v3.20.2
Derivatives and Hedging - Summary of Fair Values of Derivatives Instruments Recognized in Condensed Consolidated Statements of Financial Condition (Detail)
$ in Millions
Sep. 30, 2020
USD ($)
Other Assets [Member]  
Derivatives Fair Value [Line Items]  
Other assets, fair value $ 18
Other Liabilities [Member]  
Derivatives Fair Value [Line Items]  
Other liabilities, fair value 23
Forward Foreign Currency Exchange Contracts [Member] | Other Assets [Member]  
Derivatives Fair Value [Line Items]  
Other assets, fair value 12
Forward Foreign Currency Exchange Contracts [Member] | Other Liabilities [Member]  
Derivatives Fair Value [Line Items]  
Other liabilities, fair value 13
Total Return Swaps [Member] | Other Assets [Member]  
Derivatives Fair Value [Line Items]  
Other assets, fair value 6
Total Return Swaps [Member] | Other Liabilities [Member]  
Derivatives Fair Value [Line Items]  
Other liabilities, fair value $ 10
v3.20.2
Derivatives and Hedging - Summary of Realized and Unrealized Gains (Losses) Recognized in Condensed Consolidated Statements of Income on Derivative Instruments (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Derivative Instruments Gain Loss [Line Items]        
Total gain (loss) from derivative instruments $ 22 $ (41) $ (25) $ (118)
Forward Foreign Currency Exchange Contracts [Member] | General and Administration Expense [Member]        
Derivative Instruments Gain Loss [Line Items]        
Total gain (loss) from derivative instruments 64 (43) (34) (56)
Total Return Swaps [Member] | Nonoperating Income (Expense) [Member]        
Derivative Instruments Gain Loss [Line Items]        
Total gain (loss) from derivative instruments $ (42) $ 2 $ 9 $ (62)
v3.20.2
Goodwill - Goodwill Activity (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2020
USD ($)
Goodwill Roll Forward  
Beginning balance $ 14,562
Goodwill adjustments related to Quellos (8)
Ending balance $ 14,554
v3.20.2
Goodwill - Goodwill Activity (Parenthetical) (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Goodwill Roll Forward    
Excess of tax goodwill over book goodwill $ 82 $ 106
v3.20.2
Intangible Assets - Carrying Amounts of Identifiable Intangible Assets (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]          
Indefinite-lived intangible assets $ 17,578   $ 17,578   $ 17,578
Finite-lived intangible assets, Beginning balance     791    
Finite-lived intangible assets, amortization expense (27) $ (28) (79) $ (68)  
Finite-lived intangible assets, Ending balance 712   712    
Intangible assets, Beginning balance     18,369    
Intangible assets, Ending balance $ 18,290   $ 18,290    
v3.20.2
Leases - Components of Lease Cost (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Lease cost:        
Operating lease cost [1] $ 37 $ 36 $ 110 $ 104
Variable lease cost [2] 10 10 29 28
Total lease cost $ 47 $ 46 $ 139 $ 132
[1]

Amounts include short-term leases, which are immaterial for the three and nine months ended September 30, 2020 and 2019.
[2]

Amounts include operating lease payments, which may be adjusted based on usage, changes in an index or market rate.
