XML 37 R22.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidating Financial Statements
 6 Months Ended
Jun. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements
On November 26, 2019, we issued $500 million of 2.5% senior notes due in 2029 and $600 million of 3.25% senior notes due in 2049. In the fourth quarter of 2019, we used the net proceeds to fund the redemption of the $700 million outstanding principal amount of our 3.3% senior notes due in August of 2020 and a portion of the $400 million outstanding principal amount of our 6.55% senior notes due in October of 2037. 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, 2020
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Revenue$214  $651  $1,121  $(43) $1,943  
Expenses:
Operating-related expenses
26  108  400  (41) 493  
Selling and general expenses
9  66  222  (2) 295  
Depreciation
10  3  6  —  19  
Amortization of intangibles
—  —  32  —  32  
Total expenses
45  177  660  (43) 839  
Gain on disposition—  —  (1) —  (1) 
Operating profit169  474  462  —  1,105  
Other (income) expense, net
(3) —  (7) —  (10) 
Interest expense (income), net
40  1  (1) —  40  
Non-operating intercompany transactions
95  (7) (769) 681  —  
Income before taxes on income
37  480  1,239  (681) 1,075  
(Benefit) provision for taxes on income
(25) 122  136  —  233  
Equity in net income of subsidiaries
1,411  —  —  (1,411) —  
Net income$1,473  $358  $1,103  $(2,092) $842  
Less: net income attributable to noncontrolling interests
—  —  —  (50) (50) 
Net income attributable to S&P Global Inc.
$1,473  $358  $1,103  $(2,142) $792  
Comprehensive income
$1,417  $358  $1,114  $(2,091) $798  
Statement of Income
Six Months Ended June 30, 2020
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Revenue$427  $1,176  $2,209  $(83) $3,729  
Expenses:
Operating-related expenses
57  226  812  (81) 1,014  
Selling and general expenses
84  93  431  (2) 606  
Depreciation
20  5  14  —  39  
Amortization of intangibles
—  —  61  —  61  
Total expenses
161  324  1,318  (83) 1,720  
Gain on disposition—  —  (8) —  (8) 
Operating profit266  852  899  —  2,017  
Other income, net
(8) —  (1) —  (9) 
Interest expense (income), net
77  1  (4) —  74  
Non-operating intercompany transactions
198  (20) (1,333) 1,155  —  
Income before taxes on income
(1) 871  2,237  (1,155) 1,952  
(Benefit) provision for taxes on income
(9) 213  217  —  421  
Equity in net income of subsidiaries
2,578  —  —  (2,578) —  
Net income$2,586  $658  $2,020  $(3,733) $1,531  
Less: net income attributable to noncontrolling interests
—  —  —  (100) (100) 
Net income attributable to S&P Global Inc.
$2,586  $658  $2,020  $(3,833) $1,431  
Comprehensive income
$2,564  $658  $1,962  $(3,733) $1,451  
Statement of Income
Three Months Ended June 30, 2019
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Revenue$208  $489  $1,047  $(40) $1,704  
Expenses:
Operating-related expenses
65  110  336  (40) 471  
Selling and general expenses
32  83  253  —  368  
Depreciation
10  4  7  —  21  
Amortization of intangibles
—  —  31  —  31  
Total expenses
107  197  627  (40) 891  
Operating profit101  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 LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Revenue$409  $925  $2,018  $(77) $3,275  
Expenses:
Operating-related expenses
131  227  663  (77) 944  
Selling and general expenses
29  164  516  —  709  
Depreciation
22  6  13  —  41  
Amortization of intangibles
—  —  63  —  63  
Total expenses
182  397  1,255  (77) 1,757  
Operating profit227  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  
Balance Sheet
June 30, 2020
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
ASSETS
Current assets:
Cash and cash equivalents
$1,602  $—  $1,065  $—  $2,667  
