Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | S&P Global Inc. | |
Entity Central Index Key | 0000064040 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Emerging Growth Company | false | |
Small Business | false | |
Entity Common Stock, Shares Outstanding | 246.2 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 1,571 | $ 1,567 |
Expenses: | ||
Operating-related expenses | 439 | 430 |
Selling and general expenses | 375 | 381 |
Depreciation | 20 | 21 |
Amortization of intangibles | 32 | 24 |
Total expenses | 866 | 856 |
Operating profit | 705 | 711 |
Other expense (income), net | 103 | (4) |
Interest expense, net | 36 | 34 |
Income before taxes on income | 566 | 681 |
Provision for taxes on income | 113 | 147 |
Net income | 453 | 534 |
Less: net income attributable to noncontrolling interests | (43) | (43) |
Net income attributable to S&P Global Inc. | $ 410 | $ 491 |
Net income: | ||
Basic (USD per share) | $ 1.66 | $ 1.94 |
Diluted (USD per share) | $ 1.65 | $ 1.93 |
Weighted-average number of common shares outstanding: | ||
Basic (shares) | 246.7 | 252.4 |
Diluted (shares) | 248.3 | 254.4 |
Actual shares outstanding at period end (shares) | 246.1 | 249.4 |
Dividend declared per common share (USD per share) | $ 0.57 | $ 0.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 453 | $ 534 |
Other comprehensive income: | ||
Foreign currency translation adjustment | 17 | 23 |
Income tax effect | 2 | (18) |
Foreign currency translation adjustment, net of income tax effect | 19 | 5 |
Pension and other postretirement benefit plans | 114 | 4 |
Income tax effect | (28) | (1) |
Pension and other postretirement benefit plans, net of income tax effect | 86 | 3 |
Unrealized gain on investment and forward exchange contracts | 5 | |
Income tax effect | (1) | |
Unrealized gain on investment and forward exchange contracts, net of income tax effect | 4 | |
Unrealized gain on investment and forward exchange contracts | 1 | |
Income tax effect | 0 | |
Unrealized gain on investment and forward exchange contracts, net of income tax effect | 1 | |
Comprehensive income | 562 | 543 |
Less: comprehensive income attributable to nonredeemable noncontrolling interests | (3) | (3) |
Less: comprehensive income attributable to redeemable noncontrolling interests | (40) | (40) |
Comprehensive income attributable to S&P Global Inc. | $ 519 | $ 500 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,403 | $ 1,917 |
Restricted cash | 33 | 41 |
Accounts receivable, net of allowance for doubtful accounts: 2019 - $37; 2018 - $34 | 1,539 | 1,449 |
Prepaid and other current assets | 207 | 197 |
Total current assets | 3,182 | 3,604 |
Property and equipment, net of accumulated depreciation: 2019 - $613; 2018 - $596 | 268 | 270 |
Right of use assets | 675 | 0 |
Goodwill | 3,533 | 3,535 |
Other intangible assets, net | 1,492 | 1,524 |
Other non-current assets | 570 | 525 |
Total assets | 9,720 | 9,458 |
Current liabilities: | ||
Accounts payable | 217 | 211 |
Accrued compensation and contributions to retirement plans | 200 | 354 |
Income taxes currently payable | 134 | 72 |
Unearned revenue | 1,689 | 1,641 |
Other current liabilities | 415 | 351 |
Total current liabilities | 2,655 | 2,629 |
Long-term debt | 3,663 | 3,662 |
Lease liabilities — non-current | 617 | 0 |
Pension and other postretirement benefits | 227 | 229 |
Other non-current liabilities | 523 | 634 |
Total liabilities | 7,685 | 7,154 |
Redeemable noncontrolling interest (Note 8) | 1,647 | 1,620 |
Commitments and contingencies (Note 12) | ||
Equity: | ||
Common stock | 294 | 294 |
Additional paid-in capital | 772 | 833 |
Retained income | 11,532 | 11,284 |
Accumulated other comprehensive loss | (633) | (742) |
Less: common stock in treasury | (11,638) | (11,041) |
Total equity — controlling interests | 327 | 628 |
Total equity — noncontrolling interests | 61 | 56 |
Total equity | 388 | 684 |
Total liabilities and equity | $ 9,720 | $ 9,458 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 37 | $ 34 |
Accumulated depreciation | $ 613 | $ 596 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities: | ||
Net income | $ 453 | $ 534 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 20 | 21 |
Amortization of intangibles | 32 | 24 |
Provision for losses on accounts receivable | 7 | 8 |
Deferred income taxes | 10 | 15 |
Stock-based compensation | 12 | 13 |
Pension settlement charge, net of taxes | 85 | 0 |
Other | 8 | 1 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable | (87) | 7 |
Prepaid and other current assets | (34) | (21) |
Accounts payable and accrued expenses | (161) | (289) |
Unearned revenue | (3) | 27 |
Accrued legal settlements | (1) | (29) |
Other current liabilities | (59) | 19 |
Net change in prepaid/accrued income taxes | 75 | 74 |
Net change in other assets and liabilities | (64) | (44) |
Cash provided by operating activities | 293 | 360 |
Investing Activities: | ||
Capital expenditures | (20) | (33) |
Acquisitions, net of cash acquired | (1) | (57) |
Changes in short-term investments | 0 | 3 |
Cash used for investing activities | (21) | (87) |
Financing Activities: | ||
Dividends paid to shareholders | (141) | (127) |
Distributions to noncontrolling interest holders, net | (18) | (50) |
Repurchase of treasury shares | (644) | (1,100) |
Exercise of stock options | 23 | 10 |
Employee withholding tax on share-based payments | (49) | (49) |
Cash used for financing activities | (829) | (1,316) |
Effect of exchange rate changes on cash | 35 | 20 |
Net change in cash, cash equivalents, and restricted cash | (522) | (1,023) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,958 | 2,779 |
Cash, cash equivalents, and restricted cash at end of period | $ 1,436 | $ 1,756 |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Millions | Total | Total SPGI Equity | Common Stock $1 par | Additional Paid-in Capital | Retained Income | Accumulated Other Comprehensive Loss | Less: Treasury Stock | Noncontrolling Interests | |
Balance at beginning of period at Dec. 31, 2017 | $ 768 | $ 711 | $ 412 | $ 525 | $ 10,025 | $ (649) | $ (9,602) | $ 57 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | [1] | 503 | 500 | 491 | 9 | 3 | |||
Dividends | (127) | (127) | (127) | ||||||
Share repurchases | (1,100) | (1,100) | (150) | 950 | |||||
Employee stock plans | (24) | (25) | (40) | (15) | 1 | ||||
Change in redemption value of redeemable noncontrolling interest | 9 | 9 | 9 | ||||||
Other | [2] | 36 | 36 | 26 | 10 | ||||
Balance at end of period at Mar. 31, 2018 | 65 | 4 | 412 | 335 | 10,424 | (630) | (10,537) | 61 | |
Balance at beginning of period at Dec. 31, 2018 | 684 | 628 | 294 | 833 | 11,284 | (742) | (11,041) | 56 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Comprehensive income | [1] | 522 | 519 | 410 | 109 | 3 | |||
Dividends | (141) | (141) | (141) | ||||||
Share repurchases | (644) | (644) | 644 | ||||||
Employee stock plans | (14) | (14) | (61) | (47) | |||||
Capital contribution from noncontrolling interest | (36) | (36) | (36) | ||||||
Change in redemption value of redeemable noncontrolling interest | 15 | 15 | 15 | ||||||
Other | 2 | 2 | |||||||
Balance at end of period at Mar. 31, 2019 | $ 388 | $ 327 | $ 294 | $ 772 | $ 11,532 | $ (633) | $ (11,638) | $ 61 | |
[1] | Excludes $40 million attributable to our redeemable noncontrolling interest. | ||||||||
[2] | Reflects opening balance sheet adjustments related to the adoption of the new revenue recognition standard and the reclassification of the unrealized loss on investments from Accumulated other comprehensive loss to Retained income. |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Net income attributable to noncontrolling interest | $ 40 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation S&P Global Inc. (together with its consolidated subsidiaries, "S&P Global," the “Company,” “we,” “us” or “our”) is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. Our operations consist of four reportable segments: S&P Global Ratings ("Ratings"), S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices"). • Ratings is an independent provider of credit ratings, research, and analytics, offering investors and other market participants information, ratings and benchmarks. • Market Intelligence is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services. • Platts is the leading independent provider of information and benchmark prices for the commodity and energy markets. • Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors. Beginning in the first quarter of 2019, the contract obligations for revenue from Kensho Technologies Inc.’s (“Kensho”) major customers were transferred to Market Intelligence for fulfillment. As a result of this transfer, from January 1, 2019 revenue from contracts with Kensho’s customers is reflected in Market Intelligence’s results. In 2018, the revenue from contracts with Kensho’s customers was reported in Corporate revenue. See Note 2 — Acquisitions and Divestitures for additional information. The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. Therefore, the financial statements included herein should be read in conjunction with the financial statements and notes included in our Form 10-K for the year ended December 31, 2018 (our “Form 10-K”). Certain prior-year amounts have been reclassified to conform with current presentation. In the opinion of management, all normal recurring adjustments considered necessary for a fair statement of the results of the interim periods have been included. The operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the full year. Our critical accounting estimates are disclosed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations , in our Form 10-K. On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for doubtful accounts, valuation of long-lived assets, goodwill and other intangible assets, pension plans, incentive compensation and stock-based compensation, income taxes, contingencies and redeemable noncontrolling interests. Since the date of our Form 10-K, there have been no material changes to our critical accounting policies and estimates. Restricted Cash Restricted cash of $28 million and $32 million included in our consolidated balance sheets as of March 31, 2019 and December 31, 2018, respectively, includes amounts held in escrow accounts in connection with our acquisition of Kensho. Contract Assets Contract assets include unbilled amounts from when the Company transfers service to a customer before a customer pays consideration or before payment is due. As of March 31, 2019 and December 31, 2018 , contract assets were $34 million and $26 million , respectively, and are included in accounts receivable in our consolidated balance sheets. Unearned Revenue We record unearned revenue when cash payments are received or due in advance of our performance. The increase in the unearned revenue balance for the three months ended March 31, 2019 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $746 million of revenues recognized that were included in the unearned revenue balance at the beginning of the period. Remaining Performance Obligations Remaining performance obligations represent the transaction price of contracts for work that has not yet been performed. As of March 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was $1.6 billion . We expect to recognize revenue on approximately half and three-quarters of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. We do not disclose the value of unfulfilled performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts where revenue is a usage-based royalty promised in exchange for a license of intellectual property. Costs to Obtain a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that the costs associated with certain sales commission programs are incremental to the costs to obtain contracts with customers and therefore meet the criteria to be capitalized. Total capitalized costs to obtain a contract were $98 million and $81 million as of March 31, 2019 and March 31, 2018 , respectively, and are included in prepaid and other current assets and other non-current assets on our consolidated balance sheets. The capitalized asset will be amortized over a period consistent with the transfer to the customer of the goods or services to which the asset relates, calculated based on the customer term and the average life of the products and services underlying the contracts which has been determined to be approximately 5 years . The expense is recorded within selling and general expenses. We expense sales commissions when incurred if the amortization period is one year or less. These costs are recorded within selling and general expenses. Other Expense (Income), net The components of other expense (income), net for the three months ended March 31 are as follows: (in millions) 2019 2018 Other components of net periodic benefit cost 1 $ 103 $ (8 ) Net loss from investments — 4 Other expense (income), net $ 103 $ (4 ) 1 The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The non-cash pre-tax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions 2019 During the three months ended March 31, 2019, we did not complete any material acquisitions. 2018 In April of 2018, we acquired Kensho for approximately $550 million , net of cash acquired, in a mix of cash and stock. Kensho is a leading-edge provider of next-generation analytics, artificial intelligence, machine learning, and data visualization systems to Wall Street's premier global banks and investment institutions, as well as the National Security community. The acquisition will strengthen S&P Global's emerging technology capabilities, enhance our ability to deliver essential, actionable insights that will transform the user experience for our clients, and accelerate efforts to improve efficiency and effectiveness of our core internal operations. The acquisition of Kensho is not material to our consolidated financial statements. In February of 2018, Market Intelligence acquired Panjiva, Inc. ("Panjiva"), a privately-held company that provides deep, differentiated, sector-relevant insights on global supply chains, leveraging data science and technology to make sense of large, unstructured datasets. The acquisition will help strengthen the insights, products and data that we provide to our clients throughout the world. The acquisition of Panjiva is not material to our consolidated financial statements. In January of 2018, CRISIL, included within our Ratings segment, acquired a 100% stake in Pragmatix Services Private Limited ("Pragmatix"), a data analytics company focused on delivering cutting edge solutions in the "data to intelligence" life cycle to the Banking, Financial Services and Insurance vertical. The acquisition will strengthen CRISIL's position as an agile, innovative and global analytics company. The acquisition of Pragmatix is not material to our consolidated financial statements. Divestitures 2019 In March of 2019, we entered into an agreement to sell Standard & Poor's Investment Advisory Services LLC ("SPIAS"), a business within our Market Intelligence segment, to Goldman Sachs Asset Management ("GSAM"). SPIAS provides non-discretionary investment advice across institutional sub-advisory and intermediary distribution channels globally. The transaction is expected to close in mid-2019. The assets of SPIAS of $8 million and $9 million have been classified as held for sale, which is included in prepaid and other current assets in our consolidated balance sheets as of March 31, 2019 and December 31, 2018, respectively. The operating profit of our business held for sale for the three months ending March 31, 2019 and 2018 is as follows: (in millions) Three Months Ended March 31, 2019 2018 Operating profit $ 2 $ 2 2018 During the three months ended March 31, 2018, we did not complete any dispositions. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate was 19.9% and 21.6% for the three months ended March 31, 2019 and March 31, 2018 , respectively. The decrease in 2019 was primarily due to the recognition of excess tax benefits associated with share-based payments in the statement of income. At the end of each interim period, we estimate the annual effective tax rate and apply that rate to our ordinary quarterly earnings. The tax expense or benefit related to significant unusual or infrequently occurring items that will be separately reported or reported net of their related tax effect, and are individually computed, is recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs. The Company is continuously subject to tax examinations in various jurisdictions. As of March 31, 2019 and December 31, 2018 , the total amount of federal, state and local, and foreign unrecognized tax benefits was $113 million and $147 million , respectively, exclusive of interest and penalties. We recognize accrued interest and penalties related to unrecognized tax benefits in interest expense and operating-related expense, respectively. As of March 31, 2019 and December 31, 2018 , we had $19 million and $35 million , respectively, of accrued interest and penalties associated with unrecognized tax benefits. The reduction in uncertain tax positions and associated accrued interest relates primarily to settlements of tax audits with New York City. Based on the current status of income tax audits, we believe that the total amount of unrecognized tax benefits may decrease by approximately $5 million in the next twelve months as a result of the resolution of tax examinations. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of long-term debt outstanding is as follows: (in millions) March 31, December 31, 3.3% Senior Notes, due 2020 1 698 698 4.0% Senior Notes, due 2025 2 693 693 4.4% Senior Notes, due 2026 3 893 892 2.95% Senior Notes, due 2027 4 493 493 6.55% Senior Notes, due 2037 5 396 396 4.5% Senior Notes, due 2048 6 490 490 Long-term debt $ 3,663 $ 3,662 1 Interest payments are due semiannually on February 14 and August 14, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $2 million . 2 Interest payments are due semiannually on June 15 and December 15, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 3 Interest payments are due semiannually on February 15 and August 15, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 4 Interest payments are due semiannually on January 22 and July 22, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 5 Interest payments are due semiannually on May 15 and November 15, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $4 million . 6 Interest payments are due semiannually on May 15 and November 15, beginning on November 15, 2018, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $10 million . The fair value of our long-term debt borrowings was $4.0 billion and $3.8 billion as of March 31, 2019 and December 31, 2018 , respectively, and was estimated based on quoted market prices. We have the ability to borrow a total of $1.2 billion through our commercial paper program, which is supported by our revolving $1.2 billion five -year credit agreement (our "credit facility") that we entered into on June 30, 2017. This credit facility will terminate on June 30, 2022. As of March 31, 2019 and December 31, 2018 , there were no commercial paper borrowings outstanding. Depending on our corporate credit rating, we pay a commitment fee of 8 to 17.5 basis points for our credit facility, whether or not amounts have been borrowed. We currently pay a commitment fee of 10 basis points. The interest rate on borrowings under our credit facility is, at our option, calculated using rates that are primarily based on either the prevailing London Inter-Bank Offer Rate, the prime rate determined by the administrative agent or the Federal Funds Rate. For certain borrowings under this credit facility, there is also a spread based on our corporate credit rating. Our credit facility contains certain covenants. The only financial covenant requires that our indebtedness to cash flow ratio, as defined in our credit facility, is not greater than 4 to 1 , and this covenant level has never been exceeded. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Our exposure to market risk includes changes in foreign exchange rates. We have operations in foreign countries where the functional currency is primarily the local currency. For international operations that are determined to be extensions of the parent company, the U.S. dollar is the functional currency. We typically have naturally hedged positions in most countries from a local currency perspective with offsetting assets and liabilities. As of March 31, 2019 and December 31, 2018 , we have entered into foreign exchange forward contracts to mitigate or hedge the effect of adverse fluctuations in foreign currency exchange rates. Foreign currency forward contracts are recorded at fair value that is based on foreign currency exchange rates in active markets; therefore, we classify these derivative contracts within Level 2 of the fair value hierarchy. We do not enter into any derivative financial instruments for speculative purposes. Undesignated Derivative Instruments During the three months ended March 31, 2019 and twelve months ended December 31, 2018, we entered into foreign exchange forward contracts in order to mitigate the change in fair value of specific assets and liabilities in the consolidated balance sheets. These forward contracts do not qualify for hedge accounting. As of March 31, 2019 , the aggregate notional value of these outstanding forward contracts was $85 million . The changes in fair value of these forward contracts are recorded in prepaid and other assets and other current liabilities in the consolidated balance sheet with their corresponding change in fair value recognized into selling and general expenses in the consolidated statement of income. The amount recorded in selling and general expense for the three months ended March 31, 2019 related to these contracts was a net gain of $2 million . Cash Flow Hedges During the three months ended March 31, 2019 and twelve months ended December 31, 2018, we entered into a series of foreign exchange forward contracts to hedge a portion of the Indian rupee, British pound, and Euro exposures through the first quarter of 2020 and the fourth quarter of 2019, respectively. These contracts are intended to offset the impact of movement of exchange rates on future revenue and operating costs and are scheduled to mature within twelve months . The changes in the fair value of these contracts are initially reported in accumulated other comprehensive loss in our consolidated balance sheet and are subsequently reclassified into revenue and selling and general expenses in the same period that the hedged transaction affects earnings. As of March 31, 2019 , we estimate that $7 million of the net gains related to derivatives designated as cash flow hedges recorded in other comprehensive income is expected to be reclassified into earnings within the next twelve months. There was no material hedge ineffectiveness for the three months ended March 31, 2019 . As of March 31, 2019 , the aggregate notional value of our outstanding foreign currency forward contracts designated as cash flow hedges was $254 million . The following table provides information on the location and fair value amounts of our cash flow hedges as of March 31, 2019 and December 31, 2018 : (in millions) March 31, December 31, Balance Sheet Location 2019 2018 Derivatives designated as cash flow hedges: Prepaid and other current assets Foreign exchange forward contracts $ 7 $ 3 The following table provides information on the location and amounts of pre-tax gains on our cash flow hedges for the three months ended March 31 : (in millions) Gain recognized in Accumulated Other Comprehensive Loss (effective portion) Location of Gain reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) Gain reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) Cash flow hedges - designated as hedging instruments 2019 2018 2019 2018 Foreign exchange forward contracts $ 4 $ 1 Revenue, Selling and general expenses $ 2 $ 1 The activity related to the change in unrealized gains (losses) in accumulated other comprehensive loss was as follows for the three months ended March 31 : (in millions) Three Months 2019 2018 Net unrealized gains on cash flow hedges, net of taxes, beginning of period $ 3 $ 2 Change in fair value, net of tax 6 2 Reclassification into earnings, net of tax (2 ) (1 ) Net unrealized gains on cash flow hedges, net of taxes, end of period $ 7 $ 3 |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits We maintain a number of active defined contribution retirement plans for our employees. The majority of our defined benefit plans are frozen. As a result, no new employees will be permitted to enter these plans and no additional benefits for current participants in the frozen plans will be accrued. We have supplemental benefit plans providing senior management with supplemental retirement, disability and death benefits. Certain supplemental retirement benefits are based on final monthly earnings. In addition, we sponsor a voluntary 401(k) plan under which we may match employee contributions up to certain levels of compensation as well as profit-sharing plans under which we contribute a percentage of eligible employees' compensation to the employees' accounts. We also provide certain medical, dental and life insurance benefits for active and retired employees and eligible dependents. The medical and dental plans and supplemental life insurance plan are contributory, while the basic life insurance plan is noncontributory. We currently do not prefund any of these plans. We recognize the funded status of our defined benefit retirement and postretirement plans in the consolidated balance sheets, with a corresponding adjustment to accumulated other comprehensive loss, net of taxes. The amounts in accumulated other comprehensive loss represent unrecognized actuarial losses and unrecognized prior service costs. These amounts will be subsequently recognized as net periodic benefit cost pursuant to our accounting policy for amortizing such amounts. Net periodic benefit cost for our retirement and postretirement plans other than the service cost component are included in other income, net in our consolidated statements of income. The components of net periodic benefit cost for our retirement plans and postretirement plans for the three months ended March 31 are as follows: (in millions) 2019 2018 Service cost $ 1 $ 1 Interest cost 19 18 Expected return on assets (31 ) (32 ) Amortization of prior service credit / actuarial loss 2 4 Net periodic benefit cost (9 ) (9 ) Settlement charge 1 113 — Net benefit cost $ 104 $ (9 ) 1 The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The non-cash pre-tax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan. Net periodic benefit cost related to our postretirement plans reflected in the table above was not material for the three months ended March 31, 2019 and 2018 , respectively. As discussed in our Form 10-K, we changed certain discount rate assumptions for our retirement and postretirement plans which became effective on January 1, 2019. The effect of the assumption changes on retirement and postretirement expense for the three months ended March 31, 2019 did not have a material impact to our financial position, results of operations or cash flows. In the first three months of 2019 , we contributed $39 million to our retirement plans and expect to make additional required contributions of approximately $8 million to our retirement plans during the remainder of the year. We may elect to make additional non-required contributions depending on investment performance and the pension plan status in the remaining nine months of 2019 . |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We issue stock-based incentive awards to our eligible employees and Directors under the 2002 Employee Stock Incentive Plan and a Director Deferred Stock Ownership Plan. The 2002 Employee Stock Incentive Plan permits the granting of nonqualified stock options, stock appreciation rights, performance stock, restricted stock and other stock-based awards. In 2018, we also made a one-time issuance of incentive stock options under the 2002 Employee Stock Incentive Plan to replace Kensho employees' stock options that were assumed in connection with our acquisition of Kensho in April of 2018. Stock-based compensation for the three months ended March 31 is as follows: (in millions) 2019 2018 Stock option expense $ — $ 1 Restricted stock and unit awards expense 12 12 Total stock-based compensation expense $ 12 $ 13 Total unrecognized compensation expense related to unvested stock option awards and unvested restricted stock and unit awards as of March 31, 2019 was $1 million and $58 million , respectively, which is expected to be recognized over a weighted average period of 1.3 years and 1.7 years , respectively. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Stock Repurchases On December 4, 2013, the Board of Directors approved a share repurchase program authorizing the purchase of 50 million shares, which was approximately 18% of the total shares of our outstanding common stock at that time. In any period, share repurchase transactions could result in timing differences between the recognition of those repurchases and their settlement for cash. This could result in a difference between the cash used for financing activities related to common stock repurchased and the comparable change in equity. Share repurchases for the three months ended March 31 were as follows: (in millions, except average price) 2019 2018 Total number of shares purchased 1 3.4 5.0 Average price paid per share 2 $ 184.51 $ 178.11 Total cash utilized $ 644 $ 1,100 1 The three months ended March 31, 2019 and 2018 include shares received as part of our accelerated share repurchase agreements described in more detail below. 2 Average price paid per share information does not include the accelerated share repurchase agreements as discussed in more detail below. Our purchased shares may be used for general corporate purposes, including the issuance of shares for stock compensation plans and to offset the dilutive effect of the exercise of employee stock options. As of March 31, 2019 , approximately 7.2 million shares remained available under the current share repurchase program which has no expiration date and purchases under this program may be made from time to time on the open market and in private transactions, depending on market conditions. Accelerated Share Repurchase Agreements 2019 We entered into an accelerated share repurchase ("ASR") agreement with a financial institution on February 11, 2019 to initiate share repurchases aggregating $500 million . The ASR agreement was structured as an uncapped ASR agreement in which we paid $500 million and received an initial delivery of approximately 2.2 million shares, representing 85% of the $500 million at a price equal to the then market price of the Company. The total number of shares repurchased under the ASR agreement will be equal to $500 million divided by the volume weighted-average share price, less a discount. The final settlement of the transaction under the ASR is expected to be completed no later than the third quarter of 2019. The repurchased shares are held in Treasury. The ASR agreement was executed under the current share repurchase program, approved by the Board of Directors on December 4, 2013. 