## Table 0 ##
(1) Includes separate account assets that are segregated funds held for purposes of funding individual and group pension contracts and collateral held under securities lending agreements related to these assets that have equal and offsetting amounts recorded in liabilities and ultimately do not impact BlackRock’s stockholders’ equity or cash flows.
(2) Equal and offsetting amounts, related to separate account assets and collateral held under securities lending agreements, are recorded in liabilities.
(3) Amounts include assets held by consolidated sponsored investment products.
During 2015, the Company adopted new accounting guidance on consolidations effective January 1, 2015 using the modified retrospective method.
As a result of the adoption, the Company’s balance sheet at December 31, 2015 reflects the deconsolidation of the Company’s previously consolidated collateralized loan obligations.
(4) Amounts include commodity iShares ETFs.
(5) Advisory AUM represents long-term portfolio liquidation assignments.
## Table 1 ##
(1) See Non-GAAP Financial Measures for further information on and reconciliation of as adjusted items.
(2) Net of net income (loss) attributable to NCI.
(3) GAAP income tax expense and effective tax rate for 2017 reflects $1.2 billion of a net tax benefit related to the 2017 Tax Act.
The Company’s tax rate is affected by tax rates in foreign jurisdictions and the relative amount of income earned in those jurisdictions, which the Company expects to be fairly consistent in the near term.
The significant foreign jurisdictions that have lower statutory tax rates than the U. S.  federal statutory rate of 35% include the United Kingdom, Channel Islands, Ireland and Netherlands.2017.
Income tax expense (GAAP) reflected: ?
the following amounts related to the 2017 Tax Act: ?
$106 million tax expense related to the revaluation of certain deferred income tax assets; ?
$1,758 million noncash tax benefit related to the revaluation of certain deferred income tax liabilities; and ?
$477 million tax expense related to the mandatory deemed repatriation of undistributed foreign earnings and profits.  ?
a noncash expense of $16 million, primarily associated with the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes; and ?
$173 million discrete tax benefits, primarily related to stock-based compensation awards, including $151 million related to the adoption of new accounting guidance related to stock-based compensation awards.
See Note 2, Significant Accounting Policies, for further information.
The as adjusted effective tax rate of 29.3% for 2017 excluded the noncash deferred tax revaluation benefit of $1,758 million and noncash expense of $16 million mentioned above as it will not have a cash flow impact and to ensure comparability among periods presented.
In addition, the deemed repatriation tax expense of $477 million has been excluded from the as adjusted results due to the one-time nature and to ensure comparability among periods presented.2016.
Income tax expense (GAAP) reflected: ?
a net noncash benefit of $30 million, primarily associated with the revaluation of certain deferred income tax liabilities; and ?
a benefit from $65 million of nonrecurring items, including the resolution of certain outstanding tax matters.
The as adjusted effective tax rate of 29.6% for 2016 excluded the net noncash benefit of $30 million mentioned above as it will not have a cash flow impact and to ensure comparability among periods presented.2015.
Income tax expense (GAAP) reflected: ?
a net noncash benefit of $54 million, primarily associated with the revaluation of certain deferred income tax liabilities; and ?
a benefit from $75 million of nonrecurring items, primarily due to the realization of losses from changes in the Company’s organizational tax structure and the resolution of certain outstanding tax matters.
The as adjusted effective tax rate of 28.4% for 2015 excluded the net noncash benefit of $54 million mentioned above, as it will not have a cash flow impact and to ensure comparability among periods presented.
BALANCE SHEET OVERVIEW As Adjusted Balance Sheet The following table presents a reconciliation of the consolidated statement of financial condition presented on a GAAP basis to the consolidated statement of financial condition, excluding the impact of separate account assets and separate account collateral held under securities lending agreements (directly related to lending separate account securities) and separate account liabilities and separate account collateral liabilities under securities lending agreements and consolidated sponsored investment funds, including consolidated VIEs.
The Company presents the as adjusted balance sheet as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or noncontrolling interests that ultimately do not have an impact on stockholders’ equity or cash flows.
Management views the as adjusted balance sheet, which contains non-GAAP financial measures, as an economic presentation of the Company’s total assets and liabilities; however, it does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Separate Account Assets and Liabilities and Separate Account Collateral Held under Securities Lending Agreements Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company that is a registered life insurance company in the United Kingdom, and represent segregated assets held for purposes of funding individual and group pension contracts.
