Condensed Consolidating Financial Statements

On May 26, 2015, we issued $700 million of 4.0% senior notes due in 2025. On August 18, 2015, we issued $2.0 billion of senior notes, consisting of $400 million of 2.5% senior notes due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026.

The senior notes described above are fully and unconditionally guaranteed by Standard & Poor's Financial Services LLC, a 100% owned subsidiary of the Company. The following condensed consolidating financial statements present the results of operations, financial position and cash flows of S&P Global Inc., Standard & Poor's Financial Services LLC, and the Non-Guarantor Subsidiaries of S&P Global Inc. and Standard & Poor's Financial Services LLC, and the eliminations necessary to arrive at the information for the Company on a consolidated basis.



	Statement of Income
	Three Months Ended June 30, 2016
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	171		$	413		$	930		$	(32	)	$	1,482
Expenses:
Operating-related expenses	26			93			382			(32		)	469
Selling and general expenses	33			62			222			—			317
Depreciation	10			2			10			—			22
Amortization of intangibles	—			—			23			—			23
Total expenses	69			157			637			(32		)	831
Operating profit	102			256			293			—			651
Interest expense (income), net	44			—			(2		)	—			42
Non-operating intercompany transactions	95			(37		)	(199		)	141			—
Income before taxes on income	(37		)	293			494			(141		)	609
Provision for taxes on income	(17		)	111			103			—			197
Equity in net income of subsidiaries	617			72			—			(689		)	—
Net income	$	597		$	254		$	391		$	(830	)	$	412
Less: net income attributable to noncontrolling interests	—			—			—			(29		)	(29		)
Net income attributable to S&P Global Inc.	$	597		$	254		$	391		$	(859	)	$	383
Comprehensive income	$	545		$	261		$	409		$	(850	)	$	365



	Statement of Income
	Six Months Ended June 30, 2016
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	342		$	754		$	1,789		$	(62	)	$	2,823
Expenses:
Operating-related expenses	52			231			705			(62		)	926
Selling and general expenses	51			97			499			—			647
Depreciation	19			5			16			—			40
Amortization of intangibles	—			—			47			—			47
Total expenses	122			333			1,267			(62		)	1,660
Operating profit	220			421			522			—			1,163
Interest expense (income), net	86			—			(3		)	—			83
Non-operating intercompany transactions	169			(42		)	(697		)	570			—
Income before taxes on income	(35		)	463			1,222			(570		)	1,080
Provision for taxes on income	(18		)	167			196			—			345
Equity in net income of subsidiaries	1,408			144			—			(1,552		)	—
Net income	$	1,391		$	440		$	1,026		$	(2,122	)	$	735
Less: net income attributable to noncontrolling interests	—			—			—			(58		)	(58		)
Net income attributable to S&P Global Inc.	$	1,391		$	440		$	1,026		$	(2,180	)	$	677
Comprehensive income	$	1,347		$	446		$	1,055		$	(2,140	)	$	708



	Statement of Income
	Three Months Ended June 30, 2015
	(Unaudited)
(in millions)	S&P Global Inc.		Standard & Poor's Financial Services LLC		Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	161	$	573	$	636		$	(28	)	$	1,342
Expenses:
Operating-related expenses	21		154		265			(28		)	412
Selling and general expenses	1		101		224			—			326
Depreciation	10		5		7			—			22
Amortization of intangibles	1		—		10			—			11
Total expenses	33		260		506			(28		)	771
Other income	—		—		(11		)	—			(11		)
Operating profit	128		313		141			—			582
Interest expense (income), net	20		—		(4		)	—			16
Non-operating intercompany transactions	71		59		(130		)	—			—
Income before taxes on income	37		254		275			—			566
Provision for taxes on income	11		99		75			—			185
Equity in net income of subsidiaries	338		68		—			(406		)	—
Net income	$	364	$	223	$	200		$	(406	)	$	381
Less: net income attributable to noncontrolling interests	—		—		—			(28		)	(28		)
Net income attributable to S&P Global Inc.	$	364	$	223	$	200		$	(434	)	$	353
Comprehensive income	$	384	$	222	$	262		$	(405	)	$	463



