63
Free Cash Flow / Capital Investments

Capital Expenditures

(dollars in millions)

'14
'15
'16
'17
'18
Ratings
$33
$48
$42
$45
$42
Market Intelligence
38
60
40
37
30
Platts*
11
18
17
15
9
Indices
2
4
3
3
3
Corporate
8
9
13
23
29
Total
$92
$139
$115
$123
$113

* includes J.D. Power through 9/2016

Depreciation

(dollars in millions)

'14
'15
'16
'17
'18
Ratings
$37
$38
$29
$30
$30
Market Intelligence
24
29
34
34
26
Platts*
13
13
12
7
9
Indices
2
3
2
2
3
Corporate
10
7
8
9
16
Total
$86
$90
$85
$82
$84

Note:  Depreciation includes amortization of technology projects

Amortization of Intangibles

(dollars in millions)

'14
'15
'16
'17
'18
Ratings
$6
$5
$5
$4
$2
Market Intelligence
26
41
71
71
73
Platts*
11
16
14
18
18
Indices
5
5
6
6
6
Corporate
23
Total
$48
$67
$96
$98
$122

Free Cash Flow

Reconciliation of Non-GAAP Financial Information

Years ended December 31
(dollars in millions)

200820092010SPGI (1, 2, 3, 4, 5, 6, 7, 8, 9)20112012201320142015201620172018

Cash provided by operating activities

$1,178$1,330$704$924$730$782$1,428$356$1,560$2,016$2,064

Investment in prepublication costs

(254)(177)

Capital expenditures

(131)(92)(86)(92)(96)(117)(92)(139)(115)(123)(113)

Distributions to noncontrolling interest holders

(9)(9)(34)(23)(24)(75)(84)(104)(116)(111)(154)

Free cash flow

$784$1,052$584$809$610$590$1,252$113$1,329$1,782$1,797

Tax on gain from sale of J.D. Power

200

Tax on gain from sale of SPSE and CMA

67

Payment of legal and regulatory settlements

351,6241504180

Legal settlement insurance recoveries

(101)(77)

Settlement from prior-year tax audits

73

Tax benefit from legal settlements

(250)(24)(2)(44)

Free cash flow excluding above items

$784$1,052$584$809$610$590$1,287$1,386$1,578$1,851$2,006
200820092010SPGI (1, 2, 3, 4, 5, 6, 7, 8, 9)20112012201320142015201620172018

Cash provided by operating activities

$1,178$1,330$704$924$730$782$1,428$356$1,560$2,016$2,064

Investment in prepublication costs

(254)(177)

Capital expenditures

(131)(92)(86)(92)(96)(117)(92)(139)(115)(123)(113)

Distributions to noncontrolling interest holders

(9)(9)(34)(23)(24)(75)(84)(104)(116)(111)(154)

Free cash flow

$784$1,052$584$809$610$590$1,252$113$1,329$1,782$1,797

Tax on gain from sale of J.D. Power

200

Tax on gain from sale of SPSE and CMA

67

Payment of legal and regulatory settlements

351,6241504180

Legal settlement insurance recoveries

(101)(77)

Settlement from prior-year tax audits

73

Tax benefit from legal settlements

(250)(24)(2)(44)

Free cash flow excluding above items

$784$1,052$584$809$610$590$1,287$1,386$1,578$1,851$2,006

 

Free cash flow, excluding certain items, was approximately $2 billion in 2018

Notes:
(1)

The free cash flow presentation for 2012–2014 reflects McGraw Hill Construction as a discontinued operation and 2010–2013 reflects McGraw-Hill Education as a discontinued operation. Prior years were not restated

(2)

2012 free cash flow was influenced by costs to enable the separation of McGraw-Hill Education and a pension contribution in Q4 2012

(3)

2013 free cash flow was influenced by a tax payment in Q1 2013 that was extended from Q4 2012, a legal settlement, and a payment related to an early lease termination

(4)

2014 free cash flow was influenced by a tax refund received in Q1 2014 for an overpayment in 2013 and improved collections impacting accounts receivable

(5)

2015 free cash flow was influenced by after-tax legal and regulatory settlements and insurance recoveries

(6)

2016 free cash flow was influenced by after-tax legal settlements, insurance recoveries, and tax on gain from sale of J.D. Power

(7)

2017 free cash flow was influenced by after-tax legal settlements and tax on gain from sale of SPSE and CMA

(8)

2014, 2015, and 2016 free cash flow presentation reflects the adoption of Accounting Standards Update (ASU) 2016–09. Prior years were not restated

(9)

2014–2018 free cash flow presentation reflects the adoption of Accounting Standards Update (ASU) 2016-09. Prior years were not restated

Details may not sum to total due to rounding