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Notes to
Financial
Statements
(Unaudited)
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BlackRock Large Cap Series Funds,
Inc.
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1. Organization and Significant Accounting Policies:
BlackRock Large Cap Core Fund (“Large Cap Core”), BlackRock Large Cap Growth Fund (“Large Cap Growth”), BlackRock Large Cap Value Fund
(“Large Cap Value”), BlackRock Large Cap Core Retirement Portfolio (“Large Cap Core Retirement”), BlackRock Large Cap Growth Retirement Portfolio (“Large Cap Growth Retirement”), BlackRock Large Cap Value Retirement
Portfolio (“Large Cap Value Retirement”) and BlackRock Large Cap Core Plus Fund (“Large Cap Core Plus”) (collectively, the “Funds,” or individually, a “Fund”), are each a series of BlackRock Large Cap Series
Funds, Inc. (the “Corporation”), which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Corporation is organized as a Maryland corporation.
Each Fund is classified as diversified. The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make
estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reported period. Actual results could
differ from those estimates. Large Cap Core, Large Cap Growth, Large Cap Value and Large Cap Core Plus each offer multiple classes of shares. Institutional Shares are sold without a sales charge and only to certain eligible investors. Service Shares
are sold without a sales charge. Investor A Shares are generally sold with a front-end sales charge. Investor B and Investor C Shares may be subject to a CDSC. Class R Shares are sold without a sales charge and only to certain employer-sponsored
retirement plans. Large Cap Core Retirement, Large Cap Growth Retirement and Large Cap Value Retirement each offer Class K Shares. Class K Shares are not subject to any sales charge and are only available to eligible investors. All classes of shares
have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Service, Investor A, Investor B, Investor C and Class R Shares bear certain expenses related to the shareholder servicing of such shares,
and Investor B, Investor C and Class R Shares also bear certain expenses related to the distribution of such shares. Investor B Shares automatically convert to Investor A Shares after approximately eight years. Investor B Shares are only available
through exchanges and dividend reinvestments by existing shareholders and for purchase by certain employer-sponsored retirement plans. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and
distribution expenditures (except that Investor B shareholders may vote on material changes to the Investor A distribution and service plan).
Large Cap
Core, Large Cap Growth, Large Cap Value, Large Cap Core Retirement, Large Cap Growth Retirement, and Large Cap Value Retirement (collectively, the “Feeder Funds” or individually a “Feeder Fund”) seek to achieve their investment
objectives by investing all of their assets in the corresponding master portfolios (individually, a “Portfolio” or collectively, the “Portfolios”) of Master Large Cap Series LLC (the “Master LLC”), an affiliate of the
Funds. Large Cap Core and Large Cap Core Retirement invest all of their assets in Master Large Cap Core Portfolio. Large Cap Growth and Large Cap Growth Retirement invest all of their assets in Master Large Cap Growth Portfolio. Large Cap Value and
Large Cap Value Retirement invest all of their assets in Master Large Cap Value Portfolio. Each Portfolio has the same investment objective and strate-
gies as the corresponding Feeder Fund. The value of a Feeder Fund’s investment in the applicable Portfolio
reflects the Fund’s proportionate interest in the net assets of such Portfolio. The performance of a Feeder Fund is directly affected by the performance of the applicable Portfolio. The percentages of Master Large Cap Core Portfolio, Master
Large Cap Growth Portfolio and Master Large Cap Value Portfolio owned by Large Cap Core, Large Cap Growth, Large Cap Value, Large Cap Core Retirement, Large Cap Growth Retirement and Large Cap Value Retirement at March 31, 2013 were 73.7%,
96.4%, 88.2%, 2.9%, 0.1% and 11.8%, respectively. The performance of a Feeder Fund is directly affected by the performance of the applicable Portfolio. The financial statements of the Portfolios, including the Schedules of Investments, are included
elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.
The following is a summary of significant
accounting policies followed by the Funds:
Valuation:
US GAAP defines fair value as the price the Funds would receive to sell an asset or
pay to transfer a liability in an orderly transaction between market participants at the measurement date. Large Cap Core Plus determines the fair values of its financial instruments at market value using independent dealers or pricing services
under policies approved by the Board of Directors of the Corporation (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global
pricing policies and procedures and to provide oversight of the pricing function for Large Cap Core Plus for all financial instruments.
Each Feeder
Fund’s policy is to fair value its financial instruments at market value. Each Feeder Fund records its investments in the corresponding Portfolio at fair value based on the Feeder Fund’s proportionate interest in the net assets of the
Portfolio. Valuation of securities held by a Portfolio is discussed in Note 1 of the Master LLCs’ Notes to Financial Statements, which are included elsewhere in this report.
Large Cap Core Plus equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official
closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were
no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no
longer reflects the fair value of the security. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which
approximates fair value.
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be
representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair
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BLACKROCK LARGE CAP SERIES FUNDS, INC.
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MARCH 31, 2013
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59
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Notes to Financial Statements
(continued)
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BlackRock Large Cap Series Funds,
Inc.
|
value (“Fair Value Assets”) for Large Cap Core Plus. When determining the price for Fair Value Assets, the
Global Valuation Committee, or its delegate, seeks to determine the price that Large Cap Core Plus might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based
upon all available factors that the Global Valuation Committee, or its delegate, deem relevant consistent with the principles of fair value measurement which include the market approach, income approach and/ or in the case of recent investments, the
cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These
factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset;
(iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the
values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist including regular due
diligence of Large Cap Core Plus’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or
stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.
