S&P Global (SPGI) 8-K Recast of 2019 and 2018 Results to Reflect the Allocation Methodology Change to Technology-Related Expenses

S&P Global

Recast of 2019 and 2018 Results to Reflect the Allocation Methodology Change to Technology-Related Expenses

Periods Ended December 31, 2019 and 2018

(unaudited, dollars in millions)		2019
		Q1			Q2			Q3			Q4			Full Year
Ratings	Operating Profit as Previously Reported	$	363		$	455		$	472		$	473		$	1,763
	Net Impact from Allocation Methodology Change	5			5			5			5			20
	Operating Profit	368			460			477			478			1,783
	Non-GAAP Adjustments (a)	—			11			—			—			11
	Deal-Related Amortization	1			1			—			—			2
	Adjusted Operating Profit	$	369		$	472		$	477		$	478		$	1,796
Market Intelligence	Operating Profit as Previously Reported	$	145		$	147		$	171		$	145		$	607
	Net Impact from Allocation Methodology Change	(11		)	(10		)	(10		)	(10		)	(41		)
	Operating Profit	134			137			161			135			566
	Non-GAAP Adjustments (b)	—			1			(22		)	8			(13		)
	Deal-Related Amortization	18			19			19			19			75
	Adjusted Operating Profit	$	153		$	157		$	157		$	162		$	629
Platts	Operating Profit as Previously Reported	$	94		$	107		$	132		$	105		$	438
	Net Impact from Allocation Methodology Change	5			4			4			5			19
	Operating Profit	99			111			136			110			457
	Non-GAAP Adjustments (c)	—			1			(27		)	—			(26		)
	Deal-Related Amortization	3			3			2			2			12
	Adjusted Operating Profit	$	103		$	116		$	112		$	112		$	443
Indices	Operating Profit as Previously Reported	$	149		$	162		$	161		$	157		$	630
	Net Impact from Allocation Methodology Change	1			1			1			—			2
	Operating Profit	150			163			162			157			632
	Deal-Related Amortization	1			1			1			1			6
	Adjusted Operating Profit	$	151		$	164		$	163		$	159		$	637
(unaudited, dollars in millions)		2018
		Q1			Q2			Q3			Q4			Full Year
Ratings	Operating Profit as Previously Reported	$	408		$	369		$	395		$	357		$	1,530
	Net Impact from Allocation Methodology Change	6			6			6			6			24
	Operating Profit	414			375			401			363			1,554
	Non-GAAP Adjustments (a)	—			73			—			9			82
	Deal-Related Amortization	—			1			1			1			2
	Adjusted Operating Profit	$	415		$	449		$	402		$	373		$	1,637
Market Intelligence	Operating Profit as Previously Reported	$	110		$	127		$	147		$	161		$	545
	Net Impact from Allocation Methodology Change	(11		)	(11		)	(12		)	(12		)	(46		)
	Operating Profit	99			116			135			149			500
	Non-GAAP Adjustments (b)	—			—			2			5			7
	Deal-Related Amortization	18			18			19			18			73
	Adjusted Operating Profit	$	117		$	135		$	156		$	173		$	580
Platts	Operating Profit as Previously Reported	$	90		$	98		$	98		$	97		$	383
	Net Impact from Allocation Methodology Change	5			5			5			5			19
	Operating Profit	95			103			103			102			401
	Deal-Related Amortization	5			4			4			4			18
	Adjusted Operating Profit	$	99		$	107		$	107		$	106		$	419
Indices	Operating Profit as Previously Reported	$	149		$	137		$	135		$	143		$	563
	Net Impact from Allocation Methodology Change	—			—			1			1			3
	Operating Profit	149			137			136			144			566
	Deal-Related Amortization	1			1			1			1			6
	Adjusted Operating Profit	$	150		$	139		$	137		$	145		$	571

Note - Totals presented may not sum due to rounding.

(a) Q2 2019 and full year 2019 includes employee severance charges of $11 million. Q2 2018 and full year 2018 includes legal settlement expenses of

$73 million. Q4 2018 and full year 2018 includes employee severance charges of $8 million and legal settlement expenses of $1 million.

(b) Q2 2019 and full year 2019 includes employee severance charges $1 million. Q3 2019 and full year 2019 includes a gain on a disposition of $22

million. Q4 2019 and full year 2019 includes employee severance charges of $4 million and acquisition-related costs of $4 million. Q3 2018 and full

year 2018 includes restructuring charges related to a business disposition and employee severance charges of $2 million. Q4 2018 and full year 2018

includes employee severance charges of $5 million.

(c) Q2 2019 and full year 2019 includes employee severance charges of $1 million. Q3 2019 and full year 2019 includes a gain on disposition of $27

million.