4-5
Adjusted Operating Results by Division

The 2020 Investor Fact Book reflects:

Revenue from Kensho contract obligations in Market Intelligence’s results, starting in 1Q 2019: Beginning in the first quarter of 2019, the contract obligations for revenue from Kensho Technologies Inc.’s (“Kensho”) major customers were transferred from Corporate to Market Intelligence for fulfillment. In 2018, this revenue was reported in Corporate revenue. Effective January 1, 2019, revenue from these contracts is reflected in Market Intelligence’s results.

Technology-related expenses allocated to each reportable segment for 2018 and 2019: In the first quarter of 2020, the Company changed its methodology for allocating its centrally managed technology-related expenses to its reportable segments to more accurately reflect each segment’s respective usage. Results recast for 2018 and 2019; prior years not restated. As a result, percent increases/decreases from 2017 to 2018 are not calculated.

Adjusted Operating Results by Division*:  2019

Ratings (1, 2)

$3.1b
$ 1 .8b 53% of $ 1 .8b

Market Intelligence (1, 3)

$2.0b
$629m

Platts (4)

$844m
$424m 13% of

Indices (5)

$918m
$635m 19% of

Adjusted Operating Division Trends*:  2015–2019

Ratings (1, 2)

Revenue
 

(dollars in millions)

'15
'16
'17
'18
'19
$2,428
$2,535
$2,988
$2,883
$3,106

Adjusted Division Operating Profit
 

(dollars in milions)

'15
'16
'17
'18
'19
$1,146
$1,257
$1,601
$1,637
$1,796

Adjusted Division Operating Profit Margin

 

 

'15
'16
'17
'18
'19
47.2%
49.6%
53.6%
56.8%
57.8%

Note for Ratings:

Excludes the impact of $74 million of legal settlement expenses in 2018, $55 million of legal settlement expenses in 2017, a $10 million benefit related to net legal settlement insurance recoveries in 2016, and $54 million of net legal settlement expenses in 2015

Market Intelligence (1, 3)

Revenue

(dollars in millions)

'15
'16
'17
'18
'19
$1,405
$1,661
$1,683
$1,833
$1,959

Adjusted Division Operating Profit

(dollars in millions)

'15
'16
'17
'18
'19
336
496
540
580
629

Adjusted Division Operating Profit Margin

'15
'16
'17
'18
'19
23.9%
29.9%
32.1%
31.7%
32.1%

Notes for Market Intelligence:

2019 results reflect the acquisition of 451 Research, LLC and divestiture of Standard & Poor’s Investment Advisory Services LLC

2018 results reflect the acquisitions of the RateWatch business and Panjiva, Inc.

2017 results reflect the divestiture of QuantHouse

2016 results reflect the acquisition of Trucost and the divestitures of Standard & Poor’s Securities Evaluations, Inc. and Credit Market Analysis

2015 results reflect the acquisition of SNL Financial LC

Platts (4) (includes J.D. Power through 9/2016)

Revenue

(dollars in millions)

'15
'16
'17
'18
'19
J.D. Power, Other
$316
$214
Platts
655
711
774
815
844
Total
971
925
774
815
844

Adjusted Division Operating Profit

(dollars in millions)

'15
'16
'17
'18
'19
$373
$381
$365
$419
$443

Adjusted Division Operating Profit Margin

'15
'16
'17
'18
'19
38.4%
41.2%
47.1%
51.4%
52.4%

Notes for Platts:

Comparisons impacted by the sale of J.D. Power on September 7, 2016 with the results included in Platts results through that date

2019 results reflect the acquisitions of Canadian Enerdata Ltd. and Live Rice Index and the divestiture of RigData

2016 results reflect the acquisitions of PIRA Energy Group and RigData

2015 results reflect the acquisitions of Petromedia Ltd. and National Automobile Dealers Association’s Used Car Guide

Indices (5)

Revenue

(dollars in millions)

'15
'16
'17
'18
'19
597
638
728
837
918

Adjusted Division Operating Profit

(dollars in millions)

'15
'16
'17
'18
'19
397
419
484
571
637

Adjusted Division Operating Profit Margin
 

'15
'16
'17
'18
'19
66.5%
65.6%
66.4%
68.3%
69.5%

Notes for Indices:

Includes operating profit attributable to noncontrolling interests as part of the S&P Dow Jones Indices joint venture established in June 2012

Notes:
*

SPGI:  S&P Global’s operations consist of four reportable segments:  S&P Global Ratings (“Ratings”), S&P Global Market Intelligence (“Market Intelligence”), S&P Global Platts (“Platts”), and S&P Dow Jones Indices (“Indices”). Reportable segments are referred to as divisions in the Company’s 2020 Investor Fact Book

The Ratings division includes S&P Global Ratings, which is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (“NRSRO”);  CRISIL Limited, a global analytical company incorporated in India; and certain other ratings-related businesses. Unless otherwise noted, the presentations are for S&P Global Ratings as a division

(1)

Division revenues do not include interdivision revenue elimination of $128 million in 2019, $125 million in 2018, $110 million in 2017, $98 million in 2016, and $88 million in 2015. Percentages may sum to greater than 100%

(2)

Excludes the impact of $74 million of legal settlement expenses in 2018, $55 million of legal settlement expenses in 2017, a $10 million benefit related to net legal settlement insurance recoveries in 2016, and $54 million of net legal settlement expenses in 2015

(3)

2019 results reflect the acquisition of 451 Research, LLC and divestiture of Standard & Poor’s Investment Advisory Services LLC. 2018 results reflect the acquisitions of the RateWatch business and Panjiva, Inc. 2017 results reflect the divestiture of QuantHouse. 2016 results reflect the acquisition of Trucost and the divestitures of Standard & Poor’s Securities Evaluations, Inc. and Credit Market Analysis. 2015 results reflect the acquisition of SNL Financial LC

(4)

2019 results reflect the acquisitions of Canadian Enerdata Ltd. and Live Rice Index and the divestiture of RigData. 2016 results reflect the acquisitions of PIRA Energy Group and RigData. Additionally, the Company completed the sale of J.D. Power on September 7, 2016, with the results included in Platts results through that date. 2015 results reflect the acquisitions of Petromedia Ltd. and National Automobile Dealers Association’s Used Car Guide

(5)

Includes operating profit attributable to noncontrolling interests ($170 million in 2019, $151 million in 2018, $129 million in 2017, $109 million in 2016, $101 million in 2015) as part of the S&P Dow Jones Indices joint venture established in June 2012

See Appendix (pages 73-79) for notes and Reconciliation of Adjusted Information to U.S. GAAP