Foreign Currency:
Large Cap Core Plus’ books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the
rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, Large Cap Core Plus’ investments denominated in that currency will lose value because that
currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.
Large Cap Core Plus does not isolate the
portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign
currency exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments.
Large Cap Core Plus reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal
income tax purposes.
Short Sales:
Large Cap Core Plus may enter into short sale transactions in which the Fund sells a security it does not hold
in anticipation of a
decline in the market price of that security. When the Fund makes a short sale, it will borrow the security sold
short and deliver the security to the counterparty to which it sold the security short. An amount equal to the proceeds received by the Fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the market value of the short sale. The Fund is required to repay the counterparty any dividends received on the security sold short, which is shown as dividend expense in the Statements of Operations. The Fund may pay a
fee on the assets borrowed from the counterparty, which is shown as stock loan fees in the Statements of Operations. The Fund maintains a segregated account of securities or deposits cash with the broker-dealer as collateral for the short sales. The
Fund may receive interest on the cash collateral deposited with the broker-dealer. The Fund is exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was
sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of a theoretically unlimited loss since there is a
theoretically unlimited potential for the market price of the security sold short to increase. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited as to the dollar amount, will be recognized upon the
termination of a short sale if the market price is either less than or greater than the proceeds originally received. There is no assurance the Fund will be able to close out a short position at a particular time or at an acceptable price.
Segregation and Collateralization:
In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that Large Cap Core Plus either deliver collateral or segregate assets in connection with certain investments (e.g., foreign currency exchange contracts), Large Cap Core Plus will, consistent with SEC rules and/or certain
interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.
Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, Large Cap Core Plus engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as
collateral for certain investments.
Investment Transactions and Investment Income:
For financial reporting purposes, investment transactions are
recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign
securities where the ex-dividend date may have passed are subsequently recorded when Large Cap Core Plus is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains,
dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Income and realized and
unrealized gains and losses are allocated daily to each class based on its relative net assets. For financial reporting purposes, contributions to and withdrawals from the corresponding Portfolio are
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60
|
|
BLACKROCK LARGE CAP SERIES FUNDS, INC.
|
|
MARCH 31, 2013
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Notes to Financial Statements (continued)
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BlackRock Large Cap Series Funds,
Inc.
|
accounted for on a trade date basis. The Feeder Funds record daily their proportionate share of the corresponding
Portfolio’s income, expenses and realized and unrealized gains and losses. In addition, each Feeder Fund accrues its own expenses. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its
relative net assets.
Dividends and Distributions:
Dividends and distributions paid by the Funds are recorded on the ex-dividend dates. The
portion of distributions that exceeds the Funds’ current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of the Funds’ taxable income and net
capital gains, but not in excess of the Funds’ earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. Capital losses carried forward from years beginning before 2011 do
not reduce earnings and profits, even if such carried forward losses offset current year realized gains. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from
US GAAP.
Income Taxes:
It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended,
applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations for each Fund’s US federal income tax returns remains open
for each of the three years ended September 30, 2012 and the period ended September 30, 2009. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the
jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
Recent Accounting
Standards:
In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be
required for investments and derivative financial instruments subject to master netting or similar agreements which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net
information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the
disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial
statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on each Fund’s financial statement disclosures.
Other:
Expenses directly related to a Fund or its classes are charged to that Fund or class. Other operating expenses shared by several funds are pro rated
among those funds on the basis of relative net assets or other
appropriate methods. Expenses directly related to a Fund and other shared expenses pro-rated to a Fund are allocated
daily to each class based on its relative net assets or other appropriate methods.
Large Cap Core Plus has an arrangement with the custodian whereby
fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated
credits earned or may result in additional custody charges.
2. Derivative Financial Instruments:
Large Cap Core Plus engages in various portfolio investment strategies using derivative contracts both to increase the returns of Large Cap Core Plus and/or to
economically hedge, or protect, its exposure to certain risks such as foreign currency exchange rate risk. These contracts may be transacted on an exchange or over-the-counter (“OTC”).
Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the
counterparty does not perform under the contract. Large Cap Core Plus’ maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by the counterparty.
Large Cap Core Plus may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and
Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) implemented between Large Cap Core Plus and each of its respective counterparties. An ISDA Master Agreement allows Large Cap Core Plus to offset with each separate
counterparty certain derivative financial instrument’s payables and/or receivables with collateral held. The amount of collateral moved to/from applicable counterparties is generally based upon minimum transfer amounts of up to $500,000. To the
extent amounts due to Large Cap Core Plus from its counterparties are not fully collateralized, contractually or otherwise, Large Cap Core Plus bears the risk of loss from counterparty non-performance. See Note 1 “Segregation and
Collateralization” for information with respect to collateral practices. In addition, Large Cap Core Plus manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor
their obligations and by monitoring the financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties to OTC
derivatives to terminate derivative contracts prior to maturity in the event Large Cap Core Plus’ net assets decline by a stated percentage or Large Cap Core Plus fails to meet the terms of its ISDA Master Agreements, which would cause Large
Cap Core Plus to accelerate payment of any net liability owed to the counterparty.
Foreign Currency Exchange Contracts:
Large Cap Core Plus
enters into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to foreign currencies (foreign currency exchange rate risk). A foreign currency exchange
contract is an agreement between two parties to buy
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BLACKROCK LARGE CAP SERIES FUNDS, INC.
