S&P Global (SPGI) 8-K Results of Operations and Financial Condition

McGraw Hill Financial

Recasted Selected Financial Information for Continuing Operations

(dollars in millions, except per share data)

(unaudited)	2014
	Q1				Q2				Q3				Q3 YTD
	Reported1		Performance		Reported1		Performance		Reported1		Performance		Reported1		Performance
Revenue	$	1,196	$	1,196	$	1,302	$	1,302	$	1,263	$	1,263	$	3,761	$	3,761
Segment operating profit (a)	454		454		521		521		404		507		1,379		1,482
Unallocated expense (b)	34		34		45		45		38		32		118		111
Operating profit	420		420		476		476		366		475		1,261		1,371
Interest expense, net	14		14		14		14		12		12		40		40
Income before taxes on income	406		406		462		462		354		463		1,221		1,331
Provision for taxes on income	138		138		152		152		139		155		428		445
Income from continuing operations	$	268	$	268	$	310	$	310	$	215	$	308	$	793	$	886
Income from continuing operations:
Diluted EPS	$	0.87	$	0.87	$	1.04	$	1.04	$	0.68	$	1.02	$	2.59	$	2.93

Totals presented may not sum due to rounding

¹Reported amounts above reflect the reclassification of McGraw Hill Construction out of McGraw Hill Financial's continuing operations

Non-GAAP adjustments included in the reported amounts and excluded from performance amounts in the table above:

(a) Q3 2014 adjustments include a $60 million charge for certain regulatory matters, restructuring charges of $39 million, and $4 million of professional fees largely related to corporate development activities

(b) Q3 2014 adjustment includes restructuring charges of $7 million

McGraw Hill Financial

Recasted Selected Financial Information for Continuing Operations

(dollars in millions, except per share data)

(unaudited)	2013
	Q1				Q2				Q3				Q4				Full Year
	Reported1		Performance		Reported1		Performance		Reported1		Performance		Reported1		Performance		Reported1		Performance
Revenue	$	1,140	$	1,140	$	1,205	$	1,205	$	1,152	$	1,152	$	1,206	$	1,206	$	4,702	$	4,702
Segment operating profit (a) (b)	417		417		468		468		444		423		364		389		1,693		1,697
Unallocated expense (c) (d) (e) (f)	148		28		45		34		49		38		93		42		335		142
Operating profit	269		389		423		434		395		385		271		347		1,358		1,555
Interest expense, net	15		15		16		16		14		14		14		14		59		59
Income before taxes on income	254		374		407		418		381		370		257		333		1,299		1,496
Provision for taxes on income	86		131		141		146		123		129		75		100		425		507
Income from continuing operations	$	168	$	243	$	266	$	272	$	258	$	241	$	182	$	233	$	874	$	989
Income from continuing operations:
Diluted EPS	$	0.52	$	0.78	$	0.87	$	0.90	$	0.82	$	0.77	$	0.60	$	0.78	$	2.80	$	3.22

Totals presented may not sum due to rounding

¹ Reported amounts above reflect the reclassification of McGraw Hill Construction out of McGraw Hill Financial's continuing operations

Non-GAAP adjustments included in the reported amounts and excluded from performance amounts in the table above:

(a) Q3 2013 adjustments include restructuring charges of $4 million, a gain on the sale of an equity investment held by CRISIL of $16 million, a loss on the sale of Financial Communications of $3 million, and a gain on the sale of Aviation Week of $11 million

(b) Q4 2013 adjustment includes a $26 million restructuring charge

(c) Q1 2013 adjustments include costs for the separation of MHE of $44 million, and pre-tax legal settlements of $77 million

(d) Q2 2013 adjustment includes $10 million of costs for the separation of MHE

(e) Q3 2013 adjustment includes $10 million of costs for the separation of MHE

(f) Q4 2013 adjustments include a $36 million non-cash impairment charge related to the sale of a data center, and a $13 million charge related to terminating various leases