Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

As discussed in Note 1 – Accounting Policies, we have three reportable segments: Ratings, Market and Commodities Intelligence and Indices.

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.

Effective beginning with the fourth quarter of 2016, we realigned certain of our reportable segments to be consistent with changes to our organizational structure and how our Chief Executive Officer evaluates the performance of these segments. Beginning in the fourth quarter of 2016, S&P Global Market Intelligence and S&P Global Platts are included in a new reportable segment named Market and Commodities Intelligence. Our historical segment reporting has been retroactively revised to reflect the current organizational structure.

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

(in millions)	Revenue									Operating Profit (Loss)
	2016			2015			2014			2016			2015			2014
Ratings 1	$	2,535		$	2,428		$	2,455		$	1,262		$	1,078		$	(583	)
Market and Commodities Intelligence 2	2,585			2,376			2,130			1,822			585			518
Indices 3	639			597			552			412			392			347
Intersegment elimination 4	(98		)	(88		)	(86		)	—			—			—
Total operating segments	5,661			5,313			5,051			3,496			2,055			282
Unallocated expense 5	—			—			—			(127		)	(138		)	(169		)
Total	$	5,661		$	5,313		$	5,051		$	3,369		$	1,917		$	113

¹  Operating profit for the year ended December 31, 2016 primarily includes a benefit related to net legal settlement insurance recoveries of $10 million and restructuring charges of $6 million. Operating profit for the year ended December 31, 2015 includes net legal settlement expenses of $54 million and restructuring charges of $13 million. Operating profit for the year ended December 31, 2014 includes legal and regulatory settlements of $1.6 billion and restructuring charges of $45 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $5 million for the years ended December 31, 2016 and 2015 and $6 million for the year ended December 31, 2014.

²  Operating profit for the year ended December 31, 2016 includes a $1.1 billion gain from our dispositions, disposition-related costs of $48 million, a technology-related impairment charge of $24 million and an acquisition-related cost of $1 million. Operating profit for the year ended December 31, 2015 includes acquisition-related costs related to the acquisition of SNL of $37 million and costs identified operating efficiencies primarily related to restructuring of $33 million. Operating profit for the year ended December 31, 2014 includes restructuring charges of $25 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $85 million, $57 million and $37 million for the years ended December 31, 2016, 2015, and 2014, respectively.

³  Operating profit for the year ended December 31, 2014 includes the impact of professional fees largely related to corporate development activities of $4 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $6 million for the year ended December 31, 2016 and $5 million for the years ended December 31, 2015 and 2014.

⁴  Revenue for Ratings and expenses for Market and Commodities Intelligence include an intersegment royalty charged to Market and Commodities Intelligence for the rights to use and distribute content and data developed by Ratings.

⁵  The year ended December 31, 2016 includes $3 million from a disposition-related reserve release. 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.

(in millions)	Depreciation & Amortization						Capital Expenditures
	2016		2015		2014		2016		2015		2014
Ratings	$	34	$	43	$	43	$	42	$	48	$	33
Market and Commodities Intelligence	131		99		74		57		78		49
Indices	8		8		7		3		4		2
Total operating segments	173		150		124		102		130		84
Corporate	8		7		10		13		9		8
Total	$	181	$	157	$	134	$	115	$	139	$	92

Segment information as of December 31 is as follows:

(in millions)	Total Assets
	2016		2015
Ratings	$	612	$	620
Market and Commodities Intelligence	4,104		4,011
Indices	1,247		1,181
Total operating segments	5,963		5,812
Corporate 1	2,699		1,868
Assets of a business held for sale 2	7		503
Total	$	8,669	$	8,183

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 QuantHouse and J.D. Power as of December 31, 2016 and 2015, respectively.

We have operations with foreign revenue and long-lived assets in approximately 95 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
	Year ended December 31,						December 31,
	2016		2015		2014		2016		2015
U.S.	$	3,461	$	3,202	$	2,911	$	4,335	$	4,198
European region	1,330		1,265		1,316		341		419
Asia	575		566		528		58		63
Rest of the world	295		280		296		46		50
Total	$	5,661	$	5,313	$	5,051	$	4,780	$	4,730

	Revenue						Long-lived Assets
	Year ended December 31,						December 31,
	2016		2015		2014		2016		2015
U.S.	61	%	60	%	58	%	91	%	89	%
European region	24		24		26		7		9
Asia	10		11		10		1		1
Rest of the world	5		5		6		1		1
Total	100	%	100	%	100	%	100	%	100	%

See Note 2 – Acquisitions andDivestitures and Note 11 – Restructuring, for actions that impacted the segment operating results.