Condensed Consolidating Financial Statements

On May 17, 2018, we issued $500 million of 4.5% notes due in 2048. 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 September 30, 2018
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	196		$	422		$	967		$	(39	)	$	1,546
Expenses:
Operating-related expenses	26			110			309			(39		)	406
Selling and general expenses	42			79			262			—			383
Depreciation	9			2			9			—			20
Amortization of intangibles	—			—			33			—			33
Total expenses	77			191			613			(39		)	842
Operating profit	119			231			354			—			704
Other income, net	(5		)	—			(1		)	—			(6		)
Interest expense (income), net	39			1			(2		)	—			38
Non-operating intercompany transactions	90			(11		)	(83		)	4			—
Income before taxes on income	(5		)	241			440			(4		)	672
(Benefit) provision for taxes on income	(65		)	94			108			—			137
Equity in net income of subsidiaries	440			—			—			(440		)	—
Net income	$	500		$	147		$	332		$	(444	)	$	535
Less: net income attributable to noncontrolling interests	—			—			—			(40		)	(40		)
Net income attributable to S&P Global Inc.	$	500		$	147		$	332		$	(484	)	$	495
Comprehensive income	$	490		$	147		$	341		$	(441	)	$	537



	Statement of Income
	Nine Months Ended September 30, 2018
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	587		$	1,318		$	2,929		$	(113	)	$	4,721
Expenses:
Operating-related expenses	108			333			962			(113		)	1,290
Selling and general expenses	149			222			823			—			1,194
Depreciation	24			6			30			—			60
Amortization of intangibles	—			—			91			—			91
Total expenses	281			561			1,906			(113		)	2,635
Operating profit	306			757			1,023			—			2,086
Other income, net	(21		)	—			(1		)	—			(22		)
Interest expense (income), net	105			2			(9		)	—			98
Non-operating intercompany transactions	277			(54		)	(1,538		)	1,315			—
Income before taxes on income	(55		)	809			2,571			(1,315		)	2,010
(Benefit) provision for taxes on income	(52		)	240			252			—			440
Equity in net income of subsidiaries	2,804			—			—			(2,804		)	—
Net income	$	2,801		$	569		$	2,319		$	(4,119	)	$	1,570
Less: net income attributable to noncontrolling interests	—			—			—			(123		)	(123		)
Net income attributable to S&P Global Inc.	$	2,801		$	569		$	2,319		$	(4,242	)	$	1,447
Comprehensive income	$	2,781		$	569		$	2,274		$	(4,118	)	$	1,506



	Statement of Income
	Three Months Ended September 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	$	184		$	435		$	929		$	(35	)	$	1,513
Expenses:
Operating-related expenses	6			124			324			(35		)	419
Selling and general expenses	70			101			228			—			399
Depreciation	9			3			10			—			22
Amortization of intangibles	—			—			24			—			24
Total expenses	85			228			586			(35		)	864
Operating profit	99			207			343			—			649
Other income, net	(6		)	—			(3		)	—			(9		)
Interest expense (income), net	41			—			(4		)	—			37
Non-operating intercompany transactions	91			(13		)	(91		)	13			—
Income before taxes on income	(27		)	220			441			(13		)	621
(Benefit) provision for taxes on income	(45		)	107			107			—			169
Equity in net income of subsidiaries	409			—			—			(409		)	—
Net income	$	427		$	113		$	334		$	(422	)	$	452
Less: net income attributable to noncontrolling interests	—			—			—			(38		)	(38		)
Net income attributable to S&P Global Inc.	$	427		$	113		$	334		$	(460	)	$	414
Comprehensive income	$	405		$	113		$	382		$	(427	)	$	473



