XML 63 R33.htm IDEA: XBRL DOCUMENT v3.19.3
Segment and Related Information (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Schedule of Operating Results by Segment
A summary of operating results for the periods ended September 30 is as follows: 
Revenue
Three Months

Nine Months
(in millions)
2019

2018

2019

2018
Ratings
$
789


$
700


$
2,286


$
2,223

Market Intelligence
488


466


1,457


1,355

Platts
212


204


632


604

Indices
232


203


684


621

Corporate
—


5


—


10

Intersegment elimination 1
(32
)

(32
)

(95
)

(92
)
Total revenue
$
1,689


$
1,546


$
4,964


$
4,721

Operating Profit
Three Months
 
Nine Months
(in millions)
2019
 
2018
 
2019
 
2018
Ratings 2
$
472

 
$
395

 
$
1,290

 
$
1,173

Market Intelligence 3
171

 
147

 
462

 
384

Platts 4
132

 
98

 
333

 
285

Indices 5
161

 
135

 
473

 
420

Total reportable segments
936

 
775

 
2,558

 
2,262

Corporate Unallocated 6
(45
)
 
(71
)
 
(150
)
 
(176
)
Total operating profit
$
891

 
$
704

 
$
2,408

 
$
2,086

 
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 nine months ended September 30, 2019. Operating profit includes legal settlement expenses of $73 million for the nine months ended September 30, 2018. Operating profit also includes amortization of intangibles from acquisitions of $1 million for the three months ended September 30, 2018 and $2 million for the nine months ended September 30, 2019 and 2018.
3 
As of July 1, 2019, we completed the sale of SPIAS and the results are included in Market Intelligence results through that date. Operating profit includes a gain on the sale of SPAIS of $22 million for the three and nine months ended September 30, 2019. Operating profit includes employee severance charges of $1 million for the nine months ended September 30, 2019. 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 also includes amortization of intangibles from acquisitions of $19 million for the three months ended September 30, 2019 and 2018, and $56 million and $55 million for the nine months ended September 30, 2019 and 2018, respectively.
4 
As of July 31, 2019, we completed the sale of RigData and the results are included in Platts results through that date. Operating profit includes a gain on the sale of RigData of $27 million for the three and nine months ended September 30, 2019. Operating profit includes employee severance charges of $1 million for the nine months ended September 30, 2019. Operating profit also includes amortization of intangibles from acquisitions of $2 million and $4 million for the three months ended September 30, 2019 and 2018, respectively, and $9 million and $13 million for the nine months ended September 30, 2019 and 2018, respectively.
5 
Operating profit for includes amortization of intangibles from acquisitions of $1 million for the three months ended September 30, 2019 and 2018 and $4 million for the nine months ended September 30, 2019 and 2018.
6 
Operating loss includes Kensho retention related expenses of $6 million and $11 million for the three months ended September 30, 2019 and 2018, respectively, and $17 million and $23 million for the nine months ended September 30, 2019 and 2018, respectively. Operating loss includes employee severance charges of $7 million and a lease impairment of $5 million for the nine months ended September 30, 2019 and lease impairments of $11 million and employee severance charges of $7 million for the three and nine months ended September 30, 2018. Operating loss also includes amortization of intangibles from acquisitions of $7 million and $21 million for the three and nine months ended September 30, 2019, respectively, and $8 million and $17 million for the three and nine months ended September 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 September 30, 2019
Subscription
$
—

 
$
477

 
$
194

 
$
42

 
$
—

 
$
—

 
$
713

Non-transaction
387

 
—

 
—

 
—

 
—

 
(32
)
 
355

Non-subscription / Transaction
402

 
10

 
2

 
—

 
—

 
—

 
414

Asset-linked fees
—

 
1

 
—

 
152

 
—

 
—

 
153

Sales usage-based royalties
—

 
—

 
16

 
38

 
—

 
—

 
54

Total revenue
$
789

 
$
488

 
$
212

 
$
232

 
$
—

 
$
(32
)
 
$
1,689

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Timing of revenue recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
Services transferred at a point in time
$
402

