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, 2017
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	717		$	1,780		$	3,704		$	(138	)	$	6,063
Expenses:
Operating-related expenses	108			482			1,261			(138		)	1,713
Selling and general expenses	162			345			1,053			—			1,560
Depreciation	31			11			40			—			82
Amortization of intangibles	—			—			98			—			98
Total expenses	301			838			2,452			(138		)	3,453
Operating profit	416			942			1,252			—			2,610
Interest expense (income), net	163			—			(14		)	—			149
Non-operating intercompany transactions	365			(77		)	(2,463		)	2,175			—
(Loss) income before taxes on income	(112		)	1,019			3,729			(2,175		)	2,461
Provision for taxes on income	26			370			427			—			823
Equity in net income of subsidiaries	3,808			—			—			(3,808		)	—
Net income	3,670			649			3,302			(5,983		)	1,638
Less: net income attributable to noncontrolling interests	—			—			—			(142		)	(142		)
Net income attributable to S&P Global Inc.	$	3,670		$	649		$	3,302		$	(6,125	)	$	1,496
Comprehensive income	$	3,694		$	649		$	3,401		$	(5,982	)	$	1,762



	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	113			451			1,335			(126		)	1,773
Selling and general expenses	109			243			1,087			—			1,439
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	137			737		959			(115		)	1,718
Selling and general expenses	184			254		1,094			—			1,532
Depreciation	40			18		32			—			90
Amortization of intangibles	—			—		67			—			67
Total expenses	361			1,009		2,152			(115		)	3,407
Gain on disposition	—			—		(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 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



	Balance Sheet
	December 31, 2017
(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	$	632		$	—		$	2,147		$	—		$	2,779
Accounts receivable, net of allowance for doubtful accounts	138			152			1,029			—			1,319
Intercompany receivable	768			1,784			2,527			(5,079		)	—
Prepaid and other current assets	143			(3		)	86			—			226
Total current assets	1,681			1,933			5,789			(5,079		)	4,324
Property and equipment, net of accumulated depreciation	158			10			107			—			275
Goodwill	261			—			2,719			9			2,989
Other intangible assets, net	—			—			1,388			—			1,388
Investments in subsidiaries	8,364			5			8,028			(16,397		)	—
Intercompany loans receivable	116			—			1,699			(1,815		)	—
Other non-current assets	215			61			174			(1		)	449
Total assets	$	10,795		$	2,009		$	19,904		$	(23,283	)	$	9,425
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	79		$	23		$	93		$	—		$	195
Intercompany payable	3,433			492			1,154			(5,079		)	—
Accrued compensation and contributions to retirement plans	145			86			241			—			472
Short-term debt	399			—			—			—			399
Income taxes currently payable	2			—			75			—			77
Unearned revenue	293			193			1,127			—			1,613
Accrued legal settlements	—			2			105			—			107
Other current liabilities	136			21			194			—			351
Total current liabilities	4,487			817			2,989			(5,079		)	3,214
Long-term debt	3,170			—			—			—			3,170
Intercompany loans payable	101			—			1,715			(1,816		)	—
Pension and other postretirement benefits	180			—			64			—			244
Other non-current liabilities	376			74			229			—			679
Total liabilities	8,314			891			4,997			(6,895		)	7,307
Redeemable noncontrolling interest	—			—			—			1,350			1,350
Equity:
Common stock	412			—			2,318			(2,318		)	412
Additional paid-in capital	(216		)	602			9,256			(9,117		)	525
Retained income	12,156			516			3,782			(6,429		)	10,025
Accumulated other comprehensive loss	(269		)	—			(426		)	46			(649		)
Less: common stock in treasury	(9,602		)	—			(23		)	23			(9,602		)
Total equity - controlling interests	2,481			1,118			14,907			(17,795		)	711
Total equity - noncontrolling interests	—			—			—			57			57
Total equity	2,481			1,118			14,907			(17,738		)	768
Total liabilities and equity	$	10,795		$	2,009		$	19,904		$	(23,283	)	$	9,425



