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Non-GAAP Adjustments and Deal-Related Amortization

2018 Income from operations before taxes includes:

  • Q4—$16 million ($12 million after-tax) in employee severance charges, $9 million ($7 million after-tax) of Kensho retention-related expense, $5 million ($4 million after-tax) pension-related charge, $1 million ($1 million after-tax) legal settlement expenses, and $31 million ($24 million after-tax) in amortization of intangibles from acquisitions
  • Q3—$11 million ($8 million after-tax) of Kensho retention-related expense, $11 million ($8 million after-tax) of lease impairments, $7 million ($5 million after-tax) in employee severance charges, $2 million ($2 million after-tax) of restructuring charges related to a business disposition and employee severance charges, and $33 million ($26 million after-tax) in amortization of intangibles from acquisitions
  • Q2—$73 million ($55 million after-tax) legal settlement expenses, $12 million ($9 million after-tax) of Kensho retention-related expense, and $33 million ($25 million after-tax) in amortization of intangibles from acquisitions
  • Q1—$24 million ($18 million after-tax) in amortization of intangibles from acquisitions

Note: Net income in Q3 includes an adjustment to the provisional tax charge recorded in Q4 2017 of $8 million

2017 Income from operations before taxes includes:

  • Q4—$53 million ($33 million after-tax) legal settlement expenses, a $19 million ($16 million after-tax) charge to exit a leased facility, $18 million ($11 million after-tax) in employee severance charges, $8 million ($7 million after-tax) pension-related charge, and $25 million ($16 million after-tax) in amortization of intangibles from acquisitions
  • Q3—$19 million ($12 million after-tax) in employee severance charges and $24 million ($15 million after-tax) in amortization of intangibles from acquisitions 
  • Q2—A $6 million ($3 million after-tax) charge to exit a leased facility, $5 million ($4 million after-tax) in employee severance charges, $2 million ($1 million after-tax) asset write-off, and $25 million ($17 million after-tax) in amortization of intangibles from acquisitions
  • Q1—$2 million ($1 million after-tax) legal settlement expenses, $15 million ($7 million after-tax) of non-cash acquisition and disposition-related adjustments, and $24 million ($15 million after-tax) in amortization of intangibles from acquisitions

Note: Net income in Q4 includes $149 million of tax expense due to U.S. tax reform, primarily associated with the deemed repatriation of foreign earnings, which was partially offset by a $21 million tax benefit related to prior year divestitures

2016 Income from operations before taxes includes:

  • Q4—$54 million ($33 million after-tax) legal settlement expenses, a $379 million ($297 million after-tax) gain on dispositions, $31 million ($31 million after-tax) of disposition-related costs, a $21 million ($13 million after-tax) redemption fee related to the early payment of our Senior Notes, and $25 million ($16 million after-tax) in amortization of intangibles from acquisitions
  • Q3—A $17 million ($9 million after-tax) benefit related to net legal settlement insurance recoveries, $6 million ($3 million after-tax) of disposition-related costs, $1 million ($1 million after-tax) of an acquisition-related cost, $722 million ($521 million after-tax) gain on the sale of J.D. Power, and $23 million ($15 million after-tax) in amortization of intangibles from acquisitions
  • Q2—A $34 million ($21 million after-tax) benefit related to net legal settlement insurance recoveries, $10 million ($6 million after-tax) of disposition-related costs, $6 million ($4 million after-tax) in employee severance charges, $3 million ($2 million after-tax) from a disposition-related reserve release, and $23 million ($15 million after-tax) in amortization of intangibles from acquisitions
  • Q1—A $12 million ($7 million after-tax) benefit related to net legal settlement insurance recoveries, a $24 million ($16 million after-tax) technology-related impairment charge, $3 million ($1 million after-tax) of disposition-related costs, and $24 million ($16 million after-tax) in amortization of intangibles from acquisitions

2015 Income from continuing operations before taxes includes:

  • Q4—$15 million ($10 million after-tax) of legal settlement expenses, $34 million ($22 million after-tax) of costs related to identified operating efficiencies primarily related to employee severance charges, $6 million ($3 million after-tax) of acquisition-related costs, and $27 million ($20 million after-tax) in amortization of intangibles from acquisitions
  • Q3—$86 million ($53 million after-tax) of net legal settlement expenses, $32 million ($20 million after-tax) of acquisition-related costs, and $17 million ($11 million after-tax) in amortization of intangibles from acquisitions
  • Q2—A $41 million ($25 million after-tax) benefit related to net legal settlement insurance recoveries, $22 million ($14 million after-tax) in employee severance charges, an $11 million ($7 million after-tax) gain on dispositions, and $11 million ($7 million after-tax) in amortization of intangibles from acquisitions
  • Q1—A $6 million ($3 million after-tax) benefit related to net legal settlement insurance recoveries and $11 million ($7 million after-tax) in amortization of intangibles from acquisitions

2014 Income from continuing operations before taxes includes:

  • Q4—A $1.6 billion ($1.2 billion after-tax) charge for legal and regulatory settlements, approximately $40 million ($27 million after-tax) in employee severance charges, and $12 million ($8 million after-tax) in amortization of intangibles from acquisitions
  • Q3—A $60 million ($60 million after-tax) charge for certain regulatory matters, $46 million ($31 million after-tax) in employee severance charges, $4 million ($3 million after-tax) in professional fees largely related to corporate development activities, and $12 million ($8 million after-tax) in amortization of intangibles from acquisitions
  • Q2—$12 million ($8 million after-tax) in amortization of intangibles from acquisitions
  • Q1—$12 million ($8 million after-tax) in amortization of intangibles from acquisitions

Discontinued Operations

McGraw Hill Construction was sold in 2014. S&P Global’s results for 2010–2014 reflect McGraw Hill Construction as a discontinued operation