Exhibit 99.2

THOMSON REUTERS CORPORATION    

CONSOLIDATED INCOME STATEMENT    

(unaudited)    

			Three months ended March 31,
(millions of U.S. dollars, except per share amounts)	Notes		2018		2017
CONTINUING OPERATIONS
Revenues		3		1,379		1,331
Operating expenses		6		(952)		(911)
Depreciation				(30)		(28)
Amortization of computer software				(98)		(96)
Amortization of other identifiable intangible assets				(29)		(35)
Other operating (losses) gains, net		7		(2)		13
Operating profit				268		274
Finance costs, net:
Net interest expense		8		(78)		(92)
Other finance income (costs)		8		7		(28)
Income before tax and equity method investments				197		154
Share of post-tax earnings in equity method investments				2		2
Tax expense		9		(27)		(11)
Earnings from continuing operations				172		145
(Loss) earnings from discontinued operations, net of tax		10		(483)		169
Net (loss) earnings				(311)		314
(Loss) earnings attributable to:
Common shareholders				(339)		297
Non-controlling interests				28		17
(Loss) earnings per share:		11
Basic and diluted (loss) earnings per share:
From continuing operations				$0.24	$	0.20
From discontinued operations				(0.72)		0.21
Basic and diluted (loss) earnings per share			($	0.48)	$	0.41

The related notes form an integral part of these consolidated financial statements.

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THOMSON REUTERS CORPORATION

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(unaudited)

			Three months ended March 31,
(millions of U.S. dollars)	Notes		2018		2017
Net (loss) earnings				(311)		314
Other comprehensive income (loss):
Items that have been or may be subsequently reclassified to net earnings:
Cash flow hedges adjustments to net earnings		8		40		(7)
Cash flow hedges adjustments to equity				(28)		9
Foreign currency translation adjustments to equity				159		133
				171		135
Item that will not be reclassified to net earnings:
Remeasurement on defined benefit pension plans				46		4
Related tax expense on remeasurement on defined benefit pension plans				(12)		(5)
				34		(1)
Other comprehensive income				205		134
Total comprehensive (loss) income				(106)		448
Comprehensive (loss) income for the period attributable to:
Common shareholders:
Continuing operations				149		164
Discontinued operations				(283)		267
Non-controlling interests - discontinued operations				28		17
Total comprehensive (loss) income				(106)		448

The related notes form an integral part of these consolidated financial statements.

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THOMSON REUTERS CORPORATION

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited)

			March 31,		December 31,
(millions of U.S. dollars)	Notes		2018		2017
Cash and cash equivalents		12		502		874
Trade and other receivables				839		1,457
Other financial assets		12		53		98
Prepaid expenses and other current assets				397		548
Current assets excluding assets held for sale				1,791		2,977
Assets held for sale		10		14,687		—
Current assets				16,478		2,977
Computer hardware and other property, net				528		921
Computer software, net				892		1,458
Other identifiable intangible assets, net				3,335		5,315
Goodwill				5,061		15,042
Other financial assets		12		39		83
Other non-current assets		13		575		605
Deferred tax				50		79
Total assets				26,958		26,480
LIABILITIES AND EQUITY
Liabilities
Current indebtedness		12		1,760		1,644
Payables, accruals and provisions		14		1,022		2,086
Deferred revenue				695		937
Other financial liabilities		12		66		129
Current liabilities excluding liabilities associated with assets held for sale				3,543		4,796
Liabilities associated with assets held for sale				1,813		—
Current liabilities				5,356		4,796
Long-term indebtedness		12		5,343		5,382
Provisions and other non-current liabilities		15		1,263		1,740
Other financial liabilities		12		278		279
Deferred tax				1,334		708
Total liabilities				13,574		12,905
Equity
Capital		16		9,541		9,549
Retained earnings				6,829		7,201
Accumulated other comprehensive loss				(3,502)		(3,673)
Total shareholders’ equity				12,868		13,077
Non-controlling interests				516		498
Total equity				13,384		13,575
Total liabilities and equity				26,958		26,480
Contingencies (note 18)

The related notes form an integral part of these consolidated financial statements.

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THOMSON REUTERS CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOW

(unaudited)

			Three months ended March 31,
(millions of U.S. dollars)	Notes		2018		2017
Cash provided by (used in):
OPERATING ACTIVITIES
Earnings from continuing operations				172		145
Adjustments for:
Depreciation				30		28
Amortization of computer software				98		96
Amortization of other identifiable intangible assets				29		35
Deferred tax				5		4
Other		17		47		60
Pension contribution				—		(500)
Changes in working capital and other items		17		(172)		(265)
Operating cash flows from continuing operations				209		(397)
Operating cash flows from discontinued operations				210		29
Net cash provided by (used in) by operating activities				419		(368)
INVESTING ACTIVITIES
Acquisitions, net of cash acquired				(27)		—
Proceeds from disposals of businesses and investments				—		10
Capital expenditures, less proceeds from disposals				(179)		(108)
Other investing activities				—		6
Investing cash flows from continuing operations				(206)		(92)
Investing cash flows from discontinued operations				(108)		(283)
Net cash used in investing activities				(314)		(375)
FINANCING ACTIVITIES
Proceeds from debt		12		1,370		—
Repayments of debt		12		—		(550)
Net (repayments) borrowings under short-term loan facilities		12		(1,252)		255
Repurchases of common shares		16		—		(284)
Dividends paid on preference shares				(1)		(1)
Dividends paid on common shares		16		(236)		(242)
Other financing activities				—		5
Financing cash flows from continuing operations				(119)		(817)
Financing cash flows from discontinued operations				(11)		(9)
Net cash used in financing activities				(130)		(826)
Decrease in cash and bank overdrafts				(25)		(1,569)
Translation adjustments				1		2
Cash and bank overdrafts at beginning of period				868		2,367
Cash and bank overdrafts at end of period				844		800
Cash and bank overdrafts at end of period comprised of:
Cash and cash equivalents				502		812
Cash and cash equivalents in assets held for sale		10		346		—
Bank overdrafts				(4)		(12)
				844		800
Supplemental cash flow information is provided in note 17.
Interest paid				(28)		(69)
Income taxes paid		17		(62)		(62)

Interest paid is reflected as an operating cash flow and is net of debt-related hedges.

