Cover Page
Cover Page - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 24, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Entity Central Index Key | 0000064040 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-1023 | ||
Entity Registrant Name | S&P Global Inc. | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-1026995 | ||
Entity Address, Address Line One | 55 Water Street | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10041 | ||
City Area Code | 212 | ||
Local Phone Number | 438-1000 | ||
Title of 12(b) Security | Common Stock — $1 par value | ||
Trading Symbol | SPGI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 56.1 | ||
Entity Common Stock, Share outstanding | 243.8 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||
Revenue | $ 1,735 | $ 1,536 | $ 6,699 | $ 6,258 | $ 6,063 |
Expenses: | |||||
Operating-related expenses | 1,801 | 1,698 | 1,694 | ||
Selling and general expenses | 1,517 | 1,564 | 1,606 | ||
Depreciation | 82 | 84 | 82 | ||
Amortization of intangibles | 122 | 122 | 98 | ||
Total expenses | 3,522 | 3,468 | 3,480 | ||
Gain on dispositions | (49) | 0 | 0 | ||
Operating profit | 818 | 704 | 3,226 | 2,790 | 2,583 |
Other expense (income), net | 98 | (25) | (27) | ||
Interest expense, net | 198 | 134 | 149 | ||
Income before taxes on income | 2,930 | 2,681 | 2,461 | ||
Provision for taxes on income | 627 | 560 | 823 | ||
Net income | 585 | 551 | 2,303 | 2,121 | 1,638 |
Less: net income attributable to noncontrolling interests | (180) | (163) | (142) | ||
Net income attributable to S&P Global Inc. | $ 541 | $ 512 | $ 2,123 | $ 1,958 | $ 1,496 |
Net income: | |||||
Basic (USD per share) | $ 2.22 | $ 2.06 | $ 8.65 | $ 7.80 | $ 5.84 |
Diluted (USD per share) | $ 2.20 | $ 2.03 | $ 8.60 | $ 7.73 | $ 5.78 |
Weighted-average number of common shares outstanding: | |||||
Basic (shares) | 245.4 | 250.9 | 256.3 | ||
Diluted (shares) | 246.9 | 253.2 | 258.9 | ||
Actual shares outstanding at year end (shares) | 244 | 248.4 | 244 | 248.4 | 253.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,303 | $ 2,121 | $ 1,638 |
Other comprehensive income: | |||
Foreign currency translation adjustments | 10 | (96) | 93 |
Income tax effect | 8 | (4) | 0 |
Foreign currency translation adjustment, net of income tax effect | 18 | (100) | 93 |
Pension and other postretirement benefit plans | 141 | (14) | 52 |
Income tax effect | (39) | 9 | (11) |
Pension and other postretirement benefit plans, net of income tax effect | 102 | (5) | 41 |
Unrealized (loss) gain on investment and forward exchange contracts | (2) | 2 | (10) |
Income tax effect | 0 | 0 | 0 |
Unrealized loss on investment and forward exchange contracts, net of income tax effect | (2) | 2 | (10) |
Comprehensive income | 2,421 | 2,018 | 1,762 |
Less: comprehensive income attributable to nonredeemable noncontrolling interests | (10) | (12) | (13) |
Less: comprehensive income attributable to redeemable noncontrolling interests | (170) | (151) | (129) |
Comprehensive income attributable to S&P Global Inc. | $ 2,241 | $ 1,855 | $ 1,620 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,866 | $ 1,917 |
Restricted cash | 20 | 41 |
Short-term investments | 28 | 18 |
Accounts receivable, net of allowance for doubtful accounts: 2019- $34; 2018 - $34 | 1,577 | 1,449 |
Prepaid and other current assets | 221 | 162 |
Total current assets | 4,712 | 3,587 |
Property and equipment: | ||
Buildings and leasehold improvements | 420 | 372 |
Equipment and furniture | 522 | 494 |
Total property and equipment | 942 | 866 |
Less: accumulated depreciation | (622) | (596) |
Property and equipment, net | 320 | 270 |
Right of use assets | 676 | 0 |
Goodwill | 3,575 | 3,535 |
Other intangible assets, net | 1,424 | 1,524 |
Other non-current assets | 641 | 525 |
Total assets | 11,348 | 9,441 |
Current liabilities: | ||
Accounts payable | 190 | 211 |
Accrued compensation and contributions to retirement plans | 446 | 354 |
Income taxes currently payable | 68 | 73 |
Unearned revenue | 1,928 | 1,641 |
Other current liabilities | 461 | 351 |
Total current liabilities | 3,093 | 2,630 |
Long-term debt | 3,948 | 3,662 |
Lease liabilities – non-current | 620 | 0 |
Pension and other postretirement benefits | 259 | 229 |
Other non-current liabilities | 624 | 616 |
Total liabilities | 8,544 | 7,137 |
Redeemable noncontrolling interest | 2,268 | 1,620 |
Commitments and contingencies (Note 13) | ||
Equity: | ||
Common stock, $1 par value: authorized - 600 million shares; issued: 2019 - 294 million shares; 2018 - 294 million shares | 294 | 294 |
Additional paid-in capital | 903 | 833 |
Retained income | 12,205 | 11,284 |
Accumulated other comprehensive loss | (624) | (742) |
Less: common stock in treasury - at cost: 2019 - 50 million shares; 2018 - 45 million shares | (12,299) | (11,041) |
Total equity – controlling interests | 479 | 628 |
Total equity – noncontrolling interests | 57 | 56 |
Total equity | 536 | 684 |
Total liabilities and equity | $ 11,348 | $ 9,441 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 34 | $ 34 |
Common stock, par value (USD per share) | $ 1 | $ 1 |
Common stock authorized (shares) | 600,000,000 | 600,000,000 |
Common stock issued (shares) | 294,000,000 | 294,000,000 |
Treasury stock (shares) | 50,000,000 | 45,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||
Net income | $ 2,303 | $ 2,121 | $ 1,638 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 82 | 84 | 82 |
Amortization of intangibles | 122 | 122 | 98 |
Provision for losses on accounts receivable | 18 | 21 | 16 |
Deferred income taxes | 46 | 81 | 0 |
Stock-based compensation | 78 | 94 | 99 |
Gain on dispositions | (49) | 0 | 0 |
Accrued legal settlements | 0 | 1 | 55 |
Pension settlement charge, net of taxes | 85 | 0 | 0 |
Other | 93 | 52 | 96 |
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: | |||
Accounts receivable | (135) | (164) | (196) |
Prepaid and other current assets | (81) | (1) | 10 |
Accounts payable and accrued expenses | 73 | (106) | 75 |
Unearned revenue | 256 | 70 | 85 |
Accrued legal settlements | (1) | (108) | (4) |
Other current liabilities | (56) | (67) | (85) |
Net change in prepaid/accrued income taxes | (41) | (7) | 32 |
Net change in other assets and liabilities | (17) | (129) | 15 |
Cash provided by operating activities | 2,776 | 2,064 | 2,016 |
Investing Activities: | |||
Capital expenditures | (115) | (113) | (123) |
Acquisitions, net of cash acquired | (91) | (401) | (83) |
Proceeds from dispositions | 85 | 6 | 2 |
Changes in short-term investments | (10) | (5) | (5) |
Cash used for investing activities | (131) | (513) | (209) |
Financing Activities: | |||
Proceeds from issuance of senior notes, net | 1,086 | 489 | 0 |
Payments on senior notes | (868) | (403) | 0 |
Dividends paid to shareholders | (560) | (503) | (421) |
Distributions to noncontrolling interest holders, net | (143) | (154) | (111) |
Repurchase of treasury shares | (1,240) | (1,660) | (1,001) |
Exercise of stock options | 40 | 34 | 75 |
Purchase of additional CRISIL shares | 0 | (25) | 0 |
Employee withholding tax on share-based payments and other | (66) | (66) | (49) |
Cash used for financing activities | (1,751) | (2,288) | (1,507) |
Effect of exchange rate changes on cash | 34 | (84) | 87 |
Net change in cash, cash equivalents, and restricted cash | 928 | (821) | 387 |
Cash, cash equivalents, and restricted cash at beginning of year | 1,958 | 2,779 | 2,392 |
Cash, cash equivalents, and restricted cash at end of year | 2,886 | 1,958 | 2,779 |
Cash paid during the year for: | |||
Interest | 162 | 151 | 139 |
Income taxes | $ 659 | $ 558 | $ 709 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Total SPGI Equity | Common Stock $1 par | Additional Paid-in Capital | Retained Income | Accumulated Other Comprehensive Loss | Less: Treasury Stock | Noncontrolling Interests | |||
Beginning Balance at Dec. 31, 2016 | $ 701 | $ 650 | $ 412 | $ 502 | $ 9,210 | $ (773) | $ (8,701) | $ 51 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | [1] | 1,635 | 1,620 | 1,496 | 124 | 15 | |||||
Dividends (Dividend declared per common share) | (431) | (421) | (421) | (10) | |||||||
Share repurchases | (1,006) | (1,001) | 1,001 | (5) | |||||||
Employee stock plans | 131 | 123 | 23 | (100) | 8 | ||||||
Change in redemption value of redeemable noncontrolling interest | (260) | (260) | (260) | ||||||||
Other | (4) | (2) | (2) | (2) | |||||||
Ending Balance at Dec. 31, 2017 | 766 | 709 | 412 | 525 | 10,023 | (649) | (9,602) | 57 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | [1] | 1,867 | 1,855 | 1,958 | (103) | 12 | |||||
Dividends (Dividend declared per common share) | (514) | (503) | (503) | (11) | |||||||
Share repurchases | (1,660) | (1,660) | (75) | 1,585 | |||||||
Retirement of common stock | (118) | (118) | |||||||||
Employee stock plans | 84 | 84 | 56 | (28) | |||||||
Change in redemption value of redeemable noncontrolling interest | (228) | (228) | (228) | ||||||||
Increase in CRISIL ownership | (23) | (25) | (25) | 2 | |||||||
Stock consideration for Kensho | 352 | 352 | 352 | ||||||||
Other | 40 | 44 | 34 | 10 | (4) | ||||||
Ending Balance at Dec. 31, 2018 | 684 | 628 | 294 | 833 | 11,284 | (742) | (11,041) | 56 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | [1] | 2,251 | 2,241 | 2,123 | 118 | 10 | |||||
Dividends (Dividend declared per common share) | (570) | (560) | (560) | (10) | |||||||
Share repurchases | (1,240) | (1,240) | 75 | 1,315 | |||||||
Employee stock plans | 52 | 52 | (5) | (57) | |||||||
Capital contribution from noncontrolling interest | (36) | (36) | (36) | ||||||||
Change in redemption value of redeemable noncontrolling interest | (608) | (608) | (608) | ||||||||
Other | 3 | 2 | 2 | [2] | [2] | 1 | |||||
Ending Balance at Dec. 31, 2019 | $ 536 | $ 479 | $ 294 | $ 903 | $ 12,205 | $ (624) | $ (12,299) | $ 57 | |||
[1] | Excludes $170 million, $151 million and $129 million in 2019 , 2018 and 2017 , respectively, attributable to redeemable noncontrolling interest. | ||||||||||
[2] | Includes opening balance sheet adjustments related to the adoption of the new revenue recognition standard and the reclassification of the unrealized loss on investments from Accumulated other comprehensive loss to Retained income. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 2.28 | $ 2 | $ 1.64 |
Comprehensive income attributable to redeemable noncontrolling interests | $ 170 | $ 151 | $ 129 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Nature of operations S&P Global Inc. (together with its consolidated subsidiaries, the “Company,” the “Registrant,” “we,” “us” or “our”) is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. The capital markets include asset managers, investment banks, commercial banks, insurance companies, exchanges, trading firms and issuers; and the commodity markets include producers, traders and intermediaries within energy, metals, petrochemicals and agriculture. Our 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"). • Ratings is an independent provider of credit ratings, research and analytics, offering investors and other market participants information, ratings and benchmarks. • Market Intelligence is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services. • Platts is the leading independent provider of information and benchmark prices for the commodity and energy markets. • Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors. In April of 2018, we acquired Kensho Technologies Inc. ("Kensho") for approximately $550 million , net of cash acquired, in a mix of cash and stock. Beginning in the first quarter of 2019, the contract obligations for revenue from Kensho's major customers were transferred to Market Intelligence for fulfillment. As a result of this transfer, from January 1, 2019, revenue from contracts with Kensho’s customers is reflected in Market Intelligence’s results. In 2018, the revenue from contracts with Kensho’s customers was reported in Corporate revenue. Restricted cash of $15 million and $32 million included in our consolidated balance sheets as of December 31, 2019 and 2018 , respectively, includes amounts held in escrow accounts in connection with our acquisition of Kensho. See Note 2 — Acquisitions and Divestitures for additional information and Note 12 – Segment and Geographic Information for further discussion on our reportable segments. Adoption of ASC 842, “Leases” On January 1, 2019, we adopted Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") 842 that requires a lessee to recognize "right of use" assets with offsetting lease liabilities on the balance sheet, with expenses recognized similar to previously issued guidance. We adopted the new lease standard effective January 1, 2019 using the modified retrospective transition method. Under this transition method, the standard was adopted prospectively without restating prior period's financial statements. See Note 13 — Commitments and Contingencies for further details on our leases. Adoption of ASC 606, “Revenue from Contracts with Customers” We adopted FASB ASC 606 "Revenue from Contracts with Customers" using the modified retrospective transition method applied to our revenue contracts with customers as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior year amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605 "Revenue Recognition". We recorded a net increase to opening retained earnings of $35 million as of January 1, 2018 due to the cumulative effect of adopting ASC 606, with the impact primarily related to our treatment of costs to obtain a contract and to a lesser extent, changes to the timing of the recognition of our subscription and non-transaction revenues. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Under ASC 605, revenue was recognized as it was earned and when services were rendered. Subscription revenue Subscription revenue at Market Intelligence is primarily derived from distribution of data, analytics, third party research, and credit ratings-related information primarily through web-based channels including Market Intelligence Desktop, RatingsDirect®, RatingsXpress®, and Credit Analytics. Subscription revenue at Platts is generated by providing customers access to commodity and energy-related price assessments, market data, and real-time news, along with other information services. Subscription revenue at Indices is derived from the contracts for underlying data of our indexes to support our customers' management of index funds, portfolio analytics, and research. For subscription products and services, we generally provide continuous access to dynamic data sets and analytics for a defined period, with revenue recognized ratably as our performance obligation to provide access to our data and analytics is progressively fulfilled over the stated term of the contract. Non-transaction revenue Non-transaction revenue at Ratings is primarily related to surveillance of a credit rating, annual fees for customer relationship-based pricing programs, fees for entity credit ratings and global research and analytics. Non-transaction revenue also includes an intersegment revenue elimination of $128 million , $125 million and $110 million for the years ended December 31, 2019 , 2018 , and 2017 respectively, mainly consisting of the royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. For non-transaction revenue related to Rating’s surveillance services, we continuously monitor factors that impact the creditworthiness of an issuer over the contractual term with revenue recognized to the extent that our performance obligation is progressively fulfilled over the term contract. Because surveillance services are continuously provided throughout the term of the contract, our measure of progress towards fulfillment of our obligation to monitor a rating is a time-based output measure with revenue recognized ratably over the term of the contract. Non-subscription / Transaction revenue Transaction revenue at our Ratings segment primarily includes fees associated with: • ratings related to new issuance of corporate and government debt instruments; as well as structured finance instruments; • bank loan ratings; and • corporate credit estimates, which are intended, based on an abbreviated analysis, to provide an indication of our opinion regarding creditworthiness of a company which does not currently have a Ratings credit rating. Transaction revenue is recognized at the point in time when our performance obligation is satisfied by issuing a rating on our customer's instruments, our customer's creditworthiness, or a counter-party's creditworthiness and when we have a right to payment and the customer can benefit from the significant risks and rewards of ownership. Non-subscription revenue at Market Intelligence is primarily related to certain advisory, pricing and analytical services. Non-subscription revenue at Platts is primarily related to conference sponsorship, consulting engagements and events. Asset-linked fees Asset-linked fees at Indices and Market Intelligence are primarily related to royalties payments based on the value of assets under management in our customers exchange-traded funds and mutual funds. For asset-linked products and services, we provide licenses conveying continuous access to our index and benchmark-related intellectual property during a specified contract term. Revenue is recognized when the extent that our customers have used our licensed intellectual property can be quantified. Recognition of revenue for our asset-linked fee arrangements is subject to the "recognition constraint" for usage-based royalty payments because we cannot reasonably predict the value of the assets that will be invested in index funds structured using our intellectual property until it is either publicly available or when we are notified by our customers. Revenue derived from an asset-linked fee arrangement is measured and recognized when the certainty of the extent of its utilization of our index products by our customers is known. Sales usage-based royalties Sales usage-based royalty revenue at our Indices segment is primarily related to trading based fees from exchange-traded derivatives. Sales and usage-based royalty revenue at our Platts segment is primarily related to licensing of its proprietary market price data and price assessments to commodity exchanges. For sales usage-based royalty products and services, we provide licenses conveying the right to continuous access to our intellectual property over the contract term, with revenue recognized when the extent of our license’s utilization can be quantified, or more specifically, when trading volumes are known and publicly available to us or when we are notified by our customers. Recognition of revenue of fees tied to trading volumes is subject to the recognition constraint for a usage-based royalty promised by our customers in exchange for the license of our intellectual property, with revenue recognized when trading volumes are known. Arrangements with Multiple Performance Obligations Our contracts with customers may include multiple performance obligations. Revenue relating to agreements that provide for more than one performance obligation is recognized based upon the relative fair value to the customer of each service component as each component is earned. The fair value of the service components are determined using an analysis that considers cash consideration that would be received for instances when the service components are sold separately. If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services’ stand-alone selling price and record revenue as it is earned over the service period. Receivables We record a receivable when a customer is billed or when revenue is recognized prior to billing a customer. For multi-year agreements, we generally invoice customers annually at the beginning of each annual period. Contract Assets Contract assets include unbilled amounts from when the Company transfers service to a customer before a customer pays consideration or before payment is due. As of December 31, 2019 and 2018 , contract assets were $28 million and $26 million , respectively, and are included in accounts receivable in our consolidated balance sheets. Unearned Revenue We record unearned revenue when cash payments are received in advance of our performance. The increase in the unearned revenue balance for the year ended December 31, 2019 is primarily driven by cash payments received in advance of satisfying our performance obligations, offset by $1.7 billion of revenues recognized that were included in the unearned revenue balance at the beginning of the period. Remaining Performance Obligations Remaining performance obligations represent the transaction price of contracts for work that has not yet been performed. As of December 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was $1.9 billion . We expect to recognize revenue on approximately half and three-quarters of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. We do not disclose the value of unfulfilled performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts where revenue is a usage-based royalty promised in exchange for a license of intellectual property. Costs to Obtain a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales commission programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were $115 million and $101 million as of December 31, 2019 and December 31, 2018 , respectively, and are included in prepaid and other current assets and other non-current assets on our consolidated balance sheets. The asset will be amortized over a period consistent with the transfer to the customer of the goods or services to which the asset relates, calculated based on the customer term and the average life of the products and services underlying the contracts. The expense is recorded within selling and general expenses. We expense sales commissions when incurred if the amortization period would have been one year or less. These costs are recorded within selling and general expenses. Other Expense (Income), net The components of other expense (income), net for the year ended December 31 are as follows: (in millions) 2019 2018 2017 Other components of net periodic benefit cost 1 $ 79 $ (30 ) $ (27 ) Net loss from investments 19 5 — Other expense (income), net $ 98 $ (25 ) $ (27 ) 1 During 2019, the Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The net periodic benefit cost for our retirement and post retirement plans for 2019 includes a non-cash pre-tax settlement charge of $113 million reflecting the accelerated recognition of a portion of unamortized actuarial losses in the plan. Assets and Liabilities Held for Sale and Discontinued Operations Assets and Liabilities Held for Sale We classify a disposal group to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal group; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The fair value of a disposal group less any costs to sell is assessed each reporting period it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group as held for sale in the current period in our consolidated balance sheets. Discontinued Operations In determining whether a disposal of a component of an entity or a group of components of an entity is required to be presented as a discontinued operation, we make a determination whether the disposal represents a strategic shift that had, or will have, a major effect on our operations and financial results. A component of an entity comprises operations and cash flows that can be clearly distinguished both operationally and for financial reporting purposes. If we conclude that the disposal represents a strategic shift, then the results of operations of the group of assets being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from our continuing operating results in the consolidated financial statements. Principles of consolidation The consolidated financial statements include the accounts of all subsidiaries and our share of earnings or losses of joint ventures and affiliated companies under the equity method of accounting. All significant intercompany accounts and transactions have been eliminated. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents include ordinary bank deposits and highly liquid investments with original maturities of three months or less that consist primarily of money market funds with unrestricted daily liquidity and fixed term time deposits. Such investments and bank deposits are stated at cost, which approximates market value, and were $2.9 billion and $1.9 billion as of December 31, 2019 and 2018 , respectively. These investments are not subject to significant market risk. Restricted cash Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash. Short-term investments Short-term investments are securities with original maturities greater than 90 days that are available for use in our operations in the next twelve months. The short-term investments, primarily consisting of certificates of deposit and mutual funds, are classified as held-to-maturity and therefore are carried at cost. Interest and dividends are recorded in income when earned. Accounts receivable Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable, which include billings consistent with terms of contractual arrangements, are recorded at net realizable value. Allowance for doubtful accounts The allowance for doubtful accounts reserve methodology is based on historical analysis, a review of outstanding balances and current conditions. In determining these reserves, we consider, amongst other factors, the financial condition and risk profile of our customers, areas of specific or concentrated risk as well as applicable industry trends or market indicators. Capitalized technology costs We capitalize certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Incremental costs are expenditures that are out-of-pocket to us and are not part of an allocation or existing expense base. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the year the software is ready for its intended use over its estimated useful life, three to seven years, using the straight-line method. Periodically, we evaluate the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in other non-current assets and are presented net of accumulated amortization. Gross capitalized technology costs were $212 million and $205 million as of December 31, 2019 and 2018 , respectively. Accumulated amortization of capitalized technology costs was $129 million and $105 million as of December 31, 2019 and 2018 , respectively. Fair Value Certain assets and liabilities are required to be recorded at fair value and classified within a fair value hierarchy based on inputs used when measuring fair value. We have forward exchange contracts and a cross currency swap that are adjusted to fair value on a recurring basis. Other financial instruments, including cash and cash equivalents and short-term investments, are recorded at cost, which approximates fair value because of the short-term maturity and highly liquid nature of these instruments. The fair value of our long-term debt borrowings were $3.9 billion and $3.8 billion as of December 31, 2019 and 2018 , respectively, and was estimated based on quoted market prices. Accounting for the impairment of long-lived assets (including other intangible assets) We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on market evidence, discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets. Goodwill and other indefinite-lived intangible assets Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill and other intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually during the fourth quarter each year, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We have four reporting units with goodwill that are evaluated for impairment. We initially perform a qualitative analysis evaluating whether any events and circumstances occurred or exist that provide evidence that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. If, based on our evaluation we do not believe that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the fair value of any of our reporting units is less than their respective carrying amounts we perform a two-step quantitative impairment test. When conducting the first step of our two step impairment test to evaluate the recoverability of goodwill at the reporting unit level, the estimated fair value of the reporting unit is compared to its carrying value including goodwill. Fair value of the reporting units are estimated using the income approach, which incorporates the use of the discounted free cash flow (“DCF”) analyses and are corroborated using the market approach, which incorporates the use of revenue and earnings multiples based on market data. The DCF analyses are based on the current operating budgets and estimated long-term growth projections for each reporting unit. Future cash flows are discounted based on a market comparable weighted average cost of capital rate for each reporting unit, adjusted for market and other risks where appropriate. In addition, we analyze any difference between the sum of the fair values of the reporting units and our total market capitalization for reasonableness, taking into account certain factors including control premiums. If the fair value of the reporting unit is less than the carrying value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill to the carrying value of the goodwill. The fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than the carrying value, the difference is recognized as an impairment charge. We evaluate the recoverability of indefinite-lived intangible assets by first performing a qualitative analysis evaluating whether any events and circumstances occurred that provide evidence that it is more likely than not that the indefinite-lived asset is impaired. If, based on our evaluation of the events and circumstances that occurred during the year we do not believe that it is more likely than not that the indefinite-lived asset is impaired, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the indefinite-lived asset is impaired, a quantitative impairment test is performed. If necessary, the impairment test is performed by comparing the estimated fair value of the intangible asset to its carrying value. If the indefinite-lived intangible asset carrying value exceeds its fair value, an impairment analysis is performed using the income approach. An impairment charge is recognized in an amount equal to that excess. Significant judgments inherent in these analyses include estimating the amount and timing of future cash flows and the selection of appropriate discount rates, royalty rates and long-term growth rate assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit and indefinite-lived intangible asset and could result in an impairment charge, which could be material to our financial position and results of operations. We performed our impairment assessment of goodwill and indefinite-lived intangible assets and concluded that no impairment existed for the years ended December 31, 2019 , 2018 and 2017 . Foreign currency translation We have operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the parent company, the United States ("U.S.") dollar is the functional currency. For local currency operations, assets and liabilities are translated into U.S. dollars using end of period exchange rates, and revenue and expenses are translated into U.S. dollars using weighted-average exchange rates. Foreign currency translation adjustments are accumulated in a separate component of equity. Depreciation The costs of property and equipment are depreciated using the straight-line method based upon the following estimated useful lives: buildings and improvements from 15 to 40 years and equipment and furniture from 2 to 10 years . The costs of leasehold improvements are amortized over the lesser of the useful lives or the terms of the respective leases. Advertising expense The cost of advertising is expensed as incurred. We incurred $34 million in advertising costs for the year ended December 31, 2019 and $33 million for the years ended December 31, 2018 and 2017 . Stock-based compensation Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, which typically is the vesting period. Stock-based compensation is classified as both operating-related expense and selling and general expense in the consolidated statements of income. We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted: Year Ended December 31, 2018 Risk-free average interest rate 2.6 - 2.7% Dividend yield 1.1 % Volatility 21.8 - 22.0% Expected life (years) 5.67 - 6.07 Weighted-average grant-date fair value per option $ 112.98 Because lattice-based option-pricing models incorporate ranges of assumptions, those ranges are disclosed. These assumptions are based on multiple factors, including historical exercise patterns, post-vesting termination rates, expected future exercise patterns and the expected volatility of our stock price. The risk-free interest rate is the imputed forward rate based on the U.S. Treasury yield at the date of grant. We use the historical volatility of our stock price over the expected term of the options to estimate the expected volatility. The expected term of options granted is derived from the output of the lattice model and represents the period of time that options granted are expected to be outstanding. In 2018, we made a one-time issuance of incentive stock options under the 2002 Plan to replace Kensho employees' stock options that were assumed in connection with our acquisition of Kensho in April of 2018. There were no stock options granted in 2019 and 2017. Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize liabilities for uncertain tax positions taken or expected to be taken in income tax returns. Accrued interest and penalties related to unrecognized tax benefits are recognized in interest expense and operating expense, respectively. Judgment is required in determining our provision for income taxes, deferred tax assets and liabilities and unrecognized tax benefits. In determining the need for a valuation allowance, the historical and projected financial performance of the operation that is recording a net deferred tax asset is considered along with any other pertinent information. We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on our assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that examinations will be settled prior to December 31, 2020 . If any of these tax audit settlements do occur within that period we would make any necessary adjustments to the accrual for unrecognized tax benefits. As of December 31, 2019 , we have approximately $3.2 billion of undistributed earnings of our foreign subsidiaries, of which $776 million is reinvested indefinitely in our foreign operations. Redeemable Noncontrolling Interest The agreement with the minority partners of our S&P Dow Jones Indices LLC joint venture contains redemption features whereby interests held by our minority partners are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within our control. Since redemption of the noncontrolling interest is outside of our control, this interest is presented on our consolidated balance sheets under the caption “Redeemable noncontrolling interest.” If the interest were to be redeemed, we would generally be required to purchase the interest at fair value on the date of redemption. We adjust the redeemable noncontrolling interest each reporting period to its estimated redemption value, but never less than its initial fair value, using both income and market valuation approaches. Our income and market valuation approaches incorporate Level 3 measures for instances when observable inputs are not available. The more significant judgmental assumptions used to estimate the value of the S&P Dow Jones Indices LLC joint venture include an estimated discount rate, a range of assumptions that form the basis of the expected future net cash flows (e.g., the revenue growth rates and operating margins), and a company specific beta. The significant judgmental assumptions used that incorporate m |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions 2020 In December of 2019, CRISIL, included within our Ratings segment, agreed to acquire Greenwich Associates LLC ("Greenwich"), a leading provider of proprietary benchmarking data, analytics and qualitative, actionable insights that helps financial services firms worldwide measure and improve business performance. The acquisition will complement CRISIL's existing portfolio of products and expand offerings to new segments across financial services including commercial banks and asset and wealth managers. We will account for the acquisition using the purchase method of accounting. The acquisition of Greenwich will not be material to our consolidated financial statements. The completion of this acquisition is subject to certain closing conditions. In January of 2020, we completed the acquisition of the ESG Ratings Business from RobecoSAM, which includes the widely followed SAM* Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices. The acquisition will bolster our position as the premier resource for essential environmental, social, and governance ("ESG") insights and product solutions for our customers. Through this acquisition, we will be able to offer our customers even more transparent, robust and comprehensive ESG solutions. We accounted for the acquisition using the purchase method of accounting. The acquisition of the ESG Ratings Business is not material to our consolidated financial statements. 2019 For the year ended December 31, 2019 , we paid cash for acquisitions of $91 million , net of cash acquired, funded with cash from operations. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. Acquisitions completed during the year ended December 31, 2019 included: • In December of 2019, Market Intelligence acquired 451 Research, LLC ("451 Research"), a privately-held research and advisory firm that provides intelligence, expertise and data covering high-growth emerging technology segments. This acquisition will expand and strengthen Market Intelligence's research coverage, adding differentiated expertise and intelligence with comprehensive offerings in technologies. We accounted for the acquisition using the purchase method of accounting. The acquisition of 451 Research is not material to our consolidated financial statements. • In September of 2019, Platts acquired Canadian Enerdata Ltd. ("Enerdata"), an independent provider of energy data and information in Canada, to further enhance Platts' North American natural gas offering. We accounted for the acquisition using the purchase method of accounting. The acquisition of Enerdata is not material to our consolidated financial statements. • In August of 2019, Platts acquired Live Rice Index ("LRI"), a global provider of information and benchmark price assessments for the rice industry. The purchase expands Platts portfolio of agricultural price assessments while extending its data and news coverage in key export regions for international grains. We accounted for the acquisition using the purchase method of accounting. The acquisition of LRI is not material to our consolidated financial statements. • In July of 2019, we completed the acquisition of the Orion technology center from Ness Technologies. Orion was developed to become our center of excellence for technology talent to focus on innovation by providing employees with access to the latest technologies and global communications infrastructure, as well as physical spaces that enable highly-collaborative teams. We accounted for the acquisition using the purchase method of accounting. The acquisition of Orion is not material to our consolidated financial statements. For acquisitions during 2019 that were accounted for using the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles. The goodwill recognized on our acquisitions is largely attributable to anticipated operational synergies and growth opportunities as a result of the acquisition. The intangible assets, excluding goodwill and indefinite-lived intangibles, will be amortized over their anticipated useful lives between 3 and 10 years which will be determined when we finalize our purchase price allocations. The goodwill for 451 Research and Orion is expected to be deductible for tax purposes. 2018 For the year ended December 31, 2018, we paid for acquisitions in a mix of cash and stock. We paid cash for acquisitions of $401 million , net of cash acquired, funded with cash flows from operations. Additionally, stock consideration was given for our acquisition of Kensho. None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. All acquisitions were funded with cash flows from operations. Acquisitions completed during the year ended December 31, 2018 included: • In December of 2018, Indices purchased the balance of the intellectual property ("IP") rights in a family of indices derived from the S&P 500, solidifying its IP in and to the S&P 500 index family. We accounted for the acquisition on a cost basis. The transaction is not material to our consolidated financial statements. • In August of 2018, we acquired a 5.03% investment in FiscalNote, a technology innovator at the intersection of global business and government that provides advanced, data-driven Issues Management solutions. We measured the investment in FiscalNote at cost, less any impairment, and changes resulting from observable price changes will be recorded in the consolidated statements of income. The investment in FiscalNote is not material to our consolidated financial statements. • In June of 2018, Market Intelligence acquired the RateWatch business ("RateWatch") from TheStreet, Inc., a B2B data business that offers subscription and custom reports on bank deposits, loans, fees and other product data to the financial services industry. The acquisition will complement and strengthen Market Intelligence's core capabilities of providing differentiated data and analytics solutions for the banking sector. We accounted for the acquisition of RateWatch using the purchase method of accounting. The acquisition of RateWatch is not material to our consolidated financial statements. • In April of 2018, we acquired Kensho for approximately $550 million , net of cash acquired, in a mix of cash and stock. Kensho is a leading-edge provider of next-generation analytics, artificial intelligence, machine learning, and data visualization systems to Wall Street's premier global banks and investment institutions, as well as the National Security community. The acquisition will strengthen S&P Global's emerging technology capabilities, enhance our ability to deliver essential, actionable insights that will transform the user experience for our clients, and accelerate efforts to improve efficiency and effectiveness of our core internal operations. We accounted for the acquisition of Kensho using the purchase method of accounting. The acquisition of Kensho is not material to our consolidated financial statements. • In February of 2018, Market Intelligence acquired Panjiva, Inc. ("Panjiva"), a privately-held company that provides deep, differentiated, sector-relevant insights on global supply chains, leveraging data science and technology to make sense of large, unstructured datasets. The acquisition will help strengthen the insights, products and data that we provide to our clients throughout the world. We accounted for the acquisition of Panjiva using the purchase method of accounting. The acquisition of Panjiva is not material to our consolidated financial statements. • In January of 2018, CRISIL, included within our Ratings segment, acquired a 100% stake in Pragmatix Services Private Limited ("Pragmatix"), a data analytics company focused on delivering cutting edge solutions in the "data to intelligence" life cycle to the Banking, Financial Services and Insurance vertical. The acquisition will strengthen CRISIL's position as an agile, innovative and global analytics company. We accounted for the acquisition of Pragmatix using the purchase method of accounting. The acquisition of Pragmatix is not material to our consolidated financial statements. For acquisitions during 2018 that were accounted for using the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles. The goodwill recognized on our acquisitions is largely attributable to anticipated operational synergies and growth opportunities as a result of the acquisition. The intangible assets, excluding goodwill and indefinite-lived intangibles, will be amortized over their useful lives not exceeding 10 years . The goodwill for RateWatch will continue to be deductible for tax purposes. 2017 For the year ended December 31, 2017, we paid cash for acquisitions, net of cash acquired, totaling $ 83 million . None of our acquisitions were material either individually or in the aggregate, including the pro forma impact on earnings. All acquisitions were funded with cash flows from operations. Acquisitions completed during the year ended December 31, 2017 included: • In August of 2017, we acquired a 6.02% investment in Algomi Limited ("Algomi"), an innovative fintech company focused on providing software-enabled liquidity solutions to both buy-side and sell-side firms within the credit markets. Our investment in Algomi will help facilitate product collaboration and enable future business expansion. We accounted for the investment in Algomi using the cost method of accounting. The investment with Algomi is not material to our consolidated financial statements. • In June of 2017, CRISIL, included within our Ratings segment, acquired 8.9% of the outstanding shares of CARE Ratings Limited ("CARE") from Canara Bank. CARE is a Securities and Exchange Board of India registered credit rating agency providing various rating and grading services in India whose shares are publicly traded on both the Bombay Stock Exchange and the National Stock Exchange of India. We accounted for the investment in CARE as available-for-sale using the fair value method of accounting. The investment in CARE is not material to our consolidated financial statements. Non-cash investing activities Liabilities assumed in conjunction with our acquisitions are as follows: (in millions) Year ended December 31, 2019 2018 2017 Fair value of assets acquired $ 110 $ 857 $ 83 Cash and stock consideration (net of cash acquired) 91 803 83 Liabilities assumed $ 19 $ 54 $ — Divestitures 2020 In January of 2020, Market Intelligence entered into a strategic alliance to transition S&P Global Market Intelligence's Investor Relations ("IR") webhosting business to Q4 Inc. ("Q4"). This alliance will integrate Market Intelligence's proprietary data into Q4's portfolio of solutions, enabling further opportunities for commercial collaboration. In connection with transitioning its IR webhosting business to Q4, Market Intelligence has made a minority investment in Q4. 2019 During the year ended December 31, 2019, we completed the following dispositions that resulted in a pre-tax gain of $49 million , which was included in Gain on dispositions in the consolidated statement of income: • On July 31, 2019, we completed the sale of RigData, a business within our Platts segment, to Drilling Info, Inc. RigData is a provider of daily information on rig activity for the natural gas and oil markets across North America. During the year ended December 31, 2019, we recorded a pre-tax gain of $27 million ( $26 million after-tax) in Gain on dispositions in the consolidated statement of income related to the sale of RigData. • In March of 2019, we entered into an agreement to sell Standard & Poor's Investment Advisory Services LLC ("SPIAS"), a business within our Market Intelligence segment, to Goldman Sachs Asset Management ("GSAM"). SPIAS provides non-discretionary investment advice across institutional sub-advisory and intermediary distribution channels globally. On July 1, 2019, we completed the sale of SPIAS to GSAM. During the year ended December 31, 2019, we recorded a pre-tax gain of $22 million ( $12 million after-tax) in Gain on dispositions in the consolidated statement of income related to the sale of SPIAS. 2018 During the year ended December 31, 2018, we did not complete any material dispositions. 2017 In April of 2017, we signed a letter of intent to sell our facility at East Windsor, New Jersey. The fixed assets of the facility of $5 million have been classified as held for sale, which is included in prepaid and other current assets in our consolidated balance sheet as of December 31, 2019 and 2018. In January of 2017, we completed the sale of Quant House SAS ("QuantHouse"), included in our Market Intelligence segment, to QH Holdco, an independent third party. In November of 2016, we entered into a put option agreement that gave the Company the right, but not the obligation, to put the entire share capital of QuantHouse to QH Holdco. On January 4, 2017, we exercised the put option, thereby entering into a definitive agreement to sell QuantHouse to QH Holdco. On January 9, 2017, we completed the sale of QuantHouse to QH Holdco. The operating profit of our businesses that were disposed of for the years ending December 31, 2019, 2018, and 2017 is as follows: (in millions) Year ended December 31, 2019 2018 2017 Operating profit 1 $ 5 $ 8 $ 6 1 The year ended December 31, 2019 excludes a pre-tax gain of $49 million on our dispositions. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. The change in the carrying amount of goodwill by segment is shown below: (in millions) Ratings Market Intelligence Platts Indices Corporate Total Balance as of December 31, 2017 $ 114 $ 1,961 $ 523 $ 391 $ — $ 2,989 Acquisitions 5 62 — — 498 565 Other 1 (6 ) 6 (7 ) (12 ) — (19 ) Balance as of December 31, 2018 113 2,029 516 379 498 3,535 Acquisitions — 44 6 — — 50 Dispositions — (12 ) (3 ) — — (15 ) Reclassifications — 3 — (3 ) — — Other 1 2 (2 ) 2 — 3 5 Balance as of December 31, 2019 $ 115 $ 2,062 $ 521 $ 376 $ 501 $ 3,575 1 Primarily relates to the impact of foreign exchange and valuation adjustments for prior period acquisitions. 2018 includes adjustments related to Trucost. 2019 includes adjustments related to Panjiva, Rate Watch and Eclipse. Goodwill additions and dispositions in the table above relate to transactions discussed in Note 2 – Acquisitions and Divestitures . Other Intangible Assets Other intangible assets include both indefinite-lived assets not subject to amortization and definite-lived assets subject to amortization. We have indefinite-lived assets with a carrying value of $846 million as of December 31, 2019 and 2018 . • 2019 and 2018 both include $380 million and $90 million for Dow Jones Indices intellectual property and the Dow Jones tradename, respectively, that we recorded as part of the transaction to form S&P Dow Jones Indices LLC in 2012. • 2019 and 2018 both include $185 million within our Market Intelligence segment for the SNL tradename. • 2019 and 2018 both include $132 million within our Indices segment for the balance of the IP rights in a family of indices derived from the S&P 500, solidifying Indices IP in and to the S&P 500 index family. • 2019 and 2018 both include $59 million within our Indices segment for the Goldman Sachs Commodity Index intellectual property and the Broad Market Indices intellectual property. The following table summarizes our definite-lived intangible assets: (in millions) Cost Databases and software Content Customer relationships Tradenames Other intangibles Total Balance as of December 31, 2017 $ 554 $ 139 $ 347 $ 50 $ 77 $ 1,167 Acquisitions 3 — — — 123 126 Other (primarily Fx) 1 4 — (1 ) — (6 ) (3 ) Balance as of December 31, 2018 561 139 346 50 194 1,290 Acquisitions — — — — 29 29 Reclassifications 78 — 10 5 (93 ) — Other 1 (10 ) — (1 ) (1 ) — (12 ) Balance as of December 31, 2019 $ 629 $ 139 $ 355 $ 54 $ 130 $ 1,307 Accumulated amortization Balance as of December 31, 2017 $ 187 $ 101 $ 106 $ 42 $ 57 $ 493 Current year amortization 52 14 21 3 32 122 Reclassifications 1 — — — (1 ) — Other (primarily Fx) 1 — — (1 ) — (2 ) (3 ) Balance as of December 31, 2018 240 115 126 45 86 612 Current year amortization 73 14 23 3 9 122 Reclassifications 22 — 4 1 (27 ) — Other 1 (4 ) — — (1 ) — (5 ) Balance as of December 31, 2019 $ 331 $ 129 $ 153 $ 48 $ 68 $ 729 Net definite-lived intangibles: December 31, 2018 $ 321 $ 24 $ 220 $ 5 $ 108 $ 678 December 31, 2019 $ 298 $ 10 $ 202 $ 6 $ 62 $ 578 1 Primarily relates to the impact of foreign exchange and valuation adjustments for prior period acquisitions. 2019 includes adjustments related to RigData. Definite-lived intangible assets are being amortized on a straight-line basis over periods of up to 21 years . The weighted-average life of the intangible assets as of December 31, 2019 is approximately 12 years . Amortization expense was $122 million for the years ended December 31, 2019 and 2018 and $98 million for the year ended December 31, 2017 . Expected amortization expense for intangible assets over the next five years for the years ended December 31, assuming no further acquisitions or dispositions, is as follows: (in millions) 2020 2021 2022 2023 2024 Amortization expense $ 117 $ 86 $ 78 $ 73 $ 70 |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income Income before taxes on income resulting from domestic and foreign operations is as follows: (in millions) Year Ended December 31, 2019 2018 2017 Domestic operations $ 2,068 $ 1,857 $ 1,723 Foreign operations 862 824 738 Total income before taxes $ 2,930 $ 2,681 $ 2,461 The provision for taxes on income consists of the following: (in millions) Year Ended December 31, 2019 2018 2017 Federal: Current $ 303 $ 198 $ 489 Deferred 13 53 63 Total federal 316 251 552 Foreign: Current 201 214 194 Deferred 14 (2 ) (3 ) Total foreign 215 212 191 State and local: Current 93 84 73 Deferred 3 13 7 Total state and local 96 97 80 Total provision for taxes $ 627 $ 560 $ 823 A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for financial reporting purposes is as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % State and local income taxes 2.6 2.8 2.5 Foreign operations (0.3 ) 0.2 (3.9 ) TCJA Transition Tax — (0.3 ) 6.0 Stock-based compensation (1.4 ) (1.2 ) (2.7 ) S&P Dow Jones Indices LLC joint venture (1.2 ) (1.2 ) (1.8 ) Tax credits and incentives (1.7 ) (1.7 ) (2.1 ) Other, net 2.4 1.3 0.4 Effective income tax rate 21.4 % 20.9 % 33.4 % The increase in the effective income tax rate in 2019 was primarily due to an increase in accruals for potential tax liabilities for prior years in various jurisdictions. The decrease in the effective income tax rate in 2018 was primarily due to the reduction of the U.S. federal corporate tax rate as a result of the enactment of the Tax Cuts and Jobs Act (“TCJA”). Additionally, a one-time transition tax charge of $149 million due to the TCJA was recorded in 2017, which included tax expense of approximately $173 million on the deemed repatriation of foreign earnings and a tax benefit of approximately $24 million in respect of the re-valuation of the net U.S. deferred tax liabilities at the reduced corporate income tax rate. We have elected to recognize the tax on Global Intangible Low Taxed Income (“GILTI”) as a period expense in the year the tax is incurred. GILTI expense is included in Other, net above. The principal temporary differences between the accounting for income and expenses for financial reporting and income tax purposes are as follows: (in millions) December 31, 2019 2018 Deferred tax assets: Legal and regulatory settlements $ 2 $ 2 Employee compensation 58 57 Accrued expenses 30 36 Postretirement benefits 27 48 Unearned revenue 28 29 Allowance for doubtful accounts 9 8 Loss carryforwards 155 155 Other 24 24 Total deferred tax assets 333 359 Deferred tax liabilities: Goodwill and intangible assets (318 ) (295 ) Total deferred tax liabilities (318 ) (295 ) Net deferred income tax asset before valuation allowance 15 64 Valuation allowance (163 ) (156 ) Net deferred income tax (liability) asset $ (148 ) $ (92 ) Reported as: Non-current deferred tax assets $ 52 $ 52 Non-current deferred tax liabilities (200 ) (144 ) Net deferred income tax (liability) asset $ (148 ) $ (92 ) We record valuation allowances against deferred income tax assets when we determine that it is more likely than not that such deferred income tax assets will not be realized based upon all the available evidence. The valuation allowance is primarily related to operating losses. As of December 31, 2019, we have approximately $3.2 billion of undistributed earnings of our foreign subsidiaries, of which $776 million is reinvested indefinitely in our foreign operations. We have not recorded deferred income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. We made net income tax payments totaling $659 million in 2019 , $558 million in 2018 , and $709 million in 2017 . As of December 31, 2019 , we had net operating loss carryforwards of $689 million , of which a significant portion has an unlimited carryover period under current law. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in millions) Year ended December 31, 2019 2018 2017 Balance at beginning of year $ 147 $ 212 $ 221 Additions based on tax positions related to the current year 21 19 23 Additions for tax positions of prior years 11 2 17 Reduction for tax positions of prior years (15 ) (21 ) (32 ) Reduction for settlements (33 ) (65 ) (5 ) Expiration of applicable statutes of limitations (7 ) — (12 ) Balance at end of year $ 124 $ 147 $ 212 The total amount of federal, state and local, and foreign unrecognized tax benefits as of December 31, 2019 , 2018 and 2017 was $124 million , $147 million and $212 million , respectively, exclusive of interest and penalties. During the period ended December 31, 2019, the change in unrecognized tax benefits resulted in a net increase of tax expense of $10 million . We recognize accrued interest and penalties related to unrecognized tax benefits in interest expense and operating-related expense, respectively. Based on the current status of income tax audits, we believe that the total amount of unrecognized tax benefits on the balance sheet may be reduced by up to approximately $10 million in the next twelve months as a result of the resolution of local tax examinations. In addition to the unrecognized tax benefits, as of December 31, 2019 and 2018 , we had $20 million and $35 million , respectively, of accrued interest and penalties associated with unrecognized tax benefits. The U.S. federal income tax audit for 2017 and 2018 is in process. During 2019, we completed state and foreign tax audits and, with few exceptions, we are no longer subject to federal, state, or foreign income tax examinations by tax authorities for the years before 2013. The impact to tax expense in 2019 , 2018 and 2017 was not material. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on an assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that tax examinations will be settled prior to December 31, 2020 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of long-term debt outstanding is as follows: (in millions) December 31, 2019 2018 3.3% Senior Notes, due 2020 1 $ — $ 698 4.0% Senior Notes, due 2025 2 694 693 4.4% Senior Notes, due 2026 3 893 892 2.95% Senior Notes, due 2027 4 493 493 2.5% Senior Notes, due 2029 5 495 — 6.55% Senior Notes, due 2037 6 294 396 4.5% Senior Notes, due 2048 7 490 490 3.25% Senior Notes, due 2049 8 589 — Long-term debt $ 3,948 $ 3,662 1 We made a $700 million early repayment of our 3.3% senior note in the fourth quarter of 2019. 2 Interest payments are due semiannually on June 15 and December 15, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $6 million . 3 Interest payments are due semiannually on February 15 and August 15, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 4 Interest payments are due semiannually on January 22 and July 22, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 5 Interest payments are due semiannually on June 1 and December 1, beginning on June 1, 2020, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $5 million . 6 We made a $103 million early repayment of a portion of our 6.55% senior note in November of 2019. Interest payments are due semiannually on May 15 and November 15, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $3 million . 7 Interest payments are due semiannually on May 15 and November 15, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $10 million . 8 Interest payments are due semiannually on June 1 and December 1, beginning on June 1, 2020, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $11 million . Annual debt maturities are scheduled as follows based on book values as of December 31, 2019 : no amounts due in 2020, 2021, 2022, 2023, and 2024 and $3.9 billion due thereafter. 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. The notes are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC. 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 August of 2020 and a portion of the $400 million outstanding principal amount of our 6.55% senior notes due in October of 2037. On May 17, 2018, we issued $500 million of 4.5% senior notes due in 2048. The notes are fully and unconditionally guaranteed by our wholly-owned subsidiary, Standard & Poor's Financial Services LLC. In June of 2018, we used the net proceeds to fund the redemption price of the $400 million outstanding principal amount of our 2.5% senior notes due in August of 2018, and the balance for general corporate purposes. We have the ability to borrow a total of $1.2 billion through our commercial paper program, which is supported by our revolving $1.2 billion five-year credit agreement (our "credit facility") that we entered into on June 30, 2017. This credit facility will terminate on June 30, 2022. There were no commercial paper borrowings outstanding as of December 31, 2019 and 2018 . Depending on our corporate credit rating, we pay a commitment fee of 8 to 17.5 basis points for our credit facility, whether or not amounts have been borrowed. We currently pay a commitment fee of 10 basis points. The interest rate on borrowings under our credit facility is, at our option, calculated using rates that are primarily based on either the prevailing London Inter-Bank Offer Rate, the prime rate determined by the administrative agent or the Federal Funds Rate. For certain borrowings under this credit facility, there is also a spread based on our corporate credit rating. Our credit facility contains certain covenants. The only financial covenant requires that our indebtedness to cash flow ratio, as defined in our credit facility, is not greater than 4 to 1 , and this covenant level has never been exceeded. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Our exposure to market risk includes changes in foreign exchange rates. We have operations in foreign countries where the functional currency is primarily the local currency. For international operations that are determined to be extensions of the parent company, the U.S. dollar is the functional currency. We typically have naturally hedged positions in most countries from a local currency perspective with offsetting assets and liabilities. As of December 31, 2019 and December 31, 2018 , we have entered into foreign exchange forward contracts to mitigate or hedge the effect of adverse fluctuations in foreign exchange rates. As of December 31, 2019, we have entered into a cross currency swap contract to hedge a portion of our net investment in a foreign subsidiary against volatility in foreign exchange rates. These contracts are recorded at fair value that is based on foreign currency exchange rates in active markets; therefore, we classify these derivative contracts within Level 2 of the fair value hierarchy. We do not enter into any derivative financial instruments for speculative purposes. Undesignated Derivative Instruments During the twelve months ended December 31, 2019 , 2018 and 2017 we entered into foreign exchange forward contracts in order to mitigate the change in fair value of specific assets and liabilities in the consolidated balance sheet. These forward contracts do not qualify for hedge accounting. As of December 31, 2019 and 2018, the aggregate notional value of these outstanding forward contracts was $116 million and $98 million, respectively. The changes in fair value of these forward contracts are recorded in prepaid and other assets in the consolidated balance sheet with their corresponding change in fair value recognized into selling and general expenses in the consolidated statement of income. The amount recorded in selling and general expense for the twelve months ended December 31, 2019 and 2018 related to these contracts was a net gain of $4 million and a net loss of $12 million , respectively. Net Investment Hedge During the twelve months ended December 31, 2019, we entered into a cross currency swap to hedge a portion of our net investment in a certain European subsidiary against volatility in the Euro/U.S. dollar exchange rate. This swap is designated and qualifies as a hedge of a net investment in a foreign subsidiary and is scheduled to mature in 2024. As of December 31, 2019, the notional value of our outstanding cross currency swap designated as a net investment hedge was $400 million. The changes in the fair value of this swap are recognized in foreign currency translation adjustments, a component of other comprehensive income (loss), and reported in accumulated other comprehensive loss in our consolidated balance sheet. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. We have elected to assess the effectiveness of our net investment hedge based on changes in spot exchange rates. Accordingly, amounts related to the cross currency swap recognized directly in net income during 2019 represent net periodic interest settlements and accruals, which are recognized in interest expense, net. We recognized net interest income of $1 million in 2019. Cash Flow Hedges During the twelve months ended December 31, 2019, 2018 and 2017, we entered into a series of foreign exchange forward contracts to hedge a portion of the Indian rupee, British pound, and Euro exposures through the fourth quarter of 2020, 2019 and 2018, respectively. These contracts are intended to offset the impact of movement of exchange rates on future revenue and operating costs and are scheduled to mature within twelve months. The changes in the fair value of these contracts are initially reported in accumulated other comprehensive loss in our consolidated balance sheet and are subsequently reclassified into revenue and selling and general expenses in the same period that the hedged transaction affects earnings. As of December 31, 2019 , we estimate that $2 million of the net gains related to derivatives designated as cash flow hedges recorded in other comprehensive income is expected to be reclassified into earnings within the next twelve months. As of December 31, 2019 and December 31, 2018 , the aggregate notional value of our outstanding foreign exchange forward contracts designated as cash flow hedges was $249 million and $289 million, respectively. The following table provides information on the location and fair value amounts of our cash flow hedges and net investment hedge as of December 31, 2019 and December 31, 2018 : (in millions) December 31, December 31, Balance Sheet Location 2019 2018 Derivatives designated as cash flow hedges: Prepaid and other current assets Foreign exchange forward contracts $ 1 $ 3 Derivative designated as a net investment hedge: Other non-current liabilities Cross currency swap $ 10 $ — The following table provides information on the location and amounts of pre-tax gains (losses) on our cash flow hedges and net investment hedge for the years ended December 31 : (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Loss (effective portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) 2019 2018 2017 2019 2018 2017 Cash flow hedges - designated as hedging instruments Foreign exchange forward contracts $ (2 ) $ 2 $ — Revenue, Selling and general expenses $ 5 $ (4 ) $ 9 Net investment hedge - designated as hedging instrument Cross currency swap $ (10 ) $ — $ — $ — $ — $ — The activity related to the change in unrealized gains (losses) in accumulated other comprehensive loss was as follows for the years ended December 31 : (in millions) Year ended December 31, 2019 2018 2017 Cash Flow Hedges Net unrealized gains (losses) on cash flow hedges, net of taxes, beginning of year $ 4 $ 2 $ 2 Change in fair value, net of tax 3 (2 ) 9 Reclassification into earnings, net of tax (5 ) 4 (9 ) Net unrealized gains (losses) on cash flow hedges, net of taxes, end of year $ 2 $ 4 $ 2 Net Investment Hedge Net unrealized gains (losses) on net investment hedge, net of taxes, beginning of year $ — $ — $ — Change in fair value, net of tax (10 ) — — Reclassification into earnings, net of tax — — — Net unrealized gains (losses) on net investment hedge, net of taxes, end of year $ (10 ) $ — $ — |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits We maintain a number of active defined contribution retirement plans for our employees. The majority of our defined benefit plans are frozen. As a result, no new employees will be permitted to enter these plans and no additional benefits for current participants in the frozen plans will be accrued. We also have supplemental benefit plans that provide senior management with supplemental retirement, disability and death benefits. Certain supplemental retirement benefits are based on final monthly earnings. In addition, we sponsor a voluntary 401(k) plan under which we may match employee contributions up to certain levels of compensation as well as profit-sharing plans under which we contribute a percentage of eligible employees' compensation to the employees' accounts. We also provide certain medical, dental and life insurance benefits for active and retired employees and eligible dependents. The medical and dental plans and supplemental life insurance plan are contributory, while the basic life insurance plan is noncontributory. We currently do not prefund any of these plans. We recognize the funded status of our retirement and postretirement plans in the consolidated balance sheets, with a corresponding adjustment to accumulated other comprehensive loss, net of taxes. The amounts in accumulated other comprehensive loss represent net unrecognized actuarial losses and unrecognized prior service costs. These amounts will be subsequently recognized as net periodic pension cost pursuant to our accounting policy for amortizing such amounts. Net periodic benefit cost for our retirement and postretirement plans other than the service cost component are included in other expense (income), net in our consolidated statements of income. Benefit Obligation A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, 2019 and 2018, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets): (in millions) Retirement Plans Postretirement Plans 2019 2018 2019 2018 Net benefit obligation at beginning of year $ 2,076 $ 2,329 $ 40 $ 49 Service cost 3 3 — — Interest cost 64 71 1 1 Plan participants’ contributions — — 2 3 Actuarial loss (gain) 232 (199 ) 1 (4 ) Gross benefits paid (75 ) (103 ) (6 ) (8 ) Foreign currency effect 13 (26 ) — — Other adjustments 1 (368 ) 1 — (1 ) Net benefit obligation at end of year 1,945 2,076 38 40 Fair value of plan assets at beginning of year 1,987 2,219 16 20 Actual return on plan assets 354 (113 ) 1 — Employer contributions 46 9 — 1 Plan participants’ contributions — — 3 3 Gross benefits paid (75 ) (103 ) (7 ) (8 ) Foreign currency effect 16 (25 ) — — Other adjustments 1 (368 ) — — — Fair value of plan assets at end of year 1,960 1,987 13 16 Funded status $ 15 $ (89 ) $ (25 ) $ (24 ) Amounts recognized in consolidated balance sheets: Non-current assets $ 259 $ 125 $ — $ — Current liabilities (10 ) (9 ) — — Non-current liabilities (234 ) (205 ) (25 ) (24 ) $ 15 $ (89 ) $ (25 ) $ (24 ) Accumulated benefit obligation $ 1,932 $ 2,066 Plans with accumulated benefit obligation in excess of the fair value of plan assets: Projected benefit obligation $ 244 $ 214 Accumulated benefit obligation $ 231 $ 204 Fair value of plan assets $ — $ — Amounts recognized in accumulated other comprehensive loss, net of tax: Net actuarial loss (gain) $ 355 $ 460 $ (40 ) $ (41 ) Prior service credit 2 2 (13 ) (14 ) Total recognized $ 357 $ 462 $ (53 ) $ (55 ) 1 Relates to the impact of a retiree annuity purchase in 2019. The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The actuarial loss included in accumulated other comprehensive loss for our retirement plans and expected to be recognized in net periodic benefit cost during the year ending December 31, 2020 is $15 million . There is an immaterial amount of prior service credit included in accumulated other comprehensive loss for our retirement plans expected to be recognized in net periodic benefit cost during the year ending December 31, 2020 . The actuarial gain included in accumulated other comprehensive loss for our postretirement plans and expected to be recognized in net periodic benefit cost during the year ending December 31, 2020 is $2 million . The prior year service credit included in accumulated other comprehensive loss for our postretirement plans and expected to be recognized in net periodic benefit cost during the year ending December 31, 2020 is $1 million . Net Periodic Benefit Cost For purposes of determining annual pension cost, prior service costs are being amortized straight-line over the average expected remaining lifetime of plan participants expected to receive benefits. A summary of net periodic benefit cost for our retirement and postretirement plans for the years ended December 31, is as follows: (in millions) Retirement Plans Postretirement Plans 2019 2018 2017 2019 2018 2017 Service cost $ 3 $ 3 $ 3 $ — $ — $ — Interest cost 64 71 74 1 1 2 Expected return on assets (108 ) (124 ) (126 ) — — — Amortization of: Actuarial loss (gain) 12 20 18 (2 ) (2 ) (2 ) Prior service credit — — — (1 ) (1 ) (2 ) Net periodic benefit cost (29 ) (30 ) (31 ) (2 ) (2 ) (2 ) Settlement charge 113 1 4 2 8 2 — — — Total net periodic benefit cost $ 84 $ (26 ) $ (23 ) $ (2 ) $ (2 ) $ (2 ) 1 Relates to the impact of a retiree annuity purchase in 2019. The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The non-cash pretax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan. 2 Represents a charge related to our U.K retirement plan. Our U.K. retirement plan accounted for a benefit of $14 million in 2019 , $10 million in 2018 and $6 million in 2017 of the net periodic benefit cost attributable to the funded plans. Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax for the years ended December 31, are as follows: (in millions) Retirement Plans Postretirement Plans 2019 2018 2017 2019 2018 2017 Net actuarial (gain) loss $ (10 ) $ 28 $ (20 ) $ — $ (7 ) $ (3 ) Recognized actuarial (gain) loss (10 ) (15 ) (12 ) 1 1 1 Prior service (credit) cost — 1 — 1 1 1 Settlement charge (85 ) 1 (4 ) 2 (7 ) 2 — — — Total recognized $ (105 ) $ 10 $ (39 ) $ 2 $ (5 ) $ (1 ) 1 Relates to the impact of a retiree annuity purchase in 2019. The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The non-cash after tax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan. 2 Represents a charge related to our U.K retirement plan. The total cost for our retirement plans was $187 million for 2019 , $80 million for 2018 and $70 million for 2017 . The total cost for our retirement plans in 2019 includes the $113 million settlement charge related to the retiree annuity purchase in 2019. Included in the total retirement plans cost are defined contribution plans cost of $73 million for 2019 , $79 million for 2018 and $70 million for 2017 . Assumptions Retirement Plans Postretirement Plans 2019 2018 2017 2019 2018 2017 Benefit obligation: Discount rate 2 3.45 % 4.40 % 3.68 % 3.08 % 4.15 % 3.40 % Net periodic cost: Weighted-average healthcare cost rate 1 6.50 % 6.50 % 7.00 % Discount rate - U.S. plan 2 4.40 % 3.68 % 4.13 % 4.15 % 3.40 % 3.69 % Discount rate - U.K. plan 2 2.72 % 2.41 % 2.58 % Return on assets 3 6.00 % 6.00 % 6.25 % 1 The assumed weighted-average healthcare cost trend rate will decrease ratably from 6% in 2019 to 5% in 2024 and remain at that level thereafter. Assumed healthcare cost trends have an effect on the amounts reported for the healthcare plans. A one percentage point change in assumed healthcare cost trend creates the following effects: (in millions) 1% point increase 1% point decrease Effect on postretirement obligation $ — $ — 2 Effective January 1, 2019, we changed our discount rate assumption on our U.S. retirement plans to 4.40% from 3.68% in 2018 and changed our discount rate assumption on our U.K. plan to 2.72% from 2.41% in 2018. 3 The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term. Effective January 1, 2020, our return on assets assumption for the U.S. plan was reduced to 5.50% from 6.00% and the U.K. plan remained unchanged at 6.00% . Cash Flows In December of 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) was enacted. The Act established a prescription drug benefit under Medicare, known as “Medicare Part D”, and a federal subsidy to sponsors of retiree healthcare benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. Our benefits provided to certain participants are at least actuarially equivalent to Medicare Part D, and, accordingly, we are entitled to a subsidy. Expected employer contributions in 2020 are $11 million and $5 million for our retirement and postretirement plans, respectively. In 2020 , we may elect to make additional non-required contributions depending on investment performance and the pension plan status. Information about the expected cash flows for our retirement and postretirement plans and the impact of the Medicare subsidy is as follows: (in millions) Postretirement Plans 2 Retirement 1 Plans Gross payments Retiree contributions Medicare subsidy 3 Net payments 2020 $ 63 $ 7 $ (2 ) $ — $ 5 2021 66 6 (2 ) — 4 2022 69 6 (2 ) — 4 2023 72 5 (1 ) — 4 2024 75 5 (1 ) — 4 2025-2029 413 17 (6 ) — 11 1 Reflects the total benefits expected to be paid from the plans or from our assets including both our share of the benefit cost and the participants’ share of the cost. 2 Reflects the total benefits expected to be paid from our assets. 