Segment and Related Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

We have four reportable segments: S&P Ratings, S&P Capital IQ, S&P DJ Indices and C&C. Our Chief Executive Officer is our chief operating decision-maker and evaluates performance of our segments and allocates resources based primarily on operating profit. Segment operating profit does not include unallocated expense or interest expense as these are costs that do not affect the operating results of our segments.

As part of our transformation to McGraw Hill Financial, a comprehensive review of our accounting and reporting practices and policies was undertaken. As a result, beginning on January 1, 2014, all shared operating services have been fully allocated to the segments utilizing a methodology that more closely aligns with each segment's usage of these services. The costs that remain in unallocated expense primarily relate to corporate center functions. The updated methodology is reflected in the segment results for the three months ended March 31, 2014 and accordingly, the segment results for the prior-year comparative period have been reclassified to conform with the new presentation.

A summary of operating results by segment for the three months ended March 31 is as follows:

	2014						2013
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings	$	569		$	240		$	561		$	249
S&P Capital IQ	301			53			288			50
S&P DJ Indices	137			91			115			64
C&C	251			76			236			60
Intersegment elimination 1	(22		)	—			(19		)	—
Total operating segments	1,236			460			1,181			423
Unallocated expense 2	—			(30		)	—			(145		)
Total	$	1,236		$	430		$	1,181		$	278

¹  Revenue for S&P Ratings and expenses for S&P Capital IQ include an intersegment royalty charged to S&P Capital IQ for the rights to use and distribute content and data developed by S&P Ratings.

²  The three months ended March 31, 2013, includes $44 million in costs necessary to enable the separation of MHE and reduce our cost structure and approximately $77 million for pre-tax legal settlements.

See Note 2 —Acquisitions and Divestitures and Note 9 —Restructuring for additional actions that impacted the segment operating results.