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 4 — 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
	Three Months Ended June 30, 2017
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	181		$	447		$	916		$	(35	)	$	1,509
Expenses:
Operating-related expenses	39			115			330			(35		)	449
Selling and general expenses	26			83			229			—			338
Depreciation	8			3			9			—			20
Amortization of intangibles	—			—			25			—			25
Total expenses	73			201			593			(35		)	832
Operating profit	108			246			323			—			677
Interest expense (income), net	40			—			(3		)	—			37
Non-operating intercompany transactions	93			(22		)	(726		)	655			—
Income before taxes on income	(25		)	268			1,052			(655		)	640
(Benefit) provision for taxes on income	(36		)	119			100			—			183
Equity in net income of subsidiaries	1,064			—			—			(1,064		)	—
Net income	$	1,075		$	149		$	952		$	(1,719	)	$	457
Less: net income attributable to noncontrolling interests	—			—			—			(36		)	(36		)
Net income attributable to S&P Global Inc.	$	1,075		$	149		$	952		$	(1,755	)	$	421
Comprehensive income	$	1,085		$	148		$	972		$	(1,712	)	$	493



	Statement of Income
	Six Months Ended June 30, 2017
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	361		$	885		$	1,783		$	(67	)	$	2,962
Expenses:
Operating-related expenses	71			234			623			(67		)	861
Selling and general expenses	45			172			472			—			689
Depreciation	15			5			19			—			39
Amortization of intangibles	—			—			49			—			49
Total expenses	131			411			1,163			(67		)	1,638
Operating profit	230			474			620			—			1,324
Interest expense (income), net	79			—			(5		)	—			74
Non-operating intercompany transactions	175			(41		)	(1,626		)	1,492			—
Income before taxes on income	(24		)	515			2,251			(1,492		)	1,250
(Benefit) provision for taxes on income	(47		)	218			192			—			363
Equity in net income of subsidiaries	2,288			—			—			(2,288		)	—
Net income	$	2,311		$	297		$	2,059		$	(3,780	)	$	887
Less: net income attributable to noncontrolling interests	—			—			—			(67		)	(67		)
Net income attributable to S&P Global Inc.	$	2,311		$	297		$	2,059		$	(3,847	)	$	820
Comprehensive income	$	2,323		$	296		$	2,118		$	(3,776	)	$	961



	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			—
(Loss) income before taxes on income	(37		)	293			494			(141		)	609
(Benefit) 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	49			231			705			(62		)	923
Selling and general expenses	54			97			499			—			650
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			—
(Loss) income before taxes on income	(35		)	463			1,222			(570		)	1,080
(Benefit) 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



	Balance Sheet
	June 30, 2017
	(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	$	509		$	—		$	1,875		$	—		$	2,384
Accounts receivable, net of allowance for doubtful accounts	123			191			852			—			1,166
Intercompany receivable	679			1,498			1,982			(4,159		)	—
Prepaid and other current assets	96			(2		)	79			—			173
Total current assets	1,407			1,687			4,788			(4,159		)	3,723
Property and equipment, net of accumulated depreciation	148			1			115			—			264
Goodwill	260			—			2,706			16			2,982
Other intangible assets, net	—			—			1,442			—			1,442
Investments in subsidiaries	6,681			5			8,920			(15,606		)	—
Intercompany loans receivable	109			—			1,075			(1,184		)	—
Other non-current assets	165			29			186			—			380
Total assets	$	8,770		$	1,722		$	19,232		$	(20,933	)	$	8,791
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	57		$	14		$	91		$	—		$	162
Intercompany payable	2,604			443			1,111			(4,158		)	—
Accrued compensation and contributions to retirement plans	104			47			143			—			294
Income taxes currently payable	8			—			71			—			79
Unearned revenue	274			220			1,008			—			1,502
Other current liabilities	137			12			176			—			325
Total current liabilities	3,184			736			2,600			(4,158		)	2,362
Long-term debt	3,566			—			—			—			3,566
Intercompany loans payable	103			—			1,081			(1,184		)	—
Pension and other postretirement benefits	198			—			71			—			269
Other non-current liabilities	40			70			304			—			414
Total liabilities	7,091			806			4,056			(5,342		)	6,611
Redeemable noncontrolling interest	—			—			—			1,107			1,107
Equity:
Common stock	412			—			2,292			(2,292		)	412
Additional paid-in capital	(211		)	588			11,392			(11,279		)	490
Retained income	10,759			328			1,986			(3,257		)	9,816
Accumulated other comprehensive loss	(281		)	—			(467		)	49			(699		)
Less: common stock in treasury	(9,000		)	—			(28		)	28			(9,000		)
Total equity - controlling interests	1,679			916			15,175			(16,751		)	1,019
Total equity - noncontrolling interests	—			—			1			53			54
Total equity	1,679			916			15,176			(16,698		)	1,073
Total liabilities and equity	$	8,770		$	1,722		$	19,232		$	(20,933	)	$	8,791



