Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2020

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)	2020		2019		2020		2019
Ratings	$	894	$	789	$	2,725	$	2,286
Market Intelligence	530		488		1,565		1,457
Platts	222		212		654		632
Indices	234		232		733		684

Intersegment elimination ¹	(34)		(32)		(102)		(95)
Total revenue	$	1,846	$	1,689	$	5,575	$	4,964


Operating Profit	Three Months						Nine Months

(in millions)	2020		2019		2020		2019
Ratings ²	$	544	$	477	$	1,758	$	1,305
Market Intelligence ³	164		161		469		431
Platts ⁴	121		136		357		348
Indices ⁵	151		162		504		474

Total reportable segments	980		936		3,088		2,558
Corporate Unallocated expense⁶	(36)		(45)		(128)		(150)
Total operating profit	$	944	$	891	$	2,960	$	2,408

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 nine months ended September 30, 2020 include a technology-related impairment charge of $5 million. Operating profit for the nine months ended September 30, 2019 includes employee severance charges of $11 million. Operating profit also

includes amortization of intangibles from acquisitions of $3 million and $5 million for the three and nine months ended September 30, 2020, respectively, and $2 million for the nine months ended September 30,2019.

³ Operating profit for the three and nine months ended September 30, 2020 includes a gain on dispositions of $4 million and $12 million, respectively, and employee severance charges of $2 million and $1 million for the nine months ended September 30, 2020 and 2019, respectively. 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 SPIAS of $22 million for the three and nine months ended September 30, 2019. Operating profit also includes amortization of intangibles from acquisitions of $19 million for the three months ended September 30, 2020 and 2019, respectively, and $58 million and $56 million for the nine months ended September 30, 2020 and 2019.

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 for the nine months ended September 30, 2019 includes employee severance charges of $1 million. Operating profit includes amortization of intangibles from acquisitions of $2 million for the three months ended September 30, 2020 and 2019 and $7 million and $9 million for the nine months ended September 30, 2020 and 2019, respectively.

⁵ Operating profit includes amortization of intangibles from acquisitions of $1 million for the three months ended September 30, 2020 and 2019 and $4 million for the nine months ended September 30, 2020 and 2019.

6 Corporate Unallocated expense for the three and nine months ended September 30, 2020 includes a gain on disposition of $4 million, Kensho retention related expense of $2 million and $10 million, respectively, and employee severance charges of $10 million for the nine months ended September 30, 2020. Corporate Unallocated Expense for the three and nine months ended September 30, 2019 includes Kensho related expenses $6 million and $17 million, respectively. Corporate unallocated expense for the nine months ended September 30, 2019 includes 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 $20 million for the three and nine months ended September 30, 2020, respectively, and $7 million and $21 million for the three and nine months ended September 30, 2019, respectively.

Schedule of Revenue Disaggregated by Type

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


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

	Three Months Ended September 30, 2020
Subscription	$	—	$	517	$	205	$	43	$	—	$	765
Non-subscription / Transaction	490		13		2		—		—		505
Non-transaction	404		—		—		—		(34)		370
Asset-linked fees	—		—		—		156		—		156
Sales usage-based royalties	—		—		15		35		—		50

Total revenue	$	894	$	530	$	222	$	234	$	(34)	$	1,846

Timing of revenue recognition
Services transferred at a point in time	$	490	$	13	$	2	$	—	$	—	$	505
Services transferred over time	404		517		220		234		(34)		1,341
Total revenue	$	894	$	530	$	222	$	234	$	(34)	$	1,846

	Nine Months Ended September 30, 2020
Subscription	$	—	$	1,525	$	603	$	132	$	—	$	2,260
Non-subscription / Transaction	1,546		39		4		—		—		1,589
Non-transaction	1,179		—		—		—		(102)		1,077
Asset-linked fees	—		1		—		468		—		469
Sales usage-based royalties	—		—		47		133		—		180

Total revenue	$	2,725	$	1,565	$	654	$	733	$	(102)	$	5,575

Timing of revenue recognition
Services transferred at a point in time	$	1,546	$	39	$	4	$	—	$	—	$	1,589
Services transferred over time	1,179		1,526		650		733		(102)		3,986
Total revenue	$	2,725	$	1,565	$	654	$	733	$	(102)	$	5,575


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

	Three Months Ended September 30, 2019
Subscription	$	—	$	477	$	194	$	42	$	—	$	713
Non-subscription / Transaction	402		10		2		—		—		414
Non-transaction	387		—		—		—		(32)		355
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-subscription / Transaction	1,148		31		8		—		—		1,187
Non-transaction	1,138		—		—		—		(95)		1,043
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

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
	2020		2019		2020		2019
U.S.	$	1,076	$	1,021	$	3,384	$	2,978
European region	455		411		1,310		1,205
Asia	214		174		585		522
Rest of the world	101		83		296		259
Total	$	1,846	$	1,689	$	5,575	$	4,964