Condensed Consolidating Financial Statements

On September 22, 2016, we issued $500 million of 2.95% senior notes due in 2027. 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. See Note 5 — Debt for additional information.

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
	Year Ended December 31, 2016
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	667		$	1,513		$	3,607		$	(126	)	$	5,661
Expenses:
Operating-related expenses	109			451			1,335			(126		)	1,769
Selling and general expenses	113			243			1,087			—			1,443
Depreciation	38			9			38			—			85
Amortization of intangibles	—			—			96			—			96
Total expenses	260			703			2,556			(126		)	3,393
Gain on dispositions	(1,072		)	—			(29		)	—			(1,101		)
Operating profit	1,479			810			1,080			—			3,369
Interest expense (income), net	191			—			(10		)	—			181
Non-operating intercompany transactions	356			(83		)	(941		)	668			—
Income before taxes on income	932			893			2,031			(668		)	3,188
Provision for taxes on income	275			420			265			—			960
Equity in net income of subsidiaries	2,412			294			—			(2,706		)	—
Net income	3,069			767			1,766			(3,374		)	2,228
Less: net income attributable to noncontrolling interests	—			—			—			(122		)	(122		)
Net income attributable to S&P Global Inc.	$	3,069		$	767		$	1,766		$	(3,496	)	$	2,106
Comprehensive income	$	3,099		$	767		$	1,563		$	(3,374	)	$	2,055



	Statement of Income
	Year Ended December 31, 2015
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC		Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	624		$	2,141	$	2,663		$	(115	)	$	5,313
Expenses:
Operating-related expenses	119			737		959			(115		)	1,700
Selling and general expenses	202			254		1,094			—			1,550
Depreciation	40			18		32			—			90
Amortization of intangibles	—			—		67			—			67
Total expenses	361			1,009		2,152			(115		)	3,407
Gain on dispositions	—			—		(11		)	—			(11		)
Operating profit	263			1,132		522			—			1,917
Interest expense (income), net	112			—		(10		)	—			102
Non-operating intercompany transactions	282			222		(504		)	—			—
(Loss) income before taxes on income	(131		)	910		1,036			—			1,815
(Benefit) provision for taxes on income	(107		)	358		296			—			547
Equity in net income of subsidiaries	1,473			272		—			(1,745		)	—
Net income	1,449			824		740			(1,745		)	1,268
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(112		)	(112		)
Net income attributable to S&P Global Inc.	$	1,449		$	824	$	740		$	(1,857	)	$	1,156
Comprehensive income	$	1,446		$	822	$	655		$	(1,741	)	$	1,182



	Statement of Income
	Year Ended December 31, 2014
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	598		$	2,043		$	2,525		$	(115	)	$	5,051
Expenses:
Operating-related expenses	117			764			885			(115		)	1,651
Selling and general expenses	257			1,975			912			—			3,144
Depreciation	41			17			28			—			86
Amortization of intangibles	4			—			44			—			48
Total expenses	419			2,756			1,869			(115		)	4,929
Loss on dispositions	3			—			6			—			9
Operating profit (loss)	176			(713		)	650			—			113
Interest expense (income), net	66			—			(7		)	—			59
Non-operating intercompany transactions	193			38			(231		)	—			—
(Loss) income from continuing operations before taxes on income	(83		)	(751		)	888			—			54
(Benefit) provision for taxes on income	(22		)	16			251			—			245
Equity in net (loss) income of subsidiaries	(443		)	248			—			195			—
(Loss) income from continuing operations	(504		)	(519		)	637			195			(191		)
Discontinued operations, net of tax:
Income from discontinued operations	18			—			—			—			18
Gain on sale of discontinued operations	160			—			—			—			160
Discontinued operations, net	178			—			—			—			178
Net (loss) income	$	(326	)	$	(519	)	$	637		$	195		$	(13	)
Less: net income from continuing operations attributable to noncontrolling interests	—			—			—			(102		)	(102		)
Net (loss) income attributable to S&P Global Inc.	$	(326	)	$	(519	)	$	637		$	93		$	(115	)
Comprehensive income	$	(495	)	$	(544	)	$	513		$	195		$	(331	)