The
when the likelihood of clawback is considered mathematically improbable.
The Company records a deferred carried interest liability to the extent it receives cash or capital allocations related to carried interest prior to meeting the revenue recognition criteria.
At December 31, 2017 and 2016, the Company had $219 million and $152 million, respectively, of deferred carried interest recorded in other liabilities/other liabilities of consolidated VIEs on the consolidated statements of financial condition.
A portion of the deferred carried interest liability will be paid to certain employees.
The ultimate timing of the recognition of performance fee revenue, if any, for these products is unknown.
The following table presents changes in the deferred carried interest liability (including the portion related to consolidated VIEs) for 2017 and 2016:
## Table 2 ##
For 2017, 2016 and 2015, performance fee revenue (which included recognized carried interest) totaled $594 million, $295 million and $621 million, respectively.
Fees earned for technology and risk management revenue are recorded as services are performed and are generally determined using the value of positions on the Aladdin platform or on a fixed-rate basis.
For 2017, 2016 and 2016, technology and risk management revenue totaled $677 million, $595 million and $528 million, respectively.
Adjustments to revenue arising from initial estimates recorded historically have been immaterial since the majority of BlackRock’s investment advisory and administration revenue is calculated based on AUM and since the Company does not record performance fee revenue until performance thresholds have been exceeded and the likelihood of clawback is mathematically improbable.
Accounting Developments Recent Accounting Pronouncements Not Yet Adopted.
Revenue from Contracts with Customers.
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”).
ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.
The guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements.
The key changes in the standard that impact the Company’s revenue recognition relate to the presentation of certain revenue contracts and associated contract costs.
The most significant of these changes relates to the presentation of certain distribution costs, which are currently presented net against revenues (contra-revenue) and will be presented as an expense on a gross basis.
The Company adopted ASU 2014-09 effective January 1, 2018 on a full retrospective basis, which will require 2016 and 2017 to be restated in future filings.
The cumulative effect adjustment to the 2016 opening retained earnings was not material.
The Company currently expects the net gross up to revenue to be approximately $1 billion with a corresponding gross up to expense for both 2016 and 2017.
Consequently, the Company expects its GAAP operating margin to decline upon adoption due to the gross up of revenue.
However, no material impact is expected on the Company’s as adjusted operating margin.
For accounting pronouncements that the Company adopted during the year ended December 31, 2017 and for additional recent accounting pronouncements not yet adopted, see Note 2, Significant Accounting Policies, in the consolidated financial statements contained in Part II, Item 8 of this filing.
Item 7a.
Quantitative and Qualitative Disclosures about Market Risk AUM Market Price Risk.
BlackRock’s investment advisory and administration fees are primarily comprised of fees based on a percentage of the value of AUM and, in some cases, performance fees expressed as a percentage of the returns realized on AUM.
At December 31, 2017, the majority of the Company’s investment advisory and administration fees were based on average or period end AUM of the applicable investment funds or separate accounts.
Movements in equity market prices, interest rates/credit spreads, foreign exchange rates or all three could cause the value of AUM to decline, which would result in lower investment advisory and administration fees.
Corporate Investments Portfolio Risks.
As a leading investment management firm, BlackRock devotes significant resources across all of its operations to identifying, measuring, monitoring, managing and analyzing market and operating risks, including the management and oversight of its own investment portfolio.
The Board of Directors of the Company has adopted guidelines for the review of investments to be made by the Company, requiring, among other things, that investments be reviewed by certain senior officers of the Company, and that certain investments may be referred to the Audit Committee or the Board of Directors, depending on the circumstances, for approval.
In the normal course of its business, BlackRock is exposed to equity market price risk, interest rate/credit spread risk and foreign exchange rate risk associated with its corporate investments.
BlackRock has investments primarily in sponsored investment products that invest in a variety of asset classes, including real assets, private equity and hedge funds.
Investments generally are made for co-investment purposes, to establish a performance track record, to hedge exposure to certain deferred compensation plans or for regulatory purposes.
Currently, the Company has a seed capital hedging program in which it enters into swaps to hedge market and interest rate exposure to certain investments.
At December 31, 2017, the Company had outstanding total return swaps with an aggregate notional value of approximately $587 million.
At December 31, 2017, there were no outstanding interest rate swaps.
There are significant costs associated with the Recall Transaction.