	Statement of Income
	Six Months Ended June 30, 2015
	(Unaudited)
(in millions)	S&P Global Inc.		Standard & Poor's Financial Services LLC		Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	317	$	1,117	$	1,237		$	(56	)	$	2,615
Expenses:
Operating-related expenses	53		311		515			(56		)	823
Selling and general expenses	67		162		425			—			654
Depreciation	19		10		14			—			43
Amortization of intangibles	2		—		21			—			23
Total expenses	141		483		975			(56		)	1,543
Other income	—		—		(11		)	—			(11		)
Operating profit	176		634		273			—			1,083
Interest expense (income), net	37		—		(5		)	—			32
Non-operating intercompany transactions	129		91		(220		)	—			—
Income before taxes on income	10		543		498			—			1,051
Provision for taxes on income	17		190		133			—			340
Equity in net income of subsidiaries	703		134		—			(837		)	—
Net income	$	696	$	487	$	365		$	(837	)	$	711
Less: net income attributable to noncontrolling interests	—		—		—			(55		)	(55		)
Net income attributable to S&P Global Inc.	$	696	$	487	$	365		$	(892	)	$	656
Comprehensive income	$	710	$	486	$	357		$	(839	)	$	714



	Balance Sheet
	June 30, 2016
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	62		$	—		$	1,505		$	—		$	1,567
Accounts receivable, net of allowance for doubtful accounts	117			170			720			—			1,007
Intercompany receivable	41			1,798			1,160			(2,999		)	—
Deferred income taxes	75			10			26			(1		)	110
Prepaid and other current assets	107			—			94			—			201
Assets of businesses held for sale	22			—			552			—			574
Total current assets	424			1,978			4,057			(3,000		)	3,459
Property and equipment, net of accumulated depreciation	123			1			118			—			242
Goodwill	17			—			2,874			(9		)	2,882
Other intangible assets, net	—			—			1,483			—			1,483
Investments in subsidiaries	5,376			662			7,265			(13,303		)	—
Intercompany loans receivable	17			374			1,834			(2,225		)	—
Other non-current assets	71			21			133						225
Total assets	$	6,028		$	3,036		$	17,764		$	(18,537	)	$	8,291
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	70		$	23		$	85		$	—		$	178
Intercompany payable	2,569			282			148			(2,999		)	—
Accrued compensation and contributions to retirement plans	100			23			142			—			265
Short-term debt	309			—			—			—			309
Unearned revenue	272			205			983			—			1,460
Other current liabilities	150			(62		)	338						426
Liabilities of businesses held for sale	83			—			124			—			207
Total current liabilities	3,553			471			1,820			(2,999		)	2,845
Long-term debt	3,470			—			—			—			3,470
Intercompany loans payable	10			—			2,215			(2,225		)	—
Pension and postretirement benefits	209			—			51			—			260
Other non-current liabilities	(12		)	84			300			(1		)	371
Total liabilities	7,230			555			4,386			(5,225		)	6,946
Redeemable noncontrolling interest	—			—			—			920			920
Equity:
Common stock	412			—			2,336			(2,336		)	412
Additional paid-in capital	(233		)	130			11,224			(10,677		)	444
Retained income	6,961			2,345			121			(1,304		)	8,123
Accumulated other comprehensive loss	(366		)	6			(293		)	26			(627		)
Less: common stock in treasury	(7,976		)	—			(10		)	10			(7,976		)
Total equity - controlling interests	(1,202		)	2,481			13,378			(14,281		)	376
Total equity - noncontrolling interests	—			—			—			49			49
Total equity	(1,202		)	2,481			13,378			(14,232		)	425
Total liabilities and equity	$	6,028		$	3,036		$	17,764		$	(18,537	)	$	8,291