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MARCH 31, 2013
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61
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Notes to Financial Statements (continued)
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BlackRock Large Cap Series Funds,
Inc.
|
and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by Large
Cap Core Plus, help to manage the overall exposure to the currencies in which some of the investments held by Large Cap Core Plus are denominated. The contract is marked-to-market daily and the change in market value is recorded by Large Cap Core
Plus as an unrealized gain or loss. When the contract is closed, Large Cap Core Plus records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign
currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies and the risk that the counterparty to the contract does not
perform its obligations under the agreement.
Derivative Financial Instruments Categorized by Risk Exposure:
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The Effect of Derivative Financial Instruments in the Statement of
Operations Six
Months Ended March 31, 2013
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Net Realized Gain (Loss) from
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Foreign currency exchange contracts:
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Foreign currency transactions
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$
|
(7
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)
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3. Investment Advisory Agreement and Other Transactions with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc.
(“BlackRock”).
The Corporation, on behalf of Large Cap Core Plus, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC
(the “Manager”), the Fund’s investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. For such services, the Fund pays the Manager a monthly fee based on a percentage of the Fund’s average daily net
assets at the following annual rates:
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Average Daily Net Assets
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Investment
Advisory
Fee
|
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First $1 Billion.
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1.20%
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$1 Billion – $3 Billion
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1.13%
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$3 Billion – $5 Billion
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1.08%
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$5 Billion – $10 Billion
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1.04%
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Greater than $10 Billion
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1.02%
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The Corporation, on behalf of the Feeder Funds, entered into an Administration Agreement with BlackRock Advisors, LLC (the
“Administrator”), an indirect, wholly owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, Large Cap Core, Large Cap Growth and Large Cap
Value pay the Administrator a monthly fee at an annual rate of 0.25% of the average daily value of such Feeder Fund’s net assets. The Feeder Funds do not pay an investment advisory fee or investment management fee. With respect to Large Cap
Core Retirement, Large Cap Growth Retirement and Large Cap Value Retirement, the Administrator does not receive an administration fee.
With respect to Large Cap Core Plus, the Manager voluntarily agreed to waive and/or reimburse fees or expenses,
excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business, in order to limit expenses. The
current expense limitation as a percentage of average daily net assets is as follows: 1.50% for Institutional; 1.80% for Investor A; and 2.50% for Investor C.
For the six months ended March 31, 2013, the Manager waived or reimbursed $36,002, which is included in fees waived and/or reimbursed by Manager in the Statements of Operations.
The Manager also reimbursed Large Cap Core Plus for transfer agent fees which are shown as transfer agent fees reimbursed – class specific in the Statements
of Operations. For the six months ended March 31, 2013, the class specific reimbursements were as follows:
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Institutional
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$
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9,033
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Investor A
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$
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2,654
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Investor C
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$
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5,031
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The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees Large Cap Core Plus
pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Fund’s investment in
other affiliated investment companies, if any. This amount is included in fees waived and/or reimbursed by Manager in the Statements of Operations. For the six months ended March 31, 2013, the Manager waived $166.
With respect to Large Cap Core Plus, the Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of
the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by the Fund to the Manager.
For the six months ended March 31, 2013, Large Cap Core Plus reimbursed the Manager $128 for certain accounting services, which are included in accounting services in the Statements of Operations.
With respect to Large Cap Core, the Administrator contractually agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense,
acquired fund fees and expenses and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business, in order to limit expenses. The expense limitation as a percentage of average
daily net assets is as follows: 1.14% for Investor A and 1.97% for Investor B. The Administrator has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to February 1, 2014, unless approved by the Board, including
a majority of the Independent Directors. These amounts are shown as transfer agent fees reimbursed – class specific on the Statements of Operations. For the six months ended March 31, 2013, these amounts were as follows:
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Investor A
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Investor B
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Large Cap Core
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$
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412,812
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$
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54,773
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62
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|
BLACKROCK LARGE CAP SERIES FUNDS, INC.
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MARCH 31, 2013
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Notes to Financial Statements (continued)
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BlackRock Large Cap Series Funds,
Inc.
|
Effective June 1, 2012, with respect to Large Cap Value, the Administrator agreed to voluntarily waive 0.05%, as
a percentage of daily net assets, of the administration fee payable with respect to Large Cap Value. This voluntary waiver may be reduced or discontinued at any time without notice. For the six months ended March 31, 2013, the Administrator
waived $135,869, which is included in fees waived by the Administrator in the Statements of Operations.
With respect to Large Cap Core Retirement,
Large Cap Growth Retirement and Large Cap Value Retirement, the Administrator has contractually agreed to waive and/or reimburse fees or expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund
expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Feeder Funds’ business, in order to limit expenses. The expense limitation of each of Large Cap Core Retirement, Large Cap Growth Retirement and Large
Cap Value Retirement is 0.67% of the average daily net assets of such Feeder Fund. The Administrator has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to February 1, 2014 unless approved by the Board,
including a majority of the Independent Directors. These amounts are shown as fees reimbursed by administrator in the Statements of Operations.
The
Corporation, on behalf of Large Cap Core, Large Cap Growth, Large Cap Value and Large Cap Core Plus entered into a Distribution Agreement and separate Distribution Plans with BlackRock Investments, LLC (“BRIL”), an affiliate of the
Administrator. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the
average daily net assets of the shares of each Fund as follows:
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Service
Fee
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Distribution
Fee
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Service
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0.25%
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—
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Investor A
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0.25%
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—
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Investor B
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0.25%
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0.75
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%
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Investor C
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0.25%
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0.75
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%
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Class R
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0.25%
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0.25
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%
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Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing and distribution services to each Fund.