v3.20.2
Leases - Schedule of Operating Leases Included on Condensed Consolidated Statement of Financial Condition (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Leases [Abstract]    
Operating lease right-of-use ("ROU") assets $ 646 $ 669
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] us-gaap:OtherAssets us-gaap:OtherAssets
Operating lease liabilities $ 756 $ 776
Operating Lease, Liability, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilities us-gaap:OtherLiabilities
v3.20.2
Leases - Schedule of Supplemental Information Related to Operating Leases (Detail) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Supplemental cash flow information:      
Cash paid for amounts included in the measurement of operating lease liabilities $ 114 $ 105  
Supplemental noncash information:      
ROU assets in exchange for operating lease liabilities in connection with the adoption of ASU 2016-02, "Leases" $ 77 54  
Weighted-average remaining lease term 8 years   9 years
Weighted-average discount rate 3.00%   3.00%
Accounting Standards Update 2016-02 [Member]      
Supplemental noncash information:      
ROU assets in exchange for operating lease liabilities in connection with the adoption of ASU 2016-02, "Leases"   $ 661  
v3.20.2
Other Assets - Additional Information (Detail) - USD ($)
shares in Millions, $ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Feb. 13, 2020
Other Assets [Line Items]      
Tax benefit $ (241)    
PennyMac [Member]      
Other Assets [Line Items]      
Ownership percentage   20.00% 20.00%
Shares   16  
Carrying value - equity method investment   $ 451  
Market value of equity method investments   $ 530  
PennyMac [Member] | BlackRock Foundation [Member]      
Other Assets [Line Items]      
Operating expenses related to charitable contribution 589    
Operating expenses, offset amount by noncash non operating pre-tax gain on sale of equity method investments. 122    
Tax benefit 241    
iCapital [Member]      
Other Assets [Line Items]      
Carrying value - equity method investment 297    
Nonoperating pre-tax gain $ 240    
v3.20.2
Borrowings - Additional Information (Detail) - USD ($)
 1 Months Ended 9 Months Ended
Apr. 30, 2020
Jan. 31, 2020
Sep. 30, 2020
Debt Instrument [Line Items]      
Debt instrument, aggregate principal amount     $ 7,271,000,000
Commercial Paper [Member]      
Debt Instrument [Line Items]      
Maximum amount available under facility     4,000,000,000.0
Amount outstanding under credit facility     0
2020 Revolving Credit Facility [Member]      
Debt Instrument [Line Items]      
Unsecured revolving credit facility     4,000,000,000.0
Additional amount available, subject to lender credit approval     1,000,000,000.0
Maximum amount available under facility     5,000,000,000.0
Amount outstanding under credit facility     $ 0
Extended debt instrument maturity date     2025-03
Line of credit facility, covenant terms     The 2020 credit facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1
Line of credit facility, covenant compliance     satisfied with a ratio of less than 1 to 1
2.40% Notes due 2030 [Member]      
Debt Instrument [Line Items]      
Debt instrument, aggregate principal amount   $ 1,000,000,000 $ 1,000,000,000
Debt instrument, interest rate   2.40%  
Debt instrument, maturity date     Apr. 30, 2030
Debt instrument, Approximate annual interest expense   $ 24,000,000  
Debt instrument, payment terms     Interest of approximately $24 million per year is payable semi-annually on April 30 and October 30 of each year, which commenced on April 30, 2020.
Debt instrument, redemption period, end date     Jan. 30, 2030
Debt Instrument, redemption price, percentage of principal amount redeemed     100.00%
1.90% Notes due 2031 [Member]      
Debt Instrument [Line Items]      
Debt instrument, aggregate principal amount $ 1,250,000,000   $ 1,250,000,000
Debt instrument, interest rate 1.90%    
Debt instrument, maturity date     Jan. 28, 2031
Debt instrument, Approximate annual interest expense $ 24,000,000    
Debt instrument, payment terms     Interest of approximately $24 million per year is payable semi-annually on January 28 and July 28 of each year, which commenced on July 28, 2020.
