XML 36 R22.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidating Financial Statements
9 Months Ended
Sep. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements
On November 26, 2019, we issued $500 million of 2.5% senior notes due in 2029 and $600 million of 3.25% senior notes due in 2049. In the fourth quarter of 2019, we used the net proceeds to fund the redemption of the $700 million outstanding principal amount of our 3.3% senior notes due in 2020 and a portion of the $400 million outstanding principal amount of our 6.55% senior notes due in 2037. On May 17, 2018, we issued $500 million of 4.5% notes due in 2048. 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 that were repaid in 2018, $700 million of 3.3% senior notes due in 2020 and $900 million of 4.4% senior notes due in 2026. On August 13, 2020, we issued $600 million of 1.25% senior notes due in 2030 and $700 million of 2.3% senior notes due in 2060. In the third quarter of 2020, we used the net proceeds to fund the redemption and extinguishment of the $900 million outstanding principal amount of our 4.4% senior notes due in 2026 and a portion of the outstanding principal amounts of our 6.55% senior notes due in 2037 and our 4.5% senior notes due in 2048. 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 September 30, 2020
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Revenue$219 $541 $1,128 $(42)$1,846 
Expenses:
Operating-related expenses
28 120 415 (44)519 
Selling and general expenses
26 84 227 339 
Depreciation
— 20 
Amortization of intangibles
— — 32 — 32 
Total expenses
63 206 683 (42)910 
Gain on dispositions(5)— (3)— (8)
Operating profit161 335 448 — 944 
Other income, net(4)— (2)— (6)
Interest expense (income), net
35 (1)— 35 
Loss on extinguishment of debt279 — — — 279 
Non-operating intercompany transactions
103 (6)(172)75 — 
Income before taxes on income
(252)340 623 (75)636 
(Benefit) provision for taxes on income
(71)83 126 — 138 
Equity in net income of subsidiaries
711 — — (711)— 
Net income$530 $257 $497 $(786)$498 
Less: net income attributable to noncontrolling interests
— — — (43)(43)
Net income attributable to S&P Global Inc.
$530 $257 $497 $(829)$455 
Comprehensive income
$503 $257 $554 $(789)$525 
Statement of Income
Nine Months Ended September 30, 2020
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Revenue$645 $1,717 $3,337 $(124)$5,575 
Expenses:
Operating-related expenses
85 345 1,227 (124)1,533 
Selling and general expenses
109 177 658 — 944 
Depreciation
30 22 — 60 
Amortization of intangibles
— — 94 — 94 
Total expenses
224 530 2,001 (124)2,631 
Gain on dispositions(5)— (11)— (16)
Operating profit426 1,187 1,347 — 2,960 
Other income, net
(12)— (4)— (16)
Interest expense (income), net
112 (4)— 109 
 Loss on extinguishment of debt279 — — — 279 
Non-operating intercompany transactions
300 (26)(1,505)1,231 — 
Income before taxes on income
(253)1,212 2,860 (1,231)2,588 
(Benefit) provision for taxes on income
(80)296 343 — 559 
Equity in net income of subsidiaries
3,289 — — (3,289)— 
Net income$3,116 $916 $2,517 $(4,520)$2,029 
Less: net income attributable to noncontrolling interests
— — — (144)(144)
Net income attributable to S&P Global Inc.
$3,116 $916 $2,517 $(4,664)$1,885 
Comprehensive income
$3,067 $916 $2,515 $(4,522)$1,976 
Statement of Income
Three Months Ended September 30, 2019
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Revenue$207 $491 $1,030 $(39)$1,689 
Expenses:
Operating-related expenses
64 103 352 (39)480 
Selling and general expenses
26 58 234 — 318 
   Depreciation11 — 20 
   Amortization of intangibles— — 29 — 29 
      Total expenses101 164 621 (39)847 
Gain on dispositions(49)— — — (49)
Operating profit155 327 409 — 891 
Other (income) expense, net(5)— 13 — 
Interest expense (income), net
37 — (5)— 32 
Non-operating intercompany transactions
100 (6)(107)13 — 
Income before taxes on income
23 333 508 (13)851 
Provision for taxes on income16 80 93 — 189 
Equity in net income of subsidiaries
622 — — (622)— 
Net income$629 $253 $415 $(635)$662 
Less: net income attributable to noncontrolling interests
— — — (45)(45)
Net income attributable to S&P Global Inc.
$629 $253 $415 $(680)$617 
Comprehensive income
$632 $253 $376 $(633)$628 
Statement of Income
Nine Months Ended September 30, 2019
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Revenue$617 $1,416 $3,047 $(116)$4,964 
Expenses:
Operating-related expenses
195 330 1,051 (116)1,460 
Selling and general expenses
55 222 715 — 992 
Depreciation
33 19 — 61 
   Amortization of intangibles— — 92 — 92 
      Total expenses283 561 1,877 (116)2,605 
Gain on dispositions(49)— — — (49)
Operating profit383 855 1,170 — 2,408 
Other expense, net96 — — 104 
Interest expense (income), net
115 — (10)— 105 
Non-operating intercompany transactions
291 (42)(1,444)1,195 — 
Income before taxes on income
(119)897 2,616 (1,195)2,199 
(Benefit) provision for taxes on income
(28)239 271 — 482 
Equity in net income of subsidiaries
2,868 — — (2,868)— 
Net income$2,777 $658 $2,345 $(4,063)$1,717 
Less: net income attributable to noncontrolling interests
— — — (135)(135)
Net income attributable to S&P Global Inc.