	Statement of Income
	Nine Months Ended September 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	$	545		$	1,320		$	2,712		$	(102	)	$	4,475
Expenses:
Operating-related expenses	58			359			947			(102		)	1,262
Selling and general expenses	146			273			704			—			1,123
Depreciation	23			9			29			—			61
Amortization of intangibles	—			—			73			—			73
Total expenses	227			641			1,753			(102		)	2,519
Operating profit	318			679			959			—			1,956
Other income, net	(18		)	—			(8		)	—			(26		)
Interest expense (income), net	119			—			(9		)	—			110
Non-operating intercompany transactions	270			(55		)	(1,717		)	1,502			—
Income before taxes on income	(53		)	734			2,693			(1,502		)	1,872
(Benefit) provision for taxes on income	(91		)	325			299			—			533
Equity in net income of subsidiaries	2,697			—			—			(2,697		)	—
Net income	$	2,735		$	409		$	2,394		$	(4,199	)	$	1,339
Less: net income attributable to noncontrolling interests	—			—			—			(105		)	(105		)
Net income attributable to S&P Global Inc.	$	2,735		$	409		$	2,394		$	(4,304	)	$	1,234
Comprehensive income	$	2,724		$	409		$	2,500		$	(4,199	)	$	1,434



	Balance Sheet
	September 30, 2018
	(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	$	891		$	—		$	1,267		$	—		$	2,158
Restricted cash	—			—			45			—			45
Accounts receivable, net of allowance for doubtful accounts	128			166			943			—			1,237
Intercompany receivable	567			1,929			2,819			(5,315		)	—
Prepaid and other current assets	86			(3		)	105			—			188
Total current assets	1,672			2,092			5,179			(5,315		)	3,628
Property and equipment, net of accumulated depreciation	192			—			83			—			275
Goodwill	261			—			3,274			9			3,544
Other intangible assets, net	—			—			1,420			—			1,420
Investments in subsidiaries	7,971			6			7,997			(15,974		)	—
Intercompany loans receivable	124			—			1,771			(1,895		)	—
Other non-current assets	226			44			246			—			516
Total assets	$	10,446		$	2,142		$	19,970		$	(23,175	)	$	9,383
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	81		$	18		$	95		$	—		$	194
Intercompany payable	4,168			55			1,092			(5,315		)	—
Accrued compensation and contributions to retirement plans	112			35			160			—			307
Income taxes currently payable	9			—			83			—			92
Unearned revenue	272			242			1,062			—			1,576
Other current liabilities	192			12			144			—			348
Total current liabilities	4,834			362			2,636			(5,315		)	2,517
Long-term debt	3,661			—			—			—			3,661
Intercompany loans payable	109			—			1,786			(1,895		)	—
Pension and other postretirement benefits	176			—			49			—			225
Other non-current liabilities	210			60			267			—			537
Total liabilities	8,990			422			4,738			(7,210		)	6,940
Redeemable noncontrolling interest	—			—			—			1,485			1,485
Equity:
Common stock	412			—			2,275			(2,275		)	412
Additional paid-in capital	155			614			10,223			(10,095		)	897
Retained income	11,882			1,106			3,209			(5,194		)	11,003
Accumulated other comprehensive loss	(290		)	—			(461		)	48			(703		)
Less: common stock in treasury	(10,703		)	—			(15		)	14			(10,704		)
Total equity - controlling interests	1,456			1,720			15,231			(17,502		)	905
Total equity - noncontrolling interests	—			—			1			52			53
Total equity	1,456			1,720			15,232			(17,450		)	958
Total liabilities and equity	$	10,446		$	2,142		$	19,970		$	(23,175	)	$	9,383



	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		$	—		$	2,145		$	—		$	2,777
Restricted cash	—			—			2			—			2
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



