March 18, 2024

Recast of 2023 and 2022 operating expense presentation

BlackRock updates operating expense presentation within

the consolidated statements of income

Beginning in the first quarter of 2024, BlackRock, Inc. (the "Company") updated the presentation of the Company's expense line items within the consolidated statements of income by including a new "sales, asset, and account expense" income statement caption, which is comprised of distribution and servicing costs, direct fund expense, and sub-advisory and other sales, asset, and account-based expense. Sub-advisory and other expense was previously reported within general and administration expense. Management believes the inclusion of this new sales, asset, and account expense caption provides both management and investors useful disclosure of the Company's variable, non-compensation, sales, asset, and account-based expense over time. We have recast the Company's 2022 and 2023 expense line items to conform to this new presentation.

Refer to page 3 for a recast of 2022 and 2023 expense line items. There were no changes to total expense, operating income, operating margin, net income attributable to BlackRock, Inc., or earnings per share as a result of this updated presentation under generally accepted accounting principles in the United States ("US GAAP") and as adjusted.

2

Recast of 2023 and 2022 operating expense line items

2023 OPERATING EXPENSE LINE ITEM RECAST

Three Months Ended

Year Ended

March 31

June 30

September 30

December 31

December 31

Operating

Operating

Operating

Operating

Operating

Expense

Previously

Expense

Previously

Expense

Previously

Expense

Previously

Expense

Previously

(in millions), (unaudited)

Recast

Reported

Recast

Reported

Recast

Reported

Recast

Reported

Recast

Reported

Expense

Employee compensation and benefits

$

1,427

$

1,427

$

1,429

$

1,429

$

1,420

$

1,420

$

1,503

$

1,503

$

5,779

$

5,779

Sales, asset and account expense

Distribution and servicing costs

505

505

518

518

526

526

502

502

2,051

2,051

Direct fund expenses

315

315

344

344

354

354

318

318

1,331

1,331

Sub-advisory and other

26

-

27

-

28

-

35

-

116

-

Total sales, asset and account expense

846

820

889

862

908

880

855

820

3,498

3,382

General and administration

495

521

493

520

518

546

589

624

2,095

2,211

Restructuring charge

-

-

-

-

-

-

61

61

61

61

Amortization of intangible assets

37

37

37

37

39

39

38

38

151

151

Total expense

$

2,805

$

2,805

$

2,848

$

2,848

$

2,885

$

2,885

$

3,046

$

3,046

$

11,584

$

11,584

-

-

-

-

-

-

-

-

-

-

2022 OPERATING EXPENSE LINE ITEM RECAST

Three Months Ended

Year Ended

March 31

June 30

September 30

December 31

December 31

Operating

Operating

Operating

Operating

Operating

Expense

Previously

Expense

Previously

Expense

Previously

Expense

Previously

Expense

Previously

(in millions), (unaudited)

Recast

Reported

Recast

Reported

Recast

Reported

Recast

Reported

Recast

Reported

Expense

Employee compensation and benefits

$

1,498

$

1,498

$

1,414

$

1,414

$

1,339

$

1,339

$

1,430

$

1,430

$

5,681

$

5,681

Sales, asset and account expense

Distribution and servicing costs

574

574

572

572

536

536

497

497

2,179

2,179

Direct fund expenses

329

329

304

304

318

318

275

275

1,226

1,226

Sub-advisory and other

25

-

25

-

26

-

27

-

103

-

Total sales, asset and account expense

928

903

901

876

880

854

799

772

3,508

3,405

General and administration

471

496

505

530

528

554

553

580

2,057

2,160

Restructuring charge

-

-

-

-

-

-

91

91

91

91

Amortization of intangible assets

38

38

38

38

38

38

37

37

151

151

Total expense

$

2,935

$

2,935

$

2,858

$

2,858

$

2,785

$

2,785

$

2,910

$

2,910

$

11,488

$

11,488

Check

-

-

-

-

-

-

-

-

-

-

3

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Disclaimer

BlackRock Inc. published this content on 18 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 20:55:04 UTC.