Segment and Geographic Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

As discussed in Note 1 – Accounting Policies, 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. We use the same accounting policies for our segments as those described in Note 1 – Accounting Policies.

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, to the extent they can be attributed to our continuing operations, all shared operating services have been 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 and shared operating costs allocable to discontinued operations reclassified during the current year. The updated methodology is reflected in the segment results for the year ended December 31, 2014 and accordingly, the segment results for the prior-year comparative periods have been reclassified to conform with the new presentation.

Segment information for the years ended December 31 is as follows:

(in millions)	Revenue									Operating (Loss) Profit
	2014			2013			2012			2014			2013			2012
S&P Ratings	$	2,455		$	2,274		$	2,034		$	(583	)	$	882		$	809
S&P Capital IQ	1,237			1,170			1,124			228			189			183
S&P DJ Indices	552			493			388			347			266			202
C&C 1	893			841			793			290			280			219
Intersegment elimination 2	(86		)	(76		)	(69		)	—			—			—
Total operating segments	5,051			4,702			4,270			282			1,617			1,413
Unallocated expense 3	—			—			—			(169		)	(259		)	(243		)
Total	$	5,051		$	4,702		$	4,270		$	113		$	1,358		$	1,170

¹  McGraw Hill Construction has historically been part of the C&C segment. In accordance with the presentation of McGraw Hill Construction as a discontinued operation, the results of operations, inclusive of corporate overhead allocations, for all periods presented have been reclassified out of C&C's results to reflect this change. See Note 2 —Acquisitions and Divestitures for further discussion.

²  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.

³  The year ended December 31, 2014 includes restructuring charges of $16 million. The year ended December 31, 2013 includes costs necessary to enable the separation of MHE and reduce our cost structure of $64 million, a $36 million non-cash impairment charge related to the sale of a data center and $13 million related to terminating various leases as we reduce our real estate portfolio. The year ended December 31, 2012 includes costs necessary to enable the separation of MHE and reduce our cost structure of $156 million and $52 million related to a vacation accrual reversal.

(in millions)	Depreciation & Amortization						Capital Expenditures
	2014		2013		2012		2014		2013		2012
S&P Ratings	$	43	$	45	$	43	$	33	$	40	$	43
S&P Capital IQ	50		49		50		38		39		22
S&P DJ Indices	7		10		8		2		4		2
C&C	24		22		23		11		17		16
Total operating segments	124		126		124		84		100		83
Corporate	10		11		17		8		17		13
Total	$	134	$	137	$	141	$	92	$	117	$	96

Segment information as of December 31 is as follows:

(in millions)	Total Assets
	2014		2013
S&P Ratings	$	624	$	630
S&P Capital IQ	1,011		1,054
S&P DJ Indices	1,166		1,160
C&C	918		907
Total operating segments	3,719		3,751
Corporate 1	3,052		2,213
Assets held for sale 2	—		97
Total	$	6,771	$	6,061

¹  Corporate assets consist principally of cash and equivalents, assets for pension benefits, deferred income taxes and leasehold improvements related to subleased areas.

²  Includes McGraw Hill Construction and one of our data centers as of December 31, 2013.

We have operations with foreign revenue and long-lived assets in approximately 80 countries. We do not have operations in any foreign country that represent more than 8% of our consolidated revenue. Transfers between geographic areas are recorded at agreed upon prices and intercompany revenue and profit are eliminated. No single customer accounted for more than 10% of our consolidated revenue.

The following provides revenue and long-lived assets by geographic region:

(in millions)	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2014		2013		2012		2014		2013
United States	$	2,911	$	2,723	$	2,508	$	2,117	$	2,206
European region	1,316		1,226		1,067		430		432
Asia	528		483		453		54		59
Rest of the world	296		270		242		64		54
Total	$	5,051	$	4,702	$	4,270	$	2,665	$	2,751

	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2014		2013		2012		2014		2013
United States	58	%	58	%	59	%	80	%	80	%
European region	26		26		25		16		16
Asia	10		10		11		2		2
Rest of the world	6		6		5		2		2
Total	100	%	100	%	100	%	100	%	100	%

See Note 2 – Acquisitions andDivestitures and Note 10 – Restructuring, for actions that impacted the segment operating results.