The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to Service, Investor A, Investor B, Investor C and Class R shareholders.
For the six months ended March 31, 2013, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Funds’
Investor A Shares as follows:
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Investor A
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Large Cap Core
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$
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19,881
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Large Cap Growth
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$
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28,470
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Large Cap Value
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$
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6,357
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Large Cap Core Plus
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$
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1,301
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|
For the six months ended March 31, 2013, the affiliates received the following CDSCs as follows:
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Investor A
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Investor B
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Investor C
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Large Cap Core
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$
|
323
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|
$
|
7,546
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|
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$
|
8,910
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Large Cap Growth
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$
|
2,151
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|
$
|
4,533
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|
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$
|
8,797
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|
Large Cap Value
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$
|
235
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|
|
$
|
5,501
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|
|
$
|
3,157
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|
Large Cap Core Plus
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$
|
—
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|
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$
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—
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$
|
562
|
|
Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with
sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an asset based fee or annual fee per shareholder account, which will vary
depending on share class and/or net assets. For the six months ended March 31, 2013, the Funds paid the following to affiliates in return for these services, which is included in transfer agent — class specific in the Statements of
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap
Core
|
|
|
Large Cap
Growth
|
|
|
Large Cap
Value
|
|
|
Institutional
|
|
$
|
69,030
|
|
|
$
|
132,803
|
|
|
$
|
37,861
|
|
|
Service
|
|
$
|
74
|
|
|
$
|
147
|
|
|
$
|
458
|
|
|
Investor A
|
|
$
|
661
|
|
|
$
|
763
|
|
|
$
|
8,786
|
|
|
Investor C
|
|
|
—
|
|
|
|
—
|
|
|
$
|
36
|
|
The Manager/Administrator maintains a call center, which is responsible for providing certain shareholder services to the Funds,
such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the six months ended March 31, 2013, the Funds reimbursed the
Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap
Core
|
|
|
Large Cap
Growth
|
|
|
Large Cap
Value
|
|
|
Large Cap
Core
Retirement
|
|
|
Institutional
|
|
$
|
8,502
|
|
|
$
|
908
|
|
|
$
|
2,028
|
|
|
|
—
|
|
|
Service
|
|
$
|
11
|
|
|
$
|
1,075
|
|
|
$
|
2,120
|
|
|
|
—
|
|
|
Investor A
|
|
$
|
50,942
|
|
|
$
|
4,233
|
|
|
$
|
9,440
|
|
|
|
—
|
|
|
Investor B
|
|
$
|
4,497
|
|
|
$
|
217
|
|
|
$
|
805
|
|
|
|
—
|
|
|
Investor C
|
|
$
|
3,522
|
|
|
$
|
1,366
|
|
|
$
|
2,238
|
|
|
|
—
|
|
|
Class R
|
|
$
|
291
|
|
|
$
|
192
|
|
|
$
|
435
|
|
|
|
—
|
|
|
Class K
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap
Growth
Retirement
|
|
|
Large Cap
Value
Retirement
|
|
|
Large Cap
Core
Plus
|
|
|
Institutional
|
|
|
—
|
|
|
|
—
|
|
|
$
|
618
|
|
|
Investor A
|
|
|
—
|
|
|
|
—
|
|
|
$
|
302
|
|
|
Investor C
|
|
|
—
|
|
|
|
—
|
|
|
$
|
159
|
|
|
Class K
|
|
$
|
3
|
|
|
$
|
219
|
|
|
|
—
|
|
Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Funds
reimburse the Manager/Administrator for a portion of the compensation paid to the Corporation’s Chief Compliance Officer.
4. Investments:
With respect to Large Cap Core Plus, purchases and sales of investments, excluding short-term securities, for the six months ended March 31,
2013, were $14,688,204 and $18,246,172, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK LARGE CAP SERIES FUNDS, INC.
|
|
MARCH 31, 2013
|
|
63
|
|
|
|
|
|
|
|
|
|
Notes to Financial Statements
(continued)
|
|
BlackRock Large Cap Series
Funds, Inc.
|
5. Income Tax Information:
As of September 30, 2012, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expires September 30,
|
|
Large Cap
Core
|
|
|
Large Cap
Value
|
|
|
Large Cap
Core
Retirement
|
|
|
2016
|
|
|
—
|
|
|
$
|
39,276,122
|
|
|
$
|
9,577,005
|
|
|
2017
|
|
$
|
541,931,905
|
|
|
|
783,578,280
|
|
|
|
24,488,876
|
|
|
Total
|
|
$
|
541,931,905
|
|
|
$
|
822,854,402
|
|
|
$
|
34,065,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expires September 30,
|
|
Large Cap
Value
Retirement
|
|
|
Large Cap
Core
Plus
|
|
|
2016
|
|
|
—
|
|
|
$
|
473,304
|
|
|
2017
|
|
$
|
6,909,730
|
|
|
|
5,739,252
|
|
|
No expiration date
1
|
|
|
—
|
|
|
|
476,932
|
|
|
Total
|
|
$
|
6,909,730
|
|
|
$
|
6,689,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Must be utilized prior to losses subject to expiration.