2018 We entered into an ASR agreement with a financial institution on October 29, 2018 to initiate share repurchases aggregating $500 million . The ASR agreement was structured as an uncapped ASR agreement in which we paid $500 million and received an initial delivery of approximately 2.5 million shares, representing 85% of the $500 million at a price equal to the then market price of the Company. We completed the ASR agreement on January 2, 2019 and received an additional 0.4 million shares. We repurchased a total of 2.9 million shares under the ASR agreement for an average purchase price of $173.80 per share. The total number of shares repurchased under the ASR agreement is equal to $500 million divided by the volume weighted-average share price, less a discount. The repurchased shares are held in Treasury. The ASR agreement was executed under the current share repurchase program, approved on December 4, 2013. We entered into an ASR agreement with a financial institution on March 6, 2018 to initiate share repurchases aggregating $1 billion . The ASR agreement was structured as an uncapped ASR agreement in which we paid $1 billion and received an initial delivery of approximately 4.5 million shares, representing 85% of the $1 billion at a price equal to the then market price of the Company. We completed the ASR agreement on September 25, 2018 and received an additional 0.6 million shares. We repurchased a total of 5.1 million shares under the ASR agreement for an average purchase price of $197.49 per share. The total number of shares repurchased under the ASR agreement is equal to $1 billion divided by the volume weighted-average share price, less a discount. The repurchased shares are held in Treasury. The ASR agreement was executed under the current share repurchase program, approved by the Board of Directors on December 4, 2013. Redeemable Noncontrolling Interests The agreement with the minority partners that own 27% of our S&P Dow Jones Indices LLC joint venture contains redemption features whereby interests held by minority partners are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within our control. Specifically, under the terms of the operating agreement of S&P Dow Jones Indices LLC, CME Group and CME Group Index Services LLC ("CGIS") has the right at any time to sell, and we are obligated to buy, at least 20% of their share in S&P Dow Jones Indices LLC. In addition, in the event there is a change of control of the Company, for the 15 days following a change in control, CME Group and CGIS will have the right to put their interest to us at the then fair value of CME Group's and CGIS' minority interest. If interests were to be redeemed under this agreement, we would generally be required to purchase the interest at fair value on the date of redemption. This interest is presented on the consolidated balance sheets outside of equity under the caption “Redeemable noncontrolling interest” with an initial value based on fair value for the portion attributable to the net assets we acquired, and based on our historical cost for the portion attributable to our S&P Index business. We adjust the redeemable noncontrolling interest each reporting period to its estimated redemption value, but never less than its initial fair value, using both income and market valuation approaches. Our income and market valuation approaches incorporate Level 3 fair value measures for instances when observable inputs are not available. The more significant judgmental assumptions used to estimate the value of the S&P Dow Jones Indices LLC joint venture include an estimated discount rate, a range of assumptions that form the basis of the expected future net cash flows (e.g., the revenue growth rates and operating margins), and a company specific beta. The significant judgmental assumptions that incorporate market data are forward-looking and could be affected by future economic and market conditions. Any adjustments to the redemption value will impact retained income. Noncontrolling interests that do not contain such redemption features are presented in equity. Changes to redeemable noncontrolling interest during the three months ended March 31, 2019 were as follows: (in millions) Balance as of December 31, 2018 $ 1,620 Net income attributable to noncontrolling interest 40 Capital contribution from noncontrolling interest 36 Distributions payable to noncontrolling interest (34 ) Redemption value adjustment (15 ) Balance as of March 31, 2019 $ 1,647 Accumulated Other Comprehensive Loss The following table summarizes the changes in the components of accumulated other comprehensive loss for the three months ended March 31, 2019 : (in millions) Foreign Currency Translation Adjustment Pension and Postretirement Benefit Plans Unrealized Gain (Loss) on Forward Exchange Contracts Accumulated Other Comprehensive Loss Balance as of December 31, 2018 $ (339 ) $ (407 ) $ 4 $ (742 ) Other comprehensive income before reclassifications 19 85 6 110 Reclassifications from accumulated other comprehensive loss to net earnings — 1 1 (2 ) 2 (1 ) Net other comprehensive income 19 86 4 109 Balance as of March 31, 2019 $ (320 ) $ (321 ) $ 8 $ (633 ) 1 See Note 6 — Employee Benefits for additional details of items reclassed from accumulated other comprehensive loss to net earnings. 2 See Note 5 — Derivative Instruments for additional details of items reclassed from accumulated other comprehensive loss to net earnings. The net actuarial loss and prior service credit related to pension and other postretirement benefit plans included in other comprehensive income is net of a tax provision of less than $1 million for the three months ended March 31, 2019 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares is increased to include additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Potential common shares consist primarily of stock options and restricted performance shares calculated using the treasury stock method. The calculation of basic and diluted EPS for the three months ended March 31 is as follows: (in millions, except per share amounts) 2019 2018 Amounts attributable to S&P Global Inc. common shareholders: Net income $ 410 $ 491 Basic weighted-average number of common shares outstanding 246.7 252.4 Effect of stock options and other dilutive securities 1.6 2.0 Diluted weighted-average number of common shares outstanding 248.3 254.4 Earnings per share attributable to S&P Global Inc. common shareholders: Net income: Basic $ 1.66 $ 1.94 Diluted $ 1.65 $ 1.93 We have certain stock options and restricted performance shares that are potentially excluded from the computation of diluted EPS. The effect of the potential exercise of stock options is excluded when the average market price of our common stock is lower than the exercise price of the related option during the period or when a net loss exists because the effect would have been antidilutive. Additionally, restricted performance shares are excluded because the necessary vesting conditions had not been met or when a net loss exists. For the three months ended March 31, 2019 and 2018 , there were no stock options excluded. Restricted performance shares outstanding of 0.4 million and 0.6 million as of March 31, 2019 and 2018 , respectively, were excluded. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring We continuously evaluate our cost structure to identify cost savings associated with streamlining our management structure. Our 2018 restructuring plan consisted of a company-wide workforce reduction of approximately 160 positions and are further detailed below. The charges for the restructuring plan are classified as selling and general expenses within the consolidated statements of income and the reserves are included in other current liabilities in the consolidated balance sheets. In certain circumstances, reserves are no longer needed because of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the Company and did not receive severance or were reassigned due to circumstances not foreseen when the original plans were initiated. In these cases, we reverse reserves through the consolidated statements of income during the period when it is determined they are no longer needed. The initial restructuring charge recorded and the ending reserve balance as of March 31, 2019 by segment is as follows: 2018 Restructuring Plan (in millions) Initial Charge Recorded Ending Reserve Balance Ratings $ 8 $ 7 Market Intelligence 7 5 Corporate 10 7 Total $ 25 $ 19 The ending reserve balance for the 2018 restructuring plan was $24 million as of December 31, 2018. For the three months ended March 31, 2019 , we have reduced the reserve for the 2018 restructuring plan by $5 million . The reductions primarily related to cash payments for employee severance charges. |
Segment and Related Information
Segment and Related Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information We have four reportable segments: Ratings, Market Intelligence, Platts and Indices. 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, other expense (income), net, or interest expense, net, as these are amounts that do not affect the operating results of our reportable segments. Beginning in the first quarter of 2019, the contract obligations for revenue from Kensho's major customers were transferred to Market Intelligence for fulfillment. As a result of this transfer, from January 1, 2019 revenue from contracts with Kensho’s customers is reflected in Market Intelligence’s results. In 2018, the revenue from contracts with Kensho’s customers was reported in Corporate revenue. A summary of operating results for the three months ended March 31 is as follows: Revenue (in millions) 2019 2018 Ratings $ 696 $ 748 Market Intelligence 482 439 Platts 207 196 Indices 217 212 Intersegment elimination 1 (31 ) (28 ) Total revenue $ 1,571 $ 1,567 Operating Profit (in millions) 2019 2018 Ratings 2 $ 363 $ 408 Market Intelligence 3 145 110 Platts 4 94 90 Indices 5 149 149 Total reportable segments 751 757 Corporate Unallocated 6 (46 ) (46 ) Total operating profit $ 705 $ 711 Note - In the fourth quarter of 2018, Trucost plc ("Trucost") was integrated from Indices into Market Intelligence and historical reporting was retroactively revised to reflect the change. 1 Revenue 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 2019 includes amortization of intangibles from acquisitions of $1 million . 3 Operating profit for 2019 and 2018 includes amortization of intangibles from acquisitions of $18 million . 4 Operating profit for 2019 and 2018 includes amortization of intangibles from acquisitions of $3 million and $5 million , respectively. 5 Operating profit for 2019 and 2018 includes amortization of intangibles from acquisitions of $1 million . 6 2019 includes Kensho retention related expenses of $7 million and amortization of intangibles from acquisitions of $8 million . The following table presents our revenue disaggregated by revenue type: (in millions) Ratings Market Intelligence Platts Indices Intersegment Elimination 1 Total Three Months Ended March 31, 2019 Subscription $ — $ 467 $ 191 $ 40 $ — $ 698 Non-transaction 365 — — — (31 ) 334 Non-subscription / Transaction 331 10 2 — — 343 Asset-linked fees — 5 — 143 — 148 Sales usage-based royalties — — 14 34 — 48 Total revenue $ 696 $ 482 $ 207 $ 217 $ (31 ) $ 1,571 Timing of revenue recognition Services transferred at a point in time $ 331 $ 10 $ 2 $ — $ — $ 343 Services transferred over time 365 472 205 217 (31 ) 1,228 Total revenue $ 696 $ 482 $ 207 $ 217 $ (31 ) $ 1,571 (in millions) Ratings Market Intelligence Platts Indices Intersegment Elimination 1 Total Three Months Ended March 31, 2018 Subscription $ — $ 425 $ 181 $ 31 $ — $ 637 Non-transaction 380 — — — (28 ) 352 Non-subscription / Transaction 368 9 2 — — 379 Asset-linked fees — 5 — 131 — 136 Sales usage-based royalties — — 13 50 — 63 Total revenue $ 748 $ 439 $ 196 $ 212 $ (28 ) $ 1,567 Timing of revenue recognition Services transferred at a point in time $ 368 $ 9 $ 2 $ — $ — $ 379 Services transferred over time 380 430 194 212 (28 ) 1,188 Total revenue $ 748 $ 439 $ 196 $ 212 $ (28 ) $ 1,567 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 three months ended March 31 : (in millions) 2019 2018 U.S. $ 943 $ 953 European region 373 379 Asia 169 156 Rest of the world 86 79 Total $ 1,571 $ 1,567 See Note 2 — Acquisitions and Divestitures and Note 10 — Restructuring for additional actions that impacted the segment operating results. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases We determine whether an arrangement meets the criteria for an operating lease or a finance lease at the inception of the arrangement. We have operating leases for office space and equipment. Our leases have remaining lease terms of 1 year to 14 years , some of which include options to extend the leases for up to 12 years , and some of which include options to terminate the leases within 1 year . We consider these options in determining the lease term used to establish our right-of use ("ROU") assets and associated lease liabilities. We sublease certain real estate leases to third parties which mainly consist of operating leases for space within our offices. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expenses for these leases on a straight line-basis over the lease term in operating-related expenses and selling and general expenses. Operating lease ROU assets and operating liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. Our future minimum based payments used to determine our lease liabilities include minimum based rent payments and escalations. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The following table provides information on the location and amounts of our leases on our consolidated balance sheet as of March 31, 2019 : (in millions) March 31, Balance Sheet Location 2019 Assets Right of use assets Lease right-of-use assets $ 675 Liabilities Other current liabilities Current lease liabilities 110 Lease liabilities — non-current Noncurrent lease liabilities 617 The components of lease expense for the three months ended March 31 is as follows: (in millions) 2019 Operating lease cost $ 37 Sublease income (4 ) Total lease cost $ 33 Supplemental information related to leases for the three months ended March 31 is as follows: (in millions) 2019 Cash paid for amounts included in the measurement for lease liabilities Operating cash flows from operating leases $ 35 Right-of-use assets obtained in exchange for lease obligations Operating leases 715 Weighted-average remaining lease term and discount rate for our operating leases as of March 31 are as follows: 2019 Weighted-average remaining lease term (years) 9.9 Weighted-average discount rate 3.88 % Maturities of lease liabilities for our operating leases are as follows: (in millions) 2019 (Excluding the three months ended March 31, 2019) $ 104 2020 111 2021 93 2022 79 2023 71 2024 and beyond 416 Total undiscounted lease payments $ 874 Less: Imputed interest 147 Present value of lease liabilities $ 727 Related Party Agreements In March of 2018, the Company made a $20 million contribution to the S&P Global Foundation included in selling and general expenses. In June of 2012, we entered into a license agreement (the "License Agreement") with the holder of S&P Dow Jones Indices LLC noncontrolling interest, CME Group, replacing the 2005 license agreement between Indices and CME Group. Under the terms of the License Agreement, S&P Dow Jones Indices LLC receives a share of the profits from the trading and clearing of CME Group's equity index products. During the three months ended March 31, 2019 and 2018 , S&P Dow Jones Indices LLC earned $29 million and $31 million of revenue under the terms of the License Agreement, respectively. The entire amount of this revenue is included in our consolidated statement of income and the portion related to the 27% noncontrolling interest is removed in net income attributable to noncontrolling interests. Legal and Regulatory Matters In the normal course of business both in the United States and abroad, the Company and its subsidiaries are defendants in a number of legal proceedings and are often the subject of government and regulatory proceedings, investigations and inquiries. Many of these proceedings, investigations and inquiries relate to the ratings activity of S&P Global Ratings brought by issuers and alleged purchasers of rated securities. In addition, various government and self-regulatory agencies frequently make inquiries and conduct investigations into our compliance with applicable laws and regulations, including those related to ratings activities and antitrust matters. For example, as a nationally recognized statistical rating organization registered with the SEC under Section 15E of the Securities Exchange Act of 1934, S&P Global Ratings is in ongoing communication with the staff of the SEC regarding compliance with its extensive obligations under the federal securities laws. Although S&P Global Ratings seeks to promptly address any compliance issues that it detects or that the staff of the SEC raises, there can be no assurance that the SEC will not seek remedies against S&P Global Ratings for one or more compliance deficiencies. Any of these proceedings, investigations or inquiries could ultimately result in adverse judgments, damages, fines, penalties or activity restrictions, which could adversely impact our consolidated financial condition, cash flows, business or competitive position. In view of the uncertainty inherent in litigation and government and regulatory enforcement matters, we cannot predict the eventual outcome of such matters or the timing of their resolution, or in most cases reasonably estimate what the eventual judgments, damages, fines, penalties or impact of activity (if any) restrictions may be. As a result, we cannot provide assurance that such outcomes will not have a material adverse effect on our consolidated financial condition, cash flows, business or competitive position. As litigation or the process to resolve pending matters progresses, as the case may be, we will continue to review the latest information available and assess our ability to predict the outcome of such matters and the effects, if any, on our consolidated financial condition, cash flows, business or competitive position, which may require that we record liabilities in the consolidated financial statements in future periods. |
Recently Issued or Adopted Acco
