Segment and Geographic Information

12 Months Ended

Dec. 31, 2015

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 and SNL, 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.

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

(in millions)	Revenue									Operating Profit (Loss)
	2015			2014			2013			2015			2014			2013
S&P Ratings	$	2,428		$	2,455		$	2,274		$	1,078		$	(583	)	$	882
S&P Capital IQ and SNL	1,405			1,237			1,170			228			228			189
S&P DJ Indices	597			552			493			392			347			266
C&C	971			893			841			357			290			280
Intersegment elimination 1	(88		)	(86		)	(76		)	—			—			—
Total operating segments	5,313			5,051			4,702			2,055			282			1,617
Unallocated expense 2	—			—			—			(138		)	(169		)	(259		)
Total	$	5,313		$	5,051		$	4,702		$	1,917		$	113		$	1,358

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

²  The year ended December 31, 2015 includes a gain of $11 million related to the sale of our interest in a legacy McGraw Hill Construction investment and costs related to identified operating efficiencies primarily related to restructuring of $10 million. 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.

(in millions)	Depreciation & Amortization						Capital Expenditures
	2015		2014		2013		2015		2014		2013
S&P Ratings	$	43	$	43	$	45	$	48	$	33	$	40
S&P Capital IQ and SNL	70		50		49		60		38		39
S&P DJ Indices	8		7		10		4		2		4
C&C	29		24		22		18		11		17
Total operating segments	150		124		126		130		84		100
Corporate	7		10		11		9		8		17
Total	$	157	$	134	$	137	$	139	$	92	$	117

Segment information as of December 31 is as follows:

(in millions)	Total Assets
	2015		2014
S&P Ratings	$	620	$	624
S&P Capital IQ and SNL	3,405		1,011
S&P DJ Indices	1,181		1,166
C&C	606		918
Total operating segments	5,812		3,719
Corporate 1	1,868		3,054
Assets of a business held for sale 2	503		—
Total	$	8,183	$	6,773

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

²  Includes J.D. Power as of December 31, 2015.

We have operations with foreign revenue and long-lived assets in approximately 90 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,
	2015		2014		2013		2015		2014
U.S.	$	3,202	$	2,911	$	2,723	$	4,198	$	2,117
European region	1,265		1,316		1,226		419		430
Asia	566		528		483		63		54
Rest of the world	280		296		270		50		64
Total	$	5,313	$	5,051	$	4,702	$	4,730	$	2,665

	Revenue						Long-lived Assets
	Years ended December 31,						December 31,
	2015		2014		2013		2015		2014
U.S.	60	%	58	%	58	%	89	%	80	%
European region	24		26		26		9		16
Asia	11		10		10		1		2
Rest of the world	5		6		6		1		2
Total	100	%	100	%	100	%	100	%	100	%

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