XML 43 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Condensed Consolidating Financial Statements
3 Months Ended
Mar. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Financial Statements
Condensed Consolidating Financial Statements

On September 22, 2016, we issued $500 million of 2.95% senior notes due in 2027. 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. See Note 4 Debt for additional information.

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 S&P Global Inc., Standard & Poor's Financial Services LLC, and the Non-Guarantor Subsidiaries of S&P Global 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 March 31, 2017
 
(Unaudited)
(in millions)
S&P Global Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
S&P Global Inc. Consolidated
Revenue
$
180

 
$
438

 
$
867

 
$
(32
)
 
$
1,453

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
31

 
119

 
293

 
(32
)
 
411

Selling and general expenses
20

 
88

 
243

 

 
351

Depreciation
7

 
3

 
9

 

 
19

Amortization of intangibles

 

 
24

 

 
24

Total expenses
58

 
210

 
569

 
(32
)
 
805

Operating profit
122

 
228

 
298

 

 
648

Interest expense (income), net
39

 

 
(2
)
 

 
37

Non-operating intercompany transactions
82

 
(19
)
 
(901
)
 
838

 

Income before taxes on income
1

 
247

 
1,201

 
(838
)
 
611

(Benefit) provision for taxes on income
(11
)
 
99

 
93

 

 
181

Equity in net income of subsidiaries
1,224

 

 

 
(1,224
)
 

Net income
$
1,236

 
$
148

 
$
1,108

 
$
(2,062
)
 
$
430

Less: net income attributable to noncontrolling interests

 

 

 
(31
)
 
(31
)
Net income attributable to S&P Global Inc.
$
1,236

 
$
148

 
$
1,108

 
$
(2,093
)
 
$
399

Comprehensive income
$
1,238

 
$
147

 
$
1,147

 
$
(2,064
)
 
$
468




 
Statement of Income
 
Three Months Ended March 31, 2016
 
(Unaudited)
(in millions)
S&P Global Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
S&P Global Inc. Consolidated
Revenue
$
171

 
$
342

 
$
859

 
$
(31
)
 
$
1,341

Expenses:
 
 
 
 
 
 
 
 
 
Operating-related expenses
22

 
139

 
323

 
(31
)
 
453

Selling and general expenses
21

 
35

 
278

 

 
334

Depreciation
9

 
2

 
7

 

 
18

Amortization of intangibles

 

 
24

 

 
24

Total expenses
52

 
176

 
632

 
(31
)
 
829

Operating profit
119

 
166

 
227

 

 
512

Interest expense (income), net
42

 

 
(2
)
 

 
40

Non-operating intercompany transactions
74

 
(5
)
 
(497
)
 
428

 

Income before taxes on income
3

 
171

 
726

 
(428
)
 
472

Provision for taxes on income

 
57

 
92

 

 
149

Equity in net income of subsidiaries
791

 
71

 

 
(862
)
 

Net income
$
794

 
$
185

 
$
634

 
$
(1,290
)
 
$
323

Less: net income attributable to noncontrolling interests

 

 

 
(29
)
 
(29
)
Net income attributable to S&P Global Inc.
$
794

 
$
185

 
$
634

 
$
(1,319
)
 
$
294

Comprehensive income
$
802

 
$
185

 
$
646

 
$
(1,290
)
 
$
343




 
Balance Sheet
 
March 31, 2017
 
(Unaudited)
(in millions)
S&P Global Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
S&P Global Inc. Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
627

 
$

 
$
1,784

 
$

 
$
2,411

Accounts receivable, net of allowance for doubtful accounts
129

 
188

 
791

 

 
1,108

Intercompany receivable
2,737

 
3,287

 
1,913

 
(7,937
)
 

Prepaid and other current assets
63

 
(1
)
 
83

 
(1
)
 
144

Total current assets
3,556

 
3,474

 
4,571

 
(7,938
)
 
