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Condensed Consolidating Financial Statements (Tables)
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]    
Statement of Income
 
Statement of Income
 
Three Months Ended June 30, 2015
 
(Unaudited)
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Revenue
$
161

 
$
573

 
$
636

 
$
(28
)
 
$
1,342

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
21

 
154

 
259

 
(28
)
 
406

Selling and general expenses
1

 
101

 
230

 

 
332

Depreciation
10

 
5

 
7

 

 
22

Amortization of intangibles
1

 

 
10

 

 
11

Total expenses
33

 
260

 
506

 
(28
)
 
771

Other income

 

 
(11
)
 

 
(11
)
Operating profit
128

 
313

 
141

 

 
582

Interest expense (income), net
20

 

 
(4
)
 

 
16

Non-operating intercompany transactions
71

 
59

 
(130
)
 

 

Income from continuing operations before taxes on income
37

 
254

 
275

 

 
566

Provision for taxes on income
11

 
99

 
75

 

 
185

Equity in net income of subsidiaries
338

 
68

 

 
(406
)
 

Net income
$
364

 
$
223

 
$
200

 
$
(406
)
 
$
381

Less: net income from continuing operations attributable to noncontrolling interests

 

 

 
(28
)
 
(28
)
Net income attributable to McGraw Hill Financial, Inc.
$
364

 
$
223

 
$
200

 
$
(434
)
 
$
353

Comprehensive income
$
384

 
$
222

 
$
262

 
$
(405
)
 
$
463


 
Statement of Income
 
Six Months Ended June 30, 2015
 
(Unaudited)
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Revenue
$
317

 
$
1,117

 
$
1,237

 
$
(56
)
 
$
2,615

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
53

 
311

 
504

 
(56
)
 
812

Selling and general expenses
67

 
162

 
436

 

 
665

Depreciation
19

 
10

 
14

 

 
43

Amortization of intangibles
2

 

 
21

 

 
23

Total expenses
141

 
483

 
975

 
(56
)
 
1,543

Other income

 

 
(11
)
 

 
(11
)
Operating profit
176

 
634

 
273

 

 
1,083

Interest expense (income), net
37

 

 
(5
)
 

 
32

Non-operating intercompany transactions
129

 
91

 
(220
)
 

 

Income from continuing operations before taxes on income
10

 
543

 
498

 

 
1,051

Provision for taxes on income
17

 
190

 
133

 

 
340

Equity in net income of subsidiaries
703

 
134

 

 
(837
)
 

Net income
$
696

 
$
487

 
$
365

 
$
(837
)
 
$
711

Less: net income from continuing operations attributable to noncontrolling interests

 

 

 
(55
)
 
(55
)
Net income attributable to McGraw Hill Financial, Inc.
$
696

 
$
487

 
$
365

 
$
(892
)
 
$
656

Comprehensive income
$
710

 
$
486

 
$
357

 
$
(839
)
 
$
714


 
Statement of Income
 
Three Months Ended June 30, 2014
 
(Unaudited)
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Revenue
$
148

 
$
542

 
$
640

 
$
(28
)
 
$
1,302

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
21

 
164

 
250

 
(28
)
 
407

Selling and general expenses
27

 
132

 
217

 

 
376

Depreciation
11

 
4

 
7

 

 
22

Amortization of intangibles
1

 

 
11

 

 
12

Total expenses
60

 
300

 
485

 
(28
)
 
817

Other loss
3

 

 
6

 

 
9

Operating profit
85

 
242

 
149

 

 
476

Interest expense (income), net
15

 

 
(1
)
 

 
14

Non-operating intercompany transactions
15

 
7

 
(22
)
 

 

Income from continuing operations before taxes on income
55

 
235

 
172

 

 
462

Provision for taxes on income
21

 
86

 
45

 

 
152

Equity in net income of subsidiaries
241

 
58

 

 
(299
)
 

Income from continuing operations
275

 
207

 
127

 
(299
)
 
310

Income from discontinued operations, net of tax
6

 

 

 

 
6

Net income
$
281

 
$
207

 
$
127

 
$
(299
)
 
$
316

Less: net income from continuing operations attributable to noncontrolling interests

 

 

 
(24
)
 
(24
)
Net income attributable to McGraw Hill Financial, Inc.
$
281

 
$
207

 
$
127

 
$
(323
)
 
$
292

Comprehensive income
$
240

 
$
208

 
$
146

 
$
(302
)
 
$
292


 
Statement of Income
 
Six Months Ended June 30, 2014
 
(Unaudited)
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Revenue
$
294

 
$
1,028

 
$
1,233

 
$
(57
)
 
$
2,498

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
40

 
315

 
505

 
(57
)
 
803

Selling and general expenses
92

 
237

 
395

 

 
724

Depreciation
20

 
9

 
13

 

 
42

Amortization of intangibles
2

 

 
22

 

 
24

Total expenses
154

 
561

 
935

 
(57
)
 
1,593

Other loss
3

 

 
6

 

 
9

Operating profit
137

 
467

 
292

 

 
896

Interest expense (income), net
31

 

 
(3
)
 

 
28

Non-operating intercompany transactions
74

 
14

 
(88
)
 

 

Income from continuing operations before taxes on income
32

 
453

 
383

 

 
868

Provision for taxes on income
13

 
173

 
104

 

 
290

Equity in net income of subsidiaries
500

 
124

 

