Revenue (Tables)

12 Months Ended

Dec. 31, 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 2019, 2018 and 2017 and includes the product mix of investment advisory, administration fees and securities lending revenue (collectively “base fees”) and performance fees.

(in millions)	2019		2018		2017
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	1,554	$	1,654	$	1,654
iShares ETFs		3,495		3,549		3,220
Non-ETF index		667		685		680
Equity subtotal		5,716		5,888		5,554
Fixed income:
Active		1,918		1,840		1,717
iShares ETFs		963		825		808
Non-ETF index		405		387		344
Fixed income subtotal		3,286		3,052		2,869
Multi-asset		1,148		1,176		1,157
Alternatives:
Illiquid alternatives		488		348		281
Liquid alternatives		413		384		358
Currency and commodities ⁽¹⁾		108		98		91
Alternatives subtotal		1,009		830		730
Long-term		11,159		10,946		10,310
Cash management		618		607		558
Total base fees		11,777		11,553		10,868
Investment advisory performance fees:
Equity		36		91		152
Fixed income		10		8		34
Multi-asset		19		19		33
Alternatives:
Illiquid alternatives		136		70		62
Liquid alternatives		249		224		313
Alternatives subtotal		385		294		375
Total performance fees		450		412		594
Technology services revenue		974		785		657
Distribution fees:
Retrocessions		658		709		675
12b-1 fees (US mutual fund distribution fees)		358		406		466
Other		53		40		42
Total distribution fees		1,069		1,155		1,183
Advisory and other revenue:
Advisory		99		113		128
Other		170		180		170
Total advisory and other revenue		269		293		298
Total revenue	$	14,539	$	14,198	$	13,600

(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:

(in millions)	2019		2018		2017
By client type:
Retail	$	3,411	$	3,413	$	3,250
iShares ETFs		4,564		4,468		4,113
Institutional:
Active		2,172		2,044		1,955
Index		1,012		1,021		992
Total institutional		3,184		3,065		2,947
Long-term		11,159		10,946		10,310
Cash management		618		607		558
Total	$	11,777	$	11,553	$	10,868

By investment style:
Active	$	5,510	$	5,391	$	5,152
Index and iShares ETFs		5,649		5,555		5,158
Long-term		11,159		10,946		10,310
Cash management		618		607		558
Total	$	11,777	$	11,553	$	10,868

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 December 31, 2019 and 2018:

December 31, 2019

(in millions)	2020			2021		2022	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	98	$	88	$	74	$	107	$	367

December 31, 2018

(in millions)	2019			2020		2021	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	61	$	53	$	42	$	70	$	226

(1)

Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at December 31, 2019 and 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, which is included in other liabilities on the consolidated statements of financial condition, for the year ended December 31, 2019 and 2018:

(in millions)	2019			2018
Beginning balance	$	293		$	219
Net increase (decrease) in unrealized allocations		259			92
Performance fee revenue recognized		(75	)		(18	)
Other		6			—
Ending balance	$	483		$	293

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 December 31, 2019 and 2018:

December 31, 2019

(in millions)	2020					2021				2022			Thereafter				Total
Technology services revenue⁽¹⁾⁽²⁾	$	117			$	53			$	31			$	20			$	221

December 31, 2018

(in millions)	2019					2020				2021			Thereafter				Total
Technology services revenue⁽¹⁾⁽²⁾	$	28			$	24			$	18			$	17			$	87

(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 year ended December 31, 2019 and 2018, which is included in other liabilities on the consolidated statements of financial condition:

(in millions)	2019			2018
Beginning balance	$	70		$	62
Additions		86			44
Revenue recognized that was included in the beginning balance		(40	)		(36	)
Ending balance	$	116		$	70