Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2020

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)	2020		2019		2020		2019
Ratings	$	1,006	$	801	$	1,831	$	1,497
Market Intelligence	516		487		1,034		969
Platts	217		213		433		420
Indices	240		235		499		452

Intersegment elimination ¹	(36)		(32)		(68)		(63)
Total revenue	$	1,943	$	1,704	$	3,729	$	3,275


Operating Profit	Three Months						Six Months

(in millions)	2020		2019		2020		2019
Ratings ²	$	693	$	460	$	1,213	$	828
Market Intelligence ³	159		137		306		271
Platts ⁴	124		111		236		211
Indices ⁵	171		163		353		312

Total reportable segments	1,147		871		2,108		1,622
Corporate Unallocated expense⁶	(42)		(58)		(91)		(104)
Total operating profit	$	1,105	$	813	$	2,017	$	1,518

¹Revenue 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 for the three and six months ended June 30, 2019 includes employee severance charges of $11 million. Operating profit also includes amortization of intangibles from acquisitions of $2 million for the three and six months ended June 30, 2020 and $1 million for the three and six months ended June 30,2019.

³ Operating profit for the three and six months ended June 30, 2020 includes a gain on disposition of $1 million and $8 million, respectively. Operating profit for the six months ended June 30, 2020 also includes employee severance charges of $2 million. Operating profit for the three and six months ended June 30, 2019 includes employee severance charges of $1 million. Operating profit also includes amortization of intangibles from acquisitions of $20 million and $19 million for the three months ended June 30, 2020 and 2019, respectively, and $39 million and $37 million for the six months ended June 30, 2020 and 2019, respectively.

⁴ Operating profit for the three and six months ended June 30, 2019 includes employee severance charges of $1 million. Operating profit includes amortization of intangibles from acquisitions of $2 million and $3 million for the three months ended June 30, 2020 and 2019, respectively, and $4 million and $7 million for the six months ended June 30, 2020 and 2019, respectively.

⁵ Operating profit includes amortization of intangibles from acquisitions of $1 million for the three months ended June 30, 2020 and 2019 and $3 million for the six months ended June 30, 2020 and 2019.

6 Corporate Unallocated expense for the three and six months ended June 30, 2020 includes employee severance charges of $3 million and $10 million, respectively, and Kensho retention related expense of $2 million and $7 million, respectively. Corporate Unallocated Expense for the three and six months ended June 30, 2019 includes Kensho related expenses $5 million and $11 million, respectively, employee severance charges of $7 million, and a lease impairment of $5 million. Corporate Unallocated expense also includes amortization of intangibles from acquisitions of $7 million and $13 million for the three and six months ended June 30, 2020, respectively, and $7 million and $14 million for the three and six months ended June 30, 2019, respectively.

Schedule of Revenue Disaggregated by Type

The following table presents our revenue disaggregated by revenue type for the periods ended June 30:


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

	Three Months Ended June 30, 2020
Subscription	$	—	$	503	$	201	$	43	$	—	$	747
Non-subscription / Transaction	624		13		1		—		—		638
Non-transaction	382		—		—		—		(36)		346
Asset-linked fees	—		—		—		153		—		153
Sales usage-based royalties	—		—		15		44		—		59

Total revenue	$	1,006	$	516	$	217	$	240	$	(36)	$	1,943

Timing of revenue recognition
Services transferred at a point in time	$	624	$	13	$	1	$	—	$	—	$	638
Services transferred over time	382		503		216		240		(36)		1,305
Total revenue	$	1,006	$	516	$	217	$	240	$	(36)	$	1,943

	Six Months Ended June 30, 2020
Subscription	$	—	$	1,007	$	398	$	89	$	—	$	1,494
Non-subscription / Transaction	1,056		26		3		—		—		1,085
Non-transaction	775		—		—		—		(68)		707
Asset-linked fees	—		1		—		312		—		313
Sales usage-based royalties	—		—		32		98		—		130
Other revenue	—		—		—		—		—		—
Total revenue	$	1,831	$	1,034	$	433	$	499	$	(68)	$	3,729

Timing of revenue recognition
Services transferred at a point in time	$	1,056	$	26	$	3	$	—	$	—	$	1,085
Services transferred over time	775		1,008		430		499		(68)		2,644
Total revenue	$	1,831	$	1,034	$	433	$	499	$	(68)	$	3,729


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

	Three Months Ended June 30, 2019
Subscription	$	—	$	471	$	195	$	40	$	—	$	706
Non-subscription / Transaction	422		12		3		—		—		437
Non-transaction	379		—		—		—		(32)		347
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	$	422	$	12	$	3	$	—	$	—	$	437
Services transferred over time	379		475		210		235		(32)		1,267
Total revenue	$	801	$	487	$	213	$	235	$	(32)	$	1,704

	Six Months Ended June 30, 2019
Subscription	$	—	$	939	$	386	$	80	$	—	$	1,405
Non-subscription / Transaction	746		21		5		—		—		772
Non-transaction	751		—		—		—		(63)		688
Asset-linked fees	—		9		—		302		—		311
Sales usage-based royalties	—		—		29		70		—		99
Other revenue	—		—		—		—		—		—
Total revenue	$	1,497	$	969	$	420	$	452	$	(63)	$	3,275

Timing of revenue recognition
Services transferred at a point in time	$	746	$	21	$	5	$	—	$	—	$	772
Services transferred over time	751		948		415		452		(63)		2,503
Total revenue	$	1,497	$	969	$	420	$	452	$	(63)	$	3,275

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.

² In the third quarter of 2019, we reevaluated our transaction and non-transaction presentation which resulted in a reclassification from transaction revenue to non-transaction revenue of $7 million and $14 million for the three and six months ended June 30, 2019.

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
	2020		2019		2020		2019
U.S.	$	1,200	$	1,014	$	2,308	$	1,957
European region	450		422		855		794
Asia	187		178		371		348
Rest of the world	106		90		195		176
Total	$	1,943	$	1,704	$	3,729	$	3,275