3 Expected medicare subsidy amounts, for the years presented, are less than $1 million . Fair Value of Plan Assets In accordance with authoritative guidance for fair value measurements certain assets and liabilities are required to be recorded at fair value. Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value hierarchy has been established which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are as follows: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of our defined benefit plans assets as of December 31, 2019 and 2018 , by asset class is as follows: (in millions) December 31, 2019 Total Level 1 Level 2 Level 3 Cash and short-term investments $ 3 $ 3 $ — $ — Equities: U.S. indexes 1 23 23 — — U.S. growth and value 56 56 — — Fixed income: Long duration strategy 2 1,078 — 1,078 — Intermediate duration securities 20 — 20 — Agency mortgage backed securities 3 — 3 — Asset backed securities 14 — 14 — Non-agency mortgage backed securities 3 11 — 11 — International, excluding U.K. 15 — 15 — Real Estate: U.K. 4 39 — — 39 Total $ 1,262 $ 82 $ 1,141 $ 39 Collective investment funds 5 $ 698 Total $ 1,960 (in millions) December 31, 2018 Total Level 1 Level 2 Level 3 Cash and short-term investments $ 4 $ 4 $ — $ — Equities: U.S. indexes 1 21 21 — — U.S. growth and value 69 69 — — U.K. — — — — International, excluding U.K. — — — — Fixed income: Long duration strategy 2 1,070 — 1,070 — Intermediate duration securities 35 — 35 — Agency mortgage backed securities 4 — 4 — Asset backed securities 18 — 18 — Non-agency mortgage backed securities 3 13 — 13 — International, excluding U.K. 18 — 18 — Real Estate: U.K. 4 39 — — 39 Total $ 1,291 $ 94 $ 1,158 $ 39 Collective investment funds 5 $ 696 Total $ 1,987 1 Includes securities that are tracked in the S&P Smallcap 600 index. 2 Includes securities that are mainly investment grade obligations of issuers in the U.S. 3 Includes U.S. mortgage-backed securities that are not backed by the U.S. government. 4 Includes a fund which holds real estate properties in the U.K. 5 Includes the Standard & Poor's 500 Composite Stock Index, the Standard & Poor's MidCap 400 Composite Stock Index, a short-term investment fund which is a common collective trust vehicle, and other various asset classes. For securities that are quoted in active markets, the trustee/custodian determines fair value by applying securities’ prices obtained from its pricing vendors. For commingled funds that are not actively traded, the trustee applies pricing information provided by investment management firms to the unit quantities of such funds. Investment management firms employ their own pricing vendors to value the securities underlying each commingled fund. Underlying securities that are not actively traded derive their prices from investment managers, which in turn, employ vendors that use pricing models (e.g., discounted cash flow, comparables). The domestic defined benefit plans have no investment in our stock, except through the S&P 500 commingled trust index fund. The trustee obtains estimated prices from vendors for securities that are not easily quotable and they are categorized accordingly as Level 3. The following table details further information on our plan assets where we have used significant unobservable inputs : (in millions) Level 3 Balance as of December 31, 2018 $ 39 Purchases — Distributions — Gain (loss) — Balance as of December 31, 2019 $ 39 Pension Trusts’ Asset Allocations There are two pension trusts, one in the U.S. and one in the U.K. • The U.S. pension trust had assets of $ 1,432 million and $1,572 million as of December 31, 2019 and 2018 respectively, and the target allocations in 2019 include 75% fixed income, 16% domestic equities and 9% international equities. • The U.K. pension trust had assets of $528 million and $415 million as of December 31, 2019 and 2018 , respectively, and the target allocations in 2019 include 40% fixed income, 30% diversified growth funds, 20% equities and 10% real estate. The pension assets are invested with the goal of producing a combination of capital growth, income and a liability hedge. The mix of assets is established after consideration of the long-term performance and risk characteristics of asset classes. Investments are selected based on their potential to enhance returns, preserve capital and reduce overall volatility. Holdings are diversified within each asset class. The portfolios employ a mix of index and actively managed equity strategies by market capitalization, style, geographic regions and economic sectors. The fixed income strategies include U.S. long duration securities, opportunistic fixed income securities and U.K. debt instruments. The short-term portfolio, whose primary goal is capital preservation for liquidity purposes, is composed of government and government-agency securities, uninvested cash, receivables and payables. The portfolios do not employ any financial leverage. U.S. Defined Contribution Plan Assets of the defined contribution plan in the U.S. consist primarily of investment options, which include actively managed equity, indexed equity, actively managed equity/bond funds, target date funds, S&P Global Inc. common stock, stable value and money market strategies. There is also a self-directed mutual fund investment option. The plan purchased 165,286 shares and sold 333,030 shares of S&P Global Inc. common stock in 2019 and purchased 193,051 shares and sold 205,798 shares of S&P Global Inc. common stock in 2018 . The plan held approximately 1.3 million and 1.5 million shares of S&P Global Inc. common stock as of December 31, 2019 and 2018 , respectively, with market values of $355 million and $251 million , respectively. The plan received dividends on S&P Global Inc. common stock of $3 million during both the years ended December 31, 2019 and December 31, 2018 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We issue stock-based incentive awards to our eligible employees under the 2019 Employee Stock Incentive Plan and to our eligible non-employee Directors under a Director Deferred Stock Ownership Plan. No further awards may be granted under the 2002 Employee Stock Incentive Plan (the “2002 Plan”), although awards granted under the 2002 Plan prior to the adoption of the new 2019 Plan in June of 2019 remain outstanding in accordance with their terms. The remaining outstanding options under the 2002 Plan will have fully met their maximum term and expire in the second quarter of 2028. • 2019 Employee Stock Incentive Plan (the “2019 Plan”) – The 2019 Plan permits the granting of incentive stock options, nonqualified stock options, stock appreciation rights, performance stock, restricted stock and other stock-based awards. • Director Deferred Stock Ownership Plan – Under this plan, common stock reserved may be credited to deferred stock accounts for eligible Directors. In general, the plan requires that 50% of eligible Directors’ annual compensation plus dividend equivalents be credited to deferred stock accounts. Each Director may also elect to defer all or a portion of the remaining compensation and have an equivalent number of shares credited to the deferred stock account. Recipients under this plan are not required to provide consideration to us other than rendering service. Shares will be delivered as of the date a recipient ceases to be a member of the Board of Directors or within five years thereafter, if so elected. The plan will remain in effect until terminated by the Board of Directors or until no shares of stock remain available under the plan. The number of common shares reserved for issuance are as follows: (in millions) December 31, 2019 2018 Shares available for granting 1 20.0 33.3 Options outstanding 0.7 1.7 Total shares reserved for issuance 2 20.7 35.0 1 Shares available for granting at December 31, 2019 and 2018 are under the 2019 Plan and 2002 Plan, respectively. 2 Shares reserved for issuance under the Director Deferred Stock Ownership Plan are not included in the total, but are less than 1.0 million at December 31 2019 and 2018, respectively. We issue treasury shares upon exercise of stock options and the issuance of restricted stock and unit awards. To offset the dilutive effect of the exercise of employee stock options, we periodically repurchase shares. See Note 9 – Equity for further discussion. Stock-based compensation expense and the corresponding tax benefit are as follows: (in millions) Year Ended December 31, 2019 2018 2017 Stock option expense $ 1 $ 5 $ 3 Restricted stock and unit awards expense 77 89 96 Total stock-based compensation expense $ 78 $ 94 $ 99 Tax benefit $ 13 $ 19 $ 38 Stock Options Stock options may not be granted at a price less than the fair market value of our common stock on the date of grant. Stock options granted vest over a four year service period and have a maximum term of 10 years . Stock option compensation costs are recognized from the date of grant, utilizing a four -year graded vesting method. Under this method, more than half of the costs are recognized over the first twelve months , approximately one-quarter of the costs are recognized over a twenty-four month period starting from the date of grant, approximately one-tenth of the costs are recognized over a thirty-six month period starting from the date of grant, and the remaining costs recognized over a forty-eight month period starting from the date of grant. We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted: Year Ended December 31, 2018 Risk-free average interest rate 2.6 - 2.7% Dividend yield 1.1 % Volatility 21.8 - 22.0% Expected life (years) 5.67 - 6.07 Weighted-average grant-date fair value per option $ 112.98 Because lattice-based option-pricing models incorporate ranges of assumptions, those ranges are disclosed. These assumptions are based on multiple factors, including historical exercise patterns, post-vesting termination rates, expected future exercise patterns and the expected volatility of our stock price. The risk-free interest rate is the imputed forward rate based on the U.S. Treasury yield at the date of grant. We use the historical volatility of our stock price over the expected term of the options to estimate the expected volatility. The expected term of options granted is derived from the output of the lattice model and represents the period of time that options granted are expected to be outstanding. In 2018, we made a one-time issuance of incentive stock options under the 2002 Plan to replace Kensho employees' stock options that were assumed in connection with our acquisition of Kensho in April of 2018. There were no stock options granted in 2019 and 2017. Stock option activity is as follows: (in millions, except per award amounts) Shares Weighted average exercise price Weighted-average remaining years of contractual term Aggregate intrinsic value Options outstanding as of December 31, 2018 1.7 $ 47.92 Exercised (1.0 ) $ 163.99 Forfeited and expired 1 — $ 70.70 Options outstanding as of December 31, 2019 0.7 $ 55.73 3.1 $ 155 Options exercisable as of December 31, 2019 0.7 $ 55.12 3.0 $ 151 1 There are less than 0.1 million shares forfeited and expired. (in millions, except per award amounts) Shares Weighted-average grant-date fair value Nonvested options outstanding as of December 31, 2018 0.1 $ 113.02 Vested 1 — $ 113.42 Forfeited (0.1 ) $ 113.17 Nonvested options outstanding as of December 31, 2019 2 — $ 112.68 Total unrecognized compensation expense related to nonvested options $ 0.3 Weighted-average years to be recognized over 0.7 1 There are less than 0.1 million shares vested. 2 There are less than 0.1 million nonvested options outstanding as of December 31, 2019. The total fair value of our stock options that vested during the years ended December 31, 2019 , 2018 and 2017 was $3 million , $5 million and $4 million , respectively. Information regarding our stock option exercises is as follows: (in millions) Year Ended December 31, 2019 2018 2017 Net cash proceeds from the exercise of stock options $ 40 $ 34 $ 75 Total intrinsic value of stock option exercises $ 110 $ 77 $ 118 Income tax benefit realized from stock option exercises $ 33 $ 27 $ 64 Restricted Stock and Unit Awards Restricted stock and unit awards (performance and non-performance) have been granted under the 2002 Plan and 2019 Plan. Performance unit awards will vest only if we achieve certain financial goals over the performance period. Restricted stock non-performance awards have various vesting periods (generally three years ), with vesting beginning on the first anniversary of the awards. Recipients of restricted stock and unit awards are not required to provide consideration to us other than rendering service. The stock-based compensation expense for restricted stock and unit awards is determined based on the market price of our stock at the grant date of the award applied to the total number of awards that are anticipated to fully vest. For performance unit awards, adjustments are made to expense dependent upon financial goals achieved. Restricted stock and unit activity for performance and non-performance awards is as follows: (in millions, except per award amounts) Shares Weighted-average grant-date fair value Nonvested shares as of December 31, 2018 0.8 $ 172.24 Granted 0.5 $ 187.40 Vested (0.6 ) $ 144.18 Forfeited (0.1 ) $ 179.76 Nonvested shares as of December 31, 2019 0.6 $ 199.93 Total unrecognized compensation expense related to nonvested awards $ 72 Weighted-average years to be recognized over 1.8 Year Ended December 31, 2019 2018 2017 Weighted-average grant-date fair value per award $ 187.40 $ 182.75 $ 147.12 Total fair value of restricted stock and unit awards vested $ 153 $ 154 $ 147 Tax benefit relating to restricted stock activity $ 29 $ 32 $ 36 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Capital Stock Two million shares of preferred stock, par value $1 per share, are authorized; none have been issued. On January 29, 2020, the Board of Directors approved an increase in the dividends for 2020 to a quarterly rate of $0.67 per common share. Year Ended December 31, 2019 2018 2017 Quarterly dividend rate $ 0.57 $ 0.50 $ 0.41 Annualized dividend rate $ 2.28 $ 2.00 $ 1.64 Dividends paid (in millions) $ 560 $ 503 $ 421 Stock Repurchases On December 4, 2013, the Board of Directors approved a share repurchase program authorizing the purchase of 50 million shares, which was approximately 18% of the total shares of our outstanding common stock at that time. Our purchased shares may be used for general corporate purposes, including the issuance of shares for stock compensation plans and to offset the dilutive effect of the exercise of employee stock options. As of December 31, 2019 , 4.7 million shares remained available under our current share repurchase program. Our current share repurchase program has no expiration date and purchases under this program may be made from time to time on the open market and in private transactions, depending on market conditions. We have entered into accelerated share repurchase (“ASR”) agreements with financial institutions to initiate share repurchases of our common stock. Under an ASR agreement, we pay a specified amount to the financial institution and receive an initial delivery of shares. This initial delivery of shares represents the minimum number of shares that we may receive under the agreement. Upon settlement of the ASR agreement, the financial institution delivers additional shares. The total number of shares ultimately delivered, and therefore the average price paid per share, is determined at the end of the applicable purchase period of each ASR agreement based on the volume weighted-average share price, less a discount. We account for our ASR agreements as two transactions: a stock purchase transaction and a forward stock purchase contract. The shares delivered under the ASR agreements resulted in a reduction of outstanding shares used to determine our weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share. The repurchased shares are held in Treasury. The forward stock purchase contracts were classified as equity instruments. The ASR agreements were executed under the current share repurchase program, approved on December 4, 2013. The terms of each ASR agreement entered for the years ended December 31, 2019 , 2018 and 2017 , structured as outlined above, are as follows: (in millions, except average price) ASR Agreement Initiation Date ASR Agreement Completion Date Initial Shares Delivered Additional Shares Delivered Total Number of Shares Purchased Average Price Paid Per Share Total Cash Utilized August 5, 2019 1 October 1, 2019 1.8 0.1 2.0 $ 253.36 $ 500 February 11, 2019 2 July 31, 2019 2.2 0.1 2.3 $ 214.65 $ 500 October 29, 2018 3 January 2, 2019 2.5 0.4 2.9 $ 173.80 $ 500 March 6, 2018 4 September 25, 2018 4.5 0.6 5.1 $ 197.49 $ 1,000 August 1, 2017 5 October 31, 2017 2.8 0.5 3.2 $ 154.46 $ 500 1 The ASR agreement was structured as a capped ASR agreement in which we paid $500 million and received an initial delivery of 1.8 million shares, representing the minimum number of shares of our common stock to be repurchased based on a calculation using a specified capped price per share. 2 The ASR agreement was structured as an uncapped ASR agreement in which we paid $500 million and received an initial delivery of 2.2 million shares, representing 85% of the $500 million at a price equal to the then market price of the Company. 3 The ASR agreement was structured as an uncapped ASR agreement in which we paid $500 million and received an initial delivery of 2.5 million shares, representing 85% of the $500 million at a price equal to the then market price of the Company. 4 The ASR agreement was structured as an uncapped ASR agreement in which we paid $ 1 billion and received an initial delivery of 4.5 million shares, representing 85% of the $ 1 billion at a price equal to the then market price of the Company. 5 The ASR agreement was structured as an uncapped ASR agreement in which we paid $500 million and received an initial delivery of 2.8 million shares, representing 85% of the $500 million at a price equal to the then market price of the Company. Additionally, we purchased shares of our common stock in the open market as follows (in millions, except average price) Year Ended Total number of shares purchased Average price paid per share Total cash utilized December 31, 2019 1.2 $ 208.83 $ 240 December 31, 2018 0.9 $ 182.93 $ 160 December 31, 2017 3.5 $ 141.60 $ 501 During the year ended December 31, 2019 , we received 5.9 million shares, including 0.4 million shares received in January of 2019 related to our October 29, 2018 ASR agreement, resulting in $1,240 million of cash used to repurchase shares. During the years ended December 31, 2018 and 2017 , we purchased a total of 8.4 million and 6.8 million shares for cash of $1,660 million and $1,001 million , respectively. Redeemable Noncontrolling Interests The agreement with the minority partners that own 27% of our S&P Dow Jones Indices LLC joint venture contains redemption features whereby interests held by minority partners are redeemable either (i) at the option of the holder or (ii) upon the occurrence of an event that is not solely within our control. Specifically, under the terms of the operating agreement of S&P Dow Jones Indices LLC, CME Group and CME Group Index Services LLC ("CGIS") has the right at any time to sell, and we are obligated to buy, at least 20% of their share in S&P Dow Jones Indices LLC. In addition, in the event there is a change of control of the Company, for the 15 days following a change in control, CME Group and CGIS will have the right to put their interest to us at the then fair value of CME Group's and CGIS' minority interest. If interests were to be redeemed under this agreement, we would generally be required to purchase the interest at fair value on the date of redemption. This interest is presented on the consolidated balance sheets outside of equity under the caption “Redeemable noncontrolling interest” with an initial value based on fair value for the portion attributable to the net assets we acquired, and based on our historical cost for the portion attributable to our S&P Index business. We adjust the redeemable noncontrolling interest each reporting period to its estimated redemption value, but never less than its initial fair value, using both income and market valuation approaches. Our income and market valuation approaches may incorporate Level 3 fair value measures for instances when observable inputs are not available. The more significant judgmental assumptions used to estimate the value of the S&P Dow Jones Indices LLC joint venture include an estimated discount rate, a range of assumptions that form the basis of the expected future net cash flows (e.g., the revenue growth rates and operating margins), and a company specific beta. The significant judgmental assumptions used that incorporate market data, including the relative weighting of market observable information and the comparability of that information in our valuation models, are forward-looking and could be affected by future economic and market conditions. Any adjustments to the redemption value will impact retained income. Noncontrolling interests that do not contain such redemption features are presented in equity. Ch anges to redeemable noncontrolling interest during the year ended December 31, 2019 were as follows: (in millions) Balance as of December 31, 2018 $ 1,620 Net income attributable to noncontrolling interest 170 Capital contribution from noncontrolling interest 36 Distributions to noncontrolling interest (166 ) Redemption value adjustment 608 Balance as of December 31, 2019 $ 2,268 Accumulated Other Comprehensive Loss The following table summarizes the changes in the components of accumulated other comprehensive loss for the year ended December 31, 2019 : (in millions) Foreign Currency Translation Adjustment 1 Pension and Postretirement Benefit Plans 2 Unrealized Gain (Loss) on Forward Exchange Contracts 1 Accumulated Other Comprehensive Loss Balance as of December 31, 2018 $ (339 ) $ (407 ) $ 4 $ (742 ) Other comprehensive gain (loss) before reclassifications 18 9 3 30 Reclassifications from accumulated other comprehensive loss to net earnings — 93 (5 ) 88 Net other comprehensive gain (loss) income 18 102 (2 ) 118 Balance as of December 31, 2019 $ (321 ) $ (305 ) $ 2 $ (624 ) 1 See Note 6 — Derivative Instruments for additional details of gains (losses) included in accumulated other comprehensive loss and items reclassed from accumulated other comprehensive loss to net earnings. 2 Reflects amortization of net actuarial losses and is net of a tax benefit of $39 million for the year ended December 31, 2019. See Note 7 — Employee Benefits for additional details of items reclassed from accumulated other comprehensive loss to net earnings. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per common share ("EPS") is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares is increased to include additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Potential common shares consist primarily of stock options and restricted performance shares calculated using the treasury stock method. The calculation for basic and diluted EPS is as follows: (in millions, except per share data) Year Ended December 31, 2019 2018 2017 Amount attributable to S&P Global Inc. common shareholders: Net income $ 2,123 $ 1,958 $ 1,496 Basic weighted-average number of common shares outstanding 245.4 250.9 256.3 Effect of stock options and other dilutive securities 1.5 2.3 2.6 Diluted weighted-average number of common shares outstanding 246.9 253.2 258.9 Earnings per share attributable to S&P Global Inc. common shareholders: Net income: Basic $ 8.65 $ 7.80 $ 5.84 Diluted $ 8.60 $ 7.73 $ 5.78 Each period we have certain stock options and restricted performance shares that are potentially excluded from the computation of diluted EPS. The effect of the potential exercise of stock options is excluded when the average market price of our common stock is lower than the exercise price of the related option during the period or when a net loss exists because the effect would have been antidilutive. Additionally, restricted performance shares are excluded because the necessary vesting conditions had not been met or when a net loss exists. As of December 31, 2019 , 2018 and 2017 , there were no stock options excluded. Restricted performance shares outstanding of 0.4 million , 0.5 million and 0.6 million as of December 31, 2019 , 2018 and 2017 , respectively, were excluded. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During 2019 and 2018 , we continued to evaluate our cost structure and further identified cost savings associated with streamlining our management structure and our decision to exit non-strategic businesses. Our 2019 and 2018 restructuring plans consisted of a company-wide workforce reduction of approximately 300 and 160 positions, respectively, and are further detailed below. The charges for each restructuring plan are classified as selling and general expenses within the consolidated statements of income and the reserves are included in other current liabilities in the consolidated balance sheets. In certain circumstances, reserves are no longer needed because of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the Company and did not receive severance or were reassigned due to circumstances not foreseen when the original plans were initiated. In these cases, we reverse reserves through the consolidated statements of income during the period when it is determined they are no longer needed. There were approximately $3 million of reserves from the 2018 restructuring plan that we have reversed in 2019 , which offset the initial charge of $25 million recorded for the 2018 restructuring plan. There were approximately $6 million of reserves from the 2017 restructuring plan that we have reversed in 2018 , which offset the initial charge of $44 million recorded for the 2017 restructuring plan. The initial restructuring charge recorded and the ending reserve balance as of December 31, 2019 by segment is as follows: 2019 Restructuring Plan 2018 Restructuring Plan (in millions) Initial Charge Recorded Ending Reserve Balance Initial Charge Recorded Ending Reserve Balance Ratings $ 11 $ 7 $ 8 $ — Market Intelligence 6 5 7 1 Platts 1 — — — Corporate 7 6 10 1 Total $ 25 $ 18 $ 25 $ 2 For the year ended December 31, 2019 , we have reduced the reserve for the 2019 restructuring plan by $7 million and for the years ended December 31, 2019 and 2018 , we have reduced the reserve for the 2018 restructuring plan by $22 million and $1 million , respectively. The reductions primarily related to cash payments for employee severance charges. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information As discussed in Note 1 – Accounting Policies , we have four reportable segments: Ratings, Market Intelligence, Platts and Indices. Our Chief Executive Officer is our chief operating decision-maker and evaluates performance of our segments and allocates resources based primarily on operating profit. Segment operating profit does not include Corporate Unallocated, other income, net, or interest expense, net, as these are costs that do not affect the operating results of our reportable segments. We use the same accounting policies for our segments as those described in Note 1 – Accounting Policies . Beginning in the first quarter of 2019, the contract obligations for revenue from Kensho's major customers were transferred to Market Intelligence for fulfillment. As a result of this transfer, from January 1, 2019 revenue from contracts with Kensho’s customers is reflected in Market Intelligence’s results. In 2018, the revenue from contracts with Kensho’s customers was reported in Corporate revenue. See Note 2 — Acquisitions and Divestitures for additional information. A summary of operating results for the years ended December 31 is as follows: Revenue (in millions) 2019 2018 2017 Ratings $ 3,106 $ 2,883 $ 2,988 Market Intelligence 1,959 1,833 1,683 Platts 844 815 774 Indices 918 837 728 Corporate — 15 — Intersegment elimination 1 (128 ) (125 ) (110 ) Total revenue $ 6,699 $ 6,258 $ 6,063 Operating Profit (in millions) 2019 2018 2017 Ratings 2 $ 1,763 $ 1,530 $ 1,517 Market Intelligence 3 607 545 457 Platts 4 438 383 326 Indices 5 630 563 478 Total reportable segments 3,438 3,021 2,778 Corporate Unallocated 6 (212 ) (231 ) (195 ) Total operating profit $ 3,226 $ 2,790 $ 2,583 1 Revenue for Ratings and expenses for Market Intelligence include an intersegment royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. 2 Operating profit or the year ended December 31, 2019 includes employee severance charges of $11 million . Operating profit for the year ended December 31, 2018 includes legal settlement expenses of $74 million and employee severance charges of $8 million . Operating profit for the year ended December 31, 2017 includes legal settlement expenses of $55 million and employee severance charges of $25 million . Additionally, operating profit includes amortization of intangibles from acquisitions of $2 million for the years ended December 31, 2019 and 2018 and $4 million for the year ended December 31, 2017 . 3 As of July 1, 2019, we completed the sale of SPIAS and the results are included in Market Intelligence results through that date. Operating profit for the year ended December 31, 2019 includes a gain on the sale of SPIAS of $22 million , employee severance charges of $6 million and acquisition related costs of $4 million . Operating profit for the year ended December 31, 2018 includes restructuring charges related to a business disposition and employee severance charges of $7 million . Operating profit for the year ended December 31, 2017 includes employee severance charges of $7 million , and non-cash disposition-related adjustments of $4 million . Additionally, operating profit includes amortization of intangibles from acquisitions of $75 million , $73 million and $71 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. 4 As of July 31, 2019, we completed the sale of RigData and the results are included in Platts results through that date. Operating profit for the year ended December 31, 2019 includes a gain on the sale of RigData of $27 million and employee severance charges of $1 million . Operating profit for the year ended December 31, 2017 includes non-cash acquisition-related adjustment of $11 million , a charge to exit a leased facility of $6 million , an asset write-off of $2 million , and employee severance charges of $2 million . Additionally, Operating profit includes amortization of intangibles from acquisitions of $12 million for the year ended December 31, 2019 and $18 million for the years ended December 31, 2018 and 2017. 5 Operating profit includes amortization of intangibles from acquisitions of $6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. 6 Corporate Unallocated operating loss for the year ended December 31, 2019 includes Kensho retention related expenses $21 million , lease impairments of $11 million and employee severance charges of $7 million . Corporate Unallocated operating loss for the year ended December 31, 2018 includes Kensho retention related expense of $31 million , lease impairments of $11 million and employee severance charges of $10 million . Corporate Unallocated operating loss for the year ended December 31, 2017 includes a charge to exit leased facilities of $19 million and employee severance charges of $10 million . Additionally, Corporate Unallocated operating loss includes amortization of intangibles from acquisitions of $28 million and $23 million for the years ended December 31, 2019 and 2018. The following table presents our revenue disaggregated by revenue type for the years ended December 31 : (in millions) Ratings Market Intelligence Platts Indices Corporate Intersegment Elimination 1 Total 2019 Subscription $ — $ 1,904 $ 774 $ 165 $ — $ — $ 2,843 Non-subscription / Transaction 1,577 45 10 — — — 1,632 Non-transaction 1,529 — — — — (128 ) 1,401 Asset-linked fees — 10 — 613 — — 623 Sales usage-based royalties — — 60 140 — — 200 Total revenue $ 3,106 $ 1,959 $ 844 $ 918 $ — $ (128 ) $ 6,699 Timing of revenue recognition Services transferred at a point in time 1,577 45 10 — — — $ 1,632 Services transferred over time 1,529 1,914 834 918 — (128 ) 5,067 Total revenue $ 3,106 $ 1,959 $ 844 $ 918 $ — $ (128 ) $ 6,699 (in millions) Ratings Market Intelligence Platts Indices Corporate Intersegment Elimination 1 Total 2018 2 Subscription $ — $ 1,773 $ 750 $ 144 $ 15 $ — $ 2,682 Non-subscription / Transaction 1,350 40 11 — — — 1,401 Non-transaction 1,533 — $ — — — (125 ) 1,408 Asset-linked fees — 20 — 522 — — 542 Sales usage-based royalties — — 54 171 — — 225 Total revenue $ 2,883 $ 1,833 $ 815 $ 837 $ 15 $ (125 ) $ 6,258 Timing of revenue recognition Services transferred at a point in time $ 1,350 $ 40 $ 11 $ — $ — $ — $ 1,401 Services transferred over time 1,533 1,793 804 837 15 (125 ) 4,857 Total revenue $ 2,883 $ 1,833 $ 815 $ 837 $ 15 $ (125 ) $ 6,258 (in millions) Ratings Market Intelligence Platts Indices Corporate Intersegment Elimination 1 Total 2017 2,3 Subscription $ — $ 1,614 $ 704 $ 136 $ — $ — $ 2,454 Non-subscription / Transaction 1,515 46 13 — — — 1,574 Non-transaction 1,473 — — — — (110 ) 1,363 Asset-linked fees — 23 — 461 — — 484 Sales usage-based royalties — — 57 131 — — 188 Total revenue $ 2,988 $ 1,683 $ 774 $ 728 $ — $ (110 ) $ 6,063 Timing of revenue recognition Services transferred at a point in time $ 1,515 $ 46 $ 13 $ — $ — $ — $ 1,574 Services transferred over time 1,473 1,637 761 728 — (110 ) 4,489 Total revenue $ 2,988 $ 1,683 $ 774 $ 728 $ — $ (110 ) $ 6,063 1 Intersegment eliminations mainly consists of a royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. 2 In 2019 , we reevaluated our transaction and non-transaction revenue presentation which resulted in a reclassification from transaction revenue to non-transaction revenue of $27 million and $25 million for 2018 and 2017 , respectively. 3 Amounts for the year ended December 31, 2017 were not adjusted under the modified retrospective transition method applied to our revenue contracts with customers as of January 1, 2018. Segment information for the years ended December 31 is as follows: (in millions) Depreciation & Amortization Capital Expenditures 2019 2018 2017 2019 2018 2017 Ratings $ 34 $ 32 $ 34 $ 41 $ 42 $ 45 Market Intelligence 99 99 104 44 30 37 Platts 21 27 25 13 9 15 Indices 8 9 8 5 3 3 Total reportable segments 162 167 171 103 84 100 Corporate 42 39 9 12 29 23 Total $ 204 $ 206 $ 180 $ 115 $ 113 $ 123 Segment information as of December 31 is as follows: (in millions) Total Assets 2019 2018 Ratings $ 963 $ 680 Market Intelligence 3,806 3,606 Platts 938 787 Indices 1,492 1,443 Total reportable segments 7,199 6,516 Corporate 1 4,140 2,911 Assets held for sale 2 9 14 Total $ 11,348 $ 9,441 1 Corporate assets consist principally of cash and cash equivalents, goodwill and other intangible assets, assets for pension benefits, deferred income taxes and leasehold improvements related to subleased areas. 2 Includes East Windsor and New Jersey facility as of December 31, 2019 and 2018, respectively. We do not have operations in any foreign country that represent more than 8% of our consolidated revenue. Transfers between geographic areas are recorded at agreed upon prices and intercompany revenue and profit are eliminated. No single customer accounted for more than 10% of our consolidated revenue. The following provides revenue and long-lived assets by geographic region: (in millions) Revenue Long-lived Assets Year ended December 31, December 31, 2019 2018 2017 2019 2018 U.S. $ 3,949 $ 3,750 $ 3,658 $ 4,946 $ 5,019 European region 1,681 1,543 1,473 323 317 Asia 715 647 594 93 51 Rest of the world 354 318 338 44 42 Total $ 6,699 $ 6,258 $ 6,063 $ 5,406 $ 5,429 Revenue Long-lived Assets Year ended December 31, December 31, 2019 2018 2017 2019 2018 U.S. 59 % 60 % 60 % 91 % 92 % European region 25 25 24 6 6 Asia 11 10 10 2 1 Rest of the world 5 5 6 1 1 Total 100 % 100 % 100 % 100 % 100 % See Note 2 – Acquisitions and Divestitures and Note 11 – Restructuring , for actions that impacted the segment operating results. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases We determine whether an arrangement meets the criteria for an operating lease or a finance lease at the inception of the arrangement. We have operating leases for office space and equipment. Our leases have remaining lease terms of 1 year to 14 years , some of which include options to extend the leases for up to 12 years , and some of which include options to terminate the leases within 1 year . We consider these options in determining the lease term used to establish our right-of use ("ROU") assets and associated lease liabilities. We sublease certain real estate leases to third parties which mainly consist of operating leases for space within our offices. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expenses for these leases on a straight line-basis over the lease term in operating-related expenses and selling and general expenses. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Our future minimum based payments used to determine our lease liabilities include minimum based rent payments and escalations. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The following table provides information on the location and amounts of our leases on our consolidated balance sheet as of December 31, 2019 : (in millions) Balance Sheet Location 2019 Assets Right of use assets Lease right-of-use assets $ 676 Liabilities Other current liabilities Current lease liabilities 112 Lease liabilities — non-current Non-current lease liabilities 620 The components of lease expense for the year ended December 31 are as follows: (in millions) 2019 Operating lease cost $ 157 Sublease income (18 ) Total lease cost $ 139 Supplemental information related to leases for the year ended December 31 are as follows: (in millions) 2019 Cash paid for amounts included in the measurement for operating lease liabilities Operating cash flows from operating leases $ 146 Right-of-use assets obtained in exchange for lease obligations Operating leases 777 Weighted-average remaining lease term and discount rate for our operating leases as of December 31 are as follows: 2019 Weighted-average remaining lease term (years) 8.95 Weighted-average discount rate 3.93 % Maturities of lease liabilities for our operating leases are as follows: (in millions) 2020 $ 133 2021 113 2022 98 2023 82 2024 65 2025 and beyond 358 Total undiscounted lease payments $ 849 Less: Imputed interest 117 Present value of lease liabilities $ 732 Related Party Agreement In March of 2018, the Company made a $20 million contribution to the S&P Global Foundation included in selling and general expenses. In June of 2012, we entered into a license agreement (the "License Agreement") with the holder of S&P Dow Jones Indices LLC noncontrolling interest, CME Group, which replaced the 2005 license agreement between Indices and CME Group. Under the terms of the License Agreement, S&P Dow Jones Indices LLC receives a share of the profits from the trading and clearing of CME Group's equity index products. During the years ended December 31, 2019 , 2018 and 2017 , S&P Dow Jones Indices LLC earned $114 million , $121 million and $74 million of revenue under the terms of the License Agreement, respectively. The entire amount of this revenue is included in our consolidated statement of income and the portion related to the 27% noncontrolling interest is removed in net income attributable to noncontrolling interests. Legal & Regulatory Matters In the normal course of business both in the United States and abroad, the Company and its subsidiaries are defendants in a number of legal proceedings and are often the subject of government and regulatory proceedings, investigations and inquiries. In addition, various government and self-regulatory agencies frequently make inquiries and conduct investigations into our compliance with applicable laws and regulations, including those related to ratings activities and antitrust matters. For example, as a nationally recognized statistical rating organization registered with the SEC under Section 15E of the Securities Exchange Act of 1934, S&P Global Ratings is in ongoing communication with the staff of the SEC regarding compliance with its extensive obligations under the federal securities laws. Although S&P Global seeks to promptly address any compliance issues that it detects or that the staff of the SEC or another regulator raises, there can be no assurance that the SEC or another regulator will not seek remedies against S&P Global for one or more compliance deficiencies. Any of these proceedings, investigations or inquiries could ultimately result in adverse judgments, damages, fines, penalties or activity restrictions, which could adversely impact our consolidated financial condition, cash flows, business or competitive position. In view of the uncertainty inherent in litigation and government and regulatory enforcement matters, we cannot predict the eventual outcome of such matters or the timing of their resolution, or in most cases reasonably estimate what the eventual judgments, damages, fines, penalties or impact of activity (if any) restrictions may be. As a result, we cannot provide assurance that such outcomes will not have a material adverse effect on our consolidated financial condition, cash flows, business or competitive position. As litigation or the process to resolve pending matters progresses, as the case may be, we will continue to review the latest information available and assess our ability to predict the outcome of such matters and the effects, if any, on our consolidated financial condition, cash flows, business or competitive position, which may require that we record liabilities in the consolidated financial statements in future periods. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) (in millions, except per share data) First quarter Second quarter Third quarter Fourth quarter Total year 2019 Revenue $ 1,571 $ 1,704 $ 1,689 $ 1,735 $ 6,699 Operating profit $ 705 $ 813 $ 891 $ 818 $ 3,226 Net income $ 453 $ 602 $ 662 $ 585 $ 2,303 Net income attributable to S&P Global common shareholders $ 410 $ 555 $ 617 $ 541 $ 2,123 Earnings per share attributable to S&P Global Inc. common shareholders: Net income: Basic $ 1.66 $ 2.25 $ 2.52 $ 2.22 $ 8.65 Diluted $ 1.65 $ 2.24 $ 2.50 $ 2.20 $ 8.60 2018 Revenue $ 1,567 $ 1,609 $ 1,546 $ 1,536 $ 6,258 Operating profit $ 711 $ 672 $ 704 $ 704 $ 2,790 Net income $ 534 $ 501 $ 535 $ 551 $ 2,121 Net income attributable to S&P Global common shareholders $ 491 $ 461 $ 495 $ 512 $ 1,958 Earnings per share attributable to S&P Global Inc. common shareholders: Net income: Basic $ 1.94 $ 1.83 $ 1.97 2.06 7.80 Diluted $ 1.93 $ 1.82 $ 1.95 2.03 7.73 Note - Totals presented may not sum due to rounding. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