|
As of March 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes for BlackRock Large Cap Core Plus were as follows:
|
|
|
|
|
|
|
Tax cost
|
|
$
|
39,267,354
|
|
|
Gross unrealized appreciation
|
|
$
|
8,769,245
|
|
|
Gross unrealized depreciation
|
|
|
(222,867
|
)
|
|
Net unrealized appreciation
|
|
$
|
8,546,378
|
|
6. Borrowings:
The
Corporation, on behalf of Large Cap Core Plus, along with certain other funds managed by the Manager and its affiliates, is a party to a $500 million credit agreement with a group of lenders. Large Cap Core Plus may borrow under the credit agreement
to fund shareholder redemptions. Effective November 2011 to November 2012, the credit agreement had the following terms: a commitment fee of 0.065% per annum based on the Large Cap Core Plus’ pro rata share of the unused portion of the
credit agreement and interest at a rate equal to the higher of (a) the one-month London Interbank Offered Rate (“LIBOR”) plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In
addition, the Large Cap Core Plus paid administration and arrangement fees which were allocated to Large Cap Core Plus based on its net assets as of October 31, 2011. The credit agreement, which expired in November 2012, was renewed with the
same terms until November 2013. Effective November 2012 to November
2013, the credit agreement has the following terms: a commitment fee of 0.065% per annum based on the Large Cap
Core Plus’ pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts
borrowed. In addition, Large Cap Core Plus paid administration and arrangement fees which were allocated to Large Cap Core Plus based on its net assets as of October 31, 2012. Large Cap Core Plus did not borrow under the credit agreement during
the six months ended March 31, 2013.
7. Concentration, Market and Credit Risk:
In the normal course of business, Large Cap Core Plus invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to
meet all its obligations (issuer credit risk). The value of securities held by Large Cap Core Plus may decline in response to certain events, including those directly involving the issuers whose securities are owned by Large Cap Core Plus;
conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, Large Cap Core Plus may be
exposed to counterparty credit risk, or the risk that an entity with which Large Cap Core Plus has unsettled or open transactions may fail to or be unable to perform on its commitments. Large Cap Core Plus manages counterparty credit risk by
entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose Large Cap Core
Plus to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of Large Cap Core Plus’ exposure to market, issuer and counterparty credit risks with respect
to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by Large Cap Core Plus.
As of March 31, 2013, the Large Cap Core Plus invested a significant portion of its assets in securities in the Information Technology and Financials sectors. Changes in economic conditions affecting the
Information Technology and Financials sectors would have a greater impact on Large Cap Core Plus and could affect the value, income and/or liquidity of positions in such securities.
8. Capital Share Transactions:
Transactions in capital shares for each class were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2013
|
|
|
|
|
Year Ended
September 30, 2012
|
|
|
Large Cap Core
|
|
Shares
|
|
|
Amount
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Institutional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
2,251,660
|
|
|
$
|
28,706,992
|
|
|
|
|
|
8,138,344
|
|
|
$
|
92,670,541
|
|
|
Shares issued in reinvestment of distributions.
|
|
|
339,465
|
|
|
|
4,209,368
|
|
|
|
|
|
273,969
|
|
|
|
2,956,372
|
|
|
Shares redeemed
|
|
|
(4,050,364
|
)
|
|
|
(51,817,609
|
)
|
|
|
|
|
(17,613,124
|
)
|
|
|
(206,593,570
|
)
|
|
Net decrease
|
|
|
(1,459,239
|
)
|
|
$
|
(18,901,249
|
)
|
|
|
|
|
(9,200,811
|
)
|
|
$
|
(110,966,657
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
|
BLACKROCK LARGE CAP SERIES FUNDS, INC.
|
|
MARCH 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Financial Statements
(continued)
|
|