Recently Issued or Adopted Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued or Adopted Accounting Standards | Recently Issued or Adopted Accounting Standards In November of 2018, the Financial Accounting Standards Board ("FASB") issued guidance that provides clarification on whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Accounting Standards Codification ("ASC") 606. The guidance is effective for reporting periods after December 15, 2019; however early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In August of 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for reporting periods beginning after December 15, 2019; however early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In August of 2017, the FASB issued guidance to enhance the hedge accounting model for both nonfinancial and financial risk components, which includes amendments to address certain aspects of recognition and presentation disclosure. The guidance was effective on January 1, 2019, and the adoption of this guidance did not have a significant impact on our consolidated financial statements. In January of 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The guidance is effective for reporting periods beginning after December 15, 2019; however, early adoption is permitted. We do not expect this guidance to have a significant impact on our consolidated financial statements. In June of 2016, the FASB issued guidance that amends the measurement of credit losses on certain financial instruments by requiring the use of an expected loss methodology, which will result in more timely recognition of credit losses. The guidance is effective for reporting periods beginning after December 15, 2019. We do not expect this guidance to have a significant impact on our consolidated financial statements. In February of 2016, the FASB issued guidance amending the accounting for leases that requires a lessee to recognize "right of use" assets with offsetting lease liabilities on the balance sheet, with expenses recognized similar to previously issued guidance. This guidance is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. We adopted the new lease standard effective January 1, 2019 using the modified retrospective transition method. In July of 2018, the FASB issued a subsequent update providing entities an additional transition method to adopt the new lease standard, allowing entities to adopt the standard prospectively without restating prior period's financial statements. We have elected this transition method upon adoption on January 1, 2019. We have also elected to apply the "package" of practical expedients permitting entities to forgo reassessment of (1) the lease classification of expired or existing leases, (2) whether any expired or existing contracts contain leases, and (3) the accounting for initial direct costs of existing leases. This standard had a material impact on our consolidated balance sheet, but did not have an impact on our consolidated statements of income or cash flows. As part of our implementation process, we have refined our processes, procedures, and controls to capture the complete population of leases that incorporates a third party software solution to report the financial statement impact of the new standard. See Note 12 — Commitments and Contingencies for further details on our leases. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements On May 17, 2018, we issued $500 million of 4.5% notes due in 2048. On September 22, 2016, we issued $500 million of 2.95% senior notes due in 2027. On May 26, 2015, we issued $700 million of 4.0% senior notes due in 2025. On August 18, 2015, we issued $2.0 billion of senior notes, consisting of $400 million of 2.5% senior notes that were repaid in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026. See Note 4 — Debt for additional information. The senior notes described above are fully and unconditionally guaranteed by Standard & Poor's Financial Services LLC, a 100% owned subsidiary of the Company. The following condensed consolidating financial statements present the results of operations, financial position and cash flows of S&P Global Inc., Standard & Poor's Financial Services LLC, and the Non-Guarantor Subsidiaries of S&P Global Inc. and Standard & Poor's Financial Services LLC, and the eliminations necessary to arrive at the information for the Company on a consolidated basis. Statement of Income Three Months Ended March 31, 2019 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 202 $ 436 $ 971 $ (38 ) $ 1,571 Expenses: Operating-related expenses 33 117 327 (38 ) 439 Selling and general expenses 30 81 264 — 375 Depreciation 11 2 7 — 20 Amortization of intangibles — — 32 — 32 Total expenses 74 200 630 (38 ) 866 Operating profit 128 236 341 — 705 Other expense (income), net 107 — (4 ) — 103 Interest expense (income), net 38 — (2 ) — 36 Non-operating intercompany transactions 96 (16 ) (103 ) 23 — Income before taxes on income (113 ) 252 450 (23 ) 566 (Benefit) provision for taxes on income (40 ) 70 83 — 113 Equity in net income of subsidiaries 506 — — (506 ) — Net income $ 433 $ 182 $ 367 $ (529 ) $ 453 Less: net income attributable to noncontrolling interests — — — (43 ) (43 ) Net income attributable to S&P Global Inc. $ 433 $ 182 $ 367 $ (572 ) $ 410 Comprehensive income $ 515 $ 182 $ 395 $ (530 ) $ 562 Statement of Income Three Months Ended March 31, 2018 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 191 $ 434 $ 977 $ (35 ) $ 1,567 Expenses: Operating-related expenses 25 117 323 (35 ) 430 Selling and general expenses 45 87 249 — 381 Depreciation 9 2 10 — 21 Amortization of intangibles — — 24 — 24 Total expenses 79 206 606 (35 ) 856 Operating profit 112 228 371 — 711 Other (income) expense, net (7 ) — 3 — (4 ) Interest expense (income), net 38 — (4 ) — 34 Non-operating intercompany transactions 100 (20 ) (1,096 ) 1,016 — Income before taxes on income (19 ) 248 1,468 (1,016 ) 681 (Benefit) provision for taxes on income (14 ) 71 90 — 147 Equity in net income of subsidiaries 1,512 — — (1,512 ) — Net income $ 1,507 $ 177 $ 1,378 $ (2,528 ) $ 534 Less: net income attributable to noncontrolling interests — — — (43 ) (43 ) Net income attributable to S&P Global Inc. $ 1,507 $ 177 $ 1,378 $ (2,571 ) $ 491 Comprehensive income $ 1,487 $ 177 $ 1,412 $ (2,533 ) $ 543 Balance Sheet March 31, 2019 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated ASSETS Current assets: Cash and cash equivalents $ 146 $ — $ 1,257 $ — $ 1,403 Restricted cash — — 33 — 33 Accounts receivable, net of allowance for doubtful accounts 240 208 1,091 — 1,539 Intercompany receivable 1,643 2,896 3,418 (7,957 ) — Prepaid and other current assets 49 4 154 — 207 Total current assets 2,078 3,108 5,953 (7,957 ) 3,182 Property and equipment, net of accumulated depreciation 196 — 72 — 268 Right of use assets 419 1 255 — 675 Goodwill 261 — 3,263 9 3,533 Other intangible assets, net — — 1,492 — 1,492 Investments in subsidiaries 10,255 6 8,123 (18,384 ) — Intercompany loans receivable 131 — 1,606 (1,737 ) — Other non-current assets 203 47 320 — 570 Total assets $ 13,543 $ 3,162 $ 21,084 $ (28,069 ) $ 9,720 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 83 $ 16 $ 118 $ — $ 217 Intercompany payable 5,690 897 1,369 (7,956 ) — Accrued compensation and contributions to retirement plans 86 13 101 — 200 Income taxes currently payable 53 — 81 — 134 Unearned revenue 249 257 1,183 — 1,689 Other current liabilities 183 15 217 — 415 Total current liabilities 6,344 1,198 3,069 (7,956 ) 2,655 Long-term debt 3,663 — — — 3,663 Lease liabilities — non-current 390 1 226 — 617 Intercompany loans payable 116 — 1,621 (1,737 ) — Pension and other postretirement benefits 161 — 66 — 227 Other non-current liabilities 132 72 319 — 523 Total liabilities 10,806 1,271 5,301 (9,693 ) 7,685 Redeemable noncontrolling interest — — — 1,647 1,647 Equity: Common stock 294 — 2,372 (2,372 ) 294 Additional paid-in capital 4 619 9,789 (9,640 ) 772 Retained income 14,292 1,272 4,093 (8,125 ) 11,532 Accumulated other comprehensive loss (216 ) — (461 ) 44 (633 ) Less: common stock in treasury (11,637 ) — (11 ) 10 (11,638 ) Total equity - controlling interests 2,737 1,891 15,782 (20,083 ) 327 Total equity - noncontrolling interests — — 1 60 61 Total equity 2,737 1,891 15,783 (20,023 ) 388 Total liabilities and equity $ 13,543 $ 3,162 $ 21,084 $ (28,069 ) $ 9,720 Balance Sheet December 31, 2018 (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated ASSETS Current assets: Cash and cash equivalents $ 694 $ — $ 1,223 $ — $ 1,917 Restricted cash — — 41 — 41 Accounts receivable, net of allowance for doubtful accounts 163 109 1,177 — 1,449 Intercompany receivable 550 2,138 2,873 (5,561 ) — Prepaid and other current assets 58 3 136 — 197 Total current assets 1,465 2,250 5,450 (5,561 ) 3,604 Property and equipment, net of accumulated depreciation 192 — 78 — 270 Right of use assets — — — — — Goodwill 261 — 3,265 9 3,535 Other intangible assets, net — — 1,524 — 1,524 Investments in subsidiaries 8,599 6 8,030 (16,635 ) — Intercompany loans receivable 130 — 1,643 (1,773 ) — Other non-current assets 194 45 286 — 525 Total assets $ 10,841 $ 2,301 $ 20,276 $ (23,960 ) $ 9,458 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 89 $ 15 $ 107 $ — $ 211 Intercompany payable 4,453 32 1,076 (5,561 ) — Accrued compensation and contributions to retirement plans 125 33 196 — 354 Income taxes currently payable 1 — 71 — 72 Unearned revenue 240 235 1,166 — 1,641 Other current liabilities 180 16 155 — 351 Total current liabilities 5,088 331 2,771 (5,561 ) 2,629 Long-term debt 3,662 — — — 3,662 Lease liabilities — non-current — — — — — Intercompany loans payable 114 — 1,659 (1,773 ) — Pension and other postretirement benefits 162 — 67 — 229 Other non-current liabilities 166 75 393 — 634 Total liabilities 9,192 406 4,890 (7,334 ) 7,154 Redeemable noncontrolling interest — — — 1,620 1,620 Equity: Common stock 294 — 2,279 (2,279 ) 294 Additional paid-in capital 72 618 9,784 (9,641 ) 833 Retained income 12,622 1,277 3,824 (6,439 ) 11,284 Accumulated other comprehensive loss (299 ) — (489 ) 46 (742 ) Less: common stock in treasury (11,040 ) — (13 ) 12 (11,041 ) Total equity - controlling interests 1,649 1,895 15,385 (18,301 ) 628 Total equity - noncontrolling interests — — 1 55 56 Total equity 1,649 1,895 15,386 (18,246 ) 684 Total liabilities and equity $ 10,841 $ 2,301 $ 20,276 $ (23,960 ) $ 9,458 Statement of Cash Flows Three Months Ended March 31, 2019 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Operating Activities: Net income $ 433 $ 182 $ 367 $ (529 ) $ 453 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 11 2 7 — 20 Amortization of intangibles — — 32 — 32 Provision for losses on accounts receivable 2 2 3 — 7 Deferred income taxes 3 — 7 — 10 Stock-based compensation 2 1 9 — 12 Pension settlement charge, net of taxes 85 — — — 85 Other — — 8 — 8 Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable (80 ) (101 ) 94 — (87 ) Prepaid and other current assets (9 ) (2 ) (23 ) — (34 ) Accounts payable and accrued expenses (45 ) (18 ) (98 ) — (161 ) Unearned revenue 9 23 (35 ) — (3 ) Accrued legal settlements — (1 ) — — (1 ) Other current liabilities (54 ) (1 ) (4 ) — (59 ) Net change in prepaid/accrued income taxes 69 — 6 — 75 Net change in other assets and liabilities (19 ) (5 ) (40 ) (64 ) Cash provided by operating activities 407 82 333 (529 ) 293 Investing Activities: Capital expenditures (8 ) (4 ) (8 ) — (20 ) Acquisitions, net of cash acquired — — (1 ) — (1 ) Cash used for investing activities (8 ) (4 ) (9 ) — (21 ) Financing Activities: Dividends paid to shareholders (141 ) — — — (141 ) Distributions to noncontrolling interest holders, net — — (18 ) — (18 ) Repurchase of treasury shares (644 ) — — — (644 ) Exercise of stock options 23 — — — 23 Employee withholding tax on share-based payments (49 ) — — — (49 ) Intercompany financing activities (130 ) (78 ) (321 ) 529 — Cash used for financing activities (941 ) (78 ) (339 ) 529 (829 ) Effect of exchange rate changes on cash (6 ) — 41 — 35 Net change in cash, cash equivalents, and restricted cash (548 ) — 26 — (522 ) Cash, cash equivalents, and restricted cash at beginning of period 694 — 1,264 — 1,958 Cash, cash equivalents, and restricted cash at end of period $ 146 $ — $ 1,290 $ — $ 1,436 Statement of Cash Flows Three Months Ended March 31, 2018 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Operating Activities: Net income $ 1,507 $ 177 $ 1,378 $ (2,528 ) $ 534 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 9 2 10 — 21 Amortization of intangibles — — 24 — 24 Provision for losses on accounts receivable — 2 6 — 8 Deferred income taxes (75 ) — 90 15 Stock-based compensation 5 3 5 — 13 Other 4 — (3 ) — 1 Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable 5 (27 ) 29 — 7 Prepaid and other current assets (18 ) 1 (4 ) — (21 ) Accounts payable and accrued expenses (60 ) (79 ) (150 ) — (289 ) Unearned revenue (4 ) 28 3 — 27 Accrued legal settlements — — (29 ) — (29 ) Other current liabilities (7 ) (2 ) 28 — 19 Net change in prepaid/accrued income taxes 73 1 — — 74 Net change in other assets and liabilities (37 ) — (7 ) — (44 ) Cash provided by operating activities 1,402 106 1,380 (2,528 ) 360 Investing Activities: Capital expenditures (23 ) (6 ) (4 ) — (33 ) Acquisitions, net of cash acquired — — (57 ) — (57 ) Changes in short-term investments — — 3 — 3 Cash used for investing activities (23 ) (6 ) (58 ) — (87 ) Financing Activities: Dividends paid to shareholders (127 ) — — — (127 ) Distributions to noncontrolling interest holders, net — — (50 ) — (50 ) Repurchase of treasury shares (1,100 ) — — — (1,100 ) Exercise of stock options 10 — — 10 Employee withholding tax on share-based payments (49 ) — — — (49 ) Intercompany financing activities (159 ) (100 ) (2,269 ) 2,528 — Cash used for financing activities (1,425 ) (100 ) (2,319 ) 2,528 (1,316 ) Effect of exchange rate changes on cash (5 ) — 25 — 20 Net change in cash, cash equivalents, and restricted cash (51 ) — (972 ) — (1,023 ) Cash, cash equivalents, and restricted cash at beginning of period 632 — 2,147 — 2,779 Cash, cash equivalents, and restricted cash at end of period $ 581 $ — $ 1,175 $ — $ 1,756 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. Therefore, the financial statements included herein should be read in conjunction with the financial statements and notes included in our Form 10-K for the year ended December 31, 2018 (our “Form 10-K”). Certain prior-year amounts have been reclassified to conform with current presentation. In the opinion of management, all normal recurring adjustments considered necessary for a fair statement of the results of the interim periods have been included. The operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the full year. |
Use of Estimates | On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for doubtful accounts, valuation of long-lived assets, goodwill and other intangible assets, pension plans, incentive compensation and stock-based compensation, income taxes, contingencies and redeemable noncontrolling interests. |
Recently Issued or Adopted Accounting Standards | In November of 2018, the Financial Accounting Standards Board ("FASB") issued guidance that provides clarification on whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Accounting Standards Codification ("ASC") 606. The guidance is effective for reporting periods after December 15, 2019; however early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In August of 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for reporting periods beginning after December 15, 2019; however early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In August of 2017, the FASB issued guidance to enhance the hedge accounting model for both nonfinancial and financial risk components, which includes amendments to address certain aspects of recognition and presentation disclosure. The guidance was effective on January 1, 2019, and the adoption of this guidance did not have a significant impact on our consolidated financial statements. In January of 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The guidance is effective for reporting periods beginning after December 15, 2019; however, early adoption is permitted. We do not expect this guidance to have a significant impact on our consolidated financial statements. In June of 2016, the FASB issued guidance that amends the measurement of credit losses on certain financial instruments by requiring the use of an expected loss methodology, which will result in more timely recognition of credit losses. The guidance is effective for reporting periods beginning after December 15, 2019. We do not expect this guidance to have a significant impact on our consolidated financial statements. In February of 2016, the FASB issued guidance amending the accounting for leases that requires a lessee to recognize "right of use" assets with offsetting lease liabilities on the balance sheet, with expenses recognized similar to previously issued guidance. This guidance is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. We adopted the new lease standard effective January 1, 2019 using the modified retrospective transition method. In July of 2018, the FASB issued a subsequent update providing entities an additional transition method to adopt the new lease standard, allowing entities to adopt the standard prospectively without restating prior period's financial statements. We have elected this transition method upon adoption on January 1, 2019. We have also elected to apply the "package" of practical expedients permitting entities to forgo reassessment of (1) the lease classification of expired or existing leases, (2) whether any expired or existing contracts contain leases, and (3) the accounting for initial direct costs of existing leases. This standard had a material impact on our consolidated balance sheet, but did not have an impact on our consolidated statements of income or cash flows. As part of our implementation process, we have refined our processes, procedures, and controls to capture the complete population of leases that incorporates a third party software solution to report the financial statement impact of the new standard. See Note 12 — Commitments and Contingencies for further details on our leases. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Other Income, Net | The components of other expense (income), net for the three months ended March 31 are as follows: (in millions) 2019 2018 Other components of net periodic benefit cost 1 $ 103 $ (8 ) Net loss from investments — 4 Other expense (income), net $ 103 $ (4 ) 1 The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The non-cash pre-tax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Operating Profit of Business Held-for-Sale | The operating profit of our business held for sale for the three months ending March 31, 2019 and 2018 is as follows: (in millions) Three Months Ended March 31, 2019 2018 Operating profit $ 2 $ 2 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of long-term debt outstanding is as follows: (in millions) March 31, December 31, 3.3% Senior Notes, due 2020 1 698 698 4.0% Senior Notes, due 2025 2 693 693 4.4% Senior Notes, due 2026 3 893 892 2.95% Senior Notes, due 2027 4 493 493 6.55% Senior Notes, due 2037 5 396 396 4.5% Senior Notes, due 2048 6 490 490 Long-term debt $ 3,663 $ 3,662 1 Interest payments are due semiannually on February 14 and August 14, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $2 million . 2 Interest payments are due semiannually on June 15 and December 15, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 3 Interest payments are due semiannually on February 15 and August 15, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 4 Interest payments are due semiannually on January 22 and July 22, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 5 Interest payments are due semiannually on May 15 and November 15, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $4 million . 6 Interest payments are due semiannually on May 15 and November 15, beginning on November 15, 2018, and as of March 31, 2019 , the unamortized debt discount and issuance costs total $10 million . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the Location and Fair Value Amounts of Cash Flow Hedges | The following table provides information on the location and fair value amounts of our cash flow hedges as of March 31, 2019 and December 31, 2018 : (in millions) March 31, December 31, Balance Sheet Location 2019 2018 Derivatives designated as cash flow hedges: Prepaid and other current assets Foreign exchange forward contracts $ 7 $ 3 |
Schedule of the Location and Amounts of Pre-Tax Gains (Losses) on Cash Flow Hedges | The following table provides information on the location and amounts of pre-tax gains on our cash flow hedges for the three months ended March 31 : (in millions) Gain recognized in Accumulated Other Comprehensive Loss (effective portion) Location of Gain reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) Gain reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) Cash flow hedges - designated as hedging instruments 2019 2018 2019 2018 Foreign exchange forward contracts $ 4 $ 1 Revenue, Selling and general expenses $ 2 $ 1 |
Schedule of Change in Unrealized Gains (Losses) in Accumulated Other Comprehensive Loss | The activity related to the change in unrealized gains (losses) in accumulated other comprehensive loss was as follows for the three months ended March 31 : (in millions) Three Months 2019 2018 Net unrealized gains on cash flow hedges, net of taxes, beginning of period $ 3 $ 2 Change in fair value, net of tax 6 2 Reclassification into earnings, net of tax (2 ) (1 ) Net unrealized gains on cash flow hedges, net of taxes, end of period $ 7 $ 3 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost (Credit) | The components of net periodic benefit cost for our retirement plans and postretirement plans for the three months ended March 31 are as follows: (in millions) 2019 2018 Service cost $ 1 $ 1 Interest cost 19 18 Expected return on assets (31 ) (32 ) Amortization of prior service credit / actuarial loss 2 4 Net periodic benefit cost (9 ) (9 ) Settlement charge 1 113 — Net benefit cost $ 104 $ (9 ) 1 The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The non-cash pre-tax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation | Stock-based compensation for the three months ended March 31 is as follows: (in millions) 2019 2018 Stock option expense $ — $ 1 Restricted stock and unit awards expense 12 12 Total stock-based compensation expense $ 12 $ 13 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchases | Share repurchases for the three months ended March 31 were as follows: (in millions, except average price) 2019 2018 Total number of shares purchased 1 3.4 5.0 Average price paid per share 2 $ 184.51 $ 178.11 Total cash utilized $ 644 $ 1,100 1 The three months ended March 31, 2019 and 2018 include shares received as part of our accelerated share repurchase agreements described in more detail below. 2 Average price paid per share information does not include the accelerated share repurchase agreements as discussed in more detail below. |
Schedule of Redeemable Noncontrolling Interest | Changes to redeemable noncontrolling interest during the three months ended March 31, 2019 were as follows: (in millions) Balance as of December 31, 2018 $ 1,620 Net income attributable to noncontrolling interest 40 Capital contribution from noncontrolling interest 36 Distributions payable to noncontrolling interest (34 ) Redemption value adjustment (15 ) Balance as of March 31, 2019 $ 1,647 |
Schedule of Changes in the Components of Accumulated Other Comprehensive Loss | The following table summarizes the changes in the components of accumulated other comprehensive loss for the three months ended March 31, 2019 : (in millions) Foreign Currency Translation Adjustment Pension and Postretirement Benefit Plans Unrealized Gain (Loss) on Forward Exchange Contracts Accumulated Other Comprehensive Loss Balance as of December 31, 2018 $ (339 ) $ (407 ) $ 4 $ (742 ) Other comprehensive income before reclassifications 19 85 6 110 Reclassifications from accumulated other comprehensive loss to net earnings — 1 1 (2 ) 2 (1 ) Net other comprehensive income 19 86 4 109 Balance as of March 31, 2019 $ (320 ) $ (321 ) $ 8 $ (633 ) 1 See Note 6 — Employee Benefits for additional details of items reclassed from accumulated other comprehensive loss to net earnings. 2 See Note 5 — Derivative Instruments for additional details of items reclassed from accumulated other comprehensive loss to net earnings. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation for Basic and Diluted Earnings Per Share | The calculation of basic and diluted EPS for the three months ended March 31 is as follows: (in millions, except per share amounts) 2019 2018 Amounts attributable to S&P Global Inc. common shareholders: Net income $ 410 $ 491 Basic weighted-average number of common shares outstanding 246.7 252.4 Effect of stock options and other dilutive securities 1.6 2.0 Diluted weighted-average number of common shares outstanding 248.3 254.4 Earnings per share attributable to S&P Global Inc. common shareholders: Net income: Basic $ 1.66 $ 1.94 Diluted $ 1.65 $ 1.93 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Initial Restructuring Charge Recorded and the Ending Reserve Balance | The initial restructuring charge recorded and the ending reserve balance as of March 31, 2019 by segment is as follows: 2018 Restructuring Plan (in millions) Initial Charge Recorded Ending Reserve Balance Ratings $ 8 $ 7 Market Intelligence 7 5 Corporate 10 7 Total $ 25 $ 19 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | A summary of operating results for the three months ended March 31 is as follows: Revenue (in millions) 2019 2018 Ratings $ 696 $ 748 Market Intelligence 482 439 Platts 207 196 Indices 217 212 Intersegment elimination 1 (31 ) (28 ) Total revenue $ 1,571 $ 1,567 Operating Profit (in millions) 2019 2018 Ratings 2 $ 363 $ 408 Market Intelligence 3 145 110 Platts 4 94 90 Indices 5 149 149 Total reportable segments 751 757 Corporate Unallocated 6 (46 ) (46 ) Total operating profit $ 705 $ 711 Note - In the fourth quarter of 2018, Trucost plc ("Trucost") was integrated from Indices into Market Intelligence and historical reporting was retroactively revised to reflect the change. 1 Revenue 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 2019 includes amortization of intangibles from acquisitions of $1 million . 3 Operating profit for 2019 and 2018 includes amortization of intangibles from acquisitions of $18 million . 4 Operating profit for 2019 and 2018 includes amortization of intangibles from acquisitions of $3 million and $5 million , respectively. 5 Operating profit for 2019 and 2018 includes amortization of intangibles from acquisitions of $1 million . 6 2019 includes Kensho retention related expenses of $7 million and amortization of intangibles from acquisitions of $8 million . |
Schedule of Revenue Disaggregated by Type | The following table presents our revenue disaggregated by revenue type: (in millions) Ratings Market Intelligence Platts Indices Intersegment Elimination 1 Total Three Months Ended March 31, 2019 Subscription $ — $ 467 $ 191 $ 40 $ — $ 698 Non-transaction 365 — — — (31 ) 334 Non-subscription / Transaction 331 10 2 — — 343 Asset-linked fees — 5 — 143 — 148 Sales usage-based royalties — — 14 34 — 48 Total revenue $ 696 $ 482 $ 207 $ 217 $ (31 ) $ 1,571 Timing of revenue recognition Services transferred at a point in time $ 331 $ 10 $ 2 $ — $ — $ 343 Services transferred over time 365 472 205 217 (31 ) 1,228 Total revenue $ 696 $ 482 $ 207 $ 217 $ (31 ) $ 1,571 (in millions) Ratings Market Intelligence Platts Indices Intersegment Elimination 1 Total Three Months Ended March 31, 2018 Subscription $ — $ 425 $ 181 $ 31 $ — $ 637 Non-transaction 380 — — — (28 ) 352 Non-subscription / Transaction 368 9 2 — — 379 Asset-linked fees — 5 — 131 — 136 Sales usage-based royalties — — 13 50 — 63 Total revenue $ 748 $ 439 $ 196 $ 212 $ (28 ) $ 1,567 Timing of revenue recognition Services transferred at a point in time $ 368 $ 9 $ 2 $ — $ — $ 379 Services transferred over time 380 430 194 212 (28 ) 1,188 Total revenue $ 748 $ 439 $ 196 $ 212 $ (28 ) $ 1,567 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 three months ended March 31 : (in millions) 2019 2018 U.S. $ 943 $ 953 European region 373 379 Asia 169 156 Rest of the world 86 79 Total $ 1,571 $ 1,567 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Location and Amounts of Leases | The following table provides information on the location and amounts of our leases on our consolidated balance sheet as of March 31, 2019 : (in millions) March 31, Balance Sheet Location 2019 Assets Right of use assets Lease right-of-use assets $ 675 Liabilities Other current liabilities Current lease liabilities 110 Lease liabilities — non-current Noncurrent lease liabilities 617 |
Schedule of Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense for the three months ended March 31 is as follows: (in millions) 2019 Operating lease cost $ 37 Sublease income (4 ) Total lease cost $ 33 Supplemental information related to leases for the three months ended March 31 is as follows: (in millions) 2019 Cash paid for amounts included in the measurement for lease liabilities Operating cash flows from operating leases $ 35 Right-of-use assets obtained in exchange for lease obligations Operating leases 715 |
Schedule of Lease Term and Discount Rate | Weighted-average remaining lease term and discount rate for our operating leases as of March 31 are as follows: 2019 Weighted-average remaining lease term (years) 9.9 Weighted-average discount rate 3.88 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities for our operating leases are as follows: (in millions) 2019 (Excluding the three months ended March 31, 2019) $ 104 2020 111 2021 93 2022 79 2023 71 2024 and beyond 416 Total undiscounted lease payments $ 874 Less: Imputed interest 147 Present value of lease liabilities $ 727 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Statement of Income | Statement of Income Three Months Ended March 31, 2019 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 202 $ 436 $ 971 $ (38 ) $ 1,571 Expenses: Operating-related expenses 33 117 327 (38 ) 439 Selling and general expenses 30 81 264 — 375 Depreciation 11 2 7 — 20 Amortization of intangibles — — 32 — 32 Total expenses 74 200 630 (38 ) 866 Operating profit 128 236 341 — 705 Other expense (income), net 107 — (4 ) — 103 Interest expense (income), net 38 — (2 ) — 36 Non-operating intercompany transactions 96 (16 ) (103 ) 23 — Income before taxes on income (113 ) 252 450 (23 ) 566 (Benefit) provision for taxes on income (40 ) 70 83 — 113 Equity in net income of subsidiaries 506 — — (506 ) — Net income $ 433 $ 182 $ 367 $ (529 ) $ 453 Less: net income attributable to noncontrolling interests — — — (43 ) (43 ) Net income attributable to S&P Global Inc. $ 433 $ 182 $ 367 $ (572 ) $ 410 Comprehensive income $ 515 $ 182 $ 395 $ (530 ) $ 562 Statement of Income Three Months Ended March 31, 2018 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 191 $ 434 $ 977 $ (35 ) $ 1,567 Expenses: Operating-related expenses 25 117 323 (35 ) 430 Selling and general expenses 45 87 249 — 381 Depreciation 9 2 10 — 21 Amortization of intangibles — — 24 — 24 Total expenses 79 206 606 (35 ) 856 Operating profit 112 228 371 — 711 Other (income) expense, net (7 ) — 3 — (4 ) Interest expense (income), net 38 — (4 ) — 34 Non-operating intercompany transactions 100 (20 ) (1,096 ) 1,016 — Income before taxes on income (19 ) 248 1,468 (1,016 ) 681 (Benefit) provision for taxes on income (14 ) 71 90 — 147 Equity in net income of subsidiaries 1,512 — — (1,512 ) — Net income $ 1,507 $ 177 $ 1,378 $ (2,528 ) $ 534 Less: net income attributable to noncontrolling interests — — — (43 ) (43 ) Net income attributable to S&P Global Inc. $ 1,507 $ 177 $ 1,378 $ (2,571 ) $ 491 Comprehensive income $ 1,487 $ 177 $ 1,412 $ (2,533 ) $ 543 |
Schedule of Balance Sheet | Balance Sheet March 31, 2019 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated ASSETS Current assets: Cash and cash equivalents $ 146 $ — $ 1,257 $ — $ 1,403 Restricted cash — — 33 — 33 Accounts receivable, net of allowance for doubtful accounts 240 208 1,091 — 1,539 Intercompany receivable 1,643 2,896 3,418 (7,957 ) — Prepaid and other current assets 49 4 154 — 207 Total current assets 2,078 3,108 5,953 (7,957 ) 3,182 Property and equipment, net of accumulated depreciation 196 — 72 — 268 Right of use assets 419 1 255 — 675 Goodwill 261 — 3,263 9 3,533 Other intangible assets, net — — 1,492 — 1,492 Investments in subsidiaries 10,255 6 8,123 (18,384 ) — Intercompany loans receivable 131 — 1,606 (1,737 ) — Other non-current assets 203 47 320 — 570 Total assets $ 13,543 $ 3,162 $ 21,084 $ (28,069 ) $ 9,720 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 83 $ 16 $ 118 $ — $ 217 Intercompany payable 5,690 897 1,369 (7,956 ) — Accrued compensation and contributions to retirement plans 86 13 101 — 200 Income taxes currently payable 53 — 81 — 134 Unearned revenue 249 257 1,183 — 1,689 Other current liabilities 183 15 217 — 415 Total current liabilities 6,344 1,198 3,069 (7,956 ) 2,655 Long-term debt 3,663 — — — 3,663 Lease liabilities — non-current 390 1 226 — 617 Intercompany loans payable 116 — 1,621 (1,737 ) — Pension and other postretirement benefits 161 — 66 — 227 Other non-current liabilities 132 72 319 — 523 Total liabilities 10,806 1,271 5,301 (9,693 ) 7,685 Redeemable noncontrolling interest — — — 1,647 1,647 Equity: Common stock 294 — 2,372 (2,372 ) 294 Additional paid-in capital 4 619 9,789 (9,640 ) 772 Retained income 14,292 1,272 4,093 (8,125 ) 11,532 Accumulated other comprehensive loss (216 ) — (461 ) 44 (633 ) Less: common stock in treasury (11,637 ) — (11 ) 10 (11,638 ) Total equity - controlling interests 2,737 1,891 15,782 (20,083 ) 327 Total equity - noncontrolling interests — — 1 60 61 Total equity 2,737 1,891 15,783 (20,023 ) 388 Total liabilities and equity $ 13,543 $ 3,162 $ 21,084 $ (28,069 ) $ 9,720 Balance Sheet December 31, 2018 (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated ASSETS Current assets: Cash and cash equivalents $ 694 $ — $ 1,223 $ — $ 1,917 Restricted cash — — 41 — 41 Accounts receivable, net of allowance for doubtful accounts 163 109 1,177 — 1,449 Intercompany receivable 550 2,138 2,873 (5,561 ) — Prepaid and other current assets 58 3 136 — 197 Total current assets 1,465 2,250 5,450 (5,561 ) 3,604 Property and equipment, net of accumulated depreciation 192 — 78 — 270 Right of use assets — — — — — Goodwill 261 — 3,265 9 3,535 Other intangible assets, net — — 1,524 — 1,524 Investments in subsidiaries 8,599 6 8,030 (16,635 ) — Intercompany loans receivable 130 — 1,643 (1,773 ) — Other non-current assets 194 45 286 — 525 Total assets $ 10,841 $ 2,301 $ 20,276 $ (23,960 ) $ 9,458 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 89 $ 15 $ 107 $ — $ 211 Intercompany payable 4,453 32 1,076 (5,561 ) — Accrued compensation and contributions to retirement plans 125 33 196 — 354 Income taxes currently payable 1 — 71 — 72 Unearned revenue 240 235 1,166 — 1,641 Other current liabilities 180 16 155 — 351 Total current liabilities 5,088 331 2,771 (5,561 ) 2,629 Long-term debt 3,662 — — — 3,662 Lease liabilities — non-current — — — — — Intercompany loans payable 114 — 1,659 (1,773 ) — Pension and other postretirement benefits 162 — 67 — 229 Other non-current liabilities 166 75 393 — 634 Total liabilities 9,192 406 4,890 (7,334 ) 7,154 Redeemable noncontrolling interest — — — 1,620 1,620 Equity: Common stock 294 — 2,279 (2,279 ) 294 Additional paid-in capital 72 618 9,784 (9,641 ) 833 Retained income 12,622 1,277 3,824 (6,439 ) 11,284 Accumulated other comprehensive loss (299 ) — (489 ) 46 (742 ) Less: common stock in treasury (11,040 ) — (13 ) 12 (11,041 ) Total equity - controlling interests 1,649 1,895 15,385 (18,301 ) 628 Total equity - noncontrolling interests — — 1 55 56 Total equity 1,649 1,895 15,386 (18,246 ) 684 Total liabilities and equity $ 10,841 $ 2,301 $ 20,276 $ (23,960 ) $ 9,458 |
