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 that were repaid 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 March 31, 2019
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	202		$	436		$	971		$	(38	)	$	1,571
Expenses:
Operating-related expenses	33			117			327			(38		)	439
Selling and general expenses	30			81			264			—			375
Depreciation	11			2			7			—			20
Amortization of intangibles	—			—			32			—			32
Total expenses	74			200			630			(38		)	866
Operating profit	128			236			341			—			705
Other expense (income), net	107			—			(4		)	—			103
Interest expense (income), net	38			—			(2		)	—			36
Non-operating intercompany transactions	96			(16		)	(103		)	23			—
Income before taxes on income	(113		)	252			450			(23		)	566
(Benefit) provision for taxes on income	(40		)	70			83			—			113
Equity in net income of subsidiaries	506			—			—			(506		)	—
Net income	$	433		$	182		$	367		$	(529	)	$	453
Less: net income attributable to noncontrolling interests	—			—			—			(43		)	(43		)
Net income attributable to S&P Global Inc.	$	433		$	182		$	367		$	(572	)	$	410
Comprehensive income	$	515		$	182		$	395		$	(530	)	$	562



	Statement of Income
	Three Months Ended March 31, 2018
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	191		$	434		$	977		$	(35	)	$	1,567
Expenses:
Operating-related expenses	25			117			323			(35		)	430
Selling and general expenses	45			87			249			—			381
Depreciation	9			2			10			—			21
Amortization of intangibles	—			—			24			—			24
Total expenses	79			206			606			(35		)	856
Operating profit	112			228			371			—			711
Other (income) expense, net	(7		)	—			3			—			(4		)
Interest expense (income), net	38			—			(4		)	—			34
Non-operating intercompany transactions	100			(20		)	(1,096		)	1,016			—
Income before taxes on income	(19		)	248			1,468			(1,016		)	681
(Benefit) provision for taxes on income	(14		)	71			90			—			147
Equity in net income of subsidiaries	1,512			—			—			(1,512		)	—
Net income	$	1,507		$	177		$	1,378		$	(2,528	)	$	534
Less: net income attributable to noncontrolling interests	—			—			—			(43		)	(43		)
Net income attributable to S&P Global Inc.	$	1,507		$	177		$	1,378		$	(2,571	)	$	491
Comprehensive income	$	1,487		$	177		$	1,412		$	(2,533	)	$	543



	Balance Sheet
	March 31, 2019
	(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	$	146		$	—	$	1,257		$	—		$	1,403
Restricted cash	—			—		33			—			33
Accounts receivable, net of allowance for doubtful accounts	240			208		1,091			—			1,539
Intercompany receivable	1,643			2,896		3,418			(7,957		)	—
Prepaid and other current assets	49			4		154			—			207
Total current assets	2,078			3,108		5,953			(7,957		)	3,182
Property and equipment, net of accumulated depreciation	196			—		72			—			268
Right of use assets	419			1		255			—			675
Goodwill	261			—		3,263			9			3,533
Other intangible assets, net	—			—		1,492			—			1,492
Investments in subsidiaries	10,255			6		8,123			(18,384		)	—
Intercompany loans receivable	131			—		1,606			(1,737		)	—
Other non-current assets	203			47		320			—			570
Total assets	$	13,543		$	3,162	$	21,084		$	(28,069	)	$	9,720
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	83		$	16	$	118		$	—		$	217
Intercompany payable	5,690			897		1,369			(7,956		)	—
Accrued compensation and contributions to retirement plans	86			13		101			—			200
Income taxes currently payable	53			—		81			—			134
Unearned revenue	249			257		1,183			—			1,689
Other current liabilities	183			15		217			—			415
Total current liabilities	6,344			1,198		3,069			(7,956		)	2,655
Long-term debt	3,663			—		—			—			3,663
Lease liabilities — non-current	390			1		226			—			617
Intercompany loans payable	116			—		1,621			(1,737		)	—
Pension and other postretirement benefits	161			—		66			—			227
Other non-current liabilities	132			72		319			—			523
Total liabilities	10,806			1,271		5,301			(9,693		)	7,685
Redeemable noncontrolling interest	—			—		—			1,647			1,647
Equity:
Common stock	294			—		2,372			(2,372		)	294
Additional paid-in capital	4			619		9,789			(9,640		)	772
Retained income	14,292			1,272		4,093			(8,125		)	11,532
Accumulated other comprehensive loss	(216		)	—		(461		)	44			(633		)
Less: common stock in treasury	(11,637		)	—		(11		)	10			(11,638		)
Total equity - controlling interests	2,737			1,891		15,782			(20,083		)	327
Total equity - noncontrolling interests	—			—		1			60			61
Total equity	2,737			1,891		15,783			(20,023		)	388
Total liabilities and equity	$	13,543		$	3,162	$	21,084		$	(28,069	)	$	9,720