BlackRock Large Cap Series Funds,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2013
|
|
|
|
|
Year Ended
September 30, 2012
|
|
|
Large Cap Core (concluded)
|
|
Shares
|
|
|
Amount
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
124,740
|
|
|
$
|
1,392,412
|
|
|
Shares issued in reinvestment of distributions
|
|
|
9
|
|
|
$
|
110
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed
|
|
|
(113,129
|
)
|
|
|
(1,405,000
|
)
|
|
|
|
|
(25,483
|
)
|
|
|
(291,347
|
)
|
|
Net increase (decrease)
|
|
|
(113,120
|
)
|
|
$
|
(1,404,890
|
)
|
|
|
|
|
99,257
|
|
|
$
|
1,101,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold and automatic conversion of shares
|
|
|
2,709,338
|
|
|
$
|
34,070,584
|
|
|
|
|
|
6,804,905
|
|
|
$
|
78,385,318
|
|
|
Shares issued in reinvestment of distributions
|
|
|
503,391
|
|
|
|
6,111,167
|
|
|
|
|
|
242,472
|
|
|
|
2,516,863
|
|
|
Shares redeemed
|
|
|
(6,983,436
|
)
|
|
|
(87,535,710
|
)
|
|
|
|
|
(16,710,655
|
)
|
|
|
(191,010,119
|
)
|
|
Net decrease
|
|
|
(3,770,707
|
)
|
|
$
|
(47,353,959
|
)
|
|
|
|
|
(9,663,278
|
)
|
|
$
|
(110,107,938
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
53,505
|
|
|
$
|
624,355
|
|
|
|
|
|
140,692
|
|
|
$
|
1,493,635
|
|
|
Shares issued in reinvestment of distributions
|
|
|
3,598
|
|
|
|
40,943
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed and automatic conversion of shares
|
|
|
(758,413
|
)
|
|
|
(8,885,316
|
)
|
|
|
|
|
(2,547,503
|
)
|
|
|
(27,235,842
|
)
|
|
Net decrease
|
|
|
(701,310
|
)
|
|
$
|
(8,220,018
|
)
|
|
|
|
|
(2,406,811
|
)
|
|
$
|
(25,742,207
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
1,841,686
|
|
|
$
|
21,309,418
|
|
|
|
|
|
3,344,828
|
|
|
$
|
35,082,126
|
|
|
Shares issued in reinvestment of distributions
|
|
|
34,820
|
|
|
|
390,679
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed
|
|
|
(4,443,517
|
)
|
|
|
(51,348,822
|
)
|
|
|
|
|
(15,649,040
|
)
|
|
|
(162,374,990
|
)
|
|
Net decrease
|
|
|
(2,567,011
|
)
|
|
$
|
(29,648,725
|
)
|
|
|
|
|
(12,304,212
|
)
|
|
$
|
(127,292,864
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
480,860
|
|
|
$
|
5,798,848
|
|
|
|
|
|
1,235,236
|
|
|
$
|
13,503,539
|
|
|
Shares issued in reinvestment of distributions
|
|
|
13,141
|
|
|
|
153,359
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed
|
|
|
(1,096,908
|
)
|
|
|
(13,201,635
|
)
|
|
|
|
|
(2,508,361
|
)
|
|
|
(27,360,638
|
)
|
|
Net decrease
|
|
|
(602,907
|
)
|
|
$
|
(7,249,428
|
)
|
|
|
|
|
(1,273,125
|
)
|
|
$
|
(13,857,099
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Decrease
|
|
|
(9,214,294
|
)
|
|
$
|
(112,778,269
|
)
|
|
|
|
|
(34,748,980
|
)
|
|
$
|
(386,865,700
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
6,001,540
|
|
|
$
|
70,320,550
|
|
|
|
|
|
9,400,619
|
|
|
$
|
104,647,834
|
|
|
Shares issued in reinvestment of dividends
|
|
|
1,437,134
|
|
|
|
16,153,387
|
|
|
|
|
|
131,077
|
|
|
|
1,335,674
|
|
|
Shares redeemed
|
|
|
(2,656,529
|
)
|
|
|
(31,549,722
|
)
|
|
|
|
|
(19,512,594
|
)
|
|
|
(241,857,313
|
)
|
|
Net increase (decrease)
|
|
|
4,782,145
|
|
|
$
|
54,924,215
|
|
|
|
|
|
(9,980,898
|
)
|
|
$
|
(135,873,805
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
36,263
|
|
|
$
|
428,039
|
|
|
|
|
|
166,361
|
|
|
$
|
1,903,338
|
|
|
Shares issued in reinvestment of dividends
|
|
|
73,804
|
|
|
|
822,914
|
|
|
|
|
|
647
|
|
|
|
6,547
|
|
|
Shares redeemed
|
|
|
(128,963
|
)
|
|
|
(1,514,339
|
)
|
|
|
|
|
(340,751
|
)
|
|
|
(3,967,868
|
)
|
|
Net decrease
|
|
|
(18,896
|
)
|
|
$
|
(263,386
|
)
|
|
|
|
|
(173,743
|
)
|
|
$
|
(2,057,983
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold and automatic conversion of shares
|
|
|
5,884,212
|
|
|
$
|
65,980,190
|
|
|
|
|
|
7,483,172
|
|
|
$
|
84,093,980
|
|
|
Shares issued in reinvestment of dividends
|
|
|
474,969
|
|
|
|
5,153,415
|
|
|
|
|
|
57,008
|
|
|
|
563,246
|
|
|
Shares redeemed
|
|
|
(4,114,378
|
)
|
|
|
(47,067,126
|
)
|
|
|
|
|
(8,388,045
|
)
|
|
|
(93,609,288
|
)
|
|
Net increase (decrease)
|
|
|
2,244,803
|
|
|
$
|
24,066,479
|
|
|
|
|
|
(847,865
|
)
|
|
$
|
(8,952,062
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK LARGE CAP SERIES FUNDS, INC.
