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 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 September 30 is as follows:



Revenue	Three Months						Nine Months
(in millions)	2018			2017			2018			2017
Ratings	$	700		$	739		$	2,223		$	2,199
Market Intelligence	464			422			1,349			1,238
Platts	204			193			604			577
Indices	205			187			627			542
Corporate	5			—			10			—
Intersegment elimination ¹	(32		)	(28		)	(92		)	(81		)
Total revenue	$	1,546		$	1,513		$	4,721		$	4,475



Operating Profit	Three Months						Nine Months
(in millions)	2018			2017			2018			2017
Ratings ²	$	395		$	375		$	1,173		$	1,144
Market Intelligence ³	148			123			388			339
Platts ⁴	98			84			285			245
Indices ⁵	134			119			416			352
Total reportable segments	775			701			2,262			2,080
Corporate Unallocated ⁶	(71		)	(52		)	(176		)	(124		)
Total operating profit	$	704		$	649		$	2,086		$	1,956


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 includes legal settlement expenses of $73 million for the nine months ended September 30, 2018. Operating profit includes employee severance charges of $15 million for the three and nine months ended September 30, 2017 and legal settlement expenses of $2 million for the nine months ended September 30, 2017. Operating profit also includes amortization of intangibles from acquisitions of $1 million for the three months ended September 30, 2018 and 2017 and $2 million and $3 million for the nine months ended September 30, 2018 and 2017, respectively.

Operating profit includes restructuring charges related to a business disposition and employee severance charges of $2 million for the three and nine months ended September 30, 2018. Operating profit includes a non-cash disposition-related adjustment of $4 million and employee severance charges of $4 million for the nine months ended September 30, 2017. Operating profit includes amortization of intangibles from acquisitions of $18 million and $17 million for the three months ended September 30, 2018 and 2017, respectively, and $54 million and $52 million for the nine months ended September 30, 2018 and 2017, respectively.

⁴

Operating profit includes amortization of intangibles from acquisitions of $4 million and $5 million for the three months ended September 30, 2018 and 2017, respectively, and $13 million for the nine months ended September 30, 2018 and 2017. Operating profit includes a non-cash acquisition-related adjustment of $11 million, 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 nine months ended September 30, 2017.


⁵	Operating profit includes amortization of intangibles from acquisitions of $2 million and $1 million for the three months ended September 30, 2018 and 2017, respectively, and $5 million and $4 million for the nine months ended September 30, 2018 and 2017, respectively.

⁶

Operating loss for the three and nine months months ended September 30, 2018 includes Kensho retention related expense of $11 million and $23 million, respectively, lease impairments of $11 million and employee severance charges of $7 million. Operating loss also includes amortization of intangibles from acquisitions of $8 million and $17 million for the three and nine months ended September 30, 2018, respectively. Operating loss for the three and nine months ended September 30, 2017 includes employee severance charges of $4 million.

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



(in millions)	Three Months				Nine Months
	2018		2017		2018		2017
U.S.	$	932	$	914	$	2,843	$	2,726
European region	380		361		1,164		1,068
Asia	160		157		475		432
Rest of the world	74		81		239		249
Total	$	1,546	$	1,513	$	4,721	$	4,475

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