	Statement of Cash Flows
	Nine Months Ended September 30, 2018
	(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	$	2,801		$	569		$	2,319		$	(4,119	)	$	1,570
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	24			6			30			—			60
Amortization of intangibles	—			—			91			—			91
Provision for losses on accounts receivable	1			1			14			—			16
Stock-based compensation	21			12			40			—			73
Other	33			—			8						41
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	10			(15		)	67						62
Prepaid and other current assets	(11		)	1			11			—			1
Accounts payable and accrued expenses	(31		)	(58		)	(78		)				(167		)
Unearned revenue	(20		)	23			(75		)				(72		)
Accrued legal settlements	—			—			(180		)	—			(180		)
Other current liabilities	(15		)	(8		)	5						(18		)
Net change in prepaid/accrued income taxes	51			2			9			—			62
Net change in other assets and liabilities	(123		)	23			(38		)				(138		)
Cash provided by operating activities	2,741			556			2,223			(4,119		)	1,401
Investing Activities:
Capital expenditures	(63		)	(14		)	(11		)	—			(88		)
Acquisitions, net of cash acquired	—			—			(263		)	—			(263		)
Changes in short-term investments	—			—			5			—			5
Cash used for investing activities	(63		)	(14		)	(269		)	—			(346		)
Financing Activities:
Proceeds from issuance of senior notes, net	489			—			—			—			489
Payments on senior notes	(403		)	—			—			—			(403		)
Dividends paid to shareholders	(379		)	—			—			—			(379		)
Distributions to noncontrolling interest holders	—			—			(116		)	—			(116		)
Purchase of CRISIL shares	—			—			(25		)	—			(25		)
Repurchase of treasury shares	(1,108		)	—			—			—			(1,108		)
Exercise of stock options	18			—			6			—			24
Employee withholding tax on share-based payments	(61		)	—			—			—			(61		)
Intercompany financing activities	(961		)	(542		)	(2,616		)	4,119			—
Cash used for financing activities	(2,405		)	(542		)	(2,751		)	4,119			(1,579		)
Effect of exchange rate changes on cash from continuing operations	(14		)	—			(38		)	—			(52		)
Net change in cash, cash equivalents, and restricted cash	259			—			(835		)	—			(576		)
Cash, cash equivalents, and restricted cash at beginning of period	632			—			2,147			—			2,779
Cash, cash equivalents, and restricted cash at end of period	$	891		$	—		$	1,312		$	—		$	2,203



	Statement of Cash Flows
	Nine Months Ended September 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	$	2,735		$	409		$	2,394		$	(4,199	)	$	1,339
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	24			9			28			—			61
Amortization of intangibles	—			—			73			—			73
Provision for losses on accounts receivable	1			2			14			—			17
Stock-based compensation	23			15			27			—			65
Other	27			15			—			—			42
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(2		)	(73		)	11			—			(64		)
Prepaid and other current assets	(8		)	2			9			—			3
Accounts payable and accrued expenses	(19		)	56			(87		)	—			(50		)
Unearned revenue	14			17			(138		)	—			(107		)
Accrued legal settlements	—			(1		)	(3		)	—			(4		)
Other current liabilities	(42		)	(11		)	(41		)	—			(94		)
Net change in prepaid/accrued income taxes	(27		)	(18		)	3			—			(42		)
Net change in other assets and liabilities	(42		)	(5		)	11			—			(36		)
Cash provided by operating activities	2,684			417			2,301			(4,199		)	1,203
Investing Activities:
Capital expenditures	(34		)	(17		)	(26		)	—			(77		)
Acquisitions, net of cash acquired	—			—			(80		)	—			(80		)
Proceeds from dispositions	—			—			2			—			2
Cash used for investing activities	(34		)	(17		)	(104		)	—			(155		)
Financing Activities:
Dividends paid to shareholders	(316		)	—			—			—			(316		)
Distributions to noncontrolling interest holders	—			—			(69		)	—			(69		)
Repurchase of treasury shares	(846		)	—			—			—			(846		)
Exercise of stock options	63			—			6			—			69
Employee withholding tax on share-based payments	(49		)	—			—			—			(49		)
Intercompany financing activities	(1,960		)	(400		)	(1,839		)	4,199			—
Cash used for financing activities	(3,108		)	(400		)	(1,902		)	4,199			(1,211		)
Effect of exchange rate changes on cash from continuing operations	(10		)	—			93			—			83
Net change in cash, cash equivalents, and restricted cash	(468		)	—			388			—			(80		)
Cash, cash equivalents, and restricted cash at beginning of period	711			—			1,681			—			2,392
Cash, cash equivalents, and restricted cash at end of period	$	243		$	—		$	2,069		$	—		$	2,312