Restricted cash
—  —  17  —  17  
Accounts receivable, net of allowance for doubtful accounts
224  264  1,069  —  1,557  
Intercompany receivable
599  3,129  4,426  (8,154) —  
Prepaid and other current assets
87  —  131  —  218  
Total current assets
2,512  3,393  6,708  (8,154) 4,459  
Property and equipment, net of accumulated depreciation
193  —  106  —  299  
Right of use assets
377  1  248  —  626  
Goodwill
283  —  3,410  7  3,700  
Other intangible assets, net
—  —  1,407  —  1,407  
Investments in subsidiaries
12,080  5  8,226  (20,311) —  
Intercompany loans receivable
17  —  947  (964) —  
Other non-current assets
249  35  331  (1) 614  
Total assets
$15,711  $3,434  $21,383  $(29,423) $11,105  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$67  $16  $103  $—  $186  
Intercompany payable
6,998  28  1,128  (8,154) —  
Accrued compensation and contributions to retirement plans
114  28  153  —  295  
Income taxes currently payable
223  —  51  —  274  
Unearned revenue
317  251  1,282  —  1,850  
Other current liabilities
176  14  245  —  435  
Total current liabilities
7,895  337  2,962  (8,154) 3,040  
Long-term debt3,950  —  —  —  3,950  
Lease liabilities — non-current361  1  216  —  578  
Intercompany loans payable—  —  964  (964) —  
Pension and other postretirement benefits177  —  83  —  260  
Other non-current liabilities161  75  370  —  606  
Total liabilities
12,544  413  4,595  (9,118) 8,434  
Redeemable noncontrolling interest
—  —  —  2,403  2,403  
Equity:
Common stock
294  —  2,375  (2,375) 294  
Additional paid-in capital
(29) 635  9,515  (9,359) 762  
Retained income
16,429  2,386  5,453  (11,079) 13,189  
Accumulated other comprehensive loss
(197) —  (556) 49  (704) 
Less: common stock in treasury
(13,330) —  (1) —  (13,331) 
Total equity - controlling interests
3,167  3,021  16,786  (22,764) 210  
Total equity - noncontrolling interests
—  —  2  56  58  
Total equity
3,167  3,021  16,788  (22,708) 268  
Total liabilities and equity$15,711  $3,434  $21,383  $(29,423) $11,105  
Balance Sheet
December 31, 2019
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
ASSETS
Current assets:
Cash and cash equivalents
$1,130  $—  $1,736  $—  $2,866  
Restricted cash
—  —  20  —  20  
Accounts receivable, net of allowance for doubtful accounts
229  148  1,200  —  1,577  
Intercompany receivable
675  2,855  3,983  (7,513) —  
Prepaid and other current assets
102  2  145  —  249  
Total current assets
2,136  3,005  7,084  (7,513) 4,712  
Property and equipment, net of accumulated depreciation
204  —  116  —  320  
Right of use assets
402  1  273  —  676  
Goodwill
283  —  3,283  9  3,575  
Other intangible assets, net
—  —  1,424  —  1,424  
Investments in subsidiaries
12,134  6  8,088  (20,228) —  
Intercompany loans receivable
17  —  1,229  (1,246) —  
Other non-current assets
281  37  324  (1) 641  
Total assets
$15,457  $3,049  $21,821  $(28,979) $11,348  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$80  $11  $99  $—  $190  
Intercompany payable
6,288  27  1,198  (7,513) —  
Accrued compensation and contributions to retirement plans
148  61  237  —  446  
Income taxes currently payable
7  —  61  —  68  
Unearned revenue
297  243  1,388  —  1,928  
Other current liabilities
187  18  256  —  461  
Total current liabilities
7,007  360  3,239  (7,513) 3,093  
Long-term debt3,948  —  —  —  3,948  
Lease liabilities — non-current383  1  236  —  620  
Intercompany loans payable—  —  1,246  (1,246) —  
Pension and other postretirement benefits178  —  81  —  259  
Other non-current liabilities171  81  373  (1) 624  
Total liabilities
11,687  442  5,175  (8,760) 8,544  
Redeemable noncontrolling interest
—  —  —  2,268  2,268  
Equity:
Common stock
294  —  2,377  (2,377) 294  
