Fair Value Disclosures (Tables)

Assets and liabilities measured at fair value on a recurring basis and other assets not held at fair value

March 31, 2018⁽¹⁾ (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⁽²⁾		Other Assets Not Held at Fair Value⁽³⁾		March 31, 2018
Assets:
Investments:
Equity securities at FVTNI:
Deferred compensation plan mutual funds	$	34	$	—	$	—	$	—	$	—	$	34
Equity securities/Multi-asset mutual funds		614		—		—		—		—		614
Total equity securities		648		—		—		—		—		648
Debt securities:
Available-for-sale		—		125		26		—		—		151
Trading securities		—		288		5		—		—		293
Held-to-maturity securities		—		—		—		—		132		132
Total debt securities		—		413		31		—		132		576
Equity method:
Equity and fixed income mutual funds		116		—		—		15		—		131
Other		—		—		—		569		3		572
Total equity method		116		—		—		584		3		703
Federal Reserve Bank Stock		—		—		—		—		91		91
Carried interest		—		—		—		—		32		32
Total investments		764		413		31		584		258		2,050
Investments of consolidated VIEs:
Equity securities		295		—		—		—		—		295
Trading debt securities		—		769		—		—		—		769
Private / public equity⁽⁴⁾		3		3		116		56		72		250
Other		—		—		—		50		—		50
Carried interest		—		—		—		—		273		273
Total investments of consolidated VIEs		298		772		116		106		345		1,637
Other assets⁽⁵⁾		—		35		—		—		—		35
Separate account assets		107,095		35,063		—		—		712		142,871
Separate account collateral held under securities lending agreements:
Equity securities		18,543		—		—		—		—		18,543
Debt securities		—		8,704		—		—		—		8,704
Total separate account collateral held under securities lending agreements		18,543		8,704		—		—		—		27,247
Total	$	126,700	$	44,987	$	147	$	690	$	1,315	$	173,840
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	18,543	$	8,704	$	—	$	—	$	—	$	27,247
Other liabilities⁽⁶⁾		—		7		242		—		—		249
Total	$	18,543	$	8,711	$	242	$	—	$	—	$	27,496

⁽¹⁾	Amounts at March 31, 2018 reflect the adoption of ASU 2016-01. See Note 2, Significant Accounting Policies, for further information.

⁽²⁾	Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.

⁽³⁾

Amounts are comprised of investments held at cost or amortized cost, carried interest and certain equity method investments, which include sponsored investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value.

⁽⁴⁾	Level 3 amounts primarily include direct investments in private equity companies held by private equity funds.

⁽⁵⁾	Amounts include fair value of forward foreign currency exchange contracts (see Note 8, Derivatives and Hedging, for more information).

⁽⁶⁾	Amounts primarily include contingent liabilities related to certain acquisitions (see Note 12, Commitments and Contingencies, for more information).

Assets and liabilities measured at fair value on a recurring basis and other assets not held at fair value

December 31, 2017⁽¹⁾ (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⁽²⁾		Other Assets Not Held at Fair Value⁽³⁾		December 31, 2017
Assets:
Investments
Available-for-sale	$	7	$	96	$	—	$	—	$	—	$	103
Held-to-maturity debt securities		—		—		—		—		102		102
Trading:
Deferred compensation plan mutual funds		56		—		—		—		—		56
Equity/Multi-asset mutual funds		493		—		—		—		—		493
Debt securities / fixed income mutual funds		2		284		—		—		—		286
Total trading		551		284		—		—		—		835
Equity method:
Equity and fixed income mutual funds		183		—		—		12		—		195
Other		—		—		—		609		12		621
Total equity method		183		—		—		621		12		816
Cost method investments		—		—		—		—		93		93
Carried interest		—		—		—		—		32		32
Total investments		741		380		—		621		239		1,981
Separate account assets		114,422		34,582		—		—		933		149,937
Separate account collateral held under securities lending agreements:
Equity securities		18,778		—		—		—		—		18,778
Debt securities		—		5,412		—		—		—		5,412
Total separate account collateral held under securities lending agreements		18,778		5,412		—		—		—		24,190
Investments of consolidated VIEs:
Trading:
Equity securities		440		—		—		—		—		440
Debt securities		—		475		—		—		—		475
Private / public equity⁽⁴⁾		6		2		116		59		76		259
Other		—		—		—		53		—		53
Carried interest		—		—		—		—		266		266
Total investments of consolidated VIEs		446		477		116		112		342		1,493
Total	$	134,387	$	40,851	$	116	$	733	$	1,514	$	177,601
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	18,778	$	5,412	$	—	$	—	$	—	$	24,190
Other liabilities⁽⁵⁾		—		7		236		—		—		243
Total	$	18,778	$	5,419	$	236	$	—	$	—	$	24,433