	Balance Sheet
	December 31, 2016
(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	$	711		$	—		$	1,681		$	—		$	2,392
Accounts receivable, net of allowance for doubtful accounts	138			131			853						1,122
Intercompany receivable	(165		)	837			870			(1,542		)	—
Prepaid and other current assets	77			2			72			(1		)	150
Assets of a business held for sale	—			—			7			—			7
Total current assets	761			970			3,483			(1,543		)	3,671
Property and equipment, net of accumulated depreciation	159			1			111						271
Goodwill	261			—			2,679			9			2,949
Other intangible assets, net	—			—			1,506			—			1,506
Investments in subsidiaries	5,464			680			7,826			(13,970		)	—
Intercompany loans receivable	17			—			1,354			(1,371		)	—
Other non-current assets	134			24			114			—			272
Total assets	$	6,796		$	1,675		$	17,073		$	(16,875	)	$	8,669
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	73		$	22		$	88		$	—		$	183
Intercompany payable	1,324			40			177			(1,541		)	—
Accrued compensation and contributions to retirement plans	129			69			211			—			409
Income taxes currently payable	43			—			52			—			95
Unearned revenue	273			191			1,045			—			1,509
Accrued legal and regulatory settlements	2			3			51						56
Other current liabilities	163			(54		)	205			—			314
Liabilities of a business held for sale	—			—			45			—			45
Total current liabilities	2,007			271			1,874			(1,541		)	2,611
Long-term debt	3,564			—			—			—			3,564
Intercompany loans payable	11			—			1,360			(1,371		)	—
Pension and other postretirement benefits	196			—			78			—			274
Other non-current liabilities	52			74			314			(1		)	439
Total liabilities	5,830			345			3,626			(2,913		)	6,888
Redeemable noncontrolling interest										1,080			1,080
Equity:
Common stock	412			—			2,460			(2,460		)	412
Additional paid-in capital	(174		)	1,154			10,485			(10,963		)	502
Retained income	9,721			176			1,034			(1,721		)	9,210
Accumulated other comprehensive loss	(292		)	—			(525		)	44			(773		)
Less: common stock in treasury	(8,701		)	—			(7		)	7			(8,701		)
Total equity - controlling interests	966			1,330			13,447			(15,093		)	650
Total equity - noncontrolling interests										51			51
Total equity	966			1,330			13,447			(15,042		)	701
Total liabilities and equity	$	6,796		$	1,675		$	17,073		$	(16,875	)	$	8,669