3,663

Property and equipment, net of accumulated depreciation
150

 
1

 
114

 

 
265

Goodwill
261

 

 
2,690

 
9

 
2,960

Other intangible assets, net

 

 
1,474

 

 
1,474

Investments in subsidiaries
5,970

 
5

 
8,663

 
(14,638
)
 

Intercompany loans receivable
17

 

 
1,503

 
(1,520
)
 

Other non-current assets
148

 
26

 
118

 

 
292

Total assets
$
10,102

 
$
3,506

 
$
19,133

 
$
(24,087
)
 
$
8,654

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
56

 
$
14

 
$
92

 
$

 
$
162

Intercompany payable
4,379

 
2,392

 
1,166

 
(7,937
)
 

Accrued compensation and contributions to retirement plans
86

 
22

 
97

 

 
205

Income taxes currently payable
163

 

 
80

 

 
243

Unearned revenue
279

 
215

 
1,016

 

 
1,510

Other current liabilities
129

 
12

 
208

 

 
349

Total current liabilities
5,092

 
2,655

 
2,659

 
(7,937
)
 
2,469

Long-term debt
3,565

 

 

 

 
3,565

Intercompany loans payable
11

 

 
1,509

 
(1,520
)
 

Pension and other postretirement benefits
194

 

 
77

 

 
271

Other non-current liabilities
56

 
71

 
299

 
(1
)
 
425

Total liabilities
8,918

 
2,726

 
4,544

 
(9,458
)
 
6,730

Redeemable noncontrolling interest

 

 

 
1,080

 
1,080

Equity:
 
 
 
 
 
 
 
 
 
Common stock
412

 

 
2,386

 
(2,386
)
 
412

Additional paid-in capital
(218
)
 
583

 
11,308

 
(11,203
)
 
470

Retained income
10,148

 
197

 
1,388

 
(2,224
)
 
9,509

Accumulated other comprehensive loss
(291
)
 

 
(486
)
 
42

 
(735
)
Less: common stock in treasury
(8,867
)
 

 
(8
)
 
8

 
(8,867
)
Total equity - controlling interests
1,184

 
780

 
14,588

 
(15,763
)
 
789

Total equity - noncontrolling interests

 

 
1

 
54

 
55

Total equity
1,184

 
780

 
14,589

 
(15,709
)
 
844

Total liabilities and equity
$
10,102

 
$
3,506

 
$
19,133

 
$
(24,087
)
 
$
8,654

 
Balance Sheet
 
December 31, 2016
(in millions)
S&P Global Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
S&P Global Inc. Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
711

 
$

 
$
1,681

 
$

 
$
2,392

Accounts receivable, net of allowance for doubtful accounts
138

 
131

 
853

 

 
1,122

Intercompany receivable
(165
)
 
837

 
870

 
(1,542
)
 

Prepaid and other current assets
77

 
2

 
79

 
(1
)
 
157

Total current assets
761

 
970

 
3,483

 
(1,543
)
 
3,671

Property and equipment, net of accumulated depreciation
159

 
1

 
111

 

 
271

Goodwill
261

 

 
2,679

 
9

 
2,949

Other intangible assets, net

 

 
1,506

 

 
1,506

Investments in subsidiaries
5,464

 
680

 
7,826

 
(13,970
)
 

Intercompany loans receivable
17

 

 
1,354

 
(1,371
)
 

Other non-current assets
134

 
24

 
114

 

 
272

Total assets
$
6,796

 
$
1,675

 
$
17,073

 
$
(16,875
)
 
$
8,669

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
73

 
$
22

 
$
88

 
$

 
$
183

Intercompany payable
1,324

 
40

 
177

 
(1,541
)
 

Accrued compensation and contributions to retirement plans
129

 
69

 
211

 

 
409

Income taxes currently payable
43

 

 
52

 

 
95

Unearned revenue
273

 
191

 
1,045

 

 
1,509

Other current liabilities
165

 
(51
)
 