	Balance Sheet
	December 31, 2015
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC		Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	167		$	—	$	1,314		$	—		$	1,481
Accounts receivable, net of allowance for doubtful accounts	116			319		556			—			991
Intercompany receivable	208			1,872		1,273			(3,353		)	—
Deferred income taxes	75			10		24			—			109
Prepaid and other current assets	120			13		80			(1		)	212
Assets of businesses held for sale	4			—		499			—			503
Total current assets	690			2,214		3,746			(3,354		)	3,296
Property and equipment, net of accumulated depreciation	141			3		126			—			270
Goodwill	17			40		2,816			9			2,882
Other intangible assets, net	—			—		1,522			—			1,522
Investments in subsidiaries	4,651			659		7,316			(12,626		)	—
Intercompany loans receivable	16			368		1,733			(2,117		)	—
Other non-current assets	67			19		127			—			213
Total assets	$	5,582		$	3,303	$	17,386		$	(18,088	)	$	8,183
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	71		$	54	$	81		$	—		$	206
Intercompany payable	2,144			675		535			(3,354		)	—
Accrued compensation and contributions to retirement plans	127			89		167			—			383
Short-term debt	143			—		—			—			143
Unearned revenue	254			586		582			(1		)	1,421
Other current liabilities	191			65		293			—			549
Liabilities of businesses held for sale	80			—		126			—			206
Total current liabilities	3,010			1,469		1,784			(3,355		)	2,908
Long-term debt	3,468			—		—			—			3,468
Intercompany loans payable	21			—		2,096			(2,117		)	—
Pension and postretirement benefits	230			—		46			—			276
Other non-current liabilities	(25		)	98		295			—			368
Total liabilities	6,704			1,567		4,221			(5,472		)	7,020
Redeemable noncontrolling interest	—			—		—			920			920
Equity:
Common stock	412			—		2,337			(2,337		)	412
Additional paid-in capital	(184		)	1,179		10,174			(10,694		)	475
Retained income	6,701			557		987			(609		)	7,636
Accumulated other comprehensive loss	(322		)	—		(322		)	44			(600		)
Less: common stock in treasury	(7,729		)	—		(12		)	12			(7,729		)
Total equity - controlling interests	(1,122		)	1,736		13,164			(13,584		)	194
Total equity - noncontrolling interests	—			—		1			48			49
Total equity	(1,122		)	1,736		13,165			(13,536		)	243
Total liabilities and equity	$	5,582		$	3,303	$	17,386		$	(18,088	)	$	8,183



	Statement of Cash Flows
	Six Months Ended June 30, 2016
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Operating Activities:
Net income	$	1,391		$	440		$	1,026		$	(2,122	)	$	735
Adjustments to reconcile net income to cash provided by operating activities from continuing operations:
Depreciation	19			5			16			—			40
Amortization of intangibles	—			—			47			—			47
Provision for losses on accounts receivable	1			1			6			—			8
Deferred income taxes	(4		)	—			—			—			(4		)
Stock-based compensation	10			7			17			—			34
Other	3			8			36			—			47
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(7		)	148			(180		)	—			(39		)
Prepaid and other current assets	(28		)	13			(6		)	—			(21		)
Accounts payable and accrued expenses	(67		)	(98		)	(47		)	—			(212		)
Unearned revenue	18			(375		)	395			—			38
Accrued legal and regulatory settlements	—			(108		)	—			—			(108		)
Other current liabilities	(25		)	(25		)	27			—			(23		)
Net change in prepaid/accrued income taxes	64			—			9			—			73
Net change in other assets and liabilities	(31		)	27			(40		)	—			(44		)
Cash provided by operating activities from continuing operations	1,344			43			1,306			(2,122		)	571
Investing Activities:
Capital expenditures	(16		)	(7		)	(13		)	—			(36		)
Acquisitions, net of cash acquired	(40		)	—			(12		)	—			(52		)
Cash used for investing activities from continuing operations	(56		)	(7		)	(25		)	—			(88		)
Financing Activities:
Additions to short-term debt, net	166			—			—			—			166
Dividends paid to shareholders	(191		)	—			—			—			(191		)
Dividends and other payments paid to noncontrolling interests	—			—			(57		)	—			(57		)
Repurchase of treasury shares	(373		)	—			—			—			(373		)
Exercise of stock options	64			—			1			—			65
Excess tax benefits from share-based payments	19			—			—			—			19
Intercompany financing activities	(1,038		)	(36		)	(1,048		)	2,122			—
Cash used for financing activities from continuing operations	(1,353		)	(36		)	(1,104		)	2,122			(371		)
Effect of exchange rate changes on cash from continuing operations	(40		)	—			14			—			(26		)
Net change in cash and cash equivalents	(105		)	—			191			—			86
Cash and cash equivalents at beginning of period	167			—			1,314			—			1,481
Cash and cash equivalents at end of period	$	62		$	—		$	1,505		$	—		$	1,567