 
(624
)
 

Income from continuing operations
519

 
404

 
279

 
(624
)
 
578

Income from discontinued operations, net of tax
12

 

 

 

 
12

Net income
$
531

 
$
404

 
$
279

 
$
(624
)
 
$
590

Less: net income from continuing operations attributable to noncontrolling interests

 

 

 
(50
)
 
(50
)
Net income attributable to McGraw Hill Financial, Inc.
$
531

 
$
404

 
$
279

 
$
(674
)
 
$
540

Comprehensive income
$
515

 
$
380

 
$
305

 
$
(628
)
 
$
572

 
Statement of Income
 
Year Ended December 31, 2014
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Revenue
$
598

 
$
2,043

 
$
2,525

 
$
(115
)
 
$
5,051

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
78

 
389

 
1,275

 
(115
)
 
1,627

Selling and general expenses
296

 
2,350

 
522

 

 
3,168

Depreciation
41

 
17

 
28

 

 
86

Amortization of intangibles
4

 

 
44

 

 
48

Total expenses
419

 
2,756

 
1,869

 
(115
)
 
4,929

Other loss
3

 

 
6

 

 
9

Operating profit (loss)
176

 
(713
)
 
650

 

 
113

Interest expense (income), net
66

 

 
(7
)
 

 
59

Non-operating intercompany transactions
193

 
38

 
(231
)
 

 

(Loss) income from continuing operations before taxes on income
(83
)
 
(751
)
 
888

 

 
54

(Benefit) provision for taxes on income
(22
)
 
16

 
251

 

 
245

Equity in net (loss) income of subsidiaries
(443
)
 
248

 

 
195

 

(Loss) income from continuing operations
(504
)
 
(519
)
 
637

 
195

 
(191
)
Discontinued operations, net of tax:
 
 
 
 
 
 
 
 
 
Income from discontinued operations
18

 

 

 

 
18

Gain on sale of discontinued operations
160

 

 

 

 
160

Discontinued operations, net
178

 

 

 

 
178

Net (loss) income
$
(326
)
 
$
(519
)
 
$
637

 
$
195

 
(13
)
Less: net income from continuing operations attributable to noncontrolling interests

 

 

 
(102
)
 
(102
)
Net (loss) income attributable to McGraw Hill Financial, Inc.
$
(326
)
 
$
(519
)
 
$
637

 
$
93

 
$
(115
)
Comprehensive (loss) income
$
(495
)
 
$
(544
)
 
$
513

 
$
195

 
$
(331
)


 
Statement of Income
 
Year Ended December 31, 2013
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Revenue
$
570

 
$
1,931

 
$
2,306

 
$
(105
)
 
$
4,702

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
128

 
556

 
985

 
(105
)
 
1,564

Selling and general expenses
338

 
532

 
761

 

 
1,631

Depreciation
40

 
19

 
27

 

 
86

Amortization of intangibles
5

 

 
46

 

 
51

Total expenses
511

 
1,107

 
1,819

 
(105
)
 
3,332

Other loss (income)
25

 
3

 
(16
)
 

 
12

Operating profit
34

 
821

 
503

 

 
1,358

Interest expense (income), net
65

 

 
(6
)
 

 
59

Non-operating intercompany transactions
245

 
66

 
(311
)
 

 

Income from continuing operations before taxes on income
(276
)
 
755

 
820

 

 
1,299

(Benefit) provision for taxes on income
(121
)
 
283

 
263

 

 
425

Equity in net income of subsidiaries
1,937

 
197

 

 
(2,134
)
 

Income from continuing operations
1,782

 
669

 
557

 
(2,134
)
 
874

Discontinued operations, net of tax:
 
 
 
 
 
 
 
 
 
Income (loss) from discontinued operations
82

 

 
(79
)
 

 
3

Gain (loss) on sale of discontinued operations
644

 

 
(55
)
 

 
589

Discontinued operations, net
726

 

 
(134
)
 

 
592

Net income
$
2,508

 
$
669

 
$
423

 
$
(2,134
)
 
$
1,466

Less: net income from continuing operations attributable to noncontrolling interests

 

 

 
(91
)
 
(91
)
Less: net loss from discontinued operations attributable to noncontrolling interests


 

 

 
1

 
1

Net income attributable to McGraw Hill Financial, Inc.
$
2,508

 
$
669

 
$
423

 
$
(2,224
)
 
$
1,376

Comprehensive income
$
2,773

 
$
669

 
$
452

 
$
(2,106
)
 
$
1,788


 
Statement of Income
 
Year Ended December 31, 2012
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Revenue
$
522

 
$
1,964

 
$
1,889

 
$
(105
)
 
$
4,270

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
83

 
587

 
868

 
(105
)
 
1,433

Selling and general expenses
360

 
504

 
714

 

 
1,578

Depreciation
45

 
19

 
29

 

 
93

Amortization of intangibles
6

 

 
42

 

 
48

Total expenses
494

 
1,110

 
1,653

 
(105
)
 
3,152

Other income
(52
)
 

 

 

 
(52
)
Operating profit
80

 
854

 
236

 

 
1,170

Interest expense (income), net
85

 

 
(4
)
 

 
81

Non-operating intercompany transactions
201

 
11

 
(212
)
 

 

Income from continuing operations before taxes on income
(206
)
 
843

 
452

 