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 August of 2020 and a portion of the $400 million outstanding principal amount of our 6.55% senior notes due in October of 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. See Note 5 — 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 Year Ended December 31, 2019 (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 812 $ 1,898 $ 4,146 $ (157 ) $ 6,699 Expenses: Operating-related expenses 158 440 1,360 (157 ) 1,801 Selling and general expenses 133 329 1,055 — 1,517 Depreciation 44 12 26 — 82 Amortization of intangibles — — 122 — 122 Total expenses 335 781 2,563 (157 ) 3,522 Gain on dispositions (49 ) — — — (49 ) Operating profit 526 1,117 1,583 — 3,226 Other expense, net 91 — 7 — 98 Interest expense (income), net 213 — (15 ) — 198 Non-operating intercompany transactions 378 (48 ) (1,530 ) 1,200 — (Loss) income before taxes on income (156 ) 1,165 3,121 (1,200 ) 2,930 (Benefit) Provision for taxes on income (74 ) 285 416 — 627 Equity in net income of subsidiaries 3,405 — — (3,405 ) — Net income 3,323 880 2,705 (4,605 ) 2,303 Less: net income attributable to noncontrolling interests — — — (180 ) (180 ) Net income attributable to S&P Global Inc. $ 3,323 $ 880 $ 2,705 $ (4,785 ) $ 2,123 Comprehensive income $ 3,446 $ 880 $ 2,697 $ (4,602 ) $ 2,421 Statement of Income Year Ended December 31, 2018 (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 776 $ 1,695 $ 3,940 $ (153 ) $ 6,258 Expenses: Operating-related expenses 124 434 1,293 (153 ) 1,698 Selling and general expenses 177 292 1,095 — 1,564 Depreciation 46 7 31 — 84 Amortization of intangibles — — 122 — 122 Total expenses 347 733 2,541 (153 ) 3,468 Operating profit 429 962 1,399 — 2,790 Other (income) expense, net (27 ) — 2 — (25 ) Interest expense (income), net 143 2 (11 ) — 134 Non-operating intercompany transactions 363 (75 ) (1,872 ) 1,584 — (Loss) income before taxes on income (50 ) 1,035 3,280 (1,584 ) 2,681 (Benefit) Provision for taxes on income (14 ) 250 324 — 560 Equity in net income of subsidiaries 3,576 (1 ) — (3,575 ) — Net income 3,540 784 2,956 (5,159 ) 2,121 Less: net income attributable to noncontrolling interests — — — (163 ) (163 ) Net income attributable to S&P Global Inc. $ 3,540 $ 784 $ 2,956 $ (5,322 ) $ 1,958 Comprehensive income $ 3,510 $ 783 $ 2,884 $ (5,159 ) $ 2,018 Statement of Income Year Ended December 31, 2017 (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 717 $ 1,780 $ 3,704 $ (138 ) $ 6,063 Expenses: Operating-related expenses 89 482 1,261 (138 ) 1,694 Selling and general expenses 197 345 1,064 — 1,606 Depreciation 31 11 40 — 82 Amortization of intangibles — — 98 — 98 Total expenses 317 838 2,463 (138 ) 3,480 Operating profit 400 942 1,241 — 2,583 Other income, net (16 ) — (11 ) — (27 ) Interest expense (income), net 163 — (14 ) — 149 Non-operating intercompany transactions 365 (77 ) (2,463 ) 2,175 — Income before taxes on income (112 ) 1,019 3,729 (2,175 ) 2,461 Provision for taxes on income 26 370 427 — 823 Equity in net income of subsidiaries 3,808 — — (3,808 ) — Net income 3,670 649 3,302 (5,983 ) 1,638 Less: net income attributable to noncontrolling interests — — — (142 ) (142 ) Net income attributable to S&P Global Inc. $ 3,670 $ 649 $ 3,302 $ (6,125 ) $ 1,496 Comprehensive income $ 3,694 $ 649 $ 3,401 $ (5,982 ) $ 1,762 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 Short-term investments — — 28 — 28 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 2 117 — 221 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 Balance Sheet December 31, 2018 (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 $ 694 $ — $ 1,223 $ — $ 1,917 Restricted cash — — 41 — 41 Short-term investments — — 18 — 18 Accounts receivable, net of allowance for doubtful accounts 163 109 1,177 — 1,449 Intercompany receivable 550 2,138 2,873 (5,561 ) — Prepaid and other current assets 41 3 118 — 162 Total current assets 1,448 2,250 5,450 (5,561 ) 3,587 Property and equipment, net of accumulated depreciation 192 — 78 — 270 Right of use assets — — — — — Goodwill 261 — 3,265 9 3,535 Other intangible assets, net — — 1,524 — 1,524 Investments in subsidiaries 8,599 6 8,030 (16,635 ) — Intercompany loans receivable 130 — 1,643 (1,773 ) — Other non-current assets 194 45 286 — 525 Total assets $ 10,824 $ 2,301 $ 20,276 $ (23,960 ) $ 9,441 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 89 $ 15 $ 107 $ — $ 211 Intercompany payable 4,453 32 1,076 (5,561 ) — Accrued compensation and contributions to retirement plans 125 33 196 — 354 Income taxes currently payable 2 — 71 — 73 Unearned revenue 240 235 1,166 — 1,641 Other current liabilities 180 16 155 — 351 Total current liabilities 5,089 331 2,771 (5,561 ) 2,630 Long-term debt 3,662 — — — 3,662 Lease liabilities – non-current — — — — — Intercompany loans payable 114 — 1,659 (1,773 ) — Pension and other postretirement benefits 162 — 67 — 229 Other non-current liabilities 148 75 393 — 616 Total liabilities 9,175 406 4,890 (7,334 ) 7,137 Redeemable noncontrolling interest — — — 1,620 1,620 Equity: Common stock 294 — 2,279 (2,279 ) 294 Additional paid-in capital 72 618 9,784 (9,641 ) 833 Retained income 12,622 1,277 3,824 (6,439 ) 11,284 Accumulated other comprehensive loss (299 ) — (489 ) 46 (742 ) Less: common stock in treasury (11,040 ) — (13 ) 12 (11,041 ) Total equity - controlling interests 1,649 1,895 15,385 (18,301 ) 628 Total equity - noncontrolling interests — — 1 55 56 Total equity 1,649 1,895 15,386 (18,246 ) 684 Total liabilities and equity $ 10,824 $ 2,301 $ 20,276 $ (23,960 ) $ 9,441 Statement of Cash Flows Year Ended December 31, 2019 (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 $ 3,323 $ 880 $ 2,705 $ (4,605 ) $ 2,303 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 44 12 26 — 82 Amortization of intangibles — — 122 — 122 Provision for losses on accounts receivable 5 4 9 — 18 Deferred income taxes 24 (10 ) 32 — 46 Stock-based compensation 27 14 37 — 78 Gain on dispositions (49 ) — — — (49 ) Pension settlement charge, net of taxes 85 — — — 85 Other 64 2 27 — 93 Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: Accounts receivable (72 ) (49 ) (14 ) — (135 ) Prepaid and other current assets 17 (35 ) (63 ) — (81 ) Accounts payable and accrued expenses 14 32 27 — 73 Unearned revenue 56 28 172 — 256 Accrued legal settlements — (1 ) — — (1 ) Other current liabilities (61 ) 1 4 — (56 ) Net change in prepaid/accrued income taxes (33 ) (5 ) (3 ) — (41 ) Net change in other assets and liabilities (74 ) 34 23 — (17 ) Cash provided by operating activities 3,370 907 3,104 (4,605 ) 2,776 Investing Activities: Capital expenditures (46 ) (3 ) (66 ) — (115 ) Acquisitions, net of cash acquired — — (91 ) — (91 ) Proceeds from dispositions 85 — — — 85 Changes in short-term investments — — (10 ) — (10 ) Cash provided by (used for) investing activities 39 (3 ) (167 ) — (131 ) Financing Activities: Proceeds from issuance of senior notes, net 1,086 — — — 1,086 Payments on senior notes (868 ) — — — (868 ) Dividends paid to shareholders (560 ) — — — (560 ) Distributions to noncontrolling interest holders, net — — (143 ) — (143 ) Repurchase of treasury shares (1,240 ) — — — (1,240 ) Exercise of stock options 36 — 4 — 40 Employee withholding tax on share-based payments and other (64 ) — (2 ) — (66 ) Intercompany financing activities (1,368 ) (904 ) (2,333 ) 4,605 — Cash used for financing activities (2,978 ) (904 ) (2,474 ) 4,605 (1,751 ) Effect of exchange rate changes on cash 5 — 29 — 34 Net change in cash, cash equivalents, and restricted cash 436 — 492 — 928 Cash, cash equivalents, and restricted cash at beginning of year 694 — 1,264 — 1,958 Cash, cash equivalents, and restricted cash at end of year $ 1,130 $ — $ 1,756 $ — $ 2,886 Statement of Cash Flows Year Ended December 31, 2018 (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 $ 3,540 $ 784 $ 2,956 $ (5,159 ) $ 2,121 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 46 7 31 — 84 Amortization of intangibles — — 122 — 122 Provision for losses on accounts receivable 3 4 14 — 21 Deferred income taxes 33 10 38 — 81 Stock-based compensation 28 16 50 — 94 Accrued legal settlements — 1 — — 1 Other 46 5 1 — 52 Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: Accounts receivable (27 ) 39 (176 ) — (164 ) Prepaid and other current assets (2 ) (4 ) 5 — (1 ) Accounts payable and accrued expenses (11 ) (64 ) (31 ) — (106 ) Unearned revenue (53 ) 13 110 — 70 Accrued legal settlements — — (108 ) — (108 ) Other current liabilities (22 ) (11 ) (34 ) — (67 ) Net change in prepaid/accrued income taxes 2 — (9 ) — (7 ) Net change in other assets and liabilities (128 ) 32 (33 ) — (129 ) Cash provided by operating activities 3,455 832 2,936 (5,159 ) 2,064 Investing Activities: Capital expenditures (81 ) (16 ) (16 ) — (113 ) Acquisitions, net of cash acquired — — (401 ) — (401 ) Proceeds from dispositions — — 6 — 6 Changes in short-term investments — — (5 ) — (5 ) Cash used for investing activities (81 ) (16 ) (416 ) — (513 ) Financing Activities: Proceeds from issuance of senior notes, net 489 — — — 489 Payments on senior notes (403 ) — — — (403 ) Dividends paid to shareholders (503 ) — — — (503 ) Distributions to noncontrolling interest holders, net — — (154 ) — (154 ) Repurchase of treasury shares (1,660 ) — — — (1,660 ) Exercise of stock options 26 — 8 — 34 Purchase of additional CRISIL shares — — (25 ) — (25 ) Employee withholding tax on share-based payments and other (66 ) — — — (66 ) Intercompany financing activities (1,190 ) (816 ) (3,153 ) 5,159 — Cash used for financing activities (3,307 ) (816 ) (3,324 ) 5,159 (2,288 ) Effect of exchange rate changes on cash (5 ) — (79 ) — (84 ) Net change in cash, cash equivalents, and restricted cash 62 — (883 ) — (821 ) Cash, cash equivalents, and restricted cash at beginning of year 632 — 2,147 — 2,779 Cash, cash equivalents, and restricted cash at end of year $ 694 $ — $ 1,264 $ — $ 1,958 Statement of Cash Flows Year Ended December 31, 2017 (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 $ 3,670 $ 649 $ 3,302 $ (5,983 ) $ 1,638 Adjustments to reconcile net income to cash provided by operating activities Depreciation 31 11 40 — 82 Amortization of intangibles — — 98 — 98 Provision for losses on accounts receivable 2 3 11 — 16 Deferred income taxes 108 (10 ) (98 ) — — Stock-based compensation 35 22 42 — 99 Accrued legal settlements — — 55 — 55 Other 34 19 43 — 96 Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: Accounts receivable (2 ) (23 ) (171 ) — (196 ) Prepaid and other current assets (5 ) 3 12 — 10 Accounts payable and accrued expenses 22 97 (44 ) — 75 Unearned revenue 19 2 64 — 85 Accrued legal settlements — (1 ) (3 ) — (4 ) Other current liabilities (42 ) (12 ) (31 ) — (85 ) Net change in prepaid/accrued income taxes 41 (18 ) 9 — 32 Net change in other assets and liabilities 7 (6 ) 14 — 15 Cash provided by operating activities 3,920 736 3,343 (5,983 ) 2,016 Investing Activities: Capital expenditures (55 ) (32 ) (36 ) — (123 ) Acquisitions, net of cash acquired — — (83 ) — (83 ) Proceeds from dispositions — — 2 — 2 Changes in short-term investments — — (5 ) — (5 ) Cash used for investing activities (55 ) (32 ) (122 ) — (209 ) Financing Activities: Dividends paid to shareholders (421 ) — — — (421 ) Distributions to noncontrolling interest holders, net — — (111 ) — (111 ) Repurchase of treasury shares (1,001 ) — — — (1,001 ) Exercise of stock options 68 — 7 — 75 Employee withholding tax on share-based payments (49 ) — — — (49 ) Intercompany financing activities (2,546 ) (704 ) (2,733 ) 5,983 — Cash used for financing activities (3,949 ) (704 ) (2,837 ) 5,983 (1,507 ) Effect of exchange rate changes on cash 5 — 82 — 87 Net change in cash, cash equivalents, and restricted cash (79 ) — 466 — 387 Cash, cash equivalents, and restricted cash at beginning of year 711 — 1,681 — 2,392 Cash, cash equivalents, and restricted cash at end of year $ 632 $ — $ 2,147 $ — $ 2,779 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts (in millions) Additions/(deductions) Balance at beginning of year Net charges to income Deductions and other 1 Balance at end of year Year ended December 31, 2019 Allowance for doubtful accounts $ 34 $ 17 $ (17 ) $ 34 Year ended December 31, 2018 Allowance for doubtful accounts $ 33 $ 21 $ (20 ) $ 34 Year ended December 31, 2017 Allowance for doubtful accounts $ 28 $ 15 $ (11 ) $ 33 1 Primarily includes uncollectible accounts written off, net of recoveries, impact of acquisitions and divestitures and adjustments for foreign currency translation. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of operations | Nature of operations S&P Global Inc. (together with its consolidated subsidiaries, the “Company,” the “Registrant,” “we,” “us” or “our”) is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. The capital markets include asset managers, investment banks, commercial banks, insurance companies, exchanges, trading firms and issuers; and the commodity markets include producers, traders and intermediaries within energy, metals, petrochemicals and agriculture. Our 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"). • Ratings is an independent provider of credit ratings, research and analytics, offering investors and other market participants information, ratings and benchmarks. • Market Intelligence is a global provider of multi-asset-class data, research and analytical capabilities, which integrate cross-asset analytics and desktop services. • Platts is the leading independent provider of information and benchmark prices for the commodity and energy markets. • Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors. |
Adoption of ASC 606, 'Revenue from Contracts with Customers' | Adoption of ASC 606, “Revenue from Contracts with Customers” We adopted FASB ASC 606 "Revenue from Contracts with Customers" using the modified retrospective transition method applied to our revenue contracts with customers as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior year amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605 "Revenue Recognition". We recorded a net increase to opening retained earnings of $35 million as of January 1, 2018 due to the cumulative effect of adopting ASC 606, with the impact primarily related to our treatment of costs to obtain a contract and to a lesser extent, changes to the timing of the recognition of our subscription and non-transaction revenues. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Under ASC 605, revenue was recognized as it was earned and when services were rendered. Subscription revenue Subscription revenue at Market Intelligence is primarily derived from distribution of data, analytics, third party research, and credit ratings-related information primarily through web-based channels including Market Intelligence Desktop, RatingsDirect®, RatingsXpress®, and Credit Analytics. Subscription revenue at Platts is generated by providing customers access to commodity and energy-related price assessments, market data, and real-time news, along with other information services. Subscription revenue at Indices is derived from the contracts for underlying data of our indexes to support our customers' management of index funds, portfolio analytics, and research. For subscription products and services, we generally provide continuous access to dynamic data sets and analytics for a defined period, with revenue recognized ratably as our performance obligation to provide access to our data and analytics is progressively fulfilled over the stated term of the contract. Non-transaction revenue Non-transaction revenue at Ratings is primarily related to surveillance of a credit rating, annual fees for customer relationship-based pricing programs, fees for entity credit ratings and global research and analytics. Non-transaction revenue also includes an intersegment revenue elimination of $128 million , $125 million and $110 million for the years ended December 31, 2019 , 2018 , and 2017 respectively, mainly consisting of the royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. For non-transaction revenue related to Rating’s surveillance services, we continuously monitor factors that impact the creditworthiness of an issuer over the contractual term with revenue recognized to the extent that our performance obligation is progressively fulfilled over the term contract. Because surveillance services are continuously provided throughout the term of the contract, our measure of progress towards fulfillment of our obligation to monitor a rating is a time-based output measure with revenue recognized ratably over the term of the contract. Non-subscription / Transaction revenue Transaction revenue at our Ratings segment primarily includes fees associated with: • ratings related to new issuance of corporate and government debt instruments; as well as structured finance instruments; • bank loan ratings; and • corporate credit estimates, which are intended, based on an abbreviated analysis, to provide an indication of our opinion regarding creditworthiness of a company which does not currently have a Ratings credit rating. Transaction revenue is recognized at the point in time when our performance obligation is satisfied by issuing a rating on our customer's instruments, our customer's creditworthiness, or a counter-party's creditworthiness and when we have a right to payment and the customer can benefit from the significant risks and rewards of ownership. Non-subscription revenue at Market Intelligence is primarily related to certain advisory, pricing and analytical services. Non-subscription revenue at Platts is primarily related to conference sponsorship, consulting engagements and events. Asset-linked fees Asset-linked fees at Indices and Market Intelligence are primarily related to royalties payments based on the value of assets under management in our customers exchange-traded funds and mutual funds. For asset-linked products and services, we provide licenses conveying continuous access to our index and benchmark-related intellectual property during a specified contract term. Revenue is recognized when the extent that our customers have used our licensed intellectual property can be quantified. Recognition of revenue for our asset-linked fee arrangements is subject to the "recognition constraint" for usage-based royalty payments because we cannot reasonably predict the value of the assets that will be invested in index funds structured using our intellectual property until it is either publicly available or when we are notified by our customers. Revenue derived from an asset-linked fee arrangement is measured and recognized when the certainty of the extent of its utilization of our index products by our customers is known. Sales usage-based royalties Sales usage-based royalty revenue at our Indices segment is primarily related to trading based fees from exchange-traded derivatives. Sales and usage-based royalty revenue at our Platts segment is primarily related to licensing of its proprietary market price data and price assessments to commodity exchanges. For sales usage-based royalty products and services, we provide licenses conveying the right to continuous access to our intellectual property over the contract term, with revenue recognized when the extent of our license’s utilization can be quantified, or more specifically, when trading volumes are known and publicly available to us or when we are notified by our customers. Recognition of revenue of fees tied to trading volumes is subject to the recognition constraint for a usage-based royalty promised by our customers in exchange for the license of our intellectual property, with revenue recognized when trading volumes are known. Arrangements with Multiple Performance Obligations Our contracts with customers may include multiple performance obligations. Revenue relating to agreements that provide for more than one performance obligation is recognized based upon the relative fair value to the customer of each service component as each component is earned. The fair value of the service components are determined using an analysis that considers cash consideration that would be received for instances when the service components are sold separately. If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services’ stand-alone selling price and record revenue as it is earned over the service period. Receivables We record a receivable when a customer is billed or when revenue is recognized prior to billing a customer. For multi-year agreements, we generally invoice customers annually at the beginning of each annual period. Contract Assets Contract assets include unbilled amounts from when the Company transfers service to a customer before a customer pays consideration or before payment is due. As of December 31, 2019 and 2018 , contract assets were $28 million and $26 million , respectively, and are included in accounts receivable in our consolidated balance sheets. Unearned Revenue We record unearned revenue when cash payments are received in advance of our performance. The increase in the unearned revenue balance for the year ended December 31, 2019 is primarily driven by cash payments received in advance of satisfying our performance obligations, offset by $1.7 billion of revenues recognized that were included in the unearned revenue balance at the beginning of the period. Remaining Performance Obligations Remaining performance obligations represent the transaction price of contracts for work that has not yet been performed. As of December 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was $1.9 billion . We expect to recognize revenue on approximately half and three-quarters of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. We do not disclose the value of unfulfilled performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts where revenue is a usage-based royalty promised in exchange for a license of intellectual property. Costs to Obtain a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales commission programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were $115 million and $101 million as of December 31, 2019 and December 31, 2018 , respectively, and are included in prepaid and other current assets and other non-current assets on our consolidated balance sheets. The asset will be amortized over a period consistent with the transfer to the customer of the goods or services to which the asset relates, calculated based on the customer term and the average life of the products and services underlying the contracts. The expense is recorded within selling and general expenses. We expense sales commissions when incurred if the amortization period would have been one year or less. These costs are recorded within selling and general expenses. |
Assets and Liabilities Held for Sale and Discontinued Operations | Assets and Liabilities Held for Sale and Discontinued Operations Assets and Liabilities Held for Sale We classify a disposal group to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal group; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The fair value of a disposal group less any costs to sell is assessed each reporting period it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group as held for sale in the current period in our consolidated balance sheets. Discontinued Operations In determining whether a disposal of a component of an entity or a group of components of an entity is required to be presented as a discontinued operation, we make a determination whether the disposal represents a strategic shift that had, or will have, a major effect on our operations and financial results. A component of an entity comprises operations and cash flows that can be clearly distinguished both operationally and for financial reporting purposes. If we conclude that the disposal represents a strategic shift, then the results of operations of the group of assets being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from our continuing operating results in the consolidated financial statements. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of all subsidiaries and our share of earnings or losses of joint ventures and affiliated companies under the equity method of accounting. All significant intercompany accounts and transactions have been eliminated. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include ordinary bank deposits and highly liquid investments with original maturities of three months or less that consist primarily of money market funds with unrestricted daily liquidity and fixed term time deposits. Such investments and bank deposits are stated at cost, which approximates market value, and were $2.9 billion and $1.9 billion as of December 31, 2019 and 2018 , respectively. These investments are not subject to significant market risk. |
Restricted cash | Restricted cash Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash. |
Short-term investments | Short-term investments Short-term investments are securities with original maturities greater than 90 days that are available for use in our operations in the next twelve months. The short-term investments, primarily consisting of certificates of deposit and mutual funds, are classified as held-to-maturity and therefore are carried at cost. Interest and dividends are recorded in income when earned. |
Accounts receivable | Accounts receivable Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable, which include billings consistent with terms of contractual arrangements, are recorded at net realizable value. |
Allowance for doubtful accounts | Allowance for doubtful accounts The allowance for doubtful accounts reserve methodology is based on historical analysis, a review of outstanding balances and current conditions. In determining these reserves, we consider, amongst other factors, the financial condition and risk profile of our customers, areas of specific or concentrated risk as well as applicable industry trends or market indicators. |
Capitalized technology costs | Capitalized technology costs We capitalize certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Incremental costs are expenditures that are out-of-pocket to us and are not part of an allocation or existing expense base. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the year the software is ready for its intended use over its estimated useful life, three to seven |
Fair Value | Fair Value Certain assets and liabilities are required to be recorded at fair value and classified within a fair value hierarchy based on inputs used when measuring fair value. We have forward exchange contracts and a cross currency swap that are adjusted to fair value on a recurring basis. |
Accounting for the impairment of long-lived assets (including other intangible assets) | Accounting for the impairment of long-lived assets (including other intangible assets) We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on market evidence, discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets. |
Goodwill and other indefinite-lived intangible assets | Goodwill and other indefinite-lived intangible assets Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill and other intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually during the fourth quarter each year, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We have four reporting units with goodwill that are evaluated for impairment. We initially perform a qualitative analysis evaluating whether any events and circumstances occurred or exist that provide evidence that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. If, based on our evaluation we do not believe that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the fair value of any of our reporting units is less than their respective carrying amounts we perform a two-step quantitative impairment test. When conducting the first step of our two step impairment test to evaluate the recoverability of goodwill at the reporting unit level, the estimated fair value of the reporting unit is compared to its carrying value including goodwill. Fair value of the reporting units are estimated using the income approach, which incorporates the use of the discounted free cash flow (“DCF”) analyses and are corroborated using the market approach, which incorporates the use of revenue and earnings multiples based on market data. The DCF analyses are based on the current operating budgets and estimated long-term growth projections for each reporting unit. Future cash flows are discounted based on a market comparable weighted average cost of capital rate for each reporting unit, adjusted for market and other risks where appropriate. In addition, we analyze any difference between the sum of the fair values of the reporting units and our total market capitalization for reasonableness, taking into account certain factors including control premiums. If the fair value of the reporting unit is less than the carrying value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill to the carrying value of the goodwill. The fair value of the goodwill is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit. If the implied fair value of the goodwill is less than the carrying value, the difference is recognized as an impairment charge. We evaluate the recoverability of indefinite-lived intangible assets by first performing a qualitative analysis evaluating whether any events and circumstances occurred that provide evidence that it is more likely than not that the indefinite-lived asset is impaired. If, based on our evaluation of the events and circumstances that occurred during the year we do not believe that it is more likely than not that the indefinite-lived asset is impaired, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the indefinite-lived asset is impaired, a quantitative impairment test is performed. If necessary, the impairment test is performed by comparing the estimated fair value of the intangible asset to its carrying value. If the indefinite-lived intangible asset carrying value exceeds its fair value, an impairment analysis is performed using the income approach. An impairment charge is recognized in an amount equal to that excess. Significant judgments inherent in these analyses include estimating the amount and timing of future cash flows and the selection of appropriate discount rates, royalty rates and long-term growth rate assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit and indefinite-lived intangible asset and could result in an impairment charge, which could be material to our financial position and results of operations. |
Foreign currency translation | Foreign currency translation We have operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the parent company, the United States ("U.S.") dollar is the functional currency. For local currency operations, assets and liabilities are translated into U.S. dollars using end of period exchange rates, and revenue and expenses are translated into U.S. dollars using weighted-average exchange rates. Foreign currency translation adjustments are accumulated in a separate component of equity. |
Depreciation | Depreciation The costs of property and equipment are depreciated using the straight-line method based upon the following estimated useful lives: buildings and improvements from 15 to 40 years and equipment and furniture from 2 to 10 years . The costs of leasehold improvements are amortized over the lesser of the useful lives or the terms of the respective leases. |
Advertising expense | Advertising expense |
Stock-based compensation | Stock-based compensation Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, which typically is the vesting period. Stock-based compensation is classified as both operating-related expense and selling and general expense in the consolidated statements of income. |
Income taxes | Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize liabilities for uncertain tax positions taken or expected to be taken in income tax returns. Accrued interest and penalties related to unrecognized tax benefits are recognized in interest expense and operating expense, respectively. Judgment is required in determining our provision for income taxes, deferred tax assets and liabilities and unrecognized tax benefits. In determining the need for a valuation allowance, the historical and projected financial performance of the operation that is recording a net deferred tax asset is considered along with any other pertinent information. We file income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions, and we are routinely under audit by many different tax authorities. We believe that our accrual for tax liabilities is adequate for all open audit years based on our assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. It is possible that examinations will be settled prior to December 31, 2020 . If any of these tax audit settlements do occur within that period we would make any necessary adjustments to the accrual for unrecognized tax benefits. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest |
Contingencies | Contingencies We accrue for loss contingencies when both (a) information available prior to issuance of the consolidated financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. We continually assess the likelihood of any adverse judgments or outcomes to our contingencies, as well as potential amounts or ranges of probable losses, and recognize a liability, if any, for these contingencies based on an analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Because many of these matters are resolved over long periods of time, our estimate of liabilities may change due to new developments, changes in assumptions or changes in our strategy related to the matter. When we accrue for loss contingencies and the reasonable estimate of the loss is within a range, we record our best estimate within the range. We disclose an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may be incurred. |
