Segment and Related Information

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2014 and accordingly, the segment results for the prior-year comparative periods have been reclassified to conform with the new presentation.

A summary of operating results by segment for the periods ended June 30 is as follows:

Three Months	2014						2013
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings	$	664		$	308		$	599		$	268
S&P Capital IQ	307			54			287			49
S&P DJ Indices	133			82			123			77
C&C	263			83			259			83
Intersegment elimination 1	(21		)	—			(18		)	—
Total operating segments	1,346			527			1,250			477
Unallocated expense 2	—			(41		)	—			(41		)
Total	$	1,346		$	486		$	1,250		$	436

Six Months	2014						2013
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings	$	1,233		$	548		$	1,161		$	517
S&P Capital IQ	608			107			575			99
S&P DJ Indices	269			174			238			141
C&C	514			159			496			143
Intersegment elimination 1	(43		)	—			(39		)	—
Total operating segments	2,581			988			2,431			900
Unallocated expense 2	—			(72		)	—			(186		)
Total	$	2,581		$	916		$	2,431		$	714

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 and six months ended June 30, 2013 include costs necessary to enable the separation of MHE and reduce our cost structure of $10 million and $54 million, respectively. The six months ended June 30, 2013 also includes pre-tax legal settlements of approximately $77 million.

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