Income taxes paid are reflected as either operating or investing cash flows depending on the nature of the underlying transaction.

The related notes form an integral part of these consolidated financial statements.

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THOMSON REUTERS CORPORATION

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(unaudited)

(millions of U.S. dollars)	Stated share capital		Contributed surplus		Total capital		Retained earnings		Unrecognized gain on cash flow hedges		Foreign currency translation adjustments		Total accumulated other comprehensive loss (“AOCL”)		Shareholders’ equity		Non- controlling interests		Total equity
Balance, December 31, 2017		9,306		243		9,549		7,201		16		(3,689)		(3,673)		13,077		498		13,575
Impact of IFRS 15 (see note 1)		-		-		-		172		-		-		-		172		-		172
Balance after IFRS 15 amendments		9,306		243		9,549		7,373		16		(3,689)		(3,673)		13,249		498		13,747
Net (loss) earnings		-		-		-		(339)		-		-		-		(339)		28		(311)
Other comprehensive income		-		-		-		34		12		159		171		205		-		205
Total comprehensive (loss) income		-		-		-		(305)		12		159		171		(134)		28		(106)
Change in ownership interest of subsidiary		-		-		-		7		-		-		-		7		1		8
Distributions to non-controlling interests		-		-		-		-		-		-		-		-		(11)		(11)
Dividends declared on preference shares		-		-		-		(1)		-		-		-		(1)		-		(1)
Dividends declared on common shares		-		-		-		(245)		-		-		-		(245)		-		(245)
Shares issued under Dividend Reinvestment Plan (“DRIP”)		9		-		9		-		-		-		-		9		-		9
Stock compensation plans		63		(80)		(17)		-		-		-		-		(17)		-		(17)
Balance, M arch 31, 2018		9,378		163		9,541		6,829		28		(3,530)		(3,502)		12,868		516		13,384

(millions of U.S. dollars)	Stated share capital		Contributed surplus		Total capital		Retained earnings		Unrecognized gain on cash flow hedges		Foreign currency translation adjustments		AOCL		Shareholders’ equity		Non- controlling interests		Total equity
Balance, December 31, 2016		9,393		196		9,589		7,477		32		(4,325)		(4,293)		12,773		483		13,256
Impact of IFRS 2 amendments		-		152		152		-		-		-		-		152		-		152
Balance after IFRS 2 amendments		9,393		348		9,741		7,477		32		(4,325)		(4,293)		12,925		483		13,408
Net earnings		-		-		-		297		-		-		-		297		17		314
Other comprehensive (loss) income		-		-		-		(1)		2		133		135		134		-		134
Total comprehensive income		-		-		-		296		2		133		135		431		17		448
Change in ownership interest of subsidiary		-		-		-		4		-		-		-		4		1		5
Distributions to non-controlling interests		-		-		-		-		-		-		-		-		(9)		(9)
Dividends declared on preference shares		-		-		-		(1)		-		-		-		(1)		-		(1)
Dividends declared on common shares		-		-		-		(251)		-		-		-		(251)		-		(251)
Shares issued under DRIP		9		-		9		-		-		-		-		9		-		9
Repurchases of common shares		(90)		-		(90)		(202)		-		-		-		(292)		-		(292)
Pre-defined share repurchase plan		(16)		-		(16)		(39)		-		-		-		(55)		-		(55)
Stock compensation plans		97		(124)		(27)		-		-		-		-		(27)		-		(27)
Balance, M arch 31, 2017		9,393		224		9,617		7,284		34		(4,192)		(4,158)		12,743		492		13,235

The related notes form an integral part of these consolidated financial statements.

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Thomson Reuters Corporation

Notes to Consolidated Financial Statements (unaudited)

(unless otherwise stated, all amounts are in millions of U.S. dollars)

Note 1: Business Description and Basis of Preparation

General business description

Thomson Reuters Corporation (the “Company” or “Thomson Reuters”) is an Ontario, Canada corporation with common shares listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”) and Series II preference shares listed on the TSX. The Company is a major source of news and information for professional markets.

Basis of preparation

The unaudited consolidated interim financial statements (“interim financial statements”) were prepared using the same accounting policies and methods as those used in the Company’s consolidated financial statements for the year ended December 31, 2017, except as described below. The interim financial statements are in compliance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”). Accordingly, certain information and footnote disclosure normally included in annual financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), have been omitted or condensed. The preparation of financial statements in accordance with IAS 34 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements have been disclosed in note 3 of the interim financial statements and in note 2 of the consolidated financial statements for the year ended December 31, 2017. These interim financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2017, which are included in the Company’s 2017 annual report.

On January 30, 2018, the Company signed a definitive agreement to enter into a strategic partnership with private equity funds managed by Blackstone. Canada Pension Plan Investment Board and an affiliate of GIC will invest alongside Blackstone. As part of the transaction, the Company will sell a 55% majority stake in its Financial & Risk business and will retain a 45% interest in the business. Beginning with the three-month period ended March 31, 2018, the Financial & Risk business was reported as a discontinued operation.

The accompanying interim financial statements include all adjustments, composed of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position and cash flows. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year.

References to “$” are to U.S. dollars and references to “C$” are to Canadian dollars.

Prior-year period amounts have been reclassified to reflect the current presentation.

Changes in accounting policy

Effective January 1, 2018, the Company adopted IFRS 15, Revenue from Contracts with Customers (“IFRS 15”). The Company made the following changes as a consequence of adopting IFRS 15:

^●  Revenue for certain term licenses of intellectual property are recognized at the time control is transferred to the customer, rather than over the license term.

^●  Certain contingent payouts are recognized as a reduction of revenue, rather than as expense.

