Condensed Consolidating Financial Statements

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Financial Statements

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 June 30, 2019
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	208		$	489		$	1,047		$	(40	)	$	1,704
Expenses:
Operating-related expenses	46			110			336			(40		)	452
Selling and general expenses	51			83			253			—			387
Depreciation	10			4			7			—			21
Amortization of intangibles	—			—			31			—			31
Total expenses	107			197			627			(40		)	891
Operating profit	101			292			420			—			813
Other income, net	(5		)	—			(1		)	—			(6		)
Interest expense (income), net	40			—			(3		)	—			37
Non-operating intercompany transactions	95			(20		)	(1,234		)	1,159			—
Income before taxes on income	(29		)	312			1,658			(1,159		)	782
(Benefit) provision for taxes on income	(3		)	89			94			—			180
Equity in net income of subsidiaries	1,741			—			—			(1,741		)	—
Net income	$	1,715		$	223		$	1,564		$	(2,900	)	$	602
Less: net income attributable to noncontrolling interests	—			—			—			(47		)	(47		)
Net income attributable to S&P Global Inc.	$	1,715		$	223		$	1,564		$	(2,947	)	$	555
Comprehensive income	$	1,721		$	223		$	1,540		$	(2,900	)	$	584

	Statement of Income
	Six Months Ended June 30, 2019
	(Unaudited)
(in millions)	S&P Global Inc.			Standard & Poor's Financial Services LLC			Non-Guarantor Subsidiaries			Eliminations			S&P Global Inc. Consolidated
Revenue	$	409		$	925		$	2,018		$	(77	)	$	3,275
Expenses:
Operating-related expenses	85			228			662			(77		)	898
Selling and general expenses	75			163			517			—			755
Depreciation	22			6			13			—			41
Amortization of intangibles	—			—			63			—			63
Total expenses	182			397			1,255			(77		)	1,757
Operating profit	227			528			763			—			1,518
Other expense (income), net	102			—			(5		)	—			97
Interest expense (income), net	77			—			(4		)	—			73
Non-operating intercompany transactions	191			(37		)	(1,336		)	1,182			—
Income before taxes on income	(143		)	565			2,108			(1,182		)	1,348
(Benefit) provision for taxes on income	(43		)	159			177			—			293
Equity in net income of subsidiaries	2,247			—			—			(2,247		)	—
Net income	$	2,147		$	406		$	1,931		$	(3,429	)	$	1,055
Less: net income attributable to noncontrolling interests	—			—			—			(90		)	(90		)
Net income attributable to S&P Global Inc.	$	2,147		$	406		$	1,931		$	(3,519	)	$	965
Comprehensive income	$	2,235		$	406		$	1,935		$	(3,430	)	$	1,146

	Statement of Income
	Three Months Ended June 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	$	200		$	463		$	985		$	(39	)	$	1,609
Expenses:
Operating-related expenses	43			107			330			(39		)	441
Selling and general expenses	69			57			318			—			444
Depreciation	11			2			6			—			19
Amortization of intangibles	—			—			33			—			33
Total expenses	123			166			687			(39		)	937
Operating profit	77			297			298			—			672
Other income, net	(6		)	—			(5		)	—			(11		)
Interest expense (income), net	28			—			(2		)	—			26
Non-operating intercompany transactions	86			(22		)	(358		)	294			—
Income before taxes on income	(31		)	319			663			(294		)	657
Provision for taxes on income	27			75			54			—			156
Equity in net income of subsidiaries	812			—			—			(812		)	—
Net income	$	754		$	244		$	609		$	(1,106	)	$	501
Less: net income attributable to noncontrolling interests	—			—			—			(40		)	(40		)
Net income attributable to S&P Global Inc.	$	754		$	244		$	609		$	(1,146	)	$	461
Comprehensive income	$	764		$	244		$	521		$	(1,103	)	$	426