$2,777 $658 $2,345 $(4,198)$1,582 
Comprehensive income
$2,869 $658 $2,310 $(4,062)$1,775 
Balance Sheet
September 30, 2020
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
ASSETS
Current assets:
Cash and cash equivalents
$1,818 $— $1,330 $— $3,148 
Restricted cash
— — 20 — 20 
Accounts receivable, net of allowance for doubtful accounts
216 209 1,002 — 1,427 
Intercompany receivable
652 3,485 4,702 (8,839)— 
Prepaid and other current assets
104 (1)143 — 246 
Total current assets
2,790 3,693 7,197 (8,839)4,841 
Property and equipment, net of accumulated depreciation
188 — 110 — 298 
Right of use assets
364 245 — 610 
Goodwill
283 — 3,425 3,715 
Other intangible assets, net
— — 1,376 — 1,376 
Investments in subsidiaries
12,739 8,228 (20,973)— 
Intercompany loans receivable
17 — 1,107 (1,124)— 
Other non-current assets
238 33 342 (1)612 
Total assets
$16,619 $3,733 $22,030 $(30,930)$11,452 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$77 $10 $99 $— $186 
Intercompany payable
7,633 53 1,153 (8,839)— 
Accrued compensation and contributions to retirement plans
138 50 204 — 392 
Income taxes currently payable
16 — 63 — 79 
Unearned revenue
308 245 1,167 — 1,720 
Other current liabilities
171 13 254 — 438 
Total current liabilities
8,343 371 2,940 (8,839)2,815 
Long-term debt4,110 — — — 4,110 
Lease liabilities — non-current351 211 — 563 
Intercompany loans payable— — 1,124 (1,124)— 
Pension and other postretirement benefits174 — 88 — 262 
Other non-current liabilities204 76 413 — 693 
Total liabilities
13,182 448 4,776 (9,963)8,443 
Redeemable noncontrolling interest
— — — 2,511 2,511 
Equity:
Common stock
294 — 2,375 (2,375)294 
Additional paid-in capital
103 642 9,533 (9,361)917 
Retained income
16,722 2,643 5,845 (11,842)13,368 
Accumulated other comprehensive loss
(224)— (499)46 (677)
Less: common stock in treasury
(13,458)— (2)— (13,460)
Total equity - controlling interests
3,437 3,285 17,252 (23,532)442 
Total equity - noncontrolling interests
— — 54 56 
Total equity
3,437 3,285 17,254 (23,478)498 
Total liabilities and equity$16,619 $3,733 $22,030 $(30,930)$11,452 
Balance Sheet
December 31, 2019
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
ASSETS
Current assets:
Cash and cash equivalents
$1,130 $— $1,736 $— $2,866 
Restricted cash
— — 20 — 20 
Accounts receivable, net of allowance for doubtful accounts
229 148 1,200 — 1,577 
Intercompany receivable
675 2,855 3,983 (7,513)— 
Prepaid and other current assets
102 145 — 249 
Total current assets
2,136 3,005 7,084 (7,513)4,712 
Property and equipment, net of accumulated depreciation
204 — 116 — 320 
Right of use assets
402 273 — 676 
Goodwill
283 — 3,283 3,575 
Other intangible assets, net
— — 1,424 — 1,424 
Investments in subsidiaries
12,134 8,088 (20,228)— 
Intercompany loans receivable
17 — 1,229 (1,246)— 
Other non-current assets
281 37 324 (1)641 
Total assets
$15,457 $3,049 $21,821 $(28,979)$11,348 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$80 $11 $99 $— $190 
Intercompany payable
6,288 27 1,198 (7,513)— 
Accrued compensation and contributions to retirement plans
148 61 237 — 446 
Income taxes currently payable
— 61 — 68 
Unearned revenue
297 243 1,388 — 1,928 
Other current liabilities
187 18 256 — 461 
Total current liabilities
7,007 360 3,239 (7,513)3,093 
Long-term debt3,948 — — — 3,948 
Lease liabilities — non-current383 236 — 620 
Intercompany loans payable— — 1,246 (1,246)— 
Pension and other postretirement benefits178 — 81 — 259 
Other non-current liabilities171 81 373 (1)624 
Total liabilities
11,687 442 5,175 (8,760)8,544 
Redeemable noncontrolling interest
— — — 2,268 2,268 
Equity:
Common stock
294 — 2,377 (2,377)294 
Additional paid-in capital
112 632 9,362 (9,203)903 
Retained income
15,836 1,975 5,404 (11,010)12,205 
Accumulated other comprehensive loss
(175)— (497)48 (624)
Less: common stock in treasury
(12,297)— (2)— (12,299)
Total equity - controlling interests
3,770 2,607 16,644 (22,542)479 
Total equity - noncontrolling interests
— — 55 57 
Total equity
3,770 2,607 16,646 (22,487)536 
Total liabilities and equity
$15,457 $3,049 $21,821 $(28,979)$11,348 
Statement of Cash Flows
Nine Months Ended September 30, 2020
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Operating Activities:
Net income$3,116 $916 $2,517 $(4,520)$2,029 