	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
Accrued legal and regulatory settlements	2			3			51						56
Other current liabilities	163			(54		)	250			—			359
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
	Year Ended December 31, 2017
(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	$	3,670		$	649		$	3,302		$	(5,983	)	$	1,638
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	31			11			40			—			82
Amortization of intangibles	—			—			98			—			98
Provision for losses on accounts receivable	2			3			11			—			16
Deferred income taxes	108			(10		)	(98		)	—			—
Stock-based compensation	35			22			42			—			99
Accrued legal settlements	—			—			55			—			55
Other	34			19			43			—			96
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(2		)	(23		)	(171		)	—			(196		)
Prepaid and current assets	(5		)	3			12			—			10
Accounts payable and accrued expenses	22			97			(44		)	—			75
Unearned revenue	19			2			64			—			85
Accrued legal settlements	—			(1		)	(3		)	—			(4		)
Other current liabilities	(42		)	(12		)	(31		)	—			(85		)
Net change in prepaid/accrued income taxes	41			(18		)	9			—			32
Net change in other assets and liabilities	7			(6		)	14			—			15
Cash provided by operating activities	3,920			736			3,343			(5,983		)	2,016
Investing Activities:
Capital expenditures	(55		)	(32		)	(36		)	—			(123		)
Acquisitions, net of cash acquired	—			—			(83		)	—			(83		)
Proceeds from dispositions	—			—			2			—			2
Changes in short-term investments	—			—			(5		)	—			(5		)
Cash used for investing activities	(55		)	(32		)	(122		)	—			(209		)
Financing Activities:
Dividends paid to shareholders	(421		)	—			—			—			(421		)
Distributions to noncontrolling interest holders	—			—			(111		)	—			(111		)
Repurchase of treasury shares	(1,001		)	—			—			—			(1,001		)
Exercise of stock options	68			—			7			—			75
Employee withholding tax on share-based payments	(49		)	—			—			—			(49		)
Intercompany financing activities	(2,546		)	(704		)	(2,733		)	5,983			—
Cash used for financing activities	(3,949		)	(704		)	(2,837		)	5,983			(1,507		)
Effect of exchange rate changes on cash from continuing operations	5			—			82			—			87
Net change in cash and cash equivalents	(79		)	—			466			—			387
Cash and cash equivalents at beginning of year	711			—			1,681			—			2,392
Cash and cash equivalents at end of year	$	632		$	—		$	2,147		$	—		$	2,779



	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:
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	(2		)	10			(3		)	—			5
Accounts payable and accrued expenses	(8		)	(39		)	66			—			19
Unearned revenue	19			(395		)	483			—			107
Accrued legal and regulatory settlements	—			(108		)	(42		)	—			(150		)
Other current liabilities	(27		)	(27		)	35			—			(19		)
Net change in prepaid/accrued income taxes	141			—			33			—			174
Net change in other assets and liabilities	(9		)	38			16			—			45
Cash provided by operating activities	2,215			456			2,263			(3,374		)	1,560
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	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		)
Distributions to noncontrolling interest holders	—			—			(116		)	—			(116		)
Repurchase of treasury shares	(1,123		)	—			—			—			(1,123		)
Exercise of stock options	86			—			2			—			88
Contingent consideration payments	(5		)	—			(34		)	—			(39		)
Employee withholding tax on share-based payments	(55		)	—			—			—			(55		)
Intercompany financing activities	(1,333		)	(441		)	(1,600		)	3,374			—
Cash used for financing activities	(2,881		)	(441		)	(1,748		)	3,374			(1,696		)
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 net income 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 disposition	—			—			(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	(4		)	14			(5		)	—			5
Accounts payable and accrued expenses	8			(34		)	17			—			(9		)
Unearned revenue	(5		)	66			68			—			129
Accrued legal and regulatory settlements	—			(1,624		)	—			—			(1,624		)
Other current liabilities	(31		)	(35		)	(11		)	—			(77		)
Net change in prepaid/accrued income taxes	14			—			115			—			129
Net change in other assets and liabilities	78			8			(121		)	—			(35		)
Cash provided by (used for) operating activities from continuing operations	1,632			(349		)	818			(1,745		)	356
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	143			—			—			—			143
Proceeds from issuance of senior notes, net	2,674			—			—			—			2,674
Dividends paid to shareholders	(363		)	—			—			—			(363		)
Distributions to noncontrolling interest holders	—			—			(104		)	—			(104		)
Repurchase of treasury shares	(974		)	—			—			—			(974		)
Exercise of stock options	80			—			6			—			86
Contingent consideration payments	(5		)	—			—			—			(5		)
Purchase of additional CRISIL shares	—			—			(16		)	—			(16		)
Employee withholding tax on share-based payments	(92		)	—			—			—			(92		)
Intercompany financing activities	(2,020		)	359			(84		)	1,745			—
Cash (used for) provided by financing activities from continuing operations	(557		)	359			(198		)	1,745			1,349
Effect of exchange rate changes on cash from continuing operations	—			—			(67		)	—			(67		)
Cash 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