Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of Statement of Income

	Statement of Income
	Three Months Ended September 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	$	207		$	491		$	1,030		$	(39	)	$	1,689
Expenses:
Operating-related expenses	40			103			334			(39		)	438
Selling and general expenses	50			58			252			—			360
Depreciation	11			3			6			—			20
Amortization of intangibles	—			—			29			—			29
Total expenses	101			164			621			(39		)	847
Gain on dispositions	(49		)	—			—			—			(49		)
Operating profit	155			327			409			—			891
Other (income) expense, net	(5		)	—			13			—			8
Interest expense (income), net	37			—			(5		)	—			32
Non-operating intercompany transactions	100			(6		)	(107		)	13			—
Income before taxes on income	23			333			508			(13		)	851
Provision for taxes on income	16			80			93			—			189
Equity in net income of subsidiaries	622			—			—			(622		)	—
Net income	$	629		$	253		$	415		$	(635	)	$	662
Less: net income attributable to noncontrolling interests	—			—			—			(45		)	(45		)
Net income attributable to S&P Global Inc.	$	629		$	253		$	415		$	(680	)	$	617
Comprehensive income	$	632		$	253		$	376		$	(633	)	$	628

	Statement of Income
	Nine Months Ended September 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	$	617		$	1,416		$	3,047		$	(116	)	$	4,964
Expenses:
Operating-related expenses	126			330			997			(116		)	1,337
Selling and general expenses	124			222			769			—			1,115
Depreciation	33			9			19			—			61
Amortization of intangibles	—			—			92			—			92
Total expenses	283			561			1,877			(116		)	2,605
Gain on dispositions	(49		)	—			—			—			(49		)
Operating profit	383			855			1,170			—			2,408
Other expense, net	96			—			8			—			104
Interest expense (income), net	115			—			(10		)	—			105
Non-operating intercompany transactions	291			(42		)	(1,444		)	1,195			—
Income before taxes on income	(119		)	897			2,616			(1,195		)	2,199
(Benefit) provision for taxes on income	(28		)	239			271			—			482
Equity in net income of subsidiaries	2,868			—			—			(2,868		)	—
Net income	$	2,777		$	658		$	2,345		$	(4,063	)	$	1,717
Less: net income attributable to noncontrolling interests	—			—			—			(135		)	(135		)
Net income attributable to S&P Global Inc.	$	2,777		$	658		$	2,345		$	(4,198	)	$	1,582
Comprehensive income	$	2,869		$	658		$	2,310		$	(4,062	)	$	1,775

	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	30			110			309			(39		)	410
Selling and general expenses	36			79			264			—			379
Depreciation	11			2			7			—			20
Amortization of intangibles	—			—			33			—			33
Total expenses	77			191			613			(39		)	842
Gain on dispositions	—			—			—			—			—
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	105			333			962			(113		)	1,287
Selling and general expenses	145			222			830			—			1,197
Depreciation	31			6			23			—			60
Amortization of intangibles	—			—			91			—			91
Total expenses	281			561			1,906			(113		)	2,635
Gain on dispositions	—			—			—			—			—
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

Schedule of Balance Sheet

	Balance Sheet
	September 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	$	509		$	—	$	1,487		$	—		$	1,996
Restricted cash	—			—		23			—			23
Accounts receivable, net of allowance for doubtful accounts	248			195		1,043			—			1,486
Intercompany receivable	588			2,598		3,798			(6,984		)	—
Prepaid and other current assets	65			—		152			—			217
Total current assets	1,410			2,793		6,503			(6,984		)	3,722
Property and equipment, net of accumulated depreciation	201			1		96			—			298
Right of use assets	415			2		243			—			660
Goodwill	283			—		3,225			7			3,515
Other intangible assets, net	—			—		1,427			—			1,427
Investments in subsidiaries	11,187			6		8,023			(19,216		)	—
Intercompany loans receivable	227			—		1,234			(1,461		)	—
Other non-current assets	215			39		313			(1		)	566
Total assets	$	13,938		$	2,841	$	21,064		$	(27,655	)	$	10,188
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	80		$	8	$	100		$	—		$	188
Intercompany payable	5,637			52		1,295			(6,984		)	—
Accrued compensation and contributions to retirement plans	116			42		169			—			327
Short-term debt	699			—		—			—			699
Income taxes currently payable	33			—		81			—			114
Unearned revenue	275			247		1,092			—			1,614
Other current liabilities	194			20		217			—			431
Total current liabilities	7,034			369		2,954			(6,984		)	3,373
Long-term debt	2,966			—		—			—			2,966
Lease liabilities — non-current	396			1		218			—			615
Intercompany loans payable	209			—		1,251			(1,460		)	—
Pension and other postretirement benefits	160			—		66			—			226
Other non-current liabilities	136			81		365			(1		)	581
Total liabilities	10,901			451		4,854			(8,445		)	7,761
Redeemable noncontrolling interest	—			—		—			2,025			2,025
Equity:
Common stock	294			—		2,378			(2,378		)	294
Additional paid-in capital	60			627		9,664			(9,516		)	835
Retained income	15,041			1,763		4,692			(9,442		)	12,054
Accumulated other comprehensive loss	(206		)	—		(524		)	46			(684		)
Less: common stock in treasury	(12,152		)	—		(1		)	—			(12,153		)
Total equity - controlling interests	3,037			2,390		16,209			(21,290		)	346
Total equity - noncontrolling interests	—			—		1			55			56
Total equity	3,037			2,390		16,210			(21,235		)	402
Total liabilities and equity	$	13,938		$	2,841	$	21,064		$	(27,655	)	$	10,188