Adjustments to reconcile net income to cash provided by operating activities:
     Depreciation 30 22 — 60 
     Amortization of intangibles— — 94 — 94 
     Provision for losses on accounts receivable— 16 
     Deferred income taxes(12)— (2)— (14)
     Stock-based compensation24 10 26 — 60 
     Gain on dispositions(5)— (11)— (16)
     Pension settlement charge, net of taxes— — — 
     Loss on extinguishment of debt279 — — — 279 
     Other22 — 28 — 50 
Changes in operating assets and liabilities, net of effect of acquisitions:
     Accounts receivable (46)209 — 172 
     Prepaid and other current assets(46)21 (27)— (52)
     Accounts payable and accrued expenses(19)(16)(62)— (97)
     Unearned revenue12 (174)— (158)
     Other current liabilities(18)(5)(5)— (28)
     Net change in prepaid/accrued income taxes57 (28)(1)— 28 
     Net change in other assets and liabilities20 (13)(6)— 
Cash provided by operating activities3,473 855 2,618 (4,520)2,426 
Investing Activities:
     Capital expenditures (10)(5)(28)— (43)
     Acquisitions, net of cash acquired— — (189)— (189)
     Proceeds from dispositions— — — 
     Changes in short-term investments— — 19 — 19 
Cash used for investing activities(10)(5)(189)— (204)
Financing Activities:
     Proceeds from issuance of senior notes, net1,276 — — — 1,276 
 Payments on senior notes
(1,394)— — — (1,394)
     Dividends paid to shareholders(484)— — — (484)
 Distributions to noncontrolling interest holders, net
— — (143)— (143)
     Repurchase of treasury shares(1,164)— — — (1,164)
     Exercise of stock options11 — — 14 
Employee withholding tax on share-based payments
(55)— — — (55)
     Intercompany financing activities(965)(850)(2,705)4,520 — 
Cash used for financing activities(2,775)(850)(2,845)4,520 (1,950)
Effect of exchange rate changes on cash— — 10 — 10 
Net change in cash, cash equivalents, and restricted cash688 — (406)— 282 
Cash, cash equivalents, and restricted cash at beginning of period1,130 — 1,756 — 2,886 
Cash, cash equivalents, and restricted cash at end of period$1,818 $— $1,350 $— $3,168 
Statement of Cash Flows
Nine Months Ended September 30, 2019
(Unaudited)
(in millions)S&P Global Inc.Standard & Poor's Financial Services LLCNon-Guarantor SubsidiariesEliminationsS&P Global Inc. Consolidated
Operating Activities:
Net income$2,777 $658 $2,345 $(4,063)$1,717 
Adjustments to reconcile net income to cash provided by operating activities:
     Depreciation 33 19 — 61 
     Amortization of intangibles— — 92 — 92 
     Provision for losses on accounts receivable11 — 17 
     Deferred income taxes22 10 — 33 
     Stock-based compensation17 27 — 53 
     Gain on dispositions(49)— — — (49)
     Pension settlement charge, net of taxes85 — — — 85 
     Other12 31 — 49 
Changes in operating assets and liabilities, net of effect of acquisitions:
     Accounts receivable (90)(86)126 — (50)
     Prepaid and other current assets(20)(41)— (59)
     Accounts payable and accrued expenses(17)(1)(36)— (54)
     Unearned revenue35 21 (83)— (27)
     Other current liabilities(62)(6)(14)— (82)
     Net change in prepaid/accrued income taxes31 — 40 
     Net change in other assets and liabilities(56)(3)— (54)
Cash provided by operating activities2,723 612 2,500 (4,063)1,772 
Investing Activities:
     Capital expenditures (32)(3)(42)— (77)
     Acquisitions, net of cash acquired— — (25)— (25)
     Proceeds from dispositions85 — — — 85 
     Changes in short-term investments— — (3)— (3)
Cash used for investing activities53 (3)(70)— (20)
Financing Activities:
     Dividends paid to shareholders
(421)— — — (421)
 Distributions to noncontrolling interest holders, net
— — (100)— (100)
     Repurchase of treasury shares(1,144)— — — (1,144)
     Exercise of stock options36 — — 38 
Employee withholding tax on share-based payments, and other
(55)— (2)— (57)
     Intercompany financing activities(1,377)(609)(2,077)4,063 — 
Cash used for financing activities(2,961)(609)(2,177)4,063 (1,684)
Effect of exchange rate changes on cash— — (7)— (7)
Net change in cash, cash equivalents, and restricted cash(185)— 246 — 61 
Cash, cash equivalents, and restricted cash at beginning of period694 — 1,264 — 1,958 
Cash, cash equivalents, and restricted cash at end of period$509 $— $1,510 $— $2,019