Debt instrument, redemption period, end date     Oct. 28, 2030
Debt Instrument, redemption price, percentage of principal amount redeemed     100.00%
4.25% Notes due May 2021 [Member]      
Debt Instrument [Line Items]      
Debt instrument, aggregate principal amount $ 750,000,000    
Debt instrument, interest rate 4.25%    
v3.20.2
Borrowings - Carrying Value and Fair Value of Long-Term Borrowings Determined Market Prices EUR/USD Foreign Exchange Rate (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Apr. 30, 2020
Jan. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]        
Maturity Amount $ 7,271      
Unamortized Discount and Debt Issuance Costs (44)      
Carrying Value 7,227     $ 4,955
Fair Value 7,857      
4.25% Notes due 2021 [Member]        
Debt Instrument [Line Items]        
Maturity Amount 750      
Carrying Value 750      
Fair Value 769      
3.375% Notes due 2022 [Member]        
Debt Instrument [Line Items]        
Maturity Amount 750      
Unamortized Discount and Debt Issuance Costs (2)      
Carrying Value 748      
Fair Value 787      
3.50% Notes due 2024 [Member]        
Debt Instrument [Line Items]        
Maturity Amount 1,000      
Unamortized Discount and Debt Issuance Costs (3)      
Carrying Value 997      
Fair Value 1,102      
1.25% Notes due 2025 [Member]        
Debt Instrument [Line Items]        
Maturity Amount 821      
Unamortized Discount and Debt Issuance Costs (3)      
Carrying Value 818      
Fair Value 868      
3.20% Notes due 2027 [Member]        
Debt Instrument [Line Items]        
Maturity Amount 700      
Unamortized Discount and Debt Issuance Costs (5)      
Carrying Value 695      
Fair Value 794      
3.25% Notes due 2029 [Member]        
Debt Instrument [Line Items]        
Maturity Amount 1,000      
Unamortized Discount and Debt Issuance Costs (12)      
Carrying Value 988      
Fair Value 1,155      
2.40% Notes due 2030 [Member]        
Debt Instrument [Line Items]        
Maturity Amount 1,000   $ 1,000  
Unamortized Discount and Debt Issuance Costs (7)      
Carrying Value 993      
Fair Value 1,086      
1.90% Notes due 2031 [Member]        
Debt Instrument [Line Items]        
Maturity Amount 1,250 $ 1,250    
Unamortized Discount and Debt Issuance Costs (12)      
Carrying Value 1,238      
Fair Value $ 1,296      
v3.20.2
Commitments and Contingencies - Additional Information (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Commitment And Contingencies [Line Items]    
Investment commitments $ 703  
Derivative maximum risk of loss for credit protection 17 $ 17
Amount of securities on loan subject to indemnification 249,000  
Collateral for indemnified securities 265,000  
Other Liabilities [Member]    
Commitment And Contingencies [Line Items]    
Contingent consideration at fair value $ 28  
v3.20.2
Revenue - Summary of Investment Advisory, Administration Fees and Securities Lending Revenue (Collectively "Base Fees") by Type (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Disaggregation Of Revenue [Line Items]        
Total revenue $ 4,369 $ 3,692 $ 11,727 $ 10,562
Investment Advisory, Administration Fees and Securities Lending Revenue [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 3,225 2,980 9,246 8,688
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Equity Active Product [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 457 391 1,236 1,151
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Equity iShares ETFs [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 880 872 2,551 2,589
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Equity Non-ETF Index [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 164 168 505 495
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Equity [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 1,501 1,431 4,292 4,235
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Fixed Income Active [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 498 496 1,443 1,427
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Fixed Income iShares ETFs [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 297 251 817 705
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Fixed Income Non-ETF Index [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 113 98 354 293
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Fixed Income [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 908 845 2,614 2,425
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Multi-asset [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 289 288 852 852
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Alternatives [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 323 257 895 729
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Alternatives [Member] | Illiquid Alternatives [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 140 122 416 350