^●  Additional commission expense for sales employees was deferred and a substantial portion of these deferrals will be amortized over three years.

The Company adopted IFRS 15 using the modified retrospective method. Accordingly, the cumulative effect of adoption of $172 million was recognized as an adjustment to the opening balance of retained earnings at January 1, 2018 to reflect an increase in total assets of $150 million due to the deferral of additional commission expense for sales employees and a decrease in total liabilities of $22 million primarily related to adjustments to deferred revenue. Comparative information was not restated.

IFRS 15 did not have a material impact on the consolidated income statement and no impact on cash flows for the three months ended March 31, 2018. In the consolidated statement of financial position, total assets increased $154 million and total liabilities decreased $26 million at March 31, 2018, compared to December 31, 2017. Of these amounts, $89 million of the increase in total assets and the entire decrease in total liabilities related to continuing operations. Refer to Note 3 for the Company’s accounting policies, critical judgments and disclosures under IFRS 15.

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Effective January 1, 2018, the Company also adopted IFRS 9, Financial Instruments (“IFRS 9”). IFRS 9 introduces new requirements for classification and measurement, impairment and hedge accounting. The Company adopted IFRS 9 using the retrospective method and, as permitted by the standard, elected not to reclassify prior-year period amounts. IFRS 9 did not have a material impact on the consolidated income statement, cash flow and financial position for the three months ended March 31, 2018.

Note 2: Recent Accounting Pronouncements

Certain pronouncements were issued by the IASB or International Financial Reporting Interpretations Committee (“IFRIC”) that are effective for accounting periods beginning on or after January 1, 2018. Many of these updates are not applicable or consequential to the Company and have been excluded from the discussion below.

Pronouncements effective for annual periods beginning January 1, 2019:

IFRS 16	Leases	IFRS 16 introduces a single lease accounting model, eliminating the existing distinction between operating and finance leases for lessees. The standard requires a lessee to recognize right-of-use assets and lease liabilities on the statement of financial position for almost all leases having a term of more than 12 months. The Company is reviewing its lease portfolio to evaluate the impact of the standard and is considering changes to its processes and internal controls, including the implementation of a new lease accounting system in 2018. The Company continues to consider whether to apply the retrospective or modified retrospective adoption method. While the assessment of the adoption impact is ongoing, the Company preliminarily expects that IFRS 16 will result in a material increase to assets and liabilities. For reference, the Company’s future aggregate minimum lease payments under non-cancellable operating leases were approximately $1.3 billion at December 31, 2017 (see note 28 to the consolidated financial statements for the year then ended). Of this amount, the Company estimates that approximately $400 million relates to the continuing operations of the business. While the Company also expects a material impact from the reclassification of lease expense from operating expenses to depreciation and interest expense, it does not expect a material impact to net earnings. There will be no impact on consolidated cash flows, however, cash flows from operating activities will increase as cash payments from the principal portion of lease obligations will be reclassified to cash flows from financing activities.
IFRIC 23	Uncertainty over Income Tax Treatments	IFRIC 23 adds to the requirements of IAS 12, Income Taxes, by specifying how to reflect the effects of uncertainty in the accounting for income taxes. An uncertainty arises when it is unclear how a tax law applies to a particular transaction, or whether a taxation authority will accept a company’s tax treatment. The Company is assessing the impact of IFRIC 23 on its consolidated financial statements.

Note 3: Revenues

Significant accounting policies

Effective January 1, 2018, revenue is recognized when control of the Company’s products or services is transferred to customers. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled. Such consideration is net of estimated returns, discounts, value-added and other sales taxes.

The Company derives its revenue from selling information, software and services. Revenue is generally recognized as follows:

Recurring revenues

Recurring revenue is generally recognized on a ratable basis over the contract term.

Recurring revenues primarily consist of fees to access products or services delivered electronically over time, such as Westlaw and Checkpoint. These products are generally provided under subscription arrangements, which most customers renew at the end of each subscription term. The majority of subscription arrangements have multiple year terms that range from one to five years. Recurring revenues also include fees from software maintenance arrangements that are recognized over the maintenance period. Arrangements may be billed in advance or in arrears.

Transactions revenues

Transactions revenues are recognized primarily at a point in time and based on their type, as follows:

^●  Volume-based fees related to online searches are recognized based on usage;

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^●  Fees from software licenses with no future obligations are recognized at the point of delivery; and

^●  Professional fees from service and consulting arrangements are recognized as services are performed, generally based on hours incurred, reflecting the continuous transfer of control to the customer.

Transactions revenues may be billed in advance or in arrears.

Print revenues

Print revenues are generally recognized at the point of shipment.

Print revenue consists of fees for content that is delivered in traditional paper format rather than on-line. Revenue is generally billed at shipment.

The Company also considers the following when recognizing revenue:

Multiple performance obligations

Certain customer contracts include multiple products and services, which are accounted for as separate performance obligations when they are distinct. A product or service is distinct if a customer can benefit from it either on its own or with other readily available resources, and the promise to transfer the good or service is separately identifiable in the contract. The transaction price is allocated to the separate performance obligations based on the relative standalone selling price.

A series of distinct goods or services is accounted for as a single performance obligation if the items in the series are substantially the same, have the same pattern of transfer and: (1) each distinct item in the series represents a performance obligation that would be satisfied over time, and (2) the measure to satisfy the performance obligation for each distinct item in the series is the same.

Certain arrangements include installation or implementation services. If these services are distinct, consideration is allocated to them and they are recognized as services are performed and included as transaction revenues. If the services are not distinct, they are recognized as part of the related subscription arrangement or as part of the related software license, as applicable.

Sales involving third parties

Revenue from sales of third party content or services delivered on the Company’s platforms is recorded net of costs when the Company is acting as an agent between the customer and the vendor, and gross when the Company is a principal to the transaction.

Deferred revenue

Deferred revenue is recorded when cash payments are received or due in advance of the transfer of the related products or services.