	Statement of Income
	Six Months Ended June 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	$	391		$	897		$	1,962		$	(74	)	$	3,176
Expenses:
Operating-related expenses	74			224			653			(74		)	877
Selling and general expenses	108			143			568			—			819
Depreciation	20			4			16			—			40
Amortization of intangibles	—			—			57			—			57
Total expenses	202			371			1,294			(74		)	1,793
Operating profit	189			526			668			—			1,383
Other income, net	(14		)	—			(2		)	—			(16		)
Interest expense (income), net	66			1			(6		)	—			61
Non-operating intercompany transactions	186			(43		)	(1,454		)	1,311			—
Income before taxes on income	(49		)	568			2,130			(1,311		)	1,338
Provision for taxes on income	13			146			144			—			303
Equity in net income of subsidiaries	2,324			—			—			(2,324		)	—
Net income	$	2,262		$	422		$	1,986		$	(3,635	)	$	1,035
Less: net income attributable to noncontrolling interests	—			—			—			(84		)	(84		)
Net income attributable to S&P Global Inc.	$	2,262		$	422		$	1,986		$	(3,719	)	$	951
Comprehensive income	$	2,251		$	421		$	1,932		$	(3,635	)	$	969

	Balance Sheet
	June 30, 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	$	556		$	—	$	1,325		$	—		$	1,881
Restricted cash	—			—		39			—			39
Accounts receivable, net of allowance for doubtful accounts	269			195		1,079			—			1,543
Intercompany receivable	585			2,330		3,281			(6,196		)	—
Prepaid and other current assets	45			—		186			—			231
Total current assets	1,455			2,525		5,910			(6,196		)	3,694
Property and equipment, net of accumulated depreciation	205			—		75			—			280
Right of use assets	404			2		263			—			669
Goodwill	261			—		3,251			7			3,519
Other intangible assets, net	—			—		1,453			—			1,453
Investments in subsidiaries	10,631			6		8,008			(18,645		)	—
Intercompany loans receivable	137			—		1,137			(1,274		)	—
Other non-current assets	208			43		320			(1		)	570
Total assets	$	13,301		$	2,576	$	20,417		$	(26,109	)	$	10,185
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	100		$	7	$	107		$	—		$	214
Intercompany payable	5,107			55		1,034			(6,196		)	—
Accrued compensation and contributions to retirement plans	108			27		134			—			269
Income taxes currently payable	18			—		70			—			88
Unearned revenue	268			259		1,182			—			1,709
Other current liabilities	187			20		212			—			419
Total current liabilities	5,788			368		2,739			(6,196		)	2,699
Long-term debt	3,664			—		—			—			3,664
Lease liabilities — non-current	386			1		234			—			621
Intercompany loans payable	120			—		1,154			(1,274		)	—
Pension and other postretirement benefits	162			—		68			—			230
Other non-current liabilities	131			76		304			—			511
Total liabilities	10,251			445		4,499			(7,470		)	7,725
Redeemable noncontrolling interest	—			—		—			1,890			1,890
Equity:
Common stock	294			—		2,371			(2,371		)	294
Additional paid-in capital	26			622		9,679			(9,537		)	790
Retained income	14,569			1,509		4,353			(8,721		)	11,710
Accumulated other comprehensive loss	(209		)	—		(485		)	43			(651		)
Less: common stock in treasury	(11,630		)	—		(1		)	—			(11,631		)
Total equity - controlling interests	3,050			2,131		15,917			(20,586		)	512
Total equity - noncontrolling interests	—			—		1			57			58
Total equity	3,050			2,131		15,918			(20,529		)	570
Total liabilities and equity	$	13,301		$	2,576	$	20,417		$	(26,109	)	$	10,185

