Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Information

A summary of operating results for the three months ended March 31 is as follows: 

Revenue
(in millions)	2021		2020
Ratings	$	1,017	$	825
Market Intelligence	539		519
Platts	225		215
Indices	270		259
Intersegment elimination 1	(35)		(32)
Total revenue	$	2,016	$	1,786

Operating Profit
(in millions)	2021		2020
Ratings 2	$	681	$	520
Market Intelligence 3	166		147
Platts 4	129		112
Indices 5	191		182
Total reportable segments	1,167		961
Corporate Unallocated expense6	(86)		(49)
Total operating profit	$	1,081	$	912

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 2021 includes amortization of intangibles from acquisitions of $5 million.

3 Operating profit for 2021 includes a gain on disposition of $2 million, and operating profit for 2020 includes a gain on disposition of $7 million and employee severance charges of $2 million. Additionally, operating profit for 2021 and 2020 includes amortization of intangibles from acquisitions of $16 million and $19 million, respectively.

4 Operating profit for both 2021 and 2020 includes amortization of intangibles from acquisitions of $2 million.

5 Operating profit for both 2021 and 2020 includes amortization of intangibles from acquisitions of $1 million.

6 Corporate Unallocated expense for 2021 includes IHS Markit merger costs of $49 million and Kensho retention related expense of $2 million. Corporate Unallocated expense for 2020 includes employee severance charges of $7 million and Kensho retention related expense of $5 million. Additionally, Corporate Unallocated expense for both 2021 and 2020 includes amortization of intangibles from acquisitions of $7 million.

The following table presents our revenue disaggregated by revenue type for the three months ended March 31:

(in millions)	Ratings		Market Intelligence		Platts		Indices		Intersegment Elimination 1		Total
	2021
Subscription	$	—	$	527	$	208	$	46	$	—	$	781
Non-subscription / Transaction	582		12		1		—		—		595
Non-transaction	435		—		—		—		(35)		400
Asset-linked fees	—		—		—		183		—		183
Sales usage-based royalties	—		—		16		41		—		57
Total revenue	$	1,017	$	539	$	225	$	270	$	(35)	$	2,016
Timing of revenue recognition
Services transferred at a point in time	$	582	$	12	$	1	$	—	$	—	$	595
Services transferred over time	435		527		224		270		(35)		1,421
Total revenue	$	1,017	$	539	$	225	$	270	$	(35)	$	2,016

(in millions)	Ratings		Market Intelligence		Platts		Indices		Intersegment Elimination 1		Total
	20202
Subscription	$	—	$	505	$	197	$	46	$	—	$	748
Non-subscription / Transaction	430		13		1		—		—		444
Non-transaction	395		—		—		—		(32)		363
Asset-linked fees	—		1		—		159		—		160
Sales usage-based royalties	—		—		17		54		—		71
Total revenue	$	825	$	519	$	215	$	259	$	(32)	$	1,786
Timing of revenue recognition
Services transferred at a point in time	$	430	$	13	$	1	$	—	$	—	$	444
Services transferred over time	395		506		214		259		(32)		1,342
Total revenue	$	825	$	519	$	215	$	259	$	(32)	$	1,786

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 first quarter of 2021, we reevaluated our transaction and non-transaction presentation for Ratings which resulted in a reclassification from transaction revenue to non-transaction revenue of $2 million for the first quarter of 2020.

Schedule of Revenue by Geographic Region

The following provides revenue by geographic region for the three months ended March 31:

(in millions)
	2021		2020
U.S.	$	1,238	$	1,108
European region	473		405
Asia	208		184
Rest of the world	97		89
Total	$	2,016	$	1,786