|
|
MARCH 31, 2013
|
|
65
|
|
|
|
|
|
|
|
|
|
Notes to Financial Statements
(continued)
|
|
BlackRock Large Cap Series Funds,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2013
|
|
|
|
|
Year Ended
September 30, 2012
|
|
|
Large Cap Growth (concluded)
|
|
Shares
|
|
|
Amount
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Investor B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
57,703
|
|
|
$
|
578,414
|
|
|
|
|
|
82,116
|
|
|
$
|
829,374
|
|
|
Shares issued in reinvestment of distributions
|
|
|
11,867
|
|
|
|
116,887
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed and automatic conversion of shares
|
|
|
(203,569
|
)
|
|
|
(2,109,864
|
)
|
|
|
|
|
(594,894
|
)
|
|
|
(6,012,451
|
)
|
|
Net decrease
|
|
|
(133,999
|
)
|
|
$
|
(1,414,563
|
)
|
|
|
|
|
(512,778
|
)
|
|
$
|
(5,183,077
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
2,360,353
|
|
|
$
|
23,858,202
|
|
|
|
|
|
3,920,550
|
|
|
$
|
39,322,961
|
|
|
Shares issued in reinvestment of distributions
|
|
|
165,844
|
|
|
|
1,628,585
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed
|
|
|
(2,260,069
|
)
|
|
|
(23,403,344
|
)
|
|
|
|
|
(3,928,882
|
)
|
|
|
(39,899,588
|
)
|
|
Net increase (decrease)
|
|
|
266,128
|
|
|
$
|
2,083,443
|
|
|
|
|
|
(8,332
|
)
|
|
$
|
(576,627
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
487,393
|
|
|
$
|
5,255,149
|
|
|
|
|
|
867,102
|
|
|
$
|
9,247,451
|
|
|
Shares issued in reinvestment of distributions
|
|
|
32,363
|
|
|
|
336,248
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed
|
|
|
(729,887
|
)
|
|
|
(8,048,593
|
)
|
|
|
|
|
(1,742,893
|
)
|
|
|
(18,591,354
|
)
|
|
Net decrease
|
|
|
(210,131
|
)
|
|
$
|
(2,457,196
|
)
|
|
|
|
|
(875,791
|
)
|
|
$
|
(9,343,903
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Increase (Decrease)
|
|
|
6,930,050
|
|
|
$
|
76,938,992
|
|
|
|
|
|
(12,399,407
|
)
|
|
$
|
(161,987,457
|
)
|
|
|
|
|
|
|
|
|
Large Cap Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
885,656
|
|
|
$
|
14,461,434
|
|
|
|
|
|
3,729,269
|
|
|
$
|
55,426,056
|
|
|
Shares issued in reinvestment of dividends
|
|
|
174,010
|
|
|
|
2,745,880
|
|
|
|
|
|
233,302
|
|
|
|
3,198,578
|
|
|
Shares redeemed
|
|
|
(5,338,069
|
)
|
|
|
(87,897,614
|
)
|
|
|
|
|
(16,590,308
|
)
|
|
|
(249,495,507
|
)
|
|
Net decrease
|
|
|
(4,278,403
|
)
|
|
$
|
(70,690,300
|
)
|
|
|
|
|
(12,627,737
|
)
|
|
$
|
(190,870,873
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
21,656
|
|
|
$
|
349,930
|
|
|
|
|
|
62,275
|
|
|
$
|
886,931
|
|
|
Shares issued in reinvestment of dividends
|
|
|
33,961
|
|
|
|
534,550
|
|
|
|
|
|
20,001
|
|
|
|
273,611
|
|
|
Shares redeemed
|
|
|
(160,509
|
)
|
|
|
(2,602,527
|
)
|
|
|
|
|
(575,217
|
)
|
|
|
(8,540,400
|
)
|
|
Net decrease
|
|
|
(104,892
|
)
|
|
$
|
(1,718,047
|
)
|
|
|
|
|
(492,941
|
)
|
|
$
|
(7,379,858
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold and automatic conversion of shares
|
|
|
2,088,332
|
|
|
$
|
34,108,158
|
|
|
|
|
|
4,286,663
|
|
|
$
|
62,540,744
|
|
|
Shares issued in reinvestment of dividends
|
|
|
276,521
|
|
|
|
4,297,148
|
|
|
|
|
|
231,251
|
|
|
|
3,124,215
|
|
|
Shares redeemed
|
|
|
(5,540,027
|
)
|
|
|
(89,037,710
|
)
|
|
|
|
|
(17,451,096
|
)
|
|
|
(254,087,923
|
)
|
|
Net decrease
|
|
|
(3,175,174
|
)
|
|
$
|
(50,632,404
|
)
|
|
|
|
|
(12,933,182
|
)
|
|
$
|
(188,422,964
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
31,373
|
|
|
$
|
475,398
|
|
|
|
|
|
76,146
|
|
|
$
|
1,045,404
|
|
|
Shares issued in reinvestment of distributions
|
|
|
2,704
|
|
|
|
39,856
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed and automatic conversion of shares
|
|
|
(322,556
|
)
|
|
|
(4,905,281
|
)
|
|
|
|
|
(896,691
|
)
|
|
|
(12,483,717
|
)
|
|
Net decrease
|
|
|
(288,479
|
)
|
|
$
|
(4,390,027
|
)
|
|
|
|
|
(820,545
|
)
|
|
$
|
(11,438,313
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
856,264
|
|
|
$
|
12,871,824
|
|
|
|
|
|
1,762,996
|
|
|
$
|
24,136,262
|
|
|
Shares issued in reinvestment of distributions
|
|
|
29,514
|
|
|
|
430,908
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed
|
|
|
(2,671,941
|
)
|
|
|
(40,177,484
|
)
|
|
|
|
|
(6,006,353
|
)
|
|
|
(82,289,406
|
)
|
|
Net decrease
|
|
|
(1,786,163
|
)
|
|
$
|
(26,874,752
|
)
|
|
|
|
|
(4,243,357
|
)
|
|
$
|
(58,153,144
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
|
BLACKROCK LARGE CAP SERIES FUNDS, INC.
