Investing in Strategic Growth Drivers and Accelerators slide image

Investing in Strategic Growth Drivers and Accelerators

Reconciliation between GAAP and as adjusted ($mm, except per share data) Operating income (2) (2) 2013 2014 2015(2) 2016 $3,857 $4,474 $4,664 $4,565 2017 2018 2019 IRH0621U/M-1675207-1/171 2020 Operating Income, GAAP basis Non-GAAP expense adjustments: Restructuring charge Compensation expense related to appreciation (depreciation) on deferred compensation plans Reduction of indemnification asset Charitable Contribution $5,254 $5,457 $5,551 $5,695 76 60 10 7 1 - 50 124 589 PNC LTIP funding obligation 33 32 30 Operating Income, as adjusted Product launch costs and commissions 4,024 18 4,563 4,695 28 4,669 15 5,269 11 5 14 5,531 13 5,551 61 6,284 Operating income used for operating margin measurement $4,042 $4,574 $4,700 $4,669 $5,269 $5,544 $5,612 172 $6,456 Revenue (1) Revenue, GAAP basis $10,180 Distribution fees Investment advisory fees (73) (332) Revenue used for operating margin measurement $9,775 $11,081 (70) (350) $10,661 $11,401 (55) (402) $10,944 $12,261 $13,600 $14,198 $14,539 $16,205 (1,198) (410) $10,653 (1,183) (480) $11,937 (1,155) (520) $12,523 (1,069) (1,131) (616) $12,854 (704) $14,370 Operating margin, GAAP basis 37.9% 40.4% 40.9% 37.2% 38.6% 38.4% 38.2% 35.1% Operating margin, as adjusted 41.4% 42.9% 42.9% 43.8% 44.1% 44.3% 43.7% 44.9% Net Income Net income attributable to BlackRock, Inc., GAAP basis Restructuring charge, net of tax $2,932 $3,294 $3,345 $3,168 $4,952 $4,305 $4,476 $4,932 PNC LTIP funding obligation, net of tax 23 25 22 53 19 47 11 12 Amount related to the Charitable Contribution, net of tax The 2017 Tax Act: (4) 226 Deferred tax revaluation (noncash) Deemed repatriation tax Other income tax matters (69) Net income attributable to BlackRock, Inc., as adjusted $2,882 (9) $3,310 (54) $3,313 (30) $3,210 (1,758) 477 16 $3,698 (3) $4,361 8 $4,484 79 $5,237 Diluted weighted-average common shares outstanding Diluted earnings per common share, GAAP basis Diluted earnings per common share, as adjusted 173,828,902 $16.87 $16.58 171,112,261 $19.25 $19.34 169,038,571 $19.79 $19.60 166,579,752 $19.02 $19.27 164,415,035 $30.12 $22.49 161,948,732 $26.58 $26.93 157,459,546 $28.43 $28.48 152,840,582 $31.85 $33.82 (1) For further information and reconciliation between GAAP and non-GAAP measures, see notes (1) through (4) in our earnings release for the year ended December 31, 2020 as well as previously filed Form 10-Ks and 8-Ks. (2) Information reflects accounting guidance prior to the adoption of the new revenue recognition standard. For further information, refer to Note 2, Significant Accounting Policies, in the consolidated financial statements in our 2018 Form 10-K. BlackRock 146
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