13. Revenue

The table below presents the Company’s revenue for the three months ended March 31, 2018 and 2017, respectively, and disaggregates investment advisory, administration fees and securities lending revenue and performance fees by product type and investment style. See Note 2, Significant Accounting Policies, for further information on the Company’s revenue recognition and the adoption of ASU 2014-09.

	Three Months Ended
	March 31,
(in millions)	2018		2017
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	438	$	400
iShares ETFs		926		721
Non-ETF index		176		160
Equity subtotal		1,540		1,281
Fixed income:
Active		456		407
iShares ETFs		208		185
Non-ETF index		93		85
Fixed income subtotal		757		677
Multi-asset		296		272
Alternatives:
Core		178		144
Currency and commodities		25		22
Alternatives subtotal		203		166
Long-term		2,796		2,396
Cash management		151		127
Total base fees		2,947		2,523
Investment advisory performance fees:
Equity		18		15
Fixed income		3		10
Multi-asset		5		5
Alternatives		44		40
Total performance fees		70		70
Technology and risk management revenue		184		154
Distribution fees:
Retrocessions		192		155
12b-1 fees (U.S. mutual funds distribution fees)		108		122
Other		11		10
Total distribution fees		311		287
Advisory and other revenue
Advisory		21		24
Other		50		34
Advisory and other revenue		71		58
Total revenue	$	3,583	$	3,092

The table below presents the investment advisory, administration fees and securities lending revenue by client type, investment style and product type, respectively:

	For the Three Months Ended
	March 31,
(in millions)	2018		2017

Investment advisory, administration fees and securities lending revenue by client type:
Retail	$	855	$	776
iShares ETFs		1,158		925
Institutional:
Active		527		458
Index		256		237
Total institutional		783		695
Long-term		2,796		2,396
Cash management		151		127
Total	$	2,947	$	2,523

Investment advisory, administration fees and securities lending revenue by investment style:
Active	$	1,365	$	1,220
Index and iShares ETFs		1,431		1,176
Long-term		2,796		2,396
Cash management		151		127
Total	$	2,947	$	2,523

Investment advisory, administration fees and securities lending revenue by product type:
Equity	$	1,540	$	1,281
Fixed income		757		677
Multi-asset		296		272
Alternatives		203		166
Long-term		2,796		2,396
Cash management		151		127
Total	$	2,947	$	2,523

Investment advisory and administration fees

The table below presents estimated investment advisory and administration fees expected to be recognized in the future related to the unsatisfied portion of the performance obligations at March 31, 2018:

	Remainder of
(in millions)	2018			2019		2020		2021	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	61	$	70	$	58	$	48	$	48	$	285

⁽¹⁾

Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at March 31, 2018. 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. The Company excludes fees that are probable of significant reversal in future periods.

⁽²⁾	The Company elected the following practical expedients and does not include amounts related to (1) performance obligations with an original duration of one year or less, (2) variable consideration related to future service periods, and (3) the comparative prior period as of March 31, 2017.

Investment advisory performance fees / Carried interest

The table below presents changes in the deferred carried interest liability (including the portion related to consolidated VIEs) for the three months ended March 31, 2018 and 2017:

	Three Months Ended
	March 31,
(in millions)	2018		2017
Beginning balance	$	219	$	152
Net increase (decrease) in unrealized allocations		5		9
Performance fee revenue recognized that was included in the deferred carried interest liability balance at the beginning of the period		—		(10	)
Ending balance	$	224	$	151

Technology and risk management revenue

The table below presents estimated technology and risk management revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligations at March 31, 2018:

	Remainder of
(in millions)	2018			2019		2020		2021	Thereafter		Total
Technology and risk management revenue⁽¹⁾⁽²⁾	$	25	$	24	$	20	$	15	$	10	$	94

⁽¹⁾	Technology and risk management revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed. The Company excludes fees that are probable of significant reversal in future periods.

⁽²⁾	The Company elected the following practical expedients and does not include amounts related to (1) performance obligations with an original duration of one year or less, (2) variable consideration related to future service periods, and (3) the comparative prior period as of March 31, 2017.

In addition to amounts disclosed in the table above, certain technology and risk management 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 March 31, 2018, the estimated fixed minimum fees for the remainder of 2018 for currently outstanding contracts approximated $348 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 and risk management deferred revenue liability for the three months ended March 31, 2018 and 2017, which is included in other liabilities on the condensed consolidated statements of financial condition:

	Three Months Ended
	March 31,
(in millions)	2018			2017
Beginning balance	$	62		$	42
Additions		12			8
Amount recognized included in the deferred revenue liability beginning balance		(8	)		(4	)
Ending balance	$	66		$	46