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Alternatives [Member] | Liquid Alternatives [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 132 105 361 301
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Alternatives [Member] | Currency and Commodities [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 51 30 118 78
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Cash Management [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 204 159 593 447
Investment Advisory, Administration Fees and Securities Lending Revenue [Member] | Long-term [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 3,021 2,821 8,653 8,241
Investment Advisory Performance Fees [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 532 121 685 211
Investment Advisory Performance Fees [Member] | Equity [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 4 1 29 5
Investment Advisory Performance Fees [Member] | Fixed Income [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 9   13 2
Investment Advisory Performance Fees [Member] | Multi-asset [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 10 1 13 7
Investment Advisory Performance Fees [Member] | Alternatives [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 509 119 630 197
Investment Advisory Performance Fees [Member] | Alternatives [Member] | Illiquid Alternatives [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 6 5 55 40
Investment Advisory Performance Fees [Member] | Alternatives [Member] | Liquid Alternatives [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 503 114 575 157
Technology Services Revenue [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 282 259 834 700
Distribution Fees [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 288 270 817 799
Distribution Fees [Member] | Retrocessions [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 188 166 519 491
Distribution Fees [Member] | 12b-1 Fees (US Mutual Fund Distribution Fees) [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 85 90 254 267
Distribution Fees [Member] | Other Distribution Fees [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 15 14 44 41
Advisory and Other Revenue [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 42 62 145 164
Advisory and Other Revenue [Member] | Advisory [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 14 21 48 62
Advisory and Other Revenue [Member] | Other [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue $ 28 $ 41 $ 97 $ 102
v3.20.2
Revenue - Summary of Investment Advisory, Administration Fees and Securities Lending Revenue by Client Type and Investment Style (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Disaggregation Of Revenue [Line Items]        
Total revenue $ 4,369 $ 3,692 $ 11,727 $ 10,562
Revenue by Client Type [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 3,225 2,980 9,246 8,688
Revenue by Client Type [Member] | Retail [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 938 862 2,635 2,534
Revenue by Client Type [Member] | iShares ETFs [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 1,228 1,151 3,487 3,370
Revenue by Client Type [Member] | Institutional Active [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 594 558 1,714 1,595
Revenue by Client Type [Member] | Institutional Index [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 261 250 817 742
Revenue by Client Type [Member] | Institutional [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 855 808 2,531 2,337
Revenue by Client Type [Member] | Cash Management [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 204 159 593 447
Revenue by Client Type [Member] | Long-term [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 3,021 2,821 8,653 8,241
Revenue by Investment Style [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 3,225 2,980 9,246 8,688
Revenue by Investment Style [Member] | Active [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 1,511 1,401 4,292 4,073
Revenue by Investment Style [Member] | Index and iShares ETFs [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 1,510 1,420 4,361 4,168
Revenue by Investment Style [Member] | Cash Management [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue 204 159 593 447
Revenue by Investment Style [Member] | Long-term [Member]        
Disaggregation Of Revenue [Line Items]        
Total revenue $ 3,021 $ 2,821 $ 8,653 $ 8,241
v3.20.2
Revenue - Schedule of Estimated Investment Advisory, Administration Fees Expected to be Recognized in Future, Related to Unsatisfied Portion of Performance Obligations (Detail) - Investment Advisory, Administration Fees and Securities Lending Revenue [Member] - USD ($)
$ in Millions
Sep. 30, 2020
Sep. 30, 2019