Contract costs

Incremental costs of obtaining a contract with a customer are recognized as an asset if the benefit of such costs is expected to be longer than one year, and amortized on a straight-line basis over the period that the product or service is transferred to the customer. Incremental costs include sales commissions to direct sales people as well as to account executives and sales management. Sales commissions on new customer contracts are generally paid at significantly higher rates than renewals. As such:

^●  Assets related to new customer contracts are amortized over three years, which may anticipate renewal periods, as management estimates that this corresponds to the period over which a customer benefits from existing technology in the underlying product or service; and

^●  Assets related to renewal customer contracts are amortized over the term of the contract if they are commensurate with previous renewals commissions.

The Company recognizes the following assets, “Deferred commissions” short-term, included within “Prepaid expenses and other current assets” and “Deferred commissions” long-term, included within “Other non-current assets” in the consolidated statement of financial position for costs to obtain a contract.

The Company applied the practical expedient in IFRS 15 to recognize the incremental cost of obtaining a contract as an expense when incurred, if the amortization period is one year or less.

Critical judgments in applying accounting policies

Management exercises significant judgment to determine the following when applying the accounting policy:

^●  whether multiple products and services in customer contracts are distinct performance obligations that should be accounted for separately, or whether they must be accounted for together

^¡  In making the determination, management considers, for example, whether the Company regularly sells a good or service separately, or whether the goods or services are highly interrelated.

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^●  the standalone selling price (SSP) for each distinct performance obligation

^¡  The Company typically has more than one SSP for individual products and services due to the stratification of its offerings by customer. As a result, management determines the SSP taking into consideration market conditions and other factors, including the value of its contracts, the product or service sold, customer’s market, geographic location, and the number and types of users in each contract.

^●  the period over which to amortize assets arising from incremental costs of obtaining a contract

^¡  As management estimates this period corresponds to the period over which a customer benefits from existing technology in the underlying product or service, this judgment is closely linked with the determination of software amortization periods.

Revenues by type and geography

The following tables disaggregate revenues by type and geography and reconcile them to reportable segments from continuing operations (see note 4).

Revenues by type	Legal				Tax & Accounting				Reuters News				Total
Three months ended March 31,	2018		2017		2018		2017		2018		2017		2018		2017
Recurring		637		604		310		288		62		63		1,009		955
Transactions		76		77		114		115		10		11		200		203
Print		159		160		13		14		-		-		172		174
Eliminations		-		-		-		-		-		-		(2)		(1)
Total		872		841		437		417		72		74		1,379		1,331

Revenues by geography (country of destination)	Legal				Tax & Accounting				Reuters News				Total
Three months ended March 31,	2018		2017		2018		2017		2018		2017		2018		2017
U.S.		689		670		359		348		18		17		1,066		1,035
Canada (country of domicile)		29		33		11		10		1		1		41		44
Other		10		15		40		35		2		2		52		52
Americas (North America, Latin America, South America)		728		718		410		393		21		20		1,159		1,131
U.K.		82		73		13		10		7		7		102		90
Other		28		16		4		5		29		27		61		48
EMEA (Europe, Middle East and Africa)		110		89		17		15		36		34		163		138
Asia Pacific		34		34		10		9		15		20		59		63
Eliminations		-		-		-		-		-		-		(2)		(1)
Total		872		841		437		417		72		74		1,379		1,331

See note 10 for disaggregated revenues from discontinued operations.

Note 4: Segment Information

The Company’s continuing business is organized as three reportable segments reflecting how the businesses are managed: Legal, Tax & Accounting, and Reuters News. Beginning in the first quarter of 2018, Reuters News became a reportable segment. Reuters News was previously an operating segment included within a Corporate and Other category. The accounting policies applied by the segments are the same as those applied by the Company.

Effective January 1, 2018, the operating results of Financial & Risk are reported as a discontinued operation, except for the Regulatory Intelligence and Compliance Learning businesses that the Company will retain after the closing of the proposed transaction and is now reported as part of the Legal segment. The Company’s Chief Executive Officer continues to act as the chief operating decision maker (CODM) for the Financial & Risk business due to its significance to the Company. See note 10 for financial information regarding the Financial & Risk business.

The reportable segments offer products and services to target markets as described below.

Legal

The Legal segment is a provider of critical online and print information, decision tools, software and services that support legal, investigation, business and government professionals around the world.

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Tax & Accounting

The Tax & Accounting segment is a provider of integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government.

Reuters News

The Reuters News segment is a provider of real-time, multimedia news and information services to newspapers, television and cable networks, radio stations and websites around the globe.

The Company also reports “Corporate”, which includes expenses for corporate functions and does not qualify for segment reporting.

	Three months ended March 31,
	2018		2017
Revenues
Legal		872		841
Tax & Accounting		437		417
Reuters News		72		74
Eliminations		(2)		(1)
Consolidated revenues		1,379		1,331
Adjusted EBITDA
Legal		319		314
Tax & Accounting		147		141
Reuters News		8		13
Corporate		(44)		(53)
Adjusted EBITDA		430		415
Fair value adjustments (see note 6)		(3)		5
Depreciation		(30)		(28)
Amortization of computer software		(98)		(96)
Amortization of other identifiable intangible assets		(29)		(35)
Other operating (losses) gains, net		(2)		13
Consolidated operating profit		268		274
Net interest expense		(78)		(92)
Other finance income (costs)		7		(28)
Share of post-tax earnings in equity method investments		2		2
Tax expense		(27)		(11)
Earnings from continuing operations		172		145

In accordance with IFRS 8, Operating Segments, the Company discloses certain information about its reportable segments based upon measures used by management in assessing the performance of those reportable segments. These measures are defined below and may not be comparable to similar measures of other companies.

Adjusted EBITDA

^●  Segment adjusted EBITDA represents earnings from continuing operations before tax expense or benefit, net interest expense, other finance costs or income, depreciation, amortization of software and other identifiable intangible assets, the Company’s share of post-tax earnings or losses in equity method investments, other operating gains and losses, certain asset impairment charges, fair value adjustments, and corporate related items.