⁽¹⁾	Amounts at December 31, 2017 reflect accounting guidance prior to ASU 2016-01.

⁽²⁾	Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.

⁽³⁾

⁽⁴⁾	Level 3 amounts include direct investments in private equity companies held by private equity funds.

⁽⁵⁾	Amounts primarily include contingent liabilities related to certain acquisitions (see Note 12, Commitments and Contingencies, for more information).

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2018

(in millions)	December 31, 2017		Realized and Unrealized Gains (Losses) in Earnings and OCI			Purchases		Sales and Maturities		Issuances and other Settlements		Transfers into Level 3		Transfers out of Level 3		March 31, 2018 ⁽¹⁾		Total Net Unrealized Gains (Losses) Included in Earnings⁽²⁾
Assets:
Investments:
Debt securities:
Available-for-sale securities⁽³⁾	$	—	$	—		$	26	$	—	$	—	$	—	$	—	$	26
Trading securities		—		—			5		—		—		—		—		5
Total investments		—		—			31		—		—		—		—		31
Assets of consolidated VIEs - Private equity		116		—			—		—		—		—		—		116
Total Level 3 assets	$	116	$	—		$	31	$	—	$	—	$	—	$	—	$	147
Liabilities:
Other liabilities⁽⁴⁾	$	236		(6	)	$	—	$	—	$	—	$	—	$	—	$	242	$	(6	)

(1)	Amounts at March 31, 2018 reflect the adoption of ASU 2016-01. See Note 2, Significant Accounting Policies, for further information.

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

(3)	Amounts include investments in CLOs.

(4)	Other liabilities amount includes contingent liabilities in connection with certain acquisitions.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2017⁽¹⁾

(in millions)	December 31, 2016		Realized and Unrealized Gains (Losses) in Earnings and OCI		Purchases		Sales and Maturities		Issuances and other Settlements		Transfers into Level 3		Transfers out of Level 3⁽²⁾			March 31, 2017		Total Net Unrealized Gains (Losses) Included in Earnings⁽³⁾
Assets:
Investments:
Available-for-sale securities⁽⁴⁾	$	24	$	—	$	—	$	—	$	—	$	—	$	(24	)	$	—
Trading		7		—		—		—		—		—		(7	)		—
Total investments		31		—		—		—		—		—		(31	)		—
Assets of consolidated VIEs - Private equity		112		1		—		—		—		—		—			113	$	1
Total Level 3 assets	$	143	$	1	$	—	$	—	$	—	$	—	$	(31	)	$	113
Liabilities:
Other liabilities⁽⁵⁾	$	115	$	2	$	—	$	—	$	—	$	—	$	—		$	113	$	2

(1)	Amounts at March 31, 2017 reflect accounting guidance prior to ASU 2016-01.

(2)	Amounts include transfers out of Level 3 due to availability of observable market inputs from pricing vendors.

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

(4)	Amounts include investments in CLOs.

(5)	Other liabilities amount includes contingent liabilities in connection with certain acquisitions.

Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At March 31, 2018 and December 31, 2017, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below:

	March 31, 2018				December 31, 2017
(in millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Financial Assets:
Cash and cash equivalents	$	5,978	$	5,978	$	6,894	$	6,894	Level 1	^{(1) (2)}
Cash and cash equivalents of consolidated VIEs		103		103		144		144	Level 1	^{(1) (2)}
Other assets		62		62		70		70	Level 1	^{(1) (3)}

Financial Liability:
Long-term borrowings		5,036		5,134		5,014		5,225	Level 2	⁽⁴⁾

⁽¹⁾	Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities.