Additional paid-in capital
112  632  9,362  (9,203) 903  
Retained income
15,836  1,975  5,404  (11,010) 12,205  
Accumulated other comprehensive loss
(175) —  (497) 48  (624) 
Less: common stock in treasury
(12,297) —  (2) —  (12,299) 
Total equity - controlling interests
3,770  2,607  16,644  (22,542) 479  
Total equity - noncontrolling interests
—  —  2  55  57  
Total equity
3,770  2,607  16,646  (22,487) 536  
Total liabilities and equity
$15,457  $3,049  $21,821  $(28,979) $11,348  
Statement of Cash Flows
Six Months Ended June 30, 2020
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Operating Activities:
Net income$2,586  $658  $2,020  $(3,733) $1,531  
Adjustments to reconcile net income to cash provided by operating activities:
     Depreciation 20  5  14  —  39  
     Amortization of intangibles—  —  61  —  61  
     Provision for losses on accounts receivable4  4  6  —  14  
     Deferred income taxes6  (1) (2) —  3  
     Stock-based compensation8  3  11  —  22  
     Gain on disposition—  —  (8) —  (8) 
     Pension settlement charge, net of taxes—  —  2  —  2  
     Other19  —  8  —  27  
Changes in operating assets and liabilities, net of effect of acquisitions:
     Accounts receivable 1  (106) 135  —  30  
     Prepaid and other current assets(62) 41  (27) —  (48) 
     Accounts payable and accrued expenses(48) (38) (106) —  (192) 
     Unearned revenue21  8  (85) —  (56) 
     Other current liabilities(12) 6  (10) —  (16) 
     Net change in prepaid/accrued income taxes293  (41) (5) —  247  
     Net change in other assets and liabilities(2) (18) (19) —  (39) 
Cash provided by operating activities2,834  521  1,995  (3,733) 1,617  
Investing Activities:
     Capital expenditures (8) (3) (7) —  (18) 
     Acquisitions, net of cash acquired—  —  (185) —  (185) 
     Proceeds from dispositions—  —  2  —  2  
     Changes in short-term investments—  —  15  —  15  
Cash used for investing activities(8) (3) (175) —  (186) 
Financing Activities:
     Dividends paid to shareholders(323) —  —  —  (323) 
 Distributions to noncontrolling interest holders, net
—  —  (92) —  (92) 
     Repurchase of treasury shares(1,153) —  —  —  (1,153) 
     Exercise of stock options9  —  3  —  12  
Employee withholding tax on share-based payments
(54) —  —  —  (54) 
     Intercompany financing activities(827) (518) (2,388) 3,733  —  
Cash used for financing activities(2,348) (518) (2,477) 3,733  (1,610) 
Effect of exchange rate changes on cash(6) —  (17) —  (23) 
Net change in cash, cash equivalents, and restricted cash472  —  (674) —  (202) 
Cash, cash equivalents, and restricted cash at beginning of period1,130  —  1,756  —  2,886  
Cash, cash equivalents, and restricted cash at end of period$1,602  $—  $1,082  $—  $2,684  
Statement of Cash Flows
Six Months Ended June 30, 2019
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&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 receivable3  3  6  —  12  
     Deferred income taxes22  1  7  —  30  
     Stock-based compensation9  4  20  —  33  
     Pension settlement charge, net of taxes85  —  —  —  85  
     Other8  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 expenses1  (13) (62) —  (74) 
     Unearned revenue28  27  (55) —  —  
     Accrued legal settlements—  (1) —  —  (1) 
     Other current liabilities(57) (3) (23) —  (83) 
     Net change in prepaid/accrued income taxes15  —  —  —  15  
     Net change in other assets and liabilities(26) (4) (37) —  (67) 
Cash provided by operating activities2,147  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 options29  —  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 period694  —  1,264  —  1,958  
Cash, cash equivalents, and restricted cash at end of period$556  $—  $1,364  $—  $1,920