^●  The Company does not consider these excluded items to be controllable operating activities for purposes of assessing the current performance of the reportable segments.

^●  Each segment includes an allocation of costs for centralized support services such as technology, editorial, real estate and certain global transaction processing functions that are based on usage or other applicable measures.

^●  Consolidated adjusted EBITDA is comprised of adjusted EBITDA from reportable segments and Corporate.

Page 42

Note 5: Seasonality

The Company’s revenues and operating profit on a consolidated basis do not tend to be significantly impacted by seasonality as it records a large portion of its revenues ratably over a contract term and its costs are generally incurred evenly throughout the year. However, the performance of the Tax & Accounting segment from quarter to consecutive quarter can be impacted by the release of certain tax products, which tend to be concentrated in the fourth quarter and, to a lesser extent, in the first quarter of the year.

Note 6: Operating Expenses

The components of operating expenses include the following:

	Three months ended March 31,
	2018		2017
Salaries, commissions and allowances		586		555
Share-based payments		9		15
Post-employment benefits		38		39
Total staff costs		633		609
Goods and services(1)		234		218
Data		53		50
Telecommunications		5		8
Real estate		24		31
Fair value adjustments(2)		3		(5)
Total operating expenses		952		911

(1) Goods and services include professional fees, consulting and outsourcing services, contractors, selling and marketing, and other general and administrative costs.

(2) Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinary course of business.

Note 7: Other Operating (Losses) Gains, Net

Other operating (losses) gains net, were $(2) million and $13 million for the three months ended March 31, 2018 and 2017, respectively. The 2017 period included a gain on an investment.

Note 8: Finance Costs, Net

The components of finance costs, net, include interest expense (income) and other finance costs (income) as follows:

	Three months ended March 31,
	2018		2017
Interest expense:
Debt		70		81
Derivative financial instruments - hedging activities		1		2
Other, net		1		4
Fair value losses (gains) on financial instruments:
Cash flow hedges, transfer from equity		40		(7)
Net foreign exchange (gains) losses on debt		(40)		7
Net interest expense - debt and other		72		87
Net interest expense - pension and other post-employment benefit plans		7		7
Interest income		(1)		(2)
Net interest expense		78		92

	Three months ended March 31,
	2018		2017
Net (gains) losses due to changes in foreign currency exchange rates		(13)		21
Net losses on derivative instruments		6		7
Other finance (income) costs		(7)		28

Page 43

Net (gains) losses due to changes in foreign currency exchange rates

Net (gains) losses due to changes in foreign currency exchange rates were principally comprised of amounts related to certain intercompany funding arrangements.

Net losses on derivative instruments

Net losses on derivative instruments were principally comprised of amounts relating to foreign exchange contracts.

Note 9: Taxation

Tax expense was $27 million and $11 million for the three months ended March 31, 2018 and 2017, respectively. The tax expense in each period reflected the mix of taxing jurisdictions in which pre-tax profits and losses were recognized. Because the geographical mix of pre-tax profits and losses in interim periods may be different from that for the full year, tax expense or benefit in interim periods is not necessarily indicative of tax expense for the full year.

Note 10: Discontinued Operations

On January 30, 2018, the Company signed a definitive agreement to enter into a strategic partnership with private equity funds managed by Blackstone. As part of the transaction, the Company will sell a 55% majority stake in its Financial & Risk business and will retain a 45% interest in the business. The Company expects to receive approximately $17.0 billion in gross proceeds at closing (subject to purchase price adjustments). The transaction is expected to close in the second half of 2018 and is subject to specified regulatory approvals and customary closing conditions. The Company expects to record a pre-tax gain on the transaction at the time of closing.

The results of Financial & Risk are reported as discontinued operations in the consolidated financial statements for all periods presented.

Earnings from discontinued operations are summarized as follows:

	Three months ended March 31,
	2018		2017
Revenues		1,583		1,485
Expenses		(1,198)		(1,319)
Earnings from discontinued operations before income tax		385		166
Tax (expense) benefit(1)		(868)		3
(Loss) earnings from discontinued operations, net of tax		(483)		169
Adjusted EBITDA (Financial & Risk)		526		461
Fair value adjustments		(18)		(70)
Depreciation		(14)		(44)
Amortization of computer software		(30)		(84)
Amortization of other identifiable intangible assets		(28)		(84)
Other operating losses, net		(41)		(9)
Net interest expense		(4)		(1)
Other finance (costs) income		(5)		1
Intellectual Property & Science loss from discontinued operations		(1)		(4)
Earnings from discontinued operations before income tax		385		166

(1) Reflects an $844 million deferred tax charge associated with the proposed sale of a 55% interest in the Financial & Risk business. These deferred taxes were not previously required as the business was not considered held for sale until January 2018.

Page 44

The assets and liabilities classified as held for sale in the consolidated statement of financial position are as follows:

	March 31,
	2018
Cash and cash equivalents		346
Trade and other receivables		709
Other financial assets		57
Prepaid expenses and other current assets		272
Computer hardware and other property, net		437
Computer software, net		631
Other identifiable intangible assets, net		1,964
Goodwill		10,149
Other assets		91
Deferred tax		31
Total assets held for sale		14,687
Current indebtedness		2
Payables, accruals and provisions		769
Deferred revenue		246
Other financial liabilities		87
Provisions and other liabilities		449
Deferred tax		260
Total liabilities associated with assets held for sale		1,813

Relative to assets held for sale, foreign currency translation adjustments recorded within accumulated other comprehensive loss in the consolidated statement of financial position were losses of approximately $1.6 billion to $2.1 billion at March 31, 2018.