 
1,089

(Benefit) provision for taxes on income
(106
)
 
320

 
174

 

 
388

Equity in net income of subsidiaries
2,713

 
91

 

 
(2,804
)
 

Income from continuing operations
2,613

 
614

 
278

 
(2,804
)
 
701

Loss from discontinued operations
(147
)
 

 
(33
)
 
(29
)
 
(209
)
Net income
$
2,466

 
$
614

 
$
245

 
$
(2,833
)
 
$
492

Less: net income from continuing operations attributable to noncontrolling interests

 

 

 
(50
)
 
(50
)
Less: net income from discontinued operations attributable to noncontrolling interests


 

 

 
(5
)
 
(5
)
Net income attributable to McGraw Hill Financial, Inc.
$
2,466

 
$
614

 
$
245

 
$
(2,888
)
 
$
437

Comprehensive income
$
2,338

 
$
638

 
$
262

 
$
(2,839
)
 
$
399

Balance Sheet
 
Balance Sheet
 
June 30, 2015
 
(Unaudited)
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
531

 
$

 
$
1,189

 
$

 
$
1,720

Accounts receivable, net of allowance for doubtful accounts
118

 
318

 
627

 

 
1,063

Intercompany receivable

246

 
1,114

 
1,304

 
(2,664
)
 

Deferred income taxes
72

 
173

 
(42
)
 

 
203

Prepaid and other current assets
74

 
30

 
123

 

 
227

Total current assets
1,041

 
1,635

 
3,201

 
(2,664
)
 
3,213

Property and equipment, net of accumulated depreciation
113

 
3

 
92

 

 
208

Goodwill
107

 
41

 
1,226

 
9

 
1,383

Other intangible assets, net
12

 

 
968

 
(3
)
 
977

Asset for pension benefits

 

 
58

 

 
58

Investments in subsidiaries
2,516

 
695

 
7,227

 
(10,438
)
 

Intercompany loans receivable
17

 
361

 
1,816

 
(2,194
)
 

Other non-current assets
73

 
20

 
81

 

 
174

Total assets
$
3,879

 
$
2,755

 
$
14,669

 
$
(15,290
)
 
$
6,013

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
53

 
$
46

 
$
82

 
$

 
$
181

Intercompany payable
1,280

 
611

 
772

 
(2,663
)
 

Accrued compensation and contributions to retirement plans
106

 
53

 
105

 

 
264

Income taxes currently payable

 

 
51

 

 
51

Unearned revenue
270

 
600

 
517

 

 
1,387

Accrued legal and regulatory settlements

 
23

 

 

 
23

Other current liabilities
156

 
9

 
169

 

 
334

Total current liabilities
1,865

 
1,342

 
1,696

 
(2,663
)
 
2,240

Long-term debt
1,494

 

 

 

 
1,494

Intercompany loans payable
22

 

 
2,173

 
(2,195
)
 

Pension and postretirement benefits
226

 

 
59

 

 
285

Deferred income taxes
(226
)
 
52

 
261

 

 
87

Other non-current liabilities
322

 
9

 
(49
)
 

 
282

Total liabilities
3,703

 
1,403

 
4,140

 
(4,858
)
 
4,388

Redeemable noncontrolling interest

 

 

 
810

 
810

Equity:
 
 
 
 
 
 
 
 
 
Common stock
412

 

 
2,316

 
(2,316
)
 
412

Additional paid-in capital
(201
)
 
1,166

 
7,078

 
(7,608
)
 
435

Retained income
7,281

 
186

 
1,382

 
(1,411
)
 
7,438

Accumulated other comprehensive loss
(305
)
 

 
(244
)
 
38

 
(511
)
Less: common stock in treasury
(7,011
)
 

 
(4
)
 
4

 
(7,011
)
Total equity - controlling interests
176

 
1,352

 
10,528

 
(11,293
)
 
763

Total equity - noncontrolling interests

 

 
1

 
51

 
52

Total equity
176

 
1,352

 
10,529

 
(11,242
)
 
815

Total liabilities and equity
$
3,879

 
$
2,755

 
$
14,669

 
$
(15,290
)
 
$
6,013


 
Balance Sheet
 
December 31, 2014
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
1,402

 
$

 
$
1,095

 
$

 
$
2,497

Accounts receivable, net of allowance for doubtful accounts
120

 
293

 
519

 

 
932

Intercompany receivable

525

 
2,125

 
1,998

 
(4,648
)
 

Deferred income taxes
72

 
334

 
(43
)
 

 
363

Prepaid and other current assets
80

 
27

 
67

 

 
174

Total current assets
2,199

 
2,779

 
3,636

 
(4,648
)
 
3,966

Property and equipment, net of accumulated depreciation
111

 
5

 
90

 

 
206

Goodwill
109

 
41

 
1,228

 
9

 
1,387

Other intangible assets, net
13

 

 
991

 

 
1,004

Asset for pension benefits

 

 
28

 

 
28

Investments in subsidiaries
1,258

 
653

 
7,125

 
(9,036
)
 

Intercompany loans receivable
19

 
358

 
1,595

 
(1,972
)
 

Other non-current assets
81

 
25

 
74

 

 
180

Total assets
$
3,790

 
$
3,861

 
$
14,767

 
$
(15,647
)
 