Schedule of Statement of Cash Flows | Statement of Cash Flows Three Months Ended March 31, 2019 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Operating Activities: Net income $ 433 $ 182 $ 367 $ (529 ) $ 453 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 11 2 7 — 20 Amortization of intangibles — — 32 — 32 Provision for losses on accounts receivable 2 2 3 — 7 Deferred income taxes 3 — 7 — 10 Stock-based compensation 2 1 9 — 12 Pension settlement charge, net of taxes 85 — — — 85 Other — — 8 — 8 Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable (80 ) (101 ) 94 — (87 ) Prepaid and other current assets (9 ) (2 ) (23 ) — (34 ) Accounts payable and accrued expenses (45 ) (18 ) (98 ) — (161 ) Unearned revenue 9 23 (35 ) — (3 ) Accrued legal settlements — (1 ) — — (1 ) Other current liabilities (54 ) (1 ) (4 ) — (59 ) Net change in prepaid/accrued income taxes 69 — 6 — 75 Net change in other assets and liabilities (19 ) (5 ) (40 ) (64 ) Cash provided by operating activities 407 82 333 (529 ) 293 Investing Activities: Capital expenditures (8 ) (4 ) (8 ) — (20 ) Acquisitions, net of cash acquired — — (1 ) — (1 ) Cash used for investing activities (8 ) (4 ) (9 ) — (21 ) Financing Activities: Dividends paid to shareholders (141 ) — — — (141 ) Distributions to noncontrolling interest holders, net — — (18 ) — (18 ) Repurchase of treasury shares (644 ) — — — (644 ) Exercise of stock options 23 — — — 23 Employee withholding tax on share-based payments (49 ) — — — (49 ) Intercompany financing activities (130 ) (78 ) (321 ) 529 — Cash used for financing activities (941 ) (78 ) (339 ) 529 (829 ) Effect of exchange rate changes on cash (6 ) — 41 — 35 Net change in cash, cash equivalents, and restricted cash (548 ) — 26 — (522 ) Cash, cash equivalents, and restricted cash at beginning of period 694 — 1,264 — 1,958 Cash, cash equivalents, and restricted cash at end of period $ 146 $ — $ 1,290 $ — $ 1,436 Statement of Cash Flows Three Months Ended March 31, 2018 (Unaudited) (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Operating Activities: Net income $ 1,507 $ 177 $ 1,378 $ (2,528 ) $ 534 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 9 2 10 — 21 Amortization of intangibles — — 24 — 24 Provision for losses on accounts receivable — 2 6 — 8 Deferred income taxes (75 ) — 90 15 Stock-based compensation 5 3 5 — 13 Other 4 — (3 ) — 1 Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable 5 (27 ) 29 — 7 Prepaid and other current assets (18 ) 1 (4 ) — (21 ) Accounts payable and accrued expenses (60 ) (79 ) (150 ) — (289 ) Unearned revenue (4 ) 28 3 — 27 Accrued legal settlements — — (29 ) — (29 ) Other current liabilities (7 ) (2 ) 28 — 19 Net change in prepaid/accrued income taxes 73 1 — — 74 Net change in other assets and liabilities (37 ) — (7 ) — (44 ) Cash provided by operating activities 1,402 106 1,380 (2,528 ) 360 Investing Activities: Capital expenditures (23 ) (6 ) (4 ) — (33 ) Acquisitions, net of cash acquired — — (57 ) — (57 ) Changes in short-term investments — — 3 — 3 Cash used for investing activities (23 ) (6 ) (58 ) — (87 ) Financing Activities: Dividends paid to shareholders (127 ) — — — (127 ) Distributions to noncontrolling interest holders, net — — (50 ) — (50 ) Repurchase of treasury shares (1,100 ) — — — (1,100 ) Exercise of stock options 10 — — 10 Employee withholding tax on share-based payments (49 ) — — — (49 ) Intercompany financing activities (159 ) (100 ) (2,269 ) 2,528 — Cash used for financing activities (1,425 ) (100 ) (2,319 ) 2,528 (1,316 ) Effect of exchange rate changes on cash (5 ) — 25 — 20 Net change in cash, cash equivalents, and restricted cash (51 ) — (972 ) — (1,023 ) Cash, cash equivalents, and restricted cash at beginning of period 632 — 2,147 — 2,779 Cash, cash equivalents, and restricted cash at end of period $ 581 $ — $ 1,175 $ — $ 1,756 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Number of reportable segments | Segment | 4 | ||
Restricted cash | $ 28 | $ 32 | |
Contract asset | 34 | $ 26 | |
Revenue expected to be recognized as of period end | 1,600 | ||
Amortization period of capitalized contract cost | 5 years | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Unearned revenue | 746 | ||
Capitalized contract costs | $ 98 | $ 81 |
Nature of Operations and Basi_5
Nature of Operations and Basis of Presentation - Components of Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other expense (income), net | $ 103 | $ (4) |
Accounting Standards Update 2017-07 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other components of net periodic benefit cost | 103 | (8) |
Net loss from investments | 0 | 4 |
Other expense (income), net | $ 103 | $ (4) |
Nature of Operations and Basi_6
Nature of Operations and Basis of Presentation - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | Mar. 31, 2019 |
Twelve Months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a percent) | 50.00% |
Expected timing of satisfaction of remaining performance obligation | 1 year |
Twenty-Four Months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a percent) | 75.00% |
Expected timing of satisfaction of remaining performance obligation | 2 years |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Apr. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2018 | |
Kensho | ||||
Schedule of Equity Method Investments And Cost-Method Investments [Line Items] | ||||
Consideration transferred to acquire business | $ 550 | |||
Pragmatix | ||||
Schedule of Equity Method Investments And Cost-Method Investments [Line Items] | ||||
Ownership proportion of equity method investment (as a percent) | 100.00% | |||
SPIAS | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Schedule of Equity Method Investments And Cost-Method Investments [Line Items] | ||||
Assets held-for-sale | $ 8 | $ 9 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Operating Profit of Business Held-for-Sale (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
SPIAS | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Operating profit | $ 2 | $ 2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (as a percent) | 19.90% | 21.60% | |
Unrecognized tax benefits | $ 113 | $ 147 | |
Accrued interest and penalties associated with unrecognized tax benefits | 19 | $ 35 | |
Reduction of unrecognized tax benefits is reasonably possible | $ 5 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 30, 2017USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 4,000,000,000 | $ 3,800,000,000 | |
Five-Year Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Indebtedness to cash flow (not greater than) | 4 | ||
Five-Year Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,200,000,000 | ||
Credit facility, term (in years) | 5 years | ||
Commitment fee | 0.10% | ||
Five-Year Credit Agreement | Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee | 0.08% | ||
Five-Year Credit Agreement | Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee | 0.175% | ||
Five-Year Credit Agreement | Commercial paper | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,200,000,000 | ||
Short-term debt | $ 0 | $ 0 |
Debt - Summary (Details)
Debt - Summary (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | May 17, 2018 | Sep. 22, 2016 | May 26, 2015 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 3,663 | $ 3,662 | |||
Senior Notes | 3.3% Senior Notes, due 2020 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 698 | 698 | |||
Stated interest rate (as a percent) | 3.30% | ||||
Unamortized debt discount and issuance costs | $ 2 | ||||
Senior Notes | 4.0% Senior Notes, due 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 693 | 693 | |||
Stated interest rate (as a percent) | 4.00% | 4.00% | |||
Unamortized debt discount and issuance costs | $ 7 | ||||
Senior Notes | 4.4% Senior Notes, due 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 893 | 892 | |||
Stated interest rate (as a percent) | 4.40% | ||||
Unamortized debt discount and issuance costs | $ 7 | ||||
Senior Notes | 2.95% Senior Notes, due 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 493 | 493 | |||
Stated interest rate (as a percent) | 2.95% | 2.95% | |||
Unamortized debt discount and issuance costs | $ 7 | ||||
Senior Notes | 6.55% Senior Notes, due 2037 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 396 | 396 | |||
Stated interest rate (as a percent) | 6.55% | ||||
Unamortized debt discount and issuance costs | $ 4 | ||||
Senior Notes | 4.5% Senior Notes, due 2048 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 490 | $ 490 | |||
Stated interest rate (as a percent) | 4.50% | 4.50% | |||
Unamortized debt discount and issuance costs | $ 10 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Foreign exchange forward contracts $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value Hedging | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Aggregate notional value | $ 85 |
Net gain (loss) on derivative | 2 |
Cash Flow Hedging | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Aggregate notional value | $ 254 |
Maturity of derivatives | 12 months |
Net gains (losses) related to derivatives recorded in other comprehensive income (loss) expected to be reclassified into earnings | $ (7) |
Derivative Instruments - Locati
Derivative Instruments - Location and Fair Values of Cash Flow Hedges (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Cash Flow Hedging | Foreign exchange forward contracts | Designated as Hedging Instrument | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, fair value | $ 7 | $ 3 |
Derivative Instruments - Loca_2
Derivative Instruments - Location and Amounts of Pre-Tax Gains (Losses) on Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain recognized in Accumulated Other Comprehensive Loss (effective portion) | $ 4 | |
Gain recognized in Accumulated Other Comprehensive Loss (effective portion) | $ 1 | |
Foreign exchange forward contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain recognized in Accumulated Other Comprehensive Loss (effective portion) | 4 | |
Gain recognized in Accumulated Other Comprehensive Loss (effective portion) | 1 | |
Foreign exchange forward contracts | Revenue, Selling and general expenses | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) | $ 2 | |
Gain reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) | $ 1 |
Derivative Instruments - Change
Derivative Instruments - Change in Unrealized (Losses) Gains in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Net unrealized gains on cash flow hedges, net of taxes, beginning of period | $ 628 | |
Change in fair value, net of tax | $ 1 | |
Net unrealized gains on cash flow hedges, net of taxes, end of period | 327 | |
Unrealized Gain (Loss) on Forward Exchange Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Net unrealized gains on cash flow hedges, net of taxes, beginning of period | 3 | 2 |
Change in fair value, net of tax | 6 | 2 |
Reclassification into earnings, net of tax | (2) | (1) |
Net unrealized gains on cash flow hedges, net of taxes, end of period | $ 7 | $ 3 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Retirement Benefits [Abstract] | |
Contribution towards retirement plans | $ 39 |
Expected contributions towards retirement plans, remainder of the year | $ 8 |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 1 | $ 1 |
Interest cost | 19 | 18 |
Expected return on assets | (31) | (32) |
Amortization of prior service credit / actuarial loss | 2 | 4 |
Net benefit cost | (9) | (9) |
Settlement charge | 113 | 0 |
Net benefit cost | $ 104 | $ (9) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Employee stock option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 1 |
Unrecognized compensation expense, period for recognition | 1 year 3 months 4 days |
Restricted stock and unit awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 58 |
Unrecognized compensation expense, period for recognition | 1 year 8 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 12 | $ 13 |
Employee stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 1 |
Restricted stock and unit awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 12 | $ 12 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | Feb. 11, 2019 | Jan. 02, 2019 | Oct. 29, 2018 | Sep. 25, 2018 | Mar. 06, 2018 | Jan. 02, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 04, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total number of shares purchased | 3,400,000 | 5,000,000 | |||||||
Average price paid per share (USD per share) | $ 184.51 | $ 178.11 | |||||||
Minimum interest in joint venture (as a percent) | 20.00% | ||||||||
Agreement terms, change of control, put option for minority interest ownership, effective period | 15 days | ||||||||
2013 Repurchase Program | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Authorized for repurchase (shares) | 50,000,000 | ||||||||
Shares authorized for repurchase, compared to total common stock outstanding (as a percent) | 18.00% | ||||||||
Remaining shares available under repurchase program (shares) | 7,200,000 | ||||||||
S&P Dow Jones LLC | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Noncontrolling interest ownership by noncontrolling owners (as a percent) | 27.00% | ||||||||
Accelerated Share Repurchases, February 2019 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Authorized stock repurchase program amount | $ 500,000,000 | ||||||||
Payments for accelerated share repurchases | $ 500,000,000 | ||||||||
Accelerated Share Repurchases, October 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Authorized stock repurchase program amount | $ 500,000,000 | ||||||||
Payments for accelerated share repurchases | $ 500,000,000 | ||||||||
Accelerated Share Repurchases, March 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Authorized stock repurchase program amount | $ 1,000,000,000 | ||||||||
Payments for accelerated share repurchases | $ 1,000,000,000 | ||||||||
Initial Award | Accelerated Share Repurchases, February 2019 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total number of shares purchased | 2,200,000 | ||||||||
Accelerated share repurchases initial delivery percentage (as a percent) | 85.00% | ||||||||
Initial Award | Accelerated Share Repurchases, October 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total number of shares purchased | 2,500,000 | ||||||||
Accelerated share repurchases initial delivery percentage (as a percent) | 85.00% | ||||||||
Initial Award | Accelerated Share Repurchases, March 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total number of shares purchased | 4,500,000 | ||||||||
Accelerated share repurchases initial delivery percentage (as a percent) | 85.00% | ||||||||
Additional Award | Accelerated Share Repurchases, October 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total number of shares purchased | 400,000 | ||||||||
Additional Award | Accelerated Share Repurchases, March 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total number of shares purchased | 600,000 | ||||||||
Completed Award | Accelerated Share Repurchases, October 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total number of shares purchased | 2,900,000 | ||||||||
Average price paid per share (USD per share) | $ 173.80 | ||||||||
Completed Award | Accelerated Share Repurchases, March 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total number of shares purchased | 5,100,000 | ||||||||
Average price paid per share (USD per share) | $ 197.49 |
Equity - Share Repurchases (Det
Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total number of shares purchased | 3.4 | 5 |
Average price paid per share (USD per share) | $ 184.51 | $ 178.11 |