	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 a business 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
Income taxes currently payable	1			—			55			—			56
Unearned revenue	254			586			582			(1		)	1,421
Accrued legal and regulatory settlements	—			115			6			—			121
Other current liabilities	190			(50		)	232			—			372
Liabilities of a business 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 other 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
	Year Ended December 31, 2016
(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	$	3,069		$	767		$	1,766		$	(3,374	)	$	2,228
Adjustments to reconcile net income to cash provided by operating activities from continuing operations:
Depreciation	38			9			38			—			85
Amortization of intangibles	—			—			96			—			96
Provision for losses on accounts receivable	1			—			8			—			9
Deferred income taxes	16			(9		)	72			—			79
Stock-based compensation	22			17			37			—			76
Gain on dispositions	(1,072		)	—			(29		)	—			(1,101		)
Accrued legal and regulatory settlements	3			1			50			—			54
Other	48			5			(23		)	—			30
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(24		)	187			(340		)	—			(177		)
Prepaid and current assets	(9		)	10			(3		)	—			(2		)
Accounts payable and accrued expenses	(53		)	(39		)	66			—			(26		)
Unearned revenue	19			(395		)	483			—			107
Accrued legal and regulatory settlement	—			(108		)	(42		)	—			(150		)
Other current liabilities	(29		)	(27		)	35			—			(21		)
Net change in prepaid/accrued income taxes	99			—			33			—			132
Net change in other assets and liabilities	(9		)	38			16			—			45
Cash provided by operating activities from continuing operations	2,119			456			2,263			(3,374		)	1,464
Investing Activities:
Capital expenditures	(68		)	(15		)	(32		)	—			(115		)
Acquisitions, net of cash acquired	(144		)	—			(33		)	—			(177		)
Proceeds from dispositions	1,422			—			76			—			1,498
Changes in short-term investments	—			—			(1		)	—			(1		)
Cash provided by (used for) investing activities from continuing operations	1,210			(15		)	10			—			1,205
Financing Activities:
Payments on short-term debt, net	(143		)	—			—			—			(143		)
Proceeds from issuance of senior notes, net	493			—			—			—			493
Payments on senior notes	(421		)	—			—			—			(421		)
Dividends paid to shareholders	(380		)	—			—			—			(380		)
Dividends and other payments paid to noncontrolling interests	—			—			(116		)	—			(116		)
Contingent consideration payments	(5		)	—			(34		)	—			(39		)
Repurchase of treasury shares	(1,123		)	—			—			—			(1,123		)
Exercise of stock options	86			—			2			—			88
Excess tax benefits from share-based payments	41			—			—			—			41
Intercompany financing activities	(1,333		)	(441		)	(1,600		)	3,374			—
Cash used for financing activities from continuing operations	(2,785		)	(441		)	(1,748		)	3,374			(1,600		)
Effect of exchange rate changes on cash from continuing operations	—			—			(158		)	—			(158		)
Net change in cash and cash equivalents	544			—			367			—			911
Cash and cash equivalents at beginning of year	167			—			1,314			—			1,481
Cash and cash equivalents at end of year	$	711		$	—		$	1,681		$	—		$	2,392



	Statement of Cash Flows
	Year Ended December 31, 2015
(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	$	1,449		$	824		$	740		$	(1,745	)	$	1,268
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
Depreciation	40			18			32			—			90
Amortization of intangibles	—			—			67			—			67
Provision for losses on accounts receivable	1			1			6			—			8
Deferred income taxes	33			290			(43		)	—			280
Stock-based compensation	23			24			31			—			78
Gain on dispositions	—			—			(11		)	—			(11		)
Accrued legal and regulatory settlements	—			110			9			—			119
Other	23			16			18			—			57
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	3			(27		)	(94		)	—			(118		)
Prepaid and current assets	(13		)	14			(5		)	—			(4		)
Accounts payable and accrued expenses	(75		)	(34		)	17			—			(92		)
Unearned revenue	(5		)	66			68			—			129
Accrued legal and regulatory settlement	—			(1,624		)	—			—			(1,624		)
Other current liabilities	(32		)	(35		)	(11		)	—			(78		)
Net change in prepaid/accrued income taxes	(54		)	—			115			—			61
Net change in other assets and liabilities	78			8			(121		)	—			(35		)
Cash provided by (used for) operating activities from continuing operations	1,471			(349		)	818			(1,745		)	195
Investing Activities:
Capital expenditures	(67		)	(10		)	(62		)	—			(139		)
Acquisitions, net of cash acquired	(2,243		)	—			(153		)	—			(2,396		)
Proceeds from dispositions	—			—			14			—			14
Changes in short-term investments	—			—			(4		)	—			(4		)
Cash used for investing activities from continuing operations	(2,310		)	(10		)	(205		)	—			(2,525		)
Financing Activities:
Additions to short-term debt, net	143			—			—			—			143
Proceeds from issuance of senior notes, net	2,674			—			—			—			2,674
Dividends paid to shareholders	(363		)	—			—			—			(363		)
Dividends and other payments paid to noncontrolling interests	—			—			(104		)	—			(104		)
Contingent consideration payments	(5		)	—			—			—			(5		)
Repurchase of treasury shares	(974		)	—			—			—			(974		)
Exercise of stock options	80			—			6			—			86
Purchase of additional CRISIL shares	—			—			(16		)	—			(16		)
Excess tax benefits from share-based payments	69			—			—			—			69
Intercompany financing activities	(2,020		)	359			(84		)	1,745			—
Cash (used for) provided by financing activities from continuing operations	(396		)	359			(198		)	1,745			1,510
Effect of exchange rate changes on cash from continuing operations	—			—			(67		)	—			(67		)
Cash (used for) provided by continuing operations	(1,235		)	—			348			—			(887		)
Discontinued Operations:
Cash used for operating activities	—			—			(129		)	—			(129		)
Cash used for discontinued operations	—			—			(129		)	—			(129		)
Net change in cash and cash equivalents	(1,235		)	—			219			—			(1,016		)
Cash and cash equivalents at beginning of year	1,402			—			1,095			—			2,497
Cash and cash equivalents at end of year	$	167		$	—		$	1,314		$	—		$	1,481