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation $ 419 $ 299
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01    
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period   3 months
Revenue, Remaining Performance Obligation   $ 22
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01    
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period   1 year
Revenue, Remaining Performance Obligation   $ 85
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01    
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 3 months  
Revenue, Remaining Performance Obligation $ 33  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01    
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year 1 year
Revenue, Remaining Performance Obligation $ 125 $ 71
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01    
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year 1 year
Revenue, Remaining Performance Obligation $ 108 $ 62
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01    
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation $ 92 $ 59
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01    
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period  
Revenue, Remaining Performance Obligation $ 61  
v3.20.2
Revenue - Schedule of Estimated Investment Advisory, Administration Fees Expected to be Recognized in Future, Related to Unsatisfied Portion of Performance Obligations (Detail 1) - USD ($)
$ in Millions
Sep. 30, 2020
Sep. 30, 2019
Investment Advisory, Administration Fees and Securities Lending Revenue [Member]    
Schedule of Investment Advisory Administration Fees and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation $ 419 $ 299
v3.20.2
Revenue - Schedule of Changes in Deferred Carried Interest Liability (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]        
Beginning balance $ 418 $ 365 $ 483 $ 293
Net increase (decrease) in unrealized allocations 29 17 4 116
Performance fee revenue recognized     (40) (27)
Other   6   6
Ending balance $ 447 $ 388 $ 447 $ 388
v3.20.2
Revenue - Schedule of Estimated Technology Services Revenue Expected to Be Recognized in Future, Related to Unsatisfied Portion of Performance Obligations (Detail) - Technology Services Revenue [Member] - USD ($)
$ in Millions
Sep. 30, 2020
Sep. 30, 2019
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation $ 219 $ 160
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01    
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period   3 months
Revenue, Remaining Performance Obligation   $ 36
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01    
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period   1 year
Revenue, Remaining Performance Obligation   $ 54
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01    
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 3 months  
Revenue, Remaining Performance Obligation $ 37  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01    
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year 1 year
Revenue, Remaining Performance Obligation $ 95 $ 37
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01    
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year 1 year
Revenue, Remaining Performance Obligation $ 47 $ 21
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01    
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation $ 22 $ 12
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01    
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period  
Revenue, Remaining Performance Obligation $ 18  
v3.20.2
Revenue - Schedule of Estimated Technology Services Revenue Expected to Be Recognized in Future, Related to Unsatisfied Portion of Performance Obligations (Detail 1) - USD ($)
$ in Millions
Sep. 30, 2020
Sep. 30, 2019
Technology Services Revenue [Member]    
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]    
Revenue, Remaining Performance Obligation $ 219 $ 160
v3.20.2
Revenue - Additional Information (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2020
USD ($)
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]  
Estimated annual fixed minimum fees for currently outstanding contracts $ 170
Minimum [Member]  
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]  
Term of currently outstanding contracts 1 year
Maximum [Member]  
Schedule of Investment Advisory Administration Fees and Securities Lending Revenue and Performance Fees by Type [line Items]  
Term of currently outstanding contracts 5 years
v3.20.2
Revenue - Schedule of Changes in Technology Services Deferred Revenue Liability (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]        
Beginning balance $ 108 $ 100 $ 116 $ 70
Acquisition       24
Additions 30 8 88 31
Revenue recognized that was included in the beginning balance (33) (21) (99) (38)