Total cash utilized | $ 644 | $ 1,100 |
Total SPGI Equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total cash utilized | $ 644 | $ 1,100 |
Equity - Changes to Redeemable
Equity - Changes to Redeemable Noncontrolling Interest (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance at beginning of period | $ 1,620 |
Net income attributable to noncontrolling interest | 40 |
Capital contribution from noncontrolling interest | 36 |
Distributions payable to noncontrolling interest | (34) |
Redemption value adjustment | (15) |
Balance at end of period | $ 1,647 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 684 | $ 768 |
Balance at end of period | 388 | 65 |
Pension and other postretirement benefit plans, tax (less than) | 28 | 1 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (742) | (649) |
Other comprehensive income before reclassifications | 110 | |
Reclassifications from accumulated other comprehensive loss to net earnings | (1) | |
Net other comprehensive income | 109 | |
Balance at end of period | (633) | $ (630) |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (339) | |
Other comprehensive income before reclassifications | 19 | |
Reclassifications from accumulated other comprehensive loss to net earnings | 0 | |
Net other comprehensive income | 19 | |
Balance at end of period | (320) | |
Pension and Postretirement Benefit Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (407) | |
Other comprehensive income before reclassifications | 85 | |
Reclassifications from accumulated other comprehensive loss to net earnings | 1 | |
Net other comprehensive income | 86 | |
Balance at end of period | (321) | |
Pension and other postretirement benefit plans, tax (less than) | 1 | |
Unrealized Gain (Loss) on Forward Exchange Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 4 | |
Other comprehensive income before reclassifications | 6 | |
Reclassifications from accumulated other comprehensive loss to net earnings | (2) | |
Net other comprehensive income | 4 | |
Balance at end of period | $ 8 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee stock option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding stock not included in the computation of diluted earnings per share (shares) | 0 | 0 |
Restricted performance shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding stock not included in the computation of diluted earnings per share (shares) | 400,000 | 600,000 |
Earnings Per Share - Summary (D
Earnings Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amounts attributable to S&P Global Inc. common shareholders: | ||
Net income | $ 410 | $ 491 |
Basic weighted-average number of common shares outstanding (shares) | 246.7 | 252.4 |
Effect of stock options and other dilutive securities (shares) | 1.6 | 2 |
Diluted weighted-average number of common shares outstanding (shares) | 248.3 | 254.4 |
Earnings per share attributable to S&P Global Inc. common shareholders: | ||
Basic (USD per share) | $ 1.66 | $ 1.94 |
Diluted (USD per share) | $ 1.65 | $ 1.93 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - 2018 Restructuring Plan $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)position | Dec. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Workforce reduction | position | 160 | |
Restructuring reserve balance | $ 19 | $ 24 |
Restructuring charges paid | $ 5 |
Restructuring - Summary (Detail
Restructuring - Summary (Details) - 2018 Restructuring Plan - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Initial Charge Recorded | $ 25 | |
Ending Reserve Balance | 19 | $ 24 |
Operating Segments | Ratings | ||
Restructuring Cost and Reserve [Line Items] | ||
Initial Charge Recorded | 8 | |
Ending Reserve Balance | 7 | |
Operating Segments | Market Intelligence | ||
Restructuring Cost and Reserve [Line Items] | ||
Initial Charge Recorded | 7 | |
Ending Reserve Balance | 5 | |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Initial Charge Recorded | 10 | |
Ending Reserve Balance | $ 7 |
Segment and Related Informati_3
Segment and Related Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment and Related Informati_4
Segment and Related Information - Operating Results by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,571 | $ 1,567 |
Operating Profit | 705 | 711 |
Amortization of intangibles | 32 | 24 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Profit | 751 | 757 |
Operating Segments | Ratings | ||
Segment Reporting Information [Line Items] | ||
Revenue | 696 | 748 |
Operating Profit | 363 | 408 |
Amortization of intangibles | 1 | |
Operating Segments | Market Intelligence | ||
Segment Reporting Information [Line Items] | ||
Revenue | 482 | 439 |
Operating Profit | 145 | 110 |
Amortization of intangibles | 18 | 18 |
Operating Segments | Platts | ||
Segment Reporting Information [Line Items] | ||
Revenue | 207 | 196 |
Operating Profit | 94 | 90 |
Amortization of intangibles | 3 | 5 |
Operating Segments | Indices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 217 | 212 |
Operating Profit | 149 | 149 |
Amortization of intangibles | 1 | 1 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating Profit | (46) | (46) |
Amortization of intangibles | 8 | |
Retention related expenses | 7 | |
Intersegment Elimination | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ (31) | $ (28) |
Segment and Related Informati_5
Segment and Related Information - Revenue Disaggregated by Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,571 | $ 1,567 |
Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 343 | 379 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,228 | 1,188 |
Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 698 | 637 |
Non-transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 334 | 352 |
Non-subscription / Transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 343 | 379 |
Asset-linked fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 148 | 136 |
Sales usage-based royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 48 | 63 |
Operating Segments | Ratings | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 696 | 748 |
Operating Segments | Ratings | Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 331 | 368 |
Operating Segments | Ratings | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 365 | 380 |
Operating Segments | Ratings | Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Ratings | Non-transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 365 | 380 |
Operating Segments | Ratings | Non-subscription / Transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 331 | 368 |
Operating Segments | Ratings | Asset-linked fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Ratings | Sales usage-based royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Market Intelligence | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 482 | 439 |
Operating Segments | Market Intelligence | Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 10 | 9 |
Operating Segments | Market Intelligence | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 472 | 430 |
Operating Segments | Market Intelligence | Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 467 | 425 |
Operating Segments | Market Intelligence | Non-transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Market Intelligence | Non-subscription / Transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 10 | 9 |
Operating Segments | Market Intelligence | Asset-linked fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5 | 5 |
Operating Segments | Market Intelligence | Sales usage-based royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Platts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 207 | 196 |
Operating Segments | Platts | Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2 | 2 |
Operating Segments | Platts | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 205 | 194 |
Operating Segments | Platts | Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 191 | 181 |
Operating Segments | Platts | Non-transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Platts | Non-subscription / Transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2 | 2 |
Operating Segments | Platts | Asset-linked fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Platts | Sales usage-based royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 14 | 13 |
Operating Segments | Indices | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 217 | 212 |
Operating Segments | Indices | Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Indices | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 217 | 212 |
Operating Segments | Indices | Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 40 | 31 |
Operating Segments | Indices | Non-transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Indices | Non-subscription / Transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Indices | Asset-linked fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 143 | 131 |
Operating Segments | Indices | Sales usage-based royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 34 | 50 |
Intersegment Elimination | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | (31) | (28) |
Intersegment Elimination | Services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Intersegment Elimination | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | (31) | (28) |
Intersegment Elimination | Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Intersegment Elimination | Non-transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | (31) | (28) |
Intersegment Elimination | Non-subscription / Transaction | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Intersegment Elimination | Asset-linked fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Intersegment Elimination | Sales usage-based royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 0 | $ 0 |
Segment and Related Informati_6
Segment and Related Information - Revenue by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 1,571 | $ 1,567 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 943 | 953 |
European region | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 373 | 379 |
Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 169 | 156 |
Rest of the world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 86 | $ 79 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Loss Contingencies [Line Items] | |||
Period of lease extension options | 12 years | ||
Period of options to terminate lease | 1 year | ||
Contribution to noncontrolling interest | $ 18 | $ 50 | |
Affiliated Entity | |||
Loss Contingencies [Line Items] | |||
Contribution to noncontrolling interest | $ 20 | ||
CME Group | S&P DJ Indices | |||
Loss Contingencies [Line Items] | |||
Revenues earned under license agreement | $ 29 | $ 31 | |
Noncontrolling interest ownership by noncontrolling owners (as a percent) | 27.00% | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Remaining lease terms | 14 years |
Commitments and Contingencies_2
Commitments and Contingencies - Location and Amounts of Leases (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Lease right-of-use assets | $ 675 | $ 0 |
Liabilities | ||
Current lease liabilities | 110 | |
Noncurrent lease liabilities | $ 617 | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Components of Lease Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 37 |
Sublease income | (4) |
Total lease cost | $ 33 |
Commitments and Contingencies_4
Commitments and Contingencies - Supplemental Cash Flow Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement for lease liabilities | |
Operating cash flows from operating leases | $ 35 |
Right-of-use assets obtained in exchange for lease obligations | |
Operating leases | $ 715 |
Commitments and Contingencies_5
Commitments and Contingencies - Lease Term and Discount Rate (Details) | Mar. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted-average remaining lease term (years) | 9 years 10 months 15 days |
Weighted-average discount rate (as a percent) | 3.88% |
Commitments and Contingencies_6
Commitments and Contingencies - Maturities of Lease Liabilities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 (Excluding the three months ended March 31, 2019) | $ 104 |
2020 | 111 |
2021 | 93 |
2022 | 79 |
2023 | 71 |
2024 and beyond | 416 |
Total undiscounted lease payments | 874 |
Less: Imputed interest | (147) |
Present value of lease liabilities | $ 727 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements - Narrative (Details) - USD ($) | Mar. 31, 2019 | May 17, 2018 | Sep. 22, 2016 | Aug. 18, 2015 | May 26, 2015 |
Condensed Financial Statements, Captions [Line Items] | |||||
Ownership interest of subsidiary (as a percent) | 100.00% | ||||
Senior Notes | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt issued | $ 2,000,000,000 | ||||
Senior Notes | 4.5% Senior Notes, due 2048 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt issued | $ 500,000,000 | ||||
Stated interest rate (as a percent) | 4.50% | 4.50% | |||
Senior Notes | 2.95% Senior Notes due in 2027 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt issued | $ 500,000,000 | ||||
Stated interest rate (as a percent) | 2.95% | 2.95% | |||
Senior Notes | 4.0% Senior Notes due in 2025 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt issued | $ 700,000,000 | ||||
Stated interest rate (as a percent) | 4.00% | 4.00% | |||
Senior Notes | 2.5% Senior Notes due in 2018 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt issued | $ 400,000,000 | ||||
Stated interest rate (as a percent) | 2.50% | ||||
Senior Notes | 3.3% Senior Notes due in 2020 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt issued | $ 700,000,000 | ||||
Stated interest rate (as a percent) | 3.30% | ||||
Senior Notes | 4.4% Senior Notes due in 2026 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt issued | $ 900,000,000 | ||||
Stated interest rate (as a percent) | 4.40% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements - Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenue | $ 1,571 | $ 1,567 |
Expenses: | ||
Operating-related expenses | 439 | 430 |
Selling and general expenses | 375 | 381 |
Depreciation | 20 | 21 |
Amortization of intangibles | 32 | 24 |
Total expenses | 866 | 856 |
Operating profit | 705 | 711 |
Other expense (income), net | 103 | (4) |
Interest expense (income), net | 36 | 34 |
Non-operating intercompany transactions | 0 | 0 |
Income before taxes on income | 566 | 681 |
(Benefit) provision for taxes on income | 113 | 147 |
Equity in net income of subsidiaries | 0 | 0 |
Net income | 453 | 534 |
Less: net income attributable to noncontrolling interests | (43) | (43) |
Net income attributable to S&P Global Inc. | 410 | 491 |
Comprehensive income | 562 | 543 |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | (38) | (35) |
Expenses: | ||
Operating-related expenses | (38) | (35) |
Selling and general expenses | 0 | 0 |
Depreciation | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Total expenses | (38) | (35) |
Operating profit | 0 | 0 |
Other expense (income), net | 0 | 0 |
Interest expense (income), net | 0 | 0 |
Non-operating intercompany transactions | 23 | 1,016 |
Income before taxes on income | (23) | (1,016) |
(Benefit) provision for taxes on income | 0 | 0 |
Equity in net income of subsidiaries | (506) | (1,512) |
Net income | (529) | (2,528) |
Less: net income attributable to noncontrolling interests | (43) | (43) |
Net income attributable to S&P Global Inc. | (572) | (2,571) |
Comprehensive income | (530) | (2,533) |
S&P Global Inc. | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 202 | 191 |
Expenses: | ||
Operating-related expenses | 33 | 25 |
Selling and general expenses | 30 | 45 |
Depreciation | 11 | 9 |
Amortization of intangibles | 0 | 0 |
Total expenses | 74 | 79 |
Operating profit | 128 | 112 |
Other expense (income), net | 107 | (7) |
Interest expense (income), net | 38 | 38 |
Non-operating intercompany transactions | 96 | 100 |
Income before taxes on income | (113) | (19) |
(Benefit) provision for taxes on income | (40) | (14) |
Equity in net income of subsidiaries | 506 | 1,512 |
Net income | 433 | 1,507 |
Less: net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to S&P Global Inc. | 433 | 1,507 |
Comprehensive income | 515 | 1,487 |
Standard & Poor's Financial Services LLC | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 436 | 434 |
Expenses: | ||
Operating-related expenses | 117 | 117 |
Selling and general expenses | 81 | 87 |
Depreciation | 2 | 2 |
Amortization of intangibles | 0 | 0 |
Total expenses | 200 | 206 |
Operating profit | 236 | 228 |
Other expense (income), net | 0 | 0 |
Interest expense (income), net | 0 | 0 |
Non-operating intercompany transactions | (16) | (20) |
Income before taxes on income | 252 | 248 |
(Benefit) provision for taxes on income | 70 | 71 |
Equity in net income of subsidiaries | 0 | 0 |
Net income | 182 | 177 |
Less: net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to S&P Global Inc. | 182 | 177 |