	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
	Six Months Ended June 30, 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	$	2,147		$	406		$	1,931		$	(3,429	)	$	1,055
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	22			6			13			—			41
Amortization of intangibles	—			—			63			—			63
Provision for losses on accounts receivable	3			3			6			—			12
Deferred income taxes	4			1			7			—			12
Stock-based compensation	9			4			20			—			33
Pension settlement charge, net of taxes	85			—			—			—			85
Other	8			7			23			—			38
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(109		)	(88		)	102			—			(95		)
Prepaid and other current assets	(1		)	2			(43		)	—			(42		)
Accounts payable and accrued expenses	1			(13		)	(62		)	—			(74		)
Unearned revenue	28			27			(55		)	—			—
Accrued legal settlements	—			(1		)	—			—			(1		)
Other current liabilities	(57		)	(3		)	(23		)	—			(83		)
Net change in prepaid/accrued income taxes	33			—			—			—			33
Net change in other assets and liabilities	(26		)	(4		)	(37		)				(67		)
Cash provided by operating activities	2,147			347			1,945			(3,429		)	1,010
Investing Activities:
Capital expenditures	(25		)	(3		)	(18		)	—			(46		)
Acquisitions, net of cash acquired	—			—			(4		)	—			(4		)
Changes in short-term investments	—			—			(3		)	—			(3		)
Cash used for investing activities	(25		)	(3		)	(25		)	—			(53		)
Financing Activities:
Dividends paid to shareholders	(281		)	—			—			—			(281		)
Distributions to noncontrolling interest holders, net	—			—			(59		)	—			(59		)
Repurchase of treasury shares	(644		)	—			—			—			(644		)
Exercise of stock options	29			—			2			—			31
Employee withholding tax on share-based payments and other	(53		)	—			(2		)	—			(55		)
Intercompany financing activities	(1,311		)	(344		)	(1,774		)	3,429			—
Cash used for financing activities	(2,260		)	(344		)	(1,833		)	3,429			(1,008		)
Effect of exchange rate changes on cash	—			—			13			—			13
Net change in cash, cash equivalents, and restricted cash	(138		)	—			100			—			(38		)
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	$	556		$	—		$	1,364		$	—		$	1,920

	Statement of Cash Flows
	Six Months Ended June 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	$	2,262		$	422		$	1,986		$	(3,635	)	$	1,035
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	20			4			16			—			40
Amortization of intangibles	—			—			57			—			57
Provision for losses on accounts receivable	—			1			9			—			10
Deferred income taxes	(86		)	—			108						22
Stock-based compensation	14			8			24			—			46
Other	19			—			61			—			80
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(6		)	(29		)	54			—			19
Prepaid and other current assets	(20		)	1			—			—			(19		)
Accounts payable and accrued expenses	(48		)	(68		)	(101		)	—			(217		)
Unearned revenue	9			30			2			—			41
Accrued legal settlements				—			(29		)	—			(29		)
Other current liabilities	20			(4		)	(85		)	—			(69		)
Net change in prepaid/accrued income taxes	24			1			(1		)	—			24
Net change in other assets and liabilities	(27		)	2			(112		)	—			(137		)
Cash provided by operating activities	2,181			368			1,989			(3,635		)	903
Investing Activities:
Capital expenditures	(43		)	(10		)	(7		)	—			(60		)
Acquisitions, net of cash acquired	—			—			(246		)	—			(246		)
Changes in short-term investments	—			—			1			—			1
Cash used for investing activities	(43		)	(10		)	(252		)	—			(305		)
Financing Activities:
Proceeds from issuance of senior notes, net	489			—			—			—			489
Payments on senior notes	(403		)	—			—			—			(403		)
Dividends paid to shareholders	(253		)	—			—			—			(253		)
Distributions to noncontrolling interest holders, net	—			—			(78		)	—			(78		)
Purchase of CRISIL shares	—			—			(25		)	—			(25		)
Repurchase of treasury shares	(1,100		)	—			—			—			(1,100		)
Exercise of stock options	14			—			2			—			16
Employee withholding tax on share-based payments and other	(50		)	—			—			—			(50		)
Intercompany financing activities	(701		)	(358		)	(2,576		)	3,635			—
Cash used for financing activities	(2,004		)	(358		)	(2,677		)	3,635			(1,404		)
Effect of exchange rate changes on cash	1			—			(39		)	—			(38		)
Net change in cash, cash equivalents, and restricted cash	135			—			(979		)	—			(844		)
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	$	767		$	—		$	1,168		$	—		$	1,935