 
$
10

 
$
2

 
$
—

 
$
—

 
$
—

 
$
414

Services transferred over time
387

 
478

 
210

 
232

 
—

 
(32
)
 
1,275

Total revenue
$
789

 
$
488

 
$
212

 
$
232

 
$
—

 
$
(32
)
 
$
1,689

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2019
Subscription
$
—

 
$
1,416

 
$
579

 
$
122

 


 
$
—

 
$
2,117

Non-transaction
1,138

 
—

 
—

 
—

 
—

 
(95
)
 
1,043

Non-subscription / Transaction
1,148

 
31

 
8

 
—

 
—

 
—

 
1,187

Asset-linked fees
—

 
10

 
—

 
454

 
—

 
—

 
464

Sales usage-based royalties
—

 
—

 
45

 
108

 
—

 
—

 
153

Total revenue
$
2,286

 
$
1,457

 
$
632

 
$
684

 
$
—

 
$
(95
)
 
$
4,964

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Timing of revenue recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
Services transferred at a point in time
$
1,148

 
$
31

 
$
8

 
$
—

 
$
—

 
$
—

 
$
1,187

Services transferred over time
1,138

 
1,426

 
624

 
684

 
—

 
(95
)
 
3,777

Total revenue
$
2,286

 
$
1,457

 
$
632

 
$
684

 
$
—

 
$
(95
)
 
$
4,964

(in millions)
Ratings
 
Market Intelligence
 
Platts
 
Indices
 
Corporate
 
Intersegment Elimination 1
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
Subscription
$
—

 
$
453

 
$
188

 
$
39

 
$
5

 
$
—

 
$
685

Non-transaction
379

 
—

 
—

 
—

 
—

 
(32
)
 
347

Non-subscription / Transaction
321

 
8

 
2

 
—

 
—

 
—

 
331

Asset-linked fees
—

 
5

 
—

 
131

 
—

 
—

 
136

Sales usage-based royalties
—

 
—

 
14

 
33

 
—

 
—

 
47

Total revenue
$
700

 
$
466

 
$
204

 
$
203

 
$
5

 
$
(32
)
 
$
1,546

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Timing of revenue recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
Services transferred at a point in time
$
321

 
$
8

 
$
2

 
$
—

 
$
—

 
$
—

 
$
331

Services transferred over time
379

 
458

 
202

 
203

 
5

 
(32
)
 
1,215

Total revenue
$
700

 
$
466

 
$
204

 
$
203

 
$
5

 
$
(32
)
 
$
1,546

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
Subscription
$
—

 
$
1,309

 
$
556

 
$
103

 
$
10

 
$
—

 
$
1,978

Non-transaction
1,150

 
—

 
—

 
—

 
—

 
(92
)
 
1,058

Non-subscription / Transaction
1,073

 
31

 
8

 
—

 
—

 
—

 
1,112

Asset-linked fees
—

 
15

 
—

 
396

 
—

 
—

 
411

Sales usage-based royalties
—

 
—

 
40

 
122

 
—

 
—

 
162

Total revenue
$
2,223

 
$
1,355

 
$
604

 
$
621

 
$
10

 
$
(92
)
 
$
4,721

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Timing of revenue recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
Services transferred at a point in time
$
1,073

 
$
31

 
$
8

 
$
—

 
$
—

 
$
—

 
$
1,112

Services transferred over time
1,150

 
1,324

 
596

 
621

 
10

 
(92
)
 
3,609

Total revenue
$
2,223

 
$
1,355

 
$
604

 
$
621

 
$
10

 
$
(92
)
 
$
4,721

1 
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 September 30:
(in millions)
Three Months
 
Nine Months
 
2019
 
2018
 
2019
 
2018
U.S.
$
1,013

 
$
934

 
$
2,974

 
$
2,850

European region
419

 
378

 
1,212

 
1,159

Asia
174

 
160

 
522

 
473

Rest of the world
83

 
74

 
256

 
239

Total
$
1,689

 
$
1,546

 
$
4,964

 
$
4,721