Comprehensive income | 182 | 177 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenue | 971 | 977 |
Expenses: | ||
Operating-related expenses | 327 | 323 |
Selling and general expenses | 264 | 249 |
Depreciation | 7 | 10 |
Amortization of intangibles | 32 | 24 |
Total expenses | 630 | 606 |
Operating profit | 341 | 371 |
Other expense (income), net | (4) | 3 |
Interest expense (income), net | (2) | (4) |
Non-operating intercompany transactions | (103) | (1,096) |
Income before taxes on income | 450 | 1,468 |
(Benefit) provision for taxes on income | 83 | 90 |
Equity in net income of subsidiaries | 0 | 0 |
Net income | 367 | 1,378 |
Less: net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to S&P Global Inc. | 367 | 1,378 |
Comprehensive income | $ 395 | $ 1,412 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 1,403 | $ 1,917 | ||
Restricted cash | 33 | 41 | ||
Accounts receivable, net of allowance for doubtful accounts | 1,539 | 1,449 | ||
Intercompany receivable | 0 | 0 | ||
Prepaid and other current assets | 207 | 197 | ||
Total current assets | 3,182 | 3,604 | ||
Property and equipment, net of accumulated depreciation | 268 | 270 | ||
Right of use assets | 675 | 0 | ||
Goodwill | 3,533 | 3,535 | ||
Other intangible assets, net | 1,492 | 1,524 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 0 | 0 | ||
Other non-current assets | 570 | 525 | ||
Total assets | 9,720 | 9,458 | ||
Current liabilities: | ||||
Accounts payable | 217 | 211 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation and contributions to retirement plans | 200 | 354 | ||
Income taxes currently payable | 134 | 72 | ||
Unearned revenue | 1,689 | 1,641 | ||
Other current liabilities | 415 | 351 | ||
Total current liabilities | 2,655 | 2,629 | ||
Long-term debt | 3,663 | 3,662 | ||
Lease liabilities — non-current | 617 | 0 | ||
Intercompany loans payable | 0 | 0 | ||
Pension and other postretirement benefits | 227 | 229 | ||
Other non-current liabilities | 523 | 634 | ||
Total liabilities | 7,685 | 7,154 | ||
Redeemable noncontrolling interest | 1,647 | 1,620 | ||
Equity: | ||||
Common stock | 294 | 294 | ||
Additional paid-in capital | 772 | 833 | ||
Retained income | 11,532 | 11,284 | ||
Accumulated other comprehensive loss | (633) | (742) | ||
Less: common stock in treasury | (11,638) | (11,041) | ||
Total equity — controlling interests | 327 | 628 | ||
Total equity - noncontrolling interests | 61 | 56 | ||
Total equity | 388 | 684 | $ 65 | $ 768 |
Total liabilities and equity | 9,720 | 9,458 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net of allowance for doubtful accounts | 0 | 0 | ||
Intercompany receivable | (7,957) | (5,561) | ||
Prepaid and other current assets | 0 | 0 | ||
Total current assets | (7,957) | (5,561) | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Right of use assets | 0 | 0 | ||
Goodwill | 9 | 9 | ||
Other intangible assets, net | 0 | 0 | ||
Investments in subsidiaries | (18,384) | (16,635) | ||
Intercompany loans receivable | (1,737) | (1,773) | ||
Other non-current assets | 0 | 0 | ||
Total assets | (28,069) | (23,960) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany payable | (7,956) | (5,561) | ||
Accrued compensation and contributions to retirement plans | 0 | 0 | ||
Income taxes currently payable | 0 | 0 | ||
Unearned revenue | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (7,956) | (5,561) | ||
Long-term debt | 0 | 0 | ||
Lease liabilities — non-current | 0 | 0 | ||
Intercompany loans payable | (1,737) | (1,773) | ||
Pension and other postretirement benefits | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Total liabilities | (9,693) | (7,334) | ||
Redeemable noncontrolling interest | 1,647 | 1,620 | ||
Equity: | ||||
Common stock | (2,372) | (2,279) | ||
Additional paid-in capital | (9,640) | (9,641) | ||
Retained income | (8,125) | (6,439) | ||
Accumulated other comprehensive loss | 44 | 46 | ||
Less: common stock in treasury | 10 | 12 | ||
Total equity — controlling interests | (20,083) | (18,301) | ||
Total equity - noncontrolling interests | 60 | 55 | ||
Total equity | (20,023) | (18,246) | ||
Total liabilities and equity | (28,069) | (23,960) | ||
S&P Global Inc. | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 146 | 694 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net of allowance for doubtful accounts | 240 | 163 | ||
Intercompany receivable | 1,643 | 550 | ||
Prepaid and other current assets | 49 | 58 | ||
Total current assets | 2,078 | 1,465 | ||
Property and equipment, net of accumulated depreciation | 196 | 192 | ||
Right of use assets | 419 | 0 | ||
Goodwill | 261 | 261 | ||
Other intangible assets, net | 0 | 0 | ||
Investments in subsidiaries | 10,255 | 8,599 | ||
Intercompany loans receivable | 131 | 130 | ||
Other non-current assets | 203 | 194 | ||
Total assets | 13,543 | 10,841 | ||
Current liabilities: | ||||
Accounts payable | 83 | 89 | ||
Intercompany payable | 5,690 | 4,453 | ||
Accrued compensation and contributions to retirement plans | 86 | 125 | ||
Income taxes currently payable | 53 | 1 | ||
Unearned revenue | 249 | 240 | ||
Other current liabilities | 183 | 180 | ||
Total current liabilities | 6,344 | 5,088 | ||
Long-term debt | 3,663 | 3,662 | ||
Lease liabilities — non-current | 390 | 0 | ||
Intercompany loans payable | 116 | 114 | ||
Pension and other postretirement benefits | 161 | 162 | ||
Other non-current liabilities | 132 | 166 | ||
Total liabilities | 10,806 | 9,192 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 294 | 294 | ||
Additional paid-in capital | 4 | 72 | ||
Retained income | 14,292 | 12,622 | ||
Accumulated other comprehensive loss | (216) | (299) | ||
Less: common stock in treasury | (11,637) | (11,040) | ||
Total equity — controlling interests | 2,737 | 1,649 | ||
Total equity - noncontrolling interests | 0 | 0 | ||
Total equity | 2,737 | 1,649 | ||
Total liabilities and equity | 13,543 | 10,841 | ||
Standard & Poor's Financial Services LLC | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net of allowance for doubtful accounts | 208 | 109 | ||
Intercompany receivable | 2,896 | 2,138 | ||
Prepaid and other current assets | 4 | 3 | ||
Total current assets | 3,108 | 2,250 | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Right of use assets | 1 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Investments in subsidiaries | 6 | 6 | ||
Intercompany loans receivable | 0 | 0 | ||
Other non-current assets | 47 | 45 | ||
Total assets | 3,162 | 2,301 | ||
Current liabilities: | ||||
Accounts payable | 16 | 15 | ||
Intercompany payable | 897 | 32 | ||
Accrued compensation and contributions to retirement plans | 13 | 33 | ||
Income taxes currently payable | 0 | 0 | ||
Unearned revenue | 257 | 235 | ||
Other current liabilities | 15 | 16 | ||
Total current liabilities | 1,198 | 331 | ||
Long-term debt | 0 | 0 | ||
Lease liabilities — non-current | 1 | 0 | ||
Intercompany loans payable | 0 | 0 | ||
Pension and other postretirement benefits | 0 | 0 | ||
Other non-current liabilities | 72 | 75 | ||
Total liabilities | 1,271 | 406 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 619 | 618 | ||
Retained income | 1,272 | 1,277 | ||
Accumulated other comprehensive loss | 0 | 0 | ||
Less: common stock in treasury | 0 | 0 | ||
Total equity — controlling interests | 1,891 | 1,895 | ||
Total equity - noncontrolling interests | 0 | 0 | ||
Total equity | 1,891 | 1,895 | ||
Total liabilities and equity | 3,162 | 2,301 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1,257 | 1,223 | ||
Restricted cash | 33 | 41 | ||
Accounts receivable, net of allowance for doubtful accounts | 1,091 | 1,177 | ||
Intercompany receivable | 3,418 | 2,873 | ||
Prepaid and other current assets | 154 | 136 | ||
Total current assets | 5,953 | 5,450 | ||
Property and equipment, net of accumulated depreciation | 72 | 78 | ||
Right of use assets | 255 | 0 | ||
Goodwill | 3,263 | 3,265 | ||
Other intangible assets, net | 1,492 | 1,524 | ||
Investments in subsidiaries | 8,123 | 8,030 | ||
Intercompany loans receivable | 1,606 | 1,643 | ||
Other non-current assets | 320 | 286 | ||
Total assets | 21,084 | 20,276 | ||
Current liabilities: | ||||
Accounts payable | 118 | 107 | ||
Intercompany payable | 1,369 | 1,076 | ||
Accrued compensation and contributions to retirement plans | 101 | 196 | ||
Income taxes currently payable | 81 | 71 | ||
Unearned revenue | 1,183 | 1,166 | ||
Other current liabilities | 217 | 155 | ||
Total current liabilities | 3,069 | 2,771 | ||
Long-term debt | 0 | 0 | ||
Lease liabilities — non-current | 226 | 0 | ||
Intercompany loans payable | 1,621 | 1,659 | ||
Pension and other postretirement benefits | 66 | 67 | ||
Other non-current liabilities | 319 | 393 | ||
Total liabilities | 5,301 | 4,890 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 2,372 | 2,279 | ||
Additional paid-in capital | 9,789 | 9,784 | ||
Retained income | 4,093 | 3,824 | ||
Accumulated other comprehensive loss | (461) | (489) | ||
Less: common stock in treasury | (11) | (13) | ||
Total equity — controlling interests | 15,782 | 15,385 | ||
Total equity - noncontrolling interests | 1 | 1 | ||
Total equity | 15,783 | 15,386 | ||
Total liabilities and equity | $ 21,084 | $ 20,276 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities: | ||
Net income | $ 453 | $ 534 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 20 | 21 |
Amortization of intangibles | 32 | 24 |
Provision for losses on accounts receivable | 7 | 8 |
Deferred income taxes | 10 | 15 |
Stock-based compensation | 12 | 13 |
Pension settlement charge, net of taxes | 85 | 0 |
Other | 8 | 1 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable | (87) | 7 |
Prepaid and other current assets | (34) | (21) |
Accounts payable and accrued expenses | (161) | (289) |
Unearned revenue | (3) | 27 |
Accrued legal settlements | (1) | (29) |
Other current liabilities | (59) | 19 |
Net change in prepaid/accrued income taxes | 75 | 74 |
Net change in other assets and liabilities | (64) | (44) |
Cash provided by operating activities | 293 | 360 |
Investing Activities: | ||
Capital expenditures | (20) | (33) |
Acquisitions, net of cash acquired | (1) | (57) |
Changes in short-term investments | 0 | 3 |
Cash used for investing activities | (21) | (87) |
Financing Activities: | ||
Dividends paid to shareholders | (141) | (127) |
Distributions to noncontrolling interest holders, net | (18) | (50) |
Repurchase of treasury shares | (644) | (1,100) |
Exercise of stock options | 23 | 10 |
Employee withholding tax on share-based payments | (49) | (49) |
Intercompany financing activities | 0 | 0 |
Cash used for financing activities | (829) | (1,316) |
Effect of exchange rate changes on cash | 35 | 20 |
Net change in cash, cash equivalents, and restricted cash | (522) | (1,023) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,958 | 2,779 |
Cash, cash equivalents, and restricted cash at end of period | 1,436 | 1,756 |
Eliminations | ||
Operating Activities: | ||
Net income | (529) | (2,528) |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Provision for losses on accounts receivable | 0 | 0 |
Deferred income taxes | 0 | |
Stock-based compensation | 0 | 0 |
Pension settlement charge, net of taxes | 0 | |
Other | 0 | 0 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable | 0 | 0 |
Prepaid and other current assets | 0 | 0 |
Accounts payable and accrued expenses | 0 | 0 |
Unearned revenue | 0 | 0 |
Accrued legal settlements | 0 | 0 |
Other current liabilities | 0 | 0 |
Net change in prepaid/accrued income taxes | 0 | 0 |
Net change in other assets and liabilities | 0 | |
Cash provided by operating activities | (529) | (2,528) |
Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Changes in short-term investments | 0 | |
Cash used for investing activities | 0 | 0 |
Financing Activities: | ||
Dividends paid to shareholders | 0 | 0 |
Distributions to noncontrolling interest holders, net | 0 | 0 |
Repurchase of treasury shares | 0 | 0 |
Exercise of stock options | 0 | 0 |
Employee withholding tax on share-based payments | 0 | 0 |
Intercompany financing activities | 529 | 2,528 |
Cash used for financing activities | 529 | 2,528 |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
S&P Global Inc. | Reportable Legal Entities | ||
Operating Activities: | ||
Net income | 433 | 1,507 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 11 | 9 |
Amortization of intangibles | 0 | 0 |
Provision for losses on accounts receivable | 2 | 0 |
Deferred income taxes | 3 | (75) |
Stock-based compensation | 2 | 5 |
Pension settlement charge, net of taxes | 85 | |
Other | 0 | 4 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable | (80) | 5 |
Prepaid and other current assets | (9) | (18) |
Accounts payable and accrued expenses | (45) | (60) |
Unearned revenue | 9 | (4) |
Accrued legal settlements | 0 | 0 |
Other current liabilities | (54) | (7) |
Net change in prepaid/accrued income taxes | 69 | 73 |
Net change in other assets and liabilities | (19) | (37) |
Cash provided by operating activities | 407 | 1,402 |
Investing Activities: | ||
Capital expenditures | (8) | (23) |
Acquisitions, net of cash acquired | 0 | 0 |
Changes in short-term investments | 0 | |
Cash used for investing activities | (8) | (23) |
Financing Activities: | ||
Dividends paid to shareholders | (141) | (127) |
Distributions to noncontrolling interest holders, net | 0 | 0 |
Repurchase of treasury shares | (644) | (1,100) |
Exercise of stock options | 23 | 10 |
Employee withholding tax on share-based payments | (49) | (49) |
Intercompany financing activities | (130) | (159) |
Cash used for financing activities | (941) | (1,425) |
Effect of exchange rate changes on cash | (6) | (5) |
Net change in cash, cash equivalents, and restricted cash | (548) | (51) |
Cash, cash equivalents, and restricted cash at beginning of period | 694 | 632 |
Cash, cash equivalents, and restricted cash at end of period | 146 | 581 |
Standard & Poor's Financial Services LLC | Reportable Legal Entities | ||
Operating Activities: | ||
Net income | 182 | 177 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 2 | 2 |
Amortization of intangibles | 0 | 0 |
Provision for losses on accounts receivable | 2 | 2 |
Deferred income taxes | 0 | 0 |
Stock-based compensation | 1 | 3 |
Pension settlement charge, net of taxes | 0 | |
Other | 0 | 0 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable | (101) | (27) |
Prepaid and other current assets | (2) | 1 |
Accounts payable and accrued expenses | (18) | (79) |
Unearned revenue | 23 | 28 |
Accrued legal settlements | (1) | 0 |
Other current liabilities | (1) | (2) |
Net change in prepaid/accrued income taxes | 0 | 1 |
Net change in other assets and liabilities | (5) | 0 |
Cash provided by operating activities | 82 | 106 |
Investing Activities: | ||
Capital expenditures | (4) | (6) |
Acquisitions, net of cash acquired | 0 | 0 |
Changes in short-term investments | 0 | |
Cash used for investing activities | (4) | (6) |
Financing Activities: | ||
Dividends paid to shareholders | 0 | 0 |
Distributions to noncontrolling interest holders, net | 0 | 0 |
Repurchase of treasury shares | 0 | 0 |
Exercise of stock options | 0 | 0 |
Employee withholding tax on share-based payments | 0 | 0 |
Intercompany financing activities | (78) | (100) |
Cash used for financing activities | (78) | (100) |
Effect of exchange rate changes on cash | 0 | 0 |
Net change in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Operating Activities: | ||
Net income | 367 | 1,378 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 7 | 10 |
Amortization of intangibles | 32 | 24 |
Provision for losses on accounts receivable | 3 | 6 |
Deferred income taxes | 7 | 90 |
Stock-based compensation | 9 | 5 |
Pension settlement charge, net of taxes | 0 | |
Other | 8 | (3) |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable | 94 | 29 |
Prepaid and other current assets | (23) | (4) |
Accounts payable and accrued expenses | (98) | (150) |
Unearned revenue | (35) | 3 |
Accrued legal settlements | 0 | (29) |
Other current liabilities | (4) | 28 |
Net change in prepaid/accrued income taxes | 6 | 0 |
Net change in other assets and liabilities | (40) | (7) |
Cash provided by operating activities | 333 | 1,380 |
Investing Activities: | ||
Capital expenditures | (8) | (4) |
Acquisitions, net of cash acquired | (1) | (57) |
Changes in short-term investments | 3 | |
Cash used for investing activities | (9) | (58) |
Financing Activities: | ||
Dividends paid to shareholders | 0 | 0 |
Distributions to noncontrolling interest holders, net | (18) | (50) |
Repurchase of treasury shares | 0 | 0 |
Exercise of stock options | 0 | |
Employee withholding tax on share-based payments | 0 | 0 |
Intercompany financing activities | (321) | (2,269) |
Cash used for financing activities | (339) | (2,319) |
Effect of exchange rate changes on cash | 41 | 25 |
Net change in cash, cash equivalents, and restricted cash | 26 | (972) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,264 | 2,147 |
Cash, cash equivalents, and restricted cash at end of period | $ 1,290 | $ 1,175 |