The following tables disaggregate revenues by type and geography for the Financial & Risk segment:

Revenues by type	Financial & Risk
Three months ended March 31,	2018		2017
Recurring		1,331		1,270
Transactions		252		215
Total		1,583		1,485
Revenues by geography (country of destination)
	Financial & Risk
Three months ended March 31,	2018		2017
U.S.		578		565
Canada (country of domicile)		34		32
Other		27		26
Americas (North America, Latin America, South America)		639		623
U.K.		241		207
Other		408		371
EMEA (Europe, Middle East and Africa)		649		578
Asia Pacific		295		284
Total		1,583		1,485

Page 45

Note 11: Earnings Per Share

Basic earnings per share was calculated by dividing (loss) earnings attributable to common shareholders less dividends declared on preference shares by the sum of the weighted-average number of common shares outstanding and vested deferred share units (“DSUs”) outstanding during the period. DSUs represent common shares that certain employees have elected to receive in the future upon vesting of share-based compensation awards or in lieu of cash compensation.

Diluted (loss) earnings per share was calculated using the denominator of the basic calculation described above adjusted to include the potentially dilutive effect of outstanding stock options and time-based restricted share units (“TRSUs”).

(Loss) earnings used in determining consolidated (loss) earnings per share and earnings per share from continuing operations are as follows:

	Three months ended March 31,
	2018		2017
(Loss) earnings attributable to common shareholders		(339)		297
Less: Dividends declared on preference shares		(1)		(1)
(Loss) earnings used in consolidated earnings per share		(340)		296
Less: Loss (earnings) from discontinued operations, net of tax		483		(169)
Remove: Non-controlling interests from discontinued operations		28		17
Earnings used in earnings per share from continuing operations		171		144

The weighted-average number of common shares outstanding, as well as a reconciliation of the weighted-average number of common shares outstanding used in the basic earnings per share computation to the weighted-average number of common shares outstanding used in the diluted earnings per share computation, is presented below:

	Three months ended March 31,
	2018		2017
Weighted-average number of common shares outstanding		709,927,881		726,523,831
Weighted-average number of vested DSUs		835,868		676,786
Basic		710,763,749		727,200,617
Effect of stock options and TRSUs		734,871		1,993,787
Diluted		711,498,620		729,194,404

Note 12: Financial Instruments

Financial assets and liabilities

Financial assets and liabilities in the consolidated statement of financial position were as follows:

March 31, 2018(1)	Cash, Trade and Other Receivables		Assets/ (Liabilities) at Fair Value through Earnings		Assets at Fair Value through Other Comprehensive Income		Derivatives Used for Hedging		Other Financial Liabilities		Total
Cash and cash equivalents		335		167		-		-		-		502
Trade and other receivables		839		-		-		-		-		839
Other financial assets - current		45		8		-		-		-		53
Other financial assets - non-current		16		-		23		-		-		39
Current indebtedness		-		-		-		-		(1,760)		(1,760)
Trade payables (see note 14)		-		-		-		-		(165)		(165)
Accruals (see note 14)		-		-		-		-		(704)		(704)
Other financial liabilities - current		-		(21)		-		-		(45)		(66)
Long-term indebtedness		-		-		-		-		(5,343)		(5,343)
Other financial liabilities - non current		-		-		-		(277)		(1)		(278)
Total		1,235		154		23		(277)		(8,018)		(6,883)

(1) Current presentation reflects the adoption of IFRS 9, Financial Instruments effective January 1, 2018.

Page 46

December 31, 2017	Cash, Trade and Other Receivables		Assets/ (Liabilities) at Fair Value through Earnings		Derivatives Used for Hedging		Available for Sale		Other Financial Liabilities		Total
Cash and cash equivalents		874		-		-		-		-		874
Trade and other receivables		1,457		-		-		-		-		1,457
Other financial assets - current		78		20		-		-		-		98
Other financial assets - non-current		49		1		-		33		-		83
Current indebtedness		-		-		-		-		(1,644)		(1,644)
Trade payables (see note 14)		-		-		-		-		(307)		(307)
Accruals (see note 14)		-		-		-		-		(1,477)		(1,477)
Other financial liabilities - current		-		(49)		-		-		(80)		(129)
Long-term indebtedness		-		-		-		-		(5,382)		(5,382)
Other financial liabilities - non current		-		(31)		(246)		-		(2)		(279)
Total		2,458		(59)		(246)		33		(8,892)		(6,706)

Cash and cash equivalents

Of total cash and cash equivalents, $20 million and $126 million at March 31, 2018 and December 31, 2017, respectively, were held in subsidiaries which have regulatory restrictions, contractual restrictions or operate in countries where exchange controls and other legal restrictions apply and were therefore not available for general use by the Company.

Long-term debt activity

The Company repaid the following notes in the three months ended March 31, 2017:

Month/Year	Transaction	Principal Amount (in millions)
	Notes repaid
February 2017	1.30% Notes, due 2017	US$550

Commercial paper

Under its commercial paper programs, the Company may issue up to $2.0 billion of notes. At March 31, 2018, current indebtedness included $389 million of outstanding commercial paper within the consolidated statement of financial position.

Credit facilities

The Company has two credit facilities available.

^●  The $2.4 billion credit facility matures in November 2021 and may be used to provide liquidity for general corporate purposes (including support for its commercial paper programs). At March 31, 2018, outstanding current borrowings were $368 million. The cost of borrowing was priced at LIBOR plus 100 basis points.

^●  The $1.5 billion credit facility is comprised of a $0.5 billion term loan facility and a $1.0 billion revolving credit facility, that expires on November 21, 2018. The term loan facility may be used to fund acquisitions up to June 30, 2018. The revolving credit facility may be used for general corporate purposes up to the expiration date. At March 31, 2018, outstanding current borrowings were $1.0 billion. The cost of borrowing was priced at LIBOR plus 87.5 basis points.

Page 47

Fair Value

The fair values of cash, trade and other receivables, trade payables and accruals approximate their carrying amounts because of the short-term maturity of these instruments. The fair value of long-term debt and related derivative instruments is set forth below.