Recent accounting standards | Recent Accounting Standards In January 2020, the Financial Accounting Standards Board ("FASB") issued a guidance intended to clarify the interaction of the accounting for equity securities under ASC 321, investments accounted for under the equity method of accounting under ASC 323, and the accounting for certain forward contracts and purchased options accounted for under ASC 815. This guidance could change how the Company accounts for an equity security under the measurement alternative. The guidance is effective for reporting periods beginning after December 15, 2020; however early adoption permitted. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In December of 2019, the FASB issued guidance to simplify the accounting for income taxes. The guidance eliminates certain exceptions to the general principles of Topic 740. The guidance is effective for reporting periods after December 15, 2020; however, early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In November of 2018, the FASB issued guidance that provides clarification on whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Accounting Standards Codification ("ASC") 606. The guidance is effective for reporting periods beginning after December 15, 2019; however early adoption is permitted. We do not expect this guidance to have a significant impact on our consolidated financial statements. In August of 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for reporting periods beginning after December 15, 2019; however early adoption is permitted. We do not expect this guidance to have a significant impact on our consolidated financial statements. In August of 2017, the FASB issued guidance to enhance the hedge accounting model for both nonfinancial and financial risk components, which includes amendments to address certain aspects of recognition and presentation disclosure. The guidance was effective on January 1, 2019, and the adoption of this guidance did not have a significant impact on our consolidated financial statements. In January of 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The guidance is effective for reporting periods beginning after December 15, 2019; however, early adoption is permitted. We do not expect this guidance to have a significant impact on our consolidated financial statements. In June of 2016, the FASB issued guidance that amends the measurement of credit losses on certain financial instruments by requiring the use of an expected loss methodology, which will result in more timely recognition of credit losses. The guidance is effective for reporting periods beginning after December 15, 2019. We have completed our evaluation of changes to our accounting policies, business processes, systems and internal controls to support the recognition and disclosure requirements under the new standard. The adoption of the new standard will impact our process around the assessment of the adequacy of our allowance for doubtful accounts on accounts receivable and contract assets to incorporate the impact of forecasts of future economic conditions, in addition to past events and current economic conditions. Based on our preliminary analysis, we anticipate that following the adoption of the new standard, the Company will recognize an immaterial adjustment to retained earnings as of the date of adoption. In February of 2016, the FASB issued guidance amending the accounting for leases that requires a lessee to recognize "right of use" assets with offsetting lease liabilities on the balance sheet, with expenses recognized similar to previously issued guidance. This guidance is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. We adopted the new lease standard effective January 1, 2019 using the modified retrospective transition method. In July of 2018, the FASB issued a subsequent update providing entities an additional transition method to adopt the new lease standard, allowing entities to adopt the standard prospectively without restating prior period's financial statements. We have elected this transition method upon adoption on January 1, 2019. We have also elected to apply the "package" of practical expedients permitting entities to forgo reassessment of (1) the lease classification of expired or existing leases, (2) whether any expired or existing contracts contain leases, and (3) the accounting for initial direct costs of existing leases. This standard had a material impact on our consolidated balance sheet, but did not have an impact on our consolidated statements of income or cash flows. As part of our implementation process, we have refined our processes, procedures, and controls to capture the complete population of leases that incorporates a third party software solution to report the financial statement impact of the new standard. See Note 12 — Commitments and Contingencies for further details on our leases. |
Reclassification | Reclassification Certain prior year amounts have been reclassified for comparability purposes. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Components of Other Income, Net | The components of other expense (income), net for the year ended December 31 are as follows: (in millions) 2019 2018 2017 Other components of net periodic benefit cost 1 $ 79 $ (30 ) $ (27 ) Net loss from investments 19 5 — Other expense (income), net $ 98 $ (25 ) $ (27 ) 1 During 2019, the Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The net periodic benefit cost for our retirement and post retirement plans for 2019 includes a non-cash pre-tax settlement charge of $113 million reflecting the accelerated recognition of a portion of unamortized actuarial losses in the plan. |
Schedule of Assumptions Used in Valuing the Options Granted | We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted: Year Ended December 31, 2018 Risk-free average interest rate 2.6 - 2.7% Dividend yield 1.1 % Volatility 21.8 - 22.0% Expected life (years) 5.67 - 6.07 Weighted-average grant-date fair value per option $ 112.98 We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted: Year Ended December 31, 2018 Risk-free average interest rate 2.6 - 2.7% Dividend yield 1.1 % Volatility 21.8 - 22.0% Expected life (years) 5.67 - 6.07 Weighted-average grant-date fair value per option $ 112.98 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Liabilities Assumed in Conjunction with Acquisition of Businesses | Liabilities assumed in conjunction with our acquisitions are as follows: (in millions) Year ended December 31, 2019 2018 2017 Fair value of assets acquired $ 110 $ 857 $ 83 Cash and stock consideration (net of cash acquired) 91 803 83 Liabilities assumed $ 19 $ 54 $ — |
Schedule of Key Components of Disposal Groups | The operating profit of our businesses that were disposed of for the years ending December 31, 2019, 2018, and 2017 is as follows: (in millions) Year ended December 31, 2019 2018 2017 Operating profit 1 $ 5 $ 8 $ 6 1 The year ended December 31, 2019 excludes a pre-tax gain of $49 million on our dispositions. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill | The change in the carrying amount of goodwill by segment is shown below: (in millions) Ratings Market Intelligence Platts Indices Corporate Total Balance as of December 31, 2017 $ 114 $ 1,961 $ 523 $ 391 $ — $ 2,989 Acquisitions 5 62 — — 498 565 Other 1 (6 ) 6 (7 ) (12 ) — (19 ) Balance as of December 31, 2018 113 2,029 516 379 498 3,535 Acquisitions — 44 6 — — 50 Dispositions — (12 ) (3 ) — — (15 ) Reclassifications — 3 — (3 ) — — Other 1 2 (2 ) 2 — 3 5 Balance as of December 31, 2019 $ 115 $ 2,062 $ 521 $ 376 $ 501 $ 3,575 1 Primarily relates to the impact of foreign exchange and valuation adjustments for prior period acquisitions. 2018 includes adjustments related to Trucost. 2019 includes adjustments related to Panjiva, Rate Watch and Eclipse. |
Schedule of Other Intangible Assets | The following table summarizes our definite-lived intangible assets: (in millions) Cost Databases and software Content Customer relationships Tradenames Other intangibles Total Balance as of December 31, 2017 $ 554 $ 139 $ 347 $ 50 $ 77 $ 1,167 Acquisitions 3 — — — 123 126 Other (primarily Fx) 1 4 — (1 ) — (6 ) (3 ) Balance as of December 31, 2018 561 139 346 50 194 1,290 Acquisitions — — — — 29 29 Reclassifications 78 — 10 5 (93 ) — Other 1 (10 ) — (1 ) (1 ) — (12 ) Balance as of December 31, 2019 $ 629 $ 139 $ 355 $ 54 $ 130 $ 1,307 Accumulated amortization Balance as of December 31, 2017 $ 187 $ 101 $ 106 $ 42 $ 57 $ 493 Current year amortization 52 14 21 3 32 122 Reclassifications 1 — — — (1 ) — Other (primarily Fx) 1 — — (1 ) — (2 ) (3 ) Balance as of December 31, 2018 240 115 126 45 86 612 Current year amortization 73 14 23 3 9 122 Reclassifications 22 — 4 1 (27 ) — Other 1 (4 ) — — (1 ) — (5 ) Balance as of December 31, 2019 $ 331 $ 129 $ 153 $ 48 $ 68 $ 729 Net definite-lived intangibles: December 31, 2018 $ 321 $ 24 $ 220 $ 5 $ 108 $ 678 December 31, 2019 $ 298 $ 10 $ 202 $ 6 $ 62 $ 578 1 |
Schedule of Projected Amortization Expense for Intangible Assets | Expected amortization expense for intangible assets over the next five years for the years ended December 31, assuming no further acquisitions or dispositions, is as follows: (in millions) 2020 2021 2022 2023 2024 Amortization expense $ 117 $ 86 $ 78 $ 73 $ 70 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Taxes from Domestic and Foreign Operations | Income before taxes on income resulting from domestic and foreign operations is as follows: (in millions) Year Ended December 31, 2019 2018 2017 Domestic operations $ 2,068 $ 1,857 $ 1,723 Foreign operations 862 824 738 Total income before taxes $ 2,930 $ 2,681 $ 2,461 |
Schedule of Provision for Taxes on Income | The provision for taxes on income consists of the following: (in millions) Year Ended December 31, 2019 2018 2017 Federal: Current $ 303 $ 198 $ 489 Deferred 13 53 63 Total federal 316 251 552 Foreign: Current 201 214 194 Deferred 14 (2 ) (3 ) Total foreign 215 212 191 State and local: Current 93 84 73 Deferred 3 13 7 Total state and local 96 97 80 Total provision for taxes $ 627 $ 560 $ 823 |
Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for financial reporting purposes is as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 21.0 % 35.0 % State and local income taxes 2.6 2.8 2.5 Foreign operations (0.3 ) 0.2 (3.9 ) TCJA Transition Tax — (0.3 ) 6.0 Stock-based compensation (1.4 ) (1.2 ) (2.7 ) S&P Dow Jones Indices LLC joint venture (1.2 ) (1.2 ) (1.8 ) Tax credits and incentives (1.7 ) (1.7 ) (2.1 ) Other, net 2.4 1.3 0.4 Effective income tax rate 21.4 % 20.9 % 33.4 % |
Schedule of Differences Between the Accounting for Income and Expenses for Financial Reporting and Income Tax | The principal temporary differences between the accounting for income and expenses for financial reporting and income tax purposes are as follows: (in millions) December 31, 2019 2018 Deferred tax assets: Legal and regulatory settlements $ 2 $ 2 Employee compensation 58 57 Accrued expenses 30 36 Postretirement benefits 27 48 Unearned revenue 28 29 Allowance for doubtful accounts 9 8 Loss carryforwards 155 155 Other 24 24 Total deferred tax assets 333 359 Deferred tax liabilities: Goodwill and intangible assets (318 ) (295 ) Total deferred tax liabilities (318 ) (295 ) Net deferred income tax asset before valuation allowance 15 64 Valuation allowance (163 ) (156 ) Net deferred income tax (liability) asset $ (148 ) $ (92 ) Reported as: Non-current deferred tax assets $ 52 $ 52 Non-current deferred tax liabilities (200 ) (144 ) Net deferred income tax (liability) asset $ (148 ) $ (92 ) |
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in millions) Year ended December 31, 2019 2018 2017 Balance at beginning of year $ 147 $ 212 $ 221 Additions based on tax positions related to the current year 21 19 23 Additions for tax positions of prior years 11 2 17 Reduction for tax positions of prior years (15 ) (21 ) (32 ) Reduction for settlements (33 ) (65 ) (5 ) Expiration of applicable statutes of limitations (7 ) — (12 ) Balance at end of year $ 124 $ 147 $ 212 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Short-term and Long-term Debt Outstanding | A summary of long-term debt outstanding is as follows: (in millions) December 31, 2019 2018 3.3% Senior Notes, due 2020 1 $ — $ 698 4.0% Senior Notes, due 2025 2 694 693 4.4% Senior Notes, due 2026 3 893 892 2.95% Senior Notes, due 2027 4 493 493 2.5% Senior Notes, due 2029 5 495 — 6.55% Senior Notes, due 2037 6 294 396 4.5% Senior Notes, due 2048 7 490 490 3.25% Senior Notes, due 2049 8 589 — Long-term debt $ 3,948 $ 3,662 1 We made a $700 million early repayment of our 3.3% senior note in the fourth quarter of 2019. 2 Interest payments are due semiannually on June 15 and December 15, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $6 million . 3 Interest payments are due semiannually on February 15 and August 15, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 4 Interest payments are due semiannually on January 22 and July 22, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $7 million . 5 Interest payments are due semiannually on June 1 and December 1, beginning on June 1, 2020, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $5 million . 6 We made a $103 million early repayment of a portion of our 6.55% senior note in November of 2019. Interest payments are due semiannually on May 15 and November 15, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $3 million . 7 Interest payments are due semiannually on May 15 and November 15, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $10 million . 8 Interest payments are due semiannually on June 1 and December 1, beginning on June 1, 2020, and as of December 31, 2019 , the unamortized debt discount and issuance costs total $11 million . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Location and Fair Value Amounts of Cash Flow Hedges | The following table provides information on the location and fair value amounts of our cash flow hedges and net investment hedge as of December 31, 2019 and December 31, 2018 : (in millions) December 31, December 31, Balance Sheet Location 2019 2018 Derivatives designated as cash flow hedges: Prepaid and other current assets Foreign exchange forward contracts $ 1 $ 3 Derivative designated as a net investment hedge: Other non-current liabilities Cross currency swap $ 10 $ — |
Schedule of Pre-tax Gains (Losses) on Cash Flow Hedges | The following table provides information on the location and amounts of pre-tax gains (losses) on our cash flow hedges and net investment hedge for the years ended December 31 : (in millions) Gain (Loss) Recognized in Accumulated Other Comprehensive Loss (effective portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) 2019 2018 2017 2019 2018 2017 Cash flow hedges - designated as hedging instruments Foreign exchange forward contracts $ (2 ) $ 2 $ — Revenue, Selling and general expenses $ 5 $ (4 ) $ 9 Net investment hedge - designated as hedging instrument Cross currency swap $ (10 ) $ — $ — $ — $ — $ — |
Schedule of Cash Flow Hedges included in AOCI | The activity related to the change in unrealized gains (losses) in accumulated other comprehensive loss was as follows for the years ended December 31 : (in millions) Year ended December 31, 2019 2018 2017 Cash Flow Hedges Net unrealized gains (losses) on cash flow hedges, net of taxes, beginning of year $ 4 $ 2 $ 2 Change in fair value, net of tax 3 (2 ) 9 Reclassification into earnings, net of tax (5 ) 4 (9 ) Net unrealized gains (losses) on cash flow hedges, net of taxes, end of year $ 2 $ 4 $ 2 Net Investment Hedge Net unrealized gains (losses) on net investment hedge, net of taxes, beginning of year $ — $ — $ — Change in fair value, net of tax (10 ) — — Reclassification into earnings, net of tax — — — Net unrealized gains (losses) on net investment hedge, net of taxes, end of year $ (10 ) $ — $ — |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of the Benefit Obligation, the Fair Value of Plan Assets, and the Funded Status | A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, 2019 and 2018, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets): (in millions) Retirement Plans Postretirement Plans 2019 2018 2019 2018 Net benefit obligation at beginning of year $ 2,076 $ 2,329 $ 40 $ 49 Service cost 3 3 — — Interest cost 64 71 1 1 Plan participants’ contributions — — 2 3 Actuarial loss (gain) 232 (199 ) 1 (4 ) Gross benefits paid (75 ) (103 ) (6 ) (8 ) Foreign currency effect 13 (26 ) — — Other adjustments 1 (368 ) 1 — (1 ) Net benefit obligation at end of year 1,945 2,076 38 40 Fair value of plan assets at beginning of year 1,987 2,219 16 20 Actual return on plan assets 354 (113 ) 1 — Employer contributions 46 9 — 1 Plan participants’ contributions — — 3 3 Gross benefits paid (75 ) (103 ) (7 ) (8 ) Foreign currency effect 16 (25 ) — — Other adjustments 1 (368 ) — — — Fair value of plan assets at end of year 1,960 1,987 13 16 Funded status $ 15 $ (89 ) $ (25 ) $ (24 ) Amounts recognized in consolidated balance sheets: Non-current assets $ 259 $ 125 $ — $ — Current liabilities (10 ) (9 ) — — Non-current liabilities (234 ) (205 ) (25 ) (24 ) $ 15 $ (89 ) $ (25 ) $ (24 ) Accumulated benefit obligation $ 1,932 $ 2,066 Plans with accumulated benefit obligation in excess of the fair value of plan assets: Projected benefit obligation $ 244 $ 214 Accumulated benefit obligation $ 231 $ 204 Fair value of plan assets $ — $ — Amounts recognized in accumulated other comprehensive loss, net of tax: Net actuarial loss (gain) $ 355 $ 460 $ (40 ) $ (41 ) Prior service credit 2 2 (13 ) (14 ) Total recognized $ 357 $ 462 $ (53 ) $ (55 ) 1 Relates to the impact of a retiree annuity purchase in 2019. The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. |
Schedule of Net Periodic Benefit Cost | A summary of net periodic benefit cost for our retirement and postretirement plans for the years ended December 31, is as follows: (in millions) Retirement Plans Postretirement Plans 2019 2018 2017 2019 2018 2017 Service cost $ 3 $ 3 $ 3 $ — $ — $ — Interest cost 64 71 74 1 1 2 Expected return on assets (108 ) (124 ) (126 ) — — — Amortization of: Actuarial loss (gain) 12 20 18 (2 ) (2 ) (2 ) Prior service credit — — — (1 ) (1 ) (2 ) Net periodic benefit cost (29 ) (30 ) (31 ) (2 ) (2 ) (2 ) Settlement charge 113 1 4 2 8 2 — — — Total net periodic benefit cost $ 84 $ (26 ) $ (23 ) $ (2 ) $ (2 ) $ (2 ) 1 Relates to the impact of a retiree annuity purchase in 2019. The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The non-cash pretax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan. 2 Represents a charge related to our U.K retirement plan. |
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, Net of Tax | Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax for the years ended December 31, are as follows: (in millions) Retirement Plans Postretirement Plans 2019 2018 2017 2019 2018 2017 Net actuarial (gain) loss $ (10 ) $ 28 $ (20 ) $ — $ (7 ) $ (3 ) Recognized actuarial (gain) loss (10 ) (15 ) (12 ) 1 1 1 Prior service (credit) cost — 1 — 1 1 1 Settlement charge (85 ) 1 (4 ) 2 (7 ) 2 — — — Total recognized $ (105 ) $ 10 $ (39 ) $ 2 $ (5 ) $ (1 ) 1 Relates to the impact of a retiree annuity purchase in 2019. The Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The non-cash after tax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan. 2 Represents a charge related to our U.K retirement plan. |
Schedule of Assumptions Used | Retirement Plans Postretirement Plans 2019 2018 2017 2019 2018 2017 Benefit obligation: Discount rate 2 3.45 % 4.40 % 3.68 % 3.08 % 4.15 % 3.40 % Net periodic cost: Weighted-average healthcare cost rate 1 6.50 % 6.50 % 7.00 % Discount rate - U.S. plan 2 4.40 % 3.68 % 4.13 % 4.15 % 3.40 % 3.69 % Discount rate - U.K. plan 2 2.72 % 2.41 % 2.58 % Return on assets 3 6.00 % 6.00 % 6.25 % 1 The assumed weighted-average healthcare cost trend rate will decrease ratably from 6% in 2019 to 5% in 2024 and remain at that level thereafter. Assumed healthcare cost trends have an effect on the amounts reported for the healthcare plans. A one percentage point change in assumed healthcare cost trend creates the following effects: (in millions) 1% point increase 1% point decrease Effect on postretirement obligation $ — $ — 2 Effective January 1, 2019, we changed our discount rate assumption on our U.S. retirement plans to 4.40% from 3.68% in 2018 and changed our discount rate assumption on our U.K. plan to 2.72% from 2.41% in 2018. 3 The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term. Effective January 1, 2020, our return on assets assumption for the U.S. plan was reduced to |
Schedule of Information about the Expected Cash Flows for Retirement and Post-Retirement Plans and Impact of the Medicare Subsidy | Information about the expected cash flows for our retirement and postretirement plans and the impact of the Medicare subsidy is as follows: (in millions) Postretirement Plans 2 Retirement 1 Plans Gross payments Retiree contributions Medicare subsidy 3 Net payments 2020 $ 63 $ 7 $ (2 ) $ — $ 5 2021 66 6 (2 ) — 4 2022 69 6 (2 ) — 4 2023 72 5 (1 ) — 4 2024 75 5 (1 ) — 4 2025-2029 413 17 (6 ) — 11 1 Reflects the total benefits expected to be paid from the plans or from our assets including both our share of the benefit cost and the participants’ share of the cost. 2 Reflects the total benefits expected to be paid from our assets. 3 Expected medicare subsidy amounts, for the years presented, are less than $1 million . |
Schedule of Fair Value of Defined Benefit Plan Assets by Asset Class | The fair value of our defined benefit plans assets as of December 31, 2019 and 2018 , by asset class is as follows: (in millions) December 31, 2019 Total Level 1 Level 2 Level 3 Cash and short-term investments $ 3 $ 3 $ — $ — Equities: U.S. indexes 1 23 23 — — U.S. growth and value 56 56 — — Fixed income: Long duration strategy 2 1,078 — 1,078 — Intermediate duration securities 20 — 20 — Agency mortgage backed securities 3 — 3 — Asset backed securities 14 — 14 — Non-agency mortgage backed securities 3 11 — 11 — International, excluding U.K. 15 — 15 — Real Estate: U.K. 4 39 — — 39 Total $ 1,262 $ 82 $ 1,141 $ 39 Collective investment funds 5 $ 698 Total $ 1,960 (in millions) December 31, 2018 Total Level 1 Level 2 Level 3 Cash and short-term investments $ 4 $ 4 $ — $ — Equities: U.S. indexes 1 21 21 — — U.S. growth and value 69 69 — — U.K. — — — — International, excluding U.K. — — — — Fixed income: Long duration strategy 2 1,070 — 1,070 — Intermediate duration securities 35 — 35 — Agency mortgage backed securities 4 — 4 — Asset backed securities 18 — 18 — Non-agency mortgage backed securities 3 13 — 13 — International, excluding U.K. 18 — 18 — Real Estate: U.K. 4 39 — — 39 Total $ 1,291 $ 94 $ 1,158 $ 39 Collective investment funds 5 $ 696 Total $ 1,987 1 Includes securities that are tracked in the S&P Smallcap 600 index. 2 Includes securities that are mainly investment grade obligations of issuers in the U.S. 3 Includes U.S. mortgage-backed securities that are not backed by the U.S. government. 4 Includes a fund which holds real estate properties in the U.K. 5 Includes the Standard & Poor's 500 Composite Stock Index, the Standard & Poor's MidCap 400 Composite Stock Index, a short-term investment fund which is a common collective trust vehicle, and other various asset classes. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table details further information on our plan assets where we have used significant unobservable inputs : (in millions) Level 3 Balance as of December 31, 2018 $ 39 Purchases — Distributions — Gain (loss) — Balance as of December 31, 2019 $ 39 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Number of Common Shares Reserved for Issuance | The number of common shares reserved for issuance are as follows: (in millions) December 31, 2019 2018 Shares available for granting 1 20.0 33.3 Options outstanding 0.7 1.7 Total shares reserved for issuance 2 20.7 35.0 1 Shares available for granting at December 31, 2019 and 2018 are under the 2019 Plan and 2002 Plan, respectively. 2 Shares reserved for issuance under the Director Deferred Stock Ownership Plan are not included in the total, but are less than 1.0 million at December 31 2019 and 2018, respectively. |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense and the corresponding tax benefit are as follows: (in millions) Year Ended December 31, 2019 2018 2017 Stock option expense $ 1 $ 5 $ 3 Restricted stock and unit awards expense 77 89 96 Total stock-based compensation expense $ 78 $ 94 $ 99 Tax benefit $ 13 $ 19 $ 38 |
Schedule of Assumptions Used in Valuing the Options Granted | We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted: Year Ended December 31, 2018 Risk-free average interest rate 2.6 - 2.7% Dividend yield 1.1 % Volatility 21.8 - 22.0% Expected life (years) 5.67 - 6.07 Weighted-average grant-date fair value per option $ 112.98 We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted: Year Ended December 31, 2018 Risk-free average interest rate 2.6 - 2.7% Dividend yield 1.1 % Volatility 21.8 - 22.0% Expected life (years) 5.67 - 6.07 Weighted-average grant-date fair value per option $ 112.98 |
Schedule of Stock Option Activity | Stock option activity is as follows: (in millions, except per award amounts) Shares Weighted average exercise price Weighted-average remaining years of contractual term Aggregate intrinsic value Options outstanding as of December 31, 2018 1.7 $ 47.92 Exercised (1.0 ) $ 163.99 Forfeited and expired 1 — $ 70.70 Options outstanding as of December 31, 2019 0.7 $ 55.73 3.1 $ 155 Options exercisable as of December 31, 2019 0.7 $ 55.12 3.0 $ 151 1 There are less than 0.1 million shares forfeited and expired. (in millions, except per award amounts) Shares Weighted-average grant-date fair value Nonvested options outstanding as of December 31, 2018 0.1 $ 113.02 Vested 1 — $ 113.42 Forfeited (0.1 ) $ 113.17 Nonvested options outstanding as of December 31, 2019 2 — $ 112.68 Total unrecognized compensation expense related to nonvested options $ 0.3 Weighted-average years to be recognized over 0.7 1 There are less than 0.1 million shares vested. 2 There are less than 0.1 million nonvested options outstanding as of December 31, 2019. |
Schedule of Stock Option Exercises | Information regarding our stock option exercises is as follows: (in millions) Year Ended December 31, 2019 2018 2017 Net cash proceeds from the exercise of stock options $ 40 $ 34 $ 75 Total intrinsic value of stock option exercises $ 110 $ 77 $ 118 Income tax benefit realized from stock option exercises $ 33 $ 27 $ 64 |
Schedule of Restricted Stock and Unit Activity | Restricted stock and unit activity for performance and non-performance awards is as follows: (in millions, except per award amounts) Shares Weighted-average grant-date fair value Nonvested shares as of December 31, 2018 0.8 $ 172.24 Granted 0.5 $ 187.40 Vested (0.6 ) $ 144.18 Forfeited (0.1 ) $ 179.76 Nonvested shares as of December 31, 2019 0.6 $ 199.93 Total unrecognized compensation expense related to nonvested awards $ 72 Weighted-average years to be recognized over 1.8 Year Ended December 31, 2019 2018 2017 Weighted-average grant-date fair value per award $ 187.40 $ 182.75 $ 147.12 Total fair value of restricted stock and unit awards vested $ 153 $ 154 $ 147 Tax benefit relating to restricted stock activity $ 29 $ 32 $ 36 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Dividend History | Year Ended December 31, 2019 2018 2017 Quarterly dividend rate $ 0.57 $ 0.50 $ 0.41 Annualized dividend rate $ 2.28 $ 2.00 $ 1.64 Dividends paid (in millions) $ 560 $ 503 $ 421 |
Schedule of Accelerated Share Repurchase Agreements | The terms of each ASR agreement entered for the years ended December 31, 2019 , 2018 and 2017 , structured as outlined above, are as follows: (in millions, except average price) ASR Agreement Initiation Date ASR Agreement Completion Date Initial Shares Delivered Additional Shares Delivered Total Number of Shares Purchased Average Price Paid Per Share Total Cash Utilized August 5, 2019 1 October 1, 2019 1.8 0.1 2.0 $ 253.36 $ 500 February 11, 2019 2 July 31, 2019 2.2 0.1 2.3 $ 214.65 $ 500 October 29, 2018 3 January 2, 2019 2.5 0.4 2.9 $ 173.80 $ 500 March 6, 2018 4 September 25, 2018 4.5 0.6 5.1 $ 197.49 $ 1,000 August 1, 2017 5 October 31, 2017 2.8 0.5 3.2 $ 154.46 $ 500 1 The ASR agreement was structured as a capped ASR agreement in which we paid $500 million and received an initial delivery of 1.8 million shares, representing the minimum number of shares of our common stock to be repurchased based on a calculation using a specified capped price per share. 2 The ASR agreement was structured as an uncapped ASR agreement in which we paid $500 million and received an initial delivery of 2.2 million shares, representing 85% of the $500 million at a price equal to the then market price of the Company. 3 The ASR agreement was structured as an uncapped ASR agreement in which we paid $500 million and received an initial delivery of 2.5 million shares, representing 85% of the $500 million at a price equal to the then market price of the Company. 4 The ASR agreement was structured as an uncapped ASR agreement in which we paid $ 1 billion and received an initial delivery of 4.5 million shares, representing 85% of the $ 1 billion at a price equal to the then market price of the Company. 5 The ASR agreement was structured as an uncapped ASR agreement in which we paid $500 million and received an initial delivery of 2.8 million shares, representing 85% of the $500 million at a price equal to the then market price of the Company. |
Schedule of Share Repurchases | Additionally, we purchased shares of our common stock in the open market as follows (in millions, except average price) Year Ended Total number of shares purchased Average price paid per share Total cash utilized December 31, 2019 1.2 $ 208.83 $ 240 December 31, 2018 0.9 $ 182.93 $ 160 December 31, 2017 3.5 $ 141.60 $ 501 |
Schedule of Redeemable Noncontrolling Interest Rollforward | Ch anges to redeemable noncontrolling interest during the year ended December 31, 2019 were as follows: (in millions) Balance as of December 31, 2018 $ 1,620 Net income attributable to noncontrolling interest 170 Capital contribution from noncontrolling interest 36 Distributions to noncontrolling interest (166 ) Redemption value adjustment 608 Balance as of December 31, 2019 $ 2,268 |
Schedule of Changes in the Components of Accumulated Other Comprehensive Loss | The following table summarizes the changes in the components of accumulated other comprehensive loss for the year ended December 31, 2019 : (in millions) Foreign Currency Translation Adjustment 1 Pension and Postretirement Benefit Plans 2 Unrealized Gain (Loss) on Forward Exchange Contracts 1 Accumulated Other Comprehensive Loss Balance as of December 31, 2018 $ (339 ) $ (407 ) $ 4 $ (742 ) Other comprehensive gain (loss) before reclassifications 18 9 3 30 Reclassifications from accumulated other comprehensive loss to net earnings — 93 (5 ) 88 Net other comprehensive gain (loss) income 18 102 (2 ) 118 Balance as of December 31, 2019 $ (321 ) $ (305 ) $ 2 $ (624 ) 1 See Note 6 — Derivative Instruments for additional details of gains (losses) included in accumulated other comprehensive loss and items reclassed from accumulated other comprehensive loss to net earnings. 2 Reflects amortization of net actuarial losses and is net of a tax benefit of $39 million for the year ended December 31, 2019. See Note 7 — Employee Benefits for additional details of items reclassed from accumulated other comprehensive loss to net earnings. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation for Basic and Diluted Earnings per Share | The calculation for basic and diluted EPS is as follows: (in millions, except per share data) Year Ended December 31, 2019 2018 2017 Amount attributable to S&P Global Inc. common shareholders: Net income $ 2,123 $ 1,958 $ 1,496 Basic weighted-average number of common shares outstanding 245.4 250.9 256.3 Effect of stock options and other dilutive securities 1.5 2.3 2.6 Diluted weighted-average number of common shares outstanding 246.9 253.2 258.9 Earnings per share attributable to S&P Global Inc. common shareholders: Net income: Basic $ 8.65 $ 7.80 $ 5.84 Diluted $ 8.60 $ 7.73 $ 5.78 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Initial Restructuring Charge Recorded and the Ending Reserve Balance | The initial restructuring charge recorded and the ending reserve balance as of December 31, 2019 by segment is as follows: 2019 Restructuring Plan 2018 Restructuring Plan (in millions) Initial Charge Recorded Ending Reserve Balance Initial Charge Recorded Ending Reserve Balance Ratings $ 11 $ 7 $ 8 $ — Market Intelligence 6 5 7 1 Platts 1 — — — Corporate 7 6 10 1 Total $ 25 $ 18 $ 25 $ 2 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | A summary of operating results for the years ended December 31 is as follows: Revenue (in millions) 2019 2018 2017 Ratings $ 3,106 $ 2,883 $ 2,988 Market Intelligence 1,959 1,833 1,683 Platts 844 815 774 Indices 918 837 728 Corporate — 15 — Intersegment elimination 1 (128 ) (125 ) (110 ) Total revenue $ 6,699 $ 6,258 $ 6,063 Operating Profit (in millions) 2019 2018 2017 Ratings 2 $ 1,763 $ 1,530 $ 1,517 Market Intelligence 3 607 545 457 Platts 4 438 383 326 Indices 5 630 563 478 Total reportable segments 3,438 3,021 2,778 Corporate Unallocated 6 (212 ) (231 ) (195 ) Total operating profit $ 3,226 $ 2,790 $ 2,583 1 Revenue for Ratings and expenses for Market Intelligence include an intersegment royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. 2 Operating profit or the year ended December 31, 2019 includes employee severance charges of $11 million . Operating profit for the year ended December 31, 2018 includes legal settlement expenses of $74 million and employee severance charges of $8 million . Operating profit for the year ended December 31, 2017 includes legal settlement expenses of $55 million and employee severance charges of $25 million . Additionally, operating profit includes amortization of intangibles from acquisitions of $2 million for the years ended December 31, 2019 and 2018 and $4 million for the year ended December 31, 2017 . 3 As of July 1, 2019, we completed the sale of SPIAS and the results are included in Market Intelligence results through that date. Operating profit for the year ended December 31, 2019 includes a gain on the sale of SPIAS of $22 million , employee severance charges of $6 million and acquisition related costs of $4 million . Operating profit for the year ended December 31, 2018 includes restructuring charges related to a business disposition and employee severance charges of $7 million . Operating profit for the year ended December 31, 2017 includes employee severance charges of $7 million , and non-cash disposition-related adjustments of $4 million . Additionally, operating profit includes amortization of intangibles from acquisitions of $75 million , $73 million and $71 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. 4 As of July 31, 2019, we completed the sale of RigData and the results are included in Platts results through that date. Operating profit for the year ended December 31, 2019 includes a gain on the sale of RigData of $27 million and employee severance charges of $1 million . Operating profit for the year ended December 31, 2017 includes non-cash acquisition-related adjustment of $11 million , a charge to exit a leased facility of $6 million , an asset write-off of $2 million , and employee severance charges of $2 million . Additionally, Operating profit includes amortization of intangibles from acquisitions of $12 million for the year ended December 31, 2019 and $18 million for the years ended December 31, 2018 and 2017. 5 Operating profit includes amortization of intangibles from acquisitions of $6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. 6 Corporate Unallocated operating loss for the year ended December 31, 2019 includes Kensho retention related expenses $21 million , lease impairments of $11 million and employee severance charges of $7 million . Corporate Unallocated operating loss for the year ended December 31, 2018 includes Kensho retention related expense of $31 million , lease impairments of $11 million and employee severance charges of $10 million . Corporate Unallocated operating loss for the year ended December 31, 2017 includes a charge to exit leased facilities of $19 million and employee severance charges of $10 million . Additionally, Corporate Unallocated operating loss includes amortization of intangibles from acquisitions of $28 million and $23 million for the years ended December 31, 2019 and 2018. The following table presents our revenue disaggregated by revenue type for the years ended December 31 : (in millions) Ratings Market Intelligence Platts Indices Corporate Intersegment Elimination 1 Total 2019 Subscription $ — $ 1,904 $ 774 $ 165 $ — $ — $ 2,843 Non-subscription / Transaction 1,577 45 10 — — — 1,632 Non-transaction 1,529 — — — — (128 ) 1,401 Asset-linked fees — 10 — 613 — — 623 Sales usage-based royalties — — 60 140 — — 200 Total revenue $ 3,106 $ 1,959 $ 844 $ 918 $ — $ (128 ) $ 6,699 Timing of revenue recognition Services transferred at a point in time 1,577 45 10 — — — $ 1,632 Services transferred over time 1,529 1,914 834 918 — (128 ) 5,067 Total revenue $ 3,106 $ 1,959 $ 844 $ 918 $ — $ (128 ) $ 6,699 (in millions) Ratings Market Intelligence Platts Indices Corporate Intersegment Elimination 1 Total 2018 2 Subscription $ — $ 1,773 $ 750 $ 144 $ 15 $ — $ 2,682 Non-subscription / Transaction 1,350 40 11 — — — 1,401 Non-transaction 1,533 — $ — — — (125 ) 1,408 Asset-linked fees — 20 — 522 — — 542 Sales usage-based royalties — — 54 171 — — 225 Total revenue $ 2,883 $ 1,833 $ 815 $ 837 $ 15 $ (125 ) $ 6,258 Timing of revenue recognition Services transferred at a point in time $ 1,350 $ 40 $ 11 $ — $ — $ — $ 1,401 Services transferred over time 1,533 1,793 804 837 15 (125 ) 4,857 Total revenue $ 2,883 $ 1,833 $ 815 $ 837 $ 15 $ (125 ) $ 6,258 (in millions) Ratings Market Intelligence Platts Indices Corporate Intersegment Elimination 1 Total 2017 2,3 Subscription $ — $ 1,614 $ 704 $ 136 $ — $ — $ 2,454 Non-subscription / Transaction 1,515 46 13 — — — 1,574 Non-transaction 1,473 — — — — (110 ) 1,363 Asset-linked fees — 23 — 461 — — 484 Sales usage-based royalties — — 57 131 — — 188 Total revenue $ 2,988 $ 1,683 $ 774 $ 728 $ — $ (110 ) $ 6,063 Timing of revenue recognition Services transferred at a point in time $ 1,515 $ 46 $ 13 $ — $ — $ — $ 1,574 Services transferred over time 1,473 1,637 761 728 — (110 ) 4,489 Total revenue $ 2,988 $ 1,683 $ 774 $ 728 $ — $ (110 ) $ 6,063 1 Intersegment eliminations mainly consists of a royalty charged to Market Intelligence for the rights to use and distribute content and data developed by Ratings. 2 In 2019 , we reevaluated our transaction and non-transaction revenue presentation which resulted in a reclassification from transaction revenue to non-transaction revenue of $27 million and $25 million for 2018 and 2017 , respectively. 3 Amounts for the year ended December 31, 2017 were not adjusted under the modified retrospective transition method applied to our revenue contracts with customers as of January 1, 2018. Segment information for the years ended December 31 is as follows: (in millions) Depreciation & Amortization Capital Expenditures 2019 2018 2017 2019 2018 2017 Ratings $ 34 $ 32 $ 34 $ 41 $ 42 $ 45 Market Intelligence 99 99 104 44 30 37 Platts 21 27 25 13 9 15 Indices 8 9 8 5 3 3 Total reportable segments 162 167 171 103 84 100 Corporate 42 39 9 12 29 23 Total $ 204 $ 206 $ 180 $ 115 $ 113 $ 123 Segment information as of December 31 is as follows: (in millions) Total Assets 2019 2018 Ratings $ 963 $ 680 Market Intelligence 3,806 3,606 Platts 938 787 Indices 1,492 1,443 Total reportable segments 7,199 6,516 Corporate 1 4,140 2,911 Assets held for sale 2 9 14 Total $ 11,348 $ 9,441 1 Corporate assets consist principally of cash and cash equivalents, goodwill and other intangible assets, assets for pension benefits, deferred income taxes and leasehold improvements related to subleased areas. 2 Includes East Windsor and New Jersey facility as of December 31, 2019 and 2018, respectively. |
