Revenue (Tables)

6 Months Ended

Jun. 30, 2019

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 six months ended June 30, 2019 and 2018. See Note 2, Significant Accounting Policies, in the 2018 Form 10-K for more information on the Company’s revenue recognition.

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(in millions)	2019		2018			2019		2018
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	385	$	426		$	760	$	864
iShares ETFs		870		911			1,717		1,837
Non-ETF Index		163		187			327		363
Equity subtotal		1,418		1,524			2,804		3,064
Fixed income:
Active		474		458			931		914
iShares ETFs		234		207			454		415
Non-ETF Index		98		101			195		194
Fixed income subtotal		806		766			1,580		1,523
Multi-asset		288		295			564		591
Alternatives:
Illiquid alternatives		118		83			228		160
Liquid alternatives		102		93			196		194
Currency and commodities⁽¹⁾		24		26			48		51
Alternatives subtotal		244		202			472		405
Long-term		2,756		2,787			5,420		5,583
Cash management		147		157			288		308
Total base fees		2,903		2,944			5,708		5,891
Investment advisory performance fees:
Equity		4		43			4		61
Fixed income		—		(1	)		2		2
Multi-asset		6		9			6		14
Alternatives:
Illiquid alternatives		15		2			35		2
Liquid alternatives		39		38			43		82
Alternatives subtotal		54		40			78		84
Total performance fees		64		91			90		161
Technology services revenue		237		198			441		382
Distribution fees:
Retrocessions		164		181			325		373
12b-1 fees (US mutual funds distribution fees)		88		103			177		211
Other		15		10			27		21
Total distribution fees		267		294			529		605
Advisory and other revenue:
Advisory		22		33			41		54
Other		31		45			61		95
Total advisory and other revenue		53		78			102		149
Total revenue	$	3,524	$	3,605		$	6,870	$	7,188

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⁽¹⁾ Amount includes commodity iShares ETFs.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2019		2018		2019		2018
By client type:
Retail	$	846	$	858	$	1,672	$	1,713
iShares ETFs		1,128		1,143		2,219		2,301
Institutional:
Active		537		511		1,037		1,038
Index		245		275		492		531
Total institutional		782		786		1,529		1,569
Long-term		2,756		2,787		5,420		5,583
Cash management		147		157		288		308
Total	$	2,903	$	2,944	$	5,708	$	5,891

By investment style:
Active	$	1,365	$	1,352	$	2,672	$	2,717
Index and iShares ETFs		1,391		1,435		2,748		2,866
Long-term		2,756		2,787		5,420		5,583
Cash management		147		157		288		308
Total	$	2,903	$	2,944	$	5,708	$	5,891

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 June 30, 2019 and 2018:

June 30, 2019

	Remainder of
(in millions)	2019			2020		2021		2022	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	41	$	74	$	62	$	53	$	50	$	280

⁽¹⁾

^{Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at June 30, 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.}

June 30, 2018

	Remainder of
(in millions)	2018			2019		2020		2021	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	43	$	75	$	64	$	52	$	52	$	286

⁽¹⁾

^{Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at June 30, 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.}

⁽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 (including the portion related to consolidated VIEs), which is included in other liabilities/other liabilities of consolidated VIEs on the condensed consolidated statements of financial condition, for the three and six months ended June 30, 2019 and 2018:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	327		$	224		$	293		$	219
Net increase (decrease) in unrealized allocations		48			22			99			27
Performance fee revenue recognized		(10	)		(4	)		(27	)		(4	)
Ending balance	$	365		$	242		$	365		$	242

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 June 30, 2019 and 2018:

June 30, 2019

	Remainder of
(in millions)	2019			2020		2021		2022	Thereafter		Total
Technology services revenue⁽¹⁾⁽²⁾	$	60	$	47	$	33	$	19	$	12	$	171

⁽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.}

June 30, 2018

	Remainder of
(in millions)	2018			2019		2020		2021	Thereafter		Total
Technology services revenue⁽¹⁾⁽²⁾	$	15	$	27	$	23	$	17	$	14	$	96

⁽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 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, which is included in other liabilities on the condensed consolidated statements of financial condition, for the three and six months ended June 30, 2019 and 2018:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	73		$	66		$	70		$	62
Acquisition, net of revenue recognized⁽¹⁾		24			—			24			—
Additions		12			8			23			20
Revenue recognized that was included in the beginning balance		(9	)		(10	)		(17	)		(18	)
Ending balance	$	100		$	64		$	100		$	64

⁽¹⁾	^{The increase during the three and six months ended June 30, 2019 resulted from the eFront Transaction, which closed on May 10, 2019. See Note 3, Acquisition, for information on the eFront Transaction.}