Segment and Related Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

We have six reportable segments: Market Intelligence, Ratings, Commodity Insights, Mobility, Indices, and Engineering Solutions. Our Chief Executive Officer is our chief operating decision-maker and evaluates performance of our segments and allocates resources based primarily on operating profit. Segment operating profit does not include Corporate Unallocated expense, equity in income on unconsolidated subsidiaries, other income, net, interest expense, net, or loss on extinguishment of debt, net, as these are amounts that do not affect the operating results of our reportable segments. As of May 2, 2023, we completed the sale of Engineering Solutions and the results are included through that date.

A summary of operating results for the periods ended June 30 is as follows: 

Revenue	Three Months				Six Months
(in millions)	2023		2022		2023		2022
Market Intelligence	$	1,079	$	1,030	$	2,150	$	1,758
Ratings	851		796		1,675		1,663
Commodity Insights	462		438		970		801
Mobility	369		337		727		452
Indices	348		339		689		661
Engineering Solutions	33		96		133		129
Intersegment elimination 1	(41)		(43)		(83)		(81)
Total revenue	$	3,101	$	2,993	$	6,261	$	5,383

Operating Profit	Three Months				Six Months
(in millions)	2023		2022		2023		2022
Market Intelligence 2	$	176	$	702	$	404	$	2,191
Ratings 3	486		464		962		976
Commodity Insights 4	156		141		343		299
Mobility 5	68		58		133		76
Indices 6	226		270		464		493
Engineering Solutions 7	4		1		19		2
Total reportable segments	1,116		1,636		2,325		4,037
Corporate Unallocated expense 8	(216)		(165)		(294)		(678)
Equity in Income on Unconsolidated Subsidiaries 9	11		11		25		15
Total operating profit	$	911	$	1,482	$	2,056	$	3,374

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, 2023 includes employee severance charges of $16 million and $22 million, respectively, IHS Markit merger costs of $12 million and $25 million, respectively, and an asset impairment of $5 million. Operating profit for the six months ended June 30, 2023 includes a gain on dispositions of $46 million. Operating profit for the three and six months ended June 30, 2022 includes a gain on dispositions of $518 million and $1.9 billion, respectively, employee severance charges of $13 million and $31 million, respectively, IHS Markit merger costs of $12 million and $15 million, respectively, and acquisition-related costs of $1 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $140 million and $133 million for the three months ended June 30, 2023 and 2022, respectively, and $281 million and $197 million for the six months ended June 30, 2023 and 2022, respectively.

3 Operating profit for the three and six months ended June 30, 2023 includes employee severance charges of $4 million and $5 million, respectively. Operating profit for the three and six months ended June 30, 2022 includes employee severance charges of $7 million and $12 million, respectively. Additionally, operating profit includes amortization of intangibles from acquisitions of $2 million for the three months ended June 30, 2023 and 2022, and $4 million and $3 million for the six months ended June 30, 2023 and 2022, respectively.

4 Operating profit for the three and six months ended June 30, 2023 includes employee severance charges of $14 million and $15 million, respectively, and IHS Markit merger costs of $8 million and $20 million, respectively. Operating profit for the three and six months ended June 30, 2022 includes employee severance costs of $17 million and $24 million, respectively, and IHS Markit merger costs of $4 million and $6 million, respectively. Additionally, operating profit includes amortization of intangibles from acquisitions of $33 million and $32 million for the three months ended June 30, 2023 and 2022, respectively, and $66 million and $45 million for the six months ended June 30, 2023 and 2022, respectively.

5 Operating profit for the three and six months ended June 30, 2023 includes employee severance charges of $3 million and $4 million, respectively, and acquisition-related costs of $1 million. Operating profit for the six months ended June 30, 2023 includes IHS Markit merger costs of $1 million. Operating profit for the three and six months ended June 30, 2022 includes acquisition-related costs of $3 million and $4 million, respectively, employee severance charges of $2 million and IHS Markit merger costs of $1 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $76 million and $77 million for the three months ended June 30, 2023 and 2022, respectively, and $150 million and $101 million for the six months ended June 30, 2023 and 2022, respectively.

6 Operating profit for the three and six months ended June 30, 2023 includes employee severance charges of $2 million and $3 million, respectively, and IHS Markit merger costs of $1 million and $2 million, respectively. Operating profit for the six months ended June 30, 2023 includes a gain on disposition of $4 million. Operating profit for the three and six months ended June 30, 2022 includes a gain on disposition of $38 million, employee severance charges of $2 million and $4 million, respectively, and IHS Markit merger costs of $1 million. Additionally, operating profit includes amortization of intangibles from acquisitions of $9 million for the three months ended June 30, 2023 and 2022 and $18 million and $13 million for the six months ended June 30, 2023 and 2022, respectively.

7 As of May 2, 2023, we completed the sale of Engineering Solutions and the results are included through that date. Operating profit for the three and six months ended June 30, 2022 includes employee severance charges of $1 million and $2 million, respectively. Additionally, operating profit includes amortization of intangibles from acquisitions of $15 million for the three months ended June 30, 2022 and $1 million and $19 million for the six months ended June 30, 2023 and 2022, respectively.

