10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-1023

McGraw Hill Financial, Inc.

(Exact name of registrant as specified in its charter)

New York	13-1026995
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
55 Water Street, New York, New York	10041
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 212-438-1000

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES þ NO ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES þ NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act.

þ Large accelerated filer	o Accelerated filer	o Non-accelerated filer	o Smaller reporting company
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES ¨ NO þ

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Class	Shares Outstanding	Date
Common stock (par value $1.00 per share)	270.3 million	October 16, 2015

1

McGraw Hill Financial, Inc.

INDEX

	Page Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Report of Independent Registered Public Accounting Firm	3
Consolidated Statements of Income for the three and nine months ended September 30, 2015 and 2014	4
Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014	5
Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014	6
Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014	7
Consolidated Statement of Equity for the nine months ended September 30, 2015	8
Notes to the Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Unaudited)	31
Item 3. Quantitative and Qualitative Disclosures About Market Risk	50
Item 4. Controls and Procedures	50
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	51
Item 1a. Risk Factors	51
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 5. Other Information	52
Item 6. Exhibits	53
Signatures	54

2

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of McGraw Hill Financial, Inc.

We have reviewed the consolidated balance sheet of McGraw Hill Financial, Inc. (and subsidiaries) (the "Company") as of September 30, 2015, the related consolidated statements of income and comprehensive income for the three-month and nine-month periods ended September 30, 2015 and 2014, the related consolidated statements of cash flows for the nine-month periods ended September 30, 2015 and 2014, and the related consolidated statement of equity for the nine-month period ended September 30, 2015. These financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of McGraw Hill Financial, Inc. (and subsidiaries) as of December 31, 2014, and the related consolidated statements of income, comprehensive income, equity, and cash flows for the year then ended (not presented herein) and we expressed an unqualified audit opinion on those consolidated financial statements in our report dated February 13, 2015, except for Note 15, as to which the date is October 29, 2015.

/s/ ERNST & YOUNG LLP

New York, New York

November 3, 2015

3

PART I — FINANCIAL INFORMATION

Item 1.Financial Statements

McGraw Hill Financial, Inc.

Consolidated Statements of Income

(Unaudited)

(in millions, except per share amounts)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Revenue	$	1,324		$	1,263		$	3,938		$	3,761
Expenses:
Operating-related expenses	407			402			1,218			1,205
Selling and general expenses	470			462			1,134			1,186
Depreciation	20			21			64			64
Amortization of intangibles	17			12			40			36
Total expenses	914			897			2,456			2,491
Other (income) loss	—			—			(11		)	9
Operating profit	410			366			1,493			1,261
Interest expense, net	30			12			62			40
Income from continuing operations before taxes on income	380			354			1,431			1,221
Provision for taxes on income	99			139			439			428
Income from continuing operations	281			215			992			793
Income from discontinued operations, net of tax	—			2			—			15
Net income	281			217			992			808
Less: net income from continuing operations attributable to noncontrolling interests	(29		)	(27		)	(83		)	(77		)
Net income attributable to McGraw Hill Financial, Inc.	$	252		$	190		$	909		$	731
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	252		$	188		$	909		$	716
Income from discontinued operations	—			2			—			15
Net income	$	252		$	190		$	909		$	731
Earnings per share attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations:
Basic	$	0.93		$	0.69		$	3.33		$	2.64
Diluted	$	0.92		$	0.68		$	3.30		$	2.59
Income from discontinued operations:
Basic	$	—		$	0.01		$	—		$	0.05
Diluted	$	—		$	0.01		$	—		$	0.05
Net income:
Basic	$	0.93		$	0.70		$	3.33		$	2.69
Diluted	$	0.92		$	0.69		$	3.30		$	2.64
Weighted-average number of common shares outstanding:
Basic	271.3			270.9			272.6			271.4
Diluted	274.4			275.4			275.4			276.2
Actual shares outstanding at period end							270.3			271.4
Dividend declared per common share	$	0.33		$	0.30		$	0.99		$	0.90

See accompanying notes to the unaudited consolidated financial statements.

4

McGraw Hill Financial, Inc.

Consolidated Statements of Comprehensive Income

(Unaudited)

(in millions)	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Net income	$	281		$	217		$	992		$	808
Other comprehensive income:
Foreign currency translation adjustment	(45		)	(68		)	(78		)	(56		)
Income tax effect	1			1			—			1
	(44		)	(67		)	(78		)	(55		)
Pension and other postretirement benefit plans	5			—			59			(54		)
Income tax effect	(1		)	—			(19		)	21
	4			—			40			(33		)
Unrealized gain on forward exchange contracts	(1		)	—			(1		)	4
Income tax effect	—			—			—			(1		)
	(1		)	—			(1		)	3
Comprehensive income	240			150			953			723
Less: comprehensive income attributable to nonredeemable noncontrolling interests	(3		)	(4		)	(7		)	(8		)
Less: comprehensive income attributable to redeemable noncontrolling interests	(26		)	(23		)	(76		)	(69		)
Comprehensive income attributable to McGraw Hill Financial, Inc.	$	211		$	123		$	870		$	646

See accompanying notes to the unaudited consolidated financial statements.

5

McGraw Hill Financial, Inc.

Consolidated Balance Sheets

(in millions)	September 30, 2015			December 31, 2014
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,441		$	2,497
Accounts receivable, net of allowance for doubtful accounts: 2015 - $35; 2014 - $38	986			932
Deferred income taxes	203			363
Prepaid and other current assets	206			174
Total current assets	2,836			3,966
Property and equipment, net of accumulated depreciation: 2015 - $600; 2014 - $563	237			206
Goodwill	2,968			1,387
Other intangible assets, net	1,881			1,004
Other non-current assets	241			208
Total assets	$	8,163		$	6,771
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	211		$	191
Accrued compensation and contributions to retirement plans	320			410
Unearned revenue	1,453			1,323
Accrued legal and regulatory settlements (Note 11)	104			1,609
Other current liabilities	417			434
Total current liabilities	2,505			3,967
Long-term debt	3,489			799
Pension and other postretirement benefits	278			333
Other non-current liabilities	377			323
Total liabilities	6,649			5,422
Redeemable noncontrolling interest (Note 7)	810			810
Commitments and contingencies (Note 11)
Equity:
Common stock	412			412
Additional paid-in capital	441			493
Retained income	7,592			6,946
Accumulated other comprehensive loss	(553		)	(514		)
Less: common stock in treasury	(7,234		)	(6,849		)
Total equity — controlling interests	658			488
Total equity — noncontrolling interests	46			51
Total equity	704			539
Total liabilities and equity	$	8,163		$	6,771

See accompanying notes to the unaudited consolidated financial statements.

6

McGraw Hill Financial, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(in millions)	Nine Months Ended
	September 30,
	2015			2014
Operating Activities:
Net income	$	992		$	808
Less: discontinued operations, net	—			15
Income from continuing operations	992			793
Adjustments to reconcile income from continuing operations to cash (used for) provided by operating activities from continuing operations:
Depreciation	64			64
Amortization of intangibles	40			36
Provision for losses on accounts receivable	3			5
Deferred income taxes	166			(33		)
Stock-based compensation	55			72
Other	139			106
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(44		)	12
Prepaid and other current assets	(6		)	(8		)
Accounts payable and accrued expenses	(186		)	(211		)
Unearned revenue	18			7
Accrued legal and regulatory settlements	(1,624		)	—
Other current liabilities	(53		)	(65		)
Net change in prepaid/accrued income taxes	140			93
Net change in other assets and liabilities	(60		)	(51		)
Cash (used for) provided by operating activities from continuing operations	(356		)	820
Investing Activities:
Capital expenditures	(74		)	(52		)
Acquisitions, net of cash acquired	(2,393		)	(65		)
Proceeds from dispositions	14			83
Changes in short-term investments	(3		)	(1		)
Cash used for investing activities from continuing operations	(2,456		)	(35		)
Financing Activities:
Proceeds from issuance of senior notes, net	2,674			—
Dividends paid to shareholders	(274		)	(245		)
Dividends and other payments paid to noncontrolling interests	(67		)	(31		)
Contingent consideration payment	(5		)	(11		)
Purchase of CRISIL shares	(16		)	—
Repurchase of treasury shares	(501		)	(362		)
Exercise of stock options	77			159
Excess tax benefits from share-based payments	39			89
Cash provided by (used for) financing activities from continuing operations	1,927			(401		)
Effect of exchange rate changes on cash from continuing operations	(42		)	(24		)
Cash (used for) provided by continuing operations	(927		)	360
Discontinued Operations:
Cash (used for) provided by operating activities	(129		)	16
Cash provided by (used for) investing activities	—			—
Cash provided by (used for) financing activities	—			—
Cash (used for) provided by discontinued operations	(129		)	16
Net change in cash and cash equivalents	(1,056		)	376
Cash and cash equivalents at beginning of period	2,497			1,542
Cash and cash equivalents at end of period	$	1,441		$	1,918

See accompanying notes to the unaudited consolidated financial statements.

7

McGraw Hill Financial, Inc.

Consolidated Statement of Equity

(Unaudited)

(in millions)	Common Stock $1 par		Additional Paid-in Capital			Retained Income			Accumulated Other Comprehensive Loss			Less: Treasury Stock			Total MHFI Equity			Noncontrolling Interests			Total Equity
Balance as of December 31, 2014	$	412	$	493		$	6,946		$	(514	)	$	6,849		$	488		$	51		$	539
Comprehensive income 1						909			(39		)				870			7			877
Dividends						(270		)							(270		)	(8		)	(278		)
Share repurchases												501			(501		)	(4		)	(505		)
Employee stock plans, net of tax benefit			(52		)							(116		)	64			1			65
Change in redemption value of redeemable noncontrolling interest						7									7						7
Other															—			(1		)	(1		)
Balance as of September 30, 2015	$	412	$	441		$	7,592		$	(553	)	$	7,234		$	658		$	46		$	704

¹ Excludes $76 million attributable to our redeemable noncontrolling interest.

See accompanying notes to the unaudited consolidated financial statements.

8

McGraw Hill Financial, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

1. Nature of Operations and Basis of Presentation

McGraw Hill Financial, Inc. (together with its consolidated subsidiaries, "McGraw Hill Financial," the “Company,” “we,” “us” or “our”) is a leading benchmarks & ratings, analytics, data and research provider serving the global capital, commodities and commercial markets. The capital markets include asset managers, investment banks, commercial banks, exchanges, and issuers; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within automotive and marketing / research information services.

Our operations consist of four reportable segments: Standard & Poor’s Ratings Services (“S&P Ratings”), S&P Capital IQ and SNL, S&P Dow Jones Indices ("S&P DJ Indices") and Commodities & Commercial Markets (“C&C”).

• S&P Ratings is an independent provider of credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks.

• S&P Capital IQ and SNL is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services.

• S&P DJ Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.

• C&C consists of business-to-business companies specializing in commercial and commodities markets that deliver their customers access to high-value information, data, analytic services and pricing and quality benchmarks.

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 footnotes 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, 2014 (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 and nine months ended September 30, 2015 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.

2. Acquisitions and Divestitures

Acquisitions

Acquisitions by segment included:

S&P Capital IQ and SNL

• On September 1, 2015 (the "Acquisition Date"), we acquired SNL Financial LC ("SNL") for $2.225 billion in cash, subject to working capital adjustments. SNL's results of operations have been included in our consolidated statements of income subsequent to the Acquisition Date. SNL is a global provider of news, data, and analytical tools to five sectors in the global economy: financial services, real estate, energy, media & communications, and metals & mining. SNL delivers information through its suite of web, mobile and direct data feed platforms that helps clients, including investment and commercial banks, investors, corporations, and regulators make decisions, improve efficiency, and manage risk.

9

Acquisition-Related Expenses

During the three and nine months ended September 30, 2015, the Company incurred approximately $32 million of acquisition-related costs related to the acquisition of SNL. These expenses are included in selling and general expenses in our consolidated statements of income.

Preliminary Allocation of Purchase Price

Our acquisition of SNL was accounted for using the purchase method. Under the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles. The goodwill recognized is largely attributable to anticipated operational synergies and growth opportunities as a result of the acquisition. The intangible assets, excluding goodwill and indefinite-lived intangibles, will be amortized over their anticipated useful lives between 10 and 18 years which will be determined when we finalize our purchase price allocation. The goodwill is expected to be deductible for tax purposes.

The following table presents the the preliminary allocation of purchase price to the assets and liabilities of SNL as a result of the acquisition.

(in millions)
Current assets	$	22
Property, plant and equipment	19
Goodwill	1,558
Other intangible assets, net:
Databases and software	421
Customer relationships	162
Tradenames	185
Other intangibles	4
Other intangible assets, net	772
Other non-current assets	3
Total assets acquired	2,374
Current liabilities	(19		)
Unearned revenue	(118		)
Other non-current liabilities	(6		)
Total liabilities acquired	(143		)
Net assets acquired	$	2,231

The Company has performed a preliminary valuation analysis of the fair market value of assets and liabilities of the SNL Financial business.  The final purchase price allocation will be determined when the Company has completed the detailed valuations and necessary calculations. The final allocation could differ materially from the preliminary allocation. The final allocation may include (1) changes in fair values of property, plant and equipment, (2) changes in allocations to intangible assets as well as goodwill and (3) other changes to assets and liabilities.

The projected incremental amortization expense for intangible assets beginning in 2016 related to SNL over each of the next five years ended December 31, 2020 is approximately $53 million. Amortization expense related to SNL for the three and nine months ended September 30, 2015 was approximately $4 million.

Supplemental Pro Forma Information

Supplemental information on an unaudited pro forma basis is presented below for the nine months ended September 30, 2015 and 2014 as if the acquisition of SNL occurred on January 1, 2014. The pro forma financial information is presented for comparative purposes only, based on estimates and assumptions, which the Company believes to be reasonable but not necessarily indicative of the consolidated financial position or results of operations in future periods or the results that actually would have been realized had this acquisition been completed at the beginning of 2015. The unaudited pro forma information includes non-recurring transaction related costs, intangible asset charges and incremental borrowing costs as a result of the acquisition, net of related tax, estimated using the Company's effective tax rate for continuing operations for the periods presented.

10

(in millions)	Nine Months Ended September 30,
	2015		2014
Pro forma revenue	$	4,124	$	3,927
Pro forma net income from continuing operations	$	954	$	746

C&C

• In July of 2015, we acquired the entire issued share capital of Petromedia Ltd and its operating subsidiaries (“Petromedia”), an independent provider of data, intelligence, news and tools to the global fuels market that offers a suite of products that provides clients with actionable data and intelligence that enable informed decisions, minimize risk and increase efficiency. We accounted for the acquisition of Petromedia using the purchase method of accounting. The acquisition of Petromedia was not material to our consolidated financial statements.

• In July of 2015, we acquired National Automobile Dealers Association's Used Car Guide (“UCG”), a leading provider of U.S. retail, trade-in and auction used-vehicle values. The acquisition of UCG expanded our analytical and modeling capabilities while deepening our presence in auto finance and auto insurance, and enriching retail solutions. We accounted for the acquisition of UCG using the purchase method of accounting. The acquisition of UCG was not material to our consolidated financial statements.

• In July of 2014, we acquired Eclipse Energy Group AS and its operating subsidiaries (“Eclipse”), which provides a comprehensive suite of data and analytics products on the European natural gas and liquefied natural gas markets as well as a range of advisory services leveraging Eclipse’s knowledge base, data capabilities, and modeling suite of products. This transaction complements our North American natural gas capabilities, which we obtained from our Bentek Energy LLC acquisition in 2011. We accounted for the acquisition of Eclipse using the purchase method of accounting. The acquisition of Eclipse was not material to our consolidated financial statements.

S&P DJ Indices

• In March of 2014, we acquired the intellectual property of a family of Broad Market Indices (“BMI”) from Citigroup Global Markets Inc. The BMI provides a broad measure of the global equities markets which includes approximately 11,000 companies in more than 52 countries covering both developed and emerging markets. We accounted for the acquisition of the intellectual property on a cost basis and it was not material to our consolidated financial statements.

Following CRISIL's acquisition of Coalition Development Ltd. ("Coalition") that occurred in July of 2012, we made a contingent purchase price payment in the first nine months of 2014 for $11 million that has been reflected in the consolidated statement of cash flows as a financing activity.

Divestitures - Continuing Operations

During the nine months ended September 30, 2015, we recorded a pre-tax gain of $11 million within other (income) loss in the consolidated statement of income related to the sale of our interest in a legacy McGraw Hill Construction investment.

On July 31, 2014, we completed the sale of the Company's aircraft to Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company for a purchase price of $20 million. During the second quarter of 2014, we recorded a non-cash impairment charge of $6 million within other (income) loss in our consolidated statement of income as a result of the pending sale. See Note 13 — Related Party Transactions for further information.

On June 30, 2014, we completed the sale of our data center to Quality Technology Services, LLC which owns, operates and manages data centers. Net proceeds from the sale of $58 million were received in July of 2014. The sale includes all of the facilities and equipment on the south campus of our East Windsor, New Jersey location, inclusive of the rights and obligations associated with an adjoining solar power field. The sale resulted in an expense of $3 million recorded within other (income) loss in our consolidated statement of income, which is in addition to the non-cash impairment charge we recorded in the fourth quarter of 2013.

11

Divestitures - Discontinued Operations

On November 3, 2014, we completed the sale of McGraw Hill Construction, which has historically been part of our C&C segment, to Symphony Technology Group for $320 million in cash. Accordingly, the results of operations for the three and nine months ended September 30, 2014, have been reclassified to reflect the business as a discontinued operation.

The key components of income from discontinued operations for the periods ended September 30, 2014 consist of the following:

(in millions)	Three Months		Nine Months
Revenue	$	40	$	124
Expenses	37		100
Operating income	3		24
Provision for taxes on income	1		9
Income from discontinued operations, net of tax	$	2	$	15

3. Income Taxes

The effective income tax rate for continuing operations was 25.9% and 30.7% for the three and nine months ended September 30, 2015, respectively, and 39.2% and 35.1% for the three and nine months ended September 30, 2014, respectively. Our effective income tax rate from continuing operations was lower than the prior periods as the result of the resolution of tax audits, increased income in lower tax rate jurisdictions, and the non-deductible tax treatment of certain regulatory charges incurred during 2014.

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 extraordinary 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.

As of September 30, 2015 and December 31, 2014, the total amount of federal, state and local, and foreign unrecognized tax benefits was $122 million and $118 million, respectively, exclusive of interest and penalties. The increase in unrecognized tax benefits relates primarily to tax positions of prior years. We recognize accrued interest and penalties related to unrecognized tax benefits in interest expense and operating-related expense, respectively. In addition, as of September 30, 2015 and December 31, 2014, we had $30 million and $23 million, respectively, of accrued interest and penalties associated with unrecognized tax benefits.

Based on the current status of income tax audits, we believe that the total amount of unrecognized tax benefits may significantly decrease in the next twelve months. Although the ultimate resolution of our tax audits is unpredictable, the resulting change in our unrecognized tax benefits could have a material impact on our results of operations and/or cash flows.

12

4. Debt

(in millions)	September 30, 2015		December 31, 2014
5.9% Senior Notes, due 2017 1	$	400	400
2.5% Senior Notes, due 2018 2	399		—
3.3% Senior Notes, due 2020 3	699		—
4.0% Senior Notes, due 2025 4	695		—
4.4% Senior Notes, due 2026 5	897		—
6.55% Senior Notes, due 2037 6	399		399
Long-term debt	$	3,489	$	799

1 Interest payments are due semiannually on April 15 and October 15, and, as of September 30, 2015, the unamortized debt discount is less than $1 million.

2 Interest payments are due semiannually on February 15 and August 15, beginning on February15, 2016, and, as of September 30, 2015, the unamortized debt discount is less than $1 million.

3 Interest payments are due semiannually on February 14 and August 14, beginning on February14, 2016, and, as of September 30, 2015, the unamortized debt discount is approximately $1 million.

4 Interest payments are due semiannually on June 15 and December 15, beginning on December15, 2015, and, as of September 30, 2015, the unamortized debt discount is approximately $5 million.

5 Interest payments are due semiannually on February 15 and August 15, beginning on February15, 2016, and, as of September 30, 2015, the unamortized debt discount is approximately $3 million.

6 Interest payments are due semiannually on May 15 and November 15, and, as of September 30, 2015, the unamortized debt discount is approximately $1 million.

The fair value of our long-term debt borrowings was $3.6 billion and $0.9 billion as of September 30, 2015 and December 31, 2014, respectively, and was estimated based on quoted market prices.

On August 18, 2015, we issued $2.0 billion of senior notes (the "Notes"), consisting of $400 million of 2.5% senior notes due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026. The Notes are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC. We used the net proceeds to finance the acquisition of SNL.

On May 26, 2015, we issued $700 million of 4.0% senior notes due in 2025 and used a portion of the net proceeds for the repayment of short-term debt, including commercial paper. The 4.0% senior notes will mature on June 15, 2025 and are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC.

Currently, we have the ability to borrow a total of $1.2 billion through our commercial paper program, which is supported by our credit facility described below. As of September 30, 2015 and December 31, 2014, we had no commercial paper outstanding or borrowings outstanding under our credit facility. In connection with the payment of legal and regulatory settlements recorded in 2014 and paid largely in 2015, we utilized our commercial paper program and borrowed from our credit facility during the nine months ended September 30, 2015.

On June 30, 2015, we entered into a revolving $1.2 billionfive-year credit agreement (our “credit facility”) that will terminate on June 30, 2020. This credit facility replaced our $1.0 billionfour-year credit facility that was scheduled to terminate on June 19, 2017. The previous credit facility was canceled immediately after the new credit facility became effective. There were no outstanding borrowings under the previous credit facility when it was replaced.

We pay a commitment fee of 10 to 20 basis points for our credit facility, depending on our indebtedness to cash flow ratio, whether or not amounts have been borrowed and currently pay a commitment fee of 12.5 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 indebtedness to cash flow ratio added to the applicable rate.

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. 

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5. 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 that provide senior management with supplemental retirement, disability and death benefits. Certain supplemental retirement benefits are based on final monthly earnings. In addition, we sponsor voluntary 401(k) plans 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 pension cost pursuant to our accounting policy for amortizing such amounts.

As discussed in our Form 10-K, we changed certain discount rate assumptions and our expected return on assets assumption for our retirement plans, which became effective on January 1, 2015. In addition, we updated the assumed mortality rates to reflect life expectancy improvements. The effect of the assumption changes for the three and nine months ended September 30, 2015 resulted in an increase in pre-tax retirement expense of approximately $8 million and $25 million, respectively.

In the first nine months of 2015, we contributed $14 million to our retirement plans and expect to make additional required contributions of approximately $1 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 fourth quarter of 2015.

6. 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.

Stock-based compensation for the periods ended September 30 is as follows:

(in millions)	Three Months				Nine Months
	2015		2014		2015		2014
Stock option expense	$	2	$	6	$	11	$	15
Restricted stock and unit awards expense	16		20		44		57
Total stock-based compensation expense	$	18	$	26	$	55	$	72

During the nine months ended September 30, 2015, the Company granted 0.6 million shares of restricted stock and unit awards, which had a weighted average grant date fair value of $104.31 per share, and a minimal amount of employee stock options.

Total unrecognized compensation expense related to unvested stock option awards and unvested restricted stock unit awards as of September 30, 2015 was $4 million and $75 million, respectively, which is expected to be recognized over a weighted average period of 1.4 years and 1.8 years, respectively.

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7. 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 periods ended September 30 were as follows:

(in millions, except average price)	Three Months				Nine Months
	2015		2014		2015		2014
Total number of shares purchased 1	2.3		—		4.9		4.4
Average price paid per share 1	$	99.01	$	—	$	102.01	$	79.06
Total cash utilized 2	$	227	$	—	$	501	$	352

1 On June 25, 2014, we repurchased 0.5 million shares of the Company's common stock from the personal holdings of Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company, at a discount of 0.35% from the June 24, 2014 New York Stock Exchange closing price. We repurchased these shares with cash for $41 million at an average price of $82.66 per share. See Note 13 — Related Party Transactions for further information.

2 In December of 2013, 0.1 million shares were repurchased for approximately $10 million, which settled in January of 2014. Cash used for financing activities only reflects those shares which settled during the nine months ended September 30, 2014 resulting in $362 million of cash used to repurchase shares.

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 September 30, 2015, approximately 40.6 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.

Redeemable Noncontrolling Interests

The agreement with the minority partners of our S&P Dow Jones Indices LLC established in June of 2012 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, after December 31, 2017, CME Group, Inc. ("CME Group") and CME Group Index Services LLC ("CGIS") will have 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, considering a combination of an income and market valuation approach. Our income and market valuation approaches may incorporate Level 3 fair value measures for instances when observable inputs are not available, including assumptions related to expected future net cash flows, long-term growth rates, the timing and nature of tax attributes, and the redemption features. Any adjustments to the redemption value will impact retained income.

Noncontrolling interests that do not contain such redemption features are presented in equity.

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Changes to redeemable noncontrolling interest during the nine months ended September 30, 2015 were as follows:

(in millions)
Balance as of December 31, 2014	$	810
Net income attributable to noncontrolling interest	76
Distributions payable to noncontrolling interest	(69		)
Redemption value adjustment	(7		)
Balance as of September 30, 2015	$	810

Accumulated Other Comprehensive Loss

The following table summarizes the changes in the components of accumulated other comprehensive loss for the nine months ended September 30, 2015:

(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, 2014	$	(83	)	$	(431	)		$	—		$	(514	)
Other comprehensive income before reclassifications	(78		)	31				(1		)	(48		)
Reclassifications from accumulated other comprehensive loss to net earnings	—			9			1	—			9
Net other comprehensive income	(78		)	40				(1		)	(39		)
Balance as of September 30, 2015	$	(161	)	$	(391	)		$	(1	)	$	(553	)

¹  See Note 5 —Employee Benefits for additional details of items reclassed from accumulated other comprehensive loss to net earnings.

The net actuarial loss and prior service cost related to pension and other postretirement benefit plans included in other comprehensive income is net of a tax provision of $5 million for the nine months ended September 30, 2015.

8. 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.

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The calculation for basic and diluted EPS for the periods ended September 30 is as follows:

(in millions, except per share amounts)	Three Months				Nine Months
	2015		2014		2015		2014
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	252	$	188	$	909	$	716
Income from discontinued operations	—		2		—		15
Net income	$	252	$	190	$	909	$	731
Basic weighted-average number of common shares outstanding	271.3		270.9		272.6		271.4
Effect of stock options and other dilutive securities	3.1		4.5		2.8		4.8
Diluted weighted-average number of common shares outstanding	274.4		275.4		275.4		276.2
Earnings per share attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations:
Basic	$	0.93	$	0.69	$	3.33	$	2.64
Diluted	$	0.92	$	0.68	$	3.30	$	2.59
Income from discontinued operations:
Basic	$	—	$	0.01	$	—	$	0.05
Diluted	$	—	$	0.01	$	—	$	0.05
Net income:
Basic	$	0.93	$	0.70	$	3.33	$	2.69
Diluted	$	0.92	$	0.69	$	3.30	$	2.64

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 because the effect would have been antidilutive. Additionally, restricted performance shares are excluded because the necessary vesting conditions had not been met. For the three and nine months ended September 30, 2015, there were no stock options excluded, and for the three and nine months ended September 30, 2014, there were a minimal amount of stock options excluded. Restricted performance shares outstanding of 0.9 million and 1.4 million as of September 30, 2015 and 2014, respectively, were excluded.

9. Restructuring

During 2015 and 2014, we continued to evaluate our cost structure and further identified cost savings associated with streamlining our management structure and additionally, in 2014, our decision to exit non-strategic businesses. Our 2015 and 2014 restructuring plans consisted of a company-wide workforce reduction of approximately 260 and 590 positions, respectively, and are further detailed below. The charges for each 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.

As part of the sale of McGraw Hill Construction, which has historically been part of our C&C segment, to Symphony Technology Group, described further in Note 2 —Acquisitions and Divestitures, we have retained McGraw Hill Construction's restructuring liabilities. Therefore, the remaining reserves described below for the 2014 restructuring plan include McGraw Hill Construction's restructuring liability; however, the initial charge associated with the reserve has been bifurcated between continuing and discontinued operations.

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The initial restructuring charge recorded and the ending reserve balance as of September 30, 2015 by segment is as follows:

	2015 Restructuring Plan				2014 Restructuring Plan
(in millions)	Initial Charge Recorded		Ending Reserve Balance		Initial Charge Recorded		Ending Reserve Balance
S&P Ratings	$	11	$	10	$	45	$	15
S&P Capital IQ and SNL	13		9		9		2
C&C 1	3		2		16		4
Corporate	3		3		16		9
Total	$	30	$	24	$	86	$	30

¹  The 2014 restructuring plan included an initial charge of $3 million and an ending reserve balance of less than a $1 million for McGraw Hill Construction.

We recorded a pre-tax restructuring charge of $30 million for the 2015 restructuring plan during the nine months ended September 30, 2015 and have reduced the reserve for the 2015 restructuring plan by $6 million.

The ending reserve balance for the 2014 restructuring plan was $78 million as of December 31, 2014. For the nine months ended September 30, 2015, we have reduced the reserve for the 2014 restructuring plan by $48 million.

10. Segment and Related Information

We have four reportable segments: S&P Ratings, S&P Capital IQ and SNL, S&P DJ Indices and C&C. 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 unallocated expense or interest expense as these are costs that do not affect the operating results of our segments.

A summary of operating results by segment for the periods ended September 30 is as follows:

Three Months	2015						2014
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings 1	$	587		$	194		$	604		$	183
S&P Capital IQ and SNL	356			53			311			64
S&P DJ Indices	156			106			143			86
C&C	248			93			227			71
Intersegment elimination 2	(23		)	—			(22		)	—
Total operating segments	1,324			446			1,263			404
Unallocated expense 3	—			(36		)	—			(38		)
Total	$	1,324		$	410		$	1,263		$	366

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Nine Months	2015						2014
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings 1	$	1,851		$	846		$	1,837		$	730
S&P Capital IQ and SNL	1,000			178			919			172
S&P DJ Indices	446			297			412			260
C&C	707			265			657			217
Intersegment elimination 2	(66		)	—			(64		)	—
Total operating segments	3,938			1,586			3,761			1,379
Unallocated expense 3	—			(93		)	—			(118		)
Total	$	3,938		$	1,493		$	3,761		$	1,261

¹  Operating profit for the three and nine months ended September 30, 2015 includes legal settlement charges partially offset by a benefit related to legal settlement insurance recoveries of $86 million and $40 million, respectively. Operating profit for the three and nine months ended September 30, 2014 includes legal settlement charges of $60 million.

²  Revenue for S&P Ratings and expenses for S&P Capital IQ and SNL include an intersegment royalty charged to S&P Capital IQ and SNL for the rights to use and distribute content and data developed by S&P Ratings.

³  The nine months ended September 30, 2015 include a gain of $11 million related to the sale of our interest in a legacy McGraw Hill Construction investment. See Note 2 —Acquisitions and Divestitures for additional information.

See Note 2 —Acquisitions and Divestitures and Note 9 —Restructuring for additional actions that impacted the segment operating results.

11. Commitments and Contingencies

Legal & Regulatory Matters

In the normal course of business both in the United States and abroad, the Company, its subsidiary Standard & Poor’s Financial Services LLC (“S&P LLC”) and some of its other subsidiaries are defendants in numerous 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 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. 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.

The Company believes that it has meritorious defenses to the pending claims and potential claims in the matters described below and is diligently pursuing these defenses, and in some cases working to reach an acceptable negotiated resolution. However, in view of the uncertainty inherent in litigation and government and regulatory enforcement matters, we cannot predict the eventual outcome of these matters or the timing of their resolution, or in most cases reasonably estimate what the eventual judgments, damages, fines, penalties or impact of activity restrictions may be. As a result, we cannot provide assurance that the outcome of the matters described below 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 and competitive position, which may require that we record liabilities in the consolidated financial statements in future periods.

S&P Ratings

Financial Crisis Litigation

The Company and its subsidiaries continue to defend civil cases brought by private and public plaintiffs arising out of ratings activities prior to and during the global financial crisis of 2008-2009. Discovery in these cases is ongoing. We can provide no assurance that we will not be obligated to pay significant amounts in order to resolve these matters on terms deemed acceptable. At this time, however, we are unable to reasonably estimate the range of such additional amounts, if any.

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U.S. Securities and Exchange Commission

As a nationally recognized statistical rating organization registered with the SEC under Section 15E of the Securities Exchange Act of 1934, S&P 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 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 Ratings for one or more compliance deficiencies.

Parmalat Litigation

In September and October of 2005, writs of summons were served on The McGraw-Hill Companies, SRL and The McGraw-Hill Companies, SA in an action brought in the Tribunal of Milan, Italy by the Extraordinary Commissioner of Parmalat Finanziaria S.p.A. and Parmalat S.p.A. (collectively, “Parmalat”), claiming damages of €4.1 billion, representing the value of bonds issued by Parmalat which were rated investment grade by S&P Ratings, plus damages for S&P Ratings’ alleged complicity in aggravating Parmalat’s financial difficulties, among other claims. In June of 2011, the Court dismissed Parmalat’s main damages claim based on the value of the bonds, and ordered the defendants to pay Parmalat approximately €0.8 million, representing ratings fees paid by Parmalat, plus interest and expenses. In September of 2012, Parmalat appealed the judgment and, in November of 2012, requested payment of the judgment in the amount of €1.1 million, which was paid in December of 2012. In July of 2014, the Court of Appeals of Milan issued an order reopening the proceedings to allow the parties to submit additional pleadings. A hearing was held on February 25, 2015. On July 29, 2015, the Company reached a settlement with Parmalat to resolve the claims in this action. Under the settlement, the Company paid Parmalat €14.5 million.

Trani Prosecutorial Proceeding

The prosecutor in the Italian city of Trani is seeking criminal indictments against several current and former S&P Ratings managers and ratings analysts for alleged market manipulation, and against Standard & Poor’s Credit Market Services Europe under Italy’s vicarious liability statute, for having allegedly failed to properly supervise the ratings analysts and prevent them from committing market manipulation. The prosecutor’s theories are based on various actions by S&P Ratings taken with respect to Italian sovereign debt between May of 2011 and January of 2012. In October of 2014, the court granted the prosecutor’s request and issued indictments against the current and former S&P Ratings managers and ratings analysts, as well as Standard & Poor’s Credit Market Services Europe. The trial commenced with a hearing on February 4, 2015 and is ongoing. Apart from criminal penalties that might be imposed following a conviction, such conviction could also lead to civil damages claims and other sanctions against Standard & Poor's Credit Market Services Europe or the Company. Such claims and sanctions cannot be quantified at this stage.

Shareholder Derivative Action

On August 3, 2015, two purported shareholders commenced a putative derivative action on behalf of the Company in New York State Supreme Court titled Retirement Plan for General Employees of the City of North Miami Beach and Robin Stein v. Harold McGraw III, et al. The complaint asserts claims for, inter alia, breach of fiduciary duty, waste of corporate assets, and mismanagement against the board of directors, certain former directors of the Company, and three former S&P Ratings employees. Plaintiffs seek recovery from the defendants based on allegations that S&P Ratings’ credit ratings practices for certain residential mortgage-backed securities and collateralized debt obligations misrepresented the credit risks of those securities, allegedly resulting in losses to the Company. The Company and the individual defendants filed motions to dismiss the complaint on October 9, 2015.

The City of Swan

Australian government municipal councils filed suit against the Company and S&P International LLC in a representative action in April 2013 in connection with alleged investment losses in eight synthetic collateralized debt obligations (CDOs) rated by S&P Ratings. These same CDOs were at issue in an earlier lawsuit brought by the plaintiffs against its investment advisor, Lehman Brothers Australia (LBA), in which the plaintiffs secured a judgment against LBA, which is now in liquidation.  The plaintiffs claim total losses of AUD$327 million from these investments and are seeking recovery from both LBA and the Company.  The trial in the matter has been re-scheduled from October 2015 to August 2016. The Company has offered to settle this matter, although the plaintiffs have not accepted our offer. We can provide no assurance that the Company will not incur additional amounts in excess of amounts accrued to settle this matter on terms deemed acceptable. At this point, however, we are unable to reasonably estimate the range of such additional amounts, if any.

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Commodities & Commercial Markets

Platts

In May of 2013, representatives from the European Commission (DG Competition, the EC’s antitrust office) commenced an unannounced inspection of Platts’ London offices in conjunction with potential anticompetitive conduct (in particular, in the crude oil, refined oil products and biofuels markets) relating to Platts’ Market On Close price assessment process. No allegations have been made against Platts at this time. There have also been several civil actions filed in the United States relating to potential anticompetitive behavior by market participants relating to Platts’ price assessment process, none of which have named Platts as a defendant.

McGraw Hill Construction

In October of 2009, an action was filed in the U.S. District Court for the Southern District of New York in which Reed Construction Data asserted a number of claims under various state and federal laws against the Company relating to alleged misappropriation and unfair competition by McGraw Hill Construction and seeking an unspecified amount of damages. In September of 2010, the Court granted the Company’s motion to dismiss some of the claims. In September of 2014, the Court granted summary judgment to the Company on all of Reed’s remaining claims with the exception of the unfair competition claim. In October of 2014, the parties submitted a joint stipulation to the Court agreeing to dismiss both Reed’s unfair competition claim and the Company’s counterclaims without prejudice to reinstatement in the event of a successful appeal of Reed’s dismissed claims.

12. Recent Accounting Standards

In September of 2015, the Financial Accounting Standards Board ("FASB") issued guidance intended to simplify the accounting for measurement-period adjustments made to provisional amounts recognized in a business combination. The guidance eliminates the requirement to retrospectively account for those adjustments. This guidance is effective for reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In April of 2015, the FASB issued new accounting guidance intended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with the presentation for debt discounts. This guidance is effective for reporting periods beginning after December 15, 2015 and must be applied on a retrospective basis with early adoption permitted. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In February of 2015, the FASB issued guidance that requires management to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. This guidance is effective for reporting periods beginning after December 15, 2015; however, early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In January of 2015, the FASB issued guidance that eliminates the concept of reporting extraordinary items, but retains current presentation and disclosure requirements for an event or transaction that is of an unusual nature or of a type that indicates infrequency of occurrence. Transactions that meet both criteria would now also follow such presentation and disclosure requirements. This guidance is effective for reporting periods beginning after December 15, 2015; however, early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In August of 2014, the FASB issued guidance that requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. This guidance is effective for reporting periods beginning after December 15, 2016; however, early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In May of 2014, the FASB and the International Accounting Standards Board (“IASB”) issued jointly a converged standard on the recognition of revenue from contracts with customers which is intended to improve the financial reporting of revenue and comparability of the top line in financial statements globally. The core principle of the new standard is for the recognition of revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced revenue disclosures, provide guidance for transactions that were not previously addressed comprehensively and improve guidance for multiple-element arrangements. In August of 2015, the FASB issued guidance deferring the effective date of the new revenue standard by one year.

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The new guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements.

In April of 2014, the FASB issued final guidance that raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is intended to reduce the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results. In addition, the guidance permits companies to have continuing cash flows and significant continuing involvement with the disposed component. The amendments were effective on January 1, 2015, and the adoption of the guidance did not have a significant impact on our consolidated financial statements.

13. Related Party Transactions

On July 31, 2014, we completed the sale of the Company's aircraft to Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company ("Mr. McGraw") for a purchase price of $20 million, which is modestly higher than the independent appraisal obtained. This transaction was approved by the Nominating and Corporate Governance Committee of the Company's Board of Directors after consultation with members of the Financial Policy Committee. During the second quarter of 2014, we recorded a non-cash impairment charge of $6 million within other (income) loss in our consolidated statement of income as a result of the pending sale.

On June 25, 2014, we repurchased 0.5 million shares of the Company's common stock from the personal holdings of Mr. McGraw. The shares were purchased at a discount of 0.35% from the June 24, 2014 New York Stock Exchange closing price pursuant to a private transaction with Mr. McGraw. We repurchased these shares with cash for $41 million at an average price of $82.66 per share. This transaction was approved by the Nominating & Corporate Governance Committee of the Company's Board of Directors after consultation with members of the Financial Policy Committee.

In June of 2012, we entered into a new license agreement (the "License Agreement") with the holder of S&P Dow Jones Indices LLC noncontrolling interest, CME Group, which replaced the 2005 license agreement between S&P DJ 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 and nine months ended September 30, 2015, S&P Dow Jones Indices LLC earned $19 million and $47 million, respectively, of revenue under the terms of the License Agreement. 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.

14. Condensed Consolidating Financial Statements

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 due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026.

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 McGraw Hill Financial, Inc., Standard & Poor's Financial Services LLC, and the Non-Guarantor Subsidiaries of McGraw Hill Financial, Inc. and Standard & Poor's Financial Services LLC, and the eliminations necessary to arrive at the information for the Company on a consolidated basis.

22

	Statement of Income
	Three Months Ended September 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	$	165		$	523	$	665		$	(29	)	$	1,324
Expenses:
Operating-related expenses	20			99		317			(29		)	407
Selling and general expenses	206			69		195			—			470
Depreciation	9			4		7			—			20
Amortization of intangibles	—			—		17			—			17
Total expenses	235			172		536			(29		)	914
Operating (loss) profit	(70		)	351		129			—			410
Interest expense (income), net	32			—		(2		)	—			30
Non-operating intercompany transactions	51			48		(99		)	—			—
(Loss) income from continuing operations before taxes on income	(153		)	303		230			—			380
(Benefit) provision for taxes on income	(74		)	100		73			—			99
Equity in net income of subsidiaries	1,180			206		—			(1,386		)	—
Net income	$	1,101		$	409	$	157		$	(1,386	)	$	281
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(29		)	(29		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,101		$	409	$	157		$	(1,415	)	$	252
Comprehensive income	$	1,095		$	408	$	123		$	(1,386	)	$	240

23

	Statement of Income
	Nine Months Ended September 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	$	481		$	1,640	$	1,902		$	(85	)	$	3,938
Expenses:
Operating-related expenses	64			396		843			(85		)	1,218
Selling and general expenses	282			243		609			—			1,134
Depreciation	29			14		21			—			64
Amortization of intangibles	—			—		40			—			40
Total expenses	375			653		1,513			(85		)	2,456
Other income	—			—		(11		)	—			(11		)
Operating profit	106			987		400			—			1,493
Interest expense (income), net	69			—		(7		)	—			62
Non-operating intercompany transactions	180			139		(319		)	—			—
(Loss) income from continuing operations before taxes on income	(143		)	848		726			—			1,431
(Benefit) provision for taxes on income	(57		)	291		205			—			439
Equity in net income of subsidiaries	1,180			205		—			(1,385		)	—
Net income	$	1,094		$	762	$	521		$	(1,385	)	$	992
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(83		)	(83		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,094		$	762	$	521		$	(1,468	)	$	909
Comprehensive income	$	1,102		$	761	$	480		$	(1,390	)	$	953

24

	Statement of Income
	Three Months Ended September 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	$	149		$	507	$	635		$	(28	)	$	1,263
Expenses:
Operating-related expenses	19			142		269			(28		)	402
Selling and general expenses	147			150		165			—			462
Depreciation	10			4		7			—			21
Amortization of intangibles	1			—		11			—			12
Total expenses	177			296		452			(28		)	897
Operating (loss) profit	(28		)	211		183			—			366
Interest expense (income), net	15			—		(3		)	—			12
Non-operating intercompany transactions	56			13		(69		)	—			—
(Loss) income from continuing operations before taxes on income	(99		)	198		255			—			354
(Benefit) provision for taxes on income	(5		)	53		91			—			139
Equity in net income of subsidiaries	286			63		—			(349		)	—
Income from continuing operations	192			208		164			(349		)	215
Income from discontinued operations, net of tax	2			—		—			—			2
Net income	$	194		$	208	$	164		$	(349	)	$	217
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(27		)	(27		)
Net income attributable to McGraw Hill Financial, Inc.	$	194		$	208	$	164		$	(376	)	$	190
Comprehensive income	$	186		$	208	$	109		$	(353	)	$	150

25

	Statement of Income
	Nine Months Ended September 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	$	443		$	1,535	$	1,869		$	(86	)	$	3,761
Expenses:
Operating-related expenses	59			450		782			(86		)	1,205
Selling and general expenses	241			394		551			—			1,186
Depreciation	30			13		21			—			64
Amortization of intangibles	2			—		34			—			36
Total expenses	332			857		1,388			(86		)	2,491
Other loss	3			—		6			—			9
Operating profit	108			678		475			—			1,261
Interest expense (income), net	46			—		(6		)	—			40
Non-operating intercompany transactions	130			27		(157		)	—			—
(Loss) income from continuing operations before taxes on income	(68		)	651		638			—			1,221
Provision for taxes on income	8			225		195			—			428
Equity in net income of subsidiaries	786			186		—			(972		)	—
Income from continuing operations	710			612		443			(972		)	793
Income from discontinued operations, net of tax	15			—		—			—			15
Net income	$	725		$	612	$	443		$	(972	)	$	808
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(77		)	(77		)
Net income attributable to McGraw Hill Financial, Inc.	$	725		$	612	$	443		$	(1,049	)	$	731
Comprehensive income	$	701		$	588	$	415		$	(981	)	$	723

26

	Balance Sheet
	September 30, 2015
(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 cash equivalents	$	161		$	1		$	1,279		$	—		$	1,441
Accounts receivable, net of allowance for doubtful accounts	109			282			595			—			986
Intercompany receivable	313			1,480			1,124			(2,917		)	—
Deferred income taxes	72			172			(41		)	—			203
Prepaid and other current assets	93			4			109			—			206
Total current assets	748			1,939			3,066			(2,917		)	2,836
Property and equipment, net of accumulated depreciation	124			3			110			—			237
Goodwill	15			41			2,903			9			2,968
Other intangible assets, net	—			—			1,887			(6		)	1,881
Asset for pension benefits	—			—			61			—			61
Investments in subsidiaries	4,547			671			7,280			(12,498		)	—
Intercompany loans receivable	17			361			1,817			(2,195		)	—
Other non-current assets	69			19			92			—			180
Total assets	$	5,520		$	3,034		$	17,216		$	(17,607	)	$	8,163
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	69		$	42		$	100		$	—		$	211
Intercompany Payable	1,671			593			568			(2,832		)	—
Accrued compensation and contributions to retirement plans	108			73			139			—			320
Income taxes currently payable	16			—			43			—			59
Unearned revenue	269			565			619			—			1,453
Accrued legal and regulatory settlements	—			104			—			—			104
Other current liabilities	267			(134		)	225			—			358
Total current liabilities	2,400			1,243			1,694			(2,832		)	2,505
Long-term debt	3,489			—			—			—			3,489
Intercompany loans payable	108			(3		)	2,178			(2,283		)	—
Pension and postretirement benefits	218			—			60			—			278
Deferred income taxes	(224		)	51			263			—			90
Other non-current liabilities	217			12			59			(1		)	287
Total liabilities	6,208			1,303			4,254			(5,116		)	6,649
Redeemable noncontrolling interest	—			—			—			810			810
Equity:
Common stock	412			—			2,321			(2,321		)	412
Additional paid-in capital	(197		)	1,171			10,156			(10,689		)	441
Retained income	6,641			560			784			(393		)	7,592
Accumulated other comprehensive loss	(310		)	—			(279		)	36			(553		)
Less: common stock in treasury	(7,234		)	—			(20		)	20			(7,234		)
Total equity - controlling interests	(688		)	1,731			12,962			(13,347		)	658
Total equity - noncontrolling interests	—			—			—			46			46
Total equity	(688		)	1,731			12,962			(13,301		)	704
Total liabilities and equity	$	5,520		$	3,034		$	17,216		$	(17,607	)	$	8,163

27

	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 cash 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

28

	Statement of Cash Flows
	Nine Months Ended September 30, 2015
(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	$	1,094		$	762		$	521		$	(1,385	)	$	992
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
Depreciation	29			14			21			—			64
Amortization of intangibles	—			—			40			—			40
Provision for losses on accounts receivable	—			(4		)	7			—			3
Deferred income taxes	(139		)	161			144			—			166
Stock-based compensation	16			16			23			—			55
Other	107			22			10			—			139
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	10			16			(70		)	—			(44		)
Prepaid and current assets	(35		)	22			7			—			(6		)
Accounts payable and accrued expenses	(100		)	(76		)	(10		)	—			(186		)
Unearned revenue	10			(20		)	28			—			18
Accrued legal and regulatory settlements	—			(1,624		)	—			—			(1,624		)
Other current liabilities	(19		)	(12		)	(22		)	—			(53		)
Net change in prepaid/accrued income taxes	166			—			(26		)	—			140
Net change in other assets and liabilities	91			4			(155		)	—			(60		)
Cash provided by (used for) operating activities from continuing operations	1,230			(719		)	518			(1,385		)	(356		)
Investing Activities:
Capital expenditures	(38		)	(7		)	(29		)	—			(74		)
Acquisitions, net of cash acquired	(2,241		)	—			(152		)	—			(2,393		)
Proceeds from dispositions	—			—			14			—			14
Changes in short-term investments	—			—			(3		)	—			(3		)
Cash used for investing activities from continuing operations	(2,279		)	(7		)	(170		)	—			(2,456		)
Financing Activities:
Proceeds from issuance of senior notes, net	2,674			—			—			—			2,674
Dividends paid to shareholders	(274		)	—			—			—			(274		)
Dividends and other payments paid to noncontrolling interests	—			—			(67		)	—			(67		)
Contingent consideration payment	(5		)	—			—			—			(5		)
Purchase of CRISIL shares	—			—			(16		)	—			(16		)
Repurchase of treasury shares	(501		)	—			—			—			(501		)
Exercise of stock options	76			—			1			—			77
Excess tax benefits from share-based payments	39			—			—			—			39
Intercompany financing activities	(2,192		)	727			80			1,385			—
Cash (used for) provided by financing activities from continuing operations	(183		)	727			(2		)	1,385			1,927
Effect of exchange rate changes on cash from continuing operations	(9		)	—			(33		)	—			(42		)
Cash (used for) provided by continuing operations	(1,241		)	1			313			—			(927		)
Discontinued Operations:
Cash used for operating activities	—			—			(129		)	—			(129		)
Cash used for discontinued operations	—			—			(129		)	—			(129		)
Net change in cash and cash equivalents	(1,241		)	1			184			—			(1,056		)
Cash and cash equivalents at beginning of period	1,402			—			1,095			—			2,497
Cash and cash equivalents at end of period	$	161		$	1		$	1,279		$	—		$	1,441

29

	Statement of Cash Flows
	Nine Months Ended September 30, 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 income	$	725		$	612		$	443		$	(972	)	$	808
Less: discontinued operations, net	15			—			—			—			15
Income from continuing operations	710			612			443			(972		)	793
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
Depreciation	30			13			21			—			64
Amortization of intangibles	2			—			34			—			36
Provision for losses on accounts receivable	—			(3		)	8			—			5
Deferred income taxes	(18		)	—			(15		)	—			(33		)
Stock-based compensation	23			23			26			—			72
Other	—			85			21			—			106
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	2			67			(57		)	—			12
Prepaid and current assets	(30		)	4			18			—			(8		)
Accounts payable and accrued expenses	(153		)	(141		)	83			—			(211		)
Unearned revenue	(10		)	(14		)	31			—			7
Other current liabilities	22			(67		)	(20		)	—			(65		)
Net change in prepaid/accrued income taxes	99			3			(9		)	—			93
Net change in other assets and liabilities	14			2			(67		)	—			(51		)
Cash provided by operating activities from continuing operations	691			584			517			(972		)	820
Investing Activities:
Capital expenditures	(12		)	(11		)	(29		)	—			(52		)
Acquisitions, net of cash acquired	—			—			(65		)	—			(65		)
Proceeds from dispositions	44			—			39			—			83
Changes in short-term investments	—			—			(1		)	—			(1		)
Cash provided by (used for) investing activities from continuing operations	32			(11		)	(56		)	—			(35		)
Financing Activities:
Dividends paid to shareholders	(245		)	—			—			—			(245		)
Dividends and other payments paid to noncontrolling interests	—			—			(31		)	—			(31		)
Contingent consideration payment	—			—			(11		)	—			(11		)
Repurchase of treasury shares	(362		)	—			—			—			(362		)
Exercise of stock options	156			—			3			—			159
Excess tax benefits from share-based payments	89			—			—			—			89
Intercompany financing activities	(108		)	(573		)	(291		)	972			—
Cash used for financing activities from continuing operations	(470		)	(573		)	(330		)	972			(401		)
Effect of exchange rate changes on cash from continuing operations	(8		)	—			(16		)	—			(24		)
Cash provided by continuing operations	245			—			115			—			360
Discontinued Operations:
Cash provided by operating activities	16			—			—			—			16
Cash provided by discontinued operations	16			—			—			—			16
Net change in cash and cash equivalents	261			—			115			—			376
Cash and cash equivalents at beginning of period	685			—			857			—			1,542
Cash and cash equivalents at end of period	$	946		$	—		$	972		$	—		$	1,918

15. Subsequent Event

We are in the preliminary stages of evaluating a range of strategic options for J.D. Power included in our Commodities & Commercial segment that best positions J.D. Power for future growth.

30

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations (Unaudited)

The following Management's Discussion and Analysis (“MD&A”) provides a narrative of the results of operations and financial condition of McGraw Hill Financial, Inc. (together with its consolidated subsidiaries, "McGraw Hill Financial," the “Company,” “we,” “us” or “our”) for the three and nine months ended September 30, 2015. The MD&A should be read in conjunction with the consolidated financial statements, accompanying notes and MD&A included in our Form 10-K for the year ended December 31, 2014 (our “Form 10-K”), which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The MD&A includes the following sections:

• Overview

• Results of Operations — Comparing the Three and Nine Months EndedSeptember 30, 2015 and 2014

• Liquidity and Capital Resources

• Reconciliation of Non-GAAP Financial Information

• Critical Accounting Estimates

• Recently Adopted Accounting Standards

• Forward-Looking Statements

OVERVIEW

We are a leading ratings, benchmarks, analytics, data and research provider serving the global capital, commodities and commercial markets. The capital markets include asset managers, investment banks, commercial banks, exchanges and issuers; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within automotive and marketing / research information services.

Our operations consist of four reportable segments: Standard & Poor’s Ratings Services (“S&P Ratings”), S&P Capital IQ and SNL, S&P Dow Jones Indices ("S&P DJ Indices") and Commodities & Commercial Markets (“C&C”).

• S&P Ratings is an independent provider of credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks.

• S&P Capital IQ and SNL is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services.

• S&P DJ Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.

• C&C consists of business-to-business companies specializing in commercial and commodities markets that deliver their customers access to high-value information, data, analytic services and pricing and quality benchmarks.

Key results for the periods ended September 30 are as follows:

(in millions, except per share amounts)	Three Months							Nine Months
	2015			2014			% Change 1	2015			2014			% Change 1
Revenue	$	1,324		$	1,263		5%	$	3,938		$	3,761		5%
Operating profit	$	410		$	366		12%	$	1,493		$	1,261		18%
Operating margin %	31		%	29		%		38		%	34		%
Diluted earnings per share from continuing operations	$	0.92		$	0.68		35%	$	3.30		$	2.59		27%

¹ % changes in the tables throughout the MD&A are calculated off of the actual number, not the rounded number presented.

Three Months

Revenue increased 5% driven by increases at S&P Capital IQ and SNL, C&C and S&P DJ Indices, partially offset by a decrease at S&P Ratings. Excluding revenue from acquisitions of 3 percentage points, revenue increased 2%. Revenue growth at S&P Capital IQ and SNL was favorably impacted by growth of the legacy S&P Capital IQ products driven by increases in average contract values for each product and the acquisition of SNL Financial ("SNL"). The revenue increase at C&C was primarily driven by continued demand for Platts’ proprietary content as annualized contract values increased, and the acquisition of Used Car Guide

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at J.D. Power in July of 2015. Revenue growth at S&P DJ Indices is primarily due to higher volumes for exchange-traded derivatives and higher average levels of assets under management for ETFs and mutual funds. These revenue increases were partially offset by a decrease at S&P Ratings driven by reduced market issuance internationally and lower bank loan ratings revenue, and the unfavorable impact of foreign exchange rates by 2 percentage points.

Operating profit increased 12% in the quarter driven by revenue growth at S&P Capital IQ and SNL, C&C and S&P DJ Indices and cost containment efforts at S&P Ratings, offset by the impact of SNL operating costs. Excluding the net unfavorable impact of legal settlement charges and insurance recoveries of 5 percentage points and impact of acquisition-related costs related to the acquisition of SNL of 7 percentage points, partially offset by the favorable impact of higher restructuring charges recorded in the third quarter of 2014 of 12 percentage points and corporate development activities recorded in the third quarter of 2014 of 1 percentage point, operating profit increased 11%.

Nine Months

Revenue increased 5% driven by increases at all of our segments. Revenue growth at S&P Capital IQ and SNL was due to growth of the legacy S&P Capital IQ products driven by increases in average contract values for each product and the acquisition of SNL. The revenue increase at C&C was primarily driven by continued demand for Platts’ proprietary content as annualized contract values increased and the acquisition of Used Car Guide at J.D. Power in July of 2015. Revenue growth at S&P DJ Indices primarily due to higher volumes for exchange-traded derivatives and higher average levels of assets under management for ETFs and mutual funds. The increase at S&P Ratings was driven by growth in corporate bond ratings revenue in the U.S. and increases in U.S. Public Finance issuance, partially offset by the unfavorable impact of foreign exchange rates and a decline in bank loan ratings revenue.

Operating profit increased 18% in the first nine months of 2015 driven by revenue growth at S&P Capital IQ and SNL, C&C, S&P DJ Indices and S&P Ratings, and cost containment efforts at S&P Ratings, and a net reduction in legal settlement-related expenses. Excluding the favorable impact of higher restructuring charges recorded in the third quarter of 2014 of 2 percentage points, the net impact of legal settlement charges and insurance recoveries of 2 percentage points, and the gain on the sale of our interest in a legacy McGraw Hill Construction investment of 1 percentage point, partially offset by the unfavorable impact of acquisition-related costs related to the acquisition of SNL of 2 percentage points, operating profit increased 15%.

Our Strategy

We strive to be the leading provider of transparent and independent benchmarks & ratings, analytics, data and research in the global capital, commodities and commercial markets. We seek to promote sustainable growth in the global capital, commodities and commercial markets by providing customers with essential intelligence and superior service. We intend to provide essential intelligence through benchmarks and ratings, analytics, data, and research that enables mission-critical decisions in investment management, investment banking, CBIS (commercial banking, insurance and specialty), and corporates.

We are aligning our efforts against two key strategic priorities: creating growth and driving performance.

Creating Growth

• We will strive to drive global growth by focusing on customers and innovation.

Driving Performance

• We will strive to boost operational excellence, productivity, risk management, and compliance; and to attract and develop the finest talent.

There can be no assurance that we will achieve success in implementing any one or more of these strategies as a variety of factors could unfavorably impact operating results, including prolonged difficulties in the global credit markets and a change in the regulatory environment affecting our businesses.

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RESULTS OF OPERATIONS — COMPARING THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

Consolidated Review

(in millions)	Three Months							Nine Months
	2015			2014			% Change	2015			2014			% Change
Revenue	$	1,324		$	1,263		5%	$	3,938		$	3,761		5%
Total Expenses:
Operating-related expenses	407			402			1%	1,218			1,205			1%
Selling and general expenses	470			462			2%	1,134			1,186			(4)%
Depreciation and amortization	37			33			13%	104			100			4%
Total expenses	914			897			2%	2,456			2,491			(1)%
Other (income) loss	—			—			N/M	(11		)	9			N/M
Operating profit	410			366			12%	1,493			1,261			18%
Interest expense, net	30			12			N/M	62			40			55%
Provision for taxes on income	99			139			(29)%	439			428			2%
Income from continuing operations	281			215			30%	992			793			25%
Discontinued operations, net	—			2			N/M	—			15			N/M
Less: net income from continuing operations attributable to noncontrolling interests	(29		)	(27		)	11%	(83		)	(77		)	9%
Net income attributable to McGraw Hill Financial, Inc.	$	252		$	190		33%	$	909		$	731		24%

N/M - not meaningful

Revenue

The following table provides consolidated revenue information for the periods ended September 30:

(in millions)	Three Months					Nine Months
	2015		2014		% Change	2015		2014		% Change
Subscription / Non-transaction revenue	$	839	$	770	9%	$	2,384	$	2,273	5%
Non-subscription / Transaction revenue	$	485	$	493	(2)%	$	1,554	$	1,488	4%
Domestic revenue	$	810	$	724	12%	$	2,385	$	2,170	10%
International revenue	$	515	$	539	(5)%	$	1,553	$	1,591	(2)%

Three Months

Subscription / non-transaction revenue increased 9% primarily from growth at S&P Capital IQ and SNL due to an increase in the average contract values driven by increases in existing accounts as well as continued demand for Platts’ proprietary content. Non-subscription / transaction revenue decreased 2% primarily due to a decline at S&P Ratings driven by reduced market issuance internationally and a decrease in bank loan ratings revenue, partially offset by higher assets under management for ETFs and mutual funds and higher volumes for exchange-traded derivatives at S&P DJ Indices. See “Segment Review” below for further information.

The unfavorable impact of foreign exchange rates reduced revenue by 2 percentage points. This impact refers to constant currency comparisons estimated by recalculating current year results of foreign operations using the average exchange rate from the prior year. The unfavorable impact of foreign exchange rates on revenue primarily related to S&P Ratings and was driven by the weakening of the Euro to the U.S. dollar.

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Nine Months

Subscription / non-transaction revenue increased 5% primarily from growth at S&P Capital IQ and SNL due to an increase in the average contract values as well as continued demand for Platts’ proprietary content. Non-subscription / transaction revenue increased 4% primarily due to growth at S&P Ratings due to increases in U.S. corporate bond ratings revenue and U.S. public finance revenues, partially offset by a decline in the bank loan ratings revenue and growth at S&P DJ Indices due to higher assets under management for ETFs and mutual funds and higher volumes for exchange-traded derivatives. See “Segment Review” below for further information.

The unfavorable impact of foreign exchange rates reduced revenue by 2 percentage points.

Total Expenses

The following tables provide an analysis by segment of our operating-related expenses and selling and general expenses for the periods ended September 30:

Three Months

(in millions)	2015					2014					% Change
	Operating- related expenses			Selling and general expenses		Operating- related expenses			Selling and general expenses		Operating- related expenses	Selling and general expenses
S&P Ratings	$	174		$	209	$	188		$	223	(7)%	(6)%
S&P Capital IQ and SNL	150			138		136			99		10%	40%
S&P DJ Indices	26			22		25			29		3%	(27)%
C&C	79			68		74			75		7%	(9)%
Intersegment eliminations	(22		)	—		(21		)	—		(6)%	N/M
Total segments	407			437		402			426		1%	2%
Unallocated expense	—			33		—			36		N/M	(10)%
Total	$	407		$	470	$	402		$	462	1%	2%

N/M - not meaningful

Operating-Related Expenses

Operating-related expenses increased 1%. Increases at S&P Capital IQ and SNL primarily driven by the acquisition of SNL in September of 2015 and increases at C&C due to higher incentive costs were partially offset by a decrease at S&P Ratings driven by our compensation cost containment efforts resulting from 2014 restructuring actions.

Intersegment eliminations primarily relate to a royalty charged to S&P Capital IQ and SNL for the rights to use and distribute content and data developed by S&P Ratings.

Selling and General Expenses

Selling and general expenses increased 2%. Excluding the unfavorable impact of legal settlement charges of 10 percentage points and impact of acquisition-related costs related to the acquisition of SNL of 9 percentage points, partially offset by the favorable impact of restructuring charges recorded in the third quarter of 2014 of 13 percentage points and a benefit related to legal insurance recoveries of 3 percentage points, selling and general expenses remained flat. Increases at S&P Capital IQ and SNL primarily driven by the acquisition of SNL in September 2015, increases at C&C due to higher incentive costs, as well as increased implementation costs of the Dodd-Frank Wall Street Reform and Consumer Protection Act were offset by declines at S&P Ratings primarily driven by lower incentive costs.

Depreciation and Amortization

Depreciation and amortization increased compared to the third quarter of 2014 due to higher intangible asset amortization in 2015 due to the acquisition of SNL in September of 2015 and the acquisition of Used Car Guide in July of 2015.

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Nine Months

(in millions)	2015					2014					% Change
	Operating- related expenses			Selling and general expenses		Operating- related expenses			Selling and general expenses		Operating- related expenses	Selling and general expenses
S&P Ratings	$	541		$	432	$	576		$	499	(6)%	(14)%
S&P Capital IQ and SNL	437			346		411			300		6%	15%
S&P DJ Indices	78			65		69			76		12%	(14)%
C&C	227			193		211			210		8%	(8)%
Intersegment eliminations	(65		)	—		(64		)	—		(2)%	N/M
Total segments	1,218			1,036		1,203			1,085		1%	(4)%
Unallocated expense	—			98		2			100		(100)%	(2)%
Total	$	1,218		$	1,134	$	1,205		$	1,185	1%	(4)%

N/M - not meaningful

Operating-Related Expenses

Operating-related expenses increased 1%. Increases at S&P Capital IQ and SNL primarily driven by higher data processing costs and the acquisition of SNL in September of 2015 and increases at C&C due to higher incentive costs were partially offset by declines at S&P Ratings driven by our compensation cost containment efforts resulting from 2014 restructuring actions.

Intersegment eliminations primarily relate to a royalty charged to S&P Capital IQ and SNL for the rights to use and distribute content and data developed by S&P Ratings.

Selling and General Expenses

Selling and general expenses decreased 4%. Excluding the unfavorable impact of legal settlement charges of 6 percentage points and impact of acquisition-related costs related to the acquisition of SNL of 3 percentage points, partially offset by a benefit related to legal insurance recoveries of 8 percentage points and the favorable impact of higher restructuring charges recorded in the third quarter of 2014 of 2 percentage points, selling and general expenses decreased 2%. The decline was due to decreases at S&P Ratings driven by lower incentive and legal costs, partially offset by increased costs related to the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Depreciation and Amortization

Depreciation and amortization increased compared to the first nine months of 2014 due to higher intangible asset amortization in 2015 due to the acquisition of SNL in September of 2015 and the acquisition of Used Car Guide in July of 2015.

Other (Income) Loss

During the nine months ended September 30, 2015, we completed the sale of our interest in a legacy McGraw Hill Construction investment that resulted in a gain of $11 million.

During the nine months ended September 30, 2014, we completed the following transactions that resulted in a pre-tax loss of $9 million:

• On July 31, 2014, we completed the sale of the Company's aircraft to Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company for a purchase price of $20 million. During the second quarter of 2014, we recorded a non-cash impairment charge of $6 million within other (income) loss in our consolidated statement of income as a result of the pending sale. See Note 13 — Related Party Transactions for further information.

• On June 30, 2014, we completed the sale of our data center to Quality Technology Services, LLC which owns, operates and manages data centers. Net proceeds from the sale of $58 million were received in July of 2014. The sale includes all of the facilities and equipment on the south campus of our East Windsor, New Jersey location, inclusive of the rights and obligations associated with an adjoining solar power field. The sale resulted in an expense of $3 million recorded within

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other loss (income) in our consolidated statement of income, which is in addition to the non-cash impairment charge we recorded in the fourth quarter of 2013.

Operating Profit

We consider operating profit to be an important measure for evaluating our operating performance and we evaluate operating profit for each of the reportable business segments in which we operate.

We internally manage our operations by reference to “segment operating profit” with economic resources allocated primarily based on segment operating profit. Segment operating profit is defined as operating profit before unallocated expense. Segment operating profit is one of the key metrics we use to evaluate operating performance. Segment operating profit is not, however, a measure of financial performance under U.S. GAAP, and may not be defined and calculated by other companies in the same manner.

The tables below reconcile segment operating profit to total operating profit for the periods ended September 30:

Three Months

(in millions)	2015			2014			% Change
S&P Ratings	$	194		$	183		6%
S&P Capital IQ and SNL	53			64			(18)%
S&P DJ Indices	106			86			23%
C&C	93			71			30%
Total segment operating profit	446			404			10%
Unallocated expense	(36		)	(38		)	(8)%
Total operating profit	$	410		$	366		12%

Segment Operating Profit — Increased 10% in the quarter as compared to the third quarter of 2014. Excluding the impact of legal settlement charges of 7 percentage points and the impact of acquisition-related costs related to the acquisition of SNL of 6 percentage points, partially offset by the favorable impact of higher restructuring charges recorded in the third quarter of 2014 of 8 percentage points, the benefit of insurance recoveries of 2 percentage points and the favorable impact of corporate development activities recorded in the third quarter of 2014 of 1 percentage point, segment operating profit increased by 11%. Revenue growth at S&P Capital IQ and SNL, C&C and S&P DJ Indices and cost containment efforts at S&P Ratings during the quarter were the primary drivers for the increase. See “Segment Review” below for further information.

Unallocated Expense— These expenses, included in selling and general expenses, mainly include costs for corporate center functions, select initiatives, unoccupied office space and corporate overhead costs allocable to discontinued operations. Excluding the impact of restructuring charges, unallocated expense increased by $4 million or 11% as compared to the third quarter of 2014, primarily driven by an increase in professional fees.

Foreign exchange rates had a favorable impact on operating profit of 1 percentage point. This impact refers to constant currency comparisons and the remeasurement of monetary assets and liabilities. Constant currency impacts are estimated by re-calculating current year results of foreign operations using the average exchange rate from the prior year. Remeasurement impacts are based on the variance between current-year and prior-year foreign exchange rate fluctuations on assets and liabilities denominated in currencies other than the individual businesses functional currency.

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Nine Months

(in millions)	2015			2014			% Change
S&P Ratings	$	846		$	730		16%
S&P Capital IQ and SNL	178			172			4%
S&P DJ Indices	297			260			14%
C&C	265			217			22%
Total segment operating profit	1,586			1,379			15%
Unallocated expense	(93		)	(118		)	(21)%
Total operating profit	$	1,493		$	1,261		18%

Segment Operating Profit — Increased 15% in the first nine months of 2015 as compared to the first nine months of 2014. Excluding the impact of legal settlement charges of 5 percentage points and the impact of acquisition-related costs related to the acquisition of SNL of 2 percentage points, partially offset by the benefit of insurance recoveries of 6 percentage points and the favorable impact of higher restructuring charges recorded in the third quarter of 2014 of 2 percentage points, segment operating profit increased by 13%. Excluding the impact of the insurance recoveries, acquisition-related costs related to the acquisition of SNL, restructuring charges and legal settlement charges, segment operating margins were 43% and 39% for the first nine months of 2015 and 2014, respectively. Revenue growth at S&P Capital IQ and SNL, C&C, S&P DJ Indices and S&P Ratings, and cost containment efforts at S&P Ratings during the first nine months of 2015 were the primary drivers for the increase. See “Segment Review” below for further information.

Unallocated Expense— These expenses, included in selling and general expenses, mainly include costs for corporate center functions, select initiatives, unoccupied office space and corporate overhead costs allocable to discontinued operations. Excluding the sale of our interest in a legacy McGraw Hill Construction investment and the impact of restructuring charges, unallocated expense decreased by $8 million or 7% as compared to the first nine months of 2014. This decrease was primarily driven by the impact of a $9 million loss recorded in the second quarter of 2014 related to the sale of the Company's aircraft.

Foreign exchange rates had a favorable impact on operating profit of less than 1 percentage point.

Interest Expense, net

Net interest expense increased compared to the third quarter and first nine months of 2014 primarily as a result of higher interest expense related to the $700 million of senior notes issued in the second quarter of 2015 and the $2.0 billion of senior notes issued in the third quarter of 2015.

Provision for Income Taxes

The effective income tax rate for continuing operations was 25.9% and 30.7% for the three and nine months ended September 30, 2015, respectively, and 39.2% and 35.1% for the three and nine months ended September 30, 2014, respectively. The decrease in the effective income tax rate was primarily due to the combined impact of the resolutions of tax audits, increased income in lower tax rate jurisdictions, and the non-deductible tax treatment of certain regulatory charges incurred during 2014.

Segment Review

Standard & Poor's Ratings Services

Credit ratings are one of several tools that investors can use when making decisions about purchasing bonds and other fixed income investments. They are opinions about credit risk and our ratings express our opinion about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time. Our credit ratings can also relate to the credit quality of an individual debt issue, such as a corporate or municipal bond, and the relative likelihood that the issuer may default.

S&P Ratings differentiates its revenue between transaction and non-transaction. Transaction revenue primarily includes fees associated with:

• ratings related to new issuance of corporate and government debt instruments, and structured finance debt instruments;

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• bank loan ratings; and

• corporate credit estimates, which are intended, based on an abbreviated analysis, to provide an indication of our opinion regarding creditworthiness of a company which does not currently have an S&P Ratings credit rating.

Non-transaction revenue primarily includes fees for surveillance of a credit rating, annual fees for customer relationship-based pricing programs and fees for entity credit ratings.

The following table provides revenue and segment operating profit information for the periods ended September 30:

(in millions)	Three Months							Nine Months
	2015			2014			% Change	2015			2014			% Change
Revenue:
Transaction	$	244		$	269		(9)%	$	862		$	841		3%
Non-transaction	343			335			3%	989			996			(1)%
Total revenue	$	587		$	604		(3)%	$	1,851		$	1,837		1%
% of total revenue:
Transaction	42		%	45		%		47		%	46		%
Non-transaction	58		%	55		%		53		%	54		%
Domestic revenue	$	340		$	316		8%	$	1,078		$	977		10%
International revenue	$	247		$	288		(14)%	$	773		$	860		(10)%
Operating profit 1	$	194		$	183		6%	$	846		$	730		16%
Operating margin %	33		%	30		%		46		%	40		%

¹  Operating profit for the three and nine months ended September 30, 2015 includes legal settlement charges partially offset by a benefit related to legal settlement insurance recoveries of $86 million and $40 million, respectively. Additionally, operating profit for the nine months ended September 30, 2015 includes restructuring charges of $8 million. Operating profit for the three and nine months ended September 30, 2014 includes legal settlement charges of $60 million and restructuring charges of $23 million.

Three Months

Revenue decreased 3%, reflecting the unfavorable impact of foreign exchange rates which reduced revenue by 4 percentage points. Transaction revenue decreased in the quarter driven by reduced market issuance internationally across all regions, primarily impacting corporate bond ratings revenue and structured finance. Bank loan ratings revenue also contributed to the decline primarily driven by Europe as well as bank loan ratings revenue from infrastructure ratings. These decreases were partially offset by growth in U.S. investment-grade issuance reflecting an increase in large issuance deals driven by merger and acquisitions (M&A) activity and increases in U.S. Public Finance issuance. Non-transaction revenue grew primarily due to RES activity and increases at CRISIL in their Global Research & Analytics business as sales to new clients, mainly within the risk and analytics sector, increased, partially offset by lower entity credit ratings activity driven by a decline in new issuers.

Operating profit increased 6%. Excluding the unfavorable impact of legal settlement charges of 14 percentage points, partially offset by the favorable impact of restructuring charges recorded in the third quarter of 2014 of 10 percentage points and a benefit related to legal insurance recoveries of 4 percentage points, operating profit increased 5%. This increase was driven by reduced legal fees following the resolution of a number of significant legal matters, and decreased compensation costs primarily driven by lower incentive costs and cost containment resulting from 2014 restructuring actions, partially offset by increased costs resulting from the implementation of the Dodd-Frank Wall Street Reform of the Consumer Protection Act and the unfavorable impact of foreign exchange rates of 2 percentage points.

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Nine Months

Revenue increased 1% driven by growth in corporate bond ratings revenue in the U.S. and increases in U.S. Public Finance issuance, partially offset by the unfavorable impact of foreign exchange rates which reduced revenue by 4 percentage points and a decline in bank loan ratings revenue. Excluding the unfavorable impact of foreign exchange rates, non-transaction revenue increased primarily due to an increase in annual fees and increased RES activity, partially offset by lower entity credit ratings activity.

Operating profit increased 16%. Excluding the benefit of legal insurance recoveries that favorably impacted operating profit by 11 percentage points and the favorable impact of higher restructuring charges recorded in 2014 of 2 percentage points, partially offset by the unfavorable impact of legal settlement charges of 9 percentage points, operating profit increased 10%. This increase was driven by the increase in revenue, decreased compensation costs primarily driven by lower incentive costs and cost containment resulting from 2014 restructuring actions and reduced legal fees following the resolution of a number of significant legal matters, partially offset by increased costs related to the implementation of the Dodd-Frank Wall Street Reform of the Consumer Protection Act and the unfavorable impact of foreign exchange rates of 2 percentage points.

Issuance Volumes

We monitor issuance volumes as an indicator of trends in transaction revenue streams within S&P Ratings. Issuance volumes noted within the discussion that follows are based on the domicile of the issuer. Issuance volumes can be reported in two ways: by “domicile” which is based on where an issuer is located or where the assets associated with an issue are located, or based on “marketplace” which is where the bonds are sold. The following tables depict changes in issuance levels as compared to the prior year, based on Thomson Financial, Harrison Scott Publications, Dealogic and S&P Ratings' internal estimates.

	Third Quarter Compared to Prior Year		Year-to-Date Compared to Prior Year
Corporate Issuance	U.S.	Europe	U.S.	Europe
High-yield issuance	(43)%	(14)%	(5)%	(31)%
Investment-grade	33%	(31)%	33%	(22)%
Total new issue dollars — corporate issuance	14%	(29)%	24%	(24)%

• Corporate issuance in the U.S. was up in the quarter and first nine months of 2015 driven by a strong double-digit increase in investment-grade debt issuance. The trend of high par value deals, but lower volumes continued this quarter. Strong M&A activity was a major driver of large financing transactions that resulted in increased issuance. Strong U.S. investment-grade debt issuance was partially offset by weakness in U.S. high-yield debt issuance in both the quarter and year-to-date periods.

• Corporate issuance in Europe for both investment-grade and high-yield decreased in the quarter and first nine months of 2015 as a result of economic and political uncertainty in the European markets.

	Third Quarter Compared to Prior Year		Year-to-Date Compared to Prior Year
Structured Finance	U.S.	Europe	U.S.	Europe
Asset-backed securities (“ABS”)	(24)%	39%	(2)%	15%
Structured Credit	(38)%	(55)%	(16)%	(10)%
Commercial mortgage-backed securities (“CMBS”)	(25)%	33%	12%	224%
Residential mortgage-backed securities (“RMBS”)	9%	483%	32%	199%
Covered bonds	*	82%	*	20%
Total new issue dollars — structured finance	(27)%	98%	(1)%	38%

* Represents no activity in 2015 and 2014.

• ABS issuance in the U.S. was down for the quarter driven by a decline in credit card and student loan transactions. ABS issuance in Europe was up for the quarter and year-to date periods as a result of favorable spreads and investors looking for diversification.

• Issuance was down in the U.S. and European Structured Credit markets for the quarter and year-to-date periods driven by lower availability of leveraged loans and overall market volatility.

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• CMBS issuance in the U.S. was down in the quarter with the mix reflecting a lower proportion of single borrower transactions compared to the prior-year period. Year-to-date issuance was up in the U.S. reflecting favorable market conditions and investor demand during the first half of the year. European CMBS issuance was up for both the quarter and year-to-date, although from a low 2014 base.

• RMBS volume in the U.S. was up in the quarter and year-to-date driven by a mix of deal types. The significant increase in the European RMBS volume was predominantly driven by the issuance of one large transaction; excluding this transaction volume was up 15%.

• Covered bond issuance (which are debt securities backed by mortgages or other high-quality assets that remain on the issuer's balance sheet) in Europe was up in both the quarter and year-to-date periods due to historically low yields. The European Central Bank's purchase program is also adding to the demand side, with banks and financial institutions taking advantage of attractive lower rates.

For a further discussion of the legal and regulatory environment see Note 11 – Commitments and Contingencies to the consolidated financial statements of this Form 10-Q.

S&P Capital IQ and SNL

S&P Capital IQ and SNL's portfolio of capabilities are designed to help the financial community track performance, generate better investment returns (alpha), identify new trading and investment ideas, perform risk analysis, and develop mitigation strategies.

S&P Capital IQ and SNL includes the following business lines:

• S&P Capital IQ Desktop & Enterprise Solutions — a product suite that provides data, analytics and third-party research for global finance professionals, which includes the S&P Capital IQ Desktop and integrated bulk data feeds that can be customized, which include QuantHouse, S&P Securities Evaluations, CUSIP and Compustat;

• S&P Credit Solutions — commercial arm that sells Standard & Poor's Ratings Services' credit ratings and related data, analytics and research, which includes subscription-based offerings, RatingsDirect® and RatingsXpress®; and

• S&P Capital IQ Markets Intelligence — a comprehensive source of market research for financial professionals, which includes Global Markets Intelligence, Leveraged Commentary & Data and Equity Research Services.

• SNL — a product suite that includes standardized and as-reported financials, sector-specific templates, asset-level data, mapping and regulatory data accessible through SNL Unlimited that provides in-depth coverage of industry-specific financial market data from over 6,500 public companies and over 50,000 private companies across the globe, comprehensive market data on a variety of assets, and M&A and Capital Market activities.

The following table provides revenue and segment operating profit information for the periods ended September 30:

(in millions)	Three Months							Nine Months
	2015			2014			% Change	2015			2014			% Change
Revenue:
Subscription revenue	$	322		$	283		14%	$	900		$	832		8%
Non-subscription revenue	34			28			18%	100			87			14%
Total revenue	$	356		$	311		14%	$	1,000		$	919		9%
Domestic revenue	$	236		$	203		16%	$	660		$	603		9%
International revenue	$	120		$	108		12%	$	340		$	316		8%
Operating profit 1	$	53		$	64		(18)%	$	178		$	172		4%
Operating margin %	15		%	21		%		18		%	19		%

¹  Operating profit for the three and nine months ended September 30, 2015 includes acquisition costs of $32 million related to the acquisition of SNL. Additionally, operating profit for the nine months ended September 30, 2015 includes restructuring charges of $12 million. Operating profit for the three and nine months ended September 30, 2014 includes restructuring charges of $4 million.

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Three Months

Revenue increased 14% with revenue favorably impacted by 7 percentage points from growth in the S&P Capital IQ Desktop, RatingsXpress® and RatingsDirect®, and 7 percentage points from the acquisition of SNL. Revenue growth of the legacy S&P Capital IQ products was primarily driven by increases in average contract values for each product from existing customers. These increases were partially offset by declines in the equity research business and the unfavorable impact of foreign exchange rates which reduced revenue by 1 percentage point. The number of users on the S&P Capital IQ Desktop and the number of customers at RatingsXpress® continued to grow in the quarter. Both domestic and international revenue increased, and international revenue represented approximately 35% of S&P Capital IQ and SNL's total revenue. International revenue growth in the quarter was primarily driven by sales growth of the S&P Capital IQ Desktop in Europe and Asia. Sales growth of RatingsXpress® in Asia also contributed to the increase in international revenue.

Operating profit decreased 18%. Excluding the impact of acquisition-related costs related to the acquisition of SNL of 47 percentage points, partially offset by the favorable impact of restructuring charges recorded in the third quarter of 2014 of 5 percentage points, operating profit increased 25%. This increase is due to revenue growth and the favorable impact of foreign exchange rates of 8 percentage points, partially offset by higher incentive costs and technology costs.

Nine Months

Revenue increased 9% primarily due to growth from the S&P Capital IQ Desktop, RatingsXpress® and RatingsDirect®, driven by increases in average contract values for each product from the comparable prior year period. These increases were partially offset by declines in the equity research business, the unfavorable impact of foreign exchange rates which reduced revenue by 1 percentage point and the unfavorable impact related to the closure of a non-core business. The acquisition of SNL in September of 2015 favorably impacted revenue in the first nine months of 2015 by 2 percentage points.

Operating profit increased 4%. Excluding the impact of acquisition-related costs related to the acquisition of SNL of 18 percentage points and the unfavorable impact of higher restructuring charges recorded in 2015 of 5 percentage points, operating profit increased 26%. This increase is due to revenue growth, the favorable impact of foreign exchange rates of 8 percentage points and lower incentive costs, partially offset by higher technology costs.

S&P Dow Jones Indices

S&P DJ Indices is a global index provider that maintains a wide variety of indices to meet an array of investor needs. S&P DJ Indices’ mission is to provide transparent benchmarks to help with decision making, collaborate with the financial community to create innovative products and provide investors with tools to monitor world markets.

S&P DJ Indices generates subscription revenue but primarily derives revenue from non-subscription products based on the S&P DJ Indices. Specifically, S&P DJ Indices generates revenue from the following sources:

• Investment vehicles — such as ETFs, which are based on the S&P Dow Jones Indices' benchmarks and generate revenue through fees based on assets and underlying funds;

• Exchange traded derivatives — which generate royalties based on trading volumes of derivatives contracts listed on various exchanges;

• Index-related licensing fees — which are either fixed or variable annual and per-issue fees for over-the-counter derivatives and retail-structured products; and

• Data and customized index subscription fees — which support index fund management, portfolio analytics and research.

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The following table provides revenue and segment operating profit information for the periods ended September 30:

(in millions)	Three Months							Nine Months
	2015			2014			% Change	2015			2014			% Change
Revenue:
Non-subscription revenue	$	124		$	114		8%	$	355		$	330		8%
Subscription revenue	32			29			12%	91			82			11%
Total revenue	$	156		$	143		9%	$	446		$	412		8%
Domestic revenue	$	129		$	114		13%	$	363		$	327		11%
International revenue	$	27		$	29		(5)%	$	83		$	85		(2)%
Operating profit 1	$	106		$	86		23%	$	297		$	260		14%
Less: net operating profit attributable to noncontrolling interests	26			23				76			69
Net operating profit	$	80		$	63		25%	$	221		$	191		16%
Operating margin %	68		%	61		%		67		%	63		%
Net operating margin %	51		%	44		%		50		%	46		%

¹  Operating profit for the three and nine months ended September 30, 2014 includes $4 million of professional fees largely related to corporate development activities.

Three Months

Revenue at S&P DJ Indices increased 9%, primarily driven by higher volumes for exchange-traded derivatives and higher average levels of assets under management ("AUM") for ETFs and mutual funds, partially offset by lower over-the-counter derivative revenue. AUM for ETFs rose 2% to $749 billion in the third quarter of 2015 from $733 billion in the third quarter of 2014. However, AUM for the third quarter of 2015 were lower than the amount in the second quarter of 2015 of $792 billion and $832 billion in the fourth quarter of 2014, primarily due to the flow of investment funds to the developed international equity markets and the impact of lower equity prices. The unfavorable impact of foreign exchange rates reduced revenue by 1 percentage point.

Operating profit grew 23%. Excluding the impact of professional fees largely related to corporate development activities recorded in the third quarter of 2014 of 5 percentage points, operating profit increased 18%. This increase was primarily due to revenue growth, a decrease in operating costs primarily resulting from cost containment and lower incentive costs, partially offset by increased compensation costs. The unfavorable impact of foreign exchange rates reduced operating profit by 1 percentage point.

Nine Months

Revenue at S&P DJ Indices increased 8%, primarily driven by higher volumes for exchange-traded derivatives and higher average levels of AUM for ETFs and mutual funds, partially offset by lower over-the-counter derivative revenue. Additionally, the year-over-year revenue increase was unfavorably impacted by the refinement of our process for estimating revenue for certain products that favorably impacted the first nine months of 2014 which caused a one-time revenue increase in the prior-year period. The unfavorable impact of foreign exchange rates reduced revenue by 1 percentage point.

Operating profit grew 14%. Excluding the impact of professional fees largely related to corporate development activities recorded in the third quarter of 2014 of 2 percentage points, operating profit increased 12%. This increase was primarily due revenue growth and a decrease in operating costs primarily resulting from cost containment, partially offset by higher compensation costs. The unfavorable impact of foreign exchange rates reduced operating profit by less than 1 percentage point.

Commodities & Commercial Markets

C&C consists of business-to-business companies specializing in the commodities and commercial markets that deliver their customers access to high-value information, data, analytic services and pricing and quality benchmarks. C&C includes the following brands:

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• Platts — provides essential price data, analytics, and industry insight that enable commodities markets to perform with greater transparency and efficiency; and

• J.D. Power — provides essential consumer intelligence to help businesses measure, understand, and improve the key performance metrics that drive growth and profitability in automotive and other industries.

The C&C business is driven by the need for high-value information and transparency in a variety of industries. C&C seeks to deliver premier content that is deeply embedded in customer workflows and decision making processes.

C&C's revenue is generated primarily through the following sources:

• Subscription revenue — subscriptions to our real-time news, market data and price assessments, along with other information products, primarily serving the energy and the automotive industry; and

• Non-subscription revenue — primarily from licensing of our proprietary market price data and price assessments to commodity exchanges, syndicated and proprietary research studies, conference sponsorship, consulting engagements, and events.

The following table provides revenue and segment operating profit information for the periods ended September 30:

(in millions)	Three Months							Nine Months
	2015			2014			% Change	2015			2014			% Change
Total revenue	$	248		$	227		9%	$	707		$	657		8%
Subscription revenue	$	165		$	145		14%	$	470		$	427		10%
Non-subscription revenue	$	83		$	82		1%	$	237		$	230		3%
Domestic revenue	$	116		$	102		15%	$	317		$	296		7%
International revenue	$	132		$	125		5%	$	390		$	361		8%
Operating profit 1	$	93		$	71		30%	$	265		$	217		22%
Operating margin %	37		%	31		%		38		%	33		%

¹  Operating profit for the nine months ended September 30, 2015 includes $1 million of restructuring charges. Operating profit for the three and nine months ended September 30, 2014 includes $12 million of restructuring charges.

Three Months

Revenue grew 9% primarily due to continued demand for Platts’ proprietary content. This growth was mainly continued demand for Platts’ market data and price assessment products across all commodity sectors, led by petroleum. Additionally, revenue benefited from a retroactive revision to annual pricing terms on an existing licensing agreement that occurred in third quarter of 2015. While petroleum is still the biggest driver, the revenue mix continues to become more diversified as other sectors showed positive annualized contract value growth including coal, natural gas, petrochemicals, metals and agriculture. J.D. Power also contributed to the revenue increase due to the acquisition of Used Car Guide (“UCG”) in July of 2015. Excluding the acquisition of UCG, revenue at J.D. Power decreased due to declines in auto consulting and proprietary engagement in China and Japan. The unfavorable impact of foreign exchange rates reduced revenue by 1 percentage point.

Operating profit increased 30%. Excluding the favorable impact of restructuring charges recorded in the third quarter of 2014 of 19 percentage points, operating profit increased 11%. This increase is primarily due to the increase in revenue, the favorable impact of foreign exchange rates of 3 percentage points, partially offset by higher incentive costs at Platts.

Nine Months

Revenue grew 8% primarily due to continued demand for Platts' proprietary content. Platts revenue for the nine months of 2015 was also favorably impacted by the acquisition of Eclipse Energy Group AS and its operating subsidiaries (“Eclipse”) in July of 2014. J.D. Power also contributed to the revenue increase primarily due to the acquisition of UCG in July of 2015. The unfavorable impact of foreign exchange rates reduced revenue by 1 percentage point.

Operating profit increased 22%. Excluding the favorable impact of higher restructuring charges recorded in the third quarter of

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2014 of 6 percentage points, operating profit increased 16%. This increase is due to the increase in revenue and the favorable impact of foreign exchange rates of 4 percentage points. These increases were partially offset by higher incentive costs at Platts.

For a further discussion of the legal and regulatory environment see Note 11 – Commitments and Contingencies to the consolidated financial statements of this Form 10-Q.

LIQUIDITY AND CAPITAL RESOURCES

We continue to maintain a strong financial position. Our primary source of funds for operations is cash from our businesses and our core businesses have been strong cash generators. Cash on hand, cash flows from operations and availability under our existing credit facility are expected to be sufficient to meet any additional operating and recurring cash needs into the forseeable future. We use our cash for a variety of needs, including among others: ongoing investments in our businesses, strategic acquisitions, share repurchases, dividends, repayment of debt, capital expenditures and investment in our infrastructure.

Cash Flow Overview

Cash and cash equivalents were $1,441 million as of September 30, 2015, a decrease of $1,056 million from December 31, 2014, and consisted of approximately 10% of domestic cash and 90% of cash held abroad. Typically, cash held outside the U.S. is anticipated to be utilized to fund international operations or to be reinvested outside of the U.S., as a significant portion of our opportunities for growth in the coming years is expected to be abroad. In the event funds from international operations are needed to fund operations in the U.S., we would be required to accrue for and pay taxes in the U.S. to repatriate these funds.

The following table provides cash flow information for the nine months ended September 30:

(in millions)	2015			2014			% Change
Net cash (used for) provided by:
Operating activities from continuing operations	$	(356	)	$	820		N/M
Investing activities from continuing operations	$	(2,456	)	$	(35	)	N/M
Financing activities from continuing operations	$	1,927		$	(401	)	N/M

N/M - not meaningful

In the first nine months of 2015, free cash flow decreased to $(497) million compared to $737 million in the first nine months of 2014. The decrease is primarily due to the decrease in cash (used for) provided by operating activities as discussed below. Free cash flow is a non-GAAP financial measure and reflects our cash flow (used for) provided by operating activities less capital expenditures and dividends and other payments paid to noncontrolling interests. Capital expenditures include purchases of property and equipment and additions to technology projects. See “Reconciliation of Non-GAAP Financial Information” below for a reconciliation of cash flow provided by operating activities, the most directly comparable U.S. GAAP financial measure, to free cash flow and free cash flow excluding certain items.

Operating activities

Cash used for operating activities was $356 million for the first nine months of 2015 compared to cash provided by operating activities of $820 million for the first nine months of 2014. The decrease is mainly due to the payment of legal and regulatory settlements in 2015.

Investing activities

Our cash outflows from investing activities are primarily for acquisitions and capital expenditures, while cash inflows are primarily proceeds from dispositions.

Cash used for investing activities increased to $2,456 million for the first nine months of 2015, primarily due to the acquisition of SNL in September of 2015. Refer to Note 2 —Acquisitions and Divestitures to our unaudited consolidated financial statements for further information.

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Financing activities

Our cash outflows from financing activities consist primarily of share repurchases, dividends to shareholders and repayments of short-term and long-term debt, while cash inflows are primarily attributable to the borrowing of short-term and long-term debt and proceeds from the exercise of stock options.

Cash provided by financing activities was $1,927 million in the first nine months of 2015 as compared to cash used for financing activities of $401 million in the first nine months of 2014 driven by the issuance of senior notes in the first nine months of 2015, partially offset by an increase in cash used for the repurchase of treasury shares.

On August 18, 2015, we issued $2.0 billion of senior notes (the "Notes"), consisting of $400 million of 2.5% senior notes due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026. The Notes are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC. We used the net proceeds to finance the acquisition.

On May 26, 2015, we issued $700 million of 4.0% senior notes due in 2025 and used a portion of the net proceeds for the repayment of short-term debt, including commercial paper. The 4.0% senior notes will mature on June 15, 2025 and are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC.

During the first nine months of 2015, we used cash to repurchase 4.9 million shares for $501 million at an average price paid per share of $102.01, excluding commissions. During the first nine months of 2014, we used cash to repurchase 4.6 million shares for $362 million at an average price paid per share of $79.02, excluding commissions. On June 25, 2014, we repurchased 0.5 million shares of the Company's common stock from the personal holdings of Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company, at a discount of 0.35% from the June 24, 2014 New York Stock Exchange closing price. We repurchased these shares with cash for $41 million at an average price of $82.66 per share. This transaction was approved by the Nominating & Corporate Governance Committee of the Company's Board of Directors after consultation with members of the Financial Policy Committee.

Discontinued Operations

Cash used for operating activities from discontinued operations of $129 million in the first nine months of 2015 relates to the tax payment on the gain on sale of McGraw Hill Construction which was sold in the fourth quarter of 2014.

Additional Financing

Currently, we have the ability to borrow a total of $1.2 billion through our commercial paper program, which is supported by our credit facility described below. As of September 30, 2015 and December 31, 2014, we had no commercial paper outstanding or borrowings outstanding under our credit facility. In connection with the payment of legal and regulatory settlements recorded in 2014 and paid largely in 2015, we utilized our commercial paper program and borrowed from our credit facility during the nine months ended September 30, 2015.

On June 30, 2015, we entered into a revolving $1.2 billion five-year credit agreement (our “credit facility”) that will terminate on June 30, 2020. This credit facility replaced our $1.0 billionfour-year credit facility that was scheduled to terminate on June 19, 2017. The previous credit facility was canceled immediately after the new credit facility became effective. There were no outstanding borrowings under the previous credit facility when it was replaced.

We pay a commitment fee of 10 to 20 basis points for our credit facility, depending on our indebtedness to cash flow ratio, whether or not amounts have been borrowed and currently pay a commitment fee of 12.5 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 indebtedness to cash flow ratio added to the applicable rate.

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. 

On July 24, 2015, in connection with the acquisition of SNL, we entered into a commitment letter. Upon receipt of the proceeds from the issuance of $2.0 billion of senior notes on August 18, 2015, we terminated this commitment letter. See Note 4 — Debt for further information.

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On January 22, 2015, Fitch Ratings revised its ratings outlook from negative to stable and affirmed our BBB+ long-term debt rating and F2 short-term/commercial paper rating. On August 7, 2015, Moody's Investor Service assigned a Baa1 long-term debt rating and P-2 commercial paper rating.

Dividends

On February 12, 2015, the Board of Directors approved an increase in the quarterly common stock dividend from $0.30 per share to $0.33 per share.

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

Free cash flow is a non-GAAP financial measure and reflects our cash flow provided by operating activities less capital expenditures and dividends and other payments paid to noncontrolling interests. Capital expenditures include purchases of property and equipment and additions to technology projects. Our cash flow provided by operating activities is the most directly comparable U.S. GAAP financial measure to free cash flow. Additionally, we have considered certain items in evaluating free cash flow, which are included in the table below.

We believe the presentation of free cash flow and free cash flow excluding certain items allows our investors to evaluate the cash generated from our underlying operations in a manner similar to the method used by management. We use free cash flow to conduct and evaluate our business because we believe it typically presents a more conservative measure of cash flows since capital expenditures and dividends and other payments paid to noncontrolling interests are considered a necessary component of ongoing operations. Free cash flow is useful for management and investors because it allows management and investors to evaluate the cash available to us to service debt, make strategic acquisitions and investments, repurchase stock and fund ongoing operational and working capital needs.

The presentation of free cash flow and free cash flow excluding certain items are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Free cash flow, as we calculate it, may not be comparable to similarly titled measures employed by other companies. The following table presents a reconciliation of our cash flow provided by operating activities to free cash flow excluding the impact of the items below for the nine months ended September 30:

(in millions)	2015			2014
Cash (used for) provided by operating activities from continuing operations	$	(356	)	$	820
Capital expenditures	(74		)	(52		)
Dividends and other payments paid to noncontrolling interests	(67		)	(31		)
Free cash flow	(497		)	737
Payment of legal and regulatory settlements	1,624			—
Legal settlement insurance recoveries	(101		)	—
Tax benefit from legal settlements	(250		)	—
Free cash flow excluding above items	$	776		$	737

CRITICAL ACCOUNTING ESTIMATES

Our accounting policies are described in Note 1 —Accounting Policies to the consolidated financial statements in our Form 10-K. As discussed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Form 10-K, we consider an accounting estimate to be critical if it required assumptions to be made that were uncertain at the time the estimate was made and changes in the estimate or different estimates could have a material effect on our results of operations. These critical estimates include 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 non-controlling interests. We base our estimates on historical experience, current developments and on various other assumptions that we believe to be reasonable under these circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that cannot readily be determined from other sources. There can be no assurance that actual results will not differ from those estimates. Since the date of our Form 10-K, there have been no changes to our critical accounting estimates.

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RECENT ACCOUNTING STANDARDS

See Note 12 – Recent Accounting Standards to the consolidated financial statements of this Form 10-Q for further information.

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FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events, trends, contingencies or results, appear at various places in this report and use words like “anticipate,” “assume,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “future,” “intend,” “plan,” “potential,” “predict,” “project,” “strategy,” “target” and similar terms, and future or conditional tense verbs like “could,” “may,” “might,” “should,” “will” and “would.” For example, management may use forward-looking statements when addressing topics such as: the outcome of contingencies; future actions by regulators; changes in the Company’s business strategies and methods of generating revenue; the development and performance of the Company’s services and products; the expected impact of acquisitions and dispositions; the Company’s effective tax rates; and the Company’s cost structure, dividend policy, cash flows or liquidity.

Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:

• the impact of the acquisition of SNL, including the impact on the Company’s results of operations; any failure to successfully integrate SNL into the Company’s operations and generate anticipated synergies and other cost savings; any failure to attract and retain key employees to execute SNL’s growth strategy; any failure to realize the intended tax benefits of the acquisition; and the risk of litigation, competitive responses, or unexpected costs, charges or expenses resulting from or relating to the SNL acquisition;

• the rapidly evolving regulatory environment, in the United States and abroad, affecting Standard & Poor’s Ratings Services, Platts, S&P Dow Jones Indices, S&P Capital IQ and SNL and the Company’s other businesses, including new and amended regulations and the Company’s compliance therewith;

• the outcome of litigation, government and regulatory proceedings, investigations and inquiries;

• worldwide economic, financial, political and regulatory conditions;

• the health of debt and equity markets, including credit quality and spreads, the level of liquidity and future debt issuances;

• the level of interest rates and the strength of the credit and capital markets in the United States and abroad;

• the demand and market for credit ratings in and across the sectors and geographies where the Company operates;

• concerns in the marketplace affecting the Company’s credibility or otherwise affecting market perceptions of the integrity or utility of independent credit ratings;

• the Company’s ability to maintain adequate physical, technical and administrative safeguards to protect the security of confidential information and data, and the potential of a system or network disruption that results in regulatory penalties, remedial costs or improper disclosure of confidential information or data;

• the effect of competitive products and pricing;

• consolidation in the Company’s end-customer markets;

• the impact of cost-cutting pressures across the financial services industry;

• a decline in the demand for credit risk management tools by financial institutions;

• the level of success of new product developments and global expansion;

• the level of merger and acquisition activity in the United States and abroad;

• the volatility of the energy marketplace;

• the health of the commodities markets;

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• the impact of cost-cutting pressures and reduced trading in oil and other commodities markets;

• the level of the Company’s future cash flows;

• the Company’s ability to make acquisitions and dispositions and to integrate, and realize expected synergies, savings or benefits from the businesses it acquires;

• the level of the Company’s capital investments;

• the level of restructuring charges the Company incurs;

• the strength and performance of the domestic and international automotive markets;

• the Company’s ability to successfully recover should it experience a disaster or other business continuity problem from a hurricane, flood, earthquake, terrorist attack, pandemic, security breach, cyber-attack, power loss, telecommunications failure or other natural or man-made event;

• changes in applicable tax or accounting requirements;

• the impact on the Company’s net income caused by fluctuations in foreign currency exchange rates; and

• the Company’s exposure to potential criminal sanctions or civil penalties if it fails to comply with foreign and U.S. laws and regulations that are applicable in the domestic and international jurisdictions in which it operates, including sanctions laws relating to countries such as Iran, Russia, Sudan and Syria, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010, and local laws prohibiting corrupt payments to government officials, as well as import and export restrictions.

The factors noted above are not exhaustive. The Company and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Further information about the Company’s businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company’s filings with the SEC, including the “Risk Factors” section in the Company’s most recently filed Annual Report on Form 10-K and any subsequently filed Quarterly Report on Form 10-Q.

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Item 3.Quantitative and Qualitative Disclosures About Market Risk

There have been no significant changes in our exposure to market risk during the nine months ended September 30, 2015 from those disclosed in our Form 10-K for the year ended December 31, 2014.

Item 4.Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed with the U.S. Securities and Exchange Commission (the “SEC”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.

As of September 30, 2015, an evaluation was performed under the supervision and with the participation of management, including the CEO and CFO, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, management, including the CEO and CFO, concluded that our disclosure controls and procedures were effective as of September 30, 2015.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during the most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1.Legal Proceedings

See Note 11 – Commitments and Contingencies - Legal & Regulatory Matters to the consolidated financial statements of this Form 10-Q for information on our legal proceedings.

Item 1a.Risk Factors

Our Form 10-K contains detailed cautionary statements which identify all known material risks, uncertainties and other factors that could cause our actual results to differ materially from historical or expected results. Except as noted below, there have been no material changes to the risk factors we have previously disclosed in Item 1a, Risk Factors, in our Form 10-K.

Our acquisitions and other strategic transactions may not produce anticipated results.

• We have made and expect to continue to make acquisitions or enter into other strategic transactions to strengthen our business and grow our Company.

• Such transactions, including our recent acquisition of SNL Financial LC, present significant challenges and risks.

• The market for acquisition targets and other strategic transactions is highly competitive, especially in light of industry consolidation, which may affect our ability to complete such transactions.

• If we are unsuccessful in completing such transactions or if such opportunities for expansion do not arise, our business, financial condition or results of operations could be materially adversely affected.

• If such transactions are completed, the anticipated growth and other strategic objectives of such transactions may not be fully realized, and a variety of factors may adversely affect any anticipated benefits from such transactions. For instance, the process of integration may require more resources than anticipated, we may assume unintended liabilities, there may be unexpected regulatory and operating difficulties and expenditures, we may fail to retain key personnel of the acquired business and such transactions may divert management’s focus from other business operations.

• The anticipated benefits from an acquisition or other strategic transaction may not be realized fully, or may take longer to realize than expected. For instance, although we have identified approximately $70 million in synergies expected to be realized by 2019 largely from operational efficiencies and our ability to accelerate SNL Financial’s international growth through its global footprint, there is no guarantee that we will be able to achieve any or all of these synergies. As a result, the failure of acquisitions and other strategic transactions to perform as expected could have a material adverse effect on our business, financial condition or results of operations.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

On December 4, 2013, the Board of Directors approved a share repurchase program authorizing the purchase of up to 50 million shares, which was approximately 18% of the Company's outstanding shares at that time. During the third quarter of 2015, we repurchased 2.3 million shares and, as of September 30, 2015, 40.6 million shares remained under our current share repurchase program.

Repurchased 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. Our current repurchase program 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.

The following table provides information on our purchases of our outstanding common stock during the third quarter of 2015 pursuant to our current share repurchase program (column c). In addition to these purchases, the number of shares in column (a) include: 1) shares of common stock that are tendered to us to satisfy our employees’ tax withholding obligations in connection with the vesting of awards of restricted shares (we repurchase such shares based on their fair market value on the vesting date), and 2) our shares deemed surrendered to us to pay the exercise price and to satisfy our employees’ tax withholding obligations in connection with the exercise of employee stock options. There were no other share repurchases during the quarter outside the repurchases noted below.

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(amounts in millions, except per share price)

Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Programs	(d) Maximum Number of Shares that may yet be Purchased Under the Programs
Jul. 1 — Jul. 31, 2015	0.1	$	102.58	0.1	42.8
Aug. 1 — Aug. 31, 2015	2.2	98.88		2.2	40.6
Sept. 1 — Sept. 30, 2015	—	93.22		—	40.6
Total — Qtr	2.3	$	99.01	2.3	40.6

Item 5.Other Information

IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT DISCLOSURE

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which amended the Securities Exchange Act of 1934, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether, during the reporting period, it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure is generally required even where the activities, transactions or dealings were conducted in compliance with applicable laws and regulations.

Revenue during the third quarter of 2015 attributable to the transactions or dealings by the Company described below was approximately $176,000, with net profit from such sales being a fraction of the revenues.

During the third quarter of 2015, one of the Company’s divisions, a provider of energy-related information in over 150 countries, sold information and informational materials, which are generally exempt from U.S. economic sanctions, to fourteen Iran-linked subscribers that are designated by the Treasury Department’s Office of Foreign Assets Control (“OFAC”) pursuant to Executive Order 13382 and/or are owned or controlled, or appear to be owned or controlled, by the Government of Iran (the “GOI”). The Company, among other things, offers customers that subscribe to its publications access to proprietary data, analytics, and industry information that enable commodities markets to perform with greater transparency and efficiency. This division provided such data related to the energy and petrochemicals markets to the Iran-linked subscribers referenced above, generating revenue that was a de minimis portion of both the division's and the Company’s revenue. One of the twelve Iran-linked customers is designated by OFAC pursuant to Executive Order 13382; one is designated by OFAC both pursuant to Executive Order 13382 and as a GOI entity; seven are designated by OFAC as GOI entities; and five appear, based on publicly available information, to be owned or controlled by GOI entities. We believe that these transactions were permissible under U.S. sanctions pursuant to certain statutory and regulatory exemptions for the exportation of information and informational materials. The Company will continue to monitor its provision of products and services to these Iranian customers to ensure that such activity continues to be permissible under U.S. sanctions.

52

Item 6.Exhibits

(2.1)	Agreement and Plan of Merger, dated as of July 24, 2015, among the Company, Venus Sub LLC, SNL Financial LC and New Mountain Partners III (AIV-C), L.P., as incorporated by reference from the Registrant's Form 8-K filed on July 29, 2015.
(4.1)	Second Supplemental Indenture dated as of August 18, 2015, among the Company, Standard & Poor’s Financial Services LLC and U.S. Bank National Association, as trustee, as incorporated from Registrant’s Form 8-K filed on August 18, 2015.
(10.1)	Separation Agreement dated September 24, 2015 between the Company and Neeraj Sahai, as incorporated from Registrant’s Registration Statement on Form S-4 filed on October 30, 2015.
(12)	Computation of Ratio of Earnings to Fixed Charges
(15)	Letter on Unaudited Interim Financials
(31.1)	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
(31.2)	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
(32)	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(101.INS)	XBRL Instance Document
(101.SCH)	XBRL Taxonomy Extension Schema
(101.CAL)	XBRL Taxonomy Extension Calculation Linkbase
(101.LAB)	XBRL Taxonomy Extension Label Linkbase
(101.PRE)	XBRL Taxonomy Extension Presentation Linkbase
(101.DEF)	XBRL Taxonomy Extension Definition Linkbase

53

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

			McGraw Hill Financial, Inc.
			Registrant
Date:	November 3, 2015	By:	/s/ Jack F. Callahan, Jr.
			Jack F. Callahan, Jr.
			Executive Vice President and Chief Financial Officer
Date:	November 3, 2015	By:	/s/ Robert J. MacKay
			Robert J. MacKay
			Senior Vice President and Corporate Controller

54

EX-12

Exhibit (12)

McGraw Hill Financial, Inc.

Computation of Ratio of Earnings to Fixed Charges

(in millions)

	Nine months ended September 30,			Years ended December 31,
	2015			2014			2013			2012			2011			2010
Earnings:
Income from continuing operations before taxes on income	$	1,431	1	$	54	2	$	1,299	3	$	1,089	4	$	975	5	$	921	6
Fixed charges 7	106			118			124			128			131			133
Total earnings	$	1,537		$	172		$	1,423		$	1,217		$	1,106		$	1,054
Fixed charges:7
Interest expense	$	61		$	58		$	62		$	81		$	86		$	89
Portion of rental payments deemed to    be interest	44			59			61			46			44			43
Amortization of debt issuance costs and    discount	1			1			1			1			1			1
Total fixed charges	$	106		$	118		$	124		$	128		$	131		$	133
Ratio of earnings to fixed charges:	14.5		x	1.5		x	11.5		x	9.5		x	8.4		x	7.9		x

¹ Includes the impact of the following items: $40 million in accruals for potential settlements net of insurance recoveries, $32 million for acquisition related costs associated with the SNL Financial LC ("SNL") transaction, and restructuring charges of $22 million, partially offset by a gain of $11 million related to the sale of a legacy McGraw Hill Construction investment.

² Includes the impact of the following items: $1.6 billion of charges for certain regulatory matters, restructuring charges of $86 million, and $4 million of professional fees largely related to corporate development activities.

³ Includes the impact of the following items: pre-tax legal settlements of approximately $77 million, $64 million charge for costs necessary to enable the separation of McGraw-Hill Education business ("MHE") and reduce our cost structure, a $36 million non-cash impairment charge related to the sale of a data center, $28 million of restructuring charges, $13 million related to terminating various leases as we reduce our real estate portfolio, and a $24 million net gain from our dispositions.

⁴ Includes the impact of the following items: $135 million charge for costs necessary to enable the separation of MHE and reduce our cost structure, a $65 million restructuring charge, transaction costs of $15 million for our S&P Dow Jones Indices LLC joint venture, an $8 million charge related to a reduction in our lease commitments, partially offset by a vacation accrual reversal of $52 million.

⁵ Includes the impact of the following items: a $31 million restructuring charge and a $10 million charge for costs necessary to enable the separation of MHE and reduce our cost structure.

⁶ Includes the impact of the following items: a $16 million charge for subleasing excess space in our New York facilities, a $4 million restructuring charge and a $7 million gain on the sale of certain equity interests at S&P Ratings.

⁷ "Fixed charges" consist of (1) interest on debt and interest related to the sale leaseback of Rock-McGraw, Inc. (2) the portion of our rental expense deemed representative of the interest factor in rental expense, and (3) amortization of debt issue costs and discount to any indebtedness.

EX-15

Exhibit (15)

The Board of Directors and Shareholders of

McGraw Hill Financial, Inc.

We are aware of the incorporation by reference in the following Registration Statements:

1. Registration Statement (Form S-3 No. 333-146981) pertaining to the Debt Securities of The McGraw-Hill Companies, Inc.,

2. Registration Statements (Form S-8 No. 33-49743, No. 333-30043 and No. 333-40502) pertaining to the 1993 Employee Stock Incentive Plan,

3. Registration Statements (Form S-8 No. 333-92224 and No. 333-116993) pertaining to the 2002 Stock Incentive Plan,

4. Registration Statement (Form S-8 No. 333-06871) pertaining to the Director Deferred Stock Ownership Plan,

5. Registration Statement (Form S-8 No. 33-50856) pertaining to The Savings Incentive Plan of McGraw-Hill, Inc. and its Subsidiaries, The Employee Retirement Account Plan of McGraw-Hill, Inc. and its Subsidiaries, The Standard & Poor's Savings Incentive Plan for Represented Employees, The Standard & Poor's Employee Retirement Account Plan for Represented Employees, The Employees' Investment Plan of McGraw-Hill Broadcasting Company, Inc. and its Subsidiaries,

6. Registration Statement (Form S-8 No. 333-126465) pertaining to The Savings Incentive Plan of The McGraw-Hill Companies, Inc. and its Subsidiaries, The Employee Retirement Account Plan of The McGraw-Hill Companies, Inc. and its Subsidiaries, The Standard & Poor's Savings Incentive Plan for Represented Employees, and The Standard & Poor's Employee Retirement Account Plan for Represented Employees,

7. Registration Statement (Form S-8 No. 333-157570) pertaining to The 401(k) Savings and Profit Sharing Plan of The McGraw-Hill Companies, Inc. and its Subsidiaries, and The Standard & Poor's 401(k) Savings and Profit Sharing Plan for Represented Employees,

8. Registration Statement (Form S-8 No. 333-167885) pertaining to The Amended and Restated 2002 Stock Incentive Plan,

9. Registration Statement (Form S-8 No. 333-170902) pertaining to The 401(k) Savings and Profit Sharing Plan of The McGraw-Hill Companies, Inc. and its Subsidiaries, and The Standard & Poor's 401(k) Savings and Profit Sharing Plan for Represented Employees, and

10. Registration Statement (Form S-8 No. 333-207675) and related Prospectus of McGraw Hill Financial, Inc. for the registration of $400,000,000 2.500% Senior Notes due 2018, $700,000,000 3.300% Senior Notes due 2020, $700,000,000 4.000% Senior Notes due 2025 and $900,000,000 4.400% Senior Notes due 2026.

of our report dated November 3, 2015 relating to the unaudited consolidated interim financial statements of McGraw Hill Financial, Inc., which are included in its Form 10-Q for the quarter ended September 30, 2015.

/s/ERNST & YOUNG LLP

New York, New York

November 3, 2015

EX-31.1

Exhibit (31.1)

Certification pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended

I, Douglas L. Peterson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of McGraw Hill Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: November 3, 2015	/s/ Douglas L. Peterson
	Douglas L. Peterson
	President and Chief Executive Officer

EX-31.2

Exhibit (31.2)

Certification pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended

I, Jack F. Callahan, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of McGraw Hill Financial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: November 3, 2015	/s/ Jack F. Callahan, Jr.
	Jack F. Callahan, Jr.
	Executive Vice President and Chief Financial Officer

EX-32

Exhibit (32)

Certifications pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, each of the undersigned officers of McGraw Hill Financial, Inc. (the “Company”), does hereby certify, to such officer's knowledge, that:

This quarterly report on Form 10-Q of the Company for the quarter ended September 30, 2015 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

The information contained in this quarterly report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 3, 2015	/s/ Douglas L. Peterson
	Douglas L. Peterson
	President and Chief Executive Officer
Date: November 3, 2015	/s/ Jack F. Callahan, Jr.
	Jack F. Callahan, Jr.
	Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Debt (Narrative) (Details)		9 Months Ended
	Jun. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)	Aug. 18, 2015 USD ($)	May. 26, 2015 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Long-term debt fair value		$ 3,600,000,000			$ 900,000,000
4 Year Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,000,000,000.0
Term of debt instrument	4 years
Facility outstanding	$ 0
5 Year Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 1,200,000,000.0
Term of debt instrument	5 years
Commitment fee		0.125%
5 Year Facility | Minimum [Member]
Debt Instrument [Line Items]
Commitment fee		0.10%
5 Year Facility | Maximum [Member]
Debt Instrument [Line Items]
Commitment fee		0.20%
Indebtedness to cash flow		4
Senior notes
Debt Instrument [Line Items]
Debt issued			$ 2,000,000,000.0
Senior notes | 2.5% Senior Notes, due 2018 [Member]
Debt Instrument [Line Items]
Debt issued			$ 400,000,000
Interest rate		2.50%	2.50%		2.50%
Senior notes | 3.3% Senior Notes, due 2020 [Member]
Debt Instrument [Line Items]
Debt issued			$ 700,000,000
Interest rate		3.30%	3.30%		3.30%
Senior notes | 4.4% Senior Notes, due 2026 [Member]
Debt Instrument [Line Items]
Debt issued			$ 900,000,000
Interest rate		4.40%	4.40%		4.40%
Senior notes | 4.0% Senior Notes, due 2025 [Member]
Debt Instrument [Line Items]
Debt issued				$ 700,000,000
Interest rate		4.00%		4.00%	4.00%
Commercial paper
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 1,200,000,000
Facility outstanding		$ 0			$ 0

XML

Condensed Consolidating Financial Statements (Statement of Cash Flows) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	$ 281	$ 217	$ 992	$ 808
Less: discontinued operations, net			0	15
Income from continuing operations	281	215	992	793
Adjustments to reconcile income from continuing operations to cash (used for) provided by operating activities from continuing operations:
Depreciation			64	64
Amortization of intangibles			40	36
Provision for losses on accounts receivable			3	5
Deferred income taxes			166	(33)
Stock-based compensation			55	72
Other			139	106
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable			(44)	12
Prepaid and other current assets			(6)	(8)
Accounts payable and accrued expenses			(186)	(211)
Unearned revenue			18	7
Accrued legal and regulatory settlements			(1,624)	0
Other current liabilities			(53)	(65)
Net change in prepaid/accrued income taxes			140	93
Net change in other assets and liabilities			(60)	(51)
Cash (used for) provided by operating activities from continuing operations			(356)	820
Investing Activities:
Capital expenditures			(74)	(52)
Acquisitions, net of cash acquired			(2,393)	(65)
Proceeds from dispositions			14	83
Changes in short-term investments			(3)	(1)
Cash used for investing activities from continuing operations			(2,456)	(35)
Financing Activities:
Proceeds from issuance of senior notes, net			2,674	0
Dividends paid to shareholders			(274)	(245)
Dividends and other payments paid to noncontrolling interests			(67)	(31)
Contingent consideration payment			(5)	(11)
Purchase of CRISIL shares			(16)	0
Repurchase of treasury shares			(501)	(362)
Exercise of stock options			77	159
Excess tax benefits from share-based payments			39	89
Intercompany financing activities			0	0
Cash provided by (used for) financing activities from continuing operations			1,927	(401)
Effect of exchange rate changes on cash from continuing operations			(42)	(24)
Cash (used for) provided by continuing operations			(927)	360
Discontinued Operations:
Cash (used for) provided by operating activities			(129)	16
Cash provided by (used for) investing activities			0	0
Cash provided by (used for) financing activities			0	0
Cash (used for) provided by discontinued operations			(129)	16
Net change in cash and cash equivalents			(1,056)	376
Cash and cash equivalents at beginning of period			2,497	1,542
Cash and cash equivalents at end of period	1,441	1,918	1,441	1,918
Eliminations
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	(1,386)	(349)	(1,385)	(972)
Less: discontinued operations, net				0
Income from continuing operations		(349)		(972)
Adjustments to reconcile income from continuing operations to cash (used for) provided by operating activities from continuing operations:
Depreciation			0	0
Amortization of intangibles			0	0
Provision for losses on accounts receivable			0	0
Deferred income taxes			0	0
Stock-based compensation			0	0
Other			0	0
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable			0	0
Prepaid and other current assets			0	0
Accounts payable and accrued expenses			0	0
Unearned revenue			0	0
Accrued legal and regulatory settlements			0
Other current liabilities			0	0
Net change in prepaid/accrued income taxes			0	0
Net change in other assets and liabilities			0	0
Cash (used for) provided by operating activities from continuing operations			(1,385)	(972)
Investing Activities:
Capital expenditures			0	0
Acquisitions, net of cash acquired			0	0
Proceeds from dispositions			0	0
Changes in short-term investments			0	0
Cash used for investing activities from continuing operations			0	0
Financing Activities:
Proceeds from issuance of senior notes, net			0
Dividends paid to shareholders			0	0
Dividends and other payments paid to noncontrolling interests			0	0
Contingent consideration payment			0	0
Purchase of CRISIL shares			0
Repurchase of treasury shares			0	0
Exercise of stock options			0	0
Excess tax benefits from share-based payments			0	0
Intercompany financing activities			1,385	972
Cash provided by (used for) financing activities from continuing operations			1,385	972
Effect of exchange rate changes on cash from continuing operations			0	0
Cash (used for) provided by continuing operations			0	0
Discontinued Operations:
Cash (used for) provided by operating activities			0	0
Cash (used for) provided by discontinued operations			0	0
Net change in cash and cash equivalents			0	0
Cash and cash equivalents at beginning of period			0	0
Cash and cash equivalents at end of period	0	0	0	0
McGraw Hill Financial, Inc.
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	1,101	194	1,094	725
Less: discontinued operations, net				15
Income from continuing operations		192		710
Adjustments to reconcile income from continuing operations to cash (used for) provided by operating activities from continuing operations:
Depreciation			29	30
Amortization of intangibles			0	2
Provision for losses on accounts receivable			0	0
Deferred income taxes			(139)	(18)
Stock-based compensation			16	23
Other			107	0
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable			10	2
Prepaid and other current assets			(35)	(30)
Accounts payable and accrued expenses			(100)	(153)
Unearned revenue			10	(10)
Accrued legal and regulatory settlements			0
Other current liabilities			(19)	22
Net change in prepaid/accrued income taxes			166	99
Net change in other assets and liabilities			91	14
Cash (used for) provided by operating activities from continuing operations			1,230	691
Investing Activities:
Capital expenditures			(38)	(12)
Acquisitions, net of cash acquired			(2,241)	0
Proceeds from dispositions			0	44
Changes in short-term investments			0	0
Cash used for investing activities from continuing operations			(2,279)	32
Financing Activities:
Proceeds from issuance of senior notes, net			2,674
Dividends paid to shareholders			(274)	(245)
Dividends and other payments paid to noncontrolling interests			0	0
Contingent consideration payment			(5)	0
Purchase of CRISIL shares			0
Repurchase of treasury shares			(501)	(362)
Exercise of stock options			76	156
Excess tax benefits from share-based payments			39	89
Intercompany financing activities			(2,192)	(108)
Cash provided by (used for) financing activities from continuing operations			(183)	(470)
Effect of exchange rate changes on cash from continuing operations			(9)	(8)
Cash (used for) provided by continuing operations			(1,241)	245
Discontinued Operations:
Cash (used for) provided by operating activities			0	16
Cash (used for) provided by discontinued operations			0	16
Net change in cash and cash equivalents			(1,241)	261
Cash and cash equivalents at beginning of period			1,402	685
Cash and cash equivalents at end of period	161	946	161	946
Standard & Poor's Financial Services, LLC
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	409	208	762	612
Less: discontinued operations, net				0
Income from continuing operations		208		612
Adjustments to reconcile income from continuing operations to cash (used for) provided by operating activities from continuing operations:
Depreciation			14	13
Amortization of intangibles			0	0
Provision for losses on accounts receivable			(4)	(3)
Deferred income taxes			161	0
Stock-based compensation			16	23
Other			22	85
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable			16	67
Prepaid and other current assets			22	4
Accounts payable and accrued expenses			(76)	(141)
Unearned revenue			(20)	(14)
Accrued legal and regulatory settlements			(1,624)
Other current liabilities			(12)	(67)
Net change in prepaid/accrued income taxes			0	3
Net change in other assets and liabilities			4	2
Cash (used for) provided by operating activities from continuing operations			(719)	584
Investing Activities:
Capital expenditures			(7)	(11)
Acquisitions, net of cash acquired			0	0
Proceeds from dispositions			0	0
Changes in short-term investments			0	0
Cash used for investing activities from continuing operations			(7)	(11)
Financing Activities:
Proceeds from issuance of senior notes, net			0
Dividends paid to shareholders			0	0
Dividends and other payments paid to noncontrolling interests			0	0
Contingent consideration payment			0	0
Purchase of CRISIL shares			0
Repurchase of treasury shares			0	0
Exercise of stock options			0	0
Excess tax benefits from share-based payments			0	0
Intercompany financing activities			727	(573)
Cash provided by (used for) financing activities from continuing operations			727	(573)
Effect of exchange rate changes on cash from continuing operations			0	0
Cash (used for) provided by continuing operations			1	0
Discontinued Operations:
Cash (used for) provided by operating activities			0	0
Cash (used for) provided by discontinued operations			0	0
Net change in cash and cash equivalents			1	0
Cash and cash equivalents at beginning of period			0	0
Cash and cash equivalents at end of period	1	0	1	0
Non-Guarantor Subsidiaries
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	157	164	521	443
Less: discontinued operations, net				0
Income from continuing operations		164		443
Adjustments to reconcile income from continuing operations to cash (used for) provided by operating activities from continuing operations:
Depreciation			21	21
Amortization of intangibles			40	34
Provision for losses on accounts receivable			7	8
Deferred income taxes			144	(15)
Stock-based compensation			23	26
Other			10	21
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable			(70)	(57)
Prepaid and other current assets			7	18
Accounts payable and accrued expenses			(10)	83
Unearned revenue			28	31
Accrued legal and regulatory settlements			0
Other current liabilities			(22)	(20)
Net change in prepaid/accrued income taxes			(26)	(9)
Net change in other assets and liabilities			(155)	(67)
Cash (used for) provided by operating activities from continuing operations			518	517
Investing Activities:
Capital expenditures			(29)	(29)
Acquisitions, net of cash acquired			(152)	(65)
Proceeds from dispositions			14	39
Changes in short-term investments			(3)	(1)
Cash used for investing activities from continuing operations			(170)	(56)
Financing Activities:
Proceeds from issuance of senior notes, net			0
Dividends paid to shareholders			0	0
Dividends and other payments paid to noncontrolling interests			(67)	(31)
Contingent consideration payment			0	(11)
Purchase of CRISIL shares			(16)
Repurchase of treasury shares			0	0
Exercise of stock options			1	3
Excess tax benefits from share-based payments			0	0
Intercompany financing activities			80	(291)
Cash provided by (used for) financing activities from continuing operations			(2)	(330)
Effect of exchange rate changes on cash from continuing operations			(33)	(16)
Cash (used for) provided by continuing operations			313	115
Discontinued Operations:
Cash (used for) provided by operating activities			(129)	0
Cash (used for) provided by discontinued operations			(129)	0
Net change in cash and cash equivalents			184	115
Cash and cash equivalents at beginning of period			1,095	857
Cash and cash equivalents at end of period	$ 1,279	$ 972	$ 1,279	$ 972

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Segment and Related Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) Segment	Sep. 30, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments (in segments) | Segment			4
Revenue	$ 1,324	$ 1,263	$ 3,938	$ 3,761
Operating Profit	410	366	1,493	1,261
S&P Ratings
Segment Reporting Information [Line Items]
Revenue	587	604	1,851	1,837
Operating Profit	194	183	846	730
Insurance recoveries	86		40
Legal settlement charge		60		60
S&P Capital IQ and SNL
Segment Reporting Information [Line Items]
Revenue	356	311	1,000	919
Operating Profit	53	64	178	172
S&P DJ Indices
Segment Reporting Information [Line Items]
Revenue	156	143	446	412
Operating Profit	106	86	297	260
C&C
Segment Reporting Information [Line Items]
Revenue	248	227	707	657
Operating Profit	93	71	265	217
Intersegment elimination
Segment Reporting Information [Line Items]
Revenue	(23)	(22)	(66)	(64)
Operating Profit	0	0	0	0
Total
Segment Reporting Information [Line Items]
Revenue	1,324	1,263	3,938	3,761
Operating Profit	446	404	1,586	1,379
Unallocated expense
Segment Reporting Information [Line Items]
Revenue	0	0	0	0
Operating Profit	$ (36)	$ (38)	(93)	$ (118)
Cash proceeds from sale of business			$ 11

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Acquisitions and Divestitures (Acquisitions) (Narrative) (Details) company in Thousands, $ in Millions		1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 01, 2015 USD ($) sector	Mar. 31, 2014 country company	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Amortization of intangibles			$ 17	$ 12	$ 40	$ 36
Minimum Number of Companies Represented in Broad Market Indices | company		11
Minimum Number of Countries Represented in Broad Market Indices | country		52
Contingent consideration payment					5	$ 11
SNL Financial LC [Member]
Business Acquisition [Line Items]
Consideration transfered	$ 2,225
Number of sectors in global economy that acquiree serves | sector	5
Acquisition-related expenses			32		32
Amortization of intangibles			$ 4		$ 4
SNL Financial LC [Member] | Minimum [Member]
Business Acquisition [Line Items]
Useful life of intangible assets	10 years
SNL Financial LC [Member] | Maximum [Member]
Business Acquisition [Line Items]
Useful life of intangible assets	18 years
Scenario, Forecast [Member] | SNL Financial LC [Member]
Business Acquisition [Line Items]
Amortization expense, year one							$ 53
Amortization expense, year two							53
Amortization expense, year three							53
Amortization expense, year four							53
Amortization expense, year five							$ 53

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Debt (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Schedule of debt

(in millions)	September 30, 2015		December 31, 2014
5.9% Senior Notes, due 2017 1	$	400	400
2.5% Senior Notes, due 2018 2	399		—
3.3% Senior Notes, due 2020 3	699		—
4.0% Senior Notes, due 2025 4	695		—
4.4% Senior Notes, due 2026 5	897		—
6.55% Senior Notes, due 2037 6	399		399
Long-term debt	$	3,489	$	799

1 Interest payments are due semiannually on April 15 and October 15, and, as of September 30, 2015, the unamortized debt discount is less than $1 million.

2 Interest payments are due semiannually on February 15 and August 15, beginning on February15, 2016, and, as of September 30, 2015, the unamortized debt discount is less than $1 million.

3 Interest payments are due semiannually on February 14 and August 14, beginning on February14, 2016, and, as of September 30, 2015, the unamortized debt discount is approximately $1 million.

4 Interest payments are due semiannually on June 15 and December 15, beginning on December15, 2015, and, as of September 30, 2015, the unamortized debt discount is approximately $5 million.

5 Interest payments are due semiannually on February 15 and August 15, beginning on February15, 2016, and, as of September 30, 2015, the unamortized debt discount is approximately $3 million.

6 Interest payments are due semiannually on May 15 and November 15, and, as of September 30, 2015, the unamortized debt discount is approximately $1 million.

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Related Party Transactions (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			3 Months Ended			9 Months Ended
	Jul. 31, 2014	Jun. 25, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Related Party Transaction [Line Items]
Total number of shares purchased (in shares)			2.3	0.0		4.9	4.4
Total cash utilized						$ 505
Average price paid per share (in dollars per share)			$ 99.01	$ 0.00		$ 102.01	$ 79.06
Other (Income) Loss [Member]
Related Party Transaction [Line Items]
Non-cash impairment charge				$ 6	$ 6
Harold W. McGraw III [Member]
Related Party Transaction [Line Items]
Transaction amount	$ 20
Total number of shares purchased (in shares)		0.5
Repurchase discount		0.35%
Total cash utilized		$ 41
Average price paid per share (in dollars per share)		$ 82.66
CME Group | S&P DJ Indices
Related Party Transaction [Line Items]
Revenues earned under license agreement			$ 19			$ 47
Noncontrolling interest ownership by noncontrolling owners			27.00%			27.00%

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Equity (Schedule of stock repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 25, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares purchased (in shares)			2.3	0.0	4.9	4.4
Average price paid per share (in dollars per share)			$ 99.01	$ 0.00	$ 102.01	$ 79.06
Total cash utilized					$ 505
Total MHFI Equity
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total cash utilized			$ 227	$ 0	$ 501	$ 352
Harold W. McGraw III [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares purchased (in shares)	0.5
Repurchase discount	0.35%
Average price paid per share (in dollars per share)	$ 82.66
Total cash utilized	$ 41
2013 Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares purchased (in shares)		0.1
Total cash utilized		$ 10				$ 362

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Effective income tax rate	25.90%	39.20%	30.70%	35.10%
Unrecognized tax benefits	$ 122		$ 122		$ 118
Accrued interest and penalties associated with uncertain tax positions	$ 30		$ 30		$ 23

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Condensed Consolidating Financial Statements (Statement of Income) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Income Statements, Captions [Line Items]
Revenue	$ 1,324	$ 1,263	$ 3,938	$ 3,761
Expenses:
Operating-related expenses	407	402	1,218	1,205
Selling and general expenses	470	462	1,134	1,186
Depreciation	20	21	64	64
Amortization of intangibles	17	12	40	36
Total expenses	914	897	2,456	2,491
Other (income) loss	0	0	(11)	9
Operating profit	410	366	1,493	1,261
Interest expense, net	30	12	62	40
Non-operating intercompany transactions	0	0	0	0
Income from continuing operations before taxes on income	380	354	1,431	1,221
Provision for taxes on income	99	139	439	428
Equity in net income (loss) income of subsidiaries	0	0	0	0
Income from continuing operations	281	215	992	793
Income from discontinued operations, net of tax	0	2	0	15
Net income	281	217	992	808
Less: net income from continuing operations attributable to noncontrolling interests	(29)	(27)	(83)	(77)
Net income	252	190	909	731
Comprehensive income	240	150	953	723
Eliminations
Condensed Income Statements, Captions [Line Items]
Revenue	(29)	(28)	(85)	(86)
Expenses:
Operating-related expenses	(29)	(28)	(85)	(86)
Selling and general expenses	0	0	0	0
Depreciation	0	0	0	0
Amortization of intangibles	0	0	0	0
Total expenses	(29)	(28)	(85)	(86)
Other (income) loss			0	0
Operating profit	0	0	0	0
Interest expense, net	0	0	0	0
Non-operating intercompany transactions	0	0	0	0
Income from continuing operations before taxes on income	0	0	0	0
Provision for taxes on income	0	0	0	0
Equity in net income (loss) income of subsidiaries	(1,386)	(349)	(1,385)	(972)
Income from continuing operations		(349)		(972)
Income from discontinued operations, net of tax		0		0
Net income	(1,386)	(349)	(1,385)	(972)
Less: net income from continuing operations attributable to noncontrolling interests	(29)	(27)	(83)	(77)
Net income	(1,415)	(376)	(1,468)	(1,049)
Comprehensive income	(1,386)	(353)	(1,390)	(981)
McGraw Hill Financial, Inc.
Condensed Income Statements, Captions [Line Items]
Revenue	165	149	481	443
Expenses:
Operating-related expenses	20	19	64	59
Selling and general expenses	206	147	282	241
Depreciation	9	10	29	30
Amortization of intangibles	0	1	0	2
Total expenses	235	177	375	332
Other (income) loss			0	3
Operating profit	(70)	(28)	106	108
Interest expense, net	32	15	69	46
Non-operating intercompany transactions	51	56	180	130
Income from continuing operations before taxes on income	(153)	(99)	(143)	(68)
Provision for taxes on income	(74)	(5)	(57)	8
Equity in net income (loss) income of subsidiaries	1,180	286	1,180	786
Income from continuing operations		192		710
Income from discontinued operations, net of tax		2		15
Net income	1,101	194	1,094	725
Less: net income from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income	1,101	194	1,094	725
Comprehensive income	1,095	186	1,102	701
Standard & Poor's Financial Services, LLC
Condensed Income Statements, Captions [Line Items]
Revenue	523	507	1,640	1,535
Expenses:
Operating-related expenses	99	142	396	450
Selling and general expenses	69	150	243	394
Depreciation	4	4	14	13
Amortization of intangibles	0	0	0	0
Total expenses	172	296	653	857
Other (income) loss			0	0
Operating profit	351	211	987	678
Interest expense, net	0	0	0	0
Non-operating intercompany transactions	48	13	139	27
Income from continuing operations before taxes on income	303	198	848	651
Provision for taxes on income	100	53	291	225
Equity in net income (loss) income of subsidiaries	206	63	205	186
Income from continuing operations		208		612
Income from discontinued operations, net of tax		0		0
Net income	409	208	762	612
Less: net income from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income	409	208	762	612
Comprehensive income	408	208	761	588
Non-Guarantor Subsidiaries
Condensed Income Statements, Captions [Line Items]
Revenue	665	635	1,902	1,869
Expenses:
Operating-related expenses	317	269	843	782
Selling and general expenses	195	165	609	551
Depreciation	7	7	21	21
Amortization of intangibles	17	11	40	34
Total expenses	536	452	1,513	1,388
Other (income) loss			(11)	6
Operating profit	129	183	400	475
Interest expense, net	(2)	(3)	(7)	(6)
Non-operating intercompany transactions	(99)	(69)	(319)	(157)
Income from continuing operations before taxes on income	230	255	726	638
Provision for taxes on income	73	91	205	195
Equity in net income (loss) income of subsidiaries	0	0	0	0
Income from continuing operations		164		443
Income from discontinued operations, net of tax		0		0
Net income	157	164	521	443
Less: net income from continuing operations attributable to noncontrolling interests	0	0	0	0
Net income	157	164	521	443
Comprehensive income	$ 123	$ 109	$ 480	$ 415

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Restructuring (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015 USD ($) position	Dec. 31, 2014 USD ($) position
2015 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Workforce reduction (in positions) | position	260
Initial Charge Recorded	$ 30
Restructuring charges paid	6
2015 Restructuring Plan | S&P Ratings
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	11
Ending Reserve Balance	10
2015 Restructuring Plan | S&P Capital IQ and SNL
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	13
Ending Reserve Balance	9
2015 Restructuring Plan | C&C
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	3
Ending Reserve Balance	2
2015 Restructuring Plan | Corporate
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	3
Ending Reserve Balance	3
2015 Restructuring Plan | Total
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	30
Ending Reserve Balance	24
2014 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Workforce reduction (in positions) | position		590
Restructuring charges paid	48
2014 Restructuring Plan | S&P Ratings
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	45
Ending Reserve Balance	15
2014 Restructuring Plan | S&P Capital IQ and SNL
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	9
Ending Reserve Balance	2
2014 Restructuring Plan | C&C
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	16
Ending Reserve Balance	4
2014 Restructuring Plan | C&C | McGraw Hill Construction
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	3
Ending Reserve Balance	1
2014 Restructuring Plan | Corporate
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	16
Ending Reserve Balance	9
2014 Restructuring Plan | Total
Restructuring Cost and Reserve [Line Items]
Initial Charge Recorded	86
Ending Reserve Balance	$ 30	$ 78

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Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2015

Acquisitions and Divestitures [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Acquisitions

Acquisitions by segment included:

S&P Capital IQ and SNL

• On September 1, 2015 (the "Acquisition Date"), we acquired SNL Financial LC ("SNL") for $2.225 billion in cash, subject to working capital adjustments. SNL's results of operations have been included in our consolidated statements of income subsequent to the Acquisition Date. SNL is a global provider of news, data, and analytical tools to five sectors in the global economy: financial services, real estate, energy, media & communications, and metals & mining. SNL delivers information through its suite of web, mobile and direct data feed platforms that helps clients, including investment and commercial banks, investors, corporations, and regulators make decisions, improve efficiency, and manage risk.

Acquisition-Related Expenses

During the three and nine months ended September 30, 2015, the Company incurred approximately $32 million of acquisition-related costs related to the acquisition of SNL. These expenses are included in selling and general expenses in our consolidated statements of income.

Preliminary Allocation of Purchase Price

Our acquisition of SNL was accounted for using the purchase method. Under the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles. The goodwill recognized is largely attributable to anticipated operational synergies and growth opportunities as a result of the acquisition. The intangible assets, excluding goodwill and indefinite-lived intangibles, will be amortized over their anticipated useful lives between 10 and 18 years which will be determined when we finalize our purchase price allocation. The goodwill is expected to be deductible for tax purposes.

The following table presents the the preliminary allocation of purchase price to the assets and liabilities of SNL as a result of the acquisition.

(in millions)
Current assets	$	22
Property, plant and equipment	19
Goodwill	1,558
Other intangible assets, net:
Databases and software	421
Customer relationships	162
Tradenames	185
Other intangibles	4
Other intangible assets, net	772
Other non-current assets	3
Total assets acquired	2,374
Current liabilities	(19		)
Unearned revenue	(118		)
Other non-current liabilities	(6		)
Total liabilities acquired	(143		)
Net assets acquired	$	2,231

The Company has performed a preliminary valuation analysis of the fair market value of assets and liabilities of the SNL Financial business.  The final purchase price allocation will be determined when the Company has completed the detailed valuations and necessary calculations. The final allocation could differ materially from the preliminary allocation. The final allocation may include (1) changes in fair values of property, plant and equipment, (2) changes in allocations to intangible assets as well as goodwill and (3) other changes to assets and liabilities.

The projected incremental amortization expense for intangible assets beginning in 2016 related to SNL over each of the next five years ended December 31, 2020 is approximately $53 million. Amortization expense related to SNL for the three and nine months ended September 30, 2015 was approximately $4 million.

Supplemental Pro Forma Information

Supplemental information on an unaudited pro forma basis is presented below for the nine months ended September 30, 2015 and 2014 as if the acquisition of SNL occurred on January 1, 2014. The pro forma financial information is presented for comparative purposes only, based on estimates and assumptions, which the Company believes to be reasonable but not necessarily indicative of the consolidated financial position or results of operations in future periods or the results that actually would have been realized had this acquisition been completed at the beginning of 2015. The unaudited pro forma information includes non-recurring transaction related costs, intangible asset charges and incremental borrowing costs as a result of the acquisition, net of related tax, estimated using the Company's effective tax rate for continuing operations for the periods presented.

(in millions)	Nine Months Ended September 30,
	2015		2014
Pro forma revenue	$	4,124	$	3,927
Pro forma net income from continuing operations	$	954	$	746

C&C

• In July of 2015, we acquired the entire issued share capital of Petromedia Ltd and its operating subsidiaries (“Petromedia”), an independent provider of data, intelligence, news and tools to the global fuels market that offers a suite of products that provides clients with actionable data and intelligence that enable informed decisions, minimize risk and increase efficiency. We accounted for the acquisition of Petromedia using the purchase method of accounting. The acquisition of Petromedia was not material to our consolidated financial statements.

• In July of 2015, we acquired National Automobile Dealers Association's Used Car Guide (“UCG”), a leading provider of U.S. retail, trade-in and auction used-vehicle values. The acquisition of UCG expanded our analytical and modeling capabilities while deepening our presence in auto finance and auto insurance, and enriching retail solutions. We accounted for the acquisition of UCG using the purchase method of accounting. The acquisition of UCG was not material to our consolidated financial statements.

• In July of 2014, we acquired Eclipse Energy Group AS and its operating subsidiaries (“Eclipse”), which provides a comprehensive suite of data and analytics products on the European natural gas and liquefied natural gas markets as well as a range of advisory services leveraging Eclipse’s knowledge base, data capabilities, and modeling suite of products. This transaction complements our North American natural gas capabilities, which we obtained from our Bentek Energy LLC acquisition in 2011. We accounted for the acquisition of Eclipse using the purchase method of accounting. The acquisition of Eclipse was not material to our consolidated financial statements.

S&P DJ Indices

• In March of 2014, we acquired the intellectual property of a family of Broad Market Indices (“BMI”) from Citigroup Global Markets Inc. The BMI provides a broad measure of the global equities markets which includes approximately 11,000 companies in more than 52 countries covering both developed and emerging markets. We accounted for the acquisition of the intellectual property on a cost basis and it was not material to our consolidated financial statements.

Following CRISIL's acquisition of Coalition Development Ltd. ("Coalition") that occurred in July of 2012, we made a contingent purchase price payment in the first nine months of 2014 for $11 million that has been reflected in the consolidated statement of cash flows as a financing activity.

Divestitures - Continuing Operations

During the nine months ended September 30, 2015, we recorded a pre-tax gain of $11 million within other (income) loss in the consolidated statement of income related to the sale of our interest in a legacy McGraw Hill Construction investment.

On July 31, 2014, we completed the sale of the Company's aircraft to Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company for a purchase price of $20 million. During the second quarter of 2014, we recorded a non-cash impairment charge of $6 million within other (income) loss in our consolidated statement of income as a result of the pending sale. See Note 13 — Related Party Transactions for further information.

On June 30, 2014, we completed the sale of our data center to Quality Technology Services, LLC which owns, operates and manages data centers. Net proceeds from the sale of $58 million were received in July of 2014. The sale includes all of the facilities and equipment on the south campus of our East Windsor, New Jersey location, inclusive of the rights and obligations associated with an adjoining solar power field. The sale resulted in an expense of $3 million recorded within other (income) loss in our consolidated statement of income, which is in addition to the non-cash impairment charge we recorded in the fourth quarter of 2013.

Divestitures - Discontinued Operations

On November 3, 2014, we completed the sale of McGraw Hill Construction, which has historically been part of our C&C segment, to Symphony Technology Group for $320 million in cash. Accordingly, the results of operations for the three and nine months ended September 30, 2014, have been reclassified to reflect the business as a discontinued operation.

The key components of income from discontinued operations for the periods ended September 30, 2014 consist of the following:

(in millions)	Three Months		Nine Months
Revenue	$	40	$	124
Expenses	37		100
Operating income	3		24
Provision for taxes on income	1		9
Income from discontinued operations, net of tax	$	2	$	15

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Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 25, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 04, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury Stock, Value, Acquired, Cost Method					$ 505
Treasury Stock Acquired, Average Cost Per Share			$ 99.01	$ 0.00	$ 102.01	$ 79.06
Interest in joint venture minimum percentage					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]
Treasury Stock, Value, Acquired, Cost Method		$ 10				$ 362
Stock repurchase program number of shares authorized to be repurchased (in shares)							50,000,000
Maximum number of shares authorized for repurchase under stock repurchase plan as percentage of outstanding common stock							18.00%
Remaining shares available under repurchase program (in shares)			40,600,000		40,600,000
Harold W. McGraw III [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury Stock, Value, Acquired, Cost Method	$ 41
Treasury Stock Acquired, Average Cost Per Share	$ 82.66

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2015

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 September 30, 2015 by segment is as follows:

	2015 Restructuring Plan				2014 Restructuring Plan
(in millions)	Initial Charge Recorded		Ending Reserve Balance		Initial Charge Recorded		Ending Reserve Balance
S&P Ratings	$	11	$	10	$	45	$	15
S&P Capital IQ and SNL	13		9		9		2
C&C 1	3		2		16		4
Corporate	3		3		16		9
Total	$	30	$	24	$	86	$	30

¹  The 2014 restructuring plan included an initial charge of $3 million and an ending reserve balance of less than a $1 million for McGraw Hill Construction.

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Schedule of calculation for basic and diluted EPS

The calculation for basic and diluted EPS for the periods ended September 30 is as follows:

(in millions, except per share amounts)	Three Months				Nine Months
	2015		2014		2015		2014
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	252	$	188	$	909	$	716
Income from discontinued operations	—		2		—		15
Net income	$	252	$	190	$	909	$	731
Basic weighted-average number of common shares outstanding	271.3		270.9		272.6		271.4
Effect of stock options and other dilutive securities	3.1		4.5		2.8		4.8
Diluted weighted-average number of common shares outstanding	274.4		275.4		275.4		276.2
Earnings per share attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations:
Basic	$	0.93	$	0.69	$	3.33	$	2.64
Diluted	$	0.92	$	0.68	$	3.30	$	2.59
Income from discontinued operations:
Basic	$	—	$	0.01	$	—	$	0.05
Diluted	$	—	$	0.01	$	—	$	0.05
Net income:
Basic	$	0.93	$	0.70	$	3.33	$	2.69
Diluted	$	0.92	$	0.69	$	3.30	$	2.64

XML

Equity (Schedule of redeemable noncontrolling interest) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($)
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance as of December 31, 2014	$ 810
Net income attributable to noncontrolling interest	76
Distributions payable to noncontrolling interest	(69)
Redemption value adjustment	(7)
Balance as of September 30, 2015	$ 810

XML

Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Schedule of operating results by segment

A summary of operating results by segment for the periods ended September 30 is as follows:

Three Months	2015						2014
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings 1	$	587		$	194		$	604		$	183
S&P Capital IQ and SNL	356			53			311			64
S&P DJ Indices	156			106			143			86
C&C	248			93			227			71
Intersegment elimination 2	(23		)	—			(22		)	—
Total operating segments	1,324			446			1,263			404
Unallocated expense 3	—			(36		)	—			(38		)
Total	$	1,324		$	410		$	1,263		$	366

Nine Months	2015						2014
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings 1	$	1,851		$	846		$	1,837		$	730
S&P Capital IQ and SNL	1,000			178			919			172
S&P DJ Indices	446			297			412			260
C&C	707			265			657			217
Intersegment elimination 2	(66		)	—			(64		)	—
Total operating segments	3,938			1,586			3,761			1,379
Unallocated expense 3	—			(93		)	—			(118		)
Total	$	3,938		$	1,493		$	3,761		$	1,261

¹  Operating profit for the three and nine months ended September 30, 2015 includes legal settlement charges partially offset by a benefit related to legal settlement insurance recoveries of $86 million and $40 million, respectively. Operating profit for the three and nine months ended September 30, 2014 includes legal settlement charges of $60 million.

²  Revenue for S&P Ratings and expenses for S&P Capital IQ and SNL include an intersegment royalty charged to S&P Capital IQ and SNL for the rights to use and distribute content and data developed by S&P Ratings.

³  The nine months ended September 30, 2015 include a gain of $11 million related to the sale of our interest in a legacy McGraw Hill Construction investment. See Note 2 —Acquisitions and Divestitures for additional information.

XML

Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Statement of Income

	Statement of Income
	Three Months Ended September 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	$	165		$	523	$	665		$	(29	)	$	1,324
Expenses:
Operating-related expenses	20			99		317			(29		)	407
Selling and general expenses	206			69		195			—			470
Depreciation	9			4		7			—			20
Amortization of intangibles	—			—		17			—			17
Total expenses	235			172		536			(29		)	914
Operating (loss) profit	(70		)	351		129			—			410
Interest expense (income), net	32			—		(2		)	—			30
Non-operating intercompany transactions	51			48		(99		)	—			—
(Loss) income from continuing operations before taxes on income	(153		)	303		230			—			380
(Benefit) provision for taxes on income	(74		)	100		73			—			99
Equity in net income of subsidiaries	1,180			206		—			(1,386		)	—
Net income	$	1,101		$	409	$	157		$	(1,386	)	$	281
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(29		)	(29		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,101		$	409	$	157		$	(1,415	)	$	252
Comprehensive income	$	1,095		$	408	$	123		$	(1,386	)	$	240

	Statement of Income
	Nine Months Ended September 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	$	481		$	1,640	$	1,902		$	(85	)	$	3,938
Expenses:
Operating-related expenses	64			396		843			(85		)	1,218
Selling and general expenses	282			243		609			—			1,134
Depreciation	29			14		21			—			64
Amortization of intangibles	—			—		40			—			40
Total expenses	375			653		1,513			(85		)	2,456
Other income	—			—		(11		)	—			(11		)
Operating profit	106			987		400			—			1,493
Interest expense (income), net	69			—		(7		)	—			62
Non-operating intercompany transactions	180			139		(319		)	—			—
(Loss) income from continuing operations before taxes on income	(143		)	848		726			—			1,431
(Benefit) provision for taxes on income	(57		)	291		205			—			439
Equity in net income of subsidiaries	1,180			205		—			(1,385		)	—
Net income	$	1,094		$	762	$	521		$	(1,385	)	$	992
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(83		)	(83		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,094		$	762	$	521		$	(1,468	)	$	909
Comprehensive income	$	1,102		$	761	$	480		$	(1,390	)	$	953

	Statement of Income
	Three Months Ended September 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	$	149		$	507	$	635		$	(28	)	$	1,263
Expenses:
Operating-related expenses	19			142		269			(28		)	402
Selling and general expenses	147			150		165			—			462
Depreciation	10			4		7			—			21
Amortization of intangibles	1			—		11			—			12
Total expenses	177			296		452			(28		)	897
Operating (loss) profit	(28		)	211		183			—			366
Interest expense (income), net	15			—		(3		)	—			12
Non-operating intercompany transactions	56			13		(69		)	—			—
(Loss) income from continuing operations before taxes on income	(99		)	198		255			—			354
(Benefit) provision for taxes on income	(5		)	53		91			—			139
Equity in net income of subsidiaries	286			63		—			(349		)	—
Income from continuing operations	192			208		164			(349		)	215
Income from discontinued operations, net of tax	2			—		—			—			2
Net income	$	194		$	208	$	164		$	(349	)	$	217
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(27		)	(27		)
Net income attributable to McGraw Hill Financial, Inc.	$	194		$	208	$	164		$	(376	)	$	190
Comprehensive income	$	186		$	208	$	109		$	(353	)	$	150

	Statement of Income
	Nine Months Ended September 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	$	443		$	1,535	$	1,869		$	(86	)	$	3,761
Expenses:
Operating-related expenses	59			450		782			(86		)	1,205
Selling and general expenses	241			394		551			—			1,186
Depreciation	30			13		21			—			64
Amortization of intangibles	2			—		34			—			36
Total expenses	332			857		1,388			(86		)	2,491
Other loss	3			—		6			—			9
Operating profit	108			678		475			—			1,261
Interest expense (income), net	46			—		(6		)	—			40
Non-operating intercompany transactions	130			27		(157		)	—			—
(Loss) income from continuing operations before taxes on income	(68		)	651		638			—			1,221
Provision for taxes on income	8			225		195			—			428
Equity in net income of subsidiaries	786			186		—			(972		)	—
Income from continuing operations	710			612		443			(972		)	793
Income from discontinued operations, net of tax	15			—		—			—			15
Net income	$	725		$	612	$	443		$	(972	)	$	808
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(77		)	(77		)
Net income attributable to McGraw Hill Financial, Inc.	$	725		$	612	$	443		$	(1,049	)	$	731
Comprehensive income	$	701		$	588	$	415		$	(981	)	$	723

Balance Sheet

	Balance Sheet
	September 30, 2015
(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 cash equivalents	$	161		$	1		$	1,279		$	—		$	1,441
Accounts receivable, net of allowance for doubtful accounts	109			282			595			—			986
Intercompany receivable	313			1,480			1,124			(2,917		)	—
Deferred income taxes	72			172			(41		)	—			203
Prepaid and other current assets	93			4			109			—			206
Total current assets	748			1,939			3,066			(2,917		)	2,836
Property and equipment, net of accumulated depreciation	124			3			110			—			237
Goodwill	15			41			2,903			9			2,968
Other intangible assets, net	—			—			1,887			(6		)	1,881
Asset for pension benefits	—			—			61			—			61
Investments in subsidiaries	4,547			671			7,280			(12,498		)	—
Intercompany loans receivable	17			361			1,817			(2,195		)	—
Other non-current assets	69			19			92			—			180
Total assets	$	5,520		$	3,034		$	17,216		$	(17,607	)	$	8,163
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	69		$	42		$	100		$	—		$	211
Intercompany Payable	1,671			593			568			(2,832		)	—
Accrued compensation and contributions to retirement plans	108			73			139			—			320
Income taxes currently payable	16			—			43			—			59
Unearned revenue	269			565			619			—			1,453
Accrued legal and regulatory settlements	—			104			—			—			104
Other current liabilities	267			(134		)	225			—			358
Total current liabilities	2,400			1,243			1,694			(2,832		)	2,505
Long-term debt	3,489			—			—			—			3,489
Intercompany loans payable	108			(3		)	2,178			(2,283		)	—
Pension and postretirement benefits	218			—			60			—			278
Deferred income taxes	(224		)	51			263			—			90
Other non-current liabilities	217			12			59			(1		)	287
Total liabilities	6,208			1,303			4,254			(5,116		)	6,649
Redeemable noncontrolling interest	—			—			—			810			810
Equity:
Common stock	412			—			2,321			(2,321		)	412
Additional paid-in capital	(197		)	1,171			10,156			(10,689		)	441
Retained income	6,641			560			784			(393		)	7,592
Accumulated other comprehensive loss	(310		)	—			(279		)	36			(553		)
Less: common stock in treasury	(7,234		)	—			(20		)	20			(7,234		)
Total equity - controlling interests	(688		)	1,731			12,962			(13,347		)	658
Total equity - noncontrolling interests	—			—			—			46			46
Total equity	(688		)	1,731			12,962			(13,301		)	704
Total liabilities and equity	$	5,520		$	3,034		$	17,216		$	(17,607	)	$	8,163

	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 cash 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

Statement of Cash Flows

Condensed Consolidating Financial Statements

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 due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026.

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 McGraw Hill Financial, Inc., Standard & Poor's Financial Services LLC, and the Non-Guarantor Subsidiaries of McGraw Hill Financial, 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 September 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	$	165		$	523	$	665		$	(29	)	$	1,324
Expenses:
Operating-related expenses	20			99		317			(29		)	407
Selling and general expenses	206			69		195			—			470
Depreciation	9			4		7			—			20
Amortization of intangibles	—			—		17			—			17
Total expenses	235			172		536			(29		)	914
Operating (loss) profit	(70		)	351		129			—			410
Interest expense (income), net	32			—		(2		)	—			30
Non-operating intercompany transactions	51			48		(99		)	—			—
(Loss) income from continuing operations before taxes on income	(153		)	303		230			—			380
(Benefit) provision for taxes on income	(74		)	100		73			—			99
Equity in net income of subsidiaries	1,180			206		—			(1,386		)	—
Net income	$	1,101		$	409	$	157		$	(1,386	)	$	281
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(29		)	(29		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,101		$	409	$	157		$	(1,415	)	$	252
Comprehensive income	$	1,095		$	408	$	123		$	(1,386	)	$	240

	Statement of Income
	Nine Months Ended September 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	$	481		$	1,640	$	1,902		$	(85	)	$	3,938
Expenses:
Operating-related expenses	64			396		843			(85		)	1,218
Selling and general expenses	282			243		609			—			1,134
Depreciation	29			14		21			—			64
Amortization of intangibles	—			—		40			—			40
Total expenses	375			653		1,513			(85		)	2,456
Other income	—			—		(11		)	—			(11		)
Operating profit	106			987		400			—			1,493
Interest expense (income), net	69			—		(7		)	—			62
Non-operating intercompany transactions	180			139		(319		)	—			—
(Loss) income from continuing operations before taxes on income	(143		)	848		726			—			1,431
(Benefit) provision for taxes on income	(57		)	291		205			—			439
Equity in net income of subsidiaries	1,180			205		—			(1,385		)	—
Net income	$	1,094		$	762	$	521		$	(1,385	)	$	992
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(83		)	(83		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,094		$	762	$	521		$	(1,468	)	$	909
Comprehensive income	$	1,102		$	761	$	480		$	(1,390	)	$	953

	Statement of Income
	Three Months Ended September 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	$	149		$	507	$	635		$	(28	)	$	1,263
Expenses:
Operating-related expenses	19			142		269			(28		)	402
Selling and general expenses	147			150		165			—			462
Depreciation	10			4		7			—			21
Amortization of intangibles	1			—		11			—			12
Total expenses	177			296		452			(28		)	897
Operating (loss) profit	(28		)	211		183			—			366
Interest expense (income), net	15			—		(3		)	—			12
Non-operating intercompany transactions	56			13		(69		)	—			—
(Loss) income from continuing operations before taxes on income	(99		)	198		255			—			354
(Benefit) provision for taxes on income	(5		)	53		91			—			139
Equity in net income of subsidiaries	286			63		—			(349		)	—
Income from continuing operations	192			208		164			(349		)	215
Income from discontinued operations, net of tax	2			—		—			—			2
Net income	$	194		$	208	$	164		$	(349	)	$	217
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(27		)	(27		)
Net income attributable to McGraw Hill Financial, Inc.	$	194		$	208	$	164		$	(376	)	$	190
Comprehensive income	$	186		$	208	$	109		$	(353	)	$	150

	Statement of Income
	Nine Months Ended September 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	$	443		$	1,535	$	1,869		$	(86	)	$	3,761
Expenses:
Operating-related expenses	59			450		782			(86		)	1,205
Selling and general expenses	241			394		551			—			1,186
Depreciation	30			13		21			—			64
Amortization of intangibles	2			—		34			—			36
Total expenses	332			857		1,388			(86		)	2,491
Other loss	3			—		6			—			9
Operating profit	108			678		475			—			1,261
Interest expense (income), net	46			—		(6		)	—			40
Non-operating intercompany transactions	130			27		(157		)	—			—
(Loss) income from continuing operations before taxes on income	(68		)	651		638			—			1,221
Provision for taxes on income	8			225		195			—			428
Equity in net income of subsidiaries	786			186		—			(972		)	—
Income from continuing operations	710			612		443			(972		)	793
Income from discontinued operations, net of tax	15			—		—			—			15
Net income	$	725		$	612	$	443		$	(972	)	$	808
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(77		)	(77		)
Net income attributable to McGraw Hill Financial, Inc.	$	725		$	612	$	443		$	(1,049	)	$	731
Comprehensive income	$	701		$	588	$	415		$	(981	)	$	723

	Balance Sheet
	September 30, 2015
(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 cash equivalents	$	161		$	1		$	1,279		$	—		$	1,441
Accounts receivable, net of allowance for doubtful accounts	109			282			595			—			986
Intercompany receivable	313			1,480			1,124			(2,917		)	—
Deferred income taxes	72			172			(41		)	—			203
Prepaid and other current assets	93			4			109			—			206
Total current assets	748			1,939			3,066			(2,917		)	2,836
Property and equipment, net of accumulated depreciation	124			3			110			—			237
Goodwill	15			41			2,903			9			2,968
Other intangible assets, net	—			—			1,887			(6		)	1,881
Asset for pension benefits	—			—			61			—			61
Investments in subsidiaries	4,547			671			7,280			(12,498		)	—
Intercompany loans receivable	17			361			1,817			(2,195		)	—
Other non-current assets	69			19			92			—			180
Total assets	$	5,520		$	3,034		$	17,216		$	(17,607	)	$	8,163
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	69		$	42		$	100		$	—		$	211
Intercompany Payable	1,671			593			568			(2,832		)	—
Accrued compensation and contributions to retirement plans	108			73			139			—			320
Income taxes currently payable	16			—			43			—			59
Unearned revenue	269			565			619			—			1,453
Accrued legal and regulatory settlements	—			104			—			—			104
Other current liabilities	267			(134		)	225			—			358
Total current liabilities	2,400			1,243			1,694			(2,832		)	2,505
Long-term debt	3,489			—			—			—			3,489
Intercompany loans payable	108			(3		)	2,178			(2,283		)	—
Pension and postretirement benefits	218			—			60			—			278
Deferred income taxes	(224		)	51			263			—			90
Other non-current liabilities	217			12			59			(1		)	287
Total liabilities	6,208			1,303			4,254			(5,116		)	6,649
Redeemable noncontrolling interest	—			—			—			810			810
Equity:
Common stock	412			—			2,321			(2,321		)	412
Additional paid-in capital	(197		)	1,171			10,156			(10,689		)	441
Retained income	6,641			560			784			(393		)	7,592
Accumulated other comprehensive loss	(310		)	—			(279		)	36			(553		)
Less: common stock in treasury	(7,234		)	—			(20		)	20			(7,234		)
Total equity - controlling interests	(688		)	1,731			12,962			(13,347		)	658
Total equity - noncontrolling interests	—			—			—			46			46
Total equity	(688		)	1,731			12,962			(13,301		)	704
Total liabilities and equity	$	5,520		$	3,034		$	17,216		$	(17,607	)	$	8,163

	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 cash 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

	Statement of Cash Flows
	Nine Months Ended September 30, 2015
(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	$	1,094		$	762		$	521		$	(1,385	)	$	992
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
Depreciation	29			14			21			—			64
Amortization of intangibles	—			—			40			—			40
Provision for losses on accounts receivable	—			(4		)	7			—			3
Deferred income taxes	(139		)	161			144			—			166
Stock-based compensation	16			16			23			—			55
Other	107			22			10			—			139
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	10			16			(70		)	—			(44		)
Prepaid and current assets	(35		)	22			7			—			(6		)
Accounts payable and accrued expenses	(100		)	(76		)	(10		)	—			(186		)
Unearned revenue	10			(20		)	28			—			18
Accrued legal and regulatory settlements	—			(1,624		)	—			—			(1,624		)
Other current liabilities	(19		)	(12		)	(22		)	—			(53		)
Net change in prepaid/accrued income taxes	166			—			(26		)	—			140
Net change in other assets and liabilities	91			4			(155		)	—			(60		)
Cash provided by (used for) operating activities from continuing operations	1,230			(719		)	518			(1,385		)	(356		)
Investing Activities:
Capital expenditures	(38		)	(7		)	(29		)	—			(74		)
Acquisitions, net of cash acquired	(2,241		)	—			(152		)	—			(2,393		)
Proceeds from dispositions	—			—			14			—			14
Changes in short-term investments	—			—			(3		)	—			(3		)
Cash used for investing activities from continuing operations	(2,279		)	(7		)	(170		)	—			(2,456		)
Financing Activities:
Proceeds from issuance of senior notes, net	2,674			—			—			—			2,674
Dividends paid to shareholders	(274		)	—			—			—			(274		)
Dividends and other payments paid to noncontrolling interests	—			—			(67		)	—			(67		)
Contingent consideration payment	(5		)	—			—			—			(5		)
Purchase of CRISIL shares	—			—			(16		)	—			(16		)
Repurchase of treasury shares	(501		)	—			—			—			(501		)
Exercise of stock options	76			—			1			—			77
Excess tax benefits from share-based payments	39			—			—			—			39
Intercompany financing activities	(2,192		)	727			80			1,385			—
Cash (used for) provided by financing activities from continuing operations	(183		)	727			(2		)	1,385			1,927
Effect of exchange rate changes on cash from continuing operations	(9		)	—			(33		)	—			(42		)
Cash (used for) provided by continuing operations	(1,241		)	1			313			—			(927		)
Discontinued Operations:
Cash used for operating activities	—			—			(129		)	—			(129		)
Cash used for discontinued operations	—			—			(129		)	—			(129		)
Net change in cash and cash equivalents	(1,241		)	1			184			—			(1,056		)
Cash and cash equivalents at beginning of period	1,402			—			1,095			—			2,497
Cash and cash equivalents at end of period	$	161		$	1		$	1,279		$	—		$	1,441

	Statement of Cash Flows
	Nine Months Ended September 30, 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 income	$	725		$	612		$	443		$	(972	)	$	808
Less: discontinued operations, net	15			—			—			—			15
Income from continuing operations	710			612			443			(972		)	793
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
Depreciation	30			13			21			—			64
Amortization of intangibles	2			—			34			—			36
Provision for losses on accounts receivable	—			(3		)	8			—			5
Deferred income taxes	(18		)	—			(15		)	—			(33		)
Stock-based compensation	23			23			26			—			72
Other	—			85			21			—			106
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	2			67			(57		)	—			12
Prepaid and current assets	(30		)	4			18			—			(8		)
Accounts payable and accrued expenses	(153		)	(141		)	83			—			(211		)
Unearned revenue	(10		)	(14		)	31			—			7
Other current liabilities	22			(67		)	(20		)	—			(65		)
Net change in prepaid/accrued income taxes	99			3			(9		)	—			93
Net change in other assets and liabilities	14			2			(67		)	—			(51		)
Cash provided by operating activities from continuing operations	691			584			517			(972		)	820
Investing Activities:
Capital expenditures	(12		)	(11		)	(29		)	—			(52		)
Acquisitions, net of cash acquired	—			—			(65		)	—			(65		)
Proceeds from dispositions	44			—			39			—			83
Changes in short-term investments	—			—			(1		)	—			(1		)
Cash provided by (used for) investing activities from continuing operations	32			(11		)	(56		)	—			(35		)
Financing Activities:
Dividends paid to shareholders	(245		)	—			—			—			(245		)
Dividends and other payments paid to noncontrolling interests	—			—			(31		)	—			(31		)
Contingent consideration payment	—			—			(11		)	—			(11		)
Repurchase of treasury shares	(362		)	—			—			—			(362		)
Exercise of stock options	156			—			3			—			159
Excess tax benefits from share-based payments	89			—			—			—			89
Intercompany financing activities	(108		)	(573		)	(291		)	972			—
Cash used for financing activities from continuing operations	(470		)	(573		)	(330		)	972			(401		)
Effect of exchange rate changes on cash from continuing operations	(8		)	—			(16		)	—			(24		)
Cash provided by continuing operations	245			—			115			—			360
Discontinued Operations:
Cash provided by operating activities	16			—			—			—			16
Cash provided by discontinued operations	16			—			—			—			16
Net change in cash and cash equivalents	261			—			115			—			376
Cash and cash equivalents at beginning of period	685			—			857			—			1,542
Cash and cash equivalents at end of period	$	946		$	—		$	972		$	—		$	1,918

XML

Consolidated Statements of Equity (Unaudited) (Parenthetical)	Sep. 30, 2015 $ / shares
Statement of Stockholders' Equity [Abstract]
Common stock par value (in dollars per share)	$ 1

XML

Nature of Operations and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2015 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments (in segments)	4

XML

Employee Benefits (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Effect of the assumption changes had a pre-tax impact on retirement expense	$ 8	$ 25
Contribution towards retirement plans		14
Expected contributions towards of retirement plans		$ 1

XML

Condensed Consolidating Financial Statements (Balance Sheet) (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Assets, Current [Abstract]
Cash and cash equivalents	$ 1,441,000,000		$ 2,497,000,000	$ 1,918,000,000	$ 1,542,000,000
Accounts receivable, net of allowance for doubtful accounts	986,000,000		932,000,000
Intercompany receivable	0		0
Deferred income taxes	203,000,000		363,000,000
Prepaid and other current assets	206,000,000		174,000,000
Total current assets	2,836,000,000		3,966,000,000
Property and equipment, net of accumulated depreciation	237,000,000		206,000,000
Goodwill	2,968,000,000		1,387,000,000
Other intangible assets, net	1,881,000,000		1,004,000,000
Asset for pension benefits	61,000,000		28,000,000
Investments in subsidiaries	0		0
Intercompany loans receivable	0		0
Other non-current assets	180,000,000		180,000,000
Total assets	8,163,000,000		6,771,000,000
Current liabilities:
Accounts payable	211,000,000	$ 211,000,000	191,000,000
Intercompany payable		0	0
Accrued compensation and contributions to retirement plans	320,000,000	320,000,000	410,000,000
Income taxes currently payable		59,000,000	32,000,000
Unearned revenue	1,453,000,000	1,453,000,000	1,323,000,000
Accrued legal and regulatory settlements (Note 11)	104,000,000	104,000,000	1,609,000,000
Other current liabilities		358,000,000	402,000,000
Total current liabilities	2,505,000,000	2,505,000,000	3,967,000,000
Long-term debt	3,489,000,000	3,489,000,000	799,000,000
Intercompany loans payable		0	0
Pension and other postretirement benefits	278,000,000	278,000,000	333,000,000
Deferred income taxes		90,000,000	56,000,000
Other non-current liabilities		287,000,000	267,000,000
Total liabilities	6,649,000,000	6,649,000,000	5,422,000,000
Redeemable noncontrolling interest (Note 7)	810,000,000	810,000,000	810,000,000
Equity:
Common stock	412,000,000	412,000,000	412,000,000
Additional paid-in capital	441,000,000	441,000,000	493,000,000
Retained income	7,592,000,000	7,592,000,000	6,946,000,000
Accumulated other comprehensive loss	(553,000,000)	(553,000,000)	(514,000,000)
Less: common stock in treasury	(7,234,000,000)	(7,234,000,000)	(6,849,000,000)
Total equity — controlling interests	658,000,000	658,000,000	488,000,000
Total equity - noncontrolling interests	46,000,000	46,000,000	51,000,000
Total equity	704,000,000	704,000,000	539,000,000
Total liabilities and equity	8,163,000,000	8,163,000,000	6,771,000,000
Eliminations
Assets, Current [Abstract]
Cash and cash equivalents	0		0	0	0
Accounts receivable, net of allowance for doubtful accounts	0		0
Intercompany receivable	(2,917,000,000)		(4,648,000,000)
Deferred income taxes	0		0
Prepaid and other current assets	0		0
Total current assets	(2,917,000,000)		(4,648,000,000)
Property and equipment, net of accumulated depreciation	0		0
Goodwill	9,000,000		9,000,000
Other intangible assets, net	(6,000,000)		0
Asset for pension benefits	0		0
Investments in subsidiaries	(12,498,000,000)		(9,036,000,000)
Intercompany loans receivable	(2,195,000,000)		(1,972,000,000)
Other non-current assets	0		0
Total assets	(17,607,000,000)		(15,647,000,000)
Current liabilities:
Accounts payable		0	0
Intercompany payable		(2,832,000,000)	(4,559,000,000)
Accrued compensation and contributions to retirement plans		0	0
Income taxes currently payable		0	0
Unearned revenue		0	0
Accrued legal and regulatory settlements (Note 11)		0	0
Other current liabilities		0	0
Total current liabilities		(2,832,000,000)	(4,559,000,000)
Long-term debt		0	0
Intercompany loans payable		(2,283,000,000)	(2,061,000,000)
Pension and other postretirement benefits		0	0
Deferred income taxes		0	0
Other non-current liabilities		(1,000,000)	0
Total liabilities		(5,116,000,000)	(6,620,000,000)
Redeemable noncontrolling interest (Note 7)		810,000,000	810,000,000
Equity:
Common stock		(2,321,000,000)	(2,316,000,000)
Additional paid-in capital		(10,689,000,000)	(7,560,000,000)
Retained income		(393,000,000)	(60,000,000)
Accumulated other comprehensive loss		36,000,000	41,000,000
Less: common stock in treasury		20,000,000	7,000,000
Total equity — controlling interests		(13,347,000,000)	(9,888,000,000)
Total equity - noncontrolling interests		46,000,000	51,000,000
Total equity		(13,301,000,000)	(9,837,000,000)
Total liabilities and equity		(17,607,000,000)	(15,647,000,000)
McGraw Hill Financial, Inc.
Assets, Current [Abstract]
Cash and cash equivalents	161,000,000		1,402,000,000	946,000,000	685,000,000
Accounts receivable, net of allowance for doubtful accounts	109,000,000		120,000,000
Intercompany receivable	313,000,000		525,000,000
Deferred income taxes	72,000,000		72,000,000
Prepaid and other current assets	93,000,000		80,000,000
Total current assets	748,000,000		2,199,000,000
Property and equipment, net of accumulated depreciation	124,000,000		111,000,000
Goodwill	15,000,000		109,000,000
Other intangible assets, net	0		13,000,000
Asset for pension benefits	0		0
Investments in subsidiaries	4,547,000,000		1,258,000,000
Intercompany loans receivable	17,000,000		19,000,000
Other non-current assets	69,000,000		81,000,000
Total assets	5,520,000,000		3,790,000,000
Current liabilities:
Accounts payable		69,000,000	59,000,000
Intercompany payable		1,671,000,000	2,566,000,000
Accrued compensation and contributions to retirement plans		108,000,000	133,000,000
Income taxes currently payable		16,000,000	15,000,000
Unearned revenue		269,000,000	259,000,000
Accrued legal and regulatory settlements (Note 11)		0	0
Other current liabilities		267,000,000	194,000,000
Total current liabilities		2,400,000,000	3,226,000,000
Long-term debt		3,489,000,000	799,000,000
Intercompany loans payable		108,000,000	109,000,000
Pension and other postretirement benefits		218,000,000	272,000,000
Deferred income taxes		(224,000,000)	(245,000,000)
Other non-current liabilities		217,000,000	219,000,000
Total liabilities		6,208,000,000	4,380,000,000
Redeemable noncontrolling interest (Note 7)		0	0
Equity:
Common stock		412,000,000	412,000,000
Additional paid-in capital		(197,000,000)	(116,000,000)
Retained income		6,641,000,000	6,282,000,000
Accumulated other comprehensive loss		(310,000,000)	(319,000,000)
Less: common stock in treasury		(7,234,000,000)	(6,849,000,000)
Total equity — controlling interests		(688,000,000)	(590,000,000)
Total equity - noncontrolling interests		0	0
Total equity		(688,000,000)	(590,000,000)
Total liabilities and equity		5,520,000,000	3,790,000,000
Standard & Poor's Financial Services, LLC
Assets, Current [Abstract]
Cash and cash equivalents	1,000,000		0	0	0
Accounts receivable, net of allowance for doubtful accounts	282,000,000		293,000,000
Intercompany receivable	1,480,000,000		2,125,000,000
Deferred income taxes	172,000,000		334,000,000
Prepaid and other current assets	4,000,000		27,000,000
Total current assets	1,939,000,000		2,779,000,000
Property and equipment, net of accumulated depreciation	3,000,000		5,000,000
Goodwill	41,000,000		41,000,000
Other intangible assets, net	0		0
Asset for pension benefits	0		0
Investments in subsidiaries	671,000,000		653,000,000
Intercompany loans receivable	361,000,000		358,000,000
Other non-current assets	19,000,000		25,000,000
Total assets	3,034,000,000		3,861,000,000
Current liabilities:
Accounts payable		42,000,000	45,000,000
Intercompany payable		593,000,000	617,000,000
Accrued compensation and contributions to retirement plans		73,000,000	121,000,000
Income taxes currently payable		0	1,000,000
Unearned revenue		565,000,000	585,000,000
Accrued legal and regulatory settlements (Note 11)		104,000,000	1,609,000,000
Other current liabilities		(134,000,000)	0
Total current liabilities		1,243,000,000	2,978,000,000
Long-term debt		0	0
Intercompany loans payable		(3,000,000)	0
Pension and other postretirement benefits		0	0
Deferred income taxes		51,000,000	51,000,000
Other non-current liabilities		12,000,000	8,000,000
Total liabilities		1,303,000,000	3,037,000,000
Redeemable noncontrolling interest (Note 7)		0	0
Equity:
Common stock		0	0
Additional paid-in capital		1,171,000,000	1,153,000,000
Retained income		560,000,000	(329,000,000)
Accumulated other comprehensive loss		0	0
Less: common stock in treasury		0	0
Total equity — controlling interests		1,731,000,000	824,000,000
Total equity - noncontrolling interests		0	0
Total equity		1,731,000,000	824,000,000
Total liabilities and equity		3,034,000,000	3,861,000,000
Non-Guarantor Subsidiaries
Assets, Current [Abstract]
Cash and cash equivalents	1,279,000,000		1,095,000,000	$ 972,000,000	$ 857,000,000
Accounts receivable, net of allowance for doubtful accounts	595,000,000		519,000,000
Intercompany receivable	1,124,000,000		1,998,000,000
Deferred income taxes	(41,000,000)		(43,000,000)
Prepaid and other current assets	109,000,000		67,000,000
Total current assets	3,066,000,000		3,636,000,000
Property and equipment, net of accumulated depreciation	110,000,000		90,000,000
Goodwill	2,903,000,000		1,228,000,000
Other intangible assets, net	1,887,000,000		991,000,000
Asset for pension benefits	61,000,000		28,000,000
Investments in subsidiaries	7,280,000,000		7,125,000,000
Intercompany loans receivable	1,817,000,000		1,595,000,000
Other non-current assets	92,000,000		74,000,000
Total assets	$ 17,216,000,000		14,767,000,000
Current liabilities:
Accounts payable		100,000,000	87,000,000
Intercompany payable		568,000,000	1,376,000,000
Accrued compensation and contributions to retirement plans		139,000,000	156,000,000
Income taxes currently payable		43,000,000	16,000,000
Unearned revenue		619,000,000	479,000,000
Accrued legal and regulatory settlements (Note 11)		0	0
Other current liabilities		225,000,000	208,000,000
Total current liabilities		1,694,000,000	2,322,000,000
Long-term debt		0	0
Intercompany loans payable		2,178,000,000	1,952,000,000
Pension and other postretirement benefits		60,000,000	61,000,000
Deferred income taxes		263,000,000	250,000,000
Other non-current liabilities		59,000,000	40,000,000
Total liabilities		4,254,000,000	4,625,000,000
Redeemable noncontrolling interest (Note 7)		0	0
Equity:
Common stock		2,321,000,000	2,316,000,000
Additional paid-in capital		10,156,000,000	7,016,000,000
Retained income		784,000,000	1,053,000,000
Accumulated other comprehensive loss		(279,000,000)	(236,000,000)
Less: common stock in treasury		(20,000,000)	(7,000,000)
Total equity — controlling interests		12,962,000,000	10,142,000,000
Total equity - noncontrolling interests		0	0
Total equity		12,962,000,000	10,142,000,000
Total liabilities and equity		$ 17,216,000,000	$ 14,767,000,000

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Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 1,324	$ 1,263	$ 3,938	$ 3,761
Expenses:
Operating-related expenses	407	402	1,218	1,205
Selling and general expenses	470	462	1,134	1,186
Depreciation	20	21	64	64
Amortization of intangibles	17	12	40	36
Total expenses	914	897	2,456	2,491
Other (income) loss	0	0	(11)	9
Operating profit	410	366	1,493	1,261
Interest expense, net	30	12	62	40
Income from continuing operations before taxes on income	380	354	1,431	1,221
Provision for taxes on income	99	139	439	428
Income from continuing operations	281	215	992	793
Income from discontinued operations, net of tax	0	2	0	15
Net income	281	217	992	808
Less: net income from continuing operations attributable to noncontrolling interests	(29)	(27)	(83)	(77)
Net income	252	190	909	731
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	252	188	909	716
Income from discontinued operations	0	2	0	15
Net income	$ 252	$ 190	$ 909	$ 731
Income from continuing operations:
Basic (in dollars per share)	$ 0.93	$ 0.69	$ 3.33	$ 2.64
Diluted (in dollars per share)	0.92	0.68	3.30	2.59
Income from discontinued operations:
Basic (in dollars per share)	0.00	0.01	0.00	0.05
Diluted (in dollars per share)	0.00	0.01	0.00	0.05
Net income:
Basic (in dollars per share)	0.93	0.70	3.33	2.69
Diluted (in dollars per share)	$ 0.92	$ 0.69	$ 3.30	$ 2.64
Weighted-average number of common shares outstanding:
Basic (in shares)	271.3	270.9	272.6	271.4
Diluted (in shares)	274.4	275.4	275.4	276.2
Actual shares outstanding at period end (in shares)			270.3	271.4
Dividend declared per common share (in usd per share)	$ 0.33	$ 0.30	$ 0.99	$ 0.90

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Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income Loss Net Of Tax [Roll Forward]
Balance as of December 31, 2014	$ (553)		$ (514)
Other comprehensive income before reclassifications			(48)
Reclassifications from accumulated other comprehensive loss to net earnings			9
Net other comprehensive income			(39)
Balance as of September 30, 2015	(553)		(553)
Pension and other postretirement benefit plans, tax	(1)	$ 0	(19)	$ 21
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income Loss Net Of Tax [Roll Forward]
Balance as of December 31, 2014			(83)
Other comprehensive income before reclassifications			(78)
Reclassifications from accumulated other comprehensive loss to net earnings			0
Net other comprehensive income			(78)
Balance as of September 30, 2015	(161)		(161)
Pension and Postretirement Benefit Plans
Accumulated Other Comprehensive Income Loss Net Of Tax [Roll Forward]
Balance as of December 31, 2014			(431)
Other comprehensive income before reclassifications			31
Reclassifications from accumulated other comprehensive loss to net earnings			9
Net other comprehensive income			40
Balance as of September 30, 2015	(391)		(391)
Pension and other postretirement benefit plans, tax			5
Unrealized Gain (Loss) on Forward Exchange Contracts
Accumulated Other Comprehensive Income Loss Net Of Tax [Roll Forward]
Balance as of December 31, 2014			0
Other comprehensive income before reclassifications			(1)
Reclassifications from accumulated other comprehensive loss to net earnings			0
Net other comprehensive income			(1)
Balance as of September 30, 2015	$ (1)		$ (1)

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities:
Net income	$ 992	$ 808
Less: discontinued operations, net	0	15
Income from continuing operations	992	793
Adjustments to reconcile income from continuing operations to cash (used for) provided by operating activities from continuing operations:
Depreciation	64	64
Amortization of intangibles	40	36
Provision for losses on accounts receivable	3	5
Deferred income taxes	166	(33)
Stock-based compensation	55	72
Other	139	106
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	(44)	12
Prepaid and other current assets	(6)	(8)
Accounts payable and accrued expenses	(186)	(211)
Unearned revenue	18	7
Accrued legal and regulatory settlements	(1,624)	0
Other current liabilities	(53)	(65)
Net change in prepaid/accrued income taxes	140	93
Net change in other assets and liabilities	(60)	(51)
Cash (used for) provided by operating activities from continuing operations	(356)	820
Investing Activities:
Capital expenditures	(74)	(52)
Acquisitions, net of cash acquired	(2,393)	(65)
Proceeds from dispositions	14	83
Changes in short-term investments	(3)	(1)
Cash used for investing activities from continuing operations	(2,456)	(35)
Financing Activities:
Proceeds from issuance of senior notes, net	2,674	0
Dividends paid to shareholders	(274)	(245)
Dividends and other payments paid to noncontrolling interests	(67)	(31)
Contingent consideration payment	(5)	(11)
Purchase of CRISIL shares	(16)	0
Repurchase of treasury shares	(501)	(362)
Exercise of stock options	77	159
Excess tax benefits from share-based payments	39	89
Cash provided by (used for) financing activities from continuing operations	1,927	(401)
Effect of exchange rate changes on cash from continuing operations	(42)	(24)
Cash (used for) provided by continuing operations	(927)	360
Discontinued Operations:
Cash (used for) provided by operating activities	(129)	16
Cash provided by (used for) investing activities	0	0
Cash provided by (used for) financing activities	0	0
Cash (used for) provided by discontinued operations	(129)	16
Net change in cash and cash equivalents	(1,056)	376
Cash and cash equivalents at beginning of period	2,497	1,542
Cash and cash equivalents at end of period	$ 1,441	$ 1,918

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Acquisitions and Divestitures (Divestitures) (Narrative) (Details) - USD ($) $ in Millions			1 Months Ended	3 Months Ended			9 Months Ended
	Nov. 03, 2014	Jul. 31, 2014	Jul. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2015
Other (Income) Loss [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Non-cash impairment charge				$ 6	$ 6
Harold W. McGraw III [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Transaction amount		$ 20
e-Builder [Member] | Other (Income) Loss [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash proceeds from sale of business							$ 11
Data Center [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash proceeds from sale of business			$ 58
Data Center [Member] | Other (Income) Loss [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
After-tax gain (loss) on sale of business						$ 3
McGraw Hill Construction
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash proceeds from sale of business	$ 320

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Condensed Consolidating Financial Statements

9 Months Ended

Sep. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

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 due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026.

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 McGraw Hill Financial, Inc., Standard & Poor's Financial Services LLC, and the Non-Guarantor Subsidiaries of McGraw Hill Financial, 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 September 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	$	165		$	523	$	665		$	(29	)	$	1,324
Expenses:
Operating-related expenses	20			99		317			(29		)	407
Selling and general expenses	206			69		195			—			470
Depreciation	9			4		7			—			20
Amortization of intangibles	—			—		17			—			17
Total expenses	235			172		536			(29		)	914
Operating (loss) profit	(70		)	351		129			—			410
Interest expense (income), net	32			—		(2		)	—			30
Non-operating intercompany transactions	51			48		(99		)	—			—
(Loss) income from continuing operations before taxes on income	(153		)	303		230			—			380
(Benefit) provision for taxes on income	(74		)	100		73			—			99
Equity in net income of subsidiaries	1,180			206		—			(1,386		)	—
Net income	$	1,101		$	409	$	157		$	(1,386	)	$	281
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(29		)	(29		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,101		$	409	$	157		$	(1,415	)	$	252
Comprehensive income	$	1,095		$	408	$	123		$	(1,386	)	$	240

	Statement of Income
	Nine Months Ended September 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	$	481		$	1,640	$	1,902		$	(85	)	$	3,938
Expenses:
Operating-related expenses	64			396		843			(85		)	1,218
Selling and general expenses	282			243		609			—			1,134
Depreciation	29			14		21			—			64
Amortization of intangibles	—			—		40			—			40
Total expenses	375			653		1,513			(85		)	2,456
Other income	—			—		(11		)	—			(11		)
Operating profit	106			987		400			—			1,493
Interest expense (income), net	69			—		(7		)	—			62
Non-operating intercompany transactions	180			139		(319		)	—			—
(Loss) income from continuing operations before taxes on income	(143		)	848		726			—			1,431
(Benefit) provision for taxes on income	(57		)	291		205			—			439
Equity in net income of subsidiaries	1,180			205		—			(1,385		)	—
Net income	$	1,094		$	762	$	521		$	(1,385	)	$	992
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(83		)	(83		)
Net income attributable to McGraw Hill Financial, Inc.	$	1,094		$	762	$	521		$	(1,468	)	$	909
Comprehensive income	$	1,102		$	761	$	480		$	(1,390	)	$	953

	Statement of Income
	Three Months Ended September 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	$	149		$	507	$	635		$	(28	)	$	1,263
Expenses:
Operating-related expenses	19			142		269			(28		)	402
Selling and general expenses	147			150		165			—			462
Depreciation	10			4		7			—			21
Amortization of intangibles	1			—		11			—			12
Total expenses	177			296		452			(28		)	897
Operating (loss) profit	(28		)	211		183			—			366
Interest expense (income), net	15			—		(3		)	—			12
Non-operating intercompany transactions	56			13		(69		)	—			—
(Loss) income from continuing operations before taxes on income	(99		)	198		255			—			354
(Benefit) provision for taxes on income	(5		)	53		91			—			139
Equity in net income of subsidiaries	286			63		—			(349		)	—
Income from continuing operations	192			208		164			(349		)	215
Income from discontinued operations, net of tax	2			—		—			—			2
Net income	$	194		$	208	$	164		$	(349	)	$	217
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(27		)	(27		)
Net income attributable to McGraw Hill Financial, Inc.	$	194		$	208	$	164		$	(376	)	$	190
Comprehensive income	$	186		$	208	$	109		$	(353	)	$	150

	Statement of Income
	Nine Months Ended September 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	$	443		$	1,535	$	1,869		$	(86	)	$	3,761
Expenses:
Operating-related expenses	59			450		782			(86		)	1,205
Selling and general expenses	241			394		551			—			1,186
Depreciation	30			13		21			—			64
Amortization of intangibles	2			—		34			—			36
Total expenses	332			857		1,388			(86		)	2,491
Other loss	3			—		6			—			9
Operating profit	108			678		475			—			1,261
Interest expense (income), net	46			—		(6		)	—			40
Non-operating intercompany transactions	130			27		(157		)	—			—
(Loss) income from continuing operations before taxes on income	(68		)	651		638			—			1,221
Provision for taxes on income	8			225		195			—			428
Equity in net income of subsidiaries	786			186		—			(972		)	—
Income from continuing operations	710			612		443			(972		)	793
Income from discontinued operations, net of tax	15			—		—			—			15
Net income	$	725		$	612	$	443		$	(972	)	$	808
Less: net income from continuing operations attributable to noncontrolling interests	—			—		—			(77		)	(77		)
Net income attributable to McGraw Hill Financial, Inc.	$	725		$	612	$	443		$	(1,049	)	$	731
Comprehensive income	$	701		$	588	$	415		$	(981	)	$	723

	Balance Sheet
	September 30, 2015
(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 cash equivalents	$	161		$	1		$	1,279		$	—		$	1,441
Accounts receivable, net of allowance for doubtful accounts	109			282			595			—			986
Intercompany receivable	313			1,480			1,124			(2,917		)	—
Deferred income taxes	72			172			(41		)	—			203
Prepaid and other current assets	93			4			109			—			206
Total current assets	748			1,939			3,066			(2,917		)	2,836
Property and equipment, net of accumulated depreciation	124			3			110			—			237
Goodwill	15			41			2,903			9			2,968
Other intangible assets, net	—			—			1,887			(6		)	1,881
Asset for pension benefits	—			—			61			—			61
Investments in subsidiaries	4,547			671			7,280			(12,498		)	—
Intercompany loans receivable	17			361			1,817			(2,195		)	—
Other non-current assets	69			19			92			—			180
Total assets	$	5,520		$	3,034		$	17,216		$	(17,607	)	$	8,163
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	69		$	42		$	100		$	—		$	211
Intercompany Payable	1,671			593			568			(2,832		)	—
Accrued compensation and contributions to retirement plans	108			73			139			—			320
Income taxes currently payable	16			—			43			—			59
Unearned revenue	269			565			619			—			1,453
Accrued legal and regulatory settlements	—			104			—			—			104
Other current liabilities	267			(134		)	225			—			358
Total current liabilities	2,400			1,243			1,694			(2,832		)	2,505
Long-term debt	3,489			—			—			—			3,489
Intercompany loans payable	108			(3		)	2,178			(2,283		)	—
Pension and postretirement benefits	218			—			60			—			278
Deferred income taxes	(224		)	51			263			—			90
Other non-current liabilities	217			12			59			(1		)	287
Total liabilities	6,208			1,303			4,254			(5,116		)	6,649
Redeemable noncontrolling interest	—			—			—			810			810
Equity:
Common stock	412			—			2,321			(2,321		)	412
Additional paid-in capital	(197		)	1,171			10,156			(10,689		)	441
Retained income	6,641			560			784			(393		)	7,592
Accumulated other comprehensive loss	(310		)	—			(279		)	36			(553		)
Less: common stock in treasury	(7,234		)	—			(20		)	20			(7,234		)
Total equity - controlling interests	(688		)	1,731			12,962			(13,347		)	658
Total equity - noncontrolling interests	—			—			—			46			46
Total equity	(688		)	1,731			12,962			(13,301		)	704
Total liabilities and equity	$	5,520		$	3,034		$	17,216		$	(17,607	)	$	8,163

	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 cash 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

	Statement of Cash Flows
	Nine Months Ended September 30, 2015
(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	$	1,094		$	762		$	521		$	(1,385	)	$	992
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
Depreciation	29			14			21			—			64
Amortization of intangibles	—			—			40			—			40
Provision for losses on accounts receivable	—			(4		)	7			—			3
Deferred income taxes	(139		)	161			144			—			166
Stock-based compensation	16			16			23			—			55
Other	107			22			10			—			139
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	10			16			(70		)	—			(44		)
Prepaid and current assets	(35		)	22			7			—			(6		)
Accounts payable and accrued expenses	(100		)	(76		)	(10		)	—			(186		)
Unearned revenue	10			(20		)	28			—			18
Accrued legal and regulatory settlements	—			(1,624		)	—			—			(1,624		)
Other current liabilities	(19		)	(12		)	(22		)	—			(53		)
Net change in prepaid/accrued income taxes	166			—			(26		)	—			140
Net change in other assets and liabilities	91			4			(155		)	—			(60		)
Cash provided by (used for) operating activities from continuing operations	1,230			(719		)	518			(1,385		)	(356		)
Investing Activities:
Capital expenditures	(38		)	(7		)	(29		)	—			(74		)
Acquisitions, net of cash acquired	(2,241		)	—			(152		)	—			(2,393		)
Proceeds from dispositions	—			—			14			—			14
Changes in short-term investments	—			—			(3		)	—			(3		)
Cash used for investing activities from continuing operations	(2,279		)	(7		)	(170		)	—			(2,456		)
Financing Activities:
Proceeds from issuance of senior notes, net	2,674			—			—			—			2,674
Dividends paid to shareholders	(274		)	—			—			—			(274		)
Dividends and other payments paid to noncontrolling interests	—			—			(67		)	—			(67		)
Contingent consideration payment	(5		)	—			—			—			(5		)
Purchase of CRISIL shares	—			—			(16		)	—			(16		)
Repurchase of treasury shares	(501		)	—			—			—			(501		)
Exercise of stock options	76			—			1			—			77
Excess tax benefits from share-based payments	39			—			—			—			39
Intercompany financing activities	(2,192		)	727			80			1,385			—
Cash (used for) provided by financing activities from continuing operations	(183		)	727			(2		)	1,385			1,927
Effect of exchange rate changes on cash from continuing operations	(9		)	—			(33		)	—			(42		)
Cash (used for) provided by continuing operations	(1,241		)	1			313			—			(927		)
Discontinued Operations:
Cash used for operating activities	—			—			(129		)	—			(129		)
Cash used for discontinued operations	—			—			(129		)	—			(129		)
Net change in cash and cash equivalents	(1,241		)	1			184			—			(1,056		)
Cash and cash equivalents at beginning of period	1,402			—			1,095			—			2,497
Cash and cash equivalents at end of period	$	161		$	1		$	1,279		$	—		$	1,441

	Statement of Cash Flows
	Nine Months Ended September 30, 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 income	$	725		$	612		$	443		$	(972	)	$	808
Less: discontinued operations, net	15			—			—			—			15
Income from continuing operations	710			612			443			(972		)	793
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities from continuing operations:
Depreciation	30			13			21			—			64
Amortization of intangibles	2			—			34			—			36
Provision for losses on accounts receivable	—			(3		)	8			—			5
Deferred income taxes	(18		)	—			(15		)	—			(33		)
Stock-based compensation	23			23			26			—			72
Other	—			85			21			—			106
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
Accounts receivable	2			67			(57		)	—			12
Prepaid and current assets	(30		)	4			18			—			(8		)
Accounts payable and accrued expenses	(153		)	(141		)	83			—			(211		)
Unearned revenue	(10		)	(14		)	31			—			7
Other current liabilities	22			(67		)	(20		)	—			(65		)
Net change in prepaid/accrued income taxes	99			3			(9		)	—			93
Net change in other assets and liabilities	14			2			(67		)	—			(51		)
Cash provided by operating activities from continuing operations	691			584			517			(972		)	820
Investing Activities:
Capital expenditures	(12		)	(11		)	(29		)	—			(52		)
Acquisitions, net of cash acquired	—			—			(65		)	—			(65		)
Proceeds from dispositions	44			—			39			—			83
Changes in short-term investments	—			—			(1		)	—			(1		)
Cash provided by (used for) investing activities from continuing operations	32			(11		)	(56		)	—			(35		)
Financing Activities:
Dividends paid to shareholders	(245		)	—			—			—			(245		)
Dividends and other payments paid to noncontrolling interests	—			—			(31		)	—			(31		)
Contingent consideration payment	—			—			(11		)	—			(11		)
Repurchase of treasury shares	(362		)	—			—			—			(362		)
Exercise of stock options	156			—			3			—			159
Excess tax benefits from share-based payments	89			—			—			—			89
Intercompany financing activities	(108		)	(573		)	(291		)	972			—
Cash used for financing activities from continuing operations	(470		)	(573		)	(330		)	972			(401		)
Effect of exchange rate changes on cash from continuing operations	(8		)	—			(16		)	—			(24		)
Cash provided by continuing operations	245			—			115			—			360
Discontinued Operations:
Cash provided by operating activities	16			—			—			—			16
Cash provided by discontinued operations	16			—			—			—			16
Net change in cash and cash equivalents	261			—			115			—			376
Cash and cash equivalents at beginning of period	685			—			857			—			1,542
Cash and cash equivalents at end of period	$	946		$	—		$	972		$	—		$	1,918

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Acquisitions and Divestitures (Key components of income from discontinued operations) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Components of income from discontinued operations
Revenue		$ 40		$ 124
Expenses		37		100
Operating income		3		24
Provision for taxes on income		1		9
Income from discontinued operations, net of tax	$ 0	$ 2	$ 0	$ 15

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Acquisitions and Divestitures (Tables)

9 Months Ended

Sep. 30, 2015

Acquisitions and Divestitures [Abstract]

Schedule of components of income and assets and liabilities from discontinued operations

The key components of income from discontinued operations for the periods ended September 30, 2014 consist of the following:

(in millions)	Three Months		Nine Months
Revenue	$	40	$	124
Expenses	37		100
Operating income	3		24
Provision for taxes on income	1		9
Income from discontinued operations, net of tax	$	2	$	15

Schedule of preliminary allocation of purchase price to the assets and liabilities

The following table presents the the preliminary allocation of purchase price to the assets and liabilities of SNL as a result of the acquisition.

(in millions)
Current assets	$	22
Property, plant and equipment	19
Goodwill	1,558
Other intangible assets, net:
Databases and software	421
Customer relationships	162
Tradenames	185
Other intangibles	4
Other intangible assets, net	772
Other non-current assets	3
Total assets acquired	2,374
Current liabilities	(19		)
Unearned revenue	(118		)
Other non-current liabilities	(6		)
Total liabilities acquired	(143		)
Net assets acquired	$	2,231

Schedule of supplemental pro forma information

The unaudited pro forma information includes non-recurring transaction related costs, intangible asset charges and incremental borrowing costs as a result of the acquisition, net of related tax, estimated using the Company's effective tax rate for continuing operations for the periods presented.

(in millions)	Nine Months Ended September 30,
	2015		2014
Pro forma revenue	$	4,124	$	3,927
Pro forma net income from continuing operations	$	954	$	746

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Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions		Total	Common Stock $1 par	Additional Paid-in Capital	Retained Income	Accumulated Other Comprehensive Loss	Less: Treasury Stock	Total MHFI Equity	Noncontrolling Interests
Balance as of December 31, 2014 at Dec. 31, 2014		$ 539	$ 412	$ 493	$ 6,946	$ (514)	$ 6,849	$ 488	$ 51
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive Income	[1]	877			909	(39)		870	7
Dividends		(278)			(270)			(270)	(8)
Share repurchases		(505)					501	(501)	(4)
Employee stock plans, net of tax benefit		65		(52)			(116)	64	1
Change in redemption value of redeemable noncontrolling interest		7			7			7
Other		1							1
Balance as of September 30, 2015 at Sep. 30, 2015		704	412	441	7,592	(553)	7,234	658	46
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to noncontrolling interest		76
Balance as of December 31, 2014 at Jun. 30, 2015		704
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share repurchases								(227)
Balance as of September 30, 2015 at Sep. 30, 2015		$ 704	$ 412	$ 441	$ 7,592	$ (553)	$ 7,234	$ 658	$ 46

[1] Excludes $76 million attributable to our redeemable noncontrolling interest.

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 281	$ 217	$ 992	$ 808
Other comprehensive income:
Foreign currency translation adjustment	(45)	(68)	(78)	(56)
Income tax effect	1	1	0	1
Foreign currency translation adjustment, net of income tax effect	(44)	(67)	(78)	(55)
Pension and other postretirement benefit plans	5	0	59	(54)
Income tax effect	(1)	0	(19)	21
Pension and other post-retirement benefit plans, net of income tax effect	4	0	40	(33)
Unrealized gain on forward exchange contracts	(1)	0	(1)	4
Income tax effect	0	0	0	(1)
Unrealized gain (loss) on forward exchange contracts, net of income tax effect	(1)	0	(1)	3
Comprehensive income	240	150	953	723
Less: comprehensive income attributable to nonredeemable noncontrolling interests	(3)	(4)	(7)	(8)
Less: comprehensive income attributable to redeemable noncontrolling interests	(26)	(23)	(76)	(69)
Comprehensive income attributable to McGraw Hill Financial, Inc.	$ 211	$ 123	$ 870	$ 646

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Restructuring

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

During 2015 and 2014, we continued to evaluate our cost structure and further identified cost savings associated with streamlining our management structure and additionally, in 2014, our decision to exit non-strategic businesses. Our 2015 and 2014 restructuring plans consisted of a company-wide workforce reduction of approximately 260 and 590 positions, respectively, and are further detailed below. The charges for each 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.

As part of the sale of McGraw Hill Construction, which has historically been part of our C&C segment, to Symphony Technology Group, described further in Note 2 —Acquisitions and Divestitures, we have retained McGraw Hill Construction's restructuring liabilities. Therefore, the remaining reserves described below for the 2014 restructuring plan include McGraw Hill Construction's restructuring liability; however, the initial charge associated with the reserve has been bifurcated between continuing and discontinued operations.

The initial restructuring charge recorded and the ending reserve balance as of September 30, 2015 by segment is as follows:

	2015 Restructuring Plan				2014 Restructuring Plan
(in millions)	Initial Charge Recorded		Ending Reserve Balance		Initial Charge Recorded		Ending Reserve Balance
S&P Ratings	$	11	$	10	$	45	$	15
S&P Capital IQ and SNL	13		9		9		2
C&C 1	3		2		16		4
Corporate	3		3		16		9
Total	$	30	$	24	$	86	$	30

¹  The 2014 restructuring plan included an initial charge of $3 million and an ending reserve balance of less than a $1 million for McGraw Hill Construction.

We recorded a pre-tax restructuring charge of $30 million for the 2015 restructuring plan during the nine months ended September 30, 2015 and have reduced the reserve for the 2015 restructuring plan by $6 million.

The ending reserve balance for the 2014 restructuring plan was $78 million as of December 31, 2014. For the nine months ended September 30, 2015, we have reduced the reserve for the 2014 restructuring plan by $48 million.

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Document and Entity Information - shares shares in Millions	9 Months Ended
	Sep. 30, 2015	Oct. 16, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	MCGRAW HILL FINANCIAL INC
Entity Central Index Key	0000064040
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		270.3

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Segment and Related Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

We have four reportable segments: S&P Ratings, S&P Capital IQ and SNL, S&P DJ Indices and C&C. 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 unallocated expense or interest expense as these are costs that do not affect the operating results of our segments.

A summary of operating results by segment for the periods ended September 30 is as follows:

Three Months	2015						2014
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings 1	$	587		$	194		$	604		$	183
S&P Capital IQ and SNL	356			53			311			64
S&P DJ Indices	156			106			143			86
C&C	248			93			227			71
Intersegment elimination 2	(23		)	—			(22		)	—
Total operating segments	1,324			446			1,263			404
Unallocated expense 3	—			(36		)	—			(38		)
Total	$	1,324		$	410		$	1,263		$	366

Nine Months	2015						2014
(in millions)	Revenue			Operating Profit			Revenue			Operating Profit
S&P Ratings 1	$	1,851		$	846		$	1,837		$	730
S&P Capital IQ and SNL	1,000			178			919			172
S&P DJ Indices	446			297			412			260
C&C	707			265			657			217
Intersegment elimination 2	(66		)	—			(64		)	—
Total operating segments	3,938			1,586			3,761			1,379
Unallocated expense 3	—			(93		)	—			(118		)
Total	$	3,938		$	1,493		$	3,761		$	1,261

¹  Operating profit for the three and nine months ended September 30, 2015 includes legal settlement charges partially offset by a benefit related to legal settlement insurance recoveries of $86 million and $40 million, respectively. Operating profit for the three and nine months ended September 30, 2014 includes legal settlement charges of $60 million.

²  Revenue for S&P Ratings and expenses for S&P Capital IQ and SNL include an intersegment royalty charged to S&P Capital IQ and SNL for the rights to use and distribute content and data developed by S&P Ratings.

³  The nine months ended September 30, 2015 include a gain of $11 million related to the sale of our interest in a legacy McGraw Hill Construction investment. See Note 2 —Acquisitions and Divestitures for additional information.

See Note 2 —Acquisitions and Divestitures and Note 9 —Restructuring for additional actions that impacted the segment operating results.

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 1,441	$ 2,497
Accounts receivable, net of allowance for doubtful accounts: 2015 - $35; 2014 - $38	986	932
Deferred income taxes	203	363
Prepaid and other current assets	206	174
Total current assets	2,836	3,966
Property and equipment, net of accumulated depreciation: 2015 - $600; 2014 - $563	237	206
Goodwill	2,968	1,387
Other intangible assets, net	1,881	1,004
Other non-current assets	241	208
Total assets	8,163	6,771
Current liabilities:
Accounts payable	211	191
Accrued compensation and contributions to retirement plans	320	410
Unearned revenue	1,453	1,323
Accrued legal and regulatory settlements (Note 11)	104	1,609
Other current liabilities	417	434
Total current liabilities	2,505	3,967
Long-term debt	3,489	799
Pension and other postretirement benefits	278	333
Other non-current liabilities	377	323
Total liabilities	6,649	5,422
Redeemable noncontrolling interest (Note 7)	$ 810	$ 810
Commitments and contingencies (Note 11)
Equity:
Common stock	$ 412	$ 412
Additional paid-in capital	441	493
Retained income	7,592	6,946
Accumulated other comprehensive loss	(553)	(514)
Less: common stock in treasury	(7,234)	(6,849)
Total equity — controlling interests	658	488
Total equity — noncontrolling interests	46	51
Total equity	704	539
Total liabilities and equity	$ 8,163	$ 6,771

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Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt

Debt

(in millions)	September 30, 2015		December 31, 2014
5.9% Senior Notes, due 2017 1	$	400	400
2.5% Senior Notes, due 2018 2	399		—
3.3% Senior Notes, due 2020 3	699		—
4.0% Senior Notes, due 2025 4	695		—
4.4% Senior Notes, due 2026 5	897		—
6.55% Senior Notes, due 2037 6	399		399
Long-term debt	$	3,489	$	799

1 Interest payments are due semiannually on April 15 and October 15, and, as of September 30, 2015, the unamortized debt discount is less than $1 million.

2 Interest payments are due semiannually on February 15 and August 15, beginning on February15, 2016, and, as of September 30, 2015, the unamortized debt discount is less than $1 million.

3 Interest payments are due semiannually on February 14 and August 14, beginning on February14, 2016, and, as of September 30, 2015, the unamortized debt discount is approximately $1 million.

4 Interest payments are due semiannually on June 15 and December 15, beginning on December15, 2015, and, as of September 30, 2015, the unamortized debt discount is approximately $5 million.

5 Interest payments are due semiannually on February 15 and August 15, beginning on February15, 2016, and, as of September 30, 2015, the unamortized debt discount is approximately $3 million.

6 Interest payments are due semiannually on May 15 and November 15, and, as of September 30, 2015, the unamortized debt discount is approximately $1 million.

The fair value of our long-term debt borrowings was $3.6 billion and $0.9 billion as of September 30, 2015 and December 31, 2014, respectively, and was estimated based on quoted market prices.

On August 18, 2015, we issued $2.0 billion of senior notes (the "Notes"), consisting of $400 million of 2.5% senior notes due in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026. The Notes are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC. We used the net proceeds to finance the acquisition of SNL.

On May 26, 2015, we issued $700 million of 4.0% senior notes due in 2025 and used a portion of the net proceeds for the repayment of short-term debt, including commercial paper. The 4.0% senior notes will mature on June 15, 2025 and are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC.

Currently, we have the ability to borrow a total of $1.2 billion through our commercial paper program, which is supported by our credit facility described below. As of September 30, 2015 and December 31, 2014, we had no commercial paper outstanding or borrowings outstanding under our credit facility. In connection with the payment of legal and regulatory settlements recorded in 2014 and paid largely in 2015, we utilized our commercial paper program and borrowed from our credit facility during the nine months ended September 30, 2015.

On June 30, 2015, we entered into a revolving $1.2 billionfive-year credit agreement (our “credit facility”) that will terminate on June 30, 2020. This credit facility replaced our $1.0 billionfour-year credit facility that was scheduled to terminate on June 19, 2017. The previous credit facility was canceled immediately after the new credit facility became effective. There were no outstanding borrowings under the previous credit facility when it was replaced.

We pay a commitment fee of 10 to 20 basis points for our credit facility, depending on our indebtedness to cash flow ratio, whether or not amounts have been borrowed and currently pay a commitment fee of 12.5 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 indebtedness to cash flow ratio added to the applicable rate.

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.

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rate for continuing operations was 25.9% and 30.7% for the three and nine months ended September 30, 2015, respectively, and 39.2% and 35.1% for the three and nine months ended September 30, 2014, respectively. Our effective income tax rate from continuing operations was lower than the prior periods as the result of the resolution of tax audits, increased income in lower tax rate jurisdictions, and the non-deductible tax treatment of certain regulatory charges incurred during 2014.

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 extraordinary 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.

As of September 30, 2015 and December 31, 2014, the total amount of federal, state and local, and foreign unrecognized tax benefits was $122 million and $118 million, respectively, exclusive of interest and penalties. The increase in unrecognized tax benefits relates primarily to tax positions of prior years. We recognize accrued interest and penalties related to unrecognized tax benefits in interest expense and operating-related expense, respectively. In addition, as of September 30, 2015 and December 31, 2014, we had $30 million and $23 million, respectively, of accrued interest and penalties associated with unrecognized tax benefits.

Based on the current status of income tax audits, we believe that the total amount of unrecognized tax benefits may significantly decrease in the next twelve months. Although the ultimate resolution of our tax audits is unpredictable, the resulting change in our unrecognized tax benefits could have a material impact on our results of operations and/or cash flows.

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Subsequent Events

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

We are in the preliminary stages of evaluating a range of strategic options for J.D. Power included in our Commodities & Commercial segment that best positions J.D. Power for future growth.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal & Regulatory Matters

In the normal course of business both in the United States and abroad, the Company, its subsidiary Standard & Poor’s Financial Services LLC (“S&P LLC”) and some of its other subsidiaries are defendants in numerous 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 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. 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.

The Company believes that it has meritorious defenses to the pending claims and potential claims in the matters described below and is diligently pursuing these defenses, and in some cases working to reach an acceptable negotiated resolution. However, in view of the uncertainty inherent in litigation and government and regulatory enforcement matters, we cannot predict the eventual outcome of these matters or the timing of their resolution, or in most cases reasonably estimate what the eventual judgments, damages, fines, penalties or impact of activity restrictions may be. As a result, we cannot provide assurance that the outcome of the matters described below 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 and competitive position, which may require that we record liabilities in the consolidated financial statements in future periods.

S&P Ratings

Financial Crisis Litigation

The Company and its subsidiaries continue to defend civil cases brought by private and public plaintiffs arising out of ratings activities prior to and during the global financial crisis of 2008-2009. Discovery in these cases is ongoing. We can provide no assurance that we will not be obligated to pay significant amounts in order to resolve these matters on terms deemed acceptable. At this time, however, we are unable to reasonably estimate the range of such additional amounts, if any.

U.S. Securities and Exchange Commission

As a nationally recognized statistical rating organization registered with the SEC under Section 15E of the Securities Exchange Act of 1934, S&P 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 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 Ratings for one or more compliance deficiencies.

Parmalat Litigation

In September and October of 2005, writs of summons were served on The McGraw-Hill Companies, SRL and The McGraw-Hill Companies, SA in an action brought in the Tribunal of Milan, Italy by the Extraordinary Commissioner of Parmalat Finanziaria S.p.A. and Parmalat S.p.A. (collectively, “Parmalat”), claiming damages of €4.1 billion, representing the value of bonds issued by Parmalat which were rated investment grade by S&P Ratings, plus damages for S&P Ratings’ alleged complicity in aggravating Parmalat’s financial difficulties, among other claims. In June of 2011, the Court dismissed Parmalat’s main damages claim based on the value of the bonds, and ordered the defendants to pay Parmalat approximately €0.8 million, representing ratings fees paid by Parmalat, plus interest and expenses. In September of 2012, Parmalat appealed the judgment and, in November of 2012, requested payment of the judgment in the amount of €1.1 million, which was paid in December of 2012. In July of 2014, the Court of Appeals of Milan issued an order reopening the proceedings to allow the parties to submit additional pleadings. A hearing was held on February 25, 2015. On July 29, 2015, the Company reached a settlement with Parmalat to resolve the claims in this action. Under the settlement, the Company paid Parmalat €14.5 million.

Trani Prosecutorial Proceeding

The prosecutor in the Italian city of Trani is seeking criminal indictments against several current and former S&P Ratings managers and ratings analysts for alleged market manipulation, and against Standard & Poor’s Credit Market Services Europe under Italy’s vicarious liability statute, for having allegedly failed to properly supervise the ratings analysts and prevent them from committing market manipulation. The prosecutor’s theories are based on various actions by S&P Ratings taken with respect to Italian sovereign debt between May of 2011 and January of 2012. In October of 2014, the court granted the prosecutor’s request and issued indictments against the current and former S&P Ratings managers and ratings analysts, as well as Standard & Poor’s Credit Market Services Europe. The trial commenced with a hearing on February 4, 2015 and is ongoing. Apart from criminal penalties that might be imposed following a conviction, such conviction could also lead to civil damages claims and other sanctions against Standard & Poor's Credit Market Services Europe or the Company. Such claims and sanctions cannot be quantified at this stage.

Shareholder Derivative Action

On August 3, 2015, two purported shareholders commenced a putative derivative action on behalf of the Company in New York State Supreme Court titled Retirement Plan for General Employees of the City of North Miami Beach and Robin Stein v. Harold McGraw III, et al. The complaint asserts claims for, inter alia, breach of fiduciary duty, waste of corporate assets, and mismanagement against the board of directors, certain former directors of the Company, and three former S&P Ratings employees. Plaintiffs seek recovery from the defendants based on allegations that S&P Ratings’ credit ratings practices for certain residential mortgage-backed securities and collateralized debt obligations misrepresented the credit risks of those securities, allegedly resulting in losses to the Company. The Company and the individual defendants filed motions to dismiss the complaint on October 9, 2015.

The City of Swan

Australian government municipal councils filed suit against the Company and S&P International LLC in a representative action in April 2013 in connection with alleged investment losses in eight synthetic collateralized debt obligations (CDOs) rated by S&P Ratings. These same CDOs were at issue in an earlier lawsuit brought by the plaintiffs against its investment advisor, Lehman Brothers Australia (LBA), in which the plaintiffs secured a judgment against LBA, which is now in liquidation.  The plaintiffs claim total losses of AUD$327 million from these investments and are seeking recovery from both LBA and the Company.  The trial in the matter has been re-scheduled from October 2015 to August 2016. The Company has offered to settle this matter, although the plaintiffs have not accepted our offer. We can provide no assurance that the Company will not incur additional amounts in excess of amounts accrued to settle this matter on terms deemed acceptable. At this point, however, we are unable to reasonably estimate the range of such additional amounts, if any.

Commodities & Commercial Markets

Platts

In May of 2013, representatives from the European Commission (DG Competition, the EC’s antitrust office) commenced an unannounced inspection of Platts’ London offices in conjunction with potential anticompetitive conduct (in particular, in the crude oil, refined oil products and biofuels markets) relating to Platts’ Market On Close price assessment process. No allegations have been made against Platts at this time. There have also been several civil actions filed in the United States relating to potential anticompetitive behavior by market participants relating to Platts’ price assessment process, none of which have named Platts as a defendant.

McGraw Hill Construction

In October of 2009, an action was filed in the U.S. District Court for the Southern District of New York in which Reed Construction Data asserted a number of claims under various state and federal laws against the Company relating to alleged misappropriation and unfair competition by McGraw Hill Construction and seeking an unspecified amount of damages. In September of 2010, the Court granted the Company’s motion to dismiss some of the claims. In September of 2014, the Court granted summary judgment to the Company on all of Reed’s remaining claims with the exception of the unfair competition claim. In October of 2014, the parties submitted a joint stipulation to the Court agreeing to dismiss both Reed’s unfair competition claim and the Company’s counterclaims without prejudice to reinstatement in the event of a successful appeal of Reed’s dismissed claims.

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Equity

9 Months Ended

Sep. 30, 2015

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 periods ended September 30 were as follows:

(in millions, except average price)	Three Months				Nine Months
	2015		2014		2015		2014
Total number of shares purchased 1	2.3		—		4.9		4.4
Average price paid per share 1	$	99.01	$	—	$	102.01	$	79.06
Total cash utilized 2	$	227	$	—	$	501	$	352

1 On June 25, 2014, we repurchased 0.5 million shares of the Company's common stock from the personal holdings of Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company, at a discount of 0.35% from the June 24, 2014 New York Stock Exchange closing price. We repurchased these shares with cash for $41 million at an average price of $82.66 per share. See Note 13 — Related Party Transactions for further information.

2 In December of 2013, 0.1 million shares were repurchased for approximately $10 million, which settled in January of 2014. Cash used for financing activities only reflects those shares which settled during the nine months ended September 30, 2014 resulting in $362 million of cash used to repurchase shares.

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 September 30, 2015, approximately 40.6 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.

Redeemable Noncontrolling Interests

The agreement with the minority partners of our S&P Dow Jones Indices LLC established in June of 2012 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, after December 31, 2017, CME Group, Inc. ("CME Group") and CME Group Index Services LLC ("CGIS") will have 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, considering a combination of an income and market valuation approach. Our income and market valuation approaches may incorporate Level 3 fair value measures for instances when observable inputs are not available, including assumptions related to expected future net cash flows, long-term growth rates, the timing and nature of tax attributes, and the redemption features. 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 nine months ended September 30, 2015 were as follows:

(in millions)
Balance as of December 31, 2014	$	810
Net income attributable to noncontrolling interest	76
Distributions payable to noncontrolling interest	(69		)
Redemption value adjustment	(7		)
Balance as of September 30, 2015	$	810

Accumulated Other Comprehensive Loss

The following table summarizes the changes in the components of accumulated other comprehensive loss for the nine months ended September 30, 2015:

(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, 2014	$	(83	)	$	(431	)		$	—		$	(514	)
Other comprehensive income before reclassifications	(78		)	31				(1		)	(48		)
Reclassifications from accumulated other comprehensive loss to net earnings	—			9			1	—			9
Net other comprehensive income	(78		)	40				(1		)	(39		)
Balance as of September 30, 2015	$	(161	)	$	(391	)		$	(1	)	$	(553	)

¹  See Note 5 —Employee Benefits for additional details of items reclassed from accumulated other comprehensive loss to net earnings.

The net actuarial loss and prior service cost related to pension and other postretirement benefit plans included in other comprehensive income is net of a tax provision of $5 million for the nine months ended September 30, 2015.

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Employee Benefits

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [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 that provide senior management with supplemental retirement, disability and death benefits. Certain supplemental retirement benefits are based on final monthly earnings. In addition, we sponsor voluntary 401(k) plans 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 pension cost pursuant to our accounting policy for amortizing such amounts.

As discussed in our Form 10-K, we changed certain discount rate assumptions and our expected return on assets assumption for our retirement plans, which became effective on January 1, 2015. In addition, we updated the assumed mortality rates to reflect life expectancy improvements. The effect of the assumption changes for the three and nine months ended September 30, 2015 resulted in an increase in pre-tax retirement expense of approximately $8 million and $25 million, respectively.

In the first nine months of 2015, we contributed $14 million to our retirement plans and expect to make additional required contributions of approximately $1 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 fourth quarter of 2015.

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

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.

Stock-based compensation for the periods ended September 30 is as follows:

(in millions)	Three Months				Nine Months
	2015		2014		2015		2014
Stock option expense	$	2	$	6	$	11	$	15
Restricted stock and unit awards expense	16		20		44		57
Total stock-based compensation expense	$	18	$	26	$	55	$	72

During the nine months ended September 30, 2015, the Company granted 0.6 million shares of restricted stock and unit awards, which had a weighted average grant date fair value of $104.31 per share, and a minimal amount of employee stock options.

Total unrecognized compensation expense related to unvested stock option awards and unvested restricted stock unit awards as of September 30, 2015 was $4 million and $75 million, respectively, which is expected to be recognized over a weighted average period of 1.4 years and 1.8 years, respectively.

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Earnings Per Share

9 Months Ended

Sep. 30, 2015

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 for basic and diluted EPS for the periods ended September 30 is as follows:

(in millions, except per share amounts)	Three Months				Nine Months
	2015		2014		2015		2014
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	252	$	188	$	909	$	716
Income from discontinued operations	—		2		—		15
Net income	$	252	$	190	$	909	$	731
Basic weighted-average number of common shares outstanding	271.3		270.9		272.6		271.4
Effect of stock options and other dilutive securities	3.1		4.5		2.8		4.8
Diluted weighted-average number of common shares outstanding	274.4		275.4		275.4		276.2
Earnings per share attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations:
Basic	$	0.93	$	0.69	$	3.33	$	2.64
Diluted	$	0.92	$	0.68	$	3.30	$	2.59
Income from discontinued operations:
Basic	$	—	$	0.01	$	—	$	0.05
Diluted	$	—	$	0.01	$	—	$	0.05
Net income:
Basic	$	0.93	$	0.70	$	3.33	$	2.69
Diluted	$	0.92	$	0.69	$	3.30	$	2.64

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 because the effect would have been antidilutive. Additionally, restricted performance shares are excluded because the necessary vesting conditions had not been met. For the three and nine months ended September 30, 2015, there were no stock options excluded, and for the three and nine months ended September 30, 2014, there were a minimal amount of stock options excluded. Restricted performance shares outstanding of 0.9 million and 1.4 million as of September 30, 2015 and 2014, respectively, were excluded.

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Acquisitions and Divestitures (Acquisitions) (Tables) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 01, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 2,968			$ 1,387
SNL Financial LC [Member]
Business Acquisition [Line Items]
Current assets			$ 22
Property, plant and equipment			19
Goodwill			1,558
Other intangible assets, net:
Other intangible assets, net			772
Other non-current assets			3
Total assets acquired			2,374
Current liabilities			(19)
Unearned revenue			(118)
Other non-current liabilities			(6)
Total liabilities acquired			143
Net assets acquired			2,231
Supplemental Pro Forma Information
Pro forma revenue	4,124	$ 3,927
Pro forma net income from continuing operations	$ 954	$ 746
Databases and Software [Member] | SNL Financial LC [Member]
Other intangible assets, net:
Other intangible assets, net			421
Customer Relationships [Member] | SNL Financial LC [Member]
Other intangible assets, net:
Other intangible assets, net			162
Tradenames [Member] | SNL Financial LC [Member]
Other intangible assets, net:
Other intangible assets, net			185
Other Intangibles [Member] | SNL Financial LC [Member]
Other intangible assets, net:
Other intangible assets, net			$ 4

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Condensed Consolidating Financial Statements (Narrative) (Details) - USD ($)	Aug. 18, 2015	May. 26, 2015	Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
Ownership interest of subsidiary			100.00%
Senior notes
Condensed Financial Statements, Captions [Line Items]
Debt issued	$ 2,000,000,000.0
Senior notes | 4.0% Senior Notes due in 2025
Condensed Financial Statements, Captions [Line Items]
Debt issued		$ 700,000,000
Interest rate		4.00%
Senior notes | 2.5% Senior Notes due in 2018
Condensed Financial Statements, Captions [Line Items]
Debt issued	$ 400,000,000
Interest rate	2.50%
Senior notes | 3.3% Senior Notes due in 2020
Condensed Financial Statements, Captions [Line Items]
Debt issued	$ 700,000,000
Interest rate	3.30%
Senior notes | 4.4% Senior Notes due in 2026
Condensed Financial Statements, Captions [Line Items]
Debt issued	$ 900,000,000
Interest rate	4.40%

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Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

On July 31, 2014, we completed the sale of the Company's aircraft to Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company ("Mr. McGraw") for a purchase price of $20 million, which is modestly higher than the independent appraisal obtained. This transaction was approved by the Nominating and Corporate Governance Committee of the Company's Board of Directors after consultation with members of the Financial Policy Committee. During the second quarter of 2014, we recorded a non-cash impairment charge of $6 million within other (income) loss in our consolidated statement of income as a result of the pending sale.

On June 25, 2014, we repurchased 0.5 million shares of the Company's common stock from the personal holdings of Mr. McGraw. The shares were purchased at a discount of 0.35% from the June 24, 2014 New York Stock Exchange closing price pursuant to a private transaction with Mr. McGraw. We repurchased these shares with cash for $41 million at an average price of $82.66 per share. This transaction was approved by the Nominating & Corporate Governance Committee of the Company's Board of Directors after consultation with members of the Financial Policy Committee.

In June of 2012, we entered into a new license agreement (the "License Agreement") with the holder of S&P Dow Jones Indices LLC noncontrolling interest, CME Group, which replaced the 2005 license agreement between S&P DJ 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 and nine months ended September 30, 2015, S&P Dow Jones Indices LLC earned $19 million and $47 million, respectively, of revenue under the terms of the License Agreement. 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.

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-based compensation for the periods ended September 30 is as follows:

(in millions)	Three Months				Nine Months
	2015		2014		2015		2014
Stock option expense	$	2	$	6	$	11	$	15
Restricted stock and unit awards expense	16		20		44		57
Total stock-based compensation expense	$	18	$	26	$	55	$	72

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Commitments and Contingencies (Details) € in Millions, AUD in Millions, $ in Millions		1 Months Ended			2 Months Ended	9 Months Ended
	Jul. 29, 2015 EUR (€)	Apr. 30, 2013 AUD investment	Dec. 31, 2012 EUR (€)	Jun. 30, 2011 EUR (€)	Oct. 30, 2005 EUR (€)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Aug. 03, 2015 employee shareholder
Loss Contingencies [Line Items]
Payments for legal settlements | $						$ 1,624	$ 0
Parmalat Litigation [Member]
Loss Contingencies [Line Items]
Damages sought					€ 4,100.0
Payments for legal settlements	€ 14.5		€ 1.1	€ 0.8
Shareholder Derivative Action [Member]
Loss Contingencies [Line Items]
Number of Shareholders Commencing Punitive Derivative Action | shareholder								2
Number of Former Employees Named as Defendants | employee								3
City of Swan [Member]
Loss Contingencies [Line Items]
Damages sought | AUD		AUD 327
Number of Synthetic Collateralized Debt Obligations | investment		8

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Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 18	$ 26	$ 55	$ 72
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	2	6	11	15
Unrecognized compensation expense	4		$ 4
Unrecognized compensation expense, period for recognition			1 year 5 months
Restricted stock and unit awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			0.6
Weighted average grant date fair value (in dollars per share)			$ 104.31
Total stock-based compensation expense	16	$ 20	$ 44	$ 57
Unrecognized compensation expense	$ 75		$ 75
Unrecognized compensation expense, period for recognition			1 year 9 months

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Consolidated Balance Sheets (Unaudited) (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 35	$ 38
Property and equipment, accumulated depreciation	$ 600	$ 563

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Nature of Operations and Basis of Presentation

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Basis of Presentation

Nature of Operations and Basis of Presentation

McGraw Hill Financial, Inc. (together with its consolidated subsidiaries, "McGraw Hill Financial," the “Company,” “we,” “us” or “our”) is a leading benchmarks & ratings, analytics, data and research provider serving the global capital, commodities and commercial markets. The capital markets include asset managers, investment banks, commercial banks, exchanges, and issuers; the commodities markets include producers, traders and intermediaries within energy, metals, and agriculture; and the commercial markets include professionals and corporate executives within automotive and marketing / research information services.

Our operations consist of four reportable segments: Standard & Poor’s Ratings Services (“S&P Ratings”), S&P Capital IQ and SNL, S&P Dow Jones Indices ("S&P DJ Indices") and Commodities & Commercial Markets (“C&C”).

• S&P Ratings is an independent provider of credit ratings, research and analytics, offering investors and market participants information, ratings and benchmarks.

• S&P Capital IQ and SNL is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services.

• S&P DJ Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.

• C&C consists of business-to-business companies specializing in commercial and commodities markets that deliver their customers access to high-value information, data, analytic services and pricing and quality benchmarks.

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 footnotes 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, 2014 (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 and nine months ended September 30, 2015 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.

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Equity (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Schedule of stock repurchases

Share repurchases for the periods ended September 30 were as follows:

(in millions, except average price)	Three Months				Nine Months
	2015		2014		2015		2014
Total number of shares purchased 1	2.3		—		4.9		4.4
Average price paid per share 1	$	99.01	$	—	$	102.01	$	79.06
Total cash utilized 2	$	227	$	—	$	501	$	352

1 On June 25, 2014, we repurchased 0.5 million shares of the Company's common stock from the personal holdings of Harold W. McGraw III, then Chairman of the Company's Board of Directors and former President and CEO of the Company, at a discount of 0.35% from the June 24, 2014 New York Stock Exchange closing price. We repurchased these shares with cash for $41 million at an average price of $82.66 per share. See Note 13 — Related Party Transactions for further information.

2 In December of 2013, 0.1 million shares were repurchased for approximately $10 million, which settled in January of 2014. Cash used for financing activities only reflects those shares which settled during the nine months ended September 30, 2014 resulting in $362 million of cash used to repurchase shares.

Schedule of redeemable noncontrolling interest

Changes to redeemable noncontrolling interest during the nine months ended September 30, 2015 were as follows:

(in millions)
Balance as of December 31, 2014	$	810
Net income attributable to noncontrolling interest	76
Distributions payable to noncontrolling interest	(69		)
Redemption value adjustment	(7		)
Balance as of September 30, 2015	$	810

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 nine months ended September 30, 2015:

(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, 2014	$	(83	)	$	(431	)		$	—		$	(514	)
Other comprehensive income before reclassifications	(78		)	31				(1		)	(48		)
Reclassifications from accumulated other comprehensive loss to net earnings	—			9			1	—			9
Net other comprehensive income	(78		)	40				(1		)	(39		)
Balance as of September 30, 2015	$	(161	)	$	(391	)		$	(1	)	$	(553	)

¹  See Note 5 —Employee Benefits for additional details of items reclassed from accumulated other comprehensive loss to net earnings.

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Debt (Details) - Senior notes - USD ($) $ in Millions	Sep. 30, 2015	Aug. 18, 2015	May. 26, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 3,489			$ 799
5.9% Senior Notes, due 2017 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 400			$ 400
Interest rate	5.90%			5.90%
Unamortized debt discount	$ 1
2.5% Senior Notes, due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 399			$ 0
Interest rate	2.50%	2.50%		2.50%
Unamortized debt discount	$ 1
3.3% Senior Notes, due 2020 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 699			$ 0
Interest rate	3.30%	3.30%		3.30%
Unamortized debt discount	$ 1
4.0% Senior Notes, due 2025 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 695			$ 0
Interest rate	4.00%		4.00%	4.00%
Unamortized debt discount	$ 5
4.4% Senior Notes, due 2026 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 897			$ 0
Interest rate	4.40%	4.40%		4.40%
Unamortized debt discount	$ 3
6.55% Senior Notes, due 2037 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 399			$ 399
Interest rate	6.55%			6.55%
Unamortized debt discount	$ 1

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Recent Accounting Standards

9 Months Ended

Sep. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Standards

Recent Accounting Standards

In September of 2015, the Financial Accounting Standards Board ("FASB") issued guidance intended to simplify the accounting for measurement-period adjustments made to provisional amounts recognized in a business combination. The guidance eliminates the requirement to retrospectively account for those adjustments. This guidance is effective for reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In April of 2015, the FASB issued new accounting guidance intended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with the presentation for debt discounts. This guidance is effective for reporting periods beginning after December 15, 2015 and must be applied on a retrospective basis with early adoption permitted. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In February of 2015, the FASB issued guidance that requires management to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. This guidance is effective for reporting periods beginning after December 15, 2015; however, early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In January of 2015, the FASB issued guidance that eliminates the concept of reporting extraordinary items, but retains current presentation and disclosure requirements for an event or transaction that is of an unusual nature or of a type that indicates infrequency of occurrence. Transactions that meet both criteria would now also follow such presentation and disclosure requirements. This guidance is effective for reporting periods beginning after December 15, 2015; however, early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In August of 2014, the FASB issued guidance that requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. This guidance is effective for reporting periods beginning after December 15, 2016; however, early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our consolidated financial statements.

In May of 2014, the FASB and the International Accounting Standards Board (“IASB”) issued jointly a converged standard on the recognition of revenue from contracts with customers which is intended to improve the financial reporting of revenue and comparability of the top line in financial statements globally. The core principle of the new standard is for the recognition of revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced revenue disclosures, provide guidance for transactions that were not previously addressed comprehensively and improve guidance for multiple-element arrangements. In August of 2015, the FASB issued guidance deferring the effective date of the new revenue standard by one year. The new guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements.

In April of 2014, the FASB issued final guidance that raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is intended to reduce the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results. In addition, the guidance permits companies to have continuing cash flows and significant continuing involvement with the disposed component. The amendments were effective on January 1, 2015, and the adoption of the guidance did not have a significant impact on our consolidated financial statements.