Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Operating Results by Segment

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



Revenue	Three Months						Six Months
(in millions)	2019			2018			2019			2018
Ratings	$	801		$	775		$	1,497		$	1,523
Market Intelligence	487			449			969			889
Platts	213			205			420			401
Indices	235			207			452			418
Corporate	—			5			—			5
Intersegment elimination ¹	(32		)	(32		)	(63		)	(60		)
Total revenue	$	1,704		$	1,609		$	3,275		$	3,176



Operating Profit	Three Months						Six Months
(in millions)	2019			2018			2019			2018
Ratings ²	$	455		$	369		$	818		$	777
Market Intelligence ³	147			127			292			238
Platts ⁴	107			98			201			188
Indices ⁵	162			137			311			285
Total reportable segments	871			731			1,622			1,488
Corporate Unallocated ⁶	(58		)	(59		)	(104		)	(105		)
Total operating profit	$	813		$	672		$	1,518		$	1,383

Note - In the fourth quarter of 2018, Trucost was transferred from Indices to Market Intelligence and historical reporting was retroactively revised to reflect the change.


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.


²	Operating profit includes employee severance charges of $11 million for the three and six months ended June 30, 2019. Operating profit includes legal settlement expenses of $73 million for the three and six months ended June 30, 2018. Operating profit also includes amortization of intangibles from acquisitions of $1 million for the three and six months ended June 30, 2019 and 2018.


³	Operating profit includes employee severance charges of $1 million for the three and six months ended June 30, 2019. Operating profit also includes amortization of intangibles from acquisitions of $19 million and $18 million for the three months ended June 30, 2019 and 2018, respectively, and $37 million and $36 million for the six months ended June 30, 2019 and 2018, respectively.


⁴	Operating profit includes employee severance charges of $1 million for the three and six months ended June 30, 2019. Operating profit also includes amortization of intangibles from acquisitions of $3 million and $4 million for the three months ended June 30, 2019 and 2018, respectively, and $7 million and $9 million for the six months ended June 30, 2019 and 2018, respectively.


⁵	Operating profit for includes amortization of intangibles from acquisitions of $1 million for the three months ended June 30, 2019 and 2018 and $3 million for the six months ended June 30, 2019 and 2018.

⁶

Operating loss includes Kensho retention related expenses of $5 million and $12 million for the three months ended June 30, 2019 and 2018, respectively, and $11 million and $12 million for the six months ended June 30, 2019 and 2018, respectively. Operating loss includes employee severance charges of $7 million and a lease impairment of $5 million for the three and six months ended June 30, 2019. Operating

loss also includes amortization of intangibles from acquisitions of $7 million and $14 million for the three and six months months ended June 30, 2019, respectively, and $8 million for the three and six months ended June 30, 2018

Schedule of Revenue Disaggregated by Type

The following table presents our revenue disaggregated by revenue type:



(in millions)	Ratings		Market Intelligence		Platts		Indices		Corporate		Intersegment Elimination ¹			Total

	Three Months Ended June 30, 2019
Subscription	$	—	$	471	$	195	$	40	$	—	$	—		$	706
Non-transaction	372		—		—		—		—		(32		)	340
Non-subscription / Transaction	429		12		3		—		—		—			444
Asset-linked fees	—		4		—		159		—		—			163
Sales usage-based royalties	—		—		15		36		—		—			51
Total revenue	$	801	$	487	$	213	$	235	$	—	$	(32	)	$	1,704

Timing of revenue recognition
Services transferred at a point in time	$	429	$	12	$	3	$	—	$	—	$	—		$	444
Services transferred over time	372		475		210		235		—		(32		)	1,260
Total revenue	$	801	$	487	$	213	$	235	$	—	$	(32	)	$	1,704

	Six Months Ended June 30, 2019
Subscription	$	—	$	939	$	386	$	80			$	—		$	1,405
Non-transaction	737		—		—		—		—		(63		)	674
Non-subscription / Transaction	760		21		5		—		—		—			786
Asset-linked fees	—		9		—		302		—		—			311
Sales usage-based royalties	—		—		29		70		—		—			99
Total revenue	$	1,497	$	969	$	420	$	452	$	—	$	(63	)	$	3,275

Timing of revenue recognition
Services transferred at a point in time	$	760	$	21	$	5	$	—	$	—	$	—		$	786
Services transferred over time	737		948		415		452		—		(63		)	2,489
Total revenue	$	1,497	$	969	$	420	$	452	$	—	$	(63	)	$	3,275



(in millions)	Ratings		Market Intelligence		Platts		Indices		Corporate		Intersegment Elimination ¹			Total

	Three Months Ended June 30, 2018
Subscription	$	—	$	431	$	188	$	34	$	5	$	—		$	658
Non-transaction	378		—		—		—		—		(32		)	346
Non-subscription / Transaction	397		13		4		—		—		—			414
Asset-linked fees	—		5		—		135		—		—			140
Sales usage-based royalties	—		—		13		38		—		—			51
Total revenue	$	775	$	449	$	205	$	207	$	5	$	(32	)	$	1,609

Timing of revenue recognition
Services transferred at a point in time	$	397	$	13	$	4	$	—	$	—	$	—		$	414
Services transferred over time	378		436		201		207		5		(32		)	1,195
Total revenue	$	775	$	449	$	205	$	207	$	5	$	(32	)	$	1,609

	Six Months Ended June 30, 2018
Subscription	$	—	$	856	$	369	$	64	$	5	$	—		$	1,294
Non-transaction	757		—		—		—		—		(60		)	697
Non-subscription / Transaction	766		23		6		—		—		—			795
Asset-linked fees	—		10		—		265		—		—			275
Sales usage-based royalties	—		—		26		89		—		—			115
Total revenue	$	1,523	$	889	$	401	$	418	$	5	$	(60	)	$	3,176

Timing of revenue recognition
Services transferred at a point in time	$	766	$	23	$	6	$	—	$	—	$	—		$	795
Services transferred over time	757		866		395		418		5		(60		)	2,381
Total revenue	$	1,523	$	889	$	401	$	418	$	5	$	(60	)	$	3,176

Intersegment eliminations primarily consists of a royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings.

Schedule of Revenue by Geographic Region

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



(in millions)	Three Months				Six Months
	2019		2018		2019		2018
U.S.	$	1,023	$	962	$	1,966	$	1,915
European region	415		402		788		782
Asia	177		158		346		314
Rest of the world	89		87		175		165
Total	$	1,704	$	1,609	$	3,275	$	3,176