8 Corporate Unallocated expense for the three and six months ended June 30, 2023 includes a loss on disposition of $120 million, IHS Markit merger costs of $30 million and $66 million, respectively, lease impairments of $15 million, employee severance charges of $12 million and $14 million, respectively, disposition-related costs of $3 million and $16 million, respectively, and acquisition-related costs of $1 million and $2 million, respectively. Corporate Unallocated expense for the three and six months ended June 30, 2022 includes IHS Markit merger costs of $117 million and $357 million, respectively, employee severance charges of $18 million and $64 million, respectively, acquisition-related costs of $4 million and $5 million, respectively, and asset write-offs of $3 million. The six months ended June 30, 2022 includes a S&P Foundation grant of $200 million and lease impairments of $5 million. Additionally, Corporate Unallocated expense includes amortization of intangibles from acquisitions of $1 million for the three months ended June 30, 2023 and $2 million and $1 million for the six months ended June 30, 2023 and 2022, respectively.

9 Equity in Income on Unconsolidated Subsidiaries includes amortization of intangibles from acquisitions of $14 million for the three months ended June 30, 2023 and 2022 and $28 million for the six months ended June 30, 2023 and 2022.

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

(in millions)		Market Intelligence		Ratings		Commodity Insights		Mobility		Indices		Engineering Solutions		Intersegment Elimination 1		Total
	Three Months Ended June 30, 2023
Subscription		$	910	$	—	$	420	$	292	$	70	$	31	$	—	$	1,723
Non-subscription / Transaction		39		383		24		77		—		2		—		525
Non-transaction		—		468		—		—		—		—		(41)		427
Asset-linked fees		—		—		—		—		211		—		—		211
Sales usage-based royalties		—		—		18		—		67		—		—		85
Recurring variable revenue		130		—		—		—		—		—				130
Total revenue		$	1,079	$	851	$	462	$	369	$	348	$	33	$	(41)	$	3,101
Timing of revenue recognition
Services transferred at a point in time		$	39	$	383	$	24	$	77	$	—	$	2	$	—	$	525
Services transferred over time		1,040		468		438		292		348		31		(41)		2,576
Total revenue		$	1,079	$	851	$	462	$	369	$	348	$	33	$	(41)	$	3,101

(in millions)		Market Intelligence		Ratings		Commodity Insights		Mobility		Indices		Engineering Solutions		Intersegment Elimination 1		Total
	Six Months Ended June 30, 2023
Subscription		$	1,800	$	—	$	829	$	573	$	136	$	125	$	—	$	3,463
Non-subscription / Transaction		95		761		104		154		—		8		—		1,122
Non-transaction		—		914		—		—		—		—		(83)		831
Asset-linked fees		—		—		—		—		420		—		—		420
Sales usage-based royalties		—		—		37		—		133		—		—		170
Recurring variable revenue		255		—		—		—		—		—		—		255
Total revenue		$	2,150	$	1,675	$	970	$	727	$	689	$	133	$	(83)	$	6,261
Timing of revenue recognition
Services transferred at a point in time		$	95	$	761	$	104	$	154	$	—	$	8	$	—	$	1,122
Services transferred over time		2,055		914		866		573		689		125		(83)		5,139
Total revenue		$	2,150	$	1,675	$	970	$	727	$	689	$	133	$	(83)	$	6,261

(in millions)	Market Intelligence		Ratings		Commodity Insights		Mobility		Indices		Engineering Solutions		Intersegment Elimination 1		Total
	Three Months Ended June 30, 2022
Subscription	$	867	$	—	$	397	$	264	$	68	$	89	$	—	$	1,685
Non-subscription / Transaction	42		344		26		73		—		7		—		492
Non-transaction	—		452		—		—		—		—		(43)		409
Asset-linked fees	—		—		—		—		214		—		—		214
Sales usage-based royalties	—		—		15		—		57		—		—		72
Recurring variable revenue	121		—		—				—				—		121
Total revenue	$	1,030	$	796	$	438	$	337	$	339	$	96	$	(43)	$	2,993
Timing of revenue recognition
Services transferred at a point in time	$	42	$	344	$	26	$	73	$	—	$	7	$	—	$	492
Services transferred over time	988		452		412		264		339		89		(43)		2,501
Total revenue	$	1,030	$	796	$	438	$	337	$	339	$	96	$	(43)	$	2,993

(in millions)	Market Intelligence		Ratings		Commodity Insights		Mobility		Indices		Engineering Solutions		Intersegment Elimination 1		Total
	Six Months Ended June 30, 2022
Subscription	$	1,526	$	—	$	694	$	350	$	121	$	119	$	—	$	2,810
Non-subscription / Transaction	71		747		74		102		—		10		—		1,004
Non-transaction	—		916		—		—		—		—		(81)		835
Asset-linked fees	—		—		—		—		433		—		—		433
Sales usage-based royalties	—		—		33		—		107		—		—		140
Recurring variable revenue	161		—		—		—		—		—		—		161
Total revenue	$	1,758	$	1,663	$	801	$	452	$	661	$	129	$	(81)	$	5,383
Timing of revenue recognition
Services transferred at a point in time	$	71	$	747	$	74	$	102	$	—	$	10	$	—	$	1,004
Services transferred over time	1,687		916		727		350		661		119		(81)		4,379
Total revenue	$	1,758	$	1,663	$	801	$	452	$	661	$	129	$	(81)	$	5,383

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.

The following provides revenue by geographic region for the periods ended June 30:

(in millions)	Three Months				Six Months
	2023		2022		2023		2022
U.S.	$	1,865	$	1,782	$	3,791	$	3,208
European region	703		699		1,414		1,266
Asia	342		326		679		590
Rest of the world	191		186		377		319
Total	$	3,101	$	2,993	$	6,261	$	5,383

See Note 2 — Acquisitions and Divestitures and Note 10 — Restructuring for additional actions that impacted the segment operating results.