Debt and Related Derivative Instruments

Carrying Amounts

Amounts recorded in the consolidated statement of financial position are referred to as “carrying amounts”. The carrying amounts of primary debt are reflected in “Long-term indebtedness” and “Current indebtedness” and the carrying amounts of derivative instruments are included in “Other financial assets” and “Other financial liabilities”, both current and non-current in the consolidated statement of financial position, as appropriate.

Fair Value

The fair value of debt is estimated based on either quoted market prices for similar issues or current rates offered to the Company for debt of the same maturity. The fair value of interest rate swaps is estimated based upon discounted cash flows using applicable current market rates and taking into account non-performance risk.

The following is a summary of debt and related derivative instruments that hedge the cash flows of debt:

	Carrying Amount				Fair Value
March 31, 2018	Primary Debt Instruments		Derivative Instruments Liability		Primary Debt Instruments		Derivative Instruments Liability
Bank and other		3		-		3		-
Commercial paper		389		-		389		-
Credit facilities		1,368		-		1,371		-
C$500, 3.369% Notes, due 2019		387		85		392		85
C$750, 4.35% Notes, due 2020		580		142		605		142
C$550, 3.309% Notes, due 2021		425		50		433		50
$500, 4.70% Notes, due 2019		499		-		513		-
$350, 3.95% Notes, due 2021		349		-		355		-
$600, 4.30% Notes, due 2023		596		-		614		-
$450, 3.85% Notes, due 2024		447		-		449		-
$500, 3.35% Notes, due 2026		495		-		477		-
$350, 4.50% Notes, due 2043		341		-		336		-
$350, 5.65% Notes, due 2043		341		-		389		-
$400, 5.50% Debentures, due 2035		393		-		436		-
$500, 5.85% Debentures, due 2040		490		-		573		-
Total		7,103		277		7,335		277
Current portion		1,760		-
Long-term portion		5,343		277

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	Carrying Amount				Fair Value
December 31, 2017	Primary Debt Instruments		Derivative Instruments Liability		Primary Debt Instruments		Derivative Instruments Liability
Bank and other		4		-		7		-
Commercial paper		1,637		-		1,641		-
C$500, 3.369% Notes, due 2019		398		75		405		75
C$750, 4.35% Notes, due 2020		597		128		629		128
C$550, 3.309% Notes, due 2021		437		43		450		43
$500, 4.70% Notes, due 2019		499		-		519		-
$350, 3.95% Notes, due 2021		349		-		361		-
$600, 4.30% Notes, due 2023		597		-		634		-
$450, 3.85% Notes, due 2024		447		-		459		-
$500, 3.35% Notes, due 2026		495		-		497		-
$350, 4.50% Notes, due 2043		341		-		361		-
$350, 5.65% Notes, due 2043		341		-		420		-
$400, 5.50% Debentures, due 2035		394		-		459		-
$500, 5.85% Debentures, due 2040		490		-		607		-
Total		7,026		246		7,449		246
Current portion		1,644		-
Long-term portion		5,382		246

Fair value estimation

The following fair value measurement hierarchy is used for financial instruments that are measured in the consolidated statement of financial position at fair value:

^●  Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

^●  Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and

^●  Level 3 - inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The levels used to determine fair value measurements for those instruments carried at fair value in the consolidated statement of financial position are as follows:

March 31, 2018(1)					Total
Assets	Level 1	Level 2		Level 3		Balance
Money market accounts	-	167		-		167
Forward exchange contracts(2)	-	8		-		8
Financial assets at fair value through earnings	-	175		-		175
Financial assets at fair value through other comprehensive income(3)	5	18		-		23
Total assets	5	193		-		198
Liabilities
Embedded derivatives(4)	-	(1	)	-		(1	)
Forward exchange contracts(2)	-	(20	)	-		(20	)
Financial liabilities at fair value through earnings	-	(21	)	-		(21	)
Derivatives used for hedging(5)	-	(277	)	-		(277	)
Total liabilities	-	(298	)	-		(298	)

Page 49

December 31, 2017				Total
Assets	Level 1	Level 2	Level 3		Balance
Embedded derivatives(4)	-	12	-		12
Forward exchange contracts(2)	-	9	-		9
Financial assets at fair value through earnings	-	21	-		21
Available for sale investments(3)	7	26	-		33
Total assets	7	47	-		54
Liabilities
Embedded derivatives(4)	-	(63)	-		(63)
Forward exchange contracts(2)	-	(16)	-		(16)
Contingent consideration(6)	-	-	(1)		(1)
Financial liabilities at fair value through earnings	-	(79)	(1)		(80)
Derivatives used for hedging(5)	-	(246)	-		(246)
Total liabilities	-	(325)	(1)		(326)

(1) Current presentation reflects the adoption of IFRS 9, Financial Instruments effective January 1, 2018.

(2) Used to manage foreign exchange risk on cash flows excluding indebtedness.

(3) Investments in entities over which the Company does not have control, joint control or significant influence.

(4) Largely related to U.S. dollar pricing of customer agreements by subsidiaries outside of the U.S.

(5) Comprised of fixed-to-fixed cross-currency swaps on indebtedness.

(6) Obligations to pay additional consideration for prior acquisitions, based upon performance measures contractually agreed at the time of purchase.

The Company recognizes transfers into and out of the fair value measurement hierarchy levels at the end of the reporting period in which the event or change in circumstances that caused the transfer occurred. There were no transfers between hierarchy levels for the three months ended March 31, 2018.

Valuation Techniques

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Specific valuation techniques used to value financial instruments include:

^●  quoted market prices or dealer quotes for similar instruments;

^●  the fair value of cross-currency interest rate swaps and forward foreign exchange contracts is calculated as the present value of the estimated future cash flows based on observable yield curves; and

^●  the fair value of contingent consideration is calculated based on estimates of future revenue performance.

