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.
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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 | - | - | - | - | - | - | - | - | - | - | ||||||||||
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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.