Schedule of Revenue and Long-lived Assets by Geographic Region | The following provides revenue and long-lived assets by geographic region: (in millions) Revenue Long-lived Assets Year ended December 31, December 31, 2019 2018 2017 2019 2018 U.S. $ 3,949 $ 3,750 $ 3,658 $ 4,946 $ 5,019 European region 1,681 1,543 1,473 323 317 Asia 715 647 594 93 51 Rest of the world 354 318 338 44 42 Total $ 6,699 $ 6,258 $ 6,063 $ 5,406 $ 5,429 Revenue Long-lived Assets Year ended December 31, December 31, 2019 2018 2017 2019 2018 U.S. 59 % 60 % 60 % 91 % 92 % European region 25 25 24 6 6 Asia 11 10 10 2 1 Rest of the world 5 5 6 1 1 Total 100 % 100 % 100 % 100 % 100 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Location and Amounts of Leases | The following table provides information on the location and amounts of our leases on our consolidated balance sheet as of December 31, 2019 : (in millions) Balance Sheet Location 2019 Assets Right of use assets Lease right-of-use assets $ 676 Liabilities Other current liabilities Current lease liabilities 112 Lease liabilities — non-current Non-current lease liabilities 620 |
Schedule of Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense for the year ended December 31 are as follows: (in millions) 2019 Operating lease cost $ 157 Sublease income (18 ) Total lease cost $ 139 Supplemental information related to leases for the year ended December 31 are as follows: (in millions) 2019 Cash paid for amounts included in the measurement for operating lease liabilities Operating cash flows from operating leases $ 146 Right-of-use assets obtained in exchange for lease obligations Operating leases 777 |
Schedule of Lease Terms and Discount Rates | Weighted-average remaining lease term and discount rate for our operating leases as of December 31 are as follows: 2019 Weighted-average remaining lease term (years) 8.95 Weighted-average discount rate 3.93 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities for our operating leases are as follows: (in millions) 2020 $ 133 2021 113 2022 98 2023 82 2024 65 2025 and beyond 358 Total undiscounted lease payments $ 849 Less: Imputed interest 117 Present value of lease liabilities $ 732 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information (Unaudited) | (in millions, except per share data) First quarter Second quarter Third quarter Fourth quarter Total year 2019 Revenue $ 1,571 $ 1,704 $ 1,689 $ 1,735 $ 6,699 Operating profit $ 705 $ 813 $ 891 $ 818 $ 3,226 Net income $ 453 $ 602 $ 662 $ 585 $ 2,303 Net income attributable to S&P Global common shareholders $ 410 $ 555 $ 617 $ 541 $ 2,123 Earnings per share attributable to S&P Global Inc. common shareholders: Net income: Basic $ 1.66 $ 2.25 $ 2.52 $ 2.22 $ 8.65 Diluted $ 1.65 $ 2.24 $ 2.50 $ 2.20 $ 8.60 2018 Revenue $ 1,567 $ 1,609 $ 1,546 $ 1,536 $ 6,258 Operating profit $ 711 $ 672 $ 704 $ 704 $ 2,790 Net income $ 534 $ 501 $ 535 $ 551 $ 2,121 Net income attributable to S&P Global common shareholders $ 491 $ 461 $ 495 $ 512 $ 1,958 Earnings per share attributable to S&P Global Inc. common shareholders: Net income: Basic $ 1.94 $ 1.83 $ 1.97 2.06 7.80 Diluted $ 1.93 $ 1.82 $ 1.95 2.03 7.73 Note - Totals presented may not sum due to rounding. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Statement of Income | Statement of Income Year Ended December 31, 2019 (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 812 $ 1,898 $ 4,146 $ (157 ) $ 6,699 Expenses: Operating-related expenses 158 440 1,360 (157 ) 1,801 Selling and general expenses 133 329 1,055 — 1,517 Depreciation 44 12 26 — 82 Amortization of intangibles — — 122 — 122 Total expenses 335 781 2,563 (157 ) 3,522 Gain on dispositions (49 ) — — — (49 ) Operating profit 526 1,117 1,583 — 3,226 Other expense, net 91 — 7 — 98 Interest expense (income), net 213 — (15 ) — 198 Non-operating intercompany transactions 378 (48 ) (1,530 ) 1,200 — (Loss) income before taxes on income (156 ) 1,165 3,121 (1,200 ) 2,930 (Benefit) Provision for taxes on income (74 ) 285 416 — 627 Equity in net income of subsidiaries 3,405 — — (3,405 ) — Net income 3,323 880 2,705 (4,605 ) 2,303 Less: net income attributable to noncontrolling interests — — — (180 ) (180 ) Net income attributable to S&P Global Inc. $ 3,323 $ 880 $ 2,705 $ (4,785 ) $ 2,123 Comprehensive income $ 3,446 $ 880 $ 2,697 $ (4,602 ) $ 2,421 Statement of Income Year Ended December 31, 2018 (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 776 $ 1,695 $ 3,940 $ (153 ) $ 6,258 Expenses: Operating-related expenses 124 434 1,293 (153 ) 1,698 Selling and general expenses 177 292 1,095 — 1,564 Depreciation 46 7 31 — 84 Amortization of intangibles — — 122 — 122 Total expenses 347 733 2,541 (153 ) 3,468 Operating profit 429 962 1,399 — 2,790 Other (income) expense, net (27 ) — 2 — (25 ) Interest expense (income), net 143 2 (11 ) — 134 Non-operating intercompany transactions 363 (75 ) (1,872 ) 1,584 — (Loss) income before taxes on income (50 ) 1,035 3,280 (1,584 ) 2,681 (Benefit) Provision for taxes on income (14 ) 250 324 — 560 Equity in net income of subsidiaries 3,576 (1 ) — (3,575 ) — Net income 3,540 784 2,956 (5,159 ) 2,121 Less: net income attributable to noncontrolling interests — — — (163 ) (163 ) Net income attributable to S&P Global Inc. $ 3,540 $ 784 $ 2,956 $ (5,322 ) $ 1,958 Comprehensive income $ 3,510 $ 783 $ 2,884 $ (5,159 ) $ 2,018 Statement of Income Year Ended December 31, 2017 (in millions) S&P Global Inc. Standard & Poor's Financial Services LLC Non-Guarantor Subsidiaries Eliminations S&P Global Inc. Consolidated Revenue $ 717 $ 1,780 $ 3,704 $ (138 ) $ 6,063 Expenses: Operating-related expenses 89 482 1,261 (138 ) 1,694 Selling and general expenses 197 345 1,064 — 1,606 Depreciation 31 11 40 — 82 Amortization of intangibles — — 98 — 98 Total expenses 317 838 2,463 (138 ) 3,480 Operating profit 400 942 1,241 — 2,583 Other income, net (16 ) — (11 ) — (27 ) Interest expense (income), net 163 — (14 ) — 149 Non-operating intercompany transactions 365 (77 ) (2,463 ) 2,175 — Income before taxes on income (112 ) 1,019 3,729 (2,175 ) 2,461 Provision for taxes on income 26 370 427 — 823 Equity in net income of subsidiaries 3,808 — — (3,808 ) — Net income 3,670 649 3,302 (5,983 ) 1,638 Less: net income attributable to noncontrolling interests — — — (142 ) (142 ) Net income attributable to S&P Global Inc. $ 3,670 $ 649 $ 3,302 $ (6,125 ) $ 1,496 Comprehensive income $ 3,694 $ 649 $ 3,401 $ (5,982 ) $ 1,762 |
Balance Sheet | 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 Short-term investments — — 28 — 28 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 2 117 — 221 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 Balance Sheet December 31, 2018 (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 $ 694 $ — $ 1,223 $ — $ 1,917 Restricted cash — — 41 — 41 Short-term investments — — 18 — 18 Accounts receivable, net of allowance for doubtful accounts 163 109 1,177 — 1,449 Intercompany receivable 550 2,138 2,873 (5,561 ) — Prepaid and other current assets 41 3 118 — 162 Total current assets 1,448 2,250 5,450 (5,561 ) 3,587 Property and equipment, net of accumulated depreciation 192 — 78 — 270 Right of use assets — — — — — Goodwill 261 — 3,265 9 3,535 Other intangible assets, net — — 1,524 — 1,524 Investments in subsidiaries 8,599 6 8,030 (16,635 ) — Intercompany loans receivable 130 — 1,643 (1,773 ) — Other non-current assets 194 45 286 — 525 Total assets $ 10,824 $ 2,301 $ 20,276 $ (23,960 ) $ 9,441 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 89 $ 15 $ 107 $ — $ 211 Intercompany payable 4,453 32 1,076 (5,561 ) — Accrued compensation and contributions to retirement plans 125 33 196 — 354 Income taxes currently payable 2 — 71 — 73 Unearned revenue 240 235 1,166 — 1,641 Other current liabilities 180 16 155 — 351 Total current liabilities 5,089 331 2,771 (5,561 ) 2,630 Long-term debt 3,662 — — — 3,662 Lease liabilities – non-current — — — — — Intercompany loans payable 114 — 1,659 (1,773 ) — Pension and other postretirement benefits 162 — 67 — 229 Other non-current liabilities 148 75 393 — 616 Total liabilities 9,175 406 4,890 (7,334 ) 7,137 Redeemable noncontrolling interest — — — 1,620 1,620 Equity: Common stock 294 — 2,279 (2,279 ) 294 Additional paid-in capital 72 618 9,784 (9,641 ) 833 Retained income 12,622 1,277 3,824 (6,439 ) 11,284 Accumulated other comprehensive loss (299 ) — (489 ) 46 (742 ) Less: common stock in treasury (11,040 ) — (13 ) 12 (11,041 ) Total equity - controlling interests 1,649 1,895 15,385 (18,301 ) 628 Total equity - noncontrolling interests — — 1 55 56 Total equity 1,649 1,895 15,386 (18,246 ) 684 Total liabilities and equity $ 10,824 $ 2,301 $ 20,276 $ (23,960 ) $ 9,441 |
Statement of Cash Flows | Statement of Cash Flows Year Ended December 31, 2019 (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 $ 3,323 $ 880 $ 2,705 $ (4,605 ) $ 2,303 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 44 12 26 — 82 Amortization of intangibles — — 122 — 122 Provision for losses on accounts receivable 5 4 9 — 18 Deferred income taxes 24 (10 ) 32 — 46 Stock-based compensation 27 14 37 — 78 Gain on dispositions (49 ) — — — (49 ) Pension settlement charge, net of taxes 85 — — — 85 Other 64 2 27 — 93 Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: Accounts receivable (72 ) (49 ) (14 ) — (135 ) Prepaid and other current assets 17 (35 ) (63 ) — (81 ) Accounts payable and accrued expenses 14 32 27 — 73 Unearned revenue 56 28 172 — 256 Accrued legal settlements — (1 ) — — (1 ) Other current liabilities (61 ) 1 4 — (56 ) Net change in prepaid/accrued income taxes (33 ) (5 ) (3 ) — (41 ) Net change in other assets and liabilities (74 ) 34 23 — (17 ) Cash provided by operating activities 3,370 907 3,104 (4,605 ) 2,776 Investing Activities: Capital expenditures (46 ) (3 ) (66 ) — (115 ) Acquisitions, net of cash acquired — — (91 ) — (91 ) Proceeds from dispositions 85 — — — 85 Changes in short-term investments — — (10 ) — (10 ) Cash provided by (used for) investing activities 39 (3 ) (167 ) — (131 ) Financing Activities: Proceeds from issuance of senior notes, net 1,086 — — — 1,086 Payments on senior notes (868 ) — — — (868 ) Dividends paid to shareholders (560 ) — — — (560 ) Distributions to noncontrolling interest holders, net — — (143 ) — (143 ) Repurchase of treasury shares (1,240 ) — — — (1,240 ) Exercise of stock options 36 — 4 — 40 Employee withholding tax on share-based payments and other (64 ) — (2 ) — (66 ) Intercompany financing activities (1,368 ) (904 ) (2,333 ) 4,605 — Cash used for financing activities (2,978 ) (904 ) (2,474 ) 4,605 (1,751 ) Effect of exchange rate changes on cash 5 — 29 — 34 Net change in cash, cash equivalents, and restricted cash 436 — 492 — 928 Cash, cash equivalents, and restricted cash at beginning of year 694 — 1,264 — 1,958 Cash, cash equivalents, and restricted cash at end of year $ 1,130 $ — $ 1,756 $ — $ 2,886 Statement of Cash Flows Year Ended December 31, 2018 (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 $ 3,540 $ 784 $ 2,956 $ (5,159 ) $ 2,121 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 46 7 31 — 84 Amortization of intangibles — — 122 — 122 Provision for losses on accounts receivable 3 4 14 — 21 Deferred income taxes 33 10 38 — 81 Stock-based compensation 28 16 50 — 94 Accrued legal settlements — 1 — — 1 Other 46 5 1 — 52 Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: Accounts receivable (27 ) 39 (176 ) — (164 ) Prepaid and other current assets (2 ) (4 ) 5 — (1 ) Accounts payable and accrued expenses (11 ) (64 ) (31 ) — (106 ) Unearned revenue (53 ) 13 110 — 70 Accrued legal settlements — — (108 ) — (108 ) Other current liabilities (22 ) (11 ) (34 ) — (67 ) Net change in prepaid/accrued income taxes 2 — (9 ) — (7 ) Net change in other assets and liabilities (128 ) 32 (33 ) — (129 ) Cash provided by operating activities 3,455 832 2,936 (5,159 ) 2,064 Investing Activities: Capital expenditures (81 ) (16 ) (16 ) — (113 ) Acquisitions, net of cash acquired — — (401 ) — (401 ) Proceeds from dispositions — — 6 — 6 Changes in short-term investments — — (5 ) — (5 ) Cash used for investing activities (81 ) (16 ) (416 ) — (513 ) Financing Activities: Proceeds from issuance of senior notes, net 489 — — — 489 Payments on senior notes (403 ) — — — (403 ) Dividends paid to shareholders (503 ) — — — (503 ) Distributions to noncontrolling interest holders, net — — (154 ) — (154 ) Repurchase of treasury shares (1,660 ) — — — (1,660 ) Exercise of stock options 26 — 8 — 34 Purchase of additional CRISIL shares — — (25 ) — (25 ) Employee withholding tax on share-based payments and other (66 ) — — — (66 ) Intercompany financing activities (1,190 ) (816 ) (3,153 ) 5,159 — Cash used for financing activities (3,307 ) (816 ) (3,324 ) 5,159 (2,288 ) Effect of exchange rate changes on cash (5 ) — (79 ) — (84 ) Net change in cash, cash equivalents, and restricted cash 62 — (883 ) — (821 ) Cash, cash equivalents, and restricted cash at beginning of year 632 — 2,147 — 2,779 Cash, cash equivalents, and restricted cash at end of year $ 694 $ — $ 1,264 $ — $ 1,958 Statement of Cash Flows Year Ended December 31, 2017 (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 $ 3,670 $ 649 $ 3,302 $ (5,983 ) $ 1,638 Adjustments to reconcile net income to cash provided by operating activities Depreciation 31 11 40 — 82 Amortization of intangibles — — 98 — 98 Provision for losses on accounts receivable 2 3 11 — 16 Deferred income taxes 108 (10 ) (98 ) — — Stock-based compensation 35 22 42 — 99 Accrued legal settlements — — 55 — 55 Other 34 19 43 — 96 Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: Accounts receivable (2 ) (23 ) (171 ) — (196 ) Prepaid and other current assets (5 ) 3 12 — 10 Accounts payable and accrued expenses 22 97 (44 ) — 75 Unearned revenue 19 2 64 — 85 Accrued legal settlements — (1 ) (3 ) — (4 ) Other current liabilities (42 ) (12 ) (31 ) — (85 ) Net change in prepaid/accrued income taxes 41 (18 ) 9 — 32 Net change in other assets and liabilities 7 (6 ) 14 — 15 Cash provided by operating activities 3,920 736 3,343 (5,983 ) 2,016 Investing Activities: Capital expenditures (55 ) (32 ) (36 ) — (123 ) Acquisitions, net of cash acquired — — (83 ) — (83 ) Proceeds from dispositions — — 2 — 2 Changes in short-term investments — — (5 ) — (5 ) Cash used for investing activities (55 ) (32 ) (122 ) — (209 ) Financing Activities: Dividends paid to shareholders (421 ) — — — (421 ) Distributions to noncontrolling interest holders, net — — (111 ) — (111 ) Repurchase of treasury shares (1,001 ) — — — (1,001 ) Exercise of stock options 68 — 7 — 75 Employee withholding tax on share-based payments (49 ) — — — (49 ) Intercompany financing activities (2,546 ) (704 ) (2,733 ) 5,983 — Cash used for financing activities (3,949 ) (704 ) (2,837 ) 5,983 (1,507 ) Effect of exchange rate changes on cash 5 — 82 — 87 Net change in cash, cash equivalents, and restricted cash (79 ) — 466 — 387 Cash, cash equivalents, and restricted cash at beginning of year 711 — 1,681 — 2,392 Cash, cash equivalents, and restricted cash at end of year $ 632 $ — $ 2,147 $ — $ 2,779 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)unitsSegment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||||||||
Number of reportable segments | Segment | 4 | ||||||||||||
Consideration paid for acquisition, net of cash acquired | $ 91,000,000 | $ 401,000,000 | |||||||||||
Retained earnings (accumulated deficit) | $ 12,205,000,000 | $ 11,284,000,000 | 12,205,000,000 | 11,284,000,000 | |||||||||
Total revenue | (1,735,000,000) | $ (1,689,000,000) | $ (1,704,000,000) | $ (1,571,000,000) | (1,536,000,000) | $ (1,546,000,000) | $ (1,609,000,000) | $ (1,567,000,000) | (6,699,000,000) | (6,258,000,000) | $ (6,063,000,000) | ||
Contract assets | 28,000,000 | 26,000,000 | 28,000,000 | 26,000,000 | |||||||||
Remaining performance obligations | 1,900,000,000 | $ 1,900,000,000 | |||||||||||
Revenue recognized next year (as a percent) | 50.00% | ||||||||||||
Revenue recognized within two years (as a percent) | 75.00% | ||||||||||||
Market value of cash and cash equivalents | 2,866,000,000 | 1,917,000,000 | $ 2,866,000,000 | 1,917,000,000 | |||||||||
Gross deferred technology costs | 212,000,000 | 205,000,000 | 212,000,000 | 205,000,000 | |||||||||
Accumulated amortization of deferred technology costs | 129,000,000 | 105,000,000 | 129,000,000 | 105,000,000 | |||||||||
Fair value of our long-term debt borrowings | 3,900,000,000 | 3,800,000,000 | $ 3,900,000,000 | 3,800,000,000 | |||||||||
Number of reporting units | units | 4 | ||||||||||||
Cost of advertisement | $ 34,000,000 | 33,000,000 | 33,000,000 | ||||||||||
Undistributed accumulated earnings of foreign subsidiary | 3,200,000,000 | 3,200,000,000 | |||||||||||
Undistributed accumulated earnings of foreign subsidiary to be indefinitely reinvested | 776,000,000 | 776,000,000 | |||||||||||
Goodwill impairment | 0 | 0 | 0 | ||||||||||
Indefinite-lived intangible asset impairment | $ 0 | 0 | 0 | ||||||||||
Minimum | Software and Software Development Costs | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment useful life | 3 years | ||||||||||||
Minimum | Building Improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment useful life | 15 years | ||||||||||||
Minimum | Equipment | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment useful life | 2 years | ||||||||||||
Maximum | Software and Software Development Costs | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment useful life | 7 years | ||||||||||||
Maximum | Building Improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment useful life | 40 years | ||||||||||||
Maximum | Equipment | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment useful life | 10 years | ||||||||||||
Kensho Technologies | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Consideration paid for acquisition, net of cash acquired | $ 550,000,000 | ||||||||||||
Restricted cash | 15,000,000 | 32,000,000 | $ 15,000,000 | 32,000,000 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Retained earnings (accumulated deficit) | $ 35,000,000 | ||||||||||||
Unearned revenue recognized | 1,700,000,000 | ||||||||||||
Capitalized contract costs | $ 115,000,000 | $ 101,000,000 | 115,000,000 | 101,000,000 | |||||||||
Non-transaction | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Total revenue | (1,401,000,000) | (1,408,000,000) | (1,363,000,000) | ||||||||||
Intersegment Elimination | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Total revenue | 128,000,000 | 125,000,000 | 110,000,000 | ||||||||||
Intersegment Elimination | Non-transaction | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Total revenue | $ 128,000,000 | $ 125,000,000 | $ 110,000,000 |
Accounting Policies - Component
Accounting Policies - Components of Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Non-Cash Settlement Charge of Unamortized Actuarial Loss, before Tax | $ 113 | ||
Other income, net | 98 | $ (25) | $ (27) |
Accounting Standards Update 2017-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other components of net periodic benefit cost 1 | 79 | (30) | (27) |
Net loss from investments | 19 | 5 | 0 |
Other income, net | $ 98 | $ (25) | $ (27) |
Accounting Policies - Fair Valu
Accounting Policies - Fair Value Assumptions (Details) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Dividend yield (as a percent) | 1.10% |
Volatility (as a percent) | 21.80% |
Volatility (as a percent) | 22.00% |
Weighted-average grant-date fair value per option (USD per share) | $ 112.98 |
Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk-free average interest rate (as a percent) | 2.60% |
Expected life (years) | 5 years 8 months 1 day |
Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk-free average interest rate (as a percent) | 2.70% |
Expected life (years) | 6 years 26 days |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2018 | Jan. 31, 2018 | Aug. 31, 2017 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||||||
Consideration paid for acquisition, net of cash acquired | $ 91 | $ 401 | ||||||
Cash paid for acquisitions, net of cash acquired | $ 83 | |||||||
FiscalNote | ||||||||
Business Acquisition [Line Items] | ||||||||
Cost method investment ownership interest (as a percent) | 5.03% | |||||||
Kensho Technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration paid for acquisition, net of cash acquired | $ 550 | |||||||
Pragmatix Services Private Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership in equity method investment (as a percent) | 100.00% | |||||||
Algomi Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Cost method investment ownership interest (as a percent) | 6.02% | |||||||
CARE Ratings Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Cost method investment ownership interest (as a percent) | 8.90% | |||||||
Series of Individually Immaterial Business Acquisitions | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period of acquired intangible assets (in years) | 3 years | |||||||
Series of Individually Immaterial Business Acquisitions | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period of acquired intangible assets (in years) | 10 years | 10 years |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Liabilities Assumed from Acquisition of Businesses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Fair value of assets acquired | $ 110 | $ 857 | $ 83 |
Cash and stock consideration (net of cash acquired) | 91 | 803 | 83 |
Liabilities assumed | $ 19 | $ 54 | $ 0 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Divestitures Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2019 | Apr. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain (loss) on dispositions | $ 49 | ||
Assets held-for-sale | $ 5 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | RigData | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain (loss) on dispositions | $ 27 | ||
After-tax gain (loss) on disposition | 26 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Standard & Poor's Investment Advisory Services LLC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain (loss) on dispositions | 22 | ||
After-tax gain (loss) on disposition | $ 12 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Components of Income from Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Operating profit | $ 5 | $ 8 | $ 6 |
Pre-tax gain (loss) on dispositions | $ 49 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Other intangible assets | $ 846 | $ 846 | |
Weighted-average life of the intangible assets | 12 years | ||
Amortization of intangibles | $ 122 | 122 | $ 98 |
Intellectual Property | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Carrying value of trade name and licenses | 380 | 380 | |
Tradenames | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Carrying value of trade name and licenses | $ 90 | 90 | |
Maximum | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Weighted-average life of the intangible assets | 21 years | ||
Market Intelligence | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Amortization of intangibles | $ 75 | 73 | 71 |
Market Intelligence | Tradenames | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Carrying value of trade name and licenses | 185 | 185 | |
Indices | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Amortization of intangibles | 6 | 6 | $ 6 |
Indices | Intellectual Property | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Carrying value of trade name and licenses | 132 | 132 | |
Indices | Goldman Sachs Commodity and Broad Market Intellectual Property | |||
Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Carrying value of trade name and licenses | $ 59 | $ 59 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 3,535 | $ 2,989 |
Acquisitions | 50 | 565 |
Dispositions | (15) | |
Reclassifications | 0 | |
Other | 5 | (19) |
Goodwill, ending balance | 3,575 | 3,535 |
Operating Segments | ||
Goodwill [Roll Forward] | ||
Reclassifications | 0 | |
Operating Segments | Ratings | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 113 | 114 |
Acquisitions | 0 | 5 |
Dispositions | 0 | |
Reclassifications | 0 | |
Other | 2 | (6) |
Goodwill, ending balance | 115 | 113 |
Operating Segments | Market Intelligence | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,029 | 1,961 |
Acquisitions | 44 | 62 |
Dispositions | (12) | |
Reclassifications | 3 | |
Other | (2) | 6 |
Goodwill, ending balance | 2,062 | 2,029 |
Operating Segments | Platts | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 516 | 523 |
Acquisitions | 6 | 0 |
Dispositions | (3) | |
Other | 2 | (7) |
Goodwill, ending balance | 521 | 516 |
Operating Segments | Indices | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 379 | 391 |
Acquisitions | 0 | 0 |
Dispositions | 0 | |
Reclassifications | (3) | |
Other | 0 | (12) |
Goodwill, ending balance | 376 | 379 |
Corporate | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 498 | 0 |
Acquisitions | 0 | 498 |
Dispositions | 0 | |
Reclassifications | 0 | |
Other | 3 | 0 |
Goodwill, ending balance | $ 501 | $ 498 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 1,290 | $ 1,167 | |
Acquisitions | 29 | 126 | |
Reclassifications | 0 | ||
Other | (12) | (3) | |
Ending balance | 1,307 | 1,290 | $ 1,167 |
Finite-lived Intangible Assets, Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, beginning balance | 612 | 493 | |
Current year amortization | 122 | 122 | 98 |
Reclassifications | 0 | 0 | |
Other (primarily Fx) | (5) | (3) | |
Accumulated amortization, ending balance | 729 | 612 | 493 |
Net definite-lived intangibles | 578 | 678 | |
Databases and software | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 561 | 554 | |
Acquisitions | 0 | 3 | |
Reclassifications | 78 | ||
Other | (10) | 4 | |
Ending balance | 629 | 561 | 554 |
Finite-lived Intangible Assets, Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, beginning balance | 240 | 187 | |
Current year amortization | 73 | 52 | |
Reclassifications | 22 | 1 | |
Other (primarily Fx) | (4) | 0 | |
Accumulated amortization, ending balance | 331 | 240 | 187 |
Net definite-lived intangibles | 298 | 321 | |
Content | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 139 | 139 | |
Acquisitions | 0 | 0 | |
Reclassifications | 0 | ||
Other | 0 | 0 | |
Ending balance | 139 | 139 | 139 |
Finite-lived Intangible Assets, Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, beginning balance | 115 | 101 | |
Current year amortization | 14 | 14 | |
Reclassifications | 0 | 0 | |
Other (primarily Fx) | 0 | 0 | |
Accumulated amortization, ending balance | 129 | 115 | 101 |
Net definite-lived intangibles | 10 | 24 | |
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 346 | 347 | |
Acquisitions | 0 | 0 | |
Reclassifications | 10 | ||
Other | (1) | (1) | |
Ending balance | 355 | 346 | 347 |
Finite-lived Intangible Assets, Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, beginning balance | 126 | 106 | |
Current year amortization | 23 | 21 | |
Reclassifications | 4 | 0 | |
Other (primarily Fx) | 0 | (1) | |
Accumulated amortization, ending balance | 153 | 126 | 106 |
Net definite-lived intangibles | 202 | 220 | |
Tradenames | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 50 | 50 | |
Acquisitions | 0 | 0 | |
Reclassifications | 5 | ||
Other | (1) | 0 | |
Ending balance | 54 | 50 | 50 |
Finite-lived Intangible Assets, Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, beginning balance | 45 | 42 | |
Current year amortization | 3 | 3 | |
Reclassifications | 1 | 0 | |
Other (primarily Fx) | (1) | 0 | |
Accumulated amortization, ending balance | 48 | 45 | 42 |
Net definite-lived intangibles | 6 | 5 | |
Other intangibles | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 194 | 77 | |
Acquisitions | 29 | 123 | |
Reclassifications | (93) | ||
Other | 0 | (6) | |
Ending balance | 130 | 194 | 77 |
Finite-lived Intangible Assets, Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, beginning balance | 86 | 57 | |
Current year amortization | 9 | 32 | |
Reclassifications | (27) | (1) | |
Other (primarily Fx) | 0 | (2) | |
Accumulated amortization, ending balance | 68 | 86 | $ 57 |
Net definite-lived intangibles | $ 62 | $ 108 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Projected Amortization Expense (Details) $ in Millions | Dec. 31, 2019USD ($) |
Projected amortization expense for intangible assets | |
2020 | $ 117 |
2021 | 86 |
2022 | 78 |
2023 | 73 |
2024 | $ 70 |
Taxes on Income - Narrative (De
Taxes on Income - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) related to the TCJA | $ 149 | |||
Income tax expense (benefit) from repatriation of foreign earnings related to the TCJA | 173 | |||
Income tax expense (benefit) from change in tax rate related to the TCJA | (24) | |||
Undistributed earnings of foreign subsidiaries for income tax purposes | $ 3,200 | |||
Undistributed earnings of foreign subsidiaries reinvested indefinitely | 776 | |||
Net income tax payments | 659 | 558 | $ 709 | |
Operating loss carryforwards | 689 | |||
Total amount of federal, state and local, and foreign unrecognized tax benefits excluding interest and penalties | 124 | 147 | $ 212 | $ 221 |
Net increase (decrease) in tax expense from change in unrecognized tax benefits | 10 | |||
Decrease in unrecognized tax benefits reasonably possible | 10 | |||
Accrued interest and penalties associated with uncertain tax positions | $ 20 | $ 35 |
Taxes on Income - Domestic and
Taxes on Income - Domestic and Foreign Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before taxes domestic and foreign operations | |||
Domestic operations | $ 2,068 | $ 1,857 | $ 1,723 |
Foreign operations | 862 | 824 | 738 |
Income before taxes on income | 2,930 | 2,681 | 2,461 |
Federal: | |||
Current | 303 | 198 | 489 |
Deferred | 13 | 53 | 63 |
Total federal | 316 | 251 | 552 |
Foreign: | |||
Current | 201 | 214 | 194 |
Deferred | 14 | (2) | (3) |
Total foreign | 215 | 212 | 191 |
State and local: | |||
Current | 93 | 84 | 73 |
Deferred | 3 | 13 | 7 |
Total state and local | 96 | 97 | 80 |
Total provision for taxes | $ 627 | $ 560 | $ 823 |
Reconciliation of federal statutory income tax rate | |||
U.S. federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
State and local income taxes (as a percent) | 2.60% | 2.80% | 2.50% |
Foreign operations (as a percent) | (0.30%) | 0.20% | (3.90%) |
Impact of TCJA (as a percent) | 0.00% | (0.30%) | 6.00% |
Stock-based compensation (as a percent) | (1.40%) | (1.20%) | (2.70%) |
S&P Dow Jones Indices LLC joint venture (as a percent) | (1.20%) | (1.20%) | (1.80%) |
Tax credits and incentives (as a percent) | (1.70%) | (1.70%) | (2.10%) |
Other, net (as a percent) | 2.40% | 1.30% | 0.40% |
Effective income tax rate (as a percent) | 21.40% | 20.90% | 33.40% |
Taxes on Income - Temporary Dif
Taxes on Income - Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Legal and regulatory settlements | $ 2 | $ 2 |
Employee compensation | 58 | 57 |
Accrued expenses | 30 | 36 |
Postretirement benefits | 27 | 48 |
Unearned revenue | 28 | 29 |
Allowance for doubtful accounts | 9 | 8 |
Loss carryforwards | 155 | 155 |
Other | 24 | 24 |
Total deferred tax assets | 333 | 359 |
Deferred tax liabilities: | ||
Goodwill and intangible assets | (318) | (295) |
Total deferred tax liabilities | (318) | (295) |
Net deferred income tax asset before valuation allowance | 15 | 64 |
Valuation allowance | (163) | (156) |
Net deferred income tax (liability) asset | (148) | (92) |
Reported as: | ||
Non-current deferred tax assets | 52 | 52 |
Non-current deferred tax liabilities | (200) | (144) |
Net deferred income tax (liability) asset | $ (148) | $ (92) |
Taxes on Income - Unrecognized
Taxes on Income - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Balance at beginning of year | $ 147 | $ 212 | $ 221 |
Additions based on tax positions related to the current year | 21 | 19 | 23 |
Additions for tax positions of prior years | 11 | 2 | 17 |
Reduction for tax positions of prior years | (15) | (21) | (32) |
Reduction for settlements | (33) | (65) | (5) |
Expiration of applicable statutes of limitations | (7) | 0 | (12) |
Balance at end of year | $ 124 | $ 147 | $ 212 |
Debt - Summary (Details)
Debt - Summary (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||||||
Nov. 30, 2019 | Dec. 31, 2019 | Nov. 26, 2019 | Dec. 31, 2018 | May 17, 2018 | Sep. 22, 2016 | Aug. 18, 2015 | May 26, 2015 | |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 3,948 | $ 3,662 | ||||||
Senior Notes | 3.3% Senior Notes, due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 0 | 698 | ||||||
Interest rate (as a percent) | 3.30% | 3.30% | ||||||
Early repayment of debt | $ 700 | |||||||
Senior Notes | 4.0% Senior Notes, due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 694 | 693 | ||||||
Interest rate (as a percent) | 4.00% | 4.00% | ||||||
Unamortized debt discount and issuance costs | $ 6 | |||||||
Senior Notes | 4.4% Senior Notes, due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 893 | 892 | ||||||
Interest rate (as a percent) | 4.40% | 4.40% | ||||||
Unamortized debt discount and issuance costs | $ 7 | |||||||
Senior Notes | 2.95% Senior Notes, due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 493 | 493 | ||||||
Interest rate (as a percent) | 2.95% | 2.95% | ||||||
Unamortized debt discount and issuance costs | $ 7 | |||||||
Senior Notes | 2.5% Senior Notes, due 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 495 | 0 | ||||||
Interest rate (as a percent) | 2.50% | 2.50% | ||||||
Unamortized debt discount and issuance costs | $ 5 | |||||||
Senior Notes | 6.55% Senior Notes, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 294 | 396 | ||||||
Interest rate (as a percent) | 6.55% | |||||||
Early repayment of debt | $ 103 | |||||||
Unamortized debt discount and issuance costs | $ 3 | |||||||
Senior Notes | 4.5% Senior Notes, due 2048 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 490 | 490 | ||||||
Interest rate (as a percent) | 4.50% | 4.50% | ||||||
Unamortized debt discount and issuance costs | $ 10 | |||||||
Senior Notes | 3.25% Senior Notes, due 2049 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 589 | $ 0 | ||||||
Interest rate (as a percent) | 3.25% | 3.25% | ||||||
Unamortized debt discount and issuance costs | $ 11 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Nov. 26, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | May 17, 2018 | Jun. 30, 2017 | Aug. 18, 2015 | |
Debt Instrument [Line Items] | |||||||
Annual long term debt maturity year 2020 | $ 0 | ||||||
Annual long term debt maturity year 2021 | 0 | ||||||
Annual long term debt maturity year 2022 | 0 | ||||||
Annual long term debt maturity year 2023 | 0 | ||||||
Annual long term debt maturity year 2024 | 0 | ||||||
Annual long term debt maturity thereafter | 3,900,000,000 | ||||||
Commercial paper borrowings outstanding | $ 0 | $ 0 | |||||
Indebtedness to cash flow (not greater than) | 4 | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 2,000,000,000 | ||||||
2.5% Senior Notes, due 2029 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 500,000,000 | ||||||
Interest rate (as a percent) | 2.50% | 2.50% | |||||
3.3% Senior Notes, due 2020 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 700,000,000 | $ 700,000,000 | |||||
Interest rate (as a percent) | 3.30% | 3.30% | |||||
3.25% Senior Notes, due 2049 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 600,000,000 | ||||||
Interest rate (as a percent) | 3.25% | 3.25% | |||||
6.55% Senior Notes, due 2037 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 400,000,000 | ||||||
Interest rate (as a percent) | 6.55% | ||||||
4.5% Senior Notes, due 2048 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 500,000,000 | ||||||
Interest rate (as a percent) | 4.50% | 4.50% | |||||
2.5% Senior Notes, due 2018 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 400,000,000 | $ 400,000,000 | |||||
Interest rate (as a percent) | 2.50% | 2.50% | |||||
Five-year Revolving Credit Facility | Revolving Credit Facility Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 1,200,000,000 | ||||||
Term of debt instrument | 5 years | ||||||
Commitment fee ratio | 0.10% | ||||||
Minimum | Five-year Revolving Credit Facility | Revolving Credit Facility Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee ratio | 0.08% | ||||||
Maximum | Five-year Revolving Credit Facility | Revolving Credit Facility Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee ratio | 0.175% |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign exchange forward contracts | Not designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | $ 116 | $ 98 |
Foreign exchange forward contracts | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash flow hedge gain (loss) be be reclassified within 12 months | 2 | |
Foreign exchange forward contracts | Designated as hedging instrument | Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | 249 | 289 |
Cross currency swap | Net Investment Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest income, net | 1 | |
Cross currency swap | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative | 400 | |
Revenue, Selling and general expenses | Foreign exchange forward contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Loss on derivatives not designated as hedging instruments | $ 12 | |
Gain on derivatives not designated as hedging instruments | $ 4 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value Amounts of Cash Flow Hedges (Details) - Designated as hedging instrument - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Foreign exchange forward contracts | Prepaid and other current assets | Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, fair value, net | $ 1 | $ 3 |
Cross currency swap | Other non-current liabilities | Net Investment Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, fair value, net | $ 10 | $ 0 |
Derivative Instruments - Pre-ta
Derivative Instruments - Pre-tax Gains (Losses) on Cash Flow Hedges (Details) - Designated as hedging instrument - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign exchange forward contracts | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Accumulated Other Comprehensive Loss (effective portion) | $ (2) | $ 2 | $ 0 |