	Statement of Cash Flows
	Six Months Ended June 30, 2015
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Operating Activities:
Net income	$	696		$	487		$	365		$	(837	)	$	711
Adjustments to reconcile net income to cash provided by (used for) operating activities from continuing operations:
Depreciation	19			10			14			—			43
Amortization of intangibles	2			—			21			—			23
Provision for losses on accounts receivable	—			(2		)	6			—			4
Deferred income taxes	(138		)	161			143			—			166
Stock-based compensation	11			11			15			—			37
Other	9			29			13			—			51
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	1			(23		)	(114		)	—			(136		)
Prepaid and other current assets	32			(3		)	(53		)	—			(24		)
Accounts payable and accrued expenses	(99		)	(43		)	(115		)	—			(257		)
Unearned revenue	11			15			45			—			71
Accrued legal and regulatory settlements	—			(1,609		)	—			—			(1,609		)
Other current liabilities	(34		)	(22		)	(9		)	—			(65		)
Net change in prepaid/accrued income taxes	108			—			11			—			119
Net change in other assets and liabilities	62			3			(96		)	—			(31		)
Cash provided by (used for) operating activities from continuing operations	680			(986		)	246			(837		)	(897		)
Investing Activities:
Capital expenditures	(18		)	(4		)	(20		)	—			(42		)
Acquisitions, net of cash acquired	—			—			(2		)	—			(2		)
Proceeds from dispositions	—			—			14			—			14
Changes in short-term investments	—			—			(7		)	—			(7		)
Cash used for investing activities from continuing operations	(18		)	(4		)	(15		)	—			(37		)
Financing Activities:
Proceeds from issuance of senior notes, net	690			—			—			—			690
Dividends paid to shareholders	(185		)	—			—			—			(185		)
Dividends and other payments paid to noncontrolling interests	—			—			(49		)	—			(49		)
Repurchase of treasury shares	(274		)	—			—			—			(274		)
Exercise of stock options	71			—			2			—			73
Excess tax benefits from share-based payments	38			—			—			—			38
Intercompany financing activities	(1,870		)	990			43			837			—
Cash (used for) provided by financing activities from continuing operations	(1,530		)	990			(4		)	837			293
Effect of exchange rate changes on cash from continuing operations	(3		)	—			(4		)	—			(7		)
Cash (used for) provided by continuing operations	(871		)	—			223			—			(648		)
Discontinued Operations:
Cash used for operating activities	—			—			(129		)	—			(129		)
Cash used for discontinued operations	—			—			(129		)	—			(129		)
Net change in cash and cash equivalents	(871		)	—			94			—			(777		)
Cash and cash equivalents at beginning of period	1,402			—			1,095			—			2,497
Cash and cash equivalents at end of period	$	531		$	—		$	1,189		$	—		$	1,720