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 LLC | | Non-Guarantor Subsidiaries | | Eliminations | | S&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 | | | 2 | | | 339 | | Depreciation | 9 | | | 2 | | | 9 | | | — | | | 20 | | Amortization of intangibles | — | | | — | | | 32 | | | — | | | 32 | | Total expenses | 63 | | | 206 | | | 683 | | | (42) | | | 910 | | Gain on dispositions | (5) | | | — | | | (3) | | | — | | | (8) | | Operating profit | 161 | | | 335 | | | 448 | | | — | | | 944 | | Other income, net | (4) | | | — | | | (2) | | | — | | | (6) | | Interest expense (income), net | 35 | | | 1 | | | (1) | | | — | | | 35 | | Loss on extinguishment of debt | 279 | | | — | | | — | | | — | | | 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 LLC | | Non-Guarantor Subsidiaries | | Eliminations | | S&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 | | | 8 | | | 22 | | | — | | | 60 | | Amortization of intangibles | — | | | — | | | 94 | | | — | | | 94 | | Total expenses | 224 | | | 530 | | | 2,001 | | | (124) | | | 2,631 | | Gain on dispositions | (5) | | | — | | | (11) | | | — | | | (16) | | Operating profit | 426 | | | 1,187 | | | 1,347 | | | — | | | 2,960 | | Other income, net | (12) | | | — | | | (4) | | | — | | | (16) | | Interest expense (income), net | 112 | | | 1 | | | (4) | | | — | | | 109 | | Loss on extinguishment of debt | 279 | | | — | | | — | | | — | | | 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 LLC | | Non-Guarantor Subsidiaries | | Eliminations | | S&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 | | Depreciation | 11 | | | 3 | | | 6 | | | — | | | 20 | | Amortization of intangibles | — | | | — | | | 29 | | | — | | | 29 | | Total expenses | 101 | | | 164 | | | 621 | | | (39) | | | 847 | | Gain on dispositions | (49) | | | — | | | — | | | — | | | (49) | | Operating profit | 155 | | | 327 | | | 409 | | | — | | | 891 | | Other (income) expense, net | (5) | | | — | | | 13 | | | — | | | 8 | | 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 income | 16 | | | 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 LLC | | Non-Guarantor Subsidiaries | | Eliminations | | S&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 | | | 9 | | | 19 | | | — | | | 61 | | Amortization of intangibles | — | | | — | | | 92 | | | — | | | 92 | | Total expenses | 283 | | | 561 | | | 1,877 | | | (116) | | | 2,605 | | Gain on dispositions | (49) | | | — | | | — | | | — | | | (49) | | Operating profit | 383 | | | 855 | | | 1,170 | | | — | | | 2,408 | | Other expense, net | 96 | | | — | | | 8 | | | — | | | 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 LLC | | Non-Guarantor Subsidiaries | | Eliminations | | S&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 | | | 1 | | | 245 | | | — | | | 610 | | Goodwill | 283 | | | — | | | 3,425 | | | 7 | | | 3,715 | | Other intangible assets, net | — | | | — | | | 1,376 | | | — | | | 1,376 | | Investments in subsidiaries | 12,739 | | | 6 | | | 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 debt | 4,110 | | | — | | | — | | | — | | | 4,110 | | Lease liabilities — non-current | 351 | | | 1 | | | 211 | | | — | | | 563 | | Intercompany loans payable | — | | | — | | | 1,124 | | | (1,124) | | | — | | Pension and other postretirement benefits | 174 | | | — | | | 88 | | | — | | | 262 | | Other non-current liabilities | 204 | | | 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 | — | | | — | | | 2 | | | 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 LLC | | Non-Guarantor Subsidiaries | | Eliminations | | S&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 | | | 2 | | | 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 | | | 1 | | | 273 | | | — | | | 676 | | Goodwill | 283 | | | — | | | 3,283 | | | 9 | | | 3,575 | | Other intangible assets, net | — | | | — | | | 1,424 | | | — | | | 1,424 | | Investments in subsidiaries | 12,134 | | | 6 | | | 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 | 7 | | | — | | | 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 debt | 3,948 | | | — | | | — | | | — | | | 3,948 | | Lease liabilities — non-current | 383 | | | 1 | | | 236 | | | — | | | 620 | | Intercompany loans payable | — | | | — | | | 1,246 | | | (1,246) | | | — | | Pension and other postretirement benefits | 178 | | | — | | | 81 | | | — | | | 259 | | Other non-current liabilities | 171 | | | 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 | — | | | — | | | 2 | | | 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 LLC | | Non-Guarantor Subsidiaries | | Eliminations | | S&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 | | | 8 | | | 22 | | | — | | | 60 | | Amortization of intangibles | — | | | — | | | 94 | | | — | | | 94 | | Provision for losses on accounts receivable | 4 | | | 4 | | | 8 | | | — | | | 16 | | Deferred income taxes | (12) | | | — | | | (2) | | | — | | | (14) | | Stock-based compensation | 24 | | | 10 | | | 26 | | | — | | | 60 | | Gain on dispositions | (5) | | | — | | | (11) | | | — | | | (16) | | Pension settlement charge, net of taxes | — | | | — | | | 2 | | | — | | | 2 | | Loss on extinguishment of debt | 279 | | | — | | | — | | | — | | | 279 | | Other | 22 | | | — | | | 28 | | | — | | | 50 | | Changes in operating assets and liabilities, net of effect of acquisitions: | | | | | | | | | | Accounts receivable | 9 | | | (46) | | | 209 | | | — | | | 172 | | Prepaid and other current assets | (46) | | | 21 | | | (27) | | | — | | | (52) | | Accounts payable and accrued expenses | (19) | | | (16) | | | (62) | | | — | | | (97) | | Unearned revenue | 12 | | | 4 | | | (174) | | | — | | | (158) | | | | | | | | | | | | Other current liabilities | (18) | | | (5) | | | (5) | | | — | | | (28) | | Net change in prepaid/accrued income taxes | 57 | | | (28) | | | (1) | | | — | | | 28 | | Net change in other assets and liabilities | 20 | | | (13) | | | (6) | | | — | | | 1 | | Cash provided by operating activities | 3,473 | | | 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 | — | | | — | | | 9 | | | — | | | 9 | | Changes in short-term investments | — | | | — | | | 19 | | | — | | | 19 | | Cash used for investing activities | (10) | | | (5) | | | (189) | | | — | | | (204) | | Financing Activities: | | | | | | | | | | | | | | | | | | | | Proceeds from issuance of senior notes, net | 1,276 | | | — | | | — | | | — | | | 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 options | 11 | | | — | | | 3 | | | — | | | 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 cash | 688 | | | — | | | (406) | | | — | | | 282 | | Cash, cash equivalents, and restricted cash at beginning of period | 1,130 | | | — | | | 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 LLC | | Non-Guarantor Subsidiaries | | Eliminations | | S&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 | | | 9 | | | 19 | | | — | | | 61 | | Amortization of intangibles | — | | | — | | | 92 | | | — | | | 92 | | Provision for losses on accounts receivable | 5 | | | 1 | | | 11 | | | — | | | 17 | | Deferred income taxes | 22 | | | 1 | | | 10 | | | — | | | 33 | | Stock-based compensation | 17 | | | 9 | | | 27 | | | — | | | 53 | | Gain on dispositions | (49) | | | — | | | — | | | — | | | (49) | | Pension settlement charge, net of taxes | 85 | | | — | | | — | | | — | | | 85 | | Other | 12 | | | 6 | | | 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) | | | 2 | | | (41) | | | — | | | (59) | | Accounts payable and accrued expenses | (17) | | | (1) | | | (36) | | | — | | | (54) | | Unearned revenue | 35 | | | 21 | | | (83) | | | — | | | (27) | | | | | | | | | | | | Other current liabilities | (62) | | | (6) | | | (14) | | | — | | | (82) | | Net change in prepaid/accrued income taxes | 31 | | | 1 | | | 8 | | | — | | | 40 | | Net change in other assets and liabilities | (56) | | | (3) | | | 5 | | | — | | | (54) | | Cash provided by operating activities | 2,723 | | | 612 | | | 2,500 | | | (4,063) | | | 1,772 | | Investing Activities: | | | | | | | | | | Capital expenditures | (32) | | | (3) | | | (42) | | | — | | | (77) | | Acquisitions, net of cash acquired | — | | | — | | | (25) | | | — | | | (25) | | Proceeds from dispositions | 85 | | | — | | | — | | | — | | | 85 | | Changes in short-term investments | — | | | — | | | (3) | | | — | | | (3) | | Cash used for investing activities | 53 | | | (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 options | 36 | | | — | | | 2 | | | — | | | 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 period | 694 | | | — | | | 1,264 | | | — | | | 1,958 | | Cash, cash equivalents, and restricted cash at end of period | $ | 509 | | | $ | — | | | $ | 1,510 | | | $ | — | | | $ | 2,019 | |
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