Note 13: Other Non-Current Assets

	March 31,		December 31,
	2018		2017
Net defined benefit plan surpluses		18		30
Cash surrender value of life insurance policies		302		302
Equity method investments		155		167
Deferred commissions		74		-
Other non-current assets		26		106
Total other non-current assets		575		605

Page 50

Note 14: Payables, Accruals and Provisions

	March 31,		December 31,
	2018		2017
Trade payables		165		307
Accruals		704		1,477
Provisions		91		166
Other current liabilities		62		136
Total payables, accruals and provisions		1,022		2,086

Note 15: Provisions and Other Non-Current Liabilities

	March 31,		December 31,
	2018		2017
Net defined benefit plan obligations		733		984
Deferred compensation and employee incentives		139		159
Provisions		66		124
Uncertain tax positions		286		337
Other non-current liabilities		39		136
Total provisions and other non-current liabilities		1,263		1,740

Note 16: Capital

Share repurchases

The Company may buy back shares (and subsequently cancel them) from time to time as part of its capital strategy. Share repurchases are effected under a normal course issuer bid (“NCIB”). Under the current NCIB, the Company may repurchase up to 36 million common shares between May 30, 2017 and May 29, 2018 in open market transactions on the TSX, the NYSE and/or other exchanges and alternative trading systems, if eligible, or by such other means as may be permitted by the TSX and/or NYSE or under applicable law, including private agreement purchases if the Company receives an issuer bid exemption order from applicable securities regulatory authorities in Canada for such purchases. The price that the Company will pay for shares in open market transactions under the NCIB will be the market price at the time of purchase or such other price as may be permitted by TSX. In the three months ended March 31, 2017, the Company privately repurchased 5 million common shares at a discount to the then-prevailing market price.

The Company did not make share repurchases in the three months ended March 31, 2018. In the three months ended March 31, 2017, the Company repurchased 6.8 million common shares for $284 million at an average price per share of $41.69.

Decisions regarding any future repurchases will depend on the timing of the closing of the proposed strategic partnership transaction and other factors, such as market conditions, share price, and other opportunities to invest capital for growth. The Company may elect to suspend or discontinue its share repurchases at any time, in accordance with applicable laws.

Dividends

Dividends on common shares are declared in U.S. dollars. In the consolidated statement of cash flow, dividends paid on common shares are shown net of amounts reinvested in the Company under its dividend reinvestment plan. Details of dividends declared per share and dividends paid on common shares are as follows:

	Three months ended March 31,
	2018		2017
Dividends declared per common share	$	0.345	$	0.345
Dividends declared		245		251
Dividends reinvested		(9)		(9)
Dividends paid		236		242

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Note 17: Supplemental Cash Flow Information

Details of “Other” in the consolidated statement of cash flow are as follows:

	Three months ended March 31,
	2018		2017
Non-cash employee benefit charges		36		41
Net (gains) losses on foreign exchange and derivative financial instruments		(5)		26
Other		16		(7)
		47		60

Details of “Changes in working capital and other items” are as follows:

	Three months ended March 31,
	2018		2017
Trade and other receivables		91		(8)
Prepaid expenses and other current assets		1		2
Other financial assets		35		28
Payables, accruals and provisions		(172)		(175)
Deferred revenue		(54)		(37)
Other financial liabilities		(35)		(36)
Income taxes		(20)		(25)
Other(1)		(18)		(14)
		(172)		(265)

(1) Includes $(8) million (2017 – $(8) million) related to employee benefit plans.

Details of income taxes paid are as follows:

	Three months ended March 31,
	2018		2017
Operating activities – continuing operations		(35)		(28)
Operating activities – discontinued operations		(27)		(34)
Total income taxes paid		(62)		(62)

Note 18: Contingencies

Lawsuits and legal claims

The Company is engaged in various legal proceedings, claims, audits and investigations that have arisen in the ordinary course of business. These matters include, but are not limited to, employment matters, commercial matters, defamation claims and intellectual property infringement claims. The outcome of all of the matters against the Company is subject to future resolution, including the uncertainties of litigation. Based on information currently known to the Company and after consultation with outside legal counsel, management believes that the ultimate resolution of any such matters, individually or in the aggregate, will not have a material adverse impact on the Company’s financial condition taken as a whole.

Uncertain tax positions

The Company is subject to taxation in numerous jurisdictions and is routinely under audit by many different taxing authorities in the ordinary course of business. There are many transactions and calculations during the course of business for which the ultimate tax determination is uncertain, as taxing authorities may challenge some of the Company’s positions and propose adjustments or changes to its tax filings.

As a result, the Company maintains provisions for uncertain tax positions that it believes appropriately reflect its risk. These provisions are made using the Company’s best estimates of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these provisions at the end of each reporting period and adjusts them based on changing facts and circumstances. Due to the uncertainty associated with tax audits, it is possible that at some future date, liabilities resulting from such audits or related litigation could vary significantly from the Company’s provisions. However, based on currently enacted legislation, information currently known by the Company and after consultation with outside tax advisors, management believes that the ultimate resolution of any such matters, individually or in the aggregate, will not have a material adverse impact on the Company’s financial condition taken as a whole.

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Note 19: Related Party Transactions

As of March 31, 2018, Woodbridge beneficially owned approximately 63% of the Company’s shares.

There were no new significant related party transactions during the first quarter of 2018. Refer to “Related party transactions” disclosed in note 29 of the Company’s consolidated financial statements for the year ended December 31, 2017, which are included in the Company’s 2017 annual report, for information regarding related party transactions.

Note 20: Subsequent Events

Transactions with Woodbridge

In April 2018, the Company sold a Canadian wholly owned subsidiary to a company affiliated with Woodbridge for $16 million. Consistent with prior transactions, these proceeds will be recorded as a gain in “Other operating (losses) gains, net” within the consolidated income statement in the second quarter of 2018.

Share repurchases

In May 2018, the Company announced that it may buy back up to $500 million of its shares prior to the closing of the proposed Financial & Risk transaction under its NCIB. Decisions regarding any future repurchases will depend on the timing of the closing of the proposed strategic partnership transaction and other factors, such as market conditions, share price and other opportunities to invest capital for growth.

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