Segment and Related Information |
Segment and Related Information
We have four reportable segments: S&P Global Ratings, S&P Global Market Intelligence, S&P DJ Indices and S&P Global Platts. 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 June 30 is as follows: | | | | | | | | | | | | | | | | | Three Months | 2016 | | 2015 | (in millions) | Revenue | | Operating Profit | | Revenue | | Operating Profit | S&P Global Ratings 1 | $ | 682 |
| | $ | 396 |
| | $ | 658 |
| | $ | 361 |
| S&P Global Market Intelligence 2 | 416 |
| | 93 |
| | 324 |
| | 63 |
| S&P DJ Indices 3 | 153 |
| | 100 |
| | 148 |
| | 96 |
| S&P Global Platts 4 | 255 |
| | 93 |
| | 234 |
| | 87 |
| Intersegment elimination 5 | (24 | ) | | — |
| | (22 | ) | | — |
| Total operating segments | 1,482 |
| | 682 |
| | 1,342 |
| | 607 |
| Unallocated expense 6 | — |
| | (31 | ) | | — |
| | (25 | ) | Total | $ | 1,482 |
| | $ | 651 |
| | $ | 1,342 |
| | $ | 582 |
|
| | | | | | | | | | | | | | | | | Six Months | 2016 | | 2015 | (in millions) | Revenue | | Operating Profit | | Revenue | | Operating Profit | S&P Global Ratings 1 | $ | 1,234 |
| | $ | 658 |
| | $ | 1,264 |
| | $ | 652 |
| S&P Global Market Intelligence 2 | 824 |
| | 173 |
| | 644 |
| | 125 |
| S&P DJ Indices 3 | 304 |
| | 200 |
| | 291 |
| | 191 |
| S&P Global Platts 4 | 509 |
| | 196 |
| | 459 |
| | 173 |
| Intersegment elimination 5 | (48 | ) | | — |
| | (43 | ) | | — |
| Total operating segments | 2,823 |
| | 1,227 |
| | 2,615 |
| | 1,141 |
| Unallocated expense 6 | — |
| | (64 | ) | | — |
| | (58 | ) | Total | $ | 2,823 |
| | $ | 1,163 |
| | $ | 2,615 |
| | $ | 1,083 |
|
| | 1 | Operating profit for the three and six months ended June 30, 2016 includes a benefit related to legal settlement insurance recoveries of $37 million and $52 million, respectively, partially offset by legal settlement charges of $3 million and $6 million, respectively. Operating profit for the three and six months ended June 30, 2015 includes a benefit related to legal settlement insurance recoveries of $45 million and $80 million, respectively, partially offset by legal settlement charges of $4 million and $34 million, respectively. Additionally, the three and six months ended June 30, 2016 and 2015 includes restructuring charges of $6 million and $8 million, respectively. Operating profit also includes amortization of intangibles from acquisitions of $1 million for the three months ended June 30, 2016 and 2015 and $3 million and $2 million for the six months ended June 30, 2016 and 2015, respectively. |
| | 2 | Operating profit includes disposition-related costs of $8 million for the three and six months ended June 30, 2016 and a technology related impairment charge of $24 million for the six months ended June 30, 2016. Additionally, restructuring charges of $12 million are included for the three and six months ended June 30, 2015. Operating profit also includes amortization of intangibles from acquisitions of $18 million and $36 million for the three and six months ended June 30, 2016, respectively, and $6 million and $12 million for the three and six months ended June 30, 2015, respectively. |
| | 3 | Operating profit includes amortization of intangibles from acquisitions of $1 million for the three months ended June 30, 2016 and 2015 and $3 million for the six months ended June 30, 2016 and 2015. |
| | 4 | Operating profit for the three and six months ended June 30, 2016 includes disposition-related costs of $2 million and $4 million, respectively. Additionally, restructuring charges of $1 million are included for the three and six months ended June 30, 2015. Operating profit also includes amortization of intangibles from acquisitions of $3 million for the three months ended June 30, 2016 and 2015 and $5 million and $6 million for the six months ended June 30, 2016 and 2015, respectively. |
| | 5 | Revenue for S&P Global Ratings and expenses for S&P Global Market Intelligence include an intersegment royalty charged to S&P Global Market Intelligence for the rights to use and distribute content and data developed by S&P Global Ratings. |
| | 6 | The three and six months ended June 30, 2016 includes $3 million from a disposition-related reserve release. The three and six months ended June 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. Additionally, restructuring charges of $1 million are included for the three and six months ended June 30, 2015. |
The following provides revenue by geographic region for the periods ended June 30: | | | | | | | | | | | | | | | | | (in millions) | Three Months | | Six Months | | 2016 | | 2015 | | 2016 | | 2015 | U.S. | $ | 910 |
| | $ | 810 |
| | $ | 1,750 |
| | $ | 1,575 |
| European region | 339 |
| | 310 |
| | 636 |
| | 617 |
| Asia | 156 |
| | 151 |
| | 293 |
| | 279 |
| Rest of the world | 77 |
| | 71 |
| | 144 |
| | 144 |
| Total | $ | 1,482 |
| | $ | 1,342 |
| | $ | 2,823 |
| | $ | 2,615 |
|
See Note 2 — Acquisitions and Divestitures and Note 10 — Restructuring for additional actions that impacted the segment operating results.
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