$
6,771

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
59

 
$
45

 
$
87

 
$

 
$
191

Intercompany payable
2,566

 
617

 
1,376

 
(4,559
)
 

Accrued compensation and contributions to retirement plans
133

 
121

 
156

 

 
410

Income taxes currently payable
15

 
1

 
16

 

 
32

Unearned revenue
259

 
585

 
479

 

 
1,323

Accrued legal and regulatory settlements

 
1,609

 

 

 
1,609

Other current liabilities
194

 

 
208

 

 
402

Total current liabilities
3,226

 
2,978

 
2,322

 
(4,559
)
 
3,967

Long-term debt
799

 

 

 

 
799

Intercompany loans payable
109

 

 
1,952

 
(2,061
)
 

Pension and postretirement benefits
272

 

 
61

 

 
333

Deferred income taxes
(245
)
 
51

 
250

 

 
56

Other non-current liabilities
219

 
8

 
40

 

 
267

Total liabilities
4,380

 
3,037

 
4,625

 
(6,620
)
 
5,422

Redeemable noncontrolling interest

 

 

 
810

 
810

Equity:
 
 
 
 
 
 
 
 
 
Common stock
412

 

 
2,316

 
(2,316
)
 
412

Additional paid-in capital
(116
)
 
1,153

 
7,016

 
(7,560
)
 
493

Retained income
6,282

 
(329
)
 
1,053

 
(60
)
 
6,946

Accumulated other comprehensive loss
(319
)
 

 
(236
)
 
41

 
(514
)
Less: common stock in treasury
(6,849
)
 

 
(7
)
 
7

 
(6,849
)
Total equity - controlling interests
(590
)
 
824

 
10,142

 
(9,888
)
 
488

Total equity - noncontrolling interests

 

 

 
51

 
51

Total equity
(590
)
 
824

 
10,142

 
(9,837
)
 
539

Total liabilities and equity
$
3,790

 
$
3,861

 
$
14,767

 
$
(15,647
)
 
$
6,771

 
Balance Sheet
 
December 31, 2014
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
1,402

 
$

 
$
1,095

 
$

 
$
2,497

Accounts receivable, net of allowance for doubtful accounts
120

 
293

 
519

 

 
932

Intercompany receivable

525

 
2,125

 
1,998

 
(4,648
)
 

Deferred income taxes
72

 
334

 
(43
)
 

 
363

Prepaid and other current assets
80

 
27

 
67

 

 
174

Total current assets
2,199

 
2,779

 
3,636

 
(4,648
)
 
3,966

Property and equipment, net of accumulated depreciation
111

 
5

 
90

 

 
206

Goodwill
109

 
41

 
1,228

 
9

 
1,387

Other intangible assets, net
13

 

 
991

 

 
1,004

Asset for pension benefits

 

 
28

 

 
28

Investments in subsidiaries
1,258

 
653

 
7,125

 
(9,036
)
 

Intercompany loans receivable
19

 
358

 
1,595

 
(1,972
)
 

Other non-current assets
81

 
25

 
74

 

 
180

Total assets
$
3,790

 
$
3,861

 
$
14,767

 
$
(15,647
)
 
$
6,771

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
59

 
$
45

 
$
87

 
$

 
$
191

Intercompany payable
2,566

 
617

 
1,376

 
(4,559
)
 

Accrued compensation and contributions to retirement plans
133

 
121

 
156

 

 
410

Income taxes currently payable
15

 
1

 
16

 

 
32

Unearned revenue
259

 
585

 
479

 

 
1,323

Accrued legal and regulatory settlements

 
1,609

 

 

 
1,609

Other current liabilities
194

 

 
208

 

 
402

Total current liabilities
3,226

 
2,978

 
2,322

 
(4,559
)
 
3,967

Long-term debt
799

 

 

 

 
799

Intercompany loans payable
109

 

 
1,952

 
(2,061
)
 

Pension and postretirement benefits
272

 

 
61

 

 
333

Deferred income taxes
(245
)
 
51

 
250

 

 
56

Other non-current liabilities
219

 
8

 
40

 

 
267

Total liabilities
4,380

 
3,037

 
4,625

 
(6,620
)
 
5,422

Redeemable noncontrolling interest

 

 

 
810

 
810

Equity:
 
 
 
 
 
 
 
 
 
Common stock
412

 

 
2,316

 
(2,316
)
 
412

Additional paid-in capital
(116
)
 
1,153

 
7,016

 
(7,560
)
 
493

Retained income
6,282

 
(329
)
 
1,053

 
(60
)
 
6,946

Accumulated other comprehensive loss
(319
)
 

 
(236
)
 
41

 
(514
)
Less: common stock in treasury
(6,849
)
 

 
(7
)
 
7

 
(6,849
)
Total equity - controlling interests
(590
)
 
824

 
10,142

 
(9,888
)
 
488

Total equity - noncontrolling interests

 

 

 
51

 
51

Total equity
(590
)
 
824

 
10,142

 
(9,837
)
 
539

Total liabilities and equity
$
3,790

 
$
3,861

 
$
14,767

 
$
(15,647
)
 
$
6,771

 
Balance Sheet
 
December 31, 2013
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
685

 
$

 
$
857

 
$

 
$
1,542

Accounts receivable, net of allowance for doubtful accounts
108

 
345

 
496

 

 
949

Intercompany receivable
234

 
1,394

 
2,002

 
(3,630
)
 

