Segment and Related Information

We have four reportable segments: Ratings, Market Intelligence, Platts 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 Corporate Unallocated, other income, net, or interest expense, net, as these are amounts that do not affect the operating results of our reportable segments.

In April of 2018, we acquired Kensho for approximately $550 million, net of cash acquired, in a mix of cash and stock. The results of Kensho, an operating segment of the Company, are included in Corporate revenue, Corporate Unallocated expense and Corporate Unallocated for financial reporting purposes. See Note 2 — Acquisitions and Divestitures for additional information.

Effective beginning with the first quarter of 2018, we began reporting the financial results of Market Intelligence and Platts as separate reportable segments consistent with the changes to our organizational structure and how our Chief Executive Officer evaluates the performance of these segments. Our historical segment reporting has been retroactively revised to reflect the current organizational structure.

A summary of operating results for the periods ended June 30 is as follows:



Revenue	Three Months						Six Months
(in millions)	2018			2017			2018			2017
Ratings	$	775		$	747		$	1,523		$	1,461
Market Intelligence	447			414			884			816
Platts	205			192			401			383
Indices	209			184			423			355
Corporate	5			—			5			—
Intersegment elimination ¹	(32		)	(28		)	(60		)	(53		)
Total revenue	$	1,609		$	1,509		$	3,176		$	2,962



Operating Profit	Three Months						Six Months
(in millions)	2018			2017			2018			2017
Ratings ²	$	369		$	395		$	777		$	769
Market Intelligence ³	128			112			240			216
Platts ⁴	98			78			188			160
Indices ⁵	136			119			283			233
Total reportable segments	731			704			1,488			1,378
Corporate Unallocated ⁶	(59		)	(36		)	(105		)	(72		)
Total operating profit	$	672		$	668		$	1,383		$	1,306


¹	Revenue for Ratings and expenses for Market Intelligence include an intersegment royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings.

Operating profit for the three and six months ended June 30, 2018 includes legal settlement expenses of $73 million. Operating profit for the six months ended June 30, 2017 includes legal settlement expenses of $2 million. Operating profit also includes amortization of intangibles from acquisitions of $1 million for the three months ended June 30, 2018 and 2017 and $1 million and $2 million for the six months ended June 30, 2018 and 2017, respectively.

Operating profit includes amortization of intangibles from acquisitions of $18 million for the three months ended June 30, 2018 and 2017 and $36 million and $35 million for the six months ended June 30, 2018 and 2017, respectively. Operating profit includes employee severance charges of $4 million for the three and six months ended June 30, 2017 and a non-cash disposition-related adjustment of $4 million for the six months ended June 30, 2017.

⁴

Operating profit includes amortization of intangibles from acquisitions of $4 million and $5 million for the three months ended June 30, 2018 and 2017, respectively, and $9 million for the six months ended June 30, 2018 and 2017. Operating profit includes a charge to exit a leased facility of $6 million, an asset write-off of $2 million and employee severance charges of $1 million for the three and six months ended June 30, 2017 and a non-cash acquisition-related adjustment of $11 million for the six months ended June 30, 2017.


⁵	Operating profit includes amortization of intangibles from acquisitions of $2 million and $1 million for the three months ended June 30, 2018 and 2017, respectively, and $3 million for the six months ended June 30, 2018 and 2017.


⁶	Operating loss includes Kensho retention related expense of $12 million and amortization of intangibles from acquisitions of $8 million for the three and six months ended June 30, 2018.

The following provides revenue by geographic region for the periods ended June 30:



(in millions)	Three Months				Six Months
	2018		2017		2018		2017
U.S.	$	960	$	921	$	1,911	$	1,812
European region	404		361		785		706
Asia	158		142		315		276
Rest of the world	87		85		165		168
Total	$	1,609	$	1,509	$	3,176	$	2,962

See Note 2 — Acquisitions and Divestitures and Note 10 — Restructuring for additional actions that impacted the segment operating results.