Ending balance $ 105 $ 87 $ 105 $ 87
v3.20.2
Stock-Based Compensation - Restricted Stock and RSU Activity (Detail) - $ / shares
 1 Months Ended 9 Months Ended
Jan. 31, 2020
Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted Stock and RSUs, beginning of period 2,236,452 2,236,452
Restricted Stock and RSUs, Granted   948,904
Restricted Stock and RSUs, Converted   (923,213)
Restricted Stock and RSUs, Forfeited   (68,668)
Restricted Stock and RSUs, end of period   2,193,475
Weighted-Average Grant Date Fair Value, beginning of period $ 444.02 $ 444.02
Weighted-Average Grant Date Fair Value, Granted   532.60
Weighted-Average Grant Date Fair Value, Converted   427.06
Weighted-Average Grant Date Fair Value, Forfeited   476.96
Weighted-Average Grant Date Fair Value, end of period   $ 488.44
Performance-Based RSUs [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted Stock and RSUs, beginning of period 742,918 742,918
Restricted Stock and RSUs, Granted 238,478 238,478
Restricted Stock and RSUs, Additional shares granted due to attainment of performance measures 30,600 30,600
Restricted Stock and RSUs, Converted   (311,779)
Restricted Stock and RSUs, end of period   700,217
Weighted-Average Grant Date Fair Value, beginning of period $ 436.84 $ 436.84
Weighted-Average Grant Date Fair Value, Granted   533.58
Weighted-Average Grant Date Fair Value, Additional Grants   375.26
Weighted-Average Grant Date Fair Value, Converted   375.26
Weighted-Average Grant Date Fair Value, end of period   $ 494.51
v3.20.2
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 9 Months Ended
Jan. 31, 2020
Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted Stock and RSUs, Granted   948,904
Fair value of RSUs/restricted stock granted to employees   $ 505
RSUs/Restricted Stock [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted Stock and RSUs, Granted 504,403  
Award vesting period, years 3 years  
Awards to employees cliff vesting 393,161  
RSUs to employees that cliff vest, percentage 100.00%  
RSUs to employees that cliff vest, date Jan. 31, 2023  
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   $ 563.55
Unrecognized stock-based compensation expense   $ 482
Remaining weighted-average period   1 year 3 months 18 days
Performance-Based RSUs [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted Stock and RSUs, Granted 238,478 238,478
Award vesting period, years 3 years  
Awards to employees cliff vesting 238,478  
RSUs to employees that cliff vest, percentage 100.00%  
RSUs to employees that cliff vest, date Jan. 31, 2023  
Intrinsic value of outstanding RSUs   $ 395
Stock price   $ 563.55
Unrecognized stock-based compensation expense   $ 158
Remaining weighted-average period   1 year 4 months 24 days
Additional Restricted Stock and RSUs, Granted 30,600 30,600
Fair value of RSUs/restricted stock granted to employees   $ 139
Performance-Based Stock Options [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Remaining weighted-average period   3 years 2 months 12 days
Unrecognized stock-based compensation expense   $ 90
v3.20.2
Stock-Based Compensation - Stock Option Activity (Detail) - Performance-Based Stock Options [Member]
 9 Months Ended
Sep. 30, 2020
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Outstanding, Shares Under Option, Beginning of Period | shares 1,941,145
Outstanding, Shares Under Option, Forfeited | shares (25,353)
Outstanding, Shares Under Option, End of Period | shares 1,915,792
Weighted Average Exercise Price, Beginning of Period | $ / shares $ 513.50
Weighted Average Exercise Price, Forfeited | $ / shares 513.50
Weighted Average Exercise Price, End of Period | $ / shares $ 513.50
v3.20.2
Net Capital Requirements - Additional Information (Detail)
$ in Billions
Sep. 30, 2020
USD ($)
Regulatory Capital Requirements [Abstract]  
Net capital requirement in certain regulated subsidiaries $ 2.2
v3.20.2
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Balance $ 32,786 $ 31,950 $ 33,613 $ 32,433
Foreign currency translation adjustments [1] 180 (120) (30) (93)
Balance 33,932 32,467 33,932 32,467
Accumulated Other Comprehensive Income (Loss) [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Balance (781) (664) (571) (691)
Foreign currency translation adjustments [1] 180 (120) (30) (93)
Balance $ (601) $ (784) $ (601) $ (784)
[1] Amounts for the three months ended September 30, 2020 and 2019 include a loss from a net investment hedge of $26 million (net of tax benefit of $8 million) and a gain of $25 million (net of tax expense of $8 million), respectively. Amounts for the nine months ended September 30, 2020 and 2019 include a loss from a net investment hedge of $27 million (net of tax benefit of $8 million) and a gain of $28 million (net of tax expense of $9 million), respectively.