	Statement of Cash Flows
	Year Ended December 31, 2014
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Operating Activities:
Net (loss) income	$	(326	)	$	(519	)	$	637		$	195		$	(13	)
Less: discontinued operations, net	178			—			—			—			178
(Loss) income from continuing operations	(504		)	(519		)	637			195			(191		)
Adjustments to reconcile (loss) income from continuing operations to cash (used for) provided by operating activities from continuing operations:
Depreciation	41			17			28			—			86
Amortization of intangibles	4			—			44			—			48
Provision for losses on accounts receivable	—			5			6			—			11
Deferred income taxes	42			(272		)	(15		)	—			(245		)
Stock-based compensation	31			34			35			—			100
Loss on dispositions	3			—			6			—			9
Accrued legal and regulatory settlements	—			1,587			—			—			1,587
Other	18			39			14			—			71
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(11		)	47			(45		)	—			(9		)
Prepaid and current assets	(42		)	(17		)	52			—			(7		)
Accounts payable and accrued expenses	(83		)	(47		)	—			—			(130		)
Unearned revenue	8			26			44			—			78
Accrued legal and regulatory settlement	—			(35		)	—			—			(35		)
Other current liabilities	(51		)	45			(10		)	—			(16		)
Net change in prepaid/accrued income taxes	13			3			(109		)	—			(93		)
Net change in other assets and liabilities	(131		)	5			71			—			(55		)
Cash (used for) provided by operating activities from continuing operations	(662		)	918			758			195			1,209
Investing Activities:
Capital expenditures	(26		)	(14		)	(52		)	—			(92		)
Acquisitions, net of cash acquired	—			—			(71		)	—			(71		)
Proceeds from dispositions	63			—			20			—			83
Changes in short-term investments	—			—			15			—			15
Cash provided by (used for) investing activities from continuing operations	37			(14		)	(88		)	—			(65		)
Financing Activities:
Dividends paid to shareholders	(326		)	—			—			—			(326		)
Dividends and other payments paid to noncontrolling interests	—			—			(84		)	—			(84		)
Contingent consideration payments	—			—			(11		)	—			(11		)
Repurchase of treasury shares	(362		)	—			—			—			(362		)
Exercise of stock options	184			—			9			—			193
Excess tax benefits from share-based payments	128			—			—			—			128
Intercompany financing activities	1,377			(904		)	(278		)	(195		)	—
Cash provided by (used for) financing activities from continuing operations	1,001			(904		)	(364		)	(195		)	(462		)
Effect of exchange rate changes on cash from continuing operations	3			—			(68		)	—			(65		)
Cash provided by continuing operations	379			—			238			—			617
Discontinued Operations:
Cash provided by operating activities	18			—			—			—			18
Cash provided by investing activities	320			—			—			—			320
Cash provided by discontinued operations	338			—			—			—			338
Net change in cash and cash equivalents	717			—			238			—			955
Cash and cash equivalents at beginning of year	685			—			857			—			1,542
Cash and cash equivalents at end of year	$	1,402		$	—		$	1,095		$	—		$	2,497