Foreign exchange forward contracts | Revenue, Selling and general expenses | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) | 5 | (4) | 9 |
Cross currency swap | Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Accumulated Other Comprehensive Loss (effective portion) | (10) | 0 | 0 |
Cross currency swap | Revenue, Selling and general expenses | Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (effective portion) | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Change
Derivative Instruments - Change in Unrealized Gains (Losses) in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 684 | $ 766 | $ 701 |
Ending Balance | 536 | 684 | 766 |
Cash Flow Hedging | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 4 | 2 | 2 |
Other comprehensive gain (loss) before reclassifications | 3 | (2) | 9 |
Reclassifications from accumulated other comprehensive loss to net earnings | (5) | 4 | (9) |
Ending Balance | 2 | 4 | 2 |
Net Investment Hedging | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
Other comprehensive gain (loss) before reclassifications | (10) | 0 | 0 |
Reclassifications from accumulated other comprehensive loss to net earnings | 0 | 0 | 0 |
Ending Balance | $ (10) | $ 0 | $ 0 |
Employee Benefits - Benefit Obl
Employee Benefits - Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 1,987 | ||
Fair value of plan assets at end of year | 1,960 | $ 1,987 | |
Amounts recognized in consolidated balance sheets: | |||
Non-current liabilities | (259) | (229) | |
Retirement Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Net benefit obligation at beginning of year | 2,076 | 2,329 | |
Service cost | 3 | 3 | $ 3 |
Interest cost | 64 | 71 | 74 |
Plan participants’ contributions | 0 | 0 | |
Actuarial loss (gain) | 232 | (199) | |
Gross benefits paid | (75) | (103) | |
Foreign currency effect | 13 | (26) | |
Other adjustments | (368) | 1 | |
Net benefit obligation at end of year | 1,945 | 2,076 | 2,329 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 1,987 | 2,219 | |
Actual return on plan assets | 354 | (113) | |
Employer contributions | 46 | 9 | |
Plan participants’ contributions | 0 | 0 | |
Gross benefits paid | (75) | (103) | |
Foreign currency effect | 16 | (25) | |
Other adjustments | (368) | 0 | |
Fair value of plan assets at end of year | 1,960 | 1,987 | 2,219 |
Funded status | 15 | (89) | |
Amounts recognized in consolidated balance sheets: | |||
Non-current assets | 259 | 125 | |
Current liabilities | (10) | (9) | |
Non-current liabilities | (234) | (205) | |
Total amounts recognized in consolidated balance sheets | 15 | (89) | |
Accumulated benefit obligation | 1,932 | 2,066 | |
Plans with accumulated benefit obligation in excess of the fair value of plan assets: | |||
Projected benefit obligation | 244 | 214 | |
Accumulated benefit obligation | 231 | 204 | |
Fair value of plan assets | 0 | 0 | |
Amounts recognized in accumulated other comprehensive loss, net of tax: | |||
Net actuarial loss (gain) | 355 | 460 | |
Prior service credit | 2 | 2 | |
Total recognized | 357 | 462 | |
Postretirement Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Net benefit obligation at beginning of year | 40 | 49 | |
Service cost | 0 | 0 | 0 |
Interest cost | 1 | 1 | 2 |
Plan participants’ contributions | 2 | 3 | |
Actuarial loss (gain) | 1 | (4) | |
Gross benefits paid | (6) | (8) | |
Foreign currency effect | 0 | 0 | |
Other adjustments | 0 | (1) | |
Net benefit obligation at end of year | 38 | 40 | 49 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 16 | 20 | |
Actual return on plan assets | 1 | 0 | |
Employer contributions | 0 | 1 | |
Plan participants’ contributions | 3 | 3 | |
Gross benefits paid | (7) | (8) | |
Foreign currency effect | 0 | 0 | |
Other adjustments | 0 | 0 | |
Fair value of plan assets at end of year | 13 | 16 | $ 20 |
Funded status | (25) | (24) | |
Amounts recognized in consolidated balance sheets: | |||
Non-current assets | 0 | 0 | |
Current liabilities | 0 | 0 | |
Non-current liabilities | (25) | (24) | |
Total amounts recognized in consolidated balance sheets | (25) | (24) | |
Amounts recognized in accumulated other comprehensive loss, net of tax: | |||
Net actuarial loss (gain) | (40) | (41) | |
Prior service credit | (13) | (14) | |
Total recognized | $ (53) | $ (55) |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)trustshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total cost for retirement plans | $ 187 | $ 80 | $ 70 |
Settlement charge | 113 | ||
Defined contribution plan cost | 73 | 79 | 70 |
Pension trust assets | $ 1,960 | $ 1,987 | |
Stock purchased by US plan under defined contribution plan (shares) | shares | 165,286 | 193,051 | |
Stock sold by US plan under defined contribution plan (shares) | shares | 333,030 | 205,798 | |
Stock held by the US plan under defined contribution plan (shares) | shares | 1,300,000 | 1,500,000 | |
Market value of stock held by the US plan under defined contribution plan | $ 355 | $ 251 | |
Dividend received by the plan | $ 3 | 3 | |
United States Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of pension trust accounts | trust | 1 | ||
Pension trust assets | $ 1,432 | 1,572 | |
United Kingdom Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of pension trust accounts | trust | 1 | ||
Pension trust assets | $ 528 | 415 | |
Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss) to be recognized in net periodic pension cost | (15) | ||
Other components of net periodic benefit cost | (29) | (30) | (31) |
Settlement charge | (85) | (4) | (7) |
Expected required employer contribution | $ 11 | ||
Number of pension trust accounts | trust | 2 | ||
Pension trust assets | $ 1,960 | 1,987 | 2,219 |
Retirement Plans | United Kingdom Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other components of net periodic benefit cost | (14) | (10) | (6) |
Postretirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss) to be recognized in net periodic pension cost | 2 | ||
Prior service cost to be recognized in net periodic benefit cost | 1 | ||
Other components of net periodic benefit cost | (2) | (2) | (2) |
Settlement charge | 0 | 0 | 0 |
Expected required employer contribution | 5 | ||
Pension trust assets | $ 13 | $ 16 | $ 20 |
Equity Securities, Domestic | United States Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 16.00% | ||
Equity Securities, International | United States Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 9.00% | ||
Debt Securities and Short-Term Investments | United States Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 75.00% | ||
Equity Securities | United Kingdom Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 20.00% | ||
Diversified Growth Funds | United Kingdom Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 30.00% | ||
Fixed Income Funds | United Kingdom Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 40.00% | ||
Real estate funds | United Kingdom Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 10.00% |
Employee Benefits - Net Periodi
Employee Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax | |||
Settlement charge | $ 113 | ||
Total recognized | (102) | $ 5 | $ (41) |
Retirement Plans | |||
Components of net periodic cost for retirement plans and post-retirement plans | |||
Service cost | 3 | 3 | 3 |
Interest cost | 64 | 71 | 74 |
Expected return on assets | (108) | (124) | (126) |
Actuarial loss (gain) | 12 | 20 | 18 |
Prior service credit | 0 | 0 | 0 |
Total net periodic benefit cost | (29) | (30) | (31) |
Settlement charge | 113 | 4 | 8 |
Total net periodic benefit cost | 84 | (26) | (23) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax | |||
Net actuarial (gain) loss | (10) | 28 | (20) |
Recognized actuarial (gain) loss | (10) | (15) | (12) |
Prior service (credit) cost | 0 | 1 | 0 |
Settlement charge | (85) | (4) | (7) |
Total recognized | (105) | 10 | (39) |
Postretirement Plans | |||
Components of net periodic cost for retirement plans and post-retirement plans | |||
Service cost | 0 | 0 | 0 |
Interest cost | 1 | 1 | 2 |
Expected return on assets | 0 | 0 | 0 |
Actuarial loss (gain) | (2) | (2) | (2) |
Prior service credit | (1) | (1) | (2) |
Total net periodic benefit cost | (2) | (2) | (2) |
Settlement charge | 0 | 0 | 0 |
Total net periodic benefit cost | (2) | (2) | (2) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax | |||
Net actuarial (gain) loss | 0 | (7) | (3) |
Recognized actuarial (gain) loss | 1 | 1 | 1 |
Prior service (credit) cost | 1 | 1 | 1 |
Settlement charge | 0 | 0 | 0 |
Total recognized | $ 2 | $ (5) | $ (1) |
Employee Benefits - Assumptions
Employee Benefits - Assumptions (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Net periodic cost | ||||
Weighted-average healthcare cost rate (as a percent) | 6.50% | 6.50% | 7.00% | |
Effects created by one percentage point change in assumed healthcare cost trend | ||||
Effect of 1% point increase on postretirement obligation | $ 0 | |||
Effect of 1% point decrease on postretirement obligation | $ 0 | |||
Retirement Plans | ||||
Benefit obligation | ||||
Discount rate (as a percent) | 3.45% | 4.40% | 3.68% | |
Net periodic cost | ||||
Discount rate (as a percent) | 2.72% | 2.41% | ||
Return on assets (as a percent) | 6.00% | 6.00% | 6.25% | |
Retirement Plans | United States Retirement Plans | ||||
Net periodic cost | ||||
Discount rate (as a percent) | 4.40% | 3.68% | 4.13% | |
Retirement Plans | United States Retirement Plans | Subsequent Event | ||||
Net periodic cost | ||||
Return on assets (as a percent) | 5.50% | |||
Retirement Plans | United Kingdom Retirement Plan | ||||
Net periodic cost | ||||
Discount rate (as a percent) | 2.58% | |||
Postretirement Plans | ||||
Benefit obligation | ||||
Discount rate (as a percent) | 3.08% | 4.15% | 3.40% | |
Net periodic cost | ||||
Weighted-average healthcare cost rate (as a percent) | 5.00% | |||
Discount rate (as a percent) | 4.15% | 3.40% | 3.69% |
Employee Benefits - Cash Flows
Employee Benefits - Cash Flows (Details) $ in Millions | Dec. 31, 2019USD ($) |
Retirement Plans | |
Information about the expected cash flows for retirement and post-retirement plans and impact of the Medicare subsidy | |
2020, Net payments | $ 63 |
2021, Net payments | 66 |
2022, Net payments | 69 |
2023, Net payments | 72 |
2024, Net payments | 75 |
2025-2029, Net payments | 413 |
Postretirement Plans | |
Information about the expected cash flows for retirement and post-retirement plans and impact of the Medicare subsidy | |
2020, Gross payments | 7 |
2021, Gross payments | 6 |
2022, Gross payments | 6 |
2023, Gross payments | 5 |
2024, Gross payments | 5 |
2025-2029, Gross payments | 17 |
2020, Retiree Contributions | (2) |
2021, Retiree Contributions | (2) |
2022, Retiree Contributions | (2) |
2023, Retiree Contributions | (1) |
2024, Retiree Contributions | (1) |
2025-2029, Retiree Contributions | (6) |
2020, Medicare subsidy (less than $1 million) | 0 |
2021, Medicare subsidy (less than $1 million) | 0 |
2022, Medicare subsidy (less than $1 million) | 0 |
2023, Medicare subsidy (less than $1 million) | 0 |
2024, Medicare subsidy (less than $1 million) | 0 |
2025-2029, Medicare subsidy (less than $1 million) | 0 |
2020, Net payments | 5 |
2021, Net payments | 4 |
2022, Net payments | 4 |
2023, Net payments | 4 |
2024, Net payments | 4 |
2025-2029, Net payments | 11 |
Medicare subsidy, expected payments for all years (less than) | $ 1 |
Employee Benefits - Fair Value
Employee Benefits - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | $ 1,960 | $ 1,987 |
Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 1,262 | 1,291 |
Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 82 | 94 |
Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 1,141 | 1,158 |
Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 39 | 39 |
Fair Value Measured at Net Asset Value Per Share | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 698 | 696 |
Cash and short-term investments | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 3 | 4 |
Cash and short-term investments | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 3 | 4 |
Cash and short-term investments | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Cash and short-term investments | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
U.S. indexes | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 23 | 21 |
U.S. indexes | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 23 | 21 |
U.S. indexes | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
U.S. indexes | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
U.S. growth and value | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 56 | 69 |
U.S. growth and value | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 56 | 69 |
U.S. growth and value | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
U.S. growth and value | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
U.K. | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | |
U.K. | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | |
U.K. | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | |
U.K. | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | |
International, excluding U.K. | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | |
International, excluding U.K. | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | |
International, excluding U.K. | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | |
International, excluding U.K. | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | |
Long duration strategy | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 1,078 | 1,070 |
Long duration strategy | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Long duration strategy | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 1,078 | 1,070 |
Long duration strategy | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Intermediate duration securities | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 20 | 35 |
Intermediate duration securities | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Intermediate duration securities | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 20 | 35 |
Intermediate duration securities | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Agency mortgage backed securities | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 3 | 4 |
Agency mortgage backed securities | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Agency mortgage backed securities | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 3 | 4 |
Agency mortgage backed securities | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Asset backed securities | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 14 | 18 |
Asset backed securities | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Asset backed securities | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 14 | 18 |
Asset backed securities | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Non-agency mortgage backed securities | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 11 | 13 |
Non-agency mortgage backed securities | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
Non-agency mortgage backed securities | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 11 | 13 |
Non-agency mortgage backed securities | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
International, excluding U.K. | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 15 | 18 |
International, excluding U.K. | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
International, excluding U.K. | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 15 | 18 |
International, excluding U.K. | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
U.K. | Total | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 39 | 39 |
U.K. | Level 1 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
U.K. | Level 2 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | 0 | 0 |
U.K. | Level 3 | ||
Fair value of defined benefit plans assets by asset class | ||
Fair value of plan assets | $ 39 | $ 39 |
Employee Benefits - Level 3 Rol
Employee Benefits - Level 3 Roll Forward of Fair Value of Plan Assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Fair value of plan assets at beginning of year | $ 1,987 |
Fair value of plan assets at end of year | 1,960 |
Level 3 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Fair value of plan assets at beginning of year | 39 |
Purchases | 0 |
Distributions | 0 |
Gain (loss) | 0 |
Fair value of plan assets at end of year | $ 39 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Director deferred stock ownership plan amount to be credited to deferred stock accounts (as a percent) | 50.00% | ||
Share delivery term if elected | 5 years | ||
Award vesting period | 3 years | ||
Stock options granted (shares) | 0 | 0 | |
Total fair value of stock options, vested | $ 3 | $ 4 | $ 5 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Award expiration period | 10 years | ||
Employee Stock Option | Graded Vesting Method | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Employee Stock Option | Ratable Vest One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award cost recognition period | 12 months | ||
Employee Stock Option | Ratable Vest Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award cost recognition period | 24 months | ||
Employee Stock Option | Ratable Vest Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award cost recognition period | 36 months | ||
Employee Stock Option | Ratable Vest Four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award cost recognition period | 48 months |
Stock-Based Compensation - Comm
Stock-Based Compensation - Common Shares Reserved for Issuance (Details) - shares shares in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Number of common shares reserved for issuance | ||
Shares available for granting under the 2019 plan (in shares) | 20 | 33.3 |
Options outstanding (shares) | 0.7 | 1.7 |
Total shares reserved for issuance (in shares) | 20.7 | 35 |
Director Deferred Stock Ownership Plan | ||
Number of common shares reserved for issuance | ||
Total shares reserved for issuance (in shares) | 1 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense and Stock Option Fair Value Assumptions (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation | |||
Stock option expense | $ 1 | $ 5 | $ 3 |
Restricted stock and unit awards expense | 77 | 89 | 96 |
Total stock-based compensation expense | 78 | 94 | 99 |
Tax benefit | $ 13 | $ 19 | $ 38 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.10% | ||
Weighted-average grant-date fair value per option (USD per share) | $ 112.98 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free average interest rate | 2.60% | ||
Volatility | 21.80% | ||
Expected life (years) | 5 years 8 months 1 day | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free average interest rate | 2.70% | ||
Volatility | 22.00% | ||
Expected life (years) | 6 years 26 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Options, Outstanding, Shares | |
Options, Beginning balance (shares) | shares | 1.7 |
Shares, exercised (shares) | shares | (1) |
Shares, forfeited and expired (shares) | shares | 0 |
Options, Ending balance (shares) | shares | 0.7 |
Shares, options exercisable (shares) | shares | 0.7 |
Weighted average exercise price | |
Weighted-average exercise price, Beginning balance (USD per share) | $ / shares | $ 47.92 |
Weighted-average exercise price, exercised (USD per share) | $ / shares | 163.99 |
Weighted-average exercise price, forfeited and expired (USD per share) | $ / shares | 70.70 |
Weighted-average exercise price, Ending balance (USD per share) | $ / shares | 55.73 |
Weighted-average exercise price, options exercisable (USD per share) | $ / shares | $ 55.12 |
Weighted-average remaining years of contractual term, Options outstanding | 3 years 1 month 6 days |
Weighted-average remaining years of contractual term, Options exercisable | 3 years |
Aggregate intrinsic value, options outstanding | $ | $ 155 |
Aggregate intrinsic value, options exercisable | $ | $ 151 |
Non Vested Options | |
Nonvested Options Outstanding | |
Options, Beginning balance (shares) | shares | 0.1 |
Shares, vested (shares) | shares | 0 |
Shares, forfeited (shares) | shares | (0.1) |
Options, Ending balance (shares) | shares | 0 |
Weighted-average grant-date fair value | |
Weighted-average grant-date fair value, Beginning balance (USD per share) | $ / shares | $ 113.02 |
Weighted-average grant-date fair value, vested (USD per share) | $ / shares | 113.42 |
Weighted-average exercise price, forfeited (USD per share) | $ / shares | 113.17 |
Weighted-average grant-date fair value, Beginning balance (USD per share) | $ / shares | $ 112.68 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Total unrecognized compensation expense related to nonvested options | $ | $ 0.3 |
Weighted-average years to be recognized over | 21 days |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Option Exercises (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Net cash proceeds from the exercise of stock options | $ 40 | $ 34 | $ 75 |
Total intrinsic value of stock option exercises | 110 | 77 | 118 |
Income tax benefit realized from stock option exercises | $ 33 | $ 27 | $ 64 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Unit Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Tax benefit relating to restricted stock activity | $ 13 | $ 19 | $ 38 |
Restricted Stock Activity | |||
Restricted stock and unit activity | |||
Nonvested shares, Beginning Balance (in shares) | 0.8 | ||
Shares, Granted (in shares) | 0.5 | ||
Shares, Vested (in shares) | (0.6) | ||
Shares, Forfeited (in shares) | (0.1) | ||
Nonvested shares, Ending Balance (in shares) | 0.6 | 0.8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted-average grant-date fair value, Beginning balance (in dollars per share) | $ 172.24 | ||
Weighted-average grant-date fair value, Granted (in dollars per share) | 187.40 | $ 182.75 | $ 147.12 |
Weighted-average grant-date fair value, Vested (in dollars per share) | 144.18 | ||
Weighted-average grant-date fair value, Forfeited (in dollars per share) | 179.76 | ||
Weighted-average grant-date fair value, Ending balance (in dollars per share) | $ 199.93 | $ 172.24 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Total unrecognized compensation expense related to nonvested options | $ 72 | ||
Weighted-average years to be recognized over | 1 year 9 months 18 days | ||
Total fair value of restricted stock and unit awards vested | $ 153 | $ 154 | $ 147 |
Tax benefit relating to restricted stock activity | $ 29 | $ 32 | $ 36 |
Equity - Capital Stock (Details
Equity - Capital Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 29, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||
Preferred stock authorized (shares) | 2,000,000,000,000 | |||
Par value of preferred stock (USD per share) | $ 1 | |||
Preferred stock issued (shares) | 0 | |||
Dividend history | ||||
Quarterly dividend rate (USD per share) | $ 0.57 | $ 0.50 | $ 0.41 | |
Annualized dividend rate (USD per share) | $ 2.28 | $ 2 | $ 1.64 | |
Dividends paid | $ 560 | $ 503 | $ 421 | |
Subsequent Event | ||||
Dividend history | ||||
Quarterly dividend rate (USD per share) | $ 0.67 |
Equity - Stock Repurchases (Det
Equity - Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 04, 2013 | |
Share repurchases | |||||
Total cash utilized | $ 1,240 | $ 1,660 | $ 1,001 | ||
Stock repurchased during period (shares) | 400,000 | 5,900,000 | 8,400,000 | 6,800,000 | |
2013 Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program number of shares authorized to be repurchased (shares) | 50,000,000 | ||||
Maximum number of shares authorized for repurchase under stock repurchase plan as percentage of outstanding common stock (as a percent) | 18.00% | ||||
Remaining shares available under repurchase program (shares) | 4,700,000 | ||||
Stock Repurchases | |||||
Share repurchases | |||||
Total number of shares purchased (shares) | 1,200,000 | 900,000 | 3,500,000 | ||
Average price paid per share (USD per share) | $ 208.83 | $ 182.93 | $ 141.60 | ||
Total cash utilized | $ 240 | $ 160 | $ 501 |
Equity - Accelerated Share Repu
Equity - Accelerated Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 2 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | ||
Jan. 02, 2019 | Oct. 31, 2017 | Jul. 31, 2019 | Sep. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accelerated Share Repurchases [Line Items] | |||||||
Total cash utilized | $ 1,240 | $ 1,660 | $ 1,001 | ||||
Accelerated Share Repurchases, August 2019 | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Average price paid per share (USD per share) | $ 253.36 | ||||||
Total cash utilized | $ 500 | ||||||
Accelerated Share Repurchases, August 2019 | Initial Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 1.8 | ||||||
Accelerated Share Repurchases, August 2019 | Additional Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 0.1 | ||||||
Accelerated Share Repurchases, August 2019 | Completed Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 2 | ||||||
Accelerated Share Repurchases, February 2019 | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Average price paid per share (USD per share) | $ 214.65 | ||||||
Total cash utilized | $ 500 | ||||||
Authorized amount repurchased (as a percent) | 85.00% | ||||||
Accelerated Share Repurchases, February 2019 | Initial Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 2.2 | ||||||
Accelerated Share Repurchases, February 2019 | Additional Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 0.1 | ||||||
Accelerated Share Repurchases, February 2019 | Completed Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 2.3 | ||||||
Accelerated Share Repurchases, October 2018 | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Average price paid per share (USD per share) | $ 173.80 | ||||||
Total cash utilized | $ 500 | ||||||
Authorized amount repurchased (as a percent) | 85.00% | ||||||
Accelerated Share Repurchases, October 2018 | Initial Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 2.5 | ||||||
Accelerated Share Repurchases, October 2018 | Additional Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 0.4 | ||||||
Accelerated Share Repurchases, October 2018 | Completed Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 2.9 | ||||||
Accelerated Share Repurchases, March 2018 | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Average price paid per share (USD per share) | $ 197.49 | ||||||
Total cash utilized | $ 1,000 | ||||||
Authorized amount repurchased (as a percent) | 85.00% | ||||||
Accelerated Share Repurchases, March 2018 | Initial Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 4.5 | ||||||
Accelerated Share Repurchases, March 2018 | Additional Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 0.6 | ||||||
Accelerated Share Repurchases, March 2018 | Completed Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 5.1 | ||||||
Accelerated Share Repurchases, August 2017 | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Average price paid per share (USD per share) | $ 154.46 | ||||||
Total cash utilized | $ 500 | ||||||
Authorized amount repurchased (as a percent) | 85.00% | ||||||
Accelerated Share Repurchases, August 2017 | Initial Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 2.8 | ||||||
Accelerated Share Repurchases, August 2017 | Additional Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 0.5 | ||||||
Accelerated Share Repurchases, August 2017 | Completed Award | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Total number of shares purchased (shares) | 3.2 |
Equity - Redeemable Noncontroll
Equity - Redeemable Noncontrolling Interests (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Noncontrolling Interest [Line Items] | |
Interest in joint venture minimum (as a percent) | 20.00% |
Change in control period | 15 days |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance as of December 31, 2018 | $ 1,620 |
Net income attributable to noncontrolling interest | 170 |
Capital contribution from noncontrolling interest | 36 |
Distributions to noncontrolling interest | (166) |
Redemption value adjustment | 608 |
Balance as of December 31, 2019 | $ 2,268 |
CME Group | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership by noncontrolling owners (as a percent) | 27.00% |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 684 | $ 766 | $ 701 |
Ending Balance | 536 | 684 | 766 |
Pension and other postretirement benefit plans, tax | 39 | (9) | 11 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | |||
Beginning Balance | (742) | (649) | (773) |
Other comprehensive gain (loss) before reclassifications | 30 | ||
Reclassifications from accumulated other comprehensive loss to net earnings | 88 | ||
Net other comprehensive gain (loss) income | 118 | ||
Ending Balance | (624) | (742) | $ (649) |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | |||
Beginning Balance | (339) | ||
Other comprehensive gain (loss) before reclassifications | 18 | ||
Reclassifications from accumulated other comprehensive loss to net earnings | 0 | ||
Net other comprehensive gain (loss) income | 18 | ||
Ending Balance | (321) | (339) | |
Pension and Postretirement Benefit Plans | |||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | |||
Beginning Balance | (407) | ||
Other comprehensive gain (loss) before reclassifications | 9 | ||
Reclassifications from accumulated other comprehensive loss to net earnings | 93 | ||
Net other comprehensive gain (loss) income | 102 | ||
Ending Balance | (305) | (407) | |
Pension and other postretirement benefit plans, tax | (39) | ||
Unrealized Gain (Loss) on Forward Exchange Contracts | |||
Accumulated Other Comprehensive Income, Net of Tax [Roll Forward] | |||
Beginning Balance | 4 | ||
Other comprehensive gain (loss) before reclassifications | 3 | ||
Reclassifications from accumulated other comprehensive loss to net earnings | (5) | ||
Net other comprehensive gain (loss) income | (2) | ||
Ending Balance | $ 2 | $ 4 |
Earnings per Share - Summary (D
Earnings per Share - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount attributable to S&P Global Inc. common shareholders: | |||||||||||
Net income | $ 541 | $ 617 | $ 555 | $ 410 | $ 512 | $ 495 | $ 461 | $ 491 | $ 2,123 | $ 1,958 | $ 1,496 |
Basic weighted-average number of common shares outstanding (shares) | 245,400,000 | 250,900,000 | 256,300,000 | ||||||||
Effect of stock options and other dilutive securities (shares) | 1,500,000 | 2,300,000 | 2,600,000 | ||||||||
Diluted weighted-average number of common shares outstanding (shares) | 246,900,000 | 253,200,000 | 258,900,000 | ||||||||
Net income: | |||||||||||
Basic (USD per share) | $ 2.22 | $ 2.52 | $ 2.25 | $ 1.66 | $ 2.06 | $ 1.97 | $ 1.83 | $ 1.94 | $ 8.65 | $ 7.80 | $ 5.84 |
Diluted (USD per share) | $ 2.20 | $ 2.50 | $ 2.24 | $ 1.65 | $ 2.03 | $ 1.95 | $ 1.82 | $ 1.93 | $ 8.60 | $ 7.73 | $ 5.78 |
Employee Stock Option | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Outstanding shares not included in the computation of diluted earnings per share for both restricted stock and stock options (shares) | 0 | 0 | 0 | ||||||||
Restricted Stock | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Outstanding shares not included in the computation of diluted earnings per share for both restricted stock and stock options (shares) | 400,000 | 500,000 | 600,000 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)Positions | Dec. 31, 2018USD ($)Positions | Dec. 31, 2017USD ($) |
Restructuring Plan, 2019 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Workforce reduction, positions | Positions | 300 | |||
Restructuring charges paid | $ 7 | |||
Restructuring Plan, 2018 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Workforce reduction, positions | Positions | 160 | |||
Restructuring reserves | $ 3 | $ 3 | ||
Restructuring charges paid | $ 25 | 22 | $ 1 | |
Restructuring Plan, 2017 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserves | $ 6 | |||
Restructuring charges paid | $ 44 |
Restructuring - Summary (Detail
Restructuring - Summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Plan, 2019 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | $ 25 | ||
Ending Reserve Balance | 18 | ||
Restructuring Plan, 2018 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | $ 25 | ||
Ending Reserve Balance | 2 | ||
Ratings | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 11 | 8 | $ 25 |
Market Intelligence | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 6 | 7 | |
Platts | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 1 | 2 | |
Operating segments | Ratings | Restructuring Plan, 2019 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 11 | ||
Ending Reserve Balance | 7 | ||
Operating segments | Ratings | Restructuring Plan, 2018 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 8 | ||
Ending Reserve Balance | 0 | ||
Operating segments | Market Intelligence | Restructuring Plan, 2019 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 6 | ||
Ending Reserve Balance | 5 | ||
Operating segments | Market Intelligence | Restructuring Plan, 2018 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 7 | ||
Ending Reserve Balance | 1 | ||
Operating segments | Platts | Restructuring Plan, 2019 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 1 | ||
Ending Reserve Balance | 0 | ||
Operating segments | Platts | Restructuring Plan, 2018 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 0 | ||
Ending Reserve Balance | 0 | ||
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 7 | 10 | $ 10 |
Corporate | Restructuring Plan, 2019 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | 7 | ||
Ending Reserve Balance | 6 | ||
Corporate | Restructuring Plan, 2018 | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Charge Recorded | $ 10 | ||
Ending Reserve Balance | $ 1 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Maximum percentage of consolidated revenue represented by foreign countries (more than) | 8.00% |
Maximum percentage of consolidated revenue represented by single customer (more than) | 10.00% |
Segment and Geographic Inform_4
Segment and Geographic Information - Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment information | |||||||||||
Revenue | $ 1,735 | $ 1,689 | $ 1,704 | $ 1,571 | $ 1,536 | $ 1,546 | $ 1,609 | $ 1,567 | $ 6,699 | $ 6,258 | $ 6,063 |
Operating Profit | 818 | $ 891 | $ 813 | $ 705 | 704 | $ 704 | $ 672 | $ 711 | 3,226 | 2,790 | 2,583 |
Amortization of intangibles | 122 | 122 | 98 | ||||||||
Pre-tax gain (loss) on dispositions | 49 | ||||||||||
Depreciation & Amortization | 204 | 206 | 180 | ||||||||
Capital Expenditures | 115 | 113 | 123 | ||||||||
Total Assets | 11,348 | 9,441 | 11,348 | 9,441 | |||||||
Assets held for sale | 9 | 14 | 9 | 14 | |||||||
Operating segments | |||||||||||
Segment information | |||||||||||
Operating Profit | 3,438 | 3,021 | 2,778 | ||||||||
Depreciation & Amortization | 162 | 167 | 171 | ||||||||
Capital Expenditures | 103 | 84 | 100 | ||||||||
Total Assets | 7,199 | 6,516 | 7,199 | 6,516 | |||||||
Corporate | |||||||||||
Segment information | |||||||||||
Revenue | 0 | 15 | 0 | ||||||||
Operating Profit | (212) | (231) | (195) | ||||||||
Employee severance charges | 7 | 10 | 10 | ||||||||
Amortization of intangibles | 28 | 23 | |||||||||
Non-cash acquisition and disposition-related costs/adjustments | 21 | 31 | |||||||||
Lease exit costs | 19 | ||||||||||
Lease impairments | 11 | 11 | |||||||||
Depreciation & Amortization | 42 | 39 | 9 | ||||||||
Capital Expenditures | 12 | 29 | 23 | ||||||||
Total Assets | 4,140 | 2,911 | 4,140 | 2,911 | |||||||
Intersegment Elimination | |||||||||||
Segment information | |||||||||||
Revenue | (128) | (125) | (110) | ||||||||
Ratings | |||||||||||
Segment information | |||||||||||
Employee severance charges | 11 | 8 | 25 | ||||||||
Legal settlement expenses | 74 | 55 | |||||||||
Amortization of intangibles | 2 | 2 | 4 | ||||||||
Ratings | Operating segments | |||||||||||
Segment information | |||||||||||
Revenue | 3,106 | 2,883 | 2,988 | ||||||||
Operating Profit | 1,763 | 1,530 | 1,517 | ||||||||
Depreciation & Amortization | 34 | 32 | 34 | ||||||||
Capital Expenditures | 41 | 42 | 45 | ||||||||
Total Assets | 963 | 680 | 963 | 680 | |||||||
Market Intelligence | |||||||||||
Segment information | |||||||||||
Employee severance charges | 6 | 7 | |||||||||
Amortization of intangibles | 75 | 73 | 71 | ||||||||
Pre-tax gain (loss) on dispositions | 22 | ||||||||||
Business disposition and employee severance charges | 7 | ||||||||||
Acquisition-related costs | 4 | ||||||||||
Non-cash acquisition and disposition-related costs/adjustments | 4 | ||||||||||
Market Intelligence | Operating segments | |||||||||||
Segment information | |||||||||||
Revenue | 1,959 | 1,833 | 1,683 | ||||||||
Operating Profit | 607 | 545 | 457 | ||||||||
Depreciation & Amortization | 99 | 99 | 104 | ||||||||
Capital Expenditures | 44 | 30 | 37 | ||||||||
Total Assets | 3,806 | 3,606 | 3,806 | 3,606 | |||||||
Platts | |||||||||||
Segment information | |||||||||||
Employee severance charges | 1 | 2 | |||||||||
Amortization of intangibles | 12 | 18 | 18 | ||||||||
Pre-tax gain (loss) on dispositions | 27 | ||||||||||
Non-cash acquisition and disposition-related costs/adjustments | 11 | ||||||||||
Lease exit costs | 6 | ||||||||||
Asset write-off | 2 | ||||||||||
Platts | Operating segments | |||||||||||
Segment information | |||||||||||
Revenue | 844 | 815 | 774 | ||||||||
Operating Profit | 438 | 383 | 326 | ||||||||
Depreciation & Amortization | 21 | 27 | 25 | ||||||||
Capital Expenditures | 13 | 9 | 15 | ||||||||
Total Assets | 938 | 787 | 938 | 787 | |||||||
Indices | |||||||||||
Segment information | |||||||||||
Amortization of intangibles | 6 | 6 | 6 | ||||||||
Indices | Operating segments | |||||||||||
Segment information | |||||||||||
Revenue | 918 | 837 | 728 | ||||||||
Operating Profit | 630 | 563 | 478 | ||||||||
Depreciation & Amortization | 8 | 9 | 8 | ||||||||
Capital Expenditures | 5 | 3 | $ 3 | ||||||||
Total Assets | $ 1,492 | $ 1,443 | $ 1,492 | $ 1,443 |
Segment and Geographic Inform_5
Segment and Geographic Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Reclassification from transaction revenue to non-transaction revenue | $ 27 | $ 25 | |||||||||
Total revenue | $ 1,735 | $ 1,689 | $ 1,704 | $ 1,571 | $ 1,536 | $ 1,546 | $ 1,609 | $ 1,567 | $ 6,699 | 6,258 | 6,063 |
Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 15 | 0 | ||||||||
Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | (128) | (125) | (110) | ||||||||
Ratings | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 3,106 | 2,883 | 2,988 | ||||||||
Market Intelligence | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,959 | 1,833 | 1,683 | ||||||||
Platts | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 844 | 815 | 774 | ||||||||
Indices | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 918 | 837 | 728 | ||||||||