	Balance Sheet
	December 31, 2018
(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	$	694		$	—	$	1,223		$	—		$	1,917
Restricted cash	—			—		41			—			41
Accounts receivable, net of allowance for doubtful accounts	163			109		1,177			—			1,449
Intercompany receivable	550			2,138		2,873			(5,561		)	—
Prepaid and other current assets	58			3		136			—			197
Total current assets	1,465			2,250		5,450			(5,561		)	3,604
Property and equipment, net of accumulated depreciation	192			—		78			—			270
Right of use assets	—			—		—			—			—
Goodwill	261			—		3,265			9			3,535
Other intangible assets, net	—			—		1,524			—			1,524
Investments in subsidiaries	8,599			6		8,030			(16,635		)	—
Intercompany loans receivable	130			—		1,643			(1,773		)	—
Other non-current assets	194			45		286			—			525
Total assets	$	10,841		$	2,301	$	20,276		$	(23,960	)	$	9,458
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	89		$	15	$	107		$	—		$	211
Intercompany payable	4,453			32		1,076			(5,561		)	—
Accrued compensation and contributions to retirement plans	125			33		196			—			354
Income taxes currently payable	1			—		71			—			72
Unearned revenue	240			235		1,166			—			1,641
Other current liabilities	180			16		155			—			351
Total current liabilities	5,088			331		2,771			(5,561		)	2,629
Long-term debt	3,662			—		—			—			3,662
Lease liabilities — non-current	—			—		—			—			—
Intercompany loans payable	114			—		1,659			(1,773		)	—
Pension and other postretirement benefits	162			—		67			—			229
Other non-current liabilities	166			75		393			—			634
Total liabilities	9,192			406		4,890			(7,334		)	7,154
Redeemable noncontrolling interest	—			—		—			1,620			1,620
Equity:
Common stock	294			—		2,279			(2,279		)	294
Additional paid-in capital	72			618		9,784			(9,641		)	833
Retained income	12,622			1,277		3,824			(6,439		)	11,284
Accumulated other comprehensive loss	(299		)	—		(489		)	46			(742		)
Less: common stock in treasury	(11,040		)	—		(13		)	12			(11,041		)
Total equity - controlling interests	1,649			1,895		15,385			(18,301		)	628
Total equity - noncontrolling interests	—			—		1			55			56
Total equity	1,649			1,895		15,386			(18,246		)	684
Total liabilities and equity	$	10,841		$	2,301	$	20,276		$	(23,960	)	$	9,458