Deferred income taxes
55

 
34

 
19

 

 
108

Prepaid and other current assets
161

 
1

 
83

 

 
245

Assets held for sale
97

 

 

 

 
97

Total current assets
1,340

 
1,774

 
3,457

 
(3,630
)
 
2,941

Property and equipment, net of accumulated depreciation
135

 
7

 
107

 

 
249

Goodwill
138

 
41

 
1,221

 
9

 
1,409

Other intangible assets, net
17

 

 
1,013

 
3

 
1,033

Asset for pension benefits
232

 

 
29

 

 
261

Investments in subsidiaries
2,215

 
646

 
6,114

 
(8,975
)
 

Intercompany loans receivable
40

 
344

 
(20
)
 
(364
)
 

Other non-current assets
92

 
27

 
49

 

 
168

Total assets
$
4,209

 
$
2,839

 
$
11,970

 
$
(12,957
)
 
$
6,061

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
52

 
$
56

 
$
102

 
$

 
$
210

Intercompany payable
1,665

 
391

 
1,484

 
(3,540
)
 

Accrued compensation and contributions to retirement plans
145

 
119

 
159

 

 
423

Income taxes currently payable
3

 

 
12

 

 
15

Unearned revenue
251

 
559

 
458

 

 
1,268

Other current liabilities
227

 

 
175

 

 
402

Liabilities held for sale
54

 

 

 

 
54

Total current liabilities
2,397

 
1,125

 
2,390

 
(3,540
)
 
2,372

Long-term debt
799

 

 

 

 
799

Intercompany loans payable
89

 

 
363

 
(452
)
 

Pension and postretirement benefits
220

 

 
44

 

 
264

Deferred income taxes
(155
)
 
24

 
337

 

 
206

Other non-current liabilities
235

 
3

 
29

 
(1
)
 
266

Total liabilities
3,585

 
1,152

 
3,163

 
(3,993
)
 
3,907

Redeemable noncontrolling interest

 

 

 
810

 
810

Equity:
 
 
 
 
 
 
 
 
 
Common stock
412

 

 
2,305

 
(2,305
)
 
412

Additional paid-in capital
(87
)
 
1,121

 
7,099

 
(7,686
)
 
447

Retained income
7,195

 
542

 
(462
)
 
109

 
7,384

Accumulated other comprehensive loss
(150
)
 
24

 
(111
)
 
41

 
(196
)
Less: common stock in treasury
(6,746
)
 

 
(24
)
 
24

 
(6,746
)
Total equity - controlling interests
624

 
1,687

 
8,807

 
(9,817
)
 
1,301

Total equity - noncontrolling interests

 

 

 
43

 
43

Total equity
624

 
1,687

 
8,807

 
(9,774
)
 
1,344

Total liabilities and equity
$
4,209

 
$
2,839

 
$
11,970

 
$
(12,957
)
 
$
6,061

Statement of Cash Flows
 
Statement of Cash Flows
 
Six Months Ended June 30, 2015
 
(Unaudited)
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Operating Activities:
 
 
 
 
 
 
 
 
 
Net income
$
696

 
$
487

 
$
365

 
$
(837
)
 
$
711

Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
 
 
 
 
 
 
 
 
 
     Depreciation
19

 
10

 
14

 

 
43

     Amortization of intangibles
2

 

 
21

 

 
23

     Provision for losses on accounts receivable

 
(2
)
 
6

 

 
4

     Deferred income taxes
(138
)
 
161

 
143

 

 
166

     Stock-based compensation
11

 
11

 
15

 

 
37

     Other
6

 
10

 
6

 

 
22

Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
 
 
 
 
 
 
 
 
 
     Accounts receivable
1

 
(23
)
 
(114
)
 

 
(136
)
     Prepaid and current assets
32

 
(3
)
 
(53
)
 

 
(24
)
     Accounts payable and accrued expenses
(99
)
 
(43
)
 
(115
)
 

 
(257
)
     Unearned revenue
11

 
15

 
45

 

 
71

     Accrued legal and regulatory settlements

 
(1,609
)
 

 

 
(1,609
)
     Other current liabilities
(31
)
 
(3
)
 
(2
)
 

 
(36
)
     Net change in prepaid/accrued income taxes
108

 

 
11

 

 
119

     Net change in other assets and liabilities
62

 
3

 
(96
)
 

 
(31
)
Cash provided by (used for) operating activities from continuing operations
680

 
(986
)
 
246

 
(837
)
 
(897
)
Investing Activities:
 
 
 
 
 
 
 
 
 
     Capital expenditures
(18
)
 
(4
)
 
(20
)
 

 
(42
)
     Acquisitions, net of cash acquired

 

 
(2
)
 

 
(2
)
     Proceeds from dispositions

 

 
14

 

 
14

     Changes in short-term investments

 

 
(7
)
 

 
(7
)
Cash used for investing activities from continuing operations
(18
)
 
(4
)
 
(15
)
 

 
(37
)
Financing Activities:
 
 
 
 
 
 
 
 
 
     Proceeds from issuance of senior notes, net
690

 

 

 

 
690

     Dividends paid to shareholders
(185
)
 

 

 

 
(185
)
 Dividends and other payments paid to noncontrolling interests

 

 
(49
)
 

 
(49
)
     Repurchase of treasury shares
(274
)
 

 

 