|
|
MARCH 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Financial Statements
(continued)
|
|
BlackRock Large Cap Series Funds,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2013
|
|
|
|
|
Year Ended
September 30, 2012
|
|
|
Large Cap Value (concluded)
|
|
Shares
|
|
|
Amount
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Class R
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
498,591
|
|
|
$
|
7,848,683
|
|
|
|
|
|
1,089,126
|
|
|
$
|
15,322,685
|
|
|
Shares issued in reinvestment of dividends
|
|
|
15,435
|
|
|
|
231,836
|
|
|
|
|
|
20,429
|
|
|
|
266,800
|
|
|
Shares redeemed
|
|
|
(1,194,628
|
)
|
|
|
(18,490,773
|
)
|
|
|
|
|
(2,696,522
|
)
|
|
|
(38,133,896
|
)
|
|
Net decrease
|
|
|
(680,602
|
)
|
|
$
|
(10,410,254
|
)
|
|
|
|
|
(1,586,967
|
)
|
|
$
|
(22,544,411
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Decrease
|
|
|
(10,313,713
|
)
|
|
$
|
(164,715,784
|
)
|
|
|
|
|
(32,704,729
|
)
|
|
$
|
(478,809,563
|
)
|
|
|
|
|
|
|
|
|
Large Cap Core Retirement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class K
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
591,908
|
|
|
$
|
7,499,076
|
|
|
|
|
|
8,082,849
|
|
|
$
|
90,932,022
|
|
|
Shares issued in reinvestment of distributions
|
|
|
112,565
|
|
|
|
1,377,803
|
|
|
|
|
|
146,850
|
|
|
|
1,539,158
|
|
|
Shares redeemed
|
|
|
(2,262,457
|
)
|
|
|
(28,626,231
|
)
|
|
|
|
|
(14,978,366
|
)
|
|
|
(179,156,312
|
)
|
|
Net decrease
|
|
|
(1,557,984
|
)
|
|
$
|
(19,749,352
|
)
|
|
|
|
|
(6,748,667
|
)
|
|
$
|
(86,685,132
|
)
|
|
|
|
|
|
|
|
|
Large Cap Growth Retirement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class K
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
17,375
|
|
|
$
|
114,152
|
|
|
|
|
|
2,138,394
|
|
|
$
|
24,055,829
|
|
|
Shares issued in reinvestment of distributions
|
|
|
1,729
|
|
|
|
11,365
|
|
|
|
|
|
88,991
|
|
|
|
899,819
|
|
|
Shares redeemed
|
|
|
(14,255
|
)
|
|
|
(111,157
|
)
|
|
|
|
|
(12,559,957
|
)
|
|
|
(151,950,634
|
)
|
|
Net increase (decrease)
|
|
|
4,849
|
|
|
$
|
14,360
|
|
|
|
|
|
(10,332,572
|
)
|
|
$
|
(126,994,986
|
)
|
|
|
|
|
|
|
|
|
Large Cap Value Retirement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class K
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
684,794
|
|
|
$
|
11,279,877
|
|
|
|
|
|
1,811,314
|
|
|
$
|
27,122,890
|
|
|
Shares issued in reinvestment of distributions
|
|
|
138,136
|
|
|
|
2,207,412
|
|
|
|
|
|
163,003
|
|
|
|
2,254,488
|
|
|
Shares redeemed
|
|
|
(567,601
|
)
|
|
|
(9,295,199
|
)
|
|
|
|
|
(6,698,808
|
)
|
|
|
(105,511,160
|
)
|
|
Net increase (decrease)
|
|
|
255,329
|
|
|
$
|
4,192,090
|
|
|
|
|
|
(4,724,491
|
)
|
|
$
|
(76,133,782
|
)
|
|
|
|
|
|
|
|
|
Large Cap Core Plus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
184,192
|
|
|
$
|
2,008,319
|
|
|
|
|
|
1,678,905
|
|
|
$
|
15,932,506
|
|
|
Shares issued in reinvestment of distributions
|
|
|
170
|
|
|
|
1,803
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Shares redeemed
|
|
|
(307,957
|
)
|
|
|
(3,330,229
|
)
|
|
|
|
|
(2,596,959
|
)
|
|
|
(25,985,705
|
)
|
|
Net decrease
|
|
|
(123,595
|
)
|
|
$
|
(1,320,107
|
)
|
|
|
|
|
(918,054
|
)
|
|
$
|
(10,053,199
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
104,514
|
|
|
$
|
1,149,687
|
|
|
|
|
|
990,111
|
|
|
$
|
9,222,606
|
|
|
Shares redeemed
|
|
|
(150,591
|
)
|
|
|
(1,610,606
|
)
|
|
|
|
|
(803,051
|
)
|
|
|
(7,675,280
|
)
|
|
Net increase (decrease)
|
|
|
(46,077
|
)
|
|
$
|
(460,919
|
)
|
|
|
|
|
187,060
|
|
|
$
|
1,547,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
41,234
|
|
|
$
|
430,283
|
|
|
|
|
|
174,291
|
|
|
$
|
1,627,175
|
|
|
Shares redeemed
|
|
|
(55,386
|
)
|
|
|
(577,011
|
)
|
|
|
|
|
(363,011
|
)
|
|
|
(3,412,248
|
)
|
|
Net decrease
|
|
|
(14,152
|
)
|
|
$
|
(146,728
|
)
|
|
|
|
|
(188,720
|
)
|
|
$
|
(1,785,073
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Decrease
|
|
|
(183,824
|
)
|
|
$
|
(1,927,754
|
)
|
|
|
|
|
(919,714
|
)
|
|
$
|
(10,290,946
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK LARGE CAP SERIES FUNDS, INC.
|
|
MARCH 31, 2013
|
|
67
|
|
|
|
|
|
|
|
|
|
Notes to Financial Statements
(concluded)
|
|
BlackRock Large Cap Series Funds,
Inc.
|
9. Subsequent Events:
Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following item was noted:
Effective April 25, 2013, the credit agreement was terminated and a new agreement was entered into. Large Cap Core Plus became a party to a
364-day, $800 million credit agreement, which expires in April 2014. Excluding commitments designated for a certain individual fund, Large Cap Core Plus can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and
other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.065% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per
annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed.