EX-12 3 spgi-ex12x20161231xq4.htm EXHIBIT 12 Exhibit


Exhibit (12)
S&P Global Inc.
Computation of Ratio of Earnings to Fixed Charges
(in millions)
 
 
Years ended December 31,
 
 
2016
 
2015
 
2014
 
2013
 
2012
 
Earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before taxes on income
$
3,188

1 
$
1,815

2 
$
54

3 
$
1,299

4 
$
1,089

5 
Fixed charges 6
243

  
162

  
118

  
124

  
128

  
Total earnings
$
3,431

  
$
1,977

  
$
172

  
$
1,423

  
$
1,217

  
Fixed charges: 6
 
 
 
 
 
 
 
 
 
 
Interest expense
$
179

  
$
101

  
$
58

  
$
62

  
$
81

  
Portion of rental payments deemed to be interest
59

  
59

  
59

  
61

  
46

  
Amortization of debt issuance costs and discount
5

  
2

  
1

  
1

  
1

  
Total fixed charges
$
243

  
$
162

  
$
118

  
$
124

  
$
128

  
Ratio of earnings to fixed charges:
14.1

x 
12.2

x 
1.5

x 
11.5

x 
9.5

x 

1 Includes the impact of the following items: a $1.1 billion gain from our dispositions, a benefit related to net legal settlement insurance recoveries of $10 million, disposition-related costs of $48 million, a technology-related impairment charge of $24 million, restructuring charges of $6 million, a $3 million disposition-related reserve release, acquisition-related costs of $1 million and amortization of intangibles from acquisitions of $96 million.
2
Includes the impact of the following items: costs related to identified operating efficiencies primarily related to restructuring of $56 million, net legal settlement expenses of $54 million, acquisition-related costs of $37 million, an $11 million gain on dispositions, and amortization of intangibles from acquisitions of $67 million.
3
Includes the impact of the following items: $1.6 billion of legal and regulatory settlements, restructuring charges of $86 million, $4 million of professional fees largely related to corporate development activities, and amortization of intangibles from acquisitions of $48 million.
4
Includes the impact of the following items: $77 million of legal settlements, $64 million charge for costs necessary to enable the separation of McGraw-Hill Education ("MHE") and reduce our cost structure, a $36 million non-cash impairment charge related to the sale of our data center, a $28 million restructuring charge in the fourth quarter primarily related to severance, $13 million related to terminating various leases as we reduce our real estate portfolio and a $24 million net gain from our dispositions, and amortization of intangibles from acquisitions of $51 million.
5 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, and amortization of intangibles from acquisitions of $48 million.  
6 "Fixed charges" consist of (1) interest on debt and interest related to the sale leaseback of Rock-McGraw, Inc. (see Note 13 - Commitments and Contingencies to the consolidated financial statements under Item 8, Consolidated Financial Statements and Supplementary Data, in this Annual Report on Form 10-K), (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.