Subscription | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 2,843 | 2,682 | 2,454 | ||||||||
Subscription | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 15 | 0 | ||||||||
Subscription | Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Subscription | Ratings | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Subscription | Market Intelligence | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,904 | 1,773 | 1,614 | ||||||||
Subscription | Platts | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 774 | 750 | 704 | ||||||||
Subscription | Indices | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 165 | 144 | 136 | ||||||||
Non-subscription / Transaction | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,632 | 1,401 | 1,574 | ||||||||
Non-subscription / Transaction | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Non-subscription / Transaction | Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Non-subscription / Transaction | Ratings | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,577 | 1,350 | 1,515 | ||||||||
Non-subscription / Transaction | Market Intelligence | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 45 | 40 | 46 | ||||||||
Non-subscription / Transaction | Platts | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 10 | 11 | 13 | ||||||||
Non-subscription / Transaction | Indices | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Non-transaction | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,401 | 1,408 | 1,363 | ||||||||
Non-transaction | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Non-transaction | Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | (128) | (125) | (110) | ||||||||
Non-transaction | Ratings | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,529 | 1,533 | 1,473 | ||||||||
Non-transaction | Market Intelligence | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Non-transaction | Platts | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Non-transaction | Indices | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Asset-linked fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 623 | 542 | 484 | ||||||||
Asset-linked fees | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Asset-linked fees | Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Asset-linked fees | Ratings | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Asset-linked fees | Market Intelligence | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 10 | 20 | 23 | ||||||||
Asset-linked fees | Platts | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Asset-linked fees | Indices | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 613 | 522 | 461 | ||||||||
Sales usage-based royalties | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 200 | 225 | 188 | ||||||||
Sales usage-based royalties | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Sales usage-based royalties | Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Sales usage-based royalties | Ratings | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Sales usage-based royalties | Market Intelligence | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Sales usage-based royalties | Platts | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 60 | 54 | 57 | ||||||||
Sales usage-based royalties | Indices | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 140 | 171 | 131 | ||||||||
Services transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,632 | 1,401 | 1,574 | ||||||||
Services transferred at a point in time | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Services transferred at a point in time | Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Services transferred at a point in time | Ratings | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,577 | 1,350 | 1,515 | ||||||||
Services transferred at a point in time | Market Intelligence | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 45 | 40 | 46 | ||||||||
Services transferred at a point in time | Platts | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 10 | 11 | 13 | ||||||||
Services transferred at a point in time | Indices | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Services transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 5,067 | 4,857 | 4,489 | ||||||||
Services transferred over time | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 15 | 0 | ||||||||
Services transferred over time | Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | (128) | (125) | (110) | ||||||||
Services transferred over time | Ratings | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,529 | 1,533 | 1,473 | ||||||||
Services transferred over time | Market Intelligence | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,914 | 1,793 | 1,637 | ||||||||
Services transferred over time | Platts | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 834 | 804 | 761 | ||||||||
Services transferred over time | Indices | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 918 | $ 837 | $ 728 |
Segment and Geographic Inform_6
Segment and Geographic Information - Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 1,735 | $ 1,689 | $ 1,704 | $ 1,571 | $ 1,536 | $ 1,546 | $ 1,609 | $ 1,567 | $ 6,699 | $ 6,258 | $ 6,063 |
Long-lived Assets | 5,406 | 5,429 | 5,406 | 5,429 | |||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 3,949 | 3,750 | 3,658 | ||||||||
Long-lived Assets | 4,946 | 5,019 | 4,946 | 5,019 | |||||||
European region | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 1,681 | 1,543 | 1,473 | ||||||||
Long-lived Assets | 323 | 317 | 323 | 317 | |||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 715 | 647 | 594 | ||||||||
Long-lived Assets | 93 | 51 | 93 | 51 | |||||||
Rest of the world | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 354 | 318 | $ 338 | ||||||||
Long-lived Assets | $ 44 | $ 42 | $ 44 | $ 42 | |||||||
Geographic Concentration Risk | Revenue | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 100.00% | 100.00% | 100.00% | ||||||||
Geographic Concentration Risk | Revenue | U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 59.00% | 60.00% | 60.00% | ||||||||
Geographic Concentration Risk | Revenue | European region | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 25.00% | 25.00% | 24.00% | ||||||||
Geographic Concentration Risk | Revenue | Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 11.00% | 10.00% | 10.00% | ||||||||
Geographic Concentration Risk | Revenue | Rest of the world | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 5.00% | 5.00% | 6.00% | ||||||||
Geographic Concentration Risk | Long-lived Assets | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 100.00% | 100.00% | |||||||||
Geographic Concentration Risk | Long-lived Assets | U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 91.00% | 92.00% | |||||||||
Geographic Concentration Risk | Long-lived Assets | European region | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 6.00% | 6.00% | |||||||||
Geographic Concentration Risk | Long-lived Assets | Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 2.00% | 1.00% | |||||||||
Geographic Concentration Risk | Long-lived Assets | Rest of the world | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk (as a percent) | 1.00% | 1.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||||
Period of lease extension options | 12 years | ||||
Period of options to terminate lease | 1 year | ||||
Affiliated Entity | |||||
Loss Contingencies [Line Items] | |||||
Contribution to noncontrolling interest | $ 20 | ||||
CME Group | S&P/DJ Indices | |||||
Loss Contingencies [Line Items] | |||||
Revenues earned under license agreement | $ 114 | $ 121 | $ 74 | ||
CME Group | |||||
Loss Contingencies [Line Items] | |||||
Noncontrolling interest ownership by noncontrolling owners (as a percent) | 27.00% | ||||
CME Group | S&P/DJ Indices | |||||
Loss Contingencies [Line Items] | |||||
Noncontrolling interest ownership by noncontrolling owners (as a percent) | 27.00% | ||||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Remaining lease terms | 1 year | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Remaining lease terms | 14 years |
Commitments and Contingencies_2
Commitments and Contingencies - Location and Amounts of Leases (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Right of use assets | $ 676 | $ 0 |
Liabilities | ||
Other current liabilities | 112 | |
Lease liabilities – non-current | $ 620 | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 157 |
Sublease income | (18) |
Total lease cost | $ 139 |
Commitments and Contingencies_4
Commitments and Contingencies - Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement for operating lease liabilities [Abstract] | |
Operating cash flows from operating leases | $ 146 |
Right-of-Use Assets Obtained in Exchange for Lease Obligations | |
Operating leases | $ 777 |
Commitments and Contingencies_5
Commitments and Contingencies - Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted-average remaining lease term (years) | 8 years 11 months 12 days |
Weighted-average discount rate (as a percent) | 3.93% |
Commitments and Contingencies_6
Commitments and Contingencies - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 133 |
2021 | 113 |
2022 | 98 |
2023 | 82 |
2024 | 65 |
2025 and beyond | 358 |
Total undiscounted lease payments | 849 |
Less: Imputed interest | 117 |
Present value of lease liabilities | $ 732 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 1,735 | $ 1,689 | $ 1,704 | $ 1,571 | $ 1,536 | $ 1,546 | $ 1,609 | $ 1,567 | $ 6,699 | $ 6,258 | $ 6,063 |
Operating profit | 818 | 891 | 813 | 705 | 704 | 704 | 672 | 711 | 3,226 | 2,790 | 2,583 |
Net income | 585 | 662 | 602 | 453 | 551 | 535 | 501 | 534 | 2,303 | 2,121 | 1,638 |
Net income attributable to S&P Global common shareholders | $ 541 | $ 617 | $ 555 | $ 410 | $ 512 | $ 495 | $ 461 | $ 491 | $ 2,123 | $ 1,958 | $ 1,496 |
Net income: | |||||||||||
Basic (USD per share) | $ 2.22 | $ 2.52 | $ 2.25 | $ 1.66 | $ 2.06 | $ 1.97 | $ 1.83 | $ 1.94 | $ 8.65 | $ 7.80 | $ 5.84 |
Diluted (USD per share) | $ 2.20 | $ 2.50 | $ 2.24 | $ 1.65 | $ 2.03 | $ 1.95 | $ 1.82 | $ 1.93 | $ 8.60 | $ 7.73 | $ 5.78 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements - Narrative (Details) - USD ($) | Dec. 31, 2019 | Nov. 26, 2019 | Jun. 30, 2018 | May 17, 2018 | Sep. 22, 2016 | Aug. 18, 2015 | May 26, 2015 |
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 2,000,000,000 | ||||||
Senior Notes | 2.5% Senior Notes, due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 500,000,000 | ||||||
Interest rate (as a percent) | 2.50% | 2.50% | |||||
Senior Notes | 3.25% Senior Notes, due 2049 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 600,000,000 | ||||||
Interest rate (as a percent) | 3.25% | 3.25% | |||||
Senior Notes | 3.3% Senior Notes, due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 700,000,000 | $ 700,000,000 | |||||
Interest rate (as a percent) | 3.30% | 3.30% | |||||
Senior Notes | 6.55% Senior Notes, due 2037 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 400,000,000 | ||||||
Interest rate (as a percent) | 6.55% | ||||||
Senior Notes | 4.5% Senior Notes, due 2048 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 500,000,000 | ||||||
Interest rate (as a percent) | 4.50% | 4.50% | |||||
Senior Notes | 2.95% Senior Notes, due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 500,000,000 | ||||||
Interest rate (as a percent) | 2.95% | 2.95% | |||||
Senior Notes | 4.0% Senior Notes, due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 700,000,000 | ||||||
Interest rate (as a percent) | 4.00% | 4.00% | |||||
Senior Notes | 2.5% Senior Notes, due 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 400,000,000 | $ 400,000,000 | |||||
Interest rate (as a percent) | 2.50% | 2.50% | |||||
Senior Notes | 4.4% Senior Notes, due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 900,000,000 | ||||||
Interest rate (as a percent) | 4.40% | 4.40% | |||||
S&P Financial Services LLC | |||||||
Debt Instrument [Line Items] | |||||||
Ownership interest of subsidiary (as a percent) | 100.00% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements - Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | $ 1,735 | $ 1,689 | $ 1,704 | $ 1,571 | $ 1,536 | $ 1,546 | $ 1,609 | $ 1,567 | $ 6,699 | $ 6,258 | $ 6,063 |
Expenses: | |||||||||||
Operating-related expenses | 1,801 | 1,698 | 1,694 | ||||||||
Selling and general expenses | 1,517 | 1,564 | 1,606 | ||||||||
Depreciation | 82 | 84 | 82 | ||||||||
Amortization of intangibles | 122 | 122 | 98 | ||||||||
Total expenses | 3,522 | 3,468 | 3,480 | ||||||||
Gain on dispositions | (49) | 0 | 0 | ||||||||
Operating profit | 818 | 891 | 813 | 705 | 704 | 704 | 672 | 711 | 3,226 | 2,790 | 2,583 |
Other expense (income), net | 98 | (25) | (27) | ||||||||
Interest expense (income), net | 198 | 134 | 149 | ||||||||
Non-operating intercompany transactions | 0 | 0 | 0 | ||||||||
Income before taxes on income | 2,930 | 2,681 | 2,461 | ||||||||
(Benefit) Provision for taxes on income | 627 | 560 | 823 | ||||||||
Equity in net income of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 585 | 662 | 602 | 453 | 551 | 535 | 501 | 534 | 2,303 | 2,121 | 1,638 |
Less: net income attributable to noncontrolling interests | (180) | (163) | (142) | ||||||||
Net income attributable to S&P Global Inc. | $ 541 | $ 617 | $ 555 | $ 410 | $ 512 | $ 495 | $ 461 | $ 491 | 2,123 | 1,958 | 1,496 |
Comprehensive income | 2,421 | 2,018 | 1,762 | ||||||||
Eliminations | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | (157) | (153) | (138) | ||||||||
Expenses: | |||||||||||
Operating-related expenses | (157) | (153) | (138) | ||||||||
Selling and general expenses | 0 | 0 | 0 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Total expenses | (157) | (153) | (138) | ||||||||
Gain on dispositions | 0 | ||||||||||
Operating profit | 0 | 0 | 0 | ||||||||
Other expense (income), net | 0 | 0 | 0 | ||||||||
Interest expense (income), net | 0 | 0 | 0 | ||||||||
Non-operating intercompany transactions | 1,200 | 1,584 | 2,175 | ||||||||
Income before taxes on income | (1,200) | (1,584) | (2,175) | ||||||||
(Benefit) Provision for taxes on income | 0 | 0 | 0 | ||||||||
Equity in net income of subsidiaries | (3,405) | (3,575) | (3,808) | ||||||||
Net income | (4,605) | (5,159) | (5,983) | ||||||||
Less: net income attributable to noncontrolling interests | (180) | (163) | (142) | ||||||||
Net income attributable to S&P Global Inc. | (4,785) | (5,322) | (6,125) | ||||||||
Comprehensive income | (4,602) | (5,159) | (5,982) | ||||||||
S&P Global Inc. | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | 812 | 776 | 717 | ||||||||
Expenses: | |||||||||||
Operating-related expenses | 158 | 124 | 89 | ||||||||
Selling and general expenses | 133 | 177 | 197 | ||||||||
Depreciation | 44 | 46 | 31 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Total expenses | 335 | 347 | 317 | ||||||||
Gain on dispositions | (49) | ||||||||||
Operating profit | 526 | 429 | 400 | ||||||||
Other expense (income), net | 91 | (27) | (16) | ||||||||
Interest expense (income), net | 213 | 143 | 163 | ||||||||
Non-operating intercompany transactions | 378 | 363 | 365 | ||||||||
Income before taxes on income | (156) | (50) | (112) | ||||||||
(Benefit) Provision for taxes on income | (74) | (14) | 26 | ||||||||
Equity in net income of subsidiaries | 3,405 | 3,576 | 3,808 | ||||||||
Net income | 3,323 | 3,540 | 3,670 | ||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to S&P Global Inc. | 3,323 | 3,540 | 3,670 | ||||||||
Comprehensive income | 3,446 | 3,510 | 3,694 | ||||||||
Standard & Poor's Financial Services LLC | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | 1,898 | 1,695 | 1,780 | ||||||||
Expenses: | |||||||||||
Operating-related expenses | 440 | 434 | 482 | ||||||||
Selling and general expenses | 329 | 292 | 345 | ||||||||
Depreciation | 12 | 7 | 11 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Total expenses | 781 | 733 | 838 | ||||||||
Gain on dispositions | 0 | ||||||||||
Operating profit | 1,117 | 962 | 942 | ||||||||
Other expense (income), net | 0 | 0 | 0 | ||||||||
Interest expense (income), net | 0 | 2 | 0 | ||||||||
Non-operating intercompany transactions | (48) | (75) | (77) | ||||||||
Income before taxes on income | 1,165 | 1,035 | 1,019 | ||||||||
(Benefit) Provision for taxes on income | 285 | 250 | 370 | ||||||||
Equity in net income of subsidiaries | 0 | (1) | 0 | ||||||||
Net income | 880 | 784 | 649 | ||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to S&P Global Inc. | 880 | 784 | 649 | ||||||||
Comprehensive income | 880 | 783 | 649 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | 4,146 | 3,940 | 3,704 | ||||||||
Expenses: | |||||||||||
Operating-related expenses | 1,360 | 1,293 | 1,261 | ||||||||
Selling and general expenses | 1,055 | 1,095 | 1,064 | ||||||||
Depreciation | 26 | 31 | 40 | ||||||||
Amortization of intangibles | 122 | 122 | 98 | ||||||||
Total expenses | 2,563 | 2,541 | 2,463 | ||||||||
Gain on dispositions | 0 | ||||||||||
Operating profit | 1,583 | 1,399 | 1,241 | ||||||||
Other expense (income), net | 7 | 2 | (11) | ||||||||
Interest expense (income), net | (15) | (11) | (14) | ||||||||
Non-operating intercompany transactions | (1,530) | (1,872) | (2,463) | ||||||||
Income before taxes on income | 3,121 | 3,280 | 3,729 | ||||||||
(Benefit) Provision for taxes on income | 416 | 324 | 427 | ||||||||
Equity in net income of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 2,705 | 2,956 | 3,302 | ||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to S&P Global Inc. | 2,705 | 2,956 | 3,302 | ||||||||
Comprehensive income | $ 2,697 | $ 2,884 | $ 3,401 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 2,866 | $ 1,917 | ||
Restricted cash | 20 | 41 | ||
Short-term investments | 28 | 18 | ||
Accounts receivable, net of allowance for doubtful accounts | 1,577 | 1,449 | ||
Intercompany receivable | 0 | 0 | ||
Prepaid and other current assets | 221 | 162 | ||
Total current assets | 4,712 | 3,587 | ||
Property and equipment, net of accumulated depreciation | 320 | 270 | ||
Right of use assets | 676 | 0 | ||
Goodwill | 3,575 | 3,535 | $ 2,989 | |
Other intangible assets, net | 1,424 | 1,524 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 0 | 0 | ||
Other non-current assets | 641 | 525 | ||
Total assets | 11,348 | 9,441 | ||
Current liabilities: | ||||
Accounts payable | 190 | 211 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation and contributions to retirement plans | 446 | 354 | ||
Income taxes currently payable | 68 | 73 | ||
Unearned revenue | 1,928 | 1,641 | ||
Other current liabilities | 461 | 351 | ||
Total current liabilities | 3,093 | 2,630 | ||
Long-term debt | 3,948 | 3,662 | ||
Lease liabilities – non-current | 620 | 0 | ||
Intercompany loans payable | 0 | 0 | ||
Pension and other postretirement benefits | 259 | 229 | ||
Other non-current liabilities | 624 | 616 | ||
Total liabilities | 8,544 | 7,137 | ||
Redeemable noncontrolling interest | 2,268 | 1,620 | ||
Equity: | ||||
Common stock | 294 | 294 | ||
Additional paid-in capital | 903 | 833 | ||
Retained income | 12,205 | 11,284 | ||
Accumulated other comprehensive loss | (624) | (742) | ||
Less: common stock in treasury | (12,299) | (11,041) | ||
Total equity – controlling interests | 479 | 628 | ||
Total equity – noncontrolling interests | 57 | 56 | ||
Total equity | 536 | 684 | $ 766 | $ 701 |
Total liabilities and equity | 11,348 | 9,441 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Accounts receivable, net of allowance for doubtful accounts | 0 | 0 | ||
Intercompany receivable | (7,513) | (5,561) | ||
Prepaid and other current assets | 0 | 0 | ||
Total current assets | (7,513) | (5,561) | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Right of use assets | 0 | 0 | ||
Goodwill | 9 | 9 | ||
Other intangible assets, net | 0 | 0 | ||
Investments in subsidiaries | (20,228) | (16,635) | ||
Intercompany loans receivable | (1,246) | (1,773) | ||
Other non-current assets | (1) | 0 | ||
Total assets | (28,979) | (23,960) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany payable | (7,513) | (5,561) | ||
Accrued compensation and contributions to retirement plans | 0 | 0 | ||
Income taxes currently payable | 0 | 0 | ||
Unearned revenue | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (7,513) | (5,561) | ||
Long-term debt | 0 | 0 | ||
Lease liabilities – non-current | 0 | 0 | ||
Intercompany loans payable | (1,246) | (1,773) | ||
Pension and other postretirement benefits | 0 | 0 | ||
Other non-current liabilities | (1) | 0 | ||
Total liabilities | (8,760) | (7,334) | ||
Redeemable noncontrolling interest | 2,268 | 1,620 | ||
Equity: | ||||
Common stock | (2,377) | (2,279) | ||
Additional paid-in capital | (9,203) | (9,641) | ||
Retained income | (11,010) | (6,439) | ||
Accumulated other comprehensive loss | 48 | 46 | ||
Less: common stock in treasury | 0 | 12 | ||
Total equity – controlling interests | (22,542) | (18,301) | ||
Total equity – noncontrolling interests | 55 | 55 | ||
Total equity | (22,487) | (18,246) | ||
Total liabilities and equity | (28,979) | (23,960) | ||
S&P Global Inc. | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1,130 | 694 | ||
Restricted cash | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Accounts receivable, net of allowance for doubtful accounts | 229 | 163 | ||
Intercompany receivable | 675 | 550 | ||
Prepaid and other current assets | 102 | 41 | ||
Total current assets | 2,136 | 1,448 | ||
Property and equipment, net of accumulated depreciation | 204 | 192 | ||
Right of use assets | 402 | 0 | ||
Goodwill | 283 | 261 | ||
Other intangible assets, net | 0 | 0 | ||
Investments in subsidiaries | 12,134 | 8,599 | ||
Intercompany loans receivable | 17 | 130 | ||
Other non-current assets | 281 | 194 | ||
Total assets | 15,457 | 10,824 | ||
Current liabilities: | ||||
Accounts payable | 80 | 89 | ||
Intercompany payable | 6,288 | 4,453 | ||
Accrued compensation and contributions to retirement plans | 148 | 125 | ||
Income taxes currently payable | 7 | 2 | ||
Unearned revenue | 297 | 240 | ||
Other current liabilities | 187 | 180 | ||
Total current liabilities | 7,007 | 5,089 | ||
Long-term debt | 3,948 | 3,662 | ||
Lease liabilities – non-current | 383 | 0 | ||
Intercompany loans payable | 0 | 114 | ||
Pension and other postretirement benefits | 178 | 162 | ||
Other non-current liabilities | 171 | 148 | ||
Total liabilities | 11,687 | 9,175 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 294 | 294 | ||
Additional paid-in capital | 112 | 72 | ||
Retained income | 15,836 | 12,622 | ||
Accumulated other comprehensive loss | (175) | (299) | ||
Less: common stock in treasury | (12,297) | (11,040) | ||
Total equity – controlling interests | 3,770 | 1,649 | ||
Total equity – noncontrolling interests | 0 | 0 | ||
Total equity | 3,770 | 1,649 | ||
Total liabilities and equity | 15,457 | 10,824 | ||
Standard & Poor's Financial Services LLC | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Accounts receivable, net of allowance for doubtful accounts | 148 | 109 | ||
Intercompany receivable | 2,855 | 2,138 | ||
Prepaid and other current assets | 2 | 3 | ||
Total current assets | 3,005 | 2,250 | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Right of use assets | 1 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Investments in subsidiaries | 6 | 6 | ||
Intercompany loans receivable | 0 | 0 | ||
Other non-current assets | 37 | 45 | ||
Total assets | 3,049 | 2,301 | ||
Current liabilities: | ||||
Accounts payable | 11 | 15 | ||
Intercompany payable | 27 | 32 | ||
Accrued compensation and contributions to retirement plans | 61 | 33 | ||
Income taxes currently payable | 0 | 0 | ||
Unearned revenue | 243 | 235 | ||
Other current liabilities | 18 | 16 | ||
Total current liabilities | 360 | 331 | ||
Long-term debt | 0 | 0 | ||
Lease liabilities – non-current | 1 | 0 | ||
Intercompany loans payable | 0 | 0 | ||
Pension and other postretirement benefits | 0 | 0 | ||
Other non-current liabilities | 81 | 75 | ||
Total liabilities | 442 | 406 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 632 | 618 | ||
Retained income | 1,975 | 1,277 | ||
Accumulated other comprehensive loss | 0 | 0 | ||
Less: common stock in treasury | 0 | 0 | ||
Total equity – controlling interests | 2,607 | 1,895 | ||
Total equity – noncontrolling interests | 0 | 0 | ||
Total equity | 2,607 | 1,895 | ||
Total liabilities and equity | 3,049 | 2,301 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1,736 | 1,223 | ||
Restricted cash | 20 | 41 | ||
Short-term investments | 28 | 18 | ||
Accounts receivable, net of allowance for doubtful accounts | 1,200 | 1,177 | ||
Intercompany receivable | 3,983 | 2,873 | ||
Prepaid and other current assets | 117 | 118 | ||
Total current assets | 7,084 | 5,450 | ||
Property and equipment, net of accumulated depreciation | 116 | 78 | ||
Right of use assets | 273 | 0 | ||
Goodwill | 3,283 | 3,265 | ||
Other intangible assets, net | 1,424 | 1,524 | ||
Investments in subsidiaries | 8,088 | 8,030 | ||
Intercompany loans receivable | 1,229 | 1,643 | ||
Other non-current assets | 324 | 286 | ||
Total assets | 21,821 | 20,276 | ||
Current liabilities: | ||||
Accounts payable | 99 | 107 | ||
Intercompany payable | 1,198 | 1,076 | ||
Accrued compensation and contributions to retirement plans | 237 | 196 | ||
Income taxes currently payable | 61 | 71 | ||
Unearned revenue | 1,388 | 1,166 | ||
Other current liabilities | 256 | 155 | ||
Total current liabilities | 3,239 | 2,771 | ||
Long-term debt | 0 | 0 | ||
Lease liabilities – non-current | 236 | 0 | ||
Intercompany loans payable | 1,246 | 1,659 | ||
Pension and other postretirement benefits | 81 | 67 | ||
Other non-current liabilities | 373 | 393 | ||
Total liabilities | 5,175 | 4,890 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 2,377 | 2,279 | ||
Additional paid-in capital | 9,362 | 9,784 | ||
Retained income | 5,404 | 3,824 | ||
Accumulated other comprehensive loss | (497) | (489) | ||
Less: common stock in treasury | (2) | (13) | ||
Total equity – controlling interests | 16,644 | 15,385 | ||
Total equity – noncontrolling interests | 2 | 1 | ||
Total equity | 16,646 | 15,386 | ||
Total liabilities and equity | $ 21,821 | $ 20,276 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||||||||||
Net income | $ 585 | $ 662 | $ 602 | $ 453 | $ 551 | $ 535 | $ 501 | $ 534 | $ 2,303 | $ 2,121 | $ 1,638 |
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | 82 | 84 | 82 | ||||||||
Amortization of intangibles | 122 | 122 | 98 | ||||||||
Provision for losses on accounts receivable | 18 | 21 | 16 | ||||||||
Deferred income taxes | 46 | 81 | 0 | ||||||||
Stock-based compensation | 78 | 94 | 99 | ||||||||
Gain on dispositions | (49) | 0 | 0 | ||||||||
Accrued legal settlements | 0 | 1 | 55 | ||||||||
Pension settlement charge, net of taxes | 85 | 0 | 0 | ||||||||
Other | 93 | 52 | 96 | ||||||||
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: | |||||||||||
Accounts receivable | (135) | (164) | (196) | ||||||||
Prepaid and other current assets | (81) | (1) | 10 | ||||||||
Accounts payable and accrued expenses | 73 | (106) | 75 | ||||||||
Unearned revenue | 256 | 70 | 85 | ||||||||
Accrued legal settlements | (1) | (108) | (4) | ||||||||
Other current liabilities | (56) | (67) | (85) | ||||||||
Net change in prepaid/accrued income taxes | (41) | (7) | 32 | ||||||||
Net change in other assets and liabilities | (17) | (129) | 15 | ||||||||
Cash provided by operating activities | 2,776 | 2,064 | 2,016 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (115) | (113) | (123) | ||||||||
Acquisitions, net of cash acquired | (91) | (401) | (83) | ||||||||
Proceeds from dispositions | 85 | 6 | 2 | ||||||||
Changes in short-term investments | (10) | (5) | (5) | ||||||||
Cash used for investing activities | (131) | (513) | (209) | ||||||||
Financing Activities: | |||||||||||
Proceeds from issuance of senior notes, net | 1,086 | 489 | 0 | ||||||||
Payments on senior notes | (868) | (403) | 0 | ||||||||
Dividends paid to shareholders | (560) | (503) | (421) | ||||||||
Distributions to noncontrolling interest holders, net | (143) | (154) | (111) | ||||||||
Repurchase of treasury shares | (1,240) | (1,660) | (1,001) | ||||||||
Exercise of stock options | 40 | 34 | 75 | ||||||||
Contingent consideration payment | (25) | ||||||||||
Employee withholding tax on share-based payments and other | (66) | (66) | (49) | ||||||||
Intercompany financing activities | 0 | 0 | 0 | ||||||||
Cash used for financing activities | (1,751) | (2,288) | (1,507) | ||||||||
Effect of exchange rate changes on cash | 34 | (84) | 87 | ||||||||
Net change in cash, cash equivalents, and restricted cash | 928 | (821) | 387 | ||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 1,958 | 2,779 | 1,958 | 2,779 | 2,392 | ||||||
Cash, cash equivalents, and restricted cash at end of year | 2,886 | 1,958 | 2,886 | 1,958 | 2,779 | ||||||
Eliminations | |||||||||||
Operating Activities: | |||||||||||
Net income | (4,605) | (5,159) | (5,983) | ||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Provision for losses on accounts receivable | 0 | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Stock-based compensation | 0 | 0 | 0 | ||||||||
Gain on dispositions | 0 | ||||||||||
Accrued legal settlements | 0 | 0 | |||||||||
Pension settlement charge, net of taxes | 0 | ||||||||||
Other | 0 | 0 | 0 | ||||||||
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: | |||||||||||
Accounts receivable | 0 | 0 | 0 | ||||||||
Prepaid and other current assets | 0 | 0 | 0 | ||||||||
Accounts payable and accrued expenses | 0 | 0 | 0 | ||||||||
Unearned revenue | 0 | 0 | 0 | ||||||||
Accrued legal settlements | 0 | 0 | 0 | ||||||||
Other current liabilities | 0 | 0 | 0 | ||||||||
Net change in prepaid/accrued income taxes | 0 | 0 | 0 | ||||||||
Net change in other assets and liabilities | 0 | 0 | 0 | ||||||||
Cash provided by operating activities | (4,605) | (5,159) | (5,983) | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
Proceeds from dispositions | 0 | 0 | 0 | ||||||||
Changes in short-term investments | 0 | 0 | 0 | ||||||||
Cash used for investing activities | 0 | 0 | 0 | ||||||||
Financing Activities: | |||||||||||
Proceeds from issuance of senior notes, net | 0 | 0 | |||||||||
Payments on senior notes | 0 | 0 | |||||||||
Dividends paid to shareholders | 0 | 0 | 0 | ||||||||
Distributions to noncontrolling interest holders, net | 0 | 0 | 0 | ||||||||
Repurchase of treasury shares | 0 | 0 | 0 | ||||||||
Exercise of stock options | 0 | 0 | 0 | ||||||||
Contingent consideration payment | 0 | ||||||||||
Employee withholding tax on share-based payments and other | 0 | 0 | 0 | ||||||||
Intercompany financing activities | 4,605 | 5,159 | 5,983 | ||||||||
Cash used for financing activities | 4,605 | 5,159 | 5,983 | ||||||||
Effect of exchange rate changes on cash | 0 | 0 | 0 | ||||||||
Net change in cash, cash equivalents, and restricted cash | 0 | 0 | 0 | ||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 0 | 0 | 0 | 0 | 0 | ||||||
Cash, cash equivalents, and restricted cash at end of year | 0 | 0 | 0 | 0 | 0 | ||||||
S&P Global Inc. | Reportable Legal Entities | |||||||||||
Operating Activities: | |||||||||||
Net income | 3,323 | 3,540 | 3,670 | ||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | 44 | 46 | 31 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Provision for losses on accounts receivable | 5 | 3 | 2 | ||||||||
Deferred income taxes | 24 | 33 | 108 | ||||||||
Stock-based compensation | 27 | 28 | 35 | ||||||||
Gain on dispositions | (49) | ||||||||||
Accrued legal settlements | 0 | 0 | |||||||||
Pension settlement charge, net of taxes | 85 | ||||||||||
Other | 64 | 46 | 34 | ||||||||
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: | |||||||||||
Accounts receivable | (72) | (27) | (2) | ||||||||
Prepaid and other current assets | 17 | (2) | (5) | ||||||||
Accounts payable and accrued expenses | 14 | (11) | 22 | ||||||||
Unearned revenue | 56 | (53) | 19 | ||||||||
Accrued legal settlements | 0 | 0 | 0 | ||||||||
Other current liabilities | (61) | (22) | (42) | ||||||||
Net change in prepaid/accrued income taxes | (33) | 2 | 41 | ||||||||
Net change in other assets and liabilities | (74) | (128) | 7 | ||||||||
Cash provided by operating activities | 3,370 | 3,455 | 3,920 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (46) | (81) | (55) | ||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
Proceeds from dispositions | 85 | 0 | 0 | ||||||||
Changes in short-term investments | 0 | 0 | 0 | ||||||||
Cash used for investing activities | 39 | (81) | (55) | ||||||||
Financing Activities: | |||||||||||
Proceeds from issuance of senior notes, net | 1,086 | 489 | |||||||||
Payments on senior notes | (868) | (403) | |||||||||
Dividends paid to shareholders | (560) | (503) | (421) | ||||||||
Distributions to noncontrolling interest holders, net | 0 | 0 | 0 | ||||||||
Repurchase of treasury shares | (1,240) | (1,660) | (1,001) | ||||||||
Exercise of stock options | 36 | 26 | 68 | ||||||||
Contingent consideration payment | 0 | ||||||||||
Employee withholding tax on share-based payments and other | (64) | (66) | (49) | ||||||||
Intercompany financing activities | (1,368) | (1,190) | (2,546) | ||||||||
Cash used for financing activities | (2,978) | (3,307) | (3,949) | ||||||||
Effect of exchange rate changes on cash | 5 | (5) | 5 | ||||||||
Net change in cash, cash equivalents, and restricted cash | 436 | 62 | (79) | ||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 694 | 632 | 694 | 632 | 711 | ||||||
Cash, cash equivalents, and restricted cash at end of year | 1,130 | 694 | 1,130 | 694 | 632 | ||||||
Standard & Poor's Financial Services LLC | Reportable Legal Entities | |||||||||||
Operating Activities: | |||||||||||
Net income | 880 | 784 | 649 | ||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | 12 | 7 | 11 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Provision for losses on accounts receivable | 4 | 4 | 3 | ||||||||
Deferred income taxes | (10) | 10 | (10) | ||||||||
Stock-based compensation | 14 | 16 | 22 | ||||||||
Gain on dispositions | 0 | ||||||||||
Accrued legal settlements | 1 | 0 | |||||||||
Pension settlement charge, net of taxes | 0 | ||||||||||
Other | 2 | 5 | 19 | ||||||||
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: | |||||||||||
Accounts receivable | (49) | 39 | (23) | ||||||||
Prepaid and other current assets | (35) | (4) | 3 | ||||||||
Accounts payable and accrued expenses | 32 | (64) | 97 | ||||||||
Unearned revenue | 28 | 13 | 2 | ||||||||
Accrued legal settlements | (1) | 0 | (1) | ||||||||
Other current liabilities | 1 | (11) | (12) | ||||||||
Net change in prepaid/accrued income taxes | (5) | 0 | (18) | ||||||||
Net change in other assets and liabilities | 34 | 32 | (6) | ||||||||
Cash provided by operating activities | 907 | 832 | 736 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (3) | (16) | (32) | ||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
Proceeds from dispositions | 0 | 0 | 0 | ||||||||
Changes in short-term investments | 0 | 0 | 0 | ||||||||
Cash used for investing activities | (3) | (16) | (32) | ||||||||
Financing Activities: | |||||||||||
Proceeds from issuance of senior notes, net | 0 | 0 | |||||||||
Payments on senior notes | 0 | 0 | |||||||||
Dividends paid to shareholders | 0 | 0 | 0 | ||||||||
Distributions to noncontrolling interest holders, net | 0 | 0 | 0 | ||||||||
Repurchase of treasury shares | 0 | 0 | 0 | ||||||||
Exercise of stock options | 0 | 0 | 0 | ||||||||
Contingent consideration payment | 0 | ||||||||||
Employee withholding tax on share-based payments and other | 0 | 0 | 0 | ||||||||
Intercompany financing activities | (904) | (816) | (704) | ||||||||
Cash used for financing activities | (904) | (816) | (704) | ||||||||
Effect of exchange rate changes on cash | 0 | 0 | 0 | ||||||||
Net change in cash, cash equivalents, and restricted cash | 0 | 0 | 0 | ||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 0 | 0 | 0 | 0 | 0 | ||||||
Cash, cash equivalents, and restricted cash at end of year | 0 | 0 | 0 | 0 | 0 | ||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Operating Activities: | |||||||||||
Net income | 2,705 | 2,956 | 3,302 | ||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | 26 | 31 | 40 | ||||||||
Amortization of intangibles | 122 | 122 | 98 | ||||||||
Provision for losses on accounts receivable | 9 | 14 | 11 | ||||||||
Deferred income taxes | 32 | 38 | (98) | ||||||||
Stock-based compensation | 37 | 50 | 42 | ||||||||
Gain on dispositions | 0 | ||||||||||
Accrued legal settlements | 0 | 55 | |||||||||
Pension settlement charge, net of taxes | 0 | ||||||||||
Other | 27 | 1 | 43 | ||||||||
Changes in operating assets and liabilities, net of effect of acquisitions and dispositions: | |||||||||||
Accounts receivable | (14) | (176) | (171) | ||||||||
Prepaid and other current assets | (63) | 5 | 12 | ||||||||
Accounts payable and accrued expenses | 27 | (31) | (44) | ||||||||
Unearned revenue | 172 | 110 | 64 | ||||||||
Accrued legal settlements | 0 | (108) | (3) | ||||||||
Other current liabilities | 4 | (34) | (31) | ||||||||
Net change in prepaid/accrued income taxes | (3) | (9) | 9 | ||||||||
Net change in other assets and liabilities | 23 | (33) | 14 | ||||||||
Cash provided by operating activities | 3,104 | 2,936 | 3,343 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (66) | (16) | (36) | ||||||||
Acquisitions, net of cash acquired | (91) | (401) | (83) | ||||||||
Proceeds from dispositions | 0 | 6 | 2 | ||||||||
Changes in short-term investments | (10) | (5) | (5) | ||||||||
Cash used for investing activities | (167) | (416) | (122) | ||||||||
Financing Activities: | |||||||||||
Proceeds from issuance of senior notes, net | 0 | 0 | |||||||||
Payments on senior notes | 0 | 0 | |||||||||
Dividends paid to shareholders | 0 | 0 | 0 | ||||||||
Distributions to noncontrolling interest holders, net | (143) | (154) | (111) | ||||||||
Repurchase of treasury shares | 0 | 0 | 0 | ||||||||
Exercise of stock options | 4 | 8 | 7 | ||||||||
Contingent consideration payment | (25) | ||||||||||
Employee withholding tax on share-based payments and other | (2) | 0 | 0 | ||||||||
Intercompany financing activities | (2,333) | (3,153) | (2,733) | ||||||||
Cash used for financing activities | (2,474) | (3,324) | (2,837) | ||||||||
Effect of exchange rate changes on cash | 29 | (79) | 82 | ||||||||
Net change in cash, cash equivalents, and restricted cash | 492 | (883) | 466 | ||||||||
Cash, cash equivalents, and restricted cash at beginning of year | $ 1,264 | $ 2,147 | 1,264 | 2,147 | 1,681 | ||||||
Cash, cash equivalents, and restricted cash at end of year | $ 1,756 | $ 1,264 | $ 1,756 | $ 1,264 | $ 2,147 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowances [Roll Forward] | |||
Balance at beginning of year | $ 34 | $ 33 | $ 28 |
Net charges to income | 17 | 21 | 15 |
Deductions and other | (17) | (20) | (11) |
Balance at end of year | $ 34 | $ 34 | $ 33 |