	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			79			(1		)	157
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
Other current liabilities	165			(51		)	301			—			415
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



	Statement of Cash Flows
	Six Months Ended June 30, 2017
	(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	$	2,311		$	297		$	2,059		$	(3,780	)	$	887
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	15			5			19			—			39
Amortization of intangibles	—			—			49			—			49
Provision for losses on accounts receivable	—			4			9			—			13
Stock-based compensation	14			10			17			—			41
Other	17			—			9			—			26
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	14			(63		)	—			—			(49		)
Prepaid and other current assets	(18		)	3			2			—			(13		)
Accounts payable and accrued expenses	(40		)	34			(133		)	—			(139		)
Unearned revenue	1			28			(46		)	—			(17		)
Accrued legal settlements	—			(1		)	(3		)	—			(4		)
Other current liabilities	(33		)	(4		)	(48		)	—			(85		)
Net change in prepaid/accrued income taxes	(55		)	—			10			—			(45		)
Net change in other assets and liabilities	(17		)	1			(13		)	—			(29		)
Cash provided by operating activities	2,209			314			1,931			(3,780		)	674
Investing Activities:
Capital expenditures	(19		)	(10		)	(27		)	—			(56		)
Acquisitions, net of cash acquired	—			—			(70		)	—			(70		)
Proceeds from dispositions	—			—			2			—			2
Cash used for investing activities	(19		)	(10		)	(95		)	—			(124		)
Financing Activities:
Dividends paid to shareholders	(212		)	—			—			—			(212		)
Distributions to noncontrolling interest holders	—			—			(54		)	—			(54		)
Repurchase of treasury shares	(346		)	—			—			—			(346		)
Exercise of stock options	38			—			—			—			38
Employee withholding tax on share-based payments	(44		)	—			—			—			(44		)
Intercompany financing activities	(1,842		)	(304		)	(1,634		)	3,780			—
Cash used for financing activities	(2,406		)	(304		)	(1,688		)	3,780			(618		)
Effect of exchange rate changes on cash from continuing operations	14			—			46			—			60
Net change in cash and cash equivalents	(202		)	—			194			—			(8		)
Cash and cash equivalents at beginning of period	711			—			1,681			—			2,392
Cash and cash equivalents at end of period	$	509		$	—		$	1,875		$	—		$	2,384



	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:
Depreciation	19			5			16			—			40
Amortization of intangibles	—			—			47			—			47
Provision for losses on accounts receivable	1			1			6			—			8
Stock-based compensation	10			7			17			—			34
Other	(1		)	8			36			—			43
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(7		)	148			(180		)	—			(39		)
Prepaid and other current assets	(21		)	13			(6		)	—			(14		)
Accounts payable and accrued expenses	(26		)	(98		)	(47		)	—			(171		)
Unearned revenue	18			(375		)	395			—			38
Accrued legal settlements	—			(108		)	—			—			(108		)
Other current liabilities	(23		)	(25		)	27			—			(21		)
Net change in prepaid/accrued income taxes	83			—			9			—			92
Net change in other assets and liabilities	(31		)	27			(40		)	—			(44		)
Cash provided by operating activities	1,413			43			1,306			(2,122		)	640
Investing Activities:
Capital expenditures	(16		)	(7		)	(13		)	—			(36		)
Acquisitions, net of cash acquired	(40		)	—			(12		)	—			(52		)
Cash used for investing activities	(56		)	(7		)	(25		)	—			(88		)
Financing Activities:
Additions to short-term debt, net	166			—			—			—			166
Dividends paid to shareholders	(191		)	—			—			—			(191		)
Distributions to noncontrolling interest holders	—			—			(57		)	—			(57		)
Repurchase of treasury shares	(373		)	—			—			—			(373		)
Exercise of stock options	64			—			1			—			65
Employee withholding tax on share-based payments	(50		)	—			—			—			(50		)
Intercompany financing activities	(1,038		)	(36		)	(1,048		)	2,122			—
Cash used for financing activities	(1,422		)	(36		)	(1,104		)	2,122			(440		)
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