We currently estimate total operating and capital expenditures associated with the Recall Transaction to be approximately $380.0 million, the majority of which is expected to be incurred by the end of 2018.
This amount consists of approximately $80.0 million of Recall Deal Close Costs and approximately $300.0 million of Recall Integration Costs.
Of these amounts, approximately $47.1 million was incurred through December 31, 2015 ($24.7 million of Recall Deal Close Costs and $22.4 million of Recall Integration Costs), including approximately $47.0 million of operating expenditures and approximately $0.1 million of capital expenditures.
Additionally, upon closing of the Recall Transaction we will incur costs associated with (i) the cash components of the purchase price noted above and (ii) the payoff of outstanding borrowings under Recall’s existing revolving credit facility.
We expect the total cost to close the Recall Transaction (including Recall Deal Close Costs, the cash components of the purchase price and the payoff of Recall’s revolving credit facility, but excluding Recall Integration Costs) to be approximately $1,100.0 million.
We intend to fund these costs through a combination of cash on hand, borrowings under our Revolving Credit Facility and, as necessary, public or private debt financing.
Contractual Obligations The following table summarizes our contractual obligations as of December 31, 2015 and the anticipated effect of these obligations on our liquidity in future years (in thousands):

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December 31,
(in millions)	2017	2016	2015	2014	2013
Balance sheet data:
Cash and cash equivalents	$6,894	$6,091	$6,083	$5,723	$4,390
Goodwill and intangible assets, net	30,609	30,481	30,495	30,305	30,481
Total assets-1	220,217	220,177	225,261	239,792	219,859
Less:
Separate account assets-2	149,937	149,089	150,851	161,287	155,113
Collateral held under securities lending agreements-2	24,190	27,792	31,336	33,654	21,788
Consolidated investment vehicles-3	580	375	678	3,787	2,714
Adjusted total assets	$45,510	$42,921	$42,396	$41,064	$40,244
Borrowings	5,014	4,915	4,930	4,922	4,925
Total BlackRock, Inc. stockholders’ equity	$31,825	$29,098	$28,503	$27,366	$26,460
Assets under management:
Equity:
Active	$311,209	$275,033	$281,319	$292,802	$317,262
iSharesETFs	1,329,610	951,252	823,156	790,067	718,135
Non-ETF index	1,730,822	1,430,891	1,319,297	1,368,242	1,282,298
Equity subtotal	3,371,641	2,657,176	2,423,772	2,451,111	2,317,695
Fixed income:
Active	815,135	749,996	719,653	701,324	652,209
iSharesETFs	395,252	314,707	254,190	217,671	178,835
Non-ETF index	645,078	507,662	448,525	474,658	411,142
Fixed income subtotal	1,855,465	1,572,365	1,422,368	1,393,653	1,242,186
Multi-asset	480,278	395,007	376,336	377,837	341,214
Alternatives:
Core	98,533	88,630	92,085	88,006	85,026
Currency and commodities-4	30,814	28,308	20,754	23,234	26,088
Alternatives subtotal	129,347	116,938	112,839	111,240	111,114
Long-term	5,836,731	4,741,486	4,335,315	4,333,841	4,012,209
Cash management	449,949	403,584	299,884	296,353	275,554
Advisory-5	1,515	2,782	10,213	21,701	36,325
Total	$6,288,195	$5,147,852	$4,645,412	$4,651,895	$4,324,088

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GAAP	As adjusted
(in millions)	2017	2016	2015	2017	2016	2015
Operating income-1	$5,272	$4,570	$4,664	$5,287	$4,674	$4,695
Total nonoperating income (expense)(1)(2)	-32	-108	-69	-32	-108	-70
Income before income taxes-2	$5,240	$4,462	$4,595	$5,255	$4,566	$4,625
Income tax expense-3	$270	$1,290	$1,250	$1,539	$1,352	$1,312
Effective tax rate-3	5.2%	28.9%	27.2%	29.3%	29.6%	28.4%

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(in millions)	2017	2016
Beginning balance	$152	$143
Net increase (decrease) in unrealized allocations	75	37
Performance fee revenue recognized	-21	-28
Acquisition	13	—
Ending balance	$219	$152

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Question: What will adjusted total assets be like in 2018 if it develops with the same increasing rate as current? (in dollars in millions)
Answer: 48255.1688