301

 

 
415

Total current liabilities
2,007

 
271

 
1,874

 
(1,541
)
 
2,611

Long-term debt
3,564

 

 

 

 
3,564

Intercompany loans payable
11

 

 
1,360

 
(1,371
)
 

Pension and other postretirement benefits
196

 

 
78

 

 
274

Other non-current liabilities
52

 
74

 
314

 
(1
)
 
439

Total liabilities
5,830

 
345

 
3,626

 
(2,913
)
 
6,888

Redeemable noncontrolling interest

 

 

 
1,080

 
1,080

Equity:
 
 
 
 
 
 
 
 
 
Common stock
412

 

 
2,460

 
(2,460
)
 
412

Additional paid-in capital
(174
)
 
1,154

 
10,485

 
(10,963
)
 
502

Retained income
9,721

 
176

 
1,034

 
(1,721
)
 
9,210

Accumulated other comprehensive loss
(292
)
 

 
(525
)
 
44

 
(773
)
Less: common stock in treasury
(8,701
)
 

 
(7
)
 
7

 
(8,701
)
Total equity - controlling interests
966

 
1,330

 
13,447

 
(15,093
)
 
650

Total equity - noncontrolling interests

 

 

 
51

 
51

Total equity
966

 
1,330

 
13,447

 
(15,042
)
 
701

Total liabilities and equity
$
6,796

 
$
1,675

 
$
17,073

 
$
(16,875
)
 
$
8,669



 
Statement of Cash Flows
 
Three Months Ended March 31, 2017
 
(Unaudited)
(in millions)
S&P Global Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
S&P Global Inc. Consolidated
Operating Activities:
 
 
 
 
 
 
 
 
 
Net income
$
1,236

 
$
148

 
$
1,108

 
$
(2,062
)
 
$
430

Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
 
 
 
 
 
     Depreciation
7

 
3

 
9

 

 
19

     Amortization of intangibles

 

 
24

 

 
24

     Provision for losses on accounts receivable
1

 
1

 
3

 

 
5

     Deferred income taxes
(1
)
 

 

 

 
(1
)
     Stock-based compensation
7

 
4

 
8

 

 
19

     Other
6

 

 
8

 

 
14

Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
 
 
 
 
 
 
 
 
 
     Accounts receivable
8

 
(59
)
 
63

 

 
12

     Prepaid and other current assets
8

 
3

 
(2
)
 

 
9

     Accounts payable and accrued expenses
(61
)
 
12

 
(186
)
 

 
(235
)
     Unearned revenue
5

 
25

 
(36
)
 

 
(6
)
     Accrued legal settlements

 
(1
)
 

 

 
(1
)
     Other current liabilities
(35
)
 
(3
)
 
(20
)
 

 
(58
)
     Net change in prepaid/accrued income taxes
123

 

 
23

 

 
146

     Net change in other assets and liabilities
(6
)
 
(4
)
 
(14
)
 

 
(24
)
Cash provided by operating activities
1,298

 
129

 
988

 
(2,062
)
 
353

Investing Activities:
 
 
 
 
 
 
 
 
 
     Capital expenditures
(4
)
 
(4
)
 
(15
)
 

 
(23
)
     Acquisitions, net of cash acquired

 

 
(1
)
 

 
(1
)
     Proceeds from dispositions

 

 
2

 

 
2

Cash used for investing activities
(4
)
 
(4
)
 
(14
)
 

 
(22
)
Financing Activities:
 
 
 
 
 
 
 
 
 
     Dividends paid to shareholders
(106
)
 

 

 

 
(106
)
 Dividends and other payments paid to noncontrolling interests

 

 
(24
)
 

 
(24
)
     Repurchase of treasury shares
(201
)
 

 

 

 
(201
)
     Exercise of stock options
29

 

 

 

 
29

     Employee withholding tax on share-based payments
(44
)
 

 

 

 
(44
)
     Intercompany financing activities
(1,056
)
 