 
(274
)
     Exercise of stock options
71

 

 
2

 

 
73

     Excess tax benefits from share-based payments
38

 

 

 

 
38

     Intercompany financing activities
(1,870
)
 
990

 
43

 
837

 

Cash (used for) provided by financing activities from continuing operations
(1,530
)
 
990

 
(4
)
 
837

 
293

Effect of exchange rate changes on cash from continuing operations
(3
)
 

 
(4
)
 

 
(7
)
Cash (used for) provided by continuing operations
(871
)
 

 
223

 

 
(648
)
Discontinued Operations:
 
 
 
 
 
 
 
 
 
     Cash used for operating activities

 

 
(129
)
 

 
(129
)
Cash used for discontinued operations

 

 
(129
)
 

 
(129
)
Net change in cash and equivalents
(871
)
 

 
94

 

 
(777
)
Cash and equivalents at beginning of period
1,402

 

 
1,095

 

 
2,497

Cash and equivalents at end of period
$
531

 
$

 
$
1,189

 
$

 
$
1,720


 
Statement of Cash Flows
 
Six Months Ended June 30, 2014
 
(Unaudited)
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Operating Activities:
 
 
 
 
 
 
 
 
 
Net income
$
531

 
$
404

 
$
279

 
$
(624
)
 
$
590

Less: discontinued operations, net
12

 

 

 

 
12

Income from continuing operations
519

 
404

 
279

 
(624
)
 
578

Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
 
 
 
 
 
 
 
 
 
     Depreciation
20

 
9

 
13

 

 
42

     Amortization of intangibles
2

 

 
22

 

 
24

     Provision for losses on accounts receivable
(1
)
 
(3
)
 
4

 

 

     Deferred income taxes

 

 
2

 

 
2

     Stock-based compensation
16

 
15

 
16

 

 
47

     Other
(3
)
 

 
11

 

 
8

Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
 
 
 
 
 
 
 
 
 
     Accounts receivable
1

 
41

 
(53
)
 

 
(11
)
     Prepaid and current assets
(11
)
 
(4
)
 
4

 

 
(11
)
     Accounts payable and accrued expenses
(125
)
 
(110
)
 
(13
)
 

 
(248
)
     Unearned revenue
(12
)
 
(3
)
 
30

 

 
15

     Other current liabilities
(34
)
 
(8
)
 
(27
)
 

 
(69
)
     Net change in prepaid/accrued income taxes
111

 
3

 
(3
)
 

 
111

     Net change in other assets and liabilities
(10
)
 
2

 
(34
)
 

 
(42
)
Cash provided by operating activities from continuing operations
473

 
346

 
251

 
(624
)
 
446

Investing Activities:
 
 
 
 
 
 
 
 
 
     Capital expenditures
(9
)
 
(9
)
 
(19
)
 

 
(37
)
     Acquisitions, net of cash acquired

 

 
(16
)
 

 
(16
)
     Changes in short-term investments

 

 
1

 

 
1

Cash used for investing activities from continuing operations
(9
)
 
(9
)
 
(34
)
 

 
(52
)
Financing Activities:
 
 
 
 
 
 
 
 
 
     Dividends paid to shareholders
(164
)
 

 

 

 
(164
)
 Dividends and other payments paid to noncontrolling interests

 

 
(30
)
 

 
(30
)
     Contingent consideration payments

 

 
(11
)
 

 
(11
)
     Repurchase of treasury shares
(362
)
 

 

 

 
(362
)
     Exercise of stock options
130

 

 
3

 

 
133

     Excess tax benefits from share-based payments
82

 

 

 

 
82

     Intercompany financing activities
(200
)
 
(337
)
 
(87
)
 
624

 

Cash used for financing activities from continuing operations
(514
)
 
(337
)
 
(125
)
 
624

 
(352
)
Effect of exchange rate changes on cash from continuing operations

 

 
19

 

 
19

Cash (used for) provided by continuing operations
(50
)
 

 
111

 

 
61

Discontinued Operations:
 
 
 
 
 
 
 
 
 
     Cash provided by operating activities
14

 

 

 

 
14

Cash provided by discontinued operations
14

 

 

 

 
14

Net change in cash and equivalents
(36
)
 

 
111

 

 
75

Cash and equivalents at beginning of period
685

 

 
857

 

 
1,542

Cash and equivalents at end of period
$
649

 
$

 
$
968

 
$

 
$
1,617

 
Statement of Cash Flows
 
Year Ended December 31, 2014
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Operating Activities:
 
 
 
 
 
 
 
 
 
Net (loss) income
$
(326
)
 
$
(519
)
 
$
637

 
$
195

 
$
(13
)
Less: discontinued operations, net
178

 

 

 

 
178

(Loss) income from continuing operations
(504
)
 
(519
)
 
637

 
195

 
(191
)
Adjustments to reconcile (loss) income from continuing operations to cash (used for) provided by operating activities from continuing operations:
 
 
 
 
 
 
 
 
 
     Depreciation
41

 
17

 
28

 

 
86

     Amortization of intangibles
4

 

 
44

 

 
48

     Provision for losses on accounts receivable

 
5

 
6

 

 
11

     Deferred income taxes
42

 
(272
)
 
(15
)
 

 
(245
)
     Stock-based compensation
31

 
34

 
35

 

 
100

     Accrued legal and regulatory settlements

 
1,587

 

 

 
1,587

     Other
21

 
39

 
20

 

 
80

Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
 
 
 
 
 
 
 
 
 
     Accounts receivable
(11
)
 
47

 
(45
)
 

 
(9
)
     Prepaid and current assets
(42
)
 
(17
)
 
52

 

 
(7
)
     Accounts payable and accrued expenses
(83
)
 
(47
)
 

 

 
(130
)
     Unearned revenue
8

 
26

 
44

 

 
78

     Other current liabilities
(55
)
 
10

 
(6
)
 

 
(51
)
     Net change in prepaid/accrued income taxes
13

 
3

 
(109
)
 

 
(93
)
     Net change in other assets and liabilities
(117
)
 
5

 
57

 

 
(55
)
Cash (used for) provided by operating activities from continuing operations
(652
)
 
918

 
748

 
195

 
1,209

Investing Activities:
 
 
 
 
 
 
 
 
 
     Capital expenditures
(26
)
 
(14
)
 
(52
)
 

 
(92
)
     Acquisitions, net of cash acquired

 

 
(71
)
 

 
(71
)
     Proceeds from dispositions
63

 

 
20

 

 
83

     Changes in short-term investments

 

 
15

 

 
15

Cash provided by (used for) investing activities from continuing operations
37

 
(14
)
 
(88
)
 

 
(65
)
Financing Activities:
 
 
 
 
 
 
 
 
 
    Dividends paid to shareholders
(326
)
 

 

 

 
(326
)
Dividends and other payments paid to noncontrolling interests

 

 
(84
)
 

 
(84
)
     Repurchase of treasury shares
(362
)
 

 

 

 
(362
)
     Exercise of stock options
184

 

 
9

 

 
193

     Contingent payments

 

 
(11
)
 

 
(11
)
     Excess tax benefits from share-based payments
128

 

 

 

 
128

     Intercompany financing activities
1,367

 
(904
)
 
(268
)
 
(195
)
 

Cash provided by (used for) financing activities from continuing operations
991

 
(904
)
 
(354
)
 
(195
)
 
(462
)
Effect of exchange rate changes on cash from continuing operations
3

 

 
(68
)
 

 
(65
)
Cash provided by continuing operations
379

 

 
238

 

 
617

Discontinued Operations:
 
 
 
 
 
 
 
 
 
     Cash provided by operating activities
18

 

 

 

 
18

     Cash provided by investing activities
320

 

 

 

 
320

Cash provided by discontinued operations
338

 

 

 

 
338

Net change in cash and equivalents
717

 

 
238

 

 
955

Cash and equivalents at beginning of year
685

 

 
857

 

 
1,542

Cash and equivalents at end of year
$
1,402

 
$

 
$
1,095

 
$

 
$
2,497


 
Statement of Cash Flows
 
Year Ended December 31, 2013
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Operating Activities:
 
 
 
 
 
 
 
 
 
Net income
$
2,508

 
$
669

 
$
423

 
$
(2,134
)
 
$
1,466

Less: discontinued operations, net
726

 

 
(134
)
 

 
592

Income from continuing operations
1,782

 
669

 
557

 
(2,134
)
 
874

Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
 
 
 
 
 
 
 
 
 
     Depreciation
40

 
19

 
27

 

 
86

     Amortization of intangibles
5

 

 
46

 

 
51

     Provision for losses on accounts receivable
1

 
7

 
14

 

 
22

     Deferred income taxes
39

 

 
4

 

 
43

     Stock-based compensation
35

 
33

 
28

 

 
96

     Accrued legal and regulatory settlements

 

 

 

 

     Other
68

 
10

 
18

 

 
96

Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
 
 
 
 
 
 
 
 
 
     Accounts receivable
(2
)
 
(4
)
 
(29
)
 

 
(35
)
     Prepaid and current assets
(14
)
 
(7
)
 
(8
)
 

 
(29
)
     Accounts payable and accrued expenses
(120
)
 
18

 
8

 

 
(94
)
     Unearned revenue
17

 
43

 
49

 

 
109

     Other current liabilities
(43
)
 
(24
)
 
(22
)
 

 
(89
)
     Net change in prepaid/accrued income taxes
(265
)
 
(3
)
 
30

 

 
(238
)
     Net change in other assets and liabilities
(190
)
 
84

 
(4
)
 

 
(110
)
Cash provided by operating activities from continuing operations
1,353

 
845

 
718

 
(2,134
)
 
782

Investing Activities:
 
 
 
 
 
 
 
 
 
     Capital expenditures
(61
)
 
(19
)
 
(37
)
 

 
(117
)
     Acquisitions, net of cash acquired

 

 
(47
)
 

 
(47
)
     Proceeds from dispositions
35

 

 
16

 

 
51

     Changes in short-term investments

 

 
(17
)
 

 
(17
)
Cash used for investing activities from continuing operations
(26
)
 
(19
)
 
(85
)
 

 
(130
)
Financing Activities:
 
 
 
 
 
 
 
 
 
     Payments on short-term debt
(457
)
 

 

 

 
(457
)
     Dividends paid to shareholders
(308
)
 

 

 

 
(308
)
     Dividends and other payments paid to noncontrolling interests

 

 
(75
)
 

 
(75
)
     Repurchase of treasury shares
(978
)
 

 

 

 
(978
)
     Exercise of stock options
254

 

 
4

 

 
258

     Contingent payments

 

 
(12
)
 

 
(12
)
     Purchase of additional CRISIL shares

 

 
(214
)
 

 
(214
)
     Excess tax benefits from share-based payments
43

 

 

 

 
43

     Intercompany financing activities
(43
)
 
(826
)
 
(1,265
)
 
2,134

 

Cash used for financing activities from continuing operations
(1,489
)
 
(826
)
 
(1,562
)
 
2,134

 
(1,743
)
Effect of exchange rate changes on cash from continuing operations
8

 

 
(9
)
 

 
(1
)
Cash used for continuing operations
(154
)
 

 
(938
)
 

 
(1,092
)
Discontinued Operations:
 
 
 
 
 
 
 
 
 
     Cash provided by (used for) operating activities
720

 

 
(951
)
 

 
(231
)
     Cash provided by investing activities

 

 
2,129

 

 
2,129

     Cash used for financing activities

 

 
(25
)
 

 
(25
)
     Effect of exchange rate changes on cash

 

 
1

 

 
1

Cash provided by discontinued operations
720

 

 
1,154

 

 
1,874

Net change in cash and equivalents
566

 

 
216

 

 
782

Cash and equivalents at beginning of year
119

 

 
641

 

 
760

Cash and equivalents at end of year
$
685

 
$

 
$
857

 
$

 
$
1,542


 
Statement of Cash Flows
 
Year Ended December 31, 2012
(in millions)
McGraw Hill Financial, Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
McGraw Hill Financial Inc. Consolidated
Operating Activities:
 
 
 
 
 
 
 
 
 
Net income
$
2,466

 
$
614

 
$
245

 
$
(2,833
)
 
$
492

Less: discontinued operations, net
(147
)
 

 
(33
)
 
(29
)
 
(209
)
Income from continuing operations
2,613

 
614

 
278

 
(2,804
)
 
701

Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
 
 
 
 
 
 
 
 
 
     Depreciation
45

 
19

 
29

 

 
93

     Amortization of intangibles
6

 

 
42

 

 
48

     Provision for losses on accounts receivable
1

 
16

 
15

 

 
32

     Deferred income taxes
100

 
(41
)
 
(6
)
 

 
53

     Stock-based compensation
21

 
32

 
37

 

 
90

     Accrued legal and regulatory settlements

 

 

 

 

     Other
(16
)
 
23

 
(4
)
 

 
3

Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
 
 
 
 
 
 
 
 
 
     Accounts receivable
64

 
(53
)
 
(261
)
 

 
(250
)
     Prepaid and current assets

 
(18
)
 
21

 

 
3

     Accounts payable and accrued expenses
53

 
(71
)
 
91

 

 
73

     Unearned revenue
11

 
(29
)
 
41

 

 
23

     Other current liabilities
(29
)
 
(21
)
 
(18
)
 

 
(68
)
     Net change in prepaid/accrued income taxes
135

 

 
(16
)
 

 
119

     Net change in other assets and liabilities
(144
)
 
8

 
(54
)
 

 
(190
)
Cash provided by operating activities from continuing operations
2,860

 
479

 
195

 
(2,804
)
 
730

Investing Activities:
 
 
 
 
 
 
 
 
 
     Capital expenditures
(50
)
 
(23
)
 
(23
)
 

 
(96
)
     Acquisitions, net of cash acquired

 

 
(177
)
 

 
(177
)
     Changes in short-term investments

 

 
27

 

 
27

Cash used for investing activities from continuing operations
(50
)
 
(23
)
 
(173
)
 

 
(246
)
Financing Activities:
 
 
 
 
 
 
 
 
 
     Payments on short-term debt
457

 

 

 

 
457

     Payments on senior notes
(400
)
 

 

 

 
(400
)
     Dividends paid to shareholders
(984
)
 

 

 

 
(984
)
     Dividends and other payments paid to noncontrolling interests

 

 
(24
)
 

 
(24
)
     Repurchase of treasury shares
(295
)
 

 

 

 
(295
)
     Exercise of stock options
299

 

 

 

 
299

     Excess tax benefits from share-based payments
42

 

 

 

 
42

     Intercompany financing activities
(3,402
)
 
(456
)
 
1,025

 
2,833

 

Cash (used for) provided by financing activities from continuing operations
(4,283
)
 
(456
)
 
1,001

 
2,833

 
(905
)
Effect of exchange rate changes on cash from continuing operations
2

 

 
3

 

 
5

Cash (used for) provided by continuing operations
(1,471
)
 

 
1,026

 
29

 
(416
)
Discontinued Operations:
 
 
 
 
 
 
 
 
 
     Cash provided by (used for) operating activities
1,301

 

 
(735
)
 
(29
)
 
537

     Cash used for investing activities

 

 
(199
)
 

 
(199
)
     Cash used for financing activities

 

 
(12
)
 

 
(12
)
     Effect of exchange rate changes on cash

 

 
3

 

 
3

     Effect of change in cash and equivalents

 

 
12

 

 
12

Cash provided by (used for) discontinued operations
1,301

 

 
(931
)
 
(29
)
 
341

Net change in cash and equivalents
(170
)
 

 
95

 

 
(75
)
Cash and equivalents at beginning of year
289

 

 
546

 

 
835

Cash and equivalents at end of year
$
119

 
$

 
$
641

 
$

 
$
760