v3.20.2
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]        
Gain (loss) from net investment hedging, net of tax $ (26) $ 25 $ (27) $ 28
Gain (loss) from net investment hedging, tax (expense) benefit $ 8 $ (8) $ 8 $ (9)
v3.20.2
Capital Stock - Preferred Shares Authorized, Issued and Outstanding (Detail) - shares
Sep. 30, 2020
Dec. 31, 2019
Class of Stock [Line Items]    
Shares outstanding 0  
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
Shares outstanding   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
Shares outstanding   823,188
Series C Nonvoting Participating Preferred Stock [Member]    
Class of Stock [Line Items]    
Shares authorized, $0.01 par value 6,000,000 6,000,000
Shares issued   0
Shares outstanding   0
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
Shares outstanding   0
v3.20.2
Capital Stock - Preferred Shares Authorized, Issued and Outstanding (Parenthetical) (Detail) - $ / shares
Sep. 30, 2020
Dec. 31, 2019
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 Nonvoting 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
v3.20.2
Capital Stock - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
May 15, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Schedule of Capitalization, Equity [Line Items]        
Common shares repurchased     800,000  
Common shares repurchased, value   $ 100 $ 1,512 $ 1,666
Shares authorized to be repurchased     5,100,000  
Aggregate of common shares repurchased, value     $ 1,500  
Open Market Transactions [Member]        
Schedule of Capitalization, Equity [Line Items]        
Common shares repurchased, value     $ 412  
PNC [Member]        
Schedule of Capitalization, Equity [Line Items]        
Common shares repurchased 2,650,857      
Common shares repurchased price per share $ 414.96      
Shares issued for services 500,000      
PNC [Member] | Common Stock [Member]        
Schedule of Capitalization, Equity [Line Items]        
Shares issued upon conversion 823,188      
PNC [Member] | Secondary Public Offering [Member] | Common Stock [Member]        
Schedule of Capitalization, Equity [Line Items]        
Shares issued 31,628,573      
Shares issued, price per share $ 420      
PNC [Member] | Over Allotment Option [Member] | Common Stock [Member]        
Schedule of Capitalization, Equity [Line Items]        
Shares issued to purchase additional shares 2,875,325      
v3.20.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Income Tax Disclosure [Abstract]    
Income tax expense benefit net noncash related to revaluation of deferred tax assets and liabilities $ 54 $ 54
Discrete income tax benefit for vested stock awards   78
Discrete income tax benefit recognized in connection with charitable contribution   $ 241
v3.20.2
Earnings Per Share - Additional Information (Detail)
Sep. 30, 2020
shares
Earnings Per Share [Abstract]  
Preferred stock shares outstanding 0
v3.20.2
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, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Earnings Per Share [Abstract]        
Net income attributable to BlackRock $ 1,364 $ 1,119 $ 3,384 $ 3,175
Basic weighted-average shares outstanding 152,488,073 155,280,877 153,816,544 156,290,212
Dilutive effect of nonparticipating RSUs 1,254,191 1,166,510 1,143,268 1,095,744
Total diluted weighted-average shares outstanding 153,742,264 156,447,387 154,959,812 157,385,956
Basic earnings per share $ 8.94 $ 7.21 $ 22.00 $ 20.31
Diluted earnings per share $ 8.87 $ 7.15 $ 21.84 $ 20.17
v3.20.2
Segment Information - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2020
Segment
Segment Reporting [Abstract]  
Number of business segments 1
v3.20.2
Segment Information - Total Revenue by Geographic Region (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Segment Reporting Information [Line Items]        
Revenue $ 4,369 $ 3,692 $ 11,727 $ 10,562
Americas [Member]        
Segment Reporting Information [Line Items]        
Revenue 2,631 2,445 7,581 7,051
Europe [Member]        
Segment Reporting Information [Line Items]        
Revenue 1,574 1,080 3,661 3,018
Asia-Pacific [Member]        
Segment Reporting Information [Line Items]        
Revenue $ 164 $ 167 $ 485 $ 493
v3.20.2
Segment Information - Schedule of Long-Lived Assets by Geographic Region (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]    
Long-lived assets $ 15,247 $ 15,277
Americas [Member]    
Segment Reporting Information [Line Items]    
Long-lived assets 13,805 13,830
Europe [Member]    
Segment Reporting Information [Line Items]    
Long-lived assets 1,355 1,360
Asia-Pacific [Member]    
Segment Reporting Information [Line Items]    
Long-lived assets $ 87 $ 87
v3.20.2
Subsequent Events - Additional Information (Detail) - shares
Oct. 06, 2020
Sep. 30, 2020
Subsequent Event [Line Items]    
Preferred stock shares outstanding   0
Subsequent Event [Member] | Preferred Stock [Member] | Certificate of Elimination [Member]    
Subsequent Event [Line Items]    
Preferred stock shares outstanding 0