(125
)
 
(881
)
 
2,062

 

Cash used for financing activities
(1,378
)
 
(125
)
 
(905
)
 
2,062

 
(346
)
Effect of exchange rate changes on cash from continuing operations

 

 
34

 

 
34

Net change in cash and cash equivalents
(84
)
 

 
103

 

 
19

Cash and cash equivalents at beginning of period
711

 

 
1,681

 

 
2,392

Cash and cash equivalents at end of period
$
627

 
$

 
$
1,784

 
$

 
$
2,411


 
Statement of Cash Flows
 
Three Months Ended March 31, 2016
 
(Unaudited)
(in millions)
S&P Global Inc.
 
Standard & Poor's Financial Services LLC
 
Non-Guarantor Subsidiaries
 
Eliminations
 
S&P Global Inc. Consolidated
Operating Activities:
 
 
 
 
 
 
 
 
 
Net income
$
794

 
$
185

 
$
634

 
$
(1,290
)
 
$
323

Adjustments to reconcile net income to cash provided by (used for) operating activities:
 
 
 
 
 
 
 
 
 
     Depreciation
9

 
2

 
7

 

 
18

     Amortization of intangibles

 

 
24

 

 
24

     Provision for losses on accounts receivable

 
1

 
2

 

 
3

     Deferred income taxes
(1
)
 

 

 

 
(1
)
     Stock-based compensation
4

 
3

 
7

 

 
14

     Other
3

 
3

 
25

 

 
31

Changes in operating assets and liabilities, net of effect of acquisitions and dispositions:
 
 
 
 
 
 
 
 
 
     Accounts receivable
(7
)
 
153

 
(153
)
 

 
(7
)
     Prepaid and other current assets
5

 
(3
)
 
(14
)
 

 
(12
)
     Accounts payable and accrued expenses
(52
)
 
(89
)
 
(96
)
 

 
(237
)
     Unearned revenue
15

 
(374
)
 
398

 

 
39

     Accrued legal settlements

 
(108
)
 

 

 
(108
)
     Other current liabilities
(10
)
 
(19
)
 
53

 

 
24

     Net change in prepaid/accrued income taxes
104

 

 
1

 

 
105

     Net change in other assets and liabilities
(17
)
 
30

 
(44
)
 

 
(31
)
Cash provided by (used for) operating activities
847

 
(216
)
 
844

 
(1,290
)
 
185

Investing Activities:
 
 
 
 
 
 
 
 
 
     Capital expenditures
(4
)
 
(4
)
 
(8
)
 

 
(16
)
     Acquisitions, net of cash acquired

 

 
(7
)
 

 
(7
)
     Changes in short-term investments

 

 
(1
)
 

 
(1
)
Cash used for investing activities
(4
)
 
(4
)
 
(16
)
 

 
(24
)
Financing Activities:
 
 
 
 
 
 
 
 
 
     Additions to short-term debt, net
329

 

 

 

 
329

     Dividends paid to shareholders
(96
)
 

 

 

 
(96
)
 Dividends and other payments paid to noncontrolling interests

 

 
(33
)
 

 
(33
)
     Repurchase of treasury shares
(226
)
 

 

 

 
(226
)
     Exercise of stock options
31

 

 

 

 
31

     Employee withholding tax on share-based payments
(46
)
 

 

 

 
(46
)
     Intercompany financing activities
(838
)
 
220

 
(672
)
 
1,290

 

Cash (used for) provided by financing activities
(846
)
 
220

 
(705
)
 
1,290

 
(41
)
Effect of exchange rate changes on cash from continuing operations
7

 

 
(8
)
 

 
(1
)
Net change in cash and cash equivalents
4

 

 
115

 

 
119

Cash and cash equivalents at beginning of period
167

 

 
1,314

 

 
1,481

Cash and cash equivalents at end of period
$
171

 
$

 
$
1,429

 
$

 
$
1,600