⁽²⁾

At March 31, 2018 and December 31, 2017, approximately $204 million and $163 million, respectively, of money market funds were recorded within cash and cash equivalents on the condensed consolidated statements of financial condition. In addition, at March 31, 2018 and December 31, 2017, approximately $13 million and $14 million, respectively, of money market funds were recorded within cash and cash equivalents of consolidated VIEs. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund.

⁽³⁾	Other assets primarily include restricted cash.

⁽⁴⁾

Long-term borrowings are recorded at amortized cost net of debt issuance costs. The fair value of the long-term borrowings, including the current portion of long-term borrowings, is estimated using market prices at the end of March 2018 and December 2017, respectively. See Note 11, Borrowings, for the fair value of each of the Company’s long-term borrowings.

The following tables list information regarding all investments that use a fair value measurement to account for both their financial assets and financial liabilities in their calculation of a NAV per share (or equivalent).

March 31, 2018

(in millions)

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Equity method:⁽¹⁾

Hedge funds/funds of hedge funds

(a)

168

Daily/Monthly (30%)

Quarterly (29%)

N/R (41%)

1 – 90 days

Private equity funds

(b)

N/R

Real assets funds

(c)

302

Quarterly (78%)

N/R (22%)

60 days

Other

Daily/Monthly (79%)

N/R (21%)

3 – 5 days

Consolidated VIEs:

Private equity funds of funds

(d)

N/R

Hedge fund

(a)

—

Quarterly

90 days

Real assets funds

(c)

N/R

Total

690

309

December 31, 2017

(in millions)

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Equity method:⁽¹⁾

Hedge funds/funds of hedge funds

(a)

230

Daily/Monthly (21%)

Quarterly (49%)

N/R (30%)

1 – 90 days

Private equity funds

(b)

N/R

Real assets funds

(c)

282

Quarterly (83%)

N/R (17%)

60 days

Other

Daily (80%)

N/R (20%)

5 days

Consolidated VIEs:

Private equity funds of funds

(d)

N/R

Hedge fund

(a)

—

Quarterly

90 days

Real assets funds

(c)

N/R

Total

733

286

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. It was estimated that the investments in the funds that are not subject to redemption will be liquidated over a weighted-average period of seven years at both March 31, 2018 and December 31, 2017.

^(b)

This category includes several private equity funds that initially invest in nonmarketable securities of private companies, which ultimately may become public in the future. The fair values of these investments have been estimated using capital accounts representing the Company’s ownership interest in the funds as well as other performance inputs. The Company’s investment in each fund is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying assets of the private equity funds. It was estimated that the investments in these funds will be liquidated over a weighted-average period of approximately six years at both March 31, 2018 and December 31, 2017.

^(c)

This category includes several real assets funds that invest directly and indirectly in real estate and infrastructure. The fair values of the investments have been estimated using capital accounts representing the Company’s ownership interest in the funds. The Company’s investments that are not subject to redemption or are not currently redeemable are normally returned through distributions and realizations of the underlying assets of the funds. It is estimated that the investments in these funds not subject to redemptions will be liquidated over a weighted-average period of approximately eight years at both March 31, 2018 and December 31, 2017. The total remaining unfunded commitments to real assets funds were $128 million and $117 million at March 31, 2018 and December 31, 2017, respectively. The Company had contractual obligations to the real assets funds of $108 million at March 31, 2018 and $98 million at December 31, 2017.

^(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; 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. It is estimated that the underlying assets of these funds will be liquidated over a weighted-average period of approximately five years at both March 31, 2018 and December 31, 2017. The total remaining unfunded commitments to other third-party funds were $18 million and $20 million at March 31, 2018 and December 31, 2017, respectively. The Company had contractual obligations to the consolidated funds of $23 million at both March 31, 2018 and December 31, 2017.