	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
Short-term debt	—			—		—			—			—
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

Schedule of Statement of Cash Flows

	Statement of Cash Flows
	Nine Months Ended September 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	$	2,777		$	658		$	2,345		$	(4,063	)	$	1,717
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	33			9			19			—			61
Amortization of intangibles	—			—			92			—			92
Provision for losses on accounts receivable	5			1			11			—			17
Deferred income taxes	4			1			10			—			15
Stock-based compensation	17			9			27			—			53
Gain on dispositions	(49		)	—			—			—			(49		)
Pension settlement charge, net of taxes	85			—			—			—			85
Other	12			6			31			—			49
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(90		)	(86		)	126			—			(50		)
Prepaid and other current assets	(20		)	2			(41		)	—			(59		)
Accounts payable and accrued expenses	(17		)	(1		)	(36		)	—			(54		)
Unearned revenue	35			21			(83		)	—			(27		)
Accrued legal settlements	—			(1		)	—			—			(1		)
Other current liabilities	(62		)	(5		)	(14		)	—			(81		)
Net change in prepaid/accrued income taxes	49			1			8			—			58
Net change in other assets and liabilities	(56		)	(3		)	5						(54		)
Cash provided by operating activities	2,723			612			2,500			(4,063		)	1,772
Investing Activities:
Capital expenditures	(32		)	(3		)	(42		)	—			(77		)
Acquisitions, net of cash acquired	—			—			(25		)	—			(25		)
Proceeds from dispositions	85			—						—			85
Changes in short-term investments	—			—			(3		)	—			(3		)
Cash provided by/(used for) investing activities	53			(3		)	(70		)	—			(20		)
Financing Activities:
Dividends paid to shareholders	(421		)	—			—			—			(421		)
Distributions to noncontrolling interest holders, net	—			—			(100		)	—			(100		)
Repurchase of treasury shares	(1,144		)	—			—			—			(1,144		)
Exercise of stock options	36			—			2			—			38
Employee withholding tax on share-based payments and other	(55		)	—			(2		)	—			(57		)
Intercompany financing activities	(1,377		)	(609		)	(2,077		)	4,063			—
Cash used for financing activities	(2,961		)	(609		)	(2,177		)	4,063			(1,684		)
Effect of exchange rate changes on cash	—			—			(7		)	—			(7		)
Net change in cash, cash equivalents, and restricted cash	(185		)	—			246			—			61
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	$	509		$	—		$	1,510		$	—		$	2,019

	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	31			6			23			—			60
Amortization of intangibles	—			—			91			—			91
Provision for losses on accounts receivable	1			1			14			—			16
Deferred income taxes	(3		)	—			24						21
Stock-based compensation	21			12			40			—			73
Other	36			—			(16		)	—			20
Changes in operating assets and liabilities, net of effect of acquisitions:
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	2,748			556			2,216			(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, net	—			—			(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 and other	(61		)	—			—			—			(61		)
Intercompany financing activities	(968		)	(542		)	(2,609		)	4,119			—
Cash used for financing activities	(2,412		)	(542		)	(2,744		)	4,119			(1,579		)
Effect of exchange rate changes on cash	(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