	Statement of Cash Flows
	Three Months Ended March 31, 2019
	(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	$	433		$	182		$	367		$	(529	)	$	453
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	11			2			7			—			20
Amortization of intangibles	—			—			32			—			32
Provision for losses on accounts receivable	2			2			3			—			7
Deferred income taxes	3			—			7			—			10
Stock-based compensation	2			1			9			—			12
Pension settlement charge, net of taxes	85			—			—			—			85
Other	—			—			8			—			8
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(80		)	(101		)	94			—			(87		)
Prepaid and other current assets	(9		)	(2		)	(23		)	—			(34		)
Accounts payable and accrued expenses	(45		)	(18		)	(98		)	—			(161		)
Unearned revenue	9			23			(35		)	—			(3		)
Accrued legal settlements	—			(1		)	—			—			(1		)
Other current liabilities	(54		)	(1		)	(4		)	—			(59		)
Net change in prepaid/accrued income taxes	69			—			6			—			75
Net change in other assets and liabilities	(19		)	(5		)	(40		)				(64		)
Cash provided by operating activities	407			82			333			(529		)	293
Investing Activities:
Capital expenditures	(8		)	(4		)	(8		)	—			(20		)
Acquisitions, net of cash acquired	—			—			(1		)	—			(1		)
Cash used for investing activities	(8		)	(4		)	(9		)	—			(21		)
Financing Activities:
Dividends paid to shareholders	(141		)	—			—			—			(141		)
Distributions to noncontrolling interest holders, net	—			—			(18		)	—			(18		)
Repurchase of treasury shares	(644		)	—			—			—			(644		)
Exercise of stock options	23			—			—			—			23
Employee withholding tax on share-based payments	(49		)	—			—			—			(49		)
Intercompany financing activities	(130		)	(78		)	(321		)	529			—
Cash used for financing activities	(941		)	(78		)	(339		)	529			(829		)
Effect of exchange rate changes on cash	(6		)	—			41			—			35
Net change in cash, cash equivalents, and restricted cash	(548		)	—			26			—			(522		)
Cash, cash equivalents, and restricted cash at beginning of period	694			—			1,264			—			1,958
Cash, cash equivalents, and restricted cash at end of period	$	146		$	—		$	1,290		$	—		$	1,436



	Statement of Cash Flows
	Three Months Ended March 31, 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	$	1,507		$	177		$	1,378		$	(2,528	)	$	534
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	9			2			10			—			21
Amortization of intangibles	—			—			24			—			24
Provision for losses on accounts receivable	—			2			6			—			8
Deferred income taxes	(75		)	—			90						15
Stock-based compensation	5			3			5			—			13
Other	4			—			(3		)	—			1
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	5			(27		)	29			—			7
Prepaid and other current assets	(18		)	1			(4		)	—			(21		)
Accounts payable and accrued expenses	(60		)	(79		)	(150		)	—			(289		)
Unearned revenue	(4		)	28			3			—			27
Accrued legal settlements	—			—			(29		)	—			(29		)
Other current liabilities	(7		)	(2		)	28			—			19
Net change in prepaid/accrued income taxes	73			1			—			—			74
Net change in other assets and liabilities	(37		)	—			(7		)	—			(44		)
Cash provided by operating activities	1,402			106			1,380			(2,528		)	360
Investing Activities:
Capital expenditures	(23		)	(6		)	(4		)	—			(33		)
Acquisitions, net of cash acquired	—			—			(57		)	—			(57		)
Changes in short-term investments	—			—			3			—			3
Cash used for investing activities	(23		)	(6		)	(58		)	—			(87		)
Financing Activities:
Dividends paid to shareholders	(127		)	—			—			—			(127		)
Distributions to noncontrolling interest holders, net	—			—			(50		)	—			(50		)
Repurchase of treasury shares	(1,100		)	—			—			—			(1,100		)
Exercise of stock options	10			—						—			10
Employee withholding tax on share-based payments	(49		)	—			—			—			(49		)
Intercompany financing activities	(159		)	(100		)	(2,269		)	2,528			—
Cash used for financing activities	(1,425		)	(100		)	(2,319		)	2,528			(1,316		)
Effect of exchange rate changes on cash	(5		)	—			25			—			20
Net change in cash, cash equivalents, and restricted cash	(51		)	—			(972		)	—			(1,